[Congressional Record (Bound Edition), Volume 150 (2004), Part 16]
[Senate]
[Pages 21407-21451]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN:
  S. 2910. A bill to establish the Food Safety Administration to 
protect the public health by preventing food-borne illness, ensuring 
the safety of food intended for human consumption, improving research 
on contaminants leading to food-borne illness, and improving security 
of food from intentional contamination; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mr. DURBIN. Mr. President, when Americans sit down at the dinner 
table, their confidence in the safety of the food they are eating is 
based in part on the knowledge that the Federal Government is working 
hard to ensure their food is not contaminate. Right now, our food is 
the safest in the world, but there are widening gaps in our food safety 
net due to emerging threats and the fact that food safety oversight has 
evolved over time to spread over several government agencies. This 
mismatched, piecemeal approach to food safety could spell disaster if 
we do not act quickly and decisively.
  A single food safety agency with authority based on sound scientific 
principles would provide this country with the greatest hope of 
reducing foodborne illnesses and preparing for a bioterrorist attack on 
our food supply.
  The Centers for Disease Control and Prevention (CDC) estimates that 
as many as 76 million people suffer from food poisoning each year. Of 
those individuals, approximately 325,000 will be hospitalized, and more 
than 5,000 will die. Factors such as emerging pathogens, an aging 
population at high risk for foodborne illnesses, an increasing volume 
of food imports, and people eating outside their homes more often 
underscore the need for us to take charge and shed the old bureaucratic 
shackles that have tied us to the overlapping and inefficient ad hoc 
food safety system of the past.
  I rise today to introduce the Safe Food Act of 2004. This legislation 
would create a single, independent Federal food safety agency to 
administer all aspects of Federal food safety inspections, enforcement, 
standards-setting and research in order to protect public health. The 
components of the agencies now charged with protecting the food supply, 
primarily housed at the Food and Drug Administration and the 
Agriculture Department, would be transferred to this new agency.
  The new Food Safety Administrator would be responsible for the safety 
of the food supply and would carry out that charge by implementing the 
registration and recordkeeping requirements of the Bioterrorism Act of 
2002; ensuring slaughterhouses and food processing plants have 
procedures in place to prevent and reduce food contamination; regularly 
inspecting domestic food facilities, with inspection frequency based on 
risk; and centralizing the authority to detain, seize, condemn and 
recall food that is adulterated or misbranded. The Administrator would 
be charged with requiring food producers to make it possible for their 
products to be traced in the event

[[Page 21408]]

of a foodborne illness outbreak in order to minimize the health impact 
of such an event.
  The Administrator would also have the power to examine the food 
safety practices of foreign countries and work with the states to 
enforce food safety laws, including the ability to seek various civil 
and criminal penalties for serious violations of the food safety laws. 
The Administrator would also actively oversee public education and 
research programs on foodborne illness.
  In this era of limited budgets, it is our responsibility to 
streamline the Federal food safety system. The United States simply 
cannot afford to continue operating multiple redundant systems. This is 
not about more regulation, a super agency, or increased bureaucracy. It 
is about common sense and the more effective marshaling of our existing 
resources.
  I urge my colleagues to join me in supporting this important piece of 
legislation.
                                 ______
                                 
      By Mr. FEINGOLD:
  S. 2913. A bill to establish a demonstration project to train 
unemployed workers for employment as health care professionals, and for 
other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. FEINGOLD. Mr. President, over the past year, I have come to this 
floor on a number of occasions to discuss the loss of manufacturing 
jobs in Wisconsin and around the country and ways in which I think that 
Congress should act to stem the flow of these jobs to foreign 
countries.
  According to the Wisconsin Department of Workforce Development, 
Wisconsin has lost more than 80,000 manufacturing jobs since 2000. 
Nationally, according to the Bureau of Labor Statistics, the country 
has lost more than 2.8 million manufacturing jobs during that same time 
period. In addition to the loss of manufacturing jobs, I am deeply 
troubled by the Bush administration's contention that the outsourcing 
of American service sector and other jobs is good for the economy. I am 
concerned about the message that this policy sends to Wisconsinites and 
all Americans who are currently employed in these sectors.
  There is something of a silver lining to the looming cloud of 
manufacturing and other jobs loss: the country's workforce development 
system.
  In spite of stretched resources and long waiting lists for services, 
our workforce development boards are making a tremendous effort to 
retrain laid-off workers and other job seekers for new jobs. And this 
effort is clearly evident in Wisconsin, where my State's 11 workforce 
development boards are leading the way in finding innovative solutions 
to retraining workers for new careers on shoestring budgets.
  I strongly support the work of these agencies, and have urged the 
administration and Senate appropriators to provide adequate funding for 
the job training programs authorized by the Workforce Investment Act. I 
regret that the administration's budget request for fiscal year 2005 
does not provide adequate funding for WIA, and I will continue to work 
to ensure that the workforce development boards in my State and across 
our country receive the resources that they need to help job seekers 
get the training they need to be successful.
  I am committed to finding resources to retrain those who have been 
laid off from the manufacturing and service sectors and who wish to 
find new jobs in high-demand fields such as health care.
  As most of my colleagues know all too well, we are facing a 
significant shortage of health care workers. Congress has made some 
progress in addressing the nursing shortage, but we need to expand our 
efforts. Shortages of health professionals pose a real threat to the 
health of our communities by impacting access to timely, high-quality 
health care. Studies have shown that shortages of nurses in our 
hospitals and health facilities increase medical errors, which directly 
affects patient health.
  As our population ages, and the baby-boomers need more health care, 
our need for all types of health professionals is only going to 
increase. This is particularly true for the field of long-term care. 
According to the Bureau of Labor Statistics, we are going to need an 
additional 1.2 million nursing aides, home health aides, and other 
health professionals in long-term care before the year 2010.
  As our demand for health care workers grows, so does the number of 
jobs available within this sector. Currently, health services is the 
largest industry in the country, providing 12.9 million jobs in 2002. 
It is estimated that 16 percent of all new jobs created between 2002 
and 2012 will be in health services. This accounts for 3.5 million new 
jobs--more than any other industry.
  Workforce development agencies in my home State of Wisconsin are 
already working to support displaced workers in their communities by 
training them for health care jobs, since there is a real need for 
workers in these fields. These agencies are helping communities get and 
maintain access to high-quality health care by ensuring that there are 
enough health care workers to care for their communities.
  As the executive director of one of the workforce development boards 
in my State put it, ``[t]here are simply not many good quality jobs to 
replace manufacturing jobs lost to rural communities. The medical 
professions, by offering a `living wage' and good benefits, provide an 
excellent alternative to manufacturing for sustaining a higher, family-
oriented standard of living.''
  I believe we need to support our communities in these efforts by 
providing them with the resources they need to establish, sustain, or 
expand these important programs. For that reason, today I am 
introducing the Community-Based Health Care Retraining Act. This bill 
would amend the Workforce Investment Act to authorize a demonstration 
project to provide grants to community-based coalitions, led by local 
workforce development boards, to create programs to retrain unemployed 
workers who wish to obtain new jobs in the health care professions. My 
bill would authorize a total of $25 million for grants between $100,000 
and $500,000, and, in the interest of fiscal responsibility, it ensures 
that these grants would be offset.
  This bill will help provide communities with the resources they need 
to run retraining programs for the health professions. The funds could 
be used for a variety of purposes--from increasing the capacity of our 
schools and training facilities, to providing financial and social 
support for workers who are in retraining programs. This bill is 
flexible in what the grant funds could be used for, because I believe 
that communities know best about the resources they need to run an 
efficient program.
  This bill represents a nexus in my efforts to support workers whose 
jobs have been shipped overseas and to ensure that all Americans have 
access to the high-quality health care that they deserve. By providing 
targeted assistance to train laid-off workers who wish to obtain new 
jobs in the health care sector, we can both help unemployed Americans 
and improve the availability and quality of health care that is 
available in our communities.
  I am pleased that this bill is supported by a variety of 
organizations that are committed to providing high-quality job training 
and health care services, including: the National Association of 
Workforce Boards, the American Health Care Association, the Wisconsin 
Association of Job Training Executives, Northwest Wisconsin 
Concentrated Employment Program, the Northwest Wisconsin Workforce 
Investment Board, and the Southwestern Wisconsin Workforce Development 
Board.
  I ask unanimous consent that the full text of this bill, and the text 
of the letters of support from the above-mentioned groups, be printed 
in the Record at the conclusion of my remarks.
  In order to ensure that our workers are able to compete in the new 
economy, we must ensure that they have the tools they need to be 
trained or retrained for high-demand jobs such as those in the health 
care field. My bill is a small step toward providing the resources 
necessary to achieve this goal. I will continue to work to strengthen 
the American manufacturing sector

[[Page 21409]]

and to support those workers who have been displaced due to bad trade 
agreements and other policies that have led to the loss of American 
jobs.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2913

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Community-Based Health Care 
     Retraining Act''.

     SEC. 2. HEALTH PROFESSIONS TRAINING DEMONSTRATION PROJECT.

       Section 171 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2916) is amended by adding at the end the following:
       ``(e) Health Professions Training Demonstration Project.--
       ``(1) Definitions.--In this subsection:
       ``(A) Covered community.--The term `covered community' 
     means a community or region that--
       ``(i) has experienced a significant percentage decline in 
     positions in the manufacturing or service sectors; and
       ``(ii)(I) is eligible for designation under section 332 of 
     the Public Health Service Act (42 U.S.C. 254e) as a health 
     professional shortage area;
       ``(II) is eligible to be served by a health center under 
     section 330 or a grantee under section 330(h) (relating to 
     homeless individuals) of the Public Health Service Act (42 
     U.S.C. 254b, 254b(h));
       ``(III) has a shortage of personal health services, as 
     determined under criteria issued by the Secretary of Health 
     and Human Services under section 1861(aa)(2) of the Social 
     Security Act (relating to rural health clinics) (42 U.S.C. 
     1395x(aa)(2)); or
       ``(IV) is designated by a Governor (in consultation with 
     the medical community) as a shortage area or medically 
     underserved community.
       ``(B) Covered worker.--The term `covered worker' means an 
     individual who--
       ``(i)(I) has been terminated or laid off, or who has 
     received a notice of termination or layoff, from employment 
     in a manufacturing or service sector;
       ``(II)(aa) is eligible for or has exhausted entitlement to 
     unemployment compensation; or
       ``(bb) has been employed for a duration sufficient to 
     demonstrate, to the appropriate entity at a one-stop center 
     referred to in section 134(c), attachment to the workforce, 
     but is not eligible for unemployment compensation due to 
     insufficient earnings or having performed services for an 
     employer that were not covered under a State unemployment 
     compensation law; and
       ``(III) is unlikely to return to a previous industry or 
     occupation; or
       ``(ii)(I) has been terminated or laid off, or has received 
     a notice of termination or layoff, from employment in a 
     manufacturing or service sector as a result of any permanent 
     closure of, or any substantial layoff at, a plant, facility, 
     or enterprise; or
       ``(II) is employed in a manufacturing or service sector at 
     a facility at which the employer has made a general 
     announcement that such facility will close within 180 days.
       ``(C) Health care professional.--The term `health care 
     professional'--
       ``(i) means an individual who is involved with--

       ``(I) the delivery of health care services, or related 
     services, pertaining to--

       ``(aa) the identification, evaluation, and prevention of 
     diseases, disorders, or injuries; or
       ``(bb) home-based or community-based long-term care;

       ``(II) the delivery of dietary and nutrition services; or
       ``(III) rehabilitation and health systems management; and

       ``(ii) includes nurses, home health aides, nursing 
     assistants, physician assistants, dental hygienists, 
     diagnostic medical sonographers, dietitians, medical 
     technologists, occupational therapists, physical therapists, 
     radiographers, respiratory therapists, emergency medical 
     service technicians, and speech-language pathologists.
       ``(2) Establishment of project.--In accordance with 
     subsection (b), the Secretary shall establish and carry out a 
     health professions training demonstration project.
       ``(3) Grants.--In carrying out the project, the Secretary, 
     after consultation with the Secretary of Health and Human 
     Services, shall make grants to eligible entities to enable 
     the entities to carry out programs in covered communities to 
     train covered workers for employment as health care 
     professionals. The Secretary shall make each grant in an 
     amount of not less than $100,000 and not more than $500,000.
       ``(4) Eligible entities.--Notwithstanding subsection 
     (b)(2)(B), to be eligible to receive a grant under this 
     subsection to carry out a program in a covered community, an 
     entity shall be a partnership that is--
       ``(A) under the direction of a local workforce investment 
     board established under section 117 that is serving the 
     covered community; and
       ``(B) composed of members serving the covered community, 
     such as--
       ``(i) a community college;
       ``(ii) a vocational or technical school;
       ``(iii) a health clinic or hospital;
       ``(iv) a home-based or community-based long-term care 
     facility or program; or
       ``(v) a health care facility administered by the Secretary 
     of Veterans Affairs.
       ``(5) Applications.--To be eligible to receive a grant 
     under this subsection, an entity shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require, including, at 
     a minimum--
       ``(A) a proposal to use the grant funds to establish or 
     expand a training program in order to train covered workers 
     for employment as health care professionals or 
     paraprofessionals;
       ``(B) information demonstrating the need for the training 
     and support services to be provided through the program;
       ``(C) information describing the manner in which the entity 
     will expend the grant funds, and the activities to be carried 
     out with the funds; and
       ``(D) information demonstrating that the entity meets the 
     requirements of paragraph (4).
       ``(6) Selection.--In making grants under paragraph (3), the 
     Secretary, after consultation with the Secretary of Health 
     and Human Services, shall select--
       ``(A) eligible entities submitting applications that meet 
     such criteria as the Secretary of Labor determines to be 
     appropriate; and
       ``(B) among such entities, the eligible entities serving 
     the covered communities with the greatest need for the grants 
     and the greatest potential to benefit from the grants.
       ``(7) Use of funds.--
       ``(A) In General.--An entity that receives a grant under 
     this subsection shall use the funds made available through 
     the grant for training and support services that meet the 
     needs described in the application submitted under paragraph 
     (5), which may include--
       ``(i) increasing capacity at an educational institution or 
     training center to train individuals for employment as health 
     professionals, such as by--

       ``(I) expanding a facility, subject to subparagraph (B);
       ``(II) expanding course offerings;
       ``(III) hiring faculty;
       ``(IV) providing a student loan repayment program for the 
     faculty;
       ``(V) establishing or expanding clinical education 
     opportunities;
       ``(VI) purchasing equipment, such as computers, books, 
     clinical supplies, or a patient simulator; or
       ``(VII) conducting recruitment; or

       ``(ii) providing support services for covered workers 
     participating in the training, such as--

       ``(I) providing tuition assistance;
       ``(II) establishing or expanding distance education 
     programs;
       ``(III) providing transportation assistance; or
       ``(IV) providing child care.

       ``(B) Limitation.--To be eligible to use the funds to 
     expand a facility, the eligible entity shall demonstrate to 
     the Secretary in an application submitted under paragraph (5) 
     that the entity can increase the capacity described in 
     subparagraph (A)(i) only by expanding the facility.
       ``(8) Funding.--Of the amounts appropriated to, and 
     available at the discretion of, the Secretary or the 
     Secretary of Health and Human Services for programmatic and 
     administrative expenditures, a total of $25,000,000 shall be 
     used to establish and carry out the demonstration project 
     described in paragraph (2) in accordance with this 
     subsection.''.
                                  ____

                                           National Association of


                                             Workforce Boards,

                               Washington, DC, September 28, 2004.
     Hon. Russell Feingold,
     U.S. Senate,
     Washington, DC.
       Dear Senator Feingold: This letter is in regards to your 
     bill, the Community-Based Health Care Retraining Act, which 
     seeks to establish a demonstration project to train 
     unemployed workers for employment as health care 
     professionals. The National Association of Workforce Boards 
     (NAWB) would like to support your efforts in linking 
     America's workforce investment boards with health care 
     training. Our members can be a valuable resource in the 
     transition of manufacturing workers to the numerous 
     employment opportunities in the health care field.
       NAWB is the national association that represents the 
     interests of the 650 workforce investment boards across the 
     country. These boards consist of over 15,000 private sector 
     business leaders, appointed by their Governors and local 
     elected officials, who provide leadership and governance for 
     the public workforce development system. In existence since 
     1979, NANWB has been a leader in the effort to create a 
     public workforce system. that is responsive to businesses and 
     job seekers alike.
       As you know, meeting the ever-increasing needs of America's 
     workers and employers is critical for prosperity in the 
     United States. Developing an educated and skilled workforce 
     to attract and retain business is a challenge facing all 
     communities. The growing

[[Page 21410]]

     education and workforce skills mismatch between what the 
     current American workforce offers and what employers need is 
     particularly acute in high-skill industry sectors. However, 
     these are the very industries that hold the most economic 
     promise for our current workers and the emerging workforce, 
     our nation's young people. The challenge posed for policy 
     makers is aligning America's workforce with rapidly changing 
     economic conditions and opportunities, while simultaneously 
     maintaining competitiveness to minimize off-shoring.
       Four of five U.S. manufacturers struggled to find 
     candidates for skilled jobs, according to a 2003 survey by 
     the National Association of Manufacturers. Ironically, this 
     search for skilled workers occurred while many plants were 
     going thorough layoffs. The United States has seen 3 million 
     manufacturing jobs disappear.
       Workers have permanently lost the jobs they once held at 
     these factories. New opportunities must be made to allow a 
     transition into new employment, especially for those who 
     cannot recover their job if demand increases. But in order to 
     do this, training dollars must be made available to those 
     employees who cannot regain employment within the 
     manufacturing industry.
       Through your bill, employers in the health care industry 
     that desperately need skilled workers can find the human 
     capital they desire in those who have been permanently laid 
     off from their manufacturing job. There has been an enormous 
     increase in the number of nursing and direct care 
     professional opportunities within the long-term care arena, 
     particularly within home-based care. These opportunities are 
     not only based on the number of employees needed. They 
     require a high level of skill, knowledge and compassion to 
     work in long-term care. Training dollars must be available to 
     introduce educated employees to the health care industry.
       Employers on the lay-off end of manufacturing employment 
     and employers on the hiring end of health care industries 
     need to tap all available employment and training resources. 
     NAWB can assist both sides of the equation by connecting 
     employers with their local workforce boards. Investing in 
     training our workers is critical.
       Our CEO, Ms. Stephanie Powers, is available to provide your 
     staff with any information you may require (phone: (202) 775-
     0960 or email: [email protected]). Thank you for your interest 
     in our organization and the members we represent. The 
     National Association of Workforce Boards remains committed to 
     working with Congress as we continue our mission to build a 
     stronger, more competitive American workforce.
           Sincerely,
     J. Michael Zelley,
       President, The Disability Network, Flint, MI, and Co-Chair, 
     Policy Committee, National Association of Workforce Boards.
     Jeffrey Howe,
       Vice President, Manager, Indiana Commercial Banking, First 
     Indiana Bank, N.A., Indianapolis, IN, and Chair, National 
     Association of Workforce Boards.
                                  ____



                             American Health Care Association,

                               Washington, DC, September 29, 2004.
     Hon. Russell D. Feingold,
     U.S. Senate,
     Washington, DC.
       Dear Senator Feingold: On behalf of the American Health 
     Care Association, the nation's largest association of long 
     term care providers, and the National Center for Assisted 
     Living, I am writing you to offer our support for enactment 
     of the ``Community-Based Health Care Retraining Act'' you are 
     introducing.
       Today, there is a critical shortage of health and long term 
     care professionals and paraprofessionals and it is growing. 
     In our nation's nursing facilities, there is a need for more 
     than 90,000 nurses and certified nursing assistants right now 
     to provide the hands-on care needed by the frail and elderly. 
     The need for these direct care workers will grow dramatically 
     in the future as the baby boom population moves into 
     retirement. America's high standard for quality can only be 
     maintained if there are enough front-line workers to provide 
     the direct hands-on care that will be needed. This is not a 
     job that can be handled off-shore.
       Your legislation will help to address this shortage by 
     providing the means for a growing number of displaced 
     manufacturing and service sector workers to begin building 
     new careers in the health and long term care sectors. It does 
     so by utilizing federal dollars to redirect these displaced 
     workers into health care careers. It provides for expanding 
     the nation's training capacity and by increasing number of 
     educators that are and will be needed to make this transition 
     successful.
       Senator Feingold, we commend you for the leadership you are 
     providing with the introduction of this legislation and look 
     forward to working with you to see this legislation passed 
     and enacted at the earliest opportunity.
           Sincerely,
                                                         Hal Daub,
     President & CEO.
                                  ____

                                          Wisconsin Association of


                                      Job Training Executives,

                                                  August 10, 2004.
     Senator Russ Feingold,
     Hart Senate Office Building, Washington, DC.
       Dear Senator Feingold: On behalf of the Wisconsin 
     Association of Job Training Executives (WAJTE), I am writing 
     to express our strong support for the proposed legislation 
     designed to address two significant workforce issues--the 
     loss of large numbers of manufacturing and service sector 
     jobs and the critical shortage of health care professionals. 
     As you know, both of these issues currently challenge the 
     workforce development delivery systems in Wisconsin.
       Our association members are the chief executives of each of 
     Wisconsin's eleven Workforce Development Boards who have the 
     responsibility for overseeing the health of the local 
     economies in partnership with business, education, and local 
     governments. The proposed legislation offers these specific 
     strengths.
       Ensures that eligible entities shall be a partnership under 
     the direction of a local board.
       Limits grant funds to training programs for health care 
     professionals.
       Allows for the use of grant funds for support services as 
     well as training.
       Allows for capacity expansion in educational institutions.
       If WAJTE members can be of assistance to you as this 
     legislation is introduced, please do not hesitate to contact 
     us.
           Sincerely,
                                                Francisco Sanchez,
     Chairman.
                                  ____



                                                     CEP--WIB,

                                  Ashland, WI, September 30, 2004.
     Senator Russ Feingold,
     Hart Senate Building, Washington, DC.
       Dear Senator Feingold: On behalf of the Northwest Wisconsin 
     Concentrated Employment Program, Inc. and the Northwest 
     Wisconsin Workforce Investment Board, Inc., I want to express 
     our enthusiastic support in the Community-Based Health Care 
     Retraining Act in Wisconsin.
       This initiative will help to strengthen the economy of our 
     area. Some of our counties in Northwest Wisconsin are 
     experiencing high labor shortages particularly in the health 
     care industries. Further, our area wages are approximately 
     24% less than the State average, which adds to a poverty 
     situation made worse by rural isolation. This Community-Based 
     Health Care Retraining Act will address these serious 
     economic issues and help to alleviate the severe shortage of 
     health care workers.
       This Act provides hope for the future economy and people of 
     our State. Please contact me if we can be of any further 
     assistance.
           Sincerely yours,
                                                     Fred Schnook,
     Executive Director.
                                  ____

                                               Southwest Wisconsin


                                  Workforce Development Board,

                                   Dodgeville, WI, August 4, 2004.
     Hon. Russ Feingold,
     Hart Senate Office Building, Washington, DC.
       Dear Senator Feingold: I would like to take this 
     opportunity to comment on your proposed legislation regarding 
     health-care retraining. I believe it is an excellent proposal 
     that will address a serious need particularly within rural 
     communities. Please allow me to elaborate on several points 
     that support this legislation.
       First, as executive director for a primarily rural 
     workforce development area, I can tell you how difficult it 
     is to replace manufacturing jobs. There simply are not many 
     good quality jobs to replace manufacturing jobs lost to rural 
     communities. The medical professions, by offering a ``living 
     wage'' and good benefits, provide an excellent alternative to 
     manufacturing for sustaining a higher, family-oriented 
     standard of living. Health-care is also a regional scope, 
     providing job opportunities for workers in surrounding 
     communities. Furthermore, medical professions are not 
     exportable and there is virtually no chance that health-care 
     jobs will be shipped out-of-country or overseas.
       Second, I am chairperson of a small, rural community 
     hospital. For many years we have struggled to survive in a 
     very competitive market surrounded by large, corporate 
     medical organizations/hospitals in Janesville and Madison. I 
     believe that our hospital has a unique role within our 
     community--as a community-based facility we are closer to our 
     patients and can provide personalized ``hometown'' care. One 
     of our biggest problems is our ability to attract and retain 
     qualified, experienced health-care workers. With the 
     impending shortage caused by the retirement of ``baby 
     boomers'' we will find ourselves in an even more difficult 
     role as larger facilities offer higher salaries, better 
     benefits, incentive and sign-on bonuses, etc. to attract and 
     retain the workers they need.

[[Page 21411]]

     Rural hospitals will find themselves left out and unable to 
     compete for the caregivers we need.
       Third, there are several key organizations that lie at the 
     core of any community that are vital to the quality of life 
     within that community. Schools are one example of this type 
     of organizations. Hospitals, nursing homes and other types of 
     medical facilities are other examples of key organizations 
     that support a higher standard of life within a rural 
     community.
       And finally, I would like to thank the Senator for 
     recognizing the vital role that Workforce Development Boards 
     (WDBs) play in our areas. The WDBs are regional organizations 
     providing oversight and coordination for economic and 
     workforce development activities. Furthermore, there are few 
     organizations today that are advocates for the ``worker''. I 
     believe that WDBs are an example of such an organization. 
     And, I believe it is critical to the success of a program 
     that the WDBs serve as the coordinating agency for the 
     delivery of this type of program.
       For the reasons stated above, I strongly support your 
     proposed Health-Care Retraining Bill. Thank you for the 
     chance to offer my comments. I look forward to the 
     opportunity to participate in, what I believe to be, a 
     meaningful and critically important program particularly for 
     the rural communities.
       Sincerely,
                                              Robert T. Borremans,
                                               Executive Director.
                                 ______
                                 
      By Ms. MIKULSKI:
  S. 2914. A bill to amend the Internal Revenue Code of 1986 to provide 
incentives for alternative fuels and alternative fuel vehicles; to the 
Committee on Finance.
  Ms. MIKULSKI. Mr. President, I rise today to introduce the ``Common 
Sense Automobile Affordability Act Of 2004''. My colleagues from 
Maryland introduced a similar bill in the House. I believe in energy 
conservation. I also believe in job conservation. We can improve the 
fuel efficiency of our cars without sticking a knife through the hearts 
of our Nation's auto workers. That is what I am going to keep standing 
up for in the U.S. Senate.
  When I consider any energy proposal, I apply four criteria. First, 
the proposal must achieve real savings in oil consumption. Secondly, 
the proposal also must preserve U.S. jobs. Next, the proposal must be 
realizable and achievable. And, lastly, it must create incentives to 
help companies achieve these goals.
  I agree with the goals of energy efficient vehicle tax breaks--fuel 
efficiency and energy conservation. I believe we need to reduce our 
dependence on foreign oil. The U.S. imports about twenty million 
barrels of oil a day, roughly 40 percent of that goes to fuel cars and 
light trucks. Half of our oil is imported and a quarter of our oil is 
imported from the Persian Gulf. Reducing our dependence on foreign oil 
would make us more flexible in the war against terror.
  That's why I support the provisions of the energy bill that provide 
incentives for energy efficiency and fuel conservation. But, we need to 
be more fuel efficient in a way that doesn't cost American jobs.
  Our current tax breaks for energy efficient vehicles provides more 
help for foreign car manufacturers than U.S. car manufacturers. Small 
cars receive more tax breaks, and small cars are often made by foreign 
auto companies.
  Our current tax breaks penalize U.S. automakers, because current tax 
incentives are not geared toward the SUV's or light trucks that 
American consumers want and American companies make.
  Our domestic automakers have been weakened by the current recession. 
And, we can't rely on foreign manufacturers to provide American jobs. 
The United Auto Workers (UAW) has seen its membership drop 
significantly from 1980 through 2000 from 1.4 million members in 1980 
down to 670,000 today. That means that our auto workers are being left 
behind.
  I have seen it in Baltimore. Over 1,000 workers were recently laid 
off at the GM plant, and the plant went through another shutdown after 
slow sales. This is not just happening in Maryland. GM shut down 
fourteen of its twenty-nine North American assembly plans for at least 
a week last year.
  American workers are being laid off because, while automobile imports 
are rising, and our domestic auto share is falling, only 64 percent of 
cars bought in America are built in America. That's down from 73.9 
percent in 1994.
  We need common sense tax breaks that provide Americans with good 
jobs, reduce our dependence on foreign oil and help clean up the 
environment.
  That's why I'm introducing legislation that would repeal the sunsets 
on existing clean vehicle tax breaks and replace the existing clean 
fuels tax breaks after 2006 with a comprehensive set of new tax credits 
of up to $4,000. These tax breaks could be used to buy energy efficient 
vehicles, including hybrid vehicles, fuel cell vehicles, diesel ``lean 
burn'' vehicles, and alternative fuel vehicles. There are also 
additional bonuses for increased fuel conservation and fuel efficiency. 
My bill includes incentives for all the major clean fuel technologies. 
There are larger credits for trucks and transit buses that are often 
American made.
  I also support the Hydrogen Fuel Cell Act introduced by my colleague 
from North Dakota. This bill would provide research money for a 
hydrogen fuel cell vehicle tax research and development programs.
  We can have both energy conservation and job conservation. That's 
what I'm fighting for. It will take innovative solutions, improved 
technology, and the setting of realistic, achievable goals. That's what 
my legislation encourages. With the right incentives to increase demand 
for cutting edge technologies, to increase U.S. manufacturing capacity 
of fuel efficient vehicles, and to provide good paying jobs for 
Americans.
  I urge my colleagues to join me in supporting these goals and this 
bill.
  I ask unanimous consent that the text of my bill be inserted in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2914

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

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``Common 
     Sense Automobile Efficiency Act of 2004''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. 2. REPEAL OF PHASEOUTS FOR QUALIFIED ELECTRIC VEHICLE 
                   CREDIT AND DEDUCTION FOR CLEAN-FUEL VEHICLES.

       (a) Credit for Qualified Electric Vehicles.--Subsection (b) 
     of section 30 (relating to limitations) is amended by 
     striking paragraph (2) and redesignating paragraph (3) as 
     paragraph (2).
       (b) Deduction for Clean-Fuel Vehicles and Certain Refueling 
     Property.--Paragraph (1) of section 179A(b) (relating to 
     qualified clean-fuel vehicle property) is amended to read as 
     follows:
       ``(1) Qualified clean-fuel vehicle property.--The cost 
     which may be taken into account under subsection (a)(1)(A) 
     with respect to any motor vehicle shall not exceed--
       ``(A) in the case of a motor vehicle not described in 
     subparagraph (B) or (C), $2,000,
       ``(B) in the case of any truck or van with a gross vehicle 
     weight rating greater than 10,000 pounds but not greater than 
     26,000 pounds, $5,000, or
       ``(C) $50,000 in the case of--
       ``(i) a truck or van with a gross vehicle weight rating 
     greater than 26,000 pounds, or
       ``(ii) any bus which has a seating capacity of at least 20 
     adults (not including the driver).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 3. ALTERNATIVE MOTOR VEHICLE CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 (relating to foreign tax credit, etc.) is amended 
     by adding at the end the following:

     ``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.

       ``(a) Allowance of Credit.--There shall be allowed as a 
     credit against the tax imposed by this chapter for the 
     taxable year an amount equal to the sum of--
       ``(1) the new qualified fuel cell motor vehicle credit 
     determined under subsection (b),
       ``(2) the new advanced lean burn technology motor vehicle 
     credit determined under subsection (c),
       ``(3) the new qualified hybrid motor vehicle credit 
     determined under subsection (d), and
       ``(4) the new qualified alternative fuel motor vehicle 
     credit determined under subsection (e).

[[Page 21412]]

       ``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified fuel cell motor vehicle credit determined under 
     this subsection with respect to a new qualified fuel cell 
     motor vehicle placed in service by the taxpayer during the 
     taxable year shall be determined in accordance with the 
     following table:

``In the case of a vehicle which has a gross vehicle wThe new qualified
                                                        fuel cell motor
                                                    vehicle credit is--
  Not more than 8,500 lbs...................................$4,000 ....

  More than 8,500 lbs but not more than 14,000 lbs.........$10,000 ....

  More than 14,000 lbs but not more than 26,000 lbs........$20,000 ....

  More than 26,000 lbs.....................................$40,000.....

       ``(2) Increase for fuel efficiency.--
       ``(A) In general.--The amount determined under paragraph 
     (1) with respect to a new qualified fuel cell motor vehicle 
     which is a passenger automobile or light truck shall be 
     increased by the additional credit amount.
       ``(B) Additional credit amount.--For purposes of 
     subparagraph (A), the additional credit amount shall be 
     determined in accordance with the following table:

``In the case of a vehicle which achieves a fuel economy (expressed as 
  a percentage of the 2002 model year city fuel economy) of--          
                                                                       
                                                         The additional
                                                          credit amount
                                                                   is--
  At least 150 percent but less than 175 percent............$1,000 ....

  At least 175 percent but less than 200 percent............$1,500 ....

  At least 200 percent but less than 225 percent............$2,000 ....

  At least 225 percent but less than 250 percent............$2,500 ....

  At least 250 percent but less than 275 percent............$3,000 ....

  At least 275 percent but less than 300 percent............$3,500 ....

  At least 300 percent......................................$4,000.....

       ``(3) New qualified fuel cell motor vehicle.--For purposes 
     of this subsection, the term `new qualified fuel cell motor 
     vehicle' means a motor vehicle--
       ``(A) which is propelled by power derived from one or more 
     cells which convert chemical energy directly into electricity 
     by combining oxygen with hydrogen fuel which is stored on 
     board the vehicle in any form and may or may not require 
     reformation prior to use,
       ``(B) which, in the case of a passenger automobile or light 
     truck, has received--
       ``(i) a certificate of conformity under the Clean Air Act 
     and meets or exceeds the equivalent qualifying California low 
     emission vehicle standard under section 243(e)(2) of the 
     Clean Air Act for that make and model year, and
       ``(ii) a certificate that such vehicle meets or exceeds the 
     Bin 5 Tier II emission standard established in regulations 
     prescribed by the Administrator of the Environmental 
     Protection Agency under section 202(i) of the Clean Air Act 
     for that make and model year vehicle,
       ``(C) the original use of which commences with the 
     taxpayer,
       ``(D) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(E) which is made by a manufacturer.
       ``(c) New Advanced Lean Burn Technology Motor Vehicle 
     Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     advanced lean burn technology motor vehicle credit determined 
     under this subsection with respect to a new advanced lean 
     burn technology motor vehicle placed in service by the 
     taxpayer during the taxable year is the credit amount 
     determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) Fuel economy.--The credit amount determined under 
     this paragraph shall be determined in accordance with the 
     following table:

``In the case of a vehicle which achieves a fuel economy (expressed as 
  a percentage of the 2002 model year city fuel economy) of--          
                                                                       
                                                                       
                                                             The credit
                                                            amount is--
  At least 125 percent but less than 150 percent..............$400 ....

  At least 150 percent but less than 175 percent..............$800 ....

  At least 175 percent but less than 200 percent............$1,200 ....

  At least 200 percent but less than 225 percent............$1,600 ....

  At least 225 percent but less than 250 percent............$2,000 ....

  At least 250 percent......................................$2,400.....

       ``(B) Conservation credit.--The amount determined under 
     subparagraph (A) with respect to a new advanced lean burn 
     technology motor vehicle shall be increased by the 
     conservation credit amount determined in accordance with the 
     following table:

``In the case of a vehicle which achieves a lifetime fuel savings 
  (expressed in gallons of gasoline) of--                              
                                                       The conservation
                                                          credit amount
                                                                   is--
  At least 1,200 but less than 1,800..........................$250 ....

  At least 1,800 but less than 2,400..........................$500 ....

  At least 2,400 but less than 3,000..........................$750 ....

  At least 3,000............................................$1,000.....

       ``(3) New advanced lean burn technology motor vehicle.--For 
     purposes of this subsection, the term `new advanced lean burn 
     technology motor vehicle' means a passenger automobile or a 
     light truck--
       ``(A) with an internal combustion engine which--
       ``(i) is designed to operate primarily using more air than 
     is necessary for complete combustion of the fuel,
       ``(ii) incorporates direct injection,
       ``(iii) achieves at least 125 percent of the 2002 model 
     year city fuel economy, and
       ``(iv) for 2004 and later model vehicles, has received a 
     certificate that such vehicle meets or exceeds--

       ``(I) in the case of a vehicle having a gross vehicle 
     weight rating of 6,000 pounds or less, the Bin 5 Tier II 
     emission standard established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle, and
       ``(II) in the case of a vehicle having a gross vehicle 
     weight rating of more than 6,000 pounds but not more than 
     8,500 pounds, the Bin 8 Tier II emission standard which is so 
     established,

       ``(B) the original use of which commences with the 
     taxpayer,
       ``(C) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(D) which is made by a manufacturer.
       ``(4) Lifetime fuel savings.--For purposes of this 
     subsection, the term `lifetime fuel savings' means, in the 
     case of any new advanced lean burn technology motor vehicle, 
     an amount equal to the excess (if any) of--
       ``(A) 120,000 divided by the 2002 model year city fuel 
     economy for the vehicle inertia weight class, over
       ``(B) 120,000 divided by the city fuel economy for such 
     vehicle.
       ``(d) New Qualified Hybrid Motor Vehicle Credit.--
       ``(1) In general.--For purposes of subsection (a), the new 
     qualified hybrid motor vehicle credit determined under this 
     subsection with respect to a new qualified hybrid motor 
     vehicle placed in service by the taxpayer during the taxable 
     year is the credit amount determined under paragraph (2).
       ``(2) Credit amount.--
       ``(A) Credit amount for passenger automobiles and light 
     trucks.--In the case of a new qualified hybrid motor vehicle 
     which is a passenger automobile or light truck and which has 
     a gross vehicle weight rating of not more than 8,500 pounds, 
     the amount determined under this paragraph is the sum of the 
     amounts determined under clauses (i) and (ii).
       ``(i) Fuel economy.--The amount determined under this 
     clause is the amount which would be determined under 
     subsection (c)(2)(A) if such vehicle were a vehicle referred 
     to in such subsection.
       ``(ii) Conservation credit.--The amount determined under 
     this clause is the amount which would be determined under 
     subsection (c)(2)(B) if such vehicle were a vehicle referred 
     to in such subsection.
       ``(B) Credit amount for other motor vehicles.--
       ``(i) In general.--In the case of any new qualified hybrid 
     motor vehicle to which subparagraph (A) does not apply, the 
     amount determined under this paragraph is the amount equal to 
     the applicable percentage of the qualified incremental hybrid 
     cost of the vehicle as certified under clause (v).
       ``(ii) Applicable percentage.--For purposes of clause (i), 
     the applicable percentage is--

       ``(I) 20 percent if the vehicle achieves an increase in 
     city fuel economy relative to a comparable vehicle of at 
     least 30 percent but less than 40 percent,
       ``(II) 30 percent if the vehicle achieves such an increase 
     of at least 40 percent but less than 50 percent, and
       ``(III) 40 percent if the vehicle achieves such an increase 
     of at least 50 percent.

       ``(iii) Qualified incremental hybrid cost.--For purposes of 
     this subparagraph, the qualified incremental hybrid cost of 
     any vehicle is equal to the amount of the excess of the 
     manufacturer's suggested retail price for such vehicle over 
     such price for a comparable vehicle, to the extent such 
     amount does not exceed--

       ``(I) $10,000, if such vehicle has a gross vehicle weight 
     rating of not more than 14,000 pounds,
       ``(II) $25,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(III) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.

       ``(iv) Comparable vehicle.--For purposes of this 
     subparagraph, the term `comparable vehicle' means, with 
     respect to any new qualified hybrid motor vehicle, any 
     vehicle which is powered solely by a gasoline or diesel 
     internal combustion engine and which is comparable in weight, 
     size, and use to such vehicle.
       ``(v) Certification.--A certification described in clause 
     (i) shall be made by the manufacturer and shall be determined 
     in accordance with guidance prescribed by the

[[Page 21413]]

     Secretary. Such guidance shall specify procedures and methods 
     for calculating fuel economy savings and incremental hybrid 
     costs.
       ``(3) New qualified hybrid motor vehicle.--For purposes of 
     this subsection--
       ``(A) In general.--The term `new qualified hybrid motor 
     vehicle' means a motor vehicle--
       ``(i) which draws propulsion energy from onboard sources of 
     stored energy which are both--

       ``(I) an internal combustion or heat engine using 
     consumable fuel, and
       ``(II) a rechargeable energy storage system,

       ``(ii) which, in the case of a vehicle to which paragraph 
     (2)(A) applies, has received a certificate of conformity 
     under the Clean Air Act and meets or exceeds the equivalent 
     qualifying California low emission vehicle standard under 
     section 243(e)(2) of the Clean Air Act for that make and 
     model year, and

       ``(I) in the case of a vehicle having a gross vehicle 
     weight rating of 6,000 pounds or less, the Bin 5 Tier II 
     emission standard established in regulations prescribed by 
     the Administrator of the Environmental Protection Agency 
     under section 202(i) of the Clean Air Act for that make and 
     model year vehicle, and
       ``(II) in the case of a vehicle having a gross vehicle 
     weight rating of more than 6,000 pounds but not more than 
     8,500 pounds, the Bin 8 Tier II emission standard which is so 
     established,

       ``(iii) which has a maximum available power of at least--

       ``(I) 4 percent in the case of a vehicle to which paragraph 
     (2)(A) applies,
       ``(II) 10 percent in the case of a vehicle which has a 
     gross vehicle weight rating or more than 8,500 pounds and not 
     than 14,000 pounds, and
       ``(III) 15 percent in the case of a vehicle in excess of 
     14,000 pounds,

       ``(iv) which, in the case of a vehicle to which paragraph 
     (2)(B) applies, has an internal combustion or heat engine 
     which has received a certificate of conformity under the 
     Clean Air Act as meeting the emission standards set in the 
     regulations prescribed by the Administrator of the 
     Environmental Protection Agency for 2004 through 2007 model 
     year diesel heavy duty engines or ottocycle heavy duty 
     engines, as applicable,
       ``(v) the original use of which commences with the 
     taxpayer,
       ``(vi) which is acquired for use or lease by the taxpayer 
     and not for resale, and
       ``(vii) which is made by a manufacturer.

     Such term shall not include any vehicle which is not a 
     passenger automobile or light truck if such vehicle has a 
     gross vehicle weight rating of less than 8,500 pounds.
       ``(B) Consumable fuel.--For purposes of subparagraph 
     (A)(i)(I), the term `consumable fuel' means any solid, 
     liquid, or gaseous matter which releases energy when consumed 
     by an auxiliary power unit.
       ``(C) Maximum available power.--
       ``(i) Certain passenger automobiles and light trucks.--In 
     the case of a vehicle to which paragraph (2)(A) applies, the 
     term `maximum available power' means the maximum power 
     available from the rechargeable energy storage system, during 
     a standard 10 second pulse power or equivalent test, divided 
     by such maximum power and the SAE net power of the heat 
     engine.
       ``(ii) Other motor vehicles.--In the case of a vehicle to 
     which paragraph (2)(B) applies, the term `maximum available 
     power' means the maximum power available from the 
     rechargeable energy storage system, during a standard 10 
     second pulse power or equivalent test, divided by the 
     vehicle's total traction power. For purposes of the preceding 
     sentence, the term `total traction power' means the sum of 
     the peak power from the rechargeable energy storage system 
     and the heat engine peak power of the vehicle, except that if 
     such storage system is the sole means by which the vehicle 
     can be driven, the total traction power is the peak power of 
     such storage system.
       ``(e) New Qualified Alternative Fuel Motor Vehicle 
     Credit.--
       ``(1) Allowance of credit.--Except as provided in paragraph 
     (5), the new qualified alternative fuel motor vehicle credit 
     determined under this subsection is an amount equal to the 
     applicable percentage of the incremental cost of any new 
     qualified alternative fuel motor vehicle placed in service by 
     the taxpayer during the taxable year.
       ``(2) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage with respect to any new 
     qualified alternative fuel motor vehicle is--
       ``(A) 40 percent, plus
       ``(B) 30 percent, if such vehicle--
       ``(i) has received a certificate of conformity under the 
     Clean Air Act and meets or exceeds the most stringent 
     standard available for certification under the Clean Air Act 
     for that make and model year vehicle (other than a zero 
     emission standard), or
       ``(ii) has received an order certifying the vehicle as 
     meeting the same requirements as vehicles which may be sold 
     or leased in California and meets or exceeds the most 
     stringent standard available for certification under the 
     State laws of California (enacted in accordance with a waiver 
     granted under section 209(b) of the Clean Air Act) for that 
     make and model year vehicle (other than a zero emission 
     standard).

     For purposes of the preceding sentence, in the case of any 
     new qualified alternative fuel motor vehicle which has a 
     gross vehicle weight rating of more than 14,000 pounds, the 
     most stringent standard available shall be such standard 
     available for certification on the date of this act.
       ``(3) Incremental cost.--For purposes of this subsection, 
     the incremental cost of any new qualified alternative fuel 
     motor vehicle is equal to the amount of the excess of the 
     manufacturer's suggested retail price for such vehicle over 
     such price for a gasoline or diesel fuel motor vehicle of the 
     same model, to the extent such amount does not exceed--
       ``(A) $5,000, if such vehicle has a gross vehicle weight 
     rating of not more than 8,500 pounds,
       ``(B) $10,000, if such vehicle has a gross vehicle weight 
     rating of more than 8,500 pounds but not more than 14,000 
     pounds,
       ``(C) $25,000, if such vehicle has a gross vehicle weight 
     rating of more than 14,000 pounds but not more than 26,000 
     pounds, and
       ``(D) $40,000, if such vehicle has a gross vehicle weight 
     rating of more than 26,000 pounds.
       ``(4) New qualified alternative fuel motor vehicle.--For 
     purposes of this subsection--
       ``(A) In general.--The term `new qualified alternative fuel 
     motor vehicle' means any motor vehicle--
       ``(i) which is only capable of operating on an alternative 
     fuel,
       ``(ii) the original use of which commences with the 
     taxpayer,
       ``(iii) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(iv) which is made by a manufacturer.
       ``(B) Alternative fuel.--The term `alternative fuel' means 
     compressed natural gas, liquefied natural gas, liquefied 
     petroleum gas, hydrogen, and any liquid at least 85 percent 
     of the volume of which consists of methanol.
       ``(5) Credit for mixed-fuel vehicles.--
       ``(A) In general.--In the case of a mixed-fuel vehicle 
     placed in service by the taxpayer during the taxable year, 
     the credit determined under this subsection is an amount 
     equal to--
       ``(i) in the case of a 75/25 mixed-fuel vehicle, 70 percent 
     of the credit which would have been allowed under this 
     subsection if such vehicle was a qualified alternative fuel 
     motor vehicle, and
       ``(ii) in the case of a 90/10 mixed-fuel vehicle, 90 
     percent of the credit which would have been allowed under 
     this subsection if such vehicle was a qualified alternative 
     fuel motor vehicle.
       ``(B) Mixed-fuel vehicle.--For purposes of this subsection, 
     the term `mixed-fuel vehicle' means any motor vehicle 
     described in subparagraph (C) or (D) of paragraph (3), 
     which--
       ``(i) is certified by the manufacturer as being able to 
     perform efficiently in normal operation on a combination of 
     an alternative fuel and a petroleum-based fuel,
       ``(ii) either--

       ``(I) has received a certificate of conformity under the 
     Clean Air Act, or
       ``(II) has received an order certifying the vehicle as 
     meeting the same requirements as vehicles which may be sold 
     or leased in California and meets or exceeds the low emission 
     vehicle standard under section 88.105-94 of title 40, Code of 
     Federal Regulations, for that make and model year vehicle,

       ``(iii) the original use of which commences with the 
     taxpayer,
       ``(iv) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(v) which is made by a manufacturer.
       ``(C) 75/25 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `75/25 mixed-fuel vehicle' means a 
     mixed-fuel vehicle which operates using at least 75 percent 
     alternative fuel and not more than 25 percent petroleum-based 
     fuel.
       ``(D) 90/10 mixed-fuel vehicle.--For purposes of this 
     subsection, the term `90/10 mixed-fuel vehicle' means a 
     mixed-fuel vehicle which operates using at least 90 percent 
     alternative fuel and not more than 10 percent petroleum-based 
     fuel.
       ``(f) Limitation on Number of New Qualified Hybrid and 
     Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
       ``(1) In general.--In the case of a qualified vehicle sold 
     during the phaseout period, only the applicable percentage of 
     the credit otherwise allowable under subsection (c) or (d) 
     shall be allowed.
       ``(2) Phaseout period.--For purposes of this subsection, 
     the phaseout period is the period beginning with the second 
     calendar quarter following the calendar quarter which 
     includes the first date on which the number of qualified 
     vehicles manufactured by the manufacturer of the vehicle 
     referred to in paragraph (1) sold for use in the United 
     States after the date of the enactment of this section is at 
     least 80,000.
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the applicable percentage is--
       ``(A) 50 percent for the first 2 calendar quarters of the 
     phaseout period,
       ``(B) 25 percent for the 3d and 4th calendar quarters of 
     the phaseout period, and

[[Page 21414]]

       ``(C) 0 percent for each calendar quarter thereafter.
       ``(4) Controlled groups.--
       ``(A) In general.--For purposes of this subsection, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 or subsection (m) or (o) of section 414 
     shall be treated as a single manufacturer.
       ``(B) Inclusion of foreign corporations.--For purposes of 
     subparagraph (A), in applying subsections (a) and (b) of 
     section 52 to this section, section 1563 shall be applied 
     without regard to subsection (b)(2)(C) thereof.
       ``(5) Qualified vehicle.--For purposes of this subsection, 
     the term `qualified vehicle' means any new qualified hybrid 
     motor vehicle and any new advanced lean burn technology motor 
     vehicle.
       ``(g) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27 and 30 for the taxable year.
       ``(h) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(2) Other terms.--The terms `automobile', `passenger 
     automobile', `light truck', and `manufacturer' have the 
     meanings given such terms in regulations prescribed by the 
     Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(3) 2002 model year city fuel economy.--
       ``(A) In general.--The 2002 model year city fuel economy 
     with respect to a vehicle shall be determined in accordance 
     with the following tables:
       ``(i) In the case of a passenger automobile:
                                               The 2002 model year city
``If vehicle inertia weight class is:                  fuel economy is:
  1,500 or 1,750 lbs......................................45.2 mpg ....

  2,000 lbs...............................................39.6 mpg ....

  2,250 lbs...............................................35.2 mpg ....

  2,500 lbs...............................................31.7 mpg ....

  2,750 lbs...............................................28.8 mpg ....

  3,000 lbs...............................................26.4 mpg ....

  3,500 lbs...............................................22.6 mpg ....

  4,000 lbs...............................................19.8 mpg ....

  4,500 lbs...............................................17.6 mpg ....

  5,000 lbs...............................................15.9 mpg ....

  5,500 lbs...............................................14.4 mpg ....

  6,000 lbs...............................................13.2 mpg ....

  6,500 lbs...............................................12.2 mpg ....

  7,000 to 8,500 lbs......................................11.3 mpg.....

       ``(ii) In the case of a light truck:

                                               The 2002 model year city
``If vehicle inertia weight class is:                  fuel economy is:
  1,500 or 1,750 lbs......................................39.4 mpg ....

  2,000 lbs...............................................35.2 mpg ....

  2,250 lbs...............................................31.8 mpg ....

  2,500 lbs...............................................29.0 mpg ....

  2,750 lbs...............................................26.8 mpg ....

  3,000 lbs...............................................24.9 mpg ....

  3,500 lbs...............................................21.8 mpg ....

  4,000 lbs...............................................19.4 mpg ....

  4,500 lbs...............................................17.6 mpg ....

  5,000 lbs...............................................16.1 mpg ....

  5,500 lbs...............................................14.8 mpg ....

  6,000 lbs...............................................13.7 mpg ....

  6,500 lbs...............................................12.8 mpg ....

  7,000 to 8,500 lbs......................................12.1 mpg.....

       ``(B) Vehicle inertia weight class.--For purposes of 
     subparagraph (A), the term `vehicle inertia weight class' has 
     the same meaning as when defined in regulations prescribed by 
     the Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(4) Fuel economy.--Fuel economy with respect to any 
     vehicle shall be measured under rules similar to the rules 
     under section 4064(c).
       ``(5)  Reduction in basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(6) No double benefit.--The amount of any deduction or 
     credit allowable under this chapter (other than the credits 
     allowable under this section and section 30) shall be reduced 
     by the amount of credit allowed under subsection (a) for such 
     vehicle for the taxable year.
       ``(7) Recapture.--The Secretary shall, by regulations, 
     provide for recapturing the benefit of any credit allowable 
     under subsection (a) with respect to any property which 
     ceases to be property eligible for such credit (including 
     recapture in the case of a lease period of less than the 
     economic life of a vehicle).
       ``(8) Property used outside united states, etc., not 
     qualified.--No credit shall be allowed under subsection (a) 
     with respect to any property referred to in section 50(b) or 
     with respect to the portion of the cost of any property taken 
     into account under section 179.
       ``(9) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(10) Business carryovers allowed.--If the credit 
     allowable under subsection (a) for a taxable year exceeds the 
     limitation under subsection (g) for such taxable year, such 
     excess (to the extent of the credit allowable with respect to 
     property subject to the allowance for depreciation) shall be 
     allowed as a credit carryback and carryforward under rules 
     similar to the rules of section 39.
       ``(11) Interaction with motor vehicle safety standards.--
     Unless otherwise provided in this section, a motor vehicle 
     shall not be considered eligible for a credit under this 
     section unless such vehicle is in compliance with the motor 
     vehicle safety provisions of sections 30101 through 30169 of 
     title 49, United States Code.
       ``(i) Regulations.--
       ``(1) In general.--The Secretary shall promulgate such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(2) Determination of motor vehicle eligibility.--The 
     Secretary, after coordination with the Secretary of 
     Transportation and the Administrator of the Environmental 
     Protection Agency, shall prescribe such regulations as 
     necessary to determine whether a motor vehicle meets the 
     requirements to be eligible for a credit under this section.
       ``(j) Termination.--This section shall not apply to any 
     property placed in service after--
       ``(1) in the case of a new qualified alternative fuel motor 
     vehicle, December 31, 2006,
       ``(2) in the case of a new advanced lean burn technology 
     motor vehicle or a new qualified hybrid motor vehicle, 
     December 31, 2008, and
       ``(3) in the case of a new qualified fuel cell motor 
     vehicle, December 31, 2012.''.
       (b) Conforming Amendments.--
       (1) Section 30(d) (relating to special rules) is amended by 
     adding at the end the following new paragraphs:
       ``(5) No double benefit.--No credit shall be allowed under 
     this section for any motor vehicle for which a credit is also 
     allowed under section 30B.''.
       (2) Section 1016(a) 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:
       ``(29) to the extent provided in section 30B(h)(5).''.
       (3) Section 6501(m) is amended by inserting ``30B(h)(9),'' 
     after ``30(d)(4),''.
       (4) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 30A the following:

``Sec. 30B. Alternative motor vehicle credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act, in taxable years ending after such 
     date.
       (d) Sticker Information Required at Retail Sale.--
       (1) In general.--The Secretary of the Treasury shall issue 
     regulations under which each qualified vehicle sold at retail 
     shall display a notice--
       (A) that such vehicle is a qualified vehicle, and
       (B) that the buyer may not benefit from the credit allowed 
     under section 30B of the Internal Revenue Code of 1986 if 
     such buyer has insufficient tax liability.
       (2) Qualified vehicle.--For purposes of paragraph (1), the 
     term ``qualified vehicle'' means a vehicle with respect to 
     which a credit is allowed under section 30B of the Internal 
     Revenue Code of 1986.

     SEC. 4. SMALL ETHANOL PRODUCER CREDIT.

       (a) Allocation of Alcohol Fuels Credit to Patrons of a 
     Cooperative.--Section 40(g) (relating to definitions and 
     special

[[Page 21415]]

     rules for eligible small ethanol producer credit) is amended 
     by adding at the end the following new paragraph:
       ``(6) Allocation of small ethanol producer credit to 
     patrons of cooperative.--
       ``(A) Election to allocate.--
       ``(i) In general.--In the case of a cooperative 
     organization described in section 1381(a), any portion of the 
     credit determined under subsection (a)(3) for the taxable 
     year may, at the election of the organization, be apportioned 
     pro rata among patrons of the organization on the basis of 
     the quantity or value of business done with or for such 
     patrons for the taxable year.
       ``(ii) Form and effect of election.--An election under 
     clause (i) for any taxable year shall be made on a timely 
     filed return for such year. Such election, once made, shall 
     be irrevocable for such taxable year.
       ``(B) Treatment of organizations and patrons.--The amount 
     of the credit apportioned to patrons under subparagraph (A)--
       ``(i) shall not be included in the amount determined under 
     subsection (a) with respect to the organization for the 
     taxable year, and
       ``(ii) shall be included in the amount determined under 
     subsection (a) for the taxable year of each patron for which 
     the patronage dividends for the taxable year described in 
     subparagraph (A) are included in gross income.
       ``(C) Special rule.--If the amount of a credit which has 
     been apportioned to any patron under this paragraph is 
     decreased for any reason--
       ``(i) such amount shall not increase the tax imposed on 
     such patron, and
       ``(ii) the tax imposed by this chapter on such organization 
     shall be increased by such amount.

     The increase under clause (ii) shall not be treated as tax 
     imposed by this chapter for purposes of determining the 
     amount of any credit under this chapter or for purposes of 
     section 55.''.
       (b) Definition of Small Ethanol Producer.--Section 40(g) 
     (relating to definitions and special rules for eligible small 
     ethanol producer credit) is amended by striking 
     ``30,000,000'' each place it appears and inserting 
     ``60,000,000''.
       (c) Conforming Amendment.--Section 1388 (relating to 
     definitions and special rules for cooperative organizations) 
     is amended by adding at the end the following new subsection:
       ``(k) Cross Reference.--

  ``For provisions relating to the apportionment of the alcohol fuels 
credit between cooperative organizations and their patrons, see section 
40(g)(6).''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.

     SEC. 5. INCENTIVES FOR BIODIESEL.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 (relating to business related credits) is amended 
     by inserting after section 40 the following new section:

     ``SEC. 40A. BIODIESEL USED AS FUEL.

       ``(a) General Rule.--For purposes of section 38, the 
     biodiesel fuels credit determined under this section for the 
     taxable year is an amount equal to the sum of--
       ``(1) the biodiesel mixture credit, plus
       ``(2) the biodiesel credit.
       ``(b) Definition of Biodiesel Mixture Credit and Biodiesel 
     Credit.--For purposes of this section--
       ``(1) Biodiesel mixture credit.--
       ``(A) In general.--The biodiesel mixture credit of any 
     taxpayer for any taxable year is 50 cents for each gallon of 
     biodiesel used by the taxpayer in the production of a 
     qualified biodiesel mixture.
       ``(B) Qualified biodiesel mixture.--The term `qualified 
     biodiesel mixture' means a mixture of biodiesel and a taxable 
     fuel (within the meaning of section 4083(a)(1)) which--
       ``(i) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel, or
       ``(ii) is used as a fuel by the taxpayer producing such 
     mixture.
       ``(C) Sale or use must be in trade or business, etc.--
     Biodiesel used in the production of a qualified biodiesel 
     mixture shall be taken into account--
       ``(i) only if the sale or use described in subparagraph (B) 
     is in a trade or business of the taxpayer, and
       ``(ii) for the taxable year in which such sale or use 
     occurs.
       ``(D) Casual off-farm production not eligible.--No credit 
     shall be allowed under this section with respect to any 
     casual off-farm production of a qualified biodiesel mixture.
       ``(2) Biodiesel credit.--
       ``(A) In general.--The biodiesel credit of any taxpayer for 
     any taxable year is 50 cents for each gallon of biodiesel 
     which is not in a mixture and which during the taxable year--
       ``(i) is used by the taxpayer as a fuel in a trade or 
     business, or
       ``(ii) is sold by the taxpayer at retail to a person and 
     placed in the fuel tank of such person's vehicle.
       ``(B) User credit not to apply to biodiesel sold at 
     retail.--No credit shall be allowed under subparagraph (A)(i) 
     with respect to any biodiesel which was sold in a retail sale 
     described in subparagraph (A)(ii).
       ``(3) Credit for agri-biodiesel.--In the case of any 
     biodiesel which is agri-biodiesel, paragraphs (1)(A) and 
     (2)(A) shall be applied by substituting `$1.00' for `50 
     cents'.
       ``(4) Certification for biodiesel.--No credit shall be 
     allowed under this section unless the taxpayer obtains a 
     certification (in such form and manner as prescribed by the 
     Secretary) from the producer of the biodiesel which 
     identifies the product produced and the percentage of 
     biodiesel and agri-biodiesel in the product.
       ``(c) Coordination With Credit Against Excise Tax.--The 
     amount of the credit determined under this section with 
     respect to any biodiesel shall be properly reduced to take 
     into account any benefit provided with respect to such 
     biodiesel solely by reason of the application of section 
     6426.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Biodiesel.--The term `biodiesel' means the monoalkyl 
     esters of long chain fatty acids derived from plant or animal 
     matter which meet--
       ``(A) the registration requirements for fuels and fuel 
     additives established by the Environmental Protection Agency 
     under section 211 of the Clean Air Act (42 U.S.C. 7545), and
       ``(B) the requirements of the American Society of Testing 
     and Materials D6751.
       ``(2) Agri-biodiesel.--The term `agri-biodiesel' means 
     biodiesel derived solely from virgin oils, including esters 
     derived from virgin vegetable oils from corn, soybeans, 
     sunflower seeds, cottonseeds, canola, crambe, rapeseeds, 
     safflowers, flaxseeds, rice bran, and mustard seeds, and from 
     animal fats.
       ``(3) Mixture or biodiesel not used as a fuel, etc.--
       ``(A) Mixtures.--If--
       ``(i) any credit was determined under this section with 
     respect to biodiesel used in the production of any qualified 
     biodiesel mixture, and
       ``(ii) any person--

       ``(I) separates the biodiesel from the mixture, or

       ``(II) without separation, uses the mixture other than as a 
     fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(1)(A) 
     and the number of gallons of such biodiesel in such mixture.
       ``(B) Biodiesel.--If--
       ``(i) any credit was determined under this section with 
     respect to the retail sale of any biodiesel, and
       ``(ii) any person mixes such biodiesel or uses such 
     biodiesel other than as a fuel,
     then there is hereby imposed on such person a tax equal to 
     the product of the rate applicable under subsection (b)(2)(A) 
     and the number of gallons of such biodiesel.
       ``(C) Applicable laws.--All provisions of law, including 
     penalties, shall, insofar as applicable and not inconsistent 
     with this section, apply in respect of any tax imposed under 
     subparagraph (A) or (B) as if such tax were imposed by 
     section 4081 and not by this chapter.
       ``(4) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(e) Termination.--This section shall not apply to any 
     sale or use after December 31, 2005.''.
       (b) Credit Treated as Part of General Business Credit.--
     Section 38(b) (relating to current year business credit) is 
     amended by striking ``plus'' at the end of paragraph (16), by 
     striking the period at the end of paragraph (17) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(18) the biodiesel fuels credit determined under section 
     40A(a).''.
       (c) Conforming Amendments.--
       (1)(A) Section 87 is amended to read as follows:

     ``SEC. 87. ALCOHOL AND BIODIESEL FUELS CREDITS.

       ``Gross income includes--
       ``(1) the amount of the alcohol fuels credit determined 
     with respect to the taxpayer for the taxable year under 
     section 40(a), and
       ``(2) the biodiesel fuels credit determined with respect to 
     the taxpayer for the taxable year under section 40A(a).''.
       (B) The item relating to section 87 in the table of 
     sections for part II of subchapter B of chapter 1 is amended 
     by striking ``fuel credit'' and inserting ``and biodiesel 
     fuels credits''.
       (2) Section 196(c) is amended by striking ``and'' at the 
     end of paragraph (9), by striking the period at the end of 
     paragraph (10) and inserting ``, and'', and by adding at the 
     end the following new paragraph:
       ``(11) the biodiesel fuels credit determined under section 
     40A(a).''.
       (3) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 is amended by adding after the item 
     relating to section 40 the following new item:

``Sec. 40A. Biodiesel used as fuel.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel produced, and sold or used, after 
     December 31, 2003, in taxable years ending after such date.

     SEC. 6. ALCOHOL FUEL AND BIODIESEL MIXTURES EXCISE TAX 
                   CREDIT.

       (a) In General.--Subchapter B of chapter 65 (relating to 
     rules of special application) is amended by inserting after 
     section 6425 the following new section:

[[Page 21416]]



     ``SEC. 6426. CREDIT FOR ALCOHOL FUEL AND BIODIESEL MIXTURES.

       ``(a) Allowance of Credits.--There shall be allowed as a 
     credit against the tax imposed by section 4081 an amount 
     equal to the sum of--
       ``(1) the alcohol fuel mixture credit, plus
       ``(2) the biodiesel mixture credit.
       ``(b) Alcohol Fuel Mixture Credit.--
       ``(1) In general.--For purposes of this section, the 
     alcohol fuel mixture credit is the product of the applicable 
     amount and the number of gallons of alcohol used by the 
     taxpayer in producing any alcohol fuel mixture for sale or 
     use in a trade or business of the taxpayer.
       ``(2) Applicable amount.--For purposes of this subsection--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the applicable amount is 52 cents (51 cents in the case of 
     any sale or use after 2004).
       ``(B) Mixtures not containing ethanol.--In the case of an 
     alcohol fuel mixture in which none of the alcohol consists of 
     ethanol, the applicable amount is 60 cents.
       ``(3) Alcohol fuel mixture.--For purposes of this 
     subsection, the term `alcohol fuel mixture' means a mixture 
     of alcohol and a taxable fuel which--
       ``(A) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel,
       ``(B) is used as a fuel by the taxpayer producing such 
     mixture, or
       ``(C) is removed from the refinery by a person producing 
     such mixture.
       ``(4) Other definitions.--For purposes of this subsection--
       ``(A) Alcohol.--The term `alcohol' includes methanol and 
     ethanol but does not include--
       ``(i) alcohol produced from petroleum, natural gas, or coal 
     (including peat), or
       ``(ii) alcohol with a proof of less than 190 (determined 
     without regard to any added denaturants).

     Such term also includes an alcohol gallon equivalent of ethyl 
     tertiary butyl ether or other ethers produced from such 
     alcohol.
       ``(B) Taxable fuel.--The term `taxable fuel' has the 
     meaning given such term by section 4083(a)(1).
       ``(5) Termination.--This subsection shall not apply to any 
     sale, use, or removal for any period after December 31, 2010.
       ``(c) Biodiesel Mixture Credit.--
       ``(1) In general.--For purposes of this section, the 
     biodiesel mixture credit is the product of the applicable 
     amount and the number of gallons of biodiesel used by the 
     taxpayer in producing any biodiesel mixture for sale or use 
     in a trade or business of the taxpayer.
       ``(2) Applicable amount.--For purposes of this subsection--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the applicable amount is 50 cents.
       ``(B) Amount for agri-biodiesel.--In the case of any 
     biodiesel which is agri-biodiesel, the applicable amount is 
     $1.00.
       ``(3) Biodiesel mixture.--For purposes of this section, the 
     term `biodiesel mixture' means a mixture of biodiesel and a 
     taxable fuel which--
       ``(A) is sold by the taxpayer producing such mixture to any 
     person for use as a fuel,
       ``(B) is used as a fuel by the taxpayer producing such 
     mixture, or
       ``(C) is removed from the refinery by a person producing 
     such mixture.
       ``(4) Certification for biodiesel.--No credit shall be 
     allowed under this section unless the taxpayer obtains a 
     certification (in such form and manner as prescribed by the 
     Secretary) from the producer of the biodiesel which 
     identifies the product produced and the percentage of 
     biodiesel and agri-biodiesel in the product.
       ``(5) Other definitions.--Any term used in this subsection 
     which is also used in section 40A shall have the meaning 
     given such term by section 40A.
       ``(6) Termination.--This subsection shall not apply to any 
     sale, use, or removal for any period after December 31, 2005.
       ``(d) Mixture Not Used as a Fuel, Etc.--
       ``(1) Imposition of tax.--If--
       ``(A) any credit was determined under this section with 
     respect to alcohol or biodiesel used in the production of any 
     alcohol fuel mixture or biodiesel mixture, respectively, and
       ``(B) any person--
       ``(i) separates the alcohol or biodiesel from the mixture, 
     or
       ``(ii) without separation, uses the mixture other than as a 
     fuel,

     then there is hereby imposed on such person a tax equal to 
     the product of the applicable amount and the number of 
     gallons of such alcohol or biodiesel.
       ``(2) Applicable laws.--All provisions of law, including 
     penalties, shall, insofar as applicable and not inconsistent 
     with this section, apply in respect of any tax imposed under 
     paragraph (1) as if such tax were imposed by section 4081 and 
     not by this section.
       ``(e) Coordination With Exemption From Excise Tax.--Rules 
     similar to the rules under section 40(c) shall apply for 
     purposes of this section.''.
       (b) Registration Requirement.--Section 4101(a) (relating to 
     registration) is amended by inserting ``and every person 
     producing biodiesel (as defined in section 40A(d)(1)) or 
     alcohol (as defined in section 6426(b)(4)(A))'' after 
     ``4091''.
       (c) Additional Amendments.--
       (1) Section 40(c) is amended by striking ``or section 
     4091(c)'' and inserting ``section 4091(c), or section 6426''.
       (2) Section 40(e)(1) is amended--
       (A) by striking ``2007'' in subparagraph (A) and inserting 
     ``2010'', and
       (B) by striking ``2008'' in subparagraph (B) and inserting 
     ``2011''.
       (3) Section 40(h) is amended--
       (A) by striking ``2007'' in paragraph (1) and inserting 
     ``2010'', and
       (B) by striking ``, 2006, or 2007'' in the table contained 
     in paragraph (2) and inserting ``through 2010''.
       (4)(A) Subpart C of part III of subchapter A of chapter 32 
     is amended by adding at the end the following new section:

     ``SEC. 4104. INFORMATION REPORTING FOR PERSONS CLAIMING 
                   CERTAIN TAX BENEFITS.

       ``(a) In General.--The Secretary shall require any person 
     claiming tax benefits under the provisions of section 34, 40, 
     40A, 4041(b)(2), 4041(k), 4081(c), 6426, or 6427(f) to file a 
     quarterly return (in such manner as the Secretary may 
     prescribe) providing such information relating to such 
     benefits and the coordination of such benefits as the 
     Secretary may require to ensure the proper administration and 
     use of such benefits.
       ``(b) Enforcement.--With respect to any person described in 
     subsection (a) and subject to registration requirements under 
     this title, rules similar to rules of section 4222(c) shall 
     apply with respect to any requirement under this section.''.
       (B) The table of sections for subpart C of part III of 
     subchapter A of chapter 32 is amended by adding at the end 
     the following new item:

``Sec. 4104. Information reporting for persons claiming certain tax 
              benefits.''.
       (5) Section 6427(i)(3) is amended--
       (A) by adding at the end of subparagraph (A) the following 
     new flush sentence:
     ``In the case of an electronic claim, this subparagraph shall 
     be applied without regard to clause (i).'', and
       (B) by striking ``20 days of the date of the filing of such 
     claim'' in subparagraph (B) and inserting ``45 days of the 
     date of the filing of such claim (20 days in the case of an 
     electronic claim)''.
       (6) Section 9503(b)(1) is amended by adding at the end the 
     following new flush sentence:

     ``For purposes of this paragraph, taxes received under 
     sections 4041 and 4081 shall be determined without reduction 
     for credits under section 6426.''.
       (d) Clerical Amendment.--The table of sections for 
     subchapter B of chapter 65 is amended by inserting after the 
     item relating to section 6425 the following new item:

``Sec. 6426. Credit for alcohol fuel and biodiesel mixtures.''.

       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to fuel 
     sold, used, or removed after December 31, 2003.
       (2) Subsection (c)(4).--The amendments made by subsection 
     (c)(4) shall take effect on January 1, 2004.
       (3) Subsection (c)(5).--The amendments made by subsection 
     (c)(5) shall apply to claims filed after December 31, 2004.
       (f) Format for Filing.--The Secretary of the Treasury shall 
     prescribe the electronic format for filing claims described 
     in section 6427(i)(3)(B) of the Internal Revenue Code of 1986 
     (as amended by subsection (c)(5)(A)) not later than December 
     31, 2004.

     SEC. 7. NONAPPLICATION OF EXPORT EXEMPTION TO DELIVERY OF 
                   FUEL TO MOTOR VEHICLES REMOVED FROM UNITED 
                   STATES.

       (a) In General.--Section 4221(d)(2) (defining export) is 
     amended by adding at the end the following new sentence: 
     ``Such term does not include the delivery of a taxable fuel 
     (as defined in section 4083(a)(1)) into a fuel tank of a 
     motor vehicle which is shipped or driven out of the United 
     States.''.
       (b) Conforming Amendments.--
       (1) Section 4041(g) (relating to other exemptions) is 
     amended by adding at the end the following new sentence: 
     ``Paragraph (3) shall not apply to the sale for delivery of a 
     liquid into a fuel tank of a motor vehicle which is shipped 
     or driven out of the United States.''.
       (2) Clause (iv) of section 4081(a)(1)(A) (relating to tax 
     on removal, entry, or sale) is amended by inserting ``or at a 
     duty-free sales enterprise (as defined in section 555(b)(8) 
     of the Tariff Act of 1930)'' after ``section 4101''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or deliveries made after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. ALLEN:
  S. 2918. A bill to amend the Internal Revenue Code of 1986 to provide 
that distributions from an individual retirement plan, a section 401(k) 
plan, or a section 403(b) contract shall not be includible in gross 
income to the extent used to pay long-term care insurance premiums; to 
the Committee on Finance.
  Mr. ALLEN. Mr. President, I rise to bring the Senate's attention to a 
bill I

[[Page 21417]]

introduced today, the Long-Term Care Act of 2004.
  Baby boomers will begin to turn 65 years old in 2010 and by 2030, all 
77 million baby boomers will have reached retirement age and the over 
65 population will have doubled. The practicality of these conditions 
will require the Federal Government and most State governments to spend 
more money on health care. Presently, Federal and State governments are 
spending billions of dollars to ensure the health and well being of our 
fellow citizens.
  In one sector of the health care arena where costs are dramatically 
rising is in the area of long-term care. In 2000, spending on long-term 
care was estimated at $123.1 billion and it is expected to triple to 
$346.1 billion by 2040. Currently, 70 percent of long-term care costs 
are spent on nursing home care. The average cost of nursing home care 
is $178 per day or $60,000 per year. That is a significant burden on 
Federal and State governments as well as the thousands of individuals 
who pay for that care out of pocket.
  In addition, almost 75 percent of nursing home care is publicly 
funded. Medicaid spends about 58.7 percent on long-term care while 
Medicare spends 14.7 percent. According to the Council for Affordable 
Health Insurance, by the year 2030, Medicaid's nursing home 
expenditures are expected to reach $130 billion a year.
  If more people purchased private long-term care insurance, we could 
reduce Medicaid's future institutional-care expenses by more than $40 
billion each year, while giving those who are insured alternatives to 
nursing homes: including home care, adult day care, foster care and 
assisted living. Congress has taken steps to give individuals more 
power to pay for their health care services such as long-term care. One 
such outstanding measure was the creation of Health Savings Accounts 
(HSAs).
  Last year, I was pleased to support the passage of the Medicare 
Modernization Act. This landmark legislation created Health Savings 
Accounts, which are a new way that people can pay for unreimbursed 
medical expenses such as deductibles, co-payments, and services not 
covered by insurance like long-term care. Eligible individuals can 
establish and fund these accounts when they have a qualifying high 
deductible health plan and no other health plan, with some exceptions. 
The beauty of these plans is that they have tax advantages such as 
deductible contributions; tax-exempt withdrawals if the individual uses 
the money for medical expenses; and tax-exempt account earnings.
  I am confident that with the creation of Health Savings Accounts, 
individuals and families will be encouraged to set money aside for 
their health care expenses and give individuals the means to pay for 
health care services of their own choosing, without being constrained 
by insurers or employers. Unfortunately, Health Savings Accounts are 
relatively new and most individuals will not have the built up funds in 
their HSA to pay for a number of costly health care expenses such as 
long-term care insurance and that is why we need to provide other 
options to help pay for this important investment.
  Currently, thousands of Virginians and millions of Americans are 
saving in their retirement plans to have a comfortable life once they 
become seniors, be it IRA, 401(k), and 403(b) accounts. These savings 
plans help prepare individuals for their future retirement or any 
unforeseen circumstance that may arise. Indeed, over 43 million 
Americans own IRAs with total savings of $2.5 trillion, while more than 
47 million Americans have 401(k) accounts with $1.8 trillion saved. In 
addition, 6.4 million Americans have 403(b) accounts, amounting to over 
$590 billion saved.
  These are untapped funds that individuals should be allowed to use to 
help pay for their future health care needs. Current tax law and some 
retirement plans allow individuals, in extreme circumstances, to 
withdraw funds from their retirement accounts, but more often than not, 
a 10 percent excise tax applies for early withdrawal. In my opinion, 
that tax precludes the ability or desirability of individuals to 
provide for their and their families well-being and that is why I have 
introduced legislation to provide a new health care option to help 
address this unfortunate circumstance.
  My legislation, the Long-Term Care Act of 2004 will allow individuals 
to use their IRAs, 401(k), and 403(b) plans to purchase long-term care 
insurance with pretax dollars at any age and without early withdrawal 
penalty. Under the Long-Term Care Act, the consumer has the option to 
purchase long-term care insurance at the most appropriate amounts for 
their own needs and their spouses.
  Today, only six percent of Americans own a long-term care policy. One 
of the reasons behind this dismally low figure is that individuals wait 
too long to purchase long-term care insurance. In fact, purchasing 
long-term care insurance at age 65 is about twice expensive as 
purchasing it age 55. That is why we must encourage individuals to plan 
for their future health care needs and purchase long-term care 
insurance at an early age. By purchasing long-term care insurance at a 
younger age, individuals will be saving money in the long run and not 
depleting their life savings.
  Our country is heading towards a demographic melt down on long-term 
care costs. It is simply unsustainable for individuals and the 
government to maintain the current rate of spending without further 
endangering the state of health care in the United States.
  Preparing for future costs of health care is something that every 
American should be doing. Long-term care insurance is one way for 
Americans to plan for periods of extended disability without burdening 
their families, going bankrupt or relying on government assistance.
  Every American should be preparing for future health care costs and 
it is important that we encourage people to take responsibility today 
for those costs, be it with the purchase of long-term care insurance or 
investment in a Health Savings Account. If Virginians and Americans 
fail to act, it will result in an increased and unsustainable financial 
burden on the Federal Government and taxpayers.
  My legislation, the Long-Term Care Act of 2004, is a commonsense 
approach that will encourage individuals to plan for their future 
health care needs and help make long-term care insurance more 
affordable. While this may not be the solution for some people, it is 
another option for the millions of Virginians and Americans to help 
provide for their health and well-being or the health and well-being of 
loved ones. I look forward to the Senate's action on this legislation 
early on in the 109th Congress because it not only encourages Americans 
to plan for their future health needs but will also help sustain the 
viability of our Nation's health care system.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Daschle):
  S. 2919. A bill to amend the Internal Revenue Code of 1986 to provide 
funding for Indian tribal prison facilities, and for other purposes; to 
the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to talk about a crisis 
occurring today in Indian country--and offer a solution. This crisis is 
not something new. It has been decades in the making. For too long we 
have neglected to adequately address this issue. This crisis is the 
condition of Indian jails.
  We held a hearing on the Finance Committee this fall to bring 
attention to the problem. We heard testimony from the Inspector General 
of the Interior Department, Mr. Earl Devaney. He issued a report that 
was absolutely shocking. Mr. Devaney said the conditions of Indian 
jails are comparable to conditions found in third-world countries. He 
said the jails are a natural disgrace.
  There are over seventy Indian jails in America. Almost all of them 
suffer from the same problems. They are highly understaffed and 
overpopulated. There are extremely high rates of suicides and escapes. 
Officers are undertrained or not trained at all. Many of

[[Page 21418]]

these jails don't even have locking doors. We are talking about jails 
used to detain criminals and they don't have locking doors. These 
conditions are unacceptable. They must be fixed. It is our duty to 
address this problem.
  In my home State of Montana, we have eleven Indian jails. They are 
staffed with hardworking, good people. But they are not miracle 
workers. They cannot be faulted for the deplorable condition of their 
jails. Let me give you are example.
  On one day in June of 2002, nine of the eleven Montana Indian jails 
were overpopulated. The Crow Indian jail was 429 percent overcapacity. 
At the Blackfeet Indian jail, every single detention officer was 
assaulted last year.
  One major reason these jails are in such poor condition is they are 
terribly underfunded. Tribal officers don't have the money to address 
the problems. Their hands are tied. We can do something about this. We 
must provide adequate funding for Indian jails.
  Today I offer a proposal to the Senate to give tribes the authority 
to issue tax credit bonds for the construction, maintenance, and 
operation of their detention facilities. These bonds give off tax 
credits rather than interest to their investors, allowing tribes with 
little resources to earn interest off the proceeds. The bonds will 
provide a steady stream of income to the Tribal governments.
  The legislation will provide money that is so desperately needed to 
address the problems facing Indian jails. I urge my colleagues to 
support this legislation. I ask unanimous consent that the text of this 
bill 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. 2919

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

     SECTION 1. CREDIT TO HOLDERS OF INDIAN TRIBAL PRISON FACILITY 
                   BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to credits 
     against tax) is amended by adding at the end the following 
     new subpart:

 ``Subpart H--Nonrefundable Credit for Holders of Indian Tribal Prison 
                             Facility Bonds

``Sec. 54. Credit to holders of Indian tribal prison facility bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF INDIAN TRIBAL PRISON FACILITY 
                   BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds an Indian tribal prison facility bond on a credit 
     allowance date of such bond which occurs during the taxable 
     year, there shall be allowed as a credit against the tax 
     imposed by this chapter for such taxable year an amount equal 
     to the sum of the credits determined under subsection (b) 
     with respect to credit allowance dates during such year on 
     which the taxpayer holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any Indian tribal 
     prison facility bond is the amount equal to the product of--
       ``(A) the credit rate determined by the Secretary under 
     paragraph (2) for the month in which such bond was issued, 
     multiplied by
       ``(B) the face amount of the bond held by the taxpayer on 
     the credit allowance date.
       ``(2) Determination.--During each calendar month, the 
     Secretary shall determine a credit rate which shall apply to 
     bonds issued during the following calendar month. The credit 
     rate for any month is the percentage which the Secretary 
     estimates will permit the issuance of Indian tribal prison 
     facility bonds without discount and without interest cost to 
     the issuer.
       ``(c) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for any taxable year shall not 
     exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(d) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(e) Indian Tribal Prison Facility Bond.--For purposes of 
     this part, the term `Indian tribal prison facility bond' 
     means any bond issued as part of an issue if--
       ``(1) 95 percent or more of the proceeds of such issue are 
     to be invested in investment grade obligations and the 
     proceeds from such investment are used for the construction, 
     acquisition, rehabilitation, expansion, or operating expanses 
     of a qualified Indian tribal prison facility,
       ``(2) the bond is issued by the Indian tribe within the 
     jurisdiction of which such facility is located,
       ``(3) the bond is issued pursuant to a plan developed by 
     the Indian tribe,
       ``(4) the issuer designates such bond for purposes of this 
     section,
       ``(5) the term of each bond which is part of such issue 
     does not exceed 10 years, and
       ``(6) no amount of proceeds of such issue (including 
     proceeds from any investment under paragraph (1)) may be used 
     to pay the costs of issuance to the extent such amount 
     exceeds 2 percent of the sale proceeds of such issue.
       ``(f) Qualified Indian Tribal Prison Facility.--For 
     purposes of this section, the term `qualified Indian tribal 
     prison facility' means any residential correctional or 
     detention facility located on the qualified Indian land of 
     the issuing Indian tribe substantially all of the inmates of 
     which are adult or juvenile members of such Indian tribe.
       ``(g) Limitation on Amount of Bonds Designated; Allocation 
     of Bonds.--
       ``(1) National limitation.--There is an Indian tribal 
     prison facility bond limitation for each calendar year. Such 
     limitation is--
       ``(A) $200,000,000 for 2005,
       ``(B) $200,000,000 for 2006,
       ``(C) $200,000,000 for 2007, and
       ``(D) except as provided in paragraph (3), zero thereafter.
       ``(2) Allocation of bonds.--
       ``(A) In general.--The Secretary, after consultation with 
     the Secretary of the Interior, shall allocate the Indian 
     tribal prison facility bond limitation among those Indian 
     tribes which submit a plan which contains a description of 
     the proposed use of investment proceeds, assurances that such 
     proceeds will be used only for such use, a proposed 
     expenditure schedule, information relevant to the criteria 
     described in subparagraph (B), and any other information 
     determined appropriate by the Secretary.
       ``(B) Approval criteria.--In allocating the limitation 
     among plan requests of Indian tribes under subparagraph (A), 
     the Secretary shall consider--
       ``(i) the percentage of prison overcrowding in excess of 
     the facility occupancy level as determined by the Bureau of 
     Indian Affairs,
       ``(ii) the condition of existing facilities,
       ``(iii) the health and safety of both inmates and prison 
     employees,
       ``(iv) the type of offenders incarcerated, and
       ``(v) other financial resources available to the Indian 
     tribe.
       ``(3) Carryover of unused issuance limitation.--If for any 
     calendar year the limitation amount imposed by paragraph (1) 
     exceeds the amount of Indian tribal prison facility bonds 
     issued during such year, such excess shall be carried forward 
     to one or more succeeding calendar years as an addition to 
     the limitation imposed by paragraph (1) and until used by 
     issuance of such bonds.
       ``(h) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Credit allowance date.--The term `credit allowance 
     date' means, with respect to any issue, the last day of the 
     1-year period beginning on the date of the issuance of such 
     issue and the last day of each successive 1-year period 
     thereafter.
       ``(2) Bond.--The term `bond' includes any obligation.
       ``(3) Indian tribe.--The term `Indian tribe' has the 
     meaning given such term by section 7871(c)(3)(E)(ii).
       ``(4) Qualified Indian lands.--The term `qualified Indian 
     lands' has the meaning given such term by section 
     7871(c)(3)(E)(i).
       ``(5) Partnership; s corporation; and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, rules similar to the 
     rules of section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(6) Bonds held by regulated investment companies.--If any 
     Indian tribal prison facility bond is held by a regulated 
     investment company, the credit determined under subsection 
     (a) shall be allowed to shareholders of such company under 
     procedures prescribed by the Secretary.
       ``(7) Reporting.--Each Indian tribe with an allocation of 
     Indian tribal prison facility bonds under an approved plan 
     shall submit reports similar to the reports required under 
     section 149(e).''.
       (b) Conforming Amendments.--
       (1) Reporting.--Subsection (d) of section 6049 of the 
     Internal Revenue Code of 1986 (relating to returns regarding 
     payments of interest) is amended by adding at the end the 
     following new paragraph:
       ``(8) Reporting of credit on indian tribal prison facility 
     bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(d) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(h)(1)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are

[[Page 21419]]

     necessary or appropriate to carry out the purposes of this 
     paragraph, including regulations which require more frequent 
     or more detailed reporting.''.
       (2) Treatment for estimated tax purposes.--
       (A) Individual.--Section 6654 of such Code (relating to 
     failure by individual to pay estimated income tax) is amended 
     by redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rule for Holders of Indian Tribal Prison 
     Facility Bonds.--For purposes of this section, the credit 
     allowed by section 54 to a taxpayer by reason of holding an 
     Indian tribal prison facility bond on a credit allowance date 
     shall be treated as if it were a payment of estimated tax 
     made by the taxpayer on such date.''.
       (B) Corporate.--Subsection (g) of section 6655 of such Code 
     (relating to failure by corporation to pay estimated income 
     tax) is amended by adding at the end the following new 
     paragraph:
       ``(5) Special rule for holders of indian tribal prison 
     facility bonds.--For purposes of this section, the credit 
     allowed by section 54 to a taxpayer by reason of holding an 
     Indian tribal prison facility bond on a credit allowance date 
     shall be treated as if it were a payment of estimated tax 
     made by the taxpayer on such date.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new item:

``Subpart H. Nonrefundable Credit for Holders of Indian Tribal Prison 
              Facility Bonds.''.

       (2) Section 6401(b)(1) of such Code is amended by striking 
     ``and G'' and inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2004.

  Mr. DASCHLE. Mr. President, today I am pleased to join Senator Max 
Baucus in introducing legislation that addresses the longstanding 
problem of dilapidated tribal detention facilities on Indian 
reservations. There is a tremendous need for replacement construction 
of Bureau of Indian Affairs (BIA) operated and funded facilities, and I 
am pleased that this legislation offers a creative and innovative 
bonding approach to address the construction backlog.
  USA Today reported that Federal investigators have uncovered evidence 
of abuse, neglect and inhumane conditions in Native American prisons 
and jails. This troubling report suggests that the conditions in Indian 
detention facilities are not improving and, in fact, appear to be 
getting worse. It is my hope that this hearing will help shed 
additional light on these allegations, and lead to solutions to improve 
conditions in facilities across Indian country.
  According to recent statistics from the Department of Justice report 
on Indian jails and prisons, there are 70 detention facilities in 
Indian country, supervising approximately 2,100 inmates. Many of these 
facilities are in an appalling state of disrepair, and face problems 
that range from overcrowding and understaffing to sheer neglect and 
abuse.
  According to the most recent statistics from the Department of 
Justice, over half of all detention facilities in Indian country were 
operating at 100-percent capacity in 2002, and nineteen were operating 
at 150-percent or higher capacity. Of those nineteen, three are located 
in my state of South Dakota: Pine Ridge's Medicine Root Detention 
Center, operating at 250-percent capacity; Crow Creek's Fort Thompson 
Jail, operating at 242-percent capacity; and the Pine Ridge 
Correctional Facility, which is operating at a staggering 400 percent 
of its capacity.
  Inmates in South Dakota's BIA facilities are housed in dilapidated 
buildings and are forced to endure extraordinarily harsh conditions. 
Even though the Lower Brule tribal detention facility was condemned by 
the BIA in 1987, it was still being used to house inmates as recently 
as two years ago. Because the new facility is still under construction, 
Lower Brule prisoners are sent 13 miles away, across the Missouri 
River, to the Crow Creek facility in Fort Thompson. Because there 
aren't enough BIA officers to transport them back to Lower Brule, 
detainees released from Crow Creek are often forced to make the return 
trip to Lower Brule on foot. It is shocking that this is allowed to 
happen at all, but especially in South Dakota where harsh winters and 
sub-zero temperatures are routine. Moreover, the Fort Thompson facility 
is equally understaffed. One person serves as both police dispatcher 
and detention officer in a facility that houses up to 30 prisoners.
  These conditions have a devastating impact on prisoners. Nationally, 
between July 1, 2001, and June 30, 2002, 282 inmates in tribal jails 
attempted suicide, up from 169 the previous year. In the last five 
years, the number of admissions rose 32 percent, and the annual number 
of attempted suicides more than doubled, from 133 to 282. On Crow 
Creek, which is located in one of the most impoverished counties in the 
U.S. and experiences inordinate suicide rates among its general 
population, several suicides have occurred in the local jail.
  Even more troubling, inadequate detention facilities pose a serious 
threat to the surrounding communities. With a limited number of 
officers responsible for large inmate populations, the risk of prisoner 
violence--against both prison staff and, in the event of an escape, 
local citizens--is much greater. Moreover, the culture of neglect and 
abuse found in many of our Indian jails is indicative of broader trends 
within the communities. The Lower Brule jail doubles as a suicide-watch 
center for troubled teens, since there is nowhere else in the community 
to take them. Several Emergency Medical Technicians (EMTs) have either 
resigned, or are on the brink of resigning, due to the stress of the 
situation. Law enforcement officials are at a loss about how to address 
this disturbing pattern, and are overwhelmed by the feelings of 
hopelessness that accompany it.
  Clearly, the impact that overcrowding, dilapidated conditions, and 
neglect are having on inmates in these facilities, as well as local 
communities, is reaching a critical mass--both in South Dakota and 
across the Nation--and we must act now to reverse the trend. While 
addressing the problems that exist in jails and prisons clearly isn't 
the whole answer, such an approach will meet a critical need in Indian 
country, and will represent an important step toward increasing public 
safety and reducing incidences of abuse and neglect.
  We can start by increasing funding for BIA facilities. Unfortunately, 
this Administration has demonstrated a complete unwillingness to give 
Indian detention facilities the resources they need, and has actually 
reduced funding for jails and prisons in Indian country. It wasn't 
always so bad. Under the Clinton Administration, then-Attorney General 
Janet Reno created the Department of Justice--Department of Interior 
Indian Law Enforcement initiative with the objective of creating an 
effective way to address law enforcement, facilities, juvenile justice, 
and rehabilitation efforts in Indian country. Although funding for 
these programs, which increased under the Clinton administration and 
was consistent until the FY2002 appropriations cycle, was not enough to 
meet all of Indian country's needs, the initiative represented an 
unprecedented step toward addressing some of these problems.
  Unfortunately, the current Administration, while budgeting hundreds 
of millions of dollars for Federal prison construction, has proposed 
eliminating the tribal facility program for the second year in a row. 
While Congress appropriated $35 million per year for construction of 
BIA detention facilities between 2000 and 2002, we appropriated only $2 
million in FY2004. Now, with an even tighter budget to work with, the 
outlook for this year is especially bleak, and conditions at BIA 
facilities are likely to get even worse.
  For too long, we have neglected our obligations to Native Americans. 
We are seeing the effects of that neglect in South Dakota. These are 
once again examples of the abrogration of the trust responsibility by 
the Federal Government to the tribes and its people.
  We need to do a better job of funding Indian detention centers, and 
we need to do more to address public safety, tribal courts, and 
rehabilitation efforts. We cannot ask tribes to choose

[[Page 21420]]

between funding crisis intervention and law enforcement. We cannot 
force tribes to make the choice between funding education and after 
school programs for their children, and repairing cracked walls and 
inoperable surveillance cameras in their jails.
  While national rates are the lowest in years, crime on Indian lands 
continues to rise. Particularly disturbing is the violent nature of 
this crime; violence against women, juvenile and gang crime, and child 
abuse remain serious problems. The Bureau of Justice Statistics reports 
that American Indians experience the highest crime victimization rates 
in the nation--almost twice the national average.
  The law enforcement, public safety, and tribal detention facility 
issues are of critical importance to Indian country and surrounding 
communities. If this were happening in any other part of the country, 
it would be met with public outrage and swift government action. 
However, in Indian country, it is met with silence and reduced funding. 
For the safety of our Indian people and the well-being of their 
communities, we must take action.
  I am pleased that on September 21, 2004, the Senate Finance Committee 
held an oversight hearing on these issues, and that this legislation 
has emerged as a step in the right direction to address the 
construction backlog of much-needed facilities in rural, tribal 
communities.
  I support this legislation which authorizes eligible Indian tribes to 
issue tax-exempt bonds to finance tribal prison facilities, ``tribal 
prison facility bonds''. I look forward to working with my colleagues 
to address these important issues and to advance this legislation.
                                 ______
                                 
      By Mr. CORNYN:
  S. 2922. A bill to amend the Public Health Service Act to provide for 
the expansion, intensification, and coordination of the activities of 
the National Heart, Lung, and Blood Institute with respect to research 
on pulmonary hypertension; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. CORNYN. Mr. President, I rise today to introduce legislation 
designed to enhance Federal research on an emerging chronic disease in 
the U.S. known as pulmonary hypertension. PH is a serious and often 
fatal condition where the blood pressure in the lungs rises to 
dangerously high levels. In PH patients, the walls of the arteries that 
take blood from the right side of the heart to the lungs thicken and 
constrict. As a result, the right side of the heart has to pump harder 
to move blood into the lungs, causing it to enlarge and ultimately 
fail.
  PH can occur without a known cause or be secondary to other 
conditions such as; collagen vascular diseases, i.e., scleroderma and 
lupus, blood clots, HIV, sickle cell, and liver disease. PH does not 
discriminate based on race, gender or age. Patients develop symptoms of 
shortness of breath, fatigue, chest pain, dizziness, and fainting. 
Unfortunately, these symptoms are frequently misdiagnosed, leaving 
patients with the false impression that they have a minor pulmonary or 
cardiovascular condition. By the time many patients receive an accurate 
diagnosis, the disease has progressed to a late stage, making it 
impossible to receive a necessary heart or lung transplant.
  With this legislation, I am proud to join the Pulmonary Hypertension 
Association in the fight against this deadly illness. PHA is the 
Nation's oldest and largest organization dedicated to finding a cure 
for PH and improving the quality of life for PH patients and their 
families. I would particularly like to recognize the contributions of 
four PHA members from my home State of Texas who have contributed so 
much to this worthy cause--Leo and Bobbie Fields, and Jack Stibbs and 
his daughter Emily. Their commitment to improving the quality of life 
for PH patients and pursuing a cure for this disease is truly 
inspiring. I would also like to recognize our colleague Congressman 
Kevin Brady for his leadership in introducing the ``PH Research Act'' 
in the other body.
  A few years ago the scientifc community discovered the first gene 
associated with pulmonary hypertension. This was a landmark discovery 
in the battle to unravel the mystery surrounding this disease. The ``PH 
Research Act'' seeks to capitalize on this exciting advancement by 
establishing ``Centers of Excellence'' on pulmonary hypertension 
through the National Heart, Lung and Blood Institute at the National 
Institutes of Health. These Centers would focus on: 1. basic and 
clinical research into the cause, diagnosis, and treatment of PH: 2. 
the training of new investigators in PH research; 3. continuing 
education for health care professionals regarding PH with a focus on 
early diagnosis and 4. the dissemination of information regarding the 
disease to the general public.
  This is an important bill that has the potential to help tens of 
thousands of Americans and their families, who are struggling with this 
devastating disease. I look forward to working with the Health, 
Education, Labor and Pensions Committee to advance the ``PH Research 
Act.''
                                 ______
                                 
      By Mr. BIDEN (for himself, Mr. Specter, Mr. Bingaman, and Ms. 
        Landrieu):
  S. 2923. A bill to reauthorize the grant program of the Department of 
Justice for reentry of offenders into the community, to establish a 
task force on Federal programs and activities relating to the reentry 
of offenders into the community, and for other purposes; to the 
Committee on the Judiciary.
  Mr. BIDEN. Mr. President, Senator Specter and I introduce today the 
Enhanced Second Chance Act of 2004, which takes direct aim at reducing 
recidivism rates for our Nation's ex-offenders and improving the 
transition for these offenders from prison back into the community.
  All too often we think about today, but not tomorrow. We look to 
short-term solutions for long- term problems. We need to have a change 
in thinking and approach. It's time we face the dire situation of 
prisoners reentering our communities with insufficient monitoring, 
little or no job skills, inadequate drug treatment, insufficient 
housing, lack of positive influences, a paucity of basic physical and 
mental health services, and deficient basic life skills.
  The bill we introduce today is about providing a second chance for 
these ex-offenders, and the children and families that depend on them. 
It's about strengthening communities and ensuring safe neighborhoods.
  Since my 1994 Crime Bill passed, we've had great success in cutting 
down on crime rates in this country. Under the Community Oriented 
Policing Services (COPS) program, we've funded over 114,000 officers 
all across the country. And our crime rate has plummeted. Murder is 
down 37.8 percent, rape 19.1 percent, and aggravated assaults 28 
percent. The overall crime rate sharply declined by 28 percent.
  But now, we are seeing some troubling indicators that crime is back 
on the rise. Murder was up 2.5 percent in 2001, 1 percent in 2002, and 
1.3 percent in 2003. Forcible rape is up as is robbery. Car theft is up 
10 percent over the last four years.
  If we are going to ensure that these latest numbers are only a blip 
on the continued downward trend of crime rates, as opposed to the 
beginning of a comeback in crime, we simply have to make strong, 
concerted, and common-sense efforts now to help ex-prisoners 
successfully reenter and reintegrate into their communities.
  There's a record number of people currently serving time in our 
country--over two million. This translates into 1 out of every 143 U.S. 
residents. In its latest statistics on the matter, the Bureau of 
Justice Statistics found that the Nation's overall prison population 
increased by over 40,000 from midyear 2002 to midyear 2003, the largest 
increase in 4 years.
  Also vital to realize is that 95 percent of all these millions we 
lock up will eventually get out. That equals nearly 650,000 being 
released from Federal or State prisons to communities each year. In a 
State like Delaware, that's over 4,000 inmates per year. And here's

[[Page 21421]]

the kicker--a staggering \2/3\ of these released state prisoners are 
expected to be rearrested for a felony or serious misdemeanor within 3 
years of release. Two out of every three! You're talking about hundreds 
of thousands of reoffending ex-offenders each year and hundreds of 
thousands of serious crimes being committed by people who have already 
served time in jail.
  And, unfortunately, it's not too difficult to see why such a huge 
portion of our released prisoners recommit serious crimes. Up to 60 
percent of former inmates are not employed; 15 to 27 percent of 
prisoners expect to go to homeless shelters upon release; and 57 
percent of Federal and 70 percent of State inmates used drugs regularly 
before prison, with some estimates of involvement with drugs or alcohol 
around the time of the offense as high as 84 percent.
  These huge numbers of released prisoners each year and the out-of-
control recidivism rates are a recipe for disaster--leading to untold 
damage, hardship, and death for victims; ruined futures and lost 
potential for re-offenders; and a huge drain on society at large. One 
particularly vulnerable group is the children of these offenders. We 
simply cannot be resigned to allowing generation after generation 
entering and reentering our prisons. This pernicious cycle must come to 
an end.
  My 1994 Crime Bill recognized these extraordinarily high rates of 
recidivism as a real problem. My bill, for example, created innovative 
drug treatment programs for State and Federal inmates to help them kick 
their habit.
  But this is only one piece of the puzzle. I introduced a bill in 2000 
that would have built on my 1994 Crime Bill--the ``Offender Reentry and 
Community Safety Act of 2000'', S. 2908. This bill would have created 
demonstration reentry programs for Federal, State, and local prisoners. 
These programs were designed to assist high-risk, high-need offenders 
who served their prison sentences, but who pose the greatest risk of 
reoffending upon release because they lack the education, job skills, 
stable family or living arrangements, and the health services they need 
to successfully reintegrate into society.
  Senator Specter has also been a dedicated and tireless leader on 
crime and public safety issues throughout his career and has, for many 
years, seen the serious public safety ramifications of high recidivism 
rates. For example, my colleague from Pennsylvania has been the leader 
on the effort to ensure that offenders who are being released back into 
our communities have adequate education and work training to become 
productive members of our society. I couldn't be more pleased than to 
join efforts with Senator Specter on the Enhanced Second Chance Act of 
2004.
  While we have made some progress on offender reentry efforts since 
1994, much more needs to be done. In the current session of Congress, I 
am pleased that colleagues of mine--from both sides of Capitol Hill and 
from both sides of the aisle--are also focusing their attention on this 
vital issue.
  I am proud to have worked with Representatives Rob Portman, Danny 
Davis, and John Conyers, just to name a few, in the House or 
Representatives. In the Senate, a number of my colleagues, in addition 
to Senator Specter, have shown strong interest in offender reentry 
issues, including Senators Brownback, DeWine, Leahy, Kennedy, Landrieu, 
Bingaman, Hatch, Grassley, and Santorum.
  The Second Chance Act of 2004 was introduced in the House and Senate 
recently, and I was proud to have worked extensively on that 
bipartisan, bicameral process. The bill Senator Specter and I introduce 
today builds on those efforts. Like the Second Chance Act, the central 
component of our bill provides a competitive grant program to promote 
innovative programs to test out a variety of methods aimed at reducing 
recidivism rates. Efforts would be focused on post-release housing, 
education and job training, substance abuse and mental health services, 
and mentoring programs, just to name a few.
  Because the scope of the problem is so large--with 650,000 prisoners 
being released from state and federal prisons each year--our bill 
provides more than three times as much funding than the House bill. 
While the House bill contains $40 million per year for the main grant 
program, our bill provides $130 million. This isn't being wasteful with 
our scarce federal resources, it's just an acknowledgment of the scope 
of the problem we're faced with.
  A relatively modest investment in offender reentry efforts compares 
very well with the alternative, building more and more prisons for 
these ex-offenders to return to if they are unable to successfully 
reenter their communities and instead are rearrested and reconvicted of 
more crimes. We must remember that the average cost of incarcerating 
each prisoner exceeds $20,000 per year. In Delaware, this translates 
into over $200 per resident just to pay for jail and prison operating 
expenses.
  In constant 2001 dollars, state prison costs in our country have 
increased from $11.7 billion per year in 1986 to $29.5 billion in 2001. 
And even with these kinds of resources being spent, by the end of 2002, 
25 States and the Federal prison system reported operating at 100 
percent or more of their highest capacity. My own home State of 
Delaware continues to see a prison system bulging at the seams. We have 
tried, but simply cannot build our way out of this problem. We need 
tough--but smart--strategies to stop the revolving door of prisoners 
being released from prison, only to re-offend and land right back 
behind bars. We simply can't be penny-wise but pound-foolish.
  The Enhanced Second Chance Act of 2004 also requires that Federal 
departments with a role in offender reentry efforts coordinate and work 
together; to make sure there aren't duplicative efforts or funding 
gaps; and to coordinate reentry research. Our bill would raise the 
profile of this issue within the executive branch and secure the 
sustained and coordinated federal attention offender reentry efforts 
deserve.
  We also need to examine existing Federal and state reentry barriers--
laws, regulations, rules, and practices that make it more difficult for 
former inmates to successfully reintegrate back into their communities; 
laws that confine ex-offenders to society's margins, making it even 
more likely that they will recommit serious crimes and return to 
prison.
  Turning over a new leaf and going from a life of crime to becoming a 
productive member of society is tough enough. We shouldn't have Federal 
and State laws on the books that make this even more challenging. 
That's not to say that we don't want to restrict former drug addicts 
from working in pharmacies, for example, or to bar sex offenders from 
working in day care centers. But many communities across the country 
currently exclude ex-prisoners from virtually every occupation 
requiring a state license, like chiropractic care, engineering, and 
real estate. Lifting these senselessly punitive bans would make it 
easier for ex-offenders to stay out of prison.
  Our bill provides for a robust analysis of these Federal and State 
barriers with recommendations on what next steps we need to take. And 
these reviews are mandated to take place out in the open under public 
scrutiny.
  The Enhanced Second Chance Act also spurs state-of-the-art research 
and study on offender reentry issues. We need to know who is most 
likely to recommit crimes when they are released, to better target our 
limited resources where they can do the most good. We need to study why 
some ex-offenders who seem to have the entire deck stacked against them 
are able to become successful and productive members of our society. We 
need to know what works and how we can replicate what works for others.
  Our bill also provides a whole slew of common-sense proposals in the 
areas of job training, employment, education, post-release housing, 
civic rights, substance abuse, and prisoner mentoring--efforts and 
changes in law that we can do now. Some of these important provisions 
are included in the House bill, others are in addition to those 
efforts, but all are common-sense efforts in the art of the possible. 
Our goal is to do as much as possible right now.

[[Page 21422]]

  Our Enhanced Second Chance Act is a next, natural step in our 
campaign against crime. Making a dent in recidivism rates is an 
enormous undertaking; one that requires action now and continued focus 
in the future. I commit to vigorously pushing this legislation as well 
as keeping an eye on what steps we need to take in the future. We need 
to realize that the problems facing ex-offenders are enormous and 
require sustained focus. The safety of our neighbors, our children, and 
our communities depends on it.
  I'm proud today to introduce the Enhanced Second Chance Act with 
Senator Specter and ask our colleagues to join with us in this vital 
effort.
  I ask unanimous consent to have the text of our bill printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2923

       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 ``Enhanced Second Chance Act 
     of 2004: Community Safety Through Recidivism Prevention'' or 
     the ``Enhanced Second Chance Act of 2004''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) In 2002, 2,000,000 people were incarcerated in Federal 
     or State prisons or in local jails. Nearly 650,000 people are 
     released from incarceration to communities nationwide each 
     year.
       (2) There are over 3,200 jails throughout the United 
     States, the vast majority of which are operated by county 
     governments. Each year, these jails will release in excess of 
     10,000,000 people back into the community.
       (3) Nearly \2/3\ of released State prisoners are expected 
     to be rearrested for a felony or serious misdemeanor within 3 
     years after release.
       (4) In recent years, a number of States and local 
     governments have begun to establish improved systems for 
     reintegrating former prisoners. Under such systems, 
     corrections officials begin to plan for a prisoner's release 
     while the prisoner is incarcerated and provide a transition 
     to needed services in the community.
       (5) Faith leaders and parishioners have a long history 
     helping ex-offenders transform their lives. Through prison 
     ministries and outreach in communities, churches and faith-
     based organizations have pioneered reentry services to 
     prisoners and their families.
       (6) Successful reentry protects those who might otherwise 
     be crime victims. It also improves the likelihood that 
     individuals released from prison or juvenile detention 
     facilities can pay fines, fees, restitution, and family 
     support.
       (7) According to the Bureau of Justice Statistics, 
     expenditures on corrections alone increased from 
     $9,000,000,000 in 1982 to $44,000,000,000 in 1997. These 
     figures do not include the cost of arrest and prosecution, 
     nor do they take into account the cost to victims.
       (8) Increased recidivism results in profound collateral 
     consequences, including public health risks, homelessness, 
     unemployment, and disenfranchisement.
       (9) The high prevalence of infectious disease, substance 
     abuse, and mental health disorders that has been found in 
     incarcerated populations demands that a recovery model of 
     treatment should be used for handling the more than \2/3\ of 
     all offenders with such needs.
       (10) One of the most significant costs of prisoner reentry 
     is the impact on children, the weakened ties among family 
     members, and destabilized communities. The long-term 
     generational effects of a social structure in which 
     imprisonment is the norm and law-abiding role models are 
     absent are difficult to measure but undoubtedly exist.
       (11) According to the 2001 national data from the Bureau of 
     Justice Statistics, 3,500,000 parents were supervised by the 
     correctional system. Prior to incarceration, 64 percent of 
     female prisoners and 44 percent of male prisoners in State 
     facilities lived with their children.
       (12) Between 1991 and 1999, the number of children with a 
     parent in a Federal or State correctional facility increased 
     by more than 100 percent, from approximately 900,000 to 
     approximately 2,000,000. According to the Bureau of Prisons, 
     there is evidence to suggest that inmates who are connected 
     to their children and families are more likely to avoid 
     negative incidents and have reduced sentences.
       (13) Approximately 100,000 juveniles (ages 17 and under) 
     leave juvenile correctional facilities, State prison, or 
     Federal prison each year. Juveniles released from confinement 
     still have their likely prime crime years ahead of them. 
     Juveniles released from secure confinement have a recidivism 
     rate ranging from 55 to 75 percent. The chances that young 
     people will successfully transition into society improve with 
     effective reentry and aftercare programs.
       (14) Studies have shown that from 15 percent to 27 percent 
     of prisoners expect to go to homeless shelters upon release 
     from prison.
       (15) The National Institute of Justice has found that after 
     1 year of release, up to 60 percent of former inmates are not 
     employed.
       (16) Fifty-seven percent of Federal and 70 percent of State 
     inmates used drugs regularly before prison, with some 
     estimates of involvement with drugs or alcohol around the 
     time of the offense as high as 84 percent (BJS Trends in 
     State Parole, 1990-2000).
       (17) According to the Bureau of Justice Statistics, 60 to 
     83 percent of the Nation's correctional population have used 
     drugs at some point in their lives. This is twice the 
     estimated drug use of the total United States population of 
     40 percent.
       (18) Family based treatment programs have proven results 
     for serving the special population of female offenders and 
     substance abusers with children. An evaluation by the 
     Substance Abuse and Mental Health Services Administration of 
     family based treatment for substance abusing mothers and 
     children found that at 6 months post treatment, 60 percent of 
     the mothers remain alcohol and drug free, and drug related 
     offenses declined from 28 to 7 percent. Additionally, a 2003 
     evaluation of residential family based treatment programs 
     revealed that 60 percent of mothers remained clean and sober 
     6 months after treatment, criminal arrests declined by 43 
     percent, and 88 percent of the children treated in the 
     program with their mothers remain stabilized.
       (19) A Bureau of Justice Statistics analysis indicated that 
     only 33 percent of Federal and 36 percent of State inmates 
     had participated in residential inpatient treatment programs 
     for alcohol and drug abuse 12 months before their release. 
     Further, over \1/3\ of all jail inmates have some physical or 
     mental disability and 25 percent of jail inmates have been 
     treated at some time for a mental or emotional problem.
       (20) According to the National Institute of Literacy, 70 
     percent of all prisoners function at the 2 lowest literacy 
     levels.
       (21) The Bureau of Justice Statistics has found that 27 
     percent of Federal inmates, 40 percent of State inmates, and 
     47 percent of local jail inmates have never completed high 
     school or its equivalent. Furthermore, the Bureau of Justice 
     Statistics has found that less educated inmates are more 
     likely to be recidivists. Only 1 in 4 local jails offer basic 
     adult education programs.
       (22) In his 2004 State of the Union Address, President Bush 
     correctly stated: ``We know from long experience that if 
     former prisoners can't find work, or a home, or help, they 
     are much more likely to commit more crimes and return to 
     prison America is the land of the second chance, and when the 
     gates of the prison open, the path ahead should lead to a 
     better life.''.
       (23) Participation in State correctional education programs 
     lowers the likelihood of reincarceration by 29 percent, 
     according to a recent United States Department of Education 
     study. A Federal Bureau of Prisons study found a 33 percent 
     drop in recidivism among Federal prisoners who participated 
     in vocational and apprenticeship training.

     SEC. 3. REAUTHORIZATION OF ADULT AND JUVENILE OFFENDER STATE 
                   AND LOCAL REENTRY DEMONSTRATION PROJECTS.

       (a) Adult Offender Demonstration Projects Authorized.--
     Section 2976(b) of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3797w(b)) is amended by striking 
     paragraphs (1) through (4) and inserting the following:
       ``(1) establishing or improving the system or systems under 
     which--
       ``(A) the correctional agency of the State or local 
     government develops and carries out plans to facilitate the 
     reentry into the community of each offender in State or local 
     custody;
       ``(B) the supervision and services provided to offenders in 
     State or local custody are coordinated with the supervision 
     and services provided to offenders after reentry into the 
     community;
       ``(C) the efforts of various public and private entities to 
     provide supervision and services to offenders after reentry 
     into the community, and to family members of such offenders, 
     are coordinated; and
       ``(D) offenders awaiting reentry into the community are 
     provided with documents (such as identification papers, 
     referrals to services, medical prescriptions, job training 
     certificates, apprenticeship papers, and information on 
     obtaining public assistance) useful in achieving a successful 
     transition from prison;
       ``(2) carrying out programs and initiatives by units of 
     local government to strengthen reentry services for 
     individuals released from local jails;
       ``(3) enabling prison mentors of offenders to remain in 
     contact with those offenders, including through the use of 
     such technology as videoconferencing, during incarceration 
     and after reentry into the community and encouraging the 
     involvement of prison mentors in the reentry process;
       ``(4) providing structured post-release housing and 
     transitional housing, including group homes for recovering 
     substance abusers, through which offenders are provided 
     supervision and services immediately following reentry into 
     the community;

[[Page 21423]]

       ``(5) assisting offenders in securing permanent housing 
     upon release or following a stay in transitional housing;
       ``(6) providing continuity of health services (including 
     mental health services, substance abuse treatment and 
     aftercare, and treatment for contagious diseases) to 
     offenders in custody and after reentry into the community;
       ``(7) providing offenders with education, job training, 
     English as a second language programs, work experience 
     programs, self-respect and life skills training, and other 
     skills useful in achieving a successful transition from 
     prison;
       ``(8) facilitating collaboration among corrections and 
     community corrections, technical schools, community colleges, 
     and the workforce development and employment service sectors 
     to--
       ``(A) promote, where appropriate, the employment of people 
     released from prison and jail, through efforts such as 
     educating employers about existing financial incentives and 
     facilitate the creation of job opportunities, including 
     transitional jobs, for this population that will benefit 
     communities;
       ``(B) connect inmates to employment, including supportive 
     employment and employment services, before their release to 
     the community;
       ``(C) address barriers to employment, including licensing; 
     and
       ``(D) identify labor market needs to ensure that education 
     and training are appropriate;
       ``(9) assessing the literacy and educational needs of 
     offenders in custody and identifying and providing services 
     appropriate to meet those needs, including followup 
     assessments and long-term services;
       ``(10) systems under which family members of offenders are 
     involved in facilitating the successful reentry of those 
     offenders into the community, including removing obstacles to 
     the maintenance of family relationships while the offender is 
     in custody, strengthening the family's capacity to function 
     as a stable living situation during reentry where appropriate 
     to the safety and well-being of any children involved, and 
     involving family members in the planning and implementation 
     of the reentry process;
       ``(11) programs under which victims are included, on a 
     voluntary basis, in the reentry process;
       ``(12) programs that facilitate visitation and maintenance 
     of family relationships with respect to offenders in custody 
     by addressing obstacles such as travel, telephone costs, mail 
     restrictions, and restrictive visitation policies;
       ``(13) identifying and addressing barriers to collaborating 
     with child welfare agencies in the provision of services 
     jointly to offenders in custody and to the children of such 
     offenders;
       ``(14) implementing programs in correctional agencies to 
     include the collection of information regarding any dependent 
     children of an incarcerated person as part of intake 
     procedures, including the number of children, age, and 
     location or jurisdiction, and connect identified children 
     with appropriate services;
       ``(15) addressing barriers to the visitation of children 
     with an incarcerated parent, and maintenance of the parent-
     child relationship, such as the location of facilities in 
     remote areas, telephone costs, mail restrictions, and 
     visitation policies;
       ``(16) creating, developing, or enhancing prisoner and 
     family assessments curricula, policies, procedures, or 
     programs (including mentoring programs) to help prisoners 
     with a history or identified risk of domestic violence, 
     dating violence, sexual assault, or stalking reconnect with 
     their families and communities, as appropriate (or when it is 
     safe to do so), and become mutually respectful, nonabusive 
     parents or partners, under which particular attention is paid 
     to the safety of children affected and the confidentiality 
     concerns of victims, and efforts are coordinated with 
     existing victim service providers;
       ``(17) developing programs and activities that support 
     parent-child relationships, as appropriate to the health and 
     well-being of the child, such as--
       ``(A) using telephone conferencing to permit incarcerated 
     parents to participate in parent-teacher conferences;
       ``(B) using videoconferencing to allow virtual visitation 
     when incarcerated persons are more than 100 miles from their 
     families;
       ``(C) the development of books on tape programs, through 
     which incarcerated parents read a book into a tape to be sent 
     to their children;
       ``(D) the establishment of family days, which provide for 
     longer visitation hours or family activities; or
       ``(E) the creation of children's areas in visitation rooms 
     with parent-child activities;
       ``(18) expanding family based treatment centers that offer 
     family based comprehensive treatment services for parents and 
     their children as a complete family unit;
       ``(19) conducting studies to determining who is returning 
     to prison or jail and which of those returning prisoners 
     represent the greatest risk to community safety;
       ``(20) developing or adopting procedures to ensure that 
     dangerous felons are not released from prison prematurely;
       ``(21) developing and implementing procedures to assist 
     relevant authorities in determining when release is 
     appropriate and in the use of data to inform the release 
     decision;
       ``(22) developing and implementing procedures to identify 
     efficiently and effectively those violators of probation or 
     parole who should be returned to prison;
       ``(23) utilizing validated assessment tools to assess the 
     risk factors of returning inmates and prioritizing services 
     based on risk;
       ``(24) conducting studies to determine who is returning to 
     prison or jail and which of those returning prisoners 
     represent the greatest risk to community safety;
       ``(25) facilitating and encouraging timely and complete 
     payment of restitution and fines by ex-offenders to victims 
     and the community;
       ``(26) establishing or expanding the use of reentry courts 
     to--
       ``(A) monitor offenders returning to the community;
       ``(B) provide returning offenders with--
       ``(i) drug and alcohol testing and treatment; and
       ``(ii) mental and medical health assessment and services;
       ``(C) facilitate restorative justice practices and convene 
     family or community impact panels, family impact educational 
     classes, victim impact panels, or victim impact educational 
     classes;
       ``(D) provide and coordinate the delivery of other 
     community services to offenders, including--
       ``(i) housing assistance;
       ``(ii) education;
       ``(iii) employment training;
       ``(iv) children and family support;
       ``(v) conflict resolution skills training;
       ``(vi) family violence intervention programs; and
       ``(vii) other appropriate social services; and
       ``(E) establish and implement graduated sanctions and 
     incentives; and
       ``(27) providing technology and other tools necessary to 
     advance post release supervision.''.
       (b) Juvenile Offender Demonstration Projects Authorized.--
     Section 2976(c) of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3797w(c)) is amended by striking ``may 
     be expended for'' and all that follows through the period at 
     the end and inserting ``may be expended for any activity 
     referred to in subsection (b).''.
       (c) Applications; Priorities; Performance Measurements.--
     Section 2976 of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3797w) is amended--
       (1) by redesignating subsection (h) as subsection (o); and
       (2) by striking subsections (d) through (g) and inserting 
     the following:
       ``(d) Applications.--A State, unit of local government, 
     territory, or Indian tribe desiring a grant under this 
     section shall submit an application to the Attorney General 
     that--
       ``(1) contains a reentry strategic plan, which describes 
     the long-term strategy, and a detailed implementation 
     schedule, including the jurisdiction's plans to pay for the 
     program after the Federal funding is discontinued;
       ``(2) identifies the governmental agencies and community 
     and faith-based organizations that will be coordinated by, 
     and collaborate on, the applicant's prisoner reentry strategy 
     and certifies their involvement; and
       ``(3) describes the methodology and outcome measures that 
     will be used in evaluating the program.
       ``(e) Priority Consideration.--The Attorney General shall 
     give priority to grant applications that best--
       ``(1) focus initiatives on geographic areas with a 
     substantiated high population of ex-offenders;
       ``(2) include partnerships with community-based 
     organizations, including faith-based organizations;
       ``(3) provide consultations with crime victims and former 
     incarcerated prisoners and their families;
       ``(4) review the process by which the State adjudicates 
     violations of parole or supervised release and consider 
     reforms to maximize the use of graduated, community-based 
     sanctions for minor and technical violations of parole or 
     supervised release;
       ``(5) establish prerelease planning procedures for 
     prisoners to ensure that a prisoner's eligibility for Federal 
     or State benefits (including Medicaid, Medicare, Social 
     Security, and Veterans benefits) upon release is established 
     prior to release, subject to any limitations in law, and to 
     ensure that prisoners are provided with referrals to 
     appropriate social and health services or are linked to 
     appropriate community-based organizations;
       ``(6) target high-risk offenders for reentry programs 
     through validated assessment tools; and
       ``(7) provide returning offenders with information on how 
     they can restore their voting rights, and any other civil or 
     civic rights denied to them due to their offender status, 
     under the laws of the State where they are released.
       ``(f) Requirements.--The Attorney General may make a grant 
     to an applicant only if the application--
       ``(1) reflects explicit support of the chief executive 
     officer of the State or unit of local

[[Page 21424]]

     government, territory, or Indian tribe applying for a grant 
     under this section;
       ``(2) provides extensive discussion of the role of State 
     corrections departments, community corrections agencies, 
     juvenile justice systems, or local jail systems in ensuring 
     successful reentry of ex-offenders into their communities;
       ``(3) provides extensive evidence of collaboration with 
     State and local government agencies overseeing health, 
     housing, child welfare, education, and employment services, 
     and local law enforcement;
       ``(4) in the case of a State grantee, the State provides a 
     plan for the analysis of existing State statutory, 
     regulatory, rules-based, and practice-based hurdles to a 
     prisoner's reintegration into the community; in case of a 
     local grantee, the local grantee provides a plan for the 
     analysis of existing local statutory, regulatory, rules-
     based, and practice-based hurdles to a prisoner's 
     reintegration into the community; and in the case of a 
     territorial grantee, the territory provides a plan for the 
     analysis of existing territorial statutory, regulatory, 
     rules-based, and practice-based hurdles to a prisoner's 
     reintegration into the community that--
       ``(A) takes particular note of laws, regulations, rules, 
     and practices that disqualify former prisoners from obtaining 
     professional licenses or other requirements for certain types 
     of employment, and that hinder full civic participation;
       ``(B) identifies those laws, regulations, rules, or 
     practices that are not directly connected to the crime 
     committed and the risk that the ex-offender presents to the 
     community; and
       ``(C) affords members of the public an opportunity to 
     participate in the process described in this subsection; and
       ``(5) includes the use of a State or local task force to 
     carry out the activities funded under the grant.
       ``(g) Uses of Grant Funds.--
       ``(1) Federal share.--The Federal share of a grant received 
     under this section may not exceed 75 percent of the project 
     funded under the grant, unless the Attorney General--
       ``(A) waives, in whole or in part, the requirement of this 
     paragraph; and
       ``(B) publicly delineates the rationale for the waiver.
       ``(2) Supplement not supplant.--Federal funds received 
     under this section shall be used to supplement, not supplant, 
     non-Federal funds that would otherwise be available for the 
     activities funded under this section.
       ``(h) Reentry Strategic Plan.--
       ``(1) In general.--As a condition of receiving financial 
     assistance under this section, each applicant shall develop a 
     comprehensive strategic reentry plan that contains measurable 
     annual and 5- to 10-year performance outcomes. The plan shall 
     have as a goal to reduce the rate of recidivism of 
     incarcerated persons served with funds from this section 
     within the State by 50 percent over a period of 10 years.
       ``(2) Coordination.--In developing reentry plans under this 
     subsection, applicants shall coordinate with communities and 
     stakeholders, including experts in the fields of public 
     safety, corrections, housing, health, education, employment, 
     and members of community and faith-based organizations that 
     provide reentry services.
       ``(3) Measurements of progress.--Each reentry plan 
     developed under this subsection shall measure the applicant's 
     progress toward increasing public safety by reducing rates of 
     recidivism and enabling released offenders to transition 
     successfully back into their communities.
       ``(i) Reentry Task Force.--
       ``(1) In general.--As a condition of receiving financial 
     assistance under this section, each State or local government 
     receiving a grant shall establish or empower a Reentry Task 
     Force, or other relevant convening authority, to examine ways 
     to pool existing resources and funding streams to promote 
     lower recidivism rates for returning prisoners, and to 
     minimize the harmful effects of incarceration on families and 
     communities by collecting data and best practices in offender 
     reentry from demonstration grantees and other agencies and 
     organizations.
       ``(2) Membership.--The task force or other authority shall 
     be comprised of relevant State or local leaders, agencies, 
     service providers, community-based organizations, and 
     stakeholders.
       ``(j) Strategic Performance Outcomes.--
       ``(1) In general.--Each applicant shall identify specific 
     performance outcomes related to the long-term goals of 
     increasing public safety and reducing recidivism.
       ``(2) Performance outcomes.--The performance outcomes 
     identified under paragraph (1) shall include, with respect to 
     offenders released back into the community--
       ``(A) recommitment rates;
       ``(B) reduction in crime;
       ``(C) employment and education;
       ``(D) violations of conditions of supervised release;
       ``(E) child support;
       ``(F) housing;
       ``(G) drug and alcohol abuse; and
       ``(H) participation in mental health services.
       ``(3) Optional measures.--States may also report on other 
     activities that increase the success rates of offenders who 
     transition from prison, such as programs that foster 
     effective risk management and treatment programming, offender 
     accountability, and community and victim participation.
       ``(4) Coordination.--Applicants should coordinate with 
     communities and stakeholders about the selection of 
     performance outcomes identified by the applicants and with 
     the Department of Justice for assistance with data collection 
     and measurement activities.
       ``(5) Report.--Each grantee shall submit an annual report 
     to the Department of Justice that--
       ``(A) identifies the grantee's progress toward achieving 
     its strategic performance outcomes; and
       ``(B) describes other activities conducted by the grantee 
     to increase the success rates of the reentry population.
       ``(k) Performance Measurement.--
       ``(1) In general.--The Department of Justice, in 
     consultation with the States, shall--
       ``(A) identify primary and secondary sources of information 
     to support the measurement of the performance indicators 
     identified under this section;
       ``(B) identify sources and methods of data collection in 
     support of performance measurement required under this 
     section;
       ``(C) provide to all grantees technical assistance and 
     training on performance measures and data collection for 
     purposes of this section; and
       ``(D) coordinate with the Substance Abuse and Mental Health 
     Services Administration on strategic performance outcome 
     measures and data collection for purposes of this section 
     relating to substance abuse and mental health.
       ``(2) Coordination.--The Department of Justice shall 
     coordinate with other Federal agencies to identify national 
     sources of information to support State performance 
     measurement.
       ``(l) Future Eligibility.--To be eligible to receive a 
     grant under this section for fiscal years after the first 
     receipt of such a grant, a State shall submit to the Attorney 
     General such information as is necessary to demonstrate 
     that--
       ``(1) the State has adopted a reentry plan that reflects 
     input from community-based and faith-based organizations;
       ``(2) the public has been afforded an opportunity to 
     provide input in the development of the plan;
       ``(3) the State's reentry plan includes performance 
     measures to assess the State's progress toward increasing 
     public safety by reducing by 10 percent over the 2-year 
     period the rate at which individuals released from prison who 
     participate in the reentry system supported by Federal funds 
     are recommitted to prison; and
       ``(4) the State will coordinate with the Department of 
     Justice, community-based and faith-based organizations, and 
     other experts regarding the selection and implementation of 
     the performance measures described in subsection (k).
       ``(m) National Adult and Juvenile Offender Reentry Resource 
     Center.--
       ``(1) Authority.--The Attorney General may, using amounts 
     made available to carry out this subsection, make a grant to 
     an eligible organization to provide for the establishment of 
     a National Adult and Juvenile Offender Reentry Resource 
     Center.
       ``(2) Eligible organization.--An organization eligible for 
     the grant under paragraph (1) is any national nonprofit 
     organization approved by the Federal task force established 
     under the Enhanced Second Chance Act of 2004 that represents, 
     provides technical assistance and training to, and has 
     special expertise and broad, national-level experience in 
     offender reentry programs, training, and research.
       ``(3) Use of funds.--The organization receiving the grant 
     shall establish a National Adult and Juvenile Offender 
     Reentry Resource Center to--
       ``(A) provide education, training, and technical assistance 
     for States, local governments, territories, Indian tribes, 
     service providers, faith based organizations, and corrections 
     institutions;
       ``(B) collect data and best practices in offender reentry 
     from demonstration grantees and others agencies and 
     organizations;
       ``(C) develop and disseminate evaluation tools, mechanisms, 
     and measures to better assess and document coalition 
     performance measures and outcomes;
       ``(D) disseminate knowledge to States and other relevant 
     entities about best practices, policy standards, and research 
     findings;
       ``(E) develop and implement procedures to assist relevant 
     authorities in determining when release is appropriate and in 
     the use of data to inform the release decision;
       ``(F) develop and implement procedures to identify 
     efficiently and effectively those violators of probation or 
     parole who should be returned to prison and those who should 
     receive other penalties based on defined, graduated 
     sanctions;
       ``(G) collaborate with the Federal task force established 
     under the Enhanced Second Chance Act of 2004 and the Federal 
     Resource Center for Children of Prisoners;
       ``(H) develop a national research agenda; and
       ``(I) bridge the gap between research and practice by 
     translating knowledge from research into practical 
     information.
       ``(4) Of amounts made available to carry out this section, 
     not more than 4 percent

[[Page 21425]]

     shall be available to carry out this subsection.
       ``(n) Administration.--Of amounts made available to carry 
     out this section, not more than 2 percent shall be available 
     for administrative expenses in carrying out this section.''.
       (d) Authorization of Appropriations.--Section 2976 of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3797w) is amended in subsection (o)(1), as redesignated by 
     subsection (c), by striking ``and $16,000,000 for fiscal year 
     2005'' and inserting ``$130,000,000 for fiscal year 2005, and 
     $130,000,000 for fiscal year 2006''.

     SEC. 4. TASK FORCE ON FEDERAL PROGRAMS AND ACTIVITIES 
                   RELATING TO REENTRY OF OFFENDERS.

       (a) Task Force Required.--The Attorney General, in 
     consultation with the Secretary of Housing and Urban 
     Development, the Secretary of Labor, the Secretary of 
     Education, the Secretary of Health and Human Services, the 
     Secretary of Agriculture, the Secretary of Veterans Affairs, 
     and the heads of such other elements of the Federal 
     Government as the Attorney General considers appropriate, and 
     in collaboration with stakeholders, service providers, 
     community-based organizations, States, territories, Indian 
     tribes, and local governments, shall establish an interagency 
     task force on programs and activities relating to the reentry 
     of offenders into the community.
       (b) Duties.--The task force established under subsection 
     (a) shall--
       (1) identify such programs and activities that may be 
     resulting in overlapping or duplication of services, the 
     scope of such overlapping or duplication, and the 
     relationship of such overlapping and duplication to public 
     safety, public health, and effectiveness and efficiency;
       (2) identify methods to improve collaboration and 
     coordination of such programs and activities;
       (3) identify areas of responsibility in which improved 
     collaboration and coordination of such programs and 
     activities would result in increased effectiveness or 
     efficiency;
       (4) develop innovative interagency or intergovernmental 
     programs, activities, or procedures that would improve 
     outcomes of reentering offenders and children of offenders;
       (5) develop methods for increasing regular communication 
     that would increase interagency program effectiveness;
       (6) identify areas of research that can be coordinated 
     across agencies with an emphasis on applying science-based 
     practices to support treatment and intervention programs for 
     reentering offenders;
       (7) identify funding areas that should be coordinated 
     across agencies and any gaps in funding; and
       (8) in conjunction with the National Adult and Juvenile 
     Offender Reentry Resource Center, identify successful 
     programs currently operating and collect best practices in 
     offender reentry from demonstration grantees and other 
     agencies and organizations, determine the extent to which 
     such programs and practices can be replicated, and make 
     information on such programs and practices available to 
     States, localities, community-based organizations, and 
     others.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the task force established under 
     subsection (a) shall submit a report, including 
     recommendations, to Congress on barriers to reentry. The task 
     force shall provide for public input in preparing the report. 
     The report shall identify Federal and other barriers to 
     successful reentry of offenders into the community and 
     analyze the effects of such barriers on offenders and on 
     children and other family members of offenders, including 
     barriers to--
       (1) parental incarceration as a consideration for purposes 
     of family reunification under the Adoption and Safe Families 
     Act of 1997;
       (2) admissions in and evictions from Federal housing 
     programs;
       (3) child support obligations and procedures;
       (4) Social Security benefits, veterans benefits, food 
     stamps, and other forms of Federal public assistance;
       (5) Medicaid and Medicare procedures, requirements, 
     regulations, and guidelines;
       (6) education programs, financial assistance, and full 
     civic participation;
       (7) TANF program funding criteria and other welfare 
     benefits;
       (8) employment;
       (9) laws, regulations, rules, and practices that restrict 
     Federal employment licensure and participation in Federal 
     contracting programs;
       (10) reentry procedures, case planning, and the transition 
     of persons from the custody of the Federal Bureau of Prisons 
     to a Federal parole or probation program or community 
     corrections;
       (11) laws, regulations, rules, and practices that may 
     require a parolee to return to the same county that the 
     parolee was living in prior to his or her arrest, and the 
     potential for changing such laws, regulations, rules, and 
     practices so that a parolee may change his or her setting 
     upon release, and not settle in the same location with 
     persons who may be a negative influence; and
       (12) pre-release planning procedures for prisoners to 
     ensure that a prisoner's eligibility for Federal or State 
     benefits (including Medicaid, Medicare, Social Security, and 
     veteran's benefits) upon release is established prior to 
     release, subject to any limitations under the law, and the 
     provision of referrals to appropriate social and health 
     services or are linked to appropriate community-based 
     organizations.
       (d) Annual Reports.--On an annual basis, the task force 
     required by subsection (a) shall submit to Congress a report 
     on the activities of the task force, including specific 
     recommendations of the task force on matters referred to in 
     subsection (b).

     SEC. 5. OFFENDER REENTRY RESEARCH.

       (a) National Institute of Justice.--From amounts made 
     available to carry out this Act, the National Institute of 
     Justice may conduct research on offender reentry, including--
       (1) a study identifying the number and characteristics of 
     children who have had a parent incarcerated and the 
     likelihood of these minors becoming involved in the criminal 
     justice system some time in their lifetime;
       (2) a study identifying a mechanism to compare rates of 
     recidivism (including re-arrest, violations of parole and 
     probation, and re-incarceration) among States; and
       (3) a study on the population of individuals released from 
     custody who do not engage in recidivism and the 
     characteristics (housing, employment, treatment, family 
     connection) of that population.
       (b) Bureau of Justice Statistics.--From amounts made 
     available to carry out this Act, the Bureau of Justice 
     Statistics may conduct research on offender reentry, 
     including--
       (1) an analysis of special populations, including prisoners 
     with mental illness or substance abuse disorders, female 
     offenders, juvenile offenders, and the elderly, that present 
     unique reentry challenges;
       (2) studies to determine who is returning to prison or jail 
     and which of those returning prisoners represent the greatest 
     risk to community safety;
       (3) annual reports on the profile of the population coming 
     out of prisons, jails, and juvenile justice facilities;
       (4) a national recidivism study every 3 years; and
       (5) a study of parole violations and revocations.

     SEC. 6. CHILDREN OF INCARCERATED PARENTS AND FAMILIES.

       (a) Intake Procedures and Education Programs.--
       (1) Pilot program.--The Federal Bureau of Prisons shall, 
     using amounts made available to carry out this subsection, 
     carry out a pilot program to--
       (A) collect information regarding the dependent children of 
     an incarcerated person as part of standard intake procedures, 
     including the number, age, and residence of such children;
       (B) review all policies, practices, and facilities to 
     ensure that, as appropriate to the health and well-being of 
     the child, they support the relationship between family and 
     child;
       (C) identify the training needs of staff with respect to 
     the impact of incarceration on children, families, and 
     communities, age-appropriate interactions, and community 
     resources for the families of incarcerated persons; and
       (D) take such steps as are necessary to encourage State 
     correctional agencies to implement the requirements of 
     subparagraphs (A) through (C).
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to carry out this subsection $1,500,000 
     for each of fiscal years 2005 and 2006.
       (b) Duties of Secretary.--The Secretary of Health and Human 
     Services shall--
       (1) review, and make available to States a report on any 
     recommendations regarding, the role of State child protective 
     services at the time of the arrest of a person; and
       (2) by regulation, establish such services as the Secretary 
     determines necessary, as appropriate to the health and well-
     being of any child involved, for the preservation of families 
     that have been impacted by the incarceration of a family 
     member.

     SEC. 7. ENCOURAGEMENT OF EMPLOYMENT OF FORMER PRISONERS.

       The Secretary of Labor shall take such steps as are 
     necessary to implement a program, including but not limited 
     to the Employment and Training Administration, to educate 
     employers about existing incentives, including bonding, to 
     the hiring of former Federal, State, or county prisoners.

     SEC. 8. FEDERAL RESOURCE CENTER FOR CHILDREN OF PRISONERS.

       There are authorized to be appropriated to the Secretary of 
     Health and Human Services for each of fiscal years 2005 and 
     2006, such sums as may be necessary for the continuing 
     activities of the Federal Resource Center for Children of 
     Prisoners, including conducting a review of the policies and 
     practices of State and Federal corrections agencies to 
     support parent-child relationships, as appropriate for the 
     health and well-being of the child.

     SEC. 9. ELIMINATION OF AGE REQUIREMENT FOR RELATIVE CAREGIVER 
                   UNDER NATIONAL FAMILY CAREGIVER SUPPORT 
                   PROGRAM.

       Section 372 of the National Family Caregiver Support Act 
     (part E of title III of the

[[Page 21426]]

     Older Americans Act of 1965; 42 U.S.C. 3030s) is amended in 
     paragraph (3) by striking ``who is 60 years of age or older 
     and--'' and inserting ``who--''.

     SEC. 10. CLARIFICATION OF AUTHORITY TO PLACE PRISONER IN 
                   COMMUNITY CORRECTIONS.

       Section 3624(c) of title 18, United States Code, is amended 
     to read as follows:
       ``(c) Pre-Release Custody.--
       ``(1) In general.--The Bureau of Prisons shall, to the 
     extent practicable, assure that a prisoner serving a term of 
     imprisonment spends a reasonable part of the final portion of 
     the term to be served, not to exceed 1 year, under conditions 
     that will afford the prisoner a reasonable opportunity to 
     adjust to and prepare for the prisoner's reentry into the 
     community. Such conditions may include a community 
     correctional facility.
       ``(2) Authority.--This subsection authorizes the Bureau of 
     Prisons to place a prisoner in home confinement for the last 
     10 per centum of the term to be served, not to exceed 6 
     months.
       ``(3) Assistance.--The United States Probation System 
     shall, to the extent practicable, offer assistance to a 
     prisoner during such pre-release custody.
       ``(4) No limitations.--Nothing in this subsection shall be 
     construed to limit or restrict the authority of the Bureau of 
     Prisons granted under section 3621 of this title.''.

     SEC. 11. USE OF VIOLENT OFFENDER TRUTH-IN-SENTENCING GRANT 
                   FUNDING FOR DEMONSTRATION PROJECT ACTIVITIES.

       Section 20102(a) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 13702(a)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(4) to carry out any activity referred to in subsections 
     (b) and (c) of section 2976 of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3797w(b)-(c)).''.

     SEC. 12. GRANTS TO STUDY PAROLE OR POST INCARCERATION 
                   SUPERVISION VIOLATIONS AND REVOCATIONS.

       (a) Grants Authorized.--From amounts made available to 
     carry out this section, the Attorney General may award grants 
     to States to study, and to improve the collection of data 
     with respect to, individuals whose parole or post 
     incarceration supervision is revoked and which such 
     individuals represent the greatest risk to community safety.
       (b) Application.--As a condition of receiving a grant under 
     this section, a State shall--
       (1) certify that the State has, or intends to establish, a 
     program that collects comprehensive and reliable data with 
     respect to individuals described in subsection (a), including 
     data on--
       (A) the number and type of parole or post incarceration 
     supervision violations that occur within the State;
       (B) the reasons for parole or post incarceration 
     supervision revocation;
       (C) the underlying behavior that led to the revocation; and
       (D) the term of imprisonment or other penalty that is 
     imposed for the violation; and
       (2) provide the data described in paragraph (1) to the 
     Bureau of Justice Statistics, in a form prescribed by the 
     Bureau.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each of fiscal years 2005 and 2006.

     SEC. 13. REAUTHORIZATION OF RESIDENTIAL SUBSTANCE ABUSE 
                   TREATMENT FOR STATE PRISONERS PROGRAM.

       (a) In General.--The Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3701 et seq.) is amended by inserting 
     after section 1905 the following:

     ``SEC. 1906. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out the purposes of this part for each of 
     fiscal years 2005 through 2010.''.
       (b) Improvements to Program.--Section 1902 of the Omnibus 
     Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796ff-
     1) is amended--
       (1) in subsection (c)--
       (A) in the subsection heading, by striking ``Eligibility 
     for Preference With'' and inserting ``Requirement for'';
       (B) by striking paragraph (1) and inserting the following:
       ``(1) To be eligible for funding under this part, a State 
     shall ensure that individuals who participate in the 
     evidence-based substance abuse treatment program established 
     or implemented with assistance provided under this part will 
     be provided with aftercare services.''; and
       (C) by adding at the end the following:
       ``(4) Aftercare services required under paragraph (1) shall 
     be funded by amounts made available under this part.'';
       (2) by redesignating subsections (c) through (f) as (d) 
     through (g), respectively; and
       (3) by inserting after subsection (b) the following:
       ``(c) Definition of Residential Substance Abuse 
     Treatment.--The term `residential substance abuse treatment' 
     means a course of evidence-based individual and group 
     activities and treatment, lasting not less than 6 months, in 
     residential treatment facilities set apart from the general 
     prison population. Such treatment can include the use of 
     pharmacotherapies, where appropriate, that may be 
     administered for more than 6 months.''.

     SEC. 14. REAUTHORIZATION OF SUBSTANCE ABUSE TREATMENT PROGRAM 
                   UNDER TITLE 18.

       Section 3621(e) of title 18, United States Code, is 
     amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection for each of fiscal years 2005 
     through 2010.''; and
       (2) in paragraph (5), by striking subparagraph (A) and 
     inserting the following:
       ``(A) the term `residential substance abuse treatment' 
     means a course of evidence-based individual and group 
     activities and treatment, lasting not less than 6 months, in 
     residential treatment facilities set apart from the general 
     prison population, and such treatment can include the use of 
     pharmacotherapies, where appropriate, that may be 
     administered for more than 6 months;''.

     SEC. 15. REMOVAL OF LIMITATION ON AMOUNT OF FUNDS AVAILABLE 
                   FOR CORRECTIONS EDUCATION PROGRAMS UNDER THE 
                   ADULT EDUCATION AND FAMILY LITERACY ACT.

       (a) In General.--Section 222(a)(1) of the Adult Education 
     and Family Literacy Act (20 U.S.C. 9222(a)(1)) is amended by 
     striking ``, of which not more than 10 percent'' and 
     inserting ``of which not less than 10 percent''.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Education shall 
     submit to Congress a report on the use of literacy funds to 
     correctional intuitions, as defined in section 225(d)(2) of 
     the Adult Education and Family Literacy Act (20 U.S.C. 
     9224(d)(2)).   The report shall specify the amount of 
     literacy funds that are provided to each category of 
     correctional institution in each State, and identify whether 
     funds are being sufficiently allocated among the various 
     types of institutions.

     SEC. 16. TECHNICAL AMENDMENT TO DRUG-FREE STUDENT LOANS 
                   PROVISION TO ENSURE THAT IT APPLIES ONLY TO 
                   OFFENSES COMMITTED WHILE RECEIVING FEDERAL AID.

       Section 4840(r)(1) of the Higher Education Act of 1965 (20 
     U.S.C. 1091(r)(1)) is amended by striking ``A student'' and 
     all that follows through ``table:'' and inserting the 
     following: ``A student who is convicted of any offense under 
     any Federal or State law involving the possession or sale of 
     a controlled substance for conduct that occurred during a 
     period of enrollment for which the student was receiving any 
     grant, loan, or work assistance under this title shall not be 
     eligible to receive any grant, loan, or work assistance under 
     this title from the date of that conviction for the period of 
     time specified in the following table:''.

     SEC. 17. MENTORING GRANTS TO COMMUNITY-BASED ORGANIZATIONS.

       (a) Authority To Make Grants.--From amounts made available 
     under this section, the Secretary of Labor shall make grants 
     to community-based organizations for the purpose of providing 
     mentoring and other transitional services essential to 
     reintegrating ex-offenders and incarcerated persons into 
     society.
       (b) Use of Funds.--Grant funds awarded under subsection (a) 
     may be used for--
       (1) mentoring adult and juvenile offenders; and
       (2) transitional services to assist in the re-integration 
     of ex-offenders into the community.
       (c) Application.--To be eligible to receive a grant under 
     this section, a community-based organization shall submit an 
     application to the Secretary of Labor, based upon criteria 
     developed by the Secretary of Labor in consultation with the 
     Attorney General and the Secretary of Housing and Urban 
     Development.
       (d) Strategic Performance Outcomes.--The Secretary of Labor 
     may require each applicant to identify specific performance 
     outcomes related to the long-term goal of stabilizing 
     communities by reducing recidivism and re-integrating ex-
     offenders and incarcerated persons into society.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2005 and 2006.

     SEC. 18. GROUP HOMES FOR RECOVERING SUBSTANCE ABUSERS.

       Section 1925 of the Public Health Service Act (42 U.S.C. 
     300x-25) is amended--
       (1) in subsection (a)(4), by striking ``$4,000'' and 
     inserting ``$6,000''; and
       (2) by adding at the end the following:
       ``(d) Recovery Home Outreach Workers.--
       ``(1) In general.--The Secretary shall award a grant to an 
     eligible entity to enable such entity to establish group 
     homes for recovering substance abusers in accordance with 
     this section.
       ``(2) Eligibility.--To be eligible to receive a grant under 
     paragraph (1), an entity shall--

[[Page 21427]]

       ``(A) be a national nonprofit organization that has 
     established at least 500 self-administered, self-supported 
     substance abuse recovery homes; and
       ``(B) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       ``(3) Use of funds.--An entity shall use amounts received 
     under the grant under paragraph (1) to--
       ``(A) establish group homes for recovering substance 
     abusers that conform to the requirements of subparagraphs (A) 
     through (D) of subsection (a)(6), through activities 
     including--
       ``(i) locating a suitable facility to use as the group 
     home;
       ``(ii) the execution of a lease for the use of such home; 
     and
       ``(iii) obtaining a charter for the operation of such home 
     from a national non-profit organization;
       ``(B) recruit recovering substance abusers to reside in the 
     group home by working with criminal justice officials and 
     substance abuse treatment providers, including through 
     activities targeting individuals being released from 
     incarceration; and
       ``(C) carry out other activities related to establishing a 
     group home for recovering substance abusers.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection, 
     $1,000,000 for each of fiscal years 2005 through 2009. 
     Amounts appropriated under this paragraph shall be in 
     addition to amounts otherwise appropriated to carry out this 
     subpart.''.

     SEC. 19. IMPROVED REENTRY PROCEDURES FOR FEDERAL PRISONERS.

       (a) General Reentry Procedures.--The Department of Justice 
     shall take such steps as are necessary to modify existing 
     procedures and policies to enhance case planning and to 
     improve the transition of persons from the custody of the 
     Bureau of Prisons to the community, including placement of 
     such individuals in community corrections facilities.
       (b) Procedures Regarding Benefits.--The Bureau of Prisons 
     shall establish pre-release planning procedures for Federal 
     prisoners to ensure that a prisoner's eligibility for Federal 
     or State benefits (including Medicaid, Medicare, Social 
     Security and veterans benefits) upon release is established 
     prior to release, subject to any limitations in law. The 
     Bureau shall also coordinate with inmates to ensure that 
     inmates have medical appointments scheduled and have plans to 
     secure needed and sufficient medications, particularly with 
     regard to the treatment of mental illness. The Bureau shall 
     provide each ex-offender released from Federal prisons 
     information on how the reentering offender can restore voting 
     rights, and other civil or civic rights, denied to the 
     reentering offender based upon their offender status in the 
     State to which that reentering offender shall be returning. 
     This information shall be provided to each reentering 
     offender in writing, and in a language that the reentering 
     offender can understand.

     SEC. 20. FAMILY UNIFICATION IN PUBLIC HOUSING.

       Section 576 of the Quality Housing and Work Responsibility 
     Act of 1988 (Public Law 105-276; 42 U.S.C. 13661) is 
     amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Authority To Deny Admission to Criminal Offenders.--
       ``(1) In general.--Except as provided in subsections (a) 
     and (b) of this section and in addition to any other 
     authority to screen applicants, in selecting among applicants 
     for admission to the program or to federally assisted 
     housing, if the public housing agency or owner of such 
     housing, as applicable, determines that an applicant or any 
     member of the applicant's household is engaged in or was 
     convicted of, during a reasonable time preceding the date 
     when the applicant household would otherwise be selected for 
     admission, any drug-related or violent criminal activity or 
     other criminal activity which would adversely affect the 
     health, safety, or right to peaceful enjoyment of the 
     premises by other residents, the owner, or public housing 
     agency employees, the public housing agency or owner may--
       ``(A) deny such applicant admission to the program or to 
     federally assisted housing; and
       ``(B) after the expiration of the reasonable period 
     beginning upon such activity, require the applicant, as a 
     condition of admission to the program or to federally 
     assisted housing, to submit to the public housing agency or 
     owner evidence sufficient (as the Secretary shall by 
     regulation provide) to ensure that the individual or 
     individuals in the applicant's household who engaged in 
     criminal activity for which denial was made under paragraph 
     (1) have not engaged in any criminal activity during such 
     reasonable period.
       ``(2) Consideration of rehabilitation.--In determining 
     whether, pursuant to paragraph (1), to deny admission to the 
     program or federally assisted housing to any household, a 
     public housing agency or an owner shall, prior to an initial 
     denial of eligibility, consider the following factors:
       ``(A) The effect of denial on the applicant's family, 
     particularly minor children.
       ``(B) Whether such household member has successfully 
     completed a supervised drug or alcohol rehabilitation program 
     (as applicable) and is no longer engaging in the illegal use 
     of a controlled substance or abuse of alcohol (as applicable) 
     to the extent that such use would constitute a threat to the 
     health, safety, or well-being of other residents.
       ``(C) Whether such household member has otherwise been 
     rehabilitated successfully and is no longer engaging in the 
     illegal use of a controlled substance or abuse of alcohol (as 
     applicable) to the extent that such use would constitute a 
     threat to the health, safety, or well-being of other 
     residents.
       ``(D) Whether such household member is participating in a 
     supervised drug or alcohol rehabilitation program (as 
     applicable) and is no longer engaging in the illegal use of a 
     controlled substance or abuse of alcohol (as applicable) to 
     the extent that such use would constitute a threat to the 
     health, safety, or well-being of other residents.
       ``(E) Other mitigating circumstances such as--
       ``(i) the applicant's involvement in the community;
       ``(ii) the applicant's enrollment in or completion of a job 
     training program;
       ``(iii) the employment status of the applicant;
       ``(iv) any other circumstances which reflect the efforts 
     the applicant has made toward rehabilitation; and
       ``(v) the availability of other housing options.''; and
       (2) by adding at the end the following:
       ``(d) Conditional Eligibility.--A public housing agency or 
     owner of such housing may condition an applicant's or a 
     household's eligibility for federally assisted housing on the 
     participation of the applicant, or a member of the 
     applicant's household, in a supervised rehabilitation 
     program, or other appropriate social services.''.

  Mr. SPECTER. Mr. President, I have sought recognition to speak in 
support of legislation which I am sponsoring with the Senator from 
Delaware, Mr. Biden--the Enhanced Second Chance Act of 2004. This year, 
more than 650,000 inmates will be released from the United States' 
prisons. Nearly two-thirds of released prisoners are re-arrested for 
either a felony or a serious misdemeanor within 3 years of release. 
This ``revolving door'' of criminals endangers our communities. Yet, it 
should really come as no surprise that an individual who is released 
and who is illiterate or lacks the necessary skills to get a job 
returns to a life of crime. The need to address the issue of recidivism 
to protect the public is apparent and the Enhanced Second Chance Act is 
designed to address that need and stop the ``revolving door'' at our 
Nation's correctional facilities. This bill gives criminal offenders a 
second chance at rehabilitation and gainful employment by creating 
successful reentry programs focused on education and job training.
  There are two categories of individuals that we must focus our 
concern on in our fight to reduce recidivism--the career criminal and 
the person who will one day return back to his or her community. As for 
the career criminal, I wrote the Armed Career Criminal Bill that was 
adopted in 1984, which provides for life sentences for career 
criminals. These individuals, who have committed three or more major 
offenses and caught in possession of a firearm, receive mandatory 
sentences up to life.
  The second category of individuals--individuals who will one day be 
released--are a special circumstance because this is not about locking 
them up forever but about making sure they have an opportunity to turn 
their life around. It is about focusing on literacy and job training in 
order to reduce recidivism and prevent those individuals from becoming 
career criminals.
  The Enhanced Second Chance Act is aimed at better equipping the 
community, increasing public safety, and helping States and communities 
address the growing population of ex-offenders returning to 
communities. The act authorizes a $130 million a year grant program for 
State and local governments aimed at creating programs to help reduce 
recidivism rates and to create procedures to ensure that dangerous 
felons are not released from prison prematurely. It also calls for 
either establishing or expanding the use of State reentry courts to 
monitor ex-offenders returning to the community and to provide them 
with drug and alcohol treatment as well as necessary mental and medical 
services.
  One of the most significant concerns that our communities face with 
regards to prisoners is the impact on

[[Page 21428]]

their children and communities. Between 1991 and 1999, the number of 
children with a parent in a Federal or State correction facility 
increased by more than 100 percent from approximately 900,000 to 
approximately 2 million. This legislation deals with the issues and 
obstacles that these children face. The Enhanced Second Chance Act of 
2004 creates a new program designed to support the relationship between 
parent and child while the parent is incarcerated and to help with 
family unification when the parent is released. It also instructs the 
Secretary of Health and Human Services to re-examine the current 
programs that are in place to help support the parent-child 
relationship while the parent is incarcerated and to establish the 
necessary services to help preserve the family relationship.
  Another major concern is incarcerated juveniles. Juveniles have a 
recidivism rate ranging from 55 to 75 percent. These figures are 
staggering and that is why I have pushed for so many years for 
legislation aimed at educating these young offenders prior to their 
release. I have consistently sponsored legislation that would provide 
for workplace and community transition training for incarcerated youth 
offenders while in prison and would provide employment counseling and 
other services that would continue while the individual was on parole. 
The Enhanced Second Chance Act of 2004 builds upon my earlier efforts 
and provides effective reentry and aftercare programs so that these 
young individuals will have a chance at a successful transition back 
into the community. This bill encourages State and local governments to 
assess the literacy and educational needs of incarcerated individuals 
and to identify appropriate services to meet those needs while they are 
incarcerated. Moreover, this bill provides for collaboration with 
community colleges and employment services to connect inmates with 
employment opportunities before they are released back into the 
community.
  The New York Times recently reported that 5 million people, or 
roughly 2.3 percent of the electorate, will be barred from voting in 
November by State laws that strip felons of voting rights. However many 
ex-felons are in fact eligible to vote but do not do so simply because 
they are not aware that they have this right. The Enhanced Second 
Chance Act helps remove the confusion and mandates that prison 
officials provide each ex-offender released from Federal prison 
information on how the reentering offender can restore his or her 
voting rights. Information must be provided to each ex-offender in 
writing and in a language that he or she can understand. This will 
allow ex-offenders to feel more connected to their communities and is 
another important tool in the fight to reduce recidivism.
  I am pleased to join the distinguished Senator from Delaware in 
introducing this important and much-needed legislation. The Enhanced 
Second Chance Act of 2004 is a very positive step forward in providing 
realistic rehabilitation to individuals needing a second chance. I 
wholeheartedly agree with President Bush's statement that ``America is 
the land of second chance, and when the gates of the prison open, the 
path ahead should lead to a better life.'' The President urged us to 
work in a bipartisan fashion and I believe that this bill is the first 
step in the right direction.
  Mr. BINGAMAN. Mr. President, I rise today, along with Senators Biden, 
Specter, and Landrieu, to introduce the Enhanced Second Chance Act of 
2004.
  I believe this is an important bill that will significantly improve 
public safety by providing $130 million a year for a competitive grant 
program to State, local, and tribal governments to reduce recidivism 
rates and improve the transition of offenders back into society. In 
addition to the adult and juvenile demonstration projects, the bill 
would create a Federal reentry task force, reauthorize funding for drug 
treatment programs in State and Federal correctional facilities, 
establish a program within the Bureau of Prisons to promote family 
reunification, bring additional literacy funds to correctional 
institutions, and establish a mentoring grant program for community-
based organizations to assist inmates with their reentry back into the 
community.
  We as a society have an interest in ensuring that when prisoners are 
released that they be reintegrated back into the community in a manner 
that reduces the likelihood of them committing additional crimes. 
Providing assistance to these individuals is not a charity, it is a 
matter of good public policy. Without employment, without housing, 
without basic life skills, without help in treating drug addiction or 
mental illness, offenders are likely to relapse into criminal behavior. 
It is insufficient to just punish offenders; we also need to look for 
ways that we can rehabilitate offenders and create an environment that 
fosters their ability to make a positive contribution to society.
  There are programs in State and Federal detention facilities that are 
beginning to address some of these issues, but frankly, I believe we 
need to be doing more--especially with regard to jails across the 
country. By neglecting to focus on inmates in local jails we are also 
losing out on targeting the largest population of offenders that is 
returning to the community--it is estimated that jails return 10 to 20 
times the number of people into the community as do Federal and State 
prisons, approximately 10 million releases a year. I am very pleased 
that my suggestions regarding recognizing the role of local jails in 
the reentry process were incorporated into this bill.
  I also believe we need to pay more attention to the issue of 
illiteracy among inmates. According to the National Institute of 
Literacy, 70 percent of all prisoners function at the two lowest 
literacy levels. Considering that studies have consistently 
demonstrated that correctional educational programs reduce recidivism 
rates by up to 30 percent, I strongly believe this is an area which 
deserves attention, and I am happy that this bill will bring additional 
resources for literacy programs.
  If we are going to reduce the recidivism rate, we can't overlook the 
importance of getting these offenders the tools necessary to succeed in 
the community without recourse to crime. With over 2 million people 
incarcerated in the United States, if punishment is all we do, without 
any effort to rehabilitate and reintegrate offenders into the 
community, society will bear a heavy burden. Over 650,000 offenders are 
released from State and Federal facilities each year, in addition to 
100,000 juveniles and the numerous individuals coming in and out of 
local jails that I previously mentioned. It makes sense to do all we 
can to ensure that these people are rehabilitated and have the skills 
necessary to successfully change course.
  In recent years, many States and localities have begun to improve 
ways to transition offenders back into communities, and I believe that 
this bill provides the resources necessary to continue this effort.
                                 ______
                                 
      By Mr. VOINOVICH (for himself and Mr. Coleman):
  S. 2926. A bill to amend the Internal Revenue Code of 1986 to allow 
taxpayers a credit against income tax for expenditures to remediate 
contaminated sites; to the Committee on Finance.
  Mr. VOINOVICH. Mr. President, revitalizing our urban areas has been 
an issue I have been passionate about for many years. As former Mayor 
of Cleveland, I experienced firsthand the difficulties that cities face 
in redeveloping these sites for reuse.
  The legislation I am introducing today with Senator Coleman, the 
Brownfields Revitalization Act of 2004, will provide incentives to 
clean up abandoned industrial sites--or brownfields--across the country 
and put them back into productive use and preserve our green spaces. I 
am pleased to be working on this important legislation with my 
colleague from Ohio, Congressman Mike Turner.
  I have been working on brownfields issues at the national level since 
I became Governor of Ohio in 1990 and through my involvement with the 
National Governors' Association and the

[[Page 21429]]

Republican Governors' Association. For almost 15 years, I have worked 
closely with congressional leaders to develop legislation that would 
encourage cleanup and redevelopment of these sites nationwide.
  In 2001, I was closely involved in the Senate Environment and Public 
Works Committee's work on the Brownfields Revitalization and 
Environmental Restoration Act which, in part, provided grants to local 
governments to remediate and redevelop brownfields sites. Grants such 
as these are important because they provide incentives to clean up 
existing sites, which will provide better protection for the health and 
safety of our citizens and the environment. I believe the tax 
incentives in the bill I'm introducing today will work hand in hand 
with the grants that are already authorized to encourage private 
remediation and redevelopment efforts.
  To enhance and encourage cleanup efforts, my State of Ohio has 
implemented a private sector-based program to clean up brownfields 
sites. When I was Governor, Ohio EPA, Republicans and Democrats in the 
Ohio General Assembly and I worked hard to implement a program that we 
believe works for Ohio. Our program is already successful in improving 
Ohio's environment and economy. In fact, 141 sites have been cleaned up 
under Ohio's voluntary cleanup program in 8 years. And many more 
cleanups are underway.
  The legislation I am introducing today will build upon the success of 
State programs such as Ohio's by providing even more incentives to 
clean up brownfield sites in order to provide better protection for the 
health and safety of our citizens and the environment.
  This legislation will provide additional tools to recycle our urban 
wastelands, prevent urban sprawl and preserve our farmland and 
greenspaces. We will be able to clean up industrial eyesores in our 
cities and make them more desirable places to live. Because they are 
putting abandoned sites back into productive use, they are a key 
element to providing economic rebirth to many urban areas, and good-
paying jobs to local residents.
  This bill makes sense for our environment and it makes sense for our 
economy. It is supported by the mayors of Ohio's major cities, the U.S. 
Conference of Mayors, the International Council of Shopping Centers, 
Empower America, American Council of Engineering Companies, and the 
National Association of Home Builders.
  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. 2926

       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 ``Brownfields Revitalization 
     Act of 2004''.

     SEC. 2. CREDIT FOR EXPENDITURES TO REMEDIATE CONTAMINATED 
                   SITES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business related credits) is amended by adding at the end the 
     following new section:

     ``SEC. 45G. ENVIRONMENTAL REMEDIATION CREDIT.

       ``(a) In General.--For purposes of section 38, the 
     environmental remediation credit determined under this 
     section is 50 percent of the qualified remediation 
     expenditures paid or incurred by the taxpayer during the 
     taxable year with respect to a qualified contaminated site 
     located in an eligible area.
       ``(b) Qualified Remediation Expenditures.--For purposes of 
     this section, the term `qualified remediation expenditures' 
     means expenditures, whether or not chargeable to capital 
     account, in connection with--
       ``(1) the abatement or control of any hazardous substance 
     (as defined in section 198(d)), petroleum, or any petroleum 
     by-product at the qualified contaminated site in accordance 
     with an approved remediation and redevelopment plan,
       ``(2) the complete demolition of any structure on such site 
     if any portion of such structure is demolished in connection 
     with such abatement or control,
       ``(3) the removal and disposal of property in connection 
     with the activities described in paragraphs (1) and (2), and
       ``(4) the reconstruction of utilities in connection with 
     such activities.

     For purposes of this section, the term `approved remediation 
     and redevelopment plan' means any plan for such abatement, 
     control, and redevelopment of a qualified contaminated site 
     which is approved by the State development agency for the 
     State in which the qualified contaminated site is located.
       ``(c) Credit May Not Exceed Allocation.--
       ``(1) In general.--The environmental remediation credit 
     determined under this section with respect to any qualified 
     contaminated site shall not exceed the credit amount 
     allocated under this section by the State development agency 
     to the taxpayer for the remediation and redevelopment plan 
     submitted by the taxpayer with respect to such site.
       ``(2) Time for making allocation.--An allocation shall be 
     taken into account under paragraph (1) for any taxable year 
     only if made before the close of the calendar year in which 
     such taxable year begins.
       ``(3) Manner of allocation.--
       ``(A) Allocation must be pursuant to plan.--No amount may 
     be allocated under this subsection to any qualified 
     contaminated site unless such amount is allocated pursuant to 
     a qualified allocation plan of the State development agency 
     of the State in which such site is located.
       ``(B) Qualified allocation plan.--For purposes of this 
     paragraph, the term `qualified allocation plan' means any 
     plan--
       ``(i) which sets forth selection criteria to be used to 
     determine priorities of the State development agency in 
     allocating credit amounts under this section, and
       ``(ii) which gives preference in allocating credit amounts 
     under this section to qualified contaminated sites based on--

       ``(I) the extent of poverty,
       ``(II) whether the site is located in an enterprise zone or 
     renewal community,
       ``(III) whether the site is located in the central business 
     district of the local jurisdiction,
       ``(IV) the extent of the required environmental 
     remediation,
       ``(V) the extent of the commercial, industrial, or 
     residential redevelopment of the site in addition to 
     environmental remediation,
       ``(VI) the extent of the financial commitment to such 
     redevelopment, and
       ``(VII) the amount of new employment expected to result 
     from such redevelopment.

       ``(4) States may impose other conditions.--Nothing in this 
     section shall be construed to prevent any State from 
     requiring assurances, including bonding, that any project for 
     which a credit amount is allocated under this section will be 
     properly completed or that the financial commitments of the 
     taxpayer are actually carried out.
       ``(d) State Environmental Remediation Credit Ceiling.--
       ``(1) In general.--The State environmental remediation 
     credit ceiling applicable to any State for any calendar year 
     shall be an amount equal to the sum of--
       ``(A) the unused State environmental remediation credit 
     ceiling (if any) of such State for the preceding calendar 
     year,
       ``(B) such State's share of the national environmental 
     remediation credit limitation for the calendar year,
       ``(C) the amount of State environmental remediation credit 
     ceiling returned in the calendar year, plus
       ``(D) the amount (if any) allocated under paragraph (3) to 
     such State by the Secretary.

     For purposes of subparagraph (A), the unused State 
     environmental remediation credit ceiling for any calendar 
     year is the excess (if any) of the sum of the amounts 
     described in subparagraphs (B), (C), and (D) over the 
     aggregate environmental remediation credit amount allocated 
     for such year.
       ``(2) National environmental remediation credit 
     limitation.--
       ``(A) In general.--The national environmental remediation 
     credit limitation for each calendar year is $1,000,000,000.
       ``(B) State's share of limitation.--A State's share of such 
     limitation is the amount which bears the same ratio to the 
     limitation applicable under subparagraph (A) for the calendar 
     year as such State's population bears to the population of 
     the United States.
       ``(3) Unused environmental remediation credit carryovers 
     allocated among certain states.--
       ``(A) In general.--The unused environmental remediation 
     credit carryover of a State for any calendar year shall be 
     assigned to the Secretary for allocation among qualified 
     States for the succeeding calendar year.
       ``(B) Unused environmental remediation credit carryover.--
     For purposes of this paragraph, the unused environmental 
     remediation credit carryover of a State for any calendar year 
     is the excess (if any) of--
       ``(i) the unused State environmental remediation credit 
     ceiling for the year preceding such year, over
       ``(ii) the aggregate environmental remediation credit 
     amount allocated for such year.
       ``(C) Formula for allocation of unused environmental 
     remediation credit carryovers among qualified states.--Rules 
     similar to the rules of clauses (iii) and

[[Page 21430]]

     (iv) of section 42(h)(3)(D) shall apply for purposes of this 
     paragraph.
       ``(4) Population.--For purposes of this subsection, 
     population shall be determined in accordance with section 
     146(j).
       ``(5) Inflation adjustment.--In the case of any calendar 
     year after 2004, the $1,000,000,000 amount contained in 
     paragraph (2) shall be increased by an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2003' for `calendar year 1992' in 
     subparagraph (B) thereof.

     Any increase determined under the preceding sentence shall be 
     rounded to the nearest multiple of $500,000.
       ``(e) Eligible Area; Other Definitions.--For purposes of 
     this section--
       ``(1) Eligible area.--
       ``(A) In general.--The term `eligible area' means the 
     entire area encompassed by a local governmental unit if such 
     area contains at least 1 census tract having a poverty rate 
     of at least 20 percent.
       ``(B) Areas not within census tracts.--In the case of an 
     area which is not tracted for population census tracts, the 
     equivalent county divisions (as defined by the Bureau of the 
     Census for purposes of defining poverty areas) shall be used 
     for purposes of determining poverty rates.
       ``(C) Use of census data.--Population and poverty rate 
     shall be determined by the most recent decennial census data 
     available.
       ``(2) Qualified contaminated site.--The term `qualified 
     contaminated site' has the meaning given to such term by 
     section 198, determined by treating petroleum and petroleum 
     by-products as hazardous substances.
       ``(3) Possessions treated as states.--The term `State' 
     includes a possession of the United States.
       ``(f) Credit May Be Assigned.--
       ``(1) In general.--If a taxpayer elects the application of 
     this subsection for any taxable year, the amount of credit 
     determined under this section for such year which would (but 
     for this subsection) be allowable to the taxpayer shall be 
     allowable to the person designated by the taxpayer. The 
     person so designated shall be treated as the taxpayer for 
     purposes of subsection (h).
       ``(2) Treatment of amounts paid for assignment.--If any 
     amount is paid to the person who assigns the credit 
     determined under this section, no portion of such amount or 
     such credit shall be includible in the payee's gross income.
       ``(g) Treatment of Potential Responsible Parties.--
       ``(1) In general.--No credit shall be allowed under this 
     section to any potential responsible party (within the 
     meaning of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980) with respect to any 
     qualified contaminated site (including by reason of receiving 
     an assignment of the credit under subsection (f)) unless at 
     least 25 percent of the cost of remediating such site is 
     borne by such party.
       ``(2) Relief from liability for other 75 percent.--If the 
     requirement of paragraph (1) is met by a potential 
     responsible party, such party shall not be liable under any 
     Federal law for any cost taken into account in determining 
     whether such requirement is met.
       ``(3) Amounts paid for credit assignment not eligible.--
     Amounts paid by a potential responsible party to any person 
     for the assignment by such person of the credit under 
     subsection (f)) shall not be taken into account in 
     determining whether the requirement of paragraph (1) is met.
       ``(h) Recapture of Credit if Environmental Remediation Not 
     Properly Completed.--
       ``(1) In general.--If the State development agency of the 
     State in which the qualified contaminated site is located 
     determines that the environmental remediation which is part 
     of the approved remediation and redevelopment plan for such 
     site was not properly completed, then the taxpayer's tax 
     under this chapter for the taxable year in which such 
     determination is made shall be increased by the credit 
     recapture amount.
       ``(2) Credit recapture amount.--For purposes of paragraph 
     (1), the credit recapture amount is an amount equal to the 
     sum of--
       ``(A) the aggregate decrease in the credits allowed to the 
     taxpayer under section 38 for all prior taxable years which 
     would have resulted if the credit allowable by reason of this 
     section were not allowed, plus
       ``(B) interest at the overpayment rate established under 
     section 6621 on the amount determined under subparagraph (A) 
     for each prior taxable year for the period beginning on the 
     due date for filing the return for the prior taxable year 
     involved.

     No deduction shall be allowed under this chapter for interest 
     described in subparagraph (B).
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (1) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     this subsection shall not be treated as a tax imposed by this 
     chapter for purposes of determining the amount of any credit 
     or the tax imposed by section 55.
       ``(i) Denial of Double Benefit.--
       ``(1) In general.--No deduction shall be allowed for that 
     portion of the qualified remediation expenditures otherwise 
     allowable as a deduction for the taxable year which is equal 
     to the amount of the credit determined for such taxable year 
     under this section.
       ``(2) Similar rule where taxpayer capitalizes rather than 
     deducts expenses.--If--
       ``(A) the amount of the credit determined for the taxable 
     year under this section, exceeds
       ``(B) the amount allowable as a deduction for such taxable 
     year for qualified remediation expenditures (determined 
     without regard to paragraph (1)),

     the amount chargeable to capital account for the taxable year 
     for such expenditures shall be reduced by the amount of such 
     excess.
       ``(3) Controlled groups.--In the case of a corporation 
     which is a member of a controlled group of corporations 
     (within the meaning of section 52(a)) or a trade or business 
     which is treated as being under common control with other 
     trades or businesses (within the meaning of section 52(b)), 
     this subsection shall be applied under rules prescribed by 
     the Secretary similar to the rules applicable under 
     subsections (a) and (b) of section 52.''
       (b) Credit Treated as Business Credit.--Section 38(b) of 
     such Code is amended by striking ``plus'' at the end of 
     paragraph (14), by striking the period at the end of 
     paragraph (15) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(16) the environmental remediation credit determined 
     under section 45G(a).''.
       (c) No Carrybacks Before Effective Date.--Subsection (d) of 
     section 39 of such Code (relating to carryback and 
     carryforward of unused credits) is amended by adding at the 
     end the following:
       ``(11) No carryback of section 45g credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the environmental 
     remediation credit determined under section 45G may be 
     carried back to a taxable year ending before the date of the 
     enactment of section 45G.''.
       (d) Conforming Amendment.--The table of sections for 
     subpart D of part IV of subchapter A of chapter 1 of such 
     Code is amended by adding at the end the following new item:

``Sec. 45G. Environmental remediation credit.''.

       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. CORNYN (for himself, Mr. McConnell, and Mr. McCain):
  S. 2931. A bill to enable drivers to choose a more affordable form of 
auto insurance that also provides for more adequate and timely 
compensation for accident victims, and for other purposes; to the 
Committee on Commerce, Science, and Transportation.
  Mr. CORNYN. Mr. Chairman, on behalf of my co-sponsors, Senators 
McConnell and McCain, I rise today to introduce legislation that I 
believe has the potential to improve profoundly the lives of millions 
of Americans across the country.
  The Auto Choice Reform Act of 2004 offers a real solution to a very 
real problem faced by those of us who drive every day--the high cost 
and inadequate compensation of the current tort and liability 
automotive insurance system.
  The tort system ought to ideally compensate people injured by 
negligence and deter others from acting irresponsibly. With respect to 
auto accidents, the system fails miserably on both counts.
  Numerous studies over the past 75 years document just how poorly the 
tort system compensates injured people. Almost one-third of injured 
people recover nothing at all, and many injured persons who do recover 
compensation must wait years to receive payment from the other person's 
insurer.
  Worst of all, people with minor injuries recover compensation far in 
excess of their actual losses while many people with serious injuries 
are grossly underpaid. The RAND Institute for Civil Justice has found 
that people with economic losses between $500 and $1,000 recover on 
average 2\1/2\ times their economic loss. This is largely due to the 
fact that it is cheaper for an insurer to pay a questionable claim than 
to pay the costs of going to court, where they

[[Page 21431]]

risk paying a multiplier of economic damages for pain and suffering.
  The perverse incentives generated by pain-and-suffering damage awards 
also cause rampant fraud and abuse in auto insurance claims. A study by 
the RAND Institute for Civil Justice confirms that between 35 and 42 
percent of medical costs claimed in auto accidents occur in response to 
the incentives of the tort liability system. In other words, more than 
one-third of all medical losses claimed in auto accidents are 
fraudulent or exaggerated--attempts to nab the pain-and-suffering 
jackpot.
  On the other hand, people with the highest economic losses, in excess 
of $100,000, recover only 9 percent of their economic loss on average. 
To add injury to insult, that amount doesn't even include their 
lawyers' standard one-third fee. Because most drivers don't carry 
enough insurance to even pay this level of economic loss, particularly 
after attorneys' fees are deducted, people with the most serious 
injuries rarely recover anything for pain-and-suffering.
  In short, we would be hard pressed to design a worse compensation 
system if we tried.
  Indeed, the system is so bankrupt that lawyers in the auto insurance 
litigation currently consume more than 25 cents out of every premium 
dollar spent, an amount that is significantly more than the amount 
received by those actually injured for medical bills and lost wages. In 
total, more than $16 billion went to lawyers in 2001 for automobile 
related personal injury cases.
  What about deterrence? Perhaps it is worth paying for a poor 
compensation system if people are deterred from driving badly, thereby 
avoiding injuries in the first place. Some studies have made this 
argument but the most comprehensive analysis of accident data, again by 
the RAND Institute for Civil Justice, has found that the tort system 
has little or no deterrent impact. This conclusion is a logical one. If 
a driver is not deterred by the threat of personal danger from reckless 
driving, then surely that driver is not deterred by the penalty for 
reckless driving--simply a modest increase in one's insurance premium.
  The current system is also unnecessarily expensive, as is clearly 
demonstrated by the fact that the Joint Economic Committee estimates 
that switching to the new Personal Injury Protection system, discussed 
below, which relies primarily on the payment of economic losses for all 
injured persons without regard to fault and largely without the need 
for lawsuits, could save drivers a total of $48 billion a year in 
unnecessary premiums.
  Excessive premiums disproportionately impact low income Americans and 
welfare recipients. Families in the bottom 20 percent of incomes who 
buy auto insurance spend 16 percent of their household income on that 
insurance. That percentage is seven times the proportion that families 
in the top 20 percent spend. Lower premiums would enable many low 
income workers to afford the cars they need to travel to better-paying 
jobs. The Auto Choice reform legislation we are proposing today would 
reduce premiums for low income people by more than it would reduce them 
for the average driver--both in terms of percentages and often in terms 
of absolute dollars. And all drivers would see significantly lower 
premiums.
  Auto Choice is designed to allow consumers to choose the type of 
insurance that meets their needs and to opt out of the pain-and-
suffering litigation lottery associated with the current system.
  Essentially, drivers are permitted under Auto Choice to choose a new 
Personal Injury Protection, ``PIP'', Insurance under which they would 
be compensated without regard to fault for all economic losses up to 
their policy limits by their own insurance company, with nothing 
available for pain and suffering. Alternatively, for those who remain 
in the current tort system, they will select a small amount of 
additional coverage similar to an uninsured motorist for situations 
involving another motorist that opted for the PIP system--a premium 
offset by the savings realized by everyone as a result of the overall 
shift away from the lawsuit system.
  The system does not abolish lawsuits. By design, there will be 
reduced incentives to head straight to court, but the right to sue 
remains firmly intact--as injured parties not fully compensated can sue 
to recover excess economic losses over and above that covered by the 
PIP coverage and other sources of first party insurance. They can also 
sue for all damages, including pain and suffering, when the accident is 
caused by a driver who is drunk or on drugs.
  In summary, if a driver wants to maintain the possibility of 
recovering for pain and suffering, he will stay in essentially the 
current system. On the other hand, if he wants to opt-out of the 
current system in exchange for lower premiums with prompt compensation 
for economic losses--then he instead will choose the personal injury 
protection system.
  The idea is not a new one. Indeed, this idea has been discussed--and 
even introduced in one form or another--for over thirty years now. 
Several versions of Auto Choice reform have enjoyed broad support on 
both sides of the aisle. Senator Daniel Patrick Moynihan, Steve Forbes, 
Michael Dukakis, Mayor Rudy Guliani, Congressman Dick Armey--just to 
name a few--have all opined in support of giving drivers a way out of 
the current ineffective system.
  The time has come for Congress to act. The results of our action are 
clear and tangible: were Congress to enact Auto Choice Reform 
legislation now, motorists would stand to save as much as $48 billion 
next year.
  Think about that for just one moment. Over 5 years, Americans would 
be able to save almost $250 billion--savings tantamount to a massive 
tax cut with absolutely no negative impact to the Federal deficit.
  And what does this mean for the average American? The average 
American family with two cars will be able to save nearly $380 a year, 
according to Joint Economic Committee estimates.
  Particularly encouraging is the effect these savings will have for 
low income families. Lower auto insurance premiums will make owning a 
car more affordable for poor Americans, allowing them to find and keep 
better-paying jobs and have longer commutes. Auto Choice would allow 
low-income drivers to save almost 37 percent on their overall 
automobile premium. For a low-income household, these savings are the 
equivalent of 5 weeks of groceries or nearly 4 months of electric 
bills.
  Auto Choice Reform can provide immediate and real relief for average, 
mainstream American families across the country. Those are real 
savings, resulting from a sound system that offers legitimate choice--a 
choice between guaranteed upfront savings on insurance premiums on one 
hand; and on the other, the right to sue for non-economic damages such 
as pain and suffering in the event an accident one day occurs.
  For most Americans, I believe the choice is an easy one. 
Unfortunately, for most Americans today, that choice is unavailable.
  The Auto Choice Reform Act of 2004 gives the American people that 
choice. Let's get government back to doing what it ought to--protecting 
the rights of all Americans to have the freedom to make choices about 
how they live their lives.
                                 ______
                                 
      By Mr. DODD (for himself, Mr. Kennedy, Mr. Johnson, and Mr. 
        Wyden):
  S. 2933. A bill to amend the Public Health Service Act to expand the 
clinical trials drug data bank; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today to introduce the Fair Access to 
Clinical Trials (FACT) Act. I want to begin by thanking Senator 
Kennedy, Senator Johnson, and Senator Wyden for joining me in 
introducing this legislation. Our bill will create a clinical trials 
registry--an electronic database--for drugs, biological products, and 
medical devices. Such a registry will ensure that physicians, the 
general public, and patients seeking to enroll

[[Page 21432]]

in clinical trials have access to basic information about those trials. 
It will require manufacturers and other researchers to reveal the 
results of clinical trials so that clinically important information 
will be available to all Americans, and physicians will have all the 
necessary information to make appropriate treatment decisions for their 
patients.
  Events of the past several months have made it clear that such a 
registry is needed. Serious questions have been raised about the 
effectiveness and safety of antidepressants when used in children and 
youth. It has now become clear that the existing data indicates that 
these drugs may very well put children at risk. However, because the 
data from antidepressant clinical trials was not publicly available, it 
took years for this risk to be realized. In the meantime, millions of 
children have been prescribed antidepressants by well-meaning 
physicians. While these drugs undoubtedly helped many of these 
children, they also led to greater suffering for others.
  Unfortunately, antidepressants are just one example of a story that 
has become all too common. In the case of antidepressants, negative 
data might actually have been suppressed, and if this is discovered to 
be the case, those responsible should be dealt with harshly. However, 
because of what is known as ``publication bias,'' the information 
available to the public and physicians can be misleading even without 
nefarious motives. The simple fact is that a study with a positive 
result is far more likely to be published, and thus publicly available, 
than a study with a negative result. Physicians and patients hear the 
good news, but rarely the bad news. In the end, the imbalance of 
available information hurts patients.
  Our bill would correct the imbalance of information, and prevent 
manufacturers from suppressing negative data. It would do so by 
expanding clinicaltrials.gov, an existing registry that is operated by 
the National Library of Medicine (NLM). Currently, clinicaltrials.gov 
includes information for patients seeking to enroll in clinical trials 
for drugs to treat serious or life-threatening conditions. The FACT Act 
would expand the registry to include all trials (except for preliminary 
safety trials), and would also require the submission of results data. 
At the same time, the bill would ensure that clinicaltrials.gov 
continues to operate as a resource for patients seeking to enroll in 
trials.
  Our legislation would enforce the requirement to register trials in 
two ways. First, by requiring registration as a condition of 
Institutional Review Board (IRB) approval, no trial could begin without 
submitting preliminary information to the registry. This information 
would include the purpose of the trial, the estimated date of trial 
completion, as well as all of the information necessary to help 
patients to enroll in the trial.
  Once the trial is completed, the researcher or manufacturer is 
required to submit the results to the registry. If they refuse to do 
so, they are subject to monetary penalties or, in the case of federally 
funded research, a restriction on future funding. It is my belief that 
these enforcement mechanisms will ensure broad compliance. However, in 
the rare case where a manufacturer does not comply, this legislation 
also gives the Food and Drug Administration (FDA) the authority to 
publicize the required information.
  Let me also say that any time you are collecting large amounts of 
data and making it public, protecting patient privacy and 
confidentiality must be paramount. Our legislation would in no way 
threaten that privacy. The simple fact is that under this bill, no 
individually identifiable information would be available to the public.
  I believe that the establishment of a clinical trials registry is 
absolutely necessary for the health and well-being of the American 
public. But I would also like to highlight two other benefits that such 
a registry will have. First, it has the potential to reduce health care 
costs. Studies have shown that publication bias also leads to a bias 
towards new and more expensive treatment options. A registry could help 
make it clear that, in some cases, less expensive treatments are just 
as effective for patients.
  In addition, a registry will ensure that the sacrifice made by 
patients who enroll in clinical trials is not squandered. Many patients 
would be less willing to participate in trials if they understood that 
the data are unlikely to be made public if the results of the trial are 
negative. We owe it to patients to make sure that their participation 
in a trial will benefit other individuals suffering from the same 
illness or condition.
  The problems associated with publication bias have recently drawn 
more attention from the medical community, and there is broad consensus 
that a clinical trials registry is one of the best ways to address the 
issue. Accordingly, the American Medical Association (AMA) has 
recommended the creation of such a registry, and the major medical 
journals have established a policy that they will only publish the 
results of trials that were registered in a public database before the 
trial began. Our legislation meets all of the minimum criteria for a 
trial registry set out by the International Committee of Medical 
Journal Editors.
  To its credit, the pharmaceutical industry has also acknowledged the 
problem, and has created a registry to which manufacturers can 
voluntarily submit clinical trials data. I applaud this step. However, 
if our objective is to provide the public with a complete and 
consistent supply of information, a voluntary registry is unlikely to 
achieve that goal. Some companies will provide information, but others 
may decide not to participate. We need a clinical trials framework that 
is not just fair to all companies, but provides patients with peace of 
mind that they will receive complete information about the medicines 
they rely on.
  The American drug industry is an extraordinary success story. As a 
result of the innovations that this industry has spawned, millions of 
lives have been improved and saved in our country and around the globe. 
Because of the importance of these medicines to our health and well-
being, I have consistently supported sound public policies to help the 
industry to succeed. This legislation aims to build upon the successes 
of this industry, and help ensure that the positive changes to our 
health care system that prescription drugs have brought are not 
undermined by controversies such as the one now surrounding 
antidepressants, which is at least in part based on a lack of public 
information. This bill will help ensure that new and innovative 
medicines will be used by well-informed patients.
  I look forward to working with industry, physicians, the medical 
journals, patient groups, and my colleagues to move this legislation 
forward. This bill has already been endorsed by the National 
Organization for Rare Disorders, Consumers Union, the Elizabeth Glaser 
Pediatric AIDS Foundation, and the American Academy of Child and 
Adolescent Psychiatry. I thank these organizations for lending their 
expertise as we crafted this legislation, and I ask that a copy of 
their letters of endorsement be included in the Record after this 
statement.
  Clinical trials are critical to protecting the safety and health of 
the American public, and for this reason, trial results must not be 
treated as information that can be hidden from scrutiny. Recent events 
have made it clear that a clinical trials registry is needed. Patients 
and physicians agree that such a registry is in the interest of the 
public health. I urge my colleagues to support this legislation, and I 
am hopeful that it will become law as soon as possible.
  Mr. President, I ask unanimous consent that letters of support be 
printed in the Record.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

                                         National Organization for


                                         Rare Disorders, Inc.,

                                     Danbury, CT, October 7, 2004.
     Hon. Christopher Dodd,
     U.S. Senate, Washington, DC.
       Dear Senator Dodd: The National Organization for Rare 
     Disorders (NORD) is honored to support your efforts to 
     establish a centralized and comprehensive registry of both

[[Page 21433]]

     public and privately funded clinical research. The ``Fair 
     Access to Clinical Trials Act of 2004'' will provide the 
     mechanism whereby patients, including those living with rare 
     diseases, will have access to ALL clinical research data--
     both positive and negative--something NORD has supported for 
     many years.
       There are over 25 million Americans currently living with 
     one of the 6,000 known rare diseases. Unfortunately, for most 
     of these diseases, little, if any, research is conducted. 
     Thus, finding a trial is like trying to locate a needle in a 
     massive haystack. Without your help, patients will continue 
     to struggle to somehow find a clinical trial in the hopes 
     that a therapy to alleviate symptoms or cure their disease 
     may someday be found.
       NORD also applauds the ``FACT Act'' because it will 
     penalize industry when they purposefully and willfully hide 
     negative data only to their bottom line. It is unconscionable 
     to think that harmful information has been shielded from 
     patients and healthcare providers, causing irreparable harm, 
     and sometimes death.
       Senator Dodd, NORD thanks you for your continuing concern 
     about the health and welfare of all Americans. We will work 
     with you to ensure that the ``Fair Access to Clinical Trials 
     Act of 2004'' becomes a reality.
           Sincerely.
                                                  Diane E. Dorman,
     Vice President.
                                  ____



                                              Consumers Union,

                                                  October 7, 2004.
     Hon. Christopher J. Dodd,
     Hon. Edward M. Kennedy,
     Hon. Tim Johnson,
     Hon. Ron Wyden,
     U.S. Senate, Washington, DC.
       Dear Senators Dodd, Kennedy, Johnson, and Wyden: Consumers 
     Union, the non-profit publisher of Consumer Reports magazine, 
     commends you for introducing the ``Fair Access to Clinical 
     Trials Act of 2004'' (FACT Act). The legislation would create 
     a mandatory publicly available national registry of all 
     clinical trials involving drugs, biological products, and 
     devices. This bill would enable consumers, doctors, and other 
     health care providers to make appropriate decisions about 
     care based upon more complete and accurate safety, efficacy, 
     and comparative-effectiveness data.
       The recent episode involving Paxil, one of the most popular 
     antidepressants on the market, underscores a potentially 
     dangerous information gap in drug regulation: the ability of 
     drug manufacturers to effectively conceal study results that 
     reveal their products to be ineffective or potentially 
     hazardous. The number of U.S. children taking antidepressants 
     has more than doubled since the early 1990s. In the past 
     year, new evidence has emerged suggesting a possible 
     connection between children starting antidepressant treatment 
     and an increase in suicide risk. The public was disturbed to 
     learn that Paxil's manufacturer, GlaxoSmithKline, submitted 
     three studies to the FDA when it sought approval for 
     pediatric use. The only one of the three studies that showed 
     that Paxil worked for depression was published in the Journal 
     of the American Academy of Child and Adolescent Psychiatry. 
     This article disguised evidence of potential suicidal 
     thoughts by calling them ``emotional lability.'' However the 
     two additional negative Paxil studies were never published in 
     any journal. Meanwhile, doctors continued to prescribe Paxil 
     for children--an estimated 2.1 million prescriptions in 2002 
     alone.
       Your legislation would begin to close the gap in the 
     disclosure of information discovered during clinical trials. 
     It would require trial sponsors to register publicly and 
     privately funded clinical trials of drugs, biological 
     products, and medical devices. The registry will further the 
     goal of transparency by making information publicly available 
     about trials, including: the purpose of the trial; whether 
     the trial focuses on an unapproved use; a description of 
     primary and secondary outcomes to be studied; the estimated 
     completion date; the actual completion date (and the reasons 
     for any difference from the estimated completion date); a 
     summary of the trial results; adverse events observed during 
     the investigation; and a description of the protocol followed 
     in the trial.
       Under the bill, before receiving Federal funding, a 
     principal investigator would be required to certify that it 
     will comply with the bill's registration requirements. 
     Failure to submit trial result information could result in 
     its inability to receive future federally funded contracts. 
     Sponsors of privately funded trials also would be required to 
     disclose the same information, or face potential civil 
     penalties. If any trial sponsor fails to comply with the 
     registration requirements, the Secretary of the Department of 
     Health and Human Services is directed to disclose in the 
     registry that the sponsor has failed to turn over trial 
     results.
       Strong incentives and penalties must be in place in order 
     to ensure that pharmaceutical companies do not suppress 
     negative safety or efficacy information in order to boost 
     their profits. These practices are unacceptable, and we look 
     forward to working with you to ensure transparency for 
     clinical trial results, and to create even stronger 
     incentives and penalties in the legislation to remove any 
     financial motive clinical trial sponsors may have to hide 
     important health information from consumers.
           Sincerely,
                                               Janell Mayo Duncan,
                               Legislative and Regulatory Counsel,

     Washington Office.
                                  ____


                                        Elizabeth Glaser Pediatric


                                              AIDS Foundation,

                                                  October 7, 2004.
     Hon. Christopher J. Dodd,
     U.S. Senate, Washington, DC.
     Hon. Tim Johnson,
     U.S. Senate, Washington, DC.
     Hon. Edward M. Kennedy,
     U.S. Senate, Washington, DC.
     Hon. Ron Wyden,
     U.S. Senate, Washington, DC.
       Dear Senators Dodd, Kennedy, Johnson and Wyden: On behalf 
     of the Elizabeth Glaser Pediatric AIDS Foundation, I would 
     like to commend your leadership in introducing the ``Fair 
     Access to Clinical Trials Act of 2004'' (The FACT Act) and 
     offer our strong endorsement of your efforts to establish a 
     publicly accessible registry of clinical trials, including 
     important pediatric studies.
       The Foundation was created more than 15 years ago to help 
     children with HIV/AIDS and is now the worldwide leader in the 
     fight against pediatric AIDS and other serious and life-
     threatening diseases affecting children. In 2000, the Glaser 
     Pediatric Research Network was founded as an affiliate of the 
     Foundation, with the goal of advancing vital clinical 
     discoveries on behalf of all children. Through a partnership 
     among five pre-eminent academic medical centers, the Network 
     is currently supporting clinical drug trials and other 
     pediatric studies on a range of conditions affecting children 
     such as obesity, cancer, osteoporosis, and rare bleeding 
     disorders.
       As longstanding advocates of testing drugs for use in 
     children, we welcome the dramatic increase in pediatric 
     studies that has resulted from the enactment of both 
     incentives and a pediatric testing requirement. However, 
     simply conducting pediatric research is insufficient if the 
     results of that research are not made fully available to 
     pediatricians, parents, and researchers. By making clinical 
     trial information publicly accessible in a timely way, the 
     FACT Act will serve as a critical next step in improving the 
     safety and efficacy of medicines used by children.
       We are particularly pleased that the FACT Act acknowledges 
     the unique circumstances and contributions of non-profit 
     sponsors of research. Your attention to the need to ensure 
     the continued viability of critical research partnerships 
     between non-profit and for-profit funders is very much 
     appreciated. In addition, as we continue our efforts to 
     improve the availability of medical devices designed for 
     children's unique needs, we applaud your inclusion of device 
     clinical trials in the scope of the registry.
       Thank you again for your commitment to ensuring that 
     important safety data from pediatric and adult clinical 
     trials is available to improve public health. We look forward 
     to working with you in the 109th Congress to secure 
     bipartisan support for and passage of this important 
     legislation.
       Sincerely,
                                                       Mark Isaac,
     Vice President, Policy and Communication.
                                  ____

                                       American Academy of Child &


                                        Adolescent Psychiatry,

                                  Washington, DC, October 7, 2004.
     Hon. Christopher Dodd
     U.S. Senate, Washington, DC.
       Dear Senator Dodd: On behalf of the American Academy of 
     Child and Adolescent Psychiatry (AACAP), thank you for your 
     efforts to improve the health of children, adolescents and 
     adults through better access to clinical trial data. 
     Legislation that you are sponsoring, the Fair Access to 
     Clinical Trials (FACT) Act, will ensure that physicians, 
     including child and adolescent psychiatrists, patients and 
     parents have all available knowledge about a medication's 
     safety and effectiveness, so that they can make informed 
     decisions about treatment options.
       The AACAP is pleased to have been at the forefront of 
     calling for a national clinical trails registry. Research is 
     key to understanding the cause of depression, especially in 
     children and adolescents, and access to all research findings 
     will help clinicians develop the most effective treatment 
     plans. It is this principle that led the AACAP and the 
     American Psychiatric Association (APA) to urge the American 
     Medical Association to join their call for a national 
     registry, which it did earlier this year.
       Again, we thank you for sponsoring the Fair Access to 
     Clinical Trials Act. We are encouraged by the support for 
     this bill and are eager to work with you to ensure its 
     passage. Please contact Nuala S. Moore, Asst. Director of 
     Government Affairs, at 202.966.7300, x. 126, if you have any 
     questions concerning clinical research or other children's 
     mental illness issues.
           Sincerely,
                                             Richard Sarles, M.D.,
                                                        President.


[[Page 21434]]

  Mr. JOHNSON. Mr. President, today I join several of my colleagues in 
introducing a very important piece of legislation that will improve 
access to information about prescription drugs for patients and their 
doctors. Today Senators Dodd, Kennedy and Wyden and I are introducing 
the Fair Access to Clinical Trials Act, or FACT Act. I want to commend 
my colleagues for their hard work on this legislation. I also want to 
thank them for their commitment to ensuring that finally, objective, 
unbiased information can be put in the hands of consumers and doctors, 
reducing negative outcomes, improving patient care and ultimately 
reducing costs of medications.
  It is unacceptable that today, much of the information consumers and 
doctors rely on to make decisions about the medications they use are 
based on incomplete information. Patients are often swayed by direct-
to-consumer drug advertisements. Doctors must rely on the information 
they learn at drug company sponsored conferences, and in peer reviewed 
journals that publish largely the success stories. But what about the 
untold stories? What about the clinical trials that were discontinued 
by drug companies because the data appeared to not be going in the 
right direction? What about the studies that are part of an application 
for a new drug that may show a negative result? And what about trials 
that have been conducted to study the appropriateness of an off-label 
use? Today, physicians and their patients do not have access to any of 
this important information, and that must change now.
  The lack of access to this information can have real, devastating 
effects on patients. We have all heard the stories in the papers in 
recent months. We have heard about New York Attorney General Eliot 
Spitzer's lawsuit, which charged GlaxoSmithKline with suppressing the 
publication of studies suggesting that its antidepressant drug Paxil 
could increase the risk of suicide among adolescents. Further 
investigation of this issue has found that some manufacturers of 
antidepressants highlighted positive findings in tests on youngsters 
while playing down negative or inconclusive ones.
  We have just recently learned that the arthritis medication Vioxx was 
pulled off the market, due to negative study findings, and just 
yesterday learned that over 27,000 sudden cardiac deaths and heart 
attacks may have been caused. While Merck did the right thing by 
pulling the drug after learning of clinical trial, they were under no 
obligation to share this information with consumers or the medical 
profession. Drug companies have lobbied to ensure that only the Food 
and Drug Administration gets this information and, even then, some drug 
companies simply discontinue studies that they do not think will 
reflect favorably on their product.
  What doctors advocating the development of a comprehensive clinical 
trial registry have indicated is that without ready access to all 
experimental data, good, bad and indifferent, they cannot hope to know 
what is the best treatment for their patients. Our legislation will get 
at that very issue, by requiring that clinical trials are registered in 
a database that is accessible to the public.
  This bill will create a comprehensive clinical trial database, which 
will require that all trials for drugs, biologics, and medical devices 
be registered in the database in order to obtain approval from a U.S. 
Institutional Review Board to move forward with any study. Researchers 
will be required to disclose basic information about a study initially, 
so that consumers can be aware of studies while they are underway.
  Once trials are completed, the bill requires that the results of 
those studies be made available to doctors and patients. There is 
significant time allowed in the bill for researchers to publish their 
results, prior to them being made public in the database. Submission to 
this database will be mandatory for all federally funded and non-
federally funded trials, and strong enforcement mechanisms are 
incorporated into the bill.
  Making the results of clinical drug trials public is not only a good 
consumer right-to-know or rather need-to-know issue, but it is also the 
ethically responsible thing to do. Patients enter trials for the good 
of science. It is our obligation to ensure that their sacrifices 
provide for the greater good of the public health. Publicizing the 
results of those studies is a step in that direction. Patients 
enrolling in clinical trials often know up front that the likely chance 
of directly benefiting from a treatment is unknown. But patients are 
also told that even if they do not experience a positive outcome, 
doctors can learn from the results, which will advance science in the 
long term.
  This legislation is strongly supported by the National Organization 
for Rare Disorders, Consumers Union and the Academy of Child and 
Adolescent Psychiatry. I urge my colleagues to support this important 
legislation which is long overdue.
  Mr. KENNEDY. I am pleased today to introduce the Fair Access to 
Clinical Trials or FACT Act. This needed legislation will improve the 
information available to patients and their families about the medical 
treatments they receive. For too long, drug companies have been able to 
hide damaging data that show their new wonder drug is not really the 
wonder they claim it to be. That practice ends on the day the FACT Act 
is enacted. From that day forward, consumers, doctors and researchers 
will have access to the results of clinical trials, so they can make 
informed decisions about treatment options.
  No patient should ever die because they didn't get the information 
they needed on the medications they rely on to protect their health.
  The legislation we introduce today is offered by a strong group of 
Senators and Representatives from across the nation. I commend my 
colleague, Senator Dodd, for his leadership in the Senate on this 
important measure. Senator Dodd has a strong and lasting commitment to 
improving the health and health care of all our citizens, and 
particularly for the youngest and most vulnerable. I am also pleased to 
join Senator Ron Wyden and Senator Tim Johnson in introducing this 
proposal, and I commend them for their commitment and skillful 
leadership in this area.
  Our colleagues in the House of Representatives are today introducing 
almost identical legislation, and I commend our colleagues, 
Representative Ed Markey and Representative Henry Waxman, for their 
tireless efforts on this important issue.
  As part of the FDA Modernization Act, Congress directed the 
Department of Health and Human Services to establish a registry of 
clinical trials. This provision was well timed, because it coincided 
with the rapid expansion of internet use. As a result, the National 
Library of Medicine has established a web site, clinicaltrials.gov, 
that is intended to contain information on all clinical trials for 
serious and life threatening diseases.
  Sadly, recent studies show that drug manufacturers are not complying 
with the requirement to list even basic information on the trials they 
conduct. A recent study showed that only 48 percent of the required 
cancer trials were properly submitted to the registry, and rates for 
other serious diseases were in the single digits. As a result of this 
shameful failure, patients are being denied important information on 
clinical trials in which they may be eligible to participate.
  Action is long overdue to give the NIH and the FDA better ways to see 
that companies and researchers properly register the trials they 
conduct. The FACT Act will assure that any researcher or sponsor 
seeking to conduct a clinical trial will be required, as a condition 
for approval to conduct the trial, to submit information on that trial 
to the clinical trial registry. This common-sense provision will see 
that patients seeking to enroll in clinical trials will have access to 
a complete set of information on the trials for which they may be 
eligible. No patient should be denied access to a lifesaving clinical 
trial because the sponsor of the trial shirked their responsibility to 
submit information to the national registry.
  Ensuring that all trials are registered is important, but 
registration

[[Page 21435]]

alone is not enough to see that patients get the information they need 
on the treatments they receive. We must also see that the results of 
clinical trials are included in the registry.
  The FACT Act requires researchers and clinical trial sponsors to 
submit the results of their trials to the registry. With a complete and 
comprehensive set of information, patients will be better able to 
evaluate the treatments they receive, and physicians will have access 
to complete information on the treatments they prescribe. The FACT Act 
requires companies to list the results of trials--even when they show 
that a product is less effective than its manufacturers want to claim.
  All of us are familiar with the way that drug companies hid 
information on potentially harmful side effects in children of 
antidepressants. Many of our Republican colleagues in the House 
forcefully criticized the FDA for failing to release information they 
possessed showing that these pills sometimes cause suicidal tendencies 
in the children who received them.
  The FACT Act addresses both of these serious concerns. It requires 
companies to list the results of their trials, and gives FDA the 
authority to impose civil monetary penalties on those who fail to do 
so. It also gives FDA the clear legal authority to release information 
on the results of a clinical trial if a company fails to do so. No 
longer will FDA face the terrible dilemma of knowing that it possesses 
information crucial to assuring public health and safety, but is unable 
to release that information to the public because of legal constraints. 
The FACT Act assures that FDA has the clear authority to take the steps 
it needs to take to protect public health.
  I urge Congress to take swift action on the proposals introduced 
today in the House and Senate. We have little time left in this 
session, but the measures introduced today have broad support from 
medical professional, consumer organizations and the publishers of 
professional journals.
  Some companies have already taken voluntary steps to release 
information on clinical trials. These voluntary efforts are 
commendable, but they are inadequate to give the public the 
comprehensive information they need and deserve. Voluntary reporting 
efforts on the companies' own web sites will not result in a single, 
central database that every patient can consult. Sporadic efforts by 
individual companies will not elicit the comprehensive information 
needed on all clinical trials--not just those of the few companies that 
participate in the voluntary initiative. And voluntary efforts 
undertaken now may not be sustained in the future, when the hot glare 
of public attention fades from this issue.
  To give patients and health professionals the information they need 
to improve the quality of medical care, we need a strong legal 
requirement to list comprehensive information on clinical trials in a 
single publicly accessible database. Patients and their families 
deserve the FACT Act, and I urge my colleagues to support it.
  Mr. WYDEN. Mr. President, today I join Senators Dodd, Kennedy, and 
Johnson in introducing the Fair Access to Clinical Trials Act of 2004. 
This legislation is an important milestone for patients and doctors 
around this country because it would create a centralized clinical 
trials registry by expanding the current clinical trials.gov website to 
provide not only information about clinical trials they might want to 
be part of, but also the results of those trials. If information is not 
provided so it can be posted on the website, serious penalties could be 
imposed, including a researcher losing their ability to get future 
Federal grants.
  It is vitally important that patients and their doctors have the 
information they need to decide upon the best treatment for them. As we 
all know, drugs are often the key treatment for many health problems. 
Good results about the safety and effectiveness of treatments are often 
trumpeted by drug companies and the media, but Americans are less 
likely to hear about clinical trial results that are not so good or 
truly negative. This legislation will ensure that everyone can get a 
fair picture of all results of clinical trials.
  I believe that this legislation strikes the delicate balance needed 
so that companies which create breakthrough drugs can keep their trade 
secrets, the important process of assuring peer review in medical 
literature can continue, and consumers, doctors and researchers can 
have access to the information they need to make sound decisions about 
their health care.
  Research is key in assuring health care improvements. Knowing the 
results of research is key in assuring better health care quality and 
improving decision-making by doctors and their patients. I believe that 
the expanded website created by this legislation will be an important 
tool in improving doctors' and patients' knowledge and decision-making 
that might well mean life or death for some patients.
                                 ______
                                 
      By Ms. CANTWELL:
  S. 2934. A bill to combat methamphetamine abuse in the United States; 
to the Committee on the Judiciary.
  Ms. CANTWELL. Mr. President, I rise today to introduce the 
Confronting Methamphetamines Act of 2004.
  Methamphetamine, meth, use is growing exponentially in parts of our 
country and is spreading across the country at an alarming rate. We 
must act aggressively to attack the meth problem with a long-term 
commitment of resources or we will soon have a national drug crisis on 
the scale of an epidemic.
  Meth is an extremely dangerous and highly addictive drug. Individuals 
who use meth risk becoming addicted to this life-destroying drug with 
just one use. Meth use has ruined the lives of many people who prior to 
their addiction to meth were successful contributors to our society and 
our economy.
  Meth use triggers an avalanche of other problems for addicts' 
families and our communities. The use of meth is often linked to child 
abuse and the destruction of families. It contributes substantially to 
the perpetration of violent crimes, particularly burglary and crimes of 
substantial cost and personal pain to the victims, including identity 
theft. The stories I have heard about meth users are horrible--parents 
so focused on feeding their habit that they forget their children are 
right there with them, hungry, and without any love or care. Users 
become aggressive, violent and unstable. Often, the kids end up users 
as well.
  Sadly, our children are discovering meth, and the results will be 
devastating. According to a 2001 study by the Centers for Disease 
Control and Prevention, nearly one in ten high school students have 
used meth. The statistics are clear: the problem is bad, and it's 
getting worse. The National Center on Addiction and Substance Abuse at 
Columbia University reports that while the proportion of teens who know 
users of LSD, cocaine, and heroin has dropped sharply from last year, 
the percentage of teens who know a user of methamphetamines has risen 
from 12 percent in 2003 to 15 percent this year.
  The devastation to our kids' lives is hitting our rural communities 
first. The Columbia University researchers also found that eighth 
graders living in rural America are 104 percent more likely to use 
amphetamines than eighth graders in urban areas.
  And meth is not just a health and social problem; it is also an 
enormous environmental problem. There are two types of local meth labs: 
so-called ``super-labs,'' which are capable of manufacturing large 
volumes of methamphetamines and clandestine labs set up by users to 
manufacture small amounts of the drug for personal use. These 
clandestine labs can be set up in the woods, in hotel rooms or even in 
the back seat of a car. They can be set up anywhere, but are usually 
located where there is little traffic or population.
  These hazardous ``labs'' can go unnoticed for years, but they produce 
major chemical hazards and pose severe fire risk. Meth production 
generates extremely hazardous byproducts, such as anhydrous ammonia, 
ether, sulfuric acid, as well as other toxins that are volatile, 
corrosive, and poisonous. When these substances are illegally

[[Page 21436]]

disposed of in rivers, streams and other dump areas, explosions and 
serious environmental damage can and does result. Our State and local 
environmental agencies are responsible to cleanup these hazardous sites 
and it is taking a toll on their resources.
  The use of meth is spreading rapidly from the western region of the 
United States across the rural Midwest and to the east. The spreading 
availability of methamphetamine is illustrated by increasing numbers of 
meth seizures, arrests, indictments, and sentences. And those numbers 
are rising across the country. According to the National Drug 
Intelligence Center, methamphetamine is widely available throughout the 
Pacific, Southwest, and West Central regions and is increasingly 
available in the Great Lakes and the Southeast.
  Similarly, the National Institute on Drug Abuse's Community 
Epidemiology Working Group reports that, in 2002, methamphetamine 
indicators remained highest in West Coast areas and parts of the 
Southwest, as well as Hawaii. Meth abuse and the crimes associated with 
it are spreading in areas such as Atlanta, Chicago, Detroit, St. Louis, 
and Texas, as well as the East Coast and mid-Atlantic regions. This 
problem, once perceived as a ``western state'' problem, has become a 
nationwide problem, growing at an extraordinary rate.
  My State has shown that a cooperative effort--law enforcement working 
side-by-side with those handling cleanup, intervention, treatment, 
child and family support, drug courts and family drug courts, and 
education--is effective at addressing this problem. Thanks to the 
Washington Methamphetamine Initiative and the ``Methamphetamine Action 
Teams,'' multi-disciplinary teams situated in each county across the 
State, meth production was cut back by 25 percent last year. Washington 
State has dropped from second in the Nation to sixth in the production 
of meth. The comprehensive, holistic approach my State has taken to 
combat meth is working well, and I believe that our program can be a 
model for the national fight.
  By making intervention, treatment and family support as important as 
arrests and prosecution, we are effectively overcoming the secondary 
problems that meth creates by addressing the root causes, not just the 
social symptoms. By taking this approach we are not simply growing 
prison populations and pushing the problem to regions not previously 
impacted by meth, but attacking the growth of the use of this terrible 
drug.
  We in Washington State have also learned that laws restricting the 
sale of large quantities of precursor drugs such as ephedrine make it 
more difficult for users to produce meth, and this tactic has reduced 
the number of clandestine labs in the State.
  This approach to fighting meth use has been very successful, but it 
takes money. And although there has been an explosion in the use of 
meth, Federal funding has been cut. Each year, States with a growing 
meth problem are required to go through a politicized process seeking 
Federal funding through the earmark process. And each year, the funds 
are being cut.
  These challenges to our States mean only one thing: we need to make 
funding to combat meth permanent. Permanent Federal funding support for 
meth enforcement and clean-up is critical to the efforts of State and 
local law enforcement to reduce the use, manufacture and sale of meth.
  That is why I am introducing the Confronting Methamphetamines Act of 
2004. This bill will create a supplemental grant to augment the 
Department of Justice's Byrne Formula Grant Program to provide block 
grants to help States confront their meth problems.
  Under my bill, States will be able to apply for a formula grant if 
they meet two prerequisites: the State must have a comprehensive, long 
term plan to address methamphetamine use, manufacture and sale; and the 
State legislature must commit to enacting laws to limit the sales of 
precursor products (the commercially available products used to make 
meth, such as ephedrine). Where a State has met these two requirements, 
that State will be eligible to receive a Federal formula grant.
  States have discretion as to how to use the funds. The activities 
funded may include arrest, lab seizures and clean up, child and family 
support services, community based education, awareness and prevention, 
intervention, treatment, Drug Court and Family Drug Court, community 
policing, the hiring of specially trained law enforcement, State and 
local health and environmental department support, and prosecution.
  The Confronting Methamphetamines Act also provides for planning 
grants, $100,000 per State, so States can develop long-term strategies 
to address meth. We have seen in Washington and in other States that 
comprehensive plans to address all aspects of meth--from use to 
manufacture to sale--have the best and most efficient results. Through 
this provision, I want to encourage States to consider the long-term 
situation when they take the initial steps in combating meth.
  To assure that the best practices to confront meth deployed in our 
local communities are shared across the country, my bill requires the 
U.S. Attorney General to collect data, to establish a national 
clearinghouse for best practices in addressing the meth problem, and to 
provide technical assistance to States or local agencies.
  Like the Byrne Formula Grants, distribution to eligible States will 
be based on State population. The supplemental allocation to an 
eligible State will be no less than the base amount of $250,000 or 0.25 
percent of the amount available for the program, whichever is greater, 
with the remaining funds allocated to the other eligible States on the 
basis of the state's relative share of total U.S. population.
  The bill authorizes $100 million per fiscal year 2005 and 2006, 
elevating the funding to $200 million for the subsequent three years, 
assuring that the funds are available as the meth problem grows and 
more States become plagued by the problem of meth.
  I have received letters supporting this legislation from the 
Fraternal Order of Police, National Association of Drug Court 
Professionals, the Police Executive Research Forum, the Washington 
State's Governor's office, representing State law enforcement, 
environmental protection, health and human services and the Washington 
State Methamphetamine Initiative, and the Pierce County Alliance, 
essentially the epicenter of Washington State's response to 
methampheta-
mines. These letters reflect the level and breadth of concern for our 
law enforcement, drug addiction care providers, the courts and 
environmental protection agencies.
  We have to give a strong signal to the State and local governments 
that we recognize the meth problems that they are facing, we are 
committed to support long-term comprehensive strategies to confront the 
problem, and will assure availability of substantial federal funds to 
help confront this startlingly rapidly growing problem.
  This legislation assures the funding and continuity of Federal 
support desperately needed by our State and local governments. It 
assures that States have the opportunity to develop a long-term 
comprehensive strategy to combat meth, and gives those on the front 
lines in this battle the flexibility to use the federal dollars as they 
see fit, consistent with their long-term plan. I urge the Senate to 
support this bill and plan to work aggressively with the other body to 
bring it into law as promptly as possible.
  Mr. President, I ask unanimous consent that the four letters of 
support be printed in the Record.
  There being no objection, the additional material was ordered to be 
printed in the Record, as follows:

                                      National Association of Drug


                                          Court Professionals,

                                  Alexandria, VA, October 6, 2004.
     Re Confronting Meth Act of 2004.

     Hon. Maria Cantwell,
     U.S. Senate, Hart Senate Office Building,
     Washington, DC.
       Dear Senator Cantwell: I am writing this letter in support 
     of the Confronting Meth Act of 2004 on behalf of the entire 
     drug court field and the professionals and clients we serve. 
     As active workers in the areas of

[[Page 21437]]

     treatment, law enforcement and the judiciary, we see the 
     devastation of methamphetamine use. We understand the 
     debilitating effect meth has on its users and the 
     overwhelming impact it has on families and communities. Our 
     members contact us weekly and describe in detail the special 
     challenges that accompany addiction to meth and the 
     additional resources needed to meet these challenges. It is 
     important that communities all over the country have an 
     avenue to address this issue. The Act has the unique ability 
     to equip states with that ability.
       The funding formula that is proposed will encourage local 
     solutions to a problem that differs from jurisdiction to 
     jurisdiction. The Act also lends itself to a multi-faceted 
     approach to a pervasive challenge. We wholly support this 
     legislation and pledge the expertise of our organization to 
     its passage and implementation. Thank you for your vision in 
     introducing this important legislation.
           Sincerely,
                                Judge Karen Freeman-Wilson (ret.),

     Chief Executive Officer.
                                  ____


                                                       Grand Lodge


                                    Fraternal Order of Police,

                                  Washington, DC, October 6, 2004.
     Hon. Maria Cantwell,
     U.S. Senate,
     Washington, DC.
       Dear Senator Cantwell: I am writing on behalf of the 
     membership of the Fraternal Order of Police to advise you of 
     our support for legislation you intend to introduce entitled 
     the ``Confronting Methamphetamine Act.''
       The bill creates a supplemental grant program at the U.S. 
     Department of Justice for States that develop a 
     comprehensive, long-term plan to address the use, 
     manufacture, and sale of methamphetamines, and has enacted or 
     will enact a law to limit the sale of precursor products that 
     are used to make this dangerous drug. States that meet this 
     criteria will be able to apply for funds to fight the growing 
     problem of methamphetamines and will have discretion as to 
     how to use the funds, be it for community policing, lab 
     seizures and clean up, awareness and prevention, 
     intervention, treatment, and prosecution. The bill authorizes 
     $100 million for the program in fiscal years 2005 and 2006, 
     and then elevates the funding to $200 million for the 
     subsequent three years.
       Law enforcement needs additional resources to fight the 
     spread of methamphetamine abuse, and the bill you intend to 
     introduce will do just that. The F.O.P. welcomes the 
     opportunity to work with you and your staff on this 
     legislation. If we can be of any further assistance, please 
     do not hesitate to contact me or Executive Director Jim Pasco 
     through my Washington office.
           Sincerely,
                                                 Chuck Canterbury,
     National President.
                                  ____

                                                  Police Executive


                                               Research Forum,

                                                  October 7, 2004.
     Hon. Maria Cantwell,
     Hart Senate Office Building,
     U.S. Senate, Washington, DC.
       Dear Senator Cantwell: On behalf of the Police Executive 
     Research Forum (PERF), a national organization of police 
     executive professionals who collectively serve more than 50 
     percent of the nation's population, I would like to thank you 
     for your continued leadership on law enforcement and public 
     issues. The men and women of law enforcement face tremendous 
     challenges in combating the manufacturing, trafficking, sale, 
     and use of illicit drugs, as well as drug-related violence 
     and crime in our streets, PERF commends your efforts to 
     introduce effective legislation to help provide law 
     enforcement with the resources to reduce the presence of 
     methamphetamine drugs and laboratories across the nation, and 
     to investigate and prosecute the criminals who corrupt our 
     children and endanger our communities.
       The Confronting Methamphetamine Act of 2004 presents a 
     comprehensive, cooperative, multi-agency approach to 
     addressing the methamphetamine problem in the United States, 
     and PERF believes this to be the best course of action for 
     achieving long-term solutions. It is crucial to involve 
     federal, state, local, and private entities in this fight, 
     and to supplement that fight with grants that will enable law 
     enforcement, prosecutors, treatment facilities, and 
     community-based organizations to carry out their respective 
     missions effectively.
       PERF members see first-hand the ravaging effect that 
     methamphetamine and other illicit drugs have on communities 
     nationwide. They recognize and applaud your efforts to 
     provide them with the resources to attack this problem head-
     on. If you have any additional questions, please feel free to 
     contact PERF Legislative Director Martha Plotkin at 
     [email protected] or PERF Legislative Assistant Steve 
     Loyka at [email protected]. I look forward to working 
     with you and your staff on this legislation.
           Sincerely,
                                                     Chuck Wexler,
     Executive Director.
                                  ____

                                              State of Washington,


                           Governor's Executive Policy Office,

                                     Olympia, WA, October 5, 2004.
     Senator Maria Cantwell,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Cantwell: On behalf of members of the 
     Governor's Methamphetamine Coordinating Committee, I am 
     writing to thank you for your continued support of 
     Washington's comprehensive strategy to reduce methamphetamine 
     trafficking and use. You have been a champion for funding 
     over five years, and I appreciate your willingness to 
     introduce legislation establishing an ongoing federal grant 
     program for this purpose.
       Your proposed ``Confronting Methamphetamines Act'' would 
     help states like Washington implement effective strategies 
     including prevention, law enforcement, treatment, services to 
     affected children and families, and cleanup. It would 
     recognize the need for multi-disciplinary coalitions, local 
     and tribal involvement, and state laws restricting the sale 
     of precursor chemicals. It would provide planning grants to 
     help states develop strategies, as well as larger grants for 
     implementation.
       I appreciate the chance to work with your staff in 
     developing this legislation. It deserves broad support among 
     members of Congress from the many states where the 
     methamphetamine epidemic has spread. Our Methamphetamine 
     Coordinating Committee members look forward to working with 
     your office as the bill is considered. Thank you again for 
     your leadership and support.
           Sincerely,
                                           Richard D. Van Wagenen,
     Executive Policy Advisor.
                                  ____



                                       Pierce County Alliance,

                                        Tacoma, WA, June 17, 2004.
     Senator Maria Cantwell,
     Hart Senate Office Building,
     Washington, DC.
       Dear Senator Cantwell: On behalf of the Pierce County 
     Alliance and the Washington State Methamphetamine Initiative, 
     I want to express my sincere appreciation for your 
     outstanding support and efforts to bring about the essential 
     funding that makes our efforts possible. Your work has been 
     crucial to the continuance of the battle to abate the 
     methamphetamine crisis in our state.
       Of course, I also fully endorse and support your 
     sponsorship of the ``Confronting Methamphetamines Act of 
     2004'' that would further assist states like ours to deal 
     with the multi-faceted problems of methamphetamine 
     production, distribution, and use. I am pleased to note that 
     it builds on the model that we have evolved here in 
     Washington State, encompassing a multi-disciplinary approach 
     with broad collaborations at all governmental levels and 
     across all social sectors. Please do not hesitate to contact 
     me if I can be of any assistance in this endeavor.
       Again, my thanks to you for your continued leadership and 
     support on this critical issue.
           Sincerely,
                                            Terree Schmidt-Whelan,
                                               Executive Director.
                                 ______
                                 
      By Mr. ROCKEFELLER:
  S. 2935. A bill to amend section 35 of the Internal Revenue Code of 
1986 to improve the health coverage tax credit, and for other purposes; 
to the Committee on Finance.
  Mr. ROCKEFELLER. On Monday, the Government Accountability Office 
(GAO) released a report on the Trade Adjustment Assistance health 
coverage tax credit, HCTC. The report confirms what many in Congress 
have been saying since the HCTC program began--the credit is not 
enough, the program has several barriers to enrollment, the premiums 
are prohibitively high for some workers because of medical 
underwriting, and the program is very expensive to administer.
  It is long past time for Congress to focus on the problems with the 
TAA health coverage tax credit. That is why I am introducing 
legislation today that will make much-needed improvements to the HCTC 
program. The TAA Health Coverage Improvement Act of 2004 offers 
solutions to many of the problems with the HCTC identified by GAO. This 
legislation will go a long way to make the TAA health care tax credit a 
realistic option for displaced workers and their families.
  When Congress passed the Trade Act of 2002, we made a promise to 
American workers that the potential loss of jobs will not equal the 
loss of health care coverage. Unfortunately, Congress has failed to 
make good on that promise. For the last two years, I have heard from 
steel retirees and widows in my State about how unaffordable the TAA 
health care tax credit is. And I have been very frustrated, just as I 
was when this bill passed, that we were not able to make the credit 
more affordable and accessible for people who need

[[Page 21438]]

it the most--laid-off workers and retirees who have very limited 
income.
  For a good number of supporters of the Trade Act of 2002, the health 
insurance tax credit was the single most important factor in overcoming 
their concerns about giving the President fast- track authority to move 
trade agreements through Congress. In my own judgment, the fast-track 
would not have passed Congress without the health care tax credit. The 
TAA health credit was the trade-off to balance the President's 
authority.
  Yet, the success many of us envisioned for the health care tax credit 
has not been realized through implementation. The number of people who 
have been able to access the health care tax credit over the last two 
years is extremely disappointing. As of July 2004, only 13,194 out of 
229,044 who are eligible for the credit are enrolled in the program. 
That is less than six percent, which means that over 94 percent of 
those eligible are not participating.
  I must say to my colleagues that Congress has had a hand in these 
disappointing enrollment figures. We have ignored every opportunity to 
improve the health coverage tax credit and enhance the lives of workers 
displaced by trade. Most recently, the members of this body voted 
against the Wyden-Coleman-Rockefeller-Baucus TAA amendment to the FSC/
ETI bill. Not only would this amendment have extended Trade Adjustment 
Assistance to service workers, it also would have addressed some of the 
problems GAO has identified with the health coverage credit.
  The TAA Health Coverage Improvement Act makes long overdue 
improvements to the TAA health care tax credit. First, this legislation 
addresses the issue of affordability. In addition to GAO, several 
consumer advocacy groups and research organizations--including the 
Commonwealth Fund, the Center on Budget and Policy Priorities, and 
Families USA--have cited affordability of the credit as the primary 
reason for low participation in the HCTC program. The bottom line is 
that a 65 percent subsidy is not enough. With a 65 percent credit, an 
eligible individual still has to pay an average of $1,714 out-of-pocket 
per year for single coverage. This figure is particularly astounding 
given the fact that the average worker, while actively employed and 
earning a paycheck, paid just $508 in 2003 for single employer-
sponsored health insurance coverage. The TAA Health Coverage 
Improvement Act makes the credit more affordable by increasing the 
subsidy amount to 95 percent.
  This legislation also addresses the issue of affordability by placing 
limits on the use of the individual market, as Congress intended under 
the original law. The Trade Act of 2002 specified that the health 
insurance credit could not be used for the purchase of health insurance 
coverage in the individual market except for HCTC-eligible workers who 
previously had a private, non- group coverage policy 30 days prior to 
separation from employment. However, States have been allowed by this 
Administration to create state-based coverage options in the individual 
market for any HCTC beneficiaries, including those who did not have 
individual market coverage one month prior to separation from 
employment.
  Because of the Administration's interpretation of the law, there are 
people who had employer-based coverage prior to separation from 
employment who are now being covered in the individual market. This was 
not the intent of the law. To make matters worse, this interpretation 
undermines the consumer protections set forth in the law because 
individual market plans are allowed to vary premiums based on age and 
medical status. In one State GAO reviewed for its report, because of 
medical underwriting, HCTC recipients in less-than-perfect health were 
charged almost six times the premiums charged to recipients rated in 
the healthiest category. The legislation I am introducing today 
addresses this problem by clarifying that states can only designate 
individual market coverage within guidelines of 30-day restriction and 
by requiring individual market plans to be community-rated.
  Second, this legislation guarantees that eligible workers will have 
access to comprehensive group health coverage. Group coverage is what 
people know. The vast majority of laid-off workers and PBGC retirees 
had employer-sponsored group coverage prior to losing their jobs or 
pension benefits. The TAA Health Coverage Improvement Act designates 
the Federal Employees Health Benefit Plan (FEHBP) as a qualified group 
option in every State, so that displaced workers nationwide will have 
access to the same type of affordable, comprehensive coverage they were 
used to when they were employed.
  Third, the TAA Health Coverage Act clarifies the three month 
continuous coverage requirement. Under the original TAA statute, 
displaced workers are required to maintain three months of continuous 
health insurance coverage in order to qualify for certain consumer 
protections. Those protections are guaranteed issue, no preexisting 
condition exclusion, comparable premiums, and comparable benefits. 
Congress intended this 3 month period to be counted as the 3 months 
prior to separation from employment. However, the Administration has 
interpreted the 3 month requirement as 3 months of health insurance 
coverage prior to enrollment in the new health plan, which usually is 
after separation from employment and after certification of TAA 
eligibility. Many laid-off workers and PBGC recipients cannot afford to 
maintain health coverage in the months between losing their jobs and 
TAA certification and, therefore, lose eligibility for the statutorily 
provided consumer protections. This legislation corrects this problem 
by clarifying that 3 months of continuous coverage means 3 months prior 
to separation from employment.
  Fourth, this bill allows spouses and dependents to receive the health 
coverage tax credit. Over the last 2 years, younger spouses and 
dependents of Medicare-eligible individuals have not been able to 
receive the subsidy because eligibility runs through the worker or 
retiree. This technicality is unfair to individuals who rely on health 
coverage through their spouses or parents. The TAA Health Coverage 
Improvement Act allows younger spouses and dependent children to retain 
eligibility for the health coverage tax credit in the event the 
qualified beneficiary becomes eligible for Medicare.
  Finally, this legislation streamlines the HCTC enrollment process and 
makes it easier for trade-displaced workers to access health insurance 
coverage. According to GAO, two of the factors contributing to low 
participation include a complicated and fragmented enrollment process 
and the inability of workers to pay 100 percent of the premium during 
the 3 to 6 months they are waiting to enroll in advance payment. This 
legislation includes a presumptive eligibility provision that allows 
displaced workers to enroll in a qualified health plan and receive the 
HCTC immediately upon application to the Department of Labor for 
certification. There is also a provision which directs the Treasury 
Secretary to pay 100 percent of the cost of premiums directly to the 
health plans during the months TAA-eligible workers are waiting for 
advance payment to begin.
  As a former Governor, I know how important Trade Adjustment 
Assistance is to individuals who have lost their jobs due to trade. In 
West Virginia, thousands of workers have lost their jobs as a result of 
trade policy. While adjusting to the loss of employment, these 
individuals still have to pay mortgages, put food on the table, and 
care for their families. Finding affordable health care adds a 
significant burden to their worries. The TAA health coverage tax credit 
is designed to help American workers retain health insurance coverage 
during this very difficult transition.
  Unfortunately, the HCTC program is not living up to its potential. 
The Government Accountability Office has given us a very specific 
diagnosis of the problems. Now, it is up to us to fix them. The TAA 
Health Coverage Improvement Act builds upon the Trade Act of 2002 and 
the lessons we have learned since in order to make the

[[Page 21439]]

health coverage credit workable for eligible individuals and their 
families. I look forward to working with my colleagues to pass this 
important legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2935

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``TAA Health 
     Coverage Improvement Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Improvement of the affordability of the credit.
Sec. 3. 100 percent credit and payment for monthly premiums paid prior 
              to certification of eligibility for the credit.
Sec. 4. Eligibility for certain pension plan participants; presumptive 
              eligibility.
Sec. 5. Clarification of 3-month creditable coverage requirement.
Sec. 6. TAA pre-certification period rule for purposes of determining 
              whether there is a 63-day lapse in creditable coverage.
Sec. 7. Continued qualification of family members after certain events.
Sec. 8. Offering of Federal group coverage.
Sec. 9. Additional requirements for individual health insurance costs.
Sec. 10. Alignment of COBRA coverage with TAA period for TAA-eligible 
              individuals.
Sec. 11. Notice requirements.
Sec. 12. Annual report on enhanced TAA benefits.
Sec. 13. Extension of national emergency grants.
Sec. 14. Extension of funding for operation of State high risk health 
              insurance pools.

     SEC. 2. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

       (a) Improvement of Affordability.--
       (1) In General.--Section 35(a) of the Internal Revenue Code 
     of 1986 (relating to credit for health insurance costs of 
     eligible individuals) is amended by striking ``65'' and 
     inserting ``95''.
       (2) Conforming amendment.--Section 7527(b) of such Code 
     (relating to advance payment of credit for health insurance 
     costs of eligible individuals) is amended by striking ``65'' 
     and inserting ``95''.
       (b) Effective Date.--The amendments made by this section 
     apply to taxable years beginning after December 31, 2004.

     SEC. 3. 100 PERCENT CREDIT AND PAYMENT FOR MONTHLY PREMIUMS 
                   PAID PRIOR TO CERTIFICATION OF ELIGIBILITY FOR 
                   THE CREDIT.

       (a) In General.--Subsection (a) of section 35 of the 
     Internal Revenue Code of 1986, as amended by section 2(a)(1), 
     is amended--
       (1) by striking the subsection heading and all that follows 
     through ``In case'' and inserting ``Amount of Credit.--
       ``(1) In general.--In case''; and
       (2) by adding at the end the following new paragraph:
       ``(2) 100 percent credit for months prior to issuance of 
     eligibility certificate.--The amount allowed as a credit 
     against the tax imposed by subtitle A shall be equal to 100 
     percent in the case of the taxpayer's first eligible coverage 
     months occurring prior to the issuance of a qualified health 
     insurance costs credit eligibility certificate.''.
       (b) Payment for Premiums Due Prior to Certification of 
     Eligibility for the Credit.--Section 7527 of the Internal 
     Revenue Code of 1986 (relating to advance payment of credit 
     for health insurance costs of eligible individuals) is 
     amended by adding at the end the following new subsection:
       ``(e) Payment for Premiums Due Prior To Issuance of 
     Certificate.--The program established under subsection (a) 
     shall provide--
       ``(1) that the Secretary shall make payments on behalf of a 
     certified individual of an amount equal to 100 percent of the 
     premiums for coverage of the taxpayer and qualifying family 
     members under qualified health insurance for eligible 
     coverage months (as defined in section 35(b)) occurring prior 
     to the issuance of a qualified health insurance costs credit 
     eligibility certificate; and
       ``(2) that any payments made under paragraph (1) shall not 
     be included in the gross income of the taxpayer on whose 
     behalf such payments were made.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

     SEC. 4. ELIGIBILITY FOR CERTAIN PENSION PLAN RECIPIENTS; 
                   PRESUMPTIVE ELIGIBILITY.

       (a) Eligibility for Certain Pension Plan Recipients.--
     Subsection (c) of section 35 of the Internal Revenue Code of 
     1986 is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period and 
     inserting ``, and''; and
       (C) by adding at the end the following:
       ``(D) an eligible multiemployer pension participant.''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Eligible multiemployer pension recipient.--The term 
     `eligible multiemployer pension recipient' means, with 
     respect to any month, any individual--
       ``(A) who has attained age 55 as of the first day of such 
     month,
       ``(B) who is receiving a benefit from a multiemployer plan 
     (as defined in section 3(37)(A) of the Employee Retirement 
     Income Security Act of 1974), and
       ``(C) whose former employer has withdrawn from such 
     multiemployer plan pursuant to section 4203(a) of such 
     Act.''.
       (b) Presumptive Eligibility for Petitioners for Trade 
     Adjustment Assistance.--Subsection (c) of section 35 of the 
     Internal Revenue Code of 1986, as amended by subsection (a), 
     is amended by adding at the end the following new paragraph:
       ``(6) Presumptive status as a taa recipient.--The term 
     `eligible individual' shall include any individual who is 
     covered by a petition filed with the Secretary of Labor under 
     section 221 of the Trade Act of 1974. This paragraph shall 
     apply to any individual only with respect to months which--
       ``(A) end after the date that such petition is so filed, 
     and
       ``(B) begin before the earlier of--
       ``(i) the 90th day after the date of filing of such 
     petition, or
       ``(ii) the date on which the Secretary of Labor makes a 
     final determination with respect to such petition.''.
       (c) Conforming Amendments.--
       (1) Paragraph (1) of section 7527(d) of such Code is 
     amended by striking ``or an eligible alternative TAA 
     recipient (as defined in section 35(c)(3))'' and inserting 
     ``, an eligible alternative TAA recipient (as defined in 
     section 35(c)(3)), an eligible multiemployer pension 
     recipient (as defined in section 35(c)(5), or an individual 
     who is an eligible individual by reason of section 
     35(c)(6)''.
       (2) Section 173(f)(4) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2918(f)(4)) is amended--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period and 
     inserting a comma; and
       (C) by inserting after subparagraph (C), the following new 
     subparagraphs:
       ``(D) an eligible multiemployer pension recipient (as 
     defined in section 35(c)(5) of the Internal Revenue Code of 
     1986), and
       ``(E) an individual who is an eligible individual by reason 
     of section 35(c)(6) of the Internal Revenue Code of 1986.''.
       (d) Technical Amendment Clarifying Eligibility of Certain 
     Displaced Workers Receiving a Benefit Under a Defined Benefit 
     Pension Plan.--The first sentence of section 35(c)(2) of the 
     Internal Revenue Code of 1986 is amended by inserting before 
     the period the following: ``, and shall include any such 
     individual who would be eligible to receive such an allowance 
     but for the fact that the individual is receiving a benefit 
     under a defined benefit plan (as defined in section 3(35) of 
     the Employee Retirement Income Security Act of 1974).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to months beginning after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

     SEC. 5. CLARIFICATION OF 3-MONTH CREDITABLE COVERAGE 
                   REQUIREMENT.

       (a) In General.--Clause (i) of section 35(e)(2)(B) of the 
     Internal Revenue Code of 1986 (defining qualifying 
     individual) is amended by inserting ``(prior to the 
     employment separation necessary to attain the status of an 
     eligible individual)'' after ``9801(c)''.
       (b) Conforming Amendment.--Section 173(f)(2)(B)(ii)(I) of 
     the Workforce Investment Act of 1998 (29 U.S.C. 
     2918(f)(2)(B)(ii)(I)) is amended by inserting ``(prior to the 
     employment separation necessary to attain the status of an 
     eligible individual)'' after ``1986''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

     SEC. 6. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF 
                   DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN 
                   CREDITABLE COVERAGE.

       (a) ERISA Amendment.--Section 701(c)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date that is 5 days after the postmark date of the notice 
     by the Secretary (or by any person or entity designated by 
     the Secretary) that the individual is eligible for a 
     qualified health insurance costs credit eligibility 
     certificate for purposes of section

[[Page 21440]]

     7527 of the Internal Revenue Code of 1986 shall not be taken 
     into account in determining the continuous period under 
     subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 605(b)(4)(C).''.
       (b) PHSA Amendment.--Section 2701(c)(2) of the Public 
     Health Service Act (42 U.S.C. 300gg(c)(2)) is amended by 
     adding at the end the following new subparagraph:
       ``(C) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date that is 5 days after the postmark date of the notice 
     by the Secretary (or by any person or entity designated by 
     the Secretary) that the individual is eligible for a 
     qualified health insurance costs credit eligibility 
     certificate for purposes of section 7527 of the Internal 
     Revenue Code of 1986 shall not be taken into account in 
     determining the continuous period under subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 2205(b)(4)(C).''.
       (c) IRC Amendment.--Section 9801(c)(2) of the Internal 
     Revenue Code of 1986 (relating to not counting periods before 
     significant breaks in creditable coverage) is amended by 
     adding at the end the following new subparagraph:
       ``(D) TAA-eligible individuals.--
       ``(i) TAA pre-certification period rule.--In the case of a 
     TAA-eligible individual, the period beginning on the date the 
     individual has a TAA-related loss of coverage and ending on 
     the date which is 5 days after the postmark date of the 
     notice by the Secretary (or by any person or entity 
     designated by the Secretary) that the individual is eligible 
     for a qualified health insurance costs credit eligibility 
     certificate for purposes of section 7527 shall not be taken 
     into account in determining the continuous period under 
     subparagraph (A).
       ``(ii) Definitions.--The terms `TAA-eligible individual', 
     and `TAA-related loss of coverage' have the meanings given 
     such terms in section 4980B(f)(5)(C)(iv).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to months beginning after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

     SEC. 7. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER 
                   CERTAIN EVENTS.

       (a) In General.--Subsection (g) of section 35 of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraph (9) as paragraph (10) and inserting after paragraph 
     (8) the following new paragraph:
       ``(9) Continued qualification of family members after 
     certain events.--
       ``(A) Eligible individual becomes medicare eligible.--In 
     the case of a month which would be an eligible coverage month 
     with respect to an eligible individual but for subsection 
     (f)(2)(A), such month shall be treated as an eligible 
     coverage month with respect to any qualifying family member 
     of such eligible individual (but not with respect to such 
     eligible individual).
       ``(B) Divorce.--In the case of a month which would be an 
     eligible coverage month with respect to a former spouse of a 
     taxpayer but for the finalization of a divorce between the 
     spouse and the taxpayer that occurs during the period in 
     which the taxpayer is an eligible individual, such month 
     shall be treated as an eligible coverage month with respect 
     to such former spouse.
       ``(C) Death.--In the case of a month which would be an 
     eligible coverage month with respect to an eligible 
     individual but for the death of such individual, such month 
     shall be treated as an eligible coverage month with respect 
     to any qualifying family of such eligible individual.''.
       (b) Conforming Amendment.--Section 173(f) of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by 
     adding at the end the following:
       ``(8) Continued qualification of family members after 
     certain events.--
       ``(A) Eligible individual becomes medicare eligible.--In 
     the case of a month which would be an eligible coverage month 
     with respect to an eligible individual but for subsection 
     (f)(2)(A), such month shall be treated as an eligible 
     coverage month with respect to any qualifying family member 
     of such eligible individual (but not with respect to such 
     eligible individual).
       ``(B) Divorce.--In the case of a month which would be an 
     eligible coverage month with respect to a former spouse of a 
     taxpayer but for the finalization of a divorce between the 
     spouse and the taxpayer that occurs during the period in 
     which the taxpayer is an eligible individual, such month 
     shall be treated as an eligible coverage month with respect 
     to such former spouse.
       ``(C) Death.--In the case of a month which would be an 
     eligible coverage month with respect to an eligible 
     individual but for the death of such individual, such month 
     shall be treated as an eligible coverage month with respect 
     to any qualifying family of such eligible individual.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to months beginning after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

     SEC. 8. OFFERING OF FEDERAL GROUP COVERAGE.

       (a) Provision of Group Coverage.--
       (1) In general.--The Director of the Office of Personnel 
     Management jointly with the Secretary of the Treasury shall 
     establish a program under which eligible individuals (as 
     defined in section 35(c) of the Internal Revenue Code of 
     1986) are offered enrollment under health benefit plans that 
     are made available under FEHBP.
       (2) Terms and conditions.--The terms and conditions of 
     health benefits plans offered under paragraph (1) shall be 
     the same as the terms and coverage offered under FEHBP, 
     except that the percentage of the premium charged to eligible 
     individuals (as so defined) for such health benefit plans 
     shall be equal to 5 percent.
       (3) Study.--The Director of the Office of Personnel 
     Management jointly with the Secretary of the Treasury shall 
     conduct a study of the impact of the offering of health 
     benefit plans under this subsection on the terms and 
     conditions, including premiums, for health benefit plans 
     offered under FEHBP and shall submit to Congress, not later 
     than 2 years after the date of the enactment of this Act, a 
     report on such study. Such report may contain such 
     recommendations regarding the establishment of separate risk 
     pools for individuals covered under FEHBP and eligible 
     individuals covered under health benefit plans offered under 
     paragraph (1) as may be appropriate to protect the interests 
     of individuals covered under FEHBP and alleviate any adverse 
     impact on FEHBP that may result from the offering of such 
     health benefit plans.
       (4) FEHBP defined.--In this section, the term ``FEHBP'' 
     means the Federal Employees Health Benefits Program offered 
     under chapter 89 of title 5, United States Code.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 35(e) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(K) Coverage under a health benefits plan offered under 
     section 8(a)(1) of the TAA Health Care Tax Credit Improvement 
     Act of 2004.''.
       (2) Section 173(f)(2)(A) of the Workforce Investment Act of 
     1998 (29 U.S.C. 2918(f)(2)(A)) is amended by adding at the 
     end the following new clause:
       ``(xi) Coverage under a health benefits plan offered under 
     section 8(a)(1) of the TAA Health Care Tax Credit Improvement 
     Act of 2004.''.

     SEC. 9. ADDITIONAL REQUIREMENTS FOR INDIVIDUAL HEALTH 
                   INSURANCE COSTS.

       (a) In general.--Subparagraph (A) of section 35(e)(2) of 
     such Code is amended by striking ``subparagraphs (B) through 
     (H) of paragraph (1)'' and inserting ``paragraph (1) (other 
     than subparagraphs (A), (I), and (K) thereof)''.
       (b) Rating System Requirement.--Subparagraph (J) of section 
     35(e)(1) of such Code is amended by adding at the end the 
     following: ``For purposes of this subparagraph and clauses 
     (ii), (iii), and (iv) of subparagraph (F), such term does not 
     include any insurance unless the premiums for such insurance 
     are restricted based on a community rating system (determined 
     other than on the basis of age).''.
       (c) Clarification of Congressional Intent To Limit Use of 
     Individual Health Insurance Coverage Option.--Section 
     35(e)(1)(J) (relating to qualified health insurance) is 
     amended in the matter preceding clause (i), by inserting ``, 
     but only'' after ``under individual health insurance''.
       (d) Conforming Amendments.--Section 173(f)(2) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918(f)(2)) is 
     amended--
       (1) in subparagraph (A)(x), by adding at the end the 
     following: ``Such term does not include any insurance unless 
     the premiums for such insurance are restricted based on a 
     community rating system (determined other than on the basis 
     of age).''; and
       (2) in subparagraph (B)--
       (A) in the matter preceding subclause (I), by inserting ``, 
     but only'' after ``under individual health insurance''; and
       (B) in clause (i), by striking ``clauses (ii) through 
     (viii) of subparagraph (A)'' and inserting ``subparagraph (A) 
     (other than clauses (i), (x), and (xi) thereof)''.

     SEC. 10. ALIGNMENT OF COBRA COVERAGE WITH TAA PERIOD FOR TAA-
                   ELIGIBLE INDIVIDUALS.

       (a) ERISA.--Section 605(b) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1165(b)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Coverage'' after ``Election''; and
       (2) in paragraph (2)--
       (A) in the paragraph heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under section 602(2)(A) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.
       (b) Internal Revenue Code of 1986.--Section 4980B(f)(5)(C) 
     of the Internal Revenue Code of 1986 is amended--

[[Page 21441]]

       (1) in the subparagraph heading, by inserting ``and 
     coverage'' after ``election''; and
       (2) in clause (ii)--
       (A) in the clause heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under paragraph (2)(B)(i) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.
       (c) Public Health Service Act.--Section 2205(b) of the 
     Public Health Service Act (42 U.S.C. 300bb-5(b)) is amended--
       (1) in the subsection heading, by inserting ``and 
     Coverage'' after ``Election''; and
       (2) in paragraph (2)--
       (A) in the paragraph heading, by inserting ``and period'' 
     after ``Commencement'';
       (B) by striking ``and shall'' and inserting ``, shall''; 
     and
       (C) by inserting ``, and in no event shall the maximum 
     period required under section 2202(2)(A) be less than the 
     period during which the individual is a TAA-eligible 
     individual'' before the period at the end.

     SEC. 11. NOTICE REQUIREMENTS.

       Section 7527 of the Internal Revenue Code of 1986 (relating 
     to advance payment of credit for health insurance costs of 
     eligible individuals), as amended by section 3(b), is amended 
     by adding at the end the following new subsection:
       ``(f) Inclusion of Certain Information.--The notice by the 
     Secretary (or by any person or entity designated by the 
     Secretary) that an individual is eligible for a qualified 
     health insurance costs credit eligibility certificate shall 
     include--
       ``(1) the name, address, and telephone number of the State 
     office or offices responsible for determining that the 
     individual is eligible for such certificate and for providing 
     the individual with assistance with enrollment in qualified 
     health insurance (as defined in section 35(e)),
       ``(2) a list of the coverage options that are treated as 
     qualified health insurance (as so defined) by the State in 
     which the individual resides, and
       ``(3) in the case of a TAA-eligible individual (as defined 
     in section 4980B(f)(5)(C)(iv)(II)), a statement informing the 
     individual that the individual has 63 days from the date that 
     is 5 days after the postmark date of such notice to enroll in 
     such insurance without a lapse in creditable coverage (as 
     defined in section 9801(c)).''.

     SEC. 12. ANNUAL REPORT ON ENHANCED TAA BENEFITS.

       Not later than October 1 of each year (beginning in 2004) 
     the Secretary of the Treasury, after consultation with the 
     Secretary of Labor, shall report to the Committee on Finance 
     and the Committee on Health, Education, Labor, and Pensions 
     of the Senate and the Committee on Ways and Means and the 
     Committee on Education and the Workforce of the House of 
     Representatives the following information with respect to the 
     most recent taxable year ending before such date:
       (1) The total number of participants utilizing the health 
     insurance tax credit under section 35 of the Internal Revenue 
     Code of 1986, including a measurement of such participants 
     identified--
       (A) by State, and
       (B) by coverage under COBRA continuation provisions (as 
     defined in section 9832(d)(1) of such Code) and by non-COBRA 
     coverage (further identified by group and individual market).
       (2) The range of monthly health insurance premiums offered 
     and the average and median monthly health insurance premiums 
     offered to TAA-eligible individuals (as defined in section 
     4980B(f)(5)(C)(iv)(II) of such Code) under COBRA continuation 
     provisions (as defined in section 9832(d)(1) of such Code), 
     State-based continuation coverage provided under a State law 
     that requires such coverage, and each category of coverage 
     described in section 35(e)(1) of such Code, identified by 
     State and by the actuarial value of such coverage and the 
     specific benefits provided and cost-sharing imposed under 
     such coverage.
       (3) The number of States applying for and receiving 
     national emergency grants under section 173(f) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) and the 
     time necessary for application approval of such grants.
       (4) The cost of administering the health credit program 
     under section 35 of such Code, by function, including the 
     cost of subcontractors.

     SEC. 13. EXTENSION OF NATIONAL EMERGENCY GRANTS.

       (a) In General.--Section 173(f) of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2918(f)) is amended--
       (1) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Use of funds.--
       ``(A) Health insurance coverage for eligible individuals in 
     order to obtain qualified health insurance that has 
     guaranteed issue and other consumer protections.--Funds made 
     available to a State or entity under paragraph (4)(A) of 
     subsection (a) shall be used to provide an eligible 
     individual described in paragraph (4)(C) and such 
     individual's qualifying family members with health insurance 
     coverage for the 3-month period that immediately precedes the 
     first eligible coverage month (as defined in section 35(b) of 
     the Internal Revenue Code of 1986) in which such eligible 
     individual and such individual's qualifying family members 
     are covered by qualified health insurance that meets the 
     requirements described in clauses (i) through (iv) of section 
     35(e)(2)(A) of the Internal Revenue Code of 1986 (or such 
     longer minimum period as is necessary in order for such 
     eligible individual and such individual's qualifying family 
     members to be covered by qualified health insurance that 
     meets such requirements).
       ``(B) Additional uses.--Funds made available to a State or 
     entity under paragraph (4)(A) of subsection (a) may be used 
     by the State or entity for the following:
       ``(i) Health insurance coverage.--To assist an eligible 
     individual and such individual's qualifying family members 
     with enrolling in health insurance coverage and qualified 
     health insurance or paying premiums for such coverage or 
     insurance.
       ``(ii) Administrative expenses and start-up expenses to 
     establish group health plan coverage options for qualified 
     health insurance.--To pay the administrative expenses related 
     to the enrollment of eligible individuals and such 
     individuals' qualifying family members in health insurance 
     coverage and qualified health insurance, including--

       ``(I) eligibility verification activities;
       ``(II) the notification of eligible individuals of 
     available health insurance and qualified health insurance 
     options;
       ``(III) processing qualified health insurance costs credit 
     eligibility certificates provided for under section 7527 of 
     the Internal Revenue Code of 1986;
       ``(IV) providing assistance to eligible individuals in 
     enrolling in health insurance coverage and qualified health 
     insurance;
       ``(V) the development or installation of necessary data 
     management systems; and
       ``(VI) any other expenses determined appropriate by the 
     Secretary, including start-up costs and on going 
     administrative expenses, in order for the State to treat the 
     coverage described in subparagraph (C), (D), (E), or (F)(i) 
     of section 35(e)(1) of the Internal Revenue Code of 1986, or, 
     only if the coverage is under a group health plan, the 
     coverage described in subparagraph (F)(ii), (F)(iii), 
     (F)(iv), (G), or (H) of such section, as qualified health 
     insurance under that section.

       ``(iii) Outreach.--To pay for outreach to eligible 
     individuals to inform such individuals of available health 
     insurance and qualified health insurance options, including 
     outreach consisting of notice to eligible individuals of such 
     options made available after the date of enactment of this 
     clause and direct assistance to help potentially eligible 
     individuals and such individual's qualifying family members 
     qualify and remain eligible for the credit established under 
     section 35 of the Internal Revenue Code of 1986 and advance 
     payment of such credit under section 7527 of such Code.
       ``(iv) Bridge funding.--To assist potentially eligible 
     individuals purchase qualified health insurance coverage 
     prior to issuance of a qualified health insurance costs 
     credit eligibility certificate under section 7527 of the 
     Internal Revenue Code of 1986 and commencement of advance 
     payment, and receipt of expedited payment, under subsections 
     (a) and (e), respectively, of that section.
       ``(C) Rule of construction.--The inclusion of a permitted 
     use under this paragraph shall not be construed as 
     prohibiting a similar use of funds permitted under subsection 
     (g).''; and
       (2) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Qualified health insurance.--For purposes of this 
     subsection and subsection (g), the term `qualified health 
     insurance' has the meaning given that term in section 35(e) 
     of the Internal Revenue Code of 1986.''.
       (b) Funding.--Section 174(c)(1) of the Workforce Investment 
     Act of 1998 (29 U.S.C. 2919(c)(1)) is amended--
       (1) in the paragraph heading, by striking ``Authorization 
     and appropriation for fiscal year 2002'' and inserting 
     ``Appropriations''; and
       (2) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) to carry out subsection (a)(4)(A) of section 173--
       ``(i) $10,000,000 for fiscal year 2002; and
       ``(ii) $300,000,000 for the period of fiscal years 2005 
     through 2007; and''.
       (c) Report Regarding Failure To Comply With Requirements 
     for Expedited Approval Procedures.--Section 173(f) of the 
     Workforce Investment Act of 1998 (29 U.S.C. 2918(f)) is 
     amended by adding at the end the following new paragraph:
       ``(8) Report for failure to comply with requirements for 
     expedited approval procedures.--If the Secretary fails to 
     make the notification required under clause (i) of paragraph 
     (3)(A) within the 15-day period required under that clause, 
     or fails to provide the technical assistance required under 
     clause (ii) of such paragraph within a timely manner so that 
     a State or entity may submit an approved application within 2 
     months of the date on which the State or entity's previous 
     application was disapproved, the Secretary shall submit a 
     report to Congress explaining such failure.''.
       (d) Technical Amendment.--Effective as if included in the 
     enactment of the Trade Act

[[Page 21442]]

     of 2002 (Public Law 107-210; 116 Stat. 933), subsection (f) 
     of section 203 of that Act is repealed.

     SEC. 14. EXTENSION OF FUNDING FOR OPERATION OF STATE HIGH 
                   RISK HEALTH INSURANCE POOLS.

       (a) Extension of Seed Grants.--Section 2745 of the Public 
     Health Service Act (42 U.S.C. 300gg-45) is amended--
       (1) in subsection (a), in the subsection heading by 
     inserting ``Extension of'' before ``Seed''; and
       (2) in subsection (c)(1), by striking ``$20,000,000'' and 
     all that follows through ``2003'' and inserting ``$15,000,000 
     for the period of fiscal years 2005 and 2006''.
       (b) Funds for Operations.--Section 2745 of the Public 
     Health Service Act (42 U.S.C. 300gg-45) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading by striking ``Matching''; and
       (B) by striking paragraph (2) and inserting the following 
     new paragraph:
       ``(2) Allotment.--The amounts appropriated under subsection 
     (c)(2) for a fiscal year shall be made available to the 
     States (or the entities that operate the high risk pool under 
     applicable State law) as follows:
       ``(A) An amount equal to 50 percent of the appropriated 
     amount for the fiscal year shall be allocated in equal 
     amounts among each eligible State that applies for assistance 
     under this subsection.
       ``(B) An amount equal to 25 percent of the appropriated 
     amount for the fiscal year shall be allocated among the 
     States so that the amount provided to a State bears the same 
     ratio to such available amount as the number of uninsured 
     individuals in the State bears to the total number of 
     uninsured individuals in all States (as determined by the 
     Secretary).
       ``(C) An amount equal to 25 percent of the appropriated 
     amount for the fiscal year shall be allocated among the 
     States so that the amount provided to a State bears the same 
     ratio to such available amount as the number of individuals 
     enrolled in health care coverage through the qualified high 
     risk pool of the State bears to the total number of 
     individuals so enrolled through qualified high risk pools in 
     all States (as determined by the Secretary).''; and
       (2) in subsection (c)(2), by striking ``$40,000,000'' and 
     all that follows through the period and inserting 
     ``$75,000,000 for each of fiscal years 2005 through 2009 to 
     make allotments under subsection (b)(2).''.
       (c) Definitions.--Section 2745 of the Public Health Service 
     Act (42 U.S.C. 300gg-45) is amended--
       (1) in subsection (d), by inserting after ``2744(c)(2)'' 
     the following: ``, except that with respect to subparagraph 
     (A) of such section a State may elect to provide for the 
     enrollment of eligible individuals through an acceptable 
     alternative mechanism,''; and
       (2) by adding at the end the following new subsection:
       ``(e) Standard Risk Rate.--In subsection (b)(1)(A), the 
     term `standard risk rate' means a rate--
       ``(1) determined under the State high risk pool by 
     considering the premium rates charged by other health 
     insurers offering health insurance coverage to individuals in 
     the insurance market served;
       ``(2) that is established using reasonable actuarial 
     techniques; and
       ``(3) that reflects anticipated claims experience and 
     expenses for the coverage involved.''.
                                 ______
                                 
      By Mr. CAMPBELL:
  S. 2936. A bill to restore land to the Enterprise Rancheria to 
rectify an inequitable taking of the land; to the Committee on Indian 
Affairs.
  Mr. CAMPBELL. Mr. President, today I am pleased to introduce the 
Enterprise Rancheria Land Restoration Act of 2004, a bill that would 
restore lands to the Enterprise Rancheria, a Federally recognized 
Indian tribe. The tribe seeks this restoration to rectify an 
inequitable taking of their lands for the Oroville Dam in 1964.
  I am introducing this bill, at the request of the tribe, primarily to 
initiate a discussion regarding the tribe's efforts to obtain an 
equitable resolution among all the interested parties, including the 
tribe, local communities, and the tribe's congressional delegation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2936

       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 ``Enterprise Rancheria Land 
     Restoration Act of 2004''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) the Enterprise Rancheria is 1 of several Federally 
     recognized tribes of Maidu Indians in the State of California 
     that function under a government-to-government relationship 
     with the Federal Government;
       (2) the Maidu people lived for thousands of years along the 
     watershed of the Feather River drainage area in north central 
     California, near what is now known as the Sacramento Valley 
     floor, and near the confluence of the south, middle, north, 
     and west branches of the Feather River;
       (3) in 1916, pursuant to section 3 of the Act of August 1, 
     1914 (38 Stat. 589, chapter 222), and other Federal laws 
     relating to homeless Indians, a parcel of land comprising 
     approximately 40.64 acres was purchased for Enterprise 
     Rancheria;
       (4) in 1915, the Secretary of the Interior developed a 
     census of approximately 51 Maidu Indians, which is now used 
     for the purpose of establishing the base membership roll for 
     the Enterprise Rancheria;
       (5) Enterprise Rancheria has been continuously federally 
     recognized since 1915 and was again recognized by virtue of 
     voting in an election on June 12, 1935, pursuant to section 
     19 of the Act of June 18, 1934 (commonly known as the 
     ``Indian Reorganization Act'') (48 Stat. 984, chapter 576);
       (6) Enterprise Rancheria has a constitution recognized by 
     the Bureau of Indian Affairs, a functioning governing body, 
     and approximately 664 enrolled members;
       (7) on August 20, 1964, Public Law 88-453 was enacted, 
     which authorized the Secretary of the Interior to sell 
     Enterprise Rancheria No. 2 parcel to the State of California 
     for the approximate sum of $12,196, for the sole purpose of 
     construction of Oroville Dam;
       (8) the State of California requested the law described in 
     paragraph (7) because Enterprise Rancheria No. 2 parcel would 
     be within the reservoir area of the Oroville Dam, an 
     important element of the California water plan;
       (9) as a result of Public Law 88-453, Enterprise Rancheria 
     No. 2 parcel is nearly all under water within the reservoir 
     of the Oroville Dam;
       (10) pursuant to Public Law 88-453, $11,175 was paid as 
     consideration for the 40.46 acres of Enterprise Rancheria No. 
     2 parcel, along with $1,020 for appraised personal property, 
     for a total purchase price of $12,196.00;
       (11) the payment was distributed to 4 individuals, Henry B. 
     Martin, Vera Martin Kiras, Stanley Martin, and Ralph G. 
     Martin, who received a pro rata share of the proceeds;
       (12) the remaining heirs and members of the Tribe received 
     no compensation for the sale of the land;
       (13) subsequent to the sale of the Enterprise Rancheria No. 
     2 parcel, the Enterprise Rancheria members, having lost their 
     homes, community, and traditional homeland, were forced to 
     scatter throughout the surrounding foothill communities and 
     the Sacramento Valley area, which has caused a continuing 
     decay of their culture, language, and traditions;
       (14) recognizing that the final resolution of any equitable 
     compensation claims based on the inequitable taking of 
     Enterprise Rancheria No. 2 parcel will take many years and 
     entail great expense to all parties, rectifying the loss of 
     the Enterprise Rancheria is imperative at this time;
       (15) the uncertainty as to the availability of Enterprise 
     Rancheria land taken in 1964 should be settled as soon as 
     practicable to avoid further damage to the long-term 
     economic, social, cultural planning, and development of the 
     Enterprise Rancheria;
       (16) to advance and fulfill the goals of Federal Indian 
     policy and the responsibility of the United States to protect 
     the land base and members of Enterprise Rancheria, it is 
     appropriate that the United States participate in the 
     implementation of restoring the land in accordance with this 
     Act; and
       (17) this Act settles all claims Enterprise Rancheria may 
     have regarding any equitable compensation based on the taking 
     of the original Enterprise Rancheria No. 2 parcel in 1964.
       (b) Purposes.--The purposes of this Act are--
       (1) to rectify an inequitable taking of land owned by 
     Enterprise Rancheria, specifically that parcel known as 
     Enterprise Rancheria No. 2 parcel, which comprised 
     approximately 40.64 acres, in a manner that is consistent 
     with the trust responsibility of the United States toward 
     Federally recognized Indian tribes;
       (2) to restore land to the Enterprise Rancheria and improve 
     the socioeconomic, cultural, and traditional aspects of the 
     Maidu people of the Enterprise Rancheria, through land that 
     can be used for economic development to improve the social, 
     cultural, governmental, educational, health, and general 
     welfare of Enterprise Rancheria and members of the Enterprise 
     Rancheria; and
       (3) to require that land not to exceed 41 acres acquired by 
     Enterprise Rancheria within the 40-mile radius of Enterprise 
     Rancheria No. 2 parcel and within the Estom Yumeka Maidu 
     aboriginal boundaries, if approved for trust status pursuant 
     to part 151 of title 25, Code of Federal Regulations (or a 
     successor regulation), be treated for all legal purposes as 
     the restoration of land for an Indian tribe that is restored 
     to Federal recognition.

     SEC. 3. DEFINITIONS.

       In this Act:

[[Page 21443]]

       (1) Aboriginal boundaries.--The term ``aboriginal 
     boundaries'' means the boundaries of the land occupied and 
     possessed by the Maidu people prior to conquest, as a defined 
     area of what is now California, designated as the land near 
     and around the confluence of the Feather River within the 
     Sacramento Valley.
       (2) Acquired land.--The term ``acquired land'' means that 
     land purchased on or after the date of enactment of this Act 
     to restore land taken from the Enterprise Rancheria for the 
     State of California, pursuant to Public Law 88-453.
       (3) Enterprise rancheria.--The term ``Enterprise 
     Rancheria'' means the Rancheria Tribe that was federally 
     recognized on April 20, 1915, with a governing constitution, 
     approved April 12, 1995.
       (4) Enterprise rancheria no. 2 parcel.--The term 
     ``Enterprise Rancheria No. 2 parcel'' means the original 
     40.64 acre land base parcel belonging to the Maidu Indians 
     that was established and purchased by the United States and 
     placed in trust status for the homeless Maidu people in the 
     area of the parcel.
       (5) Feather river drainage area.--The term ``Feather River 
     drainage area'' means the area near and around the confluence 
     of the south, middle, north, and west branches of the Feather 
     River and drainage area below the confluence.
       (6) Rancheria act.--The term ``Rancheria Act'' means Public 
     Law 85-671 (commonly known as the ``California Rancheria 
     Act''), which terminated 38 California Rancherias.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Trust status.--The term ``trust status'' means the 
     status of land, the title of which is held by the United 
     States on behalf and for the beneficial use of recognized 
     Indian tribes in accordance with part 151 of title 25, Code 
     of Federal Regulations (or a successor regulation).

     SEC. 4. PLACEMENT OF ACQUIRED LAND IN TRUST STATUS.

       The Secretary may place into trust status not to exceed 41 
     acres of land of the Enterprise Rancheria, if the land is 
     approved for trust status.

     SEC. 5. REPLACEMENT LAND.

       (a) Purchase.--To restore the Enterprise Rancheria No. 2 
     parcel, the Enterprise Rancheria may purchase not to exceed 
     41 acres of replacement land within the 40-mile radius of 
     Enterprise Rancheria No. 2 parcel and within the aboriginal 
     boundaries of the Estom Yumeka Maidu.
       (b) Trust Status.--The Secretary may place the replacement 
     land into trust status, the title to which shall be held in 
     trust by the United States for the benefit of Enterprise 
     Rancheria, if all Federal requirements of placing the land 
     into trust status are satisfied.
       (c) Treatment of Replacement Land.--The acquisition of land 
     under subsection (a) shall be treated as the restoration of 
     land for an Indian tribe that is recognized by the Federal 
     Government.

     SEC. 6. EFFECT ON TRUST STATUS.

       This Act does not limit the authority of the Secretary to 
     approve or deny any land application for trust status.

     SEC. 7. FULL SATISFACTION OF CLAIMS.

       On the placement of the land described in section 5 into 
     trust status, the Enterprise Rancheria shall be considered to 
     have relinquished all equitable compensation claims the 
     Enterprise Rancheria may have against the United States and 
     the State of California arising from the sale of Enterprise 
     Rancheria No. 2 parcel.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Reed):
  S. 2937. A bill to amend the Public Health Service Act to establish a 
grant program to provide supportive services in permanent supportive 
housing for chronically homeless individuals, and for other purposes; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. DeWINE. Mr. President, today I rise with my colleague, Senator 
Jack Reed, to introduce the Services for Ending Long-Term Homelessness 
Act. I would like to thank Senator Reed for his support in introducing 
this bill. I appreciate his dedication and commitment to this issue.
  The chronically homeless are about 10 percent of the entire homeless 
population, but consume a majority of the services. There are 
approximately 200,000 to 250,000 people who experience chronic 
homelessness. Those numbers include the heads of families, as well.
  Tragically, for these individuals, the periods of homelessness are 
measured in years--not weeks and months. They tend to have disabling 
health and behavioral health problems: 40 percent have substance abuse 
disorders, 25 percent have a physical disability, and 20 percent have 
serious mental illness. These factors often contribute to a person 
becoming homeless, in the first place, and are certainly an impediment 
to overcoming it.
  The President has set a goal of ending chronic homelessness in 10 
years. The President's New Freedom Commission on Mental Health, chaired 
by the Ohio Department of Mental Health Director, Mike Hogan, 
recommended that a comprehensive program be created to facilitate 
access to permanent supportive housing for individuals and families who 
are chronically homeless. This recommendation is so important because 
affordable housing, alone, is not enough for this hard to reach group. 
And, temporary shelter-housing does not provide the stability and 
services needed to provide long-term positive outcomes. Only supportive 
housing, where the chronically homeless can receive shelter and 
services, such as mental health and substance abuse treatment, has been 
effective in decreasing their chances of returning to the streets and 
increasing their chances for leading productive lives.
  Not only is it right to help this group of hard to reach individuals, 
but it is also fiscally responsible. This group is one of the most 
expensive groups to serve. As I mentioned previously, they represent 10 
percent of the overall homeless population, however they consume a 
majority of the services for the homeless. They consume the most 
emergency housing and health care services, which are also the most 
costly to provide. By encouraging supportive housing, we are providing 
the services necessary for these individuals and families to really get 
back on their feet. We can either continue to provide expensive 
emergency services to these needy people or we can give them the right 
kind of help--the type of help they need for their long-term well-being 
and long-term well-being of our communities.
  Unfortunately, current programs for funding services in permanent 
supportive housing, other than those administered by the Department of 
Housing and Urban Development (HUD), were not designed to be 
coordinated with housing programs. These programs were also not 
designed to meet the challenging needs of this specific subgroup of the 
homeless. That is why the bill we are introducing today would provide 
the authorization to fund services to the chronically homeless in 
supportive housing by providing grants which can be used with existing 
programs through HUD and State and local communities.
  This bill also would encourage those who provide services to the 
chronically homeless, such as SAMHSA within the Department of Health 
and Human Services, to work with and coordinate their efforts with 
those who provide the physical housing, such as HUD. Under the current 
administration, these two departments have started to truly coordinate 
their efforts and this bill would encourage and support that continued 
collaboration.
  This is a good bill, and it could make a real difference in the lives 
of so many individuals in need. I ask my colleagues to join us in 
support.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2937

       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 ``Services for Ending Long-
     Term Homelessness Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Nationally, there are approximately 200,000 to 250,000 
     people who experience chronic homelessness, including some 
     families with children. Chronically homeless people often 
     live in shelters or on the streets for years at a time, 
     experience repeated episodes of homelessness without 
     achieving housing stability, or cycle between homelessness, 
     jails, mental health facilities, and hospitals.
       (2) The President's New Freedom Commission on Mental Health 
     recommended the development and implementation of a 
     comprehensive plan designed to facilitate access to 150,000 
     units of permanent supportive housing for consumers and 
     families who are chronically homeless. The Commission found 
     that affordable housing alone is insufficient for many people 
     with severe mental illness, and that flexible, mobile, 
     individualized support services are also necessary to support 
     and sustain consumers in their housing.

[[Page 21444]]

       (3) Congress and the President have set a goal of ending 
     chronic homelessness in 10 years.
       (4) Permanent supportive housing is a proven and cost 
     effective solution to chronic homelessness. A recent study by 
     the University of Pennsylvania found that each unit of 
     supportive housing for homeless people with mental illness in 
     New York City resulted in public savings of $16,281 per year 
     in systems of care such as mental health, human services, 
     health care, veterans' affairs, and corrections.
       (5) Current programs for funding services in permanent 
     supportive housing, other than those administered by the 
     Department of Housing and Urban Development, were not 
     designed to be closely coordinated with housing resources, 
     nor were they designed to meet the multiple needs of people 
     who are chronically homeless.

     SEC. 3. DUTIES OF ADMINISTRATOR OF SUBSTANCE ABUSE AND MENTAL 
                   HEALTH SERVICES ADMINISTRATION.

       Section 501(d) of the Public Health Service Act (42 U.S.C. 
     290aa(d)) is amended--
       (1) in paragraph (17), by striking ``and'' at the end;
       (2) in paragraph (18), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(19) collaborate with Federal departments and programs 
     that are part of the President's Interagency Council on 
     Homelessness, particularly the Department of Housing and 
     Urban Development, the Department of Labor, and the 
     Department of Veterans Affairs, and with other agencies 
     within the Department of Health and Human Services, 
     particularly the Health Resources and Services 
     Administration, the Administration on Children and Families, 
     and the Centers for Medicare and Medicaid Services, to design 
     national strategies for providing services in supportive 
     housing that will assist in ending chronic homelessness and 
     to implement programs that address chronic homelessness.''.

     SEC. 4. GRANTS FOR SERVICES FOR CHRONICALLY HOMELESS 
                   INDIVIDUALS IN SUPPORTIVE HOUSING.

       Title V of the Public Health Service Act (42 U.S.C. 290aa 
     et seq.) is amended by adding at the end the following:

       ``PART J--GRANTS FOR SERVICES TO END CHRONIC HOMELESSNESS

     ``SEC. 596. GRANTS FOR SERVICES TO END CHRONIC HOMELESSNESS.

       ``(a) In General.--
       ``(1) Grants.--The Secretary shall make grants to entities 
     described in paragraph (2) for the purpose of carrying out 
     projects to provide the services described in subsection (c) 
     to chronically homeless individuals in permanent supportive 
     housing.
       ``(2) Eligible entities.--For purposes of paragraph (1), an 
     entity described in this paragraph is--
       ``(A) a State or political subdivision of a State, an 
     Indian tribe or tribal organization, or a public or nonprofit 
     private entity, including a community-based provider of 
     homelessness services, health care, housing, or other 
     services important to individuals experiencing chronic 
     homelessness; or
       ``(B) a consortium composed of entities described in 
     subparagraph (A), which consortium includes a public or 
     nonprofit private entity that serves as the lead applicant 
     and has responsibility for coordinating the activities of the 
     consortium.
       ``(b) Priorities.--In making grants under subsection (a), 
     the Secretary shall give priority to applicants demonstrating 
     that the applicants--
       ``(1) target funds to individuals or families who--
       ``(A) have been homeless for longer periods of time or have 
     experienced more episodes of homelessness than are required 
     to meet the definition of chronic homelessness under this 
     section;
       ``(B) have high rates of utilization of emergency public 
     systems of care; or
       ``(C) have a history of interactions with law enforcement 
     and the criminal justice system;
       ``(2) have greater funding commitments from State or local 
     government agencies responsible for overseeing mental health 
     treatment, substance abuse treatment, medical care, and 
     employment (including commitments to provide Federal funds in 
     accordance with subsection (d)(2)(B)(ii)); and
       ``(3) will provide for an increase in the number of units 
     of permanent supportive housing that would serve chronically 
     homeless individuals in the community as a result of an award 
     of a grant under subsection (a).
       ``(c) Services.--The services referred to in subsection (a) 
     are the following:
       ``(1) Services provided by the grantee or by qualified 
     subcontractors that promote recovery and self-sufficiency and 
     address barriers to housing stability, including but not 
     limited to the following:
       ``(A) Mental health services, including treatment and 
     recovery support services.
       ``(B) Substance abuse treatment and recovery support 
     services, including counseling, treatment planning, recovery 
     coaching, and relapse prevention.
       ``(C) Integrated, coordinated treatment and recovery 
     support services for co-occurring disorders.
       ``(D) Health education, including referrals for medical and 
     dental care.
       ``(E) Services designed to help individuals make progress 
     toward self-sufficiency and recovery, including benefits 
     advocacy, money management, life-skills training, self-help 
     programs, and engagement and motivational interventions.
       ``(F) Parental skills and family support.
       ``(G) Case management.
       ``(H) Other supportive services that promote an end to 
     chronic homelessness.
       ``(2) Services, as described in paragraph (1), that are 
     delivered to individuals and families who are chronically 
     homeless and who are scheduled to become residents of 
     permanent supportive housing within 90 days pending the 
     location or development of an appropriate unit of housing.
       ``(3) For individuals and families who are otherwise 
     eligible, and who have voluntarily chosen to seek other 
     housing opportunities after a period of tenancy in supportive 
     housing, services, as described in paragraph (1), that are 
     delivered, for a period of 90 days after exiting permanent 
     supportive housing or until the individuals have transitioned 
     to comprehensive services adequate to meet their current 
     needs, provided that the purpose of the services is to 
     support the individuals in their choice to transition into 
     housing that is responsive to their individual needs and 
     preferences.
       ``(d) Matching Funds.--
       ``(1) In general.--A condition for the receipt of a grant 
     under subsection (a) is that, with respect to the cost of the 
     project to be carried out by an applicant pursuant to such 
     subsection, the applicant agree as follows:
       ``(A) In the case of the initial grant pursuant to 
     subsection (i)(1)(A), the applicant will, in accordance with 
     paragraphs (2) and (3), make available contributions toward 
     such costs in an amount that is not less than $1 for each $3 
     of Federal funds provided in the grant.
       ``(B) In the case of a renewal grant pursuant to subsection 
     (i)(1)(B), the applicant will, in accordance with paragraphs 
     (2) and (3), make available contributions toward such costs 
     in an amount that is not less than $1 for each $1 of Federal 
     funds provided in the grant.
       ``(2) Source of contribution.--For purposes of paragraph 
     (1), contributions made by an applicant are in accordance 
     with this paragraph if made as follows:
       ``(A) The contribution is made from funds of the applicant 
     or from donations from public or private entities.
       ``(B) Of the contribution--
       ``(i) not less than 80 percent is from non-Federal funds; 
     and
       ``(ii) not more than 20 percent is from Federal funds 
     provided under programs that--

       ``(I) are not expressly directed at services for homeless 
     individuals, but whose purposes are broad enough to include 
     the provision of a service or services described in 
     subsection (c) as authorized expenditures under such program; 
     and
       ``(II) do not prohibit Federal funds under the program from 
     being used to provide a contribution that is required as a 
     condition for obtaining Federal funds.

       ``(3) Determination of amount contributed.--Contributions 
     required in paragraph (1) may be in cash or in kind, fairly 
     evaluated, including plant, equipment, or services. Amounts 
     provided by the Federal Government, or services assisted or 
     subsidized to any significant extent by the Federal 
     Government, may not be included in determining the amount of 
     non-Federal contributions required in paragraph (2)(B)(i).
       ``(e) Administrative Expenses.--A condition for the receipt 
     of a grant under subsection (a) is that the applicant 
     involved agree that not more than 6 percent of the grant will 
     be expended for administrative expenses with respect to the 
     grant.
       ``(f) Certain Uses of Funds.--Notwithstanding other 
     provisions of this section, a grantee under subsection (a) 
     may expend not more than 20 percent of the grant to provide 
     the services described in subsection (c) to homeless 
     individuals who are not chronically homeless.
       ``(g) Application for Grant.--A grant may be made under 
     subsection (a) only if an application for the grant is 
     submitted to the Secretary and the application is in such 
     form, is made in such manner, and contains such agreements, 
     assurances, and information as the Secretary determines to be 
     necessary to carry out this section.
       ``(h) Certain Requirements.--A condition for the receipt of 
     a grant under subsection (a) is that the applicant involved 
     demonstrate the following:
       ``(1) The applicant and all direct providers of services 
     have the experience, infrastructure, and expertise needed to 
     ensure the quality and effectiveness of services, which may 
     be demonstrated by any of the following:
       ``(A) Compliance with all local, city, county, or State 
     requirements for licensing, accreditation, or certification 
     (if any) which are applicable to the proposed project.
       ``(B) A minimum of two years experience providing 
     comparable services that do not require licensing, 
     accreditation, or certification.
       ``(C) Certification as a Medicaid service provider, 
     including health care for the homeless programs and community 
     health centers.

[[Page 21445]]

       ``(D) An executed agreement with a relevant State or local 
     government agency that will provide oversight over the mental 
     health, substance abuse, or other services that will be 
     delivered by the project.
       ``(2) There is a mechanism for determining whether 
     residents are chronically homeless. Such a mechanism may rely 
     on local data systems or records of shelter admission. If 
     there are no sources of data regarding the duration or number 
     of homeless episodes, or if such data are unreliable for the 
     purposes of this subsection, an applicant must demonstrate 
     that the project will implement appropriate procedures, 
     taking into consideration the capacity of local homeless 
     service providers to document episodes of homelessness and 
     the challenges of engaging persons who have been chronically 
     homeless, to verify that an individual or family meets the 
     definition for being chronically homeless under this section.
       ``(3) The applicant participates in a local, regional, or 
     statewide homeless management information system.
       ``(i) Duration of Initial and Renewal Grants; Additional 
     Provisions Regarding Renewal Grants.--
       ``(1) In general.--Subject to paragraphs (2) and (3), the 
     period during which payments are made to a grantee under 
     subsection (a) shall be in accordance with the following:
       ``(A) In the case of the initial grant, the period of 
     payments shall be not less than three years and not more than 
     five years.
       ``(B) In the case of a subsequent grant (referred to in 
     this subsection as a `renewal grant'), the period of payments 
     shall be not more than five years.
       ``(2) Annual approval; availability of appropriations; 
     number of grants.--The provision of payments under an initial 
     or renewal grant is subject to annual approval by the 
     Secretary of the payments and to the availability of 
     appropriations for the fiscal year involved to make the 
     payments. This subsection may not be construed as 
     establishing a limitation on the number of grants under 
     subsection (a) that may be made to an entity.
       ``(3) Additional provisions regarding renewal grants.--
       ``(A) Priority in making grants.--In making grants under 
     subsection (a), the Secretary shall give priority to renewal 
     grants.
       ``(B) Compliance with minimum standards.--A renewal grant 
     may be made by the Secretary only if the Secretary determines 
     that the applicant involved has, in the project carried out 
     with the grant, maintained compliance with minimum standards 
     for quality and successful outcomes for housing retention, as 
     determined by the Secretary.
       ``(C) Amount.--The maximum amount of a renewal grant under 
     this subsection shall not exceed an amount equal to--
       ``(i) 75 percent of the amount of Federal funds provided in 
     the final year of the initial grant period; or
       ``(ii) 50 percent of the total costs of sustaining the 
     program funded under the grant at the level provided for in 
     the year preceding the year for which the renewal grant is 
     being awarded;
     as determined by the Secretary.
       ``(j) Strategic Performance Outcomes and Reports.--
       ``(1) In general.--The Secretary shall, as a condition of 
     the receipt of grants under subsection (a), require grantees 
     to report data regarding the performance outcomes of the 
     projects carried out pursuant to such subsection. Consistent 
     with the requirement of the preceding sentence, each 
     applicant shall measure and report specific performance 
     outcomes related to the long-term goals of increasing 
     stability within the community for individuals who have been 
     chronically homeless, and decreasing recurrence of periods of 
     homelessness.
       ``(2) Performance outcomes.--The performance outcomes 
     identified by a grantee under paragraph (1) shall include, 
     with respect to individuals who have been chronically 
     homeless, improvements in--
       ``(A) housing stability;
       ``(B) employment and education;
       ``(C) problems related to substance abuse;
       ``(D) participation in mental health services; and
       ``(E) other areas as the Secretary determines appropriate.
       ``(3) Coordination and consistency with other homeless 
     assistance programs.--
       ``(A) Procedures.--In establishing strategic performance 
     outcomes and reporting requirements under paragraph (1), the 
     Secretary shall develop and implement procedures that 
     minimize the costs and burdens to grantees and program 
     participants, and that are practical, streamlined, and 
     designed for consistency with the requirements of the 
     homeless assistance programs administered by the Secretary of 
     Housing and Urban Development.
       ``(B) Applicant coordination.--Applicants under this 
     section shall coordinate with community stakeholders, 
     including participants in the local homeless management 
     information system, concerning the development of systems to 
     measure performance outcomes and with the Secretary for 
     assistance with data collection and measurements activities.
       ``(4) Report.--A grantee shall submit an annual report to 
     the Secretary that--
       ``(A) identifies the grantee's progress towards achieving 
     its strategic performance outcomes; and
       ``(B) describes other activities conducted by the grantee 
     to increase the participation, housing stability, and other 
     improvements in outcomes for individuals who have been 
     chronically homeless.
       ``(k) Training and Technical Assistance.--The Secretary, 
     directly or through awards of grants or contracts to public 
     or nonprofit private entities, shall provide training and 
     technical assistance regarding the planning, development, and 
     provision of services in projects under subsection (a).
       ``(l) Biennial Reports to Congress.--Not later than two 
     years after the date of the enactment of the Services for 
     Ending Long-Term Homelessness Act, and biennially thereafter, 
     the Secretary shall submit to the Congress a report on 
     projects under subsection (a) that includes a summary of 
     information received by the Secretary under subsection (j), 
     and that describes the impact of the program under subsection 
     (a) as part of a comprehensive strategy for ending long term 
     homelessness and improving outcomes for individuals with 
     mental illness and substance abuse problems.
       ``(m) Definitions.--For purposes of this section:
       ``(1) The term `chronically homeless' means an individual 
     or family who--
       ``(A) is currently homeless;
       ``(B) has been homeless continuously for at least one year 
     or has been homeless on at least four separate occasions in 
     the last three years; and
       ``(C) has an adult head of household with a disabling 
     condition, defined as a diagnosable substance use disorder, 
     serious mental illness, developmental disability, or chronic 
     physical illness or disability, including the co-occurrence 
     of two or more of these conditions.
       ``(2) The term `disabling condition' means a condition that 
     limits an individual's ability to work or perform one or more 
     activities of daily living.
       ``(3) The term `homeless' means sleeping in a place not 
     meant for human habitation or in an emergency homeless 
     shelter.
       ``(4)(A) The term `permanent supportive housing' means 
     permanent, affordable housing with flexible support services 
     that are available and designed to help the tenants stay 
     housed and build the necessary skills to live as 
     independently as possible. Such term does not include housing 
     that is time-limited. Supportive housing offers residents 
     assistance in reaching their full potential, which may 
     include opportunities to secure other housing that meets 
     their needs and preferences, based on individual choice 
     instead of the requirements of time-limited transitional 
     programs. Under this section, permanent affordable housing 
     includes but is not limited to permanent housing funded or 
     assisted through title IV of the McKinney-Vento Homeless 
     Assistance Act and section (8) of the United States Housing 
     Act of 1937.
       ``(B) For purposes of subparagraph (A), the term 
     `affordable' means within the financial means of individuals 
     who are extremely low income, as defined by the Secretary of 
     Housing and Urban Development.
       ``(n) Funding.--
       ``(1) Authorization of appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2005 through 2009.
       ``(2) Allocation for training and technical assistance.--Of 
     the amount appropriated under paragraph (1) for a fiscal 
     year, the Secretary may reserve not more than 3 percent for 
     carrying out subsection (k).''.

  Mr. REED. Mr. President, I am proud to join my colleague from Ohio, 
the Chairman of the Substance Abuse and Mental Health Subcommittee of 
the Senate HELP Committee, to introduce a bill that we believe will 
bring us closer to helping people who experience chronic homelessness 
get off the streets, out of shelters and into permanent housing. The 
Services for Ending Long-Term Homelessness Act (SELHA) will help local 
communities provide health care, mental health and substance abuse 
services in conjunction with safe, decent and affordable housing. This 
bill is another essential component in the continuum of housing and 
supportive service programs geared towards people who have become 
homeless in our society.
  Nationwide, as many as 3.5 million people experience homelessness 
every year. Between 200,000 and 250,000 of them--including at least 
12,000 children--experience chronic homelessness. They live on the 
streets and in emergency shelters for years on end or cycle between 
homelessness, jails, emergency rooms, and other institutions. Many also 
confront mental illness, substance addiction or other serious chronic 
health conditions. Moreover, because they don't get appropriate and

[[Page 21446]]

regular care, these people exact a substantial toll on our public 
health systems.
  The legislation the Senior Senator from Ohio and I are proposing 
today would authorize funding for grants to state and local entities to 
offer services to individuals and families in supportive housing to 
help bring them out of the downward spiral of homelessness and onto the 
road to recovery and self-sufficiency. Permanent supportive housing 
combines safe, decent and affordable housing with needed services such 
as mental health, substance abuse, employment, health care, and other 
services.
  Research indicates that supportive housing represents a cost-
effective investment toward the goal of ending long-term homelessness. 
In one California supportive housing program, residents experienced a 
57 percent decline in emergency room visits, a 58 percent decline in 
the number of inpatient hospital days, and a near elimination of their 
need for residential mental-health facilities. A study in New York City 
found that each unit of supportive housing saved $16,282 per person per 
year in public expenditures for emergency care, court and jail costs, 
and other public services. After deducting the public benefits, the 
average supportive housing unit in New York City cost only $995 per 
year. In other words, it costs little more to house and offer 
supportive services to people than it does to leave them homeless.
  These remarkable findings have led the bipartisan Millennial Housing 
Commission, the President's New Freedom Mental Health Commission, the 
U.S. Conference of Mayors and the National League of Cities to endorse 
the goal of creating 150,000 units of permanent supportive housing.
  As the Ranking Member of the Senate Subcommittee on Housing of the 
Senate Banking Committee, I am deeply interested in tackling the 
challenge of homelessness on several fronts. I have been working on a 
bill to reauthorize the McKinney-Vento Homeless Assistance Act. My 
legislation would realign the incentives behind HUD's homelessness 
assistance programs, while more funding would flow to communities that 
actually demonstrate a commitment to accomplishing the goals of 
preventing and ending homelessness. It would also simplify and 
consolidate the three competitive HUD homeless assistance programs into 
one program and provide new flexibility in using McKinney-Vento funds.
  The Services for Ending Long-Term Homelessness Act perfectly 
compliments these efforts by making sure that communities offering 
permanent housing are also able to provide health, education and other 
supportive services that are so critical to the ultimate success of 
these efforts.
  I believe we have the ingenuity and dedication to ensure that 
everyone has a safe decent and affordable place to call home. We need 
to support innovative solutions, and this bill does just that. It gives 
communities some of the resources they need to develop more supportive 
housing and move towards ending chronic homelessness, and I am proud to 
join my colleague from Ohio in spearheading this initiative.
                                 ______
                                 
      By Mr. DASCHLE (for himself, Mr. Campbell, Mr. Inouye, Mr. 
        Johnson, Mr. Bingaman, and Ms. Landrieu):
  S. 2938. A bill to grant a Federal charter to the National American 
Indian Veterans, Incorporated; read the first time.


   federal charter for national american indian veterans association

  Mr. DASCHLE. Mr. President, every American knows this photograph. It 
is one of the great iconic images of American courage and 
determination: the Marines raising the flag at Iwo Jima. What many 
Americans probably do not know is that one of the six Marines in this 
photo was a Native American. His name was Ira Hayes. He was a full-
blooded Pima Indian, raised on a small farm on the Gila River Indian 
Community in Arizona.
  Raising the flag with Ira Hayes that day on Iwo Jima were: a coal 
miner's son from Pennsylvania who came to America as an infant from 
Czechoslovakia; a farm boy from the Rio Grande Valley of Texas; a mill 
worker's son from New Hampshire; a former altar boy from Wisconsin, and 
a poor kid from eastern Kentucky.
  One writer has called this photo `` a triumphant metaphor for the 
very soul of the (Marine) Corps.'' It is also something else. It is a 
reflection of every war our Nation has ever fought. In every major 
military conflict in our Nation's history, Indians have fought side-by-
side with non-Indians. Native Americans served with honor and 
distinction in the Revolutionary War and the War of 1812. They served 
on both sides in the Civil War. Stand Watie, a Cherokee, was the last 
Confederate brigadier general to surrender to the Union troops. And Eli 
Parker, a Seneca from New York, was at Appomattox, serving as an aide 
to General Ulysses S. Grant when Robert E. Lee surrendered.
  Native American soldiers rode with Teddy Roosevelt's Rough Riders in 
the charge on San Juan Hill in the Spanish-American War. Twelve-
thousand Indians served in World War I. Even though Native Americans 
were denied U.S. citizenship at the time, many were so eager to serve 
that they went to Canada to enlist before the U.S. even entered the 
war. Their tremendous demonstration of patriotism finally moved 
Congress to pass the Indian Citizenship Act in 1924.
  In World War II, more than one-third of all able-bodied Indian men 
between the ages of 18 and 50 served. The most famous were the ``Code 
Talkers'' from the Navajo Nation and other tribes--including the 
Lakota, Dakota and Nakota tribes of the Great Sioux Nation. During the 
Korean War, two Native American soldiers were awarded posthumous 
Congressional Medals of Honor. Another Korean War veteran, a Northern 
Cheyenne from Colorado, served with distinction in the Air Force and 
later in the United States Senate. He is our friend and colleague, the 
chairman of the Senate Indian Affairs Committee, Senator Ben Nighthorse 
Campbell.
  In Vietnam, nearly 42,000 Native Americans served--90 percent of them 
volunteers. Native Americans served with honor in Grenada, Panama, the 
Persian Gulf war, Somalia, Bosnia and Kosovo. And they are serving our 
Nation today in Afghanistan and Iraq.
  Given the tragic history between Indian tribes and the U.S. military, 
some might regard it as remarkable that Native Americans choose to 
serve in the military at all. Yet, not only do Native Americans serve, 
they have the highest rate of military service of any ethnic group in 
America. Today, one in four Native American men is a military veteran, 
as are nearly half of all tribal leaders.
  Incredibly, despite this extraordinary history of service and 
sacrifice for our Nation, there has never been a national American 
Indians veterans organization. Until now.
  Last week, a new organization, the National American Indian Veterans 
Association, held its first annual meeting in Arizona. At that meeting, 
members voted unanimously to approve the organization's charter. Today, 
I am introducing a bipartisan proposal to grant the National American 
Indian Veterans Association a Federal charter. I am proud to sponsor 
this proposal, along with four great champions of Indian people and 
tribes: my fellow South Dakotan, Senator Johnson; Senator Bingaman; 
Senator Campbell, the distinguished chairman of the Indian Affairs 
Committee; and the committee's ranking member, Senator Inouye, a noble 
warrior himself and a Medal of Honor recipient.
  The National American Indian Veterans Association is long overdue, 
and it is desperately needed. Native Americans are the most likely of 
all Americans to volunteer for military service. But they are the least 
likely of all veterans to apply for the benefits they have earned. When 
they do try to claim those benefits, too often, the First Americans 
find themselves last in line.
  Too many Native American veterans go without urgently needed medical 
care because they can't get appointments or they can't overcome 
bureaucratic hurdles at the VA or the nearest

[[Page 21447]]

clinic is too far away. Too many Native American veterans are living in 
crowded apartments and crumbling houses and trailers, partly because 
homeownership assistance programs that work for most veterans don't 
take into account the specific needs of many Indian veterans. Many 
Native American veterans don't claim the education benefits they have 
earned. Too many Native American veterans don't get the retirement 
benefits they deserve. And when they die, too many of their families 
don't get the survivors' benefits they should.
  A Federal charter does not grant the National American Indian 
Veterans Association any special legal status or favors. It will simply 
enable Native American veterans from all tribes to speak with one voice 
to Congress and to the Nation.
  The National Commander of the National American Indian Veterans 
Association is a man I am proud to know. Don Loudner is from Mitchell, 
SD. He is a member of the Crow Creek Sioux Tribe and a Korean War 
veteran with 35 years in the Army Reserves. He is also a member of the 
VA's Advisory Committee on Minority Veterans, a former Commissioner of 
Indian Affairs for the State of South Dakota, a former superintendent 
of the Crow Creek Sioux Reservation, and one of the most tireless, 
articulate advocates for Native American veterans I have ever known.
  Congress has chartered many veterans organizations representing 
specific groups: the American War Mothers, the Blinded Veterans 
Association, Catholic War Veterans, Italian American War Veterans of 
the USA, Jewish War Veterans of the USA, the National Association for 
Black Veterans, Polish Legion of American Veterans.
  I believe the guidance and collected wisdom of the National American 
Indian Veterans Association will enable America to better honor its 
commitments to Native American veterans and their families. In doing 
so, it will strengthen Native Americans' long and exceptional tradition 
of military service to our Nation. And that will make America even 
safer and stronger.
  Five Native American warriors have already given their lives in Iraq. 
They include three members of the Navajo Nation: Army Private First 
Class Lori Piestewa, a young Hopi mother and the first Native American 
woman soldier ever killed in combat; and a young Army Private First 
Class from the Cheyenne River Sioux Reservation in South Dakota. 
Sheldon Hawk Eagle was a member of the Army's 101st Airborne Division, 
the famed ``Screaming Eagles,'' the same unit that parachuted into 
Normandy on D-Day. He was also a descendant of the legendary Lakota 
warrior leader, Crazy Horse.
  There are many reasons that these young warriors and so many other 
Native Americans have risked--and given--their lives for this Nation. 
Clarence Wolf Guts may have said it best. Mr. Wolf Guts is from the 
Oglala Sioux Tribe and one of the last two surviving Lakota Code 
Talkers from World War II. Two weeks ago, he testified before the 
Senate Committee on Indian Affairs about a bill I am sponsoring to 
honor all Native American Code Talkers, from all tribes. In Clarence 
Wolf Guts' words, ``Indian people love America, and we will do whatever 
it takes to protect our freedom from all aggressors.''
  By formally recognizing the National American Indian Veterans 
Association--America's first and only Native American veterans 
organization--America will be better able to honor the extraordinary 
patriotism of these heroes and provide them with the respect and 
benefits they have earned. I urge my colleagues to join us. Let's pass 
this bill this year.
  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. 2938

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

     SECTION 1. RECOGNITION AS CORPORATION AND GRANT OF FEDERAL 
                   CHARTER FOR NATIONAL AMERICAN INDIAN VETERANS, 
                   INCORPORATED.

       (a) In General.--Part B of subtitle II of title 36, United 
     States Code, is amended by inserting after chapter 1503 the 
     following new chapter:

    ``CHAPTER 1504--NATIONAL AMERICAN INDIAN VETERANS, INCORPORATED

``Sec.
``150401. Organization.
``150402. Purposes.
``150403. Membership.
``150404. Board of directors.
``150405. Officers.
``150406. Nondiscrimination.
``150407. Powers.
``150408. Exclusive right to name, seals, emblems, and badges.
``150409. Restrictions.
``150410. Duty to maintain tax-exempt status.
``150411. Records and inspection.
``150412. Service of process.
``150413. Liability for acts of officers and agents.
``150414. Failure to comply with requirements.
``150415. Annual report.

     ``Sec. 150401. Organization

       ``The National American Indian Veterans, Incorporated, a 
     nonprofit corporation organized in the United States (in this 
     chapter referred to as the `corporation'), is a federally 
     chartered corporation.

     ``Sec. 150402. Purposes

       ``The purposes of the corporation are those stated in its 
     articles of incorporation, constitution, and bylaws, and 
     include a commitment--
       ``(1) to uphold and defend the Constitution of the United 
     States while respecting the sovereignty of the American 
     Indian, Alaska Native, and Native Hawaiian Nations;
       ``(2) to unite under one body all American Indian, Alaska 
     Native, and Native Hawaiian veterans who served in the Armed 
     Forces of United States;
       ``(3) to be an advocate on behalf of all American Indian, 
     Alaska Native, and Native Hawaiian veterans without regard to 
     whether they served during times of peace, conflict, or war;
       ``(4) to promote social welfare (including educational, 
     economic, social, physical, cultural values, and traditional 
     healing) in the United States by encouraging the growth and 
     development, readjustment, self-respect, self-confidence, 
     contributions, and self-identity of American Indian veterans;
       ``(5) to serve as an advocate for the needs of American 
     Indian, Alaska Native, and Native Hawaiian veterans, their 
     families, or survivors in their dealings with all Federal and 
     State government agencies;
       ``(6) to promote, support, and utilize research, on a 
     nonpartisan basis, pertaining to the relationship between the 
     American Indian, Alaska Native, and Native Hawaiian veterans 
     and American society; and
       ``(7) to provide technical assistance to the 12 regional 
     areas without veterans committees or organizations and 
     programs by--
       ``(A) providing outreach service to those Tribes in need; 
     and
       ``(B) training and educating Tribal Veterans Service 
     Officers for those Tribes in need.

     ``Sec. 150403. Membership

       ``Subject to section 150406 of this title, eligibility for 
     membership in the corporation, and the rights and privileges 
     of members, shall be as provided in the constitution and by-
     laws of the corporation.

     ``Sec. 150404. Board of directors

       ``Subject to section 150406 of this title, the board of 
     directors of the corporation, and the responsibilities of the 
     board, shall be as provided in the constitution and bylaws of 
     the corporation and in conformity with the laws under which 
     the corporation is incorporated.

     ``Sec. 150405. Officers

       ``Subject to section 150406 of this title, the officers of 
     the corporation, and the election of such officers, shall be 
     as provided in the constitution and bylaws of the corporation 
     and in conformity with the laws of the jurisdiction under 
     which the corporation is incorporated.

     ``Sec. 150406. Nondiscrimination

       ``In establishing the conditions of membership in the 
     corporation, and in determining the requirements for serving 
     on the board of directors or as an officer of the 
     corporation, the corporation may not discriminate on the 
     basis of race, color, religion, sex, national origin, 
     handicap, or age.

     ``Sec. 150407. Powers

       ``The corporation shall have only those powers granted the 
     corporation through its articles of incorporation and its 
     constitution and bylaws which shall conform to the laws of 
     the jurisdiction under which the corporation is incorporated.

     ``Sec. 150408. Exclusive right to name, seals, emblems, and 
       badges

       ``(a) In General.--The corporation shall have the sole and 
     exclusive right to use the names `National American Indian 
     Veterans, Incorporated' and `National American Indian 
     Veterans', and such seals, emblems, and badges as the 
     corporation may lawfully adopt.

[[Page 21448]]

       ``(b) Construction.--Nothing in this section shall be 
     construed to interfere or conflict with established or vested 
     rights.

     ``Sec. 150409. Restrictions

       ``(a) Stock and Dividends.--The corporation shall have no 
     power to issue any shares of stock nor to declare or pay any 
     dividends.
       ``(b) Distribution of Income or Assets.--(1) No part of the 
     income or assets of the corporation shall inure to any person 
     who is a member, officer, or director of the corporation or 
     be distributed to any such person during the life of the 
     charter granted by this chapter.
       ``(2) Nothing in this subsection shall be construed to 
     prevent the payment of reasonable compensation to the 
     officers of the corporation, or reimbursement for actual and 
     necessary expenses, in amounts approved by the board of 
     directors.
       ``(c) Loans.--The corporation shall not make any loan to 
     any officer, director, member, or employee of the 
     corporation.
       ``(d) No Federal Endorsement.--The corporation shall not 
     claim congressional approval or Federal Government authority 
     by virtue of the charter granted by this chapter for any of 
     its activities.

     ``Sec. 150410. Duty to maintain tax-exempt status

       ``The corporation shall maintain its status as an 
     organization exempt from taxation as provided in the Internal 
     Revenue Code of 1986.

     ``Sec. 150411. Records and inspection

       ``(a) Records.--The corporation shall keep--
       ``(1) correct and complete books and records of accounts;
       ``(2) minutes of any proceeding of the corporation 
     involving any of its members, the board of directors, or any 
     committee having authority under the board of directors; and
       ``(3) at its principal office, a record of the names and 
     addresses of all members having the right to vote.
       ``(b) Inspection.--(1) All books and records of the 
     corporation may be inspected by any member having the right 
     to vote, or by any agent or attorney of such member, for any 
     proper purpose, at any reasonable time.
       ``(2) Nothing in this section shall be construed to 
     contravene the laws of the jurisdiction under which the 
     corporation is incorporated or the laws of those 
     jurisdictions within which the corporation carries on its 
     activities in furtherance of its purposes within the United 
     States and its territories.

     ``Sec. 150412. Service of process

       ``With respect to service of process, the corporation shall 
     comply with the laws of the jurisdiction under which the 
     corporation is incorporated and those jurisdictions within 
     which the corporation carries on its activities in 
     furtherance of its purposes within the United States and its 
     territories.

     ``Sec. 150413. Liability for acts of officers and agents

       ``The corporation shall be liable for the acts of the 
     officers and agents of the corporation when such individuals 
     act within the scope of their authority.

     ``Sec. 150414. Failure to comply with requirements

       ``If the corporation fails to comply with any of the 
     restrictions or provisions of this chapter, including the 
     requirement under section 150410 of this title to maintain 
     its status as an organization exempt from taxation, the 
     charter granted by this chapter shall expire.

     ``Sec. 150415. Annual report

       ``(a) In General.--The corporation shall report annually to 
     Congress concerning the activities of the corporation during 
     the preceding fiscal year.
       ``(b) Submittal Date.--Each annual report under this 
     section shall be submitted at the same time as the report of 
     the audit of the corporation required by section 10101(b) of 
     this title.
       ``(c) Report Not Public Document.--No annual report under 
     this section shall be printed as a public document.''.
       (b) Clerical Amendment.--The table of chapters at the 
     beginning of subtitle II of title 36, United States Code, is 
     amended by insert after the item relating to chapter 1503 the 
     following new item:

``1504. National American Indian Veterans, Incorporated.......150401''.
                                 ______
                                 
      By Mr. LUGAR (for himself, Mrs. Boxer, Mr. Chafee, Mr. Feingold, 
        and Mr. Coleman):
  S. 2939. A bill to amend the Foreign Assistance Act of 1961 to 
provide assistance for orphans and other vulnerable children in 
developing countries, and for other purposes; to the Committee on 
Foreign Relations.
  Mr. LUGAR. Mr. President, I rise to introduce the Assistance for 
Orphans and Other Vulnerable Children in Developing Countries Act of 
2004.
  The unprecedented AIDS orphan crisis in sub-Saharan Africa has 
profound implications for political stability, development, and human 
welfare that extend far beyond the region. Sub-Saharan African nations 
stand to lose generations of educated and trained professionals who can 
contribute meaningfully to their countries' development. Orphaned 
children, many of whom are homeless, are more likely to resort to 
prostitution and other criminal behavior to survive. Most 
frighteningly, these uneducated, poorly socialized, and stigmatized 
young adults are extremely vulnerable to being recruited into criminal 
gangs, rebel groups, or extremist organizations that offer shelter and 
food and act as ``surrogate'' families. It is imperative that the 
international community respond to this crisis that threatens stability 
within individual countries, the region, and around the world.
  An estimated 110 million orphans live in sub-Saharan Africa, Asia, 
Latin America, and the Caribbean. The HIV/AIDS pandemic is rapidly 
expanding the orphan population. Currently an estimated 14 million 
children have been orphaned by AIDS, most of whom live in sub-Saharan 
Africa. This number is projected to soar to more than 25 million by 
2010. The pandemic is orphaning generations of African children and is 
compromising the overall development prospects of their countries.
  Most orphans in the developing world live in extremely disadvantaged 
circumstances. Poor communities in the developing world struggle to 
meet the basic food, clothing, health care, and educational needs of 
orphans. Experts recommend supporting community-based organizations to 
assist these children. Such an approach enables the children to remain 
connected to their communities, traditionals, rituals, and extended 
families.
  My bill seeks to improve assistance to orphans and other vulnerable 
children in developing countries. It would require the United States 
Government to develop a comprehensive strategy for providing such 
assistance and would authorize the President to support community-based 
organizations that provide basic care for orphans and vulnerable 
children.
  Orphans are less likely to be in school, and more likely to be 
working full time. Yet only education can help children acquire the 
knowledge and develop the skills they need to build a better future. 
Studies have shown that school food programs provide an incentive for 
children to stay in school. School meals provide basic nutrition to 
children who otherwise do not have access to reliable food.
  For many children, the primary barrier to an education is the expense 
of school fees, uniforms, supplies, and other costs. My bill aims to 
improve enrollment and access to primary school education by supporting 
programs that reduce the negative impact of school fees and other 
expenses. It also would affirm our commitment to international school 
lunch programs.
  Many children who lose one or both parents often face difficulty in 
asserting their inheritance rights. Even when the inheritance rights of 
women and children are spelled out in law, such rights are difficult to 
claim and are seldom enforced. In many countries it is difficult or 
impossible for a widow--even if she has small children--to claim 
property after the death of her husband. This often leaves the most 
vulnerable children impoverished and homeless. My bill seeks to support 
programs that protect the inheritance rights of orphans and widows with 
children.
  The AIDS orphan crisis in sub-Saharan Africa has implications for 
political stability, development, and human welfare that extend far 
beyond the region, affecting governments and people worldwide. Every 14 
seconds another child is orphaned by AIDS. Turning the tide on this 
crisis will require a coordinated, comprehensive, and swift response. I 
am hopeful that Senators will join me in backing this legislation, and 
I ask 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. 2939

       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 ``Assistance for Orphans and 
     Other Vulnerable Children in Developing Countries Act of 
     2004''.

[[Page 21449]]



     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) More than 110,000,000 orphans live in sub-Saharan 
     Africa, Asia, Latin America, and the Caribbean. These 
     children often are disadvantaged in numerous and devastating 
     ways and most households with orphans cannot meet the basic 
     needs of health care, food, clothing, and educational 
     expenses.
       (2) It is estimated that 121,000,000 children worldwide do 
     not attend school and that the majority of such children are 
     young girls. According to the United Nations Children's Fund 
     (UNICEF), orphans are less likely to be in school and more 
     likely to be working full time.
       (3) School food programs, including take-home rations, in 
     developing countries provide strong incentives for children 
     to remain in school and continue their education. School food 
     programs can reduce short-term hunger, improve cognitive 
     functions, and enhance learning, behavior, and achievement.
       (4) Financial barriers, such as school fees and other costs 
     of education, prevent many orphans and other vulnerable 
     children in developing countries from attending school. 
     Providing children with free primary school education, while 
     simultaneously ensuring that adequate resources exist for 
     teacher training and infrastructure, would help more orphans 
     and other vulnerable children obtain a quality education.
       (5) The trauma that results from the loss of a parent can 
     trigger behavior problems of aggression or emotional 
     withdrawal and negatively affect a child's performance in 
     school and the child's social relations. Children living in 
     families affected by HIV/AIDS or who have been orphaned by 
     AIDS often face stigmatization and discrimination. Providing 
     culturally appropriate psychosocial support to such children 
     can assist them in successfully accepting and adjusting to 
     their circumstances.
       (6) Orphans and other vulnerable children in developing 
     countries routinely are denied their inheritance or encounter 
     difficulties in claiming the land and other property which 
     they have inherited. Even when the inheritance rights of 
     women and children are spelled out in law, such rights are 
     difficult to claim and are seldom enforced. In many countries 
     it is difficult or impossible for a widow, even if she has 
     young children, to claim property after the death of her 
     husband.
       (7) The HIV/AIDS pandemic has had a devastating affect on 
     children and is deepening poverty in entire communities and 
     jeopardizing the health, safety, and survival of all children 
     in affected areas.
       (8) The HIV/AIDS pandemic has increased the number of 
     orphans worldwide and has exacerbated the poor living 
     conditions of the world's poorest and most vulnerable 
     children. AIDS has created an unprecedented orphan crisis, 
     especially in sub-Saharan Africa, where children have been 
     hardest hit. An estimated 14,000,000 orphans have lost 1 or 
     both parents to AIDS. By 2010, it is estimated that over 
     25,000,000 children will have been orphaned by AIDS.
       (9) Approximately 2,500,000 children under the age of 15 
     worldwide have HIV/AIDS. Every day another 2,000 children 
     under the age of 15 are infected with HIV. Without treatment, 
     most children born with HIV can expect to die by age two, but 
     with sustained drug treatment through childhood, the chances 
     of long-term survival and a productive adulthood improve 
     dramatically.
       (10) Few international development programs specifically 
     target the treatment of children with HIV/AIDS in developing 
     countries. Reasons for this include the perceived low 
     priority of pediatric treatment, a lack of pediatric health 
     care professionals, lack of expertise and experience in 
     pediatric drug dosing and monitoring, the perceived 
     complexity of pediatric treatment, and mistaken beliefs 
     regarding the risks and benefits of pediatric treatment.
       (11) Although a number of organizations seek to meet the 
     needs of orphans or other vulnerable children, extended 
     families and local communities continue to be the primary 
     providers of support for such children.
       (12) The HIV/AIDS pandemic is placing huge burdens on 
     communities and is leaving many orphans with little support. 
     Alternatives to traditional orphanages, such as community-
     based resource centers, continue to evolve in response to the 
     massive number of orphans that has resulted from the 
     pandemic.
       (13) The AIDS orphans crisis in sub-Saharan Africa has 
     implications for political stability, human welfare, and 
     development that extend far beyond the region, affecting 
     governments and people worldwide, and this crisis requires an 
     accelerated response from the international community.
       (14) Although section 403(b) of the United States 
     Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 
     2003 (22 U.S.C. 7673(b)) establishes the requirement that not 
     less than 10 percent of amounts appropriated for HIV/AIDS 
     assistance for each of fiscal years 2006 through 2008 shall 
     be expended for assistance for orphans and other vulnerable 
     children affected by HIV/AIDS, there is an urgent need to 
     provide assistance to such children prior to 2006.
       (15) Numerous United States and indigenous private 
     voluntary organizations, including faith-based organizations, 
     provide assistance to orphans and other vulnerable children 
     in developing countries. Many of these organizations have 
     submitted applications for grants to the Administrator of the 
     United States Agency for International Development to provide 
     increased levels of assistance for orphans and other 
     vulnerable children in developing countries.
       (16) Increasing the amount of assistance that is provided 
     by the Administrator of the United States Agency for 
     International Development through United States and 
     indigenous private voluntary organizations, including faith-
     based organizations, will provide greater protection for 
     orphans and other vulnerable children in developing 
     countries.
       (17) It is essential that the United States Government 
     adopt a comprehensive approach for the provision of 
     assistance to orphans and other vulnerable children in 
     developing countries. A comprehensive approach would ensure 
     that important services, such as basic care, psychosocial 
     support, school food programs, increased educational 
     opportunities and employment training and related services, 
     the protection and promotion of inheritance rights for such 
     children, and the treatment of orphans and other vulnerable 
     children with HIV/AIDS, are made more accessible.
       (18) Assistance for orphans and other vulnerable children 
     can best be provided by a comprehensive approach of the 
     United States Government that--
       (A) ensures that Federal agencies and the private sector 
     coordinate efforts to prevent and eliminate duplication of 
     efforts and waste in the provision of such assistance; and
       (B) to the maximum extent possible, focuses on community-
     based programs that allow orphans and other vulnerable 
     children to remain connected to the traditions and rituals of 
     their families and communities.

     SEC. 3. ASSISTANCE FOR ORPHANS AND OTHER VULNERABLE CHILDREN 
                   IN DEVELOPING COUNTRIES.

       Chapter 1 of part I of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2151 et seq.) is amended by adding at the end the 
     following section:

     ``SEC. 135. ASSISTANCE FOR ORPHANS AND OTHER VULNERABLE 
                   CHILDREN.

       ``(a) Findings.--Congress finds the following:
       ``(1) There are more than 110,000,000 orphans living in 
     sub-Saharan Africa, Asia, Latin America, and the Caribbean.
       ``(2) The HIV/AIDS pandemic has created an unprecedented 
     orphan crisis, especially in sub-Saharan Africa, where 
     children have been hardest hit. The pandemic is deepening 
     poverty in entire communities, and is jeopardizing the 
     health, safety, and survival of all children in affected 
     countries. It is estimated that 14,000,000 children have lost 
     one or both parents to AIDS.
       ``(3) The orphans crisis in sub-Saharan Africa has 
     implications for human welfare, development, and political 
     stability that extend far beyond the region, affecting 
     governments and people worldwide.
       ``(4) Extended families and local communities are 
     struggling to meet the basic needs of orphans and vulnerable 
     children by providing food, health care including treatment 
     of children living with HIV/AIDS, education expenses, and 
     clothing.
       ``(5) Providing assistance to such children is an important 
     expression of the humanitarian concern and tradition of the 
     people of the United States.
       ``(b) Definitions.--In this section:
       ``(1) AIDS.--The term `AIDS' has the meaning given the term 
     in section 104A(g)(1) of this Act.
       ``(2) Children.--The term `children' means persons who have 
     not attained the age of 18.
       ``(3) HIV/AIDS.--The term `HIV/AIDS' has the meaning given 
     the term in section 104A(g)(3) of this Act.
       ``(4) Orphan.--The term `orphan' means a child deprived by 
     death of one or both parents.
       ``(5) Psychosocial support.--The term `psychosocial 
     support' includes care that addresses the ongoing 
     psychological and social problems that affect individuals, 
     their partners, families, and caregivers in order to 
     alleviate suffering, strengthen social ties and integration, 
     provide emotional support, and promote coping strategies.
       ``(c) Assistance.--The President is authorized to provide 
     assistance, including providing such assistance through 
     international or nongovernmental organizations, for programs 
     in developing countries to provide basic care and services 
     for orphans and other vulnerable children. Such programs 
     should provide assistance--
       ``(1) to support families and communities to mobilize their 
     own resources through the establishment of community-based 
     organizations to provide basic care for orphans and other 
     vulnerable children;
       ``(2) for school food programs, including the purchase of 
     local or regional foodstuffs where appropriate;
       ``(3) to increase primary school enrollment through the 
     elimination of school fees, where appropriate, or other 
     barriers to education while ensuring that adequate resources 
     exist for teacher training and infrastructure;

[[Page 21450]]

       ``(4) to provide employment training and related services 
     for orphans and other vulnerable children who are of legal 
     working age;
       ``(5) to protect and promote the inheritance rights of 
     orphans, other vulnerable children, and widows;
       ``(6) to provide culturally appropriate psychosocial 
     support to orphans and other vulnerable children; and
       ``(7) to treat orphans and other vulnerable children with 
     HIV/AIDS through the provision of pharmaceuticals, the 
     recruitment and training of individuals to provide pediatric 
     treatment, and the purchase of pediatric-specific 
     technologies.
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to the President to carry out this section such sums as may 
     be necessary for each of the fiscal years 2005 and 2006.
       ``(2) Availability of funds.--Amounts made available under 
     paragraph (1) are authorized to remain available until 
     expended and are in addition to amounts otherwise available 
     for such purposes.
       ``(3) Relationship to other laws.--Amounts made available 
     for assistance pursuant to this subsection, and amounts made 
     available for such assistance pursuant to any other provision 
     of law, may be used to provide such assistance 
     notwithstanding any other provision of law.''.

     SEC. 4. STRATEGY OF THE UNITED STATES.

       (a) Requirement for Strategy.--Not later than 180 days 
     after the date of enactment of this Act, the President shall 
     develop, and submit to the appropriate congressional 
     committees, a strategy for coordinating, implementing, and 
     monitoring assistance programs for orphans and vulnerable 
     children.
       (b) Consultation.--The President should consult with 
     employees of the field missions of the United States Agency 
     for International Development in developing the strategy 
     required by subsection (a) to ensure that such strategy--
       (1) will not impede the efficiency of implementing 
     assistance programs for orphans and vulnerable children; and
       (2) addresses the specific needs of indigenous populations.
       (c) Content.--The strategy required by subsection (a) shall 
     include--
       (1) the identity of each agency or department of the 
     Federal Government that is providing assistance for orphans 
     and vulnerable children in foreign countries;
       (2) a description of the efforts of the head of each such 
     agency or department to coordinate the provision of such 
     assistance with other agencies or departments of the Federal 
     Government or nongovernmental entities;
       (3) a description of a coordinated strategy, including 
     coordination with other bilateral and multilateral donors, to 
     provide the assistance authorized in section 135 of the 
     Foreign Assistance Act of 1961, as added by section 3 of this 
     Act;
       (4) an analysis of additional coordination mechanisms or 
     procedures that could be implemented to carry out the 
     purposes of such section;
       (5) a description of a monitoring system that establishes 
     performance goals for the provision of such assistance and 
     expresses such goals in an objective and quantifiable form, 
     to the extent feasible; and
       (6) a description of performance indicators to be used in 
     measuring or assessing the achievement of the performance 
     goals described in paragraph (5).

     SEC. 5. ANNUAL REPORT.

       Not later than one year after the date on which the 
     President submits the strategy required by section 4(a) to 
     the appropriate congressional committees, and annually 
     thereafter, the President shall submit a report to the 
     appropriate congressional committees on the implementation of 
     this Act.

     SEC. 6. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

       In this Act, the term ``appropriate congressional 
     committees'' means the Committee on Appropriations and the 
     Committee on Foreign Relations of the Senate and the 
     Committee on Appropriations and the Committee on 
     International Relations of the House of Representatives.
                                 ______
                                 
      By Mr. PRYOR (for himself, Mrs. Lincoln, Mr. Akaka, Mr. Baucus, 
        Mr. Bayh, Mr. Bingaman, Mrs. Boxer, Ms. Cantwell, Mrs. Clinton, 
        Mr. Corzine, Mr. Daschle, Mr. Dayton, Mr. Dodd, Mr. Dorgan, Mr. 
        Durbin, Mr. Feingold, Mrs. Feinstein, Mr. Graham of Florida, 
        Mr. Jeffords, Mr. Johnson, Mr. Kennedy, Ms. Landrieu, Mr. 
        Lautenberg, Mr. Leahy, Mr. Levin, Mr. Lieberman, Ms. Mikulski, 
        Mr. Miller, Mrs. Murray, Mr. Nelson of Florida, Mr. Nelson of 
        Nebraska, Mr. Reid, Mr. Rockefeller, Mr. Sarbanes, Mr. Schumer, 
        and Ms. Stabenow):
  S. 2942. A bill to amend the Internal Revenue Code of 1986 to provide 
that combat pay be treated as earned income for purposes of the earned 
income credit; to the Committee on Finance.
  Mr. PRYOR. Mr. President, I know the hour is late, and I will try to 
keep my comments fairly brief. I promise I will not take more than an 
hour or two.
  What I am showing tonight is a picture of some American heroes. 
Oftentimes we look at a person in uniform and say: That's a hero. 
Certainly, the folks injured and killed in combat we see them as 
heroes. But you are really just a hero if you serve, if you put on your 
uniform and do your duty to your country.
  The other heroes in this picture are this soldier's family. We can 
see they are hugging him and supporting him, and that is really part of 
the definition of a hero as well. Certainly, the folks who are not 
pictured here--this man's employer because he is probably in the Guard 
or Reserve, and folks in the community, people in his church or his 
neighborhood--whatever the circumstances may be--they are heroes in 
this picture.
  We thank all of our soldiers who are serving bravely for our country, 
wherever they may be tonight. I want to thank the conferees, who worked 
so hard on the Working Families Tax Relief Act last week, for including 
the provisions of S. 2417, the Tax Relief for Americans in Combat Act 
or, as some people call it, TRAC.
  One thing that TRAC was designed to do was eliminate the combat pay 
penalty. I introduced TRAC back in May of this year. The rationale for 
introducing TRAC was to help our men and women in combat. In fact, in 
my work on the Armed Services Committee, and with the help of Chairman 
Grassley and Ranking Member Baucus, the committee requested a GAO 
report. We became concerned in the Armed Services Committee about the 
tax package that is available to our soldiers, Marines, airmen and 
seamen. So Chairman Grassley and Ranking Member Baucus were gracious 
enough to request a GAO report.
  In essence, what the GAO report found was a glitch in the Tax Code, 
an unintended consequence. Basically, what they found is that if one is 
a soldier and receives combat pay, which means they are in theater and 
they are in harm's way every day, they receive their combat pay and 
they want to claim their earned income tax credit, which many of these 
individuals are entitled to under our Tax Code, they actually can lose 
money on their taxes by receiving their combat pay. That is why I call 
it the ``combat pay penalty,'' because it really does disadvantage some 
people on their taxes.
  I have a chart that illustrates what I am talking about. If someone 
is working in a hardware store 12 months out of the year, let's say 
they were making $16,000 a year annually, under the earned income tax 
system that we have on our books right now, $4,100 may possibly come 
back to him under the EITC. If that same person works in a hardware 
store, say, for 4 months, and he is in the guard or reserve and he gets 
8 months for his military service and he makes the same $16,000, by the 
time he does the math and he fills out his tax form he is only entitled 
to $2,100 under the earned income tax credit.
  What we are doing is, inadvertently we are putting our soldiers at a 
disadvantage. In other words, this soldier in this example has lost on 
his taxes about $2,000. Clearly, this is not the intent of Congress.
  The way I feel about it--and I know a lot of my colleagues on both 
sides of the aisle feel about this--is while our brave soldiers are 
overseas fighting for us, we need to be in Washington fighting for them 
and their families. I think it is just incumbent upon us to recognize 
the principle that we need to take care of those who take care of us. 
There is no one in the world who is doing a better job taking care of 
us than our men and women in combat.
  Under the provisions of a bill that I will file this evening, the 
provisions are very simple. What it will do is allow men and women in 
uniform serving in combat to include combat pay for the purpose of 
calculating their earned income and their child tax credit benefits. If 
that calculation works in their best interest, it gives them control 
over their taxes and allows them

[[Page 21451]]

to make the determination for what is in their best interest on their 
taxes.
  Again, I want to thank the conference, and the Senate, House, and the 
President for signing it, because we did win a short-term victory on 
this. We got this provision on the earned income tax credit for 2 
years. Everything else in the bill was 5 years, but we did get 2 years. 
It is a short-term victory, something I hope we will be able to go back 
and change and make it a long-term solution for these brave Americans.
  I do not want to speak to all the intricacies of the earned income 
tax credit because I have heard Senators in this Chamber say that it is 
basically a Tax Code for a welfare program. I disagree with that. We 
may have an honest disagreement about that. Clearly, our men and women 
in uniform receiving combat pay are working hard. We know this is not a 
welfare program for them. We know they are not going to abuse this or 
they are not going to miscalculate it. We have a high degree of 
confidence that this is going to be good for them and good for all of 
us.
  Anyway, I want to draw the attention of my colleagues to the next 
chart, which is the earned income tax credit. This chart shows how it 
is structured. Depending on a person's situation, if they have no 
child, one child, two or more children, it shows a sort of range of 
possibilities, depending on what one's income is. Obviously, it is like 
a formula where the numbers have to be plugged in. It is different for 
different people.
  As we can see, a soldier who is making, say, about $6,300 ought to 
get about $390 from the earned income tax credit. Whereas a soldier who 
is down on the income scale, making $1,400, should get about $2,600 in 
earned income tax credit. So, again, this will change depending on the 
situation.
  What we are proposing would allow our soldiers, our men and women in 
uniform, to take advantage of an existing provision of the Tax Code and 
maximize it to their full advantage.
  I am not saying that we can get this done this week. We certainly 
understand that we are out of legislative days, but I hope sincerely 
that we can come back in the lame duck session or whenever we reconvene 
and really get serious about helping our men and women in uniform.
  We fixed the earned income tax credit for 2004 and 2005.
  Here is another chart showing some of the numbers and how it would 
work, again, depending on how many months one is in combat. Just 
depending on the various losses that one might have, we can see based 
on this chart and the numbers here, the soldiers who are impacted the 
most are the enlisted men. Officers can be penalized under this, but 
the enlisted men and women are the ones who are probably at the 
greatest danger of losing their tax benefit.
  One reason that Senators have decided to help me on this--we have, I 
believe 36 cosponsors now who have signed up to help out on this--is 
because it is a cheap fix. When we look at the numbers for 2 years, 
2006 and 2007, we are only talking about $15 million. When we talk 
about taxes in this country, we talk about billions or trillions, but 
over 2 years this is only $15 million. Over 10 years it is only $68 
million. That is not a lot of money. That is really peanuts in the 
grand scheme of things when we are talking about our Tax Code and other 
numbers that we talk about, when we talk about fixing our taxes in this 
country. This is real money for these soldiers in uniform.
  I close with another picture of some heroes to remind us what this is 
all about, who we are trying to help. These soldiers, most of them, are 
relatively low-income because one has to be relatively low-income to 
even qualify for the earned income tax credit. They are leaving their 
families behind. Many of them are leaving jobs, homes, all kinds of 
economic security. Like I said, these are the folks who are taking care 
of us, and I think in the Senate and in the Congress we ought to do our 
part to take care of them.
  Mrs. LINCOLN: Mr. President, I rise to join my colleagues Senators 
Pryor and Baucus in introducing legislation to ensure members of the 
military who serve in combat are not treated unfairly under the tax 
code. I believe strongly that we have an obligation in Congress to take 
care of the brave men and women in uniform who risk their lives to take 
care of us.
  As my friend and colleague Senator Pryor mentioned, the provision in 
the Tax Code we are seeking to amend affects the ability of military 
personnel who serve in combat zones to benefit from the Earned Income 
Tax Credit. Due to an unintended consequence in the tax code, those 
affected may loose up to $4,000 in tax relief simply because they have 
volunteered to defend our freedom.
  This is wrong.
  We corrected the problem for 2 years--until 2006--in the Working 
Families Tax Relief Act which Congress recently approved but we didn't 
resolve the matter appropriately in my judgement. I offered an 
amendment during the conference report to bring tax relief for military 
families in line with the other provisions in the bill but that 
amendment was rejected.
  I hope my colleagues will reconsider.
  The men and women in uniform who serve in harm's way and their 
families here at home are the last people we should burden with 
uncertainty in the Tax Code. I think we should fix this problem without 
delay and that is why l am proud to join in this effort.
  I applaud Senator Pryor for his leadership and hard work on this 
issue, and I yield the floor.

                          ____________________