[Congressional Record (Bound Edition), Volume 148 (2002), Part 15]
[House]
[Pages 20765-20812]
[From the U.S. Government Publishing Office, www.gpo.gov]




               DISPOSING OF VARIOUS LEGISLATIVE MEASURES

  Mr. ARMEY. Mr. Speaker, I send a unanimous consent request to the 
desk.
  The SPEAKER pro tempore (Mr. Simpson). The Clerk will report the 
unanimous consent request.
  The Clerk read as follows:

       Mr. Armey asks unanimous consent that the House
       1. Be considered to have discharged from the committee and 
     passed H.R. 5647, S. 1646, S. 1270, H.R. 5603, H.R. 5651, 
     H.R. 5640, and S. 1210;
       2. Be considered to have passed S. 1227;
       3. Be considered to have discharged from committee and 
     agreed to House Concurrent Resolution 502, House Resolution 
     536, House Concurrent Resolution 479, and House Concurrent 
     Resolution 492;
       4. Be considered to have discharged from committee, 
     amended, and agreed to House Concurrent Resolution 349 and 
     House Concurrent Resolution 437, in the respective forms 
     placed at the desk;
       5. Be considered to have amended and passed H.R. 5200 by 
     the committee amendment as further amended by the form placed 
     at the desk;
       6. Be considered to have taken from the Speaker's table and 
     concurred in the respective Senate amendments to H.R. 3801, 
     H.R. 4015, and H.R. 3253;
       7. That the committees being discharged be printed in the 
     Record, the texts of each measure and any amendment thereto 
     be considered as read and printed in the Record, and that the 
     motions to reconsider each of these actions be laid upon the 
     table.

  The SPEAKER pro tempore. The Chair will entertain this combined 
request under the Speaker's guidelines as recorded on page 712 of the 
House Rules and Manual with assurances that it has been cleared by the 
bipartisan floor and all committee leaderships.
  The Clerk will report the titles of the various bills and 
resolutions.
  The Clerk read as follows:


       Discharged From the Committee on Armed Services and Passed

  H.R. 5647, to authorize the duration of the base contract of the 
Navy-Marine Corps Intranet contract to be more than five years but not 
more than seven years.

                               H.R. 5647

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

     SECTION 1. AUTHORIZED DURATION OF BASE CONTRACT FOR NAVY-
                   MARINE CORPS INTRANET.

       Section 814 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001, as enacted into law 
     by Public Law 106-398 (114 Stat. 1654A-215) and amended by 
     section 362 of Public Law 107-107 (115 Stat. 1065), is 
     amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following new 
     subsection (i):
       ``(i) Duration of Base Navy-Marine Corps Intranet 
     Contract.--Notwithstanding section 2306c of title 10, United 
     States Code, the base contract of the Navy-Marine Corps 
     Intranet contract may have a term in excess of five years, 
     but not more than seven years.''.

Discharged from the Committee on Transportation and Infrastructure and 
                                 Passed

  S. 1646, to identify certain routes in the States of Texas, Oklahoma, 
Colorado, and New Mexico as part of the Ports-to-Plains Corridor, a 
high priority corridor on the National Highway System.

                                S. 1646

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

     SECTION 1. IDENTIFICATION OF PORTS-TO-PLAINS HIGH PRIORITY 
                   CORRIDOR ROUTES.

       Section 1105(c)(38) of the Intermodal Surface 
     Transportation Efficiency Act of 1991 (105 Stat. 2032; 114 
     Stat. 2763A-201) is amended--
       (1) in subparagraph (A), by redesignating clauses (i) 
     through (viii) as subclauses (I) through (VIII), 
     respectively;
       (2) by redesignating subparagraph (A) as clause (i);
       (3) by striking ``(38) The'' and inserting ``(38)(A) The'';
       (4) in subparagraph (A) (as designated by paragraph (3))--
       (A) in clause (i) (as redesignated by paragraph (2))--
       (i) in subclause (VII) (as redesignated by paragraph (1)), 
     by striking ``and'' at the end;
       (ii) in subclause (VIII) (as redesignated by paragraph 
     (1)), by striking the period at the end and inserting ``; 
     and''; and
       (iii) by adding at the end the following:
       ``(IX) United States Route 287 from Dumas to the border 
     between the States of Texas and Oklahoma, and also United 
     States Route 87 from Dumas to the border between the States 
     of Texas and New Mexico.''; and
       (B) by adding at the end the following:
       ``(ii) In the State of Oklahoma, the Ports-to-Plains 
     Corridor shall generally follow United States Route 287 from 
     the border between the States of Texas and Oklahoma to the 
     border between the States of Oklahoma and Colorado.
       ``(iii) In the State of Colorado, the Ports-to-Plains 
     Corridor shall generally follow--
       ``(I) United States Route 287 from the border between the 
     States of Oklahoma and Colorado to Limon; and
       ``(II) Interstate Route 70 from Limon to Denver.
       ``(iv) In the State of New Mexico, the Ports-to-Plains 
     Corridor shall generally follow United States Route 87 from 
     the border between the States of Texas and New Mexico to 
     Raton.''; and
       (5) by striking ``(B) The corridor designation contained in 
     paragraph (A)'' and inserting the following:
       ``(B) The corridor designation contained in subclauses (I) 
     through (VIII) of subparagraph (A)(i)''.


Discharged from the Committee on Transportation and Infrastructure and 
                                 Passed

  S. 1270, to designate the United States courthouse to be constructed 
at 8th Avenue and Mill Street in Eugene, Oregon, as the ``Wayne Lyman 
Morse United States Courthouse''.

                                S. 1270

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

     SECTION 1. DESIGNATION OF WAYNE LYMAN MORSE UNITED STATES 
                   COURTHOUSE.

       The United States courthouse to be constructed at 8th 
     Avenue and Mill Street in Eugene, Oregon, shall be known and 
     designated as the ``Wayne Lyman Morse United States 
     Courthouse''.

     SEC. 2. REFERENCES.

       Any reference in a law, map, regulation, document, paper, 
     or other record of the United States to the United States 
     courthouse referred to in section 1 shall be deemed to be a 
     reference to the Wayne Lyman Morse United States Courthouse.

[[Page 20766]]

       Discharged from the Committee on Ways and Means and Passed

  H.R. 5603, to amend the Internal Revenue Code of 1986 to suspend the 
tax-exempt status of designated terrorist organizations, and for other 
purposes.

                               H.R. 5603

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

     SECTION 1. SUSPENSION OF TAX-EXEMPT STATUS OF DESIGNATED 
                   TERRORIST ORGANIZATIONS.

       (a) In General.--Section 501 of the Internal Revenue Code 
     of 1986 (relating to exemption from tax on corporations, 
     certain trusts, etc.) is amended by redesignating subsection 
     (p) as subsection (q) and by inserting after subsection (o) 
     the following new subsection:
       ``(p) Suspension of Tax-Exempt Status of Designated 
     Terrorist Organizations.--
       ``(1) In general.--The exemption from tax under subsection 
     (a) with respect to any organization shall be suspended 
     during any period in which the organization is a designated 
     terrorist organization.
       ``(2) Designated terrorist organization.--For purposes of 
     this subsection, the term `designated terrorist organization' 
     means an organization which--
       ``(A) is designated as a terrorist organization by an 
     Executive order under the authority of--
       ``(i) section 212(a)(3) or 219 of the Immigration and 
     Nationality Act,
       ``(ii) the International Emergency Economic Powers Act, or
       ``(iii) section 5 of the United Nations Participation Act, 
     or
       ``(B) is a person listed in or designated by an Executive 
     order as supporting terrorist activity (as defined in section 
     212(a)(3)(B) of the Immigration and Nationality Act) or 
     terrorism (as defined in section 140(d)(2) of the Foreign 
     Relations Authorization Act, Fiscal Years 1988 and 1989).
       ``(3) Denial of deduction.--No deduction shall be allowed 
     under section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 
     2106(a)(2), or 2522 for any contribution to an organization 
     during the period such organization is a designated terrorist 
     organization.
       ``(4) Denial of administrative or judicial challenge of 
     suspension or denial of deduction.--Notwithstanding section 
     7428 or any other provision of law, no organization or other 
     person may challenge a suspension under paragraph (1), a 
     determination or listing under paragraph (2), or a denial of 
     a deduction under paragraph (3) in any administrative or 
     judicial proceeding relating to the Federal tax liability of 
     such organization or other person.
       ``(5) Erroneous designation.--
       ``(A) In general.--If a designation of an organization 
     pursuant to 1 or more of the provisions of law described in 
     paragraph (2) is determined to be erroneous pursuant to such 
     law, such designation (and any suspension under paragraph (1) 
     occurring pursuant thereto) shall be treated as having not 
     been made for purposes of this title.
       ``(B) Waiver of limitations.--If credit or refund of any 
     overpayment of tax which occurs by operation of subparagraph 
     (A) is prevented at any time before the close of the 1-year 
     period beginning on the date of the determination of such 
     credit or refund by the operation of any law or rule of law 
     (including res judicata), such refund or credit may 
     nevertheless be made or allowed if claim therefor is filed 
     before the close of such period.''.
       (b) Notice of Suspensions.--If the tax exemption of any 
     organization is suspended under section 501(p) of the 
     Internal Revenue Code of 1986 (as added by subsection (a)), 
     the Internal Revenue Service shall update the listings of 
     tax-exempt organizations and shall publish appropriate notice 
     to taxpayers of such suspension and of the fact that 
     contributions to such organization are not deductible during 
     the period of such suspension.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.


    Discharged from the Committee on Energy and Commerce and Passed

  H.R. 5651, to amend the Federal Food, Drug, and Cosmetic Act to make 
improvements in the regulation of medical devices, and for other 
purposes.

                               H.R. 5651

       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 ``Medical 
     Device User Fee and Modernization Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--FEES RELATED TO MEDICAL DEVICES

Sec. 101. Findings.
Sec. 102. Establishment of program.
Sec. 103. Annual reports.
Sec. 104. Postmarket surveillance.
Sec. 105. Consultation.
Sec. 106. Effective date.
Sec. 107. Sunset clause.

      TITLE II--AMENDMENTS REGARDING REGULATION OF MEDICAL DEVICES

Sec. 201. Inspections by accredited persons.
Sec. 202. Third party review of premarket notification.
Sec. 203. Debarment of accredited persons.
Sec. 204. Designation and regulation of combination products.
Sec. 205. Report on certain devices.
Sec. 206. Electronic labeling.
Sec. 207. Electronic registration.
Sec. 208. Intended use.
Sec. 209. Modular review.
Sec. 210. Pediatric expertise regarding classification-panel review of 
              premarket applications.
Sec. 211. Internet list of class II devices exempted from requirement 
              of premarket notification.
Sec. 212. Study by Institute of Medicine of postmarket surveillance 
              regarding pediatric populations.
Sec. 213. Guidance regarding pediatric devices.
Sec. 214. Breast implants; study by Comptroller General.
Sec. 215. Breast implants; research through National Institutes of 
              Health.

                    TITLE III--ADDITIONAL AMENDMENTS

Sec. 301. Identification of manufacturer of medical devices.
Sec. 302. Single-use medical devices.
Sec. 303. MedWatch.

                TITLE I--FEES RELATED TO MEDICAL DEVICES

     SEC. 101. FINDINGS.

       The Congress finds that--
       (1) prompt approval and clearance of safe and effective 
     devices is critical to the improvement of the public health 
     so that patients may enjoy the benefits of devices to 
     diagnose, treat, and prevent disease;
       (2) the public health will be served by making additional 
     funds available for the purpose of augmenting the resources 
     of the Food and Drug Administration that are devoted to the 
     process for the review of devices and the assurance of device 
     safety and effectiveness so that statutorily mandated 
     deadlines may be met; and
       (3) the fees authorized by this title will be dedicated to 
     meeting the goals identified in the letters from the 
     Secretary of Health and Human Services to the Committee on 
     Energy and Commerce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate, as set forth in the Congressional Record.

     SEC. 102. ESTABLISHMENT OF PROGRAM.

       (a) In General.--Subchapter C of chapter VII of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 379F et seq.) is 
     amended by adding at the end the following part:

                   ``PART 3--FEES RELATING TO DEVICES

     ``SEC. 737. DEFINITIONS.

       ``For purposes of this subchapter:
       ``(1) The term `premarket application' means--
       ``(A) an application for approval of a device submitted 
     under section 515(c) or section 351 of the Public Health 
     Service Act; or
       ``(B) a product development protocol described in section 
     515(f).
     Such term does not include a supplement, a premarket report, 
     or a premarket notification submission.
       ``(2) The term `premarket report' means a report submitted 
     under section 515(c)(2).
       ``(3) The term `premarket notification submission' means a 
     report submitted under section 510(k).
       ``(4)(A) The term `supplement', with respect to a panel-
     track supplement, a 180-day supplement, a real-time 
     supplement, or an efficacy supplement, means a request to the 
     Secretary to approve a change in a device for which--
       ``(i) an application or report has been approved under 
     section 515(d), or an application has been approved under 
     section 351 of the Public Health Service Act; or
       ``(ii) a notice of completion has become effective under 
     section 515(f).
       ``(B) The term `panel-track supplement' means a supplement 
     to an approved premarket application or premarket report 
     under section 515 that requests a significant change in 
     design or performance of the device, or a new indication for 
     use of the device, and for which clinical data are generally 
     necessary to provide a reasonable assurance of safety and 
     effectiveness.
       ``(C) The term `180-day supplement' means a supplement to 
     an approved premarket application or premarket report under 
     section 515 that is not a panel-track supplement and requests 
     a significant change in components, materials, design, 
     specification, software, color additives, or labeling.
       ``(D) The term `real-time supplement' means a supplement to 
     an approved premarket application or premarket report under 
     section 515 that requests a minor change to the device, such 
     as a minor change to the design of the device, software, 
     manufacturing, sterilization, or labeling, and for which the 
     applicant has requested and the agency has granted a meeting 
     or similar forum to jointly review and determine the status 
     of the supplement.
       ``(E) The term `efficacy supplement' means a supplement to 
     an approved premarket application under section 351 of the 
     Public

[[Page 20767]]

     Health Service Act that requires substantive clinical data.
       ``(5) The term `process for the review of device 
     applications' means the following activities of the Secretary 
     with respect to the review of premarket applications, 
     premarket reports, supplements, and premarket notification 
     submissions:
       ``(A) The activities necessary for the review of premarket 
     applications, premarket reports, supplements, and premarket 
     notification submissions.
       ``(B) The issuance of action letters that allow the 
     marketing of devices or which set forth in detail the 
     specific deficiencies in such applications, reports, 
     supplements, or submissions and, where appropriate, the 
     actions necessary to place them in condition for approval.
       ``(C) The inspection of manufacturing establishments and 
     other facilities undertaken as part of the Secretary's review 
     of pending premarket applications, premarket reports, and 
     supplements.
       ``(D) Monitoring of research conducted in connection with 
     the review of such applications, reports, supplements, and 
     submissions.
       ``(E) Review of device applications subject to section 351 
     of the Public Health Service Act for an investigational new 
     drug application under section 505(i) or for an 
     investigational device exemption under section 520(g) and 
     activities conducted in anticipation of the submission of 
     such applications under section 505(i) or 520(g).
       ``(F) The development of guidance, policy documents, or 
     regulations to improve the process for the review of 
     premarket applications, premarket reports, supplements, and 
     premarket notification submissions.
       ``(G) The development of voluntary test methods, consensus 
     standards, or mandatory performance standards under section 
     514 in connection with the review of such applications, 
     reports, supplements, or submissions and related activities.
       ``(H) The provision of technical assistance to device 
     manufacturers in connection with the submission of such 
     applications, reports, supplements, or submissions.
       ``(I) Any activity undertaken under section 513 or 515(i) 
     in connection with the initial classification or 
     reclassification of a device or under section 515(b) in 
     connection with any requirement for approval of a device.
       ``(J) Evaluation of postmarket studies required as a 
     condition of an approval of a premarket application under 
     section 515 or section 351 of the Public Health Service Act.
       ``(K) Compiling, developing, and reviewing information on 
     relevant devices to identify safety and effectiveness issues 
     for devices subject to premarket applications, premarket 
     reports, supplements, or premarket notification submissions.
       ``(6) The term `costs of resources allocated for the 
     process for the review of device applications' means the 
     expenses incurred in connection with the process for the 
     review of device applications for--
       ``(A) officers and employees of the Food and Drug 
     Administration, contractors of the Food and Drug 
     Administration, advisory committees, and costs related to 
     such officers, employees, and committees and to contracts 
     with such contractors;
       ``(B) management of information, and the acquisition, 
     maintenance, and repair of computer resources;
       ``(C) leasing, maintenance, renovation, and repair of 
     facilities and acquisition, maintenance, and repair of 
     fixtures, furniture, scientific equipment, and other 
     necessary materials and supplies; and
       ``(D) collecting fees and accounting for resources 
     allocated for the review of premarket applications, premarket 
     reports, supplements, and submissions.
       ``(7) The term `adjustment factor' applicable to a fiscal 
     year is the Consumer Price Index for all urban consumers (all 
     items; United States city average) for April of the preceding 
     fiscal year divided by such Index for April 2002.
       ``(8) The term `affiliate' means a business entity that has 
     a relationship with a second business entity if, directly or 
     indirectly--
       ``(A) one business entity controls, or has the power to 
     control, the other business entity; or
       ``(B) a third party controls, or has power to control, both 
     of the business entities.

     ``SEC. 738. AUTHORITY TO ASSESS AND USE DEVICE FEES.

       ``(a) Types of Fees.--Beginning on the date of the 
     enactment of the Medical Device User Fee and Modernization 
     Act of 2002, the Secretary shall assess and collect fees in 
     accordance with this section as follows:
       ``(1) Premarket application, premarket report, supplement, 
     and submission fee.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     and subsection (d), each person who submits any of the 
     following, on or after October 1, 2002, shall be subject to a 
     fee established under subsection (c)(5) for the fiscal year 
     involved in accordance with the following:
       ``(i) A premarket application.
       ``(ii) For a premarket report, a fee equal to the fee that 
     applies under clause (i).
       ``(iii) For a panel track supplement, a fee equal to the 
     fee that applies under clause (i).
       ``(iv) For a 180-day supplement, a fee equal to 21.5 
     percent of the fee that applies under clause (i), subject to 
     any adjustment under subsection (c)(3).
       ``(v) For a real-time supplement, a fee equal to 7.2 
     percent of the fee that applies under clause (i).
       ``(vi) For an efficacy supplement, a fee equal to the fee 
     that applies under clause (i).
       ``(vii) For a premarket notification submission, a fee 
     equal to 1.42 percent of the fee that applies under clause 
     (i), subject to any adjustment under subsection (c)(3) and 
     any adjustment under subsection (e)(2)(C)(ii).
       ``(B) Exceptions.--
       ``(i) Humanitarian device exemption.--An application under 
     section 520(m) is not subject to any fee under subparagraph 
     (A).
       ``(ii) Further manufacturing use.--No fee shall be required 
     under subparagraph (A) for the submission of a premarket 
     application under section 351 of the Public Health Service 
     Act for a product licensed for further manufacturing use 
     only.
       ``(iii) State or federal government sponsors.--No fee shall 
     be required under subparagraph (A) for a premarket 
     application, premarket report, supplement, or premarket 
     notification submission submitted by a State or Federal 
     Government entity unless the device involved is to be 
     distributed commercially.
       ``(iv) Premarket notifications by third parties.--No fee 
     shall be required under subparagraph (A) for a premarket 
     notification submission reviewed by an accredited person 
     pursuant to section 523.
       ``(v) Pediatric conditions of use.--

       ``(I) In general.--No fee shall be required under 
     subparagraph (A) for a premarket application, premarket 
     report, or premarket notification submission if the proposed 
     conditions of use for the device involved are solely for a 
     pediatric population. No fee shall be required under such 
     subparagraph for a supplement if the sole purpose of the 
     supplement is to propose conditions of use for a pediatric 
     population.
       ``(II) Subsequent proposal of adult conditions of use.--In 
     the case of a person who submits a premarket application or 
     premarket report for which, under subclause (I), a fee under 
     subparagraph (A) is not required, any supplement to such 
     application that proposes conditions of use for any adult 
     population is subject to the fee that applies under such 
     subparagraph for a premarket application.

       ``(C) Payment.--The fee required by subparagraph (A) shall 
     be due upon submission of the premarket application, 
     premarket report, supplement, or premarket notification 
     submission except that invoices for applications submitted 
     between October 1, 2002, and the date of the enactment of the 
     Medical Device User Fee and Modernization Act of 2002 shall 
     be payable on October 30, 2002. Applicants submitting 
     portions of applications pursuant to section 515(c)(3) shall 
     pay such fees upon submission of the first portion of such 
     applications. The fees credited to fiscal year 2003 under 
     this section shall include all fees payable from October 1, 
     2002, through September 30, 2003.
       ``(D) Refunds.--
       ``(i) Application refused for filing.--The Secretary shall 
     refund 75 percent of the fee paid under subparagraph (A) for 
     any application or supplement that is refused for filing.
       ``(ii) Application withdrawn before filing.--The Secretary 
     shall refund 75 percent of the fee paid under subparagraph 
     (A) for any application or supplement that is withdrawn prior 
     to the filing decision of the Secretary.
       ``(iii) Application withdrawn before first action.--After 
     receipt of a request for a refund of the fee paid under 
     subparagraph (A) for a premarket application, premarket 
     report, or supplement that is withdrawn after filing but 
     before a first action, the Secretary may return some or all 
     of the fee. The amount of refund, if any, shall be based on 
     the level of effort already expended on the review of such 
     application, report, or supplement. The Secretary shall have 
     sole discretion to refund a fee or portion of the fee under 
     this subparagraph. A determination by the Secretary 
     concerning a refund under this paragraph shall not be 
     reviewable.
       ``(b) Fee Revenue Amounts.--Except as provided in 
     subsections (c), (d), (e), (g), and (h), the fees under 
     subsection (a) shall be established to generate the following 
     revenue amounts: $25,125,000 in fiscal year 2003; $27,255,000 
     in fiscal year 2004; $29,785,000 in fiscal year 2005; 
     $32,615,000 in fiscal year 2006, and $35,000,000 in fiscal 
     year 2007. If legislation is enacted after the date of the 
     enactment of the Medical Device User Fee and Modernization 
     Act of 2002 requiring the Secretary to fund additional costs 
     of the retirement of Federal personnel, fee revenue amounts 
     under this subsection shall be increased in each year by the 
     amount necessary to fully fund the portion of such additional 
     costs that are attributable to the process for the review of 
     device applications.
       ``(c) Adjustments.--
       ``(1) Inflation adjustment.--The revenues established in 
     subsection (b) shall be adjusted by the Secretary by notice, 
     published in the Federal Register, for a fiscal year to 
     reflect the greater of--
       ``(A) the total percentage change that occurred in the 
     Consumer Price Index for all urban consumers (all items; U.S. 
     city average) for the 12 month period ending June 30 
     preceding the fiscal year for which fees are being 
     established, or

[[Page 20768]]

       ``(B) the total percentage change for the previous fiscal 
     year in basic pay under the General Schedule in accordance 
     with section 5332 of title 5, United States Code, as adjusted 
     by any locality-based comparability payment pursuant to 
     section 5304 of such title for Federal employees stationed in 
     the District of Columbia.
     The adjustment made each fiscal year by this subsection shall 
     be added on a compounded basis to the sum of all adjustments 
     made each fiscal year after fiscal year 2003 under this 
     subsection.
       ``(2) Workload adjustment.--After the fee revenues 
     established in subsection (b) are adjusted for a fiscal year 
     for inflation in accordance with paragraph (1), the fee 
     revenues shall, beginning with fiscal year 2004, be adjusted 
     further each fiscal year to reflect changes in the workload 
     of the Secretary for the process for the review of device 
     applications. With respect to such adjustment:
       ``(A) The adjustment shall be determined by the Secretary 
     based on a weighted average of the change in the total number 
     of premarket applications, investigational new device 
     applications, premarket reports, supplements, and premarket 
     notification submissions submitted to the Secretary. The 
     Secretary shall publish in the Federal Register the fee 
     revenues and fees resulting from the adjustment and the 
     supporting methodologies.
       ``(B) Under no circumstances shall the adjustment result in 
     fee revenues for a fiscal year that are less than the fee 
     revenues for the fiscal year established in subsection (b), 
     as adjusted for inflation under paragraph (1).
       ``(3) Compensating adjustment.--After the fee revenues 
     established in subsection (b) are adjusted for a fiscal year 
     for inflation in accordance with paragraph (1), and for 
     workload in accordance with paragraph (2), the fee revenues 
     shall, beginning with fiscal year 2004, be adjusted further 
     each fiscal year, if necessary, to reflect the cumulative 
     amount by which collections for previous fiscal years, 
     beginning with fiscal year 2003, fell below the cumulative 
     revenue amounts for such fiscal years specified in subsection 
     (b), adjusted for such fiscal years for inflation in 
     accordance with paragraph (1), and for workload in accordance 
     with paragraph (2).
       ``(4) Final year adjustment.--For fiscal year 2007, the 
     Secretary may, in addition to adjustments under paragraphs 
     (1) and (2), further increase the fees and fee revenues 
     established in subsection (b) if such adjustment is necessary 
     to provide for not more than three months of operating 
     reserves of carryover user fees for the process for the 
     review of device applications for the first three months of 
     fiscal year 2008. If such an adjustment is necessary, the 
     rationale for the amount of the increase shall be contained 
     in the annual notice establishing fee revenues and fees for 
     fiscal year 2007. If the Secretary has carryover user fee 
     balances for such process in excess of three months of such 
     operating reserves, the adjustment under this paragraph shall 
     not be made.
       ``(5) Annual fee setting.--The Secretary shall, 60 days 
     before the start of each fiscal year after September 30, 
     2002, establish, for the next fiscal year, and publish in the 
     Federal Register, fees under subsection (a), based on the 
     revenue amounts established under subsection (b) and the 
     adjustment provided under this subsection and subsection 
     (e)(2)(C)(ii), except that the fees established for fiscal 
     year 2003 shall be based on a premarket application fee of 
     $154,000.
       ``(6) Limit.--The total amount of fees charged, as adjusted 
     under this subsection, for a fiscal year may not exceed the 
     total costs for such fiscal year for the resources allocated 
     for the process for the review of device applications.
       ``(d) Small Businesses; Fee Waiver and Fee Reduction 
     Regarding Premarket Approval Fees.--
       ``(1) In general.--The Secretary shall grant a waiver of 
     the fee required under subsection (a) for one premarket 
     application, or one premarket report, where the Secretary 
     finds that the applicant involved is a small business 
     submitting its first premarket application to the Secretary, 
     or its first premarket report, respectively, for review. In 
     addition, for subsequent premarket applications, premarket 
     reports, and supplements where the Secretary finds that the 
     applicant involved is a small business, the fees specified in 
     clauses (i) through (vi) of subsection (a)(1)(A) may be paid 
     at a reduced rate in accordance with paragraph (2)(C).
       ``(2) Rules relating to premarket approval fees.--
       ``(A) Definition.--
       ``(i) In general.--For purposes of this subsection, the 
     term `small business' means an entity that reported 
     $30,000,000 or less of gross receipts or sales in its most 
     recent Federal income tax return for a taxable year, 
     including such returns of all of its affiliates, partners, 
     and parent firms.
       ``(ii) Adjustment.--The Secretary may adjust the 
     $30,000,000 threshold established in clause (i) if the 
     Secretary has evidence from actual experience that this 
     threshold results in a reduction in revenues from premarket 
     applications, premarket reports, and supplements that is 16 
     percent or more than would occur without small business 
     exemptions and lower fee rates. To adjust this threshold, the 
     Secretary shall publish a notice in the Federal Register 
     setting out the rationale for the adjustment, and the new 
     threshold.
       ``(B) Evidence of qualification.--An applicant shall pay 
     the higher fees established by the Secretary each year unless 
     the applicant submits evidence that it qualifies for a waiver 
     of the fee or the lower fee rate. The applicant shall support 
     its claim that it meets the definition under subparagraph (A) 
     by submission of a copy of its most recent Federal income tax 
     return for a taxable year, and a copy of such returns of its 
     affiliates, partners, and parent firms. which show an amount 
     of gross sales or receipts that is less than the maximum 
     established in subparagraph (A). The applicant, and each of 
     such affiliates, partners, and parent firms, shall certify 
     that the information provided is a true and accurate copy of 
     the actual tax forms they submitted to the Internal Revenue 
     Service. If no tax forms are submitted for affiliates, 
     partners, or parent firms, the applicant shall certify that 
     the applicant has no affiliates, partners, or parent firms, 
     respectively.
       ``(C) Reduced fees.--Where the Secretary finds that the 
     applicant involved meets the definition under subparagraph 
     (A), the fees established under subsection (c)(5) may be paid 
     at a reduced rate of 38 percent of the fee established under 
     such subsection for a premarket application, a premarket 
     report, or a supplement.
       ``(D) Request for fee waiver or reduction.--An applicant 
     seeking a fee waiver or reduction under this subsection shall 
     submit supporting information to the Secretary at least 60 
     days before the fee is required pursuant to subsection (a). 
     The decision of the Secretary regarding whether an entity 
     qualifies for such a waiver or reduction is not reviewable.
       ``(e) Small Businesses; Fee Reduction Regarding Premarket 
     Notification Submissions.--
       ``(1) In general.--Where the Secretary finds that the 
     applicant involved is a small business, the fee specified in 
     subsection (a)(1)(A)(vii) may be paid at a reduced rate in 
     accordance with paragraph (2)(C).
       ``(2) Rules relating to premarket notification 
     submissions.--
       ``(A) Definition.--For purposes of this subsection, the 
     term `small business' means an entity that reported 
     $30,000,000 or less of gross receipts or sales in its most 
     recent Federal income tax return for a taxable year, 
     including such returns of all of its affiliates, partners, 
     and parent firms.
       ``(B) Evidence of qualification.--An applicant shall pay 
     the higher fees established by the Secretary each year unless 
     the applicant submits evidence that it qualifies for the 
     lower fee rate. The applicant shall support its claim that it 
     meets the definition under subparagraph (A) by submission of 
     a copy of its most recent Federal income tax return for a 
     taxable year, and a copy of such returns of its affiliates, 
     partners, and parent firms. which show an amount of gross 
     sales or receipts that is less than the maximum established 
     in subparagraph (A). The applicant, and each of such 
     affiliates, partners, and parent firms, shall certify that 
     the information provided is a true and accurate copy of the 
     actual tax forms they submitted to the Internal Revenue 
     Service. If no tax forms are submitted for affiliates, 
     partners, or parent firms, the applicant shall certify that 
     the applicant has no affiliates, partners, or parent firms, 
     respectively.
       ``(C) Reduced fees.--
       ``(i) In general.--Where the Secretary finds that the 
     applicant involved meets the definition under subparagraph 
     (A), the fee for a premarket notification submission may be 
     paid at 80 percent of the fee that applies under subsection 
     (a)(1)(A)(vii), as adjusted under clause (ii) and as 
     established under subsection (c)(5).
       ``(ii) Adjustment per fee revenue amount.--For fiscal year 
     2004 and each subsequent fiscal year, the Secretary, in 
     setting the revenue amount under subsection (c)(5) for 
     premarket notification submissions, shall determine the 
     revenue amount that would apply if all such submissions for 
     the fiscal year involved paid a fee equal to 1.42 percent of 
     the amount that applies under subsection (a)(1)(A)(i) for 
     premarket applications, and shall adjust the fee under 
     subsection (a)(1)(A)(vii) for premarket notification 
     submissions such that the reduced fees collected under clause 
     (i) of this subparagraph, when added to fees for such 
     submissions that are not paid at the reduced rate, will equal 
     such revenue amount for the fiscal year.
       ``(D) Request for reduction.--An applicant seeking a fee 
     reduction under this subsection shall submit supporting 
     information to the Secretary at least 60 days before the fee 
     is required pursuant to subsection (a). The decision of the 
     Secretary regarding whether an entity qualifies for such a 
     reduction is not reviewable.
       ``(f) Effect of Failure to Pay Fees.--A premarket 
     application, premarket report, supplement, or premarket 
     notification submission submitted by a person subject to fees 
     under subsection (a) shall be considered incomplete and shall 
     not be accepted for filing by the Secretary until all fees 
     owed by such person have been paid.
       ``(g) Conditions.--
       ``(1) Performance goals through fiscal year 2005; 
     termination of program after

[[Page 20769]]

     fiscal year 2005.--With respect to the amount that, under the 
     salaries and expenses account of the Food and Drug 
     Administration, is appropriated for a fiscal year for devices 
     and radiological products:
       ``(A)(i) For each of the fiscal years 2003 and 2004, the 
     Secretary is expected to meet all of the goals identified for 
     the fiscal year involved in any letter referred to in section 
     101(3) of the Medical Device User Fee and Modernization Act 
     of 2002 (referred to in this paragraph as `performance 
     goals') if the amount so appropriated for such fiscal year, 
     excluding the amount of fees appropriated for such fiscal 
     year, is equal to or greater than $205,720,000 multiplied by 
     the adjustment factor applicable to the fiscal year.
       ``(ii) For each of the fiscal years 2003 and 2004, if the 
     amount so appropriated for the fiscal year involved, 
     excluding the amount of fees appropriated for such fiscal 
     year, is less than the amount that applies under clause (i) 
     for such fiscal year, the following applies:
       ``(I) The Secretary is expected to meet such goals to the 
     extent practicable, taking into account the amounts that are 
     available to the Secretary for such purpose, whether from 
     fees under subsection (a) or otherwise.
       ``(II) The Comptroller General of the United States shall 
     submit to the Congress a report describing whether and to 
     what extent the Secretary is meeting the performance goals 
     identified for such fiscal year, and whether the Secretary 
     will be able to meet all performance goals identified for 
     fiscal year 2005. A report under the preceding sentence shall 
     be submitted to the Congress not later than July 1 of the 
     fiscal year with which the report is concerned.
       ``(B)(i) For fiscal year 2005, the Secretary is expected to 
     meet all of the performance goals identified for the fiscal 
     year if the total of the amounts so appropriated for fiscal 
     years 2003 through 2005, excluding the amount of fees 
     appropriated for such fiscal years, is equal to or greater 
     than the sum of--
       ``(I) $205,720,000 multiplied by the adjustment factor 
     applicable to fiscal year 2003;
       ``(II) $205,720,000 multiplied by the adjustment factor 
     applicable to fiscal year 2004; and
       ``(III) $205,720,000 multiplied by the adjustment factor 
     applicable to fiscal year 2005.
       ``(ii) For fiscal year 2005, if the total of the amounts so 
     appropriated for fiscal years 2003 through 2005, excluding 
     the amount of fees appropriated for such fiscal years, is 
     less than the sum that applies under clause (i) for fiscal 
     year 2005, the following applies:
       ``(I) The Secretary is expected to meet such goals to the 
     extent practicable, taking into account the amounts that are 
     available to the Secretary for such purpose, whether from 
     fees under subsection (a) or otherwise.
       ``(II) The Comptroller General of the United States shall 
     submit to the Congress a report describing whether and to 
     what extent the Secretary is meeting the performance goals 
     identified for such fiscal year, and whether the Secretary 
     will be able to meet all performance goals identified for 
     fiscal year 2006. The report under the preceding sentence 
     shall be submitted to the Congress not later than July 1, 
     2005.
       ``(C) For fiscal year 2006, fees may not be assessed under 
     subsection (a) for the fiscal year, and the Secretary is not 
     expected to meet any performance goals identified for the 
     fiscal year, if the total of the amounts so appropriated for 
     fiscal years 2003 through 2006, excluding the amount of fees 
     appropriated for such fiscal years, is less than the sum of--
       ``(i) $205,720,000 multiplied by the adjustment factor 
     applicable to fiscal year 2006; and
       ``(ii) an amount equal to the sum that applies for purposes 
     of subparagraph (B)(i).
       ``(D) For fiscal year 2007, fees may not be assessed under 
     subsection (a) for the fiscal year, and the Secretary is not 
     expected to meet any performance goals identified for the 
     fiscal year, if--
       ``(i) the amount so appropriated for the fiscal year, 
     excluding the amount of fees appropriated for the fiscal 
     year, is less than $205,720,000 multiplied by the adjustment 
     factor applicable to fiscal year 2007; or
       ``(ii) pursuant to subparagraph (C), fees were not assessed 
     under subsection (a) for fiscal year 2006.
       ``(2) Authority.--If the Secretary does not assess fees 
     under subsection (a) during any portion of a fiscal year 
     because of subparagraph (C) or (D) of paragraph (1) and if at 
     a later date in such fiscal year the Secretary may assess 
     such fees, the Secretary may assess and collect such fees, 
     without any modification in the rate for premarket 
     applications, supplements, premarket reports, and premarket 
     notification submissions, and at any time in such fiscal 
     year, notwithstanding the provisions of subsection (a) 
     relating to the date fees are to be paid.
       ``(h) Crediting and Availability of Fees.--
       ``(1) In general.--Fees authorized under subsection (a) 
     shall be collected and available for obligation only to the 
     extent and in the amount provided in advance in appropriation 
     Acts. Such fees are authorized to be appropriated to remain 
     available until expended. Such sums as may be necessary may 
     be transferred from the Food and Drug Administration salaries 
     and expenses appropriation account without fiscal year 
     limitation to such appropriation account for salaries and 
     expenses with such fiscal year limitation. The sums 
     transferred shall be available solely for the process for the 
     review of device applications.
       ``(2) Collections and appropriation acts.--
       ``(A) In general.--The fees authorized by this section--
       ``(i) shall be retained in each fiscal year in an amount 
     not to exceed the amount specified in appropriation Acts, or 
     otherwise made available for obligation, for such fiscal 
     year, and
       ``(ii) shall only be collected and available to defray 
     increases in the costs of the resources allocated for the 
     process for the review of device applications (including 
     increases in such costs for an additional number of full-time 
     equivalent positions in the Department of Health and Human 
     Services to be engaged in such process) over such costs, 
     excluding costs paid from fees collected under this section, 
     for fiscal year 2002 multiplied by the adjustment factor.
       ``(B) Compliance.--The Secretary shall be considered to 
     have met the requirements of subparagraph (A)(ii) in any 
     fiscal year if the costs funded by appropriations and 
     allocated for the process for the review of device 
     applications--
       ``(i) are not more than 3 percent below the level specified 
     in subparagraph (A)(ii); or
       ``(ii)(I) are more than 3 percent below the level specified 
     in subparagraph (A)(ii), and fees assessed for a subsequent 
     fiscal year are decreased by the amount in excess of 3 
     percent by which such costs fell below the level specified in 
     such subparagraph; and
       ``(II) such costs are not more than 5 percent below the 
     level specified in such subparagraph.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated for fees under this section--
       ``(A) $25,125,000 for fiscal year 2003;
       ``(B) $27,255,000 for fiscal year 2004;
       ``(C) $29,785,000 for fiscal year 2005;
       ``(D) $32,615,000 for fiscal year 2006; and
       ``(E) $35,000,000 for fiscal year 2007,
     as adjusted to reflect adjustments in the total fee revenues 
     made under this section and changes in the total amounts 
     collected by application fees.
       ``(4) Offset.--Any amount of fees collected for a fiscal 
     year under this section that exceeds the amount of fees 
     specified in appropriation Acts for such fiscal year shall be 
     credited to the appropriation account of the Food and Drug 
     Administration as provided in paragraph (1), and shall be 
     subtracted from the amount of fees that would otherwise be 
     authorized to be collected under this section pursuant to 
     appropriation Acts for a subsequent fiscal year.
       ``(i) Collection of Unpaid Fees.--In any case where the 
     Secretary does not receive payment of a fee assessed under 
     subsection (a) within 30 days after it is due, such fee shall 
     be treated as a claim of the United States Government subject 
     to subchapter II of chapter 37 of title 31, United States 
     Code.
       ``(j) Written Requests for Refunds.--To qualify for 
     consideration for a refund under subsection (a)(1)(D), a 
     person shall submit to the Secretary a written request for 
     such refund not later than 180 days after such fee is due.
       ``(k) Construction.--This section may not be construed to 
     require that the number of full-time equivalent positions in 
     the Department of Health and Human Services, for officers, 
     employees, and advisory committees not engaged in the process 
     of the review of device applications, be reduced to offset 
     the number of officers, employees, and advisory committees so 
     engaged.''.
       (b) Fee Exemption for Certain Entities Submitting Premarket 
     Reports.--
       (1) In general.--A person submitting a premarket report to 
     the Secretary of Health and Human Services is exempt from the 
     fee under section 738(a)(1)(A)(ii) of the Federal Food, Drug, 
     and Cosmetic Act (as added by subsection (a) of this section) 
     if--
       (A) the premarket report is the first such report submitted 
     to the Secretary by the person; and
       (B) before October 1, 2002, the person submitted a 
     premarket application to the Secretary for the same device as 
     the device for which the person is submitting the premarket 
     report.
       (2) Definitions.--For purposes of paragraph (1), the terms 
     ``device'', ``premarket application'', and ``premarket 
     report'' have the same meanings as apply to such terms for 
     purposes of section 738 of the Federal Food, Drug, and 
     Cosmetic Act (as added by subsection (a) of this section).

     SEC. 103. ANNUAL REPORTS.

       Beginning with fiscal year 2003, the Secretary shall 
     prepare and submit to the Committee on Energy and Commerce of 
     the House of Representatives and the Committee on Health, 
     Education, Labor and Pensions of the Senate a report 
     concerning--
       (1) the progress of the Food and Drug Administration in 
     achieving the goals identified in the letters described in 
     section 101(3) during such fiscal year and the future plans 
     of the Food and Drug Administration for meeting the goals, 
     not later than 60 days after the end of each fiscal year 
     during which fees are collected under this part; and
       (2) the implementation of the authority for such fees 
     during such fiscal year, and the

[[Page 20770]]

     use, by the Food and Drug Administration, of the fees 
     collected during such fiscal year, not later than 120 days 
     after the end of each fiscal year during which fees are 
     collected under the medical device user-fee program 
     established under the amendment made by section 102.

     SEC. 104. POSTMARKET SURVEILLANCE.

       (a) Additional Authorization of Appropriations.--For the 
     purpose of carrying out postmarket surveillance of medical 
     devices, there are authorized to be appropriated to the Food 
     and Drug Administration the following amounts, stated as 
     increases above the amount obligated for such purpose by such 
     Administration for fiscal year 2002:
       (1) For fiscal year 2003, an increase of $3,000,000.
       (2) For fiscal year 2004, an increase of $6,000,000.
       (3) For fiscal year 2005 and each subsequent fiscal year, 
     an increase of such sums as may be necessary.
       (b) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary'') shall 
     conduct a study for the purpose of determining the following 
     with respect to the medical device user-fee program 
     established under the amendment made by section 102:
       (A) The impact of such program on the ability of the Food 
     and Drug Administration to conduct postmarket surveillance on 
     medical devices.
       (B) The programmatic improvements, if any, needed for 
     adequate postmarket surveillance of medical devices.
       (C) The amount of funds needed to conduct adequate 
     postmarket surveillance of medical devices.
       (D) The extent to which device companies comply with the 
     postmarket surveillance requirements, including postmarket 
     study commitments.
       (E) The recommendations of the Secretary as to whether, and 
     in what amounts, user fees collected under such user-fee 
     program should be dedicated to postmarket surveillance if the 
     program is extended beyond fiscal year 2007.
       (2) Report.--Not later than January 10, 2007, the Secretary 
     shall submit to the Committee on Energy and Commerce of the 
     House of Representatives, and the Committee on Health, 
     Education, Labor, and Pensions of the Senate, a report that 
     describes the findings of the study under paragraph (1).

     SEC. 105. CONSULTATION.

       (a) In General.--In developing recommendations to the 
     Congress for the goals and plans for meeting the goals for 
     the process for the review of medical device applications for 
     fiscal years after fiscal year 2007, and for the 
     reauthorization of sections 737 and 738 of the Federal Food, 
     Drug, and Cosmetic Act, the Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary'') 
     shall consult with the Committee on Energy and Commerce of 
     the House of Representatives, the Committee on Health, 
     Education, Labor, and Pensions of the Senate, appropriate 
     scientific and academic experts, health care professionals, 
     representatives of patient and consumer advocacy groups, and 
     the regulated industry.
       (b) Recommendations.--The Secretary shall publish in the 
     Federal Register recommendations under subsection (a), after 
     negotiations with the regulated industry; shall present such 
     recommendations to the congressional committees specified in 
     such paragraph; shall hold a meeting at which the public may 
     present its views on such recommendations; and shall provide 
     for a period of 30 days for the public to provide written 
     comments on such recommendations.

     SEC. 106. EFFECTIVE DATE.

       The amendments made by this title shall take effect on the 
     date of the enactment of this Act, except that fees shall be 
     assessed for all premarket applications, premarket reports, 
     supplements, and premarket notification submissions received 
     on or after October 1, 2002, regardless of the date of 
     enactment.

     SEC. 107. SUNSET CLAUSE.

       The amendments made by this title cease to be effective 
     October 1, 2007, except that section 103 with respect to 
     annual reports ceases to be effective January 31, 2008.

      TITLE II--AMENDMENTS REGARDING REGULATION OF MEDICAL DEVICES

     SEC. 201. INSPECTIONS BY ACCREDITED PERSONS.

       (a) In General.--Section 704 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 374) is amended by adding at the end 
     the following subsection:
       ``(g)(1) Not later than one year after the date of the 
     enactment of this subsection, the Secretary shall, subject to 
     the provisions of this subsection, accredit persons for the 
     purpose of conducting inspections of establishments that 
     manufacture, prepare, propagate, compound, or process class 
     II or class III devices that are required in section 510(h), 
     or inspections of such establishments required to register 
     pursuant to section 510(i). The owner or operator of such an 
     establishment that is eligible under paragraph (6) may, from 
     the list published under paragraph (4), select an accredited 
     person to conduct such inspections.
       ``(2) Not later than 180 days after the date of enactment 
     of this subsection, the Secretary shall publish in the 
     Federal Register criteria to accredit or deny accreditation 
     to persons who request to perform the duties specified in 
     paragraph (1). Thereafter, the Secretary shall inform those 
     requesting accreditation, within 60 days after the receipt of 
     such request, whether the request for accreditation is 
     adequate for review, and the Secretary shall promptly act on 
     the request for accreditation. Any resulting accreditation 
     shall state that such person is accredited to conduct 
     inspections at device establishments identified in paragraph 
     (1). The accreditation of such person shall specify the 
     particular activities under this subsection for which such 
     person is accredited. In the first year following the 
     publication in the Federal Register of criteria to accredit 
     or deny accreditation to persons who request to perform the 
     duties specified in paragraph (1), the Secretary shall 
     accredit no more than 15 persons who request to perform 
     duties specified in paragraph (1).
       ``(3) An accredited person shall, at a minimum, meet the 
     following requirements:
       ``(A) Such person may not be an employee of the Federal 
     Government.
       ``(B) Such person shall be an independent organization 
     which is not owned or controlled by a manufacturer, supplier, 
     or vendor of articles regulated under this Act and which has 
     no organizational, material, or financial affiliation 
     (including a consultative affiliation) with such a 
     manufacturer, supplier, or vendor.
       ``(C) Such person shall be a legally constituted entity 
     permitted to conduct the activities for which it seeks 
     accreditation.
       ``(D) Such person shall not engage in the design, 
     manufacture, promotion, or sale of articles regulated under 
     this Act.
       ``(E) The operations of such person shall be in accordance 
     with generally accepted professional and ethical business 
     practices, and such person shall agree in writing that at a 
     minimum the person will--
       ``(i) certify that reported information accurately reflects 
     data reviewed, inspection observations made, other matters 
     that relate to or may influence compliance with this Act, and 
     recommendations made during an inspection or at an 
     inspection's closing meeting;
       ``(ii) limit work to that for which competence and capacity 
     are available;
       ``(iii) treat information received, records, reports, and 
     recommendations as confidential commercial or financial 
     information or trade secret information, except such 
     information may be made available to the Secretary;
       ``(iv) promptly respond and attempt to resolve complaints 
     regarding its activities for which it is accredited; and
       ``(v) protect against the use, in carrying out paragraph 
     (1), of any officer or employee of the accredited person who 
     has a financial conflict of interest regarding any product 
     regulated under this Act, and annually make available to the 
     public disclosures of the extent to which the accredited 
     person, and the officers and employees of the person, have 
     maintained compliance with requirements under this clause 
     relating to financial conflicts of interest.
       ``(4) The Secretary shall publish on the Internet site of 
     the Food and Drug Administration a list of persons who are 
     accredited under paragraph (2). Such list shall be updated to 
     ensure that the identity of each accredited person, and the 
     particular activities for which the person is accredited, is 
     known to the public. The updating of such list shall be no 
     later than one month after the accreditation of a person 
     under this subsection or the suspension or withdrawal of 
     accreditation, or the modification of the particular 
     activities for which the person is accredited.
       ``(5)(A) To ensure that persons accredited under this 
     subsection continue to meet the standards of accreditation, 
     the Secretary shall (i) audit the performance of such persons 
     on a periodic basis through the review of inspection reports 
     and inspections by persons designated by the Secretary to 
     evaluate the compliance status of a device establishment and 
     the performance of accredited persons, and (ii) take such 
     additional measures as the Secretary determines to be 
     appropriate.
       ``(B) The Secretary may withdraw accreditation of any 
     person accredited under paragraph (2), after providing notice 
     and an opportunity for an informal hearing, when such person 
     is substantially not in compliance with the standards of 
     accreditation, or poses a threat to public health or fails to 
     act in a manner that is consistent with the purposes of this 
     subsection. The Secretary may suspend the accreditation of 
     such person during the pendency of the process under the 
     preceding sentence.
       ``(6)(A) Subject to subparagraphs (B) and (C), a device 
     establishment is eligible for inspections by persons 
     accredited under paragraph (2) if the following conditions 
     are met:
       ``(i) The Secretary classified the results of the most 
     recent inspection of the establishment pursuant to subsection 
     (h) or (i) of section 510 as `no action indicated' or 
     `voluntary action indicated'.
       ``(ii) With respect to each inspection to be conducted by 
     an accredited person--
       ``(I) the owner or operator of the establishment submits to 
     the Secretary a notice requesting clearance to use such a 
     person to

[[Page 20771]]

      conduct the inspection, and the Secretary provides such 
     clearance; and
       ``(II) such notice identifies the accredited person whom 
     the establishment has selected to conduct the inspection, and 
     the Secretary agrees to the selected accredited person.
       ``(iii) With respect to the devices that are manufactured, 
     prepared, propagated, compounded, or processed by the 
     establishment, at least one of such devices is marketed in 
     the United States, and the following additional conditions 
     are met:
       ``(I) At least one of such devices is marketed, or is 
     intended to be marketed, in one or more foreign countries, 
     one of which countries certifies, accredits, or otherwise 
     recognizes the person accredited under paragraph (2) and 
     identified under subclause (II) of this clause.
       ``(II) The owner or operator of the establishment submits 
     to the Secretary a statement that the law of a country in 
     which such a device is marketed, or is intended to be 
     marketed, recognizes an inspection of the establishment by 
     the Secretary, and not later than 30 days after receiving 
     such statement, the Secretary informs the owner or operator 
     of the establishment that the owner or operator may submit a 
     notice requesting clearance under clause (ii).
       ``(iv)(I) In the case of an inspection to be conducted 
     pursuant to 510(h), persons accredited under paragraph (2) 
     did not conduct the two immediately preceding inspections of 
     the establishment, except that the establishment may petition 
     the Secretary for a waiver of such condition. Such a waiver 
     may be granted only if the petition states a commercial 
     reason for the waiver; the Secretary determines that the 
     public health would be served by granting the waiver; and the 
     Secretary has conducted an inspection of the establishment 
     during the four-year period preceding the date on which the 
     notice under clause (ii) is submitted to the Secretary. Such 
     a waiver is deemed to be granted only if the petition states 
     a commercial reason for the waiver; the Secretary has not 
     determined that the public health would be served by granting 
     the waiver; and the owner or operator of the device 
     establishment has requested in writing, not later than 18 
     months following the most recent inspection of such 
     establishment by a person accredited under paragraph (2), 
     that the Secretary inspect the establishment and the 
     Secretary has not conducted an inspection within 30 months 
     after the most recent inspection. With respect to such a 
     waiver that is granted or deemed to be granted, no additional 
     such waiver may be granted until after the Secretary has 
     conducted an inspection of the establishment.
       ``(II) In the case of an inspection to be conducted 
     pursuant to 510(i), the Secretary periodically conducts 
     inspections of the establishment.
       ``(B)(i) The Secretary shall respond to a notice under 
     subparagraph (A) from a device establishment not later than 
     30 days after the Secretary receives the notice. Through such 
     response, the Secretary shall (I) provide clearance under 
     such subparagraph, and agree to the selection of an 
     accredited person, or (II) make a request under clause (ii). 
     If the Secretary fails to respond to the notice within such 
     30-day period, the establishment is deemed to have such 
     clearance, and to have the agreement of the Secretary for 
     such selection.
       ``(ii) The request referred to in clause (i)(II) is--
       ``(I) a request to the device establishment involved to 
     submit to the Secretary compliance data in accordance with 
     clause (iii); or
       ``(II) a request to the establishment, or to the accredited 
     person identified in the notice under subparagraph (A), for 
     information concerning the relationship between the 
     establishment and such accredited person, including 
     information about the number of inspections of the 
     establishment, or other establishments owned or operated by 
     the owner or operator of the establishment, that have been 
     conducted by the accredited person.
     The Secretary may make both such requests.
       ``(iii) The compliance data to be submitted by a device 
     establishment under clause (ii) are data describing whether 
     the quality controls of the establishment have been 
     sufficient for ensuring consistent compliance with current 
     good manufacturing practice within the meaning of section 
     501(h), and data otherwise describing whether the 
     establishment has consistently been in compliance with 
     sections 501 and 502 and other applicable provisions of this 
     Act. Such data shall include complete reports of inspections 
     regarding good manufacturing practice or other quality 
     control audits that, during the preceding two-year period, 
     were conducted at the establishment by persons other than the 
     owner or operator of the establishment, together with all 
     other compliance data the Secretary deems necessary. Data 
     under the preceding sentence shall demonstrate to the 
     Secretary whether the establishment has facilitated 
     consistent compliance by promptly correcting any compliance 
     problems identified in such inspections.
       ``(iv) Not later than 60 days after receiving compliance 
     data under clause (iii) from a device establishment, the 
     Secretary shall provide or deny clearance under subparagraph 
     (A). The Secretary may deny clearance if the Secretary 
     determines that the establishment has failed to demonstrate 
     consistent compliance for purposes of clause (iii). The 
     Secretary shall provide to the establishment a statement of 
     such reasons for such determination. If the Secretary fails 
     to provide such statement to the establishment within such 
     60-day period, the establishment is deemed to have such 
     clearance.
       ``(v)(I) A request to an accredited person under clause 
     (ii)(II) may not seek any information that is not required to 
     be maintained by such person in records under subsection 
     (f)(1). Not later than 60 days after receiving the 
     information sought by the request, the Secretary shall agree 
     to, or reject, the selection of such person by the device 
     establishment involved. The Secretary may reject the 
     selection if the Secretary provides to the establishment a 
     statement of the reasons for such rejection. Reasons for the 
     rejection may include that the establishment or the 
     accredited person, as the case may be, has failed to fully 
     respond to the request, or that the Secretary has concerns 
     regarding the relationship between the establishment and such 
     accredited person. If within such 60-day period the Secretary 
     fails to agree to or reject the selection in accordance with 
     this subclause, the Secretary is deemed to have agreed to the 
     selection.
       ``(II) If the Secretary rejects the selection of an 
     accredited person by a device establishment, the 
     establishment may make an additional selection of an 
     accredited person by submitting to the Secretary a notice 
     that identifies the additional selection. Clauses (i) and 
     (ii), and subclause (I) of this clause, apply to the 
     selection of an accredited person through a notice under the 
     preceding sentence in the same manner and to the same extent 
     as such provisions apply to a selection of an accredited 
     person through a notice under subparagraph (A).
       ``(vi) In the case of a device establishment that under 
     clause (iv) is denied clearance under subparagraph (A), or 
     whose selection of an accredited person is rejected under 
     clause (v), the Secretary shall designate a person to review 
     the findings of the Secretary under such clause if, during 
     the 30-day period beginning on the date on which the 
     establishment receives the findings, the establishment 
     requests the review. The review shall commence not later than 
     30 days after the establishment requests the review, unless 
     the Secretary and the establishment otherwise agree.
       ``(C)(i) In the case of a device establishment for which 
     the Secretary classified the results of the most recent 
     inspection of the establishment by a person accredited under 
     paragraph (2) as `official action indicated', the 
     establishment, if otherwise eligible under subparagraph (A), 
     is eligible for further inspections by persons accredited 
     under such paragraph if (I) the Secretary issues a written 
     statement to the owner or operator of the establishment that 
     the violations leading to such classification have been 
     resolved, and (II) the Secretary, either upon the Secretary's 
     own initiative or a petition of the owner or operator of the 
     establishment, notifies the establishment that it has 
     clearance to use an accredited person for the inspections. 
     The Secretary shall respond to such petition within 30 days 
     after the receipt of the petition.
       ``(ii) If the Secretary denies a petition under clause (i), 
     the device establishment involved may, after the expiration 
     of one year after such denial, again petition the Secretary 
     for a determination of eligibility for inspection by persons 
     accredited by the Secretary under paragraph (2). If the 
     Secretary denies such petition, the Secretary shall provide 
     the establishment with such reasons for such denial within 60 
     days after the denial. If, as of the expiration of 48 months 
     after the receipt of the first petition, the establishment 
     has not been inspected by the Secretary in accordance with 
     section 510(h), or has not during such period been inspected 
     pursuant to section 510(i), as applicable, the establishment 
     is eligible for further inspections by accredited persons.
       ``(7)(A) Persons accredited under paragraph (2) to conduct 
     inspections shall record in writing their inspection 
     observations and shall present the observations to the device 
     establishment's designated representative and describe each 
     observation. Additionally, such accredited person shall 
     prepare an inspection report (including for inspections 
     classified as `no action indicated') in a form and manner 
     consistent with such reports prepared by employees and 
     officials designated by the Secretary to conduct inspections.
       ``(B) At a minimum, an inspection report under subparagraph 
     (A) shall identify the persons responsible for good 
     manufacturing practice compliance at the inspected device 
     establishment, the dates of the inspection, the scope of the 
     inspection, and shall describe in detail each observation 
     identified by the accredited person, identify other matters 
     that relate to or may influence compliance with this Act, and 
     describe any recommendations during the inspection or at the 
     inspection's closing meeting.
       ``(C) An inspection report under subparagraph (A) shall be 
     sent to the Secretary and to the designated representative of 
     the inspected device establishment at the same time, but 
     under no circumstances later than

[[Page 20772]]

     three weeks after the last day of the inspection. The report 
     to the Secretary shall be accompanied by all written 
     inspection observations previously provided to the designated 
     representative of the establishment.
       ``(D) Any statement or representation made by an employee 
     or agent of a device establishment to a person accredited 
     under paragraph (2) to conduct inspections shall be subject 
     to section 1001 of title 18, United States Code.
       ``(E) If at any time during an inspection by an accredited 
     person the accredited person discovers a condition that could 
     cause or contribute to an unreasonable risk to the public 
     health, the accredited person shall immediately notify the 
     Secretary of the identification of the device establishment 
     subject to inspection and such condition.
       ``(8) Compensation for an accredited person shall be 
     determined by agreement between the accredited person and the 
     person who engages the services of the accredited person, and 
     shall be paid by the person who engages such services.
       ``(9) Nothing in this subsection affects the authority of 
     the Secretary to inspect any device establishment pursuant to 
     this Act.
       ``(10)(A) For fiscal year 2005 and each subsequent fiscal 
     year, no device establishment may be inspected during the 
     fiscal year involved by a person accredited under paragraph 
     (2) if--
       ``(i) of the amounts appropriated for salaries and expenses 
     of the Food and Drug Administration for the preceding fiscal 
     year (referred to in this subparagraph as the `first prior 
     fiscal year'), the amount obligated by the Secretary for 
     inspections of device establishments by the Secretary was 
     less than the adjusted base amount applicable to such first 
     prior fiscal year; and
       ``(ii) of the amounts appropriated for salaries and 
     expenses of the Food and Drug Administration for the fiscal 
     year preceding the first prior fiscal year (referred to in 
     this subparagraph as the `second prior fiscal year'), the 
     amount obligated by the Secretary for inspections of device 
     establishments by the Secretary was less than the adjusted 
     base amount applicable to such second prior fiscal year.
       ``(B)(i) Subject to clause (ii), the Comptroller General of 
     the United States shall determine the amount that was 
     obligated by the Secretary for fiscal year 2002 for 
     compliance activities of the Food and Drug Administration 
     with respect to devices (referred to in this subparagraph as 
     the `compliance budget'), and of such amount, the amount that 
     was obligated for inspections by the Secretary of device 
     establishments (referred to in this subparagraph as the 
     `inspection budget').
       ``(ii) For purposes of determinations under clause (i), the 
     Comptroller General shall not include in the compliance 
     budget or the inspection budget any amounts obligated for 
     inspections of device establishments conducted as part of the 
     process of reviewing applications under section 515.
       ``(iii) Not later than March 31, 2003, the Comptroller 
     General shall complete the determinations required in this 
     subparagraph and submit to the Secretary and the Congress a 
     reporting describing the findings made through such 
     determinations.
       ``(C) For purposes of this paragraph:
       ``(i) The term `base amount' means the inspection budget 
     determined under subparagraph (B) for fiscal year 2002.
       ``(ii) The term `adjusted base amount', in the case of 
     applicability to fiscal year 2003, means an amount equal to 
     the base amount increased by 5 percent.
       ``(iii) The term `adjusted base amount', with respect to 
     applicability to fiscal year 2004 or any subsequent fiscal 
     year, means the adjusted based amount applicable to the 
     preceding year increased by 5 percent.
       ``(11) The authority provided by this subsection terminates 
     on October 1, 2012.
       ``(12) No later than four years after the enactment of this 
     subsection the Comptroller General shall report to the 
     Committee on Energy and Commerce of the House of 
     Representatives and the Committee on Health, Education, Labor 
     and Pensions of the Senate--
       ``(A) the number of inspections pursuant to subsections (h) 
     and (i) of section 510 conducted by accredited persons and 
     the number of inspections pursuant to such subsections 
     conducted by Federal employees;
       ``(B) the number of persons who sought accreditation under 
     this subsection, as well as the number of persons who were 
     accredited under this subsection;
       ``(C) the reasons why persons who sought accreditation, but 
     were denied accreditation, were denied;
       ``(D) the number of audits conducted by the Secretary of 
     accredited persons, the quality of inspections conducted by 
     accredited persons, whether accredited persons are meeting 
     their obligations under this Act, and whether the number of 
     audits conducted is sufficient to permit these assessments;
       ``(E) whether this subsection is achieving the goal of 
     ensuring more information about device establishment 
     compliance is being presented to the Secretary, and whether 
     that information is of a quality consistent with information 
     obtained by the Secretary pursuant to subsection (h) or (i) 
     of section 510;
       ``(F) whether this subsection is advancing efforts to allow 
     device establishments to rely upon third-party inspections 
     for purposes of compliance with the laws of foreign 
     governments; and
       ``(G) whether the Congress should continue, modify, or 
     terminate the program under this subsection.
       ``(13) The Secretary shall include in the annual report 
     required under section 903(g) the names of all accredited 
     persons and the particular activities under this subsection 
     for which each such person is accredited and the name of each 
     accredited person whose accreditation has been withdrawn 
     during the year.
       ``(14) Notwithstanding any provision of this subsection, 
     this subsection does not have any legal effect on any 
     agreement described in section 803(b) between the Secretary 
     and a foreign country.''.
       (b) Maintenance of Records.--Section 704(f) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 374(f)) is amended--
       (1) in paragraph (1), in the first sentence, by striking 
     ``A person accredited'' and all that follows through ``shall 
     maintain records'' and inserting the following: ``An 
     accredited person described in paragraph (3) shall maintain 
     records'';
       (2) in paragraph (2), by striking ``a person accredited 
     under section 523'' and inserting ``an accredited person 
     described in paragraph (3)''; and
       (3) by adding at the end the following paragraph:
       ``(3) For purposes of paragraphs (1) and (2), an accredited 
     person described in this paragraph is a person who--
       ``(A) is accredited under subsection (g); or
       ``(B) is accredited under section 523.''.
       (c) Civil Money Penalty.--Section 303(g)(1)(A) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 333(g)(1)(A)) 
     is amended by adding at the end the following: ``For purposes 
     of the preceding sentence, a person accredited under 
     paragraph (2) of section 704(g) who is substantially not in 
     compliance with the standards of accreditation under such 
     section, or who poses a threat to public health or fails to 
     act in a manner that is consistent with the purposes of such 
     section, shall be considered to have violated a requirement 
     of this Act that relates to devices.''.
       (d) Prohibited Acts.--Section 301 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 331) is amended by adding 
     at the end the following:
       ``(gg) The knowing failure of a person accredited under 
     paragraph (2) of section 704(g) to comply with paragraph 
     (7)(E) of such section; the knowing inclusion by such a 
     person of false information in an inspection report under 
     paragraph (7)(A) of such section; or the knowing failure of 
     such a person to include material facts in such a report.''.
       (e) Conforming Amendment.--Section 510(h) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 360(h)) is amended by 
     inserting after ``duly designated by the Secretary'' the 
     following: ``, or by persons accredited to conduct 
     inspections under section 704(g),''.

     SEC. 202. THIRD PARTY REVIEW OF PREMARKET NOTIFICATION.

       Section 523 of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 360m) is amended--
       (1) in subsection (c), by striking ``The authority'' and 
     all that follows and inserting the following: ``The authority 
     provided by this section terminates October 1, 2007.''; and
       (2) by adding at the end the following subsection:
       ``(d) Report.--Not later than January 10, 2007, the 
     Secretary shall conduct a study based on the experience under 
     the program under this section and submit to the Committee on 
     Energy and Commerce of the House of Representatives, and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate, a report describing the findings of the study. The 
     objectives of the study shall include determining--
       ``(1) the number of devices reviewed under this section;
       ``(2) the number of devices reviewed under this section 
     that were ultimately cleared by the Secretary;
       ``(3) the number of devices reviewed under this section 
     that were ultimately not cleared by the Secretary;
       ``(4) the average time period for a review under this 
     section (including the time it takes for the Secretary to 
     review a recommendation of an accredited person under 
     subsection (a) and determine the initial device 
     classification);
       ``(5) the average time period identified in paragraph (4) 
     compared to the average time period for review of devices 
     solely by the Secretary pursuant to section 510(k);
       ``(6) if there is a difference in the average time period 
     under paragraph (4) and the average time period under 
     paragraph (5), the reasons for such difference;
       ``(7) whether the quality of reviews under this section for 
     devices for which no guidance has been issued is 
     qualitatively inferior to reviews by the Secretary for 
     devices for which no guidance has been issued;
       ``(8) whether the quality of reviews under this section of 
     devices for which no guidance has been issued is 
     qualitatively inferior to reviews under this section of 
     devices for which guidance has been issued;
       ``(9) whether this section has in any way jeopardized or 
     improved the public health;

[[Page 20773]]

       ``(10) any impact of this section on resources available to 
     the Secretary to review reports under section 510(k); and
       ``(11) any suggestions for continuation, modification 
     (including contraction or expansion of device eligibility), 
     or termination of this section that the Secretary determines 
     to be appropriate.''.

     SEC. 203. DEBARMENT OF ACCREDITED PERSONS.

       Section 306 of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 335a) is amended by adding at the end the following 
     subsection:
       ``(m) Devices; Mandatory Debarment Regarding Third-Party 
     Inspections and Reviews.--
       ``(1) In general.--If the Secretary finds that a person has 
     been convicted of a felony under section 301(gg), the 
     Secretary shall debar such person from being accredited under 
     section 523(b) or 704(g)(2) and from carrying out activities 
     under an agreement described in section 803(b).
       ``(2) Debarment period.--The Secretary shall debar a person 
     under paragraph (1) for the following periods:
       ``(A) The period of debarment of a person (other than an 
     individual) shall not be less than 1 year or more than 10 
     years, but if an act leading to a subsequent debarment under 
     such paragraph occurs within 10 years after such person has 
     been debarred under such paragraph, the period of debarment 
     shall be permanent.
       ``(B) The debarment of an individual shall be permanent.
       ``(3) Termination of debarment; judicial review; other 
     matters.--Subsections (c)(3), (d), (e), (i), (j), and (l)(1) 
     apply with respect to a person (other than an individual) or 
     an individual who is debarred under paragraph (1) to the same 
     extent and in the same manner as such subsections apply with 
     respect to a person who is debarred under subsection (a)(1), 
     or an individual who is debarred under subsection (a)(2), 
     respectively.''.

     SEC. 204. DESIGNATION AND REGULATION OF COMBINATION PRODUCTS.

       Section 503(g) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 353(g)) is amended--
       (1) in paragraph (1)--
       (A) in the first sentence, by striking ``shall designate a 
     component of the Food and Drug Administration'' and inserting 
     ``shall in accordance with this subsection assign an agency 
     center''; and
       (B) in each of subparagraphs (A) through (C), by striking 
     ``the persons charged'' and inserting ``the agency center 
     charged'';
       (2) by redesignating paragraph (4) as paragraph (5);
       (3) by inserting after paragraph (3) the following 
     paragraph:
       ``(4)(A) Not later than 60 days after the date of the 
     enactment of this paragraph, the Secretary shall establish 
     within the Office of the Commissioner of Food and Drugs an 
     office to ensure the prompt assignment of combination 
     products to agency centers, the timely and effective 
     premarket review of such products, and consistent and 
     appropriate postmarket regulation of like products subject to 
     the same statutory requirements to the extent permitted by 
     law. Additionally, the office shall, in determining whether a 
     product is to be designated a combination product, consult 
     with the component within the Office of the Commissioner of 
     Food and Drugs that is responsible for such determinations. 
     Such office (referred to in this paragraph as the `Office') 
     shall have appropriate scientific and medical expertise, and 
     shall be headed by a director.
       ``(B) In carrying out this subsection, the Office shall, 
     for each combination product, promptly assign an agency 
     center with primary jurisdiction in accordance with paragraph 
     (1) for the premarket review of such product.
       ``(C)(i) In carrying out this subsection, the Office shall 
     ensure timely and effective premarket reviews by overseeing 
     the timeliness of and coordinating reviews involving more 
     than one agency center.
       ``(ii) In order to ensure the timeliness of the premarket 
     review of a combination product, the agency center with 
     primary jurisdiction for the product, and the consulting 
     agency center, shall be responsible to the Office with 
     respect to the timeliness of the premarket review.
       ``(D) In carrying out this subsection, the Office shall 
     ensure the consistency and appropriateness of postmarket 
     regulation of like products subject to the same statutory 
     requirements to the extent permitted by law.
       ``(E)(i) Any dispute regarding the timeliness of the 
     premarket review of a combination product may be presented to 
     the Office for resolution, unless the dispute is clearly 
     premature.
       ``(ii) During the review process, any dispute regarding the 
     substance of the premarket review may be presented to the 
     Commissioner of Food and Drugs after first being considered 
     by the agency center with primary jurisdiction of the 
     premarket review, under the scientific dispute resolution 
     procedures for such center. The Commissioner of Food and 
     Drugs shall consult with the Director of the Office in 
     resolving the substantive dispute.
       ``(F) The Secretary, acting through the Office, shall 
     review each agreement, guidance, or practice of the Secretary 
     that is specific to the assignment of combination products to 
     agency centers and shall determine whether the agreement, 
     guidance, or practice is consistent with the requirements of 
     this subsection. In carrying out such review, the Secretary 
     shall consult with stakeholders and the directors of the 
     agency centers. After such consultation, the Secretary shall 
     determine whether to continue in effect, modify, revise, or 
     eliminate such agreement, guidance, or practice, and shall 
     publish in the Federal Register a notice of the availability 
     of such modified or revised agreement, guidance or practice. 
     Nothing in this paragraph shall be construed as preventing 
     the Secretary from following each agreement, guidance, or 
     practice until continued, modified, revised, or eliminated.
       ``(G) Not later than one year after the date of the 
     enactment of this paragraph and annually thereafter, the 
     Secretary shall report to the appropriate committees of 
     Congress on the activities and impact of the Office. The 
     report shall include provisions--
       ``(i) describing the numbers and types of combination 
     products under review and the timeliness in days of such 
     assignments, reviews, and dispute resolutions;
       ``(ii) identifying the number of premarket reviews of such 
     products that involved a consulting agency center; and
       ``(iii) describing improvements in the consistency of 
     postmarket regulation of combination products.
       ``(H) Nothing in this paragraph shall be construed to limit 
     the regulatory authority of any agency center.''; and
       (4) in paragraph (5) (as redesignated by paragraph (2) of 
     this section)--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (B) by inserting before subparagraph (B) the following 
     subparagraph:
       ``(A) The term `agency center' means a center or 
     alternative organizational component of the Food and Drug 
     Administration.''.

     SEC. 205. REPORT ON CERTAIN DEVICES.

       Not later than one year after the date of enactment of this 
     Act, the Secretary of Health and Human Services shall report 
     to the appropriate committees of Congress on the timeliness 
     and effectiveness of device premarket reviews by centers 
     other than the Center for Devices and Radiological Health. 
     Such report shall include information on the times required 
     to log in and review original submissions and supplements, 
     times required to review manufacturers' replies to 
     submissions, and times to approve or clear such devices. Such 
     report shall contain the Secretary's recommendations on any 
     measures needed to improve performance including, but not 
     limited to, the allocation of additional resources. Such 
     report also shall include the Secretary's specific 
     recommendation on whether responsibility for regulating such 
     devices should be reassigned to those persons within the Food 
     and Drug Administration who are primarily charged with 
     regulating other types of devices, and whether such a 
     transfer could have a deleterious impact on the public health 
     and on the safety of such devices.

     SEC. 206. ELECTRONIC LABELING.

       Section 502(f) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 352(f)) is amended by adding at the end the 
     following: ``Required labeling for prescription devices 
     intended for use in health care facilities may be made 
     available solely by electronic means provided that the 
     labeling complies with all applicable requirements of law 
     and, that the manufacturer affords health care facilities the 
     opportunity to request the labeling in paper form, and after 
     such request, promptly provides the health care facility the 
     requested information without additional cost.''.

     SEC. 207. ELECTRONIC REGISTRATION.

       Section 510 of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 360) is amended by adding at the end the following:
       ``(p) Registrations under subsections (b), (c), (d), and 
     (i) (including the submission of updated information) shall 
     be submitted to the Secretary by electronic means, upon a 
     finding by the Secretary that the electronic receipt of such 
     registrations is feasible, unless the Secretary grants a 
     request for waiver of such requirement because use of 
     electronic means is not reasonable for the person requesting 
     such waiver.''.

     SEC. 208. INTENDED USE.

       Section 513(i)(1)(E) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 360c(i)(1)(E)) is amended by striking 
     clause (iv).

     SEC. 209. MODULAR REVIEW.

       Section 515(c) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 360e(c)) is amended by adding at the end the 
     following:
       ``(3)(A) Prior to the submission of an application under 
     this subsection, the Secretary shall accept and review any 
     portion of the application that the applicant and the 
     Secretary agree is complete, ready, and appropriate for 
     review, except that such requirement does not apply, and the 
     Secretary has discretion whether to accept and review such 
     portion, during any period in which, under section 738(g), 
     the Secretary does not have the authority to collect fees 
     under section 738(a).
       ``(B) Each portion of a submission reviewed under 
     subparagraph (A) and found acceptable

[[Page 20774]]

     by the Secretary shall not be further reviewed after receipt 
     of an application that satisfies the requirements of 
     paragraph (1), unless an issue of safety or effectiveness 
     provides the Secretary reason to review such accepted 
     portion.
       ``(C) Whenever the Secretary determines that a portion of a 
     submission under subparagraph (A) is unacceptable, the 
     Secretary shall, in writing, provide to the applicant a 
     description of any deficiencies in such portion and identify 
     the information that is required to correct these 
     deficiencies, unless the applicant is no longer pursuing the 
     application.''.

     SEC. 210. PEDIATRIC EXPERTISE REGARDING CLASSIFICATION-PANEL 
                   REVIEW OF PREMARKET APPLICATIONS.

       Section 515(c) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 360e(c)), as amended by section 302(c)(2)(A) of 
     this Act, is amended in paragraph (3) by adding at the end 
     the following: ``Where appropriate, the Secretary shall 
     ensure that such panel includes, or consults with, one or 
     more pediatric experts.''.

     SEC. 211. INTERNET LIST OF CLASS II DEVICES EXEMPTED FROM 
                   REQUIREMENT OF PREMARKET NOTIFICATION.

       Section 510(m)(1) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 360(m)(1)) is amended by adding at the end the 
     following: ``The Secretary shall publish such list on the 
     Internet site of the Food and Drug Administration. The list 
     so published shall be updated not later than 30 days after 
     each revision of the list by the Secretary.''.

     SEC. 212. STUDY BY INSTITUTE OF MEDICINE OF POSTMARKET 
                   SURVEILLANCE REGARDING PEDIATRIC POPULATIONS.

       (a) In General.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary'') shall 
     request the Institute of Medicine to enter into an agreement 
     with the Secretary under which such Institute conducts a 
     study for the purpose of determining whether the system under 
     the Federal Food, Drug, and Cosmetic Act for the postmarket 
     surveillance of medical devices provides adequate safeguards 
     regarding the use of devices in pediatric populations.
       (b) Certain Matters.--The Secretary shall ensure that 
     determinations made in the study under subsection (a) include 
     determinations of--
       (1) whether postmarket surveillance studies of implanted 
     medical devices are of long enough duration to evaluate the 
     impact of growth and development for the number of years that 
     the child will have the implant, and whether the studies are 
     adequate to evaluate how children's active lifestyles may 
     affect the failure rate and longevity of the implant; and
       (2) whether the postmarket surveillance by the Food and 
     Drug Administration of medical devices used in pediatric 
     populations is sufficient to provide adequate safeguards for 
     such populations, taking into account the Secretary's 
     monitoring of commitments made at the time of approval of 
     medical devices, such as phase IV trials, and the Secretary's 
     monitoring and use of adverse reaction reports, registries, 
     and other postmarket surveillance activities.
       (c) Report to Congress.--The Secretary shall ensure that, 
     not later than four years after the date of the enactment of 
     this Act, a report describing the findings of the study under 
     subsection (a) is submitted to the Congress. The report shall 
     include any recommendations of the Secretary for 
     administrative or legislative changes to the system of 
     postmarket surveillance referred to in such subsection.

     SEC. 213. GUIDANCE REGARDING PEDIATRIC DEVICES.

       Not later than 270 days after the date of the enactment of 
     this Act, the Secretary of Health and Human Services shall 
     issue guidance on the following:
       (1) The type of information necessary to provide reasonable 
     assurance of the safety and effectiveness of medical devices 
     intended for use in pediatric populations.
       (2) Protections for pediatric subjects in clinical 
     investigations of the safety or effectiveness of such 
     devices.

     SEC. 214. BREAST IMPLANTS; STUDY BY COMPTROLLER GENERAL.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study to determine the following with 
     respect to breast implants:
       (1) The content of information typically provided by health 
     professionals to women who consult with such professionals on 
     the issue of whether to undergo breast implant surgery.
       (2) Whether such information is provided by physicians or 
     other health professionals, and whether the information is 
     provided verbally or in writing, and at what point in the 
     process of determining whether to undergo surgery is such 
     information provided.
       (3) Whether the information presented, as a whole, provides 
     a complete and accurate discussion of the risks and benefits 
     of breast implants, and the extent to which women who receive 
     such information understand the risks and benefits.
       (4) The number of adverse events that have been reported, 
     and whether such events have been adequately investigated.
       (5) With respect to women who participate as subjects in 
     research being carried out regarding the safety and 
     effectiveness of breast implants:
       (A) The content of information provided to the women during 
     the process of obtaining the informed consent of the women to 
     be subjects, and the extent to which such information is 
     updated.
       (B) Whether such process provides written explanations of 
     the criteria for being subjects in the research.
       (C) The point at which, in the planning or conduct of the 
     research, the women are provided information regarding the 
     provision of informed consent to be subjects.
       (b) Report.--The Comptroller General shall submit to the 
     Congress a report describing the findings of the study.
       (c) Definition.--For purposes of this section, the term 
     ``breast implant'' means a breast prosthesis that is 
     implanted to augment or reconstruct the female breast.

     SEC. 215. BREAST IMPLANTS; RESEARCH THROUGH NATIONAL 
                   INSTITUTES OF HEALTH.

       (a) Report on Status of Current Research.--Not later than 
     180 days after the date of the enactment of this Act, the 
     Director of the National Institutes of Health shall submit to 
     the Congress a report describing the status of research on 
     breast implants (as defined in section 213(c)) being 
     conducted or supported by such Institutes.
       (b) Research on Long-Term Implications.--Part H of title IV 
     of the Public Health Service Act (42 U.S.C. 289 et seq.) is 
     amended by adding at the end of the following section:

     ``SEC. 498C. BREAST IMPLANT RESEARCH.

       ``(a) In General.--The Director of NIH may conduct or 
     support research to examine the long-term health implications 
     of silicone breast implants, both gel and saline filled. Such 
     research studies may include the following:
       ``(1) Developing and examining techniques to measure 
     concentrations of silicone in body fluids and tissues.
       ``(2) Surveillance of recipients of silicone breast 
     implants, including long-term outcomes and local 
     complications.
       ``(b) Definition.--For purposes of this section, the term 
     `breast implant' means a breast prosthesis that is implanted 
     to augment or reconstruct the female breast.''.

                    TITLE III--ADDITIONAL AMENDMENTS

     SEC. 301. IDENTIFICATION OF MANUFACTURER OF MEDICAL DEVICES.

       (a) In General.--Section 502 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 352) is amended by adding at the end 
     the following:
       ``(u) If it is a device, unless it, or an attachment 
     thereto, prominently and conspicuously bears the name of the 
     manufacturer of the device, a generally recognized 
     abbreviation of such name, or a unique and generally 
     recognized symbol identifying such manufacturer, except that 
     the Secretary may waive any requirement under this paragraph 
     for the device if the Secretary determines that compliance 
     with the requirement is not feasible for the device or would 
     compromise the provision of reasonable assurance of the 
     safety or effectiveness of the device.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect 18 months after the date of the enactment of 
     this Act, and only applies to devices introduced or delivered 
     for introduction into interstate commerce after such 
     effective date.

     SEC. 302. SINGLE-USE MEDICAL DEVICES.

       (a) Required Statements on Labeling.--
       (1) In general.--Section 502 of the Federal Food, Drug, and 
     Cosmetic Act, as amended by section 301 of this Act, is 
     amended by adding at the end the following:
       ``(v) If it is a reprocessed single-use device, unless all 
     labeling of the device prominently and conspicuously bears 
     the statement `Reprocessed device for single use. Reprocessed 
     by __.' The name of the manufacturer of the reprocessed 
     device shall be placed in the space identifying the person 
     responsible for reprocessing.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     takes effect 15 months after the date of the enactment of 
     this Act, and only applies to devices introduced or delivered 
     for introduction into interstate commerce after such 
     effective date.
       (b) Premarket Notification.--Section 510 of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 360) is amended by 
     inserting after subsection (n) the following:
       ``(o)(1) With respect to reprocessed single-use devices for 
     which reports are required under subsection (k):
       ``(A) The Secretary shall identify such devices or types of 
     devices for which reports under such subsection must, in 
     order to ensure that the device is substantially equivalent 
     to a predicate device, include validation data, the types of 
     which shall be specified by the Secretary, regarding cleaning 
     and sterilization, and functional performance demonstrating 
     that the single-use device will remain substantially 
     equivalent to its predicate device after the maximum number 
     of times the device is reprocessed as intended by the person 
     submitting the premarket notification. Within six months 
     after enactment of this subsection, the Secretary shall 
     publish in the Federal Register a list of the types so 
     identified, and shall revise the list as appropriate. Reports 
     under subsection (k) for devices or types of devices within a 
     type

[[Page 20775]]

     included on the list are, upon publication of the list, 
     required to include such validation data.
       ``(B) In the case of each report under subsection (k) that 
     was submitted to the Secretary before the publication of the 
     initial list under subparagraph (A), or any revision thereof, 
     and was for a device or type of device included on such list, 
     the person who submitted the report under subsection (k) 
     shall submit validation data as described in subparagraph (A) 
     to the Secretary not later than nine months after the 
     publication of the list. During such nine-month period, the 
     Secretary may not take any action under this Act against such 
     device solely on the basis that the validation data for the 
     device have not been submitted to the Secretary. After the 
     submission of the validation data to the Secretary, the 
     Secretary may not determine that the device is misbranded 
     under section 502(o), adulterated under section 501(f)(1)(B), 
     or take action against the device under section 301(p) for 
     failure to provide any information required by subsection (k) 
     until (i) the review is terminated by withdrawal of the 
     submission of the report under subsection (k); (ii) the 
     Secretary finds the data to be acceptable and issues a 
     letter; or (iii) the Secretary determines that the device is 
     not substantially equivalent to a predicate device. Upon a 
     determination that a device is not substantially equivalent 
     to a predicate device, or if such submission is withdrawn, 
     the device can no longer be legally marketed.
       ``(C) In the case of a report under subsection (k) for a 
     device identified under subparagraph (A) that is of a type 
     for which the Secretary has not previously received a report 
     under such subsection, the Secretary may, in advance of 
     revising the list under subparagraph (A) to include such 
     type, require that the report include the validation data 
     specified in subparagraph (A).
       ``(D) Section 502(o) applies with respect to the failure of 
     a report under subsection (k) to include validation data 
     required under subparagraph (A).
       ``(2) With respect to critical or semi-critical reprocessed 
     single-use devices that, under subsection (l) or (m), are 
     exempt from the requirement of submitting reports under 
     subsection (k):
       ``(A) The Secretary shall identify such devices or types of 
     devices for which such exemptions should be terminated in 
     order to provide a reasonable assurance of the safety and 
     effectiveness of the devices. The Secretary shall publish in 
     the Federal Register a list of the devices or types of 
     devices so identified, and shall revise the list as 
     appropriate. The exemption for each device or type included 
     on the list is terminated upon the publication of the list. 
     For each report under subsection (k) submitted pursuant to 
     this subparagraph the Secretary shall require the validation 
     data described in paragraph (1)(A).
       ``(B) For each device or type of device included on the 
     list under subparagraph (A), a report under subsection (k) 
     shall be submitted to the Secretary not later than 15 months 
     after the publication of the initial list, or a revision of 
     the list, whichever terminates the exemption for the device. 
     During such 15-month period, the Secretary may not take any 
     action under this Act against such device solely on the basis 
     that such report has not been submitted to the Secretary. 
     After the submission of the report to the Secretary the 
     Secretary may not determine that the device is misbranded 
     under section 502(o), adulterated under section 501(f)(1)(B), 
     or take action against the device under section 301(p) for 
     failure to provide any information required by subsection (k) 
     until (i) the review is terminated by withdrawal of the 
     submission; (ii) the Secretary determines by order that the 
     device is substantially equivalent to a predicate device; or 
     (iii) the Secretary determines by order that the device is 
     not substantially equivalent to a predicate device. Upon a 
     determination that a device is not substantially equivalent 
     to a predicate device, the device can no longer be legally 
     marketed.
       ``(C) In the case of semi-critical devices, the initial 
     list under subparagraph (A) shall be published not later than 
     18 months after the effective date of this subsection. In the 
     case of critical devices, the initial list under such 
     subparagraph shall be published not later than six months 
     after such effective date.
       ``(D) Section 502(o) applies with respect to the failure to 
     submit a report under subsection (k) that is required 
     pursuant to subparagraph (A), including a failure of the 
     report to include validation data required in such 
     subparagraph.
       ``(E) The termination under subparagraph (A) of an 
     exemption under subsection (l) or (m) for a critical or 
     semicritical reprocessed single-use device does not terminate 
     the exemption under subsection (l) or (m) for the original 
     device.''.
       (c) Premarket Report.--Section 515 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 360e) is amended--
       (1) in subsection (a), in the matter after and below 
     paragraph (2), by inserting before the period the following: 
     ``or, as applicable, an approval under subsection (c)(2) of a 
     report seeking premarket approval''; and
       (2) in subsection (c)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following 
     paragraph:
       ``(2)(A) Any person may file with the Secretary a report 
     seeking premarket approval for a class III device referred to 
     in subsection (a) that is a reprocessed single-use device. 
     Such a report shall contain the following:
       ``(i) The device name, including both the trade or 
     proprietary name and the common or usual name.
       ``(ii) The establishment registration number of the owner 
     or operator submitting the report.
       ``(iii) Actions taken to comply with performance standards 
     under section 514.
       ``(iv) Proposed labels, labeling, and advertising 
     sufficient to describe the device, its intended use, and 
     directions for use.
       ``(v) Full reports of all information, published or known 
     to or which should be reasonably known to the applicant, 
     concerning investigations which have been made to show 
     whether or not the device is safe or effective.
       ``(vi) A description of the device's components, 
     ingredients, and properties.
       ``(vii) A full description of the methods used in, and the 
     facilities and controls used for, the reprocessing and 
     packing of the device.
       ``(viii) Such samples of the device that the Secretary may 
     reasonably require.
       ``(ix) A financial certification or disclosure statement or 
     both, as required by part 54 of title 21, Code of Federal 
     Regulations.
       ``(x) A statement that the applicant believes to the best 
     of the applicant's knowledge that all data and information 
     submitted to the Secretary are truthful and accurate and that 
     no material fact has been omitted in the report.
       ``(xi) Any additional data and information, including 
     information of the type required in paragraph (1) for an 
     application under such paragraph, that the Secretary 
     determines is necessary to determine whether there is 
     reasonable assurance of safety and effectiveness for the 
     reprocessed device.
       ``(xii) Validation data described in section 510(o)(1)(A) 
     that demonstrates that the reasonable assurance of the safety 
     or effectiveness of the device will remain after the maximum 
     number of times the device is reprocessed as intended by the 
     person submitting such report.
       ``(B) In the case of a class III device referred to in 
     subsection (a) that is a reprocessed single-use device:
       ``(i) Subparagraph (A) of this paragraph applies in lieu of 
     paragraph (1).
       ``(ii) Subject to clause (i), the provisions of this 
     section apply to a report under subparagraph (A) to the same 
     extent and in the same manner as such provisions apply to an 
     application under paragraph (1).
       ``(iii) Each reference in other sections of this Act to an 
     application under this section, other than such a reference 
     in section 737 or 738, shall be considered to be a reference 
     to a report under subparagraph (A).
       ``(iv) Each reference in other sections of this Act to a 
     device for which an application under this section has been 
     approved, or has been denied, suspended, or withdrawn, other 
     than such a reference in section 737 or 738, shall be 
     considered to be a reference to a device for which a report 
     under subparagraph (A) has been approved, or has been denied, 
     suspended, or withdrawn, respectively.''.
       (d) Definitions.--Section 201 of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 321) is amended by adding at the 
     end the following:
       ``(ll)(1) The term `single-use device' means a device that 
     is intended for one use, or on a single patient during a 
     single procedure.
       ``(2)(A) The term `reprocessed', with respect to a single-
     use device, means an original device that has previously been 
     used on a patient and has been subjected to additional 
     processing and manufacturing for the purpose of an additional 
     single use on a patient. The subsequent processing and 
     manufacture of a reprocessed single-use device shall result 
     in a device that is reprocessed within the meaning of this 
     definition.
       ``(B) A single-use device that meets the definition under 
     clause (A) shall be considered a reprocessed device without 
     regard to any description of the device used by the 
     manufacturer of the device or other persons, including a 
     description that uses the term `recycled' rather than the 
     term `reprocessed'.
       ``(3) The term `original device' means a new, unused 
     single-use device.
       ``(mm)(1) The term `critical reprocessed single-use device' 
     means a reprocessed single-use device that is intended to 
     contact normally sterile tissue or body spaces during use.
       ``(2) The term `semi-critical reprocessed single-use 
     device' means a reprocessed single-use device that is 
     intended to contact intact mucous membranes and not penetrate 
     normally sterile areas of the body.''.

     SEC. 303. MEDWATCH.

       Not later than 6 months after the date of the enactment of 
     this Act, the Secretary of Health and Human Services shall 
     modify the MedWatch mandatory and voluntary forms to 
     facilitate the reporting of information by user facilities or 
     distributors as appropriate relating to reprocessed single-
     use devices, including the name of the reprocessor and 
     whether the device has been reused.


[[Page 20776]]




     Discharged from the Committee on Government Reform and Passed

  H.R. 5640, to amend title 5, United States Code, to ensure that the 
right of Federal employees to display the flag of the United States not 
be abridged.

                               H.R. 5640

       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 ``American Flag Pride Act''.

     SEC. 2. EMPLOYEES' RIGHT TO DISPLAY THE FLAG OF THE UNITED 
                   STATES.

       (a) In General.--Chapter 72 of title 5, United States Code, 
     is amended by adding at the end the following:

 ``SUBCHAPTER III--EMPLOYEES' RIGHT TO DISPLAY THE FLAG OF THE UNITED 
                                 STATES

     ``Sec. 7221. Definitions

       ``For purposes of this subchapter--
       ``(1) the term `flag' has the same meaning as is given the 
     term `flag, standard, colors, or ensign' under section 3 of 
     title 4; and
       ``(2) the term `Federal employee' includes a person under a 
     personal services contract with the United States (including 
     an individual employed by such a person).

     ``Sec. 7222. Employees' right to display the flag of the 
       United States

       ``No agency, officer, or other authority of the Government 
     of the United States shall adopt or enforce any policy, or 
     enter into any agreement, that would restrict or prevent a 
     Federal employee from displaying the flag of the United 
     States, or a pin of that flag, on his or her person, in his 
     or her workplace, or on a Government vehicle operated by such 
     employee.

     ``Sec. 7223. Limitations

       ``Nothing in this subchapter shall be considered to permit 
     any display or use which would be inconsistent with--
       ``(1) any provision of chapter 1 of title 4 or any rule or 
     custom pertaining to the proper display or use of the flag 
     (as established in or under such chapter or otherwise 
     applicable provisions of law); or
       ``(2) any reasonable restriction pertaining to the time, 
     place, or manner of displaying the flag of the United States 
     which is necessary--
       ``(A) for reasons of workplace safety; or
       ``(B) to prevent damage to public property.''.
       (b) Clerical Amendment.--The analysis for chapter 72 of 
     title 5, United States Code, is amended by adding at the end 
     the following:

 ``SUBCHAPTER III--EMPLOYEES' RIGHT TO DISPLAY THE FLAG OF THE UNITED 
                                 STATES

``7221. Definitions.
``7222. Employees' right to display the flag of the United States.
``7223. Limitations.''.


     Discharged from the Committee on Financial Services and Passed

  S. 1210, to reauthorize the Native American Housing Assistance and 
Self-Determination Act of 1996.

                                S. 1210

       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 ``Native American Housing 
     Assistance and Self-Determination Reauthorization Act of 
     2002''.

     SEC. 2. REAUTHORIZATION OF THE NATIVE AMERICAN HOUSING 
                   ASSISTANCE AND SELF-DETERMINATION ACT OF 1996.

       (a) Block Grants.--Section 108 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4117) is amended by striking ``1998, 1999, 2000, and 
     2001'' and inserting ``1998 through 2007''.
       (b) Federal Guarantees.--Section 605 of the Native American 
     Housing Assistance and Self-Determination Act of 1996 (25 
     U.S.C. 4195) is amended--
       (1) in subsection (a), by striking ``1997, 1998, 1999, 
     2000, and 2001'' and inserting ``1997 through 2007''; and
       (2) in subsection (b), by striking ``1997, 1998, 1999, 
     2000, and 2001'' and inserting ``1997 through 2007''.
       (c) Training and Technical Assistance.--Section 703 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4212) is amended by striking ``1997, 1998, 
     1999, 2000, and 2001'' and inserting ``1997 through 2007''.
       (d) Indian Housing Loan Guarantee Fund.--Section 184(i) of 
     the Housing and Community Development Act of 1992 (12 U.S.C. 
     1715z-13a(i)) is amended--
       (1) in paragraph (5)(C), by striking ``each fiscal year'' 
     and inserting ``each of fiscal years 1997 through 2007''; and
       (2) in paragraph (7), by striking ``each fiscal year'' and 
     inserting ``each of fiscal years 1997 through 2007''.

     SEC. 3. DEFINITIONS.

       Section 4 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4103) is amended by 
     adding at the end the following:
       ``(22) Housing related community development.--
       ``(A) In general.--The term `housing related community 
     development' means any tribally-owned and operated facility, 
     business, activity, or infrastructure that--
       ``(i) is necessary to the direct construction of 
     reservation housing; and
       ``(ii) would help an Indian tribe or its tribally-
     designated housing authority reduce the cost of construction 
     of Indian housing or otherwise promote the findings of this 
     Act.
       ``(B) Exclusion.--The term `housing and community 
     development' does not include any activity conducted by any 
     Indian tribe under the Indian Gaming Regulatory Act (25 
     U.S.C. 2710 et seq.).''.

     SEC. 4. BLOCK GRANTS AND GRANT REQUIREMENTS.

       Section 101(h) of the Native American Housing Assistance 
     and Self-Determination Act of 1996 (25 U.S.C. 4111(h)) is 
     amended--
       (1) in the heading, by inserting ``and Planning'' after 
     ``Administrative''; and
       (2) by inserting after the word ``Act'' the first place 
     that term appears, the following: ``for comprehensive housing 
     and community development planning activities and''.

     SEC. 5. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

       Section 104 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4114) is amended--
       (1) in subsection (a)(1)--
       (A) by striking ``A recipient'' and inserting the 
     following: ``Notwithstanding any other provision of this Act, 
     a recipient''; and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the recipient has agreed that it will utilize such 
     income for housing related activities in accordance with this 
     Act.''; and
       (2) in subsection (a)(2)--
       (A) in the heading, by inserting ``Restricted Access or'' 
     before the word ``Reduction'';
       (B) in subparagraph (B), by striking ``or'' at the end;
       (C) in subparagraph (C), by striking the period at the end 
     and inserting ``; or''; and
       (D) by adding at the end the following:
       ``(D) whether the recipient has expended retained program 
     income for housing-related activities.''.

     SEC. 6. REGULATIONS.

       Section 106(b)(2)(A) of the Native American Housing 
     Assistance and Self-Determination Act of 1996 (25 U.S.C. 
     4116(b)(2)(A)) is amended by inserting after ``required under 
     this Act'' the following: ``, including any regulations that 
     may be required pursuant to amendments made to this Act after 
     the date of enactment of this Act,''.

     SEC. 7. FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING 
                   ACTIVITIES.

       Section 601 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4191) is amended--
       (1) in subsection (a), by inserting after ``section 202'' 
     the following: ``and housing related community development 
     activity as consistent with the purposes of this Act'';
       (2) by striking subsection (b); and
       (3) by redesignating subsections (c) and (d) as subsections 
     (b) and (c), respectively.

     SEC. 8. FEASIBILITY STUDIES TO IMPROVE THE DELIVERY OF 
                   HOUSING ASSISTANCE IN NATIVE COMMUNITIES.

       Section 202 of the Native American Housing Assistance and 
     Self-Determination Act of 1996 (25 U.S.C. 4132) is amended by 
     adding at the end the following:
       ``(7) Community development demonstration project.--
       ``(A) In general.--Consistent with principles of Indian 
     self-determination and the findings of this Act, the 
     Secretary shall conduct and submit to Congress a study of the 
     feasibility of establishing a demonstration project in which 
     Indian tribes, tribal organizations, or tribal consortia are 
     authorized to expend amounts received pursuant to the Native 
     American Housing Assistance and Self-Determination 
     Reauthorization Act of 2002 in order to design, implement, 
     and operate community development demonstration projects.
       ``(B) Study.--Not later than 1 year after the date of 
     enactment of the Native American Housing Assistance and Self-
     Determination Reauthorization Act of 2002, the Secretary 
     shall submit the study conducted under subparagraph (A) to 
     the Committee on Banking, Housing, and Urban Affairs and the 
     Committee on Indian Affairs of the Senate, and the Committee 
     on Financial Services and the Committee on Resources of the 
     House of Representatives.
       ``(8) Self-determination act demonstration project.--
       ``(A) In general.--Consistent with the provisions of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450 et seq.), the Secretary shall conduct and submit 
     to Congress a study of the feasibility of establishing a 
     demonstration project in which Indian tribes and tribal 
     organizations are authorized to receive assistance in a 
     manner that maximizes tribal authority and decision-making in 
     the design and implementation of Federal housing and related 
     activity funding.
       ``(B) Study.--Not later than 1 year after the date of 
     enactment of the Native American Housing Assistance and Self-
     Determination Reauthorization Act of 2002, the Secretary 
     shall submit the study conducted under subparagraph (A) to 
     the Committee on Banking, Housing, and Urban Affairs and the 
     Committee on Indian Affairs of the Senate,

[[Page 20777]]

     and the Committee on Financial Services and the Committee on 
     Resources of the House of Representatives.''.

     SEC. 9. BLACK MOLD INFESTATION STUDY.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary of Housing and Urban Development shall--
       (1) complete a study on the extent of black mold 
     infestation of Native American housing in the United States; 
     and
       (2) submit to Congress a report that describes 
     recommendations of the Secretary for means by which to 
     address the infestation.


                                 Passed

  S. 1227, to authorize the Secretary of the Interior to conduct a 
study of the suitability and feasibility of establishing the Niagara 
Falls National Heritage Area in the State of New York, and for other 
purposes.

                                S. 1227

       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 ``Niagara Falls National 
     Heritage Area Study Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (2) Study area.--The term ``study area'' means lands in 
     Niagara County, New York, along and in the vicinity of the 
     Niagara River.

     SEC. 3. NIAGARA FALLS NATIONAL HERITAGE AREA STUDY.

       (a) In General.--The Secretary shall conduct a study of the 
     suitability and feasibility of establishing a heritage area 
     in the State of New York to be known as the ``Niagara Falls 
     National Heritage Area''.
       (b) Analyses and Documentation.--The study shall include 
     analysis and documentation of whether the study area--
       (1) contains an assemblage of natural, historical, scenic, 
     and cultural resources that represent distinctive aspects of 
     the heritage of the United States that--
       (A) are worthy of recognition, conservation, 
     interpretation, and continued use; and
       (B) would best be managed--
       (i) through partnerships among public and private entities; 
     and
       (ii) by combining diverse and sometimes noncontiguous 
     resources and active communities;
       (2) reflects traditions, customs, beliefs, and folklife 
     that are a valuable part of the story of the United States;
       (3) provides outstanding opportunities to conserve natural, 
     historical, scenic, or cultural features;
       (4) provides outstanding recreational and educational 
     opportunities;
       (5) contains resources important to the identified theme of 
     the study area that retain a degree of integrity capable of 
     supporting interpretation;
       (6) includes residents, business interests, nonprofit 
     organizations, and State and local governments that--
       (A) are involved in planning a national heritage area;
       (B) have developed a conceptual financial plan for a 
     national heritage area that outlines the roles for all 
     participants, including the Federal Government; and
       (C) have demonstrated support for the concept of a national 
     heritage area;
       (7) has a potential management entity to work in 
     partnership with residents, business interests, nonprofit 
     organizations, and State and local governments to develop a 
     national heritage area consistent with continued State and 
     local economic activity; and
       (8) has a conceptual boundary map that is supported by the 
     public.
       (c) Consultation.--In conducting the study, the Secretary 
     shall consult with--
       (1) State and local agencies; and
       (2) interested organizations within the study area.
       (d) Report.--Not later than 3 fiscal years after the date 
     on which funds are made available to carry out this Act, the 
     Secretary shall submit to the Committee on Resources of the 
     House of Representatives and the Committee on Energy and 
     Natural Resources of the Senate a report that describes the 
     findings, conclusions, and recommendations of the study under 
     subsection (a).

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated $300,000 to carry 
     out this Act.

   Discharged from the Committee on Energy and Commerce and Agreed to

  H. Con. Res. 502, expressing the sense of the Congress in support of 
Breast Cancer Awareness Month, and for other purposes.

                            H. Con. Res. 502

       Whereas every 3 minutes a woman is diagnosed with breast 
     cancer;
       Whereas 182,000 new cases of breast cancer are expected to 
     be diagnosed in the United States in 2002;
       Whereas breast cancer is the leading cause of death in 
     women between the ages of 40 and 55;
       Whereas 1 in 8 women who lives to age 85 will develop 
     breast cancer in her lifetime;
       Whereas when breast cancer is found early the survival rate 
     is 96 percent;
       Whereas mammograms and monthly breast self-examinations are 
     the key components of early detection; and
       Whereas Breast Cancer Awareness Month provides a special 
     opportunity to provide education about the importance of 
     monthly breast self-examinations and annual mammograms: Now, 
     therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That it is the sense of Congress that--
       (1) Breast Cancer Awareness Month provides a special 
     opportunity to provide education about the importance of 
     monthly breast self-examinations and annual mammograms;
       (2) it is appropriate to salute the more than 2,000,000 
     breast cancer survivors in the United States and the efforts 
     of victims, volunteers, and professionals who combat breast 
     cancer each day;
       (3) national and community organizations should be 
     recognized and applauded for their work in promoting 
     awareness about breast cancer and for providing information 
     and treatment to its sufferers; and
       (4) organizations and health practicioners are urged to use 
     this opportunity to promote awareness, monthly self-
     examinations, and annual mammograms.

  Mr. VITTER. Mr. Speaker, I rise today in support of H. Con. Res. 502. 
Every 3 minutes a woman is diagnosed with breast cancer. Please join me 
in support of Breast Cancer Awareness Month by co-sponsoring H. Con. 
Res. 502. Breast Cancer Awareness Month provides a special opportunity 
to provide education about the importance of monthly breast self-
examinations and annual mammograms. Early detection greatly increases 
victims' chances of survival.
  The facts of breast cancer are grim:
  This year 182,000 new cases of breast cancer are expected in the 
United States.
  Breast cancer is the leading cause of death in women between the ages 
of 40 and 55.
  One in eight women who lives to age 85 will develop breast cancer in 
her lifetime.
  But there is hope:
  When breast cancer is found early, the five-year survival rate is 96 
percent.
  Monthly breast self-examinations and mammograms are the key 
components of early detection.
  We recognize and salute the more than 2 million breast cancer 
survivors alive today in the United States.
  Families across the country are affected by this dreadful disease. 
Let's help educate people about the important life-saving measures of 
early detection. Please help me honor victims, survivors, volunteers, 
and professionals, who combat breast cancer each day.


  Discharged from the Committee on House Administration and Agreed to

  H. Res. 536, commending the staffs of members of Congress, the 
Capitol Police, the Office of the Attending Physician and his health 
care staff, and other members of the Capitol Hill community for their 
courage and professionalism during the days and weeks following the 
release of anthrax in Senator Daschle's office.

                              H. Res. 536

       Whereas there are approximately 30,000 legislative branch 
     employees who work on Capitol Hill including approximately 
     6,200 Senate employees, 11,500 House employees, and 12,800 
     staff from other entities;
       Whereas the Capitol Complex consists of approximately 285 
     acres comprised of 3 Senate office buildings, 3 House office 
     buildings, 2 House annex buildings, 3 Library of Congress 
     buildings, and several other facilities;
       Whereas on October 15, 2001, a letter containing anthrax 
     spores was opened in Senator Daschle's office;
       Whereas approximately 6,000 individuals were tested for 
     exposure to anthrax and 28 of those individuals tested 
     positive;
       Whereas approximately 1,000 individuals received a 60-day 
     supply of antibiotics as a precautionary measure;
       Whereas the House of Representatives closed the Rayburn and 
     Cannon House Office Buildings for 7 days and the Longworth 
     House Office building for 19 days;
       Whereas during the closure of the Senate and House Office 
     Buildings, Members and staff were forced to find alternative 
     office space or to work from their homes;
       Whereas Senate, House, and support staff continued and 
     still continue to perform their duties and serve the public 
     with courage and professionalism in spite of the threat of 
     anthrax exposure;
       Whereas officers of the Capitol Police have worked 12 hour 
     shifts in response to the September 11, 2001, attacks and 
     have been working additional overtime due to anthrax 
     contamination in the Capitol Complex to ensure the safety of 
     Members, staff, and visitors within the Capitol Complex; and
       Whereas the release of anthrax in Senator Daschle's office, 
     and the contamination of 2 Senate office buildings and 1 
     House office building, have further disrupted the daily

[[Page 20778]]

     routines of Members and their staffs and caused frustration 
     due to dislocated offices: Now, therefore, be it
       Resolved, That the House of Representatives--
       (1) commends the staffs of Members of Congress, the Capitol 
     Police, the Office of the Attending Physician and his health 
     care staff, and other members of the Capitol Hill community 
     for their courage, professionalism, and dedication to serving 
     the public in the aftermath of the September 11, 2001, 
     attacks and the release of anthrax in Senator Daschle's 
     office;
       (2) recognizes the Congressional leadership, Congressional 
     employees, the Capitol Police, and the Office of the 
     Attending Physician and the health care professionals in his 
     office, in particular, who by their quick actions and early 
     intervention prevented actual cases of anthrax within the 
     Capitol Complex; and
       (3) requests that the President recognize the courage and 
     professionalism of Congressional staff, the Capitol Police, 
     and other members of the Capitol Hill community for their 
     public service in continuing to do the public's business in 
     defiance of terrorist attacks.

 Discharged from the Committee on International Relations and Agreed to

  H. Con. Res. 479, expressing the sense of Congress regarding Greece's 
contributions to the war against terrorism and its successful efforts 
against the November 17 terrorist organization.

                            H. Con. Res. 479

       Whereas the United States and Greece, longtime friends and 
     allies, have fought side by side in defense of our shared 
     commitment to freedom and democracy, including in both World 
     Wars I and II, the Korean War, and Operations Desert Storm 
     and Enduring Freedom;
       Whereas in the immediate aftermath of the tragic events of 
     September 11, 2001, Greece was one of the first countries to 
     express its solidarity with the United States;
       Whereas Greece, as a NATO ally and a coalition partner in 
     the war against terrorism, has made significant contributions 
     to Operation Enduring Freedom and has provided military 
     personnel and humanitarian assistance to the International 
     Security Assistance Force in Afghanistan;
       Whereas President Bush has commended Greece for its 
     ``strong stand against terror'';
       Whereas Greece, through excellent work and cooperation with 
     United States and international law enforcement agencies, 
     recently arrested key members of the November 17 terrorist 
     organization;
       Whereas President Bush stated that Greece's ``successful 
     law enforcement operations against a terrorist organization 
     [November 17] responsible for three decades of terrorist 
     attacks underscore the important contributions Greece is 
     making to the global war on terrorism''; and
       Whereas the arrest of the November 17 terrorists will 
     contribute to a safe and secure environment for staging the 
     2004 Olympic Games in Athens, Greece: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That Congress--
       (1) commends Greece for its outstanding contributions to 
     the global war against terrorism, including military support 
     for Operation Enduring Freedom, humanitarian assistance for 
     Afghanistan, and participation in the International Security 
     Assistance Force in Afghanistan; and
       (2) recognizes Greece's success in apprehending key members 
     of the November 17 terrorist organization, commends the 
     cooperation between United States and Greek law enforcement 
     agencies, and urges continued efforts to dismantle completely 
     the November 17 terrorist organization, as such efforts will 
     also contribute to a safe and secure environment for staging 
     the 2004 Olympics in Athens, Greece.


 Discharged from the Committee on International Relations and Agreed to

  H. Con. Res. 492, welcoming Her Majesty Queen Sirikit of Thailand 
upon her arrival in the United States.

                            H. Con. Res. 492

       Whereas the United States and the Kingdom of Thailand have 
     enjoyed 169 years of peaceful and constructive relations 
     since the signing of the Treaty of Amity and Commerce in 
     1833;
       Whereas the aforesaid document was the first such treaty 
     signed between the United States and any Asian nation;
       Whereas the United States enjoys both a bilateral security 
     agreement and a military assistance agreement with Thailand 
     and conducts several military exercises with the armed forces 
     of Thailand every year, the largest of which is the Cobra 
     Gold exercise;
       Whereas Her Majesty Queen Sirikit has made major 
     contributions to advancing the social and economic welfare 
     and health of the people of Thailand, most notably as 
     President of the Thai Red Cross Society;
       Whereas in order to assist the rural poor of Thailand, Her 
     Majesty Queen Sirikit serves as patron and chairperson of the 
     Foundation for the Promotion of Supplementary Occupations and 
     Related Techniques (SUPPORT);
       Whereas in her capacity as President of the Thai Red Cross 
     Society, Her Majesty Queen Sirikit established the Khao Larn 
     Thai Red Cross Center to provide food, shelter, and medical 
     attention to Cambodian refugees fleeing turmoil in their 
     country; and
       Whereas Her Majesty Queen Sirikit's contributions to the 
     welfare of Thai citizens and of international refugees have 
     been widely recognized by groups as diverse as the United 
     Nations Food and Agriculture Organization, the Fletcher 
     School of Law and Diplomacy, and the British Royal College of 
     Physicians: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That the Congress welcomes Her Majesty Queen 
     Sirikit on her visit to the United States, and expresses the 
     hope that her visit will further strengthen the deep 
     historical relationship between the United States and the 
     Kingdom of Thailand.


Discharged from the Committee on International Relations, Amended, and 
                               Agreed to

  H. Con. Res. 349, calling for an end to the sexual exploitation of 
refugees.

                            H. Con. Res. 349

       Whereas the United Nations and organizations engaged in 
     international humanitarian relief periodically receive 
     reports of sexual exploitation of refugees, particularly 
     women and children;
       Whereas last year a report commissioned by the United 
     Nations High Commissioner of Refugees and the British 
     organization Save the Children accuses aid workers in 
     Liberia, Sierra Leone, and Guinea of refusing to give food 
     and medicine to young girls unless they perform sexual 
     favors;
       Whereas in response to this report the Secretary General of 
     the United Nations denounced sexual exploitation of refugees 
     and called for a full investigation of the humanitarian staff 
     from the agencies involved;
       Whereas the charges against aid workers in West Africa are 
     still being investigated and in recent years there have been 
     reports implicating employees of international 
     nongovernmental organizations, government agencies 
     responsible for humanitarian response, and peacekeeping 
     forces in sexual exploitation of refugees;
       Whereas many of these reports have involved children, some 
     as young as 10 to 12 years of age;
       Whereas the insufficiency of food rations in refugee camps 
     has been cited as a primary factor contributing to sexual 
     exploitation;
       Whereas refugees are often extremely poor and cut off from 
     employment and other ordinary means of income, so that they 
     can be highly susceptible to demands that they exchange sex 
     for food to help their families survive: and
       Whereas the relationship between refugee workers and 
     refugees is a custodial or caregiving relationship in which 
     the custodian or caregiver can exercise substantial power 
     over the life of the other party, and which carries a 
     corresponding risk of abuse: Now, therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That the Congress--
       (1) supports the Secretary General of the United Nations in 
     condemning the sexual exploitation of children by 
     humanitarian aid workers;
       (2) urges the United Nations to conduct a comprehensive 
     worldwide investigation into the extent, if any, of sexual 
     exploitation of refugees by agents or employees of United 
     Nations agencies, of other international nongovernmental 
     organizations, and of governments;
       (3) urges the President to--
       (A) affirm the commitment of the United States to 
     protecting the well-being and human rights of women and 
     children, particularly those in refugee situations; and
       (B) instruct the Administrator of the United States Agency 
     for International Development and the Secretary of 
     Agriculture to review the distribution of food assistance to 
     refugee communities throughout the world to ensure that 
     humanitarian assistance to refugees provided by the United 
     States is respectful of the human rights of women and 
     children and is distributed in such a way as to minimize the 
     risk of sexual exploitation; and
       (4) urges the Secretary General, the President, and the 
     executive authorities of all governmental and nongovernmental 
     entities engaged in refugee work to adopt codes of conduct 
     for employees, contractors, and other agents of the United 
     Nations, of the United States Government, and of such 
     governmental and nongovernmental entities, respectively, who 
     are engaged in refugee work that strictly prohibit sexual 
     relationships between international refugee workers and those 
     entrusted to their care, and to enforce these prohibitions 
     vigorously.
       Amend the title so as to read: ``Concurrent resolution 
     calling for effective measures to end the sexual exploitation 
     of refugees.''.

Discharged from the Committee on International Relations, Amended, and 
                               Agreed To

  House Concurrent Resolution 437, recognizing the Republic of Turkey 
for its cooperation in the campaign against global terrorism, for its 
commitment of forces and assistance to Operation Enduring Freedom and 
subsequent missions in Afghanistan, and for

[[Page 20779]]

initiating important economic reforms to build a stable and prosperous 
economy in Turkey.

                            H. Con. Res. 437

       Whereas the United States and the Republic of Turkey have 
     long been allies and share a commitment to preserving global 
     peace and stability;
       Whereas Turkey has demonstrated a steadfast commitment to 
     the war on terrorism;
       Whereas Turkey was the first country with a predominantly 
     Muslim population to offer direct military participation in 
     Operation Enduring Freedom;
       Whereas the use of the Incirlik Air Base in Turkey, from 
     which thousands of United States transport planes have taken 
     off since the beginning of Operation Enduring Freedom, has 
     greatly facilitated the campaign in Afghanistan;
       Whereas Turkey, the only member nation of NATO with a 
     predominantly Muslim population, has assumed command of the 
     International Security and Assistance Force in Afghanistan;
       Whereas Turkey faced financial and currency crises and a 
     recession in 2000 and 2001;
       Whereas Turkey's fiscal discipline and actions to restore 
     confidence in the banking system have laid the foundation for 
     sound economic recovery;
       Whereas the future growth and prosperity of Turkey depend 
     in large measure on encouraging more foreign investment in 
     Turkey and improving trade relations; and
       Whereas the United States is interested in building a 
     broader investment and trading relationship with Turkey: Now, 
     therefore, be it
       Resolved by the House of Representatives (the Senate 
     concurring), That Congress--
       (1) recognizes the Republic of Turkey for its steadfast 
     commitment to, and cooperation in, the war against terrorism, 
     including--
       (A) Turkey's immediate condemnation of the terrorist 
     attacks against the United States that occurred on September 
     11, 2001;
       (B) Turkey's offers to the United States of troops, the use 
     of air bases, increased force protection for United States 
     military personnel and equipment in Turkey, and diplomatic 
     overflight clearances;
       (C) Turkey's deployment of hundreds of troops to 
     Afghanistan to participate in the initial phase of the 
     International Security Assistance Force; and
       (D) Turkey's willingness to participate in and lead the 
     International Security Assistance Force in Afghanistan and 
     assist the United States in training the new Afghan security 
     forces; and
       (2) commends Turkey for implementing economic reforms, 
     particularly those which increase privatization and improve 
     the investment climate in Turkey.


         Amended by Committee Amendment, as Amended, and Passed

  H.R. 5200, to establish wilderness area, promote conservation, 
improve public land, and provide for high quality development in Clark 
County, Nevada, and for other purposes.

   Amendment in the Nature of a Substitute to H.R. 5200, as Reported

                     Offered by Mr. Hansen of Utah

       Strike all after the enacting clause and insert the 
     following new text:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Clark County Conservation of 
     Public Land and Natural Resources Act of 2002''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Authorization of appropriations.

 TITLE I--RED ROCK CANYON NATIONAL CONSERVATION AREA LAND EXCHANGE AND 
                          BOUNDARY ADJUSTMENT

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Findings and purposes.
Sec. 104. Red Rock Canyon land exchange.
Sec. 105. Status and management of lands.
Sec. 106. General provisions.

                       TITLE II--WILDERNESS AREAS

Sec. 201. Findings.
Sec. 202. Additions to National Wilderness Preservation System.
Sec. 203. Administration.
Sec. 204. Adjacent management.
Sec. 205. Military overflights.
Sec. 206. Native American cultural and religious uses.
Sec. 207. Release of wilderness study areas.
Sec. 208. Wildlife management.
Sec. 209. Wildfire management.
Sec. 210. Climatological data collection.
Sec. 211. National Park Service lands.

          TITLE III--TRANSFERS OF ADMINISTRATIVE JURISDICTION

Sec. 301. Transfer of administrative jurisdiction to the United States 
              Fish and Wildlife Service.
Sec. 302. Transfer of administrative jurisdiction to National Park 
              Service.

 TITLE IV--AMENDMENTS TO THE SOUTHERN NEVADA PUBLIC LAND MANAGEMENT ACT

Sec. 401. Disposal and exchange.

                       TITLE V--IVANPAH CORRIDOR

Sec. 501. Interstate Route 15 south corridor.
Sec. 502. Area of Critical Environmental Concern segregation.

           TITLE VI--SLOAN CANYON NATIONAL CONSERVATION AREA

Sec. 601. Short title.
Sec. 602. Purpose.
Sec. 603. Definitions.
Sec. 604. Establishment.
Sec. 605. Management.
Sec. 606. Sale of Federal parcel.
Sec. 607. Right-of-way.

                 TITLE VII--PUBLIC INTEREST CONVEYANCES

Sec. 701. Definition of map.
Sec. 702. Conveyance to the University of Nevada at Las Vegas Research 
              Foundation.
Sec. 703. Conveyance to the Las Vegas Metropolitan Police Department.
Sec. 704. Conveyance to the City of Henderson for the Nevada State 
              College at Henderson.
Sec. 705. Conveyance to the City of Las Vegas, Nevada.
Sec. 706. Sale of Federal parcel.

                TITLE VIII--HUMBOLDT PROJECT CONVEYANCE

Sec. 801. Short title.
Sec. 802. Definitions.
Sec. 803. Authority to convey title.
Sec. 804. Payment.
Sec. 805. Compliance with other laws.
Sec. 806. Revocation of withdrawals.
Sec. 807. Liability.
Sec. 808. National Environmental Policy Act.
Sec. 809. Future benefits.

                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Technical amendments to the Mesquite Lands Act 2001.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Agreement.--The term ``Agreement'' means the Agreement 
     entitled ``Interim Cooperative Management Agreement Between 
     the United States of the Interior Bureau of Land Management 
     and Clark County'', dated November 4, 1992.
       (2) County.--The term ``County'' means Clark County, 
     Nevada.
       (3) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Agriculture with respect to land in 
     the National Forest System; or
       (B) the Secretary of the Interior, with respect to other 
     Federal land.
       (4) State.--The term ``State'' means the State of Nevada.

     SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

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

 TITLE I--RED ROCK CANYON NATIONAL CONSERVATION AREA LAND EXCHANGE AND 
                          BOUNDARY ADJUSTMENT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Red Rock Canyon National 
     Conservation Area Protection and Enhancement Act of 2002''.

     SEC. 102. DEFINITIONS.

       As used in this title:
       (1) Corporation.--The term ``Corporation'' means the Howard 
     Hughes Corporation, an affiliate of the Rouse Company, with 
     its principal place of business at 10000 West Charleston 
     Boulevard, Las Vegas, Nevada.
       (2) Red rock canyon.--The term ``Red Rock Canyon'' means 
     the Red Rock Canyon National Conservation Area, consisting of 
     approximately 195,780 acres of public lands in Clark County, 
     Nevada, specially designated for protection in the Red Rock 
     Canyon National Conservation Area Establishment Act of 1990 
     (16 U.S.C. 460ccc et seq.), as depicted on the Red Rock 
     Canyon Map.
       (3) Red rock canyon map.--The term ``Red Rock Canyon Map'' 
     means the map entitled ``Southern Nevada Public Land 
     Management Act'', dated October 1, 2002.

     SEC. 103. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress makes the following findings:
       (1) Red Rock Canyon is a natural resource of major 
     significance to the people of Nevada and the United States. 
     It must be protected in its natural state for the enjoyment 
     of future generations of Nevadans and Americans, and enhanced 
     wherever possible.
       (2) In 1998, the Congress enacted the Southern Nevada 
     Public Lands Management Act of 1998 (Public Law 105-263), 
     which provided among other things for the protection and 
     enhancement of Red Rock Canyon.--
       (3) The Corporation owns much of the private land on Red 
     Rock Canyon's eastern boundary, and is engaged in developing 
     a large-scale master-planned community.
       (4) Included in the Corporation's land holdings are 1,071 
     acres of high-ground lands at the eastern edge of Red Rock 
     Canyon. These lands were intended to be included in Red Rock, 
     but to date have not been acquired by the United States. The 
     protection of this high-ground acreage would preserve an 
     important element of the western Las Vegas Valley viewshed.
       (5) The Corporation has volunteered to forgo development of 
     the high-ground lands, and proposes that the United States 
     acquire

[[Page 20780]]

     title to the lands so that they can be preserved in 
     perpetuity to protect and expand Red Rock Canyon.
       (b) Purposes.--The purpose of this title are:
       (1) To accomplish an exchange of lands between the United 
     States and the Corporation that would transfer certain high-
     ground lands to the United States in exchange for the 
     transfer of other lands of approximately equal value to the 
     Corporation.
       (2) To protect Red Rock Canyon and to expand its boundaries 
     as contemplated by the Bureau of Land Management, as depicted 
     on the Red Rock Canyon Map.
       (3) To further fulfill the purposes of the Southern Nevada 
     Public Lands Management Act of 1998 and the Red Rock Canyon 
     National Conservation Area Establishment Act of 1990.

     SEC. 104. RED ROCK CANYON LAND EXCHANGE.

       (a) Acquisition Requirement.--If the Corporation offers to 
     convey to the United States all right, title, and interest in 
     and to the approximately 1,082 acres of non-Federal land 
     owned by the Corporation and depicted on the Red Rock Canyon 
     Map as ``Offered Lands proposed addition to the Red Rock 
     Canyon NCA'', the Secretary shall accept such offer on behalf 
     of the United States, and not later than 90 days after the 
     date of the offer, except as otherwise provided in this 
     title, shall make the following conveyances:
       (1) To the Corporation, the approximately 998 acres of 
     Federal lands depicted on the Red Rock Canyon Map as ``Public 
     land selected for exchange''.
       (2) To Clark County, Nevada, the approximately 1,221 acres 
     of Federal lands depicted on the Red Rock Canyon Map as 
     ``Proposed BLM transfer for county park''.
       (b) Simultaneous Conveyances.--Title to the private 
     property and the Federal property to be conveyed pursuant to 
     this section shall be conveyed at the same time.
       (c) Map.--The Secretary shall keep the Red Rock Canyon Map 
     on file and available for public inspection in the Las Vegas 
     District Office of the Bureau of Land Management in Nevada, 
     and the State Office of the Bureau of Land Management, Reno, 
     Nevada.
       (d) Conditions.--
       (1) Hazardous materials.--As a condition of the conveyance 
     under --subsection (a)(1), the Secretary shall require that 
     the Corporation be responsible for removal of and remediation 
     related to any hazardous materials that are present on the 
     property conveyed to the United States under subsection (a).
       (2) Survey.--As a condition of the conveyance under 
     subsection (a)(1), the Secretary shall require that not later 
     than 90 days after the date of the offer referred to in 
     subsection (a), the Corporation shall provide a metes and 
     bounds survey, that is acceptable to the Corporation, Clark 
     County, and the Secretary, of the common boundary between the 
     parcels of land to be conveyed under subsection (a).
       (3) Lands conveyed to clark county.--As a condition of the 
     conveyance under subsection (a)(2), the Secretary shall 
     require that--
       (A) the lands transferred to Clark County by the United 
     States must be held in perpetuity by the County for use only 
     as a public park or as part of a public regional trail 
     system; and
       (B) if the County attempts to transfer the lands or to 
     undertake a use on the lands that is inconsistent with their 
     preservation and use as described in subparagraph (A), such 
     lands shall, at the discretion of the Secretary, revert to 
     the United States.
       (e) Valuation.--
       (1) Equal value exchange.--The values of the Federal parcel 
     and the non-Federal parcel, as determined under paragraph 
     (2)--
       (A) shall be equal; or
       (B) if the values are not equal, shall be equalized in 
     accordance with paragraph (3).
       (2) Appraisal.--The values of the Federal parcel and the 
     non-Federal parcel shall be determined by an appraisal, to be 
     approved by the Secretary, that complies with the Uniform 
     Standards for Federal Land Acquisitions.
       (3) Equalization.--
       (A) In general.--If the value of the non-Federal parcel is 
     less than the value of the Federal parcel--
       (i) the Corporation shall make a cash equalization payment 
     to the Secretary; or
       (ii) the Secretary shall, as determined to be appropriate 
     by the Secretary and the Corporation, reduce the acreage of 
     the Federal parcel.
       (B) Disposition of proceeds.--The Secretary shall deposit 
     any cash equalization payments received under subparagraph 
     (A)(i) in accordance with section 4(e)(1)(C) of the Southern 
     Nevada Public Land Management Act of 1998 (112 Stat. 2345).

     SEC. 105. STATUS AND MANAGEMENT OF LANDS.

       (a) Inclusion and Management of Lands.--Upon the date of 
     the enactment of this Act, the Secretary shall administer the 
     lands depicted on the Red Rock Map as ``Public Lands-proposed 
     addition to the Red Rock Canyon NCA'', exclusive of those 
     lands used for the Corps of Engineers R-4 Detention Basin, as 
     part of Red Rock and in accordance with the Red Rock Canyon 
     National Conservation Area Establishment Act of 1990 (16 
     U.S.C. 460ccc et seq.) and all other applicable laws.
       (b) Inclusion of Acquired Lands.--Upon acquisition by the 
     United States of lands under this Act, the Secretary shall--
       (1) administer the lands as part of Red Rock and in 
     accordance with the Red Rock Canyon National Conservation 
     Area Establishment Act of 1990 (16 U.S.C. 460ccc et seq.), 
     the Southern Nevada Public Lands Management Act of 1998 
     (Public Law 105-263), and all other applicable laws; and
       (2) create new maps showing the boundaries of Red Rock as 
     modified or pursuant to this Act, and make such maps 
     available for review at the Las Vegas District Office of the 
     Bureau of Land Management and the State Office of the Bureau 
     of Land Management, Reno, Nevada.
       (c) Conforming Amendment.--Section 3(a)(2) of the Red Rock 
     Canyon National Conservation Area Establishment Act of 1990 
     (16 U.S.C. 460ccc-1(a)(2)) is amended by inserting before the 
     period the following: ``, and such additional areas as are 
     included in the conservation area pursuant to the Red Rock 
     Canyon National Conservation Area Protection and Enhancement 
     Act of 2002''.

     SEC. 106. GENERAL PROVISIONS.

       (a) Review of Appraisal.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary shall 
     complete a review of the appraisal entitled, ``Complete Self-
     Contained Appraisal Red Rock Exchange, Las Vegas, Nevada'', 
     completed on or about June 3, 2002. The difference in 
     appraisal values shall be reimbursed to the Secretary by the 
     Corporation in accordance with the Southern Nevada Public 
     Lands Management Act of 1998.
       (b) Valid Existing Rights.--The land exchange under this 
     Act shall be subject to valid existing rights. Each party to 
     which property is conveyed under this Act shall succeed to 
     the rights and obligations of the conveying party with 
     respect to any lease, right-of-way, permit, or other valid 
     existing right to which the property is subject.
       (c) Technical Corrections.--Nothing in this Act prohibits 
     the parties to the conveyances under this Act from agreeing 
     to the correction of technical errors or omissions in the Red 
     Rock Map.
       (d) Withdrawal of Affected Lands.--To the extent not 
     already accomplished under law or administrative action, the 
     Secretary shall withdraw from operation of the public land 
     and mining laws, subject to valid existing rights--
       (1) those Federal lands acquired by the United States under 
     this Act; and
       (2) those Federal lands already owned by the United States 
     on the date of enactment of this Act but included within the 
     Red Rock National Conservation Area boundaries by this Act.

                       TITLE II--WILDERNESS AREAS

     SEC. 201. FINDINGS.

       The Congress finds that--
       (1) public land in the County contains unique and 
     spectacular natural resources, including--
       (A) priceless habitat for numerous species of plants and 
     wildlife; and
       (B) thousands of acres of pristine land that remain in a 
     natural state;
       (2) continued preservation of those areas would benefit the 
     County and all of the United States by--
       (A) ensuring the conservation of ecologically diverse 
     habitat;
       (B) conserving primitive recreational resources; and
       (C) protecting air and water quality.

     SEC. 202. ADDITIONS TO NATIONAL WILDERNESS PRESERVATION 
                   SYSTEM.

       (a) Additions.--The following land in the State is 
     designated as wilderness and as components of the National 
     Wilderness Preservation System:
       (1) Arrow canyon wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     27,530 acres, as generally depicted on the map entitled 
     ``Arrow Canyon'', dated October 1, 2002, which shall be known 
     as the ``Arrow Canyon Wilderness''.
       (2) Black canyon wilderness.--Certain Federal land within 
     the Lake Mead National Recreation Area and an adjacent 
     portion of Federal land managed by the Bureau of Land 
     Management, comprising approximately 17,220 acres, as 
     generally depicted on the map entitled ``Eldorado/Spirit 
     Mountain'', dated October 1, 2002, which shall be known as 
     the Black Canyon Wilderness .
       (3) Bridge canyon wilderness.--Certain Federal land within 
     the Lake Mead National Recreation Area, comprising 
     approximately 7,761 acres, as generally depicted on the map 
     entitled ``Eldorado/Spirit Mountain'', dated October 1, 2002, 
     which shall be known as ``the Bridge Canyon Wilderness''.
       (4) Eldorado wilderness.--Certain Federal land within the 
     Lake Mead National Recreation Area and an adjacent portion of 
     Federal land managed by the Bureau of Land Management, 
     comprising approximately 31,950 acres, as generally depicted 
     on the map entitled ``Eldorado/Spirit Mountain'', dated 
     October 1, 2002, which shall be known as the ``Eldorado 
     Wilderness''.
       (5) Ireteba peaks wilderness.--Certain Federal land within 
     the Lake Mead National Recreation Area and an adjacent 
     portion of Federal land managed by the Bureau of Land 
     Management, comprising approximately 32,745 acres, as 
     generally depicted on the map

[[Page 20781]]

     entitled ``Eldorado/Spirit Mountain'', dated October 1, 2002, 
     which shall be known as the ``Ireteba Peaks Wilderness''.
       (6) Jimbilnan wilderness.--Certain Federal land within the 
     Lake Mead National Recreation Area, comprising approximately 
     18,879 acres, as generally depicted on the map entitled 
     ``Muddy Mountains'', dated October 1, 2002, which shall be 
     known as the ``Jimbilnan Wilderness''.
       (7) Jumbo springs wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     4,631 acres, as generally depicted on the map entitled ``Gold 
     Butte'', dated October 1, 2002, which shall be known as the 
     ``Jumbo Springs Wilderness''.
       (8) La madre mountain wilderness.--Certain Federal land 
     within the Toiyabe National Forest and an adjacent portion of 
     Federal land managed by the Bureau of Land Management, 
     comprising approximately 47,180 acres, as generally depicted 
     on the map entitled ``Spring Mountains'', dated October 1, 
     2002, which shall be known as the ``La Madre Mountain 
     Wilderness''.
       (9) Lime canyon wilderness.--Certain Federal land managed 
     by the Bureau of Land Management, comprising approximately 
     23,233 acres, as generally depicted on the map entitled 
     ``Gold Butte'', dated October 1, 2002, which shall be known 
     as the ``Lime Canyon Wilderness''.
       (10) Mt. charleston wilderness additions.--Certain Federal 
     land within the Toiyabe National Forest and an adjacent 
     portion of Federal land managed by the Bureau of Land 
     Management, comprising approximately 13,598 acres, as 
     generally depicted on the map entitled ``Spring Mountains'', 
     dated October 1, 2002, which shall be included in the Mt. 
     Charleston Wilderness.
       (11) Muddy mountains wilderness.--Certain Federal land 
     within the Lake Mead National Recreation Area and an adjacent 
     portion of land managed by the Bureau of Land Management, 
     comprising approximately 48,019 acres, as generally depicted 
     on the map entitled ``Muddy Mountains'', dated October 1, 
     2002, which shall be known as the Muddy Mountains Wilderness.
       (12) Nellis wash wilderness.--Certain Federal land within 
     the Lake Mead National Recreation Area, comprising 
     approximately 16,423 acres, as generally depicted on the map 
     entitled ``Eldorado/Spirit Mountain'', dated October 1, 2002, 
     which shall be known as the Nellis Wash Wilderness.
       (13) North mccullough wilderness.--Certain Federal land 
     managed by the Bureau of Land Management, comprising 
     approximately 14,763 acres, as generally depicted on the map 
     entitled ``McCulloughs'', dated October 1, 2002, which shall 
     be known as the North McCullough Wilderness.
       (14) Pinto valley wilderness.--Certain Federal land within 
     the Lake Mead National Recreation Area, comprising 
     approximately 39,173 acres, as generally depicted on the map 
     entitled ``Muddy Mountains'', dated October 1, 2002, which 
     shall be known as the Pinto Valley Wilderness.
       (15) Rainbow mountain wilderness.--Certain Federal land 
     within the Toiyabe National Forest and an adjacent portion of 
     Federal land managed by the Bureau of Land Management, 
     comprising approximately 24,997 acres, as generally depicted 
     on the map entitled ``Spring Mountains'', dated October 1, 
     2002, which shall be known as the Rainbow Mountain 
     Wilderness.
       (16) South mccullough wilderness.--Certain Federal land 
     managed by the Bureau of Land Management, comprising 
     approximately 44,245 acres, as generally depicted on the map 
     entitled ``McCulloughs'', dated October 1, 2002, which shall 
     be known as the South McCullough Wilderness.
       (17) Spirit mountain wilderness.--Certain Federal land 
     within the Lake Mead National Recreation Area and an adjacent 
     portion of Federal land managed by the Bureau of Land 
     Management, comprising approximately 33,518 acres, as 
     generally depicted on the map entitled ``Eldorado/Spirit 
     Mountain'', dated October 1, 2002, which shall be known as 
     the Spirit Mountain Wilderness.
       (18) Wee thump joshua tree wilderness.--Certain Federal 
     land managed by the Bureau of Land Management, comprising 
     approximately 6,050 acres, as generally depicted on the map 
     entitled ``McCulloughs'', dated October 1, 2002, which shall 
     be known as the Wee Thump Joshua Tree Wilderness.
       (b) Boundary.--
       (1) Lake offset.--The boundary of any portion of a 
     wilderness area designated by subsection (a) that is bordered 
     by Lake Mead, Lake Mohave, or the Colorado River shall be 300 
     feet inland from the high water line.
       (2) Road offset.--The boundary of any portion of a 
     wilderness area designated by subsection (a) that is bordered 
     by a road shall be at least 100 feet from the edge of the 
     road to allow public access.
       (c) Map and Legal Description.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall file a map and 
     legal description of each wilderness area designated by 
     subsection (a) with the Committee on Resources of the House 
     of Representatives and the Committee on Energy and Natural 
     Resources of the Senate.
       (2) Effect.--Each map and legal description shall have the 
     same force and effect as if included in this section, except 
     that the Secretary may correct clerical and typographical 
     errors in the map or legal description.
       (3) Availability.--Each map and legal description shall be 
     on file and available for public inspection in the 
     appropriate offices of the Bureau of Land Management, 
     National Park Service, or Forest Service, as applicable.
       (d) Withdrawal.--Subject to valid existing rights, the 
     wilderness areas designated in this section are withdrawn 
     from--
       (1) all forms of entry, appropriation, and disposal under 
     the public land laws;
       (2) location, entry, and patent under the mining laws; and
       (3) operation of the mineral leasing, mineral materials, 
     and geothermal leasing laws.

     SEC. 203. ADMINISTRATION.

       (a) Management.--Subject to valid existing rights, each 
     area designated as wilderness by this title shall be 
     administered by the Secretary in accordance with the 
     Wilderness Act (16 U.S.C. 1131 et seq.), except that--
       (1) any reference in that Act to the effective date shall 
     be considered to be a reference to the date of enactment of 
     this Act; and
       (2) any reference in that Act to the Secretary of 
     Agriculture shall be considered to be a reference to the 
     Secretary of the Interior with respect to lands administered 
     by the Secretary of the Interior.
       (b) Livestock.--Within the wilderness areas designated 
     under this title that are administered by the Bureau of Land 
     Management, the grazing of livestock in areas in which 
     grazing is established as of the date of enactment of this 
     Act shall be allowed to continue, subject to such reasonable 
     regulations, policies, and practices that the Secretary 
     considers necessary, consistent with section 4(d)(4) of the 
     Wilderness Act (16 U.S.C. 1133(d)(4)), including the 
     guidelines set forth in Appendix A of House Report 101-405.
       (c) Incorporation of Acquired Lands and Interests.--Any 
     land or interest in land within the boundaries of an area 
     designated as wilderness by this title that is acquired by 
     the United States after the date of enactment of this Act 
     shall be added to and administered as part of the wilderness 
     area within which the acquired land or interest is located.
       (d) Water Rights.--
       (1) Findings.--Congress finds that--
       (A) the lands designated as Wilderness by this Act are 
     within the Mojave Desert, are arid in nature, and include 
     ephemeral streams;
       (B) the hydrology of the lands designated as wilderness by 
     this Act is locally characterized by complex flow patterns 
     and alluvial fans with impermanent channels;
       (C) the subsurface hydrogeology of the region is 
     characterized by ground water subject to local and regional 
     flow gradients and artesian aquifers;
       (D) the lands designated as wilderness by this Act are 
     generally not suitable for use or development of new water 
     resource facilities and there are no actual or proposed water 
     resource facilities and no opportunities for diversion, 
     storage, or other uses of water occurring outside such lands 
     that would adversely affect the wilderness or other values of 
     such lands; and
       (E) because of the unique nature and hydrology of these 
     desert lands designated as wilderness by this Act and the 
     existence of the Clark County Multi-Species Habitat 
     Conservation Plan it is possible to provide for proper 
     management and protection of the wilderness, perennial 
     springs and other values of such lands in ways different from 
     those used in other legislation.
       (2) Statutory construction.--
       (A) Nothing in this Act shall constitute or be construed to 
     constitute either an express or implied reservation by the 
     United States of any water or water rights with respect to 
     the lands designated as Wilderness by this Act.
       (B) Nothing in this Act shall affect any water rights in 
     the State of Nevada existing on the date of the enactment of 
     this Act, including any water rights held by the United 
     States.
       (C) Nothing in this subsection shall be construed as 
     establishing a precedent with regard to any future wilderness 
     designations.
       (D) Nothing in this Act shall be construed as limiting, 
     altering, modifying, or amending any of the interstate 
     compacts or equitable apportionment decrees that apportion 
     water among and between the State of Nevada and other States.
       (E) Nothing in this subsection shall be construed as 
     limiting, altering, modifying, or amending the Clark County 
     Multi-Species Habitat Conservation Plan (MSHCP) with respect 
     to the lands designated as Wilderness by this Act including 
     the MSHCP's specific management actions for the conservation 
     of perennial springs.
       (3) Nevada water law.--The Secretary shall follow the 
     procedural and substantive requirements of the law of the 
     State of Nevada in order to obtain and hold any water rights 
     not in existence on the date of enactment of this Act with 
     respect to the wilderness areas designated by this Act.
       (4) New projects.--

[[Page 20782]]

       (A) As used in this paragraph, the term ``water resource'' 
     facility means irrigation and pumping facilities, reservoirs, 
     water conservation works, aqueducts, canals, ditches, 
     pipelines, wells, hydropower projects, and transmission and 
     other ancillary facilities, and other water diversion, 
     storage, and carriage structures. The term ``water resource'' 
     facility does not include wildlife guzzlers.
       (B) Except as otherwise provided in this Act, on and after 
     the date of the enactment of this Act, neither the President 
     nor any other officer, employee, or agent of the United 
     States shall fund, assist, authorize, or issue a license or 
     permit for the development of any new water resource facility 
     within the wilderness areas designated by this Act.

     SEC. 204. ADJACENT MANAGEMENT.

       (a) In General.--Congress does not intend for the 
     designation of wilderness in the State pursuant to this title 
     to lead to the creation of protective perimeters or buffer 
     zones around any such wilderness area.
       (b) Nonwilderness Activities.--The fact that nonwilderness 
     activities or uses can be seen or heard from areas within a 
     wilderness designated under this title shall not preclude the 
     conduct of those activities or uses outside the boundary of 
     the wilderness area.

     SEC. 205. MILITARY OVERFLIGHTS.

       Nothing in this title restricts or precludes--
       (1) low-level overflights of military aircraft over the 
     areas designated as wilderness by this title, including 
     military overflights that can be seen or heard within the 
     wilderness areas;
       (2) flight testing and evaluation; or
       (3) the designation or creation of new units of special use 
     airspace, or the establishment of military flight training 
     routes, over the wilderness areas.

     SEC. 206. NATIVE AMERICAN CULTURAL AND RELIGIOUS USES.

       Nothing in this Act shall be construed to diminish the 
     rights of any Indian Tribe. Nothing in this Act shall be 
     construed to diminish tribal rights regarding access to 
     Federal lands for tribal activities, including spiritual, 
     cultural, and traditional food-gathering activities.

     SEC. 207. RELEASE OF WILDERNESS STUDY AREAS.

       (a) Finding.--Congress finds that, for the purposes of 
     section 603 of the Federal Land Policy and Management Act of 
     1976 (43 U.S.C. 1782), the public land in the County 
     administered by the Bureau of Land Management and the Forest 
     Service in the following areas have been adequately studied 
     for wilderness designation:
       (1) The Garrett Buttes Wilderness Study Area.
       (2) The Quail Springs Wilderness Study Area.
       (3) The Nellis A, B, C Wilderness Study Area.
       (4) Any portion of the wilderness study areas--
       (A) not designated as wilderness by section 202(a); and
       (B) designated for release on--
       (i) the map entitled ``Muddy Mountains'' and dated October 
     1, 2002;
       (ii) the map entitled ``Spring Mountains'' and dated 
     October 1, 2002;
       (iii) the map entitled ``Arrow Canyon'' and dated October 
     1, 2002;
       (iv) the map entitled ``Gold Butte'' and dated October 1, 
     2002;
       (v) the map entitled ``McCullough Mountains'' and dated 
     October 1, 2002;
       (vi) the map entitled ``El Dorado/Spirit Mountain'' and 
     dated October 1, 2002; or
       (vii) the map entitled ``Southern Nevada Public Land 
     Management Act'' and dated October 1, 2002.
       (b) Release.--Except as provided in subsection (c), any 
     public land described in subsection (a) that is not 
     designated as wilderness by this title--
       (1) is no longer subject to section 603(c) of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1782(c)); 
     and
       (2) shall be managed in accordance with--
       (A) land management plans adopted under section 202 of that 
     Act (43 U.S.C. 1712); and
       (B) existing cooperative conservation agreements.
       (c) Right-of-Way Grant.--The Secretary shall issue to the 
     State-regulated sponsor of the Centennial Project the right-
     of-way for the construction and maintenance of two 500-
     kilovolt electrical transmission lines. The construction 
     shall occur within a 500-foot-wide corridor that is released 
     from the Sunrise Mountains Instant Study Area in the County 
     as depicted on the Southern Nevada Public Land Management Act 
     map, dated October 1, 2002.

     SEC. 208. WILDLIFE MANAGEMENT.

       (a) In General.--In accordance with section 4(d)(7) of the 
     Wilderness Act (16 U.S.C. 1133(d)(7)), nothing in this title 
     affects or diminishes the jurisdiction of the State with 
     respect to fish and wildlife management, including the 
     regulation of hunting, fishing, and trapping, in the 
     wilderness areas designated by this title.
       (b) Management Activities.--In furtherance of the purposes 
     and principles of the Wilderness Act, management activities 
     to maintain or restore fish and wildlife populations and the 
     habitats to support such populations may be carried out 
     within wilderness areas designated by this title where 
     consistent with relevant wilderness management plans, in 
     accordance with appropriate policies such as those set forth 
     in Appendix B of House Report 101-405, including the 
     occasional and temporary use of motorized vehicles, if such 
     use, as determined by the Secretary, would promote healthy, 
     viable, and more naturally distributed wildlife populations 
     that would enhance wilderness values and accomplish those 
     purposes with the minimum impact necessary to reasonably 
     accomplish the task.
       (c) Existing Activities.--Consistent with section 4(d)(1) 
     of the Wilderness Act (16 U.S.C. 1133(d)) and in accordance 
     with appropriate policies such as those set forth in Appendix 
     B of House Report 101-405, the State may continue to use 
     aircraft, including helicopters, to survey, capture, 
     transplant, monitor, and provide water for wildlife 
     populations, including bighorn sheep, and feral stock, 
     horses, and burros.
       (d) Wildlife Water Development Projects.--Subject to 
     subsection (f), the Secretary shall, authorize structures and 
     facilities, including existing structures and facilities, for 
     wildlife water development projects, including guzzlers, in 
     the wilderness areas designated by this title if--
       (1) the structures and facilities will, as determined by 
     the Secretary, enhance wilderness values by promoting 
     healthy, viable and more naturally distributed wildlife 
     populations; and
       (2) the visual impacts of the structures and facilities on 
     the wilderness areas can reasonably be minimized.
       (e) Hunting, Fishing, and Trapping.--The Secretary may 
     designate by regulation areas in consultation with the 
     appropriate State agency (except in emergencies), in which, 
     and establish periods during which, for reasons of public 
     safety, administration, or compliance with applicable laws, 
     no hunting, fishing, or trapping will be permitted in the 
     wilderness areas designated by this title.
       (f) Cooperative Agreement.--No later than one year after 
     the date of enactment of this Act, the Secretary shall enter 
     into a cooperative agreement with the State of Nevada. The 
     cooperative agreement shall specify the terms and conditions 
     under which the State (including a designee of the State) may 
     use wildlife management activities in the wilderness areas 
     designated by this title.

     SEC. 209. WILDFIRE MANAGEMENT.

       Consistent with section 4 of the Wilderness Act (16 U.S.C. 
     1133), nothing in this title precludes a Federal, State, or 
     local agency from conducting wildfire management operations 
     (including operations using aircraft or mechanized equipment) 
     to manage wildfires in the wilderness areas designated by 
     this title.

     SEC. 210. CLIMATOLOGICAL DATA COLLECTION.

       Subject to such terms and conditions as the Secretary may 
     prescribe, nothing in this title precludes the installation 
     and maintenance of hydrologic, meteorologic, or 
     climatological collection devices in the wilderness areas 
     designated by this title if the facilities and access to the 
     facilities are essential to flood warning, flood control, and 
     water reservoir operation activities.

     SEC. 211. NATIONAL PARK SERVICE LANDS.

       To the extent any of the provisions of this title are in 
     conflict with laws, regulations, or management policies 
     applicable to the National Park Service for Lake Mead 
     National Recreation Area, those laws, regulations, or 
     policies shall control.

          TITLE III--TRANSFERS OF ADMINISTRATIVE JURISDICTION

     SEC. 301. TRANSFER OF ADMINISTRATIVE JURISDICTION TO THE U.S. 
                   FISH AND WILDLIFE SERVICE.

       (a) In General.--Administrative jurisdiction over the land 
     described in subsection (b) is transferred from the Bureau of 
     Land Management to the United States Fish and Wildlife 
     Service for inclusion in the Desert National Wildlife Range.
       (b) Description of Land.--The parcel of land referred to in 
     subsection (a) is the approximately 26,433 acres of land 
     administered by the Bureau of Land Management as generally 
     depicted on the map entitled ``Arrow Canyon'' and dated 
     October 1, 2002.
       (c) Wilderness Release.--
       (1) Congress finds that the parcel of land described in 
     subsection (b) has been adequately studied for wilderness 
     designation for the purposes of section 603(c) of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1782(c)).
       (2) The parcel of land described in subsection (b)--
       (A) shall not be subject to section 603(c) of the Federal 
     Land Policy and Management Act of 1976 (43 U.S.C. 1782(c)); 
     and
       (B) shall be managed in accordance with
       (i) the National Wildlife Refuge System Administration Act, 
     as amended by the National Wildlife Refuge System Improvement 
     Act of 1997 (16 U.S. C. 668dd-668ee); and
       (ii) existing cooperative conservation agreements.

     SEC. 302. TRANSFER OF ADMINISTRATIVE JURISDICTION TO NATIONAL 
                   PARK SERVICE.

       (a) In General.--Administrative jurisdiction over the 
     parcel of land described in subsection (b) is transferred 
     from the Bureau of

[[Page 20783]]

     Land Management to the National Park Service for inclusion in 
     the Lake Mead National Recreation Area.
       (b) Description of Land.--The parcel of land referred to in 
     subsection (a) is the approximately 10 acres of Bureau of 
     Land Management land, as depicted on the map entitled 
     ``Eldorado/Spirit Mountain'' and dated October 1, 2002.
       (c) Use of Land.--The parcel of land described in 
     subsection (b) shall be used by the National Park Service for 
     administrative facilities.

 TITLE IV--AMENDMENTS TO THE SOUTHERN NEVADA PUBLIC LAND MANAGEMENT ACT

     SEC. 401. DISPOSAL AND EXCHANGE.

       (a) In General.--Section 4 of the Southern Nevada Public 
     Land Management Act of 1998 (112 Stat. 2344) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``entitled Las Vegas Valley, Nevada, Land Disposal Map, dated 
     April 10, 1997'' and inserting ``entitled Southern Nevada 
     Public Land Management Act, dated October 1, 2002''; and
       (2) in subsection (e)(3)(A)--
       (A) in clause (iv)--
       (i) by inserting ``or regional governmental'' entity after 
     ``local government''; and
       (ii) by striking ``and'' at the end;
       (B) by redesignating clause (v) as clause (vi); and
       (C) by inserting after clause (iv) the following:
       ``(v) up to 10 percent of amounts available, to be used for 
     conservation initiatives on Federal land in Clark County, 
     Nevada, administered by the Department of the Interior or the 
     Department of Agriculture; and''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on January 31, 2003.
       (c) Withdrawal.--Subject to valid existing rights, the land 
     designated for disposal in this section is withdrawn from 
     entry and appropriation under the public land laws, location 
     and entry, under the mining laws, and from operation under 
     the mineral leasing and geothermal leasing laws until such 
     times as the Secretary terminates the withdrawal or the lands 
     are patented.

                       TITLE V--IVANPAH CORRIDOR

     SEC. 501. INTERSTATE ROUTE 15 SOUTH CORRIDOR.

       (a) Management of Interstate Route 15 Corridor Land.--
       (1) In general.--The Secretary shall manage the land 
     located along the Interstate Route 15 corridor south of the 
     Las Vegas Valley to the border between the States of 
     California and Nevada, generally depicted as Interstate 15 
     South Corridor on the map entitled ``Clark County 
     Conservation of Public Land and Natural Resources Act of 
     2002'' and dated October 1, 2002, in accordance with the 
     Southern Nevada Public Land Management Act of 1998 (112 Stat. 
     2343) and this section.
       (2) Availability of map.--The map described in paragraph 
     (1) shall be on file and available for public inspection in 
     the appropriate offices of the Bureau of Land Management.
       (3) Multiple use management.--Subject to any land 
     management designations under the 1998 Las Vegas District 
     Resource Management Plan or the Clark County Multi-Species 
     Conservation Plan, land depicted on the map described in 
     paragraph (1) shall be managed for multiple use purposes.
       (4) Termination of administrative withdrawal.--The 
     administrative withdrawal of the land identified as the 
     Interstate 15 South Corridor on the map entitled ``Clark 
     County Conservation of Public Land and Natural Resources Act 
     of 2002'' and dated October 1, 2002, from mineral entry dated 
     July 23, 1997, and as amended March 9, 1998, as further 
     amended July 2, 2002, is terminated.
       (5) Withdrawal of land.--Subject to valid existing rights, 
     the corridor described in subsection (b) and the land 
     described in subsection (c)(1) are withdrawn from location 
     and entry under the mining laws, and from operation under the 
     mineral leasing and geothermal leasing laws, until such time 
     as--
       (A) the Secretary terminates the withdrawal; or
       (B) the corridor or land, respectively, is patented.
       (b) Transportation and Utilities Corridor.--Notwithstanding 
     sections 202 and 203 of the Federal Land Policy and 
     Management Act of 1976 (43 U.S.C. 1712, 1713), the Secretary, 
     in consultation with the City of Henderson and the County, 
     and in accordance with this section and other applicable laws 
     and subject to valid existing rights, shall establish a 
     2,640-foot-wide corridor between the Las Vegas valley and the 
     proposed Ivanpah Airport for the placement, on a nonexclusive 
     basis, of utilities and transportation.
       (c) Ivanpah Airport Environs Overlay District Land 
     Transfer.--
       (1) In general.--Subject to paragraph (2) and valid 
     existing rights, on request by the County, the Secretary 
     shall transfer to the County, without consideration, all 
     right, title, and interest of the United States in and to the 
     land identified as Ivanpah Airport noise compatibility area 
     on the map entitled ``Clark County Conservation of Public 
     Land and Natural Resources Act of 2002'' and dated October 1, 
     2002.
       (2) Conditions for transfer.--As a condition of the 
     transfer under paragraph (1), the County shall agree--
       (A) to manage the transferred land in accordance with 
     section 47504 of title 49, United States Code (including 
     regulations promulgated under that section); and
       (B) that if any portion of the transferred land is sold, 
     leased, or otherwise conveyed or leased by the County--
       (i) the sale, lease, or other conveyance shall be--

       (I) subject to a limitation that requires that any use of 
     the transferred land be consistent with the Agreement and 
     section 47504 of title 49, United States Code (including 
     regulations promulgated under that section); and
       (II) for fair market value; and

       (ii) of any gross proceeds received by the County from the 
     sale, lease, or other conveyance of the land, the County 
     shall--

       (I) contribute 85 percent to the special account 
     established by section 4(e)(1)(C) of the Southern Nevada 
     Public Land Management Act of 1998 (112 Stat. 2345);
       (II) contribute 5 percent to the State for use in the 
     general education program of the State; and
       (III) reserve 10 percent for use by the Clark County 
     Department of Aviation for airport development and noise 
     compatibility programs.

       (d) Effective Date.--Subsections (b) and (c) shall not take 
     effect until construction of the Ivanpah Valley Airport is 
     approved in accordance with Public Law 106-362.

     SEC. 502. AREA OF CRITICAL ENVIRONMENTAL CONCERN SEGREGATION.

       (a) Temporary Withdrawal.--Subject to valid existing 
     rights, any Federal land in an Area of Critical Environmental 
     Concern that is designated for withdrawal under the 1998 Las 
     Vegas Resource Management Plan, and which is not already 
     withdrawn by the effect of this or any other Act, is hereby 
     withdrawn from location, entry, and patent under the mining 
     laws for a period not to exceed five years. The withdrawal 
     shall lapse at the earlier--
       (1) five years; or
       (2) when the Secretary issues a final decision on each 
     proposed withdrawal.
       (b) Administrative Withdrawal.--The Secretary shall make 
     final decisions on each of the temporary withdrawals 
     described in subsection (a) within five years of the date of 
     enactment of this Act. Such decisions shall be made 
     consistent with the Federal Land Policy and Management Act 
     (43 U.S.C. 1714), and in accordance with the 1998 Las Vegas 
     Resource Management Plan.
       (c) Mineral Report.--The mineral reports required by 
     section 204(c)(12) of the Federal Land Policy and Management 
     Act shall be the responsibility of the U.S. Geological Survey 
     and shall be completed for each of the temporary withdrawals 
     described in subsection (a) within four years of the date of 
     enactment of this Act.

           TITLE VI--SLOAN CANYON NATIONAL CONSERVATION AREA

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Sloan Canyon National 
     Conservation Area Act''.

     SEC. 602. PURPOSE.

       The purpose of this title is to establish the Sloan Canyon 
     National Conservation Area to conserve, protect, and enhance 
     for the benefit and enjoyment of present and future 
     generations the cultural, archaeological, natural, 
     wilderness, scientific, geological, historical, biological, 
     wildlife, educational, and scenic resources of the 
     Conservation Area.

     SEC. 603. DEFINITIONS.

       In this title:
       (1) Conservation area.--The term ``Conservation Area'' 
     means the Sloan Canyon National Conservation Area established 
     by section 604(a).
       (2) Federal parcel.--The term ``Federal parcel'' means the 
     parcel of Federal land consisting of approximately 500 acres 
     that is identified as Tract A on the map entitled ``Southern 
     Nevada Public Land Management Act'' and dated October 1, 
     2002.
       (3) Management plan.--The term ``management plan'' means 
     the management plan for the Conservation Area developed under 
     section 605(b).
       (4) Map.--The term ``map'' means the map entitled 
     ``Southern Nevada Public Land Management Act'' and dated 
     October 1, 2002.

     SEC. 604. ESTABLISHMENT.

       (a) In General.--For the purpose described in section 602, 
     there is established in the State a conservation area to be 
     known as the Sloan Canyon National Conservation Area.
       (b) Area Included.--The Conservation Area shall consist of 
     approximately 48,438 acres of public land in the County, as 
     generally depicted on the map.
       (c) Map and Legal Description.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a map and legal description of the Conservation Area.
       (2) Effect.--The map and legal description shall have the 
     same force and effect as if included in this section, except 
     that the Secretary may correct minor errors in the map or 
     legal description.
       (3) Public availability.--A copy of the map and legal 
     description shall be on file and

[[Page 20784]]

     available for public inspection in the appropriate office of 
     the Bureau of Land Management

     SEC. 605. MANAGEMENT.

       (a) In General.--The Secretary, acting through the Director 
     of the Bureau of Land Management, shall manage the 
     Conservation Area--
       (1) in a manner that conserves, protects, and enhances the 
     resources of the Conservation Area; and
       (2) in accordance with--
       (A) the Federal Land Policy and Management Act of 1976 (43 
     U.S.C. 1701 et seq.); and
       (B) other applicable law, including this Act.
       (b) Management Plan.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary, in consultation with 
     the State, the city of Henderson, the County, and any other 
     interested persons, shall develop a management plan for the 
     Conservation Area.
       (2) Requirements.--The management plan shall--
       (A) describe the appropriate uses and management of the 
     Conservation Area;
       (B)(i) authorize the use of motorized vehicles in the 
     Conservation Area--
       (I) for installing, repairing, maintaining, and 
     reconstructing water development projects, including 
     guzzlers, that would enhance the Conservation Area by 
     promoting healthy, viable, and more naturally distributed 
     wildlife populations; and
       (II) subject to any limitations that are not more 
     restrictive than the limitations on such uses authorized in 
     wilderness areas under section 208; and
       (ii) include or provide recommendations on ways of 
     minimizing the visual impacts of such activities on the 
     Conservation Area;
       (C) include a plan for litter cleanup and public lands 
     awareness campaign on public lands in and around the 
     Conservation Area; and
       (D) include a recommendation on the location for a right-
     of-way for a rural roadway to provide the city of Henderson 
     with access to the Conservation Area, in accordance with the 
     application numbered N-65874.
       (c) Uses.--The Secretary shall allow only such uses of the 
     Conservation Area that the Secretary determines will further 
     the purpose described in section 602.
       (d) Motorized Vehicles.--Except as needed for 
     administrative purposes or to respond to an emergency, the 
     use of motorized vehicles in the Conservation Area shall be 
     permitted only on roads and trails designated for the use of 
     motorized vehicles by the management plan developed under 
     subsection (b).
       (e) Withdrawal.--
       (1) In general.--Subject to valid existing rights, all 
     public land in the Conservation Area is withdrawn from--
       (A) all forms of entry and appropriation under the public 
     land laws;
       (B) location, entry, and patent under the mining laws; and
       (C) operation of the mineral leasing, mineral materials, 
     and geothermal leasing laws.
       (2) Additional land.--Notwithstanding any other provision 
     of law, if the Secretary acquires mineral or other interests 
     in a parcel of land within the Conservation Area after the 
     date of enactment of this Act, the parcel is withdrawn from 
     operation of the laws referred to in paragraph (1) on the 
     date of acquisition of the land.
       (f) Hunting, Fishing, and Trapping.--
       (1) In general.--Nothing in this title affects the 
     jurisdiction of the State with respect to fish and wildlife, 
     including hunting, fishing, and trapping in the Conservation 
     Area.
       (2) Limitations.--
       (A) Regulations.--The Secretary may designate by regulation 
     areas in which, and establish periods during which, for 
     reasons of public safety, administration, or compliance with 
     applicable laws, no hunting, fishing, or trapping will be 
     permitted in the Conservation Area.
       (B) Consultation.--Except in emergencies, the Secretary 
     shall consult with the appropriate State agency before 
     promulgating regulations under subparagraph (A) that close a 
     portion of the Conservation Area to hunting, fishing, or 
     trapping.
       (g) No Buffer Zones.--
       (1) In general.--The establishment of the Conservation Area 
     shall not create an express or implied protective perimeter 
     or buffer zone around the Conservation Area.
       (2) Private land.--If the use of, or conduct of an activity 
     on, private land that shares a boundary with the Conservation 
     Area is consistent with applicable law, nothing in this title 
     concerning the establishment of the Conservation Area shall 
     prohibit or limit the use or conduct of the activity.

     SEC. 606. SALE OF FEDERAL PARCEL.

       (a) In General.--Notwithstanding sections 202 and 203 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712, 1713) and subject to valid existing rights, not later 
     than 1 year after the date of enactment of this Act, the 
     Secretary shall convey to the highest qualified bidder all 
     right, title, and interest of the United States in and to the 
     Federal parcel.
       (b) Disposition of Proceeds.--Of the gross proceeds from 
     the conveyance of land under subsection (a)--
       (1) 5 percent shall be available to the State for use in 
     the general education program of the State; and
       (2) the remainder shall be deposited in the special account 
     established under the Southern Nevada Public Lands Management 
     Act of 1998 (Public Law 105-263; 112 Stat. 2345), to be 
     available to the Secretary, without further appropriation 
     for--
       (A) the construction and operation of facilities to support 
     the management of the Conservation Area;
       (B) the construction and repair of trails and roads in the 
     Conservation Area authorized under the management plan;
       (C) research on and interpretation of the archaeological 
     and geological resources of the Conservation Area;
       (D) conservation and research relating to the Conservation 
     Area; and
       (E) any other purpose that the Secretary determines to be 
     consistent with the purpose described in section 602.

     SEC. 607. RIGHT-OF-WAY.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretary shall convey to the City of Henderson the 
     public right-of-way requested for public trail purposes under 
     the application numbered N-76312 and the public right-of-way 
     requested for public trail purposes under the application 
     numbered N-65874.

                 TITLE VII--PUBLIC INTEREST CONVEYANCES

     SEC. 701. DEFINITION OF MAP.

       In this title, the term ``map'' means the map entitled 
     ``Southern Nevada Public Land Management Act'' and dated 
     October 1, 2002.

     SEC. 702. CONVEYANCE TO THE UNIVERSITY OF NEVADA AT LAS VEGAS 
                   RESEARCH FOUNDATION.

       (a) Findings and Purposes.--
       (1) Findings.--Congress finds that--
       (A) the University of Nevada, Las Vegas, needs land in the 
     greater Las Vegas area to provide for the future growth of 
     the university;
       (B) the proposal by the University of Nevada, Las Vegas, 
     for construction of a research park and technology center in 
     the greater Las Vegas area would enhance the high tech 
     industry and entrepreneurship in the State; and
       (C) the land transferred to the Clark County Department of 
     Aviation under section 4(g) of the Southern Nevada Public 
     Land Management Act of 1998 (112 Stat. 2346) is the best 
     location for the research park and technology center.
       (2) Purposes.--The purposes of this section are--
       (A) to provide a suitable location for the construction of 
     a research park and technology center in the greater Las 
     Vegas area;
       (B) to provide the public with opportunities for education 
     and research in the field of high technology; and
       (C) to provide the State with opportunities for competition 
     and economic development in the field of high technology.
       (b) Technology Research Center.--
       (1) Conveyance.--Notwithstanding section 4(g)(4) of the 
     Southern Nevada Public Land Management Act of 1998 (112 Stat. 
     2347), the Clark County Department of Aviation may convey, 
     without consideration, all right, title, and interest in and 
     to the parcel of land described in paragraph (3) to the 
     University of Nevada at Las Vegas Research Foundation 
     (referred to in this section as ``Foundation'') for the 
     development of a technology research center.
       (2) Condition.--The conveyance under paragraph (1) shall be 
     subject to the condition that the Foundation enter into an 
     agreement that if the land described in paragraph (3) is 
     sold, leased, or otherwise conveyed by the Foundation.
       (A) the Foundation shall sell, lease, or otherwise convey 
     the land for fair market value;
       (B) the Foundation shall contribute 85 percent of the gross 
     proceeds from the sale, lease, or conveyance of the land to 
     the special account;
       (C) with respect to land identified on the map entitled 
     ``Las Vegas Valley, Nevada, Land Sales Map'', numbered 7306A, 
     and dated May 1980, the proceeds from the sale, lease, or 
     conveyance of the land identified on the map contributed to 
     the special account by the Foundation under subparagraph (B) 
     shall be used by the Secretary of Agriculture to acquire 
     environmentally sensitive land in the Lake Tahoe Basin under 
     section 3 of Public Law 96-586 (94 Stat. 3383);
       (D) the Foundation shall contribute 5 percent of the gross 
     proceeds from the sale, lease, or conveyance of the land to 
     the State of Nevada for use in the general education program 
     of the State; and
       (E) the remainder of the gross proceeds from the sale, 
     lease, or conveyance of the land shall be available for use 
     by the Foundation.
       (3) Description of land.--The parcel of land referred to in 
     paragraph (1) is the parcel of Clark County Department of 
     Aviation land--
       (A) consisting of approximately 115 acres; and
       (B) located in the SAW\1/4\ of section 33, T. 21 S., R. 60 
     E., Mount Diablo Base and Meridian.

     SEC. 703. CONVEYANCE TO THE LAS VEGAS METROPOLITAN POLICE 
                   DEPARTMENT.

       The Secretary shall convey to the Las Vegas Metropolitan 
     Police Department,

[[Page 20785]]

     without consideration, all right, title, and interest in and 
     to the parcel of land identified as ``Tract F'' on the map 
     for use as a shooting range.

     SEC. 704. CONVEYANCE TO THE CITY OF HENDERSON FOR THE NEVADA 
                   STATE COLLEGE AT HENDERSON.

       (a) Definitions.--In this section:
       (1) Chancellor.--The term ``Chancellor'' means the 
     Chancellor of the University system.
       (2) City.--The term ``City'' means the city of Henderson, 
     Nevada.
       (3) College.--The term ``College'' means the Nevada State 
     College at Henderson.
       (4) Survey.--The term ``survey means'' the land survey 
     required under Federal law to define the official metes and 
     bounds of the parcel of Federal land identified as Tract H on 
     the map.
       (5) University system.--The term ``University system'' 
     means the University and Community College System of Nevada.
       (b) Conveyance.--
       (1) In general.--Notwithstanding the Federal Land Policy 
     and Management Act of 1976 (43 U.S.C. 1701 et seq.) and 
     section 1(c) of the Act of June 14, 1926 (commonly known as 
     the ``Recreation and Public Purposes Act'' ) (43 U.S.C. 
     869(c)), not later than 180 days after the date on which the 
     survey is approved, the Secretary shall convey to the City, 
     without consideration, all right, title, and interest of the 
     United States in and to the parcel of Federal land identified 
     as ``Tract H'' on the map for use as a campus for the 
     College.
       (2) Conditions.--
       (A) In general.--As a condition of the conveyance under 
     paragraph (1), the Chancellor and the City shall agree in 
     writing--
       (i) to pay any administrative costs associated with the 
     conveyance, including the costs of any environmental, 
     wildlife, cultural, or historical resources studies;
       (ii) to use the Federal land conveyed for educational and 
     recreational purposes;
       (iii) to release and indemnify the United States from any 
     claims or ----liabilities which may arise from uses that are 
     carried out on the Federal land on or before the date of 
     enactment of this Act by the United States or any person;
       (iv) as soon as practicable after the date of the 
     conveyance under paragraph (1), to erect at the College an 
     appropriate and centrally located monument that acknowledges 
     the conveyance of the Federal land by the United States for 
     the purpose of furthering the higher education of citizens in 
     the State; and
       (v) to assist the Bureau of Land Management in providing 
     information to the students of the College and the citizens 
     of the State on--

       (I) public land in the State; and
       (II) the role of the Bureau of Land Management in managing, 
     preserving, and protecting the public land.

       (B) Valid existing rights.--The conveyance under paragraph 
     (1) shall be subject to all valid existing rights.
       (3) Use of federal land.--
       (A) In general.--The College and the City may use the land 
     conveyed under paragraph (1) for--
       (i) any purpose relating to the establishment, operation, 
     growth, and maintenance of the College; and
       (ii) any uses relating to such purposes, including 
     residential and commercial development that would generally 
     be associated with an institution of higher education.
       (B) Other entities.--The College and the City may--
       (i) consistent with Federal and State law, lease or 
     otherwise provide property or space at the College, with or 
     without consideration, to religious, public interest, 
     community, or other groups for services and events that are 
     of interest to the College, the City, or any community 
     located in the Las Vegas Valley;
       (ii) allow the City or any other community in the Las Vegas 
     Valley to use facilities of the College for educational and 
     recreational programs of the City or community; and
       (iii) in conjunction with the City, plan, finance, 
     (including the provision of cost-share assistance), 
     construct, and operate facilities for the City on the Federal 
     land conveyed for educational or recreational purposes 
     consistent with this section.
       (4) Reversion.--If the Federal land or any portion of the 
     Federal land conveyed under paragraph (1) ceases to be used 
     for the College, the Federal land or any portion of the 
     Federal land shall, at the discretion of the Secretary, 
     revert to the United States.

     SEC. 705. CONVEYANCE TO THE CITY OF LAS VEGAS, NEVADA.

       (a) Definitions.--In this section:
       (1) City.--The term ``City'' means the city of Las Vegas, 
     Nevada.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior, acting through the Director of the Bureau of 
     Land Management.
       (b) Conveyance.--The Secretary shall convey to the City, 
     without consideration, all right, title, and interest of the 
     United States in and to the parcels of land identified as 
     ``Tract C'' and ``Tract D'' on the map.
       (c) Reversion.--If a parcel of land conveyed to the City 
     under subsection (b) ceases to be used for affordable housing 
     or for a purpose related to affordable housing, the parcel 
     shall, at the discretion of the Secretary, revert to the 
     United States.

     SEC. 706. SALE OF FEDERAL PARCEL.

       (a) In General.--Notwithstanding sections 202 and 203 of 
     the Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1712, 1713) and subject to valid existing rights, the 
     Secretary shall convey as a single parcel to the highest 
     qualified bidder all right, title, and interest of the United 
     States in and to approximately 360 acres that is identified 
     as the North Half (N\1/2\) of Section 7, Township 23 South, 
     Range 61 East, M.D.B.&M., Clark County, Nevada and the 
     Northeast Quarter (NE\1/4\) of the Southeast Quarter (SE\1/
     4\) of Section 7, Township 23 South, Range 61 East, M.D.M., 
     Clark County, Nevada.
       (b) Disposition of Proceeds.--The proceeds from the 
     conveyance of the lands described in subsection (a) shall be 
     deposited in accordance with section 4(e)(1) of the Southern 
     Nevada Public Land Management Act of 1998 (112 Stat. 2345).

                TITLE VIII--HUMBOLDT PROJECT CONVEYANCE

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Humboldt Project 
     Conveyance Act''.

     SEC. 802. DEFINITIONS.

       For purposes of this title:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (2) State.--The term ``State'' means the State of Nevada.
       (3) PCWCD.--The term ``PCWCD'' means the Pershing County 
     Water Conservation District, a public entity organized under 
     the laws of the State of Nevada.
       (4) Pershing county.--The term ``Pershing County'' means 
     the Pershing County government, a political subunit of the 
     State of Nevada.
       (5) Lander county.--The term ``Lander County'' means the 
     Lander County government, a political subunit of the State of 
     Nevada.

     SEC. 803. AUTHORITY TO CONVEY TITLE.

       (a) In General.--As soon as practicable after the date of 
     enactment of this Act and in accordance with all applicable 
     law, the Secretary shall convey all right, title, and 
     interest in and to the lands and features of the Humboldt 
     Project, as generally depicted on the map entitled the 
     ``Humboldt Project Conveyance Act'', and dated July 3, 2002, 
     including all water rights for storage and diversion, to 
     PCWCD, the State, Pershing County, and Lander County, 
     consistent with the terms and conditions set forth in the 
     Memorandum of Agreement between PCWCD and Lander County dated 
     January 24, 2000, the Conceptual Agreement between PCWCD and 
     the State dated October 18, 2001, the Letter of Agreement 
     between Pershing County and the State dated April 16, 2002, 
     and any agreements between the Bureau of Reclamation and 
     PCWCD.
       (b) Map.--As soon as practicable after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a map of the Humboldt Project Conveyance. In case of a 
     conflict between the map referred to in subsection (a) and 
     the map submitted by the Secretary, the map referred to in 
     subsection (b) shall control. The map shall have the same 
     force and effect as if included in this Act, except that the 
     Secretary may correct clerical and typographical errors in 
     such map and legal description. Copies of the map shall be on 
     file and available for public inspection in the Office of the 
     Commissioner of the Bureau of Reclamation and in the Office 
     of the Area Manager of the Bureau of Reclamation in Carson 
     City, Nevada.
       (c) Compliance With Agreements.--All parties to the 
     conveyance under subsection (a) shall comply with the terms 
     and conditions of the agreements cited in subsection (a).
       (d) Report.--If the conveyance required by this section has 
     not been completed within 18 months after the date of 
     enactment of this Act, the Secretary shall submit a report to 
     the Committee on Resources of the House of Representatives 
     and the Committee on Energy and Natural Resources of the 
     Senate that describes--
       (1) the status of the conveyance;
       (2) any obstacles to completion of the conveyance; and
       (3) the anticipated date for completion of the conveyance.

     SEC. 804. PAYMENT.

       (a) In General.--As consideration for any conveyance 
     required by section 803, PCWCD shall pay to the United States 
     the net present value of miscellaneous revenues associated 
     with the lands and facilities to be conveyed.
       (b) Withdrawn Lands.--As consideration for any conveyance 
     of withdrawn lands required by section 803, the entity 
     receiving title shall pay the United States (in addition to 
     amounts paid under subsection (a)) the fair market value for 
     any such lands conveyed that were withdrawn from the public 
     domain pursuant to the Secretarial Orders dated March 16, 
     1934, and April 6, 1956.
       (c) Administrative Costs.--Administrative costs for 
     conveyance of any land or facility under this title shall be 
     paid in equal shares by the Secretary and the entity 
     receiving title to the land or facility, except costs 
     identified in subsections (d) and (e).
       (d) Real Estate Transfer Costs.--As a condition of any 
     conveyance of any land or

[[Page 20786]]

     facility required by section 803, costs of all boundary 
     surveys, title searches, cadastral surveys, appraisals, maps, 
     and other real estate transactions required for the 
     conveyance shall be paid by the entity receiving title to the 
     land or facility.
       (e) NEPA Costs.--Costs associated with any review required 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) for conveyance of any land or facility 
     under section 803 shall be paid in equal shares by the 
     Secretary and the entity receiving title to the land or 
     facility.
       (f) State of Nevada.--The State shall not be responsible 
     for any payments under this section. Any proposal by the 
     State to reconvey to another entity land conveyed by the 
     Secretary under this title shall be pursuant to an agreement 
     with the Secretary providing for fair market value to the 
     United States for the lands, and for continued management of 
     the lands for recreation, wildlife habitat, wetlands, or 
     resource conservation.

     SEC. 805. COMPLIANCE WITH OTHER LAWS.

       Following the conveyance required by section 803, the 
     district, the State, Pershing County, and Lander County 
     shall, with respect to the interests conveyed, comply with 
     all requirements of Federal, State, and local law applicable 
     to non-Federal water distribution systems.

     SEC. 806. REVOCATION OF WITHDRAWALS.

       Effective on the date of the conveyance required by section 
     803, the Secretarial Orders dated March 16, 1934, and April 
     6, 1956, that withdrew public lands for the Rye Patch 
     Reservoir and the Humboldt Sink, are hereby revoked.

     SEC. 807. LIABILITY.

       Effective on the date of the conveyance required by section 
     803, the United States shall not be held liable by any court 
     for damages of any kind arising out of any act, omission, or 
     occurrence relating to the Humboldt Project, except for 
     damages caused by acts of negligence committed by the United 
     States or by its employees or agents prior to the date of 
     conveyance. Nothing in this section shall be considered to 
     increase the liability of the United States beyond that 
     currently provided in chapter 171 of title 28, United States 
     Code, popularly known as the ``Federal Tort Claims Act''.

     SEC. 808. NATIONAL ENVIRONMENTAL POLICY ACT.

       Prior to any conveyance under this title, the Secretary 
     shall complete all actions as may be required under the 
     National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
     seq.), the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.), and all other applicable laws.

     SEC. 809. FUTURE BENEFITS.

       Upon conveyance of the lands and facilities by the 
     Secretary under this title, the Humboldt Project shall no 
     longer be a Federal reclamation project and the district 
     shall not be entitled to receive any future reclamation 
     benefits with respect to that project, except those benefits 
     that would be available to other nonreclamation districts.

                   TITLE IX--MISCELLANEOUS PROVISIONS

     SEC. 901. TECHNICAL AMENDMENTS TO THE MESQUITE LANDS ACT 
                   2001.

       Section 3 of Public Law 99-548 (100 Stat. 3061; 110 Stat. 
     3009-202) is amended--
       (1) in subsection (d), by adding at the end the following:
       ``(3) Use of proceeds.--The proceeds of the sale of each 
     parcel completed after the date of enactment of this 
     subsection shall be deposited in the special account 
     established under section 4(e)(1)(C) of the Southern Nevada 
     Public Land Management Act of 1998 (112 Stat. 2345); and 
     shall be available for use by the Secretary--
       ``(A) to reimburse costs incurred by the local offices of 
     the Bureau of Land Management in arranging the land 
     conveyances directed by this section;
       ``(B) for the development of a multispecies habitat 
     conservation plan for the Virgin River in Clark County, 
     Nevada, including any associated groundwater monitoring plan; 
     and
       ``(C) as provided in section 4(e)(3) of that Act (112 Stat. 
     2346).
       ``(4) Timing.--Not later than 90 days after the date of 
     enactment of this section, the Secretary shall complete the 
     sale of any parcel authorized to be conveyed pursuant to this 
     section and for which the Secretary has received notification 
     from the city under paragraph (1).''; and
       (2) in subsection (f)(2)(B), by adding at the end the 
     following:
       ``(v) Sec. 7.''.

                              {time}  2015


                     Concurred in Senate Amendment

  H.R. 3801, to provide for improvement of Federal education research, 
statistics, evaluation, information, and dissemination, and for other 
purposes.

       Senate amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

                   TITLE I--EDUCATION SCIENCES REFORM

Sec. 101. Short title.
Sec. 102. Definitions.

              Part A--The Institute of Education Sciences

Sec. 111. Establishment.
Sec. 112. Functions.
Sec. 113. Delegation.
Sec. 114. Office of the Director.
Sec. 115. Priorities.
Sec. 116. National Board for Education Sciences.
Sec. 117. Commissioners of the National Education Centers.
Sec. 118. Agreements.
Sec. 119. Biennial report.
Sec. 120. Competitive awards.

             Part B--National Center for Education Research

Sec. 131. Establishment.
Sec. 132. Commissioner for Education Research.
Sec. 133. Duties.
Sec. 134. Standards for conduct and evaluation of research.

            Part C--National Center for Education Statistics

Sec. 151. Establishment.
Sec. 152. Commissioner for Education Statistics.
Sec. 153. Duties.
Sec. 154. Performance of duties.
Sec. 155. Reports.
Sec. 156. Dissemination.
Sec. 157. Cooperative education statistics systems.
Sec. 158. State defined.

     Part D--National Center for Education Evaluation and Regional 
                               Assistance

Sec. 171. Establishment.
Sec. 172. Commissioner for Education Evaluation and Regional 
              Assistance.
Sec. 173. Evaluations.
Sec. 174. Regional educational laboratories for research, development, 
              dissemination, and technical assistance.

                       Part E--General Provisions

Sec. 181. Interagency data sources and formats.
Sec. 182. Prohibitions.
Sec. 183. Confidentiality.
Sec. 184. Availability of data.
Sec. 185. Performance management.
Sec. 186. Authority to publish.
Sec. 187. Vacancies.
Sec. 188. Scientific or technical employees.
Sec. 189. Fellowships.
Sec. 190. Voluntary service.
Sec. 191. Rulemaking.
Sec. 192. Copyright.
Sec. 193. Removal.
Sec. 194. Authorization of appropriations.

               TITLE II--EDUCATIONAL TECHNICAL ASSISTANCE

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Comprehensive centers.
Sec. 204. Evaluations.
Sec. 205. Existing technical assistance providers.
Sec. 206. Regional advisory committees.
Sec. 207. Priorities.
Sec. 208. Grant program for statewide, longitudinal data systems.
Sec. 209. Authorization of appropriations.

         TITLE III--NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS

Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Authorization of appropriations.

                    TITLE IV--AMENDATORY PROVISIONS

Sec. 401. Redesignations.
Sec. 402. Amendments to Department of Education Organization Act.
Sec. 403. Repeals.
Sec. 404. Conforming and technical amendments.
Sec. 405. Orderly transition.
Sec. 406. Impact aid.

                   TITLE I--EDUCATION SCIENCES REFORM

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Education Sciences Reform 
     Act of 2002''.

     SEC. 102. DEFINITIONS.

       In this title:
       (1) In general.--The terms ``elementary school'', 
     ``secondary school'', ``local educational agency'', and 
     ``State educational agency'' have the meanings given those 
     terms in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801) and the terms ``freely 
     associated states'' and ``outlying area'' have the meanings 
     given those terms in section 1121(c) of such Act (20 U.S.C. 
     6331(c)).
       (2) Applied research.--The term ``applied research'' means 
     research--
       (A) to gain knowledge or understanding necessary for 
     determining the means by which a recognized and specific need 
     may be met; and
       (B) that is specifically directed to the advancement of 
     practice in the field of education.
       (3) Basic research.--The term ``basic research'' means 
     research--
       (A) to gain fundamental knowledge or understanding of 
     phenomena and observable facts, without specific application 
     toward processes or products; and
       (B) for the advancement of knowledge in the field of 
     education.
       (4) Board.--The term ``Board'' means the National Board for 
     Education Sciences established under section 116.
       (5) Bureau.--The term ``Bureau'' means the Bureau of Indian 
     Affairs.
       (6) Comprehensive center.--The term ``comprehensive 
     center'' means an entity established under section 203 of the 
     Educational Technical Assistance Act of 2002.
       (7) Department.--The term ``Department'' means the 
     Department of Education.

[[Page 20787]]

       (8) Development.--The term ``development'' means the 
     systematic use of knowledge or understanding gained from the 
     findings of scientifically valid research and the shaping of 
     that knowledge or understanding into products or processes 
     that can be applied and evaluated and may prove useful in 
     areas such as the preparation of materials and new methods of 
     instruction and practices in teaching, that lead to the 
     improvement of the academic skills of students, and that are 
     replicable in different educational settings.
       (9) Director.--The term ``Director'' means the Director of 
     the Institute of Education Sciences.
       (10) Dissemination.--The term ``dissemination'' means the 
     communication and transfer of the results of scientifically 
     valid research, statistics, and evaluations, in forms that 
     are understandable, easily accessible, and usable, or 
     adaptable for use in, the improvement of educational practice 
     by teachers, administrators, librarians, other practitioners, 
     researchers, parents, policymakers, and the public, through 
     technical assistance, publications, electronic transfer, and 
     other means.
       (11) Early childhood educator.--The term ``early childhood 
     educator'' means a person providing, or employed by a 
     provider of, nonresidential child care services (including 
     center-based, family-based, and in-home child care services) 
     that is legally operating under State law, and that complies 
     with applicable State and local requirements for the 
     provision of child care services to children at any age from 
     birth through the age at which a child may start kindergarten 
     in that State.
       (12) Field-initiated research.--The term ``field-initiated 
     research'' means basic research or applied research in which 
     specific questions and methods of study are generated by 
     investigators (including teachers and other practitioners) 
     and that conforms to standards of scientifically valid 
     research.
       (13) Historically black college or university.--The term 
     ``historically Black college or university'' means a part B 
     institution as defined in section 322 of the Higher Education 
     Act of 1965 (20 U.S.C. 1061).
       (14) Institute.--The term ``Institute'' means the Institute 
     of Education Sciences established under section 111.
       (15) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given 
     that term in section 101(a) of the Higher Education Act of 
     1965 (20 U.S.C. 1001(a)).
       (16) National research and development center.--The term 
     ``national research and development center'' means a research 
     and development center supported under section 133(c).
       (17) Provider of early childhood services.--The term 
     ``provider of early childhood services'' means a public or 
     private entity that serves young children, including--
       (A) child care providers;
       (B) Head Start agencies operating Head Start programs, and 
     entities carrying out Early Head Start programs, under the 
     Head Start Act (42 U.S.C. 9831 et seq.);
       (C) preschools;
       (D) kindergartens; and
       (E) libraries.
       (18) Scientifically based research standards.--(A) The term 
     ``scientifically based research standards'' means research 
     standards that--
       (i) apply rigorous, systematic, and objective methodology 
     to obtain reliable and valid knowledge relevant to education 
     activities and programs; and
       (ii) present findings and make claims that are appropriate 
     to and supported by the methods that have been employed.
       (B) the term includes, appropriate to the research being 
     conducted--
       (i) employing systematic, empirical methods that draw on 
     observation or experiment;
       (ii) involving data analyses that are adequate to support 
     the general findings;
       (iii) relying on measurements or observational methods that 
     provide reliable data;
       (iv) making claims of causal relationships only in random 
     assignment experiments or other designs (to the extent such 
     designs substantially eliminate plausible competing 
     explanations for the obtained results);
       (v) ensuring that studies and methods are presented in 
     sufficient detail and clarity to allow for replication or, at 
     a minimum, to offer the opportunity to build systematically 
     on the findings of the research;
       (vi) obtaining acceptance by a peer-reviewed journal or 
     approval by a panel of independent experts through a 
     comparably rigorous, objective, and scientific review; and
       (vii) using research designs and methods appropriate to the 
     research question posed.
       (19) Scientifically valid education evaluation.--The term 
     ``scientifically valid education evaluation'' means an 
     evaluation that--
       (A) adheres to the highest possible standards of quality 
     with respect to research design and statistical analysis;
       (B) provides an adequate description of the programs 
     evaluated and, to the extent possible, examines the 
     relationship between program implementation and program 
     impacts;
       (C) provides an analysis of the results achieved by the 
     program with respect to its projected effects;
       (D) employs experimental designs using random assignment, 
     when feasible, and other research methodologies that allow 
     for the strongest possible causal inferences when random 
     assignment is not feasible; and
       (E) may study program implementation through a combination 
     of scientifically valid and reliable methods.
       (20) Scientifically valid research.--The term 
     ``scientifically valid research'' includes applied research, 
     basic research, and field-initiated research in which the 
     rationale, design, and interpretation are soundly developed 
     in accordance with scientifically based research standards.
       (21) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (22) State.--The term ``State'' includes (except as 
     provided in section 158) each of the 50 States, the District 
     of Columbia, the Commonwealth of Puerto Rico, the freely 
     associated states, and the outlying areas.
       (23) Technical assistance.--The term ``technical 
     assistance'' means--
       (A) assistance in identifying, selecting, or designing 
     solutions based on research, including professional 
     development and high-quality training to implement solutions 
     leading to--
       (i) improved educational and other practices and classroom 
     instruction based on scientifically valid research; and
       (ii) improved planning, design, and administration of 
     programs;
       (B) assistance in interpreting, analyzing, and utilizing 
     statistics and evaluations; and
       (C) other assistance necessary to encourage the improvement 
     of teaching and learning through the applications of 
     techniques supported by scientifically valid research.

              PART A--THE INSTITUTE OF EDUCATION SCIENCES

     SEC. 111. ESTABLISHMENT.

       (a) Establishment.--There shall be in the Department the 
     Institute of Education Sciences, to be administered by a 
     Director (as described in section 114) and, to the extent set 
     forth in section 116, a board of directors.
       (b) Mission.--
       (1) In general.--The mission of the Institute is to provide 
     national leadership in expanding fundamental knowledge and 
     understanding of education from early childhood through 
     postsecondary study, in order to provide parents, educators, 
     students, researchers, policymakers, and the general public 
     with reliable information about--
       (A) the condition and progress of education in the United 
     States, including early childhood education;
       (B) educational practices that support learning and improve 
     academic achievement and access to educational opportunities 
     for all students; and
       (C) the effectiveness of Federal and other education 
     programs.
       (2) Carrying out mission.--In carrying out the mission 
     described in paragraph (1), the Institute shall compile 
     statistics, develop products, and conduct research, 
     evaluations, and wide dissemination activities in areas of 
     demonstrated national need (including in technology areas) 
     that are supported by Federal funds appropriated to the 
     Institute and ensure that such activities--
       (A) conform to high standards of quality, integrity, and 
     accuracy; and
       (B) are objective, secular, neutral, and nonideological and 
     are free of partisan political influence and racial, 
     cultural, gender, or regional bias.
       (c) Organization.--The Institute shall consist of the 
     following:
       (1) The Office of the Director (as described in section 
     114).
       (2) The National Board for Education Sciences (as described 
     in section 116).
       (3) The National Education Centers, which include--
       (A) the National Center for Education Research (as 
     described in part B);
       (B) the National Center for Education Statistics (as 
     described in part C); and
       (C) the National Center for Education Evaluation and 
     Regional Assistance (as described in part D).

     SEC. 112. FUNCTIONS.

       From funds appropriated under section 194, the Institute, 
     directly or through grants, contracts, or cooperative 
     agreements, shall--
       (1) conduct and support scientifically valid research 
     activities, including basic research and applied research, 
     statistics activities, scientifically valid education 
     evaluation, development, and wide dissemination;
       (2) widely disseminate the findings and results of 
     scientifically valid research in education;
       (3) promote the use, development, and application of 
     knowledge gained from scientifically valid research 
     activities;
       (4) strengthen the national capacity to conduct, develop, 
     and widely disseminate scientifically valid research in 
     education;
       (5) promote the coordination, development, and 
     dissemination of scientifically valid research in education 
     within the Department and the Federal Government; and
       (6) promote the use and application of research and 
     development to improve practice in the classroom.

     SEC. 113. DELEGATION.

       (a) Delegation of Authority.--Notwithstanding section 412 
     of the Department of Education Organization Act (20 U.S.C. 
     3472), the Secretary shall delegate to the Director all 
     functions for carrying out this title (other than 
     administrative and support functions), except that--
       (1) nothing in this title or in the National Assessment of 
     Educational Progress Authorization Act (except section 
     302(e)(1)(J) of such Act) shall be construed to alter or 
     diminish the role, responsibilities, or authority of the 
     National Assessment Governing Board with respect to the

[[Page 20788]]

     National Assessment of Educational Progress (including with 
     respect to the methodologies of the National Assessment of 
     Educational Progress described in section 302(e)(1)(E)) from 
     those authorized by the National Education Statistics Act of 
     1994 (20 U.S.C. 9001 et seq.) on the day before the date of 
     enactment of this Act;
       (2) members of the National Assessment Governing Board 
     shall continue to be appointed by the Secretary;
       (3) section 302(f)(1) of the National Assessment of 
     Educational Progress Authorization Act shall apply to the 
     National Assessment Governing Board in the exercise of its 
     responsibilities under this Act;
       (4) sections 115 and 116 shall not apply to the National 
     Assessment of Educational Progress; and
       (5) sections 115 and 116 shall not apply to the National 
     Assessment Governing Board.
       (b) Other Activities.--The Secretary may assign the 
     Institute responsibility for administering other activities, 
     if those activities are consistent with--
       (1) the Institute's priorities, as approved by the National 
     Board for Education Sciences under section 116, and the 
     Institute's mission, as described in section 111(b); or
       (2) the Institute's mission, but only if those activities 
     do not divert the Institute from its priorities.

     SEC. 114. OFFICE OF THE DIRECTOR.

       (a) Appointment.--Except as provided in subsection (b)(2), 
     the President, by and with the advice and consent of the 
     Senate, shall appoint the Director of the Institute.
       (b) Term.--
       (1) In general.--The Director shall serve for a term of 6 
     years, beginning on the date of appointment of the Director.
       (2) First director.--The President, without the advice and 
     consent of the Senate, may appoint the Assistant Secretary 
     for the Office of Educational Research and Improvement (as 
     such office existed on the day before the date of enactment 
     of this Act) to serve as the first Director of the Institute.
       (3) Subsequent directors.--The Board may make 
     recommendations to the President with respect to the 
     appointment of a Director under subsection (a), other than a 
     Director appointed under paragraph (2).
       (c) Pay.--The Director shall receive the rate of basic pay 
     for level II of the Executive Schedule.
       (d) Qualifications.--The Director shall be selected from 
     individuals who are highly qualified authorities in the 
     fields of scientifically valid research, statistics, or 
     evaluation in education, as well as management within such 
     areas, and have a demonstrated capacity for sustained 
     productivity and leadership in these areas.
       (e) Administration.--The Director shall--
       (1) administer, oversee, and coordinate the activities 
     carried out under the Institute, including the activities of 
     the National Education Centers; and
       (2) coordinate and approve budgets and operating plans for 
     each of the National Education Centers for submission to the 
     Secretary.
       (f) Duties.--The duties of the Director shall include the 
     following:
       (1) To propose to the Board priorities for the Institute, 
     in accordance with section 115(a).
       (2) To ensure the methodology applied in conducting 
     research, development, evaluation, and statistical analysis 
     is consistent with the standards for such activities under 
     this title.
       (3) To coordinate education research and related activities 
     carried out by the Institute with such research and 
     activities carried out by other agencies within the 
     Department and the Federal Government.
       (4) To advise the Secretary on research, evaluation, and 
     statistics activities relevant to the activities of the 
     Department.
       (5) To establish necessary procedures for technical and 
     scientific peer review of the activities of the Institute, 
     consistent with section 116(b)(3).
       (6) To ensure that all participants in research conducted 
     or supported by the Institute are afforded their privacy 
     rights and other relevant protections as research subjects, 
     in accordance with section 183 of this title, section 552a of 
     title 5, United States Code, and sections 444 and 445 of the 
     General Education Provisions Act (20 U.S.C. 1232g, 1232h).
       (7) To ensure that activities conducted or supported by the 
     Institute are objective, secular, neutral, and nonideological 
     and are free of partisan political influence and racial, 
     cultural, gender, or regional bias.
       (8) To undertake initiatives and programs to increase the 
     participation of researchers and institutions that have been 
     historically underutilized in Federal education research 
     activities of the Institute, including historically Black 
     colleges or universities or other institutions of higher 
     education with large numbers of minority students.
       (9) To coordinate with the Secretary to promote and provide 
     for the coordination of research and development activities 
     and technical assistance activities between the Institute and 
     comprehensive centers.
       (10) To solicit and consider the recommendations of 
     education stakeholders, in order to ensure that there is 
     broad and regular public and professional input from the 
     educational field in the planning and carrying out of the 
     Institute's activities.
       (11) To coordinate the wide dissemination of information on 
     scientifically valid research.
       (12) To carry out and support other activities consistent 
     with the priorities and mission of the Institute.
       (g) Expert Guidance and Assistance.--The Director may 
     establish technical and scientific peer-review groups and 
     scientific program advisory committees for research and 
     evaluations that the Director determines are necessary to 
     carry out the requirements of this title. The Director shall 
     appoint such personnel, except that officers and employees of 
     the United States shall comprise no more than \1/4\ of the 
     members of any such group or committee and shall not receive 
     additional compensation for their service as members of such 
     a group or committee. The Director shall ensure that 
     reviewers are highly qualified and capable to appraise 
     education research and development projects. The Federal 
     Advisory Committee Act (5 U.S.C. App.) shall not apply to a 
     peer-review group or an advisory committee established under 
     this subsection.
       (h) Review.--The Director may, when requested by other 
     officers of the Department, and shall, when directed by the 
     Secretary, review the products and publications of other 
     offices of the Department to certify that evidence-based 
     claims about those products and publications are 
     scientifically valid.

     SEC. 115. PRIORITIES.

       (a) Proposal.--The Director shall propose to the Board 
     priorities for the Institute (taking into consideration long-
     term research and development on core issues conducted 
     through the national research and development centers). The 
     Director shall identify topics that may require long-term 
     research and topics that are focused on understanding and 
     solving particular education problems and issues, including 
     those associated with the goals and requirements established 
     in the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) and the Higher Education Act of 1965 (20 
     U.S.C. 1001 et seq.), such as--
       (1) closing the achievement gap between high-performing and 
     low-performing children, especially achievement gaps between 
     minority and nonminority children and between disadvantaged 
     children and such children's more advantaged peers; and
       (2) ensuring--
       (A) that all children have the ability to obtain a high-
     quality education (from early childhood through postsecondary 
     education) and reach, at a minimum, proficiency on 
     challenging State academic achievement standards and State 
     academic assessments, particularly in mathematics, science, 
     and reading or language arts;
       (B) access to, and opportunities for, postsecondary 
     education; and
       (C) the efficacy, impact on academic achievement, and cost-
     effectiveness of technology use within the Nation's schools.
       (b) Approval.--The Board shall approve or disapprove the 
     priorities for the Institute proposed by the Director, 
     including any necessary revision of those priorities. The 
     Board shall transmit any priorities so approved to the 
     appropriate congressional committees.
       (c) Consistency.--The Board shall ensure that priorities of 
     the Institute and the National Education Centers are 
     consistent with the mission of the Institute.
       (d) Public Availability and Comment.--
       (1) Priorities.--Before submitting to the Board proposed 
     priorities for the Institute, the Director shall make such 
     priorities available to the public for comment for not less 
     than 60 days (including by means of the Internet and through 
     publishing such priorities in the Federal Register). The 
     Director shall provide to the Board a copy of each such 
     comment submitted.
       (2) Plan.--Upon approval of such priorities, the Director 
     shall make the Institute's plan for addressing such 
     priorities available for public comment in the same manner as 
     under paragraph (1).

     SEC. 116. NATIONAL BOARD FOR EDUCATION SCIENCES.

       (a) Establishment.--The Institute shall have a board of 
     directors, which shall be known as the National Board for 
     Education Sciences.
       (b) Duties.--The duties of the Board shall be the 
     following:
       (1) To advise and consult with the Director on the policies 
     of the Institute.
       (2) To consider and approve priorities proposed by the 
     Director under section 115 to guide the work of the 
     Institute.
       (3) To review and approve procedures for technical and 
     scientific peer review of the activities of the Institute.
       (4) To advise the Director on the establishment of 
     activities to be supported by the Institute, including the 
     general areas of research to be carried out by the National 
     Center for Education Research.
       (5) To present to the Director such recommendations as it 
     may find appropriate for--
       (A) the strengthening of education research; and
       (B) the funding of the Institute.
       (6) To advise the Director on the funding of applications 
     for grants, contracts, and cooperative agreements for 
     research, after the completion of peer review.
       (7) To review and regularly evaluate the work of the 
     Institute, to ensure that scientifically valid research, 
     development, evaluation, and statistical analysis are 
     consistent with the standards for such activities under this 
     title.
       (8) To advise the Director on ensuring that activities 
     conducted or supported by the Institute are objective, 
     secular, neutral, and nonideological and are free of partisan 
     political influence and racial, cultural, gender, or regional 
     bias.
       (9) To solicit advice and information from those in the 
     educational field, particularly practitioners and 
     researchers, to recommend to the

[[Page 20789]]

     Director topics that require long-term, sustained, 
     systematic, programmatic, and integrated research efforts, 
     including knowledge utilization and wide dissemination of 
     research, consistent with the priorities and mission of the 
     Institute.
       (10) To advise the Director on opportunities for the 
     participation in, and the advancement of, women, minorities, 
     and persons with disabilities in education research, 
     statistics, and evaluation activities of the Institute.
       (11) To recommend to the Director ways to enhance strategic 
     partnerships and collaborative efforts among other Federal 
     and State research agencies.
       (12) To recommend to the Director individuals to serve as 
     Commissioners of the National Education Centers.
       (c) Composition.--
       (1) Voting members.--The Board shall have 15 voting members 
     appointed by the President, by and with the advice and 
     consent of the Senate.
       (2) Advice.--The President shall solicit advice regarding 
     individuals to serve on the Board from the National Academy 
     of Sciences, the National Science Board, and the National 
     Science Advisor.
       (3) Nonvoting ex officio members.--The Board shall have the 
     following nonvoting ex officio members:
       (A) The Director of the Institute of Education Sciences.
       (B) Each of the Commissioners of the National Education 
     Centers.
       (C) The Director of the National Institute of Child Health 
     and Human Development.
       (D) The Director of the Census.
       (E) The Commissioner of Labor Statistics.
       (F) The Director of the National Science Foundation.
       (4) Appointed membership.--
       (A) Qualifications.--Members appointed under paragraph (1) 
     shall be highly qualified to appraise education research, 
     statistics, evaluations, or development, and shall include 
     the following individuals:
       (i) Not fewer than 8 researchers in the field of 
     statistics, evaluation, social sciences, or physical and 
     biological sciences, which may include those researchers 
     recommended by the National Academy of Sciences.
       (ii) Individuals who are knowledgeable about the 
     educational needs of the United States, who may include 
     school-based professional educators, parents (including 
     parents with experience in promoting parental involvement in 
     education), Chief State School Officers, State postsecondary 
     education executives, presidents of institutions of higher 
     education, local educational agency superintendents, early 
     childhood experts, principals, members of State or local 
     boards of education or Bureau-funded school boards, and 
     individuals from business and industry with experience in 
     promoting private sector involvement in education.
       (B) Terms.--Each member appointed under paragraph (1) shall 
     serve for a term of 4 years, except that--
       (i) the terms of the initial members appointed under such 
     paragraph shall (as determined by a random selection process 
     at the time of appointment) be for staggered terms of--

       (I) 4 years for each of 5 members;
       (II) 3 years for each of 5 members; and
       (III) 2 years for each of 5 members; and

       (ii) no member appointed under such paragraph shall serve 
     for more than 2 consecutive terms.
       (C) Unexpired terms.--Any member appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     the member's predecessor was appointed shall be appointed 
     only for the remainder of that term.
       (D) Conflict of interest.--A voting member of the Board 
     shall be considered a special Government employee for the 
     purposes of the Ethics in Government Act of 1978.
       (5) Chair.--The Board shall elect a chair from among the 
     members of the Board.
       (6) Compensation.--Members of the Board shall serve without 
     pay for such service. Members of the Board who are officers 
     or employees of the United States may not receive additional 
     pay, allowances, or benefits by reason of their service on 
     the Board.
       (7) Travel expenses.--The members of the Board shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with subchapter I of chapter 57 of 
     title 5, United States Code.
       (8) Powers of the board.--
       (A) Executive director.--The Board shall have an Executive 
     Director who shall be appointed by the Board.
       (B) Additional staff.--The Board shall utilize such 
     additional staff as may be appointed or assigned by the 
     Director, in consultation with the Chair and the Executive 
     Director.
       (C) Detail of personnel.--The Board may use the services 
     and facilities of any department or agency of the Federal 
     Government. Upon the request of the Board, the head of any 
     Federal department or agency may detail any of the personnel 
     of that department or agency to the Board to assist the Board 
     in carrying out this Act.
       (D) Contracts.--The Board may enter into contracts or make 
     other arrangements as may be necessary to carry out its 
     functions.
       (E) Information.--The Board may, to the extent otherwise 
     permitted by law, obtain directly from any executive 
     department or agency of the Federal Government such 
     information as the Board determines necessary to carry out 
     its functions.
       (9) Meetings.--The Board shall meet not less than 3 times 
     each year. The Board shall hold additional meetings at the 
     call of the Chair or upon the written request of not less 
     than 6 voting members of the Board. Meetings of the Board 
     shall be open to the public.
       (10) Quorum.--A majority of the voting members of the Board 
     serving at the time of the meeting shall constitute a quorum.
       (d) Standing Committees.--
       (1) Establishment.--The Board may establish standing 
     committees--
       (A) that will each serve 1 of the National Education 
     Centers; and
       (B) to advise, consult with, and make recommendations to 
     the Director and the Commissioner of the appropriate National 
     Education Center.
       (2) Membership.--A majority of the members of each standing 
     committee shall be voting members of the Board whose 
     expertise is needed for the functioning of the committee. In 
     addition, the membership of each standing committee may 
     include, as appropriate--
       (A) experts and scientists in research, statistics, 
     evaluation, or development who are recognized in their 
     discipline as highly qualified to represent such discipline 
     and who are not members of the Board, but who may have been 
     recommended by the Commissioner of the appropriate National 
     Education Center and approved by the Board;
       (B) ex officio members of the Board; and
       (C) policymakers and expert practitioners with knowledge 
     of, and experience using, the results of research, 
     evaluation, and statistics who are not members of the Board, 
     but who may have been recommended by the Commissioner of the 
     appropriate National Education Center and approved by the 
     Board.
       (3) Duties.--Each standing committee shall--
       (A) review and comment, at the discretion of the Board or 
     the standing committee, on any grant, contract, or 
     cooperative agreement entered into (or proposed to be entered 
     into) by the applicable National Education Center;
       (B) prepare for, and submit to, the Board an annual 
     evaluation of the operations of the applicable National 
     Education Center;
       (C) review and comment on the relevant plan for activities 
     to be undertaken by the applicable National Education Center 
     for each fiscal year; and
       (D) report periodically to the Board regarding the 
     activities of the committee and the applicable National 
     Education Center.
       (e) Annual Report.--The Board shall submit to the Director, 
     the Secretary, and the appropriate congressional committees, 
     not later than July 1 of each year, a report that assesses 
     the effectiveness of the Institute in carrying out its 
     priorities and mission, especially as such priorities and 
     mission relate to carrying out scientifically valid research, 
     conducting unbiased evaluations, collecting and reporting 
     accurate education statistics, and translating research into 
     practice.
       (f) Recommendations.--The Board shall submit to the 
     Director, the Secretary, and the appropriate congressional 
     committees a report that includes any recommendations 
     regarding any actions that may be taken to enhance the 
     ability of the Institute to carry out its priorities and 
     mission. The Board shall submit an interim report not later 
     than 3 years after the date of enactment of this Act and a 
     final report not later than 5 years after such date of 
     enactment.

     SEC. 117. COMMISSIONERS OF THE NATIONAL EDUCATION CENTERS.

       (a) Appointment of Commissioners.--
       (1) In general.--Except as provided in subsection (b), each 
     of the National Education Centers shall be headed by a 
     Commissioner appointed by the Director. In appointing 
     Commissioners, the Director shall seek to promote continuity 
     in leadership of the National Education Centers and shall 
     consider individuals recommended by the Board. The Director 
     may appoint a Commissioner to carry out the functions of a 
     National Education Center without regard to the provisions of 
     title 5, United States Code, governing appointments in the 
     competitive service, and the provisions of chapter 51 and 
     subchapter III of chapter 53 of such title relating to 
     classification and General Schedule pay rates.
       (2) Pay and qualifications.--Except as provided in 
     subsection (b), each Commissioner shall--
       (A) receive the rate of basic pay for level IV of the 
     Executive Schedule; and
       (B) be highly qualified in the field of education research 
     or evaluation.
       (3) Service.--Except as provided in subsection (b), each 
     Commissioner shall report to the Director. A Commissioner 
     shall serve for a period of not more than 6 years, except 
     that a Commissioner--
       (A) may be reappointed by the Director; and
       (B) may serve after the expiration of that Commissioner's 
     term, until a successor has been appointed, for a period not 
     to exceed 1 additional year.
       (b) Appointment of Commissioner for Education Statistics.--
     The National Center for Education Statistics shall be headed 
     by a Commissioner for Education Statistics who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate, and who shall--
       (1) have substantial knowledge of programs assisted by the 
     National Center for Education Statistics;
       (2) receive the rate of basic pay for level IV of the 
     Executive Schedule; and
       (3) serve for a term of 6 years, with the term to expire 
     every sixth June 21, beginning in 2003.
       (c) Coordination.--Each Commissioner of a National 
     Education Center shall coordinate

[[Page 20790]]

     with each of the other Commissioners of the National 
     Education Centers in carrying out such Commissioner's duties 
     under this title.
       (d) Supervision and Approval.--Each Commissioner, except 
     the Commissioner for Education Statistics, shall carry out 
     such Commissioner's duties under this title under the 
     supervision and subject to the approval of the Director.

     SEC. 118. AGREEMENTS.

       The Institute may carry out research projects of common 
     interest with entities such as the National Science 
     Foundation and the National Institute of Child Health and 
     Human Development through agreements with such entities that 
     are in accordance with section 430 of the General Education 
     Provisions Act (20 U.S.C. 1231).

     SEC. 119. BIENNIAL REPORT.

       The Director shall, on a biennial basis, transmit to the 
     President, the Board, and the appropriate congressional 
     committees, and make widely available to the public 
     (including by means of the Internet), a report containing the 
     following:
       (1) A description of the activities carried out by and 
     through the National Education Centers during the prior 
     fiscal years.
       (2) A summary of each grant, contract, and cooperative 
     agreement in excess of $100,000 funded through the National 
     Education Centers during the prior fiscal years, including, 
     at a minimum, the amount, duration, recipient, purpose of the 
     award, and the relationship, if any, to the priorities and 
     mission of the Institute, which shall be available in a user-
     friendly electronic database.
       (3) A description of how the activities of the National 
     Education Centers are consistent with the principles of 
     scientifically valid research and the priorities and mission 
     of the Institute.
       (4) Such additional comments, recommendations, and 
     materials as the Director considers appropriate.

     SEC. 120. COMPETITIVE AWARDS.

       Activities carried out under this Act through grants, 
     contracts, or cooperative agreements, at a minimum, shall be 
     awarded on a competitive basis and, when practicable, through 
     a process of peer review.

             PART B--NATIONAL CENTER FOR EDUCATION RESEARCH

     SEC. 131. ESTABLISHMENT.

       (a) Establishment.--There is established in the Institute a 
     National Center for Education Research (in this part referred 
     to as the ``Research Center'').
       (b) Mission.--The mission of the Research Center is--
       (1) to sponsor sustained research that will lead to the 
     accumulation of knowledge and understanding of education, 
     to--
       (A) ensure that all children have access to a high-quality 
     education;
       (B) improve student academic achievement, including through 
     the use of educational technology;
       (C) close the achievement gap between high-performing and 
     low-performing students through the improvement of teaching 
     and learning of reading, writing, mathematics, science, and 
     other academic subjects; and
       (D) improve access to, and opportunity for, postsecondary 
     education;
       (2) to support the synthesis and, as appropriate, the 
     integration of education research;
       (3) to promote quality and integrity through the use of 
     accepted practices of scientific inquiry to obtain knowledge 
     and understanding of the validity of education theories, 
     practices, or conditions; and
       (4) to promote scientifically valid research findings that 
     can provide the basis for improving academic instruction and 
     lifelong learning.

     SEC. 132. COMMISSIONER FOR EDUCATION RESEARCH.

       The Research Center shall be headed by a Commissioner for 
     Education Research (in this part referred to as the 
     ``Research Commissioner'') who shall have substantial 
     knowledge of the activities of the Research Center, including 
     a high level of expertise in the fields of research and 
     research management.

     SEC. 133. DUTIES.

       (a) General Duties.--The Research Center shall--
       (1) maintain published peer-review standards and standards 
     for the conduct and evaluation of all research and 
     development carried out under the auspices of the Research 
     Center in accordance with this part;
       (2) propose to the Director a research plan that--
       (A) is consistent with the priorities and mission of the 
     Institute and the mission of the Research Center and includes 
     the activities described in paragraph (3); and
       (B) shall be carried out pursuant to paragraph (4) and, as 
     appropriate, be updated and modified;
       (3) carry out specific, long-term research activities that 
     are consistent with the priorities and mission of the 
     Institute, and are approved by the Director;
       (4) implement the plan proposed under paragraph (2) to 
     carry out scientifically valid research that--
       (A) uses objective and measurable indicators, including 
     timelines, that are used to assess the progress and results 
     of such research;
       (B) meets the procedures for peer review established by the 
     Director under section 114(f)(5) and the standards of 
     research described in section 134; and
       (C) includes both basic research and applied research, 
     which shall include research conducted through field-
     initiated research and ongoing research initiatives;
       (5) promote the use of scientifically valid research within 
     the Federal Government, including active participation in 
     interagency research projects described in section 118;
       (6) ensure that research conducted under the direction of 
     the Research Center is relevant to education practice and 
     policy;
       (7) synthesize and disseminate, through the National Center 
     for Education Evaluation and Regional Assistance, the 
     findings and results of education research conducted or 
     supported by the Research Center;
       (8) assist the Director in the preparation of a biennial 
     report, as described in section 119;
       (9) carry out research on successful State and local 
     education reform activities, including those that result in 
     increased academic achievement and in closing the achievement 
     gap, as approved by the Director;
       (10) carry out research initiatives regarding the impact of 
     technology, including--
       (A) research into how technology affects student 
     achievement;
       (B) long-term research into cognition and learning issues 
     as they relate to the uses of technology;
       (C) rigorous, peer-reviewed, large-scale, long-term, and 
     broadly applicable empirical research that is designed to 
     determine which approaches to the use of technology are most 
     effective and cost-efficient in practice and under what 
     conditions; and
       (D) field-based research on how teachers implement 
     technology and Internet-based resources in the classroom, 
     including an understanding how these resources are being 
     accessed, put to use, and the effectiveness of such 
     resources; and
       (11) carry out research that is rigorous, peer-reviewed, 
     and large scale to determine which methods of mathematics and 
     science teaching are most effective, cost efficient, and able 
     to be applied, duplicated, and scaled up for use in 
     elementary and secondary classrooms, including in low-
     performing schools, to improve the teaching of, and student 
     achievement in, mathematics and science as required under the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.).
       (b) Eligibility.--Research carried out under subsection (a) 
     through contracts, grants, or cooperative agreements shall be 
     carried out only by recipients with the ability and capacity 
     to conduct scientifically valid research.
       (c) National Research and Development Centers.--
       (1) Support.--In carrying out activities under subsection 
     (a)(3), the Research Commissioner shall support not less than 
     8 national research and development centers. The Research 
     Commissioner shall assign each of the 8 national research and 
     development centers not less than 1 of the topics described 
     in paragraph (2). In addition, the Research Commissioner may 
     assign each of the 8 national research and development 
     centers additional topics of research consistent with the 
     mission and priorities of the Institute and the mission of 
     the Research Center.
       (2) Topics of research.--The Research Commissioner shall 
     support the following topics of research, through national 
     research and development centers or through other means:
       (A) Adult literacy.
       (B) Assessment, standards, and accountability research.
       (C) Early childhood development and education.
       (D) English language learners research.
       (E) Improving low achieving schools.
       (F) Innovation in education reform.
       (G) State and local policy.
       (H) Postsecondary education and training.
       (I) Rural education.
       (J) Teacher quality.
       (K) Reading and literacy.
       (3) Duties of centers.--The national research and 
     development centers shall address areas of national need, 
     including in educational technology areas. The Research 
     Commissioner may support additional national research and 
     development centers to address topics of research not 
     described in paragraph (2) if such topics are consistent with 
     the priorities and mission of the Institute and the mission 
     of the Research Center. The research carried out by the 
     centers shall incorporate the potential or existing role of 
     educational technology, where appropriate, in achieving the 
     goals of each center.
       (4) Scope.--Support for a national research and development 
     center shall be for a period of not more than 5 years, shall 
     be of sufficient size and scope to be effective, and 
     notwithstanding section 134(b), may be renewed without 
     competition for not more than 5 additional years if the 
     Director, in consultation with the Research Commissioner and 
     the Board, determines that the research of the national 
     research and development center--
       (A) continues to address priorities of the Institute; and
       (B) merits renewal (applying the procedures and standards 
     established in section 134).
       (5) Limit.--No national research and development center may 
     be supported under this subsection for a period of more than 
     10 years without submitting to a competitive process for the 
     award of the support.
       (6) Continuation of awards.--The Director shall continue 
     awards made to the national research and development centers 
     that are in effect on the day before the date of enactment of 
     this Act in accordance with the terms of those awards and may 
     renew them in accordance with paragraphs (4) and (5).

[[Page 20791]]

       (7) Disaggregation.--To the extent feasible, research 
     conducted under this subsection shall be disaggregated by 
     age, race, gender, and socioeconomic background.

     SEC. 134. STANDARDS FOR CONDUCT AND EVALUATION OF RESEARCH.

       (a) In General.--In carrying out this part, the Research 
     Commissioner shall--
       (1) ensure that all research conducted under the direction 
     of the Research Center follows scientifically based research 
     standards;
       (2) develop such other standards as may be necessary to 
     govern the conduct and evaluation of all research, 
     development, and wide dissemination activities carried out by 
     the Research Center to assure that such activities meet the 
     highest standards of professional excellence;
       (3) review the procedures utilized by the National 
     Institutes of Health, the National Science Foundation, and 
     other Federal departments or agencies engaged in research and 
     development, and actively solicit recommendations from 
     research organizations and members of the general public in 
     the development of the standards described in paragraph (2); 
     and
       (4) ensure that all research complies with Federal 
     guidelines relating to research misconduct.
       (b) Peer Review.--
       (1) In general.--The Director shall establish a peer review 
     system, involving highly qualified individuals with an in-
     depth knowledge of the subject to be investigated, for 
     reviewing and evaluating all applications for grants and 
     cooperative agreements that exceed $100,000, and for 
     evaluating and assessing the products of research by all 
     recipients of grants and cooperative agreements under this 
     Act.
       (2) Evaluation.--The Research Commissioner shall--
       (A) develop the procedures to be used in evaluating 
     applications for research grants, cooperative agreements, and 
     contracts, and specify the criteria and factors (including, 
     as applicable, the use of longitudinal data linking test 
     scores, enrollment, and graduation rates over time) which 
     shall be considered in making such evaluations; and
       (B) evaluate the performance of each recipient of an award 
     of a research grant, contract, or cooperative agreement at 
     the conclusion of the award.
       (c) Long-Term Research.--The Research Commissioner shall 
     ensure that not less than 50 percent of the funds made 
     available for research for each fiscal year shall be used to 
     fund long-term research programs of not less than 5 years, 
     which support the priorities and mission of the Institute and 
     the mission of the Research Center.

            PART C--NATIONAL CENTER FOR EDUCATION STATISTICS

     SEC. 151. ESTABLISHMENT.

       (a) Establishment.--There is established in the Institute a 
     National Center for Education Statistics (in this part 
     referred to as the ``Statistics Center'').
       (b) Mission.--The mission of the Statistics Center shall 
     be--
       (1) to collect and analyze education information and 
     statistics in a manner that meets the highest methodological 
     standards;
       (2) to report education information and statistics in a 
     timely manner; and
       (3) to collect, analyze, and report education information 
     and statistics in a manner that--
       (A) is objective, secular, neutral, and nonideological and 
     is free of partisan political influence and racial, cultural, 
     gender, or regional bias; and
       (B) is relevant and useful to practitioners, researchers, 
     policymakers, and the public.

     SEC. 152. COMMISSIONER FOR EDUCATION STATISTICS.

       The Statistics Center shall be headed by a Commissioner for 
     Education Statistics (in this part referred to as the 
     ``Statistics Commissioner'') who shall be highly qualified 
     and have substantial knowledge of statistical methodologies 
     and activities undertaken by the Statistics Center.

     SEC. 153. DUTIES.

       (a) General Duties.--The Statistics Center shall collect, 
     report, analyze, and disseminate statistical data related to 
     education in the United States and in other nations, 
     including--
       (1) collecting, acquiring, compiling (where appropriate, on 
     a State-by-State basis), and disseminating full and complete 
     statistics (disaggregated by the population characteristics 
     described in paragraph (3)) on the condition and progress of 
     education, at the preschool, elementary, secondary, 
     postsecondary, and adult levels in the United States, 
     including data on--
       (A) State and local education reform activities;
       (B) State and local early childhood school readiness 
     activities;
       (C) student achievement in, at a minimum, the core academic 
     areas of reading, mathematics, and science at all levels of 
     education;
       (D) secondary school completions, dropouts, and adult 
     literacy and reading skills;
       (E) access to, and opportunity for, postsecondary 
     education, including data on financial aid to postsecondary 
     students;
       (F) teaching, including--
       (i) data on in-service professional development, including 
     a comparison of courses taken in the core academic areas of 
     reading, mathematics, and science with courses in noncore 
     academic areas, including technology courses; and
       (ii) the percentage of teachers who are highly qualified 
     (as such term is defined in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801)) in each 
     State and, where feasible, in each local educational agency 
     and school;
       (G) instruction, the conditions of the education workplace, 
     and the supply of, and demand for, teachers;
       (H) the incidence, frequency, seriousness, and nature of 
     violence affecting students, school personnel, and other 
     individuals participating in school activities, as well as 
     other indices of school safety, including information 
     regarding--
       (i) the relationship between victims and perpetrators;
       (ii) demographic characteristics of the victims and 
     perpetrators; and
       (iii) the type of weapons used in incidents, as classified 
     in the Uniform Crime Reports of the Federal Bureau of 
     Investigation;
       (I) the financing and management of education, including 
     data on revenues and expenditures;
       (J) the social and economic status of children, including 
     their academic achievement;
       (K) the existence and use of educational technology and 
     access to the Internet by students and teachers in elementary 
     schools and secondary schools;
       (L) access to, and opportunity for, early childhood 
     education;
       (M) the availability of, and access to, before-school and 
     after-school programs (including such programs during school 
     recesses);
       (N) student participation in and completion of secondary 
     and postsecondary vocational and technical education programs 
     by specific program area; and
       (O) the existence and use of school libraries;
       (2) conducting and publishing reports on the meaning and 
     significance of the statistics described in paragraph (1);
       (3) collecting, analyzing, cross-tabulating, and reporting, 
     to the extent feasible, information by gender, race, 
     ethnicity, socioeconomic status, limited English proficiency, 
     mobility, disability, urban, rural, suburban districts, and 
     other population characteristics, when such disaggregated 
     information will facilitate educational and policy 
     decisionmaking;
       (4) assisting public and private educational agencies, 
     organizations, and institutions in improving and automating 
     statistical and data collection activities, which may include 
     assisting State educational agencies and local educational 
     agencies with the disaggregation of data and with the 
     development of longitudinal student data systems;
       (5) determining voluntary standards and guidelines to 
     assist State educational agencies in developing statewide 
     longitudinal data systems that link individual student data 
     consistent with the requirements of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
     promote linkages across States, and protect student privacy 
     consistent with section 183, to improve student academic 
     achievement and close achievement gaps;
       (6) acquiring and disseminating data on educational 
     activities and student achievement (such as the Third 
     International Math and Science Study) in the United States 
     compared with foreign nations;
       (7) conducting longitudinal and special data collections 
     necessary to report on the condition and progress of 
     education;
       (8) assisting the Director in the preparation of a biennial 
     report, as described in section 119; and
       (9) determining, in consultation with the National Research 
     Council of the National Academies, methodology by which 
     States may accurately measure graduation rates (defined as 
     the percentage of students who graduate from secondary school 
     with a regular diploma in the standard number of years), 
     school completion rates, and dropout rates.
       (b) Training Program.--The Statistics Commissioner may 
     establish a program to train employees of public and private 
     educational agencies, organizations, and institutions in the 
     use of standard statistical procedures and concepts, and may 
     establish a fellowship program to appoint such employees as 
     temporary fellows at the Statistics Center, in order to 
     assist the Statistics Center in carrying out its duties.

     SEC. 154. PERFORMANCE OF DUTIES.

       (a) Grants, Contracts, and Cooperative Agreements.--In 
     carrying out the duties under this part, the Statistics 
     Commissioner, may award grants, enter into contracts and 
     cooperative agreements, and provide technical assistance.
       (b) Gathering Information.--
       (1) Sampling.--The Statistics Commissioner may use the 
     statistical method known as sampling (including random 
     sampling) to carry out this part.
       (2) Source of information.--The Statistics Commissioner 
     may, as appropriate, use information collected--
       (A) from States, local educational agencies, public and 
     private schools, preschools, institutions of higher 
     education, vocational and adult education programs, 
     libraries, administrators, teachers, students, the general 
     public, and other individuals, organizations, agencies, and 
     institutions (including information collected by States and 
     local educational agencies for their own use); and
       (B) by other offices within the Institute and by other 
     Federal departments, agencies, and instrumentalities.
       (3) Collection.--The Statistics Commissioner may--
       (A) enter into interagency agreements for the collection of 
     statistics;
       (B) arrange with any agency, organization, or institution 
     for the collection of statistics; and
       (C) assign employees of the Statistics Center to any such 
     agency, organization, or institution to assist in such 
     collection.

[[Page 20792]]

       (4) Technical assistance and coordination.--In order to 
     maximize the effectiveness of Department efforts to serve the 
     educational needs of children and youth, the Statistics 
     Commissioner shall--
       (A) provide technical assistance to the Department offices 
     that gather data for statistical purposes; and
       (B) coordinate with other Department offices in the 
     collection of data.
       (c) Duration.--Notwithstanding any other provision of law, 
     the grants, contracts, and cooperative agreements under this 
     section may be awarded, on a competitive basis, for a period 
     of not more than 5 years, and may be renewed at the 
     discretion of the Statistics Commissioner for an additional 
     period of not more than 5 years.

     SEC. 155. REPORTS.

       (a) Procedures for Issuance of Reports.--The Statistics 
     Commissioner, shall establish procedures, in accordance with 
     section 186, to ensure that the reports issued under this 
     section are relevant, of high quality, useful to customers, 
     subject to rigorous peer review, produced in a timely 
     fashion, and free from any partisan political influence.
       (b) Report on Condition and Progress of Education.--Not 
     later than June 1, 2003, and each June 1 thereafter, the 
     Statistics Commissioner, shall submit to the President and 
     the appropriate congressional committees a statistical report 
     on the condition and progress of education in the United 
     States.
       (c) Statistical Reports.--The Statistics Commissioner shall 
     issue regular and, as necessary, special statistical reports 
     on education topics, particularly in the core academic areas 
     of reading, mathematics, and science, consistent with the 
     priorities and the mission of the Statistics Center.

     SEC. 156. DISSEMINATION.

       (a) General Requests.--
       (1) In general.--The Statistics Center may furnish 
     transcripts or copies of tables and other statistical records 
     and make special statistical compilations and surveys for 
     State and local officials, public and private organizations, 
     and individuals.
       (2) Compilations.--The Statistics Center shall provide 
     State educational agencies, local educational agencies, and 
     institutions of higher education with opportunities to 
     suggest the establishment of particular compilations of 
     statistics, surveys, and analyses that will assist those 
     educational agencies.
       (b) Congressional Requests.--The Statistics Center shall 
     furnish such special statistical compilations and surveys as 
     the relevant congressional committees may request.
       (c) Joint Statistical Projects.--The Statistics Center may 
     engage in joint statistical projects related to the mission 
     of the Center, or other statistical purposes authorized by 
     law, with nonprofit organizations or agencies, and the cost 
     of such projects shall be shared equitably as determined by 
     the Secretary.
       (d) Fees.--
       (1) In general.--Statistical compilations and surveys under 
     this section, other than those carried out pursuant to 
     subsections (b) and (c), may be made subject to the payment 
     of the actual or estimated cost of such work.
       (2) Funds received.--All funds received in payment for work 
     or services described in this subsection may be used to pay 
     directly the costs of such work or services, to repay 
     appropriations that initially bore all or part of such costs, 
     or to refund excess sums when necessary.
       (e) Access.--
       (1) Other agencies.--The Statistics Center shall, 
     consistent with section 183, cooperate with other Federal 
     agencies having a need for educational data in providing 
     access to educational data received by the Statistics Center.
       (2) Interested parties.--The Statistics Center shall, in 
     accordance with such terms and conditions as the Center may 
     prescribe, provide all interested parties, including public 
     and private agencies, parents, and other individuals, direct 
     access, in the most appropriate form (including, where 
     possible, electronically), to data collected by the 
     Statistics Center for the purposes of research and acquiring 
     statistical information.

     SEC. 157. COOPERATIVE EDUCATION STATISTICS SYSTEMS.

       The Statistics Center may establish 1 or more national 
     cooperative education statistics systems for the purpose of 
     producing and maintaining, with the cooperation of the 
     States, comparable and uniform information and data on early 
     childhood education, elementary and secondary education, 
     postsecondary education, adult education, and libraries, that 
     are useful for policymaking at the Federal, State, and local 
     levels.

     SEC. 158. STATE DEFINED.

       In this part, the term ``State'' means each of the 50 
     States, the District of Columbia, and the Commonwealth of 
     Puerto Rico.

     PART D--NATIONAL CENTER FOR EDUCATION EVALUATION AND REGIONAL 
                               ASSISTANCE

     SEC. 171. ESTABLISHMENT.

       (a) Establishment.--There is established in the Institute a 
     National Center for Education Evaluation and Regional 
     Assistance.
       (b) Mission.--The mission of the National Center for 
     Education Evaluation and Regional Assistance shall be--
       (1) to provide technical assistance;
       (2) to conduct evaluations of Federal education programs 
     administered by the Secretary (and as time and resources 
     allow, other education programs) to determine the impact of 
     such programs (especially on student academic achievement in 
     the core academic areas of reading, mathematics, and 
     science);
       (3) to support synthesis and wide dissemination of results 
     of evaluation, research, and products developed; and
       (4) to encourage the use of scientifically valid education 
     research and evaluation throughout the United States.
       (c) Grants, Contracts, and Cooperative Agreements.--In 
     carrying out the duties under this part, the Director may 
     award grants, enter into contracts and cooperative 
     agreements, and provide technical assistance.

     SEC. 172. COMMISSIONER FOR EDUCATION EVALUATION AND REGIONAL 
                   ASSISTANCE.

       (a) In General.--The National Center for Education 
     Evaluation and Regional Assistance shall be headed by a 
     Commissioner for Education Evaluation and Regional Assistance 
     (in this part referred to as the ``Evaluation and Regional 
     Assistance Commissioner'') who is highly qualified and has 
     demonstrated a capacity to carry out the mission of the 
     Center and shall--
       (1) conduct evaluations pursuant to section 173;
       (2) widely disseminate information on scientifically valid 
     research, statistics, and evaluation on education, 
     particularly to State educational agencies and local 
     educational agencies, to institutions of higher education, to 
     the public, the media, voluntary organizations, professional 
     associations, and other constituencies, especially with 
     respect to information relating to, at a minimum--
       (A) the core academic areas of reading, mathematics, and 
     science;
       (B) closing the achievement gap between high-performing 
     students and low-performing students;
       (C) educational practices that improve academic achievement 
     and promote learning;
       (D) education technology, including software; and
       (E) those topics covered by the Educational Resources 
     Information Center Clearinghouses (established under section 
     941(f) of the Educational Research, Development, 
     Dissemination, and Improvement Act of 1994 (20 U.S.C. 
     6041(f)) (as such provision was in effect on the day before 
     the date of enactment of this Act);
       (3) make such information accessible in a user-friendly, 
     timely, and efficient manner (including through use of a 
     searchable Internet-based online database that shall include 
     all topics covered in paragraph (2)(E)) to schools, 
     institutions of higher education, educators (including early 
     childhood educators), parents, administrators, policymakers, 
     researchers, public and private entities (including providers 
     of early childhood services), entities responsible for 
     carrying out technical assistance through the Department, and 
     the general public;
       (4) support the regional educational laboratories in 
     conducting applied research, the development and 
     dissemination of educational research, products and 
     processes, the provision of technical assistance, and other 
     activities to serve the educational needs of such 
     laboratories' regions;
       (5) manage the National Library of Education described in 
     subsection (d), and other sources of digital information on 
     education research;
       (6) assist the Director in the preparation of a biennial 
     report, described in section 119; and
       (7) award a contract for a prekindergarten through grade 12 
     mathematics and science teacher clearinghouse.
       (b) Additional Duties.--In carrying out subsection (a), the 
     Evaluation and Regional Assistance Commissioner shall--
       (1) ensure that information disseminated under this section 
     is provided in a cost-effective, nonduplicative manner that 
     includes the most current research findings, which may 
     include through the continuation of individual clearinghouses 
     authorized under the Educational Research, Development, 
     Dissemination, and Improvement Act of 1994 (title IX of the 
     Goals 2000: Educate America Act; 20 U.S.C. 6001 et seq.) (as 
     such Act existed on the day before the date of enactment of 
     this Act);
       (2) describe prominently the type of scientific evidence 
     that is used to support the findings that are disseminated;
       (3) explain clearly the scientifically appropriate and 
     inappropriate uses of--
       (A) the findings that are disseminated; and
       (B) the types of evidence used to support those findings; 
     and
       (4) respond, as appropriate, to inquiries from schools, 
     educators, parents, administrators, policymakers, 
     researchers, public and private entities, and entities 
     responsible for carrying out technical assistance.
       (c) Continuation.--The Director shall continue awards for 
     the support of the Educational Resources Information Center 
     Clearinghouses and contracts for regional educational 
     laboratories (established under subsections (f) and (h) of 
     section 941 of the Educational Research, Development, 
     Dissemination, and Improvement Act of 1994 (20 U.S.C. 6041(f) 
     and (h)) (as such awards were in effect on the day before the 
     date of enactment of this Act)) for the duration of those 
     awards, in accordance with the terms and agreements of such 
     awards.
       (d) National Library of Education.--
       (1) Establishment.--There is established within the 
     National Center for Education Evaluation and Regional 
     Assistance a National Library of Education that shall--
       (A) be headed by an individual who is highly qualified in 
     library science;
       (B) collect and archive information;
       (C) provide a central location within the Federal 
     Government for information about education;

[[Page 20793]]

       (D) provide comprehensive reference services on matters 
     related to education to employees of the Department of 
     Education and its contractors and grantees, other Federal 
     employees, and members of the public; and
       (E) promote greater cooperation and resource sharing among 
     providers and repositories of education information in the 
     United States.
       (2) Information.--The information collected and archived by 
     the National Library of Education shall include--
       (A) products and publications developed through, or 
     supported by, the Institute; and
       (B) other relevant and useful education-related research, 
     statistics, and evaluation materials and other information, 
     projects, and publications that are--
       (i) consistent with--

       (I) scientifically valid research; or
       (II) the priorities and mission of the Institute; and

       (ii) developed by the Department, other Federal agencies, 
     or entities (including entities supported under the 
     Educational Technical Assistance Act of 2002 and the 
     Educational Resources Information Center Clearinghouses 
     (established under section 941(f) of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994 (20 U.S.C. 6041(f)) (as such provision was in effect on 
     the day before the date of enactment of this Act))).

     SEC. 173. EVALUATIONS.

       (a) In General.--
       (1) Requirements.--In carrying out its missions, the 
     National Center for Education Evaluation and Regional 
     Assistance may--
       (A) conduct or support evaluations consistent with the 
     Center's mission as described in section 171(b);
       (B) evaluate programs under title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.);
       (C) to the extent practicable, examine evaluations 
     conducted or supported by others in order to determine the 
     quality and relevance of the evidence of effectiveness 
     generated by those evaluations, with the approval of the 
     Director;
       (D) coordinate the activities of the National Center for 
     Education Evaluation and Regional Assistance with other 
     evaluation activities in the Department;
       (E) review and, where feasible, supplement Federal 
     education program evaluations, particularly those by the 
     Department, to determine or enhance the quality and relevance 
     of the evidence generated by those evaluations;
       (F) establish evaluation methodology; and
       (G) assist the Director in the preparation of the biennial 
     report, as described in section 119.
       (2) Additional requirements.--Each evaluation conducted by 
     the National Center for Education Evaluation and Regional 
     Assistance pursuant to paragraph (1) shall--
       (A) adhere to the highest possible standards of quality for 
     conducting scientifically valid education evaluation; and
       (B) be subject to rigorous peer-review.
       (b) Administration of Evaluations Under Title I of the 
     Elementary and Secondary Education Act of 1965.--The 
     Evaluation and Regional Assistance Commissioner, consistent 
     with the mission of the National Center for Education 
     Evaluation and Regional Assistance under section 171(b), 
     shall administer all operations and contracts associated with 
     evaluations authorized by part E of title I of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6491 et seq.) 
     and administered by the Department as of the date of 
     enactment of this Act.

     SEC. 174. REGIONAL EDUCATIONAL LABORATORIES FOR RESEARCH, 
                   DEVELOPMENT, DISSEMINATION, AND TECHNICAL 
                   ASSISTANCE.

       (a) Regional Educational Laboratories.--The Director shall 
     enter into contracts with entities to establish a networked 
     system of 10 regional educational laboratories that serve the 
     needs of each region of the United States in accordance with 
     the provisions of this section. The amount of assistance 
     allocated to each laboratory by the Evaluation and Regional 
     Assistance Commissioner shall reflect the number of local 
     educational agencies and the number of school-age children 
     within the region served by such laboratory, as well as the 
     cost of providing services within the geographic area 
     encompassed by the region.
       (b) Regions.--The regions served by the regional 
     educational laboratories shall be the 10 geographic regions 
     served by the regional educational laboratories established 
     under section 941(h) of the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     such provision existed on the day before the date of 
     enactment of this Act).
       (c) Eligible Applicants.--The Director may enter into 
     contracts under this section with research organizations, 
     institutions, agencies, institutions of higher education, or 
     partnerships among such entities, or individuals, with the 
     demonstrated ability or capacity to carry out the activities 
     described in this section, including regional entities that 
     carried out activities under the Educational Research, 
     Development, Dissemination, and Improvement Act of 1994 (as 
     such Act existed on the day before the date of enactment of 
     this Act) and title XIII of the Elementary and Secondary 
     Education Act of 1965 (as such title existed on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001 (Public Law 107-110)).
       (d) Applications.--
       (1) Submission.--Each applicant desiring a contract under 
     this section shall submit an application at such time, in 
     such manner, and containing such information as the Director 
     may reasonably require.
       (2) Plan.--Each application submitted under paragraph (1) 
     shall contain a 5-year plan for carrying out the activities 
     described in this section in a manner that addresses the 
     priorities established under section 207 and addresses the 
     needs of all States (and to the extent practicable, of local 
     educational agencies) within the region to be served by the 
     regional educational laboratory, on an ongoing basis.
       (e) Entering into Contracts.--
       (1) In general.--In entering into contracts under this 
     section, the Director shall--
       (A) enter into contracts for a 5-year period; and
       (B) ensure that regional educational laboratories 
     established under this section have strong and effective 
     governance, organization, management, and administration, and 
     employ qualified staff.
       (2) Coordination.--In order to ensure coordination and 
     prevent unnecessary duplication of activities among the 
     regions, the Evaluation and Regional Assistance Commissioner 
     shall--
       (A) share information about the activities of each regional 
     educational laboratory awarded a contract under this section 
     with each other regional educational laboratory awarded a 
     contract under this section and with the Department of 
     Education, including the Director and the Board;
       (B) oversee a strategic plan for ensuring that each 
     regional educational laboratory awarded a contract under this 
     section increases collaboration and resource-sharing in such 
     activities;
       (C) ensure, where appropriate, that the activities of each 
     regional educational laboratory awarded a contract under this 
     section also serve national interests; and
       (D) ensure that each regional educational laboratory 
     awarded a contract under this section coordinates such 
     laboratory's activities with the activities of each other 
     regional technical assistance provider.
       (3) Outreach.--In conducting competitions for contracts 
     under this section, the Director shall--
       (A) actively encourage eligible entities to compete for 
     such awards by making information and technical assistance 
     relating to the competition widely available; and
       (B) seek input from the chief executive officers of States, 
     chief State school officers, educators, and parents regarding 
     the need for applied research, wide dissemination, training, 
     technical assistance, and development activities authorized 
     by this title in the regions to be served by the regional 
     educational laboratories and how those educational needs 
     could be addressed most effectively.
       (4) Objectives and indicators.--Before entering into a 
     contract under this section, the Director shall design 
     specific objectives and measurable indicators to be used to 
     assess the particular programs or initiatives, and ongoing 
     progress and performance, of the regional educational 
     laboratories, in order to ensure that the educational needs 
     of the region are being met and that the latest and best 
     research and proven practices are being carried out as part 
     of school improvement efforts.
       (5) Standards.--The Evaluation and Regional Assistance 
     Commissioner shall establish a system for technical and peer 
     review to ensure that applied research activities, research-
     based reports, and products of the regional educational 
     laboratories are consistent with the research standards 
     described in section 134 and the evaluation standards adhered 
     to pursuant to section 173(a)(2)(A).
       (f) Central Mission and Primary Function.--Each regional 
     educational laboratory awarded a contract under this section 
     shall support applied research, development, wide 
     dissemination, and technical assistance activities by--
       (1) providing training (which may include supporting 
     internships and fellowships and providing stipends) and 
     technical assistance to State educational agencies, local 
     educational agencies, school boards, schools funded by the 
     Bureau as appropriate, and State boards of education 
     regarding, at a minimum--
       (A) the administration and implementation of programs under 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.);
       (B) scientifically valid research in education on teaching 
     methods, assessment tools, and high quality, challenging 
     curriculum frameworks for use by teachers and administrators 
     in, at a minimum--
       (i) the core academic subjects of mathematics, science, and 
     reading;
       (ii) English language acquisition;
       (iii) education technology; and
       (iv) the replication and adaption of exemplary and 
     promising practices and new educational methods, including 
     professional development strategies and the use of 
     educational technology to improve teaching and learning; and
       (C) the facilitation of communication between educational 
     experts, school officials, and teachers, parents, and 
     librarians, to enable such individuals to assist schools to 
     develop a plan to meet the State education goals;
       (2) developing and widely disseminating, including through 
     Internet-based means, scientifically valid research, 
     information, reports, and publications that are usable for 
     improving academic achievement, closing achievement gaps, and 
     encouraging and sustaining school improvement, to--
       (A) schools, districts, institutions of higher education, 
     educators (including early childhood educators and 
     librarians), parents, policymakers, and other constituencies, 
     as appropriate, within the region in which the regional 
     educational laboratory is located; and

[[Page 20794]]

       (B) the National Center for Education Evaluation and 
     Regional Assistance;
       (3) developing a plan for identifying and serving the needs 
     of the region by conducting a continuing survey of the 
     educational needs, strengths, and weaknesses within the 
     region, including a process of open hearings to solicit the 
     views of schools, teachers, administrators, parents, local 
     educational agencies, librarians, and State educational 
     agencies within the region;
       (4) in the event such quality applied research does not 
     exist as determined by the regional educational laboratory or 
     the Department, carrying out applied research projects that 
     are designed to serve the particular educational needs (in 
     prekindergarten through grade 16) of the region in which the 
     regional educational laboratory is located, that reflect 
     findings from scientifically valid research, and that result 
     in user-friendly, replicable school-based classroom 
     applications geared toward promoting increased student 
     achievement, including using applied research to assist in 
     solving site-specific problems and assisting in development 
     activities (including high-quality and on-going professional 
     development and effective parental involvement strategies);
       (5) supporting and serving the educational development 
     activities and needs of the region by providing educational 
     applied research in usable forms to promote school-
     improvement, academic achievement, and the closing of 
     achievement gaps and contributing to the current base of 
     education knowledge by addressing enduring problems in 
     elementary and secondary education and access to 
     postsecondary education;
       (6) collaborating and coordinating services with other 
     technical assistance providers funded by the Department of 
     Education;
       (7) assisting in gathering information on school finance 
     systems to promote improved access to educational 
     opportunities and to better serve all public school students;
       (8) assisting in gathering information on alternative 
     administrative structures that are more conducive to 
     planning, implementing, and sustaining school reform and 
     improved academic achievement;
       (9) bringing teams of experts together to develop and 
     implement school improvement plans and strategies, especially 
     in low-performing or high poverty schools; and
       (10) developing innovative approaches to the application of 
     technology in education that are unlikely to originate from 
     within the private sector, but which could result in the 
     development of new forms of education software, education 
     content, and technology-enabled pedagogy.
       (g) Activities.--Each regional educational laboratory 
     awarded a contract under this section shall carry out the 
     following activities:
       (1) Collaborate with the National Education Centers in 
     order to--
       (A) maximize the use of research conducted through the 
     National Education Centers in the work of such laboratory;
       (B) keep the National Education Centers apprised of the 
     work of the regional educational laboratory in the field; and
       (C) inform the National Education Centers about additional 
     research needs identified in the field.
       (2) Consult with the State educational agencies and local 
     educational agencies in the region in developing the plan for 
     serving the region.
       (3) Develop strategies to utilize schools as critical 
     components in reforming education and revitalizing rural 
     communities in the United States.
       (4) Report and disseminate information on overcoming the 
     obstacles faced by educators and schools in high poverty, 
     urban, and rural areas.
       (5) Identify successful educational programs that have 
     either been developed by such laboratory in carrying out such 
     laboratory's functions or that have been developed or used by 
     others within the region served by the laboratory and make 
     such information available to the Secretary and the network 
     of regional educational laboratories so that such programs 
     may be considered for inclusion in the national education 
     dissemination system.
       (h) Governing Board and Allocation.--
       (1) In general.--In carrying out its responsibilities, each 
     regional educational laboratory awarded a contract under this 
     section, in keeping with the terms and conditions of such 
     laboratory's contract, shall--
       (A) establish a governing board that--
       (i) reflects a balanced representation of--

       (I) the States in the region;
       (II) the interests and concerns of regional constituencies; 
     and
       (III) technical expertise;

       (ii) includes the chief State school officer or such 
     officer's designee of each State represented in such board's 
     region;
       (iii) includes--

       (I) representatives nominated by chief executive officers 
     of States and State organizations of superintendents, 
     principals, institutions of higher education, teachers, 
     parents, businesses, and researchers; or
       (II) other representatives of the organizations described 
     in subclause (I), as required by State law in effect on the 
     day before the date of enactment of this Act;

       (iv) is the sole entity that--

       (I) guides and directs the laboratory in carrying out the 
     provisions of this subsection and satisfying the terms and 
     conditions of the contract award;
       (II) determines the regional agenda of the laboratory;
       (III) engages in an ongoing dialogue with the Evaluation 
     and Regional Assistance Commissioner concerning the 
     laboratory's goals, activities, and priorities; and
       (IV) determines at the start of the contract period, 
     subject to the requirements of this section and in 
     consultation with the Evaluation and Regional Assistance 
     Commissioner, the mission of the regional educational 
     laboratory for the duration of the contract period;

       (v) ensures that the regional educational laboratory 
     attains and maintains a high level of quality in the 
     laboratory's work and products;
       (vi) establishes standards to ensure that the regional 
     educational laboratory has strong and effective governance, 
     organization, management, and administration, and employs 
     qualified staff;
       (vii) directs the regional educational laboratory to carry 
     out the laboratory's duties in a manner that will make 
     progress toward achieving the State education goals and 
     reforming schools and educational systems; and
       (viii) conducts a continuing survey of the educational 
     needs, strengths, and weaknesses within the region, including 
     a process of open hearings to solicit the views of schools 
     and teachers; and
       (B) allocate the regional educational laboratory's 
     resources to and within each State in a manner which reflects 
     the need for assistance, taking into account such factors as 
     the proportion of economically disadvantaged students, the 
     increased cost burden of service delivery in areas of sparse 
     populations, and any special initiatives being undertaken by 
     State, intermediate, local educational agencies, or Bureau-
     funded schools, as appropriate, which may require special 
     assistance from the laboratory.
       (2) Special rule.--If a regional educational laboratory 
     needs flexibility in order to meet the requirements of 
     paragraph (1)(A)(i), the regional educational laboratory may 
     select not more than 10 percent of the governing board from 
     individuals outside those representatives nominated in 
     accordance with paragraph (1)(A)(iii).
       (i) Duties of Governing Board.--In order to improve the 
     efficiency and effectiveness of the regional educational 
     laboratories, the governing boards of the regional 
     educational laboratories shall establish and maintain a 
     network to--
       (1) share information about the activities each laboratory 
     is carrying out;
       (2) plan joint activities that would meet the needs of 
     multiple regions;
       (3) create a strategic plan for the development of 
     activities undertaken by the laboratories to reduce 
     redundancy and increase collaboration and resource-sharing in 
     such activities; and
       (4) otherwise devise means by which the work of the 
     individual laboratories could serve national, as well as 
     regional, needs.
       (j) Evaluations.--The Evaluation and Regional Assistance 
     Commissioner shall provide for independent evaluations of 
     each of the regional educational laboratories in carrying out 
     the duties described in this section in the third year that 
     such laboratory receives assistance under this section in 
     accordance with the standards developed by the Evaluation and 
     Regional Assistance Commissioner and approved by the Board 
     and shall transmit the results of such evaluations to the 
     relevant committees of Congress, the Board, and the 
     appropriate regional educational laboratory governing board.
       (k) Rule of Construction.--No regional educational 
     laboratory receiving assistance under this section shall, by 
     reason of the receipt of that assistance, be ineligible to 
     receive any other assistance from the Department of Education 
     as authorized by law or be prohibited from engaging in 
     activities involving international projects or endeavors.
       (l) Advance Payment System.--Each regional educational 
     laboratory awarded a contract under this section shall 
     participate in the advance payment system at the Department 
     of Education.
       (m) Additional Projects.--In addition to activities 
     authorized under this section, the Director is authorized to 
     enter into contracts or agreements with a regional 
     educational laboratory for the purpose of carrying out 
     additional projects to enable such regional educational 
     laboratory to assist in efforts to achieve State education 
     goals and for other purposes.
       (n) Annual Report and Plan.--Not later than July 1 of each 
     year, each regional educational laboratory awarded a contract 
     under this section shall submit to the Evaluation and 
     Regional Assistance Commissioner--
       (1) a plan covering the succeeding fiscal year, in which 
     such laboratory's mission, activities, and scope of work are 
     described, including a general description of the plans such 
     laboratory expects to submit in the remaining years of such 
     laboratory's contract; and
       (2) a report of how well such laboratory is meeting the 
     needs of the region, including a summary of activities during 
     the preceding year, a list of entities served, a list of 
     products, and any other information that the regional 
     educational laboratory may consider relevant or the 
     Evaluation and Regional Assistance Commissioner may require.
       (o) Construction.--Nothing in this section shall be 
     construed to require any modifications in a regional 
     educational laboratory contract in effect on the day before 
     the date of enactment of this Act.

                       PART E--GENERAL PROVISIONS

     SEC. 181. INTERAGENCY DATA SOURCES AND FORMATS.

       The Secretary, in consultation with the Director, shall 
     ensure that the Department and the Institute use common 
     sources of data in standardized formats.

[[Page 20795]]

     SEC. 182. PROHIBITIONS.

       (a) National Database.--Nothing in this title may be 
     construed to authorize the establishment of a nationwide 
     database of individually identifiable information on 
     individuals involved in studies or other collections of data 
     under this title.
       (b) Federal Government and Use of Federal Funds.--Nothing 
     in this title may be construed to authorize an officer or 
     employee of the Federal Government to mandate, direct, or 
     control the curriculum, program of instruction, or allocation 
     of State or local resources of a State, local educational 
     agency, or school, or to mandate a State, or any subdivision 
     thereof, to spend any funds or incur any costs not provided 
     for under this title.
       (c) Endorsement of Curriculum.--Notwithstanding any other 
     provision of Federal law, no funds provided under this title 
     to the Institute, including any office, board, committee, or 
     center of the Institute, may be used by the Institute to 
     endorse, approve, or sanction any curriculum designed to be 
     used in an elementary school or secondary school.
       (d) Federally Sponsored Testing.--
       (1) In general.--Subject to paragraph (2), no funds 
     provided under this title to the Secretary or to the 
     recipient of any award may be used to develop, pilot test, 
     field test, implement, administer, or distribute any 
     federally sponsored national test in reading, mathematics, or 
     any other subject, unless specifically and explicitly 
     authorized by law.
       (2) Exceptions.--Subsection (a) shall not apply to 
     international comparative assessments developed under the 
     authority of section 153(a)(6) of this title or section 
     404(a)(6) of the National Education Statistics Act of 1994 
     (20 U.S.C. 9003(a)(6)) (as such section was in effect on the 
     day before the date of enactment of this Act) and 
     administered to only a representative sample of pupils in the 
     United States and in foreign nations.

     SEC. 183. CONFIDENTIALITY.

       (a) In General.--All collection, maintenance, use, and wide 
     dissemination of data by the Institute, including each 
     office, board, committee, and center of the Institute, shall 
     conform with the requirements of section 552a of title 5, 
     United States Code, the confidentiality standards of 
     subsection (c) of this section, and sections 444 and 445 of 
     the General Education Provisions Act (20 U.S.C. 1232g, 
     1232h).
       (b) Student Information.--The Director shall ensure that 
     all individually identifiable information about students, 
     their academic achievements, their families, and information 
     with respect to individual schools, shall remain confidential 
     in accordance with section 552a of title 5, United States 
     Code, the confidentiality standards of subsection (c) of this 
     section, and sections 444 and 445 of the General Education 
     Provisions Act (20 U.S.C. 1232g, 1232h).

     SEC. 184. AVAILABILITY OF DATA.

       Subject to section 183, data collected by the Institute, 
     including any office, board, committee, or center of the 
     Institute, in carrying out the priorities and mission of the 
     Institute, shall be made available to the public, including 
     through use of the Internet.

     SEC. 185. PERFORMANCE MANAGEMENT.

       The Director shall ensure that all activities conducted or 
     supported by the Institute or a National Education Center 
     make customer service a priority. The Director shall ensure a 
     high level of customer satisfaction through the following 
     methods:
       (1) Establishing and improving feedback mechanisms in order 
     to anticipate customer needs.
       (2) Disseminating information in a timely fashion and in 
     formats that are easily accessible and usable by researchers, 
     practitioners, and the general public.
       (3) Utilizing the most modern technology and other methods 
     available, including arrangements to use data collected 
     electronically by States and local educational agencies, to 
     ensure the efficient collection and timely distribution of 
     information, including data and reports.
       (4) Establishing and measuring performance against a set of 
     indicators for the quality of data collected, analyzed, and 
     reported.
       (5) Continuously improving management strategies and 
     practices.
       (6) Making information available to the public in an 
     expeditious fashion.

     SEC. 186. AUTHORITY TO PUBLISH.

       (a) Publication.--The Director may prepare and publish 
     (including through oral presentation) such research, 
     statistics (consistent with part C), and evaluation 
     information and reports from any office, board, committee, 
     and center of the Institute, as needed to carry out the 
     priorities and mission of the Institute without the approval 
     of the Secretary or any other office of the Department.
       (b) Advance Copies.--The Director shall provide the 
     Secretary and other relevant offices with an advance copy of 
     any information to be published under this section before 
     publication.
       (c) Peer Review.--All research, statistics, and evaluation 
     reports conducted by, or supported through, the Institute 
     shall be subjected to rigorous peer review before being 
     published or otherwise made available to the public.
       (d) Items Not Covered.--Nothing in subsections (a), (b), or 
     (c) shall be construed to apply to--
       (1) information on current or proposed budgets, 
     appropriations, or legislation;
       (2) information prohibited from disclosure by law or the 
     Constitution, classified national security information, or 
     information described in section 552(b) of title 5, United 
     States Code; and
       (3) review by officers of the United States in order to 
     prevent the unauthorized disclosure of information described 
     in paragraph (1) or (2).

     SEC. 187. VACANCIES.

       Any member appointed to fill a vacancy on the Board 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A vacancy in an office, 
     board, committee, or center of the Institute shall be filled 
     in the manner in which the original appointment was made. 
     This section does not apply to employees appointed under 
     section 188.

     SEC. 188. SCIENTIFIC OR TECHNICAL EMPLOYEES.

       (a) In General.--The Director may appoint, for terms not to 
     exceed 6 years (without regard to the provisions of title 5, 
     United States Code, governing appointment in the competitive 
     service) and may compensate (without regard to the provisions 
     of chapter 51 and subchapter III of chapter 53 of such title 
     relating to classification and General Schedule pay rates) 
     such scientific or technical employees to carry out the 
     functions of the Institute or the office, board, committee, 
     or center, respectively, if--
       (1) at least 30 days prior to the appointment of any such 
     employee, public notice is given of the availability of such 
     position and an opportunity is provided for qualified 
     individuals to apply and compete for such position;
       (2) the rate of basic pay for such employees does not 
     exceed the maximum rate of basic pay payable for positions at 
     GS-15, as determined in accordance with section 5376 of title 
     5, United States Code, except that not more than 7 
     individuals appointed under this section may be paid at a 
     rate that does not exceed the rate of basic pay for level III 
     of the Executive Schedule;
       (3) the appointment of such employee is necessary (as 
     determined by the Director on the basis of clear and 
     convincing evidence) to provide the Institute or the office, 
     board, committee, or center with scientific or technical 
     expertise which could not otherwise be obtained by the 
     Institute or the office, board, committee, or center through 
     the competitive service; and
       (4) the total number of such employees does not exceed 40 
     individuals or \1/5\ of the number of full-time, regular 
     scientific or professional employees of the Institute, 
     whichever is greater.
       (b) Duties of Employees.--All employees described in 
     subsection (a) shall work on activities of the Institute or 
     the office, board, committee, or center, and shall not be 
     reassigned to other duties outside the Institute or the 
     office, board, committee, or center during their term.

     SEC. 189. FELLOWSHIPS.

       In order to strengthen the national capacity to carry out 
     high-quality research, evaluation, and statistics related to 
     education, the Director shall establish and maintain 
     research, evaluation, and statistics fellowships in 
     institutions of higher education (which may include the 
     establishment of such fellowships in historically Black 
     colleges and universities and other institutions of higher 
     education with large numbers of minority students) that 
     support graduate and postdoctoral study onsite at the 
     Institute or at the institution of higher education. In 
     establishing the fellowships, the Director shall ensure that 
     women and minorities are actively recruited for 
     participation.

     SEC. 190. VOLUNTARY SERVICE.

       The Director may accept voluntary and uncompensated 
     services to carry out and support activities that are 
     consistent with the priorities and mission of the Institute.

     SEC. 191. RULEMAKING.

       Notwithstanding section 437(d) of the General Education 
     Provisions Act (20 U.S.C. 1232(d)), the exemption for public 
     property, loans, grants, and benefits in section 553(a)(2) of 
     title 5, United States Code, shall apply to the Institute.

     SEC. 192. COPYRIGHT.

       Nothing in this Act shall be construed to affect the 
     rights, remedies, limitations, or defense under title 17, 
     United States Code.

     SEC. 193. REMOVAL.

       (a) Presidential.--The Director, each member of the Board, 
     and the Commissioner for Education Statistics may be removed 
     by the President prior to the expiration of the term of each 
     such appointee.
       (b) Director.--Each Commissioner appointed by the Director 
     pursuant to section 117 may be removed by the Director prior 
     to the expiration of the term of each such Commissioner.

     SEC. 194. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     administer and carry out this title (except section 174) 
     $400,000,000 for fiscal year 2003 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years, of 
     which--
       (1) not less than the amount provided to the National 
     Center for Education Statistics (as such Center was in 
     existence on the day before the date of enactment of this 
     Act) for fiscal year 2002 shall be provided to the National 
     Center for Education Statistics, as authorized under part C; 
     and
       (2) not more than the lesser of 2 percent of such funds or 
     $1,000,000 shall be made available to carry out section 116 
     (relating to the National Board for Education Sciences).
       (b) Regional Educational Laboratories.--There are 
     authorized to be appropriated to carry out section 174 
     $100,000,000 for fiscal year 2003 and such sums as may be 
     necessary for each of the 5 succeeding fiscal years. Of the 
     amounts appropriated under the preceding sentence for a 
     fiscal year, the Director shall obligate not less than 25 
     percent to carry out such purpose with respect to rural areas 
     (including schools funded by the Bureau which are located in 
     rural areas).

[[Page 20796]]

       (c) Availability.--Amounts made available under this 
     section shall remain available until expended.

               TITLE II--EDUCATIONAL TECHNICAL ASSISTANCE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Educational Technical 
     Assistance Act of 2002''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) In general.--The terms ``local educational agency'' and 
     ``State educational agency'' have the meanings given those 
     terms in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.

     SEC. 203. COMPREHENSIVE CENTERS.

       (a) Authorization.--
       (1) In general.--Subject to paragraph (2), beginning in 
     fiscal year 2004, the Secretary is authorized to award not 
     less than 20 grants to local entities, or consortia of such 
     entities, with demonstrated expertise in providing technical 
     assistance and professional development in reading, 
     mathematics, science, and technology, especially to low-
     performing schools and districts, to establish comprehensive 
     centers.
       (2) Regions.--In awarding grants under paragraph (1), the 
     Secretary--
       (A) shall ensure that not less than 1 comprehensive center 
     is established in each of the 10 geographic regions served by 
     the regional educational laboratories established under 
     section 941(h) of the Educational Research, Development, 
     Dissemination, and Improvement Act of 1994 (as such provision 
     existed on the day before the date of enactment of this Act); 
     and
       (B) after meeting the requirements of subparagraph (A), 
     shall consider, in awarding the remainder of the grants, the 
     school-age population, proportion of economically 
     disadvantaged students, the increased cost burdens of service 
     delivery in areas of sparse population, and the number of 
     schools identified for school improvement (as described in 
     section 1116(b) of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6316(b)) in the population served by the 
     local entity or consortium of such entities.
       (b) Eligible applicants.--
       (1) In general.--Grants under this section may be made with 
     research organizations, institutions, agencies, institutions 
     of higher education, or partnerships among such entities, or 
     individuals, with the demonstrated ability or capacity to 
     carry out the activities described in subsection (f), 
     including regional entities that carried out activities under 
     the Educational Research, Development, Dissemination, and 
     Improvement Act of 1994 (as such Act existed on the day 
     before the date of enactment of this Act) and title XIII of 
     the Elementary and Secondary Education Act of 1965 (as such 
     title existed on the day before the date of enactment of the 
     No Child Left Behind Act of 2001 (Public Law 107-110)).
       (2) Outreach.--In conducting competitions for grants under 
     this section, the Secretary shall actively encourage 
     potential applicants to compete for such awards by making 
     widely available information and technical assistance 
     relating to the competition.
       (3) Objectives and indicators.--Before awarding a grant 
     under this section, the Secretary shall design specific 
     objectives and measurable indicators, using the results of 
     the assessment conducted under section 206, to be used to 
     assess the particular programs or initiatives, and ongoing 
     progress and performance, of the regional entities, in order 
     to ensure that the educational needs of the region are being 
     met and that the latest and best research and proven 
     practices are being carried out as part of school improvement 
     efforts.
       (c) Application.--
       (1) Submission.--Each local entity, or consortium of such 
     entities, seeking a grant under this section shall submit an 
     application at such time, in such manner, and containing such 
     additional information as the Secretary may reasonably 
     require.
       (2) Plan.--Each application submitted under paragraph (1) 
     shall contain a 5-year plan for carrying out the activities 
     described in this section in a manner that addresses the 
     priorities established under section 207 and addresses the 
     needs of all States (and to the extent practicable, of local 
     educational agencies) within the region to be served by the 
     comprehensive center, on an ongoing basis.
       (d) Allocation.--Each comprehensive center established 
     under this section shall allocate such center's resources to 
     and within each State in a manner which reflects the need for 
     assistance, taking into account such factors as the 
     proportion of economically disadvantaged students, the 
     increased cost burden of service delivery in areas of sparse 
     populations, and any special initiatives being undertaken by 
     State, intermediate, local educational agencies, or Bureau-
     funded schools, as appropriate, which may require special 
     assistance from the center.
       (e) Scope of Work.--Each comprehensive center established 
     under this section shall work with State educational 
     agencies, local educational agencies, regional educational 
     agencies, and schools in the region where such center is 
     located on school improvement activities that take into 
     account factors such as the proportion of economically 
     disadvantaged students in the region, and give priority to--
       (1) schools in the region with high percentages or numbers 
     of students from low-income families, as determined under 
     section 1113(a)(5) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6313(a)(5)), including such schools in 
     rural and urban areas, and schools receiving assistance under 
     title I of that Act (20 U.S.C. 6301 et seq.);
       (2) local educational agencies in the region in which high 
     percentages or numbers of school-age children are from low-
     income families, as determined under section 1124(c)(1)(A) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6333(c)(1)(A)), including such local educational agencies in 
     rural and urban areas; and
       (3) schools in the region that have been identified for 
     school improvement under section 1116(b) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6316(b)).
       (f) Activities.--
       (1) In general.--A comprehensive center established under 
     this section shall support dissemination and technical 
     assistance activities by--
       (A) providing training, professional development, and 
     technical assistance regarding, at a minimum--
       (i) the administration and implementation of programs under 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.);
       (ii) the use of scientifically valid teaching methods and 
     assessment tools for use by teachers and administrators in, 
     at a minimum--

       (I) the core academic subjects of mathematics, science, and 
     reading or language arts;
       (II) English language acquisition; and
       (III) education technology; and

       (iii) the facilitation of communication between education 
     experts, school officials, teachers, parents, and librarians, 
     as appropriate; and
       (B) disseminating and providing information, reports, and 
     publications that are usable for improving academic 
     achievement, closing achievement gaps, and encouraging and 
     sustaining school improvement (as described in section 
     1116(b) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6316(b))), to schools, educators, parents, and 
     policymakers within the region in which the center is 
     located; and
       (C) developing teacher and school leader inservice and 
     preservice training models that illustrate best practices in 
     the use of technology in different content areas.
       (2) Coordination and collaboration.--Each comprehensive 
     center established under this section shall coordinate its 
     activities, collaborate, and regularly exchange information 
     with the regional educational laboratory in the region in 
     which the center is located, the National Center for 
     Education Evaluation and Regional Assistance, the Office of 
     the Secretary, the State service agency, and other technical 
     assistance providers in the region.
       (g) Comprehensive Center Advisory Board.--
       (1) Establishment.--Each comprehensive center established 
     under this section shall have an advisory board that shall 
     support the priorities of such center.
       (2) Duties.--Each advisory board established under 
     paragraph (1) shall advise the comprehensive center--
       (A) concerning the activities described in subsection (d);
       (B) on strategies for monitoring and addressing the 
     educational needs of the region, on an ongoing basis;
       (C) on maintaining a high standard of quality in the 
     performance of the center's activities; and
       (D) on carrying out the center's duties in a manner that 
     promotes progress toward improving student academic 
     achievement.
       (3) Composition.--
       (A) In general.--Each advisory board shall be composed of--
       (i) the chief State school officers, or such officers' 
     designees or other State officials, in each State served by 
     the comprehensive center who have primary responsibility 
     under State law for elementary and secondary education in the 
     State; and
       (ii) not more than 15 other members who are representative 
     of the educational interests in the region served by the 
     comprehensive center and are selected jointly by the 
     officials specified in clause (i) and the chief executive 
     officer of each State served by the comprehensive center, 
     including the following:

       (I) Representatives of local educational agencies and 
     regional educational agencies, including representatives of 
     local educational agencies serving urban and rural areas.
       (II) Representatives of institutions of higher education.
       (III) Parents.
       (IV) Practicing educators, including classroom teachers, 
     principals, and administrators.
       (V) Representatives of business.
       (VI) Policymakers, expert practitioners, and researchers 
     with knowledge of, and experience using, the results of 
     research, evaluation, and statistics.

       (B) Special rule.--In the case of a State in which the 
     chief executive officer has the primary responsibility under 
     State law for elementary and secondary education in the 
     State, the chief executive officer shall consult, to the 
     extent permitted by State law, with the State educational 
     agency in selecting additional members of the board under 
     subparagraph (A)(i).
       (h) Report to Secretary.--Each comprehensive center 
     established under this section shall submit to the Secretary 
     an annual report, at such time, in such manner, and 
     containing such information as the Secretary may require, 
     which shall include the following:
       (1) A summary of the comprehensive center's activities 
     during the preceding year

[[Page 20797]]

       (2) A listing of the States, local educational agencies, 
     and schools the comprehensive center assisted during the 
     preceding year.

     SEC. 204. EVALUATIONS.

       The Secretary shall provide for ongoing independent 
     evaluations by the National Center for Education Evaluation 
     and Regional Assistance of the comprehensive centers 
     receiving assistance under this title, the results of which 
     shall be transmitted to the appropriate congressional 
     committees and the Director of the Institute of Education 
     Sciences. Such evaluations shall include an analysis of the 
     services provided under this title, the extent to which each 
     of the comprehensive centers meets the objectives of its 
     respective plan, and whether such services meet the 
     educational needs of State educational agencies, local 
     educational agencies, and schools in the region.

     SEC. 205. EXISTING TECHNICAL ASSISTANCE PROVIDERS.

       The Secretary shall continue awards for the support of the 
     Eisenhower Regional Mathematics and Science Education 
     Consortia established under part M of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994 (as such part existed on the day before the date of 
     enactment of this Act), the Regional Technology in Education 
     Consortia under section 3141 of the Elementary and Secondary 
     Education Act of 1965 (as such section existed on the day 
     before the date of enactment of the No Child Left Behind Act 
     of 2001 (Public Law 107-110)), and the Comprehensive Regional 
     Assistance Centers established under part K of the 
     Educational Research, Development, Dissemination, and 
     Improvement Act of 1994 (as such part existed on the day 
     before the date of enactment of this Act), in accordance with 
     the terms of such awards, until the comprehensive centers 
     authorized under section 203 are established.

     SEC. 206. REGIONAL ADVISORY COMMITTEES.

       (a) Establishment.--Beginning in 2004, the Secretary shall 
     establish a regional advisory committee for each region 
     described in section 174(b) of the Education Sciences Reform 
     Act of 2002.
       (b) Membership.--
       (1) Composition.--The membership of each regional advisory 
     committee shall--
       (A) not exceed 25 members;
       (B) contain a balanced representation of States in the 
     region; and
       (C) include not more than one representative of each State 
     educational agency geographically located in the region.
       (2) Eligibility.--The membership of each regional advisory 
     committee may include the following:
       (A) Representatives of local educational agencies, 
     including rural and urban local educational agencies.
       (B) Representatives of institutions of higher education, 
     including individuals representing university-based education 
     research and university-based research on subjects other than 
     education.
       (C) Parents.
       (D) Practicing educators, including classroom teachers, 
     principals, administrators, school board members, and other 
     local school officials.
       (E) Representatives of business.
       (F) Researchers.
       (3) Recommendations.--In choosing individuals for 
     membership on a regional advisory committee, the Secretary 
     shall consult with, and solicit recommendations from, the 
     chief executive officers of States, chief State school 
     officers, and education stakeholders within the applicable 
     region.
       (4) Special rule.--
       (A) Total number.--The total number of members on each 
     committee who are selected under subparagraphs (A), (C), and 
     (D) of paragraph (2), collectively, shall exceed the total 
     number of members who are selected under paragraph (1)(C) and 
     subparagraphs (B), (E), and (F) of paragraph (2), 
     collectively.
       (B) Dissolution.--Each regional advisory committee shall be 
     dissolved by the Secretary after submission of such 
     committee's report described in subsection (c)(2) to the 
     Secretary, but each such committee may be reconvened at the 
     discretion of the Secretary.
       (c) Duties.--Each regional advisory committee shall advise 
     the Secretary on the following:
       (1) An educational needs assessment of its region (using 
     the results of the assessment conducted under subsection 
     (d)), in order to assist in making decisions regarding the 
     regional educational priorities.
       (2) Not later than 6 months after the committee is first 
     convened, a report based on the assessment conducted under 
     subsection (d).
       (d) Regional Assessments.--Each regional advisory committee 
     shall--
       (1) assess the educational needs within the region to be 
     served;
       (2) in conducting the assessment under paragraph (1), seek 
     input from chief executive officers of States, chief State 
     school officers, educators, and parents (including through a 
     process of open hearings to solicit the views and needs of 
     schools (including public charter schools), teachers, 
     administrators, members of the regional educational 
     laboratory governing board, parents, local educational 
     agencies, librarians, businesses, State educational agencies, 
     and other customers (such as adult education programs) within 
     the region) regarding the need for the activities described 
     in section 174 of the Education Sciences Reform Act of 2002 
     and section 203 of this title and how those needs would be 
     most effectively addressed; and
       (3) submit the assessment to the Secretary and to the 
     Director of the Academy of Education Sciences, at such time, 
     in such manner, and containing such information as the 
     Secretary may require.

     SEC. 207. PRIORITIES.

       The Secretary shall establish priorities for the regional 
     educational laboratories (established under section 174 of 
     the Education Sciences Reform Act of 2002) and comprehensive 
     centers (established under section 203 of this title) to 
     address, taking onto account the regional assessments 
     conducted under section 206 and other relevant regional 
     surveys of educational needs, to the extent the Secretary 
     deems appropriate.

     SEC. 208. GRANT PROGRAM FOR STATEWIDE, LONGITUDINAL DATA 
                   SYSTEMS.

       (a) Grants Authorized.--The Secretary is authorized to 
     award grants, on a competitive basis, to State educational 
     agencies to enable such agencies to design, develop, and 
     implement statewide, longitudinal data systems to efficiently 
     and accurately manage, analyze, disaggregate, and use 
     individual student data, consistent with the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.).
       (b) Applications.--Each State educational agency desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require.
       (c) Awarding of Grants.--In awarding grants under this 
     section, the Secretary shall use a peer review process that--
       (1) ensures technical quality (including validity and 
     reliability), promotes linkages across States, and protects 
     student privacy consistent with section 183;
       (2) promotes the generation and accurate and timely use of 
     data that is needed--
       (A) for States and local educational agencies to comply 
     with the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6301 et seq.) and other reporting requirements and 
     close achievement gaps; and
       (B) to facilitate research to improve student academic 
     achievement and close achievement gaps; and
       (3) gives priority to applications that meet the voluntary 
     standards and guidelines described in section 153(a)(5).
       (d) Supplement Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other State or local funds used for developing State data 
     systems.
       (e) Report.--Not later than 1 year after the date of 
     enactment of the Educational Technical Assistance Act of 
     2002, and again 3 years after such date of enactment, the 
     Secretary, in consultation with the National Academies 
     Committee on National Statistics, shall make publicly 
     available a report on the implementation and effectiveness of 
     Federal, State, and local efforts related to the goals of 
     this section, including--
       (1) identifying and analyzing State practices regarding the 
     development and use of statewide, longitudinal data systems;
       (2) evaluating the ability of such systems to manage 
     individual student data consistent with the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
     promote linkages across States, and protect student privacy 
     consistent with section 183; and
       (3) identifying best practices and areas for improvement.

     SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $80,000,000 for fiscal year 2003 and such sums as may 
     be necessary for each of the 5 succeeding fiscal years.

         TITLE III--NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS

     SEC. 301. SHORT TITLE.

       This title may be referred to as the ``National Assessment 
     of Educational Progress Authorization Act''.

     SEC. 302. DEFINITIONS.

       In this title:
       (1) The term ``Director'' means the Director of the 
     Institute of Education Sciences.
       (2) The term ``State'' means each of the 50 States, the 
     District of Columbia, and the Commonwealth of Puerto Rico.

     SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated--
       (1) for fiscal year 2003--
       (A) $4,600,000 to carry out section 302, as amended by 
     section 401 of this Act (relating to the National Assessment 
     Governing Board); and
       (B) $107,500,000 to carry out section 303, as amended by 
     section 401 of this Act (relating to the National Assessment 
     of Educational Progress); and
       (2) such sums as may be necessary for each of the 5 
     succeeding fiscal years to carry out sections 302 and 303, as 
     amended by section 401 of this Act.
       (b) Availability.--Amounts made available under this 
     section shall remain available until expended.

                    TITLE IV--AMENDATORY PROVISIONS

     SEC. 401. REDESIGNATIONS.

       (a) Confidentiality.--Section 408 of the National Education 
     Statistics Act of 1994 (20 U.S.C. 9007) is amended--
       (1) by striking ``center'', ``Center'', and 
     ``Commissioner'' each place any such term appears and 
     inserting ``Director'';
       (2) in subsection (a)(2)(A), by striking ``statistical 
     purpose'' and inserting ``research, statistics, or evaluation 
     purpose under this title'';

[[Page 20798]]

       (3) by striking subsection (b)(1) and inserting the 
     following:
       ``(1) In general.--
       ``(A) Disclosure.--No Federal department, bureau, agency, 
     officer, or employee and no recipient of a Federal grant, 
     contract, or cooperative agreement may, for any reason, 
     require the Director, any Commissioner of a National 
     Education Center, or any other employee of the Institute to 
     disclose individually identifiable information that has been 
     collected or retained under this title.
       ``(B) Immunity.--Individually identifiable information 
     collected or retained under this title shall be immune from 
     legal process and shall not, without the consent of the 
     individual concerned, be admitted as evidence or used for any 
     purpose in any action, suit, or other judicial or 
     administrative proceeding.
       ``(C) Application.--This paragraph does not apply to 
     requests for individually identifiable information submitted 
     by or on behalf of the individual identified in the 
     information.'';
       (4) in paragraphs (2) and (6) of subsection (b), by 
     striking ``subsection (a)(2)'' each place such term appears 
     and inserting ``subsection (c)(2)'';
       (5) in paragraphs (3) and (7) of subsection (b), by 
     striking ``Center's'' each place such term appears and 
     inserting ``Director's''; and
       (6) by striking the section heading and transferring all 
     the subsections (including subsections (a) through (c)) and 
     redesignating such subsections as subsections (c) through 
     (e), respectively, at the end of section 183 of this Act.
       (b) Conforming Amendment.--Sections 302 and 303 of this Act 
     are redesignated as sections 304 and 305, respectively.
       (c) National Assessment Governing Board.--Section 412 of 
     the National Education Statistics Act of 1994 (20 U.S.C. 
     9011) is amended--
       (1) in subsection (a)--
       (A) by striking ``referred to as the `Board''' and 
     inserting ``referred to as the `Assessment Board'''; and
       (B) by inserting ``(carried out under section 303)'' after 
     ``for the National Assessment'';
       (2) by striking ``Board'' each place such term appears 
     (other than in subsection (a)) and inserting ``Assessment 
     Board'';
       (3) by striking ``Commissioner'' each place such term 
     appears and inserting ``Commissioner for Education 
     Statistics'';
       (4) in subsection (b)(2)--
       (A) by striking ``Assistant secretary for educational 
     research'' in the heading and inserting ``Director of the 
     institute of education sciences''; and
       (B) by striking ``Assistant Secretary for Educational 
     Research and Improvement'' and inserting ``Director of the 
     Institute of Education Sciences'';
       (5) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``section 411(b)'' and 
     inserting ``section 303(b)'';
       (ii) in subparagraph (B), by striking ``section 411(e)'' 
     and inserting ``section 303(e)'';
       (iii) in subparagraph (E), by striking ``, including the 
     Advisory Council established under section 407'';
       (iv) in subparagraphs (F) and (I), by striking ``section 
     411'' each place such term appears and inserting ``section 
     303'';
       (v) in subparagraph (H), by striking ``and'' after the 
     semicolon;
       (vi) in subparagraph (I), by striking the period at the end 
     and inserting ``; and''; and
       (vii) by inserting at the end the following:
       ``(J) plan and execute the initial public release of 
     National Assessment of Educational Progress reports.
     The National Assessment of Educational Progress data shall 
     not be released prior to the release of the reports described 
     in subparagraph (J).'';
       (B) in paragraph (5), by striking ``and the Advisory 
     Council on Education Statistics''; and
       (C) in paragraph (6), by striking ``section 411(e)'' and 
     inserting ``section 303(e)''; and
       (6) by transferring and redesignating the section as 
     section 302 (following section 301) of title III of this Act.
       (d) National Assessment of Educational Progress.--Section 
     411 of the National Education Statistics Act of 1994 (20 
     U.S.C. 9010) is amended--
       (1) by striking ``Commissioner'' each place such term 
     appears and inserting ``Commissioner for Education 
     Statistics'';
       (2) by striking ``National Assessment Governing Board'' and 
     ``National Board'' each place either such term appears and 
     inserting ``Assessment Board'';
       (3) in subsection (a)--
       (A) by striking ``section 412'' and inserting ``section 
     302''; and
       (B) by striking ``and with the technical assistance of the 
     Advisory Council established under section 407,'';
       (4) in subsection (b)--
       (A) in paragraph (1), by inserting ``of'' after ``academic 
     achievement and reporting'';
       (B) in paragraph (3)(A)--
       (i) in clause (i), by striking ``paragraphs (1)(B) and 
     (1)(E)'' and inserting ``paragraphs (2)(B) and (2)(E)'';
       (ii) in clause (ii), by striking ``paragraph (1)(C)'' and 
     inserting ``paragraph (2)(C)''; and
       (iii) in clause (iii), by striking ``paragraph (1)(D)'' and 
     inserting ``paragraph (2)(D)''; and
       (C) in paragraph (5), by striking ``(c)(2)'' and inserting 
     ``(c)(3)'';
       (5) in subsection (c)(2)(D), by striking ``subparagraph 
     (B)'' and inserting ``subparagraph (C)'';
       (6) in subsection (e)(4), by striking ``subparagraph 
     (2)(C)'' and inserting ``paragraph (2)(C) of such 
     subsection'';
       (7) in subsection (f)(1)(B)(iv), by striking ``section 
     412(e)(4)'' and inserting ``section 302(e)(4)''; and
       (8) by transferring and redesignating the section as 
     section 303 (following section 302) of title III of this Act.
       (e) Table of Contents Amendment.--The items relating to 
     title III in the table of contents of this Act, as amended by 
     section 401 of this Act, are amended to read as follows:

        ``TITLE III--NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS

``Sec. 301. Short title.
``Sec. 302. National Assessment Governing Board.
``Sec. 303. National Assessment of Educational Progress.
``Sec. 304. Definitions.
``Sec. 305. Authorization of appropriations.''.

     SEC. 402. AMENDMENTS TO DEPARTMENT OF EDUCATION ORGANIZATION 
                   ACT.

       The Department of Education Organization Act (20 U.S.C. 
     3401 et seq.) is amended--
       (1) by striking section 202(b)(4) and inserting the 
     following:
       ``(4) There shall be in the Department a Director of the 
     Institute of Education Sciences who shall be appointed in 
     accordance with section 114(a) of the Education Sciences 
     Reform Act of 2002 and perform the duties described in that 
     Act.'';
       (2) by striking section 208 and inserting the following:


                   ``institute of education sciences

       ``Sec. 208. There shall be in the Department of Education 
     the Institute of Education Sciences, which shall be 
     administered in accordance with the Education Sciences Reform 
     Act of 2002 by the Director appointed under section 114(a) of 
     that Act.''; and
       (3) by striking the item relating to section 208 in the 
     table of contents in section 1 and inserting the following:

``Sec. 208. Institute of Education Sciences.''.

     SEC. 403. REPEALS.

       The following provisions of law are repealed:
       (1) The National Education Statistics Act of 1994 (20 
     U.S.C. 9001 et seq.).
       (2) Parts A through E and K through N of the Educational 
     Research, Development, Dissemination, and Improvement Act of 
     1994 (title IX of the Goals 2000: Educate America Act) (20 
     U.S.C. 6001 et seq.).
       (3) Section 401(b)(2) of the Department of Education 
     Organization Act (20 U.S.C. 3461(b)(2)).

     SEC. 404. CONFORMING AND TECHNICAL AMENDMENTS.

       (a) Goals 2000: Educate America Act.--The table of contents 
     in section 1(b) of the Goals 2000: Educate America Act (20 
     U.S.C. 5801 note) is amended by striking the items relating 
     to parts A through E of title IX (including the items 
     relating to sections within those parts).
       (b) Title 5, United States Code.--Section 5315 of title 5, 
     United States Code, is amended by striking the following:
       ``Commissioner, National Center for Education 
     Statistics.''.
       (c) General Education Provisions Act.--Section 447(b) of 
     the General Education Provisions Act (20 U.S.C. 1232j(b)) is 
     amended by striking ``section 404(a)(6) of the National 
     Education Statistics Act of 1994 (20 U.S.C. 9003(a)(6))'' and 
     inserting ``section 153(a)(6) of the Education Sciences 
     Reform Act of 2002''.
       (d) Elementary and Secondary Education Act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended as follows:
       (1) Section 1111(c)(2) is amended by striking ``section 
     411(b)(2) of the National Education Statistics Act of 1994'' 
     and inserting ``section 303(b)(2) of the National Assessment 
     of Educational Progress Authorization Act''.
       (2) Section 1112(b)(1)(F) is amended by striking ``section 
     411(b)(2) of the National Education Statistics Act of 1994'' 
     and inserting ``section 303(b)(2) of the National Assessment 
     of Educational Progress Authorization Act''.
       (3) Section 1117(a)(3) is amended--
       (A) by inserting ``(as such section existed on the day 
     before the date of enactment of the Education Sciences Reform 
     Act of 2002)'' after ``Act of 1994''; and
       (B) by inserting ``regional educational laboratories 
     established under part E of the Education Sciences Reform Act 
     of 2002 and comprehensive centers established under the 
     Educational Technical Assistance Act of 2002 and'' after 
     ``assistance from''.
       (4) Section 1501(a)(3) is amended by striking ``section 411 
     of the National Education Statistics Act of 1994'' and 
     inserting ``section 303 of the National Assessment of 
     Educational Progress Authorization Act''.
       (5) The following provisions are each amended by striking 
     ``Office of Educational Research and Improvement'' and 
     inserting ``Institute of Education Sciences'':
       (A) Section 3222(a) (20 U.S.C. 6932(a)).
       (B) Section 3303(1) (20 U.S.C. 7013(1)).
       (C) Section 5464(e)(1) (20 U.S.C. 7253c(e)(1)).
       (D) Paragraphs (1) and (2) of section 5615(d) (20 U.S.C. 
     7283d(d)).
       (E) Paragraphs (1) and (2) of section 7131(c) (20 U.S.C. 
     7451(c)).
       (6) Paragraphs (1) and (2) of section 5464(e) (20 U.S.C. 
     7253c(e)) are each amended by striking ``such Office'' and 
     inserting ``such Institute''.
       (7) Section 5613 (20 U.S.C. 7283b) is amended--
       (A) in subsection (a)(5), by striking ``Assistant Secretary 
     of the Office of Educational Research

[[Page 20799]]

     and Improvement'' and inserting ``Director of the Institute 
     of Education Sciences''; and
       (B) in subsection (b)(2)(B), by striking ``research 
     institutes of the Office of Educational Research and 
     Improvement'' and inserting ``National Education Centers of 
     the Institute of Education Sciences''.
       (8) Sections 5615(d)(1) and 7131(c)(1) (20 U.S.C. 
     7283d(d)(1), 7451(c)(1)) are each amended by striking ``by 
     the Office'' and inserting ``by the Institute''.
       (9) Section 9529(b) is amended by striking ``section 
     404(a)(6) of the National Education Statistics Act of 1994'' 
     and inserting ``section 153(a)(5) of the Education Sciences 
     Reform Act of 2002''.
       (e) School-to-Work Opportunities Act of 1994.--Section 404 
     of the School-to-Work Opportunities Act of 1994 (20 U.S.C. 
     6194) is amended by inserting ``(as such Act existed on the 
     day before the date of enactment of the Education Sciences 
     Reform Act of 2002)'' after ``Act of 1994''.

     SEC. 405. ORDERLY TRANSITION.

       The Secretary of Education shall take such steps as are 
     necessary to provide for the orderly transition to, and 
     implementation of, the offices, boards, committees, and 
     centers (and their various functions and responsibilities) 
     established or authorized by this Act, and by the amendments 
     made by this Act, from those established or authorized by the 
     Educational Research, Development, Dissemination, and 
     Improvement Act of 1994 (20 U.S.C. 6001 et seq.) and the 
     National Education Statistics Act of 1994 (20 U.S.C. 9001 et 
     seq.).

     SEC. 406. IMPACT AID.

       (a) Payments for Federally Connected Children.--Section 
     8003(b)(2)(C)(i)(II)(bb) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7703(B)(2)(c)(i)(II)(bb)) is 
     amended to read as follows:

       ``(bb) for a local educational agency that has a total 
     student enrollment of less than 350 students, has a per-pupil 
     expenditure that is less than the average per-pupil 
     expenditure of a comparable local education agency or three 
     comparable local educational agencies in the State in which 
     the local educational agency is located; and''.

       (b) Effective Date.--The amendment made by section 406(a) 
     shall be effective on September 30, 2001, and shall apply 
     with respect to fiscal year 2001, and all subsequent fiscal 
     years.
       (c) Bonesteel-Fairfax School District.--The Secretary of 
     Education shall deem the local educational agency serving the 
     Bonesteel-Fairfax school district, 26-5, in Bonesteel, South 
     Dakota, as eligible in fiscal year 2003 for a basic support 
     payment for heavily impacted local educational agencies under 
     section 8003(b)(2) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7703(b)(2)).
       (d) Central School District.--Notwithstanding any other 
     provision of law, the Secretary of Education shall treat as 
     timely filed an application filed by Central School District, 
     Sequoyah County, Oklahoma, for payment for federally 
     connected students for fiscal year 2003, pursuant to section 
     8003 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7703), and shall process such application for 
     payment, if the Secretary has received such application not 
     later than 30 days after the date of enactment of this Act.
  Mr. Castle. Mr. Speaker, nearly three years ago, I introduced 
legislation to transform the Department of Education's Office of 
Educational Reform and Improvement (OERI) into a streamlined, more 
independent and more scientific ``Institute of Education Sciences.'' 
Today, nearly six months after the House of Representatives passed the 
bill unanimously, we are poised enact long-overdue reforms to ensure 
that education research is based on science, not fads or fiction.
  This year, President Bush signed landmark education reforms into law, 
demanding new and more challenging standards of accountability from our 
states and improved student achievement from our schools. Recognizing 
that any successful education reform effort requires the best 
information on how children learn, the words ``scientifically based 
research'' appear more than 100 times in the new law.
  The reason for the focus on ``scientific'' research is simple: 
educators need to know what works if they are to improve student 
achievement. For that reason, among other things, H.R. 3801:
  Replaces OERI with a new, streamlined National Institute of Education 
Science;
  Insulates federal research, evaluations and statistics from 
inappropriate partisan or political influences;
  Ensures high quality standards;
  Creates a ``culture of science'' by allowing the Director to attract 
the best researchers, evaluators and statisticians to the Institute; 
and,
  Ensures that technical assistance is responsive to the needs of 
states and schools.
  If we are to lift those who are struggling to achieve proficiency in 
reading, math and science, we must expect scientific rigor. And we must 
ensure that `what works' in education informs classroom practice. My 
legislation helps accomplish these important goals.
  As there will be no conference report to accompany H.R. 3801, I would 
like to take this opportunity to clarify our intent in a few areas. The 
comprehensive centers under this Act will provide essential technical 
assistance and professional development to help our states and schools 
advance the goals of the No Child Left Behind Act. It is our intent 
that the reference to ``local entities'' or ``consortia of such 
entities'' in section 203 include regional educational agencies as 
among those eligible to receive grants. As my colleague, Mr. McKeon, 
has informed me, the state of California has a consortium of eight 
regional offices of education that provide hands-on technical 
assistance and professional development directly to schools in Southern 
California. It is our intent that the regional offices of education 
will continue to be eligible to participate in our improved structure.
  Also, I would like to clarify the intent of Section 117(d), regarding 
the supervision and removal authority of the Director. This section 
does not mean that the NCES Commissioner operates independently of the 
Director of the Institute. In fact, the Statistics Commissioner is an 
officer of the government and has the authority to fulfill the duties 
stipulated in section 154 and section 155 of the bill, such as the 
authority to enter into contracts and the authority to supervise the 
technical work of the Statistics Center. However, since NCES is a part 
of the Institute it, along with the other National Education Centers, 
is ultimately subject to the oversight of the Director of the 
Institute.
  Finally, this legislation would not have been possible without the 
hard work of members on both sides of the aisle and both chambers of 
Congress. In particular, I want to thank the full Committee Chairman 
John Boehner, Rankiing Member George Miller and by Subcommittee Ranking 
Member Dale Kildee as well as Chairman Kennedy and Ranking Member Gregg 
for their assistance and their strong support throughout this process.
  I also want to thank Secretary Paige, Assistant Secretary Russ 
Whitehurst and the staff at the Department, whose counsel and technical 
expertise were invaluable.
  Last, but certainly not least, I want to thank the staff who put in 
countless hours to get this legislation right--Doug Mesecar, Bob Sweet, 
Sally Lovejoy, Alex Nock, Denise Forte, Jane Oates, Tracy Locklin, and 
Denzel McGuire. They all deserve our thanks and appreciation for 
improving our system of education for the better.
  Mr. BOEHNER. Mr. Speaker, the time for final passage of the 
reauthorization of the Office of Education Research and Improvement 
(OERI) has come. The Senate and the House have agreed on the language 
of the bill, and both houses, on a bipartisan, bicameral basis have 
agreed to vote on it before we adjourn.
  My colleagues, Mr. Castle, Mr. Kildee, and Mr. Miller in the House, 
and Senators Kennedy and Gregg deserve a great deal of credit for 
moving the Education Sciences Reform Act of 2002 and finally bringing 
the bill to a final vote. Without the leadership and determination of 
these gentlemen, it wouldn't have happened this year.
  Providing high quality, scientifically based education research is 
vital if we are to improve our nation's schools and help every child 
receive a quality education. The Education Sciences Reform Act of 2002 
ensures such research will occur. In addition, it provides for 
technical assistance to states, school districts, and schools that is 
accountable, customer-driven, and focused on the implementation of the 
No Child Left Behind Act. Let me emphasize that the reforms in this 
bill will greatly assist in helping the No Child Left Behind Act 
successfully transform and reform our schools.
  Some of the reforms that have been included in this bill are 
significant and will offer the opportunity for a new ``culture of 
science'' to develop in federal research, evaluation and statistics. 
Let me describe just a few. The bill:
  Requires Scientifically Based Research--Research that can't or won't 
meet these standards will be ineligible for federal funds. This means 
scientific experiments will help ensure that schools do not waste 
scarce resources on ineffective programs and methods of instruction.
  Focuses the Research, Evaluation and Statistics Activities of the 
Department--The bill ensures that the new Institute of Education 
Sciences is responsible for research, evaluation and statistics 
activities only. It will no longer administer grant programs, which 
dilute the focus of the Institute.
  Eliminates Bureaucracy--The bill eliminates the five National 
Research Institutes, which were supposed to organize and support 
education research in specific areas but never did.
  Guards Against Partisan or Political Activities--The decision-makers 
in charge of research, statistics and evaluation are required to be 
highly qualified in their respective fields, ensuring that scientists--
not politicians--will be in charge. Also, these scientists must ensure 
that all activities at the Institute are free from bias and political 
influence.

[[Page 20800]]

  Expands Competition--The bill expands competition to allow other 
research entities, such as public or private, profit or nonprofit 
research organizations, to compete for federal funds. The Director has 
the flexibility to award contracts and grants to those entities that 
meet the priorities and the standards of the Institute.
  Helps States and Schools--The bill specifically asks those 
responsible for technical assistance to focus on helping states and 
schools implement education reforms, especially as they relate to the 
No Child Left Behind Act.
  I also want to highlight a provision included in this legislation to 
support states in developing longitudinal data systems. As schools, 
districts, and states work to collect, disaggregate, and analyze the 
data that No Child Left Behind requires, especially as they use that 
data to determine which schools and districts are making adequate 
yearly progress, it is critical that states have an adequate mechanism 
in place to monitor the academic achievement of students from year to 
year, and this bill can help ensure that states have the data they need 
to ensure accountability for results.
  This legislation allows the Secretary to make grants to states for 
the development of statewide, longitudinal data systems. The intent of 
this program is to help states with their ongoing efforts to develop 
such a system, as needed. In some cases that may mean a state is 
starting from scratch. In others, a state that already has a data 
system in place at the district or school level may be assisted. I 
would encourage those states currently working, either on their own or 
with high quality organizations, to improve their data systems to apply 
for assistance under this provision.
  Different school districts often use different systems of data 
collection. This language would allow a state to build a statewide, 
longitudinal data system that is comprised of diverse systems at the 
district and local level, so long as the data was collected at the 
state level in a consistent format.
  Mr. Speaker, we have worked closely with the President and the 
Administration as we have developed this bill, and have their support 
for its final passage.
  And once again, I thank my colleagues, Mr. Castle, Mr. Miller, Mr. 
Kildee, and Senators Gregg and Kennedy for making this bipartisan 
process work. We have continued the good relationship we had during the 
yearlong work on the No Child Left Behind Act. I am hopeful that we 
have set a new tone and a new example in Congress. Even in an election 
year, the approval by both the House and the Senate of the Education 
Sciences Reform Act of 2002 demonstrates once again that we can do 
great things when we work together.
  The staff of both the House and Senate Committees is to be commended 
for their hard work too. Thank you, on both sides of the aisle and both 
sides of the Hill, for your outstanding work on this important 
legislation. I urge my Colleagues to vote aye and pass this bill.


                     Concurred in Senate Amendment

  H.R. 4015, to amend title 38, United States Code, to revise and 
improve employment, training, and placement services furnished to 
veterans, and for other purposes.

       Senate amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; REFERENCES TO TITLE 38, UNITED STATES 
                   CODE.

       (a) Short Title.--This Act may be cited as the ``Jobs for 
     Veterans Act''.
       (b) References to Title 38, United States Code.--Except as 
     otherwise expressly provided, whenever in this Act an 
     amendment or repeal is expressed in terms of an amendment to, 
     or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of title 38, United States Code.

     SEC. 2. PRIORITY OF SERVICE FOR VETERANS IN DEPARTMENT OF 
                   LABOR JOB TRAINING PROGRAMS.

       (a) Veterans' Job Training Assistance.--(1) Chapter 42 is 
     amended by adding at the end the following new section:

     ``Sec. 4215. Priority of service for veterans in Department 
       of Labor job training programs

       ``(a) Definitions.--In this section:
       ``(1) The term `covered person' means any of the following 
     individuals:
       ``(A) A veteran.
       ``(B) The spouse of any of the following individuals:
       ``(i) Any veteran who died of a service-connected 
     disability.
       ``(ii) Any member of the Armed Forces serving on active 
     duty who, at the time of application for assistance under 
     this section, is listed, pursuant to section 556 of title 37 
     and regulations issued thereunder, by the Secretary concerned 
     in one or more of the following categories and has been so 
     listed for a total of more than 90 days: (I) missing in 
     action, (II) captured in line of duty by a hostile force, or 
     (III) forcibly detained or interned in line of duty by a 
     foreign government or power.
       ``(iii) Any veteran who has a total disability resulting 
     from a service-connected disability.
       ``(iv) Any veteran who died while a disability so evaluated 
     was in existence.
       ``(2) The term `qualified job training program' means any 
     workforce preparation, development, or delivery program or 
     service that is directly funded, in whole or in part, by the 
     Department of Labor and includes the following:
       ``(A) Any such program or service that uses technology to 
     assist individuals to access workforce development programs 
     (such as job and training opportunities, labor market 
     information, career assessment tools, and related support 
     services).
       ``(B) Any such program or service under the public 
     employment service system, one-stop career centers, the 
     Workforce Investment Act of 1998, a demonstration or other 
     temporary program, and those programs implemented by States 
     or local service providers based on Federal block grants 
     administered by the Department of Labor.
       ``(C) Any such program or service that is a workforce 
     development program targeted to specific groups.
       ``(3) The term `priority of service' means, with respect to 
     any qualified job training program, that a covered person 
     shall be given priority over nonveterans for the receipt of 
     employment, training, and placement services provided under 
     that program, notwithstanding any other provision of law.
       ``(b) Entitlement to Priority of Service.--(1) A covered 
     person is entitled to priority of service under any qualified 
     job training program if the person otherwise meets the 
     eligibility requirements for participation in such program.
       ``(2) The Secretary of Labor may establish priorities among 
     covered persons for purposes of this section to take into 
     account the needs of disabled veterans and special disabled 
     veterans, and such other factors as the Secretary determines 
     appropriate.
       ``(c) Administration of Programs at State and Local 
     Levels.--An entity of a State or a political subdivision of 
     the State that administers or delivers services under a 
     qualified job training program shall--
       ``(1) provide information and priority of service to 
     covered persons regarding benefits and services that may be 
     obtained through other entities or service providers; and
       ``(2) ensure that each covered person who applies to or who 
     is assisted by such a program is informed of the employment-
     related rights and benefits to which the person is entitled 
     under this section.
       ``(d) Addition to Annual Report.--In the annual report 
     required under section 4107(c) of this title for the program 
     year beginning in 2003 and each subsequent program year, the 
     Secretary of Labor shall evaluate whether covered persons are 
     receiving priority of service and are being fully served by 
     qualified job training programs, and whether the 
     representation of veterans in such programs is in proportion 
     to the incidence of representation of veterans in the labor 
     market, including within groups that the Secretary may 
     designate for priority under such programs, if any.''.
       (2) The table of sections at the beginning of chapter 42 is 
     amended by inserting after the item relating to section 4214 
     the following new item:

``4215. Priority of service for veterans in Department of Labor job 
              training programs.''.

       (b) Employment of Veterans With Respect to Federal 
     Contracts.--(1) Section 4212(a) is amended to read as 
     follows:
       ``(a)(1) Any contract in the amount of $100,000 or more 
     entered into by any department or agency of the United States 
     for the procurement of personal property and nonpersonal 
     services (including construction) for the United States, 
     shall contain a provision requiring that the party 
     contracting with the United States take affirmative action to 
     employ and advance in employment qualified covered veterans. 
     This section applies to any subcontract in the amount of 
     $100,000 or more entered into by a prime contractor in 
     carrying out any such contract.
       ``(2) In addition to requiring affirmative action to employ 
     such qualified covered veterans under such contracts and 
     subcontracts and in order to promote the implementation of 
     such requirement, the Secretary of Labor shall prescribe 
     regulations requiring that--
       ``(A) each such contractor for each such contract shall 
     immediately list all of its employment openings with the 
     appropriate employment service delivery system (as defined in 
     section 4101(7) of this title), and may also list such 
     openings with one-stop career centers under the Workforce 
     Investment Act of 1998, other appropriate service delivery 
     points, or America's Job Bank (or any additional or 
     subsequent national electronic job bank established by the 
     Department of Labor), except that the contractor may exclude 
     openings for executive and senior management positions and 
     positions which are to be filled from within the contractor's 
     organization and positions lasting three days or less;
       ``(B) each such employment service delivery system shall 
     give such qualified covered veterans priority in referral to 
     such employment openings; and
       ``(C) each such employment service delivery system shall 
     provide a list of such employment openings to States, 
     political subdivisions of States, or any private entities or 
     organizations under contract to carry out employment, 
     training, and placement services under chapter 41 of this 
     title.

[[Page 20801]]

       ``(3) In this section:
       ``(A) The term `covered veteran' means any of the following 
     veterans:
       ``(i) Disabled veterans.
       ``(ii) Veterans who served on active duty in the Armed 
     Forces during a war or in a campaign or expedition for which 
     a campaign badge has been authorized.
       ``(iii) Veterans who, while serving on active duty in the 
     Armed Forces, participated in a United States military 
     operation for which an Armed Forces service medal was awarded 
     pursuant to Executive Order 12985 (61 Fed. Reg. 1209).
       ``(iv) Recently separated veterans.
       ``(B) The term `qualified', with respect to an employment 
     position, means having the ability to perform the essential 
     functions of the position with or without reasonable 
     accommodation for an individual with a disability.''.
       (2)(A) Section 4212(c) is amended--
       (i) by striking ``suitable''; and
       (ii) by striking ``subsection (a)(2) of this section'' and 
     inserting ``subsection (a)(2)(B)''.
       (B) Section 4212(d)(1) is amended--
       (i) in the matter preceding subparagraph (A), by striking 
     ``of this section'' after ``subsection (a)''; and
       (ii) by amending subparagraphs (A) and (B) to read as 
     follows:
       ``(A) the number of employees in the workforce of such 
     contractor, by job category and hiring location, and the 
     number of such employees, by job category and hiring 
     location, who are qualified covered veterans;
       ``(B) the total number of new employees hired by the 
     contractor during the period covered by the report and the 
     number of such employees who are qualified covered veterans; 
     and''.
       (C) Section 4212(d)(2) is amended by striking ``of this 
     subsection'' after ``paragraph (1)''.
       (D) Section 4211(6) is amended by striking ``one-year 
     period'' and inserting ``three-year period''.
       (3) The amendments made by this subsection shall apply with 
     respect to contracts entered into on or after the first day 
     of the first month that begins 12 months after the date of 
     the enactment of this Act.
       (c) Employment Within the Federal Government.--(1) Section 
     4214(a)(1) is amended--
       (A) in the first sentence, by striking ``life'' and all 
     that follows and inserting ``life.''; and
       (B) in the second sentence, by striking ``major'' and 
     inserting ``uniquely qualified''.
       (2) Section 4214(b) is amended--
       (A) in paragraph (1), by striking ``readjustment'' and 
     inserting ``recruitment'';
       (B) in paragraph (2), by striking ``to--'' and all that 
     follows through the period at the end and inserting ``to 
     qualified covered veterans.'';
       (C) in paragraph (3), to read as follows:
       ``(3) A qualified covered veteran may receive such an 
     appointment at any time.''.
       (3)(A) Section 4214(a) is amended--
       (i) in the third sentence of paragraph (1), by striking 
     ``disabled veterans and certain veterans of the Vietnam era 
     and of the post-Vietnam era'' and inserting ``qualified 
     covered veterans (as defined in paragraph (2)(B))''; and
       (ii) in paragraph (2), to read as follows:
       ``(2) In this section:
       ``(A) The term `agency' has the meaning given the term 
     `department or agency' in section 4211(5) of this title.
       ``(B) The term `qualified covered veteran' means a veteran 
     described in section 4212(a)(3) of this title.''.
       (B) Clause (i) of section 4214(e)(2)(B) is amended by 
     striking ``of the Vietnam era''.
       (C) Section 4214(g) is amended--
       (i) by striking ``qualified'' the first place it occurs and 
     all that follows through ``era'' the first place it occurs 
     and inserting ``qualified covered veterans''; and
       (ii) by striking ``under section 1712A of this title'' and 
     all that follows and inserting ``under section 1712A of this 
     title.''.
       (4) The amendments made by this subsection shall apply to 
     qualified covered veterans without regard to any limitation 
     relating to the date of the veteran's last discharge or 
     release from active duty that may have otherwise applied 
     under section 4214(b)(3) as in effect on the date before the 
     date of the enactment of this Act.

     SEC. 3. FINANCIAL AND NON-FINANCIAL PERFORMANCE INCENTIVE 
                   AWARDS FOR QUALITY VETERANS EMPLOYMENT, 
                   TRAINING, AND PLACEMENT SERVICES.

       (a) Performance Incentive Awards for Quality Employment, 
     Training, and Placement Services.--Chapter 41 is amended by 
     adding at the end the following new section:

     ``Sec. 4112. Performance incentive awards for quality 
       employment, training, and placement services

       ``(a) Criteria for Performance Incentive Awards.--(1) For 
     purposes of carrying out a program of performance incentive 
     awards under section 4102A(c)(2)(A)(i)(III) of this title, 
     the Secretary, acting through the Assistant Secretary of 
     Labor for Veterans' Employment and Training, shall establish 
     criteria for performance incentive awards programs to be 
     administered by States to--
       ``(A) encourage the improvement and modernization of 
     employment, training, and placement services provided under 
     this chapter; and
       ``(B) recognize eligible employees for excellence in the 
     provision of such services or for having made demonstrable 
     improvements in the provision of such services.
       ``(2) The Secretary shall establish such criteria in 
     consultation with representatives of States, political 
     subdivisions of States, and other providers of employment, 
     training, and placement services under the Workforce 
     Investment Act of 1998 consistent with the performance 
     measures established under section 4102A(b)(7) of this title.
       ``(b) Form of Awards.--Under the criteria established by 
     the Secretary for performance incentive awards to be 
     administered by States, an award under such criteria may be a 
     cash award or such other nonfinancial awards as the Secretary 
     may specify.
       ``(c) Relationship of Award to Grant Program and Employee 
     Compensation.--Performance incentive cash awards under this 
     section--
       ``(1) shall be made from amounts allocated from the grant 
     or contract amount for a State for a program year under 
     section 4102A(c)(7) of this title; and
       ``(2) is in addition to the regular pay of the recipient.
       ``(d) Eligible Employee Defined.--In this section, the term 
     `eligible employee' means any of the following:
       ``(1) A disabled veterans' outreach program specialist.
       ``(2) A local veterans' employment representative.
       ``(3) An individual providing employment, training, and 
     placement services to veterans under the Workforce Investment 
     Act of 1998 or through an employment service delivery system 
     (as defined in section 4101(7) of this title).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 41 is amended by adding at the end the 
     following new item:

``4112. Performance incentive awards for quality employment, training, 
              and placement services.''.

     SEC. 4. REFINEMENT OF JOB TRAINING AND PLACEMENT FUNCTIONS OF 
                   THE DEPARTMENT.

       (a) Revision of Department Level Senior Officials and 
     Functions.--(1) Sections 4102A and 4103 are amended to read 
     as follows:

     ``Sec. 4102A. Assistant Secretary of Labor for Veterans' 
       Employment and Training; program functions; Regional 
       Administrators

       ``(a) Establishment of Position of Assistant Secretary of 
     Labor for Veterans' Employment and Training.--(1) There is 
     established within the Department of Labor an Assistant 
     Secretary of Labor for Veterans' Employment and Training, 
     appointed by the President by and with the advice and consent 
     of the Senate, who shall formulate and implement all 
     departmental policies and procedures to carry out (A) the 
     purposes of this chapter, chapter 42, and chapter 43 of this 
     title, and (B) all other Department of Labor employment, 
     unemployment, and training programs to the extent they affect 
     veterans.
       ``(2) The employees of the Department of Labor 
     administering chapter 43 of this title shall be 
     administratively and functionally responsible to the 
     Assistant Secretary of Labor for Veterans' Employment and 
     Training.
       ``(3)(A) There shall be within the Department of Labor a 
     Deputy Assistant Secretary of Labor for Veterans' Employment 
     and Training. The Deputy Assistant Secretary shall perform 
     such functions as the Assistant Secretary of Labor for 
     Veterans' Employment and Training prescribes.
       ``(B) No individual may be appointed as a Deputy Assistant 
     Secretary of Labor for Veterans' Employment and Training 
     unless the individual has at least five years of service in a 
     management position as an employee of the Federal civil 
     service or comparable service in a management position in the 
     Armed Forces. For purposes of determining such service of an 
     individual, there shall be excluded any service described in 
     subparagraphs (A), (B), and (C) of section 308(d)(2) of this 
     title.
       ``(b) Program Functions.--The Secretary shall carry out the 
     following functions:
       ``(1) Except as expressly provided otherwise, carry out all 
     provisions of this chapter and chapter 43 of this title 
     through the Assistant Secretary of Labor for Veterans' 
     Employment and Training and administer through such Assistant 
     Secretary all programs under the jurisdiction of the 
     Secretary for the provision of employment and training 
     services designed to meet the needs of all veterans and 
     persons eligible for services furnished under this chapter.
       ``(2) In order to make maximum use of available resources 
     in meeting such needs, encourage all such programs, and all 
     grantees and contractors under such programs to enter into 
     cooperative arrangements with private industry and business 
     concerns (including small business concerns owned by veterans 
     or disabled veterans), educational institutions, trade 
     associations, and labor unions.
       ``(3) Ensure that maximum effectiveness and efficiency are 
     achieved in providing services and assistance to eligible 
     veterans under all such programs by coordinating and 
     consulting with the Secretary of Veterans Affairs with 
     respect to (A) programs conducted under other provisions of 
     this title, with particular emphasis on coordination of such 
     programs with readjustment counseling activities carried out 
     under section 1712A of this title, apprenticeship or other 
     on-the-job training programs carried out under section 3687 
     of this title, and rehabilitation and training activities 
     carried out under chapter 31 of this title and (B) 
     determinations covering veteran population in a State.
       ``(4) Ensure that employment, training, and placement 
     activities are carried out in coordination and cooperation 
     with appropriate State public employment service officials.
       ``(5) Subject to subsection (c), make available for use in 
     each State by grant or contract such funds as may be 
     necessary to support--

[[Page 20802]]

       ``(A) disabled veterans' outreach program specialists 
     appointed under section 4103A(a)(1) of this title,
       ``(B) local veterans' employment representatives assigned 
     under section 4104(b) of this title, and
       ``(C) the reasonable expenses of such specialists and 
     representatives described in subparagraphs (A) and (B), 
     respectively, for training, travel, supplies, and other 
     business expenses, including travel expenses and per diem for 
     attendance at the National Veterans' Employment and Training 
     Services Institute established under section 4109 of this 
     title.
       ``(6) Monitor and supervise on a continuing basis the 
     distribution and use of funds provided for use in the States 
     under paragraph (5).
       ``(7) Establish, and update as appropriate, a comprehensive 
     performance accountability system (as described in subsection 
     (f)) and carry out annual performance reviews of veterans 
     employment, training, and placement services provided through 
     employment service delivery systems, including through 
     disabled veterans' outreach program specialists and through 
     local veterans' employment representatives in States 
     receiving grants, contracts, or awards under this chapter.
       ``(c) Conditions for Receipt of Funds.--(1) The 
     distribution and use of funds under subsection (b)(5) in 
     order to carry out sections 4103A(a) and 4104(a) of this 
     title shall be subject to the continuing supervision and 
     monitoring of the Secretary and shall not be governed by the 
     provisions of any other law, or any regulations prescribed 
     thereunder, that are inconsistent with this section or 
     section 4103A or 4104 of this title.
       ``(2)(A) A State shall submit to the Secretary an 
     application for a grant or contract under subsection (b)(5). 
     The application shall contain the following information:
       ``(i) A plan that describes the manner in which the State 
     shall furnish employment, training, and placement services 
     required under this chapter for the program year, including a 
     description of--
       ``(I) duties assigned by the State to disabled veterans' 
     outreach program specialists and local veterans' employment 
     representatives consistent with the requirements of sections 
     4103A and 4104 of this title;
       ``(II) the manner in which such specialists and 
     representatives are integrated in the employment service 
     delivery systems in the State; and
       ``(III) the program of performance incentive awards 
     described in section 4112 of this title in the State for the 
     program year.
       ``(ii) The veteran population to be served.
       ``(iii) Such additional information as the Secretary may 
     require to make a determination with respect to awarding a 
     grant or contract to the State.
       ``(B)(i) Subject to the succeeding provisions of this 
     subparagraph, of the amount available under subsection (b)(5) 
     for a fiscal year, the Secretary shall make available to each 
     State with an application approved by the Secretary an amount 
     of funding in proportion to the number of veterans seeking 
     employment using such criteria as the Secretary may establish 
     in regulation, including civilian labor force and 
     unemployment data, for the State on an annual basis. The 
     proportion of funding shall reflect the ratio of--
       ``(I) the total number of veterans residing in the State 
     that are seeking employment; to
       ``(II) the total number of veterans seeking employment in 
     all States.
       ``(ii) The Secretary shall phase in over the three fiscal-
     year period that begins on October 1, 2002, the manner in 
     which amounts are made available to States under subsection 
     (b)(5) and this subsection, as amended by the Jobs for 
     Veterans Act.
       ``(iii) In carrying out this paragraph, the Secretary may 
     establish minimum funding levels and hold-harmless criteria 
     for States.
       ``(3)(A)(i) As a condition of a grant or contract under 
     this section for a program year, in the case of a State that 
     the Secretary determines has an entered-employment rate for 
     veterans that is deficient for the preceding program year, 
     the State shall develop a corrective action plan to improve 
     that rate for veterans in the State.
       ``(ii) The State shall submit the corrective action plan to 
     the Secretary for approval, and if approved, shall 
     expeditiously implement the plan.
       ``(iii) If the Secretary does not approve a corrective 
     action plan submitted by the State under clause (i), the 
     Secretary shall take such steps as may be necessary to 
     implement corrective actions in the State to improve the 
     entered-employment rate for veterans in that State.
       ``(B) To carry out subparagraph (A), the Secretary shall 
     establish in regulations a uniform national threshold 
     entered-employment rate for veterans for a program year by 
     which determinations of deficiency may be made under 
     subparagraph (A).
       ``(C) In making a determination with respect to a 
     deficiency under subparagraph (A), the Secretary shall take 
     into account the applicable annual unemployment data for the 
     State and consider other factors, such as prevailing economic 
     conditions, that affect performance of individuals providing 
     employment, training, and placement services in the State.
       ``(4) In determining the terms and conditions of a grant or 
     contract under which funds are made available to a State in 
     order to carry out section 4103A or 4104 of this title, the 
     Secretary shall take into account--
       ``(A) the results of reviews, carried out pursuant to 
     subsection (b)(7), of the performance of the employment, 
     training, and placement service delivery system in the State, 
     and
       ``(B) the monitoring carried out under this section.
       ``(5) Each grant or contract by which funds are made 
     available to a State shall contain a provision requiring the 
     recipient of the funds--
       ``(A) to comply with the provisions of this chapter; and
       ``(B) on an annual basis, to notify the Secretary of, and 
     provide supporting rationale for, each nonveteran who is 
     employed as a disabled veterans' outreach program specialist 
     and local veterans' employment representative for a period in 
     excess of 6 months.
       ``(6) Each State shall coordinate employment, training, and 
     placement services furnished to veterans and eligible persons 
     under this chapter with such services furnished with respect 
     to such veterans and persons under the Workforce Investment 
     Act of 1998 and the Wagner-Peyser Act.
       ``(7) With respect to program years beginning during or 
     after fiscal year 2004, one percent of the amount of a grant 
     or contract under which funds are made available to a State 
     in order to carry out section 4103A or 4104 of this title for 
     the program year shall be for the purposes of making cash 
     awards under the program of performance incentive awards 
     described in section 4112 of this title in the State.
       ``(d) Participation in Other Federally Funded Job Training 
     Programs.--The Assistant Secretary of Labor for Veterans' 
     Employment and Training shall promote and monitor 
     participation of qualified veterans and eligible persons in 
     employment and training opportunities under title I of the 
     Workforce Investment Act of 1998 and other federally funded 
     employment and training programs.
       ``(e) Regional Administrators.--(1) The Secretary shall 
     assign to each region for which the Secretary operates a 
     regional office a representative of the Veterans' Employment 
     and Training Service to serve as the Regional Administrator 
     for Veterans' Employment and Training in such region.
       ``(2) Each such Regional Administrator shall carry out such 
     duties as the Secretary may require to promote veterans 
     employment and reemployment within the region that the 
     Administrator serves.
       ``(f) Establishment of Performance Standards and Outcomes 
     Measures.--(1) By not later than 6 months after the date of 
     the enactment of this section, the Assistant Secretary of 
     Labor for Veterans' Employment and Training shall establish 
     and implement a comprehensive performance accountability 
     system to measure the performance of employment service 
     delivery systems, including disabled veterans' outreach 
     program specialists and local veterans' employment 
     representatives providing employment, training, and placement 
     services under this chapter in a State to provide 
     accountability of that State to the Secretary for purposes of 
     subsection (c).
       ``(2) Such standards and measures shall--
       ``(A) be consistent with State performance measures 
     applicable under section 136(b) of the Workforce Investment 
     Act of 1998; and
       ``(B) be appropriately weighted to provide special 
     consideration for placement of (i) veterans requiring 
     intensive services (as defined in section 4101(9) of this 
     title), such as special disabled veterans and disabled 
     veterans, and (ii) veterans who enroll in readjustment 
     counseling under section 1712A of this title.
       ``(g) Authority to Provide Technical Assistance to 
     States.--The Secretary may provide such technical assistance 
     as the Secretary determines appropriate to any State that the 
     Secretary determines has, or may have, an entered-employment 
     rate in the State that is deficient, as determined under 
     subsection (c)(3) with respect to a program year, including 
     assistance in the development of a corrective action plan 
     under that subsection.

     ``Sec. 4103. Directors and Assistant Directors for Veterans' 
       Employment and Training; additional Federal personnel

       ``(a) Directors and Assistant Directors.--(1) The Secretary 
     shall assign to each State a representative of the Veterans' 
     Employment and Training Service to serve as the Director for 
     Veterans' Employment and Training, and shall assign full-time 
     Federal clerical or other support personnel to each such 
     Director.
       ``(2) Each Director for Veterans' Employment and Training 
     for a State shall, at the time of appointment, have been a 
     bona fide resident of the State for at least two years.
       ``(3) Full-time Federal clerical or other support personnel 
     assigned to Directors for Veterans' Employment and Training 
     shall be appointed in accordance with the provisions of title 
     5 governing appointments in the competitive service and shall 
     be paid in accordance with the provisions of chapter 51 and 
     subchapter III of chapter 53 of title 5.
       ``(b) Additional Federal Personnel.--The Secretary may also 
     assign as supervisory personnel such representatives of the 
     Veterans' Employment and Training Service as the Secretary 
     determines appropriate to carry out the employment, training, 
     and placement services required under this chapter, including 
     Assistant Directors for Veterans' Employment and Training.''.
       (2) The items relating to sections 4102A and 4103, 
     respectively, in the table of sections at the beginning of 
     chapter 41 are amended to read as follows:

``4102A. Assistant Secretary of Labor for Veterans' Employment and 
              Training; program functions; Regional Administrators.

[[Page 20803]]

``4103. Directors and Assistant Directors for Veterans' Employment and 
              Training; additional Federal personnel.''.

       (3)(A)(i) Section 4104A is repealed.
       (ii) The table of sections at the beginning of chapter 41 
     is amended by striking the item relating to section 4104A.
       (B) Section 4107(b) is amended by striking ``The Secretary 
     shall establish definitive performance standards'' and 
     inserting ``The Secretary shall apply performance standards 
     established under section 4102A(f) of this title''.
       (4) The amendments made by this subsection shall take 
     effect on the date of the enactment of this Act, and apply 
     for program and fiscal years under chapter 41 of title 38, 
     United States Code, beginning on or after such date.
       (b) Revision of Statutorily Defined Duties of Disabled 
     Veterans' Outreach Program Specialists and Local Veterans' 
     Employment Representatives.--(1) Section 4103A is amended by 
     striking all after the heading and inserting the following:
       ``(a) Requirement for Employment by States of a Sufficient 
     Number of Specialists.--(1) Subject to approval by the 
     Secretary, a State shall employ such full- or part-time 
     disabled veterans' outreach program specialists as the State 
     determines appropriate and efficient to carry out intensive 
     services under this chapter to meet the employment needs of 
     eligible veterans with the following priority in the 
     provision of services:
       ``(A) Special disabled veterans.
       ``(B) Other disabled veterans.
       ``(C) Other eligible veterans in accordance with priorities 
     determined by the Secretary taking into account applicable 
     rates of unemployment and the employment emphases set forth 
     in chapter 42 of this title.
       ``(2) In the provision of services in accordance with this 
     subsection, maximum emphasis in meeting the employment needs 
     of veterans shall be placed on assisting economically or 
     educationally disadvantaged veterans.
       ``(b) Requirement for Qualified Veterans.--A State shall, 
     to the maximum extent practicable, employ qualified veterans 
     to carry out the services referred to in subsection (a). 
     Preference shall be given in the appointment of such 
     specialists to qualified disabled veterans.''.
       (2) Section 4104 is amended by striking all after the 
     heading and inserting the following:
       ``(a) Requirement for Employment by States of a Sufficient 
     Number of Representatives.--Subject to approval by the 
     Secretary, a State shall employ such full- and part-time 
     local veterans' employment representatives as the State 
     determines appropriate and efficient to carry out employment, 
     training, and placement services under this chapter.
       ``(b) Principal Duties.--As principal duties, local 
     veterans' employment representatives shall--
       ``(1) conduct outreach to employers in the area to assist 
     veterans in gaining employment, including conducting seminars 
     for employers and, in conjunction with employers, conducting 
     job search workshops and establishing job search groups; and
       ``(2) facilitate employment, training, and placement 
     services furnished to veterans in a State under the 
     applicable State employment service delivery systems.
       ``(c) Requirement for Qualified Veterans and Eligible 
     Persons.--A State shall, to the maximum extent practicable, 
     employ qualified veterans or eligible persons to carry out 
     the services referred to in subsection (a). Preference shall 
     be accorded in the following order:
       ``(1) To qualified service-connected disabled veterans.
       ``(2) If no veteran described in paragraph (1) is 
     available, to qualified eligible veterans.
       ``(3) If no veteran described in paragraph (1) or (2) is 
     available, then to qualified eligible persons.
       ``(d) Reporting.--Each local veterans' employment 
     representative shall be administratively responsible to the 
     manager of the employment service delivery system and shall 
     provide reports, not less frequently than quarterly, to the 
     manager of such office and to the Director for Veterans' 
     Employment and Training for the State regarding compliance 
     with Federal law and regulations with respect to special 
     services and priorities for eligible veterans and eligible 
     persons.''.
       (3) The amendments made by this subsection shall take 
     effect on the date of the enactment of this Act, and apply 
     for program years under chapter 41 of title 38, United States 
     Code, beginning on or after such date.
       (c) Requirement To Promptly Establish One-Stop Employment 
     Services.--By not later than 18 months after the date of the 
     enactment of this Act, the Secretary of Labor shall provide 
     one-stop services and assistance to covered persons 
     electronically by means of the Internet, as defined in 
     section 231(e)(3) of the Communications Act of 1934, and such 
     other electronic means to enhance the delivery of such 
     services and assistance.
       (d) Requirement for Budget Line Item for Training Services 
     Institute.--(1) The last sentence of section 4106(a) is 
     amended to read as follows: ``Each budget submission with 
     respect to such funds shall include a separate listing of the 
     amount for the National Veterans' Employment and Training 
     Services Institute together with information demonstrating 
     the compliance of such budget submission with the funding 
     requirements specified in the preceding sentence.''.
       (2) The amendment made by paragraph (1) shall take effect 
     on the date of the enactment of this Act, and apply to budget 
     submissions for fiscal year 2004 and each subsequent fiscal 
     year.
       (e) Conforming Amendments.--(1) Section 4107(c)(5) is 
     amended by striking ``(including the need'' and all that 
     follows through ``representatives)''.
       (2) Section 3117(a)(2)(B) is amended to read as follows:
       ``(B) utilization of employment, training, and placement 
     services under chapter 41 of this title; and''.

     SEC. 5. ADDITIONAL IMPROVEMENTS IN VETERANS EMPLOYMENT AND 
                   TRAINING SERVICES.

       (a) Inclusion of Intensive Services.--(1)(A) Section 4101 
     is amended by adding at the end the following new paragraph:
       ``(9) The term `intensive services' means local employment 
     and training services of the type described in section 
     134(d)(3) of the Workforce Investment Act of 1998.''.
       (B) Section 4102 is amended by striking ``job and job 
     training counseling service program,'' and inserting ``job 
     and job training intensive services program,''.
       (C) Section 4106(a) is amended by striking ``proper 
     counseling'' and inserting ``proper intensive services''.
       (D) Section 4107(a) is amended by striking ``employment 
     counseling services'' and inserting ``intensive services''.
       (E) Section 4107(c)(1) is amended by striking ``the number 
     counseled'' and inserting ``the number who received intensive 
     services''.
       (F) Section 4109(a) is amended by striking ``counseling,'' 
     each place it appears and inserting ``intensive services,''.
       (2) The amendments made by paragraph (1) shall take effect 
     on the date of the enactment of this Act.
       (b) Additional VETS Duty To Implement Transitions to 
     Civilian Careers.--(1)(A) Section 4102 is amended by striking 
     the period and inserting ``, including programs carried out 
     by the Veterans' Employment and Training Service to implement 
     all efforts to ease the transition of servicemembers to 
     civilian careers that are consistent with, or an outgrowth 
     of, the military experience of the servicemembers.''.
       (B) Such section is further amended by striking ``and 
     veterans of the Vietnam era'' and inserting ``and veterans 
     who served on active duty during a war or in a campaign or 
     expedition for which a campaign badge has been authorized''.
       (2) The amendments made by paragraph (1) shall take effect 
     on the date of the enactment of this Act.
       (c) Modernization of Employment Service Delivery Points To 
     Include Technological Innovations.--(1) Section 4101(7) is 
     amended to read as follows:
       ``(7) The term `employment service delivery system' means a 
     service delivery system at which or through which labor 
     exchange services, including employment, training, and 
     placement services, are offered in accordance with the 
     Wagner-Peyser Act.''.
       (2) The amendments made by paragraph (1) shall take effect 
     on the date of the enactment of this Act.
       (d) Increase in Accuracy of Reporting Services Furnished to 
     Veterans.--(1)(A) Section 4107(c)(1) is amended--
       (i) by striking ``veterans of the Vietnam era,''; and
       (ii) by striking ``and eligible persons who registered for 
     assistance with'' and inserting ``eligible persons, recently 
     separated veterans (as defined in section 4211(6) of this 
     title), and servicemembers transitioning to civilian careers 
     who registered for assistance with, or who are identified as 
     veterans by,''.
       (B) Section 4107(c)(2) is amended--
       (i) by striking ``the job placement rate'' the first place 
     it appears and inserting ``the rate of entered employment (as 
     determined in a manner consistent with State performance 
     measures applicable under section 136(b) of the Workforce 
     Investment Act of 1998)''; and
       (ii) by striking ``the job placement rate'' the second 
     place it appears and inserting ``such rate of entered 
     employment (as so determined)''.
       (C) Section 4107(c)(4) is amended by striking ``sections 
     4103A and 4104'' and inserting ``section 4212(d)''.
       (D) Section 4107(c) is amended--
       (i) by striking ``and'' at the end of paragraph (4);
       (ii) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (iii) by adding at the end the following new paragraph:
       ``(6) a report on the operation during the preceding 
     program year of the program of performance incentive awards 
     for quality employment services under section 4112 of this 
     title.''.
       (E) Section 4107(b), as amended by section 4(a)(3)(B), is 
     further amended by striking the second sentence and inserting 
     the following: ``Not later than February 1 of each year, the 
     Secretary shall report to the Committees on Veterans' Affairs 
     of the Senate and the House of Representatives on the 
     performance of States and organizations and entities carrying 
     out employment, training, and placement services under this 
     chapter, as measured under subsection (b)(7) of section 4102A 
     of this title. In the case of a State that the Secretary 
     determines has not met the minimum standard of performance 
     (established by the Secretary under subsection (f) of such 
     section), the Secretary shall include an analysis of the 
     extent and reasons for the State's failure to meet that 
     minimum standard, together with the State's plan for 
     corrective action during the succeeding year.''.
       (2) The amendments made by paragraph (1) shall apply to 
     reports for program years beginning on or after July 1, 2003.

[[Page 20804]]

       (e) Clarification of Authority of NVETSI To Provide 
     Training for Personnel of Other Departments and Agencies.--
     Section 4109 is amended by adding at the end the following 
     new subsection:
       ``(c)(1) Nothing in this section shall be construed as 
     preventing the Institute to enter into contracts or 
     agreements with departments or agencies of the United States 
     or of a State, or with other organizations, to carry out 
     training of personnel of such departments, agencies, or 
     organizations in the provision of services referred to in 
     subsection (a).
       ``(2) All proceeds collected by the Institute under a 
     contract or agreement referred to in paragraph (1) shall be 
     applied to the applicable appropriation.''.

     SEC. 6. COMMITTEE TO RAISE EMPLOYER AWARENESS OF SKILLS OF 
                   VETERANS AND BENEFITS OF HIRING VETERANS.

       (a) Establishment of Committee.--There is established 
     within the Department of Labor a committee to be known as the 
     President's National Hire Veterans Committee (hereinafter in 
     this section referred to as the ``Committee'').
       (b) Duties.--The Committee shall establish and carry out a 
     national program to do the following:
       (1) To furnish information to employers with respect to the 
     training and skills of veterans and disabled veterans, and 
     the advantages afforded employers by hiring veterans with 
     such training and skills.
       (2) To facilitate employment of veterans and disabled 
     veterans through participation in America's Career Kit 
     national labor exchange, and other means.
       (c) Membership.--(1) The Secretary of Labor shall appoint 
     15 individuals to serve as members of the Committee, of whom 
     one shall be appointed from among representatives nominated 
     by each organization described in subparagraph (A) and of 
     whom eight shall be appointed from among representatives 
     nominated by organizations described in subparagraph (B).
       (A) Organizations described in this subparagraph are the 
     following:
       (i) The Ad Council.
       (ii) The National Committee for Employer Support of the 
     Guard and Reserve.
       (iii) Veterans' service organizations that have a national 
     employment program.
       (iv) State employment security agencies.
       (v) One-stop career centers.
       (vi) State departments of veterans affairs.
       (vii) Military service organizations.
       (B) Organizations described in this subparagraph are such 
     businesses, small businesses, industries, companies in the 
     private sector that furnish placement services, civic groups, 
     workforce investment boards, and labor unions as the 
     Secretary of Labor determines appropriate.
       (2) The following shall be ex officio, nonvoting members of 
     the Committee:
       (A) The Secretary of Veterans Affairs.
       (B) The Secretary of Defense.
       (C) The Assistant Secretary of Labor for Veterans' 
     Employment and Training.
       (D) The Administrator of the Small Business Administration.
       (E) The Postmaster General.
       (F) The Director of the Office of Personnel Management.
       (3) A vacancy in the Committee shall be filled in the 
     manner in which the original appointment was made.
       (d) Administrative Matters.--(1) The Committee shall meet 
     not less frequently than once each calendar quarter.
       (2) The Secretary of Labor shall appoint the chairman of 
     the Committee.
       (3)(A) Members of the Committee shall serve without 
     compensation.
       (B) Members of the Committee shall be allowed reasonable 
     and necessary travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for persons serving 
     intermittently in the Government service in accordance with 
     the provisions of subchapter I of chapter 57 of title 5 while 
     away from their homes or regular places of business in the 
     performance of the responsibilities of the Committee.
       (4) The Secretary of Labor shall provide staff and 
     administrative support to the Committee to assist it in 
     carrying out its duties under this section. The Secretary 
     shall assure positions on the staff of the Committee include 
     positions that are filled by individuals that are now, or 
     have ever been, employed as one of the following:
       (A) Staff of the Assistant Secretary of Labor for Veterans' 
     Employment and Training under section 4102A of title 38, 
     United States Code as in effect on the date of the enactment 
     of this Act.
       (B) Directors for Veterans' Employment and Training under 
     section 4103 of such title as in effect on such date.
       (C) Assistant Director for Veterans' Employment and 
     Training under such section as in effect on such date.
       (D) Disabled veterans' outreach program specialists under 
     section 4103A of such title as in effect on such date.
       (E) Local veterans' employment representatives under 
     section 4104 of such title as in effect on such date.
       (5) Upon request of the Committee, the head of any Federal 
     department or agency may detail, on a nonreimbursable basis, 
     any of the personnel of that department or agency to the 
     Committee to assist it in carrying out its duties.
       (6) The Committee may contract with and compensate 
     government and private agencies or persons to furnish 
     information to employers under subsection (b)(1) without 
     regard to section 3709 of the Revised Statutes (41 U.S.C. 5).
       (e) Report.--Not later than December 31, 2003, 2004, and 
     2005, the Secretary of Labor shall submit to Congress a 
     report on the activities of the Committee under this section 
     during the previous fiscal year, and shall include in such 
     report data with respect to placement and retention of 
     veterans in jobs attributable to the activities of the 
     Committee.
       (f) Termination.--The Committee shall terminate 60 days 
     after submitting the report that is due on December 31, 2005.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Labor from the 
     employment security administration account (established in 
     section 901 of the Social Security Act (42 U.S.C. 1101)) in 
     the Unemployment Trust Fund $3,000,000 for each of fiscal 
     years 2003 through 2005 to carry out this section.

     SEC. 7. REPORT ON IMPLEMENTATION OF EMPLOYMENT REFORMS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study on the implementation by the Secretary 
     of Labor of the provisions of this Act during the program 
     years that begin during fiscal years 2003 and 2004. The study 
     shall include an assessment of the modifications under 
     sections 2 through 5 of this Act of the provisions of title 
     38, United States Code, and an evaluation of the impact of 
     those modifications, and of the actions of the President's 
     National Hire Veterans Committee under section 6 of this Act, 
     to the provision of employment, training, and placement 
     services provided to veterans under that title.
       (b) Report.--Not later than 6 months after the conclusion 
     of the program year that begins during fiscal year 2004, the 
     Comptroller General shall submit to Congress a report on the 
     study conducted under subsection (a). The report shall 
     include such recommendations as the Comptroller General 
     determines appropriate, including recommendations for 
     legislation or administrative action.
  Mr. EVANS. Mr. Speaker, I rise in strong support of H.R. 4015, the 
Jobs for Veterans Act. This legislation will improve and modernize 
veterans' employment and training services currently administered by 
the Department of Labor (DOL) and delivered through various State 
employment agencies.
  I thank Chris Smith, our Chairman, and Mike Simpson and Silvestre 
Reyes, Chairman and Ranking Member of the Benefits Subcommittee, for 
their leadership on this measure. I also thank all staff for their hard 
work on H.R. 4015 and particularly Geoffrey Collver and Darryl Kehrer 
for their determined and excellent work on this legislation.
  H.R. 4015, as amended, will introduce many new features into the 
veterans' employment services system, including greater flexibility, 
creativity, incentives, and increased accountability. I was a strong 
supporter of H.R. 4015 when the bill originally passed the House in May 
of 2002 and am pleased the Senate passed the bill with relatively few 
changes. This legislation is timely and needed, especially given the 
slowing economy and traditionally difficult time many of our nation's 
disabled veterans have in obtaining quality employment. The men and 
women who have worn a uniform in defense of this country deserve first 
rate employment and training services.
  The bill, as amended, encourages the Federal, State and local 
governments to work together in providing high level, focused, 
employment and training services to veterans and certain spouses of 
veterans. The legislation requires a State to submit a ``plan'' 
describing the manner in which it will furnish outreach and employment 
services, as well as, sets forth conditions for receipt of DOL funds. 
In addition, the legislation encourages improved employment services 
through a program of employee incentive awards for excellent or 
substantially improved performance. Mr. Speaker, I look forward to 
monitoring the implementation and effectiveness of the bill's new 
incentive and accountability provisions, they are important components 
of the overall delivery scheme.
  This measure also provides for ``priority of service'' to veterans 
wishing to participate in other DOL job training programs, and removes 
many outdated and rigid hiring constraints on the States and local 
governments. As a senior member of the House Armed Services Committee, 
I am especially pleased that the legislation broadens eligibility for 
non-competitive appointments of certain veterans within the Federal 
civil service. This provision will allow some veterans who have lost 
their jobs due to the poor economy, or their companies moving overseas 
for cheaper labor costs, to explore alternative career options with the 
Federal government.
  The Jobs for Veterans Act also includes many other important 
provisions that will affect many veterans and their families as they 
seek quality employment services:
  Federal contractors and subcontractors engaged in operations of 
$100,000 or more must take affirmative action to employ and advance 
qualified veterans;
  Revises the funding formula, which DOL provides to States to better 
reflect the proportion of veterans seeking employment in that State;

[[Page 20805]]

  Authorizes the Secretary of Labor to engage in on-going technical 
assistance, including corrective action plans, with respect to State 
and local governments receiving veterans' employment funds;
  Emphasizes that certain disabled veterans may need intensive 
employment services in order to obtain quality employment;
  Mandates that DOL develop and enhance the delivery of employment 
services by providing such services via the Internet and other 
electronic means; and
  Requires a GAO study and report on the implementation and 
effectiveness of the legislation to be delivered after the first two 
program years.
  Mr. Speaker, I urge my colleagues to support this important 
legislation.
  Mr. SIMPSON. Mr. Speaker, we all agree that our fellow Americans who 
have served in our military represent a unique national resource. We 
need to ensure we fulfill our obligation to them.
  H.R. 4015, as amended, the ``Jobs for Veterans Act,'' provides us the 
opportunity to approve legislation that will help our former 
servicemembers obtain long-term, sustained employment.
  The Jobs for Veterans Act essentially creates a new Department of 
Labor delivery system for veterans' employment and training services in 
light of the Government Performance and Results Act, the new One-Stop 
career centers under the Workforce Investment Act of 1998, and the 
availability of self-service job assistance by way of the Internet.
  H.R. 4015, as amended, can be described in four words: incentives, 
results, flexibility, and accountability in the delivery of employment 
and training services for veterans through individual states and 
counties.
  The Subcommittee on Benefits has worked on this legislation for the 
past two and one-half years, and I applaud the hard work of Jack Quinn, 
Bob Filner, and J.D. Hayworth on earlier versions of the bill.
  I also want to recognize the Ranking Member of the Benefits 
Subcommittee, Silvestre Reyes, for his leadership on this issue, as 
well as the Chairman and Ranking Member of the full Committee, Chris 
Smith and Lane Evans, for their support.
  I very much appreciate the support of the Senate Committee on 
Veterans' Affairs in approving the compromise agreement on this 
legislation. Indeed, Committee Chairman Rockefeller and Ranking Member 
Specter have played a leadership role in both strengthening the bill, 
and in Senate passage of it.
  Mr. Speaker, about 215,000 servicemembers are estimated to separate 
from the Armed Forces this fiscal year; I believe this bill is a win-
win situation for both our veterans and our economy.
  I urge my colleagues to support H.R. 4015.
  Mr. SMITH of New Jersey. Mr. Speaker, nationally, only about three in 
ten veterans seeking jobs through the Veterans Employment and Training 
Service (VETS), which is managed by the Department of Labor, are 
finding work. And the work they are finding isn't necessarily in 
career-type jobs.
  This federally-funded program, which is carried out through a 
partnership with the States, must do a better job.
  The Committee's bill, H.R. 4015, as amended, would revamp VETS to 
allow it to work better within the framework of the recent Workforce 
Investment Act.
  One of the bill's most important provisions would require the 
Secretary of Labor to carry our a program of financial and non-
financial performance incentive awards to states to encourage them to 
improve and modernize their employment, training and placement services 
for veterans. The bill would also require any poorly performing states 
to develop and implement corrective action plans.
  Mr. Speaker, I don't want to imply that states are not doing a good 
job. In fact, many are. I am confident that with the enactment of this 
legislation, the states with poor records will be given the flexibility 
and incentives they need to improve. The result will be that many more 
veterans will find good jobs and taxpayers will get a much better 
return on their investment in this program for veterans.
  I want to commend the Chairman of the Benefits Subcommittee, Mike 
Simpson, for the extraordinary effort that led to a bill commanding the 
broad support needed to make this bill happen. I also want to commend 
the previous Chairman, Jack Quinn, the current Ranking Member, 
Sylvestre Reyes, and the former Ranking Member, Bob Filner, for their 
bipartisan support of this important bill.
  I also want to thank the leadership of the Senate Veterans' Affairs 
Committee, Chairman John Rockefeller, and Ranking Republican Arlen 
Specter, for their consideration of the House bill and the many 
improvements they suggested.
  The legislative process has produced a strong bill that we can be 
proud to send to the President. This is a significant step toward 
improving the employment services a grateful Nation offers those 
Americans who have served in military uniform.
  Mr. Speaker, I ask unanimous consent to revise and extend my remarks 
and that all Members may have 5 legislative days in which to revise and 
extend their remarks, and include extraneous material on H.R. 4015, as 
amended.
  For the benefit of my colleagues, I include at this point in the 
Record a joint explanatory statement describing the compromise 
agreement we have reached with the other body:

Joint Explanatory Statement on Senate Amendments To House Amendments to 
                               H.R. 4015

       H.R. 4015, as amended, the Jobs for Veterans Act, reflects 
     a Compromise Agreement the House and Senate Committees on 
     Veterans' Affairs have reached on H.R. 4015, as amended, 
     (``House Bill''). H.R. 4015, as amended, passed the House of 
     Representatives on May 21, 2002. There is no comparable 
     Senate bill.
       The House and Senate Committees on Veterans' Affairs have 
     prepared the following explanation of H.R. 4015, as amended, 
     (``Compromise Agreement''). Clerical corrections, conforming 
     changes, and minor drafting, technical, and clarifying 
     changes are not noted in this document.

 Priority of Service for Veterans in Department of Labor Job Training 
                                Programs


                              Current Law

       Section 4212 of title 38, United States Code, requires that 
     for certain Federal contracts of $25,000 or more, contractors 
     and subcontractors take affirmative action to employ and 
     advance in employment ``special disabled veterans'' (veterans 
     with serious employment handicaps or disability ratings of 30 
     percent or higher), Vietnam-era veterans, recently-separated 
     veterans, and other veterans who are ``preference eligible.'' 
     Preference eligible veterans generally are veterans who have 
     served during wartime or in a campaign or expedition for 
     which a campaign badge has been authorized.
       Under section 4214 of title 38, United States Code, the 
     Office of Personnel Management administers the Veterans 
     Readjustment Appointment (``VRA'') authority program to 
     promote employment and job advancement opportunities within 
     the Federal government for disabled veterans, certain 
     veterans of the Vietnam era, and veterans of the post-Vietnam 
     era who are qualified for such employment and advancement. In 
     general: (1) such appointments may be made up to and 
     including the GS-11 level or its equivalent; (2) a veteran 
     shall be eligible for such an appointment without regard to 
     the veteran's number of years of education; (3) a veteran who 
     receives VA disability compensation shall be given preference 
     for a VRA appointment over other veterans; (4) upon receipt 
     of a VRA appointment, a veteran may receive training or 
     education if the veteran has less than 15 years of education; 
     and (5) upon successful completion of the prescribed 
     probation period, a veteran may acquire competitive status. 
     Except for a veteran who has a service-connected disability 
     rated at 30 percent or more, a veteran of the Vietnam era may 
     receive a VRA appointment only during the period ending 10 
     years after the date of the veteran's last separation from 
     active duty or December 31, 1995, whichever is later.


                               house bill

       Section 2 of H.R. 4015 would create a new section 4215 
     within chapter 42 of title 38, United States Code, to provide 
     priority of service (over non-veterans) to veterans and 
     spouses of certain veterans for the receipt of employment, 
     training, and placement services in any qualified job 
     training program directly funded, in whole or in part, by the 
     Department of Labor, notwithstanding any other provision of 
     law. The Secretary of Labor would be authorized to establish 
     priorities among such covered persons to take into account 
     the needs of disabled veterans and such other factors as the 
     Secretary determines appropriate.
       With respect to Federal contracts and subcontracts in the 
     amount of $100,000 or more, section 2 would provide that a 
     contractor and any subcontractor take affirmative action to 
     employ and advance in employment qualified veterans. This 
     would include immediate listing of employment openings for 
     such contracts through the appropriate employment delivery 
     system.
       Section 2 would also change the Veterans Readjustment 
     Appointment (``VRA'') to the ``Veterans Recruitment 
     Appointment'' authority and change eligibility for these 
     appointments from Vietnam era and post-Vietnam era veterans 
     to qualified covered veterans (see below) within the 10-year 
     period that begins on the date of the veteran's last 
     discharge; the 10-year period would not apply to a veteran 
     with a service-connected disability of 30 percent or more.
       Finally, section 2 would make eligible as ``covered 
     veterans'' for Federal contracts and subcontracts and the 
     Veterans Recruitment Appointment authority: disabled 
     veterans; veterans who served on active duty during a war or 
     in a campaign or expedition for which

[[Page 20806]]

     a campaign badge has been authorized; veterans who, while 
     serving on active duty in the Armed Forces, participated in a 
     United States military operation for which an Armed Forces 
     service medal was awarded; or veterans discharged or released 
     from military service within the past three years.


                          compromise agreement

       Section 2 of the Compromise Agreement follows the House 
     language with amendments.
       The agreement would delete the 10-year eligibility period 
     for a VRA appointment, in light of the broader Veterans 
     Recruitment (not ``Readjustment'') Appointment authority 
     embodied in the Compromise Agreement.
       The Committees note that the definition of the term 
     ``covered person'' for priority of service in Department of 
     Labor veterans job training programs includes both veterans 
     and certain spouses and surviving spouses of deceased 
     veterans. Specifically, the provision would include a 
     surviving spouse of a veteran who died as a result of a 
     service-connected disability, including the surviving spouse 
     of a veteran who died in the active military, naval or air 
     service, and the surviving spouse of a veteran who was 
     totally disabled at the time of death. The provision would 
     also apply to spouses of active duty servicemembers who have 
     for a period of at least 90 days been missing in action, 
     captured by a hostile force or forcibly detained or interned 
     in line of duty by a foreign government and the spouses of 
     veterans who are totally disabled due to a service-connected 
     disability.

 Financial and Non-Financial Performance Incentive Awards for Quality 
         Veterans Employment, Training, and Placement Services


                              current law

       No provision.


                               House bill

       Section 3 of H.R. 4015 would create a new section 4112 
     within chapter 41 of title 38, United States Code, to require 
     the Secretary to carry out a program of performance incentive 
     awards to States to encourage improvement and modernization 
     of employment, training and placement services to veterans. 
     The Secretary would provide greater amounts to States that 
     furnish the highest quality of services, but also would 
     provide awards to States that have made significant 
     improvements in services. States could use such awards to 
     hire additional State veterans' employment and training staff 
     or for such other purposes relating to these services that 
     the Secretary may approve. Awards would be obligated by the 
     State during the program year in which the award was received 
     and the subsequent program year.
       Section 3 also would authorize additional funds to be 
     appropriated for the Secretary to carry out the program of 
     performance incentive awards in the following amounts: $10 
     million for the program year beginning in fiscal year 2004; 
     $25 million for the program year beginning in fiscal year 
     2005; $50 million for the program year beginning in fiscal 
     year 2006; $75 million for the program year beginning in 
     fiscal year 2007; and $100 million for the program year 
     beginning in fiscal year 2008.


                          compromise agreement

       Section 3 of the Compromise Agreement would establish a 
     system of financial and non-financial incentive awards to be 
     administered by the States, based on criteria established by 
     the Secretary in consultation with the States. Disabled 
     Veterans Outreach Program Specialists (``DVOP''), Local 
     Veterans Employment Representatives (``LVER''), Workforce 
     Investment Act (``WIA''), and Wagner-Peyser staffs would be 
     eligible for each award. Beginning in program years during or 
     after fiscal year 2004, the Secretary would be required to 
     identify and assign one percent of the annual grant to each 
     State for the State to use as a performance incentive 
     financial award (see section 4). Under this section, each 
     State would be required to describe how it would administer 
     this award in its annual grant application to the Secretary 
     (see section 4). States would also administer the non-
     financial performance incentive award program based on 
     criteria established by the Secretary.
       The Committees intend that the Secretary's criteria be 
     broad in order to give States maximum flexibility in the 
     manner chosen to recognize employees for excellence in 
     service delivery to veterans or improvements thereto. The 
     Committees also intend that States use Salary and Expense 
     (S&E) funds to pay for such items as employee recognition 
     plaques and other modest forms of recognition, as part of the 
     non-financial performance incentive awards program.

  Refinement of Job Training and Placement Functions of the Department


                              current law

       Chapter 41 of title 38, United States Code, establishes 
     policies governing the administration of veterans' employment 
     and training services by the States, as funded by Department 
     of Labor funds.
       Section 4101 of title 38, United States Code, defines terms 
     used in the chapter, such as ``disabled veteran,'' ``eligible 
     person,'' and ``local employment service office.''
       In section 4102, Congress declares as its intent and 
     purpose that there shall be an effective: (1) job and 
     training counseling service program; (2) employment placement 
     service program; and (3) job training placement service 
     program for eligible veterans and eligible persons.
       Section 4102A specifies the job duties of the Assistant 
     Secretary of Labor for Veterans' Employment and Training 
     (``ASVET'') and Regional Administrators for Veterans' 
     Employment and Training (``RAVET''). The RAVET is required to 
     be a veteran. The Deputy Assistant Secretary for Veterans 
     Employment and Training (``DASVET'') is also required to be a 
     veteran. The ASVET need not be a veteran.
       Section 4103 prescribes in detail the 15 job duties of 
     Directors (``DVET'') and Assistant Directors (``ADVET'') of 
     Veterans' Employment and Training. It also requires that the 
     Secretary of Labor assign to each State one ADVET for every 
     250,000 veterans and eligible persons in the State veteran's 
     population.
       Section 4103A prescribes the appointment of one DVOP for 
     every 7,400 veterans who are between the ages of 20 and 64 
     residing in each State. This section also requires that each 
     DVOP be a veteran and specifies that preference be given to 
     qualified disabled veterans in filling these positions. It 
     prescribes where a DVOP is to be stationed in furnishing 
     services and the specific functions that DVOP perform.
       Section 4104 requires that in any fiscal year funding be 
     available to the States to employ 1,600 full-time LVERs. This 
     section prescribes that funding furnished to the States for 
     LVERs shall be assigned in each State on January 1, 1987, 
     plus one additional LVER per State. This section also 
     specifies in detail the manner in which the 1,600 LVERs shall 
     be allocated to the States, and the manner in which the 
     States shall assign LVERs to local employment service offices 
     based on the number of veterans and eligible persons who 
     register for assistance. This section also requires that in 
     appointing LVERs, preference shall be given to qualified 
     eligible veterans or eligible persons. Preference is accorded 
     first to qualified eligible veterans, and then to qualified 
     eligible persons. Lastly, this section prescribes the 
     specific functions that LVERs shall perform.
       Section 4104A requires that each State employment agency 
     develop and apply DVOP and LVER programs. It requires the 
     Secretary to furnish prototype standards to the States. This 
     section also requires DVETs and ADVETs to furnish appropriate 
     assistance to States in developing and implementing such 
     standards.
       Section 4106 requires the Secretary to estimate the funds 
     necessary for the proper and efficient administration of 
     chapters 41, 42, and 43 of title 38, United States Code. This 
     section authorizes such sums as may be necessary for 
     administration of chapter 41 services, including the National 
     Veterans' Employment and Training Services Institute 
     (``NVETSI'').
       In general, section 4107 of title 38, United States Code, 
     requires the Secretary of Labor to establish and carry out 
     various administrative controls to ensure veterans and 
     eligible persons receive job placement, job training, or some 
     other form of assistance such as individual job development 
     or employment counseling services. This section also requires 
     the Secretary to submit to the Committees on Veterans' 
     Affairs of the House and Senate not later than February 1 of 
     each year, a report on the success during the previous 
     program year of the Department of Labor (``DOL'') and State 
     employment service agencies in furnishing veterans' 
     employment and training services.
       Section 4109 requires that the Secretary make available 
     such funds as may be necessary to operate a NVETSI for 
     training DVOP, LVER, DVET, ADVET, and RAVET personnel.


                               house bill

       Section 4 of H.R. 4015 would amend sections 4102A, 4103, 
     4103A, 4104, and 4109 of title 38, United States Code.
       Section 4 of H.R. 4015 would amend current law section 
     4102A, of title 38, United States Code. The ASVET would be 
     required to be a veteran. It also would impose new 
     qualifications for the position of DASVET. In doing so, it 
     would make this position a career federal civil service 
     position. The individual appointed to this position would be 
     required to have at least five years of continuous Federal 
     service in the executive branch immediately preceding 
     appointment as Deputy Assistant Secretary, and to be a 
     veteran.
       This section would set forth conditions for receipt of 
     funding by States to include a requirement that a State 
     submit an application for a grant or contract describing the 
     manner in which the State would furnish employment, training, 
     and placement services. A service delivery plan would include 
     a description of the DVOP and LVER duties assigned by the 
     State and other matters.
       Section 4 would revise the methods by which the Secretary 
     furnishes funds to a State. It would require the Secretary to 
     make funds available for a fiscal year to each State in 
     proportion to the number of veterans seeking employment using 
     such criteria as the Secretary may establish in regulations. 
     Under this section, the proportion of funding would reflect 
     the ratio of the total number of veterans residing in the 
     State who

[[Page 20807]]

     are seeking employment to the total number of veterans 
     seeking employment in all States.
       Section 4 also would require:
       1. A State to annually submit to the Secretary of Labor an 
     application for a grant or contract that includes a plan 
     describing the manner in which the State would furnish 
     employment, training, and placement services, with a 
     description of DVOP and LVER duties assigned by the State. 
     The plan would also be required to describe the manner in 
     which DVOPs and LVERs would be integrated into the employment 
     service delivery systems in the State, the veteran population 
     to be served, and additional information the Secretary might 
     require;
       2. The Secretary to make available to each State based on 
     an application approved by the Secretary, an amount of 
     funding in proportion to the number of veterans seeking 
     employment using such criteria as the Secretary might 
     establish in regulation, including civilian labor force and 
     unemployment data;
       3. The Secretary to phase-in such annual funding over the 
     three fiscal year-periods that begin on October 1, 2002;
       4. The Secretary to establish minimum funding levels and 
     hold-harmless criteria in administering funding to the 
     States;
       5. The State to develop and implement a corrective action 
     plan to be submitted to the Secretary when a State has an 
     entered-employment rate that the Secretary determines is 
     deficient for the preceding year;
       6. The Secretary to establish by regulation a uniform 
     national threshold entered-employment rate for a program year 
     by which determinations of deficiency might be made. The 
     Secretary would be required to take into account the 
     applicable annual unemployment data for the State and 
     consider other factors, such as prevailing economic 
     conditions, that affect performance of individuals providing 
     employment, training, and placement services in the State;
       7. The State to notify the Secretary on an annual basis of, 
     and provide a supporting rationale for, each non-veteran who 
     is employed as a DVOP and LVER for a period in excess of six 
     months;
       8. The Secretary to assign to each region a representative 
     of the Veterans' Employment and Training Service (``VETS'') 
     to serve as RAVET. The RAVET would be required to be a 
     veteran; and
       9. The ASVET to establish and implement a comprehensive 
     accountability system to measure the performance of delivery 
     systems in a State. The accountability system would be 
     required to be (1) consistent with State performance measures 
     applicable under section 136(b) of the Workforce Investment 
     Act of 1998, and (2) appropriately weighted to provide 
     special consideration for veterans requiring intensive 
     services and for veterans who enroll in readjustment 
     counseling services furnished by the Department of Veterans 
     Affairs.
       Supervisory Personnel. Section 4 would also amend current 
     section 4103 of title 38, United States Code, to authorize 
     the Secretary to assign as supervisory personnel such 
     representatives of VETS as the Secretary determines 
     appropriate. It would also replace the specific requirements 
     for appointment of ADVET with a more flexible authority to 
     appoint supervisory personnel.
       Disabled Veterans Outreach Program Specialists. This 
     section would amend current section 4103A of title 38, United 
     States Code, to require, subject to approval by the 
     Secretary, that States employ a sufficient number of full or 
     part-time DVOPs to carry out intensive services to meet the 
     employment needs of special disabled veterans, other disabled 
     veterans and other eligible veterans. It would require to the 
     maximum extent practicable, that such employees be qualified 
     veterans. Preference would be given to qualified disabled 
     veterans.
       Local Veterans Employment Specialists. Section 4 would 
     amend current law section 4104 of title 38, United States 
     Code, by requiring, subject to approval by the Secretary, 
     that a State employ such full and part-time LVERs as the 
     State determines appropriate and efficient to carry out 
     employment, training and placement services. It would 
     require, to the maximum extent practicable, that such 
     employees be qualified veterans.
       This section would require that each LVER be 
     administratively responsible to the manager of the employment 
     service delivery system. Under this section, the LVER would 
     provide reports, not less frequently than quarterly, to the 
     manager of such office and to the DVET for the State 
     regarding compliance with Federal law and regulations with 
     respect to special services and priorities for eligible 
     veterans and eligible persons.
       National Veterans' Employment and Training Services 
     Institute. Additionally, section 4 would amend current 
     section 4109 of title 38, United States Code, to clarify the 
     authority of the NVETSI to enter into contracts or agreements 
     with departments or agencies of the United States or of a 
     State, or with other organizations, to carry out training in 
     providing veterans' employment, training, and placement 
     services. Further, it would require that each annual budget 
     submission include a separate listing of the amount of 
     funding proposed for NVETSI.
       Finally, section 4 would require that the Secretary, within 
     18 months of enactment, enhance the delivery of services by 
     providing ``one-stop'' services and assistance to covered 
     persons by way of the Internet and by other electronic means.


                          Compromise Agreement

       Section 4 of the Compromise Agreement follows the House 
     language with amendments.
       Under this section, the individual appointed as DASVET 
     would be required to have at least five years of service in a 
     management position as a Federal civil service employee or 
     comparable service in a management position in the Armed 
     Forces preceding appointment as DASVET.
       The annual grant application plan submitted by the States 
     would have an additional requirement to describe the manner 
     in which the respective States would administer the 
     performance incentives established in section 3. The 
     Committees note that other aspects of the State plan and 
     grant application requirements contained in the House-passed 
     bill, such as describing DVOP and LVER duties, are retained.
       The Compromise Agreement clarifies that State corrective 
     action plans would be submitted to the Secretary for 
     approval, and if approved, would be expeditiously 
     implemented. If the Secretary disapproved a corrective action 
     plan, the Secretary would be required to take such steps as 
     would be necessary for the State to implement corrective 
     actions.
       The Secretary would also be required to identify and assign 
     one percent of the funding grant to each State to establish 
     financial performance incentive awards. Further, the 
     Secretary would have on-going authority to furnish technical 
     assistance to any State that the Secretary determines has, or 
     may have, a deficient entered-employment rate, including 
     assistance in developing a corrective action plan.
       The Committees intend that the Secretary should offer 
     technical assistance in an anticipatory way, so as to avoid 
     deficient performance.
       The Compromise Agreement would require that the DVET be a 
     bona fide resident of the State for two years to qualify for 
     such a position.
       Lastly, the Compromise Agreement does not require that the 
     ASVET, DASVET, RVET, DVET, or ADVET be veterans. The 
     Committees encourage the appointment of veterans to these 
     positions, but do not believe a statutory requirement is 
     necessary.
       The amendments made by subsection (a) revising department 
     level senior officials and functions, and subsection (b) 
     revising statutorily-defined duties of DVOP and LVERs, would 
     take effect on the date of enactment of this Act, and apply 
     to program and fiscal years under chapter 41 of title 38, 
     United States Code, beginning on or after such date.

 Additional Improvements in Veterans' Employment and Training Services


                              Current Law

       Sections 4102, 4106(a), 4107(a), 4107(c)(1), and section 
     4109(a) of title 38, United States Code, refer to terms such 
     as ``job and job training counseling service program.'' 
     ``proper counseling,'' ``employment counseling services,'' 
     ``the number counseled,'' and ``counseling,'' respectively, 
     in describing services available to veterans and eligible 
     persons under this chapter.
       Section 4101(7) of title 38, United States Code, defines 
     the term ``local employment service office'' as a service 
     delivery point which has an intrinsic management structure 
     and at which employment services are offered in accordance 
     with the Wagner-Peyser Act.
       Section 4107(c)(1) of title 38, United States Code, defines 
     ``veterans of the Vietnam era'' as a group which the 
     Secretary must address with respect to various employment and 
     training services in the annual report to the Committees on 
     Veterans' Affairs. Section 4107(c)92) requires submission in 
     the report of data on the ``job placement rate'' for veterans 
     and eligible persons.


                               House Bill

       Section 5 of H.R. 4015 would substitute the words 
     ``intensive services'' for the word ``counseling'' throughout 
     chapter 41 of title 38, United States Code, so as to make the 
     chapter consistent with section 134(d)(3) of the Workforce 
     Investment Act of 1998, Public Law 105-220. This section 
     would also add programs carried out by the VETS to ease 
     transition of servicemembers to civilian careers as a new 
     program the Secretary would administer.
       This section of the bill would make a definitional change 
     so as to replace ``local employment service office'' and its 
     current-law definition with ``employment service delivery 
     system,'' The latter term would be redefined as a service 
     delivery system at which or through which labor exchange 
     services, including employment, training, and placement 
     services, are offered in accordance with the Wagner-Peyser 
     Act.
       This section also would replace ``job placement rate'' with 
     ``the rate of entered employment (as determined in a manner 
     consistent with State performance measure applicable under 
     section 136(b) of the Workforce Investment Act of 1998).'' 
     Further, with respect to the Secretary's annual report, it

[[Page 20808]]

     would replace ``veterans of the Vietnam era'' and ``eligible 
     persons registered for assistance'' with ''eligible persons, 
     recently separated veterans (as defined in section 4211(6) of 
     title 38), and servicemembers transitioning to civilian 
     careers who are registered for assistance,''Lastly, section 5 
     would add two additional requirements to the Secretary's 
     annual report submitted to the Committees on Veterans' 
     Affairs of the House and Senate. First, the report must 
     include information on the operation during the preceding 
     program year of the program of performance incentive awards 
     for quality employment services under section 4112 of this 
     title, including an analysis of the amount of incentives 
     distributed to each State and the rational for such 
     distribution. Second, a report would be required on the 
     ``performance of States and organizations and entities 
     carrying out employment, training, and placement services 
     under this chapter, as measured by revised performance 
     criteria. In the case of a State that the Secretary 
     determines has not met the minimum standard of performance 
     established by the Secretary, the Secretary would be required 
     to include an analysis of the extent and reasons for the 
     State's failure to meet that minimum standard, together with 
     the State's plan for corrective action during the succeeding 
     year.''


                          Compromise Agreement

       Section 5 of the Compromise Agreement follows the House 
     language with an amendment. The Secretary's annual report to 
     the Committees on Veterans' Affairs of the House and Senate 
     would be required to include information on the operation 
     during the preceding program year of performance incentive 
     awards for quality employment services administered through 
     the States. The report would not require an analysis of the 
     amount of incentives distributed to each State and the 
     rationale for such distribution because each State's DVOP/
     LVER grant would identify and assign one percent of the grant 
     for use by the State for the financial incentive awards.

    Committee To Raise Employer Awareness of Skills of Veterans and 
                      Benefits or Hiring Veterans


                              Current Law

       No provision.


                               House Bill

       Section 6 of H.R. 4015 would authorize $3 million to be 
     appropriated to the Secretary of labor from the Employment 
     Security Administration account in the Unemployment Trust 
     Fund for each of fiscal years 2003 through 2005 to establish 
     within the Department of Labor the President's National Hire 
     Veterans Committee. The Committee would furnish information 
     to employers with respect to the training and skills of 
     veterans and disabled veterans, and with respect to the 
     advantages afforded employers by hiring veterans. The 
     Secretary of Labor would provide staff and administrative 
     support to the Committee to assist it in carrying out its 
     duties under this section. Upon request of the Committee, the 
     head of any Federal department or agency would be authorized 
     to detail staff on a non-reimbursable basis. The Committee 
     would also have the authority to contract with government and 
     private agencies to furnish information to employers. The 
     Committee would terminate on December 31, 2005.


                          Compromise agreement

       Section 6 of the Compromise Agreement contains the House 
     language.

      Sense of Congress Commending Veterans and Military Service 
                             Organizations


                              current Law

       No provision.


                               House Bill

       Section 7 of H.R. 4015 would express the sense of Congress 
     commending veterans and military service organizations, and 
     encouraging them to provide job placement assistance to 
     veterans who are job-ready by making personal computers 
     available to them with access to electronic job placement 
     services and programs.


                          Compromise Agreement

       The Compromise Agreement does not include this section.

             Report on Implementation of Employment Reforms


                              Current Law

       No provision.


                               House Bill

       Section 8 of H.R. 4015 would authorize $1 million for the 
     Secretary of Labor to enter into a contract with an 
     appropriate organization or entity to conduct an 18-month 
     study to quantify the economic benefit to the United States 
     attributable to the provision of employment and training 
     services provided under chapter 41 of title 38, United States 
     Code, in helping veterans to attain long-term, sustained 
     employment.


                          Compromise Agreement

       Section 7 of the compromise Agreement would direct the 
     Comptroller General of the United States to conduct a study 
     on the implementation by the Secretary of Labor of the 
     provisions of this title during the program years that begin 
     during fiscal years 2003 and 2004. The study would include an 
     assessment of the effect of this title on employment, 
     training, and placement services furnished to veterans. Not 
     later than six months after the conclusion of the program 
     year that begins during fiscal year 2004, the Comptroller 
     General would submit to Congress a report on the conducted 
     study. Under this section, the report would include 
     recommendations for legislation or administrative action.
       This is a bipartisan bill, and I urge Members to support 
     it.


 Concurred in Senate Amendment to House Amendment to Senate Amendments

  H.R. 3253, to amend title 38, United States Code, to provide for the 
establishment within the Department of Veterans Affairs of improved 
emergency medical preparedness, research, and education programs to 
combat terrorism, and for other purposes.

       Senate amendment to House amendment to Senate amendments:
       In lieu of the matter proposed to be inserted by the House 
     amendment to the text of the bill, insert:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Department of Veterans 
     Affairs Emergency Preparedness Act of 2002''.

     SEC. 2. ESTABLISHMENT OF MEDICAL EMERGENCY PREPAREDNESS 
                   CENTERS AT DEPARTMENT OF VETERANS AFFAIRS 
                   MEDICAL CENTERS.

       (a) In General.--(1) Subchapter II of chapter 73 of title 
     38, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 7325. Medical emergency preparedness centers

       ``(a) Establishment of Centers.--(1) The Secretary shall 
     establish four medical emergency preparedness centers in 
     accordance with this section. Each such center shall be 
     established at a Department medical center and shall be 
     staffed by Department employees.
       ``(2) The Under Secretary for Health shall be responsible 
     for supervising the operation of the centers established 
     under this section. The Under Secretary shall provide for 
     ongoing evaluation of the centers and their compliance with 
     the requirements of this section.
       ``(3) The Under Secretary shall carry out the Under 
     Secretary's functions under paragraph (2) in consultation 
     with the Assistant Secretary of Veterans Affairs with 
     responsibility for operations, preparedness, security, and 
     law enforcement functions.
       ``(b) Mission.--The mission of the centers shall be as 
     follows:
       ``(1) To carry out research on, and to develop methods of 
     detection, diagnosis, prevention, and treatment of injuries, 
     diseases, and illnesses arising from the use of chemical, 
     biological, radiological, incendiary or other explosive 
     weapons or devices posing threats to the public health and 
     safety.
       ``(2) To provide education, training, and advice to health 
     care professionals, including health care professionals 
     outside the Veterans Health Administration, through the 
     National Disaster Medical System established pursuant to 
     section 2811(b) of the Public Health Service Act (42 U.S.C. 
     300hh-11(b)) or through interagency agreements entered into 
     by the Secretary for that purpose.
       ``(3) In the event of a disaster or emergency referred to 
     in section 1785(b) of this title, to provide such laboratory, 
     epidemiological, medical, or other assistance as the 
     Secretary considers appropriate to Federal, State, and local 
     health care agencies and personnel involved in or responding 
     to the disaster or emergency.
       ``(c) Selection of Centers.--(1) The Secretary shall select 
     the sites for the centers on the basis of a competitive 
     selection process. The Secretary may not designate a site as 
     a location for a center under this section unless the 
     Secretary makes a finding under paragraph (2) with respect to 
     the proposal for the designation of such site. To the maximum 
     extent practicable, the Secretary shall ensure the geographic 
     dispersal of the sites throughout the United States. Any such 
     center may be a consortium of efforts of more than one 
     medical center.
       ``(2) A finding by the Secretary referred to in paragraph 
     (1) with respect to a proposal for designation of a site as a 
     location of a center under this section is a finding by the 
     Secretary, upon the recommendations of the Under Secretary 
     for Health and the Assistant Secretary with responsibility 
     for operations, preparedness, security, and law enforcement 
     functions, that the facility or facilities submitting the 
     proposal have developed (or may reasonably be anticipated to 
     develop) each of the following:
       ``(A) An arrangement with a qualifying medical school and a 
     qualifying school of public health (or a consortium of such 
     schools) under which physicians and other persons in the 
     health field receive education and training through the 
     participating Department medical facilities so as to provide 
     those persons with training in the detection, diagnosis, 
     prevention, and treatment of injuries, diseases, and 
     illnesses induced by exposures to chemical and biological 
     substances, radiation, and incendiary or other explosive 
     weapons or devices.
       ``(B) An arrangement with a graduate school specializing in 
     epidemiology under which students receive education and 
     training in epidemiology through the participating Department 
     facilities so as to provide such students with training in 
     the epidemiology of contagious and infectious diseases and 
     chemical and radiation poisoning in an exposed population.

[[Page 20809]]

       ``(C) An arrangement under which nursing, social work, 
     counseling, or allied health personnel and students receive 
     training and education in recognizing and caring for 
     conditions associated with exposures to toxins through the 
     participating Department facilities.
       ``(D) The ability to attract scientists who have made 
     significant contributions to the development of innovative 
     approaches to the detection, diagnosis, prevention, or 
     treatment of injuries, diseases, and illnesses arising from 
     the use of chemical, biological, radiological, incendiary or 
     other explosive weapons or devices posing threats to the 
     public health and safety.
       ``(3) For purposes of paragraph (2)(A)--
       ``(A) a qualifying medical school is an accredited medical 
     school that provides education and training in toxicology and 
     environmental health hazards and with which one or more of 
     the participating Department medical centers is affiliated; 
     and
       ``(B) a qualifying school of public health is an accredited 
     school of public health that provides education and training 
     in toxicology and environmental health hazards and with which 
     one or more of the participating Department medical centers 
     is affiliated.
       ``(d) Research Activities.--Each center shall conduct 
     research on improved medical preparedness to protect the 
     Nation from threats in the area of that center's expertise. 
     Each center may seek research funds from public and private 
     sources for such purpose.
       ``(e) Dissemination of Research Products.--(1) The Under 
     Secretary for Health and the Assistant Secretary with 
     responsibility for operations, preparedness, security, and 
     law enforcement functions shall ensure that information 
     produced by the research, education and training, and 
     clinical activities of centers established under this section 
     is made available, as appropriate, to health-care providers 
     in the United States. Dissemination of such information shall 
     be made through publications, through programs of continuing 
     medical and related education provided through regional 
     medical education centers under subchapter VI of chapter 74 
     of this title, and through other means. Such programs of 
     continuing medical education shall receive priority in the 
     award of funding.
       ``(2) The Secretary shall ensure that the work of the 
     centers is conducted in close coordination with other Federal 
     departments and agencies and that research products or other 
     information of the centers shall be coordinated and shared 
     with other Federal departments and agencies.
       ``(f) Coordination of Activities.--The Secretary shall take 
     appropriate actions to ensure that the work of each center is 
     carried out--
       ``(1) in close coordination with the Department of Defense, 
     the Department of Health and Human Services, and other 
     departments, agencies, and elements of the Government charged 
     with coordination of plans for United States homeland 
     security; and
       ``(2) after taking into consideration applicable 
     recommendations of the working group on the prevention, 
     preparedness, and response to bioterrorism and other public 
     health emergencies established under section 319F(a) of the 
     Public Health Service Act (42 U.S.C. 247d-6(a)) or any other 
     joint interagency advisory group or committee designated by 
     the President or the President's designee to coordinate 
     Federal research on weapons of mass destruction.
       ``(g) Assistance to Other Agencies.--The Secretary may 
     provide assistance requested by appropriate Federal, State, 
     and local civil and criminal authorities in investigations, 
     inquiries, and data analyses as necessary to protect the 
     public safety and prevent or obviate biological, chemical, or 
     radiological threats.
       ``(h) Detail of Employees From Other Agencies.--Upon 
     approval by the Secretary, the Director of a center may 
     request the temporary assignment or detail to the center, on 
     a nonreimbursable basis, of employees from other departments 
     and agencies of the United States who have expertise that 
     would further the mission of the center. Any such employee 
     may be so assigned or detailed on a nonreimbursable basis 
     pursuant to such a request.
       ``(i) Funding.--(1) Amounts appropriated for the activities 
     of the centers under this section shall be appropriated 
     separately from amounts appropriated for the Department for 
     medical care.
       ``(2) In addition to funds appropriated for a fiscal year 
     specifically for the activities of the centers pursuant to 
     paragraph (1), the Under Secretary for Health shall allocate 
     to such centers from other funds appropriated for that fiscal 
     year generally for the Department medical care account and 
     the Department medical and prosthetics research account such 
     amounts as the Under Secretary determines appropriate to 
     carry out the purposes of this section. Any determination by 
     the Under Secretary under the preceding sentence shall be 
     made in consultation with the Assistant Secretary with 
     responsibility for operations, preparedness, security, and 
     law enforcement functions.
       ``(3) There are authorized to be appropriated for the 
     centers under this section $20,000,000 for each of fiscal 
     years 2003 through 2007.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     7324 the following new item:

``7325. Medical emergency preparedness centers.''.

       (b) Peer Review for Designation of Centers.--(1) In order 
     to assist the Secretary of Veterans Affairs and the Under 
     Secretary of Veterans Affairs for Health in selecting sites 
     for centers under section 7325 of title 38, United States 
     Code, as added by subsection (a), the Under Secretary shall 
     establish a peer review panel to assess the scientific and 
     clinical merit of proposals that are submitted to the 
     Secretary for the designation of such centers. The peer 
     review panel shall be established in consultation with the 
     Assistant Secretary of Veterans Affairs with responsibility 
     for operations, preparedness, security, and law enforcement 
     functions.
       (2) The peer review panel shall include experts in the 
     fields of toxicological research, infectious diseases, 
     radiology, clinical care of patients exposed to such hazards, 
     and other persons as determined appropriate by the Secretary. 
     Members of the panel shall serve as consultants to the 
     Department of Veterans Affairs.
       (3) The panel shall review each proposal submitted to the 
     panel by the officials referred to in paragraph (1) and shall 
     submit to the Under Secretary for Health its views on the 
     relative scientific and clinical merit of each such proposal. 
     The panel shall specifically determine with respect to each 
     such proposal whether that proposal is among those proposals 
     which have met the highest competitive standards of 
     scientific and clinical merit.
       (4) The panel shall not be subject to the Federal Advisory 
     Committee Act (5 U.S.C. App.).

     SEC. 3. EDUCATION AND TRAINING PROGRAMS ON MEDICAL RESPONSES 
                   TO CONSEQUENCES OF TERRORIST ACTIVITIES.

       (a) In General.--(1) Subchapter II of chapter 73 of title 
     38, United States Code, is amended by adding after section 
     7325, as added by section 2(a)(1), the following new section:

     ``Sec. 7326. Education and training programs on medical 
       response to consequences of terrorist activities

       ``(a) Education Program.--The Secretary shall carry out a 
     program to develop and disseminate a series of model 
     education and training programs on the medical responses to 
     the consequences of terrorist activities.
       ``(b) Implementing Official.--The program shall be carried 
     out through the Under Secretary for Health, in consultation 
     with the Assistant Secretary of Veterans Affairs with 
     responsibility for operations, preparedness, security, and 
     law enforcement functions.
       ``(c) Content of Programs.--The education and training 
     programs developed under the program shall be modelled after 
     programs established at the F. Edward Hebert School of 
     Medicine of the Uniformed Services University of the Health 
     Sciences and shall include, at a minimum, training for health 
     care professionals in the following:
       ``(1) Recognition of chemical, biological, radiological, 
     incendiary, or other explosive agents, weapons, or devices 
     that may be used in terrorist activities.
       ``(2) Identification of the potential symptoms of exposure 
     to those agents.
       ``(3) Understanding of the potential long-term health 
     consequences, including psychological effects, resulting from 
     exposure to those agents, weapons, or devices.
       ``(4) Emergency treatment for exposure to those agents, 
     weapons, or devices.
       ``(5) An appropriate course of followup treatment, 
     supportive care, and referral.
       ``(6) Actions that can be taken while providing care for 
     exposure to those agents, weapons, or devices to protect 
     against contamination, injury, or other hazards from such 
     exposure.
       ``(7) Information on how to seek consultative support and 
     to report suspected or actual use of those agents.
       ``(d) Potential Trainees.--In designing the education and 
     training programs under this section, the Secretary shall 
     ensure that different programs are designed for health-care 
     professionals in Department medical centers. The programs 
     shall be designed to be disseminated to health professions 
     students, graduate health and medical education trainees, and 
     health practitioners in a variety of fields.
       ``(e) Consultation.--In establishing education and training 
     programs under this section, the Secretary shall consult with 
     appropriate representatives of accrediting, certifying, and 
     coordinating organizations in the field of health professions 
     education.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     7325, as added by section 2(a)(2), the following new item:

``7326. Education and training programs on medical response to 
              consequences of terrorist activities.''.

       (b) Effective Date.--The Secretary of Veterans Affairs 
     shall implement section 7326 of title 38, United States Code, 
     as added by subsection (a), not later than the end of the 90-
     day period beginning on the date of the enactment of this 
     Act.

     SEC. 4. AUTHORITY TO FURNISH HEALTH CARE DURING MAJOR 
                   DISASTERS AND MEDICAL EMERGENCIES.

       (a) In General.--(1) Subchapter VIII of chapter 17 of title 
     38, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1785. Care and services during certain disasters and 
       emergencies

       ``(a) Authority To Provide Hospital Care and Medical 
     Services.--During and immediately following a disaster or 
     emergency referred to in subsection (b), the Secretary may 
     furnish hospital care and medical services to individuals 
     responding to, involved in, or otherwise affected by that 
     disaster or emergency.
       ``(b) Covered Disasters and Emergencies.--A disaster or 
     emergency referred to in this subsection is any disaster or 
     emergency as follows:

[[Page 20810]]

       ``(1) A major disaster or emergency declared by the 
     President under the Robert B. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(2) A disaster or emergency in which the National 
     Disaster Medical System established pursuant to section 
     2811(b) of the Public Health Service Act (42 U.S.C. 300hh-
     11(b)) is activated by the Secretary of Health and Human 
     Services under paragraph (3)(A) of that section or as 
     otherwise authorized by law.
       ``(c) Applicability to Eligible Individuals Who Are 
     Veterans.--The Secretary may furnish care and services under 
     this section to an individual described in subsection (a) who 
     is a veteran without regard to whether that individual is 
     enrolled in the system of patient enrollment under section 
     1705 of this title.
       ``(d) Reimbursement From Other Federal Departments and 
     Agencies.--(1) The cost of any care or services furnished 
     under this section to an officer or employee of a department 
     or agency of the United States other than the Department or 
     to a member of the Armed Forces shall be reimbursed at such 
     rates as may be agreed upon by the Secretary and the head of 
     such department or agency or the Secretary concerned, in the 
     case of a member of the Armed Forces, based on the cost of 
     the care or service furnished.
       ``(2) Amounts received by the Department under this 
     subsection shall be credited to the Medical Care Collections 
     Fund under section 1729A of this title.
       ``(e) Report to Congressional Committees.--Within 60 days 
     of the commencement of a disaster or emergency referred to in 
     subsection (b) in which the Secretary furnishes care and 
     services under this section (or as soon thereafter as is 
     practicable), the Secretary shall submit to the Committees on 
     Veterans' Affairs of the Senate and the House of 
     Representatives a report on the Secretary's allocation of 
     facilities and personnel in order to furnish such care and 
     services.
       ``(f) Regulations.--The Secretary shall prescribe 
     regulations governing the exercise of the authority of the 
     Secretary under this section.''.
       (2) The table of sections at the beginning of that chapter 
     is amended by adding at the end the following new item:

``1785. Care and services during certain disasters and emergencies.''.

       (b) Members of the Armed Forces on Active Duty.--Section 
     8111A(a) of such title is amended--
       (1) by redesignating paragraph (2) as paragraph (4);
       (2) by designating the second sentence of paragraph (1) as 
     paragraph (3); and
       (3) by inserting between paragraph (1) and paragraph (3), 
     as designated by paragraph (2) of this subsection, the 
     following new paragraph:
       ``(2)(A) During and immediately following a disaster or 
     emergency referred to in subparagraph (B), the Secretary may 
     furnish hospital care and medical services to members of the 
     Armed Forces on active duty responding to or involved in that 
     disaster or emergency.
       ``(B) A disaster or emergency referred to in this 
     subparagraph is any disaster or emergency as follows:
       ``(i) A major disaster or emergency declared by the 
     President under the Robert B. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5121 et seq.).
       ``(ii) A disaster or emergency in which the National 
     Disaster Medical System established pursuant to section 
     2811(b) of the Public Health Service Act (42 U.S.C. 300hh-
     11(b)) is activated by the Secretary of Health and Human 
     Services under paragraph (3)(A) of that section or as 
     otherwise authorized by law.''.

     SEC. 5. INCREASE IN NUMBER OF ASSISTANT SECRETARIES OF 
                   VETERANS AFFAIRS.

       (a) Increase.--Subsection (a) of section 308 of title 38, 
     United States Code, is amended by striking ``six'' in the 
     first sentence and inserting ``seven''.
       (b) Functions.--Subsection (b) of such section is amended 
     by adding at the end the following new paragraph:
       ``(11) Operations, preparedness, security, and law 
     enforcement functions.''.
       (c) Number of Deputy Assistant Secretaries.--Subsection 
     (d)(1) of such section is amended by striking ``18'' and 
     inserting ``19''.
       (d) Conforming Amendment.--Section 5315 of title 5, United 
     States Code, is amended by striking ``(6)'' after ``Assistant 
     Secretaries, Department of Veterans Affairs'' and inserting 
     ``(7)''.

     SEC. 6. CODIFICATION OF DUTIES OF SECRETARY OF VETERANS 
                   AFFAIRS RELATING TO EMERGENCY PREPAREDNESS.

       (a) In General.--(1) Subchapter I of chapter 81 of title 
     38, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 8117. Emergency preparedness

       ``(a) Readiness of Department Medical Centers.--(1) The 
     Secretary shall take appropriate actions to provide for the 
     readiness of Department medical centers to protect the 
     patients and staff of such centers from chemical or 
     biological attack or otherwise to respond to such an attack 
     so as to enable such centers to fulfill their obligations as 
     part of the Federal response to public health emergencies.
       ``(2) Actions under paragraph (1) shall include--
       ``(A) the provision of decontamination equipment and 
     personal protection equipment at Department medical centers; 
     and
       ``(B) the provision of training in the use of such 
     equipment to staff of such centers.
       ``(b) Security at Department Medical and Research 
     Facilities.--(1) The Secretary shall take appropriate actions 
     to provide for the security of Department medical centers and 
     research facilities, including staff and patients at such 
     centers and facilities.
       ``(2) In taking actions under paragraph (1), the Secretary 
     shall take into account the results of the evaluation of the 
     security needs at Department medical centers and research 
     facilities required by section 154(b)(1) of the Public Health 
     Security and Bioterrorism Preparedness and Response Act of 
     2002 (Public Law 107-188; 116 Stat. 631), including the 
     results of such evaluation relating to the following needs:
       ``(A) Needs for the protection of patients and medical 
     staff during emergencies, including a chemical or biological 
     attack or other terrorist attack.
       ``(B) Needs, if any, for screening personnel engaged in 
     research relating to biological pathogens or agents, 
     including work associated with such research.
       ``(C) Needs for securing laboratories or other facilities 
     engaged in research relating to biological pathogens or 
     agents.
       ``(c) Tracking of Pharmaceuticals and Medical Supplies and 
     Equipment.--The Secretary shall develop and maintain a 
     centralized system for tracking the current location and 
     availability of pharmaceuticals, medical supplies, and 
     medical equipment throughout the Department health care 
     system in order to permit the ready identification and 
     utilization of such pharmaceuticals, supplies, and equipment 
     for a variety of purposes, including response to a chemical 
     or biological attack or other terrorist attack.
       ``(d) Training.--The Secretary shall ensure that the 
     Department medical centers, in consultation with the 
     accredited medical school affiliates of such medical centers, 
     develop and implement curricula to train resident physicians 
     and health care personnel in medical matters relating to 
     biological, chemical, or radiological attacks or attacks from 
     an incendiary or other explosive weapon.
       ``(e) Participation in National Disaster Medical System.--
     (1) The Secretary shall establish and maintain a training 
     program to facilitate the participation of the staff of 
     Department medical centers, and of the community partners of 
     such centers, in the National Disaster Medical System 
     established pursuant to section 2811(b) of the Public Health 
     Service Act (42 U.S.C. 300hh-11(b)).
       ``(2) The Secretary shall establish and maintain the 
     training program under paragraph (1) in accordance with the 
     recommendations of the working group on the prevention, 
     preparedness, and response to bioterrorism and other public 
     health emergencies established under section 319F(a) of the 
     Public Health Service Act (42 U.S.C. 247d-6(a)).
       ``(3) The Secretary shall establish and maintain the 
     training program under paragraph (1) in consultation with the 
     following:
       ``(A) The Secretary of Defense.
       ``(B) The Secretary of Health and Human Services.
       ``(C) The Director of the Federal Emergency Management 
     Agency.
       ``(f) Mental Health Counseling.--(1) With respect to 
     activities conducted by personnel serving at Department 
     medical centers, the Secretary shall develop and maintain 
     various strategies for providing mental health counseling and 
     assistance, including counseling and assistance for post-
     traumatic stress disorder, following a bioterrorist attack or 
     other public health emergency to the following persons:
       ``(A) Veterans.
       ``(B) Local and community emergency response providers.
       ``(C) Active duty military personnel.
       ``(D) Individuals seeking care at Department medical 
     centers.
       ``(2) The strategies under paragraph (1) shall include the 
     following:
       ``(A) Training and certification of providers of mental 
     health counseling and assistance.
       ``(B) Mechanisms for coordinating the provision of mental 
     health counseling and assistance to emergency response 
     providers referred to in paragraph (1).
       ``(3) The Secretary shall develop and maintain the 
     strategies under paragraph (1) in consultation with the 
     Secretary of Health and Human Services, the American Red 
     Cross, and the working group referred to in subsection 
     (e)(2).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     8116 the following new item:

``8117. Emergency preparedness.''.

       (b) Repeal of Codified Provisions.--Subsections (a), 
     (b)(2), (c), (d), (e), and (f) of section 154 of the Public 
     Health Security and Bioterrorism Preparedness and Response 
     Act of 2002 (Public Law 107-188; 38 U.S.C. note prec. 8101) 
     are repealed.
       (c) Conforming Amendments.--Subsection (g) of such section 
     is amended--
       (1) in paragraph (1), by inserting ``of section 8117 of 
     title 38, United States Code'' after ``subsection (a)''; and
       (2) in paragraph (2), by striking ``subsections (b) through 
     (f)'' and inserting ``subsection (b)(1) of this section and 
     subsections (b) through (f) of section 8117 of title 38, 
     United States Code''.

  Mr. SMITH of New Jersey. Mr. Speaker, I rise to urge my colleagues to 
support H.R. 3253, as amended, the ``Department of Veterans Affairs 
Emergency Preparedness Act of 2002.'' H.R. 3253 will provide the 
federal government with another tool to prevent, or if necessary, 
respond to future acts of terrorism

[[Page 20811]]

against the United States. This legislation will mobilize the strength 
of the VA heath care infrastructure in defending our nation against 
future acts of terrorism.
  Almost exactly one year ago today, on October 15, 2001, I chaired a 
hearing of the Veterans' Affairs Committee to examine the role of the 
Department of Veterans Affairs in homeland security. At that hearing, I 
proposed to use VA's expertise in biomedical research to help in 
finding treatments and vaccines against deadly chemical and biological 
threats posed by terrorists. Just two days later, Congress was itself 
facing anthrax attacks from letters that had been sent through the main 
post office in my congressional district in Hamilton, New Jersey.
  Mr. Speaker, I know from my own experience during these anthrax 
attacks that our nation needs to quickly develop new tests and 
treatments for anthrax and other dangerous biological and chemical 
agents that could be used by terrorists. When anthrax was discovered in 
the Hamilton Post Office, I was astounded to discover that there were 
no existing protocols to test, quarantine, or threat victims. The 
confusion that followed discovery of anthrax made a bad situation even 
worse. We must learn from that experience.
  H.R. 3253 will marshal some of our nation's best and brightest 
scientists in a focused effort to develop new protocols for testing, 
vaccinating and treatment our citizens who may be victims of 
biological, chemical and radiological terrorism.
  Although it may come as a surprise to many, the Department of 
Veterans Affairs operates our nation's largest integrated health care 
network, with over 200,000 health care practitioners, 163 medical 
centers, more than 800 outpatient clinics, 115 medical research 
programs, affiliations with over 100 schools of medicine and a $25 
billion annual budget, including over $1 billion for its research 
programs.
  The VA health care system must be an integral component of any 
homeland security strategy. In fact, VA already does have defined roles 
in both the National Disaster Medical System (NDMS) and the Federal 
Response Plan (FRP) in the event of national emergencies.
  Among VA's current specialized duties are: conducting and evaluating 
disaster and terrorist attack simulation exercises; managing the 
nation's stockpile of drugs to counter the effects of biological and 
chemical poisons; maintaining a rapid response team for radioactive 
releases; and training public and private NDMS medical center personnel 
around the country in properly responding to biological, chemical, or 
radiological disasters.
  H.R. 3253 was developed in order to apply the existing experience and 
expertise of VA's health care research programs as a defensive tool in 
the war on terrorism.
  As amended, H.R. 3253 will authorize VA to establish four National 
Medical Preparedness Centers. These centers would undertake research 
and develop new protocols for detecting, diagnosing, vaccinating and 
treating potential victims of terrorism. In particular, the Centers 
would focus on ways to prevent and treat victims of biological, 
chemical, radiological or other explosive terrorist acts.
  The new centers would conduct direct research and coordinate ongoing 
and promising new research with affiliated universities and other 
government agencies. These Centers would serve as training resources 
for thousands of community hospital staffs, hazardous materials 
``HAZMAT'' teams, Emergency Medical Technicians, firefighters and 
police officers, who must be first medical responders in the event of 
terrorist attacks.
  The emergency preparedness centers would also be charged with 
establishing state-of-the-art laboratories to help local health 
authorities detect the presence of dangerous biological and chemical 
poisons. The funding to support these centers would come from the 
additional funds provided for combating terrorism and would not use or 
otherwise reduce funding for veterans' health care.
  Under the compromise agreement reached with the Senate, VA's 
authority to provide emergency medical treatment would be expanded to 
include first responders, other Federal agencies, veterans not enrolled 
in the VA health care system, active duty service members and other 
persons receiving VA care in declared domestic emergencies. 
Reimbursements collected for the cost of care, whether coming from 
FEMA, the Defense Department or an insurance company, would be credited 
to the VA's Medical Care Collections Fund, the same as in other VA 
collections efforts.
  In addition, a new assistant secretary for preparedness, security and 
law enforcement would be established at VA. Finally, Mr. Speaker, the 
compromise bill would codify in title 38 of the United States Code 
various provisions from Public Law 107-188, the ``Public Health 
Security and Bioterrorism Preparedness and Response Act of 2002'', that 
pertain to the Department of Veterans Affairs.
  Mr. Speaker, I ask unanimous consent to revise and extended my 
remarks and that all Members may have 5 legislative days in which to 
revise and extend their remarks, and include extraneous material on 
H.R. 3253, as amended.
  Mr. Speaker, with our approval today, H.R. 3253 will go to the 
President for his signature and enactment. I urge all Members to 
support this vital legislation.
  Mr. MORAN of Virginia. Mr. Speaker, a little more than a year after 
the assaults on New York and Washington, we are still in a heightened 
state of concern about the safety of our Nation.
  With the bill we pass today, H.R. 3253, the Department of Veterans 
Affairs Emergency Preparedness Act of 2002, strengthens the role of the 
Department of Veterans Affairs to protect the people of the United 
States from terrorists, particularly bio-terrorism threats such as last 
year's anthrax attacks in Washington, New York, New Jersey and Florida. 
We must be proactive in preparing the United States for a future 
terrorist attack. As Vice President Cheney cautioned this year, ``The 
prospects of a future attack against the United States are almost 
certain. Not a matter of it, but when. It could happen tomorrow, it 
could happen next week, it could happen next year, but they will keep 
trying.'' We must respond in an effective and comprehensive manner to 
protect the American people when an attack occurs. This bill would help 
do just that.
  Under this bill, four geographically separated National Medical 
Emergency Preparedness Centers would be established. Each center would 
study and develop treatments for human exposure to chemical, 
biological, explosive and nuclear substances that may be used as 
weapons of mass destruction.
  The Department of Veterans Affairs is a good host for such a new and 
important mission. In addition to its medical care mission to care for 
millions of veterans, the veterans health care system is the nation's 
largest provider of graduate medical education and is a major 
contributor to biomedical and other scientific research. Because of its 
widely dispersed, integrated health care system, VA is an essential 
asset in responding to national, regional and local emergencies. The VA 
is an integral part of the Federal Response Plan, and an important 
local resource in natural disasters. This bill strengthens VA's role as 
a helping agency in such events, and particularly those that may be 
caused in the future by those bent on destruction of freedom and the 
American way of life.
  Not only would the four emergency preparedness centers conduct 
research and develop detection, diagnosis, prevention, and treatment 
methods; but they would also be charged as clearinghouses to 
disseminate the information to other public and private health care 
providers, to improve the quality of care for patients who may be 
exposed to deadly chemicals or radiation.
  In addition, our bill would also require the Secretary of Veterans 
Affairs to carry out a program to develop and disseminate model 
education and training programs for medical response to terrorist 
activities. VA's infrastructure, which includes affiliations with over 
107 medical schools, and other schools of health professions, would 
prepare current and future medical professionals in this country to be 
knowledgeable and medically competent in the treatment of casualties 
from terrorist attacks. In my home state, the University of Kansas 
School of Medicine currently partners with 4 Veterans Medical Centers 
and educates over 700 medical students and more than 390 resident 
physicians in training.
  This bill also provides the VA a formal role in the national disaster 
medical system, and authorizes the VA to treat first responders, 
active-duty military forces deployed in domestic deployments, fire 
fighters, police officers and members of the general public who may 
fall victim to terrorism or mass casualty disasters. Another important 
part of this bill is the establishment of a centralized office at VA 
headquarters to manage all emergency preparedness, security and law 
enforcement activities, and to organize the VA's resources for maximum 
efficiency and effectiveness in protecting the security of VA's 
patients, staff, and infrastructure from the risk and threat of 
terrorism.
  Mr. Speaker, this is a good bill for the American people. The 
professionals who need to be trained in saving lives will be properly 
armed with information, education and expertise to provide health care. 
Mechanisms will be put in place to study the likely avenues and methods 
of chemical, biological, and radiological poisoning. The VA will also 
be a part of a national presence for rapid response by

[[Page 20812]]

local and Federal officials in types of emergencies that only a year 
ago we could scarcely imagine.
  H.R. 3253 is a bipartisan and bicameral compromise, Mr. Speaker. As 
Chairman of the Subcommittee on Health of the Committee on Veterans 
Affairs, I am very pleased that the long journey of this legislation 
concludes today and that we shall send the bill to the President. I 
want to commend my Chairman, the gentleman from New Jersey, Mr. Smith, 
for his leadership and advocacy on this measure, as well as our 
colleagues, the Ranking Member of the full Committee, the gentleman 
from Illinois, Mr. Evans, and the Ranking Member of my Subcommittee, 
the gentleman from California, Mr. Filner, for their work. As my 
Chairman has said previously on the floor of this Chamber, he feels a 
personal obligation, from events in his own district in the anthrax 
incidents, that Congress act to improve our safety and prevent such 
future travesites. I commend him for his dedication and agree that this 
measure aids in that respect.
  I also thank our colleagues in the Senate for their cooperation, 
contributions and comity.
  This bill may be seen as only a small effort today, Mr. Speaker, but 
it could pay large dividends down the road in America's war on 
terrorism. I urge its adoption by the House.
  Mr. EVANS. Mr. Speaker, I rise in strong support of H.R. 3253, the 
Department of Veterans Affairs Emergency Preparedness Act of 2002, as 
amended.
  After the tragic events of September 11th last year, our Chairman, 
Chris Smith, again demonstrated his leadership. He authored and 
introduced legislation authorizing an important role for the Department 
of Veterans Affairs in our national fight against terrorism. This is 
the primary purpose of the measure before us.
  VA provides medical care to millions of veterans each year. It 
conducts ground-breaking health care research. It also provides 
educational opportunities to many of our nation's health care 
providers. VA is truly an unparalleled national resource.
  This legislation provides the structure and authority for VA to 
leverage its expertise to combat terrorism. For VA to achieve this goal 
it must have adequate resources.
  Today, VA does not have enough resources. This is not my judgment. 
This is the judgment of the Task Force to Improve Health Care Delivery 
to Veterans established by President Bush. I call on the President to 
fully fund the VA, to provide all funding needed by VA to deliver 
timely and quality care to our veterans. Mr. President, provide VA the 
resources it requires to combat terrorism.
  I am pleased H.R. 3253, as amended, has been approved by the other 
body. I urge all Members to support this important legislation so it 
can be sent to the White House for action by the President.
  Mr. Speaker, I urge my colleagues to support passage of this 
legislation.
  The SPEAKER pro tempore (Mr. Simpson). Is there objection to the 
request of the gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. Without objection, the various amendments to 
the titles are agreed to.
  There was no objection.

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