[Congressional Record (Bound Edition), Volume 149 (2003), Part 10]
[Senate]
[Pages 13436-13458]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BINGAMAN:
  S. 1168. A bill to amend title 23, United States Code, to establish a 
program to increase the use of recyclable material in the construction 
of Federal-aid highway; to the Committee on Environment and Public 
Works.
  Mr. BINGAMAN. Mr. President, I rise to introduce legislation that I 
believe will provide the necessary incentives to improve State efforts 
in the use of recycled materials in highway construction and 
maintenance. The use of recycled materials in highways is an 
established process in certain parts of the United States, with some 
States using recycled materials on a regular basis. These materials 
include fly ash, bottom ash, rubber products from old tires, and 
reprocessed concrete and asphalt pavements. Less commonly used recycled 
commodities include glass and plastic. The American Association of 
State Highway and Transportation Officials has recently approved 
specifications for the use of biomass, including small diameter timber, 
providing an additional avenue for use of recycled material. The list 
of accomplishments is impressive, but its application is limited. Many 
States could do much more with the use of recycled materials in their 
highway systems.
  Challenges faced by States in the use of recycled material in 
highways are attributed to several factors. Some State Departments of 
Transportation are unaware of the different types of recycled materials 
that are available in today's construction industry. Others do not have 
the technical expertise to take advantage of the broad range of 
recycled materials and techniques. Some may not have developed the 
necessary procurement infrastructure to include the use of recycled 
materials in highway construction.
  To assist States in overcoming these obstacles and to provide 
necessary incentives for the expansion of this economically and 
environmentally viable practice, I am introducing the Recycled Roads 
Act of 2003. The purpose of this bill is to authorize the Secretary of 
Transportation to establish a recycled roads incentive grant program to 
encourage the use of recyclable material in the construction of 
Federal-aid highways by States and Indian tribes. The program will 
provide two types of grants. The first type, which is funded up to 
$125,000 per year, will be for a State or Indian tribe to use in 
employing a coordinator to promote the use of recyclable material in 
Federal-aid highway construction. The second type, which is funded up 
to $1,400,000 per year, will be for a State or Indian tribe to use to 
carry out projects and activities to promote the expanded use of 
recycled material in Federal-aid highway construction and maintenance. 
Total funding for both grants is $123,525,000 per year.
  The case for expanded use of recycled materials in road construction 
is clear. Dr. T. Taylor Eighmy, Director of the University of New 
Hampshire Recycled Materials Resource Center, from an article entitled 
``The Road to Reuse'' published in the professional journal Civil 
Engineering, states the case well: ``Why should we as a society 
continue to dispose of materials that may have inherent engineering 
value and suitable environmental properties and continue to rely on 
nonrenewable natural resources in constructing the U.S. infrastructure? 
Indeed, these materials may become increasingly deserving of 
consideration as we tackle deteriorating infrastructure problems in the 
United States. And the use of recycled materials in lieu of natural 
materials may provide additional environmental benefits through better 
performance and lower cost because there would be less need to mine, 
process, and transport traditional materials.
  ``Applications for recycled materials within the highway environment 
include both bound and unbound uses: asphalt pavements, portland cement 
concrete pavement, granular bases and subbases, stabilized bases, 
embankments, structural fills, flowable fills, soil cover and erosion 
control, and appurtenances. Materials such as reclaimed asphalt 
pavement, RAP, are widely recycled using both in-place and off-site 
recycling methods. More than 45 States use RAP. The National Asphalt 
Paving Association reported in April 2000 that RAP has one of the

[[Page 13437]]

highest recycling rates in the United States--close to 80 percent. 
About 73 million tons are recycled each year, saving the taxpayers 
about $300 million annually.''
  The example of RAP is one of our best success stories in the use of 
recycled materials in roads. However, there is much more that can be 
done. As Dr. Eighmy explains, ``. . . the number of states that use 
recycled materials varies significantly, as do the approaches states 
take in conducting beneficial use determinations, particularly on less 
traditional materials. There is a general sense that states with higher 
industrial activities use more of the resulting by-products. . . . 
There also appears to be a relation between a state's commitment to 
recycling and the maturity of the beneficial use program in that 
state.''
  The Federal Highway Administration produced a policy on recycled 
materials in February of 2002, which strongly encourages the use of 
existing recyclable materials in highway construction and maintenance. 
As stated in the policy, ``Recycling presents environmental 
opportunities and challenges, which, when appropriately addressed, can 
maximize the benefits of reuse. The use of most recycled materials 
poses no threat or danger to the air, soil, or water. Furthermore, 
careful design, engineering and application of recycled materials can 
reduce or eliminate the need to search for and extract new, virgin 
materials from the land.
  ``The engineering feasibility of using recycled materials has been 
demonstrated in research, field studies, experimental projects and 
long-term performance testing and analysis. Significant advances in 
technology over the past decade have increased the types of recycled 
materials in use and the range of their applications. When 
appropriately used, recycled materials can effectively and safely 
reduce cost, stave time, offer equal or in some cases, significant 
improvement to performance qualities, and provide long-term 
environmental benefits.''
  The Federal Highway Administration policy is supported by both 
science and a common sense approach to the needs of building and 
maintaining our national highway system. This bill provides the 
necessary incentives to expand these beneficial recycling practices, 
and increase the associated environmental and engineering impacts.
  In addition, this legislation was developed in consultation with 
several stakeholders from the Federal and state governments, and non-
governmental organizations. The State of New Mexico, and the non-profit 
organizations Environmental Defense and the Surface Transportation 
Policy Project have provided letters expressing their support for this 
legislation.
  I ask all Senators to support the Recycled Roads Act of 2003. I look 
forward to working with the Chairman of the Environment and Public 
Works Committee, Senator Inhofe, and Senator Jeffords, the ranking 
member, to incorporate his bill into the full 6-year reauthorization of 
the transportation bill. I would also like to thank Jeff Steinborn from 
my office in Las Cruces, New Mexico for his diligent work in developing 
the initial concept for this legislation.
  I ask unanimous consent that the article from September 2001 
professional society journal Civil Engineering entitled ``The Road to 
Reuse'' by Dr. T. Taylor Eighmy, the February 2002 Federal Highway 
Administration policy on recycled materials, and letters of support 
from the State of New Mexico, Environmental Defense, and the Surface 
Transportation Policy Project be printed in the Record. I also ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                  [From Civil Engineering, Sept. 2001]

                           The Road To Reuse

                (By T. Taylor Eighmy and Bryan J. Magee)

       Why should we as a society continue to dispose of materials 
     that may have inherent engineering value and suitable 
     environmental properties and continue to rely on nonrenewable 
     natural resources in constructing the U.S. infrastructure? 
     Shouldn't we be making a concerted effort to use recycled 
     materials as substitutes for natural aggregates or materials 
     in the construction of highway infrastructure? Indeed, these 
     materials may become increasingly deserving of consideration 
     as we tackle deteriorating infrastructure problems in the 
     United States. And the use of recycled materials in lieu of 
     naturals materials may provide additional environmental 
     benefits through better performance and lower cost because 
     there would be less need to mine, process, and transport 
     traditional materials.
       There are many types of wastes and by-product materials 
     with potential uses in the highway environment. Ground 
     recycled asphalt pavement, crushed reclaimed concrete, 
     foundry sands, coal bottom ash, blast furnace slags, 
     nonferrous slags, steel slags, quarry by-products, shredded 
     tires, and glass cullet can all serve as aggregate 
     substitutes. Cement kiln dusts, silica fume, ground-
     granulated blast furnace slag, class F coal fly ash, and 
     class C coal fly ash can serve as alternative cementitious 
     materials. Ground recycled asphalt pavement, roofing shingle 
     scraps, and ground rubber can serve as sources of asphalt 
     cement or asphalt modifiers. And coal combustion by-products, 
     wood ash, sludge ash, composted biomass, and ground wood 
     wastes can serve as soil amendments, soil cover, mulch, and 
     erosion control materials.
       Applications for recycled materials within the highway 
     environment include both bound and unbound uses: asphalt 
     pavement, portland cement concrete pavement, granular bases 
     and subbases, stabilized bases, embankments, structural 
     fills, flowable fills, soil cover and erosion control, and 
     appurtenances. Materials such as reclaimed asphalt pavement 
     (RAP) are widely recycled using both in-place and off-site 
     recycling methods. More than 45 states use RAP. The National 
     Asphalt Paving Association reported in April 2000 that RAP 
     has one of the highest recycling rates in the United States--
     close to 80 percent. About 73 million tons (66 million Mg) 
     are recycled each year, saving taxpayers almost $300 million 
     annually.
       A recent, but incomplete, compilation of materials recycled 
     in the highway environment in the United States shows that 
     other materials are recycled annually at reasonable rates. 
     These annual usage and recycling rates are worth noting: 
     blast furnace slag--24 million tons (12.6 million Mg), 90 
     percent recycling rate; coal fly ash--16 million tons (14.6 
     million Mg), 27 percent; coal bottom ash--4.8 million tons 
     (4.4 milliono Mg), 30 percent; coal boiler slag--2.3 million 
     tons (2.1 million Mg), 91 percent; current kiln dust and lime 
     kiln dust--9.1 million tons (8.3 million Mg), 31 percent; and 
     steel slag--8.3 million tons (7.5 million Mg), percentage 
     unknown. However, the number of states that use recycled 
     materials varies significantly, as do the approaches states 
     take in conducting beneficial use determinations, 
     particularly on less traditional materials. There is a 
     general sense that states with higher industrial activity use 
     more of the resulting by-products--foundry sands and slags, 
     for example. There also appears to be a relation between a 
     state's commitment to recycling and the maturity of the 
     beneficial use program in that state.
       A number of European countries have routinely used recycled 
     materials since the 1970s with a high degree of success. What 
     is remarkable about the European story is the recycling rate 
     of materials used (material used/material produced) in the 
     highway environment with rates of 100 percent frequently 
     noted. The Netherlands, a populous country with more limited 
     aggregate resources and a high degree of industrialization 
     and interest in land reclamation, is the best example. The 
     annual reported totals of metric tons used, together with the 
     recycling rates, are as follows: steel slag--0.5 million, 100 
     percent; blast furnace slag--1.2 million, 100 percent; coal 
     bottom ash--0.08 million, 100 percent; coal fly ash--0.85 
     million, 100 percent; construction and demolition 
     aggregates--9.2 million, 100 percent; municipal solid waste 
     combustion bottom ash--0.8 million, 100 percent; and RAP--
     10.7 million, 100 percent.
       Data from a variety of sources suggest potential sources of 
     recycled materials for use in the highway environment. In 
     their paper ``Utilization of Waste Materials in Civil 
     Engineering,'' R.J. Collins and S.K. Ciesielski cited four 
     major sources of waste and by-product materials for highway 
     use: agriculture (2,100 million tons [1,905 million Mg] per 
     year), domestic (200 million tons [181 million Mg] per year) 
     industrial (400 million tons [363 million Mg] per year), and 
     mineral (1,800 million tons [1,633 million Mg] per year). 
     Combined, these account for about 4.5 billion tons per year.
       Recent data from the Federal Highway Administration (FHWA) 
     indicate that in 1997 there were almost 4 million mi (6.4 
     million km) of roads in the United States--4 percent under 
     federal jurisdiction, 21 percent under state jurisdiction, 
     and 75 percent under local jurisdiction. Data from 1992 on 
     material uses in the highway environment from the National 
     Research Council show that the construction, rehabilitation, 
     and maintenance of U.S. highways require about 350 million 
     tons (318 million Mg) of natural and manufactured materials, 
     including 20 million tons (18 million Mg) per year of 
     asphalt, 10 million tons (9 million Mg) per year of portland

[[Page 13438]]

     cement, and 320 million tons (290 million Mg) per year of 
     natural aggregates, paving mixtures, and synthetic surfacing 
     and coating materials. It is interesting to contrast these 
     numbers with the data presented on waste and by-product 
     production. Undoubtedly, these numbers have increased.
       ASCE's 2001 Report Card for America's Infrastructure 
     indicates that one-third of the nation's roads are in poor or 
     mediocre condition, costing American drivers an estimated 
     $5.8 billion and contributing to as many as 13,800 highway 
     fatalities each year. Additionally, the assessment quotes 
     FHWA findings that 29 percent of the nation's bridges are 
     structurally deficient or functionally obsolete and its 
     estimate that elmininating all bridge deficiencies would cost 
     $10.6 billion over the course of 20 years. There is a 
     critical need for a significant investment of money and 
     material to help alleviate these conditions and for changes 
     in transportation behavior, transportation investment, and 
     the application of innovative technologies. How much of this 
     necessary rehabilitation can make appropriate use--both 
     economically and from long-term engineering and environmental 
     performance perspectives--of the materials already present in 
     pavements, base courses, subbases, embankments, bridge decks, 
     and bridge abutments? What other waste or by-product material 
     might be used?
       The 1991 Intermodal Surface Transportation Efficiency Act 
     (ISTEA) gave high priority to research on recycling. Largely 
     as a result of this focus, the FHWA and the National 
     Cooperative Highway Research Program (NCHRP) sponsored 
     several projects related to recycling, all of them national 
     in scope. Other federal agencies have developed guidelines or 
     programs that in some way relate to the use of recycled 
     materials. For example, the publication User Guidelines for 
     Waste and By-Product Materials in Pavement Construction was 
     developed to assist those who have an interest in using or 
     increasing their understanding of the types of waste and by-
     product materials that may be recovered and used in pavement 
     construction applications. By documenting the potential use 
     of 19 recycled materials in six construction applications, 
     these guidelines, which were produced by the FHWA and 
     published in 1997, are intended to describe the nature of 
     each material, suggest sources for obtaining additional 
     information, and outline the issues that need to be evaluated 
     when considering the use of a particular material. The 
     guidelines are also intended to provide general information 
     on engineering evaluation requirements, environmental issues, 
     and economic considerations in determining the suitability of 
     particular recovered materials in pavement applications. (An 
     electronic version of the guidelines is available at the Web 
     site of the Recycled Materials Resource Center 
     [www.rmrc.unh.edu/Partners/UserGuide/begin.htm].)
       Funded by the NCHRP and completed in 1998, the Recycled 
     Materials Information Database was created as a tool that can 
     be used to review and store data on the properties and 
     applications of recycled material and on testing procedures. 
     Reference information is also included. With information on 
     21 materials, the database is divided into nine main 
     categories and provides the user with both general and 
     detailed engineering and environmental information on each 
     material. Recommended laboratory engineering tests that can 
     be used to assess the suitability of each waste and recycled 
     material for transportation applications are included, along 
     with recommendations for monitoring in-field trials. (Copies 
     of the database may be downloaded from the Recycled Materials 
     Resource Center Web site [www.rmrc.unh.edu/Resources/
UsefulDocuments&Programs/NCHRP/NCHRP.asp].)
       The Framework for Evaluating Use of Recycled Materials in 
     the Highway Environment was recently published by the FHWA to 
     establish a logical and hierarchical evaluation process that 
     all states can use either to develop a beneficial use 
     determination process or to refine an existing process of 
     this type. The purpose of this document is to help reduce 
     barriers to the use of recycled materials and to facilitate 
     the migration of successful practices across state 
     boundaries. Additionally, because the management and 
     regulation of recycled materials use in the highway 
     environment are jurisdictionally the responsibility of a 
     state's department of transportation (DOT) and its 
     environmental protection agency (EPA), a major goal was to 
     work with state DOTs and EPAs to develop a consensus-based 
     approach that would encourage the two agencies to work 
     together in the evaluation process. The process uses a series 
     of stages that can each lead to approval or a beneficial use 
     application from both an engineering and an environmental 
     perspective. It comprises issue definition, data evaluation, 
     laboratory testing, and field tests. The project used an 
     expert technical group to help develop the framework. DOTs 
     and EPAs from Florida, Minnesota, New Hampshire, New Jersey, 
     and New York were involved. (An electronic version of the 
     guidelines is available on the Web site of the Recycled 
     Materials Resource Center [www.rmrc.unh.edu/Partners/
Framework/Start/start.html].)
       The report Environmental Impact of Construction and Repair 
     Materials on Surface and Ground Waters (NCHRP 25-9) was 
     prepared by the NCHRP after determining whether commonly used 
     construction and repair materials might affect--through the 
     persistence of any toxic leachates--the quality of surface 
     water or groundwater adjacent to highways. A number of widely 
     used waste and by-product materials were included in this 
     evaluation. By developing a model that can be applied to any 
     medium through which the leachates might pass, the report 
     provides users with a tool capable of predicting the 
     potential environmental harm of various waste and by-product 
     materials. (Copies of the report can be obtained from the 
     Transportation Research Board's bookstore [http://national 
     academies.org/trb/bookstore] by searching book code NR448.)
       Established in 1998 in close coordination with the FHWA's 
     Pavement Management Coordination Group, the Recycled 
     Materials Resource Center (RMRC) works on the national level 
     to promote the appropriate use of recycled materials in the 
     highways environment. The RMRC forms part of the 
     Environmental Research Group at the University of New 
     Hampshire. It has a unique role in the growing application of 
     recycled materials to highway construction--namely to serve 
     as a catalyst to reduce barriers to the appropriate use of 
     these materials. The center is a culmination of a number of 
     diverse but integrated efforts on the part of the FHWA, other 
     federal and state agencies, and academia to provide a 
     cohesive approach to the complex engineering and 
     environmental issues surrounding the use of recycled 
     materials. The RMRC focuses on both research and outreach 
     activities in carrying out its mission, and its principal 
     clients are state DOTs and EPAs.
       In terms of research, the RMRC channels approximately half 
     of its overall budget to a diverse range of projects related 
     to recycling. At present 2 projects have been completed and 
     11 are in progress nationwide at a number of academic 
     institutions and consulting companies. In addition, with the 
     request for proposals issued by the center in February, three 
     are slated to commence in September. The projects address a 
     range of engineering and environmental issues related to 
     recycling, among them the mitigation of alkali silicate 
     reactions in recycled concrete; environmental weathering of 
     granular waste materials; concrete mixtures with inclusions 
     to improve the sound-absorbing capacity of portland cement 
     concrete pavements; and the development of a risk analysis 
     framework for the beneficial use of secondary materials. 
     Attention is also given to leaching from granular materials 
     used in highway construction during intermittent wetting: the 
     development and preparation of specifications for recycled 
     materials in transportation applications; the determination 
     of the number of revolutions needed for cold-in-place 
     Superpave mixture design using the sequential gyratory 
     compactor; the development of a rational and practical mix 
     design system for full depth reclamation; the fatigue 
     durability of stabilized recycled aggregate base course 
     containing coal fly ash and waste-plastic strip 
     reinforcement; and the development of lightweight synthetic 
     aggregate from coal fly ash and waste plastics.
       The RMRC orchestrates numerous activities, the principal 
     and most accessible of which is its Web site 
     (www.rmrc.unh.edu). The site provides a variety of tools, 
     including a client registration feature; an information 
     request feature; virtual demonstration sites; updates on all 
     RMRC-funded research projects; numerous documents and 
     programs; links to pertinent specifications, state DOT 
     programs, literature search engines, and national and 
     international entities; lists of scheduled events; 
     information on funding opportunities; and access to libraries 
     and databases. In addition the center sends out a quarterly 
     electronic newsletter to its clients, keeping them abreast of 
     ongoing and upcoming events related to recycling.
       Of particular interest is the center's first specification 
     to be adopted by the American Association of State Highway 
     and Transportation Officials (AASHTO). In December 2000 
     AASHTO voted to adopt ``Glass Cullet Use for Soil Aggregate 
     Base Course'' as a new national specification (M-318-01). 
     While currently recognized as a national specification, the 
     document will first appear in the 21st edition of the AASHTO 
     specifications, which is slated for publication this year. 
     This recycling specification was developed by Warren Chesner 
     of Chesner Engineering, in Commack, New York, in conjunction 
     with the AASHTO subcommittee on materials as part of a 
     research project funded by the RMRC. The project is looking 
     at the properties of selected recycled materials and is 
     developing--with the assistance of a technical advisory group 
     made up of representatives of 15 state DOTS--specifications 
     in an AASHTO format for the use of these materials in highway 
     construction.
       An upcoming outreach event of note is the international 
     conference Beneficial Use of Recycled Materials in 
     Transportation Applications, which the center is helping to 
     organize. All told, 163 abstracts have been submitted from 
     engineers and researchers from 23 different countries. The 
     event will be held in Washington, DC, November 13-15 (see 
     [www.rmrc.unh.edu/2001Conf/overview.asp]).

[[Page 13439]]

       In September 1999 an FHWA delegation visited Sweden, 
     Denmark, Germany, the Netherlands, and France to review and 
     document innovative policies, programs, and techniques that 
     would help to reduce barriers to the use of recycled 
     materials in U.S. highways. The delegation met with more than 
     100 representatives from transportation and environment 
     ministries, research organizations, contractors, and material 
     producers involved with recycled materials in those 
     countries. The U.S. delegation discerned a number of factors 
     that have played a role in the success of recycling on 
     highways in Europe, particularly in the Netherlands. The 
     factors fall under the general concept of sustainability 
     within the highway environment. The major components of the 
     sustainability initiatives are the three Es: economics, 
     engineering, and environment. (The final report is available 
     online at [www.international.fhwa.dot.gov/Pdfs/
recycolor.pdf].)
       As a follow--on to the European visit, a workshop--
     Partnerships for Sustainability: A New Approach to Highway 
     Materials--was developed to share European advances in 
     recycling in the highway environment with a targeted audience 
     of state DOT materials engineers, state DOT environmental 
     staff members, and state EPA staff members who work on 
     beneficial use. Fifteen states were invited to send 
     representatives to the workshop, and more than 100 people 
     attended. The goals were to showcase recent developments, 
     introduce the Dutch sustainability concept, and encourage 
     state agency personnel to work together on all aspects of 
     using recycled materials on highways. (The workshop is 
     highlighted on the RMRC Web page [www.rmrc.unh.edu/
partner.asp], and the final report can be accessed at 
     [www.rmrc.unh.edu/Partners/finalreport.asp].)
       The FHWA has established a team to provide leadership, 
     direction, and technical guidance to the transportation 
     community to promote the use of recycled materials in highway 
     environments and to provide technical support and assistance. 
     The team is preparing a white paper that will set forth 
     priority initiatives for recycling, and it is forming 
     partnerships with AASHTO's subcommittees on materials and 
     construction, with the RMRC, and with industry. Members of 
     the team--their FHWA division given in parentheses--include 
     Jason Harrington and Michael Rafalowski (Infrastructure Core 
     Business Unit), Connie Hill (Planning and Environment Core 
     Business Unit), Terry Mitchell and Jack Youtcheff (Research 
     and Development Support Business Unit), Michael Smith 
     (Southern Resource Center), Walter Waidlich (New Hampshire 
     Division), Bryan Cawley (North Dakota Division), and Jim 
     Travis (Texas Division).
       A number of state DOTs have established recycling 
     coordinator positions. These positions frequently figure 
     prominently in technology transfer, research coordination, 
     and informational outreach. The DOTs of California, 
     Massachusetts, North Carolina, Pennsylvania, and Texas all 
     have active programs.


                              MassHighway

       Over the past few years, the Massachusetts DOT, 
     MassHighway, has made significant progress on the recycling 
     front. Steps have been taken throughout the department to 
     increase the use of waste and recycled materials in 
     construction projects and everyday activities; to focus on 
     recycled, remanufactured, and environmentally beneficial 
     materials in procurement decisions for offices, stockrooms, 
     facilities, and construction sites; and to promote the 
     recycling of various waste streams. Recycling and 
     environmentally beneficial procurement are becoming part of 
     the routine way of doing business at MassHighway. Although 
     highway performance, safety, and cost are of primary 
     importance, as long as recycled and environmentally 
     beneficial materials and products can fill this bill, they 
     will be considered comparable, if not superior, to virgin 
     alternatives.
       Recent projects in Massachusetts include the procurement of 
     recycled antifreeze, re-refined oils, and safety vests 
     manufactured from soft drink bottles that are fully recycled; 
     the acceptance of specifications allowing for the use of 
     recycled plastic offset blocks as a substitute for pressure-
     treated lumber blocks; and the commencement of a research 
     project to investigate the use of tire shreds beneath a 
     roadway embankment. In addition, there are plans to set up 
     trial and demonstration projects involving bio-based 
     lubricants, recycled street sweepings, and noise barriers 
     made of recycled plastic.
       In 1999 alone, MassHighway was able to recycle more than 
     10,000 tons (9,000 Mg) of waste, use more than 138,000 tons 
     (125,000 Mg) of reclaimed or recycled materials in 
     construction projects, and spend more than $33 million on 
     materials and products that had a high recycled content or 
     were environmentally beneficial. There is still much to be 
     done. MassHighway will continue to evaluate its many 
     procurement procedures and specifications to remove 
     unnecessary barriers and find new applications for recycled 
     materials and materials that are environmentally beneficial. 
     It will also continue to examine its construction and 
     maintenance operations to find areas where waste can be 
     reduced. Additionally, it will continue to work in 
     coordination with local, state, and national environmental 
     and public works entities to share its experiences and to 
     learn more about the use of recycled and environmentally 
     beneficial materials in highway and roadway construction.


                            pennslyvania dot

       PennDOT has developed a strategic recycling program (SRP) 
     as a tool for systematically identifying, evaluating, and 
     implementing opportunities to sue recycled materials in 
     transportation and civil engineering work throughout the 
     state. The ultimate objective of the SRP is to realize 
     economic savings and environmental benefits for both PennDOT 
     and the state by recycling, limiting pollution, and 
     continuing various other environmental initiatives.
       Five key areas have been targeted by the state to help 
     PennDOT achieve and sustain its mission to increase the use 
     of recycled materials:
       (1) Research: Continue to evaluate the existing uses of 
     recycled materials and products and conduct research into new 
     uses of recycled materials in transportation and civil 
     engineering work.
       (2) Specifications: Develop and approve material and use 
     specifications, bidding specifications, and guidelines for 
     the use of recycled materials that confer significant 
     environmental, engineering, or economic benefits.
       (3) Project development: Identify, promote, and plan 
     projects that use recycled materials that conform to approved 
     or provisional specifications.
       (4) Communication: Provide information via various media to 
     PennDOT, government agencies, and the public on the 
     performance and applicability of recycled materials in 
     transportation and civil engineering work.
       (5) Contract bidding: Evaluate construction contract legal 
     bidding requirements and develop innovative ways to enable 
     PennDOT to specify the use of recycled materials in 
     transportation construction and maintenance projects.


                           North Carolina DOT

       Last year NCDOT recycled 2.4 million lb (1.1 million kg) of 
     metal, 1 million lb (450,000 kg) of paper products, and more 
     than 30,000 lb (14,000 kg) of glass and plastic as part of 
     their daily operations. In addition to these efforts, the 
     department continues to seek applications for recycled 
     products in highway construction. Since 1989 the NCDOT has 
     used more than 7 million tires, 50,000 tons (45,000 kg) of 
     glass beads, and 14,000 tons (13,000 kg) of asphalt shingles.
       Lyndo Tippett, the state's secretary of transportation, has 
     indicated he will expand the department's environmental 
     efforts. ``As a native of rural North Carolina, I know 
     firsthand the value of our state's natural resources,'' he 
     said. ``We must be proactive about finding opportunities that 
     not only protect our environment but also improve it.''
       One such opportunity is the department's partnership with 
     Habitat for Humanity of Wake County, which won an 
     environmental excellence award from the FHWA this year. In 
     this program, Habitat helps raze houses within the 
     department's rights-of-way that are scheduled for demolition.
       Prospective homeowners help demolish the houses, earning 
     credit toward the construction of their new homes. Materials 
     are then stored in Habitat's reuse center and sold to the 
     general public at reduced prices. The department is currently 
     working to develop partnerships with other Habitat chapters 
     throughout the state.
       Another initiative is a pilot project with Bion 
     Technologies, of Clayton, North Carolina. Last year the 
     company donated 900 lb (410 kg) of swine waste for use as an 
     alternative to commercial fertilizer. NCDOT roadside 
     environmental engineers are currently working with the 
     company to monitor the effectiveness of this product in test 
     plots of wildflower beds along U.S. 117 south of Goldsboro to 
     see if more widespread use is warranted.
       ``Our partnerships with Habitat for Humanity and Bion 
     Technologies demonstrate to the public the positive effect 
     that recycling has on our culture as well as our 
     environment,'' said Tippett. ``These efforts also prove that 
     it is possible to have a quality transportation system and a 
     beautiful environment at the same time.''


                               texas dot

       TxDOT's road to recycling initiative represents a mammoth 
     endeavor to use recycled materials in road construction and 
     maintenance projects. The goal of this initiative is to 
     increase the use of recycled materials in road construction 
     when they confer environmental benefits and economic or 
     engineering advantages.
       Since 1995 TxDOT has coordinated more than $1 million worth 
     of research to investigate the use of a broad array of 
     recycled materials in road construction, including glass 
     cullet, scrap tires, fly and bottom ash, crushed porcelain 
     toilets, shredded brush, compost, roofing shingles, plastics, 
     RAP, crushed concrete, and industrial wastes. The research 
     has been equally broad in the scope of roadway construction 
     applications studied and has examined road signs, roadway 
     safety devices, embankments, asphalt and concrete pavements, 
     soil erosion control, drainage, vertical moisture barriers, 
     and road bases.

[[Page 13440]]

       Information on the merits of recycled roadway materials has 
     been disseminated around the world through information 
     showcases, press releases, a video, a Web site, two 
     conferences, and a yearlong publicity campaign.
       Since the inception of its recycling program in 1994, TxDOT 
     has spent more than $506 million on ``green'' products and 
     diverted more than 13 million tons (12 million Mg) of 
     materials from landfills--a diversion equivalent to more than 
     1,300 lb (590 kg) for every man, woman, and child in Texas. 
     These staggering numbers are for the most part directly 
     attributable to the use of recycled materials in road 
     construction applications.
       As part of its continuing efforts to promote the use of 
     materials recovered from solid waste, the U.S. EPA has 
     developed the Comprehensive Procurement Guideline (CPG) 
     program. The institutional purchase of recycled products by 
     government ensures that the materials collected in recycling 
     programs will be used again in the manufacture of new 
     products. Congress authorizes the CPG program under section 
     6002 of the Resource Conservation and Recovery Act (RCRA). 
     The CPG process designates products that are or can be made 
     with recycled materials. At present for construction 
     products, coal fly ash and ground granulated blast furnace 
     slag are listed for cement and concrete materials, and coal 
     fly ash and foundry sands are listed for flowable fill. 
     Materials are also listed for transportation and landscaping 
     categories. (Additional information is available at 
     [www.epa.gov/cpg/].)


                           other initiatives

       Established in the 1990s by the U.S. Department of Energy 
     (DOE), the Industries for the Future Program creates 
     partnerships linking industry, government, and supporting 
     laboratories and institutions to accelerate technology 
     research, development, and deployment. The DOE's Office of 
     Industrial Technologies is implementing the program for nine 
     energy- and waste-intensive industries, namely agriculture, 
     aluminum, chemicals, forest products, glass, metal casting, 
     mining, petroleum, and steel. The program's goal of 
     increasing competitiveness and reducing energy consumption 
     waste involves recycling by-products from these industries. A 
     recent conference hosted by the DOE and the Civil Engineering 
     Research Foundation explored recycling opportunities for 
     these industries and in formulating plans for the future 
     looked at perceived barriers, market needs, and collaborative 
     relationships. (For additional information about the 
     Industries for the Future Program, see [www.oit.doe.gov/
industries.shtml].)
       Life-cycle analysis (LCA) has become increasingly common in 
     civil engineering construction applications. Indeed, its use 
     is being widely encouraged in addressing America's 
     infrastructure problems. An excellent example of this 
     application is the model BridgeLCC, developed by the National 
     Institute for Standards and Technology for use evaluating 
     high-performance bridges. BridgeLCC (see [www.bfrl.nist.gov/
 bridgelccl] is geared toward helping design engineers 
     estimate and compare the life-cycle costs of a new 
     technology--for example, high-performance concrete or fiber-
     reinforced-polymer (FRP) composites--with those of a 
     conventional technology made with conventional materials. The 
     FHWA has instituted similar models for highway design (see 
     [www.fhwa.dot.gov/resourcecenters/southern/msmith.htm]).
       There is less experience here in the United States with the 
     application of LCA in deciding whether to use recycled 
     materials or traditional materials in highway work, and this 
     is even more pronounced when environmental burdens or 
     emissions are included in the model. Recent work by the 
     Finnish National Road Administration has resulted in the 
     development of a comprehensive LCA and inventory analysis 
     program. In Finland the production and transport of materials 
     produce the most significant environmental burdens; the 
     activities that consume the most energy are the production of 
     bituminous asphalt and cement and the crushing and transport 
     of materials. The consumption of raw materials and the 
     leaching behavior of recycled materials there were also 
     regarded as being of great significance. A weighted 
     environmental loading assessment for three scenarios (coal 
     fly ash in subbase and stabilized subbase; crushed concrete 
     in base and subbase; and blast furnace slags in base, 
     subbase, and lower subbase) and a traditional construction 
     scenario were conducted in the Finnish study. The use of 
     blast furnace slag, crushed concrete, and coal fly ash in 
     road bases was seen as imposing a lower total environmental 
     loading than the use of coal fly ash in stabilized subbases 
     or the use of traditional pavements using crushed rock.
       Obviously, such analytical tools and case studies need to 
     be developed and applied to scenarios here in the United 
     States. However, the Finnish National Road Administration 
     data suggest that in a broader sense there may be additional 
     benefits to using recycled materials when life-cycle material 
     costs are considered in conjunction with the harm to the 
     environmental caused by energy production and the processing 
     and transport of materials.
       In refining their strategic plans, state DOT may find it 
     advantageous to consider the role of recycling. In addition, 
     as studies are carried out on proposed transportation 
     projects under the auspices of the National Environmental 
     Policy Act, is it possible that credit might be given for the 
     use of recycled materials, particularly if LCA shows that the 
     materials convey environmental benefits?
       The Netherlands probably best typifies the concept of 
     sustainability, and it offers a suitable model for certain 
     states and metropolitan areas here in the United States. The 
     recycling or reuse of secondary materials within the Dutch 
     building industry is commonplace--more than 10 percent of all 
     granular materials used in the building industry are 
     recycled.
       The Netherlands is an affluent country with high population 
     densities and limited land resources. The public has elected 
     not to set aside areas for landfills or aggregate mining. 
     This has led to the practice of sustainable development 
     within the building industry, as well as to a subset of that 
     industry: the highway construction industry. The basic 
     premise of the sustainability concept is that material cycles 
     should be closed (recycling involving use, reuse, re-reuse, 
     et cetera) so that there is less outright disposal and less 
     consumption of non-renewable natural materials. A number of 
     legislative initiatives, including the National Environmental 
     Policy Plan, the Waste Materials Policy, the Soil Protection 
     Policy, the Surface Minerals Policy, and the Construction 
     Industry Policy Declaration, provide the underpinning for 
     sustainable construction.
       The Dutch have adopted a market philosophy that regards 
     recycled materials as products rather than waste. This means 
     that the product will exhibit a typical product life cycle in 
     the marketplace. Recycled materials first undergo development 
     before coming into widespread use and maturing. Government 
     and private-sector publicity campaigns and policies support 
     the market. This concept might prove applicable in the United 
     States in states or geographic regions where population 
     densities are high, natural aggregates are scarce, and 
     sources of suitable recycled materials are plentiful.
       The Dutch government provides clear and unequivocal 
     engineering and environmental standards for all recycled 
     materials. This is usually achieved through governmental 
     research in support of the standards. Further, public or 
     industry working groups (including contractors) work together 
     to achieve these standards. The producers of recycled 
     materials use certified quality assurance and quality control 
     programs so that their goods can compete against natural 
     materials. The policy is clear, as is the planning and 
     implementation, which enables the producers and contractors 
     to prepare for this new market. The government provides 
     certain economic incentives, such as hefty landfill disposal 
     taxes on materials that can be recycled and modest taxes on 
     the use of natural aggregates. If these aspects are combined, 
     then a mature recycling market can develop over time.
       There is a clear need for partnerships linking the private 
     sector, universities, research institutions, government 
     bodies, environmental groups, and the public. This relates to 
     the formulation and coordination of policy, the transfer of 
     information, and making resources available for additional 
     research and development (R&D).
       The private sector can play a variety of roles. Those 
     interested in having their by-products considered can make 
     use of the document Framework for Evaluating Use of Recycled 
     Materials in the Highway Environment so that they can work 
     with state DOTs and EPAs to develop the necessary data for 
     evaluation. Contractors can explore the use of recycled 
     materials to help meet the requirements of performance bonds. 
     Equipment manufacturers can also play a role by developing 
     technologies that would make it possible to recycle materials 
     on-site for pavements, bridges, and other civil 
     infrastructure, thereby reducing transport costs and 
     associated environmental burdens.
       At the state level, it may be appropriate for the DOTs to 
     consider recycling as stand-alone policy or as part and 
     parcel of their strategic plans. PennDOT's SRP may be a 
     starting point in efforts to systematically find, evaluate, 
     and apply recycled materials in transportation and civil 
     engineering work (see [www.dot.state.pa.us/penndot/bureaus/
beq.nsf/srp?OpenPage]). State DOTs may wish to give credit to 
     recycling strategies during the planning stage of 
     transportation projects, as well as in analyzing alternatives 
     and mitigation measures. In planning transportation projects 
     states could develop checklists that ask questions about 
     recycling choices or options for use, with the responses used 
     in analyzing alternatives and evaluating secondary and 
     cumulative effects. States could use information derived from 
     LCAs as part of their benefits analysis and in information 
     packages prepared for public hearings and for obtaining 
     permits.
       A more formal relationship between AASHTO and the 
     Association of State and Territorial Solid Waste Management 
     Officials is definitely worth exploring as this can help pave 
     the way for relationships at the state level. State DOTs and 
     EPAs might consider adopting beneficial use evaluation

[[Page 13441]]

     frameworks similar to successful ones already in place or to 
     the generic one offered by the Framework for Evaluating Use 
     of Recycled Materials in the Highway Environment.
       A lowering of the barriers encountered in transferring 
     technologies from one jurisdiction to another across state 
     lines would be a great benefit. Fortunately, the 
     Environmental Council of State (see [www.sso.org/ecos/]) has 
     two programs related to reciprocity. The group called 
     Interstate Technology Regulatory Cooperation (ITRC) is a 
     state-led national coalition dedicated to achieving better 
     environmental protection through the use of innovative 
     technologies. The ITRC (www.itrcweb.org/) is exploring 
     general reciprocity arrangements involving 37 state members. 
     Six states (California, Illinois, Massachusetts, New Jersey, 
     Pennsylvania, and Virginia), under the Environmental 
     Technology Acceptance and Reciprocity Partnership (e.TARP) 
     are exploring reciprocity arrangements of a more formal type, 
     including one for beneficial use determinations.
       One recommendation that was strongly emphasized in the 
     final report on the workshop Partnerships for Sustainability: 
     A New Approach to Highway Materials Partnerships for 
     Sustainability is that state DOTs establish recycling 
     coordinator positions for the purposes of technology 
     transfer, research coordination, and outreach.
       At the federal level, partnerships linking the private 
     sector, the FHWA, the U.S. EPA, the DOE, and other competent 
     agencies are encouraged. Two obvious examples might be 
     coordinating the U.S. EPA's CPG program with the DOE's 
     Industries for the Future Program. Funneling beneficial use 
     applications and adopted specifications to the CPG program 
     also makes sense. There may be an opportunity to establish a 
     leadership council that could coordinate communication and 
     policy and improve intergovernmental approaches. Shared 
     funding should be considered for lowering barriers between 
     jurisdictions, demonstrating the use of innovative materials, 
     and applying ICA analysis. A recent report on the role to be 
     played by the National Science Foundation in meeting 
     environmental science and engineering needs in the 21st 
     century named industrial ecology (including product and 
     process ICA) as a program needing enhancement. This topic 
     should include recycling for infrastructure improvement.
       Congress is considering a number of bills that could serve 
     as vehicles in promoting recycling. The reauthorization of 
     the next highway bill in 2003 provides an excellent 
     opportunity to further promote appropriate recycling, 
     partnerships, technology transfer, and R&D. Making funds 
     available to allow two or more states to carry out joint 
     demonstration projects would go a long way toward reducing 
     barriers. Congress can also examine the information recently 
     provided by the U.S. EPA's Science Advisory Board on 
     overcoming barriers to waste utilization (see [www.epa.gov/
science1/eeccm06.pdf]). One of the board's most important 
     recommendations--interpreting key definitions so that wastes 
     could be beneficially used and not be inappropriately labeled 
     as hazardous--would help with the confusion at the federal 
     level about the need for a third category of by-product. 
     Material that qualifies for inclusion in this category would 
     not be labeled as solid waste or as hazardous waste; rather 
     it would be suitable for beneficial reuse in an open market. 
     The reauthorization of the RCRA may provide a suitable 
     opportunity for this change.
                                  ____


        Federal Highway Administration Recycled Materials Policy


                        ADMINISTRATOR'S MESSAGE

       The National Highway System (NHS) is extensive, with over 
     160,000 miles of highway pavements and over 128,000 
     structures, built using large quantities of asphalt, 
     concrete, steel, and aggregate, and smaller quantities of 
     nonferrous metals, plastics, and other materials. Much of the 
     system was constructed in the 1960's and 70's and is in need 
     of major rehabilitation or total reconstruction; and much of 
     the materials used to build that system can be recycled for 
     use in the new construction. In order to carry out the 
     mission of the FHWA, i.e., to ``improve the quality of the 
     Nation's highway system,'' the NHS must be properly 
     preserved, maintained, rehabilitated, and when necessary, 
     reconstructed. Maintenance of highways and associated 
     structures is critical to our ability to provide the safest, 
     most efficient roadway system possible, while simultaneously 
     providing the greatest level of protection to the human and 
     natural environment.
       The same materials used to build the original highway 
     system can be re-used to repair, reconstruct, and maintain 
     them. Where appropriate, recycling of aggregates and other 
     highway construction materials makes sound economic, 
     environmental, and engineering sense. The economic benefits 
     from the re-use of nonrenewable highway materials can provide 
     a great boost to the highway industry. Recycling highway 
     construction materials can be a cost-saving measure, freeing 
     funds for additional highway construction, rehabilitation, 
     preservation or maintenance.
       Recycling presents environmental opportunities and 
     challenges, which, when appropriately addressed, can maximize 
     the benefits of re-use. The use of most recycled materials 
     poses no threat or danger to the air, soil, or water. 
     Furthermore, careful design, engineering and application of 
     recycled materials can reduce or eliminate the need to search 
     for and extract new, virgin materials from the land. The 
     engineering feasibility of using recycled materials has been 
     demonstrated in research, field studies, experimental 
     projects and long-term performance testing and analysis. 
     Significant advances in technology over the past decade have 
     increased the types of recycled materials in use and the 
     range of their applications. When appropriately used, 
     recycled materials can effectively and safely reduce cost, 
     save time, offer equal or, in some cases, significant 
     improvement to performance qualities, and provide long-term 
     environmental benefits.
       FHWA has established agency goals for enhancing the human 
     and natural environment, increasing mobility, raising 
     productivity, improving safety throughout the highway 
     industry, and preserving national security. All of these 
     goals are stated in our strategic plan, and we will ensure 
     that the FHWA recycling policy and recycling programs are in 
     alignment with those goals and underlying principles. This 
     recycling policy statement is offered to advance the use of 
     recycled materials in highway applications. It is intended to 
     provide leadership, direction, and technical guidance to the 
     transportation community for the use of recycling technology 
     and materials in the highway environment. The FHWA policy is:
       1. Recycling and reuse can offer engineering, economic and 
     environmental benefits.
       2. Recycled materials should get first consideration in 
     materials selection.
       3. Determination of the use of recycled materials should 
     include an initial review of engineering and environmental 
     suitability.
       4. An assessment of economic benefits should follow in the 
     selection process.
       5. Restrictions that prohibit the use of recycled materials 
     without technical basis should be removed from 
     specifications.
       FHWA has a longstanding position that any material used in 
     highway or bridge construction, be it virgin or recycled, 
     shall not adversely affect the performance, safety or the 
     environment of the highway system. This remains a cornerstone 
     in our policy statement. In order to foster innovation and 
     future development we support research, field trials, and 
     project demonstrations showcasing the findings.
       We will do this with: People:
       The FHWA Recycling Team.
       Creation of a team of champions in our Division Offices 
     that will be points of contact for recycling technology.
       Partnering:
       The Recycled Materials Resource Center.
       Working with the AASHTO Subcommittee on Materials and 
     Environment.
       AASHTO Standing Committee on Highways recently passed a 
     resolution on ``Use of Recycled Materials''. That document 
     requests the establishment of a joint task force be created 
     to provide the overall leadership for a coordinated national 
     recycling program.
       Coordination with State highway agency (SHA) Recycling 
     Coordinators and state solid waste management regulators.
       Interaction and coordination with industry partners.
       Taking the lead for coordination of recycling activities 
     and initiatives.
       Promotion and Support:
       Agency emphasis on recycling technology in the FHWA 
     Strategic Plan.
       Research, development, and technology transfer programs to 
     further innovation.
       Demonstration projects.
       Increased training opportunities for FHWA and SHA staff.
       Active promotion of recycling technology by providing 
     needed specifications, best practices, design guidance, and 
     material testing results to overcome barriers.
       Assistance in review, evaluation, and advancement of 
     emerging technology.
       Promoting the concept of ``sustainable'' construction, 
     i.e., construction designed for later recycling.
                                         Frederick G. Wright, Jr.,
     Executive Director.
                                  ____

                                          New Mexico State Highway


                                and Transportation Department,

                                        Santa Fe, NM, May 6, 2003.
     Attention: Eric Burman, Legislative Fellow.
     Hon. Jeff Bingaman,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Bingaman: My staff and I have reviewed the 
     proposed ``Recycled Roads Act of 2003'' legislation and 
     support it for the following reasons:
       The legislation supports on-going work that the NMSHTD 
     Recycling Task Force has been doing. It will enable us to 
     complete additional research on issues related to the use of 
     recycled materials on our roadways. Two current issues we are 
     pursuing are: (1) The feasibility of rubberized pavement in 
     roadway construction, and (2) The use of compost and/or mulch 
     as an alternative to reseeding upon the completion of 
     construction related projects.
       Another important aspect of this legislation is that 
     through its reporting requirements, it will enhance 
     communication and cooperation between the NMSHTD (NMDOT)

[[Page 13442]]

     and other groups who are interested in the use of recycled 
     materials in transportation facility maintenance and 
     construction (e.g., state and tribal Departments of 
     Transportation).
       This legislation can provide the Department an opportunity 
     to expand and accelerate progress in areas we currently 
     pursue with limited resources.
           Sincerely,
                                                 Rhonda G. Faught,
     Cabinet Secretary.
                                  ____



                                        Environmental Defense,

                                     Washington, DC, May 22, 2003.
     Hon. Jeff Bingaman,
     U.S. Senate,
     Washington, DC.
       Dear Senator Bingaman: Environmental Defense is pleased to 
     endorse the Recycled Roads Act, which promotes the use of 
     nontoxic recycled materials as road construction materials. 
     Using these recycled materials not only diverts them from 
     landfills and incinerators, but also reduces energy use and 
     pollution associated with manufacturing virgin materials for 
     road construction, thus benefiting the environment and human 
     health. It also provides economic benefits by enhancing 
     markets for recycling of materials like glass and tires that 
     have traditionally had limited recycling markets or 
     viability. Because some potentially recyclable materials have 
     toxic constituents, the bill's provisions requiring 
     evaluation of risk (in conjunction with the Administrator of 
     the Environmental Protection Agency) are a key aspect of the 
     bill. As always, our endorsement is specific to the text of 
     the bill as it stands at this point.
       Thank you for taking a leadership role on this important 
     issue.
           Sincerely,
                                                    Karen Florini,
     Senior Attorney.
                                  ____

                                            Surface Transportation


                                               Policy Project,

                                     Washington, DC, May 22, 2003.
     Hon. Jeff Bingaman,
     U.S. Senate, Hart Senate Office Building,
     Washington, DC.
       Dear Senator Bingaman: On behalf of the Surface 
     Transportation Policy Project, I am writing to convey our 
     support for your legislation, the ``Recycle Roads Act of 
     2003.''
       The Surface Transportation Policy Project, among it goals, 
     seeks improved energy use and environmental protection. We 
     believe that our transportation investments, services and 
     incentives should not only meet our travel needs, but also 
     can further our efforts to protect and enhance the integrity 
     of our natural resources and enhance resource efficiency and 
     energy conservation goals.
       We know that the use of recyclable materials in 
     transportation projects conserves raw materials and reduces 
     the quantities of waste deposited in landfills. We also see 
     recyclable materials as part of a broader effort to extend 
     the life cycle of our transportation facilities, an important 
     value as we continue to look for ways to leverage available 
     dollars.
       Increased recycling can deliver engineering, economic and 
     environmental benefits, including increased opportunities for 
     rural economic development. The legislation would help create 
     new markets and incentives for recycling in small communities 
     and would provide additional savings for all levels of 
     government. The legislation would also foster greater 
     cooperation between transportation and environmental programs 
     carried out by states or Indian tribes.
       We applaud your leadership in developing this legislation 
     and support your efforts to move it forward during this 
     Congress.
           Sincerely,
                                                       Anne Canby,
     President.
                                  ____


                                S. 1168

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Recycled Roads Act of 
     2003''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) in 2000, there were more than 3,951,000 miles of 
     highways in the United States;
       (2) in the early 1990s, as much as 350,000,000 tons of raw 
     and recyclable material were used annually for highway 
     construction, rehabilitation, and maintenance;
       (3) in 2002, the Federal Government provided 
     $26,348,000,000, or more than 34 percent of funding, for 
     highways in the United States;
       (4) at least 45 States recycle a total of 73,000,000 tons 
     of reclaimed asphalt pavement annually, the use of which 
     results in an annual savings of approximately $300,000,000 as 
     compared with the cost of using raw material;
       (5) in 2002, the Federal Highway Administration issued a 
     policy encouraging States to use recycled material in highway 
     construction because recycling and reuse can offer 
     engineering, economic, and environmental benefits;
       (6) greater incorporation of recyclable material in highway 
     construction would--
       (A) provide a significant new national market for the use 
     of recyclable material;
       (B) create new markets and incentives for recycling in 
     small communities;
       (C) conserve raw material; and
       (D) reduce the quantities of waste deposited in landfills 
     in the United States (which would produce an additional 
     savings for the Federal Government and State governments); 
     and
       (7) the increased use of recyclable material in highway 
     construction could--
       (A) provide additional opportunities for rural economic 
     development; and
       (B) encourage expanded use of biomass products.

     SEC. 3. USE OF RECYCLABLE MATERIAL IN FEDERAL-AID HIGHWAY 
                   CONSTRUCTION.

       (a) In General.--Subchapter I of chapter 1 of title 23, 
     United States Code, is amended by inserting after section 138 
     the following:

     ``Sec. 139. Use of recyclable material in Federal-aid highway 
       construction

       ``(a) Definition of Recyclable Material.--In this section:
       ``(1) In general.--The term `recyclable material' means any 
     material described in paragraph (2) that is determined by the 
     Secretary, in consultation with the Administrator of the 
     Environmental Protection Agency--
       ``(A) to be recyclable and usable in construction of a 
     Federal-aid highway; and
       ``(B) to have undergone a recycling process to prepare the 
     material for further use.
       ``(2) Materials.--The materials referred to in paragraph 
     (1) are--
       ``(A) glass;
       ``(B) forest biomass;
       ``(C) a used tire or tire product;
       ``(D) reclaimed asphalt;
       ``(E) plastic; and
       ``(F) any other suitable material that does not contain a 
     total concentration of any toxic constituent that poses a 
     risk to human health or the environment--
       ``(i) during preconstruction activity, including storage, 
     transportation, or preparation of the material for use in 
     road construction;
       ``(ii) during the useful life of the road; or
       ``(iii) after the useful life of the road, including 
     subsequent recycling, reuse, or disposal of components of or 
     debris from the road.
       ``(b) Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     recycled roads incentive grant program to encourage the 
     expanded use by States and Indian tribes of a diverse range 
     of recyclable material in the construction of Federal-aid 
     highways.
       ``(2) Grants.--In carrying out this section, the Secretary 
     shall provide to each State or qualified (as determined by 
     the Secretary) Indian tribe--
       ``(A) a grant, in an amount not to exceed $125,000 for a 
     fiscal year, to be used by the State or Indian tribe in 
     employing a coordinator to promote the use of a diverse range 
     of recyclable material in Federal-aid highway construction; 
     and
       ``(B) a grant, on a competitive basis, in an amount not to 
     exceed $1,400,000 for a fiscal year, to be used by the State 
     or Indian tribe in carrying out projects and activities to 
     promote the expanded use of a diverse range of recyclable 
     material in Federal-aid highway construction and maintenance, 
     such as projects and activities to--
       ``(i) eliminate economic barriers;
       ``(ii) develop markets;
       ``(iii) provide outreach, training, or technical 
     assistance; or
       ``(iv) collect program and performance data.
       ``(3) Administration.--
       ``(A) Redistribution of funds.--If funds made available for 
     use in providing grants under subparagraph (A) or (B) of 
     paragraph (2) for a fiscal year remain after the Secretary 
     has provided grants under the subparagraph for the fiscal 
     year, the Secretary--
       ``(i) may use the remaining funds to provide additional 
     grants under that paragraph for the fiscal year; but
       ``(ii) notwithstanding any other provision of this title, 
     shall not use the funds to provide grants or assistance under 
     any other program under this title.
       ``(B) Transportation and environmental cooperation.--In 
     providing a grant to a State or Indian tribe under paragraph 
     (2)(B), the Secretary shall encourage cooperation between 
     transportation and environmental programs carried out by the 
     State or Indian tribe.
       ``(C) Equitable treatment of states and indian tribes.--To 
     the maximum extent practicable, the Secretary shall treat an 
     Indian tribe as a State for the purpose of a grant provided 
     under paragraph (2).
       ``(4) State and tribal reports.--For the fiscal year in 
     which the program under this section is implemented and each 
     fiscal year thereafter, each State and Indian tribe that 
     receives a grant under paragraph (2) shall--
       ``(A) collect a sampling of data pertaining to the use by 
     the State or Indian tribe, during the fiscal year covered by 
     the report, of recyclable material in the projects for 
     construction of Federal-aid highways in the State or on land 
     under the jurisdiction of the Indian tribe that are carried 
     out under this section or any other provision of this title 
     using at least $1,000,000 in Federal funds, including a 
     description of--

[[Page 13443]]

       ``(i) each type of recyclable material used;
       ``(ii) the quantity of each recyclable material used; and
       ``(iii) the proportion that--

       ``(I) the quantity of each recyclable material used; bears 
     to
       ``(II) the quantity of all recyclable material and raw 
     material used; and

       ``(B) submit to the Secretary a report describing those 
     data.
       ``(5) Quality control.--The Secretary shall ensure, to the 
     maximum extent practicable, that data provided by a State or 
     Indian tribe under paragraph (4) is of a sufficient quality 
     and range to permit the Secretary to assess national 
     accomplishments involving the use of recyclable material.
       ``(c) Reports.--
       ``(1) Initial report.--Not later than 180 days after the 
     date of enactment of the Recycled Roads Act of 2003, the 
     Secretary shall submit to the appropriate committees of 
     Congress a report on the program to be carried out under this 
     section that includes--
       ``(A) an overview of program requirements;
       ``(B) an analysis of any significant issues relating to the 
     program; and
       ``(C) a proposed timeline for implementation of the 
     program.
       ``(2) Annual reports.--Not later than 2 years after the 
     date of enactment of the Recycled Roads Act of 2003, and 
     annually thereafter on the date of issuance of the annual 
     program performance report under section 1116 of title 31, 
     United States Code, the Secretary shall submit to the 
     appropriate committees of Congress a report on the program 
     under this section, including, for each recyclable material 
     used in the construction of a Federal-aid highway during the 
     period covered by the report, the information described in 
     subsection (b)(4).
       ``(d) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account)--
       ``(1) $10,125,000 for use in providing grants under 
     subsection (b)(2)(A) for each fiscal year; and
       ``(2) $113,400,000 for use in providing grants under 
     subsection (b)(2)(B) for each fiscal year.''.
       (b) Conforming Amendment.--The analysis for subchapter I of 
     chapter 1 of title 23, United States Code, is amended by 
     inserting after the item relating to section 138 the 
     following:

``139. Use of recyclable material in Federal-aid highway 
              construction.''.
                                 ______
                                 
      By Mr. SPECTER:
  S. 1169. A bill to decrease the United States dependence on imported 
oil by the year 2015; to the Committee on Commerce, Science, and 
Transportation.
  Mr. SPECTER. Mr. President, I have sought recognition to introduce 
legislation that would reduce our Nation's dependence on imported oil. 
Last year, Senator Carper and I introduced this legislation as an 
amendment to the energy bill and I offer it today to begin a debate and 
dialogue in the Senate about the merits of this goal.
  During last year's energy bill consideration, I joined over 60 of my 
colleagues in voting for the Levin-Bond amendment regarding the 
Corporate Average Fuel Economy standards for cars, SUV's, and light 
trucks. Given the instability in the Middle East and our Nation's 
reliance on foreign oil, Senator Carper and I offered additional 
language to slow the growth of our dependency on oil in a measurable 
way on the energy bill.
  I supported the Levin-Bond amendment because, among other things, it 
would have invested Federal dollars in research and development of 
advanced technology vehicles. It would have harnessed the power of 
government to purchase and commercialize hybrid and fuel cell-powered 
vehicles. I also supported the amendment's accompanying tax incentives, 
which would further encourage the production and purchase of advanced, 
fuel-efficient vehicles.
  However, the Levin-Bond amendment fell short in one important area--
it did not include a clear, measurable objective for oil savings. The 
issue is not just the Corporate Average Fuel Efficiency, CAFE, or Miles 
Per Gallon, MPG--rather it is oil and our growing dependence on imports 
for 56 percent of what we use. The bill I am introducing today would 
implement the Levin-Bond requirement that the Secretary of 
Transportation issue new regulations setting forth increased average 
fuel economy standards and further require that the Secretary of 
Transportation issue regulations to reduce the amount of oil consumed 
in our passenger cars and light trucks in 2015 by 1,000,000 barrels per 
day compared to consumption without such regulations in place.
  Federal research has identified promising fuel technologies, 
including fuels developed from biomass, coal waste, and other sources 
that could play a role in reducing our dependence on traditional, 
foreign crude oil and facilitate a transition to advanced fuels. For 
example, one important effort that is happening in Pennsylvania 
involves a recent $100 million U.S. Department of Energy grant to build 
the first U.S. coal-waste-to-clean-fuel plant. This $612 million plant 
is expected to produce 5,000 barrels of sulfur-free diesel or other 
types of transportation fuel daily. This will have the multiple 
benefits of removing coal waste, reducing acid mine drainage, producing 
fuels that will reduce air pollution, and using a domestic energy 
supply, thus reducing the need to import foreign oil. The bill I am 
introducing today tasks the Department of Energy to work with the 
Department of Transportation to develop and encourage such 
technologies.
  America uses about 8 million barrels of oil daily to power the 
vehicles that we drive. The Department of Energy forecasts that this 
amount will climb to 10.6 million barrels per day by 2015, an increase 
of over 35 percent. I propose to limit that growth to 23 percent, or 
9.6 million barrels.
  America's national security is jeopardized by our growing dependence 
on foreign oil. Oil imports now account for a third of our nation's 
trade deficit, which exceeded $400 billion in 2001. I will continue to 
raise the issue of the untenable position the United States is in by 
relying on oil from the Middle East. This is highlighted by the fact 
that we continue to see suicide bombings in Israel and new attacks in 
other Middle Eastern nations such as Saudi Arabia and Morocco.
  Additionally, the exhausts of our motor vehicles are the source of 
significant amounts of air pollution, including a quarter of the carbon 
dioxide emitted into our atmosphere, which is sited as a lead 
contributor to global climate change.
  To address these concerns, Congress need not attempt to micro manage 
a solution by setting higher CAFE levels. We should, however, set a 
clear, measurable objective--reducing the growth in oil consumption by 
at least a million barrels per day by 2015. We should then delegate to 
NHTSA, as the energy bill would have accomplished last year under the 
Levin-Bond amendment and my legislation does, the responsibility for 
working with the auto industry to achieve that objective. That approach 
will encourage American ingenuity and foster a public-private 
partnership that recognizes the interests of consumers and auto makers, 
as well as furthering public policy that will help relieve the very 
significant and dangerous policy of relying on our economy's lifeblood 
of oil from unstable regions.
  As this body considers energy legislation, I encourage my colleagues 
to consider the importance of taking appropriate steps to reduce our 
dependence on foreign sources of energy, particularly oil. I invite my 
colleagues to join me in this effort by cosponsoring this legislation.
                                 ______
                                 
      By Mr. WYDEN:
  S. 1170. A bill to designate certain conduct by sports agents 
relating to signing of contracts with student athletes as unfair and 
deceptive acts or practices to be regulated by the Federal Trade 
Commission; to the Committee on Commerce, Science, and Transportation.
  Mr. WYDEN. Mr. President, summer is upon us. For many college 
athletes, that means leaving campus and heading back to a home in a 
different state. Some may take the opportunity to do some traveling, or 
even to attend sports camps in various parts of the country.
  Unfortunately, this well-earned break can carry real risks for the 
athletes and their schools. Why? Because traveling student athletes may 
be big targets for opportunistic sports agents--and due to highly 
inconsistent state laws on the subject, the legal protections that an 
athlete might enjoy in the state where the college is located don't 
necessarily apply elsewhere.

[[Page 13444]]

  Today I am reintroducing a bill to address this issue, the Sports 
Agent Responsibility and Trust Act. The purpose of the bill is simple: 
to set some basic, uniform nationwide rules to prevent unscrupulous 
behavior by sports agents who court student athletes. The universities 
in Oregon with top athletic programs--the University of Oregon, Oregon 
State University, and Portland State University--have all provided 
letters of endorsement for this legislation. So has the NCAA.
  Too often, unscrupulous sports agents prey upon young student 
athletes who are inexperienced, naive, or simply don't know all of the 
collegiate athletic eligibility rules. The agent sees the student 
athlete as a potentially lucrative future client, and wants to get the 
biggest headstart possible on other agents. So the agent tries to 
contact and sign up the student athlete as early as possible, and does 
whatever takes to get the inside track.
  In some cases, the agent may attempt to lure the student athlete with 
grand promises. In some cases, the agent may offer flashy gifts. To 
make the offer more enticing, the agent may withhold crucial 
information about the impact on the student's eligibility to compete in 
college sports.
  A majority of States have enacted statutes to address unprincipled 
behavior by sports agents, but the standards vary from State to State 
and some states don't have any at all. The universities in my State of 
Oregon tell me that this creates a significant loophole. Specifically, 
Oregon has a State law, but it doesn't apply when, for example, a 
University of Oregon athlete goes home to another State for the summer 
and is contacted by an agent there. Every time that athlete crosses 
into another State a different set of rules apply. And if one State's 
laws on the subject are particularly weak, that is where shady sports 
agents will try to contact their targets.
  That is why there ought to be a single, nationwide standard. The bill 
I am introducing today would establish a uniform baseline, enforceable 
by the Federal Trade Commission, that would supplement but not replace 
existing state laws. Specifically, the bill would make it an unfair and 
deceptive trade practice for a sports agent to entice a student athlete 
with false or misleading information or promises or with gifts to the 
student athlete or the athlete's friends or family. It would require a 
sports agent to provide the student athlete with a clear, standardized 
warning, in writing, that signing an agency contract could jeopardize 
the athlete's eligibility to participate in college sports. It would 
make it unlawful to pre-date or post-date agency contracts, and require 
both the agent and student athlete to promptly inform the athlete's 
university if they do enter into a contract.
  Representative Bart Gordon of Tennessee has spearheaded this 
legislation in the House, where the Energy and Commerce Committee and 
the Judiciary Committee have both considered and approved the bill this 
year. I'm told that consideration on the House floor could occur this 
week. I applaud Congressman Gordon for his leadership on this issue, 
and I urge my Senate colleagues to join me in addressing this matter in 
the Senate.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1170

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Sports Agent Responsibility 
     and Trust Act''.

     SEC. 2. DEFINITIONS.

       As used in this Act, the following definitions apply:
       (1) Agency Contract.--The term ``agency contract'' means an 
     oral or written agreement in which a student athlete 
     authorizes a person to negotiate or solicit on behalf of the 
     student athlete a professional sports contract or an 
     endorsement contract.
       (2) Athlete agent.--The term ``athlete agent'' means an 
     individual who enters into an agency contract with a student 
     athlete, or directly or indirectly recruits or solicits a 
     student athlete to enter into an agency contract, and does 
     not include a spouse, parent, sibling, grandparent, or 
     guardian of such student athlete, any legal counsel for 
     purposes other than that of representative agency, or an 
     individual acting solely on behalf of a professional sports 
     team or professional sports organization.
       (3) Athletic director.--The term ``athletic director'' 
     means an individual responsible for administering the 
     athletic program of an educational institution or, in the 
     case that such program is administered separately, the 
     athletic program for male students or the athletic program 
     for female students, as appropriate.
       (4) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (5) Endorsement contract.--The term ``endorsement 
     contract'' means an agreement under which a student athlete 
     is employed or receives consideration for the use by the 
     other party of that individual's person, name, image, or 
     likeness in the promotion of any product, service, or event.
       (6) Intercollegiate sport.--The term ``intercollegiate 
     sport'' means a sport played at the collegiate level for 
     which eligibility requirements for participation by a student 
     athlete are established by a national association for the 
     promotion or regulation of college athletics.
       (7) Professional sports contract.--The term ``professional 
     sports contract'' means an agreement under which an 
     individual is employed, or agrees to render services, as a 
     player on a professional sports team, with a professional 
     sports organization, or as a professional athlete.
       (8) State.--The term ``State'' includes a State of the 
     United States, the District of Columbia, Puerto Rico, the 
     United States Virgin Islands, or any territory or insular 
     possession subject to the jurisdiction of the United States.
       (9) Student athlete.--The term ``student athlete'' means an 
     individual who engages in, is eligible to engage in, or may 
     be eligible in the future to engage in, any intercollegiate 
     sport. An individual who is permanently ineligible to 
     participate in a particular intercollegiate sport is not a 
     student athlete for purposes of that sport.

     SEC. 3. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND PRACTICES 
                   IN CONNECTION WITH THE CONTACT BETWEEN AN 
                   ATHLETE AGENT AND A STUDENT ATHLETE.

       (a) Conduct Prohibited.--It is unlawful for an athlete 
     agent to--
       (1) directly or indirectly recruit or solicit a student 
     athlete to enter into an agency contract, by--
       (A) giving any false or misleading information or making a 
     false promise or representation; or
       (B) providing anything of value to a student athlete or 
     anyone associated with the student athlete before the student 
     athlete enters into an agency contract including any 
     consideration in the form of a loan, or acting in the 
     capacity of a guarantor or co-guarantor for any debt;
       (2) enter into an agency contract with a student athlete 
     without providing the student athlete with the disclosure 
     document described in subsection (b); or
       (3) predate or postdate an agency contract.
       (b) Required Disclosure by Athlete Agents to Student 
     Athletes.--
       (1) In general.-- In conjunction with the entering into of 
     an agency contract, an athlete agent shall provide to the 
     student athlete, or, if the student athlete is under the age 
     of 18 to such student athlete's parent or legal guardian, a 
     disclosure document that meets the requirements of this 
     subsection. Such disclosure document is separate from and in 
     addition to any disclosure which may be required under State 
     law.
       (2) Signature of student athlete.--The disclosure document 
     must be signed by the student athlete, or, if the student 
     athlete is under the age of 18 by such student athlete's 
     parent or legal guardian, prior to entering into the agency 
     contract.
       (3) Required language.--The disclosure document must 
     contain, in close proximity to the signature of the student 
     athlete, or, if the student athlete is under the age of 18, 
     the signature of such student athlete's parent or legal 
     guardian, a conspicuous notice in boldface type stating: 
     ``Warning to Student Athlete: If you agree orally or in 
     writing to be represented by an agent now or in the future 
     you may lose your eligibility to compete as a student athlete 
     in your sport. Within 72 hours after entering into this 
     contract or before the next athletic event in which you are 
     eligible to participate, whichever occurs first, both you and 
     the agent by whom you are agreeing to be represented must 
     notify the athletic director of the educational institution 
     at which you are enrolled, or other individual responsible 
     for athletic programs at such educational institution, that 
     you have entered into an agency contract.''.

     SEC. 4. ENFORCEMENT.

       (a) Unfair or Deceptive Act or Practice.--A violation of 
     this Act shall be treated as a violation of a rule defining 
     an unfair or deceptive act or practice prescribed under 
     section 18(a)(1)(B) of the Federal Trade Commission Act (15 
     U.S.C. 57a(a)(1)(B)).
       (b) Actions by the Commission.--The Commission shall 
     enforce this Act in the same manner, by the same means, and 
     with the

[[Page 13445]]

     same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this Act.

     SEC. 5. ACTIONS BY STATES.

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

     SEC. 6. PROTECTION OF EDUCATIONAL INSTITUTION.

       (a) Notice Required.--Within 72 hours after entering into 
     an agency contract or before the next athletic event in which 
     the student athlete may participate, whichever occurs first, 
     the athlete agent and the student athlete shall each inform 
     the athletic director of the educational institution at which 
     the student athlete is enrolled, or other individual 
     responsible for athletic programs at such educational 
     institution, that the student athlete has entered into an 
     agency contract, and the athlete agent shall provide the 
     athletic director with notice in writing of such a contract.
       (b) Civil Remedy.--
       (1) In general.--An educational institution has a right of 
     action against an athlete agent for damages caused by a 
     violation of this Act.
       (2) Damages.--Damages of an educational institution may 
     include and are limited to actual losses and expenses 
     incurred because, as a result of the conduct of the athlete 
     agent, the educational institution was injured by a violation 
     of this Act or was penalized, disqualified, or suspended from 
     participation in athletics by a national association for the 
     promotion and regulation of athletics, by an athletic 
     conference, or by reasonable self-imposed disciplinary action 
     taken to mitigate actions likely to be imposed by such an 
     association or conference.
       (3) Costs and attorneys fees.--In an action taken under 
     this section, the court may award to the prevailing party 
     costs and reasonable attorneys fees.
       (4) Effect on other rights, remedies and defenses.--This 
     section does not restrict the rights, remedies, or defenses 
     of any person under law or equity.

     SEC. 7. LIMITATION.

       Nothing in the Act shall be construed to prohibit an 
     individual from seeking any remedies available under existing 
     State law or equity.

     SEC. 8. SENSE OF CONGRESS.

       It is the sense of Congress that States should enact the 
     Uniform Athlete Agents Act of 2000 drafted by the National 
     Conference of Commissioners on Uniform State Laws, to protect 
     student athletes and the integrity of amateur sports from 
     unscrupulous sports agents. In particular, it is the sense of 
     Congress that States should enact the provisions relating to 
     the registration of sports agents, the required form of 
     contract, the right of the student athlete to cancel an 
     agency contract, the disclosure requirements relating to 
     record maintenance, reporting, renewal, notice, warning, and 
     security, and the provisions for reciprocity among the 
     States.
                                 ______
                                 
      By Mr. FRIST (for himself, Mr. Bingaman, Mr. Dodd, Mr. DeWine, 
        Mrs. Clinton, Mr. Warner, Mrs. Murray, Mr. Lugar, Ms. Landrieu, 
        Mr. Sessions, and Mr. Alexander):
  S. 1172. A bill to establish grants to provide health services for 
improved nutrition, increased physical activity, obesity prevention, 
and for other purposes; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. FRIST. Mr. President, I rise today to discuss a particular public 
health problem--the growing rates of obesity. This epidemic has 
steadily increased to a level twice what it was thirty years ago. 
Obesity now affects over sixty percent of adults and thirteen percent 
of children and adolescents. Among young people, it is escalating at an 
alarming rate. This condition causes three hundred thousand deaths a 
year and is second only to smoking as the Nation's leading cause of 
preventable death. Overweight and obesity are associated with increased 
risk for heart disease, the leading cause of death, cancer, the second 
leading cause of death, diabetes, the seventh leading cause of death, 
and musculoskeletal disorders. Anyone with this condition has at least 
a 50 percent chance of a premature death.
  As obesity continues to mount, the morbidity, mortality and health 
care costs associated with these disorders will skyrocket. Just this 
last month, a Health Affairs article estimated that nearly one-tenth of 
U.S. health care costs are attributable to conditions resulting from 
obesity or being overweight. In 2002 dollars, the authors of this 
article estimate that obesity and overweight-related conditions cost 
$92.6 billion. Of which, half is financed by Medicare and Medicaid.
  Healthy People 2010 calls overweight and obesity one of the Nation's 
leading health problems and prioritizes efforts to increase the 
proportion of adults who are at a healthy weight, and reduce the levels 
of obesity and overweight among adults, children and adolescents. The 
Surgeon General's report ``A Call to Action'' lists the treatment and 
prevention of obesity as a top national priority.
  Now, if this condition was linked to an infectious or bioterrorist 
agent, the public outcry would be deafening, and the action to control 
it swift. But it is not. Obesity and being overweight is often seen as 
an individual problem and a personal choice, and thus does not receive 
much attention. Most people do not choose to be overweight. Overweight 
and obesity result from daily lifestyle choices that gradually 
accumulate. Weight gain occurs slowly, often unnoticed. Today, many 
Americans struggle to control their weight, collectively spending 
billions of dollars each year on weight loss products and programs.
  The good news is that, with healthy eating and regular physical 
activity, obesity is preventable and treatable. That is why I, along 
with Senator Bingaman, Senator Dodd, and others, am reintroducing the 
``Improved Nutrition and Physical Activity, IMPACT, Act.'' I am pleased 
that Representatives Mary Bono and Kay Granger, along with other co-
sponsors, introduced companion legislation in the House of 
Representatives earlier this year. This bill will help Americans make 
healthy decisions about nutrition and physical activity. It emphasizes 
youth education so that healthy habits can begin early. Finally, it 
funds demonstration projects to find innovative ways of improving 
eating and exercise habits.
  There is no single solution to the growing epidemic of obesity. That 
is

[[Page 13446]]

why the IMPACT Act takes a multifaceted approach. It implements 
evidence-based programs, where available, and includes rigorous 
evaluation of demonstration projects so we can learn what works best. 
This important legislation has a modest price tag, reflecting the 
appropriate role of the Federal Government. Most importantly, the 
IMPACT Act does not attempt to mandate what Americans eat or drink or 
to transfer to the Federal Government decisions that are best made at 
local levels.
  Let me be clear that I am not against people making choices. I am all 
for choice, informed choice. What has happened, though, is that we as a 
society and as individuals have made choices about eating and activity, 
gradually and incrementally, without understanding or considering the 
consequences. Finally, and most importantly, this bill does not intend 
to and should not be considered to stigmatize those who struggle to 
control their weight or to demonize any sector of the country by 
blaming them for this epidemic. The IMPACT Act represents a bipartisan 
agreement that the problem of obesity is important, and takes an 
approach that is supported by a broad spectrum of interested parties. 
With the Federal Government providing assistance, all sectors of 
society will need to work together to help produce a healthier nation.
  I believe we have crafted a good first response to the growing rates 
of obesity. A number of public health and industry experts support the 
passage of this important legislation. I ask unanimous consent that a 
list of the organizations supporting the legislation and the text of 
the bill be printed in the Record.
  I want to thank Senators Bingaman and Dodd for their work on this 
bill. I also want to thank Senator Gregg for his assistance in ensuring 
that this legislation can become law. Senator Gregg has worked 
tirelessly with my staff to ensure that we craft legislation that can 
be quickly passed by the Senate, and I appreciate his efforts. I look 
forward to having this bill become law this year.
  There being no objection, the list and the bill were ordered to be 
printed in the Record, as follows:

                    Groups Supporting the IMPACT Act

       The Advertising Council, Inc.;
       Consortium for Citizens with Disabilities Prevention Task 
     Force;
       Council on State and Territorial Epidemiologists;
       Endocrine Society;
       FamilyCook Productions: Bringing Families Together Through 
     Fresh Food;
       Grocery Manufacturers of America;
       National Alliance for Nutrition and Activity;
       National Recreation and Parks Association;
       Research against Inactivity-related Disorders (RID);
       Samuels & Associates: Public Health Research, Evaluation, 
     and Policy Consultants;
       Society for Nutrition Education;
       Structure House;
       University of North Carolina at Chapel Hill, School of 
     Public Health; and
       YMCA.
                                  ____


                                S. 1172

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Improved Nutrition and 
     Physical Activity Act'' or the ``IMPACT Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) An estimated 61 percent of adults and 13 percent of 
     children and adolescents in the Nation are overweight or 
     obese.
       (2) The prevalence of obesity and being overweight is 
     increasing among all age groups. There are twice the number 
     of overweight children and 3 times the number of overweight 
     adolescents as there were 29 years ago.
       (3) An estimated 300,000 deaths a year are associated with 
     being overweight or obese.
       (4) Obesity and being overweight are associated with an 
     increased risk for heart disease (the leading cause of 
     death), cancer (the second leading cause of death), diabetes 
     (the 6th leading cause of death), and musculoskeletal 
     disorders.
       (5) Individuals who are obese have a 50 to 100 percent 
     increased risk of premature death.
       (6) The Healthy People 2010 goals identify obesity and 
     being overweight as one of the Nation's leading health 
     problems and include objectives of increasing the proportion 
     of adults who are at a healthy weight, reducing the 
     proportion of adults who are obese, and reducing the 
     proportion of children and adolescents who are overweight or 
     obese.
       (7) Another goal of Healthy People 2010 is to eliminate 
     health disparities among different segments of the 
     population. Obesity is a health problem that 
     disproportionally impacts medically underserved populations.
       (8) The United States Surgeon General's report ``A Call To 
     Action'' lists the treatment and prevention of obesity as a 
     top national priority.
       (9) The estimated direct and indirect annual cost of 
     obesity in the United States is $117,000,000,000 (exceeding 
     the cost of tobacco-related illnesses) and appears to be 
     rising dramatically. This cost can potentially escalate 
     markedly as obesity rates continue to rise and the medical 
     complications of obesity are emerging at even younger ages. 
     Therefore, the total disease burden will most likely 
     increase, as well as the attendant health-related costs.
       (10) Weight control programs should promote a healthy 
     lifestyle including regular physical activity and healthy 
     eating, as consistently discussed and identified in a variety 
     of public and private consensus documents, including ``A Call 
     To Action'' and other documents prepared by the Department of 
     Health and Human Services and other agencies.
       (11) Eating preferences and habits are established in 
     childhood.
       (12) Poor eating habits are a risk factor for the 
     development of eating disorders and obesity.
       (13) Simply urging overweight individuals to be thin has 
     not reduced the prevalence of obesity and may result in other 
     problems including body dissatisfaction, low self-esteem, and 
     eating disorders.
       (14) Effective interventions for promoting healthy eating 
     behaviors should promote healthy lifestyle and not 
     inadvertently promote unhealthy weight management techniques.
       (15) Binge Eating is associated with obesity, heart 
     disease, gall bladder disease, and diabetes.
       (16) Anorexia Nervosa, an eating disorder from which 0.5 to 
     3.7 percent of American women will suffer in their lifetime, 
     is associated with serious health consequences including 
     heart failure, kidney failure, osteoporosis, and death. In 
     fact, Anorexia Nervosa has the highest mortality rate of all 
     psychiatric disorders, placing a young woman with Anorexia at 
     18 times the risk of death of other women her age.
       (17) Anorexia Nervosa and Bulimia Nervosa usually appears 
     in adolescence.
       (18) Bulimia Nervosa, an eating disorder from which an 
     estimated 1.1 to 4.2 percent of American women will suffer in 
     their lifetime, is associated with cardiac, gastrointestinal, 
     and dental problems, including irregular heartbeats, gastric 
     ruptures, peptic ulcers, and tooth decay.
       (19) On the 1999 Youth Risk Behavior Survey, 7.5 percent of 
     high school girls reported recent use of laxatives or 
     vomiting to control their weight.
       (20) Binge Eating Disorder is characterized by frequent 
     episodes of uncontrolled overeating, with an estimated 2 to 5 
     percent of Americans experiencing this disorder in a 6-month 
     period.
       (21) Eating disorders are commonly associated with 
     substantial psychological problems, including depression, 
     substance abuse, and suicide.
       (22) Eating disorders of all types are more common in women 
     than men.

                        TITLE I--TRAINING GRANTS

     SEC. 101. GRANTS TO PROVIDE TRAINING FOR HEALTH PROFESSION 
                   STUDENTS.

       Section 747(c)(3) of title VII of the Public Health Service 
     Act (42 U.S.C. 293k(c)(3)) is amended by striking ``and 
     victims of domestic violence'' and inserting ``victims of 
     domestic violence, individuals (including children) who are 
     overweight or obese (as such terms are defined in section 
     399W(j)) and at risk for related serious and chronic medical 
     conditions, and individuals who suffer from eating 
     disorders''.

     SEC. 102. GRANTS TO PROVIDE TRAINING FOR HEALTH 
                   PROFESSIONALS.

       Section 399Z of the Public Health Service Act (42 U.S.C. 
     280h-3) is amended--
       (1) in subsection (b), by striking ``2005'' and inserting 
     ``2007'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Grants.--
       ``(1) In general.--The Secretary may award grants to 
     eligible entities to train primary care physicians and other 
     licensed or certified health professionals on how to 
     identify, treat, and prevent obesity or eating disorders and 
     aid individuals who are overweight, obese, or who suffer from 
     eating disorders.
       ``(2) Application.--An entity that desires a grant under 
     this subsection shall submit an application at such time, in 
     such manner, and containing such information as the Secretary 
     may require, including a plan for the use of funds that may 
     be awarded and an evaluation of the training that will be 
     provided.
       ``(3) Use of funds.--An entity that receives a grant under 
     this subsection shall use

[[Page 13447]]

     the funds made available through such grant to--
       ``(A) use evidence-based findings or recommendations that 
     pertain to the prevention and treatment of obesity, being 
     overweight, and eating disorders to conduct educational 
     conferences, including Internet-based courses and 
     teleconferences, on--
       ``(i) how to treat or prevent obesity, being overweight, 
     and eating disorders;
       ``(ii) the link between obesity and being overweight and 
     related serious and chronic medical conditions;
       ``(iii) how to discuss varied strategies with patients from 
     at-risk and diverse populations to promote positive behavior 
     change and healthy lifestyles to avoid obesity, being 
     overweight, and eating disorders;
       ``(iv) how to identify overweight and obese patients and 
     those who are at risk for obesity and being overweight or 
     suffer from eating disorders and, therefore, at risk for 
     related serious and chronic medical conditions;
       ``(v) how to conduct a comprehensive assessment of 
     individual and familial health risk factors; and
       ``(B) evaluate the effectiveness of the training provided 
     by such entity in increasing knowledge and changing attitudes 
     and behaviors of trainees.''.

 TITLE II--COMMUNITY-BASED SOLUTIONS TO INCREASE PHYSICAL ACTIVITY AND 
                           IMPROVE NUTRITION

     SEC. 201. GRANTS TO INCREASE PHYSICAL ACTIVITY AND IMPROVE 
                   NUTRITION.

       Part Q of title III of the Public Health Service Act (42 
     U.S.C. 280h et seq.) is amended by striking section 399W and 
     inserting the following:

     ``SEC. 399W. GRANTS TO INCREASE PHYSICAL ACTIVITY AND IMPROVE 
                   NUTRITION.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary, acting through the 
     Director of the Centers for Disease Control and Prevention 
     and in coordination with the Administrator of the Health 
     Resources and Services Administration, the Director of the 
     Indian Health Service, the Secretary of Education, the 
     Secretary of Agriculture, the Secretary of the Interior, the 
     Director of the National Institutes of Health, the Director 
     of the Office of Women's Health, and the heads of other 
     appropriate agencies, shall award competitive grants to 
     eligible entities to plan and implement programs that promote 
     healthy eating behaviors and physical activity to prevent 
     eating disorders, obesity, being overweight, and related 
     serious and chronic medical conditions. Such grants may be 
     awarded to target at-risk populations including youth, 
     adolescent girls, racial and ethnic minorities, and the 
     underserved.
       ``(2) Term.--The Secretary shall award grants under this 
     subsection for a period not to exceed 4 years.
       ``(b) Award of Grants.--An eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require, including--
       ``(1) a plan describing a comprehensive program of 
     approaches to encourage healthy eating behaviors and healthy 
     levels of physical activity;
       ``(2) the manner in which the eligible entity will 
     coordinate with appropriate State and local authorities, 
     including--
       ``(A) State and local educational agencies;
       ``(B) departments of health;
       ``(C) chronic disease directors;
       ``(D) State directors of programs under section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786);
       ``(E) 5-a-day coordinators;
       ``(F) governors' councils for physical activity and good 
     nutrition; and
       ``(G) State and local parks and recreation departments; and
       ``(3) the manner in which the applicant will evaluate the 
     effectiveness of the program carried out under this section.
       ``(c) Coordination.--In awarding grants under this section, 
     the Secretary shall ensure that the proposed programs are 
     coordinated in substance and format with programs currently 
     funded through other Federal agencies and operating within 
     the community including the Physical Education Program (PEP) 
     of the Department of Education.
       ``(d) Eligible Entity.--In this section, the term `eligible 
     entity' means--
       ``(1) a city, county, tribe, territory, or State;
       ``(2) a State educational agency;
       ``(3) a tribal educational agency;
       ``(4) a local educational agency;
       ``(5) a federally qualified health center (as defined in 
     section 1861(aa)(4) of the Social Security Act (42 U.S.C. 
     1395x(aa)(4));
       ``(6) a rural health clinic;
       ``(7) a health department;
       ``(8) an Indian Health Service hospital or clinic;
       ``(9) an Indian tribal health facility;
       ``(10) an urban Indian facility;
       ``(11) any health care service provider;
       ``(12) an accredited university or college; or
       ``(13) any other entity determined appropriate by the 
     Secretary.
       ``(e) Use of Funds.--An eligible entity that receives a 
     grant under this section shall use the funds made available 
     through the grant to--
       ``(1) carry out community-based activities including--
       ``(A) planning and implementing environmental changes that 
     promote physical activity;
       ``(B) forming partnerships and activities with businesses 
     and other entities to increase physical activity levels and 
     promote healthy eating behaviors at the workplace and while 
     traveling to and from the workplace;
       ``(C) forming partnerships with entities, including 
     schools, faith-based entities, and other facilities providing 
     recreational services, to establish programs that use their 
     facilities for after school and weekend community activities;
       ``(D) establishing incentives for retail food stores, 
     farmer's markets, food coops, grocery stores, and other 
     retail food outlets that offer nutritious foods to encourage 
     such stores and outlets to locate in economically depressed 
     areas;
       ``(E) forming partnerships with senior centers and nursing 
     homes to establish programs for older people to foster 
     physical activity and healthy eating behaviors;
       ``(F) forming partnerships with day care facilities to 
     establish programs that promote healthy eating behaviors and 
     physical activity; and
       ``(G) providing community educational activities targeting 
     good nutrition;
       ``(2) carry out age-appropriate school-based activities 
     including--
       ``(A) developing and testing educational curricula and 
     intervention programs designed to promote healthy eating 
     behaviors and habits in youth, which may include--
       ``(i) after hours physical activity programs;
       ``(ii) increasing opportunities for students to make 
     informed choices regarding healthy eating behaviors; and
       ``(iii) science-based interventions with multiple 
     components to prevent eating disorders including nutritional 
     content, understanding and responding to hunger and satiety, 
     positive body image development, positive self-esteem 
     development, and learning life skills (such as stress 
     management, communication skills, problem-solving and 
     decisionmaking skills), as well as consideration of cultural 
     and developmental issues, and the role of family, school, and 
     community;
       ``(B) providing education and training to educational 
     professionals regarding a healthy lifestyle and a healthy 
     school environment;
       ``(C) planning and implementing a healthy lifestyle 
     curriculum or program with an emphasis on healthy eating 
     behaviors and physical activity; and
       ``(D) planning and implementing healthy lifestyle classes 
     or programs for parents or guardians, with an emphasis on 
     healthy eating behaviors and physical activity;
       ``(3) carry out activities through the local health care 
     delivery systems including--
       ``(A) promoting healthy eating behaviors and physical 
     activity services to treat or prevent eating disorders, being 
     overweight, and obesity;
       ``(B) providing patient education and counseling to 
     increase physical activity and promote healthy eating 
     behaviors; and
       ``(C) providing community education on good nutrition and 
     physical activity to develop a better understanding of the 
     relationship between diet, physical activity, and eating 
     disorders, obesity, or being overweight; or
       ``(4) other activities determined appropriate by the 
     Secretary.
       ``(f) Matching Funds.--In awarding grants under subsection 
     (a), the Secretary may give priority to eligible entities who 
     provide matching contributions. Such non-Federal 
     contributions may be cash or in kind, fairly evaluated, 
     including plant, equipment, or services.
       ``(g) Technical Assistance.--The Secretary may set aside an 
     amount not to exceed 10 percent of the total amount 
     appropriated for a fiscal year under subsection (k) to permit 
     the Director of the Centers for Disease Control and 
     Prevention to provide grantees with technical support in the 
     development, implementation, and evaluation of programs under 
     this section and to disseminate information about effective 
     strategies and interventions in preventing and treating 
     obesity and eating disorders through the promotion of healthy 
     eating behaviors and physical activity.
       ``(h) Limitation on Administrative Costs.--An eligible 
     entity awarded a grant under this section may not use more 
     than 10 percent of funds awarded under such grant for 
     administrative expenses.
       ``(i) Report.--Not later than 6 years after the date of 
     enactment of the Improved Nutrition and Physical Activity 
     Act, the Director of the Centers for Disease Control and 
     Prevention shall review the results of the grants awarded 
     under this section and other related research and identify 
     programs that have demonstrated effectiveness in healthy 
     eating behaviors and physical activity in youth.
       ``(j) Definitions.--In this section:
       ``(1) Anorexia nervosa.--The term `Anorexia Nervosa' means 
     an eating disorder characterized by self-starvation and 
     excessive weight loss.
       ``(2) Binge eating disorder.--The term `binge eating 
     disorder' means a disorder characterized by frequent episodes 
     of uncontrolled eating.

[[Page 13448]]

       ``(3) Bulimia nervosa.--The term `Bulimia Nervosa' means an 
     eating disorder characterized by excessive food consumption, 
     followed by inappropriate compensatory behaviors, such as 
     self-induced vomiting, misuse of laxatives, fasting, or 
     excessive exercise.
       ``(4) Eating disorders.--The term `eating disorders' means 
     disorders of eating, including Anorexia Nervosa, Bulimia 
     Nervosa, and binge eating disorder.
       ``(5) Healthy eating behaviors.--The term `healthy eating 
     behaviors' means--
       ``(A) eating in quantities adequate to meet, but not in 
     excess of, daily energy needs;
       ``(B) choosing foods to promote health and prevent disease;
       ``(C) eating comfortably in social environments that 
     promote healthy relationships with family, peers, and 
     community; and
       ``(D) eating in a manner to acknowledge internal signals of 
     hunger and satiety.
       ``(6) Obese.--The term `obese' means an adult with a Body 
     Mass Index (BMI) of 30 kg/m2 or greater.
       ``(7) Overweight.--The term `overweight' means an adult 
     with a Body Mass Index (BMI) of 25 to 29.9 kg/m2 and a child 
     or adolescent with a BMI at or above the 95th percentile on 
     the revised Centers for Disease Control and Prevention growth 
     charts or another appropriate childhood definition, as 
     defined by the Secretary.
       ``(8) Youth.--The term `youth' means individuals not more 
     than 18 years old.
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $60,000,000 for fiscal year 2004 and such sums as may be 
     necessary for each of fiscal years 2005 through 2008. Of the 
     funds appropriated pursuant to this subsection, the following 
     amounts shall be set aside for activities related to eating 
     disorders:
       ``(1) $5,000,000 for fiscal year 2004.
       ``(2) $5,500,000 for fiscal year 2005.
       ``(3) $6,000,000 for fiscal year 2006.
       ``(4) $6,500,000 for fiscal year 2007.
       ``(5) $1,000,000 for fiscal year 2008.

     SEC. 202. NATIONAL CENTER FOR HEALTH STATISTICS.

       Section 306 of the Public Health Service Act (42 U.S.C. 
     242k) is amended by striking subsection (n) and inserting the 
     following:
       ``(n)(1) The Secretary, acting through the Center, may 
     provide for the--
       ``(A) collection of data for determining the fitness levels 
     and energy expenditure of children and youth; and
       ``(B) analysis of data collected as part of the National 
     Health and Nutrition Examination Survey and other data 
     sources.
       ``(2) In carrying out paragraph (1), the Secretary, acting 
     through the Center, may make grants to States, public 
     entities, and nonprofit entities.
       ``(3) The Secretary, acting through the Center, may provide 
     technical assistance, standards, and methodologies to 
     grantees supported by this subsection in order to maximize 
     the data quality and comparability with other studies.''.

     SEC. 203. STUDY OF THE FOOD SUPPLEMENT AND NUTRITION PROGRAMS 
                   OF THE DEPARTMENT OF AGRICULTURE.

       (a) In General.--The Secretary of Agriculture shall request 
     that the Institute of Medicine conduct, or contract with 
     another entity to conduct, a study on the food and nutrition 
     assistance programs run by the Department of Agriculture.
       (b) Content.--Such study shall--
       (1) investigate whether the nutrition programs and 
     nutrition recommendations are based on the latest scientific 
     evidence;
       (2) investigate whether the food assistance programs 
     contribute to either preventing or enhancing obesity and 
     being overweight in children, adolescents, and adults;
       (3) investigate whether the food assistance programs can be 
     improved or altered to contribute to the prevention of 
     obesity and becoming overweight; and
       (4) identify obstacles that prevent or hinder the programs 
     from achieving their objectives.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to the appropriate committees of Congress a report 
     containing the results of the Institute of Medicine study 
     authorized under this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $750,000 for 
     fiscal years 2003 and 2004.

     SEC. 204. HEALTH DISPARITIES REPORT.

       Not later than 18 months after the date of enactment of 
     this Act, and annually thereafter, the Director of the Agency 
     for Healthcare Research and Quality shall review all research 
     that results from the activities outlined in this Act and 
     determine if particular information may be important to the 
     report on health disparities required by section 903(c)(3) of 
     the Public Health Service Act (42 U.S.C. 299a-1(c)(3)).

     SEC. 205. PREVENTIVE HEALTH SERVICES BLOCK GRANT.

       Section 1904(a)(1) of the Public Health Service Act (42 
     U.S.C. 300w-3(a)(1)) is amended by adding at the end the 
     following:
       ``(H) Activities and community education programs designed 
     to address and prevent overweight, obesity, and eating 
     disorders through effective programs to promote healthy 
     eating, and exercise habits and behaviors.''.

     SEC. 206. REPORT ON OBESITY RESEARCH.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives a report on 
     research conducted on causes and health implications of 
     obesity and being overweight.
       (b) Content.--The report described in subsection (a) shall 
     contain--
       (1) descriptions on the status of relevant, current, 
     ongoing research being conducted in the Department of Health 
     and Human Services including research at the National 
     Institutes of Health, the Centers for Disease Control and 
     Prevention, the Agency for Healthcare Research and Quality, 
     the Health Resources and Services Administration, and other 
     offices and agencies;
       (2) information about what these studies have shown 
     regarding the causes of, prevention of, and treatment of, 
     overweight and obesity; and
       (3) recommendations on further research that is needed, 
     including research among diverse populations, the 
     department's plan for conducting such research, and how 
     current knowledge can be disseminated.

     SEC. 207. REPORT ON A NATIONAL CAMPAIGN TO CHANGE CHILDREN'S 
                   HEALTH BEHAVIORS AND REDUCE OBESITY.

       Section 399Y of the Public Health Service Act (42 U.S.C. 
     280h-2) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b) Report.--The Secretary shall evaluate the 
     effectiveness of the campaign described in subsection (a) in 
     changing children's behaviors and reducing obesity and shall 
     report such results to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives.''.

  Mr. BINGAMAN. Mr. President, I rise today in support of the Improved 
Nutrition and Physical Activity or IMPACT Bill that Senator Frist has 
introduced with myself and Senators Dodd, DeWine, Clinton, Warner, 
Murray, Lugar, Landrieu, and Sessions. This is a bill that is critical 
in this era of chronic disease, as it addresses the mounting public 
health concerns of obesity, overweight, eating disorders, and their 
related diseases such as diabetes and cardiovascular disease.
  Approximately 61 percent of adults and 13 percent of children and 
adolescents in our Nation today are overweight or obese. These 
individuals have a significantly greater risk of diseases such as 
diabetes, heart disease, and stroke than their healthy weight peers. 
Another 5 to 10 percent of Americans are suffering from eating 
disorders that can also manifest themselves in a number of physical and 
psychological illnesses including heart disease, osteoporosis, kidney 
failure, depression, anxiety, and suicide. Unfortunately, these rates 
of overweight, obesity, and eating disorders are rising in both adult 
and child populations. Since obesity is a health problem that 
disproportionately impacts medically underserved populations, it is 
rapidly increasing the medical burden on these already overburdened 
populations.
  The economic implications of the obesity epidemic are equally 
disturbing. The estimated direct and indirect annual cost of obesity in 
the United States is now 117 billion dollars--exceeding the cost of 
tobacco-related illnesses. These costs will only continue to climb 
unless we make a concerted effort to stem this dangerous tide by 
initiating primary and secondary prevention programs.
  It is this conclusion that led the United States Surgeon General to 
issue a Call to Action listing the treatment and prevention of obesity 
as a top national priority. It is this conclusion that has led 
Secretary Thompson to implement the Steps to a Healthier US initiative. 
And it is this reality that makes passing the IMPACT bill a critical 
step towards improving our nation's future health and well-being.
  Obesity and eating disorders are complex diseases and as such require 
comprehensive multidisciplinary solutions. IMPACT aims to move us 
toward those solutions by addressing these diseases on a number of 
levels. First, it aims to prepare the health care community to deal 
with obesity from prevention to diagnosis to intervention by adding 
obesity, overweight, and eating disorders to the list of priority 
conditions

[[Page 13449]]

to be addressed in the health professions Title VII training grants.
  Second, IMPACT supports community-based solutions to increase 
physical activity and improve nutrition on a number of levels. It 
provides funding for demonstration projects in communities, schools, 
health care organizations, and other qualified entities that promote 
fitness or healthy nutrition. It authorizes the CDC to collect fitness 
and energy expenditure information from children. It directs AHRQ to 
review any new information relating to obesity trends among various 
sub-populations and include such information in its health disparities 
report. It allows states to use their Preventive Services Block Grant 
money for community education on nutrition and increased physical 
activity. It instructs the Secretary to report on what research has 
been done in the area of obesity, what has been learned from this 
research, and what future research should be conducted. And finally, it 
asks the secretary to report on the effectiveness of the Youth Media 
Campaign in changing children's behaviors and reducing obesity.
  IMPACT is supported by a wide variety of public and private 
organizations. The National Alliance for Nutrition and Activity or 
NANA, an organization including more than 250 national, state, and 
local organizations and the single largest coalition in the U.S. 
dedicated to promoting healthy eating and physical activity and 
reducing obesity states, ``NANA strongly supports your efforts to 
reduce obesity and improve eating and activity habits in the U.S. 
through the IMPACT bill.'' Other organizations that have stated their 
support include the American Heart Association, the American Cancer 
Society, the Council for States and Territorial Epidemiologists, the 
Society for Nutrition Education, and the American Dietetic Association.
  This legislation is an excellent first step in the fight for improved 
health, but it is not the only step we must take. We need to assist our 
schools in providing healthy nutrition options and expanding physical 
activity programs. We need to grow the workforce so that people have 
access to the healthcare professionals they need to prevent, diagnose, 
and treat obesity and eating disorders. We need to look at Medicare and 
Medicaid and insure that they provide the services necessary to help 
people prevent and treat obesity and its complications so that we 
reduce the burden of these diseases in these vulnerable populations. 
And we need to promote research in the areas of obesity prevention and 
treatment so that we can offer people better and more effective 
interventions in the future. These are not small goals but they are 
critical to our nation's health. I will continue to work on additional 
legislation that will take the next steps toward addressing these and 
other related concerns.
  For today, I would like to ask all of my colleagues to join me in 
taking this very important first step toward reducing obesity and 
eating disorders by supporting this important legislation. By passing 
this bill we can truly IMPACT the health of our nation.
  Mrs. CLINTON. Mr. President, I rise today to speak about a 
frightening epidemic in our Nation. A staggering 61 percent of adults 
and 13 percent of children and adolescents in our Nation are overweight 
or obese. The number of overweight children has doubled and the number 
of overweight adolescents has tripled since 1980, according to the 
Surgeon General. The estimated direct and indirect annual cost of 
obesity in the United States is $117,000,000,000, exceeding even 
smoking-related illnesses.
  That is why I am pleased to join Senators Frist, Bingaman, Dodd and 
others in introducing the Improved Nutrition and Physical Activity Act 
of 2003. This bill takes important steps to fund programs that ensure 
healthy eating behaviors and improved physical activity. Funding this 
program will save Americans vastly more in lower health care costs. The 
bill also takes critical steps to educate health professionals to help 
us fight this epidemic. With smoking, we learned that a simple 
recommendation from a health professional to stop could have a dramatic 
impact in reducing smoking. It is just as important to make sure our 
health care providers are equipped to help mold healthy behaviors in 
our fight against obesity.
  I also appreciate Senator Frist's willingness to incorporate 
important provisions from my Promoting Healthy Eating Behaviors in 
Youth Act of 2002. While it is so important to fight the obesity 
epidemic, we should not inadvertently send the wrong message by telling 
our children and adults simply to eat less and exercise. Unfortunately, 
many adolescents misinterpret this as a message that they should eat to 
achieve the body of a runway model. Anorexia and bulimia are 
increasingingly common among our Nation's youth. Recent data from the 
1999 Youth Risk Behavior Survey indicated that 7 percent of young women 
who were very thin (body mass index less than 15 percentile) reported 
taking laxatives or vomiting to lose weight or to avoid gaining weight. 
An even larger percentage 9 percent of these very thin young women 
reported using diet pills.
  While it is important to prevent diabetes and heart disease that may 
result from obesity, eating disorders also have their own very serious 
consequences. Anorexia nervosa, which will affect 3.7 percent of 
American women sometime in their lifetime, leads to heart failure, 
kidney failure, and osteoporosis. In fact, a young woman is 12 times 
more likely to die than other women her age without anorexia.
  Poor eating habits have also led to a ``calcium crisis'' among 
American youth. Very few adolescent girls (14 percent get the 
recommended daily amount of calcium, placing them at serious risk for 
osteoporosis and other bone diseases. Because nearly 90 percent of 
adult bone mass is established by the end of adolescent growth period, 
the Nation's youth's insufficient calcium intake is truly a calcium 
crisis. The consequence of this crisis will be seen years later, when 
we are likely to face an unprecedented incidence of osteoporosis in 
women.
  That is why I am especially grateful to see the use of a balanced 
``healthy eating behavior'' definition in the bill, and to see that a 
portion of the grants in the bill are set aside for eating disorders 
education programs. While we certainly need to focus on exercise and 
appropriate nutritional behavior, it is certainly just as important to 
teach our children and adults how to engage in regular physical 
exercise and lose weight in a healthy way.
  I am proud to join Senators Frist, Bingaman, Dodd, Warner, DeWine, 
Murray, Lugar, and Landrieu in this important legislative initiative, 
and eagerly anticipate its progress as we fight a significant public 
health epidemic.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Frist, Mr. Graham of South 
        Carolina, Mr. Alexander, and Mrs. Hutchison):
  S. 1173. A bill to amend the Internal Revenue Code of 1986 to 
accelerate the increase in the refundability of the child tax credit, 
and for other purposes; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I want to speak briefly about low-income 
families and the recently passed tax bill. There has been much heat and 
very little light about what we have done in this bill. Most of the 
heat has been focused on the conference decision not to retain the 
Senate position regarding acceleration from 10 percent to 15 percent as 
part of the refundable child credit--a change already scheduled to take 
place in 2005.
  Before I discuss this matter in detail, let me start by saying that I 
agree with my colleagues that we should seek to reconsider this 
provision. I am introducing legislation today that will do that, and 
will also, of equal, and perhaps greater importance, provide a uniform 
definition of a child and make the $1,000 child credit permanent. 
Finally, my bill will eliminate the marriage penalty that is contained 
in the child credit. This bill is an encompassing effort to help low-
income and middle-income families.
  The uniform definition of a child will help hundreds of thousands of 
families receive tax benefits for which they are

[[Page 13450]]

not currently eligible. As important, it will bring simplification and 
clarity for millions of families, ensuring that they are not subject to 
IRS audit and collection efforts.
  The bill also makes permanent the $1,000 child credit. Otherwise, in 
2005 working families with two eligible children will receive a $600 
tax increase as the tax credit drops to $700. In addition, the bill 
accelerates the refundable calculation from 10 percent to 15 percent.
  Finally, the bill addresses the marriage penalty contained in the 
child credit. Currently, the child credit phases out at $75,000 for a 
single mother and a $110,000 for a married couple. My bill would 
eliminate the marriage penalty by having the credit phase out at 
$150,000. In addition, it adjusts the phase-out level for inflation.
  I do not need to wait for comments from my colleagues or from the 
media to take this action. Many from the media who attended my press 
conference the day of final passage of the conference report will 
recall that I stated then that I would quickly seek to revisit the 
child tax credit issues and seek Senate action on permanency of the 
child credit.
  Let me turn now to the acceleration issue. The media and some members 
of Congress seem to have a willful blindness as they discuss this 
matter. What are they blind to? The Earned Income Credit, EIC, program 
provides great assistance to the very population that is of concern.
  Let me give you an example: A family of four making $11,000 will be 
eligible for $50 under the refundable child credit. By accelerating it, 
as proposed by my bill and by others, they will now be eligible for 
$75. What does this family get under EIC? In 2002 they will get a check 
for $4,140. That means that family is paying no income tax and payroll 
tax of $842 and is getting a payment from the federal government of 
almost $3,300 in excess of the payroll tax they pay.
  You would never know this from the media accounts and the press 
releases. And even if there is a mention of the EIC, I have seen no 
mention of the dollar amount--the $4,00-plus check for families with 
two children and $2,500 for families with one child. Why is that? 
Because the chicken littles are too busy running around. I would hope 
that the concept of ``context'' would not be something of which the 
media has to be reminded. You would think from reading speeches and 
media accounts that the whole tax relief provided in the tax code to a 
family making $11,000 is the refundable child credit. The child credit 
for these families at this income level is a thimble compared to the 
enormous benefits of EIC.
  Let me remind my colleagues of the purpose of the child credit: It 
was designed to address the perceived penalty for working families as 
the EIC began to phase out. In fact, the original proposal of the 
refundable child credit that I drafted with Senator Baucus in 2001 
would not have begun to take effect until the point where the EIC 
begins to phase-out--at approximately $13,500 for a head of household 
and $14,500 for married couples.
  The Finance Committee heard testimony, and it was the repeated view 
of academics, that Congress needed to address the phase-out of the EIC. 
There was no testimony to the Senate Finance Committee and I can find 
very little in respectable academic discussions that advocated an 
increase in the check for EIC recipients--that the EIC top amount of 
$4,000 plus for two children or $2,500 for one child was insufficiently 
generous.
  So that is what was the genesis of the Finance Committee's support 
for a child credit--addressing somewhat the EIC phase-out as families 
begin to make more money. However, the beginning point of the phase-in 
was shifted at the request of some Senators to $10,000. That does not 
negate that the underlying purpose was and is to deal with the EIC 
phase-out.
  This concern about the phase-out is reflected in the actions we took 
in conference. By raising the child credit to $1,000 we helped put more 
money in the pocket of a single mom with one child making $17,000 to 
$20,000.
  That single mom making $20,000 will now get a $1,000 check instead of 
a $600 check under previous law.
  What if we were to only do as some propose and do acceleration to 15 
percent but not increase the child credit in 2005 to $1,000?
  Yes, it will mean a bit more for those families already receiving a 
$4,000-plus check under EIC--and I recognize that every penny counts to 
these families. But this proposal will also mean a tax increase on that 
single mom making $18,000, that single dad making $19,000 and that 
married couple with one child making $20,000. Why? Because they benefit 
more from the increase in the child credit to $1,000. The acceleration 
will not benefit them; they will quickly meet the maximum child credit. 
It is the increase to $1,000 that is the real benefit for these 
families that do not receive the maximum benefits under EIC.
  That is why I urge my colleagues to support my legislation that helps 
millions of working families, and doesn't impose a tax on families that 
are working hard and getting themselves a little bit better paying job.
  And let me close with one other note. My colleagues should remember 
that it still takes 3 million taxpayers off the rolls completely. They 
will no longer have to pay tax under this legislation. Much of that is 
due to the increase in the child credit to $1,000.
  Finally, for those who want to talk about income tax relief for low-
income individuals, I would encourage them to remember this is many 
ways a bill that is in concert with the 2001 tax relief that created 
the 10 percent bracket and provided great income tax relief to singles. 
Again, a bigger picture that provides greater context of our work will 
show that we are providing broad-based relief to millions of taxpayers.
  I urge my colleagues to work with me in passing this full relief for 
families. I also think it is important that we pass legislation that 
can be passed into law by working with the House and the White House. 
We have already passed legislation that deals with just the 10 percent 
to 15 percent--the Finance Committee passed it and the Senate passed 
it. The Senate is on record on this matter already. Now is the time to 
bring real relief and permanent relief to all working families.
                                 ______
                                 
      By Ms. STABENOW (for herself, Mr. Smith, and Mr. Dayton):
  S. 1175. A bill to amend the Internal Revenue Code of 1986 to allow a 
refundable credit against income tax for the purchase of a principal 
residence by a first-time homebuyer; to the Committee on Finance.
  Ms. STABENOW. Mr. President, I believe ``home'' is one of the warmest 
words in the English language. At the end of a long day, I think the 
favorite phrase of every hardworking working man and woman in this 
country is: ``Well, I'll see you tomorrow. I'm going home now.''
  That is why I rise today to introduce the First Time Homebuyers' Tax 
Credit Act of 2003.
  The bill I am introducing will spread that warmth by opening the door 
to homeownership to millions of hardworking families, helping them 
cover the initial down payment and closing costs.
  This initiative is in keeping with our longstanding national policy 
of encouraging homeownership.
  Owning a home has always been a fundamental part of the American 
dream.
  We, in Congress, have long recognized the social and economic value 
in high rates of homeownership through laws that we have enacted, such 
as the mortgage interest tax deduction and the capital gains exclusion 
on the sale of a home.
  Over the life of a loan, the mortgage interest tax deduction can save 
homeowners thousands of dollars that they could use for other necessary 
family expenses such as education or health care.
  These benefits, however, are only available to individuals who own 
their own home.
  It is important also to note that owning a home is a principle and 
reliable source of savings as homeowners build equity over the years 
and their homes appreciate.

[[Page 13451]]

  For many people, it is home equity--not stocks--that help them 
through the retirement years.
  In addition, owning a home insulates people from spikes in housing 
costs.
  Indeed, while rents may go up, the costs of a monthly mortgage 
payment, in relative terms, will go down over the course of the 
mortgage.
  In my own State of Michigan, the homeownership rate of 74 percent is 
the third highest in the Nation and well above the national rate of 66 
percent.
  In Oregon, the home State of my bill's lead Republican sponsor, 
Senator Gordon Smith, the homeownership rate is 64.3 percent--about 2 
percent below the national average.
  However, as impressive as these numbers may initially sound, not 
everyone enjoys the benefits of homeownership.
  For example, homeownership in Michigan among whites is 78 percent; 
Native Americans 60 percent; Hispanics 55 percent; African Americans 51 
percent; and Asians 50 percent.
  A national study by the Fannie Mae Foundation found that in the top 
third of income levels, 44 percent of people under the age of 31 owned 
their own home.
  But, for the lowest third on the income scale, only 15.6 percent 
owned their own home--a 28 percent gap!
  Why do we face these disparities? Clearly, one of the biggest 
barriers to homeownership for working families is the cost of a down 
payment and the costs associated with closing a mortgage.
  According to the Mortgage Bankers Association, typical closing costs 
on an average sized loan of $175,000 can approach approximately $4,000.
  Even with relatively recent mortgage products that allow a 
downpayment of as little as 3 percent of the value of a home, total 
costs can quickly approach over $9,000.
  This is an impossible amount to save for those who are scraping by, 
working hard to make ends meet.
  To address this problem, I am introducing the First Time Homebuyers' 
Tax Credit Act of 2003.
  My bill authorizes a one-time tax credit of up to $3,000 for 
individuals and $6,000 for married couples.
  This credit is similar to the existing mortgage interest tax 
deduction in that it creates incentives for people to buy a home.
  To be eligible for the credit, taxpayers must be first-time 
homebuyers who were within the 27 percent tax bracket or lower in the 
year before they purchase their home. That is $67,700 for single 
filers, $96,700 for heads of household, $112,850 for joint returns. 
There is a dollar-for-dollar phase-out beyond the cap.
  Normally, tax credits like this are an after-the-fact benefit. They 
do little to get people actually into a home.
  What is particularly innovative and beneficial about the tax credit 
in this bill, however, is that, for the first time, the taxpayer can 
either claim the credit in the year after he or she buys a first home 
or the taxpayer can transfer the credit directly to a lender at 
closing.
  The transferred credit would go toward helping with the down payment 
or closing costs. This is cash at the table.
  As mandated in the bill, the eligible homebuyer would have the money 
for the lender from the Treasury within 30 days of application.
  I am happy to say that this legislation already has strong support. 
Among those who have already written to me in support of this concept 
are:
  The American Bankers Association; America's Community Bankers; the 
Housing Partnership Network; the National Housing Conference; the 
National Congress for Community Economic Development; the National 
Council of La Raza; the National Association of Affordable Housing 
Lenders; the Manufactured Housing Institute; Fannie Mae; Freddie Mac; 
National Community Reinvestment Coalition; Standard Federal Bank; 
Habitat for Humanity, and, the National American Indian Housing 
Council.
  I ask unanimous consent that copies of their letters be printed in 
the Record.
  There being no objection, the letters were ordered to be printed in 
the Record.

                                                       Habitat for


                                       Humanity International,

                                     Washington, DC, May 12, 2003.
     Hon. Debbie Stabenow,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Stabenow: On behalf of Habitat for Humanity 
     International, I want to commend you for your leadership on 
     issues of affordable housing and for putting forth 
     legislation--the First-Time Homebuyers Tax Credit Act--that 
     will enable low-income families with little or no savings to 
     overcome the two largest obstacles faced on the path to 
     homeownership; downpayments and closing costs.
       As you know, Habitat for Humanity has witnessed, through 
     the sale of over 135,000 homes worldwide to Habitat homeowner 
     families, that homeownership is one of the most important 
     personal and financial investments for individuals, families, 
     and communities. By expanding first-time homeownership 
     opportunities to thousands of low-income families via a one-
     time tax credit, the First-Time Homebuyers Tax Credit Act 
     will help close the homeownership gap and provide new wealth-
     building opportunities for thousands who would perhaps in no 
     other way experience the American Dream.
       Habitat for Humanity affiliates across the country address 
     the issue of daunting financial barriers posed by 
     downpayments and closing costs by charging only a minimal 
     amount or by enabling potential homeowner families to forgo 
     the requirement altogether, relying on a homeowner's ``sweat 
     equity'' in the construction of their home as sufficient 
     deposit. While this legislation may not directly affect the 
     work of our Habitat affiliates, HFHI is pleased to offer our 
     support to you as we work together to provide new 
     homeownership opportunities to strengthen families, 
     revitalize neighborhoods, and close the homeownership gap 
     among racial groups.
       Again, we applaud your commitment to affordable housing 
     issues and for sponsoring legislation that reflects your 
     conviction that all Americans should have a decent, safe, and 
     affordable place in which to live. If we can be of any 
     assistance, please do not hestitate to contact me or Amy 
     Randel, Director of Government Relations, at 202/628-9171.
           Gratefully yours,
                                                        Tom Jones,
     Vice President, HFHI/Managing Director.
                                  ____



                                        Standard Federal Bank,

                                         Troy, MI, March 27, 2003.
     Hon. Debbie A. Stabenow,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Stabenow: Standard Federal Bank National 
     Association (``SFB'') appreciates the opportunity to comment 
     on the proposed First-Time Homebuyers' Tax Credit Act of 
     2003. This letter is written on behalf of SFB and all of its 
     LaSalle Bank Corporation (``LBC'') affiliates.
       LBC is a subsidiary of ABN AMRO Bank N.V. (``Bank'') which 
     is headquartered in Amsterdam, the Netherlands. The Bank has 
     over $519 billion in assets, approximately 111,000 employees, 
     and a network of approximately 3,500 offices in over 70 
     countries and territories. The Bank maintains several 
     branches, agencies and offices in the United States. In 
     addition, ABN AMRO Incorporated, a full-service investment 
     banking, advisory, and brokerage firm, headquartered in New 
     York, New York, is also a subsidiary of the Bank.
       LBC is the financial holding company for the U.S. domestic 
     banking operations of the Bank and is headquartered in 
     Chicago. LBC is among the largest foreign financial holding 
     companies in North America with $90 billion in assets. The 
     U.S. operations of the Bank include LaSalle Bank National 
     Association, located in Chicago, Illinois, and Standard 
     Federal Bank National Association, located in Troy, Michigan. 
     These banks maintain over 400 offices in Illinois, Michigan, 
     and Indiana.
       The advantages of home ownership are both obvious and 
     clearly instrumental in providing a secure lifestyle to our 
     citizens. Owning one's own home is the primary source of 
     wealth building for most Americans. While rents and other 
     living expenses increase with inflation, the monthly mortgage 
     payment can remain constant, and in relative terms will 
     become an even smaller portion of the family's financial 
     obligations over time.
       An additional benefit to home ownership is the mortgage 
     interest tax deduction. Home owners can use the money they 
     save on taxes to meet other family expense, such as education 
     and health care, benefits which are not available to renters.
       We want to express our strong support for the concept of 
     expanding homeownership opportunities contained in the 
     proposed First-Time Homebuyers' Tax Credit Act of 2003, which 
     you have been instrumental in bringing up for Congressional 
     approval. This legislation has the potential to provide a 
     significant opportunity for home ownership to many families 
     and individuals who are not able to meet the financial burden 
     of down payment and closing costs. The First Time Homebuyers' 
     Tax Credit, perhaps used in conjunction with other available 
     federal, state, and local homebuyers' incentive programs, 
     will bring the dream of owning one's

[[Page 13452]]

     own home well within the grasp of many additional people.
       We understand that some details of the program, 
     particularly as it relates to the transfer of the tax credit 
     to a lender, remain to be worked out. However, we are 
     supportive of the concept of the tax credit and of income 
     limits for participation.
       We appreciate the opportunity to comment on this important 
     legislation and congratulate you for providing leadership to 
     this effort. We hope that our comments and our support will 
     assist in bringing the tax credit program to fruition for the 
     benefit of first time homebuyers.
           Sincerely,
                                                   Mary M. Fowlie,
     Group Senior Vice President.
                                  ____

                                                National Community


                                       Reinvestment Coalition,

                                   Washington, DC, March 18, 2003.
     Hon. Debbie A. Stabenow,
     Senate Hart Building,
     U.S. Senate, Washington DC.
       Dear Senator Stabenow: On behalf of the National Community 
     Reinvestment Coalition (NCRC) and our over 600 member 
     organizations, we would like to express our most sincere 
     gratitude for taking time out of your busy schedule to 
     participate in our Congressional Luncheon held on Thursday, 
     March 13, 2003 at the Senate Hart Building.
       Our National Community Reinvestment Coalition (NCRC) 
     membership and staff truly enjoyed your encouraging and well-
     stated remarks. In addition, we are truly grateful to you 
     regarding your leadership in authoring ``The First Time 
     Homebuyers Tax Credit Act of 2003'', and we applaud you as a 
     champion for this cause. We would like for you to know that 
     we stand willing and anxious to assist you in the 
     introduction of this bill in the 108th Congress.
       Again, thank you for your pioneering spirit and continued 
     support in assisting those who have encountered economic 
     injustices. If NCRC can further assist you in eradicating 
     these causes, please do not hesitate to contact me directly 
     or our Director of Legislative and Regulatory Affairs, 
     Crystal Ford, at (202) 628-8866.
           Sincerely,
                                                      John Taylor,
     President and CEO.
                                  ____

                                             National Congress for


                               Community Economic Development,

                                   Washington, DC, April 25, 2003.
     Hon. Debbie Stabenow,
     U.S. Senator, Hart Senate Office Building, Washington, DC.
       Dear Senator Stabenow: The National Congress for Community 
     Economic Development (NCCED), on behalf of its more than 700 
     member community development corporations (CDCs) nationwide, 
     supports the proposed Homeownership Tax Credit bill to be 
     introduced by Senator Gordon Smith and you.
       The proposed legislation is innovative because it provides 
     homebuyers with the ability to transfer their tax credit to 
     the lender at closing in order to offset downpayment and 
     closing costs. Downpayment and closing costs have 
     consistently been one of the greatest barriers to 
     homeownership for low and moderate-income families.
       NCCED is the national trade association representing more 
     than 3,600 CDCs nationwide. We were founded in 1970 and since 
     have advocated for the community economic development 
     industry, whose work creates wealth, builds healthy and 
     sustainable communities, and achieves lasting economic 
     viability. NCCED fulfills its mission of service to its 
     members working in disinvested urban and rural communities 
     through education, resource development, advocacy, 
     networking, training, technology assistance, policy 
     initiatives, and strategic partnerships.
       NCCED's annual conference will be held this year in 
     Detroit, Michigan on October 9 and 10, 2003. We would welcome 
     the opportunity for you to share your thoughts with the 
     expected 500 conference attendees who will be there to learn 
     from the successes of Detroit's community development 
     corporations.
       Please contact me at (202) 289-9020 if you would like more 
     information. We look forward to working with you on policy 
     issues related to community revitalization.
           Sincerely,
                                                    Roy O. Priest,
     President and CEO.
                                  ____

                                           The Housing Partnership


                                                      Network,

                                         Boston, MA, May 12, 2003.
     Senator Deborah Stabenow,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Stabenow: On behalf of the Housing Partnership 
     Network, I would like to extend our support for your proposed 
     Homeownership Tax Credit Act of 2002. This legislation would 
     authorize a one-time tax credit of up to $3,000 for 
     individuals and $6,000 for married couples to help pay 
     downpayment and closing costs for eligible first-time 
     homebuyers.
       The lack of funds for downpayment and closing costs is a 
     significant barrier for many lower income families who wish 
     to purchase a home in communities throughout the country. The 
     proposed homeownership credit is a particularly innovative 
     solution to help families overcome this obstacle because of 
     the transferability feature. By allowing buyers to transfer 
     the credit to their mortgage lender at closing, the credit 
     can provide an immediate infusion of cash to help the family 
     finance the home purchase.
       Founded in 1990, the Housing Partnership Network is a 
     national membership intermediary for regional nonprofit 
     housing partnerships. The Network currently has 77 members 
     operating in 37 states. (The full membership list is 
     attached.) The Network and our members sponsor a range of 
     programs to provide counseling, mortgage finance, and 
     downpayment assistance to promote affordable homeownership 
     opportunities for low and moderate income families. The 
     Network's members have provided homeownership counseling to 
     over 225,000 families and have developed or rehabilitated 
     200,000 homes.
       The Network is a national funding intermediary for the HUD 
     Housing Counseling Program, and has provided $8 million to 
     support the counseling programs of 35 organizations over the 
     last eight years. Focused primarily on homebuyer education, 
     the program underwrites a range of services, including post-
     purchase, foreclosure prevention, and reverse equity mortgage 
     counseling. There are also homeless assistance and renter 
     counseling components.
       Our member that operates in the Washington, DC area, the 
     Community Development and Preservation Corporation, is 
     familiar with the federally authorized homeownership tax 
     credit in the District of Columbia. This program has been 
     quite successful and your bill would extend this benefit to 
     many other communities. The innovative transferability 
     feature which you have included in the legislation will make 
     this resource even more useful to first time homebuyers.
       The proposed credit is a creative approach to use the tax 
     system to facilitate homeownership for lower income families. 
     As this bill makes its way through the legislative process, 
     we would recommend that the income eligibility for the credit 
     be more narrowly drawn to ensure the public resource is more 
     efficiently targeted to lower income beneficaries.
       We appreciate the leadership you have provide in helping 
     address the nation's affordable housing crisis, and look 
     forward to working with you and your staff on this and other 
     issues.
           Sincerely,
                                                   Thomas Bledsoe,
     President.
                                  ____



                                  National Council of La Raza,

                                     Washington, DC, May 21, 2003.
     Hon. Deborah Stabenow,
     U.S. Senate,
     Washington, DC.
       Dear Senator Stabenow: On behalf of the National Council of 
     La Raza (NCLR), I write in support of the First-Time 
     Homebuyers' Tax Credit Act of 2003. NCLR is the nation's 
     largest Hispanic constituency-based organization, 
     representing more than 37 million Latinos nationwide. The 
     opportunity to become a homeowner is essential to NCLR's 
     mission to promote economic mobility and financial stability 
     within the Hispanic community.
       As you may know, Latino representation within the 
     homebuying market is increasing, accounting for 16.3% of all 
     new homebuyers from 1995 to 2000. That said, we remain 
     concerned that the rate of Hispanic homeownership, 48% 
     continues to lag behind the national average of 68%.
       Homeownership is often the largest and single most 
     important asset for a family, building wealth and improving 
     community stability. Further initiatives that facilitate 
     homeownership opportunities are essential for improving 
     Hispanic and low-income neighborhoods. Too many working 
     Latino families are unable to save enough money for closing 
     costs and downpayments, and are barred from attaining the 
     American dream of homeownership. Legislation such as yours 
     will break down barriers to homeownership, of which 
     affordability is a major component.
       NCLR looks forward to working with you on this and other 
     innovative affordable housing efforts. Please contact Janis 
     Bowdler, Housing Policy Analyst, (202) 776-1748, to discuss 
     further ways in which we can work together on these important 
     issues.
           Sincerely,
                                                   Raul Yzaguirre,
     President/CEO.
                                  ____

                                           National Association of


                                   Affordable Housing Lenders,

                                                   March 12, 2003.
     Hon. Debbie A. Stabenow,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Stabenow: The National Association of 
     Affordable Housing Lenders (NAAHL), which represent America's 
     leaders in community lending and investment, strongly 
     supports the proposed First-Time Homebuyers' Tax Credit Act 
     of 2003, to help working families buy their first home 
     through a tax credit to help cover the downpayment and 
     closing costs.

[[Page 13453]]

       NAAHL is the only association devoted to increasing private 
     capital investment in low- and moderate-income communities. 
     NAAHL represents 200 organizations that are leaders in 
     lending and investing, including more than 70 insured 
     depository institutions, 45 non-profit providers and 800 
     individuals. Members include the who's who of private sector 
     lenders and investors in affordable housing and community 
     development: banks, thrifts, insurance companies, community 
     development corporations, mortgage companies, loan consortia, 
     financial intermediaries, pension funds, foundations, local 
     and national nonprofits, and public agencies.
       As you well know, the number of working families with 
     critical housing needs has continued to grow in recent years, 
     and working families have identified the lack of affordable 
     housing as one of their biggest problems. The First-Time 
     Homebuyers' Tax Credit Act would make it significantly easier 
     for many households to realize the American dream of 
     homeownership by providing them with a valuable resource for 
     overcoming one of the biggest barriers to homeownership--the 
     cost of a downpayment and closing costs.
       The proposed legislation evolves from longstanding public 
     policy to create incentives to homeownership because of the 
     inherent benefits of homeownership for both individuals and 
     society. Your bill effectively complements the existing 
     mortgage interest tax deduction--which saves families 
     thousands of dollars for other necessary expenditures after a 
     home has been acquired--by providing a tax credit that 
     facilitates the first-time purchase of a home for working 
     families. The legislation also addresses another key concern, 
     narrowing the homeownership gap between the lowest and 
     highest income groups, and among different races.
       NAAHL and our member companies look forward to working 
     closely with you to enact this legislation. We share your 
     goal of expanding homeownership opportunities, and sincerely 
     appreciate your commitment to helping make housing more 
     affordable.
           Sincerely,
                                                     Judy Kennedy,
     President.
                                  ____



                               Manufactured Housing Institute,

                                                   March 18, 2003.
     Hon. Debbie A. Stabenow,
     Senate Hart Office Building,
     Washington, DC.
       Dear Senator Stabenow: The Manufactured Housing Institute 
     (MHI) supports the ``First-Time Homebuyers' Tax Credit Act of 
     2003,'' which we understand you will be introducing in the 
     near future.
       This legislation would permit a one-time tax-credit to 
     first-time homebuyers which can be used for down payment and 
     closing costs in connection with the purchase of a principal 
     residence. This will help credit-worthy homebuyers overcome 
     the biggest impediment to purchasing a first home today--the 
     accumulation of sufficient funds to finance the down payment 
     and closing costs required at loan settlement.
       If structured properly, this program will help credit-
     worthy low- and moderate-income homebuyers to purchase and 
     remain in manufactured homes for many years to come.
           Sincerely,
                                                  Chris Stinebert,
     President, Manufactured Housing Institute.
                                  ____



                                                   Fannie Mae,

                                                     May 13, 2003.
     Hon. Debbie Stabenow,
     Senate Hart Office Building,
     Washington, DC.
       Dear Senator Stabenow: I understand that you will be 
     introducing a bill shortly that would provide for a one-time 
     tax credit for first time homebuyers in America's lowest tax 
     brackets.
       Your legislation, The Homeownership Tax Credit Act of 2003, 
     providing a tax credit of up to $3,000 for moderate-income 
     individuals, is the kind of assistance low and moderate 
     income families can harness to better afford the American 
     Dream of homeownership.
       As you know, the availability of funds for a downpayment is 
     a key barrier to homeownership. Our National Housing Survey 
     found that 32 percent of Americans say they would have 
     difficulty making a downpayment for the purchase of a home. 
     We at Fannie Mae support the use of tax credits to promote 
     homeownership and appreciate your work in this regard.
       We look forward to continuing our work with you to increase 
     the opportunity for more Americans to own homes of their own.
           Sincerely,
     William R. Daley.
                                  ____



                                  American Bankers Association

                                     Washington, DC, May 12, 2003.
     Hon. Debbie A. Stabenow,
     U.S. Senate, Hart Senate Office Building,
     Washington, DC.
       Dear Senator Stabenow: I am writing to commend your efforts 
     in introducing the ``FIRST-TIME HOMEBUYERS' TAX CREDIT ACT OF 
     2003''. Your legislation providing a tax credit to assist 
     first-time homebuyers with closing costs or down payment 
     assistance is very important
       Becasue of innovative products and services offered by the 
     banking industry, the United States has achieved the highest 
     homeownership rate in our nation's history. Nevertheless, as 
     you have recognized, millions still face barriers to 
     homeownership because of difficulty in accumulating an 
     adequate down-payment or because of costs associated with the 
     loan transaction. By providing assistance in the form of a 
     Federal tax rebate, paid before a borrower closes on a loan, 
     your legislation can make homeownership a reality for many 
     more Americans.
       Thank you for your leadership on this issue.
           Sincerely,

                                              Floyd E. Stoner,

                                 Executive Director, Congressional
     Relations and Public Policy.
                                  ____



                                                  Freddie Mac,

                                      Washington, DC, May 5, 2003.
     Hon. Debbie Stabenow,
     U.S. Senate, Senate Hart Office Building,
     Washington, DC.
       Dear Senator Stabenow: Freddie Mac is pleased to support 
     your legislation, The Homeownership Tax Credit Act of 2003. 
     We appreciate your extraordinary leadership in broadening 
     homeownership opportunities for America's working families 
     and look forward to continuing to work with you to achieve 
     this common goal.
       The Homeownership Tax Credit Act addresses one of the 
     primary barriers that many working families and other 
     Americans face in trying to buy a home, the cost of a down 
     payment and the closing costs involved in the purchase of a 
     home. Your legislation takes an innovative approach to 
     knocking down this barrier to homeownership by providing a 
     tax credit that the taxpayer can either claim in the year 
     after he or she buys a first home or the taxpayer can 
     transfer the credit directly to a lender at closing.
       At Freddie Mac, we work to help America's families realize 
     the dream of homeownership, by making low-cost mortgage 
     financing available to families every day. Freddie Mac has 
     made mortgage financing available for more than 27 million 
     homes. We are strongly committed to improving the quality of 
     life for homeowners and renters by making decent, accessible 
     housing a reality for America's families.
       As a member of the Senate Committee on Banking, Housing and 
     Urban Affairs, you have consistently demonstrated your 
     outstanding support for increasing homeownership in America, 
     and we look forward to working with you to help America's 
     families realize the American Dream of homeownership.
           Sincerely,
                                                    Dwight Fettig,
     Director, Congressional Relations.
                                  ____

         National American Indian Housing Council, Office of 
           Governmental Affairs,
                                      Washington, DC, May 8, 2003.
     Hon. Debbie Stabenow,
     U.S. Senate,
     Washington, DC.
       Dear Senator Stabenow: I write today to let you know that 
     you have the support of the National American Indian Housing 
     Council for your Homeownership Tax Credit bill. We will be 
     watching for when the bill is introduced so we can be sure to 
     inform our members.
       The National American Indian Housing Council is a national 
     membership organization representing over 400 of the 564 
     federally-recognized tribes and their tribally designated 
     housing entities on low-income housing, mortgage lending, 
     finance and economic development issues. We currently have 
     ten member tribes from your home state of Michigan.
       Although much of our effort goes to helping tribal housing 
     agencies build and finance homes for tribal members where the 
     real estate market is nearly non-existent, we are always 
     looking to help those tribal members that are ready and able 
     for homeownership, but are driven away by high down-payments 
     and closing costs associated with buying a home. Your idea to 
     offer a transferable tax credit to first-time homebuyers 
     would be very helpful. We believe in the benefits of 
     homeownership and support your effort for making it less 
     cumbersome for lower income Americans.
       Please do not hesitate to contact me for further 
     information or for any assistance you might need in the 
     passage of this legislation.
           Sincerely,
                                                 Russell Sossamon,
     Chairman.
                                  ____

                                                     June 3, 2003.
     Hon. Debbie Stabenow,
     U.S. Senate, Hart Senate Office Building,
     Washington, DC.
       Dear Senator Stabenow: I want to take this opportunity to 
     express America's Community Bankers' support for your 
     initiative to provide Americans the opportunity to own their 
     own home. The First Time Homebuyers' Tax Credit Act of 2003 
     is greatly needed to address the current affordable housing 
     crisis in this country.

[[Page 13454]]

       Homeownership is an important goal for ACB. Our members 
     originate more than 25 percent of all U.S. mortgages. This 
     legislation will assist first-time homebuyers and lenders by 
     converting federal income tax credits into cash for down 
     payments and closing fees. We support giving qualified first-
     time buyers the option of either handing over their credit to 
     their lenders or using it later to reduce their own personal 
     income taxes.
       Over the years, ACB members have helped people with owning 
     a home. Your initiative will create additional opportunities 
     for our members to continue assisting first-time homebuyers 
     in securing a mortgage.
       ACB urges your colleagues in the House of Representatives 
     to support this legislation and increase the number of new 
     American homeowners. We applaud your efforts in offering a 
     solution to a problem many Americans face.
       Thank you for your leadership on this issue.
           Sincerely,

                                              Robert R. Davis,

                             Executive Vice President and Managing
                                   Director, Government Relations.

  Earlier today, at a press conference, Senator Smith and I were also 
joined by the Mortgage Bankers Association of America and we have 
received positive comments from the National Association of 
Homebuilders about my legislation.
  Clearly, the breadth and diversity of support is strong for this 
legislation.
  This is a bold and aggressive effort to reach out to a large number 
of working families to help them get into this first home.
  The Joint Committee on Taxation has estimated that up to 16.8 million 
working people would get into their first home over the next seven 
years because of this new tax credit.
  People like Christine Nelson, with whom I met this morning. Christine 
is a working mom. She works as an administrative assistant for a 
national association. She is carefully saving up to buy her first home.
  In addition to supporting her daughter, however, Christine has 
student loans that she is paying for.
  These multiple obligations make it difficult for her to come up with 
that $9,000 I mentioned earlier.
  The $3,000 tax credit she is eligible for would make a tremendous 
difference in her life. It would get her and her daughter into that 
first home much faster.
  We are working to send a message to Christine and other people all 
over the country that if you are working hard to save up enough to get 
into that first home, the Federal Government will make a strategic 
investment in your family--it will offer a hand up.
  This is not unlike what we already do through the mortgage interest 
tax deduction for millions of people who are fortunate enough already 
to own their own home.
  We certainly won't do all the hard work for you. You must be frugal 
and save and do most of the work yourself, but we, in Congress, 
understand that it is good for America to enhance homeownership.
  We also understand that this sort of investment in working families 
stimulates the economy.
  No one can deny that when the First Time Homebuyers' Tax Credit is 
enacted and used by millions of people, every single time the credit is 
used, it will be stimulative.
  Why?
  Because it means someone bought a house. And that generates economic 
activity for multiple small business people. Realtors. Lenders. House 
appraisers. Inspectors. Title insurers. And so on. And there is a 
ripple of economic activity by the new homeowners as they fix up their 
new homes and get settled in.
  Housing has been such a bright light in the sluggish economy we've 
faced for the last few years. My bill is designed to ensure that the 
housing sector remains a strong component of our economy.
  Finally, let me close by emphasizing how happy and proud I am that 
this tax legislation is bipartisan. In a closely divided Senate, and a 
closely divided Congress, it is so important to work across the aisle 
and Senator Smith, who is a real champion for good housing policy, is 
someone I want to work closely with on this bill and other important 
housing legislation. He understands how housing tax benefits help build 
strong communities and provide economic security for millions of 
families.
  I am committed to seeing this legislation passed. And, I welcome the 
chance to work with all of my colleagues to see the dream of 
homeownership expanded to all people.
  Home. Sentimentally, it is one of the warmest words in the English 
language. Economically, it is the key word in bringing millions of 
families in from the cold and letting them begin building wealth for 
themselves and their family.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1175

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``First-Time Homebuyers' Tax 
     Credit Act of 2003''.

     SEC. 2. REFUNDABLE CREDIT FOR FIRST-TIME HOMEBUYERS.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 36 as 
     section 37 and by inserting after section 35 the following 
     new section:

     ``SEC. 36. PURCHASE OF PRINCIPAL RESIDENCE BY FIRST-TIME 
                   HOMEBUYER.

       ``(a) Allowance of Credit.--In the case of an individual 
     who is a first-time homebuyer of a principal residence in the 
     United States during any taxable year, there shall be allowed 
     as a credit against the tax imposed by this subtitle for the 
     taxable year an amount equal to 10 percent of the purchase 
     price of the residence.
       ``(b) Limitations.--
       ``(1) Maximum dollar amount.--
       ``(A) In general.--The credit allowed under subsection (a) 
     shall not exceed the excess (if any) of--
       ``(i) $3,000 ($6,000 in the case of a joint return), over
       ``(ii) the credit transfer amount determined under 
     subsection (c) with respect to the purchase to which 
     subsection (a) applies.
       ``(B) Inflation adjustment.--In the case of any taxable 
     year beginning after December 31, 2003--
       ``(i) the $3,000 amount under subparagraph (A) shall be 
     increased by an amount equal to $3,000, multiplied by the 
     cost-of-living adjustment determined under section 1(f)(3) 
     for the calendar year in which the taxable year begins by 
     substituting `2002' for `1992' in subparagraph (B) thereof, 
     and
       ``(ii) the $6,000 amount under subparagraph (A) shall be 
     increased to twice the $3,000 amount, as adjusted under 
     clause (i) for the taxable year.

     If the $3,000 amount as adjusted under clause (i) is not a 
     multiple of $10, such amount shall be rounded to the nearest 
     multiple of $10.
       ``(2) Taxable income limitation.--
       ``(A) In general.--If the taxable income of the taxpayer 
     for any taxable year exceeds the maximum taxable income in 
     the table under subsection (a), (b), (c), or (d) of section 
     1, whichever is applicable, to which the 25 percent rate 
     applies, the dollar amounts in effect under paragraph 
     (1)(A)(i) for such taxpayer for the following taxable year 
     shall be reduced (but not below zero) by the amount of the 
     excess.
       ``(B) Change in return status.--In the case of married 
     individuals filing a joint return for any taxable year who 
     did not file such a joint return for the preceding taxable 
     year, subparagraph (A) shall be applied by reference to the 
     highest taxable income of either such individual for the 
     preceding taxable year.
       ``(c) Transfer of Credit.--
       ``(1) In general.--A taxpayer may transfer all or a portion 
     of the credit allowable under subsection (a) to 1 or more 
     persons as payment of any liability of the taxpayer arising 
     out of--
       ``(A) the downpayment of any portion of the purchase price 
     of the principal residence, and
       ``(B) closing costs in connection with the purchase 
     (including any points or other fees incurred in financing the 
     purchase).
       ``(2) Credit transfer mechanism.--
       ``(A) In general.--Not less than 180 days after the date of 
     the enactment of this Act, the Secretary shall establish and 
     implement a credit transfer mechanism for purposes of 
     paragraph (1). Such mechanism shall require the Secretary 
     to--
       ``(i) certify that the taxpayer is eligible to receive the 
     credit provided by this section with respect to the purchase 
     of a principal residence and that the transferee is eligible 
     to receive the credit transfer,
       ``(ii) certify that the taxpayer has not received the 
     credit provided by this section with respect to the purchase 
     of any other principal residence,
       ``(iii) certify the credit transfer amount which will be 
     paid to the transferee, and
       ``(iv) require any transferee that directly receives the 
     credit transfer amount from the

[[Page 13455]]

     Secretary to notify the taxpayer within 14 days of the 
     receipt of such amount.

     Any check, certificate, or voucher issued by the Secretary 
     pursuant to this paragraph shall include the taxpayer 
     identification number of the taxpayer and the address of the 
     principal residence being purchased.
       ``(B) Timely receipt.--The Secretary shall issue the credit 
     transfer amount not less than 30 days after the date of the 
     receipt of an application for a credit transfer.
       ``(3) Payment of interest.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, the Secretary shall pay interest on any amount 
     which is not paid to a person during the 30-day period 
     described in paragraph (2)(B).
       ``(B) Amount of interest.--Interest under subparagraph (A) 
     shall be allowed and paid--
       ``(i) from the day after the 30-day period described in 
     paragraph (2)(B) to the date payment is made, and
       ``(ii) at the overpayment rate established under section 
     6621.
       ``(C) Exception.--This paragraph shall not apply to 
     failures to make payments as a result of any natural disaster 
     or other circumstance beyond the control of the Secretary.
       ``(4) Effect on legal rights and obligations.--Nothing in 
     this subsection shall be construed to--
       ``(A) require a lender to complete a loan transaction 
     before the credit transfer amount has been transferred to the 
     lender, or
       ``(B) prevent a lender from altering the terms of a loan 
     (including the rate, points, fees, and other costs) due to 
     changes in market conditions or other factors during the 
     period of time between the application by the taxpayer for a 
     credit transfer and the receipt by the lender of the credit 
     transfer amount.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) First-time homebuyer.--
       ``(A) In general.--The term `first-time homebuyer' has the 
     same meaning as when used in section 72(t)(8)(D)(i).
       ``(B) One-time only.--If an individual is treated as a 
     first-time homebuyer with respect to any principal residence, 
     such individual may not be treated as a first-time homebuyer 
     with respect to any other principal residence.
       ``(C) Married individuals filing jointly.--In the case of 
     married individuals who file a joint return, the credit under 
     this section is allowable only if both individuals are first-
     time homebuyers.
       ``(D) Other taxpayers.--If 2 or more individuals who are 
     not married purchase a principal residence--
       ``(i) the credit under this section is allowable only if 
     each of the individuals is a first-time homebuyer, and
       ``(ii) the amount of the credit allowed under subsection 
     (a) shall be allocated among such individuals in such manner 
     as the Secretary may prescribe, except that the total amount 
     of the credits allowed to all such individuals shall not 
     exceed the amount in effect under subsection (b)(1)(A) for 
     individuals filing joint returns.
       ``(2) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 121. Except as 
     provided in regulations, an interest in a partnership, S 
     corporation, or trust which owns an interest in a residence 
     shall not be treated as an interest in a residence for 
     purposes of this paragraph.
       ``(3) Purchase.--
       ``(A) In general.--The term `purchase' means any 
     acquisition, but only if--
       ``(i) the property is not acquired from a person whose 
     relationship to the person acquiring it would result in the 
     disallowance of losses under section 267 or 707(b) (but, in 
     applying section 267 (b) and (c) for purposes of this 
     section, paragraph (4) of section 267(c) shall be treated as 
     providing that the family of an individual shall include only 
     the individual's spouse, ancestors, and lineal descendants), 
     and
       ``(ii) the basis of the property in the hands of the person 
     acquiring it is not determined--

       ``(I) in whole or in part by reference to the adjusted 
     basis of such property in the hands of the person from whom 
     acquired, or
       ``(II) under section 1014(a) (relating to property acquired 
     from a decedent).

       ``(B) Construction.--A residence which is constructed by 
     the taxpayer shall be treated as purchased by the taxpayer.
       ``(4) Purchase price.--The term `purchase price' means the 
     adjusted basis of the principal residence on the date of 
     acquisition (within the meaning of section 72(t)(8)(D)(iii)).
       ``(e) Denial of Double Benefit.--No credit shall be allowed 
     under subsection (a) for any expense for which a deduction or 
     credit is allowed under any other provision of this chapter.
       ``(f) Basis Adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section with respect to the 
     purchase of any residence, the basis of such residence shall 
     be reduced by the amount of the credit so allowed.
       ``(g) Property to Which Section Applies.--
       ``(1) In general.--The provisions of this section apply to 
     a principal residence if--
       ``(A) the taxpayer purchases the residence on or after 
     January 1, 2003, and before January 1, 2010, or
       ``(B) the taxpayer enters into, on or after January 1, 
     2003, and before January 1, 2010, a binding contract to 
     purchase the residence, and purchases and occupies the 
     residence before July 1, 2011.''.
       (b) Conforming Amendments.--
       (1) Subsection (a) of section 1016 of the Internal Revenue 
     Code of 1986 (relating to general rule for adjustments to 
     basis) is amended by striking ``and'' at the end of paragraph 
     (27), by striking the period at the end of paragraph (28) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(29) in the case of a residence with respect to which a 
     credit was allowed under section 36, to the extent provided 
     in section 36(f).''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by striking ``or'' before ``enacted'' and by 
     inserting before the period at the end ``, or from section 36 
     of such Code''.
       (c) Clerical Amendment.--The table of sections for subpart 
     C of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by striking the item relating 
     to section 36 and inserting the following new items:

``Sec. 36. Purchase of principal residence by first-time homebuyer.''.
``Sec. 37. Overpayments of tax.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2002.
                                 ______
                                 
      By Mr. BYRD:
  S. 1176. A bill to complete construction of the 13-State Appalachian 
development highway system, and for other purposes; to the Committee on 
Environment and Public Works.
  Mr. BYRD. Mr. President, today I am introducing legislation designed 
to fulfill an important promise made by the Federal Government to the 
people of my State and my region some 38 years ago. I am speaking of 
the promise to build and complete a network of highways through the 
Appalachian region known today as the Appalachian Development Highway 
System or ADHS. I look forward to working with my fellow Senators to 
have my legislation included in the measure to reauthorize the Federal-
aid Highway Program, one of the most important, if not the most 
important, pieces of legislation which will be considered during this 
Congress. The Federal-aid Highway Program is at the very core of the 
Federal infrastructure investment exercise.
  On September 30 of last year, our very capable Federal Highway 
Administrator, Ms. Mary Peters, testified before the Committee on 
Environment and Public Works on the condition and performance of our 
National Highway System. The Administration's Conditions and 
Performance Report has again reminded us that a great deal more needs 
to be invested in our infrastructure if we are not to fall further and 
further behind in stemming the deterioration of our nation's highways 
and bridges and alleviating congestion on our nation's roads.
  At the September 30 hearing, Administrator Peters testified that, 
even in the wake of the historic funding increase accomplished through 
TEA-21, congestion on our roads continues to worsen. An investment in 
our highway infrastructure by all levels of government will have to 
increase by more than 65 percent or $42.2 billion per year to actually 
improve the condition of our nation's highways. A funding increase of 
more than 17 percent or $11.3 billion will be necessary simply to 
maintain the current inadequate conditions of our highway network, 
where more than one in four of our nation's bridges are classified as 
deficient.
  Having served as both Chairman and Ranking Member of the Senate 
Appropriations Committee, I have sought to do my part by championing 
the highest level of Federal highway investment for all fifty States 
that is possible under our budget constraints. Earlier this year, I am 
pleased to report that the Senate prevailed in the conference with the 
House on the Omnibus Appropriations Bill for Fiscal Year 2003 and 
rejected every penny of the $8.6 billion cut in highway funding 
proposed by President Bush. And just last month, I was pleased to join 
with Senators Bond and Reid, the respective Chairman and Ranking Member 
of the Surface Transportation Subcommittee, in sponsoring a bipartisan 
amendment to the Budget Resolution for Fiscal Year 2004 that

[[Page 13456]]

boosted funding for our Federal-aid Highway Program by several billion 
dollars. That amendment commanded 79 votes on the Senate floor.
  While serving in the other body, I had the great privilege of casting 
my vote in favor of establishing the Interstate Highway System back in 
1958. However, in 1964, it was recognized by the first Appalachian 
Regional Commission that while the Interstate Highway System was slated 
to provide historic economic benefits to most of our Nation, the system 
was designed to bypass the Appalachian Region due to the extremely high 
cost associated with building Highways through Appalachia's rugged 
topography. As a result, the construction of the interstates would have 
had the detrimental effect of drawing passengers and freight, and the 
accompanying economic benefits, away from the Appalachian Region.
  In 1965, the Congress adopted the Appalachian Regional Development 
Act that promised a network of modern highways to connect the 
Appalachian Region to the rest of the Nation's highway network and, 
even more importantly, the rest of the Nation's economy. Absent the 
Appalachian Development Highway System, my region of the country would 
have been left solely with a transportation infrastructure of 
dangerous, narrow, winding roads which follow the path of river valleys 
and stream beds between mountains. These roads are still, more often 
than not, two-lane roads that are squeezed into very limited rights-of-
way. They are characterized by low travel speeds and long travel 
distances and are often built to inadequate design standards.
  One of the observations contained in Administrator Peters' testimony 
back in September that especially caught my eye was her statement that 
``the condition of higher-order roads, such as interstates, has 
improved considerably since 1993 while the condition on many lower-
order roads has deteriorated.'' It appears that the pattern of road 
conditions is beginning to mirror the distribution of wealth in our 
country, whereby the rich are getting richer while the poor get poorer. 
That observation is most pertinent when you consider the challenge of 
completing the Appalachian Development Highway System.
  We have virtually completed the construction of the Interstate 
Highway System and have moved on to many other important transportation 
goals. However, the people of my region are still waiting for the 
Federal Government to live up to its promise, made some 38 years ago, 
to complete the ADHS. The system is still less than 80 percent complete 
and I regret to observe that my home State of West Virginia is below 
the average for the entire Appalachian Region with only 72 percent of 
its mileage complete and open to traffic.
  The rationale behind the completion of the Appalachian Development 
Highway System is no less sound today than it was in 1964. 
Unfortunately, there are still children in Appalachia who lack decent 
transportation routes to school; and there are still pregnant mothers, 
elderly citizens and others who lack timely road access to area 
hospitals. There are thousands upon thousands of people who cannot 
obtain sustainable well-paying jobs because of poor road access to 
major employment centers. The entire status of the Appalachian 
Development Highway System is laid out in great detail in the Cost to 
Complete Report for 2002 recently completed by the Appalachian Regional 
Commission. This is the most comprehensive report on the status of the 
Appalachian Development Highway System to date and I commend the staff 
of the Appalachian Regional Commission for their hard work on this 
report. The last report was completed in 1997 just prior to 
Congressional consideration of TEA-21.
  The enactment of TEA-21 signaled a new day in the advancement of the 
Appalachian Development Highway System. Through the work of the 
Committee on Environment and Public Works, the House Transportation and 
Infrastructure Committee, and the Administration, we took a great leap 
forward by authorizing direct contract authority from the Highway Trust 
Fund to the States for the construction of the ADHS. Up until that 
point, funding for the Appalachian Development Highway System had been 
limited to uncertain and inconsistent general fund appropriations. By 
provding the States of the Appalachian Region with a consistent and 
predictable source of funds to move forward on its uncompleted ADHS 
segments, TEA-21 served to reinvigorate our efforts to honor the 
promise made to the people of the Appalachian Region.
  As is made clear in the Cost to Complete Report, this initiative has 
been a great success. States are making greater progress toward the 
completion of the system than they have in any five-year segment in 
recent memory. Since the last Cost to Complete Report, 183 miles of the 
system have been opened to traffic and we have successfully brought 
down the cost to complete the system by roughly $1.7 billion in Federal 
funds.
  Back when we were debating TEA-21, some questions were asked as to 
how committed the States would be to completing the unfinished segments 
to the Appalachian Development Highway System. I am pleased to report 
that the 13 States, to date, have succeeded in obligating just under 90 
percent of the obligation authority that has been granted to them for 
the completion of the system. A 90-percent obligation rate compares 
quite favorably to some of the other transportation programs through 
which the States were granted multiple years to obligate their funds.
  According to the ARC's Cost to Complete Report, the remaining Federal 
funds needed to complete the ADHS are now estimated to be $4.467 
billion. When adjusted for inflation over the life of the next highway 
bill, using the standard inflation calculation for highway projects, a 
total of $5.04 billion will need to be authorized to complete the 
system. That is a lot of money and I believe that figure deserves some 
explanation.
  The considerable cost of completing the last 20 percent of the ADHS 
is explained by the fact that the easiest segments of the system to 
build have already been built. Much of the costs associated with 
completing the most difficult unfinished segments are driven by the 
requirement to comply with other Federal laws, especially the laws 
requiring environmental mitigation measures when building new highways 
through rural areas. While the $5.04 billion figure may seem large to 
some of my colleagues, I would remind them the last highway bill 
authorized more than $218 billion in federal infrastructure investment 
over six years. It is my sincere hope and expectation that the next 
highway bill will authorize an even greater amount.
  Of critical importance to this debate is the fact that the unfinished 
segments of the ADHS represent some of most dangerous and most 
deficient roadways in our entire Nation. Often lost in our debate over 
the necessity to invest in our highways is the issue of safety. The 
Federal Highway Administration has published reports indicating that 
substandard road conditions are a factor in 30 percent of all fatal 
highway accidents. I am quite certain that the percentage is a great 
deal higher in the Appalachian Region.
  The Federal Highway Administration found that upgrading two-lane 
roads to four-lane divided highways decreased fatal car accidents by 71 
percent and that the widening of traffic lanes has served to reduce 
fatalities by 21 percent. These are precisely the kind of road 
improvements that are funded through the ADHS. In my state, the largest 
segment of unfinished Appalachian Highway, if completed, will replace 
the second most dangerous segment of roadway in West Virginia. So, even 
those who would question the wisdom of completing these highways in the 
name of economic development should take a hard look at the fact that 
the people of rural Appalachia are taking their lives in their hands 
every day as they drive on dangerous roads.
  It is time for this Congress, in concert with the Administration, to 
take the last great leap forward and authorize sufficient contract 
authority to finally complete the Appalachian Development Highway 
System. If we enact another six-year highway bill with sufficient funds 
to complete the system,

[[Page 13457]]

we will finally pay the full costs of the ADHS almost 45 years after 
the system was first promised to the people of my region. The 
legislation I am introducing today, the ``Appalachian Development 
Highway System Completion Act,'' will provide sufficient contract 
authority to complete the system. Importantly, it will guarantee that 
the states of the Appalachian Region do not pay a penalty, either 
through the distribution of minimum allocation funds, or the 
distribution of obligation limitation, for receiving sufficient funds 
to complete the Appalachian system.
  I am very pleased that this Administration has taken on the goal of 
completing the ADHS. In her letter accompanying the Cost to Complete 
Report, Administrator Peters said ``the completion of the ADHS is an 
important part of the mission of the Federal Highway Administration. We 
consider the accessibility, mobility and economic stimulation provided 
by the ADHS to be entirely consistent with the goals of our agency.'' 
Ms. Peters further stated that the Appalachian Regional Commission's 
2002 Cost to Complete Report, ``provides a sound basis for apportioning 
future funding to complete the system.'' I thank Mary Peters and the 
entire Federal Highway Administration for their leadership on this 
issue and I look forward to working with Ms. Peters and her agency to 
ensure that this commitment is borne out in the transportation 
reauthorization legislation that is developed by the Congress.
  Completion of a new highway bill will be a mammoth task for this 
Congress. As I look back over the many years of my public career, one 
of the accomplishments of which I am most proud was my amendment 
providing an additional $8 billion in funding to break the logjam 
during the debate on the Intermodal Surface Transportation Efficiency 
Act in 1991. Another was my sponsorship of the Byrd-Gramm-Baucus-Warner 
Amendment during the Senate debate of TEA-21 in 1998. That effort 
resulted in some $26 billion in funding being added to that bill and 
put us on a path to historic funding increases for our nation's highway 
infrastructure. I look forward again to working with my fellow Senators 
on completion of a bill that makes the necessary investments in our 
nation's highways, not just in the Appalachian Region, but across our 
entire country.
                                 ______
                                 
      By Mr. HATCH (for himself and Mr. Kohl):
  S. 1177. A bill to ensure the collection of all cigarette taxes, and 
for other purposes; to the Committee on the Judiciary.
  Mr. HATCH. Mr. President, I rise today, with my colleague Senator 
Kohl, to introduce S. 1177, the Prevent All Cigarette Trafficking, PACT 
Act of 2003. I do so because of my concern that contraband cigarettes 
contribute heavily to the profits of organized crime syndicates, 
specifically global terrorist organizations. Furthermore, illegal 
cigarette trafficking has had a damaging impact on the economies of 
numerous States.
  Organized crime syndicates typically purchase cigarettes in States 
with low taxes and transport the product into states wit high taxes to 
illegally sell to small retailers below market costs. The Internet has 
exacerbated this problem. Frequently, these syndicates produce 
counterfeit State and city tax stamps in order to make it less risky 
for these small retailers to sell them to consumers. For example, 
Virginia has a per pack tax of 2.5 cents, while New York City has a per 
pack tax of $3. Organized crime syndicates, such as those affiliated 
with the Lebanon-based terrorist organization, Hezbollah, have been 
known to purchase and transport cigarettes in tractor-trailers up 
Interstate 95 from Virginia to New York for resale. As one can easily 
see, a State such as New York is losing millions of dollars in revenue 
each year because of unpaid taxes on these contraband cigarettes, while 
terrorist organizations are making millions in profits.
  Recent articles in the Washington Post and New York Post revealed 
that a cigarette-smuggling ring, which allegedly purchased over 70,000 
cartons from undercover Federal agents in a sting operation last fall, 
does in fact have ties to Hezbollah. If this group had been successful 
in its racketeering scheme, it would have amounted to a loss of nearly 
$2.4 million in tax revenue for New York and millions in profits for 
Hezbollah, allowing this organization to finance their terrorist 
activities.
  Members of an organized crime syndicate arrested in Charlotte, NC 
last year for smuggling contraband cigarettes from North Carolina to 
Michigan were also using their illegal profits to aid Hezbollah, 
according to the Charlotte Observer. The Buffalo News reported that one 
of the members of the Charlotte syndicate, Mohamad Hammoud, allegedly 
has ties to a recently arrested Detroit-area syndicate, which includes 
two women from the Seneca Nation of Indians' Cattaraugus reservation. 
Because the syndicate transported the cigarettes from North Carolina to 
Michigan for resale, Michigan lost $12.50 per carton in sales and 
excise taxes. These examples illustrate that cigarette smuggling is not 
only a lucrative business for organized crime but also detrimental to 
the budgets of many states.
  The PACT Act attacks the problem of illegal cigarette trafficking by 
these organized crime syndicates through its strengthening of the 
Jenkins Act of 1949, 15 U.S.C. Sec. Sec. 375-378, 2003. In its current 
form, the Jenkins Act requires tobacco vendors to register with each 
State tax administrator in which they sell cigarettes, as well as file 
a monthly report that provides shipment information within each State. 
Failure to do so is a misdemeanor. Compliance with this statute enables 
States to collect cigarette excise, sales and use taxes from consumers. 
This legislation, which the distinguished Senator from Wisconsin and I 
are introducing, strengthens the Act by increasing the reporting 
requirements first established under Jenkins, expressly including 
cigarette orders placed through the Internet, lowering the threshold 
for cigarettes to be treated as contraband from 60,000 to 10,000, 
increasing the criminal penalty for violating the Act to a felony and 
creating a substantial civil penalty.
  The PACT Act will also provide State attorneys general with the 
option to bring actions in federal court, which is a tool desired by 
many states. According to a GAO report from last year on Internet 
cigarette sales, online cigarette sellers simply do not comply with the 
Jenkins Act requirements--in fact most of them defiantly state that 
they do not comply with the Jenkins Act. Many State attorneys general 
realize that this practice is unfair not only to their individual 
States, but also to the brick and mortar retailers located in their 
state, placing these businesses at an unfair commercial disadvantage. 
Providing these state attorneys general with the ability to bring 
actions against these out-of-state Internet vendors for lost revenue is 
crucial in leveling the playing field and collecting the rightful 
revenue for states like Washington, California, New York, Wisconsin, 
Michigan and Rhode Island.
  I ask my colleagues to join Senator Kohl and me in our efforts to 
help stop the funding of global terrorist organizations and ensure that 
States are able to recover lost revenue by co-sponsoring and supporting 
the PACT Act of 2003.
  Mr. KOHL. Mr. President, I rise today to cosponsor the introduction 
of the Prevent All Cigarette Trafficking Act, ``PACT Act'' of 2003. 
This legislation addressed the growing problem of cigarette smuggling, 
and the connection between these activities and terrorist funding. 
According to the Bureau of Alcohol, Tobacco, Firearms and Explosives, 
10 cigarette smuggling cases were initiated in 1998. That has grown to 
approximately 160 in 2002.
  Cigarette smuggling can be defined as the movement of cigarettes from 
low-tax areas to high-tax areas in order to avoid the payment of taxes 
when the cigarettes are resold. Smugglers buy cigarettes in low-tax 
States such as North Carolina and Kentucky, and drive or ship the 
product to high-tax States and sell them on the street, to convenience 
stores, or to conspirators without paying the required State

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taxes. Some smugglers affix fraudulent State tax stamps to make it 
appear they have paid the State taxes that are due. The profits for 
cigarettes smuggling can be enormous. In North Carolina, a pack of 
cigarettes is taxed 5 cents. In New York, the State tax is $1.50 and in 
New York City, an additional $1.50 a pack city tax is levied.
  It is clear that cigarette trafficking is becoming a method of 
terrorist financing. In an investigation last month, the AFT arrested 
17 individuals who are alleged to have smuggled more than $20 million 
worth of cigarettes. The ring allegedly purchased cigarettes in 
Virginia, where the state tax is 3 cents and resold them in California 
without paying the California tax, which is 87 cents. In another recent 
investigation, the AFT disrupted a cigarette smuggling scheme between 
North Carolina and Michigan participants allegedly smuggled at least $8 
million worth of cigarettes and sent the proceeds to Hezbollah to 
support terrorist activities.
  The Internet is contributing to the smuggling problem because many 
Internet cigarette retailers are not paying the required taxes when 
shipments are sent to buyers in various States. It is impossible to 
know what happens to these ill-gotten gains. Currently, there are 
hundreds of tobacco retailers on the Internet claiming to sell tax-free 
cigarettes. Several openly proclaim on their websites that they do not 
report internet tobacco sales to any State's tax administrator. This is 
a flagrant violation of the law in every State. A recent Government 
Accounting Office report advised that States will lose approximately 
$1.5 billion in tax revenues by the year 2005 if the current state of 
Internet tobacco sales continues. More than ever, state governments 
need these tax dollars.
  Compounding the problem, counterfeit cigarettes, on which smugglers 
have paid no taxes, are becoming more and more common. In 2001, the 
U.S. Customs Service made 24 seizures of counterfeit cigarettes. In 
2002, they made 255 seizures. Phillip Morris estimates that 100 billion 
counterfeit cigarettes are produced in China alone.
  The PACT Act will combat tobacco smuggling in a number of ways. 
First, in order to assist law enforcement and fight terrorism funding, 
this legislation will make violations of the Jenkins Act a felony 
thereby encouraging more investigations and prosecutions. The Jenkins 
Act, 18 U.S.C. 375, requires any person who sells and ships cigarettes 
across State lines to anyone other than a licensed distributor, to 
report the sale to the buyer's State tobacco tax administrator, thus 
allowing State and local governments to collect the taxes that are 
lawfully due. The current penalty for violating the Jenkins Act is a 
misdemeanor.
  In my State of Wisconsin, in 2001, State authorities referred a 
Jenkins Act violation to the U.S. Attorney who said that this was a 
matter that should be handled administratively. However, Wisconsin and 
most States do not have remedies for these violations and they have 
little recourse against vendors.
  This legislation also amends the Jenkins Act by explicitly expanding 
the definition of ``sales'' to include sales to a consumer via the 
mails, telephone, or the Internet. It will also require both sellers 
and shippers to submit the required reports, even when sales are to a 
licensed distributor. Finally, the ``PACT Act'' will empower State 
Attorneys General, and persons holding a Federal permit to manufacture 
or import cigarettes, to bring civil actions in Federal court to 
restrain violations of the Jenkins Act and to seek civil damages for 
the losses they have incurred. This will allow State Attorneys General 
to stop violators of this Federal law from operating as well as recoup 
their tax losses.
  The PACT Act also strengthens the Contraband Cigarette Trafficking 
Act (``CCTA''), 18 U.S.C. 2342, which makes it unlawful for any person 
to ship, transport, receive, possess, sell, distribute, or purchase 
contraband cigarettes. Under the CCTA, contraband cigarettes is defined 
as 60,000 cigarettes or more which bear no tax stamp. This legislation 
will lower the threshold from 60,000 to 10,000 in order for smuggled 
cigarettes to be considered ``contraband,'' thereby allowing ATF to 
open more investigations and seek more Federal prosecutions of 
cigarette smugglers.
  Finally, the PACT Act will grant ATF the ability to utilize funds 
earned during undercover operations to offset expenses that are 
incurred during those investigations. This will make the ATF's powers 
more comparable to those of other investigative agencies such as that 
the FBI and DEA, may use non-appropriated funds to make undercover 
purchases and pay other investigative expenses. ATF needs this 
authority in part because of the huge costs associated with purchasing 
tens of thousands of cigarettes in undercover investigations.
  Cigarette smuggling is increasing and must be addressed. Enhancing 
the criminal laws to reduce cigarette smuggling will help deny 
terrorists a needed source of funding and help our States collect their 
revenue.

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