[Congressional Record (Bound Edition), Volume 148 (2002), Part 9]
[Senate]
[Pages 12763-12779]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4273. Mr. McCAIN submitted an amendment intended to be proposed by 
him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the amendment, insert the following:
       On page 82, line 24, insert before the period the 
     following: ``, and shall include a brief narrative of the 
     basis for the decision to so certify, including a discussion 
     of any questionable accounting treatment.''.
                                  ____

  SA 4274. Mr. LIEBERMAN (for himself, Mr. Enzi, Mrs. Boxer, Mr. Allen, 
Ms. Cantwell, Mr. Lott, Mr. Bennett, Mr. Wyden, Mrs. Murray, and Mr. 
Burns) submitted an amendment intended to be proposed by him to the 
bill S. 2673, to improve quality and transparency in financial 
reporting and independent audits and accounting services for public 
companies, to create

[[Page 12764]]

a Public Company Accounting Oversight Board, to enhance the standard 
setting process for accounting practices, to strengthen the 
independence of firms that audit public companies, to increase 
corporate responsibility and the usefulness of corporate financial 
disclosure, to protect the objectivity and independence of securities 
analysts, to improve Securities and Exchange Commission resources and 
oversight, and for other purposes; which was ordered to lie on the 
table; as follows:
       At the appropriate place insert the following:

     SEC. __. RECOMMENDATIONS ON THE TREATMENT OF STOCK OPTIONS.

       (a) Analysis.--The Commission shall conduct an analysis and 
     make regulatory and legislative recommendations on the 
     treatment of stock options in which the Commission shall 
     analyze--
       (1) the accounting treatment for employee stock options, 
     including the accuracy of available stock option pricing 
     models;
       (2) the adequacy of current disclosure requirements to 
     investors and shareholders on stock options;
       (3) the adequacy of corporate governance requirements, 
     including shareholder approval of stock option plans;
       (4) any need for new stock holding period requirements for 
     senior executives; and
       (5) the benefit and detriment of any new options expensing 
     rules on--
       (A) the productivity and performance of large, medium, and 
     small companies, and start-up enterprises;
       (B) the recruitment and retention of skilled workers; and
       (C) employees at various income levels, with a particular 
     focus on the effect on rank-and-file employees and the income 
     of women.
       (b) Recommendations.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Commission shall submit regulatory 
     and legislative recommendations and supporting analysis to--
       (A) the standard setting body designated pursuant to 
     section 19(b) of the Securities Act of 1933, as amended by 
     section 106 of this Act;
       (B) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       (C) the Committee on Financial Services of the House of 
     Representatives.
       (2) Contents.--The analysis, and regulatory and legislative 
     recommendations submitted under paragraph (1) shall include--
       (A) the results of the analysis conducted under subsection 
     (a); and
       (B) regulatory and legislative recommendations, if any, for 
     changes in the treatment of stock options.
                                  ____

  SA 4275. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``and the standard setting body mentioned in 
     Sections 3, 107, 108, 208, 301, 501, and 601, and the body 
     directed to conduct studies and reports in Section 702 shall, 
     within six months of the date of enactment of this Act, 
     conduct an analysis and make recommendations regarding an 
     appropriate generally accepted accounting principle for the 
     treatment of employee stock options and transmit it to the 
     standard setting body funded pursuant to Section 109.''.
                                  ____

  SA 4276. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``and the standard setting body mentioned in 
     Sections 3, 107, 108, 208, 301, 501, and 601, and the body 
     directed to conduct studies and reports in Section 702 shall, 
     within six months of the date of enactment of this Act, 
     conduct an analysis and make recommendations to the standard 
     setting body funded pursuant to Section 109 regarding an 
     appropriate generally accepted accounting principle for the 
     treatment of employee stock options and conduct an analysis 
     and make recommendations to the Committee on Banking, Housing 
     and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House regarding the adequacy of 
     disclosure requirement to investors and shareholders on stock 
     options, corporate governance requirements, including 
     shareholder approval of stock option plans, and the need for 
     new stock option holding period requirements for senior 
     executives.''.
                                  ____

  SA 4277. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``provided that this standard setting body 
     shall not take action to adopt such standard until the 
     standard setting body mentioned in Sections 3, 107, 108, 208, 
     301, 501 and 601 has conducted an analysis and made 
     regulatory and legislative recommendations regarding the 
     adequacy of disclosure requirements to investors and 
     shareholders on stock options, corporate governance 
     requirements, including shareholder approval of stock option 
     plans, and the need for new stock option holding period 
     requirements for senior executives''.
                                  ____

  SA 4278. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``provided that this standard setting body 
     shall not take action to adopt such standard until the 
     standard setting body mentioned in Sections 3, 107, 108, 208, 
     301, 501 and 601 has conducted an analysis and made 
     regulatory and legislative recommendations regarding the 
     adequacy of disclosure requirements to investors and 
     shareholders on stock options, corporate governance 
     requirements, including shareholder approval of stock option 
     plans, and the need for new stock option holding period 
     requirements for senior executives, which shall be completed 
     within nine months.''
                                  ____

  SA 4279. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``and the

[[Page 12765]]

     standard setting body mentioned in Section 3, shall, within 
     six months of the date of enactment of this Act, conduct an 
     analysis and make recommendations regarding an appropriate 
     generally accepted accounting principle for the treatment of 
     employee stock options and transmit it to the standard 
     setting body funded pursuant to Section 109.''
                                  ____

  SA 4280. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``and the standard setting body mentioned in 
     Section 3, shall, within six months of the date of enactment 
     of this Act, conduct an analysis and make recommendations to 
     the standard setting body funded pursuant to Section 109 
     regarding an appropriate generally accepted accounting 
     principle for the treatment of employee stock options and 
     conduct an analysis and make recommendations to the Committee 
     on Banking, Housing and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House regarding the 
     adequacy of disclosure requirements to investors and 
     shareholders on stock options, corporate governance 
     requirements, including shareholder approval of stock option 
     plans, and the need for new stock option holding period 
     requirements for senior executives.''
                                  ____

  SA 4281. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting practices 
to strengthen the independence of firms that audit public companies, to 
increase corporate responsibility and the usefulness of corporate 
financial disclosure, to protect the objectivity and independence of 
securities analysts, to improve Securities and Exchange Commission 
resources and oversight, and for other purposes; which was ordered to 
lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``provided that this standard setting body 
     shall not take action to adopt such standard until the 
     standard setting body mentioned in Section 3, has conducted 
     an analysis and made regulatory and legislative 
     recommendations regarding the adequacy of disclosure 
     requirements to investors and shareholders on stock options, 
     corporate governance requirements, including shareholder 
     approval of stock option plans, and the need for new stock 
     option holding period requirements for senior executives.''
                                  ____

  SA 4282. Mr. LIEBERMAN submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 8 of the Levin amendment after ``options'' insert 
     the following: ``provided that this standard setting body 
     shall not take action to adopt such standard until the 
     standard setting body mentioned in Section 3, has conducted 
     an analysis and made regulatory and legislative 
     recommendations regarding the adequacy of disclosure 
     requirements to investors and shareholders on stock options, 
     corporate governance requirements, including shareholder 
     approval of stock option plans, and the need for new stock 
     option holding period requirements for senior executives, 
     which shall be completed within nine months.''
                                  ____

  SA 4283. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 4187 submitted by Mr. Edwards (for himself, Mr. Enzi, and 
Mr. Corzine) to the bill (S. 2673) to improve quality and transparency 
in financial reporting and independent audits and accounting services 
for public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysis, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 2, line 17 strike ``directors.'' and insert the 
     following: ``directors.

     ``SEC.  . REVIEW OF STOCK OPTION ACCOUNTING TREATMENT.

       ``A standard setting body described in Section 108 
     paragraph (1) of this Act and funded pursuant to Section 109 
     of this Act shall review the accounting treatment of employee 
     stock options and shall, within one year of the date of 
     enactment of this Act, adopt an appropriate generally 
     accepted accounting principle for the treatment of employee 
     stock options.''
                                  ____

  SA 4284. Mr. LEVIN submitted an amendment intended to be proposed to 
amendment SA 4187 submitted by Mr. Edwards (for himself, Mr. Enzi, and 
Mr. Corzine) to the bill (S. 2673) to improve quality and transparency 
in financial reporting and independent audits and accounting services 
for public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysis, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 2, line 17 strike ``directors.'' and insert the 
     following: ``directors.

     SEC. . INCREASED MAXIMUM CIVIL MONEY PENALTIES.

       (a) Securities Act of 1933.--Section 20(d)(2) of the 
     Securities Act of 1933 (15 U.S.C. 77t(d)(2)) is amended--
       (1) in subparagraph (A)(i), by--
       (A) striking ``$5,000'' and inserting ``$100,000''; and
       (B) striking ``$50,000'' and inserting ``$250,000'';
       (2) in subparagraph (B)(i), by--
       (A) striking ``$50,000'' and inserting ``$500,000''; and
       (B) striking ``$250,000'' and inserting ``$1,000,000''; and
       (3) in subparagraph (C)(i), by--
       (A) striking ``$100,000'' and inserting ``$1,000,000''; and
       (B) striking ``$500,000'' and inserting ``$2,000,000''.
       (b) Securities Exchange Act of 1934.--
       (1) Penalties.--Section 32 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78ff) is amended--
       (A) in subsection (b), by striking ``$100'' and inserting 
     ``$10,000''; and
       (B) in subsection (c)--
       (i) in paragraph (1)(B), by striking ``$10,000'' and 
     inserting ``$500,000''; and
       (ii) in paragraph (2)(B), by striking ``$10,000'' and 
     inserting ``$500,000''.
       (2) Insider trading.--Section 21A(a)(3) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u-1(a)(3)) is amended by 
     striking ``$1,000,000'' and inserting ``$2,000,000''.
       (3) Administrative proceedings.--Section 21B(b) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78u-2(b)) is 
     amended--
       (A) in paragraph (1), by--
       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in paragraph (2), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in paragraph (3), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
       (4) Civil actions.--Section 21(d)(3)(B) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78u(d)(3)(B)) is amended--
       (A) in clause (i), by--

[[Page 12766]]

       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in clause (ii), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in clause (iii), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
       (c) Investment Company Act of 1940.--
       (1) Ineligibility.--Section 9(d)(2) of the Investment 
     Company Act of 1940 (15 U.S.C. 80a-9(d)(2)) is amended--
       (A) in subparagraph (A), by--
       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in subparagraph (B), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in subparagraph (C), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
       (2) Enforcement investment company act.--Section 42(e)(2) 
     of the Investment Company Act of 1940 (15 U.S.C. 80a-
     41(e)(2)) is amended--
       (A) in subparagraph (A), by--
       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in subparagraph (B), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in subparagraph (C), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
       (d) Investment Advisors Act of 1940.--
       (1) Registration.--Section 203(i)(2) of the Investment 
     Advisors Act of 1940 (15 U.S.C. 80b-3(i)(2)) is amended--
       (A) in subparagraph (A), by--
       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in subparagraph (B), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in subparagraph (C), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
       (2) Enforcement of investment advisors act.--Section 
     209(e)(2) of the Investment Advisors Act of 1940 (15 U.S.C. 
     80b-9(e)(2)) is amended--
       (A) in subparagraph (A), by--
       (i) striking ``$5,000'' and inserting ``$100,000''; and
       (ii) striking ``$50,000'' and inserting ``$250,000'';
       (B) in subparagraph (B), by--
       (i) striking ``$50,000'' and inserting ``$500,000''; and
       (ii) striking ``$250,000'' and inserting ``$1,000,000''; 
     and
       (C) in subparagraph (C), by--
       (i) striking ``$100,000'' and inserting ``$1,000,000''; and
       (ii) striking ``$500,000'' and inserting ``$2,000,000''.
                                  ____

  SA 4285. Mr. ENZI submitted an amendment intended to be proposed by 
him to the bill S. 2673. to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securties analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the amendment insert the following new 
     section
       Sec. .--(a) Rules Required.--Notwithstanding section 404 of 
     the Act, the Commission shall prescribe rules requiring each 
     annual report required by section 13 of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78m) to contain an internal 
     control report, which shall--
       (1) state the responsibility of management for establishing 
     and maintaining an adequate internal control structure and 
     procedures for financial reporting; and
       (2) contain an assessment, as of the end of the most recent 
     fiscal year of the issuer, of the effectiveness of the 
     internal control structure and procedures of the issuer of 
     financial reporting.
       (b) Internal Control Evaluation and Reporting.--With 
     respect to the internal control assessment required by 
     subsection (a), each registered public accounting firm that 
     prepares or issues the audit report for the issuer shall 
     attest to, and report on, the assessment made by the 
     management of the issuer. An attestation made under this 
     subsection shall be made in accordance with standards for 
     attestation engagements issues or adopted by the Board.
                                  ____

  SA 4286. Mr. REID (for Mrs. Carnahan) proposed an amendment to the 
bill S. 2673. to improve quality and transparency in financial 
reporting and independent audits and accounting services for public 
companies, to create a Public Company Accounting Oversight Board, to 
enhance the standard setting process for accounting practices, to 
strengthen the independence of firms that audit public companies to 
increase corporate responsibility and the usefulness of corporate 
financial disclosure, to protect the objectivity and independence of 
securties analysts, to improve Securities and Exchange Commission 
resources and oversight, and for other purposes; as follows:

       At the end of the amendment, insert the following:
       (b) Electronic Filing.--Notwithstanding the provisions of 
     section 403 of this Act, section 16(a)(2) of the Securities 
     and Exchange Act of 1934, as added by section 403, is amended 
     to read as follows:
       ``(2) if there has been a change in such ownership, or if 
     such person shall have purchased or sold a security-based 
     swap agreement (as defined in section 206B of the Gramm-
     Leach-Bliley Act) involving such equity security, shall file 
     electronically with the Commission (and if such security is 
     registered on a national securities exchange, shall also file 
     with the exchange), a statement before the end of the second 
     business day following the day on which the subject 
     transaction has been executed, or at such other times as the 
     Commission shall establish, by rule, in any case in which the 
     Commission determines that such 2 day period is not feasible, 
     and the Commission shall provide that statement on a publicly 
     accessible Internet site not later than the end of the 
     business day following that filing, and the issuer (if the 
     issuer maintains a corporate website) shall provide that 
     statement on that corporate website not later than the end of 
     the business day following that filing (the requirements of 
     this paragraph with respect to electronic filing and 
     providing the statement on a corporate website shall take 
     effect 1 year after the date of enactment of this paragraph), 
     indicating ownership by that person at the date of filing, 
     any such changes in such ownership, and such purchases and 
     sales of the security-based swap agreements as have occurred 
     since the most recent such filing under this paragraph.''.
                                  ____

  SA 4287. Mr. GRASSLEY submitted an amendment intended to be proposed 
by him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike all after ``SEC.'' and insert: ``__. PROVISION OF 
     BOOK AND TAX DIFFERENCES TO COMMISSION.
       Section 13 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m) is amended by adding at the end the following:
       ``(l) Submission of Tax Forms and Schedules Relating to 
     Book and Tax Differences.--
       ``(1) In general.--Each issuer shall provide to the 
     Commission--
       ``(A) any schedule or form included with its return of 
     income tax required to be filed under section 6012 of the 
     Internal Revenue Code of 1986 which reconciles the 
     differences between the treatment of an item for purposes of 
     such return and the treatment of such item for purposes of 
     audited financial statements required to be filed under this 
     Act, and
       ``(B) any supporting documents filed with any such schedule 
     or form.
       ``(2) Time and manner.--An issuer shall file information 
     required to be submitted under paragraph (1) at such time, 
     and in such form and manner, as the Commission determines

[[Page 12767]]

     appropriate after consultation with the Secretary of the 
     Treasury.
       ``(3) Information made available to the public.--The 
     Commission shall make information required to be submitted 
     under paragraph (1) available to the public.''
                                  ____

  SA 4288. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 4267 submitted by Mr. Dorgan and intended to be proposed 
to the bill (S. 2673) to improve quality and transparency in financial 
reporting and independent audits and accounting services for public 
companies, to create a Public Company Accounting Oversight Board, to 
enhance the standard setting process for accounting practices, to 
strengthen the independence of firms that audit public companies, to 
increase corporate responsibility and the usefulness of corporate 
financial disclosure, to protect the objectivity and independence of 
securities analysts, to improve Securities and Exchange Commission 
resources and oversight, and for other purposes; which was ordered to 
lie on the table; as follows:

       Strike all after the first word and insert the following:
       ``Reincorporations Have No Effect.--Nothing in section 302 
     shall be interpreted or applied in any way to allow any 
     issuer to lessen the legal force of the statement required 
     under section 302, by having reincorporated or having engaged 
     in any other transaction that resulted in the transfer of the 
     corporate domicile or offices of the issuer from inside the 
     United States to outside of the United States.''.
                                  ____

  SA 4289. Mr. DORGAN (for himself and Mr. McCain) submitted an 
amendment intended to be proposed to amendment SA 4187 submitted by Mr. 
Edwards (for himself, Mr. Enzi, and Mr. Corzine) to the bill (S. 2673) 
to improve quality and transparency in financial reporting and 
independent audits and accounting services for public companies, to 
create a Public Company Accounting Oversight Board, to enhance the 
standard setting process for accounting practices, to strengthen the 
independence of firms that audit public companies, to increase 
corporate responsibility and the usefulness of corporate financial 
disclosure, to protect the objectivity and independence of securities 
analysts, to improve Securities and Exchange Commission resources and 
oversight, and for other purposes; which was ordered to lie on the 
table, as follows:

       At the end of the matter proposed to be inserted insert the 
     following:
       (2) Public hearings.--Notwithstanding all hearings under 
     that subsection (c) shall be public, unless otherwise ordered 
     by the Board for good cause shown on its own motion or after 
     considering the motion of a party to the hearing.
                                  ____

  SA 4290. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 4187 submitted by Mr. Edwards (for himself, Mr. Enzi, and 
Mr. Corzine) to the bill (S. 2673) to improve quality and transparency 
in financial reporting and independent audits and accounting services 
for public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the matter proposed to be inserted, insert 
     the following:
       (c) Foreign Reincorporations Have No Effect.--Nothing in 
     section 302 shall be interpreted or applied in any way to 
     allow any issuer to lessen the legal force of the statement 
     required under section 302, by having reincorporated or 
     having engaged in any other transaction that resulted in the 
     transfer of the corporate domicile or offices of the issuer 
     from inside the United States to outside the United States.
                                  ____

  SA 4291. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 4187 submitted by Mr. Edwards (for himself, Mr. Enzi, and 
Mr. Corzine) to the bill (S. 2673) to improve quality and transparency 
in financial reporting and independent audits and accounting services 
for public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the matter proposed to be inserted, insert 
     the following:
       (b) Proceeds From the Sale of Securities Prior to 
     Bankruptcy Filing.--If an issuer files for bankruptcy 
     protection under title 11, United States Code, each director, 
     chief executive officer, and chief financial officer of the 
     issuer shall pay to the issuer all amounts described in 
     paragraphs (1) and (2) of section 304(a) (to the extent that 
     such amounts have not been reimbursed under that section 
     304(a)) realized by such director or officer from the sale of 
     the securities of the issuer during the 12-month period 
     preceding the date of the bankruptcy filing.
                                  ____

  SA 4292. Mr. DORGAN submitted an amendment intended to be proposed to 
amendment SA 4187 submitted by Mr. Edwards (for himself, Mr. Enzi, and 
Mr. Corzine) to the bill (S. 2673) to improve quality and transparency 
in financial reporting and independent audits and accounting services 
for public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the matter proposed to be inserted, insert 
     the following:
       Section 302 shall apply whether the issuer is domiciled, 
     incorporated, or reincorporated under the laws of the United 
     States or any individual State, or under the laws of a 
     foreign country or political subdivision thereof.
                                  ____

  SA 4293. Mr. GRAHAM submitted an amendment intended to be proposed by 
him to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 82, line 18, strike the period and all that follows 
     through ``certify'' on line 20 and insert the following: ``, 
     regardless of whether such issuer is located in or organized 
     under the laws of the United States or any State, or any 
     foreign country.
                                  ____

  SA 4294. Mr. GRAHAM submitted an amendment intended to be proposed to 
amendment SA 4293 submitted by the Mr. Graham and intended to be 
proposed to the bill (S. 2673) to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; which was 
ordered to lie on the table; as follows:

       On line 1 of this amendment, strike after ``on page 82,'' 
     and insert:
       (c) Foreign Reincorporations.--This subsection shall not be 
     interpreted or applied in any way to lessen the legal force 
     of the statement required under this subsection by an issuer 
     having reincorporated or having

[[Page 12768]]

     engaged in any other action that results in the transfer of 
     corporate domicile or offices from inside to outside the 
     United States.
                                  ____

  SA 4295. Mr. SCHUMER (for himself and Mrs. Feinstein) proposed an 
amendment to the bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; as follows:

       On page 91, strike line 19 and all that follows through 
     page 93, line 22 and insert the following:

     SEC. 402. ENHANCED CONFLICT OF INTEREST PROVISIONS.

       (a) Prohibition on Personal Loans to Executives.--Section 
     13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m), as 
     amended by this Act is amended by adding at the end the 
     following:
       ``(k) Prohibition on Personal Loans to Executives.--
       ``(1) In general.--It shall be unlawful for any issuer, 
     directly or indirectly, to extend or maintain credit or 
     arrange for the extension of credit in the form of a personal 
     loan to or for any director or executive officer (or 
     equivalent thereof) of that issuer.
       ``(2) Limitation.--Paragraph (1) does not preclude any home 
     improvement and manufactured home loan (as that term is 
     defined in section 5 of the Home Owners Loan Act), consumer 
     credit (as defined in section 103 of the Truth in Lending 
     Act), or any extension of credit under an open end credit 
     plan (as defined in section 103 of the Truth in Lending Act 
     (15 U.S.C. 1602)), that is--
       ``(A) made in the ordinary course of the consumer credit 
     business of such issuer;
       ``(B) of a type that is generally made available by such 
     issuer to the public; and
       ``(C) made by such issuer on market terms, or terms that 
     are no more favorable than those offered by the issuer to the 
     general public for such loans.''.
                                  ____

  SA 4296. Mr. SCHUMER (for himself and Mr. Shelby) proposed an 
amendment to bill S. 2673, to improve quality and transparency in 
financial reporting and independent audits and accounting services for 
public companies, to create a Public Company Accounting Oversight 
Board, to enhance the standard setting process for accounting 
practices, to strengthen the independence of firms that audit public 
companies, to increase corporate responsibility and the usefulness of 
corporate financial disclosure, to protect the objectivity and 
independence of securities analysts, to improve Securities and Exchange 
Commission resources and oversight, and for other purposes; as follows:

       On page 91, between lines 18 and 19, insert the following:
       (c) Study and Report on Special Purpose Entities.--
       (1) Study required.--The Commission shall, not later than 1 
     year after the effective date of adoption of off-balance 
     sheet disclosure rules required by section 13(j) of the 
     Securities Exchange Act of 1934, as added by this section, 
     complete a study of filings by issuers and their disclosures 
     to determine--
       (A) the extent of off-balance sheet transactions, including 
     assets, liabilities, leases, losses, and the use of special 
     purpose entities; and
       (B) whether generally accepted accounting rules result in 
     financial statements of issuers reflecting the economics of 
     such off-balance sheet transactions to investors in a 
     transparent fashion.
       (2) Report and recommendations.--Not later than 6 months 
     after the date of completion of the study required by 
     paragraph (1), the Commission shall submit a report to the 
     President, the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, and the Committee on Financial 
     Services of the House of Representatives, setting forth--
       (A) the amount or an estimate of the amount of off-balance 
     sheet transactions, including assets, liabilities, leases, 
     and loses of, and the use of special purpose entities by, 
     issuers filing periodic reports pursuant to section 13 or 15 
     of the Securities Exchange Act of 1934;
       (B) the extent to which special purpose entities are used 
     to facilitate off-balance sheet transactions;
       (C) whether generally accepted accounting principles or the 
     rules of the Commission result in financial statements of 
     issuers reflecting the economics of such transactions to 
     investors in a transparent fashion;
       (D) whether generally accepted accounting principles 
     specifically result in the consolidation of special purpose 
     entities sponsored by an issuer in cases in which the issuer 
     has the majority of the risks and rewards of the special 
     purpose entity; and
       (E) any recommendations of the Commission for improving the 
     transparency and quality of reporting off-balance sheet 
     transactions in the financial statements and disclosures 
     required to be filed by an issuer with the Commission.
                                  ____

  SA 4297. Mr. REID (for Mr. Kerry (for himself, Mr. Frist, Mr. 
Kennedy, Mr. Biden, and Mr. Helms)) proposed an amendment to the bill 
H.R. 2069, To amend the Foreign Assistance Act of 1961 and the Global 
AIDS and Tuberculosis Relief Act of 2000 to authorize assistance to 
prevent, treat, and monitor HIV/AIDS in sub-Saharan African and other 
developing countries; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``United 
     States Leadership Against HIV/AIDS, Tuberculosis, and Malaria 
     Act of 2002''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. Purpose.

               TITLE I--POLICY PLANNING AND COORDINATION

Sec. 101. Development of a comprehensive, five-year, global strategy.
Sec. 102. Comprehensive plan to empower women to prevent the spread of 
              HIV/AIDS. 
Sec. 103. HIV/AIDS Response Coordinator.
Sec. 104. Report on reversing the exodus of critical talent.

                 TITLE II--PUBLIC-PRIVATE PARTNERSHIPS

Sec. 201. Sense of Congress on public-private partnerships.
Sec. 202. Participation in the Global Fund to Fight AIDS, Tuberculosis, 
              and Malaria.
Sec. 203. Voluntary contributions to international vaccine funds.

                    TITLE III--MULTILATERAL EFFORTS

Sec. 301. Improvement of the Enhanced HIPC Initiative.
Sec. 302. Reports on implementation of improvements to the Enhanced 
              HIPC Initiative.

                      TITLE IV--BILATERAL EFFORTS

              Subtitle A--General Assistance and Programs

Sec. 401. Assistance to combat HIV/AIDS.
Sec. 402. Assistance to combat tuberculosis.
Sec. 403. Assistance to combat malaria.
Sec. 404. Pilot program for the placement of health care professionals 
              in overseas areas severely affected by HIV/AIDS, 
              tuberculosis, and malaria.
Sec. 405. Department of Defense HIV/AIDS prevention assistance program.
Sec. 406. Report on treatment activities by relevant Executive branch 
              agencies.

            Subtitle B--Assistance for Children and Families

Sec. 411. Findings.
Sec. 412. Policy and requirements.
Sec. 413. Annual reports on prevention of mother-to-child transmission 
              of the HIV infection.
Sec. 414. Pilot program of assistance for children and families 
              affected by HIV/AIDS.

                      TITLE V--BUSINESS PRINCIPLES

Sec. 501. Principles for United States firms operating in countries 
              affected by the HIV/AIDS pandemic.

                    TITLE VI--ADDITIONAL AUTHORITIES

Sec. 601. Authority of the Department of Health and Human Services.
Sec. 602. Microbicide research at the National Institutes of Health.
Sec. 603. Authority of the Department of Labor.
Sec. 604. Authority for international programs.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) During the last 20 years, HIV/AIDS has assumed pandemic 
     proportions, spreading from the most severely affected 
     region, sub-Saharan Africa, to all corners of the world, and 
     leaving an unprecedented path of death and devastation.
       (2) According to the Joint United Nations Programme on HIV/
     AIDS (UNAIDS), more than 60,000,000 people worldwide have 
     been infected with HIV since the epidemic began; more than 
     22,000,000 of these have lost their lives to the disease; and 
     more than 13,000,000 children have been orphaned by the 
     disease. HIV/AIDS is the fourth-highest cause of death in the 
     world.
       (3) At the end of 2001, an estimated 40,000,000 people were 
     infected with HIV or living with AIDS. Of these, more than 
     2,700,000 were children under the age of fifteen and more 
     than 17,600,000 were women.

[[Page 12769]]

     Women are four times more vulnerable to infection than are 
     men and are becoming infected at increasingly high rates 
     because in many societies women lack control over sexual 
     encounters and cannot insist on the use of protective 
     measures. Women and children who are refugees or are 
     internally displaced persons are especially vulnerable to 
     sexual violence, thereby increasing the possibility of HIV 
     infection.
       (4) As the leading cause of death in sub-Saharan Africa, 
     AIDS has killed more than 17,000,000 people (more than 3 
     times the number of AIDS deaths in the rest of the world) and 
     will claim the lives of one-quarter of the population, mostly 
     adults, in the next decade.
       (5) An estimated 1,800,000 people in Latin America and the 
     Caribbean and another 7,100,000 people in Asia and the 
     Pacific region are infected with HIV or living with AIDS. 
     Infection rates are rising alarmingly in Eastern Europe 
     (especially in the Russian Federation), Central Asia, and 
     China.
       (6) HIV/AIDS threatens personal security by affecting the 
     health, lifespan, and productive capacity of the individual 
     and the social cohesion and economic well-being of the 
     family.
       (7) HIV/AIDS undermines the economic security of a country 
     and individual businesses in that country by weakening the 
     productivity and longevity of the labor force across a broad 
     array of economic sectors and by reducing the potential for 
     economic growth over the long term.
       (8) HIV/AIDS destabilizes communities by striking at the 
     most mobile and educated members of society, many of whom are 
     responsible for security at the local level and governance at 
     the national and subnational levels as well as many teachers, 
     health care personnel, and other community workers vital to 
     community development and the effort to combat HIV/AIDS. In 
     some countries the overwhelming challenges of the HIV/AIDS 
     epidemic are accelerating the outward migration of critically 
     important health care professionals.
       (9) HIV/AIDS weakens the defenses of countries severely 
     affected by the HIV/AIDS crisis through high infection rates 
     among members of their military forces. According to UNAIDS, 
     in sub-Saharan Africa, many military forces have infection 
     rates as much as five times that of the civilian population.
       (10) HIV/AIDS poses a serious security issue for the 
     international community by--
       (A) increasing the potential for political instability and 
     economic devastation, particularly in those countries and 
     regions most severely affected by the disease; and
       (B) decreasing the capacity to resolve conflicts through 
     the introduction of peacekeeping forces because the 
     environments into which these forces are introduced pose a 
     high risk for the spread of HIV/AIDS.
       (11) The devastation wrought by the HIV/AIDS pandemic is 
     compounded by the prevalence of tuberculosis and malaria, 
     particularly in developing countries where the poorest and 
     most vulnerable members of society, including women, 
     children, and those living with HIV/AIDS, become infected. 
     According to the World Health Organization (WHO), HIV/AIDS, 
     tuberculosis, and malaria accounted for more than 5,700,000 
     deaths in 2001 and caused debilitating illnesses in millions 
     more.
       (12) Tuberculosis is the cause of death for one out of 
     every three people with AIDS worldwide and is a highly 
     communicable disease. HIV infection is the leading threat to 
     tuberculosis control. Because HIV infection so severely 
     weakens the immune system, individuals with HIV and latent 
     tuberculosis infection have a 100 times greater risk of 
     developing active tuberculosis diseases thereby increasing 
     the risk of spreading tuberculosis to others. Tuberculosis, 
     in turn, accelerates the onset of AIDS in individuals 
     infected with HIV.
       (13) Malaria, the most deadly of all tropical parasitic 
     diseases, has been undergoing a dramatic resurgence in recent 
     years due to increasing resistance of the malaria parasite to 
     inexpensive and effective drugs. At the same time, increasing 
     resistance of mosquitoes to standard insecticides makes 
     control of transmission difficult to achieve. The World 
     Health Organization estimates that between 300,000,000 and 
     500,000,000 new cases of malaria occur each year, and annual 
     deaths from the disease number between 2,000,000 and 
     3,000,000. Persons infected with HIV are particularly 
     vulnerable to the malaria parasite. The spread of HIV 
     infection contributes to the difficulties of controlling 
     resurgence of the drug resistant malaria parasite.
       (14) Although HIV/AIDS is first and foremost a health 
     problem, successful strategies to stem the spread of the 
     pandemic will require not only medical interventions, the 
     strengthening of health care delivery systems and 
     infrastructure and determined national leadership and 
     increased budgetary allocations for the health sector in 
     countries affected by the epidemic but also measures to 
     address the social and behavioral causes of the problem and 
     its impact on families, communities, and societal sectors.
       (15) Basic interventions to prevent new HIV infections and 
     to bring care and treatment to people living with AIDS, such 
     as voluntary counseling and testing and mother-to-child 
     transmission programs, are achieving meaningful results and 
     are cost-effective. The challenge is to expand these 
     interventions from a pilot program basis to a national basis 
     in a coherent and sustainable manner.
       (16) The magnitude and scope of the HIV/AIDS crisis demands 
     a comprehensive, long-term, international response focused 
     upon addressing the causes, reducing the spread, and 
     ameliorating the consequences of the HIV/AIDS pandemic, 
     including--
       (A) prevention and education, care and treatment, basic and 
     applied research, and training of health care workers, 
     particularly at the community and provincial levels, and 
     other community workers and leaders needed to cope with the 
     range of consequences of the HIV/AIDS crisis;
       (B) development of health care infrastructure and delivery 
     systems through cooperative and coordinated public efforts 
     and public and private partnerships;
       (C) development and implementation of national and 
     community-based multisector strategies that address the 
     impact of HIV/AIDS on the individual, family, community, and 
     nation and increase the participation of at-risk populations 
     in programs designed to encourage behavioral and social 
     change and reduce the stigma associated with HIV/AIDS; and
       (D) coordination of efforts between international 
     organizations such as the Global Fund to Fight AIDS, 
     Tuberculosis and Malaria, the Joint United Nations Programme 
     on HIV/AIDS (UNAIDS), the World Health Organization (WHO), 
     national governments, and private sector organizations.
       (17) The United States has the capacity to lead and enhance 
     the effectiveness of the international community's response 
     by--
       (A) providing substantial financial resources, technical 
     expertise, and training, particularly of health care 
     personnel and community workers and leaders;
       (B) promoting vaccine and microbicide research and the 
     development of new treatment protocols in the public and 
     commercial pharmaceutical research sectors;
       (C) encouraging governments and community-based 
     organizations to adopt policies that treat HIV/AIDS as a 
     multisectoral problem affecting not only health but other 
     areas such as education, the economy, the family and society, 
     and assisting them to develop and implement programs 
     corresponding to these needs; and
       (D) encouraging active involvement of the private sector, 
     including businesses, pharmaceutical and biotechnology 
     companies, the medical and scientific communities, charitable 
     foundations, private and voluntary organizations and 
     nongovernmental organizations, faith-based organizations, 
     community-based organizations, and other nonprofit entities.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) AIDS.--The term ``AIDS'' means the acquired immune 
     deficiency syndrome.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (3) Designated congressional committees.--The term 
     ``designated congressional committees'' means the Committee 
     on Foreign Relations and the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on 
     International Relations and the Committee on Energy and 
     Commerce of the House of Representatives.
       (4) Global fund.--The term ``Global Fund'' means the 
     public-private partnership known as the Global Fund to Fight 
     AIDS, Tuberculosis and Malaria that was established upon the 
     call of the United Nations Secretary General in April 2001.
       (5) HIV.--The term ``HIV'' means the human immunodeficiency 
     virus, the pathogen that causes AIDS.
       (6) HIV/AIDS.--The term ``HIV/AIDS'' means, with respect to 
     an individual, an individual who is infected with HIV or 
     living with AIDS.
       (7) Relevant executive branch agencies.--The term 
     ``relevant Executive branch agencies'' means the Department 
     of State, the United States Agency for International 
     Development, the Department of Health and Human Services 
     (including the Centers for Disease Control and Prevention, 
     the Health Resources and Services Administration, the 
     National Institutes of Health, the Agency for Health Care 
     Research and Quality, and the Food and Drug Administration), 
     the Department of Labor, the Department of Commerce, the 
     Department of the Treasury, and the Department of Defense.

     SEC. 4. PURPOSE.

       The purpose of this Act is to strengthen United States 
     leadership and the effectiveness of the United States 
     response to certain global infectious diseases by--
       (1) establishing a comprehensive, integrated five-year, 
     global strategy to fight HIV/AIDS that encompasses a plan for 
     phased expansion of critical programs and improved 
     coordination among relevant Executive branch agencies and 
     between the United States and foreign governments and 
     international organizations;

[[Page 12770]]

       (2) providing increased resources for multilateral efforts 
     to fight HIV/AIDS;
       (3) providing increased resources for United States 
     bilateral efforts, particularly for technical assistance and 
     training, to combat HIV/AIDS, tuberculosis, and malaria;
       (4) encouraging the expansion of private sector efforts and 
     expanding public-private sector partnerships to combat HIV/
     AIDS; and
       (5) intensifying efforts to support the development of 
     vaccines and treatment for HIV/AIDS, tuberculosis, and 
     malaria.

               TITLE I--POLICY PLANNING AND COORDINATION

     SEC. 101. DEVELOPMENT OF A COMPREHENSIVE, FIVE-YEAR, GLOBAL 
                   STRATEGY.

       (a) Strategy.--The President shall establish a 
     comprehensive, integrated, five-year strategy to combat 
     global HIV/AIDS that promotes the goals and objectives of the 
     Declaration of Commitment on HIV/AIDS, adopted by the United 
     Nations General Assembly at its Special Session on HIV/AIDS 
     in June 2001, and strengthens the capacity of the United 
     States to be an effective leader of the international 
     campaign against HIV/AIDS. Such strategy shall--
       (1) include specific objectives, multisectoral approaches, 
     and specific strategies to treat individuals infected with 
     HIV/AIDS and to prevent the further spread of HIV infections, 
     with a particular focus on the needs of women, young people, 
     and children;
       (2) assign priorities for relevant Executive branch 
     agencies;
       (3) improve coordination among relevant Executive branch 
     agencies and foreign governments and international 
     organizations;
       (4) project general levels of resources needed to achieve 
     the stated objectives;
       (5) expand public-private partnerships and the leveraging 
     of resources; and
       (6) maximize United States capabilities in the areas of 
     technical assistance and training and research, including 
     vaccine research.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the President shall submit to 
     designated congressional committees a report setting forth 
     the strategy described in subsection (a).
       (2) Report elements.--The report required by paragraph (1) 
     shall include a discussion of the following:
       (A) The objectives, general and specific, of the strategy.
       (B) A description of the criteria for determining success 
     of the strategy.
       (C) A description of the manner in which the strategy will 
     address the fundamental elements of prevention and education; 
     care and treatment, including increasing access to 
     pharmaceuticals and to vaccines and microbicides when 
     available; research, including incentives for vaccine 
     development and new protocols; and training of health care 
     workers, and the development of health care infrastructure 
     and delivery systems.
       (D) A description of the manner in which the strategy will 
     promote the development and implementation of national and 
     community-based multisectoral strategies and programs, 
     including those designed to enhance leadership capacity 
     particularly at the community level.
       (E) A description of the specific strategies developed to 
     meet the unique needs of women, including the empowerment of 
     women in interpersonal situations, young people and children, 
     including those orphaned by HIV/AIDS.
       (F) A description of the programs to be undertaken to 
     maximize United States contributions in the areas of 
     technical assistance, training particularly of health care 
     workers and community-based leaders in affected sectors, and 
     research including the promotion of research on vaccines.
       (G) An identification of the relevant Executive branch 
     agencies that will be involved and the assignment of 
     priorities to those agencies.
       (H) A description of the role of each relevant Executive 
     branch agency and the types of programs that the agency will 
     be undertaking.
       (I) A description of the mechanisms that will be utilized 
     to coordinate the efforts of the relevant Executive branch 
     agencies, to avoid duplication of efforts, to enhance on-site 
     coordination efforts, and to ensure that each agency 
     undertakes programs primarily in those areas where the agency 
     has the greatest expertise, technical capabilities, and 
     potential for success.
       (J) A description of the mechanisms that will be utilized 
     to ensure greater coordination between the United States and 
     foreign governments and international organizations including 
     the Global Fund, UNAIDS, international financial 
     institutions, and private sector organizations.
       (K) The level of resources that will be needed on an annual 
     basis and the manner in which those resources would generally 
     be allocated among relevant Executive agencies.
       (L) A description of the mechanisms to be established for 
     monitoring and evaluating programs and for terminating 
     unsuccessful programs.
       (M) A description of the manner in which private, 
     nongovernmental entities will factor into the United States 
     Government-led effort and a description of the type of 
     partnerships that will be created to maximize the 
     capabilities of these private sector entities and to leverage 
     resources.
       (N) A description of the manner in which the United States 
     strategy for combating HIV/AIDS relates to and promotes the 
     goals and objectives of the United Nations General Assembly's 
     Declaration of Commitment on HIV/AIDS.
       (O) A description of the ways in which United States 
     leadership will be used to enhance the overall international 
     response to the HIV/AIDS pandemic and particularly to 
     heighten the engagement of the member states of the G-8 and 
     to strengthen key financial and coordination mechanisms such 
     as the Global Fund and UNAIDS.
       (P) A description of the manner in which the United States 
     strategy for combating HIV/AIDS relates to and enhances other 
     United States assistance strategies in developing countries.

     SEC. 102. COMPREHENSIVE PLAN TO EMPOWER WOMEN TO PREVENT THE 
                   SPREAD OF HIV/AIDS.

       (a) Statement of Policy.--It is in the national interest of 
     the United States--
       (1) to assist in empowering women socially, economically, 
     and intellectually to prevent coercive practices which 
     contribute to the spread of HIV/AIDS;
       (2) to ensure that there are affordable effective female 
     controlled preventative technologies widely available;
       (3) to assist in providing adequate pre- and post-natal 
     care to women infected with HIV or living with AIDS to 
     prevent an increase in the number of AIDS orphans; and
       (4) to educate communities in order to lessen the stigma 
     facing women who are infected with HIV or living with AIDS.
       (b) Development of Plan.--The United States Agency for 
     International Development, working in conjunction with other 
     relevant Executive branch agencies, shall develop a 
     comprehensive plan to empower women to protect themselves 
     against the spread of HIV/AIDS. The plan shall include--
       (1) immediately providing women greatly increased access to 
     and program support for currently available prevention 
     technologies for women and microbicides when they become 
     available;
       (2) providing funding for research to develop safe, 
     effective, usable microbicides, including support for--
       (A) development and preclinical evaluation of topical 
     microbicides;
       (B) the conduct of clinical studies of candidate 
     microbicides to assess safety, acceptability, and 
     effectiveness in reducing the HIV infection and other 
     sexually transmitted infections;
       (C) behavioral and social science research relevant to 
     microbicide development, testing, acceptability, and use; and
       (D) introductory studies of safe and effective microbicides 
     in developing countries;
       (3) increasing women's access to microfinance programs;
       (4) comprehensive education for women and girls including 
     health education that emphasizes skills building on 
     negotiation and the prevention of sexually transmitted 
     infections and other related reproductive health risks and 
     strategies that emphasize the delay of sexual debut;
       (5) community-based strategies to combat gender-based 
     violence and sexual coercion of women and minors;
       (6) expansion of peer education strategies for men which 
     emphasize responsible sexual behavior and consultation with 
     their wives and partners in making decisions about sex and 
     reproduction;
       (7) resources for households headed by females caring for 
     AIDS orphans;
       (8) followup monitoring of and care and support for post-
     natal women living with HIV or at high risk of infection; and
       (9) targeted plans to reduce the vulnerability of HIV/AIDS 
     for women, young people, and children who are refugees or 
     internally displaced persons.
       (c) Requirement.--The plan shall specify, for the 
     assistance to achieve each of the objectives set forth in 
     paragraphs (1) through (9) of subsection (b), the section of 
     the Foreign Assistance Act of 1961 or other law that 
     authorizes such assistance.
       (d) Staffing.--The Administrator of the United States 
     Agency for International Development shall ensure that the 
     Agency dedicates a sufficient number of employees to 
     implementing the plan described in subsection (b).
       (e) Report.--Not later than 270 days after the date of 
     enactment of this Act and every year for the next 3 years 
     thereafter, the Administrator of the United States Agency for 
     International Development shall submit to the appropriate 
     congressional committees a report on the plan being 
     implemented by the United States Agency for International 
     Development on empowering women in order to prevent the 
     spread of HIV/AIDS. The report shall include a description 
     of--
       (1) the programs being carried out that are specifically 
     targeted at women and girls to educate them about the spread 
     of HIV/AIDS and the use and availability of currently 
     available prevention technologies for women, together with 
     the number of women and girls reached through these programs;
       (2) the steps taken to increase the availability of such 
     technologies; and
       (3) the progress on developing a safe, effective, user-
     friendly microbicide.

[[Page 12771]]



     SEC. 103. HIV/AIDS RESPONSE COORDINATOR.

       (a) Establishment of Position.--Section 1 of the State 
     Department Basic Authorities Act of 1956 (22 U.S.C. 265(a)) 
     is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by adding after subsection (e) the following:
       ``(f) HIV/AIDS Response Coordinator.--
       ``(1) In general.--There shall be within the Department of 
     State a Coordinator of United States Government Activities to 
     Combat HIV/AIDS Globally, who shall be appointed by the 
     President, by and with the advice and consent of the Senate. 
     The Coordinator shall report directly to the Secretary of 
     State and shall have the rank and status of ambassador.
       ``(2) Duties.--
       ``(A) In general.--The Coordinator shall have primary 
     responsibility for the oversight and coordination of all 
     activities of the United States Government to combat the 
     international HIV/AIDS pandemic, including all programs, 
     projects, and activities of the United States Government 
     under titles I through V of the United States Leadership 
     Against HIV/AIDS, Tuberculosis, and Malaria Act of 2002 or 
     any amendment made by those titles.
       ``(B) Specific duties.--The duties of the Coordinator shall 
     specifically include the following:
       ``(i) Ensuring program and policy coordination among the 
     relevant Executive branch agencies.
       ``(ii) Ensuring that each relevant Executive branch agency 
     undertakes programs primarily in those areas where the agency 
     has the greatest expertise, technical capabilities, and 
     potential for success.
       ``(iii) Avoiding duplication of effort.
       ``(iv) Enhancing onsite coordination.
       ``(v) Pursuing coordination with other countries and 
     international organizations.
       ``(vi) Resolving policy, program, and funding disputes 
     among the relevant Executive branch agencies.''.
       (b) First Coordinator.--The President may designate the 
     incumbent Special Representative of the Secretary of State 
     for HIV/AIDS as of the date of enactment of this Act as the 
     first Coordinator of United States Government Activities to 
     Combat HIV/AIDS Globally.

     SEC. 104. REPORT ON REVERSING THE EXODUS OF CRITICAL TALENT.

       (a) In General.--Not later than one year after the date of 
     enactment of this Act, the President shall submit a report to 
     designated congressional committees analyzing the emigration 
     of critically important medical and public health personnel, 
     including physicians, nurses, and supervisors from sub-
     Saharan African countries that are acutely impacted by HIV/
     AIDS.
       (b) Elements of the Report.--The report shall include--
       (1) an analysis of the causes for the exodus of such 
     personnel, the present and projected trend lines, and the 
     impact on the stability of health infrastructures; and
       (2) a description of incentives and programs that the 
     United States could provide, in concert with other private 
     and public sector partners and international organizations, 
     to stabilize health institutions by encouraging critical 
     personnel to remain in their home countries.

                 TITLE II--PUBLIC-PRIVATE PARTNERSHIPS

     SEC. 201. SENSE OF CONGRESS ON PUBLIC-PRIVATE PARTNERSHIPS.

       (a) Findings.--Congress makes the following findings:
       (1) Innovative partnerships between governments and 
     organizations in the private sector (including foundations, 
     universities, corporations, faith-based and community-based 
     organizations, and other nongovernmental organizations) have 
     proliferated in recent years, particularly in the area of 
     health.
       (2) Public-private sector partnerships multiply local and 
     international capacities to strengthen the delivery of health 
     services in developing countries and to accelerate research 
     for vaccines and other pharmaceutical products that are 
     essential to combat infectious diseases decimating the 
     populations of these countries.
       (3) These partnerships maximize the unique capabilities of 
     each sector while combining financial and other resources, 
     scientific knowledge, and expertise toward common goals which 
     neither the public nor the private sector can achieve alone.
       (4) Sustaining existing public-private partnerships and 
     building new ones are critical to the success of the 
     international community's efforts to combat HIV/AIDS and 
     other infectious diseases around the globe.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) the sustainment and promotion of public-private 
     partnerships should be a priority element of the strategy 
     pursued by the United States to combat the HIV/AIDS pandemic 
     and other global health crises; and
       (2) the United States should systematically track the 
     evolution of these partnerships and work with others in the 
     public and private sector to profile and build upon those 
     models that are most effective.

     SEC. 202. PARTICIPATION IN THE GLOBAL FUND TO FIGHT AIDS, 
                   TUBERCULOSIS, AND MALARIA.

       (a) Authority for United States Participation.--
       (1) United states participation.--The United States is 
     hereby authorized to participate in the Global Fund to Fight 
     AIDS, Tuberculosis and Malaria.
       (2) Privileges and immunities.--The Global Fund shall be 
     considered a public international organization for purposes 
     of section 1 of the International Organizations Immunities 
     Act (22 U.S.C. 288).
       (b) Reports to Congress.--Not later than one year after the 
     date of the enactment of this Act, and annually thereafter 
     for the duration of the Global Fund, the President shall 
     submit to the appropriate congressional committees a report 
     on the Global Fund, including contributions pledged, 
     contributions received (including donations from the private 
     sector), projects funded, and the mechanisms established for 
     transparency and accountability in the grant making process.
       (c) United States Financial Participation.--
       (1) Authorization of appropriations.--In addition to funds 
     otherwise available for such purpose, there are authorized to 
     be appropriated to the President $1,000,000,000 for the 
     fiscal year 2003 and $1,200,000,000 for the fiscal year 2004 
     for contributions to the Global Fund.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (3) Reprogramming of fiscal year 2001 funds.--Funds made 
     available for fiscal year 2001 under section 141 of the 
     Global AIDS and Tuberculosis Relief Act of 2000--
       (A) are authorized to remain available until expended; and
       (B) shall be transferred to, merged with, and made 
     available for the same purposes as, funds made available for 
     fiscal year 2002 under paragraph (1).
       (4) Statutory construction.--Nothing in this Act may be 
     construed to substitute for, or reduce resources provided 
     under any other law for bilateral and multilateral HIV/AIDS, 
     tuberculosis, and malaria programs.

     SEC. 203. VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL VACCINE 
                   FUNDS.

       (a) Vaccine Fund.--Section 302(k) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2222(k)) is amended--
       (1) by striking ``$50,000,000'' and all that follows 
     through ``2002'' and inserting ``$60,000,000 for the fiscal 
     year 2003 and $70,000,000 for the fiscal year 2004''; and
       (2) by striking ``Global Alliance for Vaccines and 
     Immunizations'' and inserting ``Vaccine Fund''.
       (b) International AIDS Vaccine Initiative.--Section 302(l) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2222(l)) is 
     amended by striking ``$10,000,000'' and all that follows 
     through ``2002'' and inserting ``$12,000,000 for the fiscal 
     year 2003 and $15,000,000 for the fiscal year 2004''.
       (c) Malaria Vaccine Initiative of the Program for 
     Appropriate Technologies in Health (PATH).--Section 302 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2222)) is 
     amended by adding at the end the following new subsection:
       ``(m) In addition to amounts otherwise available under this 
     section, there are authorized to be appropriated to the 
     President $5,000,000 for the fiscal year 2003 and $6,000,000 
     for the fiscal year 2004 to be available only for United 
     States contributions to the Malaria Vaccine Initiative of the 
     Program for Appropriate Technologies in Health (PATH).''
       (d) Effective Date.--The amendments made by this section 
     shall take effect October 1, 2002.

                    TITLE III--MULTILATERAL EFFORTS

     SEC. 301. IMPROVEMENT OF THE ENHANCED HIPC INITIATIVE.

       (a) Amendment of the International Financial Institutions 
     Act.--Title XVI of the International Financial Institutions 
     Act (22 U.S.C. 262p-262p-5) is amended by adding at the end 
     the following new section:

     ``SEC. 1625. IMPROVEMENT OF THE ENHANCED HIPC INITIATIVE.

       ``(a) Authority.--In order to ensure that the Enhanced HIPC 
     Initiative achieves the objective of substantially increasing 
     resources available for human development and poverty 
     reduction in heavily indebted poor countries, the Secretary 
     of the Treasury is authorized and requested to conclude as 
     soon as possible an agreement within the Paris Club of 
     Official Creditors, as well as the International Bank for 
     Reconstruction and Development (World Bank), the 
     International Monetary Fund, and other appropriate 
     multilateral development institutions to accomplish the 
     modifications in the Enhanced HIPC Initiative described in 
     subsection (b).
       ``(b) Agreement.--The agreement referred to in subsection 
     (a) is an agreement that provides the following:
       ``(1) Level of exports and revenues.--
       ``(A) In general.--The amount of debt stock reduction 
     approved for a country eligible for debt relief under the 
     Enhanced HIPC Initiative shall be sufficient to reduce, for 
     at least each of the first 3 years after date of enactment of 
     this section or the Decision Point, whichever is later--
       ``(i) the net present value of the outstanding public and 
     publicly guaranteed debt of the country to not more than 150 
     percent

[[Page 12772]]

     of the annual value of exports of the country for the year 
     preceding the Decision Point; and
       ``(ii) the annual payments due on such public and publicly 
     guaranteed debt to not more than 10 percent or, in the case 
     of a country suffering a public health crisis (as defined in 
     subsection (c)), not more than 5 percent, of the amount of 
     the annual current revenues received by the country from 
     internal sources.
       ``(B) Limitation.--In financing the objectives of the 
     Enhanced HIPC Initiative, an international financial 
     institution shall give priority to using its own resources.
       ``(2) Relation to poverty and the environment.--The debt 
     cancellation under the Enhanced HIPC Initiative shall not be 
     conditioned on any agreement by an impoverished country to 
     implement or comply with policies that deepen poverty or 
     degrade the environment, including any policy that--
       ``(A) implements or extends user fees on primary education 
     or primary health care, including prevention and treatment 
     efforts for HIV/AIDS, tuberculosis, malaria, and infant, 
     child, and maternal well-being;
       ``(B) provides for increased cost recovery from poor people 
     to finance basic public services such as education, health 
     care, clean water, or sanitation;
       ``(C) reduces the country's minimum wage to a level of less 
     than $2 per day or undermines workers' ability to exercise 
     effectively their internationally recognized worker rights, 
     as defined under section 526(e) of the Foreign Operations, 
     Export Financing and Related Programs Appropriations Act, 
     1995 (22 U.S.C. 262p-4p); or
       ``(D) promotes unsustainable extraction of resources or 
     results in reduced budget support for environmental programs.
       ``(3) Foreign government policies.--A country shall not be 
     eligible for cancellation of debt under the Enhanced HIPC 
     Initiative if the government of the country--
       ``(A) has repeatedly provided support for acts of 
     international terrorism, as determined by the Secretary of 
     State under section 6(j)(1) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)(1)) or section 620A(a) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)); and
       ``(B) engages in a consistent pattern of gross violations 
     of internationally recognized human rights (including its 
     military or other security forces).
       ``(4) Programs to combat hiv/aids, tuberculosis, and 
     malaria.--A country that is otherwise eligible to receive 
     cancellation of debt under the Enhanced HIPC Initiative may 
     receive such cancellation only if the country has agreed--
       ``(A) in the case of a country suffering a public health 
     crisis (as defined in subsection (c)), to ensure that, where 
     practicable, 10 to 20 percent of the financial benefits of 
     debt cancellation are applied to programs to combat HIV/AIDS, 
     tuberculosis, and malaria in that country;
       ``(B) to ensure that the financial benefits of debt 
     cancellation are applied to programs to combat poverty (in 
     particular through concrete measures to improve basic 
     services in education, nutrition, and health), and to redress 
     environmental degradation;
       ``(C) to ensure that the financial benefits of debt 
     cancellation are in addition to the government's total 
     spending on programs to combat HIV/AIDS and poverty reduction 
     for the previous year or the average total of such 
     expenditures for the previous 3 years, whichever is greater;
       ``(D) to implement transparent and participatory 
     policymaking and budget procedures, good governance, and 
     effective anticorruption measures; and
       ``(E) to broaden public participation and popular 
     understanding of the principles and goals of poverty 
     reduction.
       ``(c) Definitions.--In this section:
       ``(1) Country suffering a public health crisis.--The term 
     `country suffering a public health crisis' means--
       ``(A) a country in which HIV/AIDS, tuberculosis, or malaria 
     is causing significant family, community, or societal 
     disruption; and
       ``(B) a country that has rapidly rising rates of incidence 
     of at least one of such diseases that is likely to lead to 
     conditions described in subparagraph (A).
       ``(2) Decision point.--The term `Decision Point' means the 
     date on which the executive boards of the World Bank and the 
     International Monetary Fund review the debt sustainability 
     analysis for a country and determine that the country is 
     eligible for debt relief under the Enhanced HIPC Initiative.
       ``(3) Enhanced hipc initiative.--The term `Enhanced HIPC 
     Initiative' means the multilateral debt initiative for 
     heavily indebted poor countries presented in the Report of G-
     7 Finance Ministers on the Cologne Debt Initiative to the 
     Cologne Economic Summit, Cologne, June 18-20, 1999.''.
       (b) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated to 
     the President such sums as may be necessary for the fiscal 
     year 2003 and each fiscal year thereafter to carry out 
     section 1625 of the International Financial Institutions Act, 
     as added by subsection (a).
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.

     SEC. 302. REPORTS ON IMPLEMENTATION OF IMPROVEMENTS TO THE 
                   ENHANCED HIPC INITIATIVE.

       (a) Initial Report.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary of the Treasury shall 
     submit to the appropriate congressional committees a report 
     describing the progress made in concluding an agreement under 
     section 1625(b) of the International Financial Institutions 
     Act (as added by section 301 of this Act) to modify the 
     Enhanced HIPC Initiative.
       (b) Subsequent Report.--Not later than one year after the 
     date of submission of the initial report under subsection 
     (a), the Secretary of the Treasury shall submit to the 
     appropriate congressional committees a report describing the 
     actions taken by countries to satisfy the conditions set 
     forth in the agreement referred to in subsection (a).

                      TITLE IV--BILATERAL EFFORTS

              Subtitle A--General Assistance and Programs

     SEC. 401. ASSISTANCE TO COMBAT HIV/AIDS.

       (a) Amendment of the Foreign Assistance Act of 1961.--
     Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151 et seq.) is amended--
       (1) in section 104(c) (22 U.S.C. 2151b(c)), by striking 
     paragraphs (4) through (7); and
       (2) by inserting after section 104 the following new 
     section:

     ``SEC. 104A. ASSISTANCE TO COMBAT HIV/AIDS.

       ``(a) Finding.--Congress recognizes that the alarming 
     spread of HIV/AIDS in countries in sub-Saharan Africa and 
     other developing countries is a major global health, national 
     security, and humanitarian crisis.
       ``(b) Policy.--It is a major objective of the foreign 
     assistance program of the United States to provide assistance 
     for the prevention, treatment, and control of HIV/AIDS. The 
     United States and other developed countries should provide 
     assistance to countries in sub-Saharan Africa and other 
     countries and areas to control this crisis through HIV/AIDS 
     prevention, treatment, monitoring, and related activities, 
     particularly activities focused on women and youth, including 
     strategies to prevent mother-to-child transmission of the HIV 
     infection.
       ``(c) Authorization.--
       ``(1) In general.--Consistent with section 104(c), the 
     President is authorized to furnish assistance, on such terms 
     and conditions as the President may determine, to prevent, 
     treat, and monitor HIV/AIDS, and carry out related 
     activities, in countries in sub-Saharan Africa and other 
     countries and areas.
       ``(2) Role of ngos.--It is the sense of Congress that the 
     President should provide an appropriate level of assistance 
     under paragraph (1) through nongovernmental organizations in 
     countries in sub-Saharan Africa and other countries and areas 
     affected by the HIV/AIDS pandemic.
       ``(3) Coordination of assistance efforts.--The President 
     shall coordinate the provision of assistance under paragraph 
     (1) with the provision of related assistance by the Joint 
     United Nations Programme on HIV/AIDS (UNAIDS), the United 
     Nations Children's Fund (UNICEF), the World Health 
     Organization (WHO), the United Nations Development Programme 
     (UNDP), the Global Fund to Fight AIDS, Tuberculosis and 
     Malaria and other appropriate international organizations 
     (such as the International Bank for Reconstruction and 
     Development), relevant regional multilateral development 
     institutions, national, state, and local governments of 
     foreign countries, appropriate governmental and 
     nongovernmental organizations, and relevant Executive branch 
     agencies.
       ``(d) Activities Supported.--Assistance provided under 
     subsection (c) shall, to the maximum extent practicable, be 
     used to carry out the following activities:
       ``(1) Prevention.--Prevention of HIV/AIDS through 
     activities including--
       ``(A) education, voluntary testing, and counseling 
     (including the incorporation of confidentiality protections 
     with respect to such testing and counseling), including 
     integration of such programs into health programs and the 
     inclusion in counseling programs of information on methods of 
     preventing transmission of the HIV infection, including 
     delaying sexual debut, abstinence, reduction of casual sexual 
     partnering, and, where appropriate, the use of condoms;
       ``(B) assistance for the purpose of preventing mother-to-
     child transmission of the HIV infection, including 
     medications to prevent such transmission and access to infant 
     formula and other alternatives for infant feeding;
       ``(C) assistance to ensure a safe blood supply, to 
     provide--
       ``(i) post-exposure prophylaxis to victims of rape and 
     sexual assault and in cases of occupational exposure of 
     health care workers; and
       ``(ii) necessary commodities, including test kits, 
     pharmaceuticals, and condoms;
       ``(D) assistance through nongovernmental organizations, 
     including faith-based organizations, particularly those 
     organizations that utilize both professionals and volunteers 
     with appropriate skills and experience, to establish and 
     implement culturally appropriate HIV/AIDS education and 
     prevention programs;
       ``(E) research on microbicides which prevent the spread of 
     HIV/AIDS; and

[[Page 12773]]

       ``(F) bulk purchases of available prevention technologies 
     for women and for appropriate program support for the 
     introduction and distribution of these technologies, as well 
     as education and training on the use of the technologies.
       ``(2) Treatment.--The treatment and care of individuals 
     with HIV/AIDS, including--
       ``(A) assistance to establish and implement programs to 
     strengthen and broaden indigenous health care delivery 
     systems and the capacity of such systems to deliver HIV/AIDS 
     pharmaceuticals and otherwise provide for the treatment of 
     individuals with HIV/AIDS, including clinical training for 
     indigenous organizations and health care providers;
       ``(B) assistance to strengthen and expand hospice and 
     palliative care programs to assist patients debilitated by 
     HIV/AIDS, their families, and the primary caregivers of such 
     patients, including programs that utilize faith-based and 
     community-based organizations; and
       ``(C) assistance for the purpose of the care and treatment 
     of individuals with HIV/AIDS through the provision of 
     pharmaceuticals, including antiretrovirals and other 
     pharmaceuticals and therapies for the treatment of 
     opportunistic infections, nutritional support, and other 
     treatment modalities.
       ``(3) Monitoring.--The monitoring of programs, projects, 
     and activities carried out pursuant to paragraphs (1) and 
     (2), including--
       ``(A) monitoring to ensure that adequate controls are 
     established and implemented to provide HIV/AIDS 
     pharmaceuticals and other appropriate medicines to poor 
     individuals with HIV/AIDS; and
       ``(B) appropriate evaluation and surveillance activities.
       ``(4) Pharmaceuticals.--
       ``(A) Procurement.--The procurement of HIV/AIDS 
     pharmaceuticals, antiviral therapies, and other appropriate 
     medicines, including medicines to treat opportunistic 
     infections.
       ``(B) Mechanisms for quality control and sustainable 
     supply.--Mechanisms to ensure that such HIV/AIDS 
     pharmaceuticals, antiretroviral therapies, and other 
     appropriate medicines are quality-controlled and sustainably 
     supplied.
       ``(C) Distribution.--The distribution of such HIV/AIDS 
     pharmaceuticals, antiviral therapies, and other appropriate 
     medicines (including medicines to treat opportunistic 
     infections) to qualified national, regional, or local 
     organizations for the treatment of individuals with HIV/AIDS 
     in accordance with appropriate HIV/AIDS testing and 
     monitoring requirements and treatment protocols and for the 
     prevention of mother-to-child transmission of the HIV 
     infection.
       ``(5) Related activities.--The conduct of related 
     activities, including--
       ``(A) the care and support of children who are orphaned by 
     the HIV/AIDS pandemic, including services designed to care 
     for orphaned children in a family environment which rely on 
     extended family members;
       ``(B) improved infrastructure and institutional capacity to 
     develop and manage education, prevention, and treatment 
     programs, including training and the resources to collect and 
     maintain accurate HIV surveillance data to target programs 
     and measure the effectiveness of interventions;
       ``(C) vaccine research and development partnership programs 
     with specific plans of action to develop a safe, effective, 
     accessible, preventive HIV vaccine for use throughout the 
     world; and
       ``(D) the development and expansion of financially 
     sustainable microfinance institutions and other income 
     generation programs that strengthen the economic and social 
     viability of communities afflicted by the HIV/AIDS pandemic, 
     including support for the savings and productive capacity of 
     affected poor households caring for orphans.
       ``(e) Annual Report.--
       ``(1) In general.--Not later than January 31 of each year, 
     the President shall submit to the Committee on Foreign 
     Relations of the Senate and the Committee on International 
     Relations of the House of Representatives a report on the 
     implementation of this section for the prior fiscal year.
       ``(2) Report elements.--Each report shall include--
       ``(A) a description of efforts made to implement the 
     policies set forth in this section;
       ``(B) a description of the programs established pursuant to 
     this section; and
       ``(C) a detailed assessment of the impact of programs 
     established pursuant to this section, including--
       ``(i) the effectiveness of such programs in reducing the 
     spread of the HIV infection, particularly in women and girls, 
     in reducing mother-to-child transmission of the HIV 
     infection, and in reducing mortality rates from HIV/AIDS; and
       ``(ii) the progress made toward improving health care 
     delivery systems (including the training of adequate numbers 
     of staff) and infrastructure to ensure increased access to 
     care and treatment.
       ``(f) Funding Limitation.--Of the funds made available to 
     carry out this section in any fiscal year, not more than 7 
     percent may be used for the administrative expenses of the 
     United States Agency for International Development in support 
     of activities described in this section. Such amount shall be 
     in addition to other amounts otherwise available for such 
     purposes.
       ``(g) Definitions.--In this section:
       ``(1) AIDS.--The term `AIDS' means acquired immune 
     deficiency syndrome.
       ``(2) HIV.--The term `HIV' means the human immunodeficiency 
     virus, the pathogen that causes AIDS.
       ``(3) HIV/AIDS.--The term `HIV/AIDS' means, with respect to 
     an individual, an individual who is infected with HIV or 
     living with AIDS.''.
       (b) Authorization of Appropriations.--
       (1) In general.--In addition to funds available under 
     section 104(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151b(c)) for such purpose or under any other 
     provision of that Act, there are authorized to be 
     appropriated to the President $800,000,000 for the fiscal 
     year 2003 and $900,000,000 for the fiscal year 2004 to carry 
     out section 104A of the Foreign Assistance Act of 1961, as 
     added by subsection (a).
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (3) Allocation of funds.--
       (A) Research on microbicides.--Of the amounts authorized to 
     be appropriated by paragraph (1) for the fiscal years 2003 
     and 2004, $20,000,000 for the fiscal year 2003 and 
     $24,000,000 for the fiscal year 2004 are authorized to be 
     available to carry out section 104A(d)(1)(D) of the Foreign 
     Assistance Act of 1961 (as added by subsection (a)), relating 
     to research on microbicides which prevent the spread of HIV/
     AIDS.
       (B) Pharmaceuticals.--Of the amounts authorized to be 
     appropriated by paragraph (1) for the fiscal years 2003 and 
     2004, $100,000,000 for the fiscal year 2003 and $120,000,000 
     for the fiscal year 2004 are authorized to be available to 
     carry out section 104A(d)(4) of the Foreign Assistance Act of 
     1961 (as added by subsection (a)), relating to the 
     procurement and distribution of HIV/AIDS pharmaceuticals.
       (4) Transfer of prior year funds.--Unobligated balances of 
     funds made available for the fiscal year 2001 or the fiscal 
     year 2002 under section 104(c)(6) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2151b(c)(6) (as in effect immediately 
     before the date of enactment of this Act) shall be 
     transferred to, merged with, and made available for the same 
     purposes as funds made available for fiscal year 2003 under 
     paragraph (1).

     SEC. 402. ASSISTANCE TO COMBAT TUBERCULOSIS.

       (a) Amendment of the Foreign Assistance Act of 1961.--
     Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151 et seq.), as amended by section 401 of this Act, 
     is further amended by inserting after section 104A the 
     following new section:

     ``SEC. 104B. ASSISTANCE TO COMBAT TUBERCULOSIS.

       ``(a) Findings.--Congress makes the following findings:
       ``(1) Congress recognizes the growing international problem 
     of tuberculosis and the impact its continued existence has on 
     those countries that had previously largely controlled the 
     disease.
       ``(2) Congress further recognizes that the means exist to 
     control and treat tuberculosis through expanded use of the 
     DOTS (Directly Observed Treatment Short-course) treatment 
     strategy and adequate investment in newly created mechanisms 
     to increase access to treatment, including the Global 
     Tuberculosis Drug Facility established in 2001 pursuant to 
     the Amsterdam Declaration to Stop TB.
       ``(b) Policy.--It is a major objective of the foreign 
     assistance program of the United States to control 
     tuberculosis, including the detection of at least 70 percent 
     of the cases of infectious tuberculosis, and the cure of at 
     least 85 percent of the cases detected, not later than 
     December 31, 2005, in those countries classified by the World 
     Health Organization as among the highest tuberculosis burden, 
     and not later than December 31, 2010, in all countries in 
     which the United States Agency for International Development 
     has established development programs.
       ``(c) Authorization.--To carry out this section and 
     consistent with section 104(c), the President is authorized 
     to furnish assistance, on such terms and conditions as the 
     President may determine, for the prevention, treatment, 
     control, and elimination of tuberculosis.
       ``(d) Coordination.--In carrying out this section, the 
     President shall coordinate with the World Health 
     Organization, the Global Fund to Fight AIDS, Tuberculosis, 
     and Malaria, the Department of Health and Human Services 
     (including the Centers for Disease Control and Prevention and 
     the National Institutes of Health), and other organizations 
     with respect to the development and implementation of a 
     comprehensive tuberculosis control program.
       ``(e) Annual Report.--Not later than January 31 of each 
     year, the President shall submit a report to the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives 
     specifying the increases in the number of people treated and 
     the increases in number of tuberculosis patients cured 
     through each program, project, or activity receiving United 
     States foreign assistance for tuberculosis control purposes.

[[Page 12774]]

       ``(f) Priority to DOTS Coverage.--In furnishing assistance 
     under subsection (c), the President shall give priority to 
     activities that increase directly observed treatment 
     shortcourse (DOTS) coverage, including funding for the Global 
     Tuberculosis Drug Facility and the Stop Tuberculosis 
     Partnership.
       ``(g) Definitions.--In this section:
       ``(1) DOTS.--The term `DOTS' or `Directly Observed 
     Treatment Short-course' means the World Health Organization-
     recommended strategy for treating tuberculosis.
       ``(2) Global tuberculosis drug facility.--The term `Global 
     Tuberculosis Drug Facility (GDF)' means the new initiative of 
     the Stop Tuberculosis Partnership to increase access to high-
     quality tuberculosis drugs to facilitate DOTS expansion.
       ``(3) Stop tuberculosis partnership.--The term `Stop 
     Tuberculosis Partnership' means the partnership of the World 
     Health Organization, donors including the United States, high 
     tuberculosis burden countries, multilateral agencies, and 
     nongovernmental and technical agencies committed to short- 
     and long-term measures required to control and eventually 
     eliminate tuberculosis as a public health problem in the 
     world.''.
       (b) Authorization of Appropriations.--
       (1) In general.--In addition to funds available under 
     section 104(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151b(c)) for such purpose or under any other 
     provision of that Act, there are authorized to be 
     appropriated to the President $150,000,000 for the fiscal 
     year 2003 and $200,000,000 for the fiscal year 2004 to carry 
     out section 104B of the Foreign Assistance Act of 1961, as 
     added by subsection (a).
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (3) Transfer of prior year funds.--Unobligated balances of 
     funds made available for the fiscal year 2001 or the fiscal 
     year 2002 under section 104(c)(7) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2151b(c)(7) (as in effect immediately 
     before the date of enactment of this Act) shall be 
     transferred to, merged with, and made available for the same 
     purposes as funds made available for fiscal year 2003 under 
     paragraph (1).

     SEC. 403. ASSISTANCE TO COMBAT MALARIA.

       (a) Amendment of the Foreign Assistance Act of 1961.--
     Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151 et seq.), as amended by sections 401 and 402 of 
     this Act, is further amended by inserting after section 104B 
     the following new section:

     ``SEC. 104C. ASSISTANCE TO COMBAT MALARIA.

       ``(a) Finding.--Congress finds that malaria kills more 
     people annually than any other communicable disease except 
     tuberculosis, that more than 90 percent of all malaria cases 
     are in sub-Saharan Africa, and that children and women are 
     particularly at risk. Congress recognizes that there are 
     cost-effective tools to decrease the spread of malaria and 
     that malaria is a curable disease if promptly diagnosed and 
     adequately treated.
       ``(b) Policy.--It is a major objective of the foreign 
     assistance program of the United States to provide assistance 
     for the prevention, control, and cure of malaria.
       ``(c) Authorization.--To carry out this section and 
     consistent with section 104(c), the President is authorized 
     to furnish assistance, on such terms and conditions as the 
     President may determine, for the prevention, treatment, 
     control, and elimination of malaria.
       ``(d) Coordination.--In carrying out this section, the 
     President shall coordinate with the World Health 
     Organization, the Global Fund to Fight AIDS, Tuberculosis, 
     and Malaria, the Department of Health and Human Services (the 
     Centers for Disease Control and Prevention and the National 
     Institutes of Health), and other organizations with respect 
     to the development and implementation of a comprehensive 
     malaria control program.
       ``(e) Annual Report.--Not later than January 31 of each 
     year, the President shall submit a report to the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives 
     specifying the increases in the number of people treated and 
     the increases in number of malaria patients cured through 
     each program, project, or activity receiving United States 
     foreign assistance for malaria control purposes.''.
       (b) Authorization of Appropriations.--
       (1) In general.--In addition to funds available under 
     section 104(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2151b(c)) for such purpose or under any other 
     provision of that Act, there are authorized to be 
     appropriated to the President $70,000,000 for the fiscal year 
     2003 and $80,000,000 for the fiscal year 2004 to carry out 
     section 104C of the Foreign Assistance Act of 1961, as added 
     by subsection (a).
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (3) Transfer of prior year funds.--Unobligated balances of 
     funds made available for the fiscal year 2001 or the fiscal 
     year 2002 under section 104(c) of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2151b(c) (as in effect immediately before 
     the date of enactment of this Act) and made available for the 
     control of malaria shall be transferred to, merged with, and 
     made available for the same purposes as funds made available 
     for fiscal year 2003 under paragraph (1).
       (c) Conforming Amendment.--Section 104(c) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2151b(c)), as amended by 
     section 401 of this Act, is further amended by adding after 
     paragraph (3) the following:
       ``(4) Relationship to other laws.--Assistance made 
     available under this subsection and sections 104A, 104B, and 
     104C, and assistance made available under chapter 4 of part 
     II to carry out the purposes of this subsection and such 
     other sections of this Act, may be made available in 
     accordance with this subsection and such other provisions of 
     this Act notwithstanding any other provision of law.''.

     SEC. 404. PILOT PROGRAM FOR THE PLACEMENT OF HEALTH CARE 
                   PROFESSIONALS IN OVERSEAS AREAS SEVERELY 
                   AFFECTED BY HIV/AIDS, TUBERCULOSIS, AND 
                   MALARIA.

       (a) In General.--The President shall establish a program to 
     demonstrate the feasibility of facilitating the service of 
     American health care professionals in sub-Saharan Africa and 
     other parts of the world severely affected by HIV/AIDS, 
     tuberculosis, and malaria.
       (b) Requirements.--Participants in the program shall--
       (1) provide basic health care services for those infected 
     and affected by HIV/AIDS, tuberculosis, and malaria in the 
     area in which they are serving;
       (2) provide on-the-job training to medical and other 
     personnel in the area in which they are serving to strengthen 
     the basic health care system of the affected countries;
       (3) provide health care educational training for residents 
     of the area in which they are serving;
       (4) serve for a period of up to two years; and
       (5) meet the eligibility requirements in subsection (d).
       (c) Eligibility Requirements.--To be eligible to 
     participate in the program, a candidate shall--
       (1) be a national of the United States who is a trained 
     health care professional and who meets the educational and 
     licensure requirements necessary to be such a professional 
     such as a physician, nurse, nurse practitioner, pharmacist, 
     or other individual determined to be appropriate by the 
     President; or
       (2) a retired commissioned officer of the Public Health 
     Service Corps.
       (d) Recruitment.--The President shall ensure that 
     information on the program is widely distributed, including 
     the distribution of information to schools for health 
     professionals, hospitals, clinics, and nongovernmental 
     organizations working in the areas of international health 
     and aid.
       (e) Placement of Participants.--To the maximum extent 
     practicable, participants in the program shall serve in the 
     poorest areas of the affected countries, where health care 
     needs are likely to be the greatest. The decision on the 
     placement of a participant should be made in consultation 
     with relevant officials of the affected country at both the 
     national and local level as well as with local community 
     leaders and organizations.
       (f) Extended Period of Service.--The President may extend 
     the period of service of a participant by an additional 
     period of 6 to 12 months.
       (g) Incentives.--The President may offer such incentives as 
     the President determines to be necessary to encourage 
     individuals to participate in the program, such as partial 
     payment of principal, interest, and related expenses on 
     government and commercial loans for educational expenses 
     relating to professional health training and, where possible, 
     deferment of repayments on such loans, the provision of 
     retirement benefits that would otherwise be jeopardized by 
     participation in the program, and other incentives.
       (h) Report.--Not later than 18 months after the date of 
     enactment of this Act, the President shall submit a report to 
     the designated congressional committees on steps taken to 
     establish the program, including--
       (1) the process of recruitment, including the venues for 
     recruitment, the number of candidates recruited, the 
     incentives offered, if any, and the cost of those incentives;
       (2) the process, including the criteria used, for the 
     selection of participants;
       (3) the number of participants placed, the countries in 
     which they were placed, and why those countries were 
     selected; and
       (4) the potential for expansion of the program.
       (i) Authorization of Appropriations.--
       (1) In general.--In addition to amounts otherwise available 
     for such purpose, there is authorized to be appropriated to 
     the President $10,000,000 for the fiscal year 2003 and 
     $20,000,000 for the fiscal year 2004 to carry out the 
     program.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.

     SEC. 405. DEPARTMENT OF DEFENSE HIV/AIDS PREVENTION 
                   ASSISTANCE PROGRAM.

       (a) Expansion of Program.--The Secretary of Defense is 
     authorized to expand, in accordance with this section, the 
     Department of Defense program of HIV/AIDS prevention 
     educational activities undertaken in

[[Page 12775]]

     connection with the conduct of United States military 
     training, exercises, and humanitarian assistance in sub-
     Saharan African countries.
       (b) Eligible Countries.--The Secretary of Defense may carry 
     out the program in all eligible countries. A country shall be 
     eligible for activities under the program if the country--
       (1) is a country suffering a public health crisis (as 
     defined in subsection (e)); and
       (2) participates in the military-to-military contacts 
     program of the Department of Defense.
       (c) Program Activities.--The Secretary of Defense shall 
     provide for the activities under the program--
       (1) to focus, to the extent possible, on military units 
     that participate in peace keeping operations; and
       (2) to include HIV/AIDS-related voluntary counseling and 
     testing and HIV/AIDS-related surveillance.
       (d) Authorization of Appropriations.--
       (1) In general.--Of the amount authorized to be 
     appropriated to the Department of Defense for operation and 
     maintenance of the Defense Health Program for the fiscal year 
     2003, $30,000,000 may be available for carrying out the 
     program described in subsection (a) as expanded pursuant to 
     this section.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.
       (e) Country Suffering a Public Health Crisis Defined.--In 
     this section, the term ``country suffering a public health 
     crisis'' means a country that has rapidly rising rates of 
     incidence of HIV/AIDS or in which HIV/AIDS is causing 
     significant family, community, or societal disruption.

     SEC. 406. REPORT ON TREATMENT ACTIVITIES BY RELEVANT 
                   EXECUTIVE BRANCH AGENCIES.

       (a) In General.--Not later than 15 months after the date of 
     enactment of this Act, the President shall submit to 
     designated congressional committees a report on the programs 
     and activities of the United States Agency for International 
     Development, the Centers for Disease Control and Prevention, 
     and other relevant Executive branch agencies that are 
     directed to the treatment of individuals in foreign countries 
     infected with HIV or living with AIDS.
       (b) Report Elements.--The report shall include--
       (1) a description of the activities of relevant Executive 
     branch agencies with respect to--
       (A) the treatment of opportunistic infections;
       (B) the use of antiretrovirals;
       (C) the status of research into successful treatment 
     protocols for individuals in the developing world; and
       (D) technical assistance and training of local health care 
     workers (in countries affected by the pandemic) to administer 
     antiretrovirals, manage side effects, and monitor patients' 
     viral loads and immune status;
       (2) information on existing pilot projects, including a 
     discussion of why a given population was selected, the number 
     of people treated, the cost of treatment, the mechanisms 
     established to ensure that treatment is being administered 
     effectively and safely, and plans for scaling up pilot 
     projects (including projected timelines and required 
     resources); and
       (3) an explanation of how those activities relate to 
     efforts to prevent the transmission of the HIV infection.

            Subtitle B--Assistance for Children and Families

     SEC. 411. FINDINGS.

       Congress makes the following findings:
       (1) Approximately 2,000 children around the world are 
     infected each day with HIV through mother-to-child 
     transmission. Transmission can occur during pregnancy, labor, 
     and delivery or through breast feeding. Over ninety percent 
     of these cases are in developing nations with little or no 
     access to public health facilities.
       (2) Mother-to-child transmission is largely preventable 
     with the proper application of pharmaceuticals, therapies, 
     and other public health interventions.
       (3) The drug nevirapine, reduces mother-to-child 
     transmission by nearly 50 percent. Universal availability of 
     this drug could prevent up to 400,000 infections per year and 
     dramatically reduce the number of AIDS-related deaths.
       (4) At the United Nations Special Session on HIV/AIDS in 
     June 2001, the United States committed to the specific goals 
     with respect to the prevention of mother-to-child 
     transmission, including the goals of reducing the proportion 
     of infants infected with HIV by 20 percent by the year 2005 
     and by 50 percent by the year 2010, as specified in the 
     Declaration of Commitment on HIV/AIDS adopted by the United 
     Nations General Assembly at the Special Session.
       (5) Several United States Government agencies including the 
     United States Agency for International Development and the 
     Centers for Disease Control are already supporting programs 
     to prevent mother-to-child transmission in resource-poor 
     nations and have the capacity to expand these programs 
     rapidly by working closely with foreign governments and 
     nongovernmental organizations.
       (6) Efforts to prevent mother-to-child transmission can 
     provide the basis for a broader response that includes care 
     and treatment of mothers, fathers, and other family members 
     that are infected with HIV or living with AIDS.
       (7) HIV/AIDS has devastated the lives of countless children 
     and families across the globe. Since the epidemic began, an 
     estimated 13,200,000 children under the age of 15 have been 
     orphaned by AIDS, that is they have lost their mother or both 
     parents to the disease. The Joint United Nations Program on 
     HIV/AIDS (UNAIDS) estimates that this number will double by 
     the year 2010.
       (8) HIV/AIDS also targets young people between the ages of 
     15 to 24, many of whom carry the burden of caring for family 
     members living with HIV/AIDS. An estimated 10,300,000 young 
     people are now living with HIV/AIDS. One-half of all new 
     infections are occurring among this age group.

     SEC. 412. POLICY AND REQUIREMENTS.

       (a) Policy.--The United States Government's response to the 
     global HIV/AIDS pandemic should place high priority on the 
     prevention of mother-to-child transmission, the care and 
     treatment of family members and caregivers, and the care of 
     children orphaned by AIDS. To the maximum extent possible, 
     the United States Government should seek to leverage its 
     funds by seeking matching contributions from the private 
     sector, other national governments, and international 
     organizations.
       (b) Requirements.--The 5-year United States Government 
     strategy required by section 101 of this Act shall--
       (1) provide for meeting or exceeding the goal set by the 
     United Nations General Assembly Declaration of Commitment on 
     HIV/AIDS to reduce the rate of mother-to-child transmission 
     of HIV by 20 percent by 2005 and by 50 percent by 2010;
       (2) include programs to make available testing and 
     treatment to HIV-positive women and their family members, 
     including drug treatment and therapies to prevent mother-to-
     child transmission; and
       (3) expand programs designed to care for children orphaned 
     by AIDS.

     SEC. 413. ANNUAL REPORTS ON PREVENTION OF MOTHER-TO-CHILD 
                   TRANSMISSION OF THE HIV INFECTION.

       (a) In General.--Beginning 270 days after the date of 
     enactment of this Act, and annually thereafter for the 
     ensuing eight years, the President shall submit to designated 
     congressional committees a report on the activities of 
     relevant Executive branch agencies during the reporting 
     period to assist in the prevention of mother-to-child 
     transmission of the HIV infection.
       (b) Report Elements.--Each report shall include--
       (1) a statement of whether or not all relevant Executive 
     branch agencies have adopted the targets set by the United 
     Nations General Assembly at the Special Session for HIV/AIDS, 
     held June 25 to 27, 2001, with respect to mother-to-child 
     transmission of the HIV infection;
       (2) a description of efforts made by the United States 
     Agency for International Development and the Centers for 
     Disease Control and Prevention to expand those activities, 
     including--
       (A) information on the number of sites supported for the 
     prevention of mother-to-child transmission of the HIV 
     infection;
       (B) the specific activities supported;
       (C) the number of women tested and counseled; and
       (D) the number of women receiving preventative drug 
     therapies;
       (3) a statement of the percentage of funds expended out of 
     the budget of each relevant Executive branch agency for 
     activities to prevent mother-to-child transmission of the HIV 
     infection and, in the case of United States Agency for 
     International Development, whether or not its expenditures on 
     bilateral assistance have met the 8.3 percent target in 
     section 104(c)(6)(D) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2151b(c)(6)(D)), as in effect immediately before 
     the date of enactment of this Act, with respect to strategies 
     to prevent mother-to-child transmission of the HIV infection;
       (4) a discussion of the extent to which the programs of the 
     relevant Executive branch agencies are meeting targets set by 
     the United Nations General Assembly; and
       (5) a description of efforts made by the Centers for 
     Disease Control and Prevention and the United States Agency 
     for International Development to expand care and treatment 
     services for families at established sites for the prevention 
     of mother-to-child transmission of HIV infection.
       (c) Reporting Period Defined.--In this section, the term 
     ``reporting period'' means, in the case of the initial 
     report, the period since the date of enactment of this Act 
     and, in the case of any subsequent report, the period since 
     the date of submission of the most recent report.

     SEC. 414. PILOT PROGRAM OF ASSISTANCE FOR CHILDREN AND 
                   FAMILIES AFFECTED BY HIV/AIDS.

       (a) In General.--The President, acting through the United 
     States Agency for International Development, shall establish 
     a program of assistance that would demonstrate the 
     feasibility of the provision of care and

[[Page 12776]]

     treatment to orphans and other children and young people 
     affected by HIV/AIDS in foreign countries.
       (b) Program Requirements.--The program shall--
       (1) build upon and be integrated into programs administered 
     as of the date of enactment of this Act by the United States 
     Agency for International Development for children affected by 
     HIV/AIDS;
       (2) work in conjunction with indigenous community-based 
     programs and activities, particularly those that offer proven 
     services for children;
       (3) reduce the stigma of HIV/AIDS to encourage vulnerable 
     children infected with HIV or living with AIDS and their 
     family members and caregivers to avail themselves of 
     voluntary counseling and testing, and related programs, 
     including treatments;
       (4) provide, in conjunction with other relevant Executive 
     branch agencies, the range of services for the care and 
     treatment, including the provision of antiretrovirals and 
     other necessary pharmaceuticals, of children, parents, and 
     caregivers infected with HIV or living with AIDS;
       (5) provide nutritional support and food security, and the 
     improvement of overall family health;
       (6) work with parents, caregivers, and community-based 
     organizations to provide children with educational 
     opportunities; and
       (7) provide appropriate counseling and legal assistance for 
     the appointment of guardians and the handling of other issues 
     relating to the protection of children.
       (c) Report.--Not later than 18 months after the date of 
     enactment of this Act, the President, acting through the 
     United States Agency for International Development, shall 
     submit a report on the implementation of this section to the 
     appropriate congressional committees. The report shall 
     include a plan for scaling up the program over the following 
     year.
       (d) Authorization of Appropriations.--
       (1) In general.--In addition to amounts otherwise available 
     for such purpose, there is authorized to be appropriated to 
     the President $15,000,000 for the fiscal year 2003 and 
     $30,000,000 for the fiscal year 2004 to carry out the 
     program.
       (2) Availability of funds.--Amounts appropriated pursuant 
     to paragraph (1) are authorized to remain available until 
     expended.

                      TITLE V--BUSINESS PRINCIPLES

     SEC. 501. PRINCIPLES FOR UNITED STATES FIRMS OPERATING IN 
                   COUNTRIES AFFECTED BY THE HIV/AIDS PANDEMIC.

       (a) Findings.--Congress finds that the global spread of 
     HIV/AIDS presents not only a health crisis but also a crisis 
     in the workplace that affects--
       (1) the productivity, earning power, and longevity of 
     individual workers;
       (2) the productivity, competitiveness, and financial 
     solvency of individual businesses; and
       (3) the economic productivity and development of individual 
     communities and the United States as a whole.
       (b) Sense of Congress.--It is the sense of Congress that 
     United States firms operating in countries affected by the 
     HIV/AIDS pandemic can make significant contributions to the 
     United States effort to respond to this pandemic through the 
     voluntary adoption of the principles and practices described 
     in subsection (c).
       (c) Principles and Practices.--The principles and practices 
     referred to in subsection (b) are the following:
       (1) With respect to employment and health policies and 
     practices, the treatment of HIV/AIDS in the same manner as 
     any other illness.
       (2) The promotion of policies and practices that eliminate 
     discrimination and stigmatization against employees on the 
     basis of real or perceived HIV/AIDS status, including--
       (A) assessing employees on merit and ability to perform;
       (B) not subjecting employees to personal discrimination or 
     abuse; and
       (C) imposing disciplinary measures where discrimination 
     occurs.
       (3) A prohibition on compulsory HIV/AIDS testing for 
     recruitment, promotion, or career development.
       (4) An assurance of the confidentiality of an employee's 
     HIV/AIDS status.
       (5) Permission for employees with HIV/AIDS-related 
     illnesses to work as long as they are medically fit and, when 
     they are no longer able to work and sick leave has been 
     exhausted, an assurance that the employment relationship will 
     be terminated in accordance with antidiscrimination and labor 
     laws and respect for general procedures and full benefits.
       (6) An assurance that employment practices will comply, at 
     a minimum, with national and international employment and 
     labor laws and codes.
       (7) The involvement of employees and individuals infected 
     with HIV or living with AIDS, drawn from the workplace or the 
     community, in the development and assessment of HIV/AIDS 
     policies and programs for the workplace.
       (8) An offer to all employees of access to culturally 
     appropriate preventive education programs and services to 
     support those programs.
       (9) An assurance that programs offered in the workplace 
     will support and be integrated into larger community-based 
     responses to the problems posed by HIV/AIDS.
       (10) Work with community leaders to expand the availability 
     of treatment for those employees and others infected with HIV 
     or living with AIDS.

                    TITLE VI--ADDITIONAL AUTHORITIES

     SEC. 601. AUTHORITY OF THE DEPARTMENT OF HEALTH AND HUMAN 
                   SERVICES.

       (a) In General.--Title III of the Public Health Service Act 
     (42 U.S.C. 241 et seq.) is amended by adding at the end the 
     following:

  ``PART R--HIV/AIDS, TUBERCULOSIS, AND MALARIA PREVENTION, CARE AND 
                   TREATMENT IN DEVELOPING COUNTRIES

     ``SEC. 399AA. GENERAL AUTHORITY OF THE CENTERS FOR DISEASE 
                   CONTROL AND PREVENTION.

       ``(a) Purpose.--It is the purpose of this section to 
     provide the Secretary, acting through the Director of the 
     Centers for Disease Control and Prevention, with the 
     authority to act internationally to carry out prevention, 
     care, treatment, support, capacity development, and other 
     activities (determined appropriate by the Secretary) for HIV/
     AIDS, tuberculosis, and malaria in countries determined by 
     the Secretary to have or be at risk for severe HIV epidemic 
     with particular attention to resource constrained countries.
       ``(b) Activities and Assistance.--In carrying out the 
     purpose described in subsection (a), the Secretary, acting 
     through the Director of the Centers for Disease Control and 
     Prevention, in coordination with the Administrator of the 
     United States Agency for International Development and the 
     Administrator of the Health Resources and Services 
     Administration, may provide support and assistance under this 
     section relating to--
       ``(1) HIV prevention services provided through--
       ``(A) education and voluntary counseling and testing 
     activities, including rapid testing, the development and 
     application of confidentiality protections with respect to 
     such counseling and testing, and the integration of such 
     activities into programs serving women and children;
       ``(B) programs to reduce the mother-to-child transmission 
     of HIV, including the treatment and care of HIV-infected 
     women, their children, and families, and including the 
     involvement of fathers in such programs;
       ``(C) activities involving behavioral interventions for 
     youth, women, and other vulnerable populations;
       ``(D) programs to prevent the transmission of HIV and other 
     pathogens at health care facilities (including the use of 
     universal precautions, equipment sterilization, post-exposure 
     prophylaxis for health care workers and other individuals 
     determined to be appropriate, and other interventions 
     appropriate to the resources available), and to support the 
     use of post exposure prophylaxis, when indicated, for 
     patients;
       ``(E) activities to ensure a safe blood supply;
       ``(F) programs to provide prevention, care, treatment, and 
     patient management services for sexually transmitted 
     infections to infected individuals and individuals at risk of 
     infection; and
       ``(G) activities, including laboratory support, to collect 
     and maintain accurate HIV/AIDS surveillance and epidemiologic 
     data, to target and monitor programs, and to measure the 
     effectiveness of interventions;
       ``(2) HIV/AIDS care and treatment services provided 
     through--
       ``(A) programs to provide care and treatment, integrated 
     with prevention services to further reduce the transmission 
     of HIV, for individuals living with HIV/AIDS, including the 
     treatment of opportunistic infections (including 
     tuberculosis) and the provision of antiretroviral therapies 
     and nutritional services;
       ``(B) programs to provide support services that are needed 
     to enhance the effectiveness of health services and to 
     promote family stability, including services for family 
     members affected by, but not infected with, HIV such as 
     children orphaned by AIDS; and
       ``(C) programs that link care and treatment services to 
     proven prevention programs, including linkages with voluntary 
     counseling and testing efforts (including rapid testing);
       ``(3) infrastructure and training through--
       ``(A) activities to improve the health infrastructure and 
     institutional capacity within participating countries, 
     including the training of appropriate personnel, and to 
     assist such countries in expanding and improving the 
     availability of health care facilities, to enable such 
     countries to develop and manage HIV/AIDS education, 
     prevention, care and treatment programs and to conduct 
     evaluations of such programs; and
       ``(B) activities to provide laboratory support as well as 
     technical assistance and training to increase the capacity 
     for the diagnosis, care, and treatment of HIV/AIDS and 
     related health conditions (including rapid testing);
       ``(4) HIV/AIDS treatment protocols through--
       ``(A) the provision of support and assistance to countries 
     determined by the Secretary to have or be at risk for severe 
     HIV

[[Page 12777]]

     epidemic with particular attention to resource constrained 
     countries for the development of treatment protocols for the 
     delivery of HIV/AIDS treatment and prevention services; and
       ``(B) the provision of assistance to countries determined 
     by the Secretary to have or be at risk for severe HIV 
     epidemic with particular attention to resource constrained 
     countries, and to be ready to implement the protocols 
     described in subparagraph (A); and
       ``(5) other activities determined appropriated by the 
     Secretary.
       ``(c) Utilization of Existing Capacities.--In carrying out 
     activities under subsection (b), the Secretary, acting 
     through the Director of the Centers for Disease Control and 
     Prevention and in coordination with the Administrator of the 
     United States Agency for International Development and the 
     Administrator of the Health Resources and Services 
     Administration, shall, to the maximum extent practicable, 
     utilize existing indigenous capacity in developing countries, 
     including coordinating with relevant government ministries 
     and carrying out activities in partnership with non-
     governmental organizations and affected communities.
       ``(d) Health Resources and Services Administration.--In 
     carrying out activities under paragraphs (2) and (3) of 
     subsection (b), the Secretary, acting through the Director of 
     the Centers for Disease Control and Prevention, shall enter 
     into interagency agreements, monetary transfers, and 
     contracts with the Administrator of the Health Resources and 
     Services Administration to ensure that such activities 
     benefit from the specialized expertise of such Administration 
     related to the assessment of needs as well as the development 
     and implementation of community-based systems of care and 
     appropriate infrastructure, including the training of health 
     care providers and community workers.
       ``(e) Blood Supply.--In carrying out activities under 
     subsection (b)(1)(E), the Secretary, acting through the 
     Director of the Centers for Disease Control and Prevention, 
     shall assist participating countries in developing national, 
     regional, or local systems to--
       ``(1) monitor, manage, and test the blood supply to ensure 
     that such supply is screened for HIV;
       ``(2) increase recruitment and retention of appropriate 
     blood donors; and
       ``(3) provide for technology transfer and capacity building 
     in proven best blood safety practices appropriate to local 
     conditions, including anemia prevention efforts.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $400,000,000 for fiscal year 2003, and such sums as may be 
     necessary for fiscal year 2004. Of the amount appropriated 
     under the preceding sentence for each fiscal year, the 
     Secretary shall make available $45,000,000 in fiscal year 
     2003 and $30,000,000 in fiscal year 2004 to carry out section 
     399DD. Amounts appropriated under this subsection shall 
     remain available until expended.

     ``SEC. 399BB. GENERAL AUTHORITY OF THE HEALTH RESOURCES AND 
                   SERVICES ADMINISTRATION.

       ``(a) Purpose.--It is the purpose of this section to 
     provide the Secretary, acting through the Administrator of 
     the Health Resources and Services Administration, with the 
     authority to act internationally to carry out prevention, 
     care, treatment, support, capacity development, and other 
     activities (determined appropriate by the Secretary) for HIV/
     AIDS, tuberculosis, and malaria in countries determined by 
     the Secretary to have or be at risk for severe HIV epidemic 
     with particular attention to resource constrained countries.
       ``(b) Activities and Assistance.--In carrying out the 
     purpose described in subsection (a), the Secretary, acting 
     through the Administrator of the Health Resources and 
     Services Administration, in coordination with the Director of 
     the Centers for Disease Control and Prevention and the 
     Administrator of the United States Agency for International 
     Development, may provide assistance under this section 
     relating to--
       ``(1) activities to assist communities in assessing the 
     strengths and capabilities of the existing system of care and 
     treatment relating to HIV/AIDS and other opportunistic 
     infections, including critical unmet needs;
       ``(2) activities to assist communities in the development 
     and implementation of appropriate systems of care that 
     provide for a continuum of HIV/AIDS-related services for 
     prevention, treatment, palliative care, and hospice services 
     based on an assessment under paragraph (1);
       ``(3) activities to improve the health-related 
     infrastructure and institutional capacity of participating 
     countries, including the training of health care providers 
     and community workers, to enable such countries to develop 
     and manage HIV/AIDS education, prevention, care and treatment 
     programs and to conduct evaluations of such programs;
       ``(4) activities to assist in the development of training 
     modules and curricula on HIV/AIDS and associated conditions 
     as part of the professional training programs for physicians, 
     nurses, dentists, pharmacists, and other health care 
     providers;
       ``(5) activities to improve the coordination between 
     American medical centers and hospitals and indigenous 
     hospitals and clinics in participating countries; and
       ``(6) other activities determined appropriated by the 
     Secretary.
       ``(c) Utilization of Existing Capacities.--In carrying out 
     activities under subsection (b), the Secretary, acting 
     through the Administrator of the Health Resources and 
     Services Administration and in consultation with the Director 
     of the Centers for Disease Control and Prevention and the 
     Administrator of the United States Agency for International 
     Development, shall, to the maximum extent practicable, 
     utilize existing indigenous capacity in countries determined 
     by the Secretary to have or be at risk for severe HIV 
     epidemic with particular attention to resource constrained 
     countries, including coordinating with relevant government 
     ministries and carrying out activities in partnership with 
     non-governmental organizations and affected communities.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $40,000,000 for fiscal year 2003, and such sums as may be 
     necessary for fiscal year 2004. Amounts appropriated under 
     this subsection shall remain available until expended.

     ``SEC. 399CC. HIV/AIDS TRAINING PARTNERSHIP.

       ``(a) In General.--The Secretary, acting through the 
     Director of the National Institutes of Health and in 
     coordination with the Administrator of the Health Resources 
     and Services Administration, shall award supplemental grants 
     to eligible entities to enable such entities to provide 
     support for clinical education and training in the delivery 
     of HIV/AIDS care and treatment services.
       ``(b) Eligible Entities.--To be eligible to receive a 
     supplemental grant under subsection (a), an entity shall--
       ``(1) be a recipient of an international HIV/AIDS clinical 
     research, education, or training grant awarded by the 
     National Institutes of Health or the Health Resources and 
     Services Administration;
       ``(2) provide assurances to the Secretary that the entity 
     has developed a partnership with a hospital-based or 
     community-based health care entity in the host country for 
     the purpose of providing services under each grant; and
       ``(3) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require, including a description of the 
     activities to be carried out with amounts received under the 
     grant.
       ``(c) Use of Funds.--An entity shall use amounts received 
     under a supplemental grant under subsection (a) to provide 
     clinical education and training in the delivery of HIV/AIDS 
     care and treatment services. Such education and training 
     shall be designed to develop health care provider capacity to 
     deliver HIV/AIDS care and treatment services in a variety of 
     institutional and community-based settings.
       ``(d) Priority.--In awarding grants under subsection (a), 
     the Secretary shall give priority to applicants that will 
     carry out activities that assess existing provider capacity 
     and address the training needs of a range of health care 
     providers (from physicians to nurses to other health care 
     providers).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $50,000,000 for fiscal year 2003, and such sums as may be 
     necessary for fiscal year 2004. Amounts appropriated under 
     this subsection shall remain available until expended.

     ``SEC. 399DD. FAMILY SURVIVAL PARTNERSHIPS.

       ``(a) Purpose.--The purpose of this section is to provide 
     support, through a public-private partnership, for the 
     provision of medical care and support services to HIV 
     positive parents and their children identified through 
     existing programs to prevent mother-to-child transmission of 
     HIV in countries with or at risk for severe HIV epidemic with 
     particular attention to resource constrained countries, as 
     determined by the Secretary.
       ``(b) Grants.--
       ``(1) In general.--The Secretary, acting through the 
     Director of the Centers for Disease Control and Prevention, 
     is authorized to award a grant to an eligible administrative 
     organization to enable the organization to award subgrants to 
     eligible entities to expand activities to prevent the mother-
     to-child transmission of HIV by providing medical care and 
     support services to HIV infected parents and their children.
       ``(2) Administrative organization.--To be eligible to 
     receive a grant under paragraph (1), an administrative 
     organization shall--
       ``(A) have a demonstrable record in managing large scale 
     maternal and child health programs in countries with or at 
     risk for severe HIV epidemic with particular attention to 
     resource constrained countries, as determined by the 
     Secretary, and sufficient HIV/AIDS expertise;
       ``(B) have established relationships with major 
     international organizations and multilateral institutions;
       ``(C) provide an assurance to the Secretary that the 
     organization will contribute (either directly or through 
     private sector financial support) non-Federal funds to the 
     costs of the activities to be carried out under this

[[Page 12778]]

     section in an amount that is not less than the amount of 
     funds provided to the organization under a grant this 
     section; and
       ``(D) prepare and submit an application to the Secretary at 
     such time, in such manner, and accompanied by such 
     information as the Secretary may require.
       ``(3) Use of funds.--Amounts provided under a grant awarded 
     under paragraph (1) shall be used--
       ``(A) to award subgrants to eligible entities to enable 
     such entities to carry out activities described in subsection 
     (c);
       ``(B) for administrative support and subgrant management;
       ``(C) for administrative data collection and reporting 
     concerning grant activities;
       ``(D) for the monitoring and evaluation of grant 
     activities;
       ``(E) for training and technical assistance for 
     subgrantees; and
       ``(F)to promote sustainability.
       ``(c) Subgrants.--
       ``(1) In general.--An organization awarded a grant under 
     subsection (b) shall use amounts received under the grant to 
     award subgrants to eligible entities.
       ``(2) Eligibility.--To be eligible to receive a subgrant 
     under paragraph (1), an entity shall--
       ``(A) be a local health organization, an international 
     organization, or a partnership of such organizations;
       ``(B) demonstrate to the awarding organization that such 
     entity--
       ``(i) is currently administering a proven intervention to 
     prevent mother-to-child transmission of HIV in countries with 
     or at risk for severe HIV epidemic with particular attention 
     to resource constrained countries, as determined by the 
     Secretary;
       ``(ii) serves a catchment area with a minimum HIV 
     seroprevalence of 3 percent in pregnant women;
       ``(iii) has demonstrated support for the proposed program 
     from relevant government entities;
       ``(iv) is able to provide HIV care, including 
     antiretroviral treatment when medically indicated, to HIV 
     positive women, men, and children with the support of the 
     project funding; and
       ``(v) has the ability to enroll a minimum of 250 HIV 
     infected women per service site, based on the current uptake 
     rate, into existing HIV mother-to-child transmission 
     programs; and
       ``(C) prepare and submit to the awarding organization an 
     application at such time, in such manner, and containing such 
     information as the organization may require.
       ``(3) Local health and international organizations.--For 
     purposes of paragraph (2)(A)--
       ``(A) the term `local health organization' means a public 
     sector health system, non-governmental organization, 
     institution of higher education, community-based 
     organization, or non-profit health system that provides 
     directly, or has a clear link with a provider for the 
     indirect provision of, primary health care services; and
       ``(B) the term `international organization' means--
       ``(i) a non-profit international entity;
       ``(ii) an international charitable institution;
       ``(iii) a private voluntary international entity; or
       ``(iv) a multilateral institution.
       ``(4) Selection of subgrant recipients.--In awarding 
     subgrants under this subsection, the organization shall--
       ``(A) consider applicants from a range of health care 
     settings, program approaches, and geographic locations; and
       ``(B) if appropriate, award not less than 1 grant to an 
     applicant to fund a national system of health care delivery 
     to HIV positive families.
       ``(5) Use of subgrant funds.--An eligible entity awarded a 
     subgrant under this subsection shall use subgrant funds to 
     expand activities to prevent mother-to-child transmission of 
     HIV by providing medical treatment and care and support 
     services to parents and their children, including--
       ``(A) providing treatment and therapy, when medically 
     indicated, to HIV-infected women, their children, and 
     families;
       ``(B) the hiring and training of local personnel, including 
     physicians, nurses, other health care providers, counselors, 
     social workers, outreach personnel, laboratory technicians, 
     data managers, and administrative support personnel;
       ``(C) paying laboratory costs, including costs related to 
     necessary equipment and diagnostic testing and monitoring 
     (including rapid testing), complete blood counts, standard 
     chemistries, and liver function testing for infants, 
     children, and parents, and costs related to the purchase of 
     necessary laboratory equipment;
       ``(D) purchasing pharmaceuticals for HIV-related 
     conditions, including antiretroviral therapies;
       ``(E) funding support services including adherence and 
     psychosocial support services;
       ``(F) operational support activities; and
       ``(G) conducting community outreach and capacity building 
     activities, including activities to raise the awareness of 
     individuals of the program carried out by the subgrantee, 
     other communications activities in support of the program, 
     local advisory board functions, and transportation necessary 
     to ensure program participation.
       ``(d) Reports.--Not later than 6 months after the date of 
     enactment of this section, and annually thereafter, an 
     administrative organization awarded a grant under subsection 
     (b)(1) shall submit to the Secretary and the appropriate 
     committees of Congress, a report that includes--
       ``(1) the progress of programs funded under this section;
       ``(2) the benchmarks of success of programs funded under 
     this section; and
       ``(3) recommendations of how best to proceed with the 
     programs funded under this section upon the expiration of 
     funding under subsection (e).
       ``(e) Funding.--In making amounts available under section 
     399AA(f) to carry out this section, the Secretary shall 
     ensure that not less than--
       ``(1) $45,000,000 is made available to carry out this 
     section for fiscal year 2003; and
       ``(2) $30,000,000 is made available to carry out this 
     section for fiscal year 2004.
       ``(f) Limitation on Administrative Expenses.--An 
     administrative organization shall ensure that not more than 
     12 percent of the amount of a grant received under this 
     section by the organization is used for the administrative 
     activities described in subparagraphs (B), (C), (D), and (E) 
     of subsection (b)(3) and subsection (b)(5)(E).

     ``SEC. 399EE. INTRA-AGENCY COORDINATION OF GLOBAL HIV/AIDS 
                   INITIATIVES.

       ``(a) In General.--The Secretary, acting through the 
     Director of the Office of Global Health Affairs (referred to 
     in this section as the `Director') of the Department of 
     Health and Human Services (referred to in this section as the 
     `Department'), shall ensure--
       ``(1) the coordination of all Department programs related 
     to the prevention, treatment, and monitoring of HIV/AIDS, 
     tuberculosis, and malaria in countries with or at risk for 
     severe HIV epidemic with particular attention to resource 
     constrained countries, as determined by the Secretary 
     (referred to in this section as `Department programs'); and
       ``(2) that global HIV/AIDS, tuberculosis, and malaria 
     activities are conducted in a coordinated, strategic fashion, 
     utilizing the expertise from the various agencies within the 
     Department, to the maximum extent practicable.
       ``(b) Duties.--In carrying out this section, the Secretary 
     shall--
       ``(1) review all Departmental programs to ensure proper 
     coordination and compatibility of the activities, strategies, 
     and policies of such programs; and
       ``(2) ensure that the Departmental programs utilize the 
     best possible practices for HIV/AIDS prevention, treatment, 
     and monitoring to improve the effectiveness of Department 
     programs in countries in which the Department operates.
       ``(c) Report.--
       ``(1) In general.--The Director shall prepare an annual 
     report that--
       ``(A) describes the actions that are being taken to 
     coordinate the multiple roles and policies of, and foster 
     collaboration among, the offices and agencies of the 
     Department that contribute to global HIV/AIDS activities;
       ``(B) describes the respective roles and activities of each 
     of the offices and agencies of the Department;
       ``(C) contains any recommendations for legislative and 
     funding actions that are needed to create a coherent, 
     effective departmental approach to global HIV/AIDS that 
     achieves the goals for Department programs; and
       ``(D) describes the progress made towards meeting the HIV/
     AIDS goals and outcomes as identified by the Director.
       ``(2) Submission to congress.--Not later than 1 year after 
     the date of enactment of this part, and annually thereafter, 
     the Secretary shall submit the report described in paragraph 
     (1) to the appropriate committees of Congress.''.
       (b) Extension of Tuberculosis Prevention Program.--Section 
     317E(g) of the Public Health Service Act (42 U.S.C. 247b-
     6(g)) is amended--
       (1) in paragraph (1)(A), by striking ``2002'' and inserting 
     ``2004'';
       (2) in paragraph (2), by striking ``2002'' and inserting 
     ``2004''; and
       (3) by adding at the end the following:
       ``(3) Coordination.--Activities under this section shall, 
     to the extent practicable, be coordinated with related 
     activities carried out under title VI of the United States 
     Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 
     2002 (and the amendments made by that title).''.

     SEC. 602. MICROBICIDE RESEARCH AT THE NATIONAL INSTITUTES OF 
                   HEALTH.

       Subpart I of part D of title XXIII of the Public Health 
     Service Act (42 U.S.C. 300cc-40 et seq.) is amended by 
     inserting after section 2351 the following:

     ``SEC. 2351A. MICROBICIDES FOR PREVENTING TRANSMISSION OF HIV 
                   AND OTHER SEXUALLY TRANSMITTED INFECTIONS.

       ``(a) Expansion and Coordination of Activities.--The 
     Secretary, acting through the Director of the Office of AIDS 
     Research and in coordination with other relevant institutes 
     and offices, shall expand, intensify, and

[[Page 12779]]

     coordinate the activities of all appropriate institutes and 
     components of the National Institutes of Health with respect 
     to research on the development of microbicides to prevent the 
     transmission of HIV and other sexually transmitted infections 
     (in this section referred to as `microbicide research').
       ``(b) Research Plan.--The Secretary, acting through the 
     Director of the Office of AIDS Research and in consultation 
     with the Director of the Institute of Allergy and Infectious 
     Diseases, shall expedite the implementation of the strategic 
     plan for the conduct and support of microbicide research, and 
     shall annually review and as appropriate revise the plan. In 
     developing, implementing, and reviewing the plan, the 
     Director of the Office of AIDS Research shall coordinate with 
     the heads of other Federal agencies, including the Director 
     of the Centers for Disease Control and Prevention and the 
     Administrator of the United States Agency for International 
     Development, involved in microbicide research, with the 
     microbicide research community, and with health advocates.
       ``(c) Microbicide Research and Development Teams.--
       ``(1) In general.--The Secretary, acting through the 
     Director of the National Institutes of Health, shall award 
     grants or contracts to public and private entities for the 
     development and operation of multidisciplinary teams to 
     conduct research on innovative microbicide concepts, 
     including combination microbicides.
       ``(2) Peer review requirement.--The Director shall award a 
     grant or contract to an entity under paragraph (1) only if 
     the grant or contract has been recommended after technical 
     and scientific peer review in accordance with regulations 
     under section 492.
       ``(d) Report.--Not later than 1 year after the date of the 
     initial submission of the research plan under subsection (b), 
     and annually thereafter, the Secretary, acting through the 
     Director of the Office of AIDS Research and in consultation 
     with the Director of the Institute of Allergy and Infectious 
     Diseases, shall submit to the Committee on Energy and 
     Commerce and the Committee on Appropriations of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions and the Committee on Appropriations of 
     the Senate a report that describes the activities of the 
     National Institutes of Health regarding microbicide research. 
     Each such report shall include--
       ``(1) an updated research plan;
       ``(2) a description and evaluation of the progress made, 
     during the period for which such report is prepared, in 
     research on microbicides;
       ``(3) a summary and analysis of expenditures made, during 
     the period for which the report is made, for activities with 
     respect to microbicides research conducted and supported by 
     the National Institutes of Health, including the number of 
     full-time equivalent employees; and
       ``(4) recommendations as the Director of the Office of AIDS 
     Research considers appropriate.
       ``(f) Definition.--In this section, the term `HIV' means 
     the human immunodeficiency virus. Such term includes acquired 
     immune deficiency syndrome.''.

     SEC. 603. AUTHORITY OF THE DEPARTMENT OF LABOR.

       (a) Purpose.--It is the purpose of this section to provide 
     the Secretary of Labor with the authority to carry out 
     workplace-based HIV/AIDS programs in countries with or at 
     risk for severe HIV epidemic with particular attention to 
     resource constrained countries, as determined by the 
     Secretary.
       (b) Activities and Assistance.--In carrying out the purpose 
     described in subsection (a), the Secretary of Labor, in 
     coordination with the Secretary of Health and Human Services 
     and the Administrator of the United States Agency for 
     International Development, may provide assistance under this 
     section relating to--
       (1) the establishment and implementation of workplace HIV/
     AIDS prevention and education programs in countries with or 
     at risk for severe HIV epidemic with particular attention to 
     resource constrained countries, as determined by the 
     Secretary, including programs that emphasize protections 
     against discrimination and the creation of supportive 
     environments for individuals living with HIV/AIDS;
       (2) the development and implementation of on-site care and 
     wellness programs that enhance the health and productivity of 
     the workforce in countries with or at risk for severe HIV 
     epidemic with particular attention to resource constrained 
     countries, as determined by the Secretary;
       (3) activities to strengthen collaboration among 
     governments, business, and labor leaders to respond to the 
     HIV/AIDS pandemic; and
       (4) other activities determined appropriated by the 
     Secretary.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section, $10,000,000 for 
     fiscal year 2003, and such sums as may be necessary for 
     fiscal year 2004. Amounts appropriated under this subsection 
     shall remain available until expended.

     SEC. 604. AUTHORITY FOR INTERNATIONAL PROGRAMS.

       Section 307 of the Public Health Service Act (42 U.S.C. 
     242l) is amended--
       (1) in subsection (b)--
       (A) in paragraph (6), by adding ``and'' at the end;
       (B) in paragraph (7), by striking ``; and'' and inserting a 
     period;
       (C) in the flush sentence after paragraph (7), by inserting 
     ``new'' before ``facility in any foreign country''; and
       (D) by striking paragraph (8); and
       (2) by adding at the end the following:
       ``(d)(1) The Secretary is authorized to utilize the 
     authority contained in section 2 of the State Department 
     Basic Authorities Act of 1956 (22 U.S.C. 2669), subject to 
     the limitations set forth in subsection (e).
       ``(2) The Secretary is authorized to use the authority 
     contained in section 1 of the Act of April 18, 1930 (46 Stat. 
     177; 22 U.S.C. 291) and section 1 of the Foreign Service 
     Buildings Act (22 U.S.C. 292) directly or through contract, 
     grant, or cooperative agreement to lease, alter, or renovate 
     facilities in foreign countries as necessary to conduct 
     programs of assistance for international health activities, 
     including activities relating to HIV/AIDS and other 
     infectious diseases, chronic and environmental diseases, and 
     other health activities abroad.
       ``(e) In exercising the authority set forth in paragraphs 
     (1) and (2) of subsection (d), the Secretary shall consult 
     with the Secretary of State to ensure that planned activities 
     are within the legal strictures of the State Department Basic 
     Authorities Act of 1956 and other applicable laws.''.
                                  ____

  SA 4298. Mr. REID (for Mr. Kerry (for himself, Mr. Frist, Mr. 
Kennedy, Mr. Biden, and Mr. Helms)) proposed an amendment to the bill 
H.R. 2069, To amend the Foreign Assistance Act of 1961 and the Global 
AIDS and Tuberculosis Relief Act of 2000 to authorize assistance to 
prevent, treat, and monitor HIV/AIDS in sub-Saharan African and other 
developing countries; as follows:

       Amend the title to read as follows: ``An Act to amend the 
     Foreign Assistance Act of 1961 to increase assistance for 
     foreign countries seriously affected by HIV/AIDS, 
     tuberculosis, and malaria; to amend the Public Health Service 
     Act with respect to the authority of the Department of Health 
     and Human Services to act internationally with respect to 
     HIV/AIDS, tuberculosis, and malaria; and for other 
     purposes.''.

                          ____________________