[Congressional Record (Bound Edition), Volume 151 (2005), Part 22]
[Issue]
[Pages 30687-30918]
[From the U.S. Government Publishing Office, www.gpo.gov]




[[Page 30687]]

                  SENATE--Wednesday, December 21, 2005

  The Senate met at 9 a.m. and was called to order by the Honorable Sam 
Brownback, a Senator from the State of Kansas.
                                 ______
                                 

                                 prayer

  The Chaplain, Dr. Barry C. Black, offered the following prayer:
  Let us pray.
  Eternal Spirit, direct our efforts so that our labors may honor You. 
Let our toil bring a harvest that will benefit others. Give us 
opportunities to live with such integrity that our lives will be living 
sermons.
  Bless our lawmakers. Lead them into a knowledge of Your compassion. 
Each day, bring them new aspirations and fresh wisdom.
  When disappointment comes, may they turn to You for direction. Raise 
them step by step above temptation until they are determined to never 
deviate from the right path.
  Keep each of us faithful even in little things so that You can use us 
for Your glory.
  We pray in Your wonderful Name. Amen.

                          ____________________




                          PLEDGE OF ALLEGIANCE

  The Honorable Sam Brownback led the Pledge of Allegiance, as follows:

       I pledge allegiance to the Flag of the United States of 
     America, and to the Republic for which it stands, one nation 
     under God, indivisible, with liberty and justice for all.

                          ____________________




              APPOINTMENT OF ACTING PRESIDENT PRO TEMPORE

  The PRESIDING OFFICER. The clerk will please read a communication to 
the Senate from the President pro tempore (Mr. Stevens).
  The legislative clerk read the following letter:

                                                      U.S. Senate,


                                        President pro tempore,

                                Washington, DC, December 21, 2005.
     To the Senate:
       Under the provisions of rule I, paragraph 3, of the 
     Standing Rules of the Senate, I hereby appoint the Honorable 
     Sam Brownback, a Senator from the State of Kansas, to perform 
     the duties of the Chair.
                                                      Ted Stevens,
                                            President pro tempore.

  Mr. BROWNBACK thereupon assumed the chair as Acting President pro 
tempore.

                          ____________________




                   RECOGNITION OF THE MAJORITY LEADER

  The ACTING PRESIDENT pro tempore. The majority leader is recognized.

                          ____________________




                                SCHEDULE

  Mr. FRIST. Mr. President, in a few moments we will begin the final 10 
minutes of debate before proceeding to the final votes with respect to 
the deficit reduction conference report. Two points of order are 
possible under the agreement and we will vote on the respective motions 
to waive. Senators, therefore, can expect us to begin voting in 15 to 
20 minutes.
  Following those two votes--it may be one vote but one or two votes--
on the motions to waive, we will proceed to a vote on final passage on 
the deficit reduction measure.
  After that vote, we will have 1 hour before the cloture vote on the 
Defense appropriations conference report. Additional votes will occur 
following that vote. I hope we are able to get cloture on the Defense 
bill and wrap up the remaining business during today's session.
  As we mentioned yesterday, it is likely to be a long session. It 
could be short, but it could be a long session over the course of the 
morning and early afternoon with a number of votes.
  We have asked Senators to stay close to the Chamber so that when we 
do have votes, we can complete them in a timely fashion.
  I will yield to the Democratic leader for any comments on the course 
of the day.

                          ____________________




                   RECOGNITION OF THE MINORITY LEADER

  The ACTING PRESIDENT pro tempore. The Democratic leader is 
recognized.

                          ____________________




                       PATIENCE AND UNDERSTANDING

  Mr. REID. Mr. President, I was in my office early this morning, and 
Gary Myrick, who works for me, came in and said, Is there anything you 
need? I said yes, patience.
  I mentioned that to the distinguished Republican leader a few minutes 
ago. I think everyone needs that today. It is going to be a difficult 
day.
  I hope we will all have patience and understanding, recognizing that 
these are tense times--not only because of the legislation we are 
dealing with but also the holidays. We are all anxious to get back to 
our families, but we have work to do. I hope we all have patience.
  Mr. FRIST. Mr. President, I will make a final statement on the 
deficit reduction act. The Democratic leader also will, and then there 
will be 10 minutes after that before we begin to vote.

                          ____________________




                           DEFICIT REDUCTION

  Mr. FRIST. Mr. President, like everyone else in America, we need to 
tighten our belts and learn how to do more with less. For the first 
time in over 8 years in the Senate, we will reduce spending in an area 
of the budget known as entitlement spending--for the first time in 8 
years.
  As we all know, entitlement spending represents over 54 percent of 
total Federal spending today. It is going to continue to grow steadily 
in the years ahead.
  The infrequency with which this body addresses entitlement 
legislation underscores the importance of the bill we are about to vote 
upon.
  For the first time since 1997, this body, the Senate, is taking 
action to reduce or slow that growth in Federal entitlement spending. 
The legislation before us today will reduce spending nearly $40 billion 
over the next 5 years. If you extrapolate that out to 10 years, it is 
about $100 billion.
  For some, particularly on the other side of the aisle, this 
legislation--and I want to put that in quotation marks--``cuts too 
much.''
  Let me respond by saying entitlement spending is projected to grow 
from $1.3 trillion to over $1.7 trillion in 2010--$1.3 trillion to over 
$1.7 trillion over the next 5 years. If you add that up, over the next 
5 years, the cumulative entitlement spending will top $7.8 trillion.
  The bill we have before us reduces that figure, the $7.8 trillion, by 
a total amount of $40 billion. That is about a half of 1 percent.
  ``Cuts too much?''
  Furthermore, the bill doesn't--that is why I put it in quotation 
marks--cut entitlement spending, spending which, if we don't pass this 
bill, will grow at 5.4 percent. Once we pass this bill, it will be 
slowed to 5.4 percent. That is not a cut. The legislation, as tough as 
it has been to negotiate--and much of it has played out on the floor of 
Senate itself--reflects tremendous work over the past several months. 
It is a small downpayment against greater challenges that confront our 
country in the years ahead.
  Last week, the Congressional Budget Office issued a report entitled 
``The Long-Term Budget Outlook.'' Let me read the very first line of 
that report.

       As health care costs continue to grow faster than the 
     economy and the babyboom generation nears entitlement for 
     Social Security and Medicare, the United States faces 
     inevitable decisions about the fundamentals of its spending 
     policies and its means of financing those policies.


[[Page 30688]]


  What it boils down to is the entitlement spending path we are on is 
simply not sustainable. The legislation we are about to vote on is a 
good first step on putting us back on a sustainable glidepath. But it 
is only the first step.
  I am proud of the work on this bill to control Federal spending. I 
congratulate the chairman of the Senate Budget Committee, Senator 
Gregg, who worked nearly 9 months ago on passage of the budget 
resolution. The 2006 budget resolution that put in motion this process 
has brought us to this point of deficit reduction in this 
reconciliation bill today. Indeed, this final conference bill exceeds 
the goals set out last spring in that resolution by nearly $6 billion.
  I also thank the chairmen of the reconciliation committees and the 
many staff who have worked so hard in putting this bill together.
  It is time we bring this year's budget process to an end with passage 
of this legislation today. With the New Year only a couple of weeks 
away, it is time for us to prepare and actually renew our focus on the 
continued challenges that lie ahead.
  The bill shows fiscal restraint. It shows we are going to cut 
wasteful Washington spending. A ``yes'' vote demonstrates we are 
governing with meaningful solutions to ensure America's long-term 
prosperity.
  The ACTING PRESIDENT pro tempore. The Democratic leader.

                          ____________________




                         BUDGET RECONCILIATION

  Mr. REID. Mr. President, the matter now before the Senate of the 
United States is a budget. But it isn't a budget based on mainstream 
American values; it is an ideologically driven, extreme, radical 
budget. It caters to lobbyists and an elite group of ultraconservative 
ideologues here in Washington, all at the expense of middle Americans, 
those with the greatest of needs, and future generations.
  I rise today to express my strong opposition to the budget 
reconciliation conference report before this body. Rather than sharing 
the sacrifices needed to get this Nation's fiscal house in order, this 
Republican budget and this legislation target ordinary Americans by 
cutting programs such as student aid, Medicare, Medicaid--all to pay 
for another round of budget-busting tax breaks for special interests 
and multimillionaires. This budget is an attack on the middle class and 
those in greatest need on behalf of lobbyists for the powerful. This 
budget is un-American. In fact, as the leading clergy of Protestants in 
this country has said, it is immoral.
  It is important to consider what is happening in America today. Of 
course, we know there needs to be fiscal constraint in this country. We 
are spending $2 billion a day in Iraq alone. Middle-class Americans are 
being squeezed. Their wages have been stagnant now for several years. 
Meanwhile, their costs are increasing for everything from a visit to 
the family physician--if, in fact, they are fortunate enough to be able 
to get in to one--to college tuition, home heating, gasoline for their 
cars. As a result, more Americans are struggling to make ends meet.
  This administration and this Congress should be helping middle-class 
families deal with these family issues. Democrats have developed a 
variety of proposals to do so. Unfortunately, every one of our 
proposals has been repeatedly blocked by the Republican majority.
  We are debating a reconciliation bill, the centerpiece of a 
Republican budget that not only fails to address the middle-class 
squeeze but makes it worse and saddles our children--my 5 children and 
my 15 grandchildren--with billions and billions of dollars in 
additional debt.
  This budget which is before the Senate has a name. Every piece of 
legislation that comes before this body has a name. The name given to 
this piece of legislation by the Republican majority is the Budget 
Deficit Reduction Act of 2005. Try that one on. The Budget Deficit 
Reduction Act of 2005. It increases the deficit of this country because 
of the tax cuts they are giving to those who don't need them by some 
$50 billion over and above these cuts. Budget Deficit Reduction Act? Is 
that Orwellian doublespeak?
  This legislation includes the largest student aid cut in this 
Nation's history. We have read all the articles about the costs of 
college increasing. You go to a State university now in Nevada. They 
are considering that everyone can go to school at the University of 
Nevada--Reno or UNLV--or the community college system. There were no 
basic academic requirements. If you graduate from high school, you can 
go to college. They are considering raising qualifications to get in 
those schools to a B average--eliminating people like me from being 
able to go to college. That is wrong. That is what this legislation is 
doing. A child's ability to be educated should not be dependent upon 
how much money their parents have.
  This legislation, instead of helping middle-class families struggling 
with these increased burdens, simply increases their costs and makes it 
even worse for them. Rather than opening doors of opportunity to all 
Americans, this bill will close the doors for many. Higher fees on 
students increase the rate of interest on student loans, weaken the 
financial foundation of higher education, and, I submit, weaken our 
country. Forcing middle-class families to pay more for college in order 
to partially pay for another fiscally irresponsible round of special 
interest tax breaks is not fair. It is bad economic policy.
  In today's global and high-tech economy, America's competitive edge 
depends increasingly on our commitment to education. It used to be that 
we could go to India and grab all the engineers and bring them here. 
India needs them now. We cannot do that anymore. We need to educate our 
own students. We should be increasing a commitment to educating our 
children. Instead, this bill goes in the opposite direction.
  Beyond the cuts in student aid, this bill also contained harmful 
health care cuts that will increase costs and deny access to millions 
of Americans. For example, Part B premiums for Medicare will go up, up 
for all seniors. Home health services are cut. I can remember 20 years 
ago, I went--a physician asked me to--to Las Vegas to visit his 
patients who were in hospitals. He said: They shouldn't be here, but 
under the rules we have, I cannot give them their medication at home. 
He said: Think how much money this is costing the Federal Government.
  We changed it so that people could stay home and be taken care of. We 
are changing that. We do not save money, we lose money.
  While at the last minute the Republican leadership decided under 
certain provisions to protect certain favored health care interests, 
they did not provide such protections for ordinary American seniors.
  Even more troubling than the cuts in Medicare are the cuts in 
Medicaid. Medicaid--health care for the neediest of all Americans. This 
bill targets Americans with the greatest needs and the fewest resources 
by forcing them to pay more for health care, cutting benefits, and 
making it harder for them to get the prescription drugs they need. Many 
of these people are hurricane survivors. We saw the huddled masses on 
television. We saw them in New Orleans because of the disaster, but 
there are many communities all over America, and the huddled masses are 
there, also. We just did not see them on TV. What do we do to help 
them? Nothing. Nothing.
  Many people in America are struggling to survive. These people need 
more help with their health care, not less. This bill cuts what little 
health coverage they have, if any, and increases their costs. For what? 
To pay for another round of tax breaks for special interests, 
multimillionaires, and billionaires. That is immoral.
  This legislation rips and tears at Medicare and Medicaid. This bill's 
cuts to Medicare and Medicaid are largely why this legislation is 
strongly opposed by all seniors. The largest seniors organization in 
America, the American Association for Retired Persons, does not like 
this legislation. Their chief executive officer, Bill Novelli, writes 
the following:


[[Page 30689]]

       The final conference agreement does not ask for shared 
     sacrifices to achieve budgetary savings. Rather it protects 
     the pharmaceutical industry, the managed care industry, and 
     other providers at the expense of low-income Medicaid 
     beneficiaries and Medicare beneficiaries who will foot this 
     bill.

  That is not Senator Reid speaking, that is Bill Novelli, CEO of the 
AARP.
  Unfortunately, this bill's Medicare and Medicaid reductions are not 
the only cuts to this Nation's safety net. The bill cuts funding for 
child support enforcement.
  When I was a young lawyer, I went after some deadbeat dads. Oh, they 
were hard to trap. They would move from jobs, move from towns. They 
could always get ahead of their children. But we changed the law so 
that now we have law enforcement provisions to go after these 
deadbeats. My son-in-law's sister, in the District Attorney's Office in 
Las Vegas, spends her full time going after these deadbeat dads. Well, 
we are going to cut back on this.
  This legislation cuts foster care--foster care. Think about that. We 
all know of people who are foster parents. They have big hearts. They 
have big needs. And we are going to cut them back.
  This legislation cuts back programs for low-income seniors and people 
with disabilities. I see the Senator from Illinois is in the Chamber. 
We were together in Arizona. I don't remember the man's name, but there 
was a man who was an Indian. He testified before us and he talked about 
how little money he made. He was handicapped. But he worked. And he 
ended his presentation by saying: I am a proud American. He had a 
little difficulty of speech, but it was clear what he said. There are 
many proud Americans who are people with disabilities and low incomes. 
They need our help. This legislation cuts the ability to help them.
  It reduces the availability of housing for families in need. It 
eliminates FHA's ability to rehabilitate housing. The legislation 
before this body also badly weakens the Temporary Assistance for Needy 
Families programs which help move low-income Americans from welfare to 
work. There was an overwhelming bipartisan consensus in the Senate that 
we should not change TANF in this fast track. But the Republican 
leadership ignored that and decided, in the dead of the night, to make 
the most significant change to welfare policy in a decade.
  The bill apparently includes very expensive and unfunded new 
requirements on States, reducing their already limited flexibility. 
Meanwhile, the legislation badly underfunds the childcare that parents 
will need to move from welfare to work. The majority is happy to harm 
those with the greatest needs. They have gone out of their way to 
accommodate lobbyists for special interests. For example, lobbyists for 
HMOs won a huge victory when the conferees rejected the Senate's 
proposal to eliminate the discredited HMO slush fund. Lobbyists for the 
pharmaceutical industry saved the industry from adjustments in Medicaid 
rebates. And lobbyists for certain types of medical equipment won 
special accommodations as well.
  All these favors for special interests should not come as a surprise. 
After all, that is what we have come to expect from this Congress. The 
policies being pursued by this Congress are a corruption of our 
Nation's values. How can it be that we are about to cut student loans, 
Medicare and Medicaid, and then turn around and provide even more tax 
breaks to special interests and multimillionaires? Have they no sense 
of decency? Have they no sense of shame?
  The capital gains and dividend tax breaks called for in the 
Republican budget that are so important to President Bush and this 
leadership would provide almost half their benefits to those with 
incomes of more than $1 million. They will get a tax break of more than 
$30,000 a year.
  Meanwhile, the losers won't just be the ordinary Americans who will 
suffer cuts in student loans, Medicaid and Medicare, all Americans will 
lose because the tax breaks backed by the Republican leadership will 
cost substantially more than their spending cuts will save. As a 
result, the deficit will go up, interest rates will rise, the economy 
will suffer, and the burdens on our children and grandchildren will 
increase.
  Finally, this budget is wrong for many other reasons and in many 
other dimensions. It is wrong to target middle-class families already 
struggling to send their kids to college. It is wrong to target 
Medicare and Medicaid, which serve seniors and Americans with the 
greatest needs. It is wrong to use these cuts to help pay for tax 
breaks that largely benefit those with incomes over $1 million. It is 
wrong to do all this while handing out favors to special interests and 
their lobbyists. And it is wrong to approve a budget that will increase 
the deficit and burden future generations.
  This is not a budget based on mainstream American values. It is an 
ideologically driven, extreme budget that caters to lobbyists and an 
elite group of ultra-conservative ideologues in Washington, all at the 
expense of middle-class Americans, those with the greatest needs.
  This budget will be approved unless enough reasonable Senators on the 
other side stand up and do the right thing. I hope they will. And I 
hope we can finally persuade the leadership in this body, the 
Republican leadership, that it is time--it is long past time--to stop 
catering to special interests and to start putting the American people 
first.

                          ____________________




                       RESERVATION OF LEADER TIME

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
leadership time is reserved.

                          ____________________




            DEFICIT REDUCTION ACT OF 2005--CONFERENCE REPORT

  The ACTING PRESIDENT pro tempore. Under the previous order, the 
Senate will resume consideration of the conference report to accompany 
S. 1932, which the clerk will report.
  The legislative clerk read as follows:

       Conference report to accompany S. 1932, an act to provide 
     for reconciliation pursuant to section 202(a) of the 
     concurrent resolution on the budget for fiscal year 2006.

  The ACTING PRESIDENT pro tempore. Under the previous order, there 
will be 5 minutes each for the Senator from New Hampshire and the 
Senator from North Dakota.
  The Senator from the great State of North Dakota.
  Mr. CONRAD. Mr. President, the legislation before us suggests that it 
is deficit reduction. There are three chapters to this book on 
reconciliation. You have to read all three chapters to understand the 
meaning of the book. The first chapter provides spending cuts of $40 
billion over 5 years. Those spending cuts disproportionately take from 
those who have the least among us. Chapter 2 provides $70 billion of 
tax cuts. So the combined effect of chapters 1 and 2 is not to reduce 
the deficit, it increases the deficit. And the tax cuts give to those 
who have the most among us.
  The Chaplain, in his prayer this morning, asked us to lead lives that 
will be living sermons--lives that will be living sermons. I do not 
know of any church that teaches to take from those who have the least 
among us to give to those who have the most among us.
  The third chapter in this book provides for a debt limit increase of 
$781 billion--one of the largest increases in the debt of our country, 
in the history of our country.
  This first chapter, as I have indicated, contains $40 billion of 
spending cuts over 5 years. But the second chapter will cut taxes by 
$70 billion over that same period. The net result is not deficit 
reduction; it is an increase in the deficit.
  If we are to focus just on this first chapter, and put it into 
perspective, here is what we see: spending cuts of $40 billion. It is 
almost indecipherable how much that is in relationship to what we will 
be spending over the next 5 years. We will be spending $14.3 trillion 
over the next 5 years. So our colleagues on the other side have managed 
to cut one three-hundred fiftieth--one three-hundred fiftieth--of the 
spending. But then in chapter 2 they are going to come here and 
eliminate that deficit reduction by the tax cuts--again, spending 
reductions from those who

[[Page 30690]]

have the least among us to give to those who have the most among us. 
And the extraordinary irony of all of this is that all of this--if this 
is implemented, the budget that is being passed--is building a wall of 
debt that is unprecedented in the history of our country.
  If this budget is actually implemented over the next 5 years, it will 
increase the debt of our country from $7.9 trillion to $11.3 trillion. 
This is not just my estimate, this is the estimate of the people who 
have written this package.
  This is from their own document. They say the debt of the country 
will increase each and every year by over $600 billion. This is before 
the baby boomers retire. If you like deficits and debt, if you want to 
pass on a massive debt to our children, this is your chance. Vote for 
this package.
  It took 42 Presidents 224 years to run up a trillion dollars of 
external debt, debt held by foreigners. This President has more than 
doubled that amount in 5 years. This is going in the wrong direction. 
The result is, we now owe Japan over $680 billion. We owe China almost 
$250 billion. We owe the ``Caribbean Banking Centers'' more than $100 
billion.
  In addition to the explosion of deficits and debt, these provisions 
in this chapter of the book are unfair to those who have the least 
among us: Medicaid cuts targeting low-income beneficiaries, child 
support enforcement cuts, foster care cuts, on and on it goes. The 
spending cuts are being done to make room for more tax cuts. House Ways 
and Means Committee Chairman Bill Thomas told a group of GOP lobbyists 
the spending cuts are necessary to make room for the tax-cutting 
legislation.
  I will be making points of order against this bill because we believe 
this bill has violated the rules of this body in instance after 
instance after instance, repeated violations of the rules. At the 
appropriate time, I will bring a point of order.
  I conclude as I began: This legislation, taken as a whole, all of the 
chapters of reconciliation, will increase the deficit and debt of our 
country, will have one of the largest increases in debt, $781 billion, 
in our Nation's history. In addition to that, this has the wrong 
priorities, taking from the least among us to give to those who have 
the most among us. That is wrong.
  I thank the Chair.
  The ACTING PRESIDENT pro tempore. The Senator from New Hampshire.
  Mr. GREGG. What is the time situation?
  The ACTING PRESIDENT pro tempore. The Senator from New Hampshire has 
5 minutes.
  Mr. GREGG. Mr. President, every so often in this body--and it is 
quite rare--we come to a point where a vote must be cast in order to 
determine whether the words you speak are going to be complied with. 
That is this vote. All of us in this Congress tend to talk about fiscal 
responsibility. We all are concerned about our children and the type of 
Nation we are going to leave them. We know that because of the 
retirement of the baby boom generation, our children will face huge 
financial stress from the costs of Government. We know that we have on 
the books approximately $44 to $55 trillion of unfunded liability in 
the area of Medicaid, Medicare, and Social Security accounts that 
benefit seniors. That huge number is a result of the fact that there is 
a huge generation about to retire called the postwar baby boom 
generation.
  The question for us, as stewards of this Nation and as stewards of 
our children and our grandchildren's future, is whether we are going to 
pass on to them this type of debt or whether we are going to step on to 
the turf of trying to address that issue before it overwhelms us. 
Whether our children have an opportunity to live as good as our 
generation has, to send their children to college, to own a home, to be 
able to live in an America which is prosperous, will be determined by 
whether we, as a government, are responsible in what debt and 
obligations we pass on to them.
  For 8 years, we have ignored this problem. Today we have an 
opportunity to address it. This will be the first time that this 
Congress in 8 years has stepped onto the turf, put our toe in the 
water--actually, we are going up to our ankles--to address the issue of 
future responsibilities and how we control the spending of the Federal 
Government in the outyears.
  We have addressed the issues on the appropriations side, 
discretionary spending, but we have refused, over the last 8 years, to 
address the issue of mandatory spending or entitlement programs. This 
is not a major step forward. I wish it was bigger. The Senator from 
North Dakota held up charts which show how unfortunate it is in its 
size, that it is not larger. He has pointed out that it is $40 billion 
on $14 trillion of spending. He calls that one three hundred fiftieth 
of a percent. It is actually about a half a percent of the spending 
during that period. But the point is, if we do not proceed at this 
time, if we do not go forward, it is still going to be $40 billion of 
debt that we pass on to our children. That is what this vote is about.
  It is not about the tax issue. This isn't a tax bill. It is not about 
the debt issue in the sense that it is not the debt extension vote. It 
is the one vote that we will have as a Congress to try to control the 
outyear debt of this country through restraining spending. It will be 
the first time that we have stepped forward on the issue of one of the 
major entitlements, specifically Medicaid. We don't do a great deal on 
the numbers side of Medicaid. I wish we had done a lot more, and I 
tried to do a lot more. But we do take significant steps in the area of 
policy, on how we address Medicaid by essentially taking what the 
Governors have proposed, in a bipartisan approach, and putting that 
language into this bill to give the Governors more flexibility as to 
how they deliver Medicaid in the States, thus allowing them to deliver 
more services to more people at less of a rate of growth.
  That is reflected in this chart. We can see that dedicated spending 
is going to go up 40 percent under this bill. It would go up 40 percent 
under the law, generally. We essentially reduce the rate of growth, not 
dramatically, but we put in place policies which will allow us to 
improve the system and care for more children more effectively.
  This is it, folks. This is the only chance we are going to have this 
year. It is the only chance in the last 8 years to actually step 
forward and do something about deficit spending on the entitlement 
side.
  This is our responsibility to our children. We should pass this bill, 
or else we should ask ourselves what type of public policy are we 
pursuing and what type of stewards are we of our children's future. 
This is the one vote we will have to reduce the rate of growth of the 
Federal Government.
  I believe we have now used the 5 minutes.
  The ACTING PRESIDENT pro tempore. The Senator is correct.
  Mr. GREGG. On both sides?
  The ACTING PRESIDENT pro tempore. The Senator is correct.
  Mr. GREGG. I ask unanimous consent that as we debate the issue of 
points of order, which the Senator from North Dakota is going to make, 
we have 4 minutes on both sides.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The Senator from North Dakota.
  Mr. CONRAD. Has the Senator yielded?
  Mr. GREGG. Yes.
  Mr. CONRAD. Mr. President, could the Chair advise us, what is the 
parliamentary circumstance we confront? My understanding is I am to be 
recognized to make a point of order at this point.
  The ACTING PRESIDENT pro tempore. The Senator is correct.
  Mr. CONRAD. I thank the Chair.
  Mr. President, this bill contains many violations of the rules. We 
are here because the majority insisted on ramming through bad 
legislation at the last moment with little or no public scrutiny. This 
774-page bill was written behind closed doors with no

[[Page 30691]]

input from the minority. It was filed in the dead of night and voted on 
in the House at the crack of dawn. Then House Members left town.
  Let's remember that reconciliation is a special parliamentary process 
that allows legislation to be passed with fast-track procedures that 
restrict a Senator's right to debate and amend. Because of these fast-
track procedures, the Byrd rule was adopted to prohibit extraneous, 
nonbudget-related provisions from being included.
  The points of order that I am raising are all violations of the Byrd 
rule. I now raise these three points of order:
  One, striking the Medicaid medical liability provision, which allows 
hospitals to deny treatment to low-income individuals who are unable to 
pay. Not only is the majority raising copayments on low-income Medicaid 
beneficiaries, but they are shielding hospitals from medical liability 
if they refuse to treat those low-income people who are unable to pay. 
That is wrong.
  Two, striking the foster care provision that would prohibit 
grandparents from receiving foster care payments. The conference report 
includes a provision to overturn a Ninth Circuit Court case that 
allowed grandparents with limited incomes to receive foster care 
payments when parenting vulnerable children. That is as mean spirited 
as it is ill-conceived. We know that placing foster kids with their 
grandparents puts them in the most stable and healthy environment. 
Prohibiting support for grandparents who take in foster children is 
wrong.
  Three, I am also raising points of order against reports focusing on 
policy matters that do not belong in a reconciliation bill. These 
reports have no budgetary effect whatsoever and should not be here.
  I hope my colleagues will support these points of order so we can 
send this bill back to House. Let's use this opportunity to create a 
better product for the American people.
  Mr. President, I raise the point of order pursuant----
  Mr. GREGG. Will the Senator yield?
  Mr. CONRAD. Let me conclude first.
  Mr. GREGG. My question is whether I should make my statement before 
the Senator makes the point of order.
  Mr. CONRAD. That is fine.
  Mr. GREGG. Mr. President, the Senator from North Dakota has been 
cooperative and very fair, as he always has been when proceeding on 
these bills. He is a true professional. I know the Chair has been 
advised as to what the four points of order are.
  I have a parliamentary inquiry: Does the Chair deem the foster care 
point of order to be well taken if that question is put to the Chair?
  The ACTING PRESIDENT pro tempore. The Chair does not believe that 
particular point of order is well taken.
  Mr. GREGG. Basically, if I may continue, we would be dealing with 
three points of order as being well taken if they are put to the Chair?
  The ACTING PRESIDENT pro tempore. That is correct.
  Mr. CONRAD. Mr. President, might I inquire, on the other three points 
of order that I have raised, would the Chair rule that those points of 
order are in fact in order and appropriate?
  Mr. GREGG. Not at this time is the question.
  Mr. CONRAD. Yes.
  The ACTING PRESIDENT pro tempore. When it is time, under the rule, 
the Chair will in fact so rule.
  Mr. CONRAD. I thank the Chair. I thank my colleague. We have worked 
in a professional and cooperative way. I thank the Chairman for his 
inquiry.
  Mr. GREGG. Mr. President, the Democratic leader on the bill has every 
right to make a point of order. Clearly, the Chair will rule they are 
well taken. Let's talk about the substance quickly.
  They are essentially technical points of order. Two deal with reports 
and the other with an issue of liability which is very narrow, dealing 
with what people are told when they come into an emergency room. 
Essentially, the practical effect of doing these technical attacks on 
this bill will be that the bill must go back to the House of 
Representatives and the House of Representatives is going to agree and 
knock that language out. But the House is not here.
  So what is the real practical effect of this? It is that the Katrina 
money in this bill will not be spent. The TANF Program, the welfare 
program, will lapse. The Medicare physicians payments increase, which 
basically makes Medicare physicians whole, will not occur. Transitional 
medical assistance for families who worked their way off welfare will 
be lost. And the therapy caps for seniors who suffer strokes will be 
lost during this interim period.
  Why would we want to do that simply to go through a technical 
exercise? It makes no sense at all, other than the fact that the other 
side of the aisle wants to delay the process. But in the process of 
delaying for purely technical reasons--I mean, two reports are being 
challenged. We get thousands of reports in this institution. To delay 
the Katrina benefits for the people in the gulf coast region who have 
suffered is outrageous, over two reports.
  To potentially stop welfare payments for up to a month because the 
House cannot get back here is outrageous, over two reports. To stop 
transitional medical assistance is outrageous, over two reports. To say 
nothing of the other reports. I realize if we don't enact this bill by 
the end of this year, there are $18 billion worth of subsidies that are 
going to flow to corporate lenders which are totally inappropriate, 
which the HELP Committee has said we have to stop. But those subsidies 
will go to those lenders. The money will potentially be lost, and that 
money that was going to be used to reduce debt and give students more 
loans will be lost, potentially, unless we get this bill done by the 
end of the year.
  We have serious issues that have to be addressed. They should not be 
tied up over technicalities. That is what these points of order are 
about.
  Mr. BAUCUS. Mr. President, I support the point of order raised by 
Senator Conrad on the budget reconciliation bill. Under the Byrd rule, 
any provisions in a final budget reconciliation bill that are 
extraneous to changing the budget can be stricken. Section 6043, the 
emergency room copayments for non-emergency care provisions, clearly 
violates the Byrd rule.
  Section 6043 makes far-reaching policy changes never debated in the 
Senate that have no place in a budge reconciliation bill. Although the 
provision makes major changes to Medicaid, the Emergency Medical 
Treatment and Labor Act, EMTALA, and even State medical malpractice 
liability policy, it only generates net savings of $11 million over 5 
years, one-tenth of a percent of the original budget target.
  Section 6043 allows States to impose new higher costs for Medicaid 
patients seeking emergency room care and allows hospitals to turn 
patients away if they cannot pay when the hospital says there is no 
emergency. Under current law, Medicaid requires hospitals to provide 
access to emergency care when it is medically needed. In fact, Medicaid 
HMOs are required to cover care in cases where the individual 
reasonably believes there is an emergency, even when no emergency 
exists. And Federal law requires hospitals to screen and stabilize 
patients regardless of their ability to pay.
  Section 6043 turns current law on its head. It will deter emergency 
room use by Medicaid beneficiaries and make it harder to enforce the 
Federal guarantee of access to emergency care for all.
  The provision also includes language that makes it harder for 
patients to sue hospitals and doctors for poor treatment decisions 
about whether they need emergency care. This language would tip the 
burden of proof from a ``preponderance of the evidence'' to a ``clear 
and convincing'' evidence standard. The ``preponderance'' standard is 
the usual standard in State medical malpractice claims. It is a 
standard that strikes the balance between the patient and the provider. 
The ``clear and convincing'' standard tips the burden of proof toward 
the patient and makes it more difficult for a patient to prove his or 
her claim.
  Similarly, the provision also changes the standard of liability from 
the usual State standard of ``negligence'' to a heightened standard of 
``gross negligence.'' It is more difficult for a patient to prove 
``gross negligence'' than

[[Page 30692]]

``negligence.'' Thus, the language changes the standard of liability to 
impose greater burdens on the injured patient and less accountability 
for the providers. This actually makes an end run around State medical 
malpractice liability law, lowering the standard of liability.
  Neither State medical malpractice law nor EMTALA standards were the 
subject of this bill. Neither was discussed in the Senate, even though 
both are of great concern to many in the Senate. This provision was 
never discussed or considered at any point in the Senate debate, in 
committee or on the floor. It was omitted from the Senate version.
  Given this section's extremely small pricetag and its oversize policy 
effect, this provision is ripe for exclusion under the Byrd rule. For 
these reasons, I support Senator Conrad's point of order to strike 
section 6043.
  Mr. CONRAD. Mr. President, how much time do I have remaining?
  The ACTING PRESIDENT pro tempore. There is 1 minute 29 seconds.
  Mr. CONRAD. Mr. President, some of these matters are technical 
matters. But we have rules in this body for a reason. This legislation 
has many violations of the rules. I have chosen a few to raise today. 
Why? Because, colleagues, we could be voting all day on my points of 
order against this bill. I have tried to reduce it to one vote to 
accommodate colleagues. I could be here raising 12 or 15 points of 
order and ask for a vote on every single one of them. I have not done 
that. Yes, some of these matters are technical, but they are because we 
have rules.
  I would say that the question of Medicaid liability is not a 
technicality. This is a question that allows hospitals to deny 
treatment to low-income individuals who are unable to pay. Not only is 
the majority raising copayments on low-income Medicaid beneficiaries, 
but they are shielding hospitals from medical liability if they refuse 
to treat those low-income people who are unable to pay. That is wrong.
  Let me just say, on the foster care matter, we have a difference with 
the Parliamentarian. I believe there is a violation.
  The ACTING PRESIDENT pro tempore. The Senator's time has expired.
  Mr. CONRAD. Again, I believe the foster care question that prohibits 
grandparents from receiving foster care payments is also well taken, 
but we understand there is a difference.
  I raise the point of order pursuant to section 313(b)(1)(A) of the 
Congressional Budget Act of 1974 against section 5001(b)(3) and section 
5001(b)(4) of the conference report because those provisions of title V 
regarding Medicaid produce no budgetary changes in outlays or revenues; 
and pursuant to section 313(b)(1)(D) of the Congressional Budget Act of 
1974 against section 7404 regarding foster care, and the portion of 
section 6043 beginning on page 92, line 19, through page 93, line 2, 
which relates to the negligent standard for hospitals and physicians 
who treat Medicaid patients because any changes in outlays or revenues 
associated with those two provisions are merely incidental to the 
nonbudgetary components of those provisions.
  I hope my colleagues will vote to sustain this point of order.
  Mr. GREGG. Mr. President, I move to waive section 313 of the 
Congressional Budget Act for consideration of sections 5001(b)(3), 
5001(b)(4), and the relevant sections of 6043 of the conference report 
to accompany S. 1932.
  I understand the Chair is going to rule that the fourth point of 
order relative to foster care is not well taken.
  I ask for the yeas and nays.
  The ACTING PRESIDENT pro tempore. Is there a sufficient second? There 
is a sufficient second.
  The question is on agreeing to the motion.
  The clerk will call the roll.
  The bill clerk called the roll.
  The yeas and nays resulted--yeas 52, nays 48, as follows:

                      [Rollcall Vote No. 362 Leg.]

                                YEAS--52

     Alexander
     Allard
     Allen
     Bennett
     Bond
     Brownback
     Bunning
     Burns
     Burr
     Chambliss
     Coburn
     Cochran
     Coleman
     Collins
     Cornyn
     Craig
     Crapo
     DeMint
     DeWine
     Dole
     Domenici
     Ensign
     Enzi
     Frist
     Graham
     Grassley
     Gregg
     Hagel
     Hatch
     Hutchison
     Inhofe
     Isakson
     Kyl
     Lott
     Lugar
     Martinez
     McCain
     McConnell
     Murkowski
     Roberts
     Santorum
     Sessions
     Shelby
     Specter
     Stevens
     Sununu
     Talent
     Thomas
     Thune
     Vitter
     Voinovich
     Warner

                                NAYS--48

     Akaka
     Baucus
     Bayh
     Biden
     Bingaman
     Boxer
     Byrd
     Cantwell
     Carper
     Chafee
     Clinton
     Conrad
     Corzine
     Dayton
     Dodd
     Dorgan
     Durbin
     Feingold
     Feinstein
     Harkin
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Mikulski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sarbanes
     Schumer
     Smith
     Snowe
     Stabenow
     Wyden
  The PRESIDING OFFICER (Mr. Martinez). On this vote, the yeas are 52, 
the nays are 48. Three-fifths of the Senators duly chosen and sworn not 
having voted in the affirmative, the motion is rejected.
  Mr. GREGG. Mr. President, I move to reconsider the vote.
  Mr. CONRAD. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. The Senator from New Mexico.
  Mr. DOMENICI. Mr. President, am I recorded?
  The PRESIDING OFFICER. The Senator is recorded.
  Mr. CONRAD. Mr. President, could we have order in the Chamber?
  The PRESIDING OFFICER. The Chamber will please be in order. Senators 
will please take their conversations off the floor.
  The Senator from North Dakota.
  Mr. CONRAD. Mr. President, it is my understanding I would now have 
the right to offer a second point of order.
  The PRESIDING OFFICER. The unanimous consent agreement did authorize 
that.
  Mr. CONRAD. Has the Chair ruled on the point of order?
  The PRESIDING OFFICER. The Chair is about to do so.
  Mr. GREGG. Mr. President, the Chair is about to rule on the points of 
order which were just offered, is that correct?
  The PRESIDING OFFICER. Correct. The point of order is sustained 
against section 5001(b)(3), section 5001(b)(4), and that portion of 
section 6043(a) proposing a new subsection (e)(4) to section 1916A of 
the Social Security Act as added by section 6041 and as amended by 
section 6042 of this act. The point of order is not sustained against 
section 7404.
  Mr. CONRAD. I thank the Chair. I now ask if it is in order that I 
would offer a second point of order under the unanimous consent 
agreement.
  The PRESIDING OFFICER. The unanimous consent agreement did so 
authorize.
  Mr. CONRAD. Mr. President, colleagues, I see no need to ask 
colleagues to cast another vote. Therefore, I will withhold on the 
second point of order and we could go right to passage of the 
reconciliation conference report.
  Mr. GREGG. I suggest that is a good approach.


                           third-party payors

  Mr. BOND. Mr. President, I rise to engage the chairman of the Finance 
Committee in colloquy regarding clarification of some Medicaid 
provisions relating to strengthening the government's ability to 
identify and collect payment from liable third party payors.
  Under current law, Medicaid is the payor of last resort. In general, 
federal law requires available third parties must meet their legal 
obligation to pay claims before the Medicaid program pays for the care 
of an individual.
  The conference report amends the list of third parties named in 
section 1902(a)(25) of the Social Security Act for which States must 
take all reasonable measures to ascertain the legal liability to 
include, among others, pharmacy benefits managers.
  Once only the back office to health plans, employers, and State 
governments, pharmacy benefit managers

[[Page 30693]]

have expanded their business model to include serving as risk-bearing 
entities under the Medicare Part D program.
  I would like to clarify that the addition of pharmacy benefit 
managers to the definition of liable third parties is in the instance 
when they are at risk for the underlying benefit, such as operating as 
a plan sponsor for purposes of providing health benefits or as a 
riskbearing entity under the new Medicare Part D program as a stand-
alone PDP. This addition is not meant to make pharmacy benefit managers 
liable when they are acting merely in an administrative capacity on 
behalf of a liable third party.
  Mr. GRASSLEY. I thank the Senator from Missouri. Yes, I want to 
clarify the intent is not to create an additional liability where none 
exists today. Pharmacy benefit managers mayor may not be liable third 
parties. It is dependent upon whether they are ultimately responsible 
for the payment of a claim. It is my understanding that the health plan 
or employer contracting with the pharmacy benefit manager is ultimately 
at risk for the underlying claim, so it is my belief this will not 
create new liability for the pharmacy benefit manager.
  Mr. BOND. I thank the Chairman.


  Bona Fide Services--Clarifying the Treatment of Distributor Service 
       Fees under the New Medicaid Pharmacy Reimbursement Metric

  Mr. LOTT. Mr. President, I again commend Chairman Grassley for the 
leadership role he has taken in crafting much needed reductions in the 
mandatory spending programs that fall under his jurisdiction as 
chairman of the Senate Finance Committee. Regarding the changes to the 
Medicaid pharmacy reimbursement formula, we both share a strong 
commitment to ensuring that the Federal dollar is spent in a wise and 
proper manner while maintaining patient access to their medicines.
  I do want to take this opportunity to clarify specifically how bona 
fide services fees, which are negotiated between a manufacturer and 
pharmaceutical distributor, should be treated under the new Medicaid 
pharmacy reimbursement metric.
  Manufacturers pay bona fide service fees for specific services 
provided by the distributor. Service fees are a relatively new business 
model to the pharmaceutical distribution industry and how they should 
be treated under Federal reimbursement programs first came into 
question as the new Average Sales Price, ASP, metric under the Medicare 
Modernization Act was being implemented. I am pleased to note that 
Congress specifically did not include service fees as a price 
concession to be incorporated into the ASP calculation and CMS 
subsequently confirmed that, ``Bona fide service fees that are paid by 
a manufacturer to an entity, that represent fair market value for bona-
fide service provided by the entity, and are not passed on in whole or 
in part to a client or customer of the entity should not be included in 
the calculation of ASP.''
  In light of this, I wanted to make it clear that it was not the 
Chairman's intent to have manufacturers include such bona fide services 
fees in the new Medicaid pharmacy reimbursement equation.
  Mr. GRASSLEY. The Senator from Mississippi is correct. It was not the 
intent of the conferees to suggest that by dropping bona fide services 
fees from the final agreement that those service fees should be 
included in the calculation of the Medicaid Average Manufacturer Price, 
AMP, based reimbursement methodology as established in the pharmacy 
reimbursement provisions of the conference agreement.
  I thank my colleague from Mississippi for seeking this clarification.


                  continued dumping Subsidy offset act

  Mr. CRAIG. Mr. President, I rise to commend Chairman Gregg on his 
leadership regarding the Deficit Reduction Act. The Budget Committee 
has had to make hard decisions and has labored to do so fairly. I have 
seen first-hand and appreciate the Chairman's dedication to the 
integrity of this process.
  On behalf of myself and Senator Burns, I would like to state for the 
record our understanding of the effect of the language in the bill 
regarding repeal of the Continued Dumping Subsidy Offset Act CDSOA.
  We understand that the bill requires distribution of all antidumping 
and countervailing duties finally determined, ultimately assessed on 
any and all imports of merchandise that are entered, or withdrawn from 
warehouse, for consumption by the deadline of October 1, 2007.
  Further, we understand that liquidation or assessment of duties need 
not occur prior to the deadline of October 1, 2007, as a condition of 
distribution and that the duties ultimately assessed will be 
distributed regardless of the date on which they are finally determined 
and collected.
  In other words, while appeals to U.S. courts or NAFTA panels or other 
proceedings at administrative agencies may prevent final assessment and 
collection of the duties owed until after the deadline of October 1, 
2007, so long as the imports are entered, or withdrawn from warehouse, 
for consumption by that date, the duties ultimately assessed will be 
distributed annually under the processes currently specified in law.
  Finally, we understand that subsection (b) specifies that the CDSOA 
shall operate ``as if'' there had been no repeal; meaning that Customs 
will maintain all existing aspects of the program codified at 19 U.S.C. 
Sec. 1675c, and contained in accompanying regulations, including all 
accounting procedures, all administrative and other mechanisms, and all 
infrastructure in place to collect, account for, track, and distribute 
duties on merchandise entered, or withdrawn from warehouse, for 
consumption by the deadline of October 1, 2007. And at all times we 
would expect that collections of duties are to be pursued aggressively 
by U.S. Customs and Border Protection.
  Mr. FRIST. It is my understanding that my colleague is correct in his 
interpretation of the language agreed to by the conferees. In essence, 
the Continued Dumping Subsidy Offset Act will remain in effect for all 
imports of merchandise that are entered, or withdrawn from warehouse, 
for consumption by the deadline of October 1, 2007. However, duties 
collected on products entering on or after October 1, 2007, will be 
deposited with the U.S. Treasury. Since the WTO has declared the CDSOA 
as putting us out of compliance with our WTO obligations, other nations 
have begun to retaliate against our exports. This will bring us into 
compliance with that ruling and hopefully will bring to an end the 
sanctions U.S. companies are currently facing.
  Mr. CRAIG. I thank the leader for that clarification and I appreciate 
all of his hard work in reaching this compromise language.
  Mr. SANTORUM. Mr. President, I rise today in support of S. 1932, the 
Deficit Reduction Act of 2005, but I want to take a few minutes to 
discuss a specific aspect of that bill--the reauthorization of the 
welfare reform law. As many of my colleagues have heard me say, I 
believe the 1996 welfare reform law is one of the great legislative 
successes during my time in the U.S. Senate. Since the bi11's 
enactment, welfare caseloads have been cut in half, more than 7 million 
individuals and 2 million families have exchanged a welfare check for a 
paycheck, and welfare reform has lifted 2.3 million children out of 
poverty.
  We must build upon this success to move the 2 million families that 
remain on welfare into the workforce by ending the Practice of simply 
extending the program and passing a legislative reauthorization of the 
welfare reform law. On January 24, 2005, I introduced S.6, the MORE 
Act, that included a reauthorization of TANF. A bipartisan 
reauthorization bill, S. 667, passed the Senate Finance Committee with 
my support on March 9, 2005. While I continue to believe that such 
reauthorization would have been best suited by moving the Senate 
Finance Committee reported bill, S. 667, under regular order; we 
unfortunately have been unable to reach an agreement with our 
colleagues on the other side of the aisle to bring this bill to the 
floor.
  After over 3 years of trying to move forward on this reauthorization, 
our colleagues in the House have included TANF reauthorization in their 
budget

[[Page 30694]]

reconciliation bill. Going into this process, I was concerned that some 
provisions in the House legislation regarding work hours, participation 
rates, child support enforcement and access to child care did not 
strike the appropriate balance needed to meet the needs of these 
families as they strive to move from welfare to work. I was pleased 
that the House had included provisions to encourage healthy marriages, 
promote responsible fatherhood, and support strong families. At the end 
of the day, the Deficit Reduction Act is not my preferred vehicle, but 
I am glad we are making some improvements in the program without 
upsetting the necessary balance.
  The conference report reauthorizes the welfare program--the Temporary 
Assistance for Needy Families program or TANF--through fiscal year 2010 
at its current funding level of $16.9 billion annually. The bill 
provides an additional $1 billion for child care over 5 years for a 
total of $2.917 billion annually. While I understand and have heard 
from many that they want a higher amount for child care, this bill will 
increase the investment in child care for working families by $1 
billion, and if we don't do this bill there will be no increase in 
child care at all. It is important to get this increase done this year.
  I am very pleased that the conference report provides $100 million 
annually for healthy marriage promotion, and $50 million annually for 
the promotion of responsible fatherhood. The need for these programs is 
clear. Children growing up in married, two-parent homes are less likely 
to be victims of abuse, engage in high risk behaviors, and suffer from 
emotional problems. Children who live absent their biological fathers 
are, on average, five times more likely to be poor, and at least two to 
three times more likely to use drugs, to experience educational, 
health, emotional and behavioral problems, to be victims of child 
abuse, and to engage in criminal behavior than their peers who live 
with both parents.
  However the benefits are also clear. Married families are 5 times 
less likely to be in poverty than are single-parent families. Adults 
benefit from marriage through lower mortality rates, better health, 
greater financial well-being, less suicide, greater happiness, and 
suffer less violence by intimate partners. Children with involved, 
loving fathers are significantly more likely to do well in school, have 
healthy self-esteem, exhibit empathy and pro-social behavior, and avoid 
high-risk behaviors such as drug use, truancy, and criminal activity 
compared to children who have uninvolved fathers. These grants can be 
used to provide information on the value of marriage, conflict 
resolution, relationship skills and financial management. Increasing 
healthy two-parent marriages is a proven means to reduce poverty and 
improve child well-being.
  This conference report also makes modest changes in the 
implementation of the TANF program. First, it updates work 
participation rates. The 1996 Welfare Reform Act, P.L. 104-193, 
contemplated that all states would meet a 50-percent participation rate 
by 2002. Because the current caseload reduction credit is based on the 
1995 caseload level, most States--including my home State of 
Pennsylvania--have an actual participation rate standard of zero. 
States currently achieve their credit because of their ability to count 
a decade-old caseload decline. The conference report updates the credit 
to the more relevant date of 2005, thereby ensuring that the intent of 
the 1996 welfare reform act is realized.
  The bill also closes a loophole on work participation rates. To avoid 
having to meet caseload requirements, some states set up separate 
programs and moved their harder-to-place clients to those programs to 
avoid the work requirements. The bill removes the ability to game the 
system by including these separate state programs in the work 
calculation, closing a loophole.
  I have seen a number of reports that indicate that this bill changes 
work requirements, narrows what is considered work, et cetera. I want 
to be clear that this bill maintains the current work requirements. The 
bill does not change the current-law standard of 30 hours and maintains 
the separate 20-hour standard for adults with a child six years of age 
and under. It also maintains current-law activities that count as work, 
including allowing 12 months for education and training. The measure 
leaves it to the states to determine whether activities may be counted 
as work activities, and how to count and verify reported hours of work.
  I have heard a number of my colleagues say that this bill ``cuts'' 
money from child support enforcement. I hope they go back and read the 
bill. The changes in child support actually increase child support 
enforcement and gets support to the families. The conference report 
includes provisions that increase States' ability to improve child 
support collection. Under current law, much of the child support that 
is owed to families on welfare is assigned to the State. The conference 
agreement would allow $423 million owed to families on welfare and 
those who have left welfare to go directly to those families--a 
significant improvement over current law.
  The supposed ``cut'' is a restoration of the current state-matching 
requirement. Currently, States are required to match certain Federal 
funds with state funds, showing a State investment in the child support 
enforcement program. However, States have been taking Federal funds 
from one grant and then using them as the ``Federal'' matching funds 
rather than using State funds. The conference report prevents States 
from ``double dipping'' by using Federal funds to draw down additional 
matching federal funds for child support enforcement.
  Additionally, the conference report provides $100 million for grants 
to ensure that the safety, permanence and well-being needs of children 
are met in a timely manner. The funds may also be used for the training 
of judges, attorneys, and other legal personnel in child welfare cases.
  The measure also provides an increase of $200 million for the Safe 
and Stable Families program. The purpose of this program is to enable 
States to develop, expand or operate coordinated programs of community-
based family support services for family preservation services, family 
reunification services, and adoption promotion.
  A number of organizations may have misunderstood the changes relating 
to the alleged ``cuts'' in foster care. There are two provisions 
relating to foster care that might have led to this misperception, so 
let me speak on them for a minute.
  First, the conference agreement restores long-standing foster care 
eligibility criteria relating to the Rosales v. Thompson decision. That 
decision from the Ninth Circuit Court of Appeals broadened eligibility 
for Federal foster care benefits to include almost every child in 
foster care in the nine affected States--California, Oregon, 
Washington, Arizona, Montana, Idaho, Nevada, Alaska and Hawaii--instead 
of only children removed from low-income homes that TANF is intended to 
help. The conference agreement again ensures the same policy applies 
nationwide. As this decision did not apply in Pennsylvania, this change 
does not affect my home State.
  Second, the bill limits the amount of administrative expenses when 
States are slow to place children in safe and suitable situations. I 
should be clear that this proposal does not reduce foster care benefits 
because the funds in question do not support payments to families. 
Instead, the proposal addresses how much Federal funding States may 
claim to operate their foster care programs and under what 
circumstances Federal funding may be claimed. Current law requires the 
placement of a child in a licensed foster family home or a child care 
institution as a condition of eligibility for federal foster care 
maintenance payments. As part of meeting this duty, States may make 
certain administrative claims on behalf of ``candidates'' for federal 
foster care. ``Candidates'' are children who have not been removed from 
their homes but are at imminent risk of removal.
  The proposal allows the State to claim Federal administrative funds 
for

[[Page 30695]]

up to 12 months while children are ``candidates'' for Federal foster 
care and the State is working to license the home as safe and 
appropriate for the child. In January 2005, the Department of Health 
and Human Services, HHS, issued a proposed regulation making this 
change. So States have been on notice that this issue was of concern 
for almost a year. Fourteen States have indicated that they would be 
affected by the proposed regulation; however Pennsylvania was not one 
of those States.
  In summary, millions of our fellow citizens have replaced the 
dependency on government handouts with the dignity and opportunity of 
work. Children and families will now have opportunities to strengthen 
their families through programs to support marriage and responsible 
fatherhood. Thousands of children will have access to childcare through 
the $1 billion in new funding. And we have strengthened our child 
welfare programs. On balance, I think the reconciliation bill, as it 
relates to welfare reform, is a step in the right direction. I remain 
committed to ensuring that work remains a gateway to opportunity for 
all Americans and urge my colleagues to support passage of S. 1932, the 
Deficit Reduction Act of 2005.
  Mr. KOHL. Mr. President, I once again rise to reluctantly, but 
adamantly, oppose the budget reconciliation bill before us today. I say 
reluctantly because the Senate ought to use the reconciliation 
procedure for the purposes for which it was intended: making difficult 
choices to reduce spending. We have an obligation to bring our Nation's 
budget back into balance so we don't saddle future generations with 
endless debt and economic ruin. However, this budget fails on every 
level to achieve this goal. And even worse, the budget cuts that this 
bill does make fall squarely on lower-income Americans who can least 
afford them.
  One provision in this conference agreement that I support relates to 
extension of the Milk Income Lost Contract, MILC, program. MILC, which 
expired at the end of the last fiscal year, provides countercyclical 
support for the Nation's dairy sector. It is targeted. It is fair. It 
is essential. Moreover, it enjoys the President's support. It makes 
sense as part of the balanced Agriculture package in this bill.
  But even this one bright spot is not enough to save this bill or the 
budget plan of which it is a part. This bill is just one piece of a 
fraudulent, fiscally, and morally bankrupt budget which I cannot 
endorse. While the conference agreement we are now voting on cuts 
almost $40 billion in spending, waiting in the wings is a tax-cut bill 
that will likely cost more than $70 billion in tax cuts for the 
wealthy. The math simply doesn't add up. You can't pass a bill to cut 
spending by $40 billion and follow it up with a tax bill that will cost 
more than $70 billion and claim you are reducing the deficit it's 
simply untrue and irresponsible.
  I am willing to make the hard choices to bring our budget deficit 
down, but this conference agreement does not reflect our Nation's 
priorities. I cannot support taking vital services away from families 
that need them the most--and use those cuts as a fig leaf to hide tax 
breaks for those who need them the least.
  I am particularly disappointed that the House and Senate conference 
committee has come back with an agreement that is actually worse than 
the original Senate-passed bill. This so-called compromise causes more 
harm to low-income Americans while shielding powerful special 
interests, such as pharmaceutical companies and the managed care 
industry, from any sacrifice.
  This conference report achieves much of its savings by requiring low-
income Medicaid beneficiaries to pay more out-of-pocket for health 
care, and taking away health care services for which many beneficiaries 
are currently covered. Even more egregious, negotiators dropped a 
common-sense provision in the Senate-passed bill that would have saved 
billions of dollars by eliminating a slush fund for private insurance 
companies in the Medicare prescription drug program.
  This bill before us also fails our Nation's students who are 
struggling to pay for college. Student loans help to ensure that every 
student in America can choose higher education regardless of his or her 
financial or social background. These programs are an investment in our 
future and an investment in a diverse, educated population who will 
lead this country in the 21st century.
  At a time of rising tuition costs, this conference report would 
actually make college less affordable. It would establish a fixed 
interest rate instead of maintaining today's lower variable rates--
leaving the typical student borrower, who has $17,500 in student loan 
debt, having to pay up to an additional $5,800 in order to repay his or 
her college loans. It is simply unacceptable to make the largest raid 
on the student aid program in history at a time when millions of 
families are struggling to keep up with skyrocketing tuition costs. And 
it is inexcusable to do this in order to pay for tax breaks for the 
wealthiest in our society.
  I urge my colleagues to reject this bill--and the irresponsible and 
cruel budget of which it is a part. It does not reflect the right 
budget priorities, and it certainly does not reflect the values of 
American families. And adding insult to injury, these harmful cuts will 
not even help our country dig its way out of a large and growing budget 
deficit. This bill will soon be combined with tax breaks for the 
wealthiest Americans that exceed, by tens of billions of dollars, the 
value of the cuts themselves, and leave our fiscal situation in even 
worse shape than before. We should reject this reckless budget plan and 
instead work to make the responsible choices that the American people 
expect.


                        expiring tax provisions

  Mr. BAUCUS. Mr. President, the Senate is wrapping up legislative 
business shortly, but there are a few expiring tax provisions that have 
unfortunately not been extended yet. Chief among them is the protection 
from the onerous alternative minimum tax, or AMT. Both the higher 
exemption level and the protection for personal nonrefundable credits 
expire on December 31, and because of this, 17 million taxpayers face a 
tax increase next year if we fail to act. Further, a great number of 
U.S. businesses rely on important tax credits, such as the research and 
development tax credit and the work opportunity tax credit, both of 
which expire at the end of the year. This is not the first time this 
unfortunate situation has occurred, but it is my hope and intention 
that as soon as the Senate reconvenes next year, that we would take up 
these items and ensure that they are extended without any intervening 
lapse. Is that also the intention of my good friend from Iowa, Chairman 
Grassley?
  Mr. GRASSLEY. I thank you, Senator Baucus for raising the issue. 
Providing relief from the alternative minimum tax for millions of 
American families is critically important. The alternative minimum tax 
is badly in need of reform and I know he is anxious to work with me on 
that important task. Until such time, we must provide annual relief to 
prevent further expansion of that tax's reach. I was proud that we were 
able to accomplish that objective as part of the tax reconciliation 
bill that passed the Finance Committee and the Senate at the end of 
November. I remain committed to seeing that AMT relief enacted into 
law. In addition, we should act quickly on other expiring tax 
provisions to provide simplification and certainty for individuals and 
businesses, alike.
  Mr. BAUCUS. I thank the Chairman for his statement. I look forward to 
working with him to pass legislation as quickly as possible to provide 
a seamless extension of these provisions. This will ensure the fewest 
disruptions for taxpayers and administrative problems for the IRS.
  Mr. HATCH. Mr. President, I rise today to express my support for the 
budget reconciliation bill conference report. As I have stated here 
during the different stages of debate on this year's budget, the most 
notable thing about this reconciliation bill is not the size of the 
reduction of the spending growth

[[Page 30696]]

but rather the fact that it effectively takes the foot off the 
accelerator of spending growth and begins to touch on the brakes.
  But to get us there, the conferees had to make some hard choices. I 
will be frank--I would prefer that we pass a bill similar to the one 
the Senate passed in November. That bill met our budgetary goals, and 
it struck the right balance. The conference report changes some social 
programs, and I understand the concerns many throughout Utah have 
expressed about how these changes will impact care.
  That is why I spoke with Health and Human Services Secretary Michael 
Leavitt last night to discuss how this bill might affect social 
services in Utah. His assurances that the budget bill will not hurt our 
more vulnerable citizens were key to my decision to support S. 1932. 
Secretary Leavitt, who spent more than a decade serving as Utah's 
Governor, also committed to maintaining a watchful eye over 
implementation of this law to make sure that all Utahns' interests are 
protected.
  So despite this, my paramount concern was that we act now to curb the 
growth in entitlement spending because it threatens every one of our 
children and grandchildren with an unbearable tax burden. This 
conference report marks the beginning of a much needed change--a change 
that must occur if we are to gain control of the fiscal future of this 
country. As many of my colleagues have pointed out, this conference 
report, if enacted, will represent the first time since 1997 that we 
have been able to reduce spending growth in entitlement programs.
  The conference report before us includes a reduction in Federal 
outlays totaling almost $40 billion over the next 5 fiscal years. This, 
I am pleased to see, is nearly $5 billion more than the Senate version 
of the bill that we passed last month. While I am certainly not happy 
with all of the individual changes in the conference report, I do like 
its direction toward more savings growth.
  One reason I am so anxious to turn the comer in slowing spending 
growth on these entitlement programs is that the long-term projections 
for Federal spending on the three largest entitlement programs--Social 
Security, Medicare, and Medicaid--are truly alarming. In fact, a new 
report released last month by the Heritage Foundation states that fully 
funding these three programs will force Federal spending, as a share of 
GDP, to increase from today's level of 20 percent to almost 33 percent 
by 2050.
  Moreover, according to the report, the cost of these three programs 
alone could jump from 8.4 percent of GDP today to 18.9 percent of GDP 
by 2050. Failing to curb the growth in these programs leaves us with 
three very unattractive and dangerous alternatives. The first would be 
to raise taxes dramatically. As we know, such a move would choke off 
economic growth and leave us vulnerable to economic recessions which 
would exacerbate rather than help the problem.
  The second alternative is equally untenable--eliminate all other 
spending, eventually to include all discretionary spending. This, of 
course, is absurd since our defense, homeland security, and other vital 
spending is included in this category. The final alternative is to 
continue to allow the deficits to continue to build up as we try to 
keep on financing the growing debt with loans from other countries.
  Therefore, our only real choice is to begin to slow down the growth 
in these programs. This conference reports does start us on this path.
  However, I acknowledge this conference report is far from perfect. It 
retains some flaws from the Senate version of the bill, and it came 
back from conference with some new flaws.
  That being said, I believe this legislation is a step in the right 
direction. The Medicare provisions are more in line with the Senate 
version, and overall it targets Medicare's resources to better serve 
our seniors and disabled. The conference report ensures that 
beneficiaries don't lose their doctors because of budget cuts, and it 
expands services while making significant budget savings in noncritical 
areas.
  While I do not agree with everything in this bill, I am pleased that 
the legislation restores the stabilization fund for the Medicare 
Advantage regional PPOs and allows the Medicare Part B penalty to be 
waived for international missionaries. It also will expand the Program 
of All Inclusive Care for the Elderly, PACE, to beneficiaries living in 
rural areas. PACE offers alternative services to individuals who may 
need nursing home care but want to live at home if possible. This 
provision will provide another important choice for long-term care 
services for beneficiaries in rural areas. I filed all three of these 
policies as amendments when the Finance Committee considered the budget 
reconciliation bill.
  For Medicare beneficiaries this legislation encourages preventive 
care for seniors and the disabled. Some of the important provisions in 
this area include the following: preventive screening tests for 
abdominal aortic aneurysm; exemption for colorectal cancer screening 
tests from the Medicare deductible; a 1.6-percent update to the 
composite rate for end stage renal disease, ESRD, services in 2006; and 
an expansion of Medicare reimbursement for services at federally 
qualified health centers, FQHC, by allowing them to provide diabetes 
self-management training services and medical nutrition therapy 
services.
  In addition, this legislation makes needed reforms to home health 
payments in order to reduce disparities in provider payment and improve 
quality and transparency. First, the bill calls for a 1-year, 5-percent 
add-on payment for home health agencies that serve rural beneficiaries 
which will help many home health agencies in Utah. Rural home health 
agencies have much lower Medicare margins than urban home health 
agencies, and as a Senator who represents a primarily rural State, I 
believe that this needs to be addressed. The legislation freezes home 
health payments in 2006. In its March 2005 report to Congress, the 
Medicare Payment Advisory Commission recommended this freeze in home 
health payments because Medicare pays home health agencies 
approximately 17 percent more than it costs agencies to provide home 
health services. Finally, the legislation also provides financial 
incentives to home health agencies that report quality data beginning 
in 2007.
  One of the most important provisions in this legislation protects 
physicians from a 4.4-percent scheduled reduction beginning on January 
1, 2006 and, instead, allowed the 2005 payment rates to continue 
through 2006. I am still committed to fixing this problem once and for 
all, and I hope that we may accomplish this in 2006 since this issue 
will need to be addressed once again since physicians are estimated to 
continue to receive negative cuts of approximately 5 percent from 2006 
to 2011. Congress needs to enact a long-term solution as quickly as 
possible.
  With regard to therapy services, for years Congress has worked to 
find a permanent solution to the problem of overutilization of therapy 
services. Although I have consistently supported a moratorium on 
therapy caps, this bill leaves a January 2006 expiration of the 
moratorium in tact, and I am committed to continue encouraging my 
colleagues to reinstate this important moratorium.
  Now, let me turn to Medicaid. This has been a tremendously successful 
program but also a very costly one. We have a responsibility to address 
the dramatic growth in spending, but I was not happy that some of the 
key provisions have not been considered thoroughly by the Senate. Given 
expressions of concern voiced to me by my constituents, I only 
reluctantly give my support to the overall measure.
  I would have preferred the Senate language, which did not change the 
law with respect to beneficiary eligibility. That is why I will be 
working closely with Secretary Leavitt and other Cabinet-level 
officials to ensure Utah is treated fairly as this law is implemented.
  I would like to take a couple of minutes to share my thoughts on some 
aspects of the Medicaid portion of this bill. One issue that was 
debated in both the House and the Senate was the real

[[Page 30697]]

asset transfer rules. Under current law, Medicaid asset transfer rules 
are easily skirted--courses are offered to teach attorneys how to 
circumvent the law. This is plain wrong. The reforms in the Deficit 
Reduction Omnibus Reconciliation Act will make it more difficult for 
these transfers to occur and will allow more Medicaid resources to go 
to those who are in genuine need.
  Our current asset transfer policy is flawed. The policy not only 
allows for exploitation, it encourages it. The current statute has 
loopholes that allow wealthy seniors to qualify for Medicaid. Let me 
make one point clear--Medicaid exists to protect the most vulnerable, 
not the most wealthy.
  We need a fair, equitable policy. We need to protect the Medicaid 
Program for those who need it most. The legislation before us today 
addresses this situation by closing the loopholes in Medicaid. First, 
it prevents seniors from intentionally protecting their assets--people 
should not be allowed to hide their money in order to receive Medicaid 
nursing home coverage. Second, the bill changes the lookback period as 
well as the penalty period. Today, an older American can shelter half 
of his or her assets the day before applying for Medicaid.
  The conference report starts the penalty period clock when a senior 
applies for Medicaid, and the lookback period is changed from 3 years 
to 5 years. Currently, an older person will face a penalty if assets 
are transferred for the purposes of qualifying for Medicaid within 5 
years of applying for Medicaid. This provision significantly 
strengthens the asset transfer policy.
  The new law does not allow an individual with more than $500,000 in 
home equity to be able to qualify for Medicaid. It does provide State 
flexibility to increase the cap to $750,000. This is sound policy. 
Those with home equity over $500,000 should not take Medicaid money 
from those for whom the Medicaid Program was designed: low-income 
children, pregnant women, and individuals with disabilities. Also, the 
policy only applies to individuals. It does not apply to applicants who 
have a spouse or a dependent child at home. In theory, the State is 
supposed to be able to put a lien on that home anyway.
  Finally, seniors who have a hardship can apply for a waiver. The 
policy strengthens protections for seniors seeking an undue hardship 
waiver beyond current law or the Senate-passed version. I don't want to 
make it harder for people who really need the Government's help. But I 
do want to prevent seniors from intentionally taking advantage of the 
system. We need to protect Medicaid for those who need it most.
  I discussed this matter in great detail with the Utah Medicaid 
Director and was assured that, in my home State of Utah, individuals 
who are under suspicion for transferring assets inappropriately are 
always given the right to appeal if their request for Medicaid coverage 
is in question. I understand there are several States, such as Utah, 
who handle this matter in fair and thoughtful way.
  The budget reconciliation conference agreement also makes existing 
Federal reimbursement rates for drugs more accurate. It makes the 
average manufacturer price, AMP, of drugs available to the public so 
that pharmacists and wholesalers will get lower prices through greater 
competition, and excludes prompt pay discounts paid to wholesalers from 
the new pharmacy reimbursement rates.
  AMP is the average price at which manufacturers sell their drugs to 
wholesalers, but starting in 2007, the Federal Government will not pay 
more than 250 percent of the AMP of the lowest cost version of a 
generic drug. Under current law, the Federal upper limit is 150 percent 
of the lowest published price. The new payment rates are based on the 
existing rules governing generic drugs.
  The AMP data will also be made available to States and the public. 
This will create more transparency and competition in drug pricing. CBO 
has estimated that transparency will help reduce drug costs by hundreds 
of millions of dollars. Competition and transparency will bring prices 
down for consumers and protect the taxpayer from needless waste.
  The final bill also requires the Secretary to work with private 
companies that routinely monitor and track drug payment rates for 
private health plans. The Secretary will then be required to share this 
information, known as retail sales prices, with States. This will 
provide State officials with better information about actual market-
based prices, such as the rates paid by the Federal Employee Health 
Benefit Plans pay for prescription drugs. All of this information will 
provide greater accountability and ensure that Medicaid is paying 
pharmacists fairly for all drugs, and I am pleased that these 
provisions were included in the legislation.
  The Deficit Reduction Omnibus Reconciliation Act also contains 
important reforms that will provide Medicare beneficiaries, seniors, 
and the disabled with better options to manage their care. Under the 
Deficit Reduction Omnibus Reconciliation Act, States will now be able 
to provide home and community-based services as an optional benefit to 
seniors, the disabled, persons with a developmental disability, mental 
retardation, or a related condition. Coverage of these services will 
allow more individuals to receive better health care and other 
assistance. These services will also mean that more persons can remain 
in their homes, without needing to go into nursing homes. These reforms 
will help reduce spending by allowing individuals to receive the kinds 
of care they want, in the settings they prefer, at prices far below 
what Medicaid usually pays for nursing home care. In addition, no one 
who currently is receiving care through an institution will be forced 
to leave that institution in order to receive community-based care.
  The final conference report also will allow every State to establish 
a Long-Term Care Partnership Program. Long Term Care Partnership 
Programs allow individuals to protect a portion of their assets from 
Medicaid recoveries if they purchase long-term care insurance. 
Currently only four States (California, Connecticut, Indiana and New 
York) are allowed to have these programs. By expanding access to these 
programs, the new law will help create incentives for people to 
purchase long term-care insurance. Encouraging the purchase of long-
term care insurance will mean that more people will be able to pay for 
their own nursing care, and fewer will have to rely on Medicaid as a 
safety net to meet their long-term care needs.
  Another area that is addressed in this legislation is Medicaid 
beneficiary cost-sharing. There is a lot of misinformation about this 
provision, and I would like to explain this provision in more detail. 
Under current law, States may require cost-sharing but it is not 
enforceable. In other words, if a beneficiary does not pay his or her 
copayment, the health care provider is forced to absorb the 
beneficiary's copayment. This is why we have such difficulty 
encouraging providers to participate in the Medicaid Program. Many will 
not, and all Medicaid beneficiaries suffer as a result.
  I believe that the conference report includes reasonable policy that 
allows States to ask beneficiaries over the poverty line to participate 
in the cost of their own care. Let me make one clarification--the 
House-passed legislation required States to impose cost-share 
requirements on beneficiaries with no income. I do not agree with that 
policy, and it is included in this bill.
  A beneficiary who is above the poverty line may pay up to percent of 
his or her monthly income to the cost of their care, but that is only 
if the State decides to impose additional cost-sharing requirements. 
And let me assure my colleagues that no state is required to impose 
cost-sharing requirements on these beneficiaries. I will add that even 
the National Governors Association support reasonable responsible cost-
sharing. In fact, Governors testified before the Senate Finance 
Committee earlier this year and told committee members that they 
support this policy.
  I am aware that substantial concerns have been raised about the 
provision permitting States to provide Medicaid

[[Page 30698]]

coverage to children under age 19 through ``benchmark'' or ``benchmark 
equivalent'' coverage. In short, some fear this language might abrogate 
the right of those children to receive Early Periodic Screening, 
Diagnostic and Testing, EPSDT, benefits.
  For the benefit of my colleagues, I will ask unanimous consent that a 
statement just issued by Centers for Medicare and Medicaid Services 
Administration, Mark McClellan, M.D., Ph.D., be printed in the Record
  As Dr. McClellan has made quite clear, children through age 18 will 
continue to receive EPSDT. It is my hope this assurance will make many 
child advocates more comfortable with this bill.
  With regard to the welfare portion of the conference report, I was 
disappointed to see Congress's efforts to reduce the budget contain 
limitations on welfare, childcare, and child support policy. These 
vital programs should have been reauthorized through the normal 
legislative process, not tucked away in a protected budget 
reconciliation bill which is designed to reduce the Federal deficit. 
The welfare, childcare, and child support language included in the 
budget reconciliation bill has almost nothing to do with reducing the 
deficit and everything to do with changing the rules of these important 
programs without proper legislative scrutiny or debate.
  While I am completely frustrated with the Senate's inability to 
reauthorize the Temporary Assistance for Needy Families, TANF, 
legislation using the normal legislative process, I do not believe it 
is in the best interest of the participants of these programs to 
include sweeping policy changes in a bill designed to reduce the 
deficit.
  However, I am appreciative of Chairman Grassley's efforts to ensure 
that childcare funding was increased. Although the increase is limited 
to $1 billion over the next 5 years, I am hopeful we will be able to 
secure even larger increases in childcare funding in the near future. 
Providing quality childcare to low-income families is crucial when we 
are scrambling to help families become self-sufficient, and I am 
committed to ensuring the Federal Government continues to help these 
children and families.
  As well, I am appreciative of the chairman's efforts to secure 3 
years of supplement TANF grants. The State of Utah has been a large 
beneficiary of these grants, and as we work to meet the stricter TANF 
work requirements outlined in this bill, we will continue to have 
supplemental grants from HHS to help us train and prepare our TANF 
recipients.
  Now I would like to discuss the portion of the deficit reduction 
conference report that addresses the Continued Dumping and Subsidy 
Offset Act, which is commonly refereed to as the Byrd amendment. The 
Byrd amendment amended the Tariff Act of 1930 to require that duties, 
collected as a result of antidumping and countervailing duty laws, be 
distributed to the affected entities. At the time it was introduced, I 
supported this measure as a commonsense proposal.
  However, since that time, the World Trade Organization has allowed 
our trading partners to impose tariffs on various U.S. goods, and the 
Byrd amendment has gone from a commonsense solution to an impediment to 
U.S. companies' ability to sell their goods abroad.
  First, I must reemphasize my strong support for laws that not only 
make trade free but fair. Accordingly, I have spoken directly to the 
Secretary of Commerce, Carlos Gutierrez, and United States Trade 
Representative, Ambassador Rob Portman, about the vital importance of 
vigorous enforcement of our trade laws.
  Though I have never and will never advocate modifying our laws 
because of outside pressure, American companies and employees in Utah 
and all over the country have come to me and asked for my help in 
repealing the Byrd amendment. Currently, the United States is 
negotiating, as part of the Doha Round talks, a new trade regime in 
which international markets would become even more open to U.S. goods 
and services. If completely successful, the Institute for International 
Economics estimates that American households could gain as much as an 
additional $5,000 per year. If today's international trade barriers 
were reduced by just a third, the average American family of four would 
enjoy $2,500 per year in additional income, according to a University 
of Michigan study.
  Freer trade helps more than just Americans. The poorest countries 
stand to gain considerably. According to a Center for Global 
Development study, a successful conclusion to the Doha Round would 
result in an additional $200 billion flowing to developing nations, 
reducing poverty and economic hardship. Not to mention, the Institute 
for International Economics estimates that trade liberalization over 
the last 50 years has brought an additional $10,000 per year to the 
typical American household.
  In order to achieve our objectives in the Doha Round, many of our 
trading partners will be required to make substantial concessions on 
import duties and subsidies. However, those who oppose our noble goals 
could use our refusal to repeal the Byrd amendment as a means to hinder 
our negotiating strategy. Simply put, these opponents will state that 
if the United States cannot follow the existing rules of trade, rules 
which our Nation largely crafted and implemented, how can we be trusted 
if most trade barriers are repealed?
  Therefore, as I said before, I admire the Byrd amendment's 
commonsense approach, but I believe under the present circumstances the 
time has come for this legislation to be modified, in order to 
strengthen the ability of our Nation to achieve the larger goal of 
bringing down foreign barriers to U.S. goods and services.
  Therefore, I support the changes incorporated in the Deficit 
Reduction Conference Report. This legislation achieves a fair 
compromise by repealing the Byrd amendment; however, at the same it 
would permit Byrd amendment payments to U.S. companies through October 
1, 2007. This should provide an adequate time for companies to plan for 
the future while preserving a strong negotiating position for U.S. 
interests.
  Despite its shortcomings in some areas, this reconciliation package 
contains several very important provisions in the intellectual property 
area that benefit the Nation and my home State of Utah.
  I am pleased that a hard date for the transition from analog to 
digital television was included in the final package. This important 
provision will free up crucial radio spectrum that is currently 
occupied by broadcaster's analog television signals. Although the 
digital transition inevitably resolves a number of difficult issues, it 
also has several important benefits. It is my understanding that over 
$7 billion of the proceeds from the eventual auction of spectrum 
licenses is expected to be used for deficit reduction. Perhaps more 
importantly, the transition will provide both the necessary funding and 
available spectrum for public safety officials and emergency personnel 
across the country to upgrade their communications infrastructure. And, 
finally, a portion of the anticipated proceeds will be used for various 
programs intended to minimize any negative financial impact on 
consumers, rural broadcasters, and others affected by the transition.
  I am particularly pleased that a provision setting aside a small 
fraction of the proceeds to help fund the upgrade of television 
translator stations was included. This provision responds to a serious 
concern that I have had regarding the financial viability of upgrading 
the network of translator stations across Utah that are used to serve 
many of the rural communities in my home State. In the context of the 
debate over the digital transition, it came to my attention that 
upgrading these translators, which retransmit television signals to 
communities beyond the reach of the primary broadcast towers, would 
impose a substantial--and disproportionate--financial burden on 
broadcasters that were primarily located in mountainous western States. 
Due to the vast area covered by the Salt Lake City television market 
and the high

[[Page 30699]]

concentration of translator stations in the State, there was a 
substantial concern that upgrading the cost of these translators would 
be prohibitive. The approach taken in the reconciliation package is 
similar to the proposal contained in S. 1600, which I cosponsored with 
Senator Snowe, and I would like to take this opportunity to thank 
Senators Snowe, Stevens, and Inouye--and their respective staffs--for 
their help on this issue.
  As with other portions of this bill, there are aspects to the 
education provisions I support and others I don't. However, I am 
pleased overall with the significant amount of savings while still 
allowing for spending on important programs.
  The major area of savings comes from the reduction in corporate 
lender profits on student loans, in the form of a requirement that 
lenders rebate the Federal Government the difference between the 
borrower rate and the lender rate when the borrower rate exceeds the 
lender rate. In addition, guaranty agencies are required to deposit 1 
percent of their collections in the Federal Reserve Fund; there is a 
reduction of borrower origination fees by .50 percent for each award, 
and there is an elimination of the recycling of 9.5 percent loans.
  Even with these much needed savings, I disagreed with fixing the 
interest rate for undergraduate and graduate nonconsolidation borrowing 
at 6.8 percent, preferring a choice of a fixed or variable rate.
  However, I am very pleased with increasing grant aid for students 
studying math and science, named SMART grants. I was involved in the 
original creation of the SMART Grants Program through my work on the 
HELP Committee. These grants will give first year students awards of 
$700 and $1,300 for second year students, provided they have completed 
rigorous programs at the secondary level. Third and fourth year 
students may receive up to $4,000 in grant aid if they major in math, 
science, or foreign language.
  I know these programs will give Utah students, particularly those of 
low or moderate means, greater access to a college education and will 
boost our local and national economy as we seek to meet the demands of 
the 21st century workforce.
  Again, this legislation is not perfect. It is not a perfect answer to 
several of the social policy problems that confront our Nation. It is 
not a perfect answer to the growing Federal budget deficit either. It 
is not Draconian and it is not mean-hearted. This deficit reduction 
conference report is merely a good first step in stemming the tide of 
red ink that runs down the pages of the Federal budget, stealing 
taxpayer dollars to service a monstrous Federal debt and robbing our 
children of a safe and secure financial future. For these important and 
self evident reasons, I support this bill.
  I ask unanimous consent the statement issued by the Centers for 
Medicare and Medicaid Services Administration to which I referred 
earlier be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

Statement by Mark B. McClellan, M.D., Ph.D, Administrator, Centers for 
                      Medicare & Medicaid Services

       Questions have been raised about the new section 1937 of 
     the Social Security Act (SSA) (as added by the Deficit 
     Reduction Act of 2005) that permits states to provide 
     Medicaid benefits to children through benchmark coverage or 
     benchmark equivalent coverage. If a state chooses to exercise 
     this option, the specific issue has been raised as to whether 
     children under 19 will still be entitled to receive EPSDT 
     benefits in addition to the benefits provided by the 
     benchmark coverage or benchmark equivalent coverage. The 
     short answer is: children under 19 will receive EPSDT 
     benefits.
       After a careful review, including consultation with the 
     Office of General Counsel, CMS has determined that children 
     under 19 will still be entitled to receive EPSDT benefits if 
     enrolled in benchmark coverage or benchmark equivalent 
     coverage under the new section 1937. CMS will review each 
     State plan amendment (SPA) submitted under the new section 
     1937 and will not approve any SPA that does not include the 
     provision of EPSDT services for children under 19 as defined 
     in section 1905(r) of the SSA.
       In the case of children under the age of 19, new section 
     1937(a)(1) is clear that a state may exercise the option to 
     provide Medicaid benefits through enrollment in coverage that 
     at a minimum has two parts. The first part of the coverage 
     will be benchmark coverage or benchmark equivalent coverage, 
     as required by subsection (a)(1)(A)(i), and the second part 
     of the coverage will be wrap-around coverage of EPDST 
     services as defined in section 1905(r) of the SSA, as 
     required by subsection (a)(1)(A)(ii). A State cannot exercise 
     the option under section 1937 with respect to children under 
     19 if EPSDT services are not included in the total coverage 
     provided to such children.
       Subparagraph (C) of section 1937(a)(1) permits states to 
     also add wrap-around or additional benefits. In the case of 
     children under 19, wrap-around or additional benefits that a 
     state could choose to provide under subparagraph (C) must be 
     a benefit in addition to the benchmark coverage or benchmark 
     equivalent coverage and the EPSDT services that the state is 
     already required to provide under subparagraph (A) of that 
     section. Subparagraph (C) does not in any way give a state 
     the flexibility to fail to provide the EPSDT services 
     required by subparagraph (A)(ii) of section 1937(a)(1).

  Mr. BINGAMAN. Mr. President, across the country, more than 6 million 
children live with relatives, and of those, 4.5 million live with 
grandparents. A majority of relatives providing care for children are 
not part of the child welfare system. In fact, only a quarter of all 
relatives caring for a child receive either a foster care payment or 
another source of payment. Most relatives do not receive any Federal 
financial support, and sadly, nearly 20 percent of all grandparents 
raising their grandchildren live in poverty.
  Unfortunately, the conference agreement on the Deficit Reduction Act 
of 2005 severely cuts Federal assistance to foster care funding and 
makes it significantly harder for relatives to provide care for a 
child. I believe this is a step in the wrong direction, and I oppose 
these cuts.
  Kinship care is an important option for permanency for children in 
the child welfare system and often appropriate when adoption is not 
possible. Subsidized guardianship makes it possible for a relative to 
step in and care for a child. In my State of New Mexico, subsidized 
guardianship is available, and nearly 10 percent of children live with 
nonparent relatives. Grandparents and other relative caregivers are 
often the best chance for a loving and stable childhood for a child in 
their care, and it is important that we acknowledge their hard work and 
dedication.
  I commend grandparents and other relatives who step forward to care 
for a child. Their efforts help keep children out of foster care and 
provide safe, permanent and stable homes, often at great personal 
sacrifice. Supportive programs like subsidized guardianship allow 
caring relatives to provide care that they may not otherwise be able to 
give, and help children exit foster care into the care of nurturing 
relatives. I would like to express my gratitude and appreciation for 
the invaluable care provided by relatives for children in need.
  Mr. KOHL. Mr. President, I join many of my colleagues today in 
expressing sincere disappointment in the conference report to the 
budget reconciliation legislation. I could certainly echo the 
sentiments that we have already heard regarding the Medicaid and TANF 
provisions included in this conference report--two sections that will 
directly penalize hard working families, and prevent many from moving 
towards self-sufficiency. Or I could repeat the comments that this 
report represents not a compromise between the House and Senate bills, 
but an abuse of power that will harm rather than help, millions of 
families.
  While I share my colleagues' dissatisfaction with this conference 
report, I would like to highlight a section that may have been 
overlooked. The conferees made interesting decisions in the area of 
child support--they chose to include provisions that would allow States 
to ``pass through'' child support payments to families, provisions that 
I have fought to pass for several years. Yet in the same conference 
report, they chose to make deep cuts to the Child Support Enforcement 
Program, cuts that may inhibit States ability from actually passing 
through those child support dollars.
  I believe the inclusion of the child support ``pass through'' 
provisions is

[[Page 30700]]

one of the few successes of this legislation. These provisions are 
similar to those included in S. 321, the Child Support Distribution 
Act. Senator Snowe and I have worked together for the past several 
years on this legislation, which allows States to ``pass through'' more 
child support collections to the families that need them, rather than 
send those dollars to the Federal Government.
  Specifically, the conference report has three major provisions 
related to the Child Support Distribution Act. The conference report 
eliminates pre-assistance assignment rules--families applying for the 
Temporary Assistance to Needy Families program would no longer be 
required to turn over their right to child support that accrues before 
they are receiving assistance. In addition, the Conference Report gives 
states the option to distribute more child support to families who have 
left assistance. Finally, for families currently receiving assistance, 
it allows States to let families keep more child support, rather than 
sending it to the Federal Government.
  These changes were included in the bipartisan, Senate Finance 
Committee-passed welfare reauthorization legislation. It is 
unfortunate, given the wide support for these provisions, that the cuts 
contained in this bill will place such a financial burden on the States 
that they will unlikely be able to actually pass through the funding to 
the families.
  The original House bill included a 40-percent cut to Federal child 
support funding. Thus, it would seem that the $5 billion cut included 
in the conference report before us is somehow less significant. This 
could not be further from the truth. According to the Congressional 
Budget Office, this conference report would mean that more than $8 
billion in child support payments would go uncollected over the next 10 
years. I will say that again so that my colleagues are clear: $8 
billion in funds will not go to hardworking, single parent families; $8 
billion that is owed to these families, that they rely on to meet their 
children's needs.
  These payments would go uncollected because the conference report 
retains a provision that 74 of my colleagues voted against last week. I 
offered a motion to instruct that asked conferees to reject the 
provisions in the House bill that would restrict the ability of States 
to draw down matching funds on child support incentive payments. In 
addition, I sent a letter to conferees that was signed by 49 Senators 
asking that this restriction not be included in the conference report.
  I have heard some of my colleagues argue that this is simply closing 
a loophole, that this funding source was not what Congress intended. I 
say to my colleagues that this is not the case. The reforms made to the 
child support system in 1998 created the performance-based system that 
has been proven to be so successful. Since this system was put in 
place, States have doubled their collection rates and have 
significantly improved their performance on every other measure.
  The changes in this conference report would undo these successes. In 
fact, the cuts will actually drive up costs in other programs, such as 
TANF, food stamps, and Medicaid. That is why these cuts are opposed by 
the National Governors Association, the National Association of 
Attorneys General, and the National Conference of State Legislatures, 
among others.
  It is highly ironic that the conference report gives States the 
option to pass through more child support to families that deserve it, 
while also passing on a financial burden that will directly restrict 
their ability to do so. This bill will hurt millions of families, and 
it should have been defeated.
  Mr. LEVIN. Mr. President, we all know that times have been getting 
tougher for low- and middle-income working families. Compared to 5 
years ago, more Americans now live in poverty, the median household 
income has dropped, and more live without the security of health 
insurance. Clearly, Congress should be adopting budget policies aimed 
at improving these troubling trends. But instead, this misguided budget 
reconciliation conference report would make things worse.
  This legislation takes funds from important programs like Medicaid, 
student loans, child support enforcement, foster care assistance, and 
Supplemental Security Income for the elderly and disabled poor. The 
stated purpose of these nearly $40 billion in cuts and harmful program 
changes is to trim the deficit, but we all know that these savings will 
not ultimately be used toward that goal; they are designed to pave the 
way for the $50 billion to $100 billion in new tax cuts that the 
majority will attempt to push through early next year. We should not be 
making cuts to vital services simply so the President and the majority 
can finance more tax cuts that mainly benefit the wealthiest among us.
  Under this bill, families that rely on Medicaid will face significant 
increases in the costs for access to health care services and 
medications, which will lead many of our most vulnerable citizens to 
forgo needed care. The Congressional Budget Office, CBO, estimates that 
the increases in Medicaid copayments and premiums and the reductions in 
Medicaid benefits will total $16 billion over the next 10 years. Also 
of particular concern to Michigan is a provision that eliminates the 
State's provider managed care assessment. When that provision goes into 
effect, it will cost Michigan $280 million per year.
  The conference agreement also makes things worse for those who use 
student loans. Despite already soaring education costs, this conference 
report cuts funding for student loan programs by $12.7 billion over 5 
years, nearly one-third of the total cuts imposed by this legislation. 
Most of these reductions are achieved by increasing interest rates and 
fees paid by students and parents. In the fight for global 
competitiveness, a highly educated workforce is one of America's best 
assets. It is shortsighted to cut investments in education.
  This legislation will make also substantial changes to the Temporary 
Assistance for Needy Families, TANF, program. The changes include 
imposing harsh new work requirements without providing nearly enough 
childcare assistance. The CBO estimates that States will need over $12 
billion in new funding over the next 5 years to maintain current 
childcare programs and meet the new work requirements by increasing 
participation in welfare-to-work programs. The conference agreement, 
however, includes just $1 billion in childcare funding over the next 5 
years. The shortfall means that many States will need to scale back 
childcare slots for poor working families not on welfare, forcing 
families to choose between lower quality, less stable childcare or not 
working at all.
  Unfortunately, this conference agreement also contains a House 
provision that would repeal the Continued Dumping and Subsidy Offset 
Act, CDSOA, of 2000, despite an overwhelming 71 to 20 Senate vote 
instructing conferees to reject the provision. The CDSOA was enacted in 
2000 to enable U.S. businesses and workers to survive in the face of 
continued unfair trade by allowing Customs to distribute duties 
collected on unfairly traded imports to those U.S. companies and 
workers injured by continued dumped and unfairly subsidized imports. I 
do not believe we should repeal this law, nor do a bipartisan majority 
of Senators.
  Additionally, under this bill, Federal funding for child support 
enforcement will be cut about $1.5 billion over the next 5 years. As a 
result, the CBO estimates that $2.9 billion in child support owed to 
children will go uncollected over 5 years.
  The hardships that will be caused by this legislation are significant 
and broad-reaching. Yet the three-part budget reconciliation package 
that includes this conference report will not even make a dent in our 
deficits. Both the House and Senate have passed tax reconciliation 
bills that cut revenues far more than this bill cuts spending. As most 
grade school math students can tell you, when you bring in less money 
than you spend, you will end up in trouble. And that is where the 
President's tax policies have put us today.
  We have got over $8 trillion in debt. Financing further tax cuts with 
debt is

[[Page 30701]]

simply fiscally irresponsible. In the most recent fiscal year, we spent 
over $350 billion just to pay the interest on our debt. That is 14 
percent of the Federal Government's spending last year. We simply 
cannot afford to continue building up this massive debt.
  One of a few positive aspects about this conference report is the 
inclusion of an extension of the Milk Income Loss Compensation, MILC, 
Program, which was set to expire this year. Milk is Michigan's largest 
agricultural commodity, and the MILC Program has been essential in 
preserving our dairy farms in times of dairy price declines.
  Mr. President, the reconciliation process is supposed to bring 
Government programs and tax policies passed over the years in line with 
the broader budgetary goals of the Congress. It should be a fiscal 
sanity check, making sure our policies support our goals. At a time 
when one in six American children lives in poverty, our budget goals 
should be to help, not hurt, the neediest among us. Our goals should 
also focus on reducing the mountain of debt that we are leaving for our 
children and grandchildren. Unfortunately, by cutting vital programs to 
finance tax cuts that mainly benefit the wealthy, this legislation 
moves us in the wrong direction on both counts. I will oppose this 
conference report.
  Mr. ALEXANDER. Mr. President, today the Senate approved the Deficit 
Reduction Omnibus Reconciliation Act of 2005. I voted in favor of this 
bill because it is the first comprehensive deficit reduction 
legislation approved by the Senate since 1997, and it will save $39.7 
billion over the next 5 years. This is an important first step toward 
containing the unsustainable growth of entitlement programs and putting 
us on the road to a balanced budget.
  None of us is happy about everything that is included in a big bill 
like this. One area in which I am disappointed is language 
reauthorizing the welfare reform program, also known as Temporary 
Assistance for Needy Families, TANF. This is a program that needs to be 
reauthorized on a more permanent basis, instead of the temporary 
extensions that have been approved year after year.
  In thinking about reauthorization of welfare reform, I believe three 
things need to happen. First, States need more authority to decide what 
will work best in their State. Second, States need more flexibility to 
allow educational activities to count toward work hours. I have been 
told by TANF offices in Tennessee that if they can get TANF recipients 
into school, they do not see them on the welfare rolls again. Third, we 
need more money for child care. If the TANF program is going to require 
poor parents--including single mothers--to work, these parents must 
have safe child care for their children. Last year, I supported--and 
the Senate passed by a vote of 78 to 20--an amendment to increase child 
care funding by $6 billion. This bill only includes a $1 billion 
increase for child care.
  Unfortunately, the welfare reform language included in the deficit 
reduction bill falls short in all three of these areas. I would have 
preferred that the Senate hold a full debate on TANF reauthorization, 
with Senators able to offer amendments. However, I understand that the 
Senate conferees felt that the deficit reduction bill represented the 
best chance of reauthorization after years of delay and temporary 
extensions.
  In the coming year, I look forward to working with Chairman Grassley 
and other colleagues to craft legislation that addresses some of these 
shortcomings and continues the successful transformation of the TANF 
program that began with enactment of the landmark welfare reform law in 
1996.
  Mr. FEINGOLD. Mr. President, this budget reconciliation package that 
arrived from the House-Senate conference will leave our country's 
budget and the American people in a far worse state of affairs than 
they are today. I am disappointed that congressional leaders have 
chosen to use the budget reconciliation process to achieve 
controversial goals that will make life harder for those Americans in 
greatest need of help, and I will oppose this legislation.
  As I stated when this bill passed the Senate, using reconciliation to 
push through legislation that will worsen our budget deficit and add 
billions more to the mountain of debt our children and grandchildren 
will have to pay is a perversion of a process designed to expedite 
measures to reduce the deficit.
  Reconciliation was intended to help facilitate the enactment of 
measures to reduce the deficit and therefore secure the Nation's 
financial stability. It is ironic that it should be used to enact 
measures that not only aggravate our budget deficits and increase our 
massive debt, but also makes cuts to programs that help many Americans 
maintain their financial security.
  There are substantial and unprecedented changes to the Medicaid 
program included in this bill. Rather than cut the wasteful, $10 
billion Medicare Advantage slush fund that gives superfluous payments 
to insurance companies, conferees have chosen to cut benefits and shift 
costs onto the poorest in America. Usage of Medicaid is expected to 
drop significantly, forcing beneficiaries to become sicker and 
eventually utilize emergency room care. In fact, the Congressional 
Budget Office estimates that 17 million people will pay more for health 
services under Medicaid over 10 years, half of whom would be children. 
Is this how we want to take care of the needy in our society? This will 
be harmful not only to those in need of health care, but also to our 
hospitals, which will be burdened with more patients who are unable to 
pay. This shift of health care costs from the Government to Medicaid 
beneficiaries will only cost our hospitals and taxpayers more money in 
the long run--and this is being done under the guise of saving money 
and balancing our budget.
  Perhaps the most worrying changes to our health care programs are the 
statutory changes to Medicaid and Medicare. This conference agreement 
institutes systemic limitations on services that will have effects for 
decades to come. Included in the bill are provisions that will force 
unlimited charges onto the poor for their health care where previously 
there were protections for those in near poverty. As if loss of these 
protections were not enough, this will also allow health care providers 
to deny health care to people too poor to afford these charges.
  This legislation also freezes Medicare payments to home health care 
providers. Home health is the most cost-efficient and comfortable way 
to provide long term care. By freezing home health care payments, 
access will drop, and many of the sickest in our country will be denied 
this option.
  In addition to cutting into people's health care, this report cuts 
into welfare and child care funding on which many American families 
depend. Last week, the Senate passed a motion to instruct conferees 
that urged welfare reauthorization to be removed from the budget 
package. I voted for this motion, which passed overwhelmingly. Despite 
the success, the House chose to include welfare reauthorization anyway. 
This was done under the radar in a move that was largely unseen by 
people who will be affected by the changes. And the changes are 
significant. This reauthorization represents the largest change in 
welfare policy since 1996, and it will impose expensive new work 
requirements on states with no additional funding provided. So those on 
welfare will be working more hours, and what will they do with their 
children? Child care funds have been cut by $1 billion in this bill. 
This is $7.4 billion less than CBO estimates to be the cost to states 
of meeting the new work requirements, and more than $11 billion less 
than what states will need to ensure that their current child care 
programs can stay afloat through all the additional changes in the 
budget package. These are unconscionable cuts to programs that serve as 
safety nets for the most vulnerable.
  I am also deeply troubled that almost one-third of the savings in the 
budget reconciliation bill come at the expense of the student loan 
program. I regret that a portion of the savings within the student loan 
program is achieved by increasing fees paid by student and parent 
borrowers. While I may support

[[Page 30702]]

provisions in this agreement that eliminate unnecessary subsidies for 
lenders, the money saved through this elimination should go toward 
making college more affordable and increase grant aid such as Pell 
Grants. I regret that this money is not funneled back towards increased 
aid for America's students.
  This agreement also increases the maximum subsidized loan amounts 
that first and second year students can borrow and increases the 
maximum amount of unsubsidized loans that graduate students can borrow. 
While increasing loan limits will help students cover the costs of 
their education, I find it disheartening that we as a Congress are 
pushing more of a financial burden on these students as tuition rates 
around the country increase. Rather than cutting money from the student 
loan program and requiring students to borrow more and pay more in 
fees, we should instead be working to find ways to make a college 
education affordable to all students.
  While I welcome the addition of some new grant aid for Pell-eligible 
students, I have heard concerns from my constituents in Wisconsin that 
the requirements accompanying the increased aid will make the program 
difficult to administer and could exclude many of the Pell-eligible 
students from receiving this aid. One requirement for freshman and 
sophomore Pell-eligible students to receive this aid is the condition 
that the student must have completed a ``rigorous secondary school 
program''. Under the agreement, the Secretary of Education determines 
whether or not the student has fulfilled that requirement. What is not 
clear, however, is how the Secretary will actually measure which 
programs are deemed rigorous and therefore which students will receive 
the aid. I am concerned that students who attend disadvantaged schools 
will not be eligible for the aid under the wording in this agreement.
  Another troubling aspect of the new grant aid is the requirement that 
students attend school full-time during their first year of college. 
This provision would eliminate many Pell-eligible students who attend 
school part-time and work part-time. Again, I think this sends the 
wrong message to our youth who are considering attending college and 
attempting to finance their education.
  We can do better for young Americans in Wisconsin and around the 
nation by working to increase aid in an inclusive manner and working to 
make a college education more affordable to all. These cuts to the 
student loan program are another reason that I will vote to oppose this 
conference agreement.
  If there is a silver lining to this sham of a budget reconciliation 
package, it is the conference committee's decision to retain the 
Senate's extension of the Milk Income Loss Contract, MILC, program and 
reject cuts to Food Stamps. Even this support for these two vital 
programs is tempered by short-sighted cuts to other agriculture 
programs such as the limits placed on conservation programs that assist 
farmers in their stewardship of the land.
  I will not support using reconciliation to enact harmful, 
controversial policies that will worsen budget deficits and increase 
the debt. No matter how many pieces you slice it into, the 
reconciliation instruction in the budget resolution will leave us with 
bigger deficits, not smaller ones.
  This budget sends the message that those living in poverty are 
Congress' lowest priority: and this reveals a profound lack of empathy 
and kindness for the most defenseless in our society. When Congress and 
the White House become serious about cleaning up the fiscal mess they 
created, and when they are willing to spread the burden of that clean 
up across all programs--defense and non-defense discretionary programs, 
entitlements, and the spending done through the Tax Code--I am ready to 
help. But so long as we see reconciliation measures that cut aid to 
those most vulnerable, and cuts to Government spending is done on the 
backs of the poor, I must oppose them.
  Mr. SPECTER. On a close call I have decided to vote for the 
conference report on the reconciliation bill because the benefits 
slightly outweigh the disadvantages in evaluating the tradeoffs.
  I start with the proposition that the savings of $40 billion over 5 
years in the conference report is closer to the $35 billion passed by 
the Senate than to the $50 billion cuts passed by the House of 
Representatives. This deficit reduction amounts to less than one-half 
of 1 percent of total Federal spending, an estimated $13.8 trillion 
over the next 5 years.
  Medicaid was a special concern where the conference report of a $4.8 
billion reduction was much closer to the Senate figure of $4.3 billion 
than to the House cut of $11 billion. While I would have preferred 
targeting different reductions, the conference report does give the 
States flexibility in the use of Medicaid funds so that the States will 
be in a position to ameliorate hardships resulting from the proposed 
reductions.
  It was important that the conference report included $1 billion in 
additional budget authority in fiscal year '07 for the Low Income Home 
Energy Assistance Program, LIHEAP, which the Congressional Budget 
Office estimates will result in $625 million in outlays as we approach 
the fiscal year 07 winter season which is likely to be very harsh. It 
is anticipated that there will be an additional $2 billion for fiscal 
year '06 added to LIHEAP in the Defense appropriations bill although 
that is not a certainty because the Senate will not act on that bill 
until after the vote on reconciliation.
  I am further encouraged by the elimination of some $700 million on 
cuts for the Food Stamp Program and the rejection of the House passed 
$5 billion reduction in child support enforcement to aid local 
governments which finally came in at a $1.5 billion cut.
  After visiting many first responders around the State, I was pleased 
to see the reconciliation bill add $1 billion for first responders who 
will be very important in any prospective emergency situation.
  I was also pleased to see the one year moratorium on inpatient 
rehabilitation hospital provisions which require 50 percent of Medicare 
beneficiaries to meet certain ailment criteria for 2 years.
  I was opposed to the repeal of the Continued Dumping and Subsidiary 
Offset Act, CDSOA, program but there was finally a compromise to give 
the program 2 more years.
  Of special significance to Pennsylvania was the addition of $998 
million for the Milk Income Loss Compensation, MILC, Program which is 
very important to the financial status of nearly 9,000 dairy farms in 
the State.
  In making judgments on legislation like the reconciliation bill, we 
are really faced with a Hobson's choice. None of the options is 
desirable. We are constantly choosing among the lesser of the evils.
  In the overall context of discretionary spending which is involved in 
the reconciliation bill and in the appropriations bill for Labor, 
Health and Human Services and Education, there are palpably 
insufficient funds available for such domestic programs. As chairman of 
the Subcommittee on Labor, Health and Human Services and Education, it 
was my responsibility to structure legislation that came within the 
allocations approved by the Budget Committee and Appropriations 
Committee.
  With a 1-percent cut at the outset and another projected one percent 
across the board cut and the failure to keep up with inflation, the 
subcommittee sustained a cut in real dollars approaching $7 billion. At 
the conference on the bill for the Departments of Labor, Health and 
Human Services, and Education, I said publicly that I would not support 
the bill unless my vote was indispensable for its passage. If the bill 
is not passed, we face the alternative of a continuing resolution which 
will be $3 billion less than the bill, so there is no alternative, as a 
matter of basic arithmetic, but to support the bill.
  I have already put my Senate colleagues on notice, including the 
leadership, that I will not support next year's budget unless there is 
adequate funding for domestic discretionary programs

[[Page 30703]]

with special emphasis on Labor, Health and Human Services, and 
Education. I will also work to correct any inequities or hardships 
which result from the reconciliation bill.
  Mr. WYDEN. Mr. President, I cannot support the devastating cuts to 
health care that are in the budget reconciliation conference report. I 
have fought to slow health care spending, but that is not what is in 
this conference report. This conference report slashes and burns the 
health care countryside like the barbarians descending on Rome. This 
conference report is not about reform or creating a decent health 
system for the poor and for seniors--it is about dismantling the system 
as we know it.
  For starters, the Senate-passed bill increased drug rebates so that 
Medicaid beneficiaries would get better prices on their drugs. The 
Senate bill increased the minimum rebates that drug manufacturers are 
required to pay the Medicaid Program for drugs. The Senate package also 
contained a provision that would have expanded the rebate to include 
managed care drug plans. None of these improvements, which would have 
produced savings of $10.5 billion over 10 years and have helped ensure 
Medicaid participants get better prescription drug prices, is included 
in the conference report.
  The conference report reopens the Medicare Modernization Act, MMA,--
not to make improvements in the drug benefit but to push those with a 
little more income to pay higher Part B premiums sooner. It seems to me 
that given the confusion, the unhappiness, the need for more and better 
counseling for seniors on their choices, and the need to assure cost 
containment in the Part D drug benefit, you should have gone farther 
than what is in the product before us and made real improvements. One 
improvement that won a majority of 51 votes on the Senate floor was an 
amendment I offered with Senator Snowe to allow Medicare to use its 
purchasing power to benefit seniors. Giving Medicare that power would 
have produced a real benefit for seniors, but that is not included 
here. ``
  The home health cuts in this conference report will hurt a service 
that is vital to seniors. The conference report freezes home health 
payments for a year. Home health care has been demonstrated to be cost 
effective alternative to institutional care in both the Medicare and 
Medicaid Programs. In Oregon, what is proposed here will compound the 
negative impact of other cuts. Since 1997, when Congress first enacted 
cuts in home health, Oregon has lost 30 home health agencies. Oregon's 
home health agencies' profit margins are already at a negative 21.75 
percent, and 33 of 60 home health agencies are in rural areas. I fear 
what will happen to Oregon's seniors when home health agencies' 
payments are frozen, but their costs keep going up.
  The conference report increases copayments and premiums for the poor. 
I happen to believe that everyone should pay something on the spot for 
care unless they destitute, but the increases required here will force 
people who can get care today to for go care tomorrow. Oregon has 
learned from experience in this area. When Oregon instituted strict 
copayment and premium payment policies 55,000 people dropped off 
Medicaid, and most of those were people with chronic health problems, 
like high blood pressure and diabetes. The reconciliation bill says 
States can increase substantially the copayments that many Medicaid 
beneficiaries are required to pay to access health services and 
medications. Sure, there will be savings, but they will be achieved 
because people just won't get care or just won't seek care. That is 
not, in my view, good public health policy, and completely undermines 
the purpose of Medicaid.
  The conference report makes it harder for people to qualify for 
Medicaid long-term care. The conference report embraces the House 
provisions that restrict eligibility for Medicaid long-term care 
services and squeeze more savings out of those who need Medicaid. These 
provisions are far more onerous than the Senate passed bill, casting a 
wide net that will force every applicant to prove they had not 
transferred assets years before a disabling accident, stroke, heart 
attack, broken hip, or diagnosis of Alzheimer's disease simply in order 
to catch a few who intentionally transfer assets. These provisions even 
go after to middle-class Americans who make modest gifts to relatives 
like their grandchildren or who contribute to charity. How can anyone 
expect the average American who experiences a decline in their health 
years after having made a contribution to charity or given their 
grandchild some money toward a college fund to keep records on all of 
this? People won't be able to document many of the things they will be 
required to so that families or nursing homes will end up eating the 
money during the period in which their loved ones are not qualified.
  Lastly, the conference report negates a court decision concerning 
disproportionate share payments. One of the lawsuits brought on this 
issue was brought by a number of Oregon hospitals. The result of 
orturning the decision in this case is that many hospitals will be 
harmed because those people who are part section 1115 waivers as an 
``expansion population'' would no longer be counted for the purposes of 
calculating Medicare disproportionate share payments. This harms safety 
net hospitals.
  There are many other reasons to reject this conference report, but 
the truly harmful health care provisions stand out starkly among a sea 
of damaging provisions. These, alone, are reason enough to reject this 
budget document.
  Mr. CORZINE. Mr. President, I rise today to pay tribute to the 2\1/2\ 
million grandparents acting as primary caregivers to their 
grandchildren. The situation may occur as a result of a death in the 
family, a parent being away in the military, or the effect of abuse and 
neglect.
  I commend grandparents and other relatives who step forward to care 
for these children, often at great personal sacrifice, providing an 
alternative to foster care and giving them a safe, stable home. 
Supportive programs like subsidized guardianship help children exit 
foster care into the permanent care of caring and nurturing relatives.
  In my State of New Jersey, 8 percent of the children live with 
nonparent relatives. Grandparents and other relative caregivers are 
often the best chance for a loving and stable childhood for the 
children in their care, but their hard work and dedication often go 
unnoticed.
  I am deeply saddened that today the Senate made cuts in the budget 
that would deprive so many kinship caregivers of critical Federal 
support. We should be expanding support for these caregivers, not 
reducing it.
  Mr. President, today I offer my formal acknowledgement and deepest 
appreciation for the ongoing service of these caregivers to our country 
and our Nation's most valuable asset, our children. I commend 
Generations United for their hard work in helping improve the lives of 
our children.
  Mr. LEAHY. Mr. President, it has been said that a great test of 
morality is what people do when they have power. The fast-track budget 
reconciliation rules mean that the majority party can essentially do 
whatever it wants in a reconciliation bill if they act in lockstep. The 
reason is simple. Reconciliation debates in the Senate can only last 20 
hours and the final version of the bill--a reconciliation conference 
report--only can be debated for 10 hours.
  The majority party can even orchestrate a single meeting with 
conferees and immediately gavel it over almost when it starts, doing 
everything behind the scenes with no consultation and without sharing 
drafts of even sweeping policy changes in proposed major laws.
  They not only can do such things, they just did them.
  But let me start at the beginning. The President's budget proposal 
for programs under the oversight of the Judiciary Committee, issued in 
February of this year, called for a user fee on the manufacture and 
importation of gunpowder and other explosives of two cents per pound. 
The President requested that Congress enact these user fees--some 
called it a tax--to raise $600

[[Page 30704]]

million over the next five years. Because of that White House proposal 
on gunpowder and other explosives, the budget resolution of the other 
body called for the Judiciary Committee to meet a target of $600 
million.
  The Senate-passed budget resolution did not require any cuts to be 
made by the Judiciary Committee. This is the usual approach for the 
Judiciary Committee since the Committee controls few, yet very 
important, mandatory spending programs. For example, it is difficult to 
make significant reductions to mandatory programs, including: pensions 
for U.S. Judges; the Crime Victim's Trust Fund; salaries of U.S. 
Marshals; the Radiation Exposure Compensation Trust Fund; the Copyright 
Owners' Fund; the diversion control fee account of the Drug Enforcement 
Agency; border patrol salaries and expenses; the assets forfeiture fund 
for U.S. Marshals, and other sources. It is also difficult to increase 
Patent and Trademark Office fees or Copyright Office fees since there 
is not a compelling reason to do so.
  In the end, in order to comply with the budget resolution, the 
Judiciary Committee of the Senate and the Judiciary Committee of the 
other body were required to come up with $300 million in revenue or to 
make $300 million in cuts.
  The first casualty in this process was the White House proposal to 
tax gunpowder and other explosives. There was little support by the 
majority party for even making half the President's proposed increases 
in the gunpowder tax. Many other alternatives were considered by the 
majority party.
  Finally, a proposal was worked out in the Judiciary Committee that 
had my support, and the strong support of universities and many 
business leaders. For example, the National Association of State 
Universities and Land-Grant Colleges, Motorola, Oracle, Sun 
Microsystems, Texas Instruments, Intel, Microsoft, Hewlett-Packard, 
Qualcomm, for high-tech workers. The House also included immigration 
fees in their proposal.
  However, after an aborted conference meeting which started at 9 p.m. 
last Friday night, and ended a few minutes later, what has the Majority 
party proposed as a compromise on the immigration fees? They came up 
with increasing fees on all citizens to get into federal courts and 
into bankruptcy court. The bankruptcy fee increase raises some ironies. 
The increase in fees for citizens trying to seek judicial relief 
narrows access to courts.
  So we have gone from the President's proposal to tax gunpowder and 
other explosives and mysteriously ended up with a tax on citizens to 
get into federal court and bankruptcy court. Nevertheless, the majority 
party--as long as they are in lockstep together--has nearly absolute 
power in a reconciliation bill that enjoys only limited debate. History 
will record what they have done with that power.
  What is especially unfortunate is that the version of the 
reconciliation bill reported out by the Senate Judiciary Committee, and 
approved by the full Senate by unanimous consent to the Budget 
Reconciliation Act, was a bipartisan amendment offered by Senator 
Specter and myself to allocate the extra $278,000,000 in revenue 
provided from the Judiciary Committee markup on reconciliation to 
supplement funding that is demonstrably needed for the Bulletproof Vest 
Partnership Fund, programs authorized by the Justice For All Act, and a 
Copyright Royalty Judges Program.
  The Judiciary Committee markup on its reconciliation title provided 
$278,000,000 more in revenue than was mandated by the Budget Resolution 
instructions.
  The Specter-Leahy Senate proposal approved by the full Senate--would 
have provided $60,000,000 over the next five years for such initiatives 
as the Bulletproof Vest Partnership Program, to help law enforcement 
agencies purchase or replace body armor for their rank-and-file 
officers.
  Recently, concerns over body armor safety surfaced when a 
Pennsylvania police officer was shot and critically wounded through his 
new vest outfitted with a material called Zylon, which is a registered 
trademark. The Justice Department has since announced that Zylon fails 
to provide the intended level of ballistic resistance.
  Unfortunately, an estimated 200,000 vests outfitted with that 
material have been purchased--many with Bulletproof Vest Partnership 
funds--and now must be replaced. Law enforcement agencies nationwide 
are struggling to find the funds necessary to replace defective vests 
with ones that will actually stop bullets and save lives. Our Senate 
Judiciary provisions would have funded those efforts. Unfortunately, 
the majority party dropped this language.
  Our Senate Judiciary language--approved by the full Senate--also 
provided more than $216,000,000 for programs authorized by the Justice 
For All Act of 2004, a landmark law that enhances protections for 
victims of Federal crimes, increases Federal resources available to 
State and local governments to combat crimes with DNA technology, and 
provides safeguards to prevent wrongful convictions and executions.
  The Senate Judiciary Committee language also would have funded 
training of criminal justice and medical personnel in the use of DNA 
evidence, including evidence for post-conviction DNA testing. It would 
have promoted the use of DNA technology to identify missing persons. 
With these funds, State and local authorities would have been better 
able to implement and enforce crime victims' rights laws, including 
Federal victim and witness assistance programs.
  State and local governments would have been able to apply for grants 
to develop and implement victim notification systems to share 
information on criminal proceedings in a timely and efficient manner. 
That language would have helped improve the quality of legal 
representation provided to both indigent defendants and the public in 
State capital cases.
  Last, but certainly not least, our amendment provided $6,500,000 over 
five years for the Copyright Royalty Judges Program at the Library of 
Congress. The Copyright Royalty Distribution Reform Act of 2004 created 
a new program in the Library to replace most of the current statutory 
responsibilities of the Copyright Arbitration Royalty Panels program. 
The Copyright Royalty Judges Program was supposed to determine 
distributions of royalties that are disputed and set or adjust royalty 
rates, terms and conditions, with the exception of satellite carriers' 
compulsory licenses. The Senate-passed language would have helped pay 
the salaries and related expenses of the three royalty judges and three 
administrative staff required by law to support this program.
  Unfortunately, instead of raising more funds than we needed through 
widely supported increases in immigration fees and using them for these 
law-enforcement and other programs we are instead going to increase the 
cost of access to federal courts and not fund any of these other 
priorities.
  What may be the most troubling aspect of this abuse of power is that 
by substantially increasing fees to get into federal courts the 
majority party raised $253 million more in revenue than it needed to 
meet the reconciliation target. That means that all the above 
priorities in the Senate-passed bill including bulletproof vests for 
law enforcement, use of DNA technology to identify missing persons, and 
better enforcement of crime victims' rights laws could have been 
included at only slightly reduced levels of support.
  The Republican Congress has missed a great opportunity in this abuse 
of power.
  Mr. LEAHY. Mr. President, I also must express my opposition to the 
irresponsible domestic budget policy that has been forwarded by the 
majority party. The Senate is being asked to approve spending and 
budget bills that make deep cuts to programs that serve some of our 
country's neediest citizens. A time of year typically signified by 
wishes of goodwill towards all, it is difficult to be anything but 
outraged by this attack on critical components of our social safety 
net.
  While many in the majority party have claimed that these bills are 
needed in order to reduce the deficit, with

[[Page 30705]]

the knowledge that the leadership will make passing massive tax cuts 
benefiting some of the wealthiest among us a priority during the next 
session, this argument is simply disingenuous.
  Instead of putting the country on the road to fiscal security, these 
bills expose the agenda of the majority that blatantly undermines 
American families and make clear where the priorities of the majority 
party lie. It is not with the family that relies on Medicaid for their 
health insurance, the student who, without student aid, cannot afford 
to attend college, or the mother who needs childcare so that she can go 
to work and put food on the table for her family. Nor is it with the 
single mother who has been abandoned without child support, the 
grandparent raising their grandchild on a fixed income, or the worker 
who has lost his or her job and is trying to be retrained.
  No, the priorities of this majority party consistently lie with the 
powerful special interests and big drug companies. At every opportunity 
the Republican leadership has had to choose between supporting the 
American people or wealthy corporate interests, and they have sided 
with the corporate interests. Even by the standards of this first 
session of the 109th Congress, with the consistent erosion of consumer 
protections and support for American working families, these bills sink 
to new lows. As a result, dozens of health, education, labor, and human 
services programs will be cut and millions of people who rely on these 
programs will suffer.
  Some of the most egregious policies in these bills expose the 
disparity between the treatment of big drug companies and those 
individuals who must rely on Medicaid as their primary form of health 
care. With numerous options on the table, the Republican leadership 
chose to use the budget reconciliation bill to increase Medicaid co-
payments and premiums, potentially eliminated federal standards for 
comprehensive Medicaid care, and created highly restrictive rules 
governing the transfer of assets for those who require care in a 
nursing home. Rather than do away with an unnecessary multi-billion 
dollar slush fund for insurers and drug companies, a small group of 
Congressional budget writers has chosen to freeze home health payments 
that ensure seniors are able to receive care in the comfort of their 
own homes.
  In addition, this year's Labor, Health and Human Services, Labor-HHS, 
appropriations bill shortchanges our country's rural health programs. 
For instance, the bill eliminates five programs, including funding for 
Rural EMS and Health Education Training Centers, which are critical to 
the fragile network of the rural health care infrastructure.
  One of the most disappointing aspects of the Labor-HHS Bill was the 
treatment of the National Institutes of Health, NIH. Not since 1970 has 
the NIH been provided an increase as small as the one contained in this 
bill. As a result, the vital medical research being done around the 
country, including in my home state at the University of Vermont, will 
suffer. The search for cures to innumerable diseases will be slowed and 
foreign competitors will be given a chance to exploit our short-
sightedness.
  Not only will this Congress take the step of cutting education for 
the first time in ten years, these will be the biggest cuts in history 
to student loan programs. A remarkable $12.7 billion will be cut from 
student aid programs so that there will be no increase to the Pell 
Grant for an astonishing fourth year in a row. While making changes to 
eliminate loopholes in student loan lending laws, it appears that small 
lenders that specialize in providing comprehensive loan counseling to 
students have been given short-shrift. It appears that from almost 
every angle, students are assaulted by these policies.
  For those education programs that are lucky enough to escape the 
knife, they will either be frozen or given minimal increases. I am 
curious to know how our Nation's schools can be expected to meet and 
exceed the standards set forth in the No Child Left Behind Act, when 
Congress is content to slash funding by three percent, leaving these 
programs to sink more than $13 billion below their authorized levels. 
It has been almost 5 years since Congress passed this legislation, and 
we have consistently failed to meet our commitment to students, parents 
and teachers.
  In what is becoming a hallmark of this Republican leadership, these 
conference reports are loaded down with controversial legislation 
approved by neither body. Despite bipartisan support for legislation 
approved by the Senate Finance Committee earlier this year, Senators 
are being asked to approve a five-year reauthorization of the Temporary 
Assistance to Needy Families Program that would impose strict new 
working requirements with only nominal new funding for child care 
support. At the same time Congress asks single mothers to work longer 
hours, it cuts money for child support enforcement, dollars that are 
used to track down deadbeat dads.
  Though it is a sad commentary on the current state of affairs when 
one of the lone bright spots for health and human service programs is 
that this bill includes no cuts to the Food Stamp program, I would be 
remiss if I did not mention my appreciation that this program remained 
unscathed. While protecting Food Stamps should be hailed as a victory, 
the Community Food and Nutrition Program, a modestly sized program that 
helps support anti-hunger advocacy groups, was not so fortunate. The 
work being done on the local levels by these groups is extremely 
important, and it is my hope that these funds will be restored next 
year.
  The programs and services I have mentioned are but a few of the 
dozens of cuts that will negatively impact families across the country. 
As we usher out the final days of 2005 and the 1st Session of the 109th 
Congress, I am saddened that the last actions of this body will be to 
pass such harmful bills. After more than 30 years in the Senate, I know 
that we can do better and it is my sincere hope that when we return 
next year, we will reverse the wayward direction set by such policies 
and implemented by such legislation.
  Mr. DODD. Mr. President, for most Americans, the holiday season is a 
time for giving. But for the Congress, it seems, the holiday season is 
also a time for taking, at least judging by the budget reconciliation 
legislation before this body.
  Americans around the country, are concerned about their economic 
security. Whether they work in a factory or behind a desk, they are 
feeling increasingly vulnerable to the volatilities of the global 
economy. While American families are concerned about economic security, 
this budget reconciliation legislation would cut the safety net that 
protects them. The burden would fall most heavily on working Americans, 
in particular, on low-income parents and children, the elderly, and 
people with disabilities. Moreover, while supporters of this bill cite 
fiscal discipline as the rationale for making harmful cuts, when this 
bill is considered in combination with its companion tax reconciliation 
legislation, the total package would increase the deficit rather than 
reduce it. For these reasons I cannot support this funding cut 
reconciliation bill.
  I have been a strong proponent of fiscal responsibility throughout my 
service in this body. I have introduced and supported pay-as-you go 
budget rules; supported the landmark Gramm-Rudman-Hollings budget 
process reforms; and, during the 1990's, voted to balance the budget 
for the first time in 30 years. This budget reconciliation legislation, 
does not advance the cause of fiscal responsibility. Every penny saved 
in funding cuts and then some will be spent on new tax breaks, most of 
which will benefit a small number of affluent individuals who neither 
need nor seek such reckless largesse from their leaders in Washington. 
The Senate has already approved $60 billion worth of tax cuts over the 
next 5 years, and the House has approved more than $90 billion.
  Under the Bush administration, our National debt has grown from $5.7 
trillion to more than $8 trillion. The portion of that debt held by 
foreign creditors has more than doubled. And our

[[Page 30706]]

Federal budget has fallen from a $236 billion surplus in 2000 to a $319 
billion deficit in 2005. The Republican budget reconciliation package 
would only make this record of fiscal recklessness worse.
  The cuts in this bill, if enacted, would make it harder for working 
Americans to find a job and afford such basic needs as health care and 
child care. At a time when international competition demands that we 
invest in our people and our society, this bill radically scales back 
our Nation's crucial commitments. At a time when we should be expanding 
access to higher education for all Americans, this bill puts college 
further out of reach for many students. And at a time when many 
businesses and millions of Americans cannot afford even the most basic 
health care coverage, this bill passes the buck, and the burden of 
paying, onto those who are already struggling to afford care. Instead 
of offering solutions, this bill offers more lip service to a failed, 
partisan ideological agenda that weakens our Nation's long-term 
strength.
  Perhaps most controversially, the bill before us would make the 
biggest changes to Temporary Assistance to Needy Families, TANF, policy 
since 1996, going even beyond the provisions in the House-passed 
reconciliation bill. The Republican majority hopes to ram through these 
changes without any debate or consideration by this body. This is no 
way to run a country by not just ignoring those in the minority, but 
actively trampling over dissenting views.
  Children in low-income families will suffer the most. This section of 
the bill creates new, unrealistic work requirements for TANF recipients 
that would effectively amount to a backdoor way of cutting funds. It 
authorizes $2.5 billion less this year for child care than what is 
necessary to keep pace with inflation, which, over the next 10 years, 
will create a more than $11 billion shortfall and cause an estimated 
255,000 children to lose care. It cuts child support enforcement, which 
will reduce child support collections by $8.4 billion over 10 years. 
And it completely eliminates Federal foster care support for 
grandparents and other relatives who care for children who have been 
abused or neglected and removed from their parents.
  These cuts reflect a fundamental lack of understanding by the 
Republican majority of the struggles most Americans face every day. 
Moreover, they are based upon a faulty economic rationale. Though our 
overall economy grew somewhat between 2000 and 2004, those who 
benefited from that growth are mostly at the top of the income pyramid. 
Indeed, the number of children living below one-half of the poverty 
line rose by nearly 1.5 million. Somewhere, the link has been broken, 
and not all families are sharing in our Nation's economic growth. 
Instead of looking for solutions, the cuts in this bill would 
exacerbate the problems faced with courage every day by American 
families. If history is any guide, the families forced off of TANF 
would be those who, without a lifeline, are the most likely to fall 
into deep poverty. Child care assistance helps working parents keep 
their jobs and parents who have lost their jobs find new ones. If 
adequate child care and other supports are not available to low-income 
workers, the TANF rolls will increase again. We would be taking a step 
backward in helping people move from welfare to work. We should be 
constantly innovating and strengthening our policies in this area, not 
blindly cutting them in favor of unaffordable tax policies, as this 
reconciliation package would do.
  In addition, this reconciliation bill would also reduce health care 
coverage and increase costs for some of the most vulnerable members of 
our society. Most troublingly, this conference agreement proposes to 
increase co-payments and premiums for Americans who rely on Medicaid 
for their health care. Under this agreement, low-income Medicaid 
beneficiaries would be forced to pay more for their needed health care 
services and medicines. This, despite the fact that a recognized and 
growing body of evidence demonstrates that ill Medicaid beneficiaries 
will likely forego medical treatment in the face of increases in co-
payments. Such decisions often lead to greater health problems, and 
larger health care costs, later on. On top of these co-payment 
increases, this package will additionally allow States to increase the 
premiums that Medicaid beneficiaries must pay to enroll in the program 
in the first place.
  Also deeply troubling about this agreement is its granting to States 
the ability to decrease the scope of their Medicaid programs. The 
Federal Government currently requires State Medicaid programs to adhere 
to a set of standards that ensure comprehensive health care coverage 
for Medicaid beneficiaries. This agreement will significantly lower 
these standards and will allow States to lessen needed coverage for 
those most in need.
  As alarming as these provisions are, just as galling is what this 
bill lacks. The Senate-passed reconciliation package rightly contained 
two significant and cost-saving provisions that are absent from the 
package currently before us. First, the Senate bill sought to increase 
the rebates that pharmaceutical manufacturers must pay the Federal 
Government for medicines provided to Medicaid beneficiaries. Second, 
the same bill achieved $10 billion in savings by eliminating the so-
called ``stabilization'' fund designed to encourage preferred provider 
organizations to participate in the Medicare program. Both of these 
valuable provisions have gone missing in this conference agreement.
  Finally, in addition to weakening the safety net that allows 
Americans to weather tough times, this budget reconciliation 
legislation also shortchanges the millions of families trying to send 
their children to college. It provides no general increase in need-
based aid. Instead, it limits the increase to a narrowly defined subset 
of students who may or may not demonstrate as much need as their peers. 
In fact, there are so many restrictions on who qualifies for the 
increased Pell funds that I question how many students will actually 
receive it.
  This version of reconciliation also ignores a number of other 
provisions that were important to the Senate: loan forgiveness for 
child care workers, protections as we open up distance learning, and 
more consumer information for students that are consolidating loans. 
All of these provisions have disappeared. Instead we are left with a 
narrowly crafted bill that does not help all students achieve their 
college dreams. In my opinion, this bill represents a lost opportunity 
for students and a lost opportunity for this body to assist them.
  The conference agreement before us today ignores the values and 
concerns of ordinary Americans. Instead of investing our resources 
intelligently in the priorities that will make America strong and 
secure into the future like education, health care and the fight 
against terrorism it weakens important safety net provisions, decreases 
health care coverage and increases cost burdens, and reduces access to 
higher education. America needs priorities that reflect our values as a 
country and that prepare our people, especially our children, for a 
future of freedom, prosperity and security. Regrettably, this 
reconciliation legislation falls far short.
  Ms. MIKULSKI. Mr. President, the spending cut bill before us is 
shameful. I have always said that it is my job to look out for the day-
to-day needs of Marylanders and the long-term needs of the Nation. I am 
sorry to say this bill does neither. In the holiday season, this bill 
makes draconian spending cuts in critically important programs. This is 
not done for balancing the budget, which I support. It is done to pay 
for more tax cuts to the superwealthy.
  These spending cuts don't only hurt hard-working Americans. They chip 
away at the very foundation of the American dream and do so at the 
worst possible time. For example, we face unprecedented challenges from 
increased global competition. Our country has always had the ability to 
rise above these challenges because of America's incredible capacity to 
innovate. It is our responsibility to empower Americans to innovate. 
Unfortunately, this

[[Page 30707]]

bill represents the wrong priorities for this country, not those held 
by the vast majority of Americans.
  Nowhere do individual and national priorities more closely converge 
than funding for education. Education has always been our country's 
greatest engine for climbing the ladder of opportunity. It is also the 
greatest engine for our national aspiration: that each generation will 
have a better life than the one that came before. International trade 
and outsourcing have already shuttered several of our industries and 
threaten to do the same to others. Other countries are investing 
heavily to train and educate their people. They are manufacturing 
products less expensively than could be done here at home, often due to 
their weak labor and environmental protections. That is why we must 
preserve America's remarkable lead in the amazing race to innovate. To 
do this, we must realize that innovation starts with a well-educated 
population.
  Unfortunately, this bill makes the biggest cuts to student loan 
programs in history. For the fourth year in a row, the maximum Pell 
grant will remain the same. And while Pell grants stagnate, interest 
rates for student loans will increase. Republicans have also made it 
more difficult for students to consolidate their loans so that they 
will end up paying more for college. So not only is there less student 
aid available but this bill actually makes it tougher to qualify for 
need-based aid so that it will only go to a small group of students, 
decreasing the number of low-income people who are eligible to receive 
aid. It also gives private lenders and banks an unfair advantage over 
more cost efficient Federal loan programs, which increases costs for 
taxpayers.
  These cuts couldn't come at a worse time. College tuition is on the 
rise and financial aid isn't keeping up. Pell grants cover only 40 
percent of average costs at a 4-year public college. Twenty years ago, 
they covered 80 percent. Our students are graduating with so much debt 
it is like their first mortgage. College is part of the American dream; 
it shouldn't be part of the American financial nightmare. Families are 
looking for help. And I am sad to say the Republicans don't offer them 
much hope. This bill has all the wrong priorities. Instead of easing 
the burden on middle-class families and increasing student aid for all 
students, they want to help out big business cronies with lavish tax 
breaks.
  We need to do more to help middle-class families afford college. We 
need to increase the maximum Pell grant to $4,500 and double it over 
the next 6 years. We need to make sure student loans are affordable. 
And we need a bigger tuition tax credit for the families in the middle 
who aren't eligible for Pell grants but still can't afford college.
  My family believed in the American dream. They believed there is no 
barrier to having hopes. Through hard work and sacrifice, everyone 
should be able to pursue a higher education. But belief in the American 
dream is shrinking. There is not a dream deficit, there is a wallet 
deficit. There is not a talent deficit, there is an opportunity 
deficit. And at a time when the opportunity ladder is already creaky 
and shaky, the Republicans are trying to tear down this ladder by 
making massive cuts to student aid. Sadly, this will cripple our 
Nation's ability to innovate and compete in the global market.
  Those aren't the only bad things in this bill. It also slashes health 
care. I believe that every American should have the right to affordable 
health care, especially as they get old and need it the most. 
Unfortunately, this conference report cuts a net $6.9 billion in 
existing Medicaid spending. This will force beneficiaries to pay higher 
premiums and receive less health care coverage.
  I am particularly alarmed by the bill's changes to eligibility for 
long-term care coverage for elderly Americans needing care. This bill 
would require the government to look back at a senior's assets for the 
past 5 years and consider the value of their home to be eligible for 
long-term care. This is unfair. We should be supporting our elders, not 
punishing them.
  And that is not all. As temperatures drop and heating prices rise, 
this bill will literally leave Marylanders and Americans in the cold. 
Oil companies are now making record profits. Republicans beat back each 
of our attempts to eliminate tax giveaways to these same companies. Now 
energy prices are soaring and the bill falls $1.3 billion short in 
funding the Low-Income Home Energy Assistance Program. LIHEAP helps 
hard-working Americans afford to stay warm. But it won't have enough 
funds to do this next year.
  The reconciliation bill also suspends important Federal housing 
programs that preserve affordable housing. Republicans are prioritizing 
additional tax cuts for the superwealthy by killing a program to 
preserve affordable housing for working families. They too will be left 
out in the cold. The Millennium Housing Commission cited a lack of 
affordable housing as the primary cause of homelessness. So here again, 
the spending cut bill serves to squash our aspirations.
  When many of our families first moved to the United States, they were 
drawn to the promise of a better life--the ``American dream.'' They 
could aspire to a better life for themselves, their families, and their 
kids. They knew that hard work could make that dream a reality. For 
many generations, this country allowed each generation to be better off 
than the one before it. If we follow the course laid out before us 
today, our children are not going to be able to say the same thing.
  Mr. President, America can do better. We must look out for both the 
day-to-day needs of those who have elected us and also the Nation's 
long-term interests. This bill does neither. I strongly oppose this 
bill and urge my colleagues to do the same.
  Mr. KENNEDY. Mr. President, as we all know, the Budget Reconciliation 
Act contains an appalling number of devastating cuts that will hurt 
millions of Americans. But I do commend the conferees for including the 
Family Opportunity Act, which will remove the barriers in current law 
that penalize families struggling to stay together and make ends meet 
when their children have high health costs because of disabilities.
  For the past 6 years, Senator Grassley and I have worked with many 
parents and leaders in communities across the country to reach this 
milestone. Countless parents, family members, citizens, friends, 
neighbors, and colleagues face this problem today. As they make very 
clear, the Nation is failing families with severely disabled children 
by not giving them access to the health care they need to stay home and 
live in their communities. Many of them have been on the front lines in 
raising the Nation's awareness of their plight, and they have been 
fearless and tireless warriors for justice, and this legislation could 
not have happened without them. Today, their long wait is nearly over.
  The Family Opportunity Act is for them. It allows families of 
children with severe disabilities to purchase health care coverage 
under Medicaid, without first having to impoverish themselves or give 
up custody of their disabled children.
  Almost 1 in 10 children in America has significant disabilities. But 
many do not have access to even the most basic health care they need, 
because their private health insurance won't cover them. Often, their 
needs are treated as ``exclusions'' in their policies--no coverage for 
hearing aids, for services related to mental retardation, for physical 
therapy, for services at school, and on and on.
  That is why this legislation is so important--these children will now 
have access to these needed services and have a genuine opportunity at 
least to achieve full potential.
  When we think of disabled children, we tend to think of them as 
disabled from birth. But fewer than 10 percent of such children are 
born with their disabilities. A bicycle accident or a serious fall or 
illness can suddenly disable even the healthiest of children. Many of 
them with significant disabilities do not have access to even the most 
basic health services, because their families can't afford them.
  No longer will these families be forced to become poor, stay poor, or

[[Page 30708]]

even do the unthinkable by putting their children in institutions or 
giving up custody of them, so that their children can qualify for 
Medicaid.
  Families of special needs children often have to turn down jobs, turn 
down raises, or turn down overtime pay to keep a child eligible for 
benefits under Medicaid.
  No longer will parents be forced to give up their children or give up 
being part of our Nation's economy.
  This bill will change the life of 13-year-old Alice in Oklahoma, who 
was disabled because of multiple dystrophy. Under this bill, she will 
be able to have a personal assistant living at home with her family. 
She will be able to go to her neighborhood school.
  This bill will change the life of Johnny in Indiana, who has a severe 
mental illness and needs numerous mental health therapies and drugs. 
His mother will no longer be forced to give up custody of him in order 
to obtain the treatment he needs. Her goal of being a productive 
citizen and keeping her son at home will no longer be denied because 
her son will now have the health care and support he needs.
  This bill will transform the life of Abby in Massachusetts, who is 6 
years old and has multiple disabilities. Her parents are deeply 
concerned about her future if the existing buy-in State program for 
Medicaid is weakened. Without the buy-in, her parents would be 
bankrupted by her current medical bills. Now Abby and her family will 
have real opportunity to grow and work and prosper.
  The legislation also gives States greater flexibility to enable 
children with mental health disabilities to obtain the health care they 
need in order to live at home and in their communities, instead of 
being placed in institutions.
  It establishes Family to Family Information Centers in each State to 
help parents find the resources they need to meet the unique health 
care requests of their disabled children.
  Six years ago this week, President Clinton signed the Ticket to Work 
Act into law. That legislation demonstrates our commitment to give 
adults with disabilities the right to lead independent and productive 
lives, without giving up their health care.
  Today we make the same commitment to children with disabilities and 
their families.
  These provisions will undoubtedly be among the most important bills 
passed by this Senate. It closes the health care gap for the Nation's 
most vulnerable population, and enables families of disabled children 
to be equal participants in the American dream. It will truly change 
lives, and I commend my colleagues in both the House and the Senate on 
both sides of the aisle for their dedicated and their leadership that 
have made this day possible at long last.
  Mr. ROCKEFELLER. Mr. President, last week I came before this body to 
highlight the potentially harmful effects of budget reconciliation on 
our Nation's working families. I asked my colleagues to hold firm 
against the special interests in order to protect the Federal guarantee 
of Medicaid benefits for the 50 million Americans who depend on this 
vital program for health care. When the Medicaid motion to instruct 
conferees passed by a vote of 75 to 16, I thought the Senate was 
serious about preserving access to health coverage for children, 
pregnant women, the elderly, and disabled across our country.
  However, my hope quickly faded when the budget reconciliation 
conference report was released earlier this week. Instead of providing 
more assistance to families in need, the reconciliation conference 
report includes even greater cuts than those passed in the House of 
Representatives to vital safety net programs like Medicaid.
  Under this conference bill, the early and periodic screening, 
diagnostic, and treatment, EPSDT, benefit, which provides children with 
access to necessary immunizations, checkups, and preventive services, 
is eliminated. This means that low-income children--no matter how 
poor--will no longer be guaranteed vision, hearing and dental 
screenings; coverage for eyeglasses; therapy services, medical 
equipment that will allow them to attend school; or any other Medicaid 
services. Without access to this comprehensive benefit, many children 
will not get the vital medical care they need and will develop medical 
conditions that could have been prevented.
  The reconciliation language also begins to erode Federal laws 
protecting Medicaid recipients from burdensome cost-sharing. Under this 
bill, States would be allowed to index nominal cost sharing amounts by 
medical inflation, which grows at least twice as fast as wages. States 
would also be allowed to charge co-insurance up to four times higher 
than the 5 percent co-insurance allowed today. This means that Medicaid 
beneficiaries could pay as much as 20 percent of the cost of any 
Medicaid service--which for some would consume their entire monthly 
income. Such cost-sharing requirements are unacceptable for a safety-
net program designed to help working families when times get tough.
  This bill gives States the green light to vary benefit packages based 
on factors such as geography and disease. If enacted, Medicaid 
recipients will no longer have equal protection under the law. Instead, 
residents in rural areas of a State could receive fewer Medicaid 
benefits than those living in more populated, urban areas. Individuals 
with diseases that are expensive to treat may receive a narrower set of 
benefits than those with diseases that are less expensive to treat. 
And, if residents and diseases are treated differently in a State, then 
providers can also be reimbursed differently depending on their 
geographic location and the types of patients they treat. Such a 
haphazard benefit system will lead to more emergency room visits by 
beneficiaries and decreased provider participation in the Medicaid 
program. It would appear that, for some of my colleagues on the other 
side of the aisle, the vote in favor of the motion to instruct 
conferees was nothing more than a procedural motion--more rhetoric than 
substance, more posturing than true concern--because many of the 
Medicaid provisions included in the budget reconciliation package got 
even worse after the Senate voted overwhelmingly in opposition to 
increased beneficiary cost-sharing, barriers to eligibility and 
enrollment, and any other provisions that would undermine the Federal 
guarantee of Medicaid coverage.
  In all my time in the Senate, I cannot remember a time when we have 
considered such drastic cuts to safety-net programs that threaten to 
devastate working families. These are families who struggle to eat and 
pay their bills, let alone pay for much needed health care services; 
families of limited means who have done their best to contribute to a 
system that is now essentially turning its back on them. The cuts 
contained in this budget reconciliation conference report are 
reprehensible.
  This country has a moral obligation to help our fellow Americans in 
their time of need. We should not offer billions of dollars in 
additional giveaways to the wealthiest Americans and special interests 
at the expense of working families already struggling to make ends 
meet.
  I believe we can do better. Hard-working Americans deserve better; 
low-income children deserve better; the elderly, the disabled and 
parents who want to see their children go to college and succeed 
deserve better. We have a responsibility, Mr. President, and I would 
hope we would live up to that responsibility.
  Mr. VITTER. Mr. President, I am pleased that we have passed the 
Deficit Reduction Act today. It is a good first step to curbing run 
away spending in our entitlement programs, and it provides essential 
Medicaid relief to hurricane victims in my state.
  However, I am deeply concerned with the provision in the bill that 
repeals the Continued Dumping and Subsidy Offset Act, also known as the 
Byrd amendment. Many of my colleague and I signed a letter to the 
conferees urging that this repeal be excluded from the final bill. This 
important law helps counter unfair trade practices of other

[[Page 30709]]

countries by using revenues from duties collected to compensate injured 
industries. In Louisiana, most of our seafood industries have been 
severely affected by illegal dumping from China and other nations, and 
the Byrd amendment is one of the few things that could effective help 
the families in these industries, who are now also reeling from 
Hurricanes Katrina and Rita, to survive in their business and maintain 
our unique culture and way of life.
  I have been very frustrated with the Commerce Department and the 
Customs Department efforts to comply with the Byrd amendment as it 
stands now. Commerce does not properly set the duty collection rates, 
and Customs is severely lax in collecting tariffs that are due. Seafood 
tariffs uncollected stand at over $200 million from China alone right 
now. As these tariffs are not collected as they should be, illegal 
dumping continues, and our seafood and other industries are not being 
paid what they are due under the law.
  This bill supposedly has a phase out of CDSOA for 2 years, in which 
pending cases are supposed to be paid. I fear with the current record 
of collections and distribution, this 2 year phaseout won't give much 
relief. I do not feel that this phaseout is adequate, and the repeal 
this important law should not have been included in this bill. It is 
not right to use industries that are victims of illegal trade practices 
to carry a large burden of balancing the budget.
  I urge my colleagues to help me force the bureaucrats to do their 
work, collect these tariffs, and make the already due payments under 
the Byrd amendment. While the law may be unwisely repealed in this 
bill, the previously due payment should be paid and paid quickly.
  Mr. GREGG. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The question is on agreeing to the motion to concur in the House 
amendment with the Senate amendment.
  The clerk will call the roll.
  The legislative clerk called the roll.
  The yeas and nays resulted--yeas 50, nays 50, as follows:

                      [Rollcall Vote No. 363 Leg.]

                                YEAS--50

     Alexander
     Allard
     Allen
     Bennett
     Bond
     Brownback
     Bunning
     Burns
     Burr
     Chambliss
     Coburn
     Cochran
     Coleman
     Cornyn
     Craig
     Crapo
     DeMint
     Dole
     Domenici
     Ensign
     Enzi
     Frist
     Graham
     Grassley
     Gregg
     Hagel
     Hatch
     Hutchison
     Inhofe
     Isakson
     Kyl
     Lott
     Lugar
     Martinez
     McCain
     McConnell
     Murkowski
     Roberts
     Santorum
     Sessions
     Shelby
     Specter
     Stevens
     Sununu
     Talent
     Thomas
     Thune
     Vitter
     Voinovich
     Warner

                                NAYS--50

     Akaka
     Baucus
     Bayh
     Biden
     Bingaman
     Boxer
     Byrd
     Cantwell
     Carper
     Chafee
     Clinton
     Collins
     Conrad
     Corzine
     Dayton
     DeWine
     Dodd
     Dorgan
     Durbin
     Feingold
     Feinstein
     Harkin
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Mikulski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sarbanes
     Schumer
     Smith
     Snowe
     Stabenow
     Wyden
  The VICE PRESIDENT. On this vote, the yeas are 50, the nays are 50. 
The Senate being equally divided, the Vice President votes in the 
affirmative, and the motion to concur in the House amendment with a 
further amendment is agreed to.
  Mr. FRIST. I move to reconsider the vote.
  Mr. McCONNELL. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________




                           ORDER OF PROCEDURE

  Mr. FRIST. Mr. President, the next hour, we will spend in our 
precloture period before proceeding to the cloture vote on the Defense 
appropriations bill. I believe the Democrat leader spelled out how that 
time will be used.
  At this point, I ask unanimous consent that the time on our side be 
divided as follows: Senator Murkowski, 5 minutes; Senator Cochran, 2 
minutes; Senator Lott, 3 minutes; Senator Domenici, 5 minutes; Senator 
Gregg, 5 minutes; Senator Stevens be given the last 5 minutes of the 
debate; and 5 minutes to be designated by Senator Stevens.
  The VICE PRESIDENT. Without objection, it is so ordered.
  The Senator from North Dakota.
  Mr. CONRAD. Mr. President, I thank colleagues for their cooperation 
during the consideration of budget reconciliation. I especially thank 
the staffs on both sides, who spent several sleepless nights working on 
this matter. I very much thank my staff director, Mary Naylor, and all 
of my staff for their extraordinary effort.
  I also salute my colleague, the chairman of the Committee on the 
Budget, for his professionalism as we considered the matter. Special 
thanks to his staff, as well. I know this has been an extraordinarily 
trying period. We appreciate so much the effort and work they put into 
it.
  The PRESIDENT pro tempore. The Senator from New Hampshire.
  Mr. GREGG. Mr. President, I join the Senator from North Dakota in 
especially thanking our staffs, most of whom have not slept for a 
series of nights. They have done an exceptional job, led by Scott Gudes 
on our side and, obviously, Mary on the Democrat side. We have staff 
who put in huge hours to make us look effective and efficient around 
here, and they do an extraordinary job on our behalf.
  I also thank the Senator from North Dakota. This bill has reappeared 
in the Senate sort of like Haley's Comet: it comes through about every 
3 months as we try to deal with it and move forward in the 
reconciliation budget process. In each instance, the Senator from North 
Dakota has been extraordinarily professional, has moved forward in what 
I consider to be the tradition of this Senate, which is comity and 
cooperation, in order to make the Senate accomplish its business. I 
only wish he had more charts.

                          ____________________




  DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2006--CONFERENCE REPORT--
                                Resumed

  The PRESIDENT pro tempore. Under the previous order, there will now 
be 1 hour of debate equally divided between the two leaders or their 
designees on H.R. 2863. The time has been allocated by the two leaders. 
The first will be designated to Senator Feingold who is recognized for 
2 minutes.
  Mr. FEINGOLD. Mr. President, I hope today the Senate will side with 
rules, history, and future when it is time for this Senate to go on 
record as to whether it is okay to break the rules to do something you 
cannot otherwise get done.
  My colleagues know I do not support drilling in the Arctic Refuge. 
But this is not simply a debate about oil, wildlife, and energy policy. 
The debate we are having and the vote we are about to have is about how 
this institution and this democracy operate. Some have said there is 
precedent for violating rule XXVIII. My response is simple: Abusing the 
process and breaking the rules in the past does not justify doing so 
now, especially knowing it was a mistake.
  We worked in a bipartisan fashion to reinstate these very rules in 
2000. We did this because these rules are designed to protect all of us 
against abuses of power. If Senators do not stand up to the current and 
very troubling tactics we are seeing, what hope is there of stopping 
future attempts to hijack other legislation to pass proposals that 
cannot stand on their own merits?
  There are clearly Members who are determined to open the Arctic 
Refuge to drilling. I suspect every Member also has a couple of things 
we desperately want signed into law. However, we have a responsibility 
to respect the rules and traditions of the Senate. I urge my colleagues 
to vote against cloture and to vote to uphold the rules of this 
institution in which we are honored to serve.
  I yield the floor.

[[Page 30710]]

  The PRESIDENT pro tempore. Senator Boxer is recognized for 2 minutes.
  Mrs. BOXER. Mr. President, if this Senate is going to operate and 
function, it has to follow its own rules. It is very obvious that 
including drilling in a wildlife refuge in a military bill is not 
following our own rules. It is no wonder the people in the country are 
cynical. It is wrong to do this.
  Members should stand on line, do it the right way. If Members want a 
bill passed, do it the right way. This is not a Senate where one person 
can dictate how things get done.
  I hope the Senate would understand when you are discussing a wildlife 
refuge, which was first set aside by President Eisenhower, that we 
would do better than putting it into a military bill that is a must-
pass piece of legislation. I am very pleased that Senator Stevens said 
if he does not get his way on this, and the Senate decides not to 
include it here, that we will be able to strip that provision and get 
those funds where they need to go, to our troops.
  I am very pleased about that. I hope the Senate will speak strongly 
in a bipartisan way and vote ``no'' on cloture.
  I yield the floor.
  The PRESIDENT pro tempore. The Senator from New Mexico, Mr. Bingaman, 
is recognized for 3 minutes.
  Mr. BINGAMAN. Mr. President, I speak briefly in opposition to the 
motion to invoke cloture.
  The point I want to make, which has not been made to an adequate 
extent here, is that the provisions to open the Arctic Wildlife Refuge 
that are contained in this conference report are very different from 
what the Senate adopted in the budget reconciliation. In fact, the 
version of the legislation that is before us has never passed the 
House. It has never passed the Senate. It has been substantially 
changed from what we previously sought.
  First, the Department of Defense conference report language limits 
the ability of the Secretary to protect environmentally sensitive areas 
in the Coastal Plain to only 45,000 acres out of the 1.5 million-acre 
Coastal Plain. It cuts off the ability of the Secretary to withhold 
lands from leasing under other authority.
  In addition, the language that is before us requires the Secretary to 
offer for lease no less than 200,000 acres of the Coastal Plain within 
22 months of the date of enactment. That is new.
  In addition, there are provisions with regard to judicial review that 
are new and unprecedented. Unlike the budget reconciliation language, 
the conference report prohibits review of a secretarial action in a 
civil or criminal enforcement proceeding of any action that the 
Secretary takes subject to judicial review under these provisions.
  In addition, there is a new presumption put forth in this language 
that the Secretary's preferred action related to any lease sale is 
correct unless otherwise provided by clear and convincing evidence.
  We should not be taking this action. We should clearly not be taking 
this action as part of a Defense appropriations bill, which is very 
much needed in order to provide the resources for our troops in harm's 
way today. I urge my colleagues to oppose cloture on this provision, on 
this conference report as it is currently constituted. We can come back 
at a time when we can actually look at the provisions we are being 
forced to vote on and consider them on their merits.
  Mr. President, I yield the floor.
  The PRESIDENT pro tempore. Senator Lieberman is recognized for 3 
minutes.
  Since he is not here, who seeks recognition?
  Mr. REID. Mr. President, is there a quorum call in effect?
  The PRESIDENT pro tempore. No, there is not.
  Mr. REID. Whose time is running now?
  The PRESIDENT pro tempore. The minority has one-half hour, as we 
understand it, and the time is running against that one-half hour.
  Ms. CANTWELL. Mr. President, parliamentary inquiry.
  The PRESIDENT pro tempore. Will the Senator repeat herself, please.
  Ms. CANTWELL. Parliamentary inquiry.
  The PRESIDENT pro tempore. The Senator from Washington.
  Ms. CANTWELL. Is the agreement to have the time evenly divided 
between both sides and no specific request for how the sequencing of 
time is allocated under the order?
  The PRESIDENT pro tempore. Under the previous order, there is an hour 
divided between the two leaders. The leader had designated that time. 
The first designation was made, but it is not--it is equally divided. 
There is no sequence.
  Mr. REID. Mr. President, if the Senator from Washington will yield, I 
think what we would like is maybe to have some back-and-forth debate 
here. I am wondering if there is someone on the majority side who 
wishes to speak at this time and can use their time. There is somebody 
here who could yield that time, I am sure.
  The PRESIDENT pro tempore. The Senator from Alaska is recognized for 
5 minutes.
  Ms. MURKOWSKI. Mr. President, thank you.
  It is December 21. This is the shortest day of the year. On Alaska's 
North Slope today, it is pretty dark. The Sun went down, I was told, 
November 18 at 1:40 p.m. It is not going to rise again until January 23 
at 1:01 p.m. Today's weather forecast on the North Slope is for it to 
be about 30 degrees below zero. Most of us would be hunkering down and 
hiding out from the cold and the dark. But right now Alaska's North 
Slope and the oil activities are humming because this is the time of 
year we do our work up there. And why do we do it? Do we do it because 
we like the cold, we like to be in the cold and in the dark? No. We do 
it because this is how we provide for the protections for the area. We 
explore and we work when the tundra is frozen. This is when we build 
the ice bridges. This is when we do the exploration. We do it because 
we care for the environment up there.
  It hurts to hear some of the discussion and some of the argument and 
some of the misinformation about how we in Alaska derive our resources, 
how we pull the oil from the ground up North. We have been providing 
about 20 percent of this Nation's domestic oil from Prudhoe Bay for the 
past 30 years, and we have been doing a good job of it. We have been 
providing not only for the environment, we have been providing the 
jobs, and we have been providing the revenues. We have been helping 
this country in an effort to keep our balance of payments from booming 
even more than they already are. We are doing what this country needs 
when it comes to domestic production. We need the authorization of the 
Congress to do more, to open this small area up on the Coastal Plain to 
oil exploration and development.
  There has been some discussion that in this bill, in the Defense 
bill, we are opening up in excess of the 2,000 acres we have agreed 
upon. The language is very clear. It says: 2,000 acres. It does not 
allow for the Natives to add additional acreage on top of the 2,000. It 
is a 2,000-acre limitation.
  There has also been some challenge or some suggestion by the minority 
leader that somehow with this legislation the judicial review has been 
changed or altered in some way that would lesson the judicial review. 
That is absolutely not correct. There have been technical corrections 
in this legislation that differ from the earlier legislation that was 
introduced, but the judicial review remains in place.
  There has been some suggestion that the State of Alaska will sue for 
a 90-percent share of the revenues rather than the 50-50 share.
  Mr. President, I ask unanimous consent to have printed in the Record 
a letter signed by the Attorney General of the State of Alaska that 
clearly provides that the issue has been settled in terms of the 50-50 
split because the issue has been appealed all the way to the U.S. 
Supreme Court. The State considers the decision by the U.S. Court of 
Federal Claims to be settled law. So those arguments people will make 
that we should not move forward with opening ANWR at this point in time 
are simply not true.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


[[Page 30711]]


         State of Alaska, Department of Law, Office of the 
           Attorney General
                                 Anchorage, AK, December 20, 2005.
     Senator Ted Stevens,
     Hart Building,
     Washington, DC.
       Dear Senator Stevens: You have requested our response to a 
     question that has arisen regarding the State of Alaska's 
     previous claims against the federal government over oil 
     revenues due to the State under the Alaska Statehood Act.
       In 1993, the State sued the federal government over the 
     right arising out of the Alaska Statehood Act to mineral 
     revenues from federal leases. The State argued that the 
     Statehood Act constituted a contract that entitled Alaska to 
     90% of gross mineral leasing revenues from federal mineral 
     leases in Alaska. This issue was litigated in the United 
     States Court of Federal Claims. State of Alaska v. United 
     States, 35 Fed. Cl. 685 (1996). In 1996, the court found 
     against Alaska. It stated that ``there was no promise on the 
     part of the Federal Government to pay Alaska, in perpetuity, 
     90 percent of gross mineral leasing revenue from federal 
     mineral leases in Alaska.'' ld. at 704.
       The State then appealed this decision to the United States 
     Court of Appeals for the Federal Circuit, which affirmed the 
     Court of Claims decision discussed above. State of Alaska v. 
     United States, 1997 WL 382032 at *1 (Fed. Cir. July 8, 1997). 
     Finally, the State petitioned the United States Supreme 
     Court, which denied certiorari. State of Alaska v. United 
     States, 522 U.S. 1108, 118 S. Ct. 1035 (1998).
       Because the issue has been appealed all the way to the 
     United States Supreme Court, the State considers the decision 
     by the United States Court of Claims to be settled law.
       Additionally, I would like to clarify an issue raised in 
     the press and the Congress regarding the State's role, if 
     any, in the lawsuit filed on December 19, 2005 by the Alaska 
     Gasline Port Authority against ExxonMobil Corp. and BP P.L.C. 
     et al, alleging violations of numerous laws, including the 
     Sherman Act. The State of Alaska is not a party to this 
     lawsuit.
       If I can be of any further assistance, please do not 
     hesitate to contact me.
           Sincerely,
                                                 David W. Marquez,
                                                 Attorney General.

  Ms. MURKOWSKI. Mr. President, what ANWR represents to this country is 
energy security, national security, from the perspective of reducing 
our vulnerability on foreign sources of oil. When we talk about 
vulnerability in this country, and recognizing the vulnerability and 
the exposure of our men and women who are serving us over in Iraq, over 
in Afghanistan, we have to do everything we possibly can in this 
country to provide for their protection. Eighty percent of the 
Government's oil consumption is by our military. We need to keep this 
in mind. If we can do anything more to help with our domestic 
production so that we can decrease this reliance, we need to do so.
  What ANWR offers to us is energy security, domestic security in the 
sense of jobs, and truly environmental security. I need to stress that. 
We have been doing a responsible job up North for the past 30 years. We 
want to continue that, to fill the pipeline that is now about half 
capacity.
  Let me amplify a bit on why ANWR is so important for this Nation.
  Since we debated ANWR during the budget resolution process this 
spring, we have finished a 14-year-effort to craft a new comprehensive 
energy bill. In that bill we have provided incentives and tax breaks to 
increase renewable energy: wind, solar, biomass, geothermal, ocean 
energy supplies. We promoted, by tax breaks, the purchase of hybrid and 
alternate clean cars to cut fuel consumption. We also mandated a 
doubling of the production of ethanol to help displace foreign oil.
  We hiked the efficiency standards for a host of appliances to reduce 
electricity demand--hopefully by 40 percent, saving enough electricity 
to equal the output of 170 new 300-megawatt power plants. We promoted 
new technology, proposing to spend $3 billion to develop new hydrogen-
fueled cars and to perfect the next generation of nuclear power.
  We also made it easier to import more natural gas to ease our pending 
supply shortage. We approved $5.6 billion in tax breaks to promote 
energy efficiency and the growth of alternative fuels--more than twice 
what we spent to promote oil and gas production.
  But outside of some minor changes that may speed oil leasing in the 
National Petroleum Reserve in Alaska--the Nation's last designated 
place for petroleum production--and a few very minor regulatory 
changes, we did little to directly increase domestic oil and gas 
production.
  We delayed that action until now, when we hopefully will permit oil 
development from a tiny portion of the Arctic coastal plain in my home 
State of Alaska.
  ANWR oil will certainly help stabilize our energy prices while 
generating more than $36 billion in Federal revenues within 20 years--
$2.5 billion according to this reconciliation bill--money that is vital 
given our $319 billion deficit for fiscal year 2005 and the recent CBO 
forecast that we will still face a $314 billion deficit this year, not 
counting spending to counter the effects of Hurricanes Katrina, Rita 
and Wilma. While both numbers are down, we clearly need more revenues.
  ANWR will reduce our balance of payments deficit because we won't be 
buying as much oil overseas. Last year we paid $166 billion to buy oil 
overseas--a quarter of our ballooning trade deficit. We are paying even 
more this year. Keeping those billions a year in America that ANWR oil 
production will equal at current prices is important.
  It will produce hundreds of thousands of American jobs in most every 
State, with estimates ranging from a high of over 1 million total jobs 
to a low of 735,000.
  These are jobs mostly in the lower 48 States; 12,000 jobs in 
Washington State; 80,000 jobs in California; 48,000 jobs in New York; 
34,200 in Pennsylvania; 34,000 jobs in Florida, 5,500 jobs in Arkansas, 
even 2,700 jobs in Hawaii, our fellow non-contiguous sister State to 
the south, according to forecasts by Wharton Econometrics Forecasting 
Associates.
  It is because of these jobs and the other economic benefits, that so 
many groups support ANWR development, from many in organized labor to 
farmers, and from truckers to manufacturers, all of whom know that ANWR 
oil will help stabilize everything from the cost of spring planting and 
fall harvesting to the thousands of products made from oil: from 
antihistamines to compact discs and from heart replacement valves to 
shampoo.
  That is why groups from the U.S. Chamber of Commerce to the Americans 
for Tax Reform, from the Alaska Gas Association to the Alliance for 
Energy and Economic Growth, and unions such as the International Union 
of Operating Engineers, the Seafarers International Union, the 
Teamsters, the United Association of Plumbers and Pipefitters, the 
Laborers' International Union, the United Brotherhood of Carpenters and 
Joiners, and the Building and Construction Trades Department all are 
supporting ANWR's opening.
  According to USGS estimates, ANWR's Coastal Plain has an even chance 
containing the second largest oil field in North America. During this 
debate opponents may well again repeat that there isn't enough oil 
there to be worth developing, that it only represents a tiny supply or 
only will decrease our dependence on foreign oil by a few percent.
  Those arguments are utter nonsense. It is like saying we should never 
have produced the East Texas oil fields since the area only contained 
5.3 billion barrels--a half to a third of ANWR's likely production. 
East Texas has produced oil, created jobs and protected our national 
security the past 75 years of through WWII, and Korea, Vietnam, and the 
Persian Gulf.
  ANWR production is likely to provide all the oil that South Dakota 
will need for 499 years. It is likely to provide all the oil that 
Minnesota will need for 84 years, for New York for 34 years, for 
California for 16 years. That is a lot of oil.
  When you consider that the American Farm Bureau Federation reports 
that American farmers in the 2003-2004 planting season lost $6.2 
billion in income because of higher fuel and fertilizer costs--farmers 
facing an even bleaker price picture this fall given high prices and 
drought--then it's clear that all the oil and gas ANWR may produce will 
be precious to help hold down or reduce those costs in the future.

[[Page 30712]]

  Remember that ANWR's oil would have offset the oil that we lost in 
the Gulf of Mexico because of hurricane damage--oil that could well 
have prevented prices from skyrocketing at the pump this summer and 
fall.
  Discounting ANWR's likely oil is also like saying we as a nation 
should never have opened the neighboring Prudhoe Bay oil field in 
Alaska because Prudhoe Bay would only supply us with a 3-year supply of 
oil. Prudhoe Bay has provided America with up to a quarter of our 
domestic oil supply for the past 28 years. It has already saved us from 
spending more than $200 billion to buy imported oil and new technology 
has consistently raised the amount of oil the field will produce.
  Initially Prudhoe was expected to produce only 35 percent of its oil. 
Now it's likely to produce more than 16.5 billion barrels--65 percent 
of its oil in place. The same increase in production might occur at 
ANWR and could raise production totals to between 10 and 27 billion 
barrels--the mean being nearly 18 billion barrels, if it happens.
  We know industry has spent about $40 billion on the trans-Alaska oil 
pipeline and the wells and production facilities at Prudhoe Bay in the 
past three decades--78 percent of that spending going to states in the 
lower 48.
  From just 1980 to 1994 California businesses received $3.2 billion in 
work because of Alaska oil development, Washington State firms $1.7 
billion, New York $680 million, Minnesota businesses $100 million.
  There is no question that ANWR oil development will be good for the 
country's economy and its national security. But it also will be good 
for the global environment and it won't harm Alaska's environment, 
wildlife or beautiful landscape.
  Let me shock those on the other side of this issue. As a life-long 
Alaskan, a mother with two sons with a family that loves the outdoors, 
let me say again I would be the first to oppose ANWR's opening if I had 
any concerns about what oil development will do to our landscape, our 
air, our water and our wildlife. But I don't.
  I have been to Prudhoe Bay, have seen the impacts of oil there and 
know that Prudhoe's development has not damaged Alaska's environment.
  And I know that by using 21st century technology and advanced 
engineering that has been perfected since the field's construction 30 
years ago, that ANWR can be developed safely and the environment even 
better protected.
  First let's look again at Prudhoe's experience. There was much 
concern that development there would harm the environment and damage 
the Central Arctic Caribou herd that lives in the field. Neither 
happened.
  The Central Arctic herd continues to calve and nurse their young in 
the area's oil fields. The herd has grown from 3,000 animals in 1974 to 
nearly 32,000 today. This 10-fold increase shows that caribou and oil 
production can co-exist quite nicely, thank you.
  Wildlife studies have shown that several bird species have grown 
since the field was built--specifically brant, snow geese and 
spectacled eiders, although as the National Academy of Sciences 
reported last year some nesting distributions may have changed and 
brant and eiders in general are having problems, perhaps because of 
reach warmer climate conditions.
  I'm sure someone will mention polar bears. I am quite prepared to 
talk about the very healthy condition of Alaska polar bear stocks. For 
the moment let me say that only two bears over the past 38 years have 
been harmed in Alaska because of oil development and with new infrared 
detection equipment, we can make sure that no bears will be disturbed 
during denning by ANWR's development.
  Americans can be assured that opening the coastal plain will have 
even less impact on Alaska's environment. That is because new 
technology has reduced the impact on the environment and the footprint 
of development.
  3-D and 4-D seismic that I mentioned earlier now allow us to locate 
oil without surface disruption.
  Underground directional drilling allow us to recover oil 4 miles away 
and hopefully up to 8 miles away within a few years, meaning that only 
a tiny portion of surface habitat will be disturbed between drill 
sites.
  The size of so-called well pads has decreased 70 percent to 88 
percent since Prudhoe Bay. The proof can be seen in that the Tarn field 
was opened in 1998 disturbing just 6.7 acres. Not the 65 acres for a 
well-pad at Prudhoe Bay. The Alpine field that we in the Senate visited 
in March, today produces 120,000 barrels a day from a central well pad 
that is just 43 acres in size--67 if you count the attached air strip.
  Ice roads today are used for winter drilling--roads that melt without 
any disturbance to the tundra in summer when the animals arrive on the 
coastal plain. New composite mats also can be used to reduce gravel 
fill and dust. And pipelines technically can be placed underground to 
prevent any surface disturbance to animals or birdlife, although there 
are no problems with above ground pipelines. There won't be a ``spider 
web'' of development as some have claimed.
  Drilling restrictions will prevent noise in summer that might scare a 
mother caribou, and as insurance, development can be barred by the 
Secretary of the Interior to guarantee habitat for a core caribou 
caving area or for bird nesting areas.
  Opponents often say that development will destroy ``America's 
Serengeti.'' We are proposing to limit the ``footprint'' of development 
to just 2,000 acres of Federal land. That is no more land than a 
moderately-sized American farm--the average farm in North Dakota is 
1,400 acres--while an area larger than all of South Carolina will 
remain wild and protected. With the new technology it will be possible 
to leave nearly 100 square miles of undisturbed habitat between well 
sites. The animals of the African veld in Tanzania should be so lucky.
  Opponents of opening ANWR always address two more issues: that oil 
spills on the North Slope of Alaska has shown that development should 
not be allowed, and that air quality from energy production should also 
prevent development. Let me briefly respond to both concerns.
  Concerning oil spills opponents list numbers claiming a high number 
of spills, but fail to mention that companies have to report spills of 
most any substance more than a gallon in size, whether of water, or oil 
or chemicals.
  According to the Alaska Department Environmental Conservation, there 
have been an average of 263 spills on the North Slope yearly during the 
past decade, but the average oil spill was just 89 gallons--2 barrels 
of oil--and that 94 percent of that oil was totally cleaned up. By 
comparison the rest of the state had seven times more spills per year 
than the Prudhoe Bay oil field.
  According to the National Academy of Science's 2003 study, if you 
look at all oil spills from 1977 through 1999, 84 percent of all spills 
were less than 2 barrels in size and only 454 barrels of oil per year 
may have been released to the environment, compared to 378,000 barrels 
of oil that enter North American waters as a result of just urban 
runoff--those drips at filling stations and other spills. That may be 
less oil than enters the Alaska environment naturally because of oil 
seeps on the North Slope.
  Concerning air quality, we have heard mention that Prudhoe Bay has 
destroyed the air quality. There is no truth to those claims.
  It is true that the nation's largest oil field does add emissions 
into the air, mostly nitrogen dioxide and larger particulate matter. 
But field meets the stringent air quality standards in place for Class 
II attainment areas--areas where Congress has set higher standards to 
prevent any Significant Deterioration (PSD) of air quality.
  Looking at nitrogen dioxide, in its worse year, 2000, such emissions 
were only a quarter of the public health standard for the area. For 
sulfur dioxide, in its worse year 1997, the Prudhoe Bay field emitted 
16 times less sulfur dioxide than the public health standard and only a 
quarter of the tough standards for a Class II area.
  For carbon monoxide, during its worse period, one eight-hour period 
in

[[Page 30713]]

1991 near Kuparuk, the field was 35 times lower than the public health 
standard. I could continue with particulate matter but the story is the 
same.
  The truth is that the Prudhoe Bay area--the nation's largest oil 
field--releases eight times less nitrogen dioxide into the air than the 
metropolitan Washington area does per year, according to the 
Metropolitan Washington Council of Governments.
  More important the releases have no impacts on the environment. There 
is no evidence that the releases are affecting the Arctic environment 
or the environment downwind. The air quality complaints are groundless.
  To environmentalists who say we are harming Alaska, please remember 
that an area of more than 192 million acres, the size of all the states 
that stretch from Maine to Orlando, Fla.--almost the entire East 
Coast--are already protected in parks, refuges and forests in Alaska. 
We aren't proposing to touch any of those areas.
  Now let me explain why I suggested that ANWR development is actually 
good for the global environment.
  Right now America is using about 20 million barrels of oil a day and 
importing more than 11 million barrels of that oil. That oil is 
increasingly coming from countries with less stringent environmental 
standards than America. America has the toughest environmental 
standards in the world. We should be doing all we can to satisfy our 
oil needs at home, not exporting environmental issues overseas to 
Russia or Colombia or Venezuela.
  Secondly, even with greater efforts at conservation--efforts that I 
strongly supported in the just-passed comprehensive energy bill--we are 
still going to need oil.
  We could park every car and truck in America tomorrow and we still 
will need ANWR's oil to meet our needs for plastics, road construction 
materials, roofing materials, and those petrochemical feed stocks that 
are the stuff of everything from soft contact lenses to aspirin and 
from house paint to toothpaste.
  And in case anyone tries to argue that opening ANWR will somehow 
increase carbon dioxide and maybe, perhaps, increase global warming, 
let me say that if we don't open ANWR we will need to import ever more 
oil to America in foreign tankers. Those tankers will need to travel 
tens of thousands of miles farther to reach American shores. They run 
on diesel fuel and will produce far more carbon dioxide than 
transporting Alaskan oil to lower 48 ports will.
  Thirdly, if we don't open ANWR we will need to import ever more oil. 
When we reach 68 percent dependency we will need the equivalent of 30 
giant super tankers, each loaded with 500,000 barrels of crude oil a 
day, to dock at U.S. ports. That will be more than 10,000 shiploads of 
oil a year, most likely foreign-flagged and foreign-crewed tankers 
passing our rocky coastlines and entering our crowded harbors. Those 
ships create many more times the environmental risk to America's coasts 
than developing our own energy, using American technology, American 
doubled-hulled ships, whose performance is governed by American law.
  For years the mantra of environmentalists has been ``Think globally, 
act locally.'' The best action we can take locally is to produce more 
of the oil we consume every day.
  Let me briefly touch on whether Alaska Natives continue to support 
oil development on the coastal plain. Earlier this spring some 
questioned that support because of a petition that was signed by some 
in Kaktovik--the only village directly in the ANWR area, an area where 
78 percent of residents, 2 years ago supported oil development, 
according to a community poll. While I have letters signed by a number 
of those who signed the anti-development petition--letters saying they 
were misled by the petition sponsor and that they do still support 
ANWR's on-shore oil development--let me just reassure my colleagues 
that Alaska Natives clearly support oil development in my State.
  I have a letter from all members of the Kaktovik City Council and 
from its Mayor sporting oil development.
  The latest statewide public opinion poll in Alaska by Dittman 
Research finds that only 23 percent of Alaskans oppose ANWR 
development. In this day and age, getting more than 70 percent of any 
body anywhere in support of anything is a major achievement.
  The Alaska Federation of Natives--that is the umbrella for all Native 
groups in the State--is clearly on record supporting ANWR development.
  I visited Kaktovik during August to see for myself the current level 
of support or concern with development in the coastal plain. I can say 
clearly that while villagers would like us to solve their Native land 
allotment concerns by next year--the 100th anniversary of when the land 
allotments were authorized and want us in Congress to protect 
subsistence whaling--and while they clearly want to be consulted on 
development and aided to avoid any impacts--that they generally support 
environmentally sensitive development onshore on the coastal plain.
  Natives on the North Slope of Alaska have seen for themselves the 
impacts of oil development and have seen the benefits that oil can 
bring: good jobs, better schools, improved health care, modern water 
and sewer systems, adequate housing and better opportunities for their 
children and their grandchildren.
  Natives who have lived in the area for thousands of years simply want 
to be consulted and to have their wisdom reflected in the regulatory 
decisions made to control energy development. That is a perfectly 
reasonable position for local residents to take and I certainly will 
support them to make sure their knowledge and wisdom are listened to.
  They simply want respect and we in government clearly should respect 
their knowledge as oil development proceeds.
  As long as we include reasonable environmental and regulatory 
protections, Alaska Natives support responsible oil development on the 
Arctic coastal plain.
  And this bill provides $35 million in impact aid, money that 
hopefully will alleviate any impacts from ANWR development and assist 
Alaska Native Corporations and their members who live along the Trans-
Alaska oil pipeline corridor.
  This amendment is largely based on an ANWR stand-alone-bill, S. 1891, 
that I introduced this fall. So that there is no mistaking the clear 
intent of this legislation as it is considered for final passage, let 
me state the following:
  After 18 years of debate since release of the final environmental 
impact statement covering Arctic oil development in 1987, more than 50 
hearings, dozens of field trips, passage of ANWR legislation in the 
106th Congress, and passage of ANWR-opening legislation by the House in 
the 108th Congress and by both the House and Senate in the 
reconciliation act process in the 109th Congress, it is absolutely 
clear that it is the intent of Congress--should this bill pass--that 
oil and gas development be permitted in the entire ANWR coastal plain 
on an expedited basis. That means that development should be permitted 
on the Federal lands as permitted by this legislation without delay in 
order to be producing revenues within 5 years.
  It is clearly the intent of Congress as spelled out in the provision, 
that the existing LEIS is sufficient to cover new preleasing activities 
and that it is the intent of Congress that the LEIS is still sufficient 
to govern oil development with modest updating.
  Concerning the 92,000 acres of native-owned lands, lands owned by the 
Arctic Slope Regional Corporation and the Kaktovik Inupiat Corporation, 
Congress by this division in the Defense appropriations bill is 
authorizing immediate development as allowed by the 1983 land trade 
that allowed Natives to select lands in the coastal plain and as 
allowed by the Alaska Native Claims Settlement Act and the Alaska 
National Interest Lands Conservation Act.
  Specifically, there should be no question that it is the intent of 
Congress that the phrase ``prelease activity'' is intended to include 
all activities that normally take place prior to a lease sale, 
including surface geological exploration or seismic exploration. The

[[Page 30714]]

Secretary has promulgated regulations governing surface geological and 
geophysical exploration programs for the refuge's coastal plain 
pursuant to Section 1002 of ANILCA. These regulations, set out at Part 
37 of Title 50 of the Code of Federal Regulations, are consistent with 
the LEIS and include adequate environmental safeguards. Although the 
primary purpose of those regulations was to governor the exploration 
necessary to produce the ``1002'' report to Congress, they include 
provision for additional surface geological and geophysical exploration 
``if necessary to correct data deficiencies or to refine or improve 
data or information already gathered.'' 50 CFR Section 37.11.
  This authority is adequate for the Secretary to process any requests 
for permits for prelease surface exploration, but is not the exclusive 
authority for processing such requests. This amendment provides 
independent and sufficient authority for the Secretary, acting through 
the Bureau of Land Management, to issue prelease permits for surface 
geological exploration or seismic exploration. Permits for prelease 
surface exploration, whether or not pursuant to Part 37 of Title 50, 
that incorporate environmental safeguards similar to those in Part 37 
of Title 50 are consistent with the LEIS and the requirements of this 
section.
  Another area I would like to clarify is relating to the provision 
that allows the Arctic Slope Regional Corporation to begin oil 
production from their lands. It should be clear that the section in 
this bill removes the prohibition in Section 1003 of ANILCA against the 
production of oil and gas and leasing or other development leading to 
production of oil and gas for lands within the ``1002'' Coastal Plain 
Area, as depicted on the map prepared by the U.S. Geological Survey 
entitled ``Arctic National Wildlife Refuge 1002 Coastal Plain Area,'' 
dated September 2005, including both Federal lands private lands, 
primarily owned by Alaska Native corporations, and now or hereafter 
acquired within the 1002 Coastal Plain Area and preserves all rights of 
access to those lands, including for oil and gas pipelines, provided 
for in Sections 1110 and 1111 of ANILCA.
  There is much more that I can say. For now let me just say that both 
Republicans and Democrats agree that American independence on foreign 
oil threatens our national security, and yet, we continue to import 
over half of our oil needs. And we haven't yet done enough to reverse 
that trend.
  Only by passing ANWR, in conjunction with the other environmental 
steps we have already taken in the energy bill, can we produce more oil 
from American soil, with American workers; oil that will be used to 
heat American homes and power America's farms and industries.
  In a sentence, ANWR is a part of the solution to America's dependence 
on foreign energy sources. Not the entire solution, but one real part 
of it. The one part not yet addressed by Congress this year.
  ANWR is the place and the time is now.
  I yield the floor.
  The PRESIDENT pro tempore. Who yields time?
  Senator Cochran is recognized for 4 minutes.
  Mr. COCHRAN. Mr. President, I understood I had 2 minutes under the 
order.
  The PRESIDENT pro tempore. The occupant of the Chair has additional 
time and is yielding the additional 2 minutes.
  Mr. COCHRAN. I appreciate the generosity of the Presiding Officer.
  I am pleased to advise the Senate that after a great deal of hard 
work, including Senators on both sides of the aisle, Members of the 
other body, we have been successful in adding to this conference report 
as an amendment a disaster assistance provision that makes money 
available now to those in the Gulf States region who have been 
seriously harmed, hurt, devastated by Hurricane Katrina and Hurricane 
Rita.
  The Senators from Louisiana and Mississippi, of course, have been 
probably the most directly affected in terms of the demands being made 
on the Federal Government now for a sensitive and generous response to 
the needs of our region. We are very grateful to those who have joined 
with us and supported the addition of these funds, $29 billion in total 
amount in this bill, to provide disaster assistance to that region.
  We appreciate the administration's sensitivity to this and the 
request that the President made for a reallocation of previously 
appropriated funds in the amount of $17 billion. We urged that be 
increased. The House agreed. The Senate agreed to support this. Our 
committee did. Now it is before this body. I hope all Senators will 
support this conference report. It is very important that this money be 
given to the region now. Any further delays are going to be not just 
frustrating but devastating to the economic well-being, the emotional 
stability of that region of our country that has been so harmed, in an 
unprecedented way, by this disaster. We appreciate the support of all 
Senators.
  I thank the Chair.
  The PRESIDENT pro tempore. The Senator from Louisiana is recognized 
for 4 of the minutes designated to me.
  Mr. VITTER. I thank the Chair.
  Mr. President, I stand in strong support of the motion to invoke 
cloture, and I ask all of my colleagues to come together, put the 
interests of the country, including the interests of the citizens of 
the gulf coast, first, ahead of politics, ahead of partisanship, and 
move this important legislation forward.
  In the last 48 hours, we have heard a whole lot about this package 
and about this upcoming vote. So much of it has been about partisan 
ideology and politics and procedure. Let me tell you what this vote is 
about in my home in Louisiana. It is about another ``P'' word. It is 
about people, real people trying to live and survive and rebuild in the 
real world. Nearly 4 months ago, 1,000 people, my fellow Louisiana 
citizens, were killed during the devastation of Katrina. Today, 4 
months later, nearly a million people are still reeling. They remain 
lost because of our continuing delay and inaction, people who have no 
homes, no cars, no jobs, in many cases all of their personal 
possessions gone.
  My hometown was flooded. The city of New Orleans, once a thriving 
city of 450,000 people, is today, almost 4 months later, under 100,000 
people. My neighbors want to come home. We want to rebuild in earnest. 
Tens of thousands of businesses want to reestablish themselves and 
offer jobs again to their hundreds of thousands of employees. This vote 
is crucial for that to happen. That is why it is not about partisan 
ideology and politics and procedure that we have heard about for so 
many days; it is about people, real people with enormous and real 
challenges in the real world.
  The question is simple. It is, in Louisiana, whether those people 
will be flooded a third time. Why do I say a third time? The first time 
was because of mother nature, because of the ferocity of Hurricane 
Katrina causing untold flooding and damage in southeast Louisiana. But 
the second time was the day after Hurricane Katrina when the levees 
broke. That wasn't the biggest natural disaster in American history. 
That was the biggest manmade disaster in American history because of 
fundamental design flaws in that system.
  Now we are on the Senate floor debating whether those same people 
will be flooded a third time, flooded by inaction, flooded by the 
results of partisan ideology and politics and getting all tangled up in 
arcane procedure. Let's not flood these good people a third time. Let's 
act--yes, late, but not too late--to give them a clear vision forward 
so they can rebuild their lives.
  I urge all of my Senate colleagues to put real people, facing real 
challenges, the biggest of their lives in the real world, ahead of 
partisan ideology and politics and procedure. I urge my colleagues to 
vote yes on cloture.
  I yield back my time.
  The PRESIDENT pro tempore. The Senator from Washington is recognized 
for 12\1/2\ minutes.
  Ms. CANTWELL. Mr. President, I yield 2 minutes of my time to the 
Senator from California.

[[Page 30715]]

  The PRESIDENT pro tempore. The Senator from California is recognized 
for 2 minutes.
  Mrs. FEINSTEIN. Mr. President, I thank the Senator from Washington, 
and I thank the Chair.
  ANWR is an issue that arouses great passion on both sides of this 
issue, but there are strong arguments that underlie the belief that the 
opening of these critical 1\1/2\ million acres of pristine wilderness 
is small, from an oil production perspective, and very damaging 
environmentally.
  First, the Arctic Refuge Coastal Plain, where the drilling would 
occur, is the ecological heart of the Refuge. It is the center of 
wildlife activity. If ANWR were opened for drilling, the wilderness 
would be crisscrossed by roads, pipelines, powerplants, and other 
infrastructure. The Department of Interior estimates that 12,500 acres 
would be directly impacted by drilling. I strongly believe that 
destroying this wilderness does very little to reduce energy costs, nor 
does it do very much for oil independence. It will produce too little 
oil to have a real impact on prices or overall supply, and it would 
offer a number of false hopes.
  On average, ANWR is expected to produce about 800,000 barrels of oil 
a day and, in 2025, these 800,000 barrels per day would represent but 3 
percent of the projected 25 million barrels of oil a day of U.S. 
consumption. By changing SUV mileage requirements to equal sedans, we 
produce a million barrels of oil a day savings.
  I don't believe we can drill our way to energy independence. I urge a 
``no'' vote.
  The PRESIDENT pro tempore. Who yields time? The Senator from 
Washington was yielded 12\1/2\ minutes and has yielded 2\1/2\ minutes 
of that.
  Ms. CANTWELL. Mr. President, I reserve the balance of my time. I see 
the Senator from New Mexico seeks recognition.
  The PRESIDENT pro tempore. The Senator from New Mexico is recognized 
for 5 minutes.
  Mr. DOMENICI. Mr. President, I rise today to talk about the bill 
before us in one respect. I want to talk about ANWR. Actually, ANWR has 
been waiting too long to become part of the United States of America's 
inventory of reserves of crude oil for our people and for our future.
  I had the luxury of going up there in the extreme cold to see what 
this is all about. I want to share with my fellow Senators a couple of 
facts that seem to be unnoticed. First of all, all of the activity that 
takes place with reference to drilling, takes place with reference to 
preparing, takes place with getting the oil ready to put into a 
pipeline--all of that activity takes place in the dead of winter. That 
means the roads are built on ice. That means the holes are drilled in 
the ice. That means the oil comes to the surface to be put into 
pipelines while it is below zero and everything is frozen.
  So when Senators or visitors are taken there in the warm climate and 
they see the soft ground that you cannot hardly put a truck on, the 
marshes that everybody wants to preserve, everybody should understand 
that there is no activity taking place under those conditions. 
Everything is done--the drilling, the preparation, the production--
while it is all frozen. When the warmth comes, the activity disappears. 
What is left are a very few small signs of the activity of man that has 
produced oil.
  I saw 60 acres of the Alaskan frozen tundra--60 acres--upon which an 
entire drilling operation took place, all in winter. That 60 acres was 
producing 150,000 barrels of oil a day. All that will be there are 
wellheads. Actually, as you drill, they look like little outhouses very 
close together, in which a well is drilled, and scores of underground 
wells are drilled from it, vertical and horizontal, taking the oil out 
of the ground, with no new holes. When you are finished, there will be 
the plugs on top of that and a station that pulls it together, and 
everything else will disappear, and out comes 150,000 barrels of oil.
  Can you envision in this 1.5 million acres 2,000 acres of it being 
used in multiples of 60 acres to produce what is expected from ANWR? 
How will that harm anything--that 1.5 million acres? They always quote 
President Eisenhower. It was set aside and designated, written there 
that this might be important for our future because it has in it and 
under it petroleum and petroleum products. That was known when it was 
set aside. We have been sitting around waiting, this great country, to 
produce it.
  The last point, they say it is not very important in terms of size. 
Mr. President, the reserves on that property, at $30 a barrel, were 
calculated to be the equivalent of the reserves in the State of Texas. 
Now we understand that at $60 a barrel it has probably doubled. That 
means it is more than the State of Texas. So for everyone who talks 
about a 1-cent impact on gasoline, maybe we could also say it is not 
very important, so why don't we close down all the wells in Texas; they 
are not very important. And they have a lot of environmental problems. 
They were drilled in a different era. If you are worried about the 
environment, take a flight over Texas--no aspersions on Texas because 
it is my State also. But that is a lot of oil, the equivalent of Texas, 
and to run around America and say it is not important is economic 
arrogance.
  The United States needs oil that belongs to itself. We own it. I 
honestly believe, having seen it and studied it, that those who say we 
will destroy that part of the beauty of Alaska are missing the point. 
It will not even be seen. You will not be able to locate----
  The PRESIDENT pro tempore. The Senator's time has expired.
  Mr. DOMENICI. You won't be able to see or locate what transpired. Yet 
America will be safer. I hope we do this. This is the appropriate 
vehicle. I hope cloture is imposed.
  The PRESIDING OFFICER (Ms. Murkowski). The majority has 16 minutes 
and the minority has 22 minutes left. Who yields time?
  The Senator from West Virginia is recognized.
  Mr. BYRD. Madam President, the issue of drilling in the Arctic 
National Wildlife Reserve is close to the heart, dear to the heart of 
the senior Senator from Alaska. I love him. I admire his unyielding 
commitment to the people of his State. I honor him for that. I consider 
him a dear friend, a friend over a long period of time, a friend who is 
close to my heart.
  My remarks today do not reflect upon him or upon his efforts in 
regard to the people he represents. My concern is with the rules of the 
Senate. My concern is with the Senate rules in this book and how the 
rules are threatened--threatened--by what has been unfolding in recent 
days.
  If cloture is invoked on the conference report, Senators have 
discussed raising a rule XXVIII point of order--that is what we hear--
against the conference report. That point of order is expected to be 
sustained by the Chair. The question may then be put to the Senate to 
overturn the ruling of the Chair and, in effect, to negate--get this--
in effect to negate rule XXVIII in order to retain ANWR provisions in 
the conference report.
  It has been noted that if the Senate negates the rule, language 
included in the conference report would restore rule XXVIII by 
directing the Presiding Officer to apply the precedents of the Senate 
in effect at the beginning of the 109th Congress.
  It is true that noncontroversial, extraneous matter is often included 
in conference reports. There is no doubt about that. It is true that 
Senators acquiesce on many occasions, choosing not to invoke rule 
XXVIII. That is true. That is a fact. It is also true that the Senate 
can reinterpret and set new precedents for the application of its rules 
whenever it pleases. The Senate can do that. That is as it ought to be. 
But what has been discussed in recent days is very different--hear me--
very different.
  It will allow a simple majority of Senators, as opposed to the two-
thirds majority required by Senate rule V, to effectively suspend rule 
XXVIII by negating it and then restoring it so that the rule cannot be 
used to prevent the passage of the ANWR provisions that have been 
inserted into the conference report.

[[Page 30716]]

  I say to my colleagues--hear me, hear me, my colleagues on both sides 
of the aisle--that I abhor, I abhor, I abhor this idea. Shame.
  If such a scheme were carried into effect, it could seriously impair 
the Senate rules. Hear me. I know about the rules. I spent years in 
using the rules. Nothing would stand in the way of a majority--
nothing--nothing would stand in the way of a majority, be it Republican 
or be it Democrat, from routinely negating and replacing Senate rule 
XXVIII in order to insert controversial legislation into a conference 
report. This is a very clever, a very clever, a very clever thing that 
is being put forth here.
  Today, this process could be employed to suspend rule XXVIII, but 
tomorrow, it could be employed to suspend the rule XVI prohibition 
against legislation on appropriations bills, and the day after that, it 
could be used to suspend who knows whatever rules.
  Mr. STEVENS. Will the Senator yield?
  Mr. BYRD. Not yet. I will be happy to yield to my friend. He is my 
friend. I love him, I told him that, but I love the Senate better. I 
love the Senate more. I love this man from Alaska. I do, I love him. I 
feel my blood in my veins is with his blood. I love him, but I love the 
Senate more. I came here and swore an oath to uphold the Constitution 
of the United States, and I would die upholding that oath, just as the 
Romans honored an oath. And I feel the same about that. I love my 
friend from Alaska, I say, I love him, but I cannot go down that road. 
I have told him so. I love him, but I love the Senate more.
  I know he is going to speak, and I would love to follow him, but I 
won't be able to, so let my words stand. The record stands.
  If permitted today, the process could be utilized again and again and 
again, with terrible consequences for the Senate rules. I understand 
that Senators are working to avoid this scenario. I hope that effort is 
successful. Allowing this process to continue unfolding as it has in 
recent days would cause significant harm to the Senate as an 
institution.
  Senators should realize that if negated in the next hour, rule XXVIII 
would not be restored in its current form until the President signs 
into law the Defense appropriations conference report, which could take 
as long as 10 days. In that time, any remaining conference reports, 
whether a rewritten PATRIOT Act or a continuing resolution, could 
include almost any--almost any--nongermane provisions without being 
subject to a rule XXVIII point of order.
  It is ironic--oh, it is ironic.
  The PRESIDING OFFICER. The Senator's time has expired.
  Mr. BYRD. May I have 5 more minutes?
  The PRESIDING OFFICER. Is there objection?
  Mr. STEVENS. I would not object as long as the majority's time is 
extended the same period of time.
  Mr. REID. I don't think we will ask the time be extended. Madam 
President, does Senator Cantwell have 5 minutes for him?
  Ms. CANTWELL. Did I understand--
  Mr. REID. Senator Byrd has asked for 5 more minutes out of the time 
of the Senator from Washington. Madam President, does she have it?
  Ms. CANTWELL. I think I understand that the Senator from Alaska asked 
for additional time.
  Mr. STEVENS. I did not hear the Senator.
  Mr. REID. Madam President, I ask unanimous consent that the time for 
the majority and minority be extended 5 minutes each.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BYRD. Madam President, it is ironic that the Senator from Alaska 
and I find ourselves on opposite sides of this issue. In the year 2000, 
we worked together to restore rule XXVIII after it had been negated 4 
years earlier. We agreed that it ought to be restored to try to 
facilitate a return to the regular order in the Senate. My friend 
remembers as I do the yearend Omnibus appropriations bills that would 
come back from conference where conferees had to accept all sorts of 
new matter never before considered by the House or Senate. We included 
an amendment in the fiscal year 2001 Consolidated Appropriations Act to 
restore rule XXVIII, with the support of the majority and the minority 
leaders. Now the question may be put to the Senate to negate rule 
XXVIII again.
  I understand the passions surrounding the issue of ANWR, and I honor 
my friend from Alaska. He is standing up for his State, but I am 
standing for the Senate. I am standing for the Senate, the Senate's 
rules under the Constitution of the United States. I understand the 
passions surrounding the issue of ANWR, but we abandon and undermine 
these rules at a terrible, terrible price. What a price. This 
institution and the liberties that its rules protect must come first--
must come first--before political party, whatever it be, Republican or 
Democrat, and before legislative maneuvering. Those battles are 
fleeting, but the Senate must stand forever.
  I do not want to see the Senate, the forum of the States and the last 
exalted refuge that guarantees a voice to the minority among the din of 
an overwhelming majority, I do not want to see the Senate take the 
position that a majority of Senators are entitled to suspend the Senate 
rules whenever they prove inconvenient. So I urge my colleagues--
please, listen, my friends on both sides of the aisle, Democrats and 
Republicans--I urge my colleagues to think carefully about this issue. 
The powerful abolitionist Senator Charles Sumner called the Senate 
rules the very temple, the very temple of constitutional liberty, and 
he was right. I plead with my colleagues to not dismantle that temple 
of constitutional liberty. I urge my colleagues to preserve rule XXVIII 
in its current form and, if raised, to oppose any motion to overturn 
the ruling of the Chair.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from New Hampshire has 5 minutes.
  Mr. GREGG. Madam President, I rise to praise the Senator from Alaska 
for bringing this bill forward. This bill has a lot of very important 
language in it obviously dealing with our national defense, dealing 
with our ability to be energy independent. But there are two items I 
wish to focus on because if this bill fails, if the cloture motion does 
not occur, they are going to be dramatically impacted.
  The first is the Low-Income Home Energy Assistance Program. There has 
been a lot of grandstanding in the Chamber over the last few months, 
with Members coming down here and offering proposals for how they were 
going to fund Low-Income Home Energy Assistance, otherwise known as 
LIHEAP.
  Most of those proposals have come forward without any offsets, have 
added to the deficit and, therefore, have been subject to a 60-vote 
point of order, and the people offering them knew they were not going 
to pass, but they wanted to take a position.
  This is the first bill that will increase LIHEAP, low-income energy 
assistance, and allow those people who are going to have a very tough 
winter to be able to pay for their energy costs. This bill has 2 
billion additional dollars for low-income energy assistance in it, and 
it is paid for. It is done in a fiscally responsible way.
  Without that money, we will go back to the LIHEAP funding levels 
which are traditional here, and we will not be able to pick up the 
extra costs of LIHEAP, which is low-income energy assistance, which is 
a function of increased oil costs--a very serious problem for a lot of 
low income people who are trying to figure out how they are going to be 
able to heat their homes this winter.
  So if this bill goes down under the cloture motion, we lose the 
LIHEAP dollars, and all those folks who have come to the Chamber and 
claimed they were for LIHEAP will have to explain that.
  Secondly, this bill has in it a major initiative in the area of 
defending our borders; $1.1 billion is put into this bill to upgrade 
the capabilities of the Border Patrol. The Border Patrol needs to

[[Page 30717]]

be dramatically expanded as to personnel and detention facilities, but 
neither of those events can happen until the capital needs of the 
Border Patrol are improved so that the additional agents can be taken 
care of.
  We as a Congress have increased the number of agents by 1,500 in the 
last year, the number of detention beds by 1,000, but we have not 
addressed the capital needs. They need new helicopters, new cars, new 
buildings and facilities to house people. They need some issues 
relative to their training facilities so that we can train more border 
patrol. All that money is right here.
  Everybody who has come to this Chamber talking about the need for a 
better Border Patrol and better capacity to monitor who is coming into 
our country, well, it cannot be done without a strong Border Patrol, 
and this bill commits to that.
  I congratulate the Senator from Alaska for putting in that money. We 
need to get it in the pipeline. We need to get it in the pipeline now 
so that the Border Patrol will have the capital resources it needs to 
make sure they can move forward with our goal, which is to secure the 
border so we know who is coming across the border and the people who 
are coming across the border illegally are apprehended.
  It is a good bill. There are a lot of good proposals in this bill. 
But those two items--getting energy assistance money out to low-income 
individuals who need it, and as we head further into this winter, it is 
going to be critical that we have that money; and supporting the Border 
Patrol effort and making sure that our borders are secure through 
expanding the capital commitment to the Border Patrol with additional 
helicopters, additional housing, additional motor vehicles, and other 
physical activity they need down there, training facilities--are very 
critical elements of policy in this bill which will be lost potentially 
and most likely actually if this cloture motion is not agreed to.
  Therefore, I strongly encourage our colleagues to vote for cloture.
  I reserve the remainder of my time and yield it to the senior Senator 
from Alaska.
  The PRESIDING OFFICER. Who yields time?
  Mr. LOTT. Could I inquire about the time remaining so we can keep 
some balance about how the time is divided?
  The PRESIDING OFFICER. The majority has 16 minutes remaining, and the 
minority has 15 minutes remaining.
  Mr. LOTT. Madam President, then I will take advantage of this time.
  The PRESIDING OFFICER. The Senator is recognized for 4 minutes.
  Mr. LOTT. Madam President, I say to my colleagues, so many of them 
have worked hard on this. They have produced a product that has some 
very important things in it. I know some people will be concerned about 
the process, as I am. I have been concerned, and I have been on both 
sides of the process question. But this is probably the biggest, most 
important bill of this year. We need to realize that.
  Some people say: Oh, this is so unprecedented, and why are we here? I 
have been here a while--not as long as the distinguished Senator from 
West Virginia--but this is not unprecedented. This is where we are just 
about every year. Almost every year, we get down to the end and we have 
some sort of omnibus or combination of bills, and so there is nothing 
so unusual or outlandish about all of this.
  I wish to take just a minute to thank all who have been involved in 
putting this legislation together, particularly my senior colleague 
from Mississippi, Senator Cochran. He held the line. He insisted on 
some reprogramming of the money that had been approved by the Senate 
earlier for installations that were damaged by the hurricane and to 
also include additional money when some people did not want to include 
the money that was needed for our people who are so desperate in the 
Katrina and Rita devastated areas. But he held the line, and he came up 
with a bill that has $29 billion in reprogrammed money out of money 
that was already there--this is reprogramming, not adding to the 
deficit--plus some funds for restoration of our eroding lands in 
Louisiana and Mississippi. This is so vitally important to our region.
  I have hesitated speaking because I am concerned I am going to get 
emotional and not be able to get through this without showing the same 
feeling I hear from my constituents in Mississippi, people in Louisiana 
and Texas. We need this so desperately, and we need it now.
  I know we have been arguing for years about ANWR. I am not going to 
rehash the merits of it. I think it is time we do this. We need the 
energy. I think a lot of the alarms that are expressed about it are not 
accurate. I admire Senator Stevens for his tenacity and the leadership 
of Senator Murkowski for trying to get this done. It is an awfully 
small piece of land. It is something we really need. I hope we would 
not allow this big, important bill to be defeated on this point.
  The most important thing I wish to say today is how badly we need 
this help. There are people right now literally living in tents, small 
trailers, and double-wides who do not know what they are going to do 
with their lives. There are people living with their relatives miles 
and States away because they lost their home. They have a slab, a 
mortgage, no insurance. Many of them lost their job. Some of them lost 
loved ones. Some of them lost their truck and their dog.
  I talked to a man yesterday who cried twice on the phone, pleading 
with me to tell him what he could do. They have hit the wall. Right 
now, they are at that moment of exhaustion, frustration, and decision. 
If we do not provide this help now, if it is put off another month or 2 
months or 3 months, Heaven help us.
  So I plead with my colleagues. I know we might not have designed this 
bill this way in a different time or a different set of circumstances. 
I do not begrudge anybody for what they have done, but I cannot let 
this day go without pleading that we get this done and get it done now.
  I am scheduled to go home tonight to make a speech in the morning to 
the Biloxi, MS, Chamber of Commerce, an area that was devastated by 
this hurricane. I have done this for 32 years in a row. If we do not 
get this bill done, I cannot go home and face those people. Please help 
us, and I will help my colleagues as long as I can avoid this sort of 
situation in the future.
  I thank my colleagues for their time and for the support they have 
already given us.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time? The Senator from Louisiana.
  Ms. LANDRIEU. I ask unanimous consent to speak for 1 minute.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The Senator from Louisiana.
  Ms. LANDRIEU. Madam President, I rise following my colleague from 
Mississippi, to associate myself with his remarks. I see my colleague, 
Senator Vitter, on the Senate floor, and Senator Cochran is not too far 
away. This is a crucial vote for those of us along the gulf coast who 
have faced not just two killer storms but multiple levee breaks that 
have put this great economy of the Nation's only energy coast at risk. 
While we would not design the bill this way if left up to the four of 
us who have been negotiating this package with the help of many of our 
colleagues through the process, I add my voice to say it is imperative 
that we get this $29 billion of direct aid, not to FEMA but directly to 
our Governors and to our people to give them hope that this region can 
be rebuilt. Without this, it will be impossible, and they cannot wait 
another day.
  I thank my Senate colleagues.
  The PRESIDING OFFICER. Who yields time?
  Mr. STEVENS. Madam President, is there time left? What is the 
situation with the time?
  The PRESIDING OFFICER. The minority has 15 minutes. The majority has 
12 minutes remaining.
  The Senator from Washington.
  Mr. REID. I ask unanimous consent the Senator from Alaska be given 
the last speech on this matter.
  The PRESIDING OFFICER. The Senator from Washington.

[[Page 30718]]


  Ms. CANTWELL. I yield to the Senator from Massachusetts 3 minutes.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KERRY. Madam President, I have as passionate a feeling against 
the Arctic Refuge drilling as I know the Presiding Officer and the 
Senator from Alaska, the senior Senator, have for it. I do not believe, 
when you look at the facts dispassionately, on their face, that it is 
going to do any of the things that are promised. On its face, drilling 
in the Alaska National Wildlife Refuge does not help solve America's 
drilling problem. We are overly dependent. We have only 3 percent of 
the oil reserves in the world. There is no way for this to make a dent 
in the world oil supplies, in the supply or price of gasoline or 
America's energy independence. But that is not the debate today. The 
debate today is what the Senator from West Virginia was talking about.
  Every so often in the Senate we have a gut check about what it means 
to be a Senator and why we are here and what our duty is--our duty. The 
arguments we have just heard from the Senator from New Hampshire and 
the Senator from Mississippi--we all agree we want border money. We all 
agree we want the money for our troops. We agree we want the money for 
those hurricane victims. Every single one of us in the Senate knows how 
this place works. If we say no to this breaking of the rules, which is 
what is creating this impasse, within hours we can pass this bill with 
the border money, with our troop money, and with the hurricane money. 
We can do that.
  There is only one thing stopping us. What is stopping us is the fact 
that in an effort to do what they could not do by following the rules, 
they are now going to break the Senate rules for a matter of 
expediency.
  Mr. BYRD. Shame.
  Mr. KERRY. That is what is at stake. That is the vote.
  Mr. BYRD. Shame.
  Mr. KERRY. The whole reason this is being put on DOD is to make it 
tough on Senators. And it is tough--
  Mr. BYRD. Yes.
  Mr. KERRY. Because they fear going home and somebody says: You voted 
against the troops.
  This is not about the troops. We are all supportive of the troops, 
and we can have the money for the Defense bill, but we should do it 
according to the rules of the Senate.
  Mr. BYRD. Right.
  Mr. KERRY. That is what we are here for. That is what this is about. 
There is not one Senator here who does not understand that if we say no 
to cloture now, this can be stripped out. The Senator from Alaska 
himself has said he would strip it out, that if it does not happen they 
can take it out, reconvene the conference, we come back, and if it 
means an extra day to preserve the rules of the Senate, we ought to 
take that extra day.
  The fact is, this bill could have been passed 3 months ago, and it 
was held up because of a stubborn insistence on the issue of torture. 
Now it is being held up in order to break the rules in order to be able 
to do ANWR. I hope our colleagues will stand up for the Senate. It is 
not pro-ANWR or against ANWR. It is not protroops or against troops. It 
is for the Senate.
  The PRESIDING OFFICER. The Senator from Washington.
  Ms. CANTWELL. I yield 1 minute to the Senator from Michigan.
  The PRESIDING OFFICER. The Senator from Michigan is recognized.
  Ms. STABENOW. I thank my friend and colleague who has done such a 
wonderful job on this issue, the Senator from Washington.
  I rise to oppose this motion and to clearly state, along with my 
colleagues, that we all support funding our troops. We support helping 
those in the gulf who have been hurt and are in such difficult times. 
We all support the Low-Income Home Energy Assistance Program. We have 
had the opportunity to vote on these. This is a question of whether 
something that cannot pass following the rules gets put into a bill 
that we all support on behalf of our troops, and somehow we are 
blackmailed into passing that in order to get the funding for the 
troops that we all want and that we all support.
  I oppose this tactic. I appreciate that there are people on both 
sides of the aisle, well-meaning people who disagree on whether we 
should drill in the Alaska National Wildlife Reserve. I say no. But 
this is about whether we will support our troops and not allow the 
process to be hijacked. Let's vote no and get on about the business of 
funding our troops.
  The PRESIDING OFFICER. The time of the Senator has expired. The 
Senator from Washington.
  Ms. CANTWELL. Madam President, if I could be notified when I have 
used 5 minutes.
  I rise today to ask my colleagues to reject this cynical ploy that 
has brought us to this point today. Just a few days before the 
holidays, we are presented with this Defense bill that has become a 
Christmas tree. It is a Christmas tree decorated with giveaways and 
back-door exemptions, and special rules for the oil industry.
  We have been debating the topic of ANWR for 25 years. No one should 
condone such a blatant maneuver as taking the bill that provides 
funding for our men and women in uniform, and stuffing into it a 
provision that was in neither the House nor Senate bills; a provision 
that gives away to the oil industry the ability to drill in the Arctic 
National Wildlife Refuge; a provision that hasn't gone through the 
normal rules and processes that any other business in the Senate would 
have to go through.
  This Senator strongly objects to these provisions for Arctic drilling 
on the merits of the issue. I welcome a debate on the merits of the 
issue. But regardless of those issues, my colleagues should understand 
that every Member of this institution should object to the way this 
provision has been added to this legislation. These measures were 
slipped into the Defense spending bill, and they are a violation of the 
Senate rules. What is more, these provisions were changed after the 
bill was voted out of conference. After my colleagues had signed the 
conference report, the language related to ANWR was changed. So not 
only was it not in the House or Senate conference bills, it was changed 
after members had signed their names to the conference report.
  Madam President, this is a frontal assault, as my colleague, the 
Senator from West Virginia said, on the institution, on the Senate, and 
I ask my colleagues to consider, what is next? If we are to allow 
legislation like this to move forward, what do we have to look forward 
to in the future? Will we be drilling off the coast of Florida? Will we 
be drilling in the Great Lakes? Will we be drilling anywhere, just 
because it can be put in a defense measure?
  I ask my colleagues to make sure that we send a message that is loud 
and clear, that we are not for breaking Senate rules.
  Over the last week or so there have been more than 20 different 
editorials from papers across the country, from New Hampshire to 
Oregon, from Minnesota to Florida and elsewhere around the country, 
talking about these issues and why we should not be in this situation.
  From the Oregon newspaper--basically it said this is a shortsighted 
plan, and it is ``disgusting that lawmakers would try to equate oil 
profits with our Nation's true defense needs.''
  Another newspaper in New York said it was an eleventh hour ploy in 
Congress by Republican leadership, lowering the bar and slapping 
Alaskan oil drilling onto a must-pass bill to pay for the Iraq war.
  Another criticism from the Oregonian:

       A vote for the Arctic is not a vote against our Nation's 
     military.

  We are not going to be blackmailed into passing this legislation, 
just because someone at the eleventh hour sticks this language in.
  I saw in a news commentary, the Scarborough Report--this from 
somebody who supports drilling in Alaska--who basically said that this 
provision is a ``politically toxic rider to funding our troops in 
Badhdad, in Iraq, in Afghanistan, and across the world. It is 
unforgivable,'' this tactic.
  And the military, retired leaders sent a letter saying:


[[Page 30719]]

     . . . any effort to attach this controversial legislative 
     language authorizing drilling to the Defense appropriations 
     conference report will jeopardize Congress' ability to 
     provide our troops and their families with the resources they 
     need in a timely fashion.

  We did not have to get to this point. We did not have to get to this 
point today, where Members are being forced to vote on drilling in the 
Arctic just because we have to pass a Defense appropriations bill.
  I ask my colleagues to consider this. I do believe in a different 
view than this legislation when it comes to energy independence. I do 
believe that being dependent on foreign oil at more than 50 percent 
today is too much. There is no way we are going to drill our way to 
energy independence in the United States. God only gave the United 
States 3 percent of the world's oil reserves, so we should move off of 
that and on to other supply.
  Today we are here as Senators to say whether we are going to allow 
the Senate rules to be broken; whether we are going to try to pass some 
language that never appeared in any Senate bill, but mysteriously 
appeared in this conference report at the eleventh hour.
  I do not think we should give a green light to oil companies in this 
fashion, giving them the ability to circumvent seven Federal laws and 
countless regulations, regulations with which every other business in 
America has to comply.
  The PRESIDING OFFICER. The Senator has consumed 5 minutes.
  Ms. CANTWELL. I thank the Chair. I will consume another minute.
  I hope the Senate will turn down this language, that we will make 
sure we do not give an exemption to oil companies from all these laws, 
and that we certainly do not do so on the backs of our military men and 
women.
  I yield the floor and yield 3 minutes to the Senator from 
Connecticut.
  The PRESIDING OFFICER. The Senator from Connecticut.
  Mr. LIEBERMAN. Madam President, when I first ran for the Senate in 
1988, the question of whether to allow drilling for oil in the Arctic 
Refuge was an important choice before the voters of Connecticut. My 
opponent supported it. I opposed it. I opposed it because I wanted to 
protect this magnificent piece of America's land and life forever, 
pretty much as nature's God, as our Founders would have said, created 
it.
  Second, I thought drilling for oil in the Arctic Refuge perpetuated a 
dangerous myth that we could drill our way out of energy dependence on 
foreign oil.
  When I came to the Senate, I found, of course, many people who 
supported drilling for oil in ANWR as strongly as I opposed it. Over 
the last 17 years, we have had, almost every year, good, fair fights on 
this issue according to the rules. In most of them, those of us who 
oppose oil drilling in the Arctic Refuge have prevailed because the 
proponents have not been able to achieve the 60 votes necessary under 
the Senate rules. What they have done in the last year or so is 
attempted to suspend and circumvent those rules, first on the budget 
matters, circumventing the Byrd rule. In the Senate, they prevailed. In 
the House, a very courageous band of Republicans and Democrats stood up 
and said no.
  At the eleventh hour, the proponents of oil drilling in ANWR have 
attached this provision where it does not belong--on the Department of 
Defense appropriations bill--in the hope that we will be intimidated 
into voting for something we don't believe is right because we don't 
want to be accused of threatening support for our troops. I have too 
much of a sense of responsibility, too much respect for the Senate, and 
too much respect for my constituents to be intimidated to support 
something I believe is wrong and clearly in contravention of our rules.
  Somebody said to me the other day: Senator Lieberman, you are such a 
strong supporter of the military. How can you intend to cast this vote 
which will threaten funding for our troops in the middle of a war?
  My answer is: I am not the one threatening support for our military 
in the middle of the war. It is those who have had the audacity and 
disrespect for our rules to attach this provision to funding for our 
troops who are endangering it.
  Second, if we yield to this tactic this time on ANWR, next year it 
will be someone else's pet policy attached to the Department of Defense 
appropriations bill, and the year after, yet another.
  In my opinion, if you support our military and you want security of 
funding, particularly in time of war, you will vote against cloture to 
protect the sanctity, if you will, the primacy of this funding for the 
military.
  Finally, if, as I hope and believe, the Senate rises up and denies 
cloture, our troops will not lose their funding. Members of Congress of 
both parties and the President will not allow that to happen. My dear 
friend, the senior Senator from Alaska, is too much of a patriot, no 
matter how disappointed he is if cloture is denied, to take that anger 
out on our troops.
  I appeal to my colleagues to vote against cloture. I am going to do 
it, not just because I am opposed to drilling for oil in the Arctic 
Refuge but because I support the U.S. military, and I refuse to have 
the military and its funding held hostage to this move in violation of 
the Senate rules.
  I yield the floor.
  Ms. CANTWELL. Madam President, how much time do I have remaining?
  The PRESIDING OFFICER. Two minutes.
  Ms. CANTWELL. I yield the remaining 2 minutes to the Senator from 
Illinois, who has been hard working on this subject.
  The PRESIDING OFFICER. The Senator from Illinois is recognized for 2 
minutes.
  Mr. DURBIN. Madam President, I thank the Senator from Washington for 
her leadership, along with Senator Lieberman, Senator Kerry, and 
others.
  This vote on cloture comes down to two basic issues. The first is the 
issue of energy.
  Fifty years ago, President Eisenhower set this land aside. He said 
this Wildlife Refuge will be here for future generations. We ought to 
protect it and preserve it. Now we are be being told that in the name 
of energy, we have no choice but to drill in this Wildlife Refuge.
  What are we saying to Americans? What are we saying to our children? 
That we are so bereft of ideas, that we are so devoid of leadership, 
that we are so self-consumed, the only thing we can do to provide 
energy for America is to break our promise to future generations to 
protect this important piece of our heritage? I think not. The 
alternative is innovation. The alternative is conservation. The 
alternative is a real energy policy--not drilling in a wildlife refuge.
  To think that we are bringing up this issue on the Defense 
appropriations bill--there was a time when this bill was considered in 
a sacred manner. It was usually the first appropriations bill. It was 
very rarely ever embroiled in a political controversy not directly 
related to the military. But this time, it is the second-to-last 
appropriations bill. It has become the vehicle for a variety of 
controversial political issues.
  We show no respect for our men and women in uniform by taking this 
bill to this point in history where it becomes the showplace and the 
forum for all of these political squabbles. We should show respect for 
our men and women in uniform by defeating this cloture motion, by 
taking out this objectionable provision, and by quickly moving to pass 
this bill so we fully fund all that is necessary to help or men and 
women in uniform. The senior Senator from Alaska promised it, said that 
is what will occur.
  I hope we prevail on the motion against cloture, that we can move 
very quickly to pass a clean Defense appropriations.
  The PRESIDING OFFICER. The minority leader.
  Mr. REID. Madam President, Senator Frist and I have spoken. After the 
distinguished Senator from Alaska gives the closing statement, Senator 
Frist will speak, and then I will speak. We will use leader time.
  The PRESIDING OFFICER. The Senator from Alaska.

[[Page 30720]]


  Mr. STEVENS. Madam President, I hope the good Lord will help me hold 
my temper, and I think that will be the case.
  The Senator from Illinois said some things that were not true. I have 
not promised him one single thing. As a matter of fact, I asked for his 
apology once; I wouldn't accept it now.
  I wish to tell the Senator that I first went to the North Slope--and 
there are people from the North Slope right up in the gallery--I went 
to the North Slope first in 1953 as a young U.S. attorney. I have been 
going there ever since. My best friends in Alaska are up there. My 
first wife used to go up there and go on whaling trips and spend days 
with them. We know this Arctic. You don't know the Arctic at all. They 
will tell you, as I will tell you, that it is 2,000 acres of Arctic. Is 
that worth this fight? Did I bring this fight on? It was the minority 
in the House that refused to vote for the rule that we passed on the 
reconciliation bill. This provision was in the reconciliation bill. The 
majority voted for it. Every other time it has been brought up, except 
once, the minority has filibustered keeping the commitment made to me 
by two Democratic Senators in 1980, Senator Jackson and Senator 
Tsongas. They wrote the amendment; I didn't. They wrote the amendment 
that kept this area open for oil and gas leases.
  I tell the Senator from Illinois that I was the one who drew the 
order that was issued creating an Arctic wildlife range in 1958 in 
which oil and gas leasing was specifically permitted. It has never been 
closed. The Jackson-Tsongas amendment kept it open for oil and gas 
exploration and development subject to an environmental impact 
statement being approved by both Congress and the President. But we are 
here today now.
  As my good friend from West Virginia says, we are in the temple. I 
have lived in the temple now for 37 years. I have studied beside my 
friend from West Virginia. But I will tell him he is wrong. Nothing in 
this bill will allow the majority to go amok. No majority could do 
anything.
  In the spirit of trying to prevent what happened before when the 
Chair was overruled in 1996--and it took 4 years before we restored 
rule XXVIII--in the spirit of that, we put a provision in this bill, at 
the suggestion of the former Parliamentarian, that we assured there 
would not be that hiatus. Should someone raise a point of order against 
this and the Chair would be overruled, we put a provision in it that 
would prevent rule XXVIII from being suspended again.
  I have been called a lot of things in the last few weeks. I didn't 
think of putting this in the Defense bill. It was a group from the 
House, Members of the minority, who came to me and asked me to do this, 
put it in the Defense appropriations bill. I have managed the Defense 
appropriations bill, or my good friend from Hawaii now has managed it, 
since 1981. I challenge anyone in the Senate to say they have greater 
commitment to the military than the two of us.
  As a matter of fact, as I look at the minority, I ask any one of you, 
has anyone ever come to me as chairman of the appropriations or any 
other function and told me that you needed help for your State, that I 
have turned you down? I have fought with you. I don't care whether it 
was Senator Harkin, Senator Byrd, every Member. I have probably been 
the most bipartisan Senator on this side of the aisle in history other 
than Arthur Vandenberg.
  Now, once again, let me say this. Every time this subject has come 
up--living up to the commitment of Senator Tsongas and Senator 
Jackson--but once, the minority has filibustered. That once we did get 
it passed and President Clinton vetoed it. So here I am now, after 25 
years, and my two friends--they were friends, Senator Tsongas and 
Senator Jackson--they were friends so close that it caused people at 
home to place full-page ads in the paper saying: Ted Stevens, come 
home. You don't represent us. We believe the Congress will keep this 
commitment.
  That was made in 1980. I have labored here and I have never violated 
the rules. There is nothing I have done here that has violated the 
rules. Nothing in the bill before us violates the rules. I have lived 
by the rules.
  Now I find myself second in age and second in seniority to my friend 
from West Virginia--at least I am the senior one on this side.
  I will talk about this amendment. First, we cannot change the 
judicial review provision.
  Mr. KERRY. Will the Senator yield?
  Mr. STEVENS. I will not yield. No one yielded to me.
  The impact of what I am saying is, we needed a new income stream.
  I went to New Orleans with my friend Senator Vitter, and I sought 
Senator Landrieu's people down there. I saw the Gulf Coast States. They 
have lost everything. I have never seen a disaster such as that. I was 
faced with a question of how to find a revenue stream to help my 
friends. I know they are my friends. I know disasters when I see them.
  I also was faced with a question from the border security people 
saying, they have to have money this year. We could not get it. We 
could not get approval of emergencies.
  So I met with the Congressional Budget Office. I said, I think you 
have underestimated the income from ANWR, you have underestimated 
income from spectrum sales. I have a letter from CBO somewhere. I will 
be glad to put it in the Record. They said, yes, we did underestimate 
revenues from ANWR. It will be at least twice as much as estimated, but 
we cannot change it now. But it is true. They also agreed with me, 
making the assumptions I made, that there will be more money from 
spectrum. We allocated the spectrum money in the bill in excess to the 
amount committed in the bill just passed. We take care of those needs.
  The first responders is the first group. When you look at the first 
responders group, they need equipment. There are people involved in 
homeland security. This bill has $3.1 billion for them in terms of the 
border security. There is $1.1 billion in emergency funds offset by 
future revenues from ANWR.
  The second group deals with the first responders, particularly in New 
York and throughout the country. That tragedy made us aware that first 
responders could not communicate with one another. In this bill, we 
have allocated $1 billion for first responders. That is interoperable 
communications, equipment, grants. We know if that is there, they will 
be able to communicate with one another if, in fact, there is such a 
disaster.
  We have also public safety people. They have come to me in the last 
week--this is a list of all the groups that have come to me now--in 
support of this bill. They need money to train and respond in the event 
we have another terrorist attack.
  Also in this bill is money for home heating. Part of the income from 
ANWR is dedicated to home heating. The bill provides $2 billion in 
emergency money--yes, I said emergency--for 2006 in this bill.
  If you take out ANWR, you take out that money. If you take out that 
money, you do not have money for LIHEAP this year other than what is in 
the bill just passed and that is what was available last year. As we 
all know, the price of energy has gone up.
  Yes, a vote for this bill--and to bring cloture to this bill--helps 
our Nation's farmers--our State does not have many farmers. We have 
some great people out there trying to farm. They do a good job, but 
they do not have the problems of what I call the south 48. Their 
problems are high fuel prices, which we are paying, but also 
fertilizer. Fertilizer prices are off the wall. We do not have that.
  We are able to get the money for disaster funding in this bill for 
farmers in dealing with the conservation programs that are so necessary 
to ensure productivity for the lands of our country for generations to 
come.
  Some Members of the minority have challenged my sincerity with regard 
to this. I lived through an earthquake. I lived through the flood in 
Fairbanks in 1966. This vote is a vote for the people of Louisiana, 
Alabama, Texas, Florida, and Mississippi. As I said, I went down

[[Page 30721]]

there. I viewed the damage of that city. I saw devastation in China in 
World War II where the Japanese wiped out cities, but I never saw 
devastation like I saw in New Orleans. It was mile after mile after 
mile of homes of ordinary people, not just damaged, but just not there. 
Not there.
  When I came back, I made a commitment to the two Senators that I 
would help them. I have tried to keep that promise.
  This bill provides on the Katrina side $29 billion for education, 
housing, reconstruction of disaster areas. It is very needed. The 
people of New Orleans cannot go home for Christmas. I cannot go home 
for Christmas. I have already canceled my trip. I spent one time before 
in the chair on New Year's Eve. I don't look forward to it. I want 
Members to know we will be here until we settle this problem. The 
severability clause in this bill is not new. It has been there before.
  I am not a fair-weather friend. I have not turned down one person on 
that side of the aisle in my life without trying to help. I did not 
even go to you and say, Please help me. I did talk to one or more of 
you about the fact that I thought this was the thing to do. I don't 
deserve some of the comments that have been made by some Senators in 
this Senate right now.
  We are going to stay here until this is finished. As I said, a vote 
for cloture is a vote for the troops. The Senator from Massachusetts 
says it is not. But the easiest way to get the money to troops is to 
vote for cloture. We will be home for Christmas if we do.
  The PRESIDING OFFICER. The Senator has 30 seconds remaining.
  Mr. STEVENS. I say this to my friend from West Virginia: In all the 
time we have worked together I have great admiration for you and 
studied at your feet, but I do not believe I deserved that speech on 
the rules. I have not violated the rules. I do not ask the Senate to 
violate the rules. I ask them to vote for cloture, which is part of the 
rules, and see where we go from there.
  Mr. REID. All time is expired; is that right?
  The PRESIDING OFFICER. The Senator is correct.
  Mr. REID. I claim my leader time.
  The PRESIDING OFFICER (Mr. Alexander). The minority leader.
  Mr. REID. Mr. President, the Senate is a body of process and a body 
of order. We have rules. These rules separate us from the House of 
Representatives. The Founding Fathers, visionary as they were, 
recognized that. That is why this Senate has worked so well, the 
Constitution. These rules separate us from the House of 
Representatives. The House is subject to partisan desires of the 
majority. We are not.
  For more than 200 years, through Democratic majorities and Republican 
majorities, the Senate has lived by these rules. But twice this year--
once this spring and now today--the Republican majority has shown us 
how far they are willing to go outside the rules to get what they want.
  The first attempt to flex their muscle, to show their power and 
change the Senate rules, was the so-called nuclear option. This was 
stopped when courageous Senators, Democrats and Republicans, from both 
sides of the aisle stood against it.
  We need to see this same bipartisan courage today. The majority is 
threatening to break the rules again--that is what this is all about--
but this time they are holding the U.S. military--yes, those men and 
women, as we stand here, are standing up in Iraq and Afghanistan--our 
military is being held hostage by this issue, Arctic drilling.
  Senator Stevens is violating rule XXVIII in order to pass ANWR. The 
Senator knows he lacks the votes to get this boon for special interests 
passed the right way, so he is willing to break the rules to jam it 
through.
  Yes, I have worked with Senator Stevens all the time I have been in 
the Senate. I have great admiration and respect for the Senator from 
Alaska. But the bill does not leave just the ANWR provision standing 
out there like a sore thumb. Another gift to special interests is the 
drug immunity provision. The legislation was not included in either the 
House or the Senate versions of the Senate appropriations bill, and 
conferees were given written assurances it would not appear in the 
conference report. Yet here it is because House and Senate leaders, in 
the middle of the night, insisted that the rules be broken to include 
it.
  This process is not fair to the Senate, and certainly not fair to the 
U.S. military, and certainly--certainly--not fair to the American 
people. It is time we said no to an abuse of power, no to those who 
seek to abuse the rules in the name of special interests, and no to 
turning the Senate into the House of Representatives.
  We have rules for a reason. We have rules in the Senate for a reason. 
Why? To create stability. It creates certainty. These rules serve the 
majority, and they serve the minority, and they should not be broken 
because of special interests. They should not be broken because of the 
powerful.
  I am going to vote against cloture today. Now, I know there are some 
in the majority who have threatened various things if cloture is not 
invoked. But I say, Mr. President, thankfully, we have Senator Stevens' 
own words to tell us what will happen. Here is what the distinguished 
Senator from Alaska said, the bill manager. He told the Fairbanks Daily 
News-Miner, this past Sunday:

       If a Senate filibuster over ANWR stops the defense bill, 
     the legislation can be quickly modified and passed so there 
     is no impact on the military's finances.

  He went on to say:

       If we lose, then . . . ANWR will be out.

  It is that simple. Senator Stevens is a man of his word, as he stated 
on the floor today. And he said if we don't get cloture, the bill goes 
back to the conferees. Mr. President, I do not know how this vote is 
going to turn out. We all know it is very close. But I hope ANWR gets 
taken out. All of us stand with our troops. And all of us want to do 
what is right for the Senate and for our country. That is why our best 
course of action is to vote ``no'' on cloture and follow the roadmap 
Senator Stevens himself has provided.
  The PRESIDING OFFICER. The majority leader.
  Mr. FRIST. America is watching what this body does. And America tells 
us to win the war on terror. Do not accept retreat and defeat. America 
is watching this body, and they are telling us to do something about 
energy prices, that of home heating oil and gasoline prices, and to 
increase the energy supply in this country.
  America tells us to strengthen our porous borders, to enforce the 
laws of the land. We are a nation of laws. Yes, we are a nation of 
immigrants, a wonderful nation of immigrants, but a nation of laws.
  America tells us to support the victims of Hurricanes Rita and 
Katrina, and what we are about to vote on in this bill is all of the 
above. The Democrats should not filibuster our Defense appropriations 
bill. And that is what we will be voting on in a few minutes.
  We are a nation at war. Right now, our troops are engaged on the 
battlefield with a determined enemy. The consequences of failure to 
invoke cloture on this Defense appropriations bill, when we have troops 
in the field, are grave. We have a responsibility not only to fully 
support our troops when they are at war but a responsibility also to 
secure our economic viability. We need to reduce that dependence--that 
dangerous dependence--on foreign sources of oil.
  The ANWR provision promises to unlock up to 14 billion barrels of 
oil, nearly 1 million barrels a day at full production. ANWR has been 
determined by experts to be the single largest and most promising 
onshore oil reserve in North America. We need to put these energy 
resources to work for America to reduce those prices, which every 
American feels, for our economic security and, indeed, for our national 
security.
  The ANWR provision is responsible. It is reasonable. It is critical 
to meeting our economic and security priorities.
  And then we have the victims of Hurricanes Rita and Katrina. They 
have suffered terrible loss--we have suffered with them--and 
devastation. This bill, the bill we are about to vote upon, includes a 
long-term funding stream for

[[Page 30722]]

gulf coast recovery, as well as the most significant Katrina aid 
recovery package that Congress has yet allocated, including funds to 
immediately strengthen and repair the New Orleans levees.
  The Defense bill provides $3 billion for border security to tighten 
those borders. We are a nation of laws. It is time to enforce them. 
There is $1 billion for interoperable communications equipment, the 
first priority of the 9/11 Commission.
  We have long-term funding, as Senator Gregg has spoken to, to help 
low-income Americans pay their heating bills this winter. I am 
disturbed--disturbed--that there are Senators who believe it is a 
victory to kill, to filibuster, to stop, to block this bill.
  I urge my colleagues to carefully consider the consequences of the 
vote they are about to cast and the profound reverberations it will 
have on America's economic and national security.
  A vote for cloture is, indeed, a vote for our troops.
  I yield the floor.


                             Cloture Motion

  The PRESIDING OFFICER. Under the previous order, the Chair lays 
before the Senate the pending cloture motion, which the clerk will 
state.
  The bill clerk read as follows:

                             Cloture Motion

       We the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     do hereby move to bring to a close debate on the conference 
     report to accompany H.R. 2863, the Department of Defense 
     Appropriations Act of 2006.

         Bill Frist, John Cornyn, John Thune, Jeff Sessions, 
           Lindsey Graham, Saxby Chambliss, Richard Shelby, Jon 
           Kyl, Mike Crapo, Mitch McConnell, Ted Stevens, Thad 
           Cochran, C.S. Bond, Conrad Burns, Pete Domenici, Judd 
           Gregg, John Warner.

  The PRESIDING OFFICER. By unanimous consent, the mandatory quorum 
call has been waived.
  The question is, Is it the sense of the Senate that debate on the 
conference report to accompany H.R. 2863, the Department of Defense 
Appropriations Act of 2006, shall be brought to a close?
  The yeas and nays are mandatory under the rule.
  The clerk will call the roll.
  The legislative clerk called the roll.
  The yeas and nays resulted--yeas 56, nays 44, as follows:

                      [Rollcall Vote No. 364 Leg.]

                                YEAS--56

     Akaka
     Alexander
     Allard
     Allen
     Bennett
     Bond
     Brownback
     Bunning
     Burns
     Burr
     Chambliss
     Coburn
     Cochran
     Coleman
     Collins
     Cornyn
     Craig
     Crapo
     DeMint
     Dole
     Domenici
     Ensign
     Enzi
     Graham
     Grassley
     Gregg
     Hagel
     Hatch
     Hutchison
     Inhofe
     Inouye
     Isakson
     Kyl
     Landrieu
     Lott
     Lugar
     Martinez
     McCain
     McConnell
     Murkowski
     Nelson (NE)
     Roberts
     Santorum
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stevens
     Sununu
     Talent
     Thomas
     Thune
     Vitter
     Voinovich
     Warner

                                NAYS--44

     Baucus
     Bayh
     Biden
     Bingaman
     Boxer
     Byrd
     Cantwell
     Carper
     Chafee
     Clinton
     Conrad
     Corzine
     Dayton
     DeWine
     Dodd
     Dorgan
     Durbin
     Feingold
     Feinstein
     Frist
     Harkin
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Mikulski
     Murray
     Nelson (FL)
     Obama
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sarbanes
     Schumer
     Stabenow
     Wyden
  The PRESIDING OFFICER. On this vote, the yeas are 56 and the nays are 
44. Three-fifths of the Senators duly chosen and sworn not having voted 
in the affirmative, the motion is rejected.
  The majority leader is recognized.
  Mr. FRIST. I enter a motion to reconsider the previous vote.
  The PRESIDING OFFICER. The motion is entered.
  Mr. FRIST. I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Burr). The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. FRIST. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Thomas). Without objection, it is so 
ordered.

                          ____________________




                 CORRECTING THE ENROLLMENT OF H.R. 2863

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the concurrent resolution correcting the enrollment of H.R. 
2863 which is at the desk and was introduced by Senator Cantwell and 
relates to the conference report to accompany the Defense 
appropriations bill; I further ask consent that there be 30 minutes for 
debate equally divided between the two leaders or their designees; that 
no amendments or motions be in order, and that following that time the 
Senate proceed to a vote on the adoption of the resolution; I further 
ask that immediately following that vote the Senate proceed to a vote 
on the adoption of the conference report to accompany H.R. 2863; 
provided further that the cloture vote with respect to the Defense 
authorization be vitiated and the Senate proceed to an immediate vote 
on adoption of that conference report following the vote on the Defense 
appropriations measure; I further ask consent that once the House has 
agreed to the concurrent resolution without amendment, then the Labor-
HHS conference report be considered adopted; further that if the 
concurrent resolution that corrects the enrollment of the Defense bill 
is not agreed to tomorrow, then passage of the Defense appropriations 
bill is vitiated.
  Finally, I ask consent that if the House has not adopted the 
resolution, then, notwithstanding the adoption of the adjournment 
resolution, the Senate would reconvene Thursday, December 22, at 8 p.m.
  I further ask consent that following the above action, the Senate 
proceed to a bill at the desk relating to the extension of the PATRIOT 
Act, the bill be considered read three times and passed, and the motion 
to reconsider be laid on the table.
  Mr. STEVENS. Mr. President, parliamentary inquiry.
  The PRESIDING OFFICER. The Senator will state his inquiry.
  Mr. STEVENS. If the Leader's unanimous consent request is granted, 
the bill is thus sent to the House. Will that bill violate rule XXVIII? 
I am talking about the conference report. Will that conference report 
violate rule XXVIII?
  The PRESIDING OFFICER. The Senator would have to specify a specific 
provision.
  Mr. STEVENS. I am speaking of the ANWR provisions and Katrina 
provisions and avian flu provisions. Will they violate rule XXVIII?
  The PRESIDING OFFICER. In the opinion of the Chair, those provisions 
violate rule XXVIII.
  Mr. STEVENS. I can't hear the Chair.
  The PRESIDING OFFICER. Those provisions do violate rule XXVIII.
  Mr. STEVENS. So if this consent is granted, rule XXVIII is violated 
by this conference report; is that correct? Is that my understanding?
  The PRESIDING OFFICER. That issue has not been clearly joined by this 
agreement.
  Mr. STEVENS. How do I join it? I want an agreement that this bill 
violates rule XXVIII.
  The PRESIDING OFFICER. The Senator would need to raise a point of 
order when the measure is pending.
  Mr. STEVENS. I suggest the absence of a quorum. I do suggest the 
absence of a quorum.
  The PRESIDING OFFICER The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. FRIST. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Chambliss). Without objection, it is so 
ordered.
  Mr. STEVENS. There has been some confusion. Let me restate my 
parliamentary inquiry. If sections C and E are removed, would the 
conference report as thus constituted contain violations of rule 
XXVIII?
  The PRESIDING OFFICER. The Chair is of the opinion that there

[[Page 30723]]

would be at least one violation of rule XXVIII.
  Mr. STEVENS. I can assure you there are many more.
  Thank you very much.
  Mr. LEVIN. Mr. President, parliamentary inquiry: Has the point of 
order been raised against any provision that would be left in this 
bill?
  The PRESIDING OFFICER. No, it hasn't.
  Mr. LEVIN. I thank the Chair.
  Mr. STEVENS. Wait. I will be glad to make a point of order, if you 
wish me to do it. Just so I understand the ruling, parliamentary 
inquiry: Did the Chair just say there is no point of order against this 
bill?
  The PRESIDING OFFICER. The majority leader is recognized.
  Mr. STEVENS. I want to make sure I understand this. I would be 
pleased to make a point of order so the Chair will rule, if you want me 
to do it. We have an understanding that there are violations of rule 
XXVIII in this bill.
  Mr. REID. Yes, there are.
  Mr. STEVENS. Thank you.
  Mr. FRIST. Mr. President, I renew my unanimous consent request.
  Mr. KENNEDY. Mr. President, reserving the right to object, I had 
requested in the time that was requested 15 minutes. That is clear. 
Furthermore, reserving the right to object, I ask unanimous consent to 
amend the resolution to strike division E, the Public Readiness and 
Emergency Preparedness Act. This is the provision that provides drug 
companies with unprecedented immunity from liability which was added to 
the Defense appropriations bill in the conference during the middle of 
the night. It does not belong in this bill. I ask unanimous consent.
  The PRESIDING OFFICER. Is there objection?
  Mr. FRIST. Mr. President, I object.
  The PRESIDING OFFICER. There is objection.
  Is there objection to the unanimous consent request?
  Mrs. FEINSTEIN. Mr. President, reserving the right to object, it is 
my understanding--I ask that it be confirmed--that titles III and VII 
of the conference report to accompany H.R. 3122 concerning port 
security and the Combat Meth Act are not in this unanimous consent 
agreement. Is that correct?
  Mr. FRIST. Mr. President, that is correct.
  Mrs. FEINSTEIN. Mr. President, let me ask this question. The question 
is whether I can have such a commitment from the majority leader, since 
these are both bills that have passed this body unanimously and have 
also been conferenced by the House, if we could consider them when we 
come back in January to be the first order of business?
  Mr. FRIST. Mr. President, responding to the Senator from California, 
both of these issues--port security, as well as the methamphetamine--
are very important issues that I believe this body unanimously will 
support. And after consultation with the Democratic leader, we will 
address those very early when we come back in January or February. They 
are both very important bills.
  Mrs. FEINSTEIN. Does the minority leader concur in that?
  Mr. REID. Without reservation.
  Mrs. FEINSTEIN. Thank you. January or February. Thank you very much.
  The PRESIDING OFFICER. Is there objection to the unanimous consent?
  Without objection, it is so ordered.
  Mr. FRIST. Mr. President, real quickly, this means that we will have 
30 minutes of total debate followed by the concurrent resolution, 
followed immediately by Defense appropriations, followed by the 
authorization by voice. That is my understanding.
  Mr. LEVIN. Mr. President, reserving the right to object, I don't plan 
to, and I want to make sure no one needs a rollcall vote--I do not--on 
the authorization bill. I want to doublecheck with a few people on this 
side.
  Mr. FRIST. We already have unanimous consent, and I believe we will 
do that.
  Mr. LEAHY. Mr. President, might I direct a question to the 
distinguished majority leader through the Chair?
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. LEAHY. Mr. President, if I could have the attention of the 
majority leader, am I correct in my understanding that the Sununu-Leahy 
et al 6-month extension of the PATRIOT Act has been included? And that 
is where we are with the conference report still on the calendar, but 
the 6 months will be passed?
  Mr. FRIST. Mr. President, as part of the unanimous consent is the 6-
month extension on the PATRIOT Act.
  Mr. LEAHY. Sununu-Leahy et al. Thank you. I thank the Chair. I thank 
the two distinguished leaders.
  If I might note for a moment, both the distinguished Republican 
leader and the Democratic leader have worked extremely hard on this, as 
has the Senator from New Hampshire, Mr. Sununu, and Mr. Gregg and 
others, and, of course, the distinguished chairman of the committee, 
Senator Specter.
  I think this is a reasonable conclusion that will allow the Judiciary 
Committee to look at some of the questions which have legitimately been 
raised and would not have been heard had this gone through otherwise.
  Mr. REID. Mr. President, I yield 15 minutes to Senator Kennedy.
  The PRESIDING OFFICER. The clerk will report the concurrent 
resolution.
  The bill clerk read as follows:

       A concurrent resolution (S. Con. Res. 74) correcting the 
     enrollment of H.R. 2863.

  The Senate proceeded to consider the concurrent resolution.
  The PRESIDING OFFICER. Who yields time?
  Mr. REID. Mr. President, I yield 15 minutes to the Senator from 
Massachusetts.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KENNEDY. Mr. President, will the Chair remind me when I have 3 
minutes remaining?
  Mr. President, over these last several months in the Senate we have 
addressed the issue of a potential epidemic, the pandemic flu. There 
have been two areas of leadership. One has been in our HELP Committee 
under the chairmanship of Senator Enzi and Senator Burr, where we have 
tried to work out a whole approach to deal with the area of epidemics 
and bioterrorist attacks, and another with the leadership of Senator 
Harkin, who had asked that we commit some $8 billion to be able to 
purchase vaccines and also antiviral drugs for influenza.
  I attended the NIH announcement by the President of the United States 
when he actually requested $7.1 billion to prepare for a flu pandemic. 
Those funds were going to be used for public health, first of all, to 
be able to detect flu outbreaks overseas; secondly, to be able to 
detect them here at home; then to be able to build containment 
capacities, what we call ``surge'' capacity; and, also to have a 
generously funded vaccine program, and also an antiviral program.
  That is really where we were before the Defense appropriations bill.
  A number of us on the HELP Committee had a series of negotiations to 
try to make a bipartisan recommendation to the Senate. We did so on 
pensions, on higher education, on workforce, and on Head Start. We were 
able to do so in a number of different areas. And we were moving ahead 
toward making a recommendation in issues related to the purchase of 
vaccines and antivirals. There are two important issues to consider 
with the purchase of pandemic influenza vaccine and antivirals. One is 
the danger to an individual that is going to take those vaccines or 
antivirals; and the other is the risk those dangers raise for the 
companies that produce them. One is the compensation issue, and the 
other is the liability issue.
  We have dealt with these issues on several occasions. We dealt with 
them with respect to the swine flu. We dealt with these issues with 
smallpox. We dealt with these issues for childhood vaccines.
  One thing we know from experience is, if you do not have an adequate 
compensation program, no matter how much money you put in for the 
purchase of vaccines or of antivirals, the program is not going to 
work. There has to be an assurance that, if first responders and others 
are going to go out

[[Page 30724]]

there and take their chance with these new vaccines or other drugs, 
that if they become grievously ill or sick or even die there will be 
some compensation for them and for their families for lost wages and 
medical costs and the like. And there has to be the assurance to the 
first responders and others that those vaccines are not going to be 
produced negligently. Otherwise, they will not take the risk of using 
the vaccines or drugs. That is the framework.
  We have to ask ourselves, for the liability and compensation 
provisions that have been put in the Defense appropriations bill, how 
do they line up with what has been successful in the past, with 
bipartisan efforts? These provisions fail in every respect of the word.
  First, there is a compensation program that is not funded. It is not 
funded. It will depend upon future appropriations. If you want to buy a 
pig in a poke, buy that particular provision. All you have to do is ask 
my friend from Utah, Senator Hatch, how we have funded the compensation 
program for the downwinders. Over a long period of time, we did not 
have the required payments for them, when we know, as a direct result 
of governmental action, we adversely affected tens, even hundreds, of 
thousands of downwinders in the State of Utah and in the West more 
broadly. We have not measured up to our responsibilities to them, and 
the compensation program before us now is no more adequate. And as a 
consequence, this compensation program is not going to work.
  Not only that, what have we done with regard to the manufacturers? 
What kind of immunity have we given to them? It's really 
extraordinarily broad, effectively complete. What they call the ``bad 
actor'' provision describes the circumstances in which the immunity 
from liability fails. And it's really very narrow, because a company's 
actions have to meet a very narrow definition of willful misconduct.
  Page 12 of this 40-page liability section says in order to have any 
kind of liability, you have to have willful misconduct. This is an act 
or omission that is taken intentionally to achieve a wrongful purpose; 
knowingly without legal or factual justification; and in disregard of a 
known or obvious risk that is so great as to make it highly probable 
that the harm will outweigh the benefit.
  As if that isn't clear, and narrow, enough, on the same page, 
underneath this language, is a rule of construction. This rule says 
that this language establishes a standard for liability more stringent 
than a standard of negligence in any form or recklessness. So companies 
are not deterred from acting recklessly, or with gross negligence.
  Now that is pretty narrow, but apparently it isn't narrow enough. 
Right here on page 12, it says that the Secretary of Health and Human 
Services, in consultation with the Attorney General, must issue 
regulations that further restrict the scope of actions or omissions 
that may qualify as willful misconduct.
  So ``willful misconduct,'' which should just mean intentional, isn't 
good enough.
  Well, at least we have solved that, right, to make it as narrow as 
possible? Wrong. Go down to the standard of evidence. The bill changes 
the standard of evidence in the various trials, to ``clear and 
convincing evidence.'' That is at the bottom of page 13.
  The bill defines a very narrow standard of willful misconduct, and it 
sets a very high standard of evidence. Shouldn't that be enough? Wrong. 
You don't have a case against a company under these provisions unless 
the FDA begins an enforcement case against that company. So if FDA goes 
ahead and begins the case, you have a chance, right? Wrong again. FDA 
has to bring it and conclude it successfully before you have any right 
to proceed with your case.
  A person might think, I am not very satisfied with how this liability 
provision has worked, maybe I will appeal to the courts of this 
country, right? Wrong. There is absolutely no, no, no, no judicial 
review when the Secretary of Health and Human Services grants a company 
immunity by issuing a declaration. No judicial review of that. And 
there is no judicial review of FDA's decision not to bring an 
enforcement action. So it is whatever the administration says, whatever 
the Secretary says, whatever the head of the FDA says, with changed and 
gimmick rules. This is a sham. There is no possibility of liability 
here.
  Now, we would say, OK, this is bad, but this liability protection is 
limited to just a few products, right, products that few of us will 
ever have to use? It actually applies to products--vaccines, drugs, 
diagnostic tests--for epidemics. We rarely have to worry about 
epidemics, right? Well, who defines ``epidemics''? It is rather 
interesting who defines epidemics. Senator Domenici says diabetes is an 
epidemic. Senator Frist himself says meth abuse is an epidemic. Bill 
Frist himself said obesity is an epidemic. Senator Bond says arthritis 
is an epidemic.
  This week in Newsweek Magazine, the Secretary of Health and Human 
Services, who is going to enforce this provision, says this:

       We're seeing an epidemic of chronic diseases. Obesity is 
     just one example.

  So how many diseases are going to be considered epidemics? A lot, 
perhaps, but at least we say that is all right, because it is just 
going to apply to drugs for that particular epidemic disease, right? 
Wrong again. This provides the same kind of liability protections for 
any of the drugs or anything else that deals with the side effects of 
the products for that epidemic disease.
  My goodness. Generally around here we measure who the winners are and 
who the losers are. And we have seen over the last year and a half how 
the drug companies come out on top, time and time and time and time 
again. But never, never, never, ever, ever like they have with this 
sweetheart deal that was stuck into this conference report after the 
assurances had been given to the conferees that there were no 
provisions in it with regard to liability.
  The Medicare drug law made it illegal for the Government to negotiate 
prescription drug discounts for seniors. They do it in the VA system, 
and drug prices for the VA are lower. But we weren't able to permit the 
government to negotiate drug prices for seniors. The Republican 
Congress blocked legislation to allow importation of safe and less 
expensive drugs.
  And now we find in this biodefense and pandemic flu provision 
liability shields for companies that make dangerous drugs, with no 
compensation for injured patients.
  That is a scandal. It has no business being in this bill. The 
Judiciary Committee requested an opportunity to examine it. It was 
rejected. We have had no hearings on this particular provision. It is 
the wrong thing to include in this legislation.
  Let me share what one of our colleagues has said about childhood 
obesity:

       The responsibility for this growing epidemic rests with 
     us--the American consumer. We need to get serious about 
     fighting fat.

  Let me cite you the language of the provision, the broad definition 
on page 31 of what gets liability protections under this bill. It says: 
``Qualified pandemic or epidemic product'' means any drug, biological 
product, any device to diagnose, mitigate, prevent, treat, or cure a 
pandemic or epidemic or limit harm from the pandemic or epidemic. And 
the term includes not only those products, but any other product, any 
other product that is produced to deal with the side effects of those 
products.
  This is a scandal. It is a giveaway. It is outrageous. It is rare, if 
ever, that we give this kind of privileged status to any industry in 
the country, and give this kind of authority and power solely to one 
branch of the Government. There is no second guessing. There is no 
judicial review. There is no further involvement of the Congress. That 
is basically and fundamentally wrong and we are asking and committing 
$3.7 billion to go down this road. It is outrageous and it is wrong.
  I am sure that as soon as the Secretary of Health and Human Services 
issues what is called a declaration for a pandemic or epidemic to give 
immunity from liability to vaccines or other products, there is going 
to be a charge

[[Page 30725]]

to the courts. The constitutionality of this provision is going to go 
into the Federal district courts and the circuit courts of appeal.
  Included in the Record is legal authority that I believe shows that 
this provision, the way it is drafted, is absolutely unconstitutional 
because of the indefiniteness of the criteria under which the executive 
branch makes decisions and because there is the real possibility and 
likelihood of serious injury to individuals without any right to go to 
court or for judicial review of declarations.
  This provision is going to be challenged along the way. We want to 
tell those in the bio industry--and they are healthy in my State and I 
have worked with them--if you want to work with us to get an effective 
compensation program, as we did in the past with smallpox or childhood 
vaccines, if you want to get an effective provision to deal with 
liability, one that is responsible and that responsible drug 
manufacturers will welcome, then we are more than willing to welcome 
you and to work with you.
  But I think we can be certain that this provision will not be 
effective, and it is misleading the American people to say we are 
making a downpayment in the development of vaccines for the reasons I 
have mentioned this evening.
  Slipping a provision into a major spending bill late at night at the 
end of Congressional session is a trick to shield from public debate a 
provision that is so wrongheaded that it would never stand public 
scrutiny.
  The Republican congressional leadership has snuck yet another special 
favor to drug companies into the defense appropriations bill.
  It is an outrageous provision that has nothing to do with protecting 
our troops, and it should be dropped from the bill.
  This provision allows drug companies to flagrantly disregard basic 
safety measures in making a broad range of drugs or vaccines, while 
giving patients who are injured by shoddy products only an empty 
promise of compensation.
  It is cynical to claim that this is what is needed to deal with avian 
flu.
  Drug industry advocates will say that this debate is about trial 
lawyers, and we have heard phrases like ``jackpot justice'' and 
``runaway juries,'' and tales of endless lawsuits against the firms 
that make the vaccines. But that couldn't be further from the truth: 
Senator Dodd and I offered a plan that included important legal 
protections for drug companies that make experimental flu vaccines and 
other drugs needed to respond to a pandemic or a bioterrorism attack as 
well as a compensation program modeled after the Vaccine Injury 
Compensation Program that already works well for childhood vaccines.
  Our proposal follows the successful examples of the past. For swine 
flu, for the smallpox vaccine and for childhood vaccines, the 
Government has set up a way to compensate the injured. Whenever 
Congress has provided an alternative to liability in the past, there 
has always been an assured means for patients to receive compensation.
  The current proposal violates that past practice.
  It twists and turns the law to stack the deck against patients, and 
abrogates basic principles of judicial review. It is no wonder the 
provision's authors hid it from public debate and didn't let the Senate 
Judiciary Committee even look at the proposal before it was jammed into 
the massive conference report.
  If they had allowed our Judiciary Committee to examine this proposal, 
we would have quickly seen its constitutional flaws. I received a 
detailed analysis of this provision from Professor Erwin Chemerinsky, 
who is the Alston and Bird Professor of Law and Political Science at 
the Duke University School of Law.
  According to his analysis, the provision gives the Secretary of HHS 
``unfettered discretion . . . to grant complete immunity from 
liability'' while also ``depriving all courts of jurisdiction to review 
those decisions.''
  Professor Chemerinsky has found three areas in which the provision 
infringes the Constitution.
  First, the provision delegates powers to the executive branch without 
the limitation of a prescribed standard. It is an extraordinarily broad 
delegation--the Secretary decides when to declare emergencies, what 
diseases or threats to health are covered, which drugs or products will 
be immunized, which individual citizens lose their right to go to court 
and recover for injuries caused by the drugs or products, the 
geographic area in which these rules will apply and the length of time 
they will apply. This violates the nondelegation doctrine, which says 
that Congress my not delegate its legislative authority to the 
executive branch without clear guidelines.
  Second, it violates federalism principles by improperly intertwining 
Federal and State law, making a new Federal cause of action that 
depends on State law. It also makes the Federal cause of action depend 
on the FDA or the Attorney General taking an enforcement action. It is 
a violation of due process, however, to allow official inaction to 
prevent a person from pursuing his or her rights in court.
  Third, the provision completely prohibits judicial review of 
declarations that provide drug companies with immunity.
  The U.S. Supreme Court has repeatedly stressed that the preclusion of 
all judicial review raises ``serious questions'' concerning separation 
of powers and due process of law. Judicial review of government actions 
has long regarded as ``an important part of our constitutional 
tradition'' and an indispensable feature of that system.
  I reserve whatever time I have remaining.
  Mr. HATCH. Mr. President, I rise to make a few remarks concerning the 
Public Health and Emergency Preparedness Act of 2006 which was inserted 
in a year-end appropriations vehicle, the Department of Defense 
Appropriations Act.
  Protecting the American public against acts of bioterrorism like the 
2001 anthrax attacks and natural disease outbreaks such as the risk 
posed by the avian flu is an important national security priority.
  For 4 years, I have worked in a bipartisan manner with my friend from 
Connecticut, Senator Lieberman, on comprehensive legislation to address 
this concern.
  We have vetted our proposal with literally hundreds of experts over 
the last 4 years.
  We understand full well that our proposal contains a number of bold 
proposals that challenge our colleagues to make fundamental changes in 
our biomedical research, public health management, regulatory, 
antitrust, intellectual property, tax and civil liability systems 
toward the end of materially increasing our Nation's public/private 
sector capacity to design, develop and distribute hopefully hundreds of 
new products to counter the effects for the dozens of known biological, 
chemical or nuclear threat agents for which we today literally have no 
diagnostics, vaccines or therapeutic responses.
  This is a tall order.
  It will likely take 20 or more years to build this capacity to the 
level we will need to discourage our enemies from attacking us in this 
manner or, if they do so, to be able to respond in the way that the 
public will expect to ensure the strength of American society.
  We have made some progress in recent years but we have to do much 
more in this area.
  This is the type of issue that takes time, money, creative energy and 
patience.
  We need a Manhattan Project type of effort, and we needed it 4 years 
ago.
  Throughout my years in the Senate, I have worked on dozens of 
important public health bills.
  In my experience, public health bills go better if they are done on a 
bipartisan basis.
  I have also observed over time that, generally speaking, good public 
health policy turns out to be good politics. I know of no disease or 
condition that chooses its victims along party lines.
  I am pleased that a key concept of the legislation that we introduced 
in 2002, the ``guaranteed market'' for those firms that successfully 
develop

[[Page 30726]]

certain bioterrorism countermeasures was finally adopted in the 
Bioshield I legislation passed in the 108th Congress.
  In the first session of the current 109th Congress, there has been a 
great deal of interest in bioterrorism and pandemic diseases. This is 
good for the American public.
  In the Senate, the HELP Committee was infused with new leadership on 
this issue in the persons of our new chairman, Senator Enzi, and the 
chairman of the new Bioterrorism and Public Health Preparedness 
Subcommittee, Senator Burr. Majority Leader Frist and former Chairman 
Gregg have continued their longstanding involvement on these issues.
  Across the aisle, led by a veteran leader in public health issues who 
has been on the HELP Committee or its predecessors for 43 years, 
Senator Kennedy and others including Senators Harkin, Dodd and Clinton 
have been interested in these issues.
  Throughout the Spring of this year the Bioterrorism Subcommittee held 
a series of bipartisan hearings and discussion roundtables that were 
attended by leading experts. Throughout the August recess the staffs of 
the committee members worked on various drafts of bioterrorism 
legislation that culminated in a markup in September.
  Unfortunately, from my perspective, the bill that resulted from the 
HELP markup did not contain the intellectual property and tax 
provisions that Senator Lieberman and I have long advocated. Such is 
the reality of the dance of legislation. But, as has developed in the 
provisions related to the guaranteed market, liability, and 
compensation, we believe that the day will come when these ideas from 
our original legislation are also seen as meritorious.
  Subsequent to that markup, the Bush administration unveiled its 
comprehensive plan to prevent and respond to the potential catastrophic 
outbreak of human-to-human avian flu transmission.
  Throughout the Fall, many Members of Congress, the administration, 
industry, the public health community and other interested parties 
worked on various pieces of legislation to respond to these threats. 
Unfortunately, as sometimes happens at the end of very busy 
congressional sessions, not everyone was able to work together at the 
same time.
  For a variety of factors, we have now arrived at a point where a 
potentially integral piece of an effective legislative response to 
bioterrorism and pandemic threats has been inserted into the Department 
of Defense appropriations bill. Using year-end appropriations bills as 
vehicles can be an opportunity to solve important problems but, 
sometimes, can pose a risk that an inadequately vetted measure becomes 
law.
  As many who are not members of the esteemed Appropriations Committee, 
I have a preference for the regular order of the authorization process. 
In all candor, from time to time in my career, I have availed myself of 
appropriations vehicles to move authorization bills that I desired to 
see passed. Sometimes, as shocking as it sounds, there is gambling in 
Casablanca.
  Comes now the newly drafted, and redrafted and redrafted, Public 
Readiness and Emergency Preparedness Act.
  Both Senators Frist and Gregg must be singled out in the Senate for 
their efforts to develop and move this new bill. In the House, I 
understand that Speaker Hastert and Chairman Barton, even as he was 
hospitalized, are largely responsible for this effort.
  All of these good and earnest members should be recognized for 
attempting to tackle two of the most vexatious policy and legal issues 
confronting us in this critical area: liability; and compensation 
reform.
  We need to encourage the private sector to work vigorously on scores 
of new, potentially dangerous drugs and biological products designed to 
counter both natural and bioterroist threat agents. That is what 
liability reform is all about.
  At the same time, if some of these products--some of which will never 
be tested in human clinical trials since it would be unethical to 
infect a patient with a microbe like the Ebola virus just to see if a 
potential treatment were safe and effective--turn out to injure and 
even kill patients, there must be a fair and funded system of 
compensation.
  Some critics are already falsely charging that these new provisions 
are nothing but a Republican gift to the drug industry during the 
Christmas season.
  Hogwash.
  There should be no doubt that the sole intention of the principal 
drafters of this legislation is to help devise a system that will 
increase the readiness of our country to respond to bioterrorist or 
natural public health threats.
  I also think it is way past time that Members of this body and others 
stop unjustifiably vilifying the pharmaceutical industry. Due in large 
part to the unique partnership between the public and private sector 
biomedical research enterprise--undergirded by the substantial annual 
$28 billion taxpayer investment in the National Institutes of Health--
we are on the verge of a revolution in our understanding of human 
health and disease. Let's just hope that neither the avian flu not the 
bioterrorists strike before we have developed the means to defeat these 
threats.
  We will not defeat biological enemies with bullets or battleships. It 
will be accomplished with basic biological knowledge and the applied 
know-how required to translate ideas from the lab to the patient's 
bedside.
  Integral to this system and to our national security is the too 
often-maligned pharmaceutical industry.
  They are tough, profit seeking companies. They are often their own 
worst enemies. They are not always right.
  But nor are they always wrong. The products they produce are aimed at 
preventing and treating diseases and reducing suffering. And that is 
not the worst business to be in by any means.
  The situation is that we are confronting an enormous chicken-and-egg 
problem in developing new vaccines and countermeasures due to the fact 
that in the last several decades product liability exposure has 
drastically reduced our domestic vaccine production capability. I 
understand that in 1976, 26 companies produced vaccines for the U.S. 
market. This year, only five companies produce vaccines sold in the 
U.S. and only three have U.S. production facilities.
  This constitutes both a public health and national security challenge 
that must be addressed.
  While I have concerns about many of the precise provisions in this 
new language, I recognize and commend my colleagues for attempting to 
solve a problem that needs solving.
  I have great respect for the majority leader, especially as he 
attempts to navigate this year's exceedingly complex package of pending 
bills which include the budget reconciliation bill--the first such 
measure in nearly 10 years--the PATRIOT Act, the Labor-HHS 
appropriations bill, as well as the Department of Defense authorization 
and appropriations bills. This is a tall order by any standard.
  Although I urged the Leader not to include this new bill in the year-
end legislation, I told him that I would not vote against this measure 
if it were part of one of the year end, must pass vehicles.
  I did this largely out of deference to our majority leader.
  For reasons that I will explain, if it came to a simple up-or-down 
vote on this measure as currently drafted, I could not yet support it 
and would vote no.
  If this measure does in fact become enacted into law, I will be open 
to considering further modifications in this language should our study 
of this new language indicate that changes are advisable.
  Many will question whether this bill, in its current form, contains 
too much indemnification and not enough compensation. This is a fair 
question.
  For example, the funding mechanism in the bill does not appear to be 
guaranteed.
  I have been down the hard road of discretionary funding with respect 
to the Radiation Exposure Compensation Act, which I authored, and I 
cannot say

[[Page 30727]]

that I would recommend such an important program to be subject to the 
uncertainties of less than stable, certain funding.
  Still others will question why the bill provides for no judicial 
review, apparently even by the United States Supreme Court, for certain 
actions by the Secretary of Health and Human Services?
  There will be concern that the bill does not allow adequate judicial 
review to assure that the Secretary has not acted either arbitrarily or 
capriciously in certain circumstances.
  Because of the great significance of this measure, I suggest that 
Chairmen Enzi and Specter hold hearings on this language once the 
Congress reconvenes after the holidays.
  It is, for example, important to learn what the administration thinks 
about this new bill and whether, upon reflection, it would urge some 
refinements.
  I have not seen a Statement of Administration Policy on this measure.
  Nor have I seen a Congressional Budget Office score so it is a little 
unclear to me how much this new section would cost.
  The administration will be called upon to administer a new 
compensation program and we need to know how they plan to implement 
this program and whether they have any suggestions to improve the 
operation of this program.
  As well, I would not be surprised if more Members and other 
interested parties will want to weigh in on the structure of the new 
compensation program, which is based in large part, on the current 
smallpox vaccine injury compensation program.
  As our experience with the asbestos legislation teaches us, there is 
always great interest in the level of compensation injured citizens may 
receive, especially if they give up their possible tort remedies.
  I note that there is a higher standard imposed upon the Secretary in 
constructing an injury table under this new bill than must be met under 
the current smallpox vaccine injury compensation law. Many will want to 
know exactly what is intended and what the practical effect of this new 
standard will be on the health experts who will advise the Secretary in 
this critical area.
  There are also many questions that must be explored with respect to 
how the liability shield will operate in practice.
  Let me state clearly that I favor a strong liability shield so that 
many pharmaceutical and biotechnology firms will enter this critically 
important field of research and development. The fact is today that 
there exists a pervasive climate of apprehension about product 
liability and litigation exposure and this is chilling the necessary 
private sector activity.
  Clearly something must be done. It is not so clear that the new 
liability language is yet as good as it needs to be. For example, the 
way in which the willful misconduct and FDA defense provisions operate 
together in the context to potential court challenges merit particular 
attention. As well, the policy and business-behavioral ramifications of 
drawing a hard line between all forms of negligence and wilful 
misconduct deserve careful thought and analysis.
  In the case of dual use products, such as antibiotics, it appears 
that, should a bad batch of drugs be made due to ordinary negligence, a 
patient injured when taking the product for a normal, garden-variety 
infection will have a much greater range of legal remedies than a 
person who took a pill from the same adulterated production batch but 
under a Secretarial declaration of a public health remedy. It is not 
readily apparent why this should be the case.
  There may be ways to further improve and refine these provisions and 
other parts of the bill as well. For example, consideration is 
warranted with respect to whether there ought to be a subrogration 
provision in certain cases when the Federal Government must compensate 
patients for injuries caused by negligent or grossly-negligent actions 
of manufacturers, distributors, or others connected with developing the 
drug or delivering it to patients.
  In any event, I think we should keep an open mind to viewing this new 
language as something as a work in progress.
  Rather than embarking down a path of political who-struck-John on how 
this new section got into the bill and who drafted this provision or 
that provision, I think the public will be better served if we focus 
our future efforts on evaluating what the bill does and deciding 
whether there are ways we can make it better.
  One thing is certain. If we do not find a better way to unleash the 
creative efforts of the private sector in researching and developing a 
panoply of new products designed to diagnose, prevent and treat 
bioterrorist and natural threats, the health and welfare of our Nation 
cannot be secure.
  We have a big job ahead of us.
  I urge that we move forward in a constructive, bipartisan effort to 
further improve the Public Readiness and Emergency Preparedness Act 
that has been placed in the DOD appropriations bill conference report. 
If others are willing to proceed in this fashion, I am certain that 
Senator Lieberman and I, and many others, stand ready to discuss and 
refine this and any other piece of related legislation.
  The PRESIDING OFFICER (Mr. Voinovich). Who yields time?
  The Senator From Alaska.
  Mr. STEVENS. Mr. President, I want to make sure everyone understands 
what we have done. I worked 3 months of my life on this bill, primarily 
to find a way to help the people whom I saw in New Orleans. But this 
unanimous consent agreement strips sections C and D out of the bill. 
That section D allocated the funds that were to be received from the 
development of ANWR and the spectrum money that we expect to come into 
the Treasury in excess of what was estimated in the budget and 
earmarked it to a gulf recovery fund and earmarked it to the LIHEAP 
program under a different formula than the existing formula.
  The net result is that those who are going to vote for the separate 
resolution--and I shall vote against it--will be taking money from the 
first responders. Let me go through that. There was $3.1 billion for 
our first responders, for homeland security needs. We had $1 billion 
for our farmers and ranchers for farm conservation programs. The gulf 
coast recovery fund was estimated to have $5 billion in bonus bids and 
$40 billion in royalties over the total production years of ANWR. It 
would have committed 50 percent to Louisiana, 25 percent to 
Mississippi, 10 percent to Alabama, 10 percent to Texas, and 5 percent 
to Florida.
  When we remove that, we do remove the $2 billion emergency spending 
for LIHEAP, and we remove the $3.1 billion for border security. That is 
money that was there. It was not funny money. It was money for this 
year.
  So when you go back to New York, will you tell them why? That first 
responder money was $1,750,000,000 for the cities of New York, Los 
Angeles, San Francisco, Miami, Boston, Washington, DC, Chicago, 
Philadelphia, and Houston. I showed before the list of all the people 
who supported that.
  In terms of the preparedness grants for avian flu response, and for 
evacuation routes, refugee feeding and housing in the event of another 
disaster: $1 billion. But above all, the $1.1 billion in 2006 money for 
border security for the Northern border and the Southern border, we 
were overwhelmed with support for that. By voting for this, you will 
take it out. You are taking out C and D. You are taking out all the 
funding.
  Now, what does that mean? It means that next year when we get the 
budget they will pick up the estimates we were able to make. The money 
for ANWR will next year be, I believe, estimated--I am sure it will; I 
have a letter--at $10 billion. This year it was $5 billion. That $5 
billion that was in the budget will not be available to Louisiana. It 
will not be available to the disaster area. The $10 billion we 
estimated in addition to the $10 billion that is already in the budget 
for spectrum auctions will take place in 2008 and 2009. Actually, the 
FCC believes it is going to be $28 billion. We had used $8 billion in 
addition to the $10 billion

[[Page 30728]]

that is in the budget. That, next year, will also be estimated, and it 
will be used by the budget. So that money is not going to be available 
for these things that Senator Cantwell's resolution will deny.
  Senator Cantwell has authored this resolution to take out of the bill 
all of this money that we worked so hard to find a way to justify. We 
took future revenues coming into the Treasury, held them in the 
Treasury and earmarked them for specific purposes when they would 
arrive. We were told to have every reason to expect that money would 
come in. And the House agreed with us and allowed two separate 
emergency things to take place. One was $1.1 billion for border 
security. The other was $2 billion for LIHEAP for those who are in 
States that are affected by the current formula. That is primarily the 
Midwestern States and Maine.
  But I want the Senate to know the work we did in finding this money 
and finding a way to hold it in the Treasury, it will not be held any 
more. This amendment takes out of the bill sections C and D. That means 
next year you will not find money on this approach for the help for the 
disaster areas or to deal with LIHEAP or to deal with homeland 
security. And $3 billion was earmarked in that fund when the money came 
in. It was to go to homeland security. We earmarked it. No future 
budget could use it.
  By taking C and D out, by voting for it--all of you--I am going to go 
to every one of your States, and I am going to tell them what you have 
done. You have taken away from homeland security the one source of 
revenue that was new revenue. It was money that should have been used 
for disaster. It should have been used for homeland security. And I am 
sure that the Senator from Washington will enjoy my visits to 
Washington because I am going to visit there often.
  This was wrong. We should have kept sections C and D in this bill. 
This was something that we studied. We went with CBO. We talked to 
everyone possible. Everyone understood it in the House, what we did. 
The Senate refused to even look at it. I think most of you voted for it 
without even looking at it. California has lost its money for disasters 
in the future from that revenue source. It will have to find some way 
through the budget to compete with everybody else next year in a 
declining budget year. Because as the interest on the national debt 
goes up, there is less money to allocate for existing programs. I 
predict next year will be the toughest budget year in history.
  But we took money from 2008, 2009, 2010, and we earmarked it. One 
thing you did not notice, we put in borrowing authority. In the event 
there is a disaster, the Secretary could go to Treasury and say: Mr. 
Secretary of Treasury, I exercise the borrowing authority and get that 
money right now. Did you know that? I bet half of you--none of you--
read the bill, none of you read the bill. But I am going to explain the 
bill to everyone in the country--the homeland security bill, the first 
responders, the interoperability part of it, the part of equipment for 
first responders.
  The total amount of this bill has been destroyed by the Cantwell 
amendment. And I want to make sure everyone understands it. Emergency 
assistance for seniors and low-income Americans: That $2 billion was at 
a different theory, different formula than the existing law. We made it 
available to those in great need this winter. By this amendment, by 
voting for it, you take it away. Go ahead and vote for it. I am going 
to vote against it because I know what I did. I found and spent a lot 
of time with those who handle budget matters and particularly the CBO. 
Ask them. I will show you the letters. They said I was right, that was 
new revenue coming into the Federal Government. Everyone expects it, 
and we earmarked it for those things that we all believe in now.
  Next year, are you going to give it to homeland security? Are you 
going to give it to border security? Are you going to give them $2 
billion for LIHEAP? By the way, it did not have to be spent this year. 
It could carry over. It is to be used when needed, by higher prices. 
OK? It was not something that was total spending this year.
  I do think the hurricane areas are the ones that lost most. There is 
a $14 billion estimate in C and D for the hurricane area: $7 billion 
for Louisiana, $3.5 billion for Mississippi, $1.4 billion for Texas, 
$1.4 billion for Alabama, and $1.2 billion for Florida.
  Mr. President, this Senator has tried to do what is right. In the 
last month or 2 months, I have been pilloried by almost every newspaper 
in this country because of what has been said on this floor and what 
has been said by Members on the other side of this body. I have been 
called a liar. I have been told that I violated the rules. I have been 
told I did things in the middle of the night when no one knew it. I 
have been told almost everything. Even my grandchildren asked my son: 
Is that right?
  I ask the Senate: Is that right? Should I lose the reputation I have 
gotten for 37 years in the Senate? No one has ever questioned my 
integrity before this year. Well, we had one little thing--I see an 
action from the Chair--about an ethics matter in my State, but that, 
too, was misunderstood. And I am glad to see that--I hope that has been 
put to rest. But in any event, no one has really questioned my actions 
here on the floor.
  But they have been. People I have known on the other side, on a 
first-name basis, have come to me and talked to me about their 
problems--each one of you. Many of you have spoken here and said things 
that are not true, and you know they are not true. As I said, one 
Senator said something so bad, I asked for an apology. I would not 
accept his apology now.
  Mr. President, I am going to go home, and I am going to think about 
this, and I am going to try to figure out what to do next year. But I 
know one thing, the 3 months I spent on this to try and help the people 
in the disaster area, with the sincere belief in the--how many of you 
have been to the disaster area? Did you spend a couple of days down 
there, as I did? Did you go and look at it? Did you see the miles and 
miles of homes that are gone? Did you see a great big barge, bigger 
than this room, on top of a schoolhouse? Did you see miles and miles of 
levees just laid down? Did you see the devastation as that tsunami came 
up that channel that man dug from New Orleans to the gulf?
  Did you see that? Did you see how it devastated the land, and all the 
plant life is now dying because it was inundated in saltwater?
  The earthquake in my State did that. I saw one town disappear. I saw 
a third of my city, Anchorage, disappear. You have to have had that 
experience to understand how I felt when I went to New Orleans.
  You people didn't believe it. Many of you said I did this for 
political reasons, just a crass thing, pick up some money and give it 
away for votes. I never asked one of you for a vote. I talked to some 
of you about how you should vote, but I never went to you and said: You 
have to vote for me. You wouldn't be voting for me; it was voting for 
the people who would have been helped.
  This has been the saddest day of my life. It is a day I don't want to 
remember, and I am sorry to see it come to an end. Because I am drawing 
the line now with a lot of people I have worked with before. I really 
am. I can't put in my mind the amount of time, the days I have spent 
with you working on your problems, and to know you said about me the 
things you said in the last 2 months. I say goodbye to the Senate 
tonight. Thank you very much.
  The PRESIDING OFFICER. Who yields time?
  Mr. REID. I yield back the time on this side.
  Mr. FRIST. I yield back the time on our side.
  The PRESIDING OFFICER. The question is on agreeing to the concurrent 
resolution, S. Con. Res. 74.
  Mr. REID. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The clerk will call the roll.
  The bill clerk called the roll.

[[Page 30729]]


  Mr. McCONNELL. The following Senators were necessarily absent: the 
Senator from South Carolina (Mr. DeMint), the Senator from New 
Hampshire (Mr. Gregg), the Senator from Arizona (Mr. McCain), and the 
Senator from Rhode Island (Mr. Chafee).
  Further, if present and voting, the Senator from South Carolina (Mr. 
DeMint) would have voted ``nay.''
  Mr. DURBIN. I announce that the Senator from New Jersey (Mr. 
Corzine), the Senator from Connecticut (Mr. Dodd), and the Senator from 
Indiana (Mr. Harkin) are necessarily absent.
  The PRESIDING OFFICER (Mr. Burr). Are there any other Senators in the 
Chamber desiring to vote?
  The result was announced--yeas 48, nays 45, as follows:

                      [Rollcall Vote No. 365 Leg.]

                                YEAS--48

     Akaka
     Baucus
     Bayh
     Biden
     Bingaman
     Boxer
     Byrd
     Cantwell
     Carper
     Clinton
     Coleman
     Collins
     Conrad
     Dayton
     DeWine
     Dorgan
     Durbin
     Feingold
     Feinstein
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Mikulski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sarbanes
     Schumer
     Smith
     Snowe
     Specter
     Stabenow
     Wyden

                                NAYS--45

     Alexander
     Allard
     Allen
     Bennett
     Bond
     Brownback
     Bunning
     Burns
     Burr
     Chambliss
     Coburn
     Cochran
     Cornyn
     Craig
     Crapo
     Dole
     Domenici
     Ensign
     Enzi
     Frist
     Graham
     Grassley
     Hagel
     Hatch
     Hutchison
     Inhofe
     Isakson
     Kyl
     Landrieu
     Lott
     Martinez
     McConnell
     Murkowski
     Roberts
     Santorum
     Sessions
     Shelby
     Stevens
     Sununu
     Talent
     Thomas
     Thune
     Vitter
     Voinovich
     Warner

                             NOT VOTING--7

     Chafee
     Corzine
     DeMint
     Dodd
     Gregg
     Harkin
     McCain
  The concurrent resolution (S. Con. Res. 74) was agreed to, as 
follows:

                            S. Con. Res. 74

       Resolved in the Senate (the House of Representatives 
     Concurring), That, in the enrollment of the bill (H.R. 2863) 
     making appropriations for the Department of Defense for the 
     fiscal year ending September 30, 2006, and for other 
     purposes, the Clerk of the House of Representatives shall 
     make the following corrections:
       Strike Division C, the American Energy Independence and 
     Security Act of 2005 and Division D, the Distribution of 
     Revenues and Disaster Assistance.

  Mrs. BOXER. I move to reconsider the vote.
  Mrs. FEINSTEIN. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________




   DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2006--CONFERENCE REPORT

  The PRESIDING OFFICER. Under the previous order, the clerk will 
report the conference report to accompany H.R. 2863.
  The legislative clerk read as follows:

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2863) making appropriations for the Department of Defense for 
     the fiscal year ending September 30, 2006, and for other 
     purposes, having met, have agreed that the House recede from 
     its disagreement to the amendment of the Senate, and agree to 
     the same with an amendment, and the Senate agree to the same, 
     signed by a majority of the conferees on the part of both 
     Houses.

  The PRESIDING OFFICER. The Senate will proceed to the consideration 
of the conference report.
  (The conference report is printed in the House proceedings of 
December 18, 2005.)
  Mr. McCONNELL. Mr. President, I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?S0634
  There appears to be a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The Senator from Louisiana.
  Ms. LANDRIEU. Mr. President, I would like to speak for 30 seconds.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Ms. LANDRIEU. Mr. President, I know everyone is anxious to vote. In 
this underlying bill on defense, I just wish to say that there is $29 
billion for coastal restoration, hurricane protection, housing, and 
business help for the gulf coast. I know it has been a tough, long day, 
but in this bill there is $29 billion because of the hard work by both 
sides of the aisle. We are very grateful for the help on this bill.
  Mr. BIDEN. Mr. President, I rise to express my surprise and deep-
seated opposition to the so-called Public Readiness and Emergency 
Preparedness Act, which is included in the Defense Department 
Appropriations bill.
  This provision would give the Secretary of Health and Human Services 
authority to provide almost total immunity from liability to the makers 
of almost any drug, and to those who administer it.
  While the measure's proponents portray it as a simple tool to make 
sure we have sufficient vaccine available in the case of an avian flu 
pandemic, the actual language of the provision is far broader than 
that, and it therefore poses a danger to all Americans.
  The actual provision permits immunity for the makers of virtually any 
drug or medical treatment. All the secretary need do is declare that it 
is a ``countermeasure'' used to fight an epidemic. One solitary person 
gets to decide what is a countermeasure and what is an epidemic. There 
is nothing to prevent the declaration of immunity for, say, Tylenol. 
There is nothing to prevent a declaration that, say, arthritis is an 
epidemic.
  What's more, this is no typical grant of immunity. No, the breadth of 
this provision is staggering. A drug maker can be grossly negligent in 
making or distributing a drug, and still escape liability. It can even 
make that drug with wanton recklessness and escape scot-free after 
harming thousands of people.
  In fact, under this provision, the only way a victim could still 
recover compensation from a drug maker for a dangerous drug or vaccine 
would be to prove ``willful misconduct,'' and then only by ``clear and 
convincing evidence.'' What this means is that, for a victim to be able 
to be compensated by the company that harmed him, he must prove that 
they committed a crime. And even if he can do that, the company can 
still avoid liability simply by notifying the authorities within 7 days 
that someone was harmed by their product. In other words, so as long as 
you ``confess'' to your bad behavior, you can get away with it!
  Is this the sort of justice system that Americans desire?
  The answer to this question seems clear from the way this provision 
was inserted in the larger bill. No hearings were held on this 
language; no Committee vote was taken; no bill passed the House or the 
Senate. Not even the House and Senate conferees had a chance to give 
input on this provision. Indeed, I'm told it was inserted in the dead 
of night, after conferees had already signed the conference report!
  Perhaps the folks who secretly inserted this provision in the dead of 
night knew that it was overly broad, as I've discussed; perhaps they 
knew that it was constitutionally suspect, as has been noted by at 
least one prominent law professor; or perhaps they just knew that, if 
this provision ever saw the light of day, the American people would not 
stand for such secrecy and injustice.
  This should not be how we conduct the business of the American 
people, and we will all suffer if this provision is permitted to go 
forward.
  Mr. BYRD. Mr. President, the Senate is now on its way to passing the 
Defense appropriations bill, which will provide essential funds to our 
troops. The U.S. Armed Forces are comprised of some of the finest men 
and women our country has to offer. Each of these brave individuals has 
made the commitment to serve our country, during times of war or peace, 
and each is deserving of the support of a grateful nation.
  I particularly wish to salute the fine members of the West Virginia 
National Guard who have time and again demonstrated their commitment to 
serving

[[Page 30730]]

our State and our Nation. These citizen-soldiers have served in all 
corners of the world while balancing their obligations to their 
families, to their employers, and to their communities. The Defense 
appropriations bill is important to our National Guard and all the 
members of our military. I am proud to have worked with my colleagues 
to expedite passage of this essential legislation.
  The Senate is proceeding in a wise course after the cloture vote this 
morning. The most controversial part of the conference report will be 
removed, clearing the way for the Defense appropriations bill to pass 
the Senate and be sent on its way to the White House. It is unfortunate 
that the deletion of the most controversial provision that was attached 
to the bill in conference will also result in eliminating needed funds 
for hurricane relief, LIHEAP, homeland security, and border security. 
Congress should not delay in providing additional funds for these 
purposes. There are emergency needs in each of these areas that must be 
met with quick action.
  While the ANWR provision will be removed from the bill, I continue to 
have serious concerns about the avian flu-related liability provisions 
that were slipped into the conference report without debate. These 
liability provisions did not appear in either the House- or the Senate-
passed bill. These provisions were not in the materials presented to 
the conference committee during its deliberations. It was not until the 
dead of night on this past Sunday, after signatures had already been 
collected on the conference report, that the Republican majority 
slipped these provisions into the bill before the Senate today. What an 
insult to the legislative process.
  It makes sense for Congress to take steps to encourage companies to 
develop and manufacture lifesaving flu vaccines. Manufacturers and 
health professionals acting in good faith to protect the public health, 
by developing and distributing critical vaccines, should not be 
unfairly penalized for their efforts to protect the American people 
from the horrors of a pandemic disease.
  However, our country has a moral obligation to look out for those who 
may become seriously ill as a result of these vaccines. We are talking 
about the lives of real American people. There ought to be compensation 
available to those persons who may suffer adverse effects from these 
kinds of vaccines.
  But the liability amendment slipped into the bill does not contain 
any meaningful provisions establishing a fair compensation system to 
protect vaccine recipients. Americans who pull up their sleeves to 
receive an emergency flu vaccine must be provided with some assurance 
that they would not face economic catastrophe should they be harmed.
  All of this comes as our country is coming to grips with the threat 
that the avian flu might spread to our shores. A flu pandemic is one of 
the most dangerous threats the United States faces today. Medical 
experts warn that a global, cataclysmic pandemic is not a question of 
if but when. Like any natural disaster, it could hit at anytime. And 
when it does, it could take the lives of tens of millions of people.
  According to the Congressional Budget Office, an avian flu pandemic 
would deliver a devastating $675 billion blow to the U.S. economy. This 
administration has failed to adequately respond to safeguard the 
American people and limit the human and economic cost of such a 
pandemic.
  In the event of a flu pandemic, hundreds of millions of Americans 
will need to be vaccinated as quickly as possible. Yet our current 
public health infrastructure is alarmingly ill-equipped for this 
threat. This administration and the Republican-led Congress have 
weakened the health care infrastructure of this country by starving it 
of needed funding. The administration has been engaged in a relentless 
campaign to arbitrarily cut Medicaid and other vital safety-net 
programs that protect the health of the poor and disabled.
  I am also disappointed that the majority chose to limit funds for 
vaccines, medicines, and other tools to combat the avian flu to just 
$3.8 billion. That level of funding is $4.3 billion below the level 
that the Senate approved just 2 months ago.
  The American people deserve better from their elected 
representatives. They deserve a coherent plan to combat the looming 
threat of a flu pandemic with significant resources devoted to 
protecting the public's health.
  Finally, Mr. President, I regret that so little attention has been 
paid during the recent debate on this bill to the most important issue 
facing our country. The ongoing war in Iraq has so far cost the lives 
of 2,155 members of the U.S. Armed Forces. Including the so-called 
``bridge fund'' of $50 billion that is appropriated in this bill, our 
Nation will have dedicated $259 billion to carry out the war in Iraq. 
What an enormous sum. More than a quarter of a trillion dollars has 
been spent on this war that should never have begun.
  What is more, the newspapers are full of stories that the President 
is going to ask Congress for another $100 billion in the coming months 
to pay for the wars in Iraq and Afghanistan.
  These huge sums of money are being requested and spent for the war in 
Iraq with no idea of how the White House intends to get our troops out 
of that country. The President has taken to the speaking circuit to try 
to rally support for the war, but his statements are simply variations 
on a theme: stay the course, stay the course, stay the course.
  Americans are asking questions that the White House has so far 
refused to address. How much longer will our troops be in Iraq? How 
many more Americas will perish in this costly war? How many more 
billions will be spent to support the administration's misguided 
policies in Iraq?
  Instead of getting answers to these questions, and instead of 
changing course in the war in Iraq, this appropriations bill includes 
$50 billion to continue the wars in Iraq and Afghanistan, despite the 
fact that the President did not request a single dime in his budget for 
these costs. Let me say again: the Congress is appropriating billions 
more for the war in Iraq without a request from the President. Is this 
any way to pay for a war?
  Although Senators must do our part in providing for our troops 
serving in harm's way, I do not think that our troops are served by 
having Congress appropriate funds for the war in Iraq without any 
explanation by the President or the Secretary of Defense about how 
these funds are to be used. If the administration wants additional 
funds to prosecute the war in Iraq, the administration should answer 
the tough questions about its policy for getting our country out of 
Iraq.
  Mrs. CLINTON. Mr. President, I would like to take this opportunity to 
object to insertion of a provision in the Department of Defense 
appropriations bill that would provide sweeping immunity protections to 
pharmaceutical manufacturers. I know that this provision is being 
billed as a simple liability protection to help those who would 
manufacture avian flu vaccine, but it is nothing of the sort. I support 
limited liability protections for manufacturers to help cover their 
risks in developing products that our Nation will need in case of 
emergency. However, this provision would grant immunity to all claims 
of loss, including death and disability, for a broad range of products, 
including any drug that the Secretary designated as one that would 
limit the harm caused by a pandemic--a definition so broad as to 
encompass nearly any drug.
  This immunity is not subject to judicial review. It preempts any 
State laws that provide different liability protections or that may 
provide stronger consumer safety protections for pharmaceutical 
products. In fact, the only exception to this immunity is for actions 
of ``willful misconduct,'' which is so narrowly defined that it would 
only apply to cases where a company intentionally set out ``to achieve 
a wrongful purpose . . . in disregard of a known or obvious risk that 
is so great as to make it highly probable that the harm will outweigh 
the benefit.'' The provision requires the Secretary and the Attorney 
General to narrow the scope of

[[Page 30731]]

willful misconduct even further and states that for any FDA-approved 
product, willful misconduct will not apply unless the Government is 
already taking action against the manufacturer for such misconduct.
  If the Government is providing complete immunity to manufacturers, 
how are those who may be injured to seek compensation in case of 
injury? This provision sets up a ``Covered Countermeasure Process 
Fund,'' but fails to provide any money for this fund. We all recognize 
that in a public health emergency, we may need to seek whatever 
protections we can find to prevent widespread death and disease--but 
those who are asked to take these products are told that if they are 
injured, their only recourse is to seek compensation from a fund which 
currently has no money to award.
  I am also gravely concerned by the fact that this provision was 
included in the appropriations bill without following the process for 
passing legislation used by this Chamber. This authorizing--
authorizing, not appropriating--language was never considered, let 
alone agreed to by the Senate. It was never agreed to by the HELP or 
Judiciary Committees, which have jurisdiction over this matter. It is a 
mockery of the legislative process. I believe that the American people 
are ill-served by Congress when controversial and potentially harmful 
provisions can simply be inserted without undergoing the open 
deliberations and debate that are fundamental to the democratic process 
and are designed to protect our citizens from special interests and 
back-room dealings. This provision should be stripped from the bill.
  Mr. DODD. Mr. President, this week, the Senate considers conference 
reports on two pieces of legislation--the Defense Authorization and 
Appropriations Acts that are critical to the security of our Nation. 
These conference reports contain important measures for keeping our 
troops safe and secure, particularly provisions to upgrade body armor 
and protective equipment, resources to ramp-up vital construction of 
U.S. military ships, aircraft, and ground vehicles, and funding for 
research on vital defense technologies of the future.
  The conference agreements also promote important quality-of-life 
improvements for our troops and their families, including a 3.1 percent 
pay raise for all military personnel and increases in compensation for 
survivors of military personnel killed since the onset of the wars in 
Afghanistan and Iraq.
  These two bills could not come before the Senate at a more urgent 
time. Our Nation is at war, and our troops desperately need these 
resources to complete their missions in Iraq and Afghanistan.
  This Congress owes America's fighting men and women its unconditional 
support for these critical defense priorities. But this year, the 
administration and Members of the majority in Congress have fallen far 
short of meeting this responsibility. They have allowed a handful of 
powerful special interests to impede the critically important process 
of funding our national defense, including America's highest security 
priorities. The Republican leadership's decisions to open up the Arctic 
National Wildlife Refuge for oil companies' exploitation and to shield 
drug and vaccine makers from any accountability have absolutely nothing 
to do with national security and have no place in bills like the 
defense appropriations conference report. Their willingness to risk 
funding for our troops in favor of these parochial priorities is 
indefensible.
  Let me say a few words about these two specific measures.
  I have consistently opposed opening the Arctic National Wildlife 
Refuge, ANWR, to oil drilling because I am unconvinced that the small 
amount of recoverable oil there outweighs the permanent damage that we 
would do to the area and the nearly 200 species of wildlife that live 
there. The process entails a web of oil platforms, pipelines, 
production facilities, power facilities, support structures, and roads 
across the entire area. I strongly believe we need to ensure our 
Nation's economic and energy security, but any recoverable oil in the 
Refuge would not begin flowing for at least 10 years. What is the 
urgency to include this legislation now in a bill it has no business 
being part--of especially when the impact of such a measure could be so 
remote and so damaging? There is significantly less job creation than 
proponents would have us believe, there is minimal recoverable oil 
available, drilling in ANWR would have no impact on current energy 
prices or supply or even on our foreign oil dependence, and it would 
leave a web of infrastructure that would permanently ruin the pristine 
nature of the land and habitat. Moreover, if we took just a few modest 
steps to use energy more efficiently--such as properly inflating 
vehicle tires or raising engines' fuel efficiency--we would save more 
oil than currently exists in the ANWR. It is simply irresponsible to 
move forward with this legislation.
  Just as irresponsible is an equally non-germane provision shielding 
vaccine producers from liability. This language provides sweeping legal 
immunity to a few companies, and relieves them of responsibility for 
their reckless and negligent actions. Rather than encouraging companies 
to make safe and effective medicines, it will provide a perverse 
incentive by protecting those companies that make ineffective or 
harmful products. That is unwise--not to mention unfair--to companies 
that strive for excellence, a number of which are located in 
Connecticut. And rather than encouraging Americans to be vaccinated or 
to take needed medication, it will discourage them from doing so by 
failing to provide even rudimentary compensation for the few who will 
inevitably be injured by these products. Make no mistake about it: this 
plan fails to protect the American people from the risk of a flu 
pandemic or from other biohazards.
  Senator Kennedy and I spent the past several months negotiating with 
Senators Enzi, Burr, Gregg, Frist, and others on the Health, Education, 
Labor, and Pensions Committee to try to reach a bipartisan compromise 
on this issue. Senator Kennedy and I made several proposals, modeled on 
past Congressional action, to protect manufacturers from frivolous 
lawsuits while providing fair and adequate compensation to those who 
are injured. Both sides worked in good faith, and we made significant 
progress.
  Unfortunately, my understanding is that a decision was made by 
leaders of the Republican caucus to forego this bipartisan process. 
Instead, this nongermane provision was slipped in the final hours of 
this session of Congress into the Defense Appropriations Conference 
Report. Furthermore, it is my understanding that this language was 
inserted after members had agreed to the Conference Report with the 
understanding that this language was not included. I am disturbed and 
disappointed by this blatant abuse of power and disregard for Senate 
procedures. I can only assume that the supporters of this provision are 
using this tactic because they know that their plan would not stand up 
to public scrutiny and Senate debate.
  In terms of some of the germane provisions of this bill, I must also 
express my disappointment with the conferees' decisions to weaken 
important measures that were actually inserted in the Senate's defense 
bills to support and protect our troops. For example, I originally 
authored amendments to both of these bills that would ensure that our 
troops would be reimbursed for purchasing their own critical safety and 
protective gear that the Defense Department failed to provide for use 
in Iraq and Afghanistan. The Senate approved this measure without any 
dissent, having recognized the administration's inadequate compliance 
with current law. After failing to implement a program under a law 
enacted last year, the Pentagon only established the reimbursement 
initiative as this body considered the new provisions to extend this 
benefit to all military personnel deployed to Iraq and Afghanistan. 
Most appalling to me is that there remains little evidence that the 
Pentagon has acted to ensure that our soldiers, sailors, airmen, and 
marines receive the information that they need to take advantage of 
this important

[[Page 30732]]

program. Given that the Defense Department is failing to meet its 
commitment to adequately equip our military personnel, the least that 
it can do is inform our brave men and women of the compensation due to 
them. In the end, I was deeply troubled that the final version of this 
legislation did not include adequate language to address many of the 
concerns originally raised on this floor just two months ago. In 
particular, as part of an agreement worked out with both Chairmen of 
the Defense Appropriations Subcommittee and Senate Armed Services 
Committee, we had agreed to extend the reimbursement program to troops 
who made purchases up until the end of the 2006 fiscal year. In both 
final conference reports, this deadline was cut short to April 1, 2006.
  In the final analysis of the underlying bills, I can only take solace 
in the fact that other critically important measures in these 
conference reports could have been weakened even further. We in this 
body managed to avert grave problems posed by misplaced priorities by 
the administration and the Republican leadership. For example, it is my 
understanding that the administration's allies in the House actually 
attempted to slip another measure--this time, related to campaign 
finance--into the Defense Authorization Act after the conferees had 
already signed the conference report--without any hearing or public 
review by the appropriate committees of jurisdiction. It was only after 
the chairman and ranking member of the Senate Armed Services Committee 
intervened that this utter abuse of power was averted.
  In another case, the administration and its allies in Congress sought 
to thwart the final approval of Senator McCain's amendment that would 
set standards for the interrogation of detainees in the custody of the 
United States, and prohibit the cruel, inhuman, or degrading treatment 
of these detainees. I strongly support Senator McCain's amendment 
because it upholds the values on which our country is based, it helps 
strengthen the rule of law, and most importantly, it serves to protect 
American troops and civilians who are currently serving and living 
abroad.
  I regret, however, that the Bush administration attempted for so long 
to block adoption of this amendment. Indeed, the administration only 
accepted it in the face of overwhelming congressional support and in 
the wake of international condemnation resulting from allegations of 
secret CIA prisons in Europe. While I am certainly pleased that the 
McCain amendment was included in this conference report, I hope that 
the administration's stonewalling has not undermined the very things 
that this amendment aims to protect--American values and American 
lives.
  In the end, it is our solemn duty as members of this institution to 
promote policies that will safeguard America's critical security 
interests. That is why I am so deeply offended by the tactics which the 
majority used to weaken many of these efforts. After all, most of the 
germane provisions of these two Defense-related conference reports will 
support our defense needs and protect U.S. military personnel deployed 
in harm's way. For example, within these germane provisions, I am 
particularly proud that the bills build on Connecticut's unique 
strengths in contributing to America's defense needs. From increases in 
Black Hawk helicopters to production of a new Virginia Class submarine, 
our troops will be better prepared to meet the security challenges of 
the 21st century.
  Under these bills, the Army and Navy will receive 83 much needed 
Black Hawk helicopters to perform a variety of critical missions 
including medical evacuations, air assaults, and special operations. In 
the shipbuilding accounts, in addition to funding the procurement of 
another Virginia submarine, these bills will ensure that the Navy 
remains committed to developing new undersea technologies--including 
development of new submarine designs--an important element of our 
nation's pertinent efforts to maintain undersea dominance as countries 
such as China and Russia expand their own submarine fleets.
  To address immediate concerns for our soldiers and marines, these 
bills finally contribute meaningful resources for countering the most 
serious threats facing our troops in Iraq--the so-called improvised 
explosive devices or IEDs. Devoting $1 billion to the Joint Improvised 
Device Defeat Task Force will help accelerate American development of 
new technologies and tactics for detecting, jamming, or de-activating 
these roadside bombs which continue to plague U.S. combat operations in 
Iraq. In addition, I am truly pleased with the conferees' decision to 
add an additional $610 million to the Administration's otherwise slow 
attempts at reinforcing American ground vehicles in Iraq with state-of-
the-art body armor and other protective gear. This Congress has few 
higher priorities than the safety and wellbeing of our troops deployed 
in harm's way. And I believe these measures truly are steps in the 
right direction.
  But we must remain dedicated to such critical force protection 
measures, particularly as our forces battle insurgents in Iraq and 
Afghanistan. The Republican majority's attempts to ensnare these 
defense bills with unrelated political schemes gravely threatened our 
ability to meet this commitment and amounted to an utter abuse of 
power.
  The United States is at war. Our troops and the American people 
expect that our nation's defense policy will be unfettered by special 
interests and untainted by political gamesmanship. I can only hope 
that, as we return to Capitol Hill to begin the New Year a few weeks 
from today, the leaders of the majority party will resolve to put 
national interests over narrow interests.
  Mr. LEAHY. When the Department of Defense authorization bill passed 
the Senate on November 15, I spoke of my concerns about an amendment 
that limits the rights of detainees in U.S. custody at Guantanamo Bay, 
Cuba, to file habeas corpus petitions in federal court. That amendment 
was modified in conference to further erode these rights, and then 
identical text was added to the conference report on Defense 
appropriations to ensure that the language was enacted into law in one 
bill or the other.
  Debates over the treatment of detainees have dominated our 
discussions of both the Defense authorization and appropriations bills. 
Senator McCain waged a battle with the White House and his own party to 
ensure that his amendment requiring the humane treatment of detainees 
was retained in the conference reports. I commend Senator McCain and 
the members of the Congress who have fought to address these issues. 
Despite calls from many of us over recent years, the legislative branch 
has not met its obligation of oversight and policymaking in this area. 
I am encouraged that more than 18 months after the revelation of 
atrocities at Abu Ghraib, we are finally willing to confront this 
issue.
  The administration fought this provision for months, with the 
President vowing to veto any bill that contained it. But after months 
of threats and backdoor lobbying, the White House finally recognized 
that it could not win with a policy that granted itself the authority 
to use torture or cruel and inhumane treatment in interrogations.
  Unfortunately, the positive steps we take today in adopting the 
McCain amendment are undercut by the modified Graham-Levin amendment in 
the conference report. As I just noted, I expressed concerns about the 
Graham-Levin text, and voted against it, when it passed the Senate. At 
that time, it reflected a modest improvement over an earlier version 
offered by Senator Graham. Now, it has come almost full circle, and is 
deeply troubling.
  The Graham-Levin amendment as it passed the Senate would deny 
prisoners that the administration claims are unlawful combatants the 
right to challenge their detention in a petition for a writ of habeas 
corpus. At no time in the history of this Nation have habeas rights 
been permanently cut off from a group of prisoners. Even President 
Lincoln's suspension of habeas was temporary. The Supreme Court has 
held numerous times that enemy combatants can challenge their 
detention. The new version of this text, the text that

[[Page 30733]]

was added to the conference report, goes even further. It prohibits any 
lawsuit against the United States brought by a Guantanamo detainee for 
any reason. This means that while the McCain Amendment requires humane 
treatment of detainees, the substituted text of the Graham-Levin 
Amendment provides no remedy whatsoever when detainees are mistreated. 
The result is that Guantanamo could become the legal black hole that 
the administration has long argued it should be. The Supreme Court 
rejected that argument in Rasul v. Bush in 2004.
  I am also deeply troubled by other provisions added in conference. 
The conference report allows a combatant status review tribunal, an 
administrative review board, or a similar tribunal to consider 
statements obtained as a result of coercive interrogation, so long as 
the tribunal assesses the ``probative value'' of the statement. With 
the passage of the McCain amendment, I had hoped that the Congress was 
finally prepared to acknowledge that statements obtained by coercion 
have no value.
  A prime example of how abusive interrogation techniques elicit bad 
intelligence was reported on December 9, 2005, in The New York Times. 
The article states that the ``administration based a crucial prewar 
assertion about ties between Iraq and al Qaida on detailed statements 
made by a prisoner while in Egyptian custody who later said he had 
fabricated them to escape harsh treatment.'' Just last week, at a 
speech in Philadelphia, a member of the audience asked the President 
why the administration continually seeks to link the 9/11 attacks with 
the invasion of Iraq in spite of the fact that Iraq was not involved in 
the events of 9/11.
  It is beneath the values of this Nation to allow the use of coerced 
statements in the trials or review panels conducted on the status of 
detainees. It is also beneath us to strip detainees of habeas rights. 
Filing a petition for a writ of habeas corpus is often the detainee's 
only opportunity to openly challenge the basis for his detention. 
Providing detainees this right is not about coddling terrorists. It is 
about showing the world that we are a nation of laws and that that we 
uphold the principles that we urge other nations to follow. It is about 
honoring and respecting the values that are part of our heritage as 
Americans and that have shone as a beacon to the rest of the world. 
Allowing a detainee to file a habeas petition provides legitimacy to 
our detention system and quells speculation that we are holding 
innocent people in secret prisons without any right to due process.
  Some members of the Senate have argued that these prisoners should be 
tried in the military justice system. I think that we could all agree 
on such a course if the administration had worked with Congress from 
the start and established with our approval procedures that are fair 
and consistent with our tradition of military justice. The Graham-Levin 
amendment does allow the Court of Appeals for the District of Columbia 
to review some of the military commission's final decisions. I am in 
favor of Federal court review, but Congress seems to have missed the 
critical step of authorizing the administration to use military 
commissions. I introduced a bill in the 107th Congress to do just that. 
So did Chairman Specter. If the administration wanted to use military 
commissions to try detainees, it should have sought and obtained the 
explicit authorization of Congress. It did not do so. The system that 
has been established by the administration to try individuals held at 
Guantanamo does not provide due process or independent review. It is 
not a system that reflects our tradition of justice.
  Since the Graham-Levin amendment would not retroactively apply to 
pending cases, the Supreme Court will still have the opportunity to 
determine the legitimacy of the military commissions, as being 
litigated in case of Hamdan v. Rumsfeld. If the military commission 
process is rejected by the Court, I hope that the administration will 
work with Congress to establish a fair system for trying suspects who 
are captured in the war on terror. Working in this way, we can restore 
the reputation of our Nation for upholding the rule of law.
  Everyone in Congress agrees that we must capture and detain terrorist 
suspects, but it can and should be done in accord with the laws of war 
and in a manner that upholds our commitment to the rule of law. The 
Judiciary Committee held a hearing on detainee issues in June. At that 
hearing, Senator Graham said that once enemy combatant status has been 
conferred upon someone, ``it is almost impossible not to envision that 
some form of prosecution would follow.'' He continued, ``We can do this 
and be a rule of law nation. We can prove to the world that even among 
the worst people in the world, the rule of law is not an inconsistent 
concept.'' I agree with Senator Graham, but I strongly believe that in 
order to uphold our commitment to the rule of law, we must allow 
detainees the right to challenge their detention in Federal court.
  As Chairman Specter noted on the floor last month, there are existing 
procedures under habeas corpus that have been upheld by the Supreme 
Court that do not invite frivolous claims and that are appropriate. The 
Graham-Levin amendment would not only restrict habeas in a manner never 
done before in our Nation, but, as the chairman of the Judiciary 
Committee said last week, it would open a Pandora's box.
  The chairman is right. We must not rush to change a legal right that 
predates our Constitution. Creating one exemption to the Great Writ 
only invites more. The Judiciary Committee has jurisdiction over habeas 
corpus, and it should have the first opportunity to review any proposed 
changes carefully and thoroughly. Although congressional action on the 
issue of foreign detainees is long overdue, we must not act hastily 
when the Great Writ--something that protects us all--is at stake.
  I ask unanimous consent to place in the Record an article entitled, 
``Qaeda-Iraq Link U.S. Cited Is Tied to Coercion Claim,'' from the 
December 9, 2005, New York Times.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                [From the New York Times, Dec. 9, 2005]

          Qaeda-Iraq Link U.S. Cited Is Tied to Coercion Claim

                           (By Douglas Jehl)

       Washington.--The Bush administration based a crucial prewar 
     assertion about ties between Iraq and Al Qaeda on detailed 
     statements made by a prisoner while in Egyptian custody who 
     later said he had fabricated them to escape harsh treatment, 
     according to current and former government officials.
       The officials said the captive, Ibn al-Shaykh al-Libi, 
     provided his most specific and elaborate accounts about ties 
     between Iraq and Al Qaeda only after he was secretly handed 
     over to Egypt by the United States in January 2002, in a 
     process known as rendition.
       The new disclosure provides the first public evidence that 
     bad intelligence on Iraq may have resulted partly from the 
     administration's heavy reliance on third countries to carry 
     out interrogations of Qaeda members and others detained as 
     part of American counterterrorism efforts. The Bush 
     administration used Mr. Libi's accounts as the basis for its 
     prewar claims, now discredited, that ties between Iraq and Al 
     Qaeda included training in explosives and chemical weapons.
       The fact that Mr. Libi recanted after the American invasion 
     of Iraq and that intelligence based on his remarks was 
     withdrawn by the C.I.A. in March 2004 has been public for 
     more than a year. But American officials had not previously 
     acknowledged either that Mr. Libi made the false statements 
     in foreign custody or that Mr. Libi contended that his 
     statements had been coerced.
       A government official said that some intelligence provided 
     by Mr. Libi about Al Qaeda had been accurate, and that Mr. 
     Libi's claims that he had been treated harshly in Egyptian 
     custody had not been corroborated.
       A classified Defense Intelligence Agency report issued in 
     February 2002 that expressed skepticism about Mr. Libi's 
     credibility on questions related to Iraq and Al Qaeda was 
     based in part on the knowledge that he was no longer in 
     American custody when he made the detailed statements, and 
     that he might have been subjected to harsh treatment, the 
     officials said. They said the C.I.A.'s decision to withdraw 
     the intelligence based on Mr. Libi's claims had been made 
     because of his later assertions, beginning in January 2004, 
     that he had fabricated them to obtain better treatment from 
     his captors.
       At the time of his capture in Pakistan in late 2001, Mr. 
     Libi, a Libyan, was the highest-ranking Qaeda leader in 
     American custody. A Nov. 6 report in The New York

[[Page 30734]]

     Times, citing the Defense Intelligence Agency document, said 
     he had made the assertions about ties between Iraq and Al 
     Qaeda involving illicit weapons while in American custody.
       Mr. Libi was indeed initially held by the United States 
     military in Afghanistan, and was debriefed there by C.I.A. 
     officers, according to the new account provided by the 
     current and former government officials. But despite his high 
     rank, he was transferred to Egypt for further interrogation 
     in January 2002 because the White House had not yet provided 
     detailed authorization for the C.I.A. to hold him.
       While he made some statements about Iraq and Al Qaeda when 
     in American custody, the officials said, it was not until 
     after he was handed over to Egypt that he made the most 
     specific assertions, which were later used by the Bush 
     administration as the foundation for its claims that Iraq 
     trained Qaeda members to use biological and chemical weapons.
       Beginning in March 2002, with the capture of al Qaeda 
     operative named Abu Zubaydah, the C.I.A. adopted a practice 
     of maintaining custody itself of the highest-ranking 
     captives, a practice that became the main focus of recent 
     controversy related to detention of suspected terrorists.
       The agency currently holds between two and three dozen 
     high-ranking terrorist suspects in secret prisons around the 
     world. Reports that the prisons have included locations in 
     Eastern Europe have stirred intense discomfort on the 
     continent and have dogged Secretary of State Condoleezza Rice 
     during her visit there this week.
       Mr. Libi was returned to American custody in February 2003, 
     when he was transferred to the American detention center in 
     Guantanamo Bay, Cuba, according to the current and former 
     government officials. He withdrew his claims about ties 
     between Iraq and Al Qaeda in January 2004, and his current 
     location is not known. A C.I.A. spokesman refused Thursday to 
     comment on Mr. Libi's case. The current and former government 
     officials who agreed to discuss the case were granted 
     anonymity because most details surrounding Mr. Libi's case 
     remain classified.
       During his time in Egyptian custody, Mr. Libi was among a 
     group of what American officials have described as about 150 
     prisoners sent by the United States from one foreign country 
     to another since the Sept. 11, 2001 attacks for the purposes 
     of interrogation. American officials including Ms. Rice have 
     defended the practice, saying it draws on language and 
     cultural expertise of American allies, particularly in the 
     Middle East, and provides an important tool for 
     interrogation. They have said that the United States carries 
     out the renditions only after obtaining explicit assurances 
     from the receiving countries that the prisoners will not be 
     tortured.
       Nabil Fahmy, the Egyptian ambassador to the United States, 
     said in a telephone interview on Thursday that he had no 
     specific knowledge of Mr. Libi's case. Mr. Fahmy acknowledged 
     that some prisoners had been sent to Egypt by mutual 
     agreement between the United States and Egypt. ``We do 
     interrogations based on our understanding of the culture,'' 
     Mr. Fahmy said. ``We're not in the business of torturing 
     anyone.''
       In statements before the war, and without mentioning him by 
     name, President Bush, Vice President Dick Cheney, Colin L. 
     Powell, then the secretary of state, and other officials 
     repeatedly cited the information provided by Mr. Libi as 
     ``credible'' evidence that Iraq was training Qaeda members in 
     the use of explosives and illicit weapons. Among the first 
     and most prominent assertions was one by Mr. Bush, who said 
     in a major speech in Cincinnati in October 2002 that ``we've 
     learned that Iraq has trained Al Qaeda members in bomb making 
     and poisons and gases.''
       The question of why the administration relied so heavily on 
     the statements by Mr. Libi has long been a subject of 
     contention. Senator Carl Levin of Michigan, the top Democrat 
     on the Senate Armed Services Committee, made public last 
     month unclassified passages from the February 2002 document, 
     which said it was probable that Mr. Libi ``was intentionally 
     misleading the debriefers.''
       The document showed that the Defense Intelligence Agency 
     had identified Mr. Libi as a probable fabricator months 
     before the Bush administration began to use his statements as 
     the foundation for its claims about ties between Iraq and Al 
     Qaeda involving illicit weapons.
       Mr. Levin has since asked the agency to declassify four 
     other intelligence reports, three of them from February 2002, 
     to see if they also expressed skepticism about Mr. Libi's 
     credibility. On Thursday, a spokesman for Mr. Levin said he 
     could not comment on the circumstances surrounding Mr. Libi's 
     detention because the matter was classified.

  Mr. LEAHY. Late Sunday night, Republican leadership slipped language 
into a lengthy appropriations conference report that will immunize drug 
companies against reckless misconduct and will impede our ability to 
protect our citizens from the threatened avian flu pandemic. This 
provision is a gift to the drug manufacturers and will likely have a 
devastating effect on our ability to protect our constituents.
  Under the guise of a threatened pandemic, this legislation goes far 
beyond the scope of vaccine preparedness and includes language that is 
far more sweeping than any language previously passed by the House or 
the Senate. Instead of focusing on protecting American families from 
avian flu or ensuring that victims of any untested vaccine will be 
compensated for their injuries, the provision simply shields drug 
companies from any culpability for injuries caused by its actions. The 
scope of this immunity is so expansive that once the Secretary of 
Health and Human Services has declared a public health emergency even 
for a future threat, drug companies would not be held accountable for 
any injuries or deaths caused by the drugs they manufacture, including 
drugs that are not specifically used in a pandemic context. This is 
disgraceful and will deter Americans from taking vaccines and drugs if 
we ever experience a health crisis.
  The only exception to the broad immunity given to drug companies in 
this proposal is the possibility that a victim could prove that the 
company acted with ``willful misconduct.'' Knowingly committing health 
violations would not even suffice to state a claim. Knowing violations 
as well as gross negligence would be immunized from accountability. 
Even if the drug company acted with the intent to harm people, it would 
nevertheless be immune from criminal conduct unless the Attorney 
General or Secretary of Health and Human Services initiates an 
enforcement action against a drug company that is still pending at the 
time a personal claim is filed. That is unbelievable. I question 
whether such a role for the Secretary of HHS is even constitutional. 
Since when do we in Congress allow a political appointee of the 
administration to determine when, and if, someone injured by willful 
misconduct can be compensated for their injuries? Professor Erwin 
Chemerinsky sent a letter yesterday that outlines his concerns 
regarding the constitutionality of the provision and I ask that his 
letter be made part of the Record.
  Passage of the Defense appropriations bill is of vital importance to 
all of us, but the inclusion of provisions that excuse even gross and 
deadly negligence on the part of drug companies makes it impossible for 
many of us to vote for this bill in good conscience. I urge my 
colleagues to strike the unjustified and extraneous provisions from the 
Defense appropriations bill in order to act quickly on this important 
bill.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                December 20, 2005.
       Dear Senator: I understand that the Congress is considering 
     legislation that has been denominated as the ``Public 
     Readiness and Emergency Preparedness Act.'' This legislation 
     would give the Secretary of Health and Human Services 
     extraordinary authority to designate a threat or potential 
     threat to health as constituting a public health emergency 
     and authorizing the design, development, and implementation 
     of countermeasures, while providing total immunity for 
     liability to all those involved in its development and 
     administration. In addition to according unfettered 
     discretion to the Secretary to grant complete immunity from 
     liability, the bill also deprives all courts of jurisdiction 
     to review those decisions. Sec. (a)(7). I write to alert the 
     Congress to the serious constitutional issues that the 
     legislation raises.
       First, the bill is of questionable constitutionality 
     because of its broad, unfettered delegation of legislative 
     power by Congress to the executive branch of government. 
     Under the nondelegation doctrine, Congress may provide 
     another branch of government with authority over a subject 
     matter, but ``cannot delegate any part of its legislative 
     power except under the limitation of a prescribed standard.'' 
     United States v. Chicago, M., St. P. & P.R. Co., 282 U.S. 
     311, 324 (1931). Recently, the Supreme Court endorsed Chief 
     Justice Taft's description of the doctrine: ``the 
     Constitution permits only those delegations where Congress 
     `shall lay down by legislative act an intelligible principle 
     to which the person or body authorized to [act] is directed 
     to conform.''' Clinton v. City of New York, 524 U.S. 417, 484 
     (1998)(emphasis in original), quoting J.W. Hampton, Jr., & 
     Co. v. United States, 276 U.S. 394, 409 (1928). The breadth 
     of authority granted the Secretary

[[Page 30735]]

     without workable guidelines from Congress appears to be the 
     type of ``delegation running riot'' that grants the Secretary 
     a ``roving commission to inquire into evils and upon 
     discovery correct them'' of the type condemned by Justice 
     Cardozo in A.L.A. Schechter Poultry Corp. v. United States, 
     295 U.S. 495, 553 (1935)(Cardozo, J., concurring).
       Second, the bill raises important federalism issues because 
     it sets up an odd form of federal preemption of state law. 
     All relevant state laws are preempted. Sec. (a)(8). However, 
     for the extremely narrow instance of willful (knowing) 
     misconduct by someone in the stream of commerce for a 
     countermeasure, the bill establishes that the substantive law 
     is the law of the state where the injury occurred, unless 
     preempted. Sec. (e)(2). The sponsors appear to be trying to 
     have it both ways, which may not be constitutionally 
     possible. The bill anticipates what is called express 
     preemption, because the scope of any permissible lawsuits is 
     changed from a state-based to a federally based cause of 
     action. See Beneficial Nat'l Bank v. Anderson, 539 U.S. 1, 8 
     (2003).
       Usually, that type of ``unusually `powerful''' preemptive 
     statute provides a remedy for any plaintiff's claim to the 
     exclusion of state remedies. Id. at 7 (citation omitted). 
     Here, rather than displace state law in such instances, the 
     bill adopts the different individual laws of the various 
     states, but amends them to include a willful misconduct 
     standard that can only be invoked if the Secretary or 
     Attorney General initiates an enforcement action against 
     those involved in the countermeasure and that action is 
     either pending at the time a claim is filed or concluded with 
     some form of punishment ordered.
       Such a provision raises two important constitutional 
     concerns. One problem is that this hybrid form of preemption 
     looks less like an attempt to create a federal cause of 
     action than an direct attempt by Congress to amend state law 
     in violation of Erie Railroad Co. v. Tompkins, 304 U.S. 64 
     (1938) and basic principles of federalism. Although Congress 
     may preempt state law under the Supremacy Clause by creating 
     a different and separate federal rule, see Crosby v. Nat'l 
     Foreign Trade Counc., 530 U.S. 363, 372 (2000), it may not 
     directly alter, amend, or negate the content of state law as 
     state law. That power, the Erie Court declared, ``reserved by 
     the Constitution to the several States.'' 304 U.S. at 80. It 
     becomes clear that the bill attempts to amend state law, 
     rather than preempt it with a federal alternative, when one 
     realizes that States will retain the power to enact new 
     applicable laws or amend existing ones with a federal overlay 
     that such an action may only be commenced in light of a 
     federal enforcement action and can only succeed when willful 
     misconduct exists. The type of back and forth authority 
     between the federal and state governments authorized by the 
     bill fails to constitute a form of constitutionally 
     authorized preemption.
       The other problem with this provision is that the 
     unfettered and unreviewable discretion accorded the Secretary 
     or Attorney General to prosecute an enforcement action as a 
     prerequisite for any action for willful misconduct violates 
     the constitutional guarantee of access to justice, secured 
     under both the First Amendment's Petition Clause and the 
     Fifth Amendment's Due Process Clause. See Christopher v. 
     Harbury, 536 U.S. 403, 415 n.12 (2002). In fact, the Court 
     has repeatedly recognized that ``the right of access to the 
     courts is an aspect of the First Amendment right to petition 
     the Government for redress of grievances.'' Bill Johnson's 
     Restaurants v. NLRB, 461 U.S. 731, 741 (1983), citing 
     California Motor Transport Co. v. Trucking Unlimited, 404 
     U.S. 508, 510 (1972). First Amendment rights, the Supreme 
     Court has said in a long line of precedent, cannot be 
     dependent on the ``unbridled discretion'' of government 
     officials or agencies. See, e.g., City of Lakewood v. Plain 
     Dealer Pub. Co., 486 U.S. 750, 757 (1988). At the same time, 
     the Due Process Clause guarantees a claimant an opportunity 
     to be heard ``at a meaningful time and in a meaningful 
     manner.'' Armstrong v. Manzo, 380 U.S. 545, 552 (1965). The 
     obstacles placed before a claimant, including the insuperable 
     one of inaction by the Secretary or Attorney General, raise 
     significant due process issues. The Supreme Court has 
     recognized that official inaction cannot prevent a claimant 
     from being able to go forth with a legitimate lawsuit. See 
     Logan v. Zimmerman Brush Co., 455 U.S. 422 (1982). The 
     proposed bill seems to reverse that constitutional 
     imperative.
       Third, the complete preclusion of judicial review raises 
     serious constitutional issues. The Act, through Sec. 319F-
     3(b)(7), expressly abolishes judicial review of the 
     Secretary's actions, ordaining that ``[n]o court of the 
     United States, or of any State, shall have subject matter 
     jurisdiction,'' i.e., the power, ``to review . . . any action 
     of the Secretary regarding'' the declaration of emergencies, 
     as well as the determination of which diseases or threats to 
     health are covered, which individual citizens are protected, 
     which geographic areas are covered, when an emergency begins, 
     how long it lasts, which state laws shall be preempted, and 
     when or if he shall report to Congress .
       The United States Supreme Court has repeatedly stressed 
     that the preclusion of all judicial review raises ``serious 
     questions'' concerning separation of powers and due process 
     of law. See, e.g., Johnson v. Robison, 415 U.S. 361 (1974); 
     see also, Oestereich v. Selective Service System Local Board 
     No. 14, 393 U.S. 233 (1968); McNary v. Haitian Refugee 
     Center, Inc., 498 U.S. 479 (1991); Reno v. Catholic Social 
     Services, 509 U.S. 43 (1993). Judicial review of government 
     actions has long regarded as ``an important part of our 
     constitutional tradition'' and an indispensable feature of 
     that system, Lehnhausen v. Lake Shore Auto Parts Co., 410 
     U.S. 356, 365 (1973).
       The serious constitutional issues raised by this 
     legislation deserve a full airing and counsels against any 
     rush to judgment by the Congress. Whatever the merits of the 
     bill's purposes, they may only be accomplished by 
     consideration that assures its constitutionality.
                                                Erwin Chemerinsky.

  Mr. DORGAN. Mr. President, the conference report on the Defense 
appropriations bill contains $29 billion in disaster relief funding 
related to hurricanes Katrina and Rita. As part of that emergency 
package, $49 million is being made available to the National Park 
Service and the U.S. Fish and Wildlife Service to reimburse cleanup 
costs and facility repair and restoration costs arising from the 
hurricanes. As the ranking member of the Interior and Related Agencies 
Subcommittee, which has jurisdiction over these agencies, I fully 
support this appropriation. There are, however, two aspects of the 
funding provision which concern me.
  First, the $49 million being provided is less than a quarter of the 
$220 million in damages suffered by our gulf coast parks and refuges. 
But not funding these expenses does not make them go away. What I fear 
will end up happening is that every other park and every other refuge 
in the Nation is going to have its 2006 budget reduced as a way of 
making up the $170 million Congress is not providing. Every park 
superintendent and every refuge manager in this Nation is struggling to 
keep up with fixed costs and working to address the maintenance 
backlog. Taking more money away from them is simply not helpful.
  Secondly, I strongly disagree with the instructions that are being 
given to the National Park Service and the Fish and Wildlife Service 
with respect to how these funds are to be spent. The funding in this 
bill is provided through each Agency's construction account. Under 
Federal law, that is the only purpose for which those funds can be 
used. They cannot legally be spent on operational expenses, which are 
funded through different accounts. However, the Statement of Managers, 
which is the report that accompanies the bill and explains in detail 
how all of the appropriated dollars are to be spent, explicitly says 
that the money is available for ``un--reimbursed overtime [pay] and 
operational costs.''
  I think it was a mistake for the administration to forgo asking for 
reimbursement of operational expenses. Both agencies have incurred 
substantial costs in that area that must be paid for. But the 
administration's error should not be compounded by having Congress 
encourage a Federal agency to violate the law. We could have very 
easily divided the funding between the operational accounts and the 
construction accounts, which would have allowed the agencies to 
properly and legally repay some of their operational costs. But that 
idea was soundly rejected by the majority in the House of 
Representatives. And so we are left with a situation where we are 
explicitly encouraging Federal agencies to use appropriated dollars for 
purposes other than what they were intended. That, Mr. President, is 
simply the wrong thing to do.
  Mr. KOHL. Mr. President, today I joined many of my colleagues in 
opposing cloture on the Defense appropriations bill. Regrettably, I was 
forced to try and slow this bill down because language unrelated to our 
Nation's defense was inserted into the bill. In a cynical attempt to 
authorize drilling in the Arctic National Wildlife Refuge, language 
that in the past has been filibustered, was included in the Defense 
bill. Using our men and women in the military as a shield, the ANWR 
bill was put in the Defense bill in a parliamentary game of chicken. 
Supporters of drilling in ANWR believed that if they included this 
language in the Defense bill, opponents of drilling in ANWR would never 
vote to hold up the Defense bill. They were wrong.

[[Page 30736]]

  I do not enjoy opposing a Defense bill while we have troops in harm's 
way, but the principle at stake here was too important. We will be 
sorry if we set the precedent that unpopular provisions can just be 
rolled into the bill that funds our defense. In the long run, letting 
that cynical strategy proliferate will hurt our country and the 
institution of the Senate.
  So today, when I opposed cloture, it was not a reflection of my 
support of our military. I believe in our men and women in uniform and 
believe that this bill should have been passed months ago. Instead, I 
opposed cloture because I believe that we should not use the Defense 
bill as a Trojan Horse to slip through legislation that would not be 
able to survive under the normal rules of the Senate.
  Mr. OBAMA. Mr. President, I rise to speak about the bill before us 
today.
  If any of you are wondering why the American people are so frustrated 
with the legislative process, why they believe that politics always 
trumps substance and nothing ever gets done in Washington, this is what 
they are talking about.
  Every single member of this body wants our military to have the 
funding and the resources it needs to fight the war in Iraq and the war 
on terror. We all agree on that.
  Yet somehow an otherwise noncontroversial bill gets bogged down 
because some have chosen to use it as a political opportunity to slip 
in proposals they couldn't get passed through the normal channels of 
debate and deliberation. The idea here is to add anything you want to a 
Defense bill, no matter how surprising or controversial, figuring that 
it will pass since no one would dare cast a vote against our troops.
  They may think this is shrewd politics, but it is terrible policy, 
and it is disrespectful to both our brave men and women in the field 
and the American people back home.
  Now, I have great respect for the Senator from Alaska, and I also 
respect his passion towards the ANWR debate, even if I disagree with 
his position. But I strongly believe that if he and other ANWR 
supporters wish to convince us of that position, they should do so by 
arguing the merits of the proposal itself, not by sneaking it into a 
bill none of us want to vote against. Not only does that go against the 
best traditions of the United States Senate, it goes against the best 
expectations of the American people when they sent us here.
  Aside from critical defense funding for our troops, there are other 
elements of this bill that this country desperately needs to have 
passed. There is funding for gulf coast recovery efforts and resources 
that will help our Nation prepare for a possible avian flu pandemic. I 
am also pleased that Senator McCain's amendment opposing torture, which 
was overwhelmingly passed by the Senate, appears in this bill.
  Unfortunately, all of this critical funding is being jeopardized by 
one Senator's desire to ram through a provision that is personally 
important to him. That is not the way Congress should be conducting its 
business.
  There will be a time and a place for debate on this topic as there 
has been before. But now is not that time. Not with 180,000 troops in 
harm's way who need important resources and supplies; not with families 
from the gulf coast who want a place to go home to; not with the danger 
of pandemic influenza threatening our shores. Now is the time to 
respect the legislative process and pass a bill that does not play 
politics with our troops, so that we can finally return home to our 
constituents and let them know that we truly did the people's work.
  Mr. President, I want to express my strong support for the 
reauthorization of the Department of Defense, DOD, 1207 program. The 
1207 program is designed to ensure that the DOD Federal contracting 
process does not support or subsidize discrimination. This program must 
be extended through September 2009 so that the tremendous progress we 
have made in leveling some of the playing ground for Federal 
contracting is not lost.
  We here in Congress know that there is a long history of keeping out 
the little guys in government contracting. In the aftermath of 
Hurricane Katrina, minority-owned and economically disadvantaged 
companies have had a near impossible time trying to secure some of the 
billions of dollars of gulf coast reconstruction contracts. Meanwhile, 
big multinational contractors were given no-bid contracts in the weeks 
immediately following the hurricane. This double standard is 
unfortunately all too common, and it is the duty of Congress to ensure 
that this discrimination does not continue.
  Ever since the DOD's 1207 program was first adopted in 1986, racial 
and ethnic discrimination--both overt and subtle--have continued to 
erect significant barriers to minority participation in Federal 
contracting, but the 1207 program helps to correct the problems of 
discrimination without imposing an undue burden on larger businesses. 
Without programs like the 1207 program, many contractors would simply 
revert to their old practices, denying contracts to small companies 
owned by minorities or the economically disadvantaged. It is clear that 
the 1207 program is still needed to monitor and secure the gains made 
and perhaps encourage even greater opportunity for these small 
businesses.
  I am pleased that this bill includes an extension of this important 
program. I have a letter from a minority-woman owned business detailing 
some of her experiences with the Department of Defense, and I ask that 
this letter also be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                          Elyon International,

                                 Vancouver, WA, December 20, 2005.
       Dear Senator, My name is Carmen Nazario. I am a Hispanic 
     woman business owner and Veteran, working in the Information 
     Technology industry. I have been in business for more than 
     eight years and our company has successfully completed 
     contracts in the private and public sector. I personally have 
     worked in this industry as a practicing professional for over 
     30 years. My initial entry into the computer technology 
     profession commenced while serving in the army during the 
     Vietnam-era war. I graduated as an honor student from the 
     Adjutant General School on two different occasions while 
     attending various types of computer training and continued in 
     that career path after leaving the military.
       I am writing to you because I believe that it is terribly 
     important that you understand that discrimination is still 
     pervasive in the contracting markets across this country. 
     Where I live in Washington State I confront discrimination on 
     a regular basis as I attempt to run my business and earn a 
     living.
       I understand that Congress is currently reauthorizing the 
     Department of Defense's 1207 program. This program is of 
     special interest to me because I have attempted to get work 
     with the Defense Department over the past several years to no 
     avail. I feel strongly that discrimination and stereotyping 
     are part of the reason that it is difficult for me, and for 
     other minority business owners. to fully participate in our 
     nation's economy.
       I would like to give you some examples of the types of 
     discrimination I have confronted just in the last few years. 
     For the past eight years I have engaged tirelessly in 
     marketing the services of ELYON International. I have 
     experienced an unfavorable business climate towards a 
     Hispanic woman professional, both in the public and private 
     sector in spite of the fact that I have wonderful references 
     and the clients I have previously supported have been very 
     happy with our services.
       I have been trying to work with Washington State agencies 
     for over seven years and find it very difficult because 
     Washington State has no minority procurement goals. Although 
     we have been on board with various agencies as pre-qualified 
     vendors by way of the RFP process, I find that the state 
     tends to award contracts to large firms and companies they 
     have been working with for years. As an example, I submitted 
     a well qualified candidate, a minority, who was interviewed 
     as a finalist but not selected and I found out that the work 
     was awarded to another company who had an established track 
     record with the state. (I requested the winning bid.) 
     Washington State's procurement awards to minority companies 
     has drastically decreased to less that 1 percent since 
     implementation of the 1-200 initiative which removed minority 
     procurement goals from State government purchasing. I find 
     this discriminatory in the sense that 99 percent of 
     contracting opportunities are going to non-minority 
     companies. The state is not distributing its wealth to its 
     constituents.
       This year we submitted a response to a small business set-
     aside for Tactical Network Services at Fort Lewis, WA. We had 
     Microsoft as a sub-contractor and used some

[[Page 30737]]

     of their past performance as well as ours. Much of the 
     technology for this response involved Microsoft products. 
     When I requested the winning vendor information I found out 
     it was awarded to a newly formed company, service disabled, 
     who had only been in existence for a few months and whose 
     owners had been previously employed by the incumbent and were 
     partnering with BAE who had acquired the incumbent, 
     DigitalNet (a large company).
       Deployable Data Systems, who won the bid, priced it at 
     $2,468,075 and ours was $2,298.107. Ours was $169,968 lower. 
     I requested a debriefing but was given bogus reasons and I 
     also requested a copy of the winning solicitation response 
     but was denied any further information other than price and 
     name of company that received the award. I find these actions 
     totally discriminatory . . . Ft Lewis decision makers knew 
     all along who they where going to award that contract to.
       MBEs are being squeezed out of the supply chain for larger 
     deals. Many government contracting opportunities have now 
     been bundled making it only possible for primary suppliers to 
     respond to these larger long-term contract opportunities. In 
     the past I have also proposed to establish a working 
     relationship as a subcontractor to IBM, Anteon, Unisys, Best 
     Consulting, Anderson Consulting (for GSA contract), DMO, 
     Emerald Solutions and many other large established computer 
     technology firms.
       A scenario where I proposed to establish a working 
     relationship as a subcontractor, involved IBM. In September 
     of 2002 I requested a list of companies planning to bid on 
     ACES RFP 2002-035-9275, a multi-million dollar RFP, that was 
     up for re-compete for a maximum period of 10 years (IBM 
     previously held contract). I contacted Mary Brennan, 
     Washington's State Department of Social & Health Services RFP 
     coordinator. She first did not want to release the names of 
     the companies bidding and I called the DSHS's Office of Equal 
     Opportunity to express my concern that a 10 year RFP was 
     being released and I wanted to have an opportunity to contact 
     vendors bidding and propose subcontracting services as a MWBE 
     IT vendor. Mary Brennan finally released the information and 
     I contacted all of the companies planning to bid on this RFP 
     (there were only three, primarily out of state companies). 
     IBM was the only one potentially interested in working with 
     my company. They released an email request for me to provide 
     information and resumes of candidates with the requirements 
     that they needed to satisfy. After much effort on my part to 
     coordindate available candidates and submit their 
     information, I received an email from Jack Tompkins dated 
     October 21, with the following message:
       ``Carmen, I wanted to thank for you responsiveness to our 
     requests for a WebSphere Administrator and Data Manager. For 
     now, we have filled the requirements we had for our proposal. 
     I do not have an immediate need for any of your candidates, 
     but was pleased to see some promising resumes. As we fill 
     positions in the future I'll make certain that you are made 
     aware of our openings.
       ``Thank again,
       ``Jack A. Tompkins
       ``IBM Global Services--State of Washington''
       IBM submitted the proposal to the state, but my company was 
     not included as one of its subcontractors even though I 
     received very positive feedback. Of course the State of 
     Washington had no MBE/WBE requirements in the RFP, nor 
     language encouraging prospective bidders to utilize minority 
     firms. Because of the scope of work involved with this RFP 
     and the number of years (ten)--this procurement probably will 
     hit triple digit multi-million dollar expenditure by the 
     State of Washington, yet there was no opportunity for 
     companies such as mine to participate in the state 
     expenditure. The State of WA ended up awarding this multi-
     million dollar contract to IBM in 2003 and the winning bid 
     had no minority participation. As of today, we have never 
     been contacted by IBM for any sub-contracting work.
       This experience as well as several others I had with large 
     Defense/Federal vendors has led me to believe that perhaps it 
     looks good for them on paper to submit information on their 
     MWBE subcontractor utilization (to comply with minority 
     goals) but their intent may not be to really give us 
     subcontract work.
       I appreciate the opportunity to share my stories with you. 
     I know that many, many business owners in similar situations 
     confront very similar problems. Still, many business owners 
     are afraid to speak out for fear of losing business or other 
     types of retaliation. Sadly, discrimination is not yet a part 
     of the past in the United States. Until it is, it is very 
     important that you continue to support and enforce programs 
     intended to level the playing field for women and minority 
     contractors.
       Thank you for your time and attention.
           Sincerely,
                                                   Carmen Nazario,
                                                        President.

  Mr. BROWNBACK. Mr. President, I rise to speak to speak on a free-
standing provision in title IV of the pending DOD appropriations bill, 
subtitle A, the Hurricane Education Recovery Act, which prohibits 
discrimination ``on the basis of . . . sex.'' (Section 107(m)(1)(A)). I 
want to ensure that this provision will be applied in an abortion-
neutral manner--such as parallel provisions that have long governed all 
educational institutions receiving Federal funds--even though it 
contains no explicit clarifying language.
  Over two decades ago, Federal regulators and others misused statutory 
language against ``discrimination on the basis of sex'' to argue that 
procedures, such as abortion, which apply only to women must be treated 
like any routine health procedure. To end this misinterpretation, 
abortion-neutral language amending title IX of the Education Amendments 
of 1972 was enacted as part of the Civil Rights Restoration Act in 
1988, 20 U.S.C Sec. 1688. When Congress passed the D.C. School Choice 
Incentive Act of 2003 in January, it incorporated this clarification by 
reference, Sec. 308(b)(3) of Pub. L. 108-199.
  It is therefore important to be clear that nothing in this bill is 
designed to change this legal status quo in any way. At a time when 
schoolchildren in so many States are in desperate need of temporary 
assistance to continue their educations, no one should be seizing upon 
this emergency legislation as a vehicle for changing current law on 
abortion. Nor should the devastation wrought by Hurricane Katrina and 
other disasters be used to justify filing sex discrimination suits 
against private and public schools that do not facilitate abortions for 
minor children in their charge. I am confident that Congress had no 
such intent in crafting this bill and that the U.S. Department of 
Education will not construe the bill's provision on discrimination ``on 
the basis of sex'' to require any new policy or practice on abortion in 
schools.
  Mr. NELSON of Florida. Mr. President, while I wholeheartedly support 
robust funding for our troops, several measures slipped into the 
Defense appropriations bill were totally extraneous to our military 
missions. Two such provisions--oil drilling in the Arctic National 
Wildlife Refuge and complete liability protection for drug companies 
that manufacture vaccines-- were added to this bill behind closed doors 
and in the dead of the night.
  If unrelated and unpopular measures can be slipped into our Nation's 
military spending bill at the last moment, without being included in 
either the House or Senate, open debate on issues and all control over 
spending has been lost. Lawmakers behind this move held funding for our 
troops hostage to achieve the interests of the oil and drug industries.
  Largely for this reason, dozens of Senators voted for more debate on 
the Defense appropriations conference report. We hope these unwanted 
and extraneous provisions will be removed.
  As I have stated, I voted to oppose closing off debate on the Defense 
appropriations bill for several reasons--including the bill's insertion 
of oil drilling in the Arctic National Wildlife Refuge and liability 
protection for drug companies that manufacture vaccines. In addition, 
to my opposition to these specific provisions, I believe the disaster 
relief provided for in the bill is woefully inadequate for Florida.
  Florida was hit by four hurricanes again in 2005. Hurricanes Dennis, 
Katrina, Rita and Wilma wreaked havoc in South Florida, the Panhandle 
and even parts of central Florida. These storms caused over $2 billion 
in agricultural losses. That surpasses the losses from the 2004 
hurricane season.
  Florida's Agriculture Commissioner, Charles Bronson, said that he has 
``never witnessed such extensive devastation to our state's agriculture 
sectors as that caused by Hurricane Wilma.''
  Despite this devastation, the disaster relief in the Defense 
appropriations bill fails to provide any financial relief to the 
citrus, sugar, vegetable, tropical fruit or livestock industry.
  It is estimated that Florida lost 47 percent of the grapefruit crop 
and 15 percent of the orange crop--for a total loss of $180 million.
  The vegetable industry took a $311 million hit because the fall and 
winter

[[Page 30738]]

vegetable crops were growing when Wilma hit.
  The sugar industry suffered more than $370 million in losses. One-
hundred mile per hour winds not only flattened the cane, but also 
caused significant structural damage to critical infrastructure such as 
storage bins and the mill.
  Literally, millions of Floridians are still struggling due to these 
hurricanes; and this bill does little to help them recover.
  When this bill goes back to the conference committee, I hope this 
disaster relief package can be reworked to provide relief for all those 
who suffered damage in this year's hurricanes.
  Mr. KERRY. Mr. President, the fiscal year 2006 Defense Appropriations 
Act is a vitally important piece of legislation. It funds the 
operations of the Department of Defense and, in this particular case, 
the wars in Iraq and Afghanistan.
  It is disgraceful that this bill was delayed until the end of the 
year by an administration that was more interested in lobbying for the 
right to torture than in meeting the needs of our troops. Now at this 
late hour, it was further delayed by those who sought to take a bill 
they knew people would support--funding our troops--and load it up with 
favors for special interests. With these issues resolved, I am pleased 
this important legislation has finally passed.
  The fiscal year 2006 Defense Appropriations Act includes funding for 
everything from boots to beans to bullets--everything our Armed Forces 
need to keep America safe. This bill funds the national defense program 
at $453.28 billion, including $50 billion in emergency appropriations 
for on going operations in Iraq and the war on terror.
  The legislation funds recent and pending increases in Army end 
strength, provides a 3.1 percent pay raise to all members of the U.S. 
military, and increases housing allowances.
  It funds the readiness programs that maintain our military's ability 
to conduct operations around the world, whether that means flying hours 
for pilots, steaming days for Navy crews, spare parts, training, or 
maintenance.
  The legislation funds major acquisition programs in every service--
whether the C-17, PAC-3 missiles, the Army's Stryker, or the Navy's DD-
X program. It also funds $72.1 billion in research development test and 
evaluation. That includes future systems--whether air, land, space or 
sea systems--as well as important medical research that will bring our 
soldiers the most advanced medical treatment on future battlefields. 
The future American military, its capabilities, and its personnel are 
all funded in this legislation.
  The $50 billion emergency appropriation included in this legislation 
funds on going operations in Iraq, Afghanistan, and wherever the war on 
terror takes American forces. That total includes money for combat pay, 
death gratuities, and other allowances. It includes $142.8 million for 
body armor and other personal protection equipment and $1.4 billion for 
the Joint Improvised Explosive Device Task Force. It funds important 
programs to replace lost or damaged helicopters and ground vehicles and 
restocks ordinances used in operations. It also includes $1 billion to 
meet immediate equipment deficiencies in the National Guard and 
Reserves.
  The Defense appropriations bill is one of the most important pieces 
of legislation the Congress enacts each year. It is always tempting to 
some to try to attach riders to it that have nothing to do with the 
defense of our country or the courageous Americans who make up the U.S. 
military. I am pleased that, at long last, the Senate finally moved 
this vital legislation that is so important to our troops.
  Mr. President, I know there will be some who criticize this 
legislation because of the way it was ultimately enacted. I share those 
frustrations. I wish that we could have passed a clean defense 
appropriations act 3 or 4 months ago to avoid the challenges we have 
seen in the last days. It is regrettable that we did not, but I am 
happy that this legislation has finally passed so that our troops 
receive the resources they need to protect this country.
  Mr. LIEBERMAN. Mr. President, we are in a period of extended debate 
to resolve the remaining issues related to the Defense appropriations 
bill, so I wanted to take a minute to address the serious avian flu 
issue that is before us. While I am concerned that we will need the 
full funding request the administration sought, if we approve the avian 
flu proposal, we will at least be advancing some $3 billion. I want to 
stress the importance of global wild bird surveillance systems as part 
of my comprehensive flu plan.
  I am pleased that the avian flu provisions include authorizing 
language and funds to set up a wild bird surveillance network as well 
as other essential elements of avian flu public health preparedness. If 
passed by Congress and signed by the President, this will assure that 
we have a comprehensive approach to what may become a real world 
threat. We do not want to have piecemeal solutions or be simplistically 
reactive when it comes to the public's health.
  The avian flu provision we have been considering today states that 
part of $150 million is designated to carry out global and domestic 
disease surveillance, which includes international surveillance to 
track influenza strains as a way of focusing limited resources on at-
risk populations. The conferees have pointed out specifically the 
importance of migratory bird tracking in predicting the spread of avian 
influenza and encourage the CDC to ensure that this important activity 
is part of its surveillance activities. I am pleased with this language 
that acknowledges a key part of the preparedness puzzle to which, 
frankly, few people have given attention--wild bird sentinels and the 
intimate connection between animal and human health. We cannot separate 
the two.
  As we all know, the potential for an influenza pandemic is increasing 
as the H5N1 virus has now moved swiftly across Asia, Russia, Turkey, 
and now the EU, killing millions of domestic poultry and over 60 humans 
to date. History and science tell us that wild birds and movements of 
poultry have the potential to spread deadly avian influenza viruses. 
The 1918 influenza epidemic that killed an estimated 40 million people 
worldwide was an avian-origin viral strain. We must act now to ensure 
that this does not happen again. We have the tools to track the 
movement of this virus. We just need to increase and strengthen them.
  In October, I introduced a bill, S. 1912, to do exactly this. This 
month, Representatives DeLauro and Lowey, with the cosponsorship of 
Representative Case, introduced an identical bill in the House of 
Representatives, H.R. 4476, to provide funds supporting an early 
warning system and real-time data network for global avian influenza 
surveillance. Senator Brownback has also been supportive of these 
efforts to urge Congress to examine ways to boost our prevention and 
preparedness efforts via an international surveillance network.
  In fact, the Senate passed appropriations for such an effort in the 
Senate Labor-HHS appropriations bill for fiscal year 2006. This was 
work from our colleagues Senators Specter and Harkin, who again 
realized the importance of fighting the threat of avian flu from 
multiple fronts including funds for vaccines and antivirals but also 
with the establishment of an international wild bird surveillance 
network.
  The surveillance network contemplated by the avian flu proposals we 
have been considering should be designed to be an early warning and 
tracking system to monitor avian viruses and their mutations and 
reassortments, as carried by wild birds. The provision would require 
expansion the Centers for Disease Control and Prevention's Influenza 
Branch's wild bird surveillance program, which currently is small. 
Specifically, it is our intent that the Centers for Disease Control and 
Prevention's Influenza Branch, CDC, with expertise in analyzing 
ornithological and animal samples for infectious diseases, and other 
national partners, such as the US Agency for International Development, 
USAID, with expertise in working with international partners and 
coalitions, would

[[Page 30739]]

partner with one or more nongovernmental organizations that meet the 
following criteria: have extensive global wildlife health experience in 
tracking disease in wild birds, including free-ranging, captive, and 
wild-bird species using an international and extensive field program 
and network with projects in 50 or more countries to allow for the 
collection and dissemination of data around the world; have proven 
ability in identifying avian influenza, specifically H5N1 and other 
infectious diseases, in wild birds; and have accredited zoological 
facilities in the United States, with the capacity to analyze, store, 
and interpret samples and compile data.
  Such tracking allows us to predict the spread of the virus and then 
to focus limited resources and prepare communities in the flight path 
of wild birds, as the conference report notes. Potential interventions 
include providing available antivirals or vaccines to those at-risk, 
enhancing biosecurity at poultry farms, and even keeping people indoors 
should surveillance information warrant it. By tracking wild birds, as 
these provisions require, we may even be able to produce an avian flu 
vaccine faster by understanding which variant of avian influenza virus 
is the killer. The current H5N1 virus is potentially not the one that 
could cause widespread devastation to humans. Again, the conference 
report recognizes the importance of tracking viral strains and has 
provided the CDC with funding to do so.
  Just as we track hurricanes as they begin as a tropical storm, we 
must track wild birds and the viral storms they carry over oceans and 
continents and share that data with the world.
  At least $10 million of the funds available in this proposal in 2006 
should be available to the CDC to work with a national partner such as 
USAID and one or more eligible NGOs with the expertise and the criteria 
previously outlined and other supporting international partners to 
establish a strong global wild bird surveillance system.
  This proposal would help ensure we have an organized, near real-time, 
virtual library that would allow U.S. Government agencies, wildlife 
conservation organizations, and public health organizations to track 
both the spread of avian viruses and their reassortments and mutations, 
which are integral to understanding how a virus might change to permit 
human to human transfer.
  Ten million dollars is a small sum in comparison to the tens of 
billions of dollars required for vaccine research and antiviral 
stockpiling. Vaccines and stockpiling are our current focus and we 
should be thinking about them--but it is equally important to think 
about being prepared for outbreaks and preventing a pandemic from ever 
becoming a reality.
  As we speak, information is being collected and analyzed all over the 
United States and the world. But while we are collecting piles of data, 
it is not being stored in the kind of organized manner needed to make 
it available for easy study and response. The information we have, I 
fear, is scattered like books with no library to contain them and no 
librarian to locate them.
  Again, I would like to thank leaders in the Senate and the House, 
including Senators Specter, Harkin, and Brownback, and Representatives 
DeLauro, Lowey, and Case, for their work in preparing our Nation for a 
possible pandemic. We must address the treatment, surveillance, and 
prevention but, also, critically the global wildfowl surveillance; this 
addresses a big gap that is easy to forget about. It is the big bird in 
the room.
  Wild birds can spread this virus and could potentially carry it to 
the United States. I thank and urge my colleagues to continue 
supporting flu legislation with essential provisions such as this one, 
which surveys wild birds with NGOs who have the international networks 
and the capacity to connect all the dots, so when a flu pandemic does 
or does not happen, we are better prepared.
  Mr. DURBIN. Mr. President, I rise to speak about the Detainee 
Treatment Act of 2005, which is included in the Defense Appropriations 
conference report.
  I will submit a similar statement into the Record for the Defense 
authorization conference report because the Detainee Treatment Act of 
2005 is also included in the Defense authorization bill.
  The Detainee Treatment Act includes two provisions that were adopted 
in the Senate version of the Defense Authori-
zation bill: the McCain Antitorture amendment and the Graham-Levin 
Detainee amendment.
  I was an original cosponsor of the McCain Antitorture amendment. I 
have spoken at length about the vital importance of this amendment on 
several other occasions. At this time, I simply want to reiterate a 
couple of points.
  Twice in the last year and a half, I have authored amendments to 
affirm our Nation's longstanding position that torture and cruel, 
inhuman, or degrading treatment are illegal. Twice, the Senate 
unanimously approved my amendments. Both times, the amendments were 
killed behind the closed doors of a conference committee--at the 
insistence of the Bush administration.
  I am pleased that the administration has changed its position. As a 
result, it will now be absolutely clear that under U.S. law all U.S. 
personnel are prohibited from subjecting any detainee anywhere in the 
world to torture or cruel, inhuman, or degrading treatment.
  The amendment defines cruel, inhuman, or degrading treatment as any 
conduct that would constitute the cruel, unusual, and inhumane 
treatment or punishment prohibited by the U.S. Constitution if the 
conduct took place in the United States. Under this standard, abusive 
treatment that would be unconstitutional in American prisons will not 
permissible anywhere in the world.
  Let me give you some examples of conduct that is clearly prohibited 
by the McCain amendment.
  ``Waterboarding'' or simulated drowning is a technique that was used 
during the Spanish Inquisition. It is clearly a form of torture. It 
creates an overwhelming sense of imminent death. It amounts to a clear-
cut threat of death akin to a mock execution, which is expressly called 
``mental torture'' in the U.S. Army Field Manual.
  Sleep deprivation is another classic form of torture which is 
explicitly called ``mental torture'' in the U.S. Army Field Manual. It 
has been banned in the United Kingdom and by a unanimous Israeli 
Supreme Court, and the U.S. Supreme Court has repeatedly declared it 
unconstitutional, once citing a report that called it ``the most 
effective form of torture''.
  The amendment also clearly bans so-called stress positions or 
painful, prolonged forced standing or shackling. Again, the U.S. Army 
Field Manual expressly calls these techniques ``physical torture.'' 
Moreover, one of the most recent Supreme Court cases on the extent of 
the prohibitions on ``cruel and unusual'' punishments expressly 
outlawed the use of painful stress positions, denouncing their 
``obvious cruelty'' as ``antithetical to human dignity.''
  The amendment bans the use of extreme cold, or hypothermia, as an 
interrogation tactic. Hypothermia can be deadly. Clearly it is capable 
of causing severe and lasting harm, if not death, and consequently is 
banned by both the Field Manual and the Constitution.
  The amendment bans punching, striking, violently shaking or beating 
detainees. Striking prisoners is a criminal offense and clearly 
unconstitutional. Moreover, while assaults like slapping and violent 
shaking, may not seem as dangerous as beatings, shaking did, in fact, 
kill a prisoner in Israel, and the tactic has been banned by the 
Israeli Supreme Court. Numerous U.S. Supreme Court cases likewise 
prohibited striking prisoners.
  The amendment bans the use of dogs in interrogation and the use of 
nakedness and sexual humiliation for the purpose of degrading 
prisoners.
  No reasonable person, given the text of the amendment, the judicial 
precedents, and common sense, would consider these techniques to be 
permitted. Any U.S. official or employee who receives legal advice to 
the contrary should think twice before defying the will of the Congress 
on this issue.

[[Page 30740]]

  The McCain antitorture amendment will make the rules for the 
treatment of detainees clear to our troops and will send a signal to 
the world about our Nation's commitment to the humane treatment of 
detainees.
  I want to express again my opposition to the Graham-Levin amendment.
  The amendment would essentially eliminate habeas corpus for detainees 
at Guantanamo Bay. In so doing, it would apparently overturn the 
Supreme Court's landmark decision in Rasul v. Bush.
  No one questions the fact that the United States has the power to 
hold battlefield combatants for the duration of an armed conflict. That 
is a fundamental premise of the law of war.
  However, over the objections of then-Secretary of State Colin Powell 
and military lawyers, the Bush administration has created a new 
detention policy that goes far beyond the traditional law of war. The 
administration claims the right to seize anyone, including an American 
citizen, anywhere in the world, including in the United States, and to 
hold him until the end of the war on terrorism, whenever that may be. 
They claim that a person detained in the war on terrorism has no legal 
rights. That means no right to a lawyer, no right to see the evidence 
against him, and no right to challenge his detention. In fact, the 
Government has argued in court that detainees would have no right to 
challenge their detentions even if they claimed they were being 
tortured or summarily executed.
  U.S. military lawyers have called this detention system ``a legal 
black hole.''
  Defense Secretary Rumsfeld has described the detainees as ``the 
hardest of the hard core'' and ``among the most dangerous, best 
trained, vicious killers on the face of the Earth.'' However, the 
administration now acknowledges that innocent people are held at 
Guantanamo Bay. In late 2003, the Pentagon reportedly determined that 
15 Chinese Muslims held at Guantanamo are not enemy combatants and were 
mistakenly detained. Almost 2 years later, those individuals remain in 
Guantanamo Bay.
  Last year, in the Rasul decision, the Supreme Court rejected the 
administration's detention policy. The Court held that detainees at 
Guantanamo have the right to habeas corpus to challenge their 
detentions in Federal court. The Court held that the detainees' claims 
that they were detained for years without charge and without access to 
counsel ``unquestionably describe custody in violation of the 
Constitution, or laws or treaties of the United States.''
  The Graham amendment would protect the Bush administration's 
detention system from legal challenge. It would effectively overturn 
the Supreme Court's decision. It would prevent innocent detainees, like 
the Chinese Muslims, from challenging their detention.
  However, I do want to note some limitations on the scope of the 
Graham-Levin amendment.
  A critical feature of this legislation is that it is forward looking. 
A law purporting to require a Federal court to give up its jurisdiction 
over a case that is submitted and awaiting decision would raise grave 
constitutional questions. The amendment's jurisdiction-stripping 
provisions clearly do not apply to pending cases, including the Hamdan 
v. Rumsfeld case, which is currently pending before the Supreme Court. 
In accordance with our traditions, this amendment does not apply 
retroactively to revoke the jurisdiction of the courts to consider 
pending claims invoking the Great Writ of Habeas Corpus challenging 
past enemy combatant determinations reached without the safeguards this 
amendment requires for future determinations. The amendment alters the 
original language introduced by Senator Graham so that those pending 
cases are not affected by this provision.
  The amendment also does not legislate an exhaustion requirement for 
those who have already filed military commission challenges. As such, 
nothing in the legislation alters or impacts the jurisdiction or merits 
of the Hamdan case.
  Nothing in the legislation affirmatively authorizes, or even 
recognizes, the legal status of the military commissions at issue in 
Hamdan. That is the precise question that the Supreme Court will decide 
in the next months. Right now, the military commissions are legal under 
a decision of the DC Circuit, and this amendment reflects, but in no 
way endorses that present status. It would be a grave mistake for our 
allies around the world to think that we are endorsing this system at 
Guantanamo Bay--a system that has produced not a single conviction in 
the 4 years since the horrible attacks of September 11, 2001.
  This provision attempts to address problems that have occurred in the 
determinations of the status of people detained by the military at 
Guantanamo Bay and elsewhere. It recognizes that the Combatant Status 
Review Tribunal, CSRT, procedures applied in the past were inadequate 
and must be changed going forward. As the former chief judge of the 
U.S. Foreign Intelligence Surveillance Court found, in In Re Guantanamo 
Detainee Cases, the past CSRT procedures ``deprive[d] the detainees of 
sufficient notice of the factual bases for their detention and den[ied] 
them a fair opportunity to challenge their incarceration,'' and allowed 
``reliance on statements possibly obtained through torture or other 
coercion.'' Her review ``call[ed] into serious question the nature and 
thoroughness'' of the past CSRT process. The former CSRT procedures 
were not issued by the Secretary of Defense, were not reported to or 
approved by Congress, did not provide for final determinations by a 
civilian official answerable to Congress, did not provide for the 
consideration of new evidence, and did not address the use of 
statements possibly obtained through coercion.
  To address these problems, this provision requires the Secretary of 
Defense to issue new CSRT procedures and report those procedures to the 
appropriate committees of Congress; it requires that going forward the 
determinations be made by a Designated Civilian Official who is 
answerable to Congress; it provides for the periodic review of new 
evidence; it provides for future CSRTs to assess whether statements 
were derived from coercion and their probative value; and it provides 
for review in the D.C. Circuit Court of Appeals for these future CSRT 
determinations.
  Mr. FEINGOLD. Mr. President, the annual Defense Appropriations bill 
is rightly considered a priority most years, and Congress typically 
completes its work on this important bill early in the year. This year, 
however, progress on this bill was suspended largely because of 
Republican political maneuvering. I supported the Senate version of 
this bill, but a very different bill emerged from conference. That 
conference report was hijacked by the Republican leadership in a 
cynical effort to try to pass controversial provisions that have 
nothing to do with our defense. By jeopardizing funding for our brave 
men and women in uniform, and attempting to circumvent the rules that 
govern the Senate, those leaders placed their own narrow interests 
above those of the country and this institution.
  The most blatant abuse was the insertion into the conference report 
of a provision that appeared in neither bill to open the Arctic 
National Wildlife Refuge to drilling. I have already addressed the 
Senate twice this week on why that provision had no place in this 
conference report and I am pleased that my colleagues have joined me in 
sending a clear message that we will not tolerate attempts to hold 
vital funding hostage to unrelated special interest provisions.
  While we were successful in removing the Arctic provisions, I remain 
very troubled about provisions included in the emergency funds slated 
for pandemic influenza preparedness. While I have long advocated for 
pandemic influenza preparedness funding, and while I am pleased that 
$3.8 billion is provided for this purpose, I am deeply concerned about 
the inclusion of far-reaching liability protections for health care 
providers and vaccine manufacturers in this conference report. It

[[Page 30741]]

is an abuse of the appropriations process to incorporate such sweeping 
legal protections into a measure providing funds for the military.
  The provisions inserted in the conference report would exempt vaccine 
producers from civil liability for injuries caused by vaccines, unless 
the health care provider or vaccine manufacturer acted with willful 
misconduct. This language is extremely far-reaching. Plaintiffs would 
need to prove that the health care providers or vaccine manufacturers 
acted intentionally, acted without justification, and disregarded known 
or obvious risks that the harm would outweigh the benefit. This will be 
extremely difficult for plaintiffs to establish. Furthermore, 
disregarding the advice of public health experts, the language fails to 
provide meaningful injury compensation provisions to help those injured 
by vaccines. These protections for health care providers and vaccine 
manufacturers are unparalleled, and it is painfully clear that our 
leadership in Congress and in the White House is not listening to the 
concerns of first responders, families, or public and global health 
experts. They are listening only to the businesses and industries that 
would use the threat of pandemic influenza as an opportunity to help 
their own profit margins.
  Mr. President, I also object to the inclusion of certain provisions 
of the Hurricane Education Recovery Act in the Department of Defense 
Appropriations bill. More than 370,000 elementary and secondary 
students have been displaced as a result of Hurricane Katrina. Schools 
across the country, including some in Wisconsin, have opened their 
doors to these students. I strongly support efforts to assist the 
schools that are welcoming these students as they continue to work to 
make this transition and school year go as smoothly as possible.
  But I am troubled by key provisions of the legislation. For example, 
Section 107 of the Act would allocate Federal funding to go directly 
through State agencies to local school districts where displaced 
students have enrolled in public or private schools. The local school 
districts, which are government agencies, would then be responsible for 
issuing direct payments to public and private schools educating 
displaced students. Earlier this year, the Senate soundly defeated a 
proposal to provide vouchers directly to parents with little in the way 
of civil rights protections. The Senate subsequently passed a measure 
that, like the measure now before this body, would have passed taxpayer 
money to private schools through local public school districts. I had 
grave concerns about that provision, and I am even more troubled that 
the provisions before us do not include even the modest attempts at 
civil rights and other protections that were included in the Senate 
passed language. While I believe the supporters of this act are well-
intentioned, I am concerned that Senate passage of this measure would 
create a troubling precedent with regard to taxpayer-funded school 
vouchers.
  I oppose school vouchers because such programs funnel taxpayer money 
away from the public schools that this funding is intended to support 
and instead direct this funding to private schools that do not have to 
adhere to the same Federal, State, and local accountability and civil 
rights laws and regulations that apply to public schools. I strongly 
support providing assistance to the students and schools that have been 
affected by Hurricane Katrina, but we should do so within existing 
Federal laws that allow local public school districts to provide 
specific educational services--rather than direct funding--to private 
schools.
  Mr. President, I also object to the across-the-board cut to 
discretionary programs, including education programs, that was inserted 
in this conference report. The Labor-HHS-Education appropriations bill 
already cuts or allows for only nominal increases in funding for 
education. This across-the-board cut would magnify the damage done by 
that appropriations bill, which awaits final action. If both the 
across-the-board cut and the Labor-HHS-Ed appropriations bill are 
adopted, total Federal education funding would be cut for the first 
time in a decade, Funding would be cut for No Child Left Behind, at a 
time that we are still requiring States to comply with testing all 
students in reading and math in grades 3-8 for the first time this 
school year. Title I funding would be cut for the first time in 13 
years, hurting children that are currently eligible to receive Title I 
services. The Federal share of special education costs would be cut for 
the first time in a decade, forcing States and local school districts 
to pick up the slack. And I regret that the maximum Pell Grant award 
would be frozen for the fourth year in a row at $4,050.
  Mr. President, reducing funding for our nation's schools is not the 
message we should be sending to our youth. We need to find ways to 
provide an excellent K-12 education for all of America's children and 
find ways to make college more affordable for young people now and in 
the future. Cutting funding for these various programs is not the 
answer and this across-the-board cut is particularly regrettable. I 
strongly support reducing our budget deficit and have long promoted 
measures, such as PAYGO, that would help us toward that goal. But 
cutting funding for those most in need is not the solution.
  I am pleased that the conference report sends such a strong message 
to the administration about the treatment of detainees by adopting the 
amendment of the senior Senator from Arizona. The lack of a clear 
policy regarding the treatment of detainees has been confusing and 
counterproductive. It has left our men and women in uniform in the 
lurch with no clear direction about what is and is not permissible. 
This failure on the part of the administration has sullied our 
reputation as a nation, and hurt our efforts to promote democracy and 
human rights in the Arab and Muslim worlds. I have been proud to 
support Senator McCain's amendment on interrogation policy because it 
should help to bring back some accountability to the process and 
restore our great Nation's reputation as the world's leading advocate 
for human rights.
  I am disappointed with the mixed messages that the Senate continues 
to send to the administration and the country on issues related to the 
detainees held at Guantanamo Bay. In addition to the important McCain 
amendment on torture, the conference report also includes the Graham 
amendment, which remains deeply troubling because of the restrictions 
it places on judicial review of detainees held at Guantanamo. However, 
it is important to note that the provision is limited in critical ways. 
The provision on judicial review of military commissions covers only 
``final decisions'' of military commissions, and only governs 
challenges brought under that provision. In addition, the language in 
Section 1405(e)(2) that prohibits ``any other action against the United 
States'' applies only to suits brought relating to an ``aspect of 
detention by the Department of Defense.'' Therefore, it is my 
understanding that this provision would not affect the ongoing 
litigation in Hamdan v. Rumsfeld before the Supreme Court because that 
case involves a challenge to trial by military commission, not to an 
aspect of a detention, and of course was not brought under this 
provision. Furthermore, it is important to make clear that this 
provision should not be read to endorse the current system of trial by 
military commission for those at Guantanamo Bay. This provision 
reflects, but certainly does not endorse, the existing status of those 
military commissions, which is that they are currently legal under a 
decision of the D.C. Circuit. However, the Supreme Court has not yet 
addressed the legality of such military commissions, and this amendment 
should not be read as any indication that Congress is weighing in on 
that issue. While I would have strongly preferred that this amendment 
not be included in the conference report, I think it is important to 
note these limitations on its practical effect.
  In closing, Mr. President, I am pleased that I was able to vote for a 
bill to provide our brave men and women in uniform with the funding 
they need. But I am disappointed with

[[Page 30742]]

the long and winding road that it took to get to this point. I hope 
that Republican leaders are on notice that the Senate will not turn a 
blind eye when they break the rules and put their own narrow interests 
above those of the country and the troops.
  The PRESIDING OFFICER. The question is on agreeing to the conference 
report. The yeas and nays have been ordered. The clerk will call the 
roll.
  The legislative clerk called the roll.
  Mr. McCONNELL. The following Senators were necessarily absent: the 
Senator from Arizona (Mr. Chafee), the Senator from South Carolina (Mr. 
DeMint), the Senator from New Hampshire (Mr. Gregg), and the Senator 
from Arizona (Mr. McCain).
  Further, if present and voting, the Senator from South Carolina (Mr. 
DeMint), would have voted ``yea.''
  Mr. DURBIN. I announce that the Senator from New Jersey (Mr. 
Corzine), the Senator from Connecticut (Mr. Dodd), and the Senator from 
Iowa (Mr. Harkin) are necessarily absent.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 93, nays 0, as follows:

                      [Rollcall Vote No. 366 Leg.]

                               YEAS --93

     Akaka
     Alexander
     Allard
     Allen
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Brownback
     Bunning
     Burns
     Burr
     Byrd
     Cantwell
     Carper
     Chambliss
     Clinton
     Coburn
     Cochran
     Coleman
     Collins
     Conrad
     Cornyn
     Craig
     Crapo
     Dayton
     DeWine
     Dole
     Domenici
     Dorgan
     Durbin
     Ensign
     Enzi
     Feingold
     Feinstein
     Frist
     Graham
     Grassley
     Hagel
     Hatch
     Hutchison
     Inhofe
     Inouye
     Isakson
     Jeffords
     Johnson
     Kennedy
     Kerry
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     Martinez
     McConnell
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Obama
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Talent
     Thomas
     Thune
     Vitter
     Voinovich
     Warner
     Wyden

                             NOT VOTING --7

     Chafee
     Corzine
     DeMint
     Dodd
     Gregg
     Harkin
     McCain
  The conference report was agreed to.

                          ____________________




                      VITIATION OF VOTE--H.R. 1815

  The PRESIDING OFFICER. Under the previous order, the cloture vote on 
the conference report on H.R. 1815 is vitiated.
  Mr. WARNER. Mr. President, I am proud to bring the Conference Report 
on the National Defense Authorization Act for Fiscal Year 2006 before 
the Senate for final passage. This has been a long and difficult 
conference, but we have achieved our goal of providing the necessary 
authorities and resources for our men and women in uniform to defend 
the freedom of America.
  I thank my colleague and partner for these 27 years we have served 
together in the Senate, the senior Senator from Michigan, Carl Levin, 
for his consistently constructive help and leadership in bringing this 
important legislation to the floor.
  An undertaking of this magnitude is ultimately a bipartisan, 
bicameral effort. Consequently, there are many people deserving of 
recognition. I want to thank all of our subcommittee chairs and ranking 
members for their tireless efforts. I also want to thank Chairman 
Duncan Hunter and Congressman Ike Skelton for their leadership and 
teamwork in producing this conference agreement.
  This conference agreement could not have been reached without our 
dedicated, professional staff. I especially want to recognize the 
unwavering leadership of the Committee Staff Director, Charlie Abell 
and the Democratic Staff Director, Rick DeBobes, together with their 
staff, in bringing this process to a successful conclusion.
  As we consider this legislation, we remain a nation at war. This year 
marks the fourth year in the global war on terrorism. On September 11, 
2001, our Nation awakened to a terrorist attack. From this dark hour, 
our Nation quickly emerged stronger and more united because our Armed 
Forces, like the generations that preceded them, responded to the call 
of duty in Operation Enduring Freedom, Operation Iraqi Freedom, and 
elsewhere around the world in the cause of freedom.
  Hundreds of thousands of soldiers, sailors, airmen, marines, active 
and Reserve components, and countless civilians continue to serve 
valiantly around the world--from Iraq and Afghanistan to the Persian 
Gulf, Europe, Africa, and Korea--to secure peace and freedom. All 
Americans are proud of what our military has accomplished. Their 
sacrifices and service have removed obstacles to freedom and democracy 
in the regions of the Middle East and Asia.
  We remain mindful that the defense of our homeland begins on distant 
battlefields. To the extent that we can prevent or contain the threats 
on these battlefields or potential battlefields, the less likely that 
we will experience a threat here at home. The threats to our Nation and 
the ongoing war on terrorism demand increased investment in our 
national security.
  As we begin this debate, I remain mindful that no military victory is 
gained without significant sacrifice. I ask that we pause to remember 
those who died in the defense of our freedom, and the many others who 
were wounded. We honor their sacrifices and service. On behalf of a 
grateful Nation, we salute you. They and their families deserve our 
gratitude and unwavering support.
  This year, the House and Senate conferees confronted especially 
difficult challenges affecting our Nation's security. These issues 
included U.S. policy on Iraq, detainee policy, and the Navy 
shipbuilding budget. With respect to these issues, I believe that the 
conferees reached a balanced agreement.
  Overall, the conferees authorized funding of $441.5 billion in budget 
authority for defense programs in fiscal year 2006, an increase of 
$20.9 billion--or 3.1 percent in real terms--above the amount 
authorized by the Congress for fiscal year 2005.
  The conference report underscores some key defense priorities 
critical to our national security, including authorities and resources 
to win the global war on terrorism and support for the men and women of 
the Armed Forces who are fighting so bravely in the global war on 
terrorism. Specifically, the conferees added $586.4 million over the 
President's budget request for combating terrorism. The conferees also 
authorized $50.0 billion in emergency supplemental funding for fiscal 
year 2006 for activities in support of operations in Iraq, Afghanistan, 
and the global war on terrorism.
  The conferees further agreed to enhance congressional oversight of 
ongoing military operations in Iraq, Afghanistan, and the global war on 
terrorism, including uniform standards for interrogation operations, 
while removing the burden of litigation from vital intelligence 
activities. The conference report also includes a 3.1 percent pay raise 
for all military personnel.
  In addition, the conference report contains some provisions of which 
I am very proud that emphasizes our commitment to homeland defense, 
force protection, recruiting and retention of military personnel, 
quality of life programs, and modernization and transformation efforts.
  To enhance the ability of the Department of Defense to fulfill its 
homeland defense responsibilities, the conferees agreed to: authorize 
$115.2 million for homeland defense and counterterrorism, including 
$19.8 million for specially trained and equipped teams to support civil 
or military authorities in the event of a chemical, biological, 
radiological, nuclear or high-explosive attack or event; and enhance 
the Department's working relationship with the Department of Homeland 
Security for purposes of leveraging dual-use assets in conducting 
homeland defense and homeland security missions.

[[Page 30743]]

  To rapidly deploy and acquire the full range of force protection 
capabilities for deployed forces, the conferees agreed to authorize an 
additional $610.0 million for up-armored high mobility multipurpose 
wheeled vehicles and wheeled vehicle add-on ballistic protection to 
provide force protection for soldiers in Iraq and Afghanistan; 
designate an executive agent for a joint research and treatment effort 
to treat combat blast injuries resulting from IEDs, rocket propelled 
grenades, and other attacks; and facilitate the rapid deployment of new 
technology and tactics and the rapid deployment of equipment to counter 
the threat of improvised explosive devices.
  To improve recruiting goals and retention of military personnel, the 
conferees agreed to create new and better incentives to meet the 
challenge of recruiting for the All Volunteer Force; and ensure the 
retention of experienced personnel in the active-duty ranks, in the 
Reserve, and in the National Guard.
  To continue its commitment to quality health care for all 
beneficiaries, the conferees agreed to enhance access to health care 
coverage under TRICARE for every member of the Selected Reserve and 
their families, with Government subsidies based on new categories of 
eligibility.
  To continue necessary modernization and transformation efforts, the 
conferees agreed to authorize an increase of $159.5 million for Navy 
Shipbuilding to accelerate the CVN-78 aircraft carrier, the LHA (R) 
amphibious ship, and the second DD(X) destroyer of the class. Much more 
must be done, however, to achieve stability in the Navy's shipbuilding 
budget and to protect this fragile sector of our industrial base.
  I have a list of some of the highlights of this conference report 
that I ask unanimous consent to be printed in the Record following my 
remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. WARNER. Each year since 1961, the House and Senate have reached a 
conference agreement on, and the President has signed into law, a 
National Defense Authorization Act. I now call upon my colleagues in 
this chamber to fulfill our responsibility and pass the annual Defense 
authorization bill, as has been the tradition of the Senate for each of 
the past 45 years. This is the 27th year that I have had the privilege 
of working on this important legislation.
  I believe this conference report is a strong bipartisan bill that 
serves the interests of the men and women of our Armed Forces and of 
our Nation today. We must send a strong message of support to the men 
and women in uniform serving on the distant outposts throughout the 
world. I can think of no better way to honor their sacrifices and 
service, and that of their families than with the passage of the 
National Defense Authorization bill. This conference report provides 
the authorities and resources to win the global war on terrorism, while 
safeguarding Americans at home. It sustains the current readiness of 
the Armed Forces and provides the resources to prepare them for the 
future.
  I yield the floor.

                               Exhibit 1

  Appendix A: Key Military Personnel Provisions--Conference Agreement 
                         NDAA 2006 (H.R. 1815)

       Active End Strength:
       Increases Army end strength by 10,000 to 512,400.
       Increases USMC end strength by 1,000 to 179,000.
       Pay Raise: Provides 3.1 percent pay raise. The raise is .5 
     percent above private sector raises and reduces the pay gap 
     to 4.6 percent from 13.5 percent in fiscal year 1999 
     culminating seven years of enhanced pay raises.
       Hardship Duty Pay: Increases maximum monthly rate from $300 
     to $750.
       Assignment Incentive Pay: Increases the maximum monthly 
     rate from $1,500 to $3,000.
       Servicemembers' Group Life Insurance (SGLI): Requires the 
     Secretary of Defense to pay the premium for a minimum 
     coverage of $150,000 while members who participate in the SGU 
     program are assigned to the other OIF/OEF theater. Also 
     authorizes the Secretary to pay for a larger amount of 
     coverage.
       Active Duty Recruiting and Retention Initiatives:
       Enlistment bonus--Increases maximum from $20,000 to 
     $40,000.
       Reenlistment bonus--Increases maximum active duty from 
     $60,000 to $90,000.
       New recruiting incentive programs--Authorizes Army to 
     develop and implement programs following 45 days notice to 
     Congress.
       Recruit referral bonus--Authorizes Army (active duty, 
     reserve, and National Guard) to pay $1,000 to service members 
     who refer recruit candidates for enlistment and those 
     candidates complete technical training.
       Enlistment age--Increases the maximum from 35 years of age 
     to 42.
       Service transfer bonus--Authorizes a new maximum bonus of 
     $2,500 for service members who transfer to armed services 
     requiring skills and experience.
       Thrift Savings Plan (TSP)--Authorizes service secretaries 
     to enter agreement with new recruits to pay matching 
     contributions to the TSP and directs the Army to conduct a 
     pilot program on the attractiveness of matching TSP 
     contributions to new recruits.
       Weight allowances for shipping household goods--Increases 
     allowances for noncommissioned officers in grades E-7 and 
     above.
       Reserve Compensation and Benefits:
       Income Replacement--Authorizes the Secretary of Defense to 
     pay involuntarily mobilized reserve members on a monthly 
     basis the amount necessary to replace the income differential 
     between their military compensation and the average monthly 
     income received by the member during the twelve months 
     preceding mobilization. Reserve members would be eligible for 
     the income replacement payment for any full month following 
     the date that the member completes 18 continuous months of 
     service on active duty or 24 months on active duty during the 
     previous 60 months, or for any month during a mobilization 
     that occurs within 6 months of the member's last active duty 
     tour. Payments would be limited to a maximum of $3,000 each 
     month.
       Basic allowance for housing (BAH)--Eliminates an inequity 
     in BAH payments for reservists mobilized for less than 140 
     days by authorizing reservists to receive the same BAH as 
     active duty members when mobilized for periods greater than 
     30 days.
       Critical skill retention bonus--Authorizes reservists to be 
     paid under the active duty program up to a maximum of 
     $100,000 over the course of a career.
       Enlistment and affiliation bonus--Increases the maximum 
     amount from $15,000 to $20,000.
       Reenlistment bonus--Extends the period during which bonuses 
     may be paid from 16 years of service to 20 years of service 
     with enlistments continuing till 24 years of service.
       Survivor Benefits:
       Death Gratuity--Extends an increase to $100,000 to all 
     military deaths--(not just combat-related deaths as 
     contemplated in the Tsunami Emergency Supplemental, 2005). 
     Makes payment of the $100,000 amount retroactive to include 
     all military deaths that occurred on or after October 7, 
     2001. Makes additional retroactive death gratuity payments of 
     $150,000 to survivors of all military deaths, not just 
     combat-related deaths, to compensate for the increase in 
     Servicemembers' Group Life Insurance coverage from $250,000 
     to $400,000 that became effective for all military members on 
     May 11, 2005.
       Survivors in Family Housing--Extends the period that 
     survivors of members who die on active duty may remain in 
     family housing or received basic allowance for housing from 
     180 days to 365 days.
       Survivors home of selection move--Extends the period of 
     time allowed for surviving family members of members who die 
     on active duty to select a permanent residence from one year 
     to three years.
       Wounded Member Benefits:
       Special pay during medical rehabilitation--Authorizes the 
     secretary concerned to pay $430 per month to a service member 
     with an injury or illness sustained in a combat operation or 
     zone designated by the Secretary of Defense. The pay would 
     terminate at the end of the first month which the member is 
     paid a benefit under the traumatic injury rider of the 
     Servicemembers' Group Life Insurance (SGLI) or is no longer 
     hospitalized in a military treatment facility or in a 
     facility under the auspices of the military health care 
     system.
       Payment for meals while receiving medical care--Extends the 
     authority for members to not pay for meals received at 
     military treatment facilities while undergoing medical care, 
     including outpatient care, for an injury, illness, or disease 
     incurred while serving in support of OIF/OEF, or other combat 
     operation designated by the Secretary of Defense.
       Family travel to visit wounded/injured members--Expands the 
     authority for payment of travel and transportation allowances 
     for family members to visit service members hospitalized in 
     the United States to include members who are not considered 
     seriously ill or injured, but who have incurred injuries in a 
     combat operation or combat zone designated by the Secretary 
     of Defense.
       Retirees:
       Concurrent receipt--Reduces from 10 years to just over 4 
     years the phased implementation of full concurrent receipt of 
     veterans

[[Page 30744]]

     disability compensation and military retired pay for military 
     retirees receiving veterans disability compensation at the 
     rate payable for 100 percent disability by reason of a 
     determination of individual unemployability. Would authorize 
     such retirees to receive full concurrent receipt of veterans 
     disability compensation and military retired pay on October 
     1, 2009.
       Reserve Health Care:
       Provides eligibility for TRICARE to all reservists and 
     their families who continue service in the Selected Reserve. 
     Estimated cost: 5-yr: $880M; 10-yr: $2.3B (Compared to 
     Taylor-Graham proposal: 5-yr: $3.8B; 10-yr: $12B). Three 
     eligibility categories:
       Involuntarily mobilized reservists (as in current law): 1 
     year TRICARE eligibility for every 90 days of mobilized 
     service. DOD cost share: 72 percent.
       Persons without employer provided health care, unemployed, 
     self-employed. DOD cost share: 50 percent.
       Any person not meeting the above criteria. DOD cost share: 
     15 percent.
       Uniform Code of Military Justice:
       Strengthens the Uniform Code of Military Justice by 
     revising the offenses relating to rape, sexual assault, and 
     other sexual misconduct and setting interim maximum 
     punishments for the respective offenses.
       Also establishes and defines stalking as a separate offense 
     under UCMJ.

  Mr. WARNER. I thank our respective leaders, the majority leader and 
the distinguished Senator from Nevada, and my good friend and partner, 
our dear Senator Levin, and all members of the Armed Services 
Committee, and particularly our staff that made this bill possible. It 
has had a long journey. But we are here.

                          ____________________




  NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2006--CONFERENCE 
                                 REPORT

  The PRESIDING OFFICER. The clerk will report the conference report.
  The assistant legislative clerk read as follows.

       A conference report to accompany H.R. 1815 to authorize 
     appropriations for the fiscal year 2006 for military 
     activities of the Department of Defense, for military 
     construction, and for defense activities of the Department of 
     Energy, to prescribe military personnel strengths for such 
     fiscal year, and for other purposes, having met, have agreed 
     that the House recede from its disagreement to the amendment 
     of the Senate, and agree to the same with an amendment, 
     signed by a majority of the conferees on the part of both 
     Houses.

  The PRESIDING OFFICER. The Senate will proceed to the consideration 
of the conference report.
  (The conference report is printed in the House proceedings of the 
Record of December 18, 2005.)
  Mr. WARNER. Mr. President, will the Chair advise the Senate with 
regard to any time allocation for remarks in connection with the 
pending matter?
  The PRESIDING OFFICER. There was not a time allocation.
  Mr. LEVIN. Mr. President, I congratulate Senator Warner. Without his 
leadership we would not be here. We had a record number of amendments 
which we had to deal with in a record short period of time. He showed 
incredible tenacity and patience and wisdom, as he always does in 
bipartisanship. I commend him and particularly our staffs.
  Mr. President, I thank our leadership as well for their staying with 
us on this one. There was a time earlier this year when we didn't think 
we were going to get an authorization bill, and except for the efforts 
of our leaders we would not be here either. I want to particularly 
thank them.
  Mr. President, I am pleased to join my good friend and colleague, 
Senator Warner, the Chairman of the Senate Armed Services Committee, in 
urging the adoption of the conference report on H.R. 1815, the National 
Defense Authorization Act for Fiscal Year 2006. Getting this conference 
report to the Senate required the labors of Hercules, the patience of 
Job and the magic of Merlin. We would not have been able to complete 
conference on this important bill--made so very urgent by the fact that 
we are nation at war--without the tireless efforts of Senator Warner.
  First, a word on the extraordinary events of the last few days.
  On the Senate side, every one of our conferees--including all 11 
Democrats on the Armed Services Committee--signed the conference 
report. Each of these Senators signed on the basis of the text of the 
conference report that was agreed to between the Senate and House 
conferees.
  As is our usual practice, we delivered our Senate signature sheets to 
the House on Friday afternoon, with the understanding that the 
conference report would be filed first in the House and acted upon 
first by that body. The Senate stood ready to take up the conference 
report as soon as it came over from the House and to pass it after 1 
hour of debate.
  Unfortunately, the conference report was not filed on either Friday 
or Saturday, because the House Republican leadership was considering 
adding an extraneous bill to the conference report. This bill was not a 
part of our conference, is not in the jurisdiction of our committee, 
and was never considered by any of the conferees. The bill was not a 
part of the conference report that was agreed to by our conferees on 
either side of the aisle.
  Senator Warner and I strongly objected to a procedure so totally 
destructive of bedrock legislative process. When we learned that such 
an attempt might be made, we joined together and retrieved the Senate 
signature sheets from the House. Only after we were assured on Sunday 
afternoon that the conference report would be voted on in the House of 
Representatives as agreed, with no effort to insert additional 
material, did we return the Senate signature sheets to the House.
  I will ask unanimous consent that a copy of the cover letter that we 
sent to the House be inserted in the Record. I would also make 
reference to Senator Warner's remarks in the Record on this subject 
last Friday, and my remarks last Saturday.
  Even before the events of the last weekend, the Armed Services 
Committee faced obstacles and hurdles in completing this bill that we 
have never faced before. For example:
  It took us over 2 months from the time we reported the bill to the 
Senate on May 15 to the time debate initially began on July 20.
  Then, after only 5 days of debate, our bill was pulled down by the 
majority leader on July 26 when the Senate failed to invoke cloture on 
the bill. We had to wait over 3 months and negotiate a very complicated 
unanimous consent agreement which limited the number of amendments 
before we were able to resume debate on the bill on November 4.
  We debated the bill for an additional 7 days and finally passed it by 
a unanimous 98 to 0 vote on November 15, but not before disposing of a 
total of 261 amendments--more amendments ever considered to any Defense 
authorization bill since Congress passed the first annual Defense 
authorization bill back in 1961.
  As far as completing conference this session, there were a lot of 
people who doubted it could be done because of the sheer size and 
complexity of this legislation, leaving aside some of its very 
contentious issues. Over the past 10 years, we have averaged a total of 
70 days in conference with the House on this massive bill. Last year 
alone, we were in conference with the House for a total of 85 days. We 
completed this conference in under 1 month--29 days, to be exact. We 
compromised on a lot of issues, but we didn't compromise the quality of 
this legislation just for the sake of getting it done quickly. In 
short, we did it right and we are very proud of that. This year, we 
have produced a true holiday gift for our troops and our Nation.
  This conference report contains provisions that provide well-deserved 
support for our military personnel and their families. In particular, 
the conference report will:
  Increase basic pay by 3.1 percent, a half percent higher than 
inflation;
  Increase the death gratuity for all active duty deaths from $12,400 
to $100,000, retroactive to the beginning of Operation Enduring 
Freedom;
  Authorize a new special pay of $430 a month during hospitalization 
for service members while rehabilitating from an injury or disease 
incurred in a combat zone;
  Authorize a new leave of up to 21 days when adopting a child;
  Provide $30 million in impact aid to local school districts, 
including a new

[[Page 30745]]

$10 million authorization for schools that have a large increase or 
decrease in students due to rebasing, activation of new military units, 
or base realignment and closure;
  Increase funding for military child-care services by $50 million, and 
for family assistance services by $10 million; and
  Create a mental health task force to help military members and 
families deal with an increasing number of mental health issues.
  The bill also contains several provisions especially designed to 
benefit our National Guard and Reserve personnel and their families:
  Every member of the Selected Reserve will have access to government-
subsidized health care under the military TRICARE Standard medical 
program for themselves and their families.
  Tier 1 is the TRICARE Reserve Select program that we authorized last 
year. National Guard and Reserve personnel who are mobilized can use 
this benefit for a year for each period of mobilized service, as long 
as they remain in the Selected Reserve. The Government pays 72 percent 
of their health care premium--they pay only 28 percent.
  Tier II includes members of the Selected Reserve who do not have 
access to health insurance through their civilian employment. The 
Government pays 50 percent of their premium; and
  Tier III includes members of the Selected Reserve who have access to 
health insurance through their employer but choose TRICARE. The 
Government pays 15 percent of their premium, they pay the remaining 85 
percent.
  National Guard and Reserve members who suffer an income loss when 
mobilized will be paid an income replacement payment after 18 months of 
active duty, upon completion of 24 months of active duty in a 5-year 
period, or when mobilized within 180 days of an earlier mobilization.
  Reservists who are ordered to active duty for more than 30 days will 
receive a full housing allowance rather than the current 140 days.
  In the bill we authorize the following end strengths for our active-
duty forces: Army--512,400, an increase of 10,000 soldiers from last 
year's authorized end strength; Navy--352,700, 13,200 less than last 
year, in accordance with the Department's request; Marine Corps--
179,000, an increase of 1,000 Marines; and Air Force--357,400, 2,300 
less than last year's authorization, again in accordance with the 
Department's request.
  We are very concerned about the Army's ability to recruit enough 
enlistees to make the end strength that we authorized. This bill gives 
the Army new tools to help it meet its recruiting goals:
  A new bonus of up to $1000 for soldiers who refer a successful 
recruit to the Army;
  New authority to experiment with innovative recruiting incentives;
  Authorization for matching contributions to the Thrift Savings Plan 
during a service member's initial enlistment; and
  An increased maximum enlistment bonus of up to $40,000.
  This bill does not include everything that I fought for. For example, 
I am very disappointed that we were not able to eliminate the 
requirement that survivor benefit plan annuity payments be reduced by 
the amount of dependency and idemnity compensation received from the 
Veterans' Administration. I am also disappointed that we were not able 
to immediately repeal the 10-year phase-in of the concurrent receipt of 
military retired pay and VA disability compensation for military 
retirees with less than a 100 percent disability who are considered 
``totally disabled'' because their disability renders them 
unemployable.
  Before I comment further on a number of other issues in the 
conference report relating to support for our men and women in uniform, 
weapons systems and nonproliferation programs, I want to comment on 
provisions relating to the treatment of detainees and the sense of the 
Congress on United States policy on Iraq.
  I am pleased that the conference report contains the full text of the 
McCain amendment on torture, without change. This language firmly 
establishes in law that the United States will not subject any 
individual in our custody, regardless of nationality or physical 
location, to cruel, inhuman, or degrading treatment or punishment. The 
amendment provides a single standard--``cruel, inhuman, or degrading 
treatment or punishment''--without regard to what agency holds a 
detainee, what the nationality of the detainee is, or where the 
detainee is held. With the enactment of this amendment, the United 
States will put itself on record as rejecting any effort to claim that 
these words have one meaning as they apply to the Department of Defense 
and another meaning as they apply to the CIA; one meaning as they apply 
to Americans and another meaning as they apply to our enemies; or one 
meaning as they apply in the United States and another meaning as they 
apply elsewhere in the world.
  The McCain amendment is not only an important statement of law, it is 
a reaffirmation of one of the core values of our system of government 
and a restatement of who we are as Americans. I would not have signed 
or supported any conference report that did not include these 
provisions.
  Despite repeated efforts by administration officials and their allies 
in the House of Representatives to amend this language, the conference 
report does not allow the President to authorize actions that violate 
the standards in the McCain amendment, or to immunize individuals who 
engage in such actions from either criminal prosecution or civil suit. 
Despite repeated efforts by administration officials and their allies 
in the House, the conference report does not authorize the U.S. 
government to indemnify individuals who are found to be liable for 
violating the standards in the McCain amendment, and it does not make 
reckless or wanton behavior a prerequisite to such liability.
  The conference report would add a new section establishing a defense 
in any legal action against a person who engages in specific 
operational detention and interrogation practices that were officially 
authorized at the time that they were conducted, if the defendant did 
not know that the practices were unlawful and a person of ordinary 
sense and understanding would not have known that they were unlawful. 
This is not a new defense: it is virtually identical to the defense 
already available under the Manual for Courts-Martial for military 
members who act in reliance upon lawful orders.
  It has never been my understanding that the McCain amendment would, 
by itself, create a private right of action. I do not believe that the 
amendment was intended either to create such a private right of action, 
or to eliminate or undercut any private right of action--such as a 
claim under the alien tort satute--that is otherwise available to an 
alien detainee. Rather, the McCain amendment would establish a legal 
standard applicable to any criminal prosecution or a private right of 
action that is otherwise available under law. That would not be changed 
in any way by the affirmative defense added in the new section. Nor 
would the McCain amendment be undermined in any way by any of the other 
detainee provisions in the conference report.
  I opposed the initial amendment addressing the legal rights of 
Department of Defense detainees at Guantanamo Bay, Cuba when Senator 
Graham offered it on the Senate floor, because it would have stripped 
federal courts of jurisdiction to hear habeas corpus challenges--
including pending cases--brought by Guantanamo detainees. 
Unfortunately, the Senate approved that amendment by a 49-to-42 vote.
  Following the Senate vote, I worked with Senator Graham to build back 
protection into his amendment. We did so in three ways:
  First, the jurisdiction-stripping provision in the initial Graham 
amendment would have applied retroactively to all pending cases in 
Federal court--stripping the Federal courts of jurisdiction to consider 
pending cases, including the Hamdan case now pending in the Supreme 
Court. The revised amendment adopted by the Senate--the so-called 
Graham-Levin-Kyl amendment--does not apply to or alter any habeas

[[Page 30746]]

case pending in the courts at the time of enactment.
  Under the Supreme Court's ruling in Lindh v. Murphy, 521 U.S. 320, 
the fact that Congress has chosen not to apply the habeas-stripping 
provision to pending cases means that the courts retain jurisdiction to 
consider these appeals. Again, the Senate voted affirmatively to remove 
language from the original Graham amendment that would have applied 
this provision to pending cases. The conference report retains the same 
effective date as the Senate bill, thereby adopting the Senate position 
that this provision will not strip the courts of jurisdiction in 
pending cases.
  Let me be specific.
  The original Graham amendment approved by the Senate contained 
language stating that the habeas-stripping provision ``shall apply to 
any application or other action that is pending on or after the date of 
the enactment of this Act.'' We objected to this language and it was 
not included in the Senate passed bill.
  An early draft of the Graham-Levin-Kyl amendment contained language 
stating that the habeas-stripping provision ``shall apply to any 
application or other action that is pending on or after the date of the 
enactment of this Act, except that the Supreme Court of the United 
States shall have jurisdiction to determine the lawfulness of the 
removal, pursuant to such amendment, of its jurisdiction to hear any 
case in which certiorari has been granted as of such date.'' We 
objected to this language and it was not included in the Senate-passed 
bill.
  A House proposal during the conference contained language stating 
that the habeas-stripping provision ``shall apply to any application or 
other action that is pending on or after the date of enactment of this 
Act.'' We objected to this language and it was not included in the 
conference report.
  Rather, the conference report states that the provision ``shall take 
effect on the date of the enactment of this Act.'' These words have 
their ordinary meaning--that the provision is prospective in its 
application, and does not apply to pending cases. By taking this 
position, we preserve comity between the judicial and legislative 
branches and avoid repeating the unfortunate precedent in Ex parte 
McCardle, in which Congress intervened to strip the Supreme Court of 
jurisdiction over a case which was pending before that Court.
  Second, the initial Graham amendment would have provided for direct 
judicial review only of status determinations by Combat Status Review 
Tribunals, CSRTs. By contrast, the revised Graham-Levin-Kyl amendment 
adopted by the Senate provided for direct judicial review of both 
status determinations by CSRTs and convictions by military commissions. 
The amendment does not affirmatively authorize either CSRTs or military 
commissions--instead, it establishes a judicial procedure for 
determining the constitutionality of such processes.
  Again, this improvement is preserved in the conference report, which 
retains the Senate language authorizing direct review of both status 
determinations by CSRTs and convictions by military commissions.
  Third, the initial Graham amendment would have provided only for 
review of whether a tribunal complied with the Department's own 
standards and procedures. By contrast, the revised amendment adopted by 
the Senate would authorize courts to determine whether the standards 
and procedures used by CSRTs and military commissions are consistent 
with the Constitution and laws of the United States.
  This language has been revised in conference only to state what the 
intent of the amendment already was--that it was not intended to grant 
to an alien detainee any rights under the Constitution and laws of the 
United States that the detainee does not already have. Otherwise, the 
improved language remains intact in the conference report: The courts 
would be expressly authorized to determine whether the standards and 
procedures used in a status determination or the trial of an alien 
detainee at the Guantanamo are consistent with the Constitution and 
laws of the United States, as they apply to that detainee.
  We expect that final decisions in both the CSRT process and under the 
military order for trials will be reached in an expeditious manner to 
ensure judicial review within a reasonable period of time. The 
statement of managers makes this point expressly with regard to CSRT 
determinations, because the amendment requires that CSRT procedures be 
submitted to Congress. The statement of managers does not make this 
point with regard to military commissions only because the procedures 
for military commissions are not in any way addressed in the conference 
report.
  The Senate bill also contained a provision that would require the 
Secretary of Defense to submit to Congress a report on the procedures 
used by combat status review tribunals and administrative review boards 
for determining the status of the detainees held at Guantanamo Bay and 
the need to continue to hold such detainees. This provision has been 
expanded in the conference report to require that the report also 
address procedures in operation in Afghanistan and Iraq for a 
determination of the status of aliens detained in the custody or under 
the physical control of the Department of Defense.
  Nothing in the conference report is intended to in any way authorize, 
endorse or approve either these procedures or Military Commission Order 
No. 1, which establishes Department of Defense procedures for the trial 
of detainees. Nor does anything in the conference report authorize, 
endorse or approve the administration's position on the President's 
authority to treat any alien or category of aliens as ``enemy 
combatants'' or ``unlawful combatants''. All that it does is to require 
that certain DOD procedures be submitted to the Congress and 
establishes an orderly process for the review of those procedures in 
the courts to determine whether they are consistent with the 
Constitution and laws of the United States. The conference report does 
not attempt to prejudge the outcome of that review.
  Throughout the conference, we were pressed by administration 
officials and their allies in the House to make changes to the Senate 
language. We were asked to strip the courts of jurisdiction over 
pending cases; to eliminate any review of the constitutionality of 
procedures established by the Department of Defense; to expand the 
habeas limitations to detainees held anywhere in the world; to expand 
these provisions to strip legal rights from detainees held by the CIA 
and other agencies; to bar detainees from ever bringing any legal 
action challenging any aspect of their detention; to prohibit the 
courts from providing legal relief for detainees who are found to be 
improperly held; and to grant immunity to individuals engaged in 
detention and interrogation operations. We successfully opposed all of 
these changes.
  The conference report does make two changes to the Senate language 
which are more complex.
  First, the Senate-passed provision would have established an 
exclusionary rule prohibiting CSRTs from considering evidence obtained 
through ``undue coercion''. I was troubled by the phrase ``undue 
coercion'', because of the implication that there might be such a thing 
as ``due''--or appropriate--coercion. I do not believe that coerced 
testimony is ever appropriate.
  We were able to modify the provision in the conference report to 
eliminate the word ``undue'', an improvement over the Senate language. 
At the same time, however, the provision was modified so that it only 
provides for an ``assessment'' of whether the testimony was obtained 
through cruel, inhuman or degrading treatment and, if so, requires the 
tribunal to decide if there is any probative value to the testimony. We 
do not authorize such testimony to be used: a reviewing court will make 
that determination.
  It is a centuries-old principle of Anglo-American law, enshrined in 
the fifth amendment to the Constitution, that no person shall be 
compelled to be a witness against himself. Regardless whether this rule 
of law is expressly incorporated into CSRT procedures, I

[[Page 30747]]

hope and believe that the courts will enforce the generally accepted 
rule of law and ensure that evidence obtained through coercion is 
excluded from any administrative or judicial proceedings.
  Second, while the Senate-passed provision would have eliminated 
federal court jurisdiction only for habeas corpus actions, the 
conference report would eliminate such jurisdiction for ``any other 
action against the United States or its agents'' relating to detention 
at Guantanamo Bay, Cuba. This new language is limited to detainees who 
either: (1) remain in military custody at Guantanamo; or (2) although 
they have been released from Guantanamo, have been determined by the 
United States Court of Appeals (subject to Supreme Court review) to 
have been properly detained as enemy combatants. This language places a 
limitation on legal recourse available to detainees. While we do not 
know whether any legal remedies other than habeas corpus actions would 
have been available to detainees, I would have preferred not to have 
this limitation in the bill.
  In sum, administration officials and their allies in the House have 
sought at every turn to deny legal rights or recourse to detainees at 
Guantanamo and elsewhere. I do not believe that we should have gone 
down the road of limiting legal remedies for detainees in the manner 
that we did. However, once the Senate voted over my objection to 
eliminate habeas corpus relief, my effort turned toward: (1) building 
back access to the courts on direct appeal of administrative 
determinations of status or criminal conduct; (2) avoiding stripping 
the courts of jurisdiction over pending cases; and (3) ensuring that 
the provisions on detainee rights would not be used to undermine the 
McCain amendment.
  I believe that we succeeded on all three issues. The conference 
report preserves a meaningful opportunity for detainees to challenge 
the legality of their detention or any criminal conviction in federal 
court. It ensures that the provisions eliminating habeas corpus 
jurisdiction will be prospective in their application and will not 
apply to pending cases. And of course we worked with Senator McCain to 
preserve his amendment intact and to shape the Graham-Levin language so 
as to avoid undermining the McCain amendment.
  The conferees endorsed with minimal change the provision on United 
States policy on Iraq which garnered overwhelming bipartisan support 
from over three-quarters of the Senate. This provision shows that both 
houses of Congress, and both political parties, have come together with 
a common message to our troops, to the administration, to the American 
people, and, most importantly, to the Iraqi people.
  Expressing the heartfelt gratitude of the American people to our 
troops and their families for their unwavering devotion to duty, 
service to the Nation, and selfless sacrifice, Congress in this 
conference report reiterates its support for them and for a successful 
conclusion to their mission.
  Congress, in the provision in the conference report, notes that 
calendar year 2006 should be a period of significant transition to full 
Iraqi sovereignty, with Iraqi security forces taking the lead for the 
security of a free and sovereign Iraq, thereby creating the conditions 
for the phased redeployment of United States forces from Iraq.
  Congress expresses its view that the administration should tell the 
leaders of all groups and political parties in Iraq that they need to 
make the compromises necessary to achieve the broad-based and 
sustainable political settlement that is essential for defeating the 
insurgency in Iraq, within the schedules they set for themselves.
  Congress directs the administration to provide Congress and the 
American people specific information on its strategy in Iraq, 
principally the diplomatic, political, economic, and military measures 
that are being undertaken; whether the Iraqis have made the compromises 
necessary to achieve the broad-based and sustainable political 
settlement that is essential for defeating the insurgency; and the 
conditions that must be met in order to provide for the transition of 
additional security responsibility to Iraqi security forces, along with 
a plan for meeting such conditions, and an assessment of the extent to 
which such conditions have been met.
  This provision, which has garnered broad bipartisan support, is a 
significant win for the American people, and a large step forward for 
policy for Iraq. The messages that it sends are important, and the 
information it demands is crucial, for establishing and advancing a 
strategy for completing the mission in Iraq successfully, for beginning 
the process of redeployment of our military forces, and for doing so in 
a manner that will hopefully enhance U.S. national security.
  The conference report also authorizes $50 billion in supplemental 
funding for fiscal year 2006 to support our troops on the ground in 
Iraq and Afghanistan. This is consistent with the budget resolution. 
Included in this $50 billion is funding to support increased Army and 
Marine Corps personnel, funding to buy additional armor for their 
vehicles and to repair or replace the equipment that our troops rely 
on. It also includes $1 billion for our No. 1 force protection 
priority, the Joint Improvised Explosive Device or IED Task Force.
  This bill authorizes military construction and family housing 
projects that will improve the quality of life of our men and women in 
uniform and their families. It also authorizes $1.5 billion to begin 
implementing the decisions of the 2005 base realignment and closure 
round. These funding authorizations are consistent with the military 
construction appropriations enacted in November and will allow those 
projects to proceed.
  The conferees agreed to the Army's request to relax the punitive 
restrictions on military construction at Fort Buchanan, Puerto Rico 
that were enacted 5 years ago in light of the protests over Vieques. 
The Army activities at Fort Buchanan are not now and never were related 
to the Navy's activities at Vieques, and I am pleased that the 
conferees agreed to address these unjust restrictions.
  With respect to nonproliferation programs, although I would have 
preferred the amendment that Senator Lugar added to the Senate-passed 
bill, which would have repealed all of the various conditions that the 
Cooperative Threat Reduction, CTR, program must meet before spending 
money in any given year, I am pleased that we have included permanent 
authority to waive on an annual basis the requirement to certify that 
the various conditions have been met by each country recipient of CTR 
funds.
  The CTR program and the nonproliferation programs at the Department 
of Energy are all funded at the budget request. Within the Department 
programs we were able to address some urgent requirements by providing 
additional funds to accelerate the shutdown of the last plutonium-
producing reactor in Russia and to accelerate the security of nuclear 
weapons storage at key Russian sites.
  The agreement includes $4.0 million in Air Force accounts that the 
Air Force and the Department of Defense have the option to use to study 
and improve the performance of conventional, nonnuclear, penetrator 
weapons. I hope and urge the Department to use at least the $4.0 
million to support conventional, nonnuclear weapons development.
  The conference report includes a series of provisions designed to 
improve the management of the Department of Defense. These include 
provisions that would:
  Help protect the Federal employee workforce from unfair competition 
by codifying an important set of historic precedents and commonsense 
principles for public-private competition;
  Improve the management of DOD's major defense acquisition programs by 
requiring the Department to establish more realistic and achievable 
cost and performance estimates and tighten oversight requirements for 
programs that are experiencing problematic cost growth;
  Improve the management of $70 billion a year of DOD contracts for 
services by requiring the Department to establish a new management 
structure for such contracts and requiring strict

[[Page 30748]]

review of interagency contracting mechanisms that have been abused in 
the past;
  Reduce the risk of abusive acquisition practices like those seen in 
the proposed tanker lease contract by requiring the Secretary of 
Defense or the Deputy Secretary of Defense to personally approve any 
proposal to purchase a major weapon system as a commercial item; and
  Prohibit the Department from wasting hundreds of millions of dollars 
on unneeded audits of financial management systems that must be 
replaced because they are incapable of producing timely, accurate and 
complete financial data for management purposes.
  I am particularly pleased that the conference report also includes a 
provision for disaster relief for small business concerns damaged by 
drought. In the same way that floods, hailstorms, tornadoes, and other 
natural phenomena can devastate small businesses, the harm caused by 
unusually low water levels on the Great Lakes can be irreparable to 
businesses that depend on the waterways. The Small Business Act already 
provides disaster assistance to businesses have been victim to a number 
of natural disasters, so I am grateful that we have been able to 
broaden eligibility for that assistance to include businesses that have 
been hurt by below-average water levels on the Great Lakes.
  With respect to the Navy's shipbuilding accounts, the conference 
agreement incorporates reasonable cost caps on Virginia-class attack 
submarines in the Future Years Defense Program, the fifth DD(X) land 
attack destroyer, to be bought in 2010, and the fifth and sixth 
littoral combat ships, to be bought in 2008 or 2009. The conferees did 
not include a cost cap on the LHA because too little is known yet about 
the final design. The conference agreement also reflects the fact that 
the House has agreed to the Senate provision preventing the Navy from 
conducting a winner-take-all competition for the next generation 
destroyer program called the DD(X). Finally, the conferees agreed to a 
provision requiring the Navy to maintain 12 aircraft carriers and 
provided funding to overhaul the USS John F. Kennedy that the Navy had 
planned to retire.
  The conferees dealt with the Navy's program to buy a new presidential 
helicopter, called the VXX, by adopting compromise language that would: 
(1) allow production of the pilot production helicopters to go forward; 
and (2) require that the Secretary of the Navy submit an acquisition 
strategy for the full rate production aircraft, Increment Two, by March 
15, 2006. This strategy would be required to include one phase of 
operational testing before initiation of full rate production for VXX. 
The agreement would fence 25 percent of the Fiscal Year 2006 R&D 
funding until the Secretary submits that strategy.
  The conferees also dealt with the Army's future combat systems by 
agreeing that the entire Army future combat systems program, including 
the manned ground vehicles project, should remain in system development 
and demonstration, rather than having large portions revert to the 
technical base. This is a recognition of the importance of the Army's 
only modernization program to both the future Army, and to the spinout 
of FCS technologies to the current force, as well as a recognition of 
the need for the future combat systems to be developed as an integrated 
system of systems as quickly as possible.
  The bill also demonstrates the conferees continued strong support for 
the Department's special operations, counterdrug and humanitarian 
operations. In particular the conferees enhanced DOD's ability to 
combat terrorism and the production and trafficking of illegal drugs, 
including: authorizing and funding five additional National Guard 
Chemical, Biological, Radiological, Nuclear and High Yield Explosive 
(CBRNE) Enhanced Response Force Package teams, in addition to 
sustaining the existing 12 teams--which provide support to civilian 
authorities in the aftermath of a WMD incident; directing the 
Department to report on the use of DOD aerial reconnaissance assets to 
support the Department of Homeland Security; authorizing use of 
counterdrug funding for 2 years for joint task forces combating 
terrorism and narcotics production and trafficking, and; designating 
the Chairman of the Joint Chiefs of Staff as the principal military 
advisor to the Homeland Security Council. The conferees also agreed to 
authorize increased funding for humanitarian operations, including $40 
million in a future supplemental for Pakistan, and expanding the 
medical assistance to include related education, training, and 
technical assistance.
  In science and technology, this year's conference report includes a 
number of provisions and funding measures that support the 
transformation of our military while improving our ability to rapidly 
move new technologies out of the laboratory and onto the battlefield. 
The conference report authorizes over $11.3 billion for science and 
technology research programs, an increase of $840 million over the 
President's budget request. It also makes permanent the SMART, Science, 
Math, and Research for Transformation, Scholarship for Service Program 
to help the DoD educate, train, and employ the highest quality 
technical workforce. In order to better utilize the innovative talents 
of our nation's small businesses, the bill establishes a pilot program 
to promote the transition of technologies from the Small Business 
Innovative Research program into DoD acquisition programs. Finally, the 
conference report increases funding for and establishes mechanisms to 
accelerate and better coordinate research in a number of priority areas 
including robotics, unmanned ground vehicles, IED detection and defeat, 
the diagnosis and treatment of blast injuries, semiconductor 
microelectronics, and the development and deployment of advanced fuel 
cell vehicles.
  I ask unanimous consent that the letter I referred to be printed in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                                      U.S. Senate,


                                  Committee on Armed Services,

                                Washington, DC, December 18, 2005.
     Hon. Duncan Hunter,
     Chairman, Armed Services Committee, and National Defense 
         Authorization Act for Fiscal Year 2006 Conference, House 
         of Representatives, Washington, DC.
       Dear Duncan: On Friday, December 16, we joined you and Ike 
     Skelton in conducting the final meeting of the conferees 
     along with other Members of the Senate and House.
       At the conclusion of the meeting, the ``base bill'' was 
     agreed upon and signatures of Republican and Democratic 
     Committee Members were requested and affixed to the 
     Conference Report with the expectation that the House, 
     following the customary procedure, would be the first chamber 
     to file. It was our further understanding that this would be 
     done Friday evening.
       We are returning to you the signatures of the Senate 
     conferees on the condition that there are no changes made in 
     the ``base bill'' and Conference Report and that the House 
     obtain a Rule which precludes any further amendment.
       You have shown strong leadership during this very brief and 
     unusual conference period and we have confidence that you can 
     achieve passage in the House of the ``base bill''. We believe 
     it is in the interest of the Nation and the men and women of 
     the Armed Forces that our Conference Report as agreed to on 
     December 16 becomes law.
           Sincerely,
     Carl Levin,
     Ranking Member.
     John Warner,
     Chairman.

  Mr. LEVIN. My particular thanks to my staff for their extraordinary 
work:
  Rick DeBobes, Peter Levine, Jon Clark, Chris Cowart, Dan Cox, Madelyn 
Creedon, Brie Eisen, Evelyn Farkas, Richard Fieldhouse, Creighton 
Greene, Bridget Higgins, Mike Kuiken, Gary Leeling, Mark McCord, Bill 
Monahan, Arun Seraphin.
  Also to Charlie Abell and others of Senator Warner's staff.


                       comments on final passage

  Mr. KYL. I would like to say a few words about the now-completed 
National Defense Authorization Act for fiscal year 2006, and in 
particular about section 1405 of that act, which expels lawsuits 
brought by enemy combatants from United States courts. I see that my 
colleague, the senior Senator from South Carolina, is also on the 
floor.

[[Page 30749]]

  I would like to begin by commenting on the need for this legislation. 
This provision originally was added to the bill in an amendment that 
was offered by Senator Graham and of which I was a cosponsor, as well 
as Senator Chambliss.
  Keeping war-on-terror detainees out of the court system is a 
prerequisite for conducting effective and productive interrogation, and 
interrogation has proved to be an important source of critical 
intelligence that has saved American lives.
  In Rasul v. Bush, the U.S. Supreme Court interpreted section 2241 of 
title 28 to authorize enemy combatants held outside of the United 
States to file habeas-corpus petitions challenging their status in 
federal courts. Such a process is both without precedent and is utterly 
impractical.
  Giving detainees access to federal judicial proceedings threatens to 
seriously undermine vital U.S. intelligence-gathering activities. Under 
the new Rasul-imposed system, shortly after al-Qaida and Taliban 
detainees arrive at Guantanamo Bay, they are informed that they have 
the right to challenge their detention in Federal court and the right 
to see a lawyer. Detainees overwhelmingly have exercised both rights. 
The lawyers inevitably tell detainees not to talk to interrogators. 
Also, mere notice of the availability of these proceedings gives 
detainees hope that they can win release through adversary litigation--
rather than by cooperating with their captors. Effective interrogation 
requires the detainee to develop a relationship of trust and dependency 
with his interrogator. The system imposed last year as a result of 
Rasul--access to adversary litigation and a lawyer--completely 
undermines these preconditions for successful interrogation.
  Navy VADM Lowell Jacoby expounded on the preconditions for effective 
interrogation in a declaration attached to the United States' brief in 
the Padilla litigation in the Southern District of New York. Vice 
Admiral Jacoby at the time was the Director of the Defense Intelligence 
Agency. He noted in the Declaration that:

       DIA's approach to interrogation is largely dependent upon 
     creating an atmosphere of dependency and trust between the 
     subject and the interrogator. Developing the kind of 
     relationship of trust and dependency necessary for effective 
     interrogations is a process that can take a significant 
     amount of time. There are numerous examples of situations 
     where interrogators have been unable to obtain valuable 
     intelligence from a subject until months, or, even years, 
     after the interrogation process began.
       Anything that threatens the perceived dependency and trust 
     between the subject and interrogator directly threatens the 
     value of interrogation as an intelligence gathering tool. 
     Even seemingly minor interruptions can have profound 
     psychological impacts on the delicate subject-interrogator 
     relationship. Any insertion of counsel into the subject-
     interrogator relationship, for example--even if only for a 
     limited duration or for a specific purpose--can undo months 
     of work and may permanently shut down the interrogation 
     process.

  Specifically with regard to Jose Padilla, Vice Admiral Jacoby also 
noted in his Declaration that:

       Providing [Padilla] access to counsel now would create 
     expectations by Padilla that his ultimate release may be 
     obtained through an adversarial civil litigation process. 
     This would break--probably irreparably--the sense of 
     dependency and trust that the interrogators are attempting to 
     create.

  The system of litigation that Rasul has wrought is unacceptable.
  Mr. GRAHAM. I agree entirely. If I could add one thing on this point: 
perhaps the best evidence that the current Rasul system undermines 
effective interrogation is that even the detainees' lawyers are 
bragging about their lawsuits' having that effect. Michael Ratner, a 
lawyer who has filed lawsuits on behalf of numerous enemy combatants 
held at Guantanamo Bay, boasted in a recent magazine interview about 
how he has made it harder for the military to do its job. He 
particularly emphasized that the litigation interferes with 
interrogation of enemy combatants. Ratner stated:

       The litigation is brutal for [the United States]. It's 
     huge. We have over one hundred lawyers now from big and small 
     firms working to represent these detainees. Every time an 
     attorney goes down there, it makes it that much harder [for 
     the U.S. military] to do what they're doing. You can't run an 
     interrogation . . . with attorneys. What are they going to do 
     now that we're getting court orders to get more lawyers down 
     there?

  When I read that quote, that for me was the last straw. I knew that 
something had to be done. On this issue, both the detainees' lawyers 
and the Defense Department seem to agree: involving enemy combatants in 
adversarial litigation in U.S. courts undermines effective 
interrogation of those detainees.
  Mr. KYL. I am glad that we have been able to work together on this 
issue. I would add that interrogation of these detainees is important. 
In his Declaration to the Southern District of New York, DIA Director 
Jacoby described how interrogation has proven to be a critical 
intelligence tool--indeed, our most important intelligence tool--in 
past conflicts and in the current war on terror. Interrogation was our 
most valuable source of information in World War II and the gulf war, 
and has played a key role in stopping numerous terrorist attacks in the 
present conflict. Vice Admiral Jacoby stated in that declaration:

       Interrogations are vital in all combat operations, 
     regardless of the intensity of the conflict. Interrogation 
     permits the collection of information from sources with 
     direct knowledge of, among other things, plans, locations, 
     and persons seeking to do harm to the United States and its 
     citizens. When done effectively, interrogation provides 
     information that likely could not be gained from any other 
     source.
       The Department of the Army's Field Manual governing 
     Intelligence Interrogation, FM 34-52, dated 28 September 
     1992, provides several examples of the importance of 
     interrogations in gathering intelligence. The Manual cites, 
     for example, the United States General Board on Intelligence 
     survey of nearly 80 intelligence units after World War II. 
     Based upon those surveys, the Board estimated that 43 percent 
     of all intelligence produced in the European theater of 
     operations was from HUMINT, and 84 percent of the HUMINT was 
     from interrogation. The majority of those surveyed agreed 
     that interrogation was the most valuable of all collection 
     operations.
       The Army Field Manual also notes that during OPERATION 
     DESERT STORM, DoD interrogators collected information that, 
     among other things, helped to: develop a plan to breach Iraqi 
     defensive belts; confirm Iraqi supply-line interdiction by 
     coalition air strikes; identify diminishing Iraqi troop 
     morale; and identify a United States Prisoner of War captured 
     during the battle of Kafji.

  Vice Admiral Jacoby also noted that interrogations of enemy 
combatants captured in the War on Terror have played a vital role in 
preventing numerous terrorist attacks. Again, quoting from his 
declaration in the Padilla litigation, Jacoby noted that interrogations 
of combatants such as those held at Guantanamo Bay have:

     . . . provided vital information to the President, military 
     commanders, and others involved in the war on Terrorism. It 
     is estimated that more than 100 additional attacks on the 
     United States and its interests have been thwarted since 11 
     September 2001 by the effective intelligence gathering 
     efforts of the Intelligence Community and others.
       In fact, Padilla's capture and detention were the direct 
     result of such effective intelligence gathering efforts. The 
     information leading to Padilla's capture came from a variety 
     of sources over time, including the interrogation of other 
     detainees. Knowledge and disruption of Al Qaida's plot to 
     detonate a `dirty bomb' or arrange for other attacks within 
     the United States may not have occurred absent the 
     interrogation techniques described above.

  There are other examples of the importance of intelligence obtained 
from interrogation. In a recent new release, the Defense Department 
described valuable information that was obtained from interrogation of 
Mohamed al Kahtani, an enemy combatant being held at Guantanamo Bay. 
The Pentagon release noted that interrogation of Kahtani has yielded 
information that:

       Clarified Jose Padilla's and Richard Reid's relationship 
     with al-Qaida and their activities in Afghanistan; provided 
     infiltration routes and methods used by al-Qaida to cross 
     borders undetected; explained how Osama Bin Laden evaded 
     capture by U.S. forces, as well as provided important 
     information on his health; and provided detailed information 
     about 30 of Osama Bin Laden's bodyguards who are also held at 
     Guantanamo.


[[Page 30750]]


  The Pentagon's news release concluded: ``the result of those 
interrogations [at Guantanamo Bay] has undoubtedly produced information 
that has saved the lives of U.S. and coalition forces in the field.''
  Let me cite another example: a June 27, 2004 Washington Post story 
notes that on November 11, 2001, Pakistani forces captured Ibn al-
Shaykh al-Libi, a Libyan national who ran the Khaldan paramilitary camp 
in Afghanistan. In January 2002, al-Libi was handed over to U.S. forces 
and interrogated. According the Post, interrogation of al-Libi:

     . . . provided the CIA with intelligence about an alleged 
     plot to blow up the U.S. Embassy in Yemen with a truck bomb 
     and pointed officials in the direction of Abu Zubaida, a top 
     al Qaeda leader know to have been involved in the September 
     11 plot. In March 2002, Abu Zubaida was captured. . . . 
     [Interrogation of Zubaida] led to the apprehension of other 
     al Qaeda members, including Ramzi Binalshibh, also in 
     Pakistan. The capture of Binalshibh and other al Qaeda 
     leaders--Omar al-Faruq in Indonesia, Rahim al-Nashiri in 
     Kuwait, and Muhammad al Darbi in Yemen--were all partly the 
     result of information gained during interrogations, according 
     to U.S. intelligence and national security officials.

  The bottom line is that keeping detainees out of court makes 
effective interrogation possible, and interrogation has proved to be an 
invaluable source of intelligence, allowing the United States to 
capture important terrorists, prevent future terrorist attacks, and 
save the lives of American soldiers in the field.
  I should also say a few words about some of the attacks that have 
been made against our amendment. For example, some critics have 
suggested that our amendment is inconsistent with the McCain 
amendment--that it prevents detainees from suing to enforce the McCain 
amendment. The response to this criticism is relatively 
straightforward: our amendment does not take anything away because the 
McCain amendment does not create a private cause of action in the first 
place. That amendment directly regulates military officers and is 
enforced through the usual mechanisms of military discipline.
  Mr. GRAHAM. You are absolutely correct Senator Kyl. I must admit, I'm 
a bit baffled by the assertion that our amendment is somehow internally 
inconsistent, that our provisions interfere with the McCain provisions 
in some way.
  While we must ensure that detainees are treated humanely, and that is 
what we addressed so well with the McCain portion of our total package, 
directing our departments and agencies to refrain from cruel, inhumane, 
or degrading treatment; we also don't want to give these detainees the 
right to abuse our courts by going after our soldiers, sailors, airmen 
and marines based on how we have decided to treat them. In fact, while 
it is true that some physical abuses have occurred, we know that 
members of al-Qaida are trained to claim mistreatment to manipulate 
public opinion of the war.
  I would like to remind all of my colleagues of some of the most 
egregious cases that prompted our amendments. For instance, a detainee 
who threw a grenade that killed an Army medic, a medic--someone trying 
to render medical assistance, and who often treats our enemies on the 
battlefield as well as our own troops.
  In any event, the detainee who threw the grenade that killed an Army 
medic in a firefight, and who comes from a family with longstanding al-
Qaida ties, filed for an injunction forbidding anyone from 
interrogating him or engaging in ``cruel, inhuman, or degrading'' 
treatment of him.
  Now clearly, our reaffirmation of America's policy against treating 
anyone in a cruel, inhuman, or degrading way tells the world that we 
are not like our enemy. We do not allow our departments or agencies to 
treat people like that. And if our people do abuse people, we prosecute 
them to the fullest extent of the law.
  However, to allow a detainee access to our courts to contest every 
aspect of his detention, a person who has fought against the very 
system he now seeks to make use of, is ludicrous. And for anyone to say 
that somehow our provisions undermine the McCain provisions or our 
overall amendment is just as wrong.
  Senator McCain, due to his service in our Nation's military, is 
uniquely qualified to take the lead on these issues. The McCain 
provisions are about us. How we behave. How we administer justice. It 
is another affirmative statement that the United States of America is 
that ``Shining City on the Hill'' President Reagan referred to. I am 
very proud to have been part of Senator McCain's effort to retake the 
moral high ground in the war on terror.
  The Graham-Kyl provisions are about them, the detainees, and what 
rights they do and, most importantly, do not have. And I am proud of 
the provisions we have made for the detainee's status to be reviewed by 
the Federal courts on the one time direct appeal. We allow for a just 
process, in the form of military tribunals and boards and commissions, 
a process based on Supreme Court precedent, modeled on the tribunals we 
have used in the past and created in accordance with Geneva Convention 
requirements. That is the process we have established for determining 
the status of detainees.
  But I have gotten a little far afield here, let's get back to the 
lawsuits. Here is another of the crazy lawsuits out there: there's a 
suit out there by a detainee accusing military health professionals of 
``gross and intentional medical malpractice'' in alleged violation of 
the 4th, 5th, 8th, and 14th Amendments, 42 U.S.C. 1981, and other, 
unspecified, international agreements. Now I don't know about the rest 
of you, but a detainee has no business in our courts suing the 
individual doctors and nurses that are making sure that that detainee 
is in good health.
  Here is another one. There is one guy down there that we are trying 
to send home, and he's suing to keep us from sending him home. Imagine 
that, he is trying to stay.
  One high level al-Qaida detainee lawsuit complains about the base 
security procedures, the speed of the mail, and his medical treatment. 
He is asking the courts to order the marines to transfer him into the 
``least onerous conditions'' at Guantanamo and allow him to keep any 
books and reading material sent to him.
  I think this one is the one that makes me the maddest. A high level 
al-Qaida member, who probably has the blood of 9/11 on his hands, 
complaining about the speed of his mail delivery. Complaining about how 
onerous the conditions are at Guantanamo.
  With the McCain provisions of our amendment, we have, in addition to 
the President's order and other regulations already in place, directed 
the Department of Defense to treat him humanely. But under our 
provisions, he will receive the justice he deserves.
  As you can see, these cases have nothing to do with cruel or inhumane 
treatment. They are abuses of our courts by the very people who are 
trying to kill Americans here and abroad. I don't know about you, 
Senator Kyl, but I believe that when you raise arms against the United 
States, you should not be surprised when you lose the privilege of our 
court system. As the McCain amendment provisions state very clearly, we 
are not going to treat people inappropriately. And, Senator Kyl, as our 
provisions state very clearly, we are not going to allow them to make a 
mockery of our courts, standing beside our own citizens at the 
courthouse door.
  We have provided a fair alternative judicial process for the 
detainees with our provisions. In fact, we have been more than fair. We 
have given them more process than our own soldiers and marines would 
enjoy under the Geneva Convention. This in no way undermines the McCain 
provisions about how we will treat them and I would challenge anyone 
who thinks so to come to the Senate floor and debate us on that point.
  Mr. KYL. To be clear, neither the CSRT nor the ARB process is 
designed to entertain grievance about the conditions of confinement. Is 
that your understanding as well?
  Mr. GRAHAM. And those are the only channels that have been created 
where the detainee himself can pursue a remedy on his own in a semi-
adversarial forum. These complaints about

[[Page 30751]]

conditions of confinement, these are for the military itself to enforce 
through its own procedures and systems of accountability for monitoring 
its soldiers. And we have no reason to believe that those systems are 
not adequate to investigate and remedy abuses. For all the attention to 
cases such as Abu Ghraib, one thing that deserves emphasis is that it 
was our own military that discovered, investigated, and punished those 
abuses. That is as it should be. These standards of treatment are 
important, but they need to be enforced through the military's internal 
systems of accountability and Congressional oversight, not through 
lawsuits and adversarial proceedings brought by detainees. The 
military's own accountability systems ultimately, I think, will be more 
effective in monitoring our detention centers and in remedying abuses. 
All that litigation would do--letting these detainees into court--is 
undermine intelligence gathering through interrogation.
  Mr. BROWNBACK. If I might interrupt, I would like to add that I share 
the understanding of my colleagues from Arizona and South Carolina. I 
supported the McCain amendments--I think that it is important to ensure 
that detainees are treated humanely. But I would not support allowing 
those detainees to file lawsuits against our armed forces, and I wasn't 
aware that anyone had even suggested that the McCain amendments allow 
detainees to file Bivens-type actions.
  Mr. KYL. No one really argued that the McCain amendments do create a 
private cause of action, except that some groups have suggested that 
the Graham/Kyl amendment is somehow inconsistent with the McCain 
amendments, the implication being that the Graham amendment wiped out 
the forum for bringing some cause of action that otherwise was created. 
Obviously, if the McCain amendment did create a private right of 
action, our amendment would bar the courts from entertaining that 
action. But the fact alone that the same Congress that adopted the 
McCain amendment also adopted the Graham/Kyl amendment tends to 
confirm, I would think, that the McCain amendments never were intended 
to create a private right of action in the first place.
  As a matter of fact, the Supreme Court recently has tightened the 
standards for spontaneously recognizing such actions in cases where 
Congress is silent on the matter--I believe it was in the recent case 
of Alexander against Sandoval. The McCain amendments do not state that 
they create a private cause of action. They regulate the conduct our 
troops rather than creating rights. And we have alternative means of 
their enforcement--as my colleague mentioned, through the system of 
military discipline--and thus we do not need a private cause of action 
to be implemented. I would be pretty surprised if, under those 
circumstances, anyone were to argue that the McCain amendment created a 
private right of action. So the senior Senator from South Carolina is 
correct, the Graham-Levin-Kyl amendment does not take away any cause of 
action created elsewhere in this bill, because the bill does not create 
any rights of action. Some members have been arguing that the McCain 
amendment will establish a standard that perhaps could be employed in 
another cause of action. That is, of course, true. But if such a cause 
of action is to exist, Congress will have to create it in the future. 
No cause of action currently available could serve as a vehicle for 
enforcing the McCain amendment in a private lawsuit, and I think that 
all the backers of that amendment consistently agree that the McCain 
amendments themselves did not create a private right of action. Again, 
it would be strange to construe this Act as intending such a private 
action when by the same hand this Congress would take away any forum 
for asserting such action.
  Mr. GRAHAM. I thank the Senator from Arizona for his comments. I'd 
also like to say a word about the timing of this bill because we 
drafted this section very carefully and I want our colleagues to know 
exactly what they will be agreeing to. While our language does respond 
to the Rasul decision by effectively reversing the Supreme Court's 
decision in that case, we wanted to respect the courts' role in this by 
addressing two different considerations.
  First, as we stated before, we wanted the CSRT process to yield 
decisions which will be reviewed by the DC Circuit Court of Appeals. 
And we wanted to be sensitive to the Rasul court's concerns about a 
process for the detainees. So, what we did was make the substantive 
provisions governing the CSRTs and ARBs apply to all cases, those 
pending on or after the enactment date. This was to ensure that every 
detainee was provided with the same protections and review.
  Second, regarding the modification of the jurisdiction of those 
courts currently hearing individual habeas or other actions that have 
been filed by the detainees, we wanted those cases to be recast as 
appeals of their CSRT determinations. We believe that is the best way 
to balance between allowing the detainees to challenge their status, 
and still allowing effective detention and interrogation techniques. As 
we all know, a court either has jurisdiction to hear a case or it 
doesn't. Jurisdiction doesn't attach for all time when the case is 
filed.
  This is really no different than transferring a case from one court 
to another. But in this case, given the change in the substantive law 
as well, we were required to extinguish these habeas and other actions 
in order to effect a transfer of jurisdiction over these cases to the 
DC Circuit Court and substantive legal change as well.
  Mr. KYL. Right. It may not be quite right to characterize this bill's 
provisions as transferring jurisdiction. Rather, they extinguish one 
type of action--all of the actions now in the courts--and create in 
their place a very limited judicial review of certain military 
administrative decisions.
  Mr. GRAHAM. Yes, that is correct. But we do still allow some types of 
judicial review to go forward--those cases asking for review, in 
accordance with section 1405, of military commissions or CSRTs. And the 
very last paragraph of section 1405--I believe that it is paragraph 
(h)(2)--adopts a compromise of sorts. It states that the bill's 
authorization for limited DC Circuit review of CSRTs and military 
commissions shall apply to pending cases. Obviously, no pending case 
seeks judicial review in the DC Circuit pursuant to section 1405. What 
this paragraph means is that, at the same time that the courts like the 
DC district courts kick these cases out of their courtrooms, they can 
also tell them where they should go next. And if, for example, a habeas 
action currently is in the DC Circuit, that court can simply construe 
that action as a request for review of the detainee's CSRT pursuant to 
subsection (e) of 1405, and allow that claim to go forward in that 
form.
  Mr. KYL. The DC Circuit will have to give the petitioner leave to 
amend his claim, I assume?
  Mr. GRAHAM. Yes, I assume that they will do so. No sense in kicking 
out a detainee's current habeas action in the DC Circuit just so that 
he has to refile a section 1405 review request--it would be better to 
let the current case go forward as a 1405 review request, as 
appropriately amended.
  Mr. KYL. We agree on that point. The one thing that critics have said 
about this bill that is correct is that it is a jurisdiction stripping 
bill. It strips every court of jurisdiction to hear claims from 
detainees held in Guantanamo Bay. The courts' rule of construction for 
these types of statutes is that legislation ousting the courts of 
jurisdiction is applied to pending cases. It has to. We're not just 
changing the law governing the action. We are eliminating the forum in 
which that action can be heard. And there is no exception anywhere in 
this bill for keeping intact part of that forum to hear the case. The 
case simply has nowhere to be heard.
  I have just been handed a memorandum on this subject. The governing 
cases on this question are the Landraf case, as well as Hallowell v. 
Commons, 239 U.S. at 506, and Sherman v. Grinnell, 123 U.S. at 679. As 
the Landraf court noted, these statutes ``speak to the

[[Page 30752]]

power of the court rather than the rights or obligations of the 
parties.'' These cases articulate the rule that will govern the 
detainee habeas actions and other lawsuits that currently are in the 
courts: legislation removing jurisdiction applies to pending cases and 
removes those cases from the courts.
  Mr. GRAHAM. Mr. President, if Senator Kyl would be so kind, could he 
explain how our amendment will affect ongoing litigation? Specifically, 
my understanding is that the Supreme Court granted certiorari recently 
in a case.
  Mr. KYL. Yes. The Constitution gives Congress the power to make 
``exceptions'' and ``regulations'' to the Supreme Court's 
jurisdiction--or at least, to its appellate jurisdiction. It was 
Marbury v. Madison that held that Congress could not regulate original 
jurisdiction, but the court since then has made clear that even habeas 
actions filed directly in the Supreme Court are regarded as falling 
within a subspecies of the Supreme Court's appellate jurisdiction. This 
would be an interesting exam question for a law school class.
  The Congress's authority to use this power was affirmed by the 
Supreme Court in the case of Ex Parte McCardle. That case involved, I 
believe, an even sharper use of this authority than this bill does--I 
believe that there the Supreme Court had even heard argument in that 
case before Congress stripped the court's jurisdiction over it. The 
Supreme Court upheld the statute and dismissed Colonel McCardle's case 
for want of jurisdiction.
  Mr. GRAHAM. And we are confident that McCardle still is good law?
  Mr. KYL. So long as the Constitution still is good law. I am not 
aware that the clause in Article III allowing Congress to make 
exceptions and regulations to Supreme Court appellate jurisdiction has 
been repealed.
  I suppose that some might argue that stripping the Supreme Court of 
jurisdiction over a pending case is unconstitutional if it is driven by 
some impure motive. But I can't imagine that the court would take away 
an authority clearly granted to Congress by the Constitution, 
regardless of what motive one might attribute to us. I am a member of 
this body, and would have great difficulty describing some definitive 
motive or intent to every law that we enact. I don't know how the 
Supreme Court or any other court could accurately discern such a 
motive. The laws that we enact have meanings that can be discerned 
through ordinary rules of construction. I think the rule of law is much 
more secure when the meaning of legislation is governed by those 
universally accessible rules of construction rather than through some 
attempt to psychoanalyze Congress's motive. And in any event, as I 
recall, this amendment was filed before the Supreme Court even granted 
review in the Hamdan case. That makes it a little hard to argue that 
the amendment was motivated by a desire to strip the court of its 
jurisdiction in that case. I don't think that the Constitution gives 
Hamdan a greater right to have his case go forward than it did to 
Colonel McCardle.
  Mr. GRAHAM. So once this bill is signed into law, you anticipate that 
the Supreme Court will determine whether to maintain their grant of 
certiorari?
  Mr. KYL. Yes, in my opinion, the court should dismiss Hamdan for want 
of jurisdiction. That is what they did in Ex Parte McCardle. I assume 
that we may see an unhappy dissent from the court's order from one or 
two of the Justices--there may be some members of the court who refuse 
to accept McCardle and article III. But I think that a majority of the 
court would do the right thing--to send Hamdan back to the military 
commission, and then allow him to appeal pursuant to section 1405 of 
this bill.
  The court also may well request a round of briefing on the effect of 
the effect on the Hamdan case. I suppose that a lawyer in the SG's 
office can look forward to rereading Ex Parte McCardle and the debates 
on the case in Hart & Wechsler's. But again, I don't think that this 
will change the result.
  As for legislative history, I think it usually is regarded as an 
element of the canons of construction. It gives some indication of what 
Congress at least understood what it was doing--the context in which a 
law was enacted. Although, I understand that Justice Scalia does not 
read legislative history. I suppose that for his sake, we will have to 
strive to be exceptionally clear in the laws that we write.
  Mr. GRAHAM. Let me address another issue. As we worked through this 
language in conference, we received a lot of comments from our 
colleagues who were concerned not only about the frivolous cases being 
filed by al-Qaida terrorists at Guantanamo, but by people detained by 
our forces in Iraq.
  I believe there are several cases that have been filed by those held 
in Iraq challenging their detention by American forces. Our language 
does not address these cases, and let me tell you why.
  The Rasul v. Bush decision that we have talked so much about worked 
two significant changes in prior POW or detainee law. Prior to Rasul, 
the Eisentrager line of cases had governed whether foreign combatants 
had access to our courts. In 1950, the Eisentrager court held that a 
Federal district court lacked authority to hear habeas cases for some 
German POWs held by U.S. forces outside the U.S. These Germans had been 
tried and convicted of war crimes by an American military commission 
headquartered in Nanking, and then put in jail in Germany.
  The Court stated six reasons for its decision. The German prisoners 
were: (1) Enemy aliens who (2) had never been or resided in the United 
States, (3) were captured outside U.S. territory and there held in 
military custody, (4) were there tried and convicted by the military 
(5) for offenses committed there, and (6) were imprisoned there at all 
times.
  The Eisentrager line of cases is the reason the Bush administration 
chose to locate the al Qaida and Taliban holding facility at 
Guantanamo. The Bush administration relied upon the Eisentrager line of 
cases so as to prevent exactly what we have seen happen since Rasul: 
terrorists with lawyers. Now I'm a lawyer myself, and I think we can 
all agree that that is a bad combination.
  In fact, if my colleagues will permit me a quick aside, I would 
remind them again of the statement by one of the lawyers for some of 
these terrorists, Michael Ratner. Mr. Ratner boasts about the fact that 
this litigation has undermined intelligence gathering in the war on 
terror. In an interview published in May of this year Mr. Ratner 
stated:

       The litigation is brutal for the United States. It's huge. 
     We have over one hundred lawyer now from big and small firms 
     working to represent these detainees. Every time an attorney 
     goes down there, it makes it that much harder for the U.S. 
     military to do what they're doing. You can't run an 
     interrogation with attorneys. What are they going to do now 
     that we're getting court orders to get more lawyers down 
     there?

  Now that is what we are facing. Terrorists with lawyers. I am pretty 
sure the American people expect more from their government than that.
  But getting back to what I was saying about Eisentrager. The Bush 
administration relied on the Supreme Court's decision in Eisentrager 
when they located the detainees at Guantanamo, reasoning sensibly, at 
least I think it was sensibly, that since the al-Qaida and Taliban 
members were enemy aliens who were being held by U.S. forces outside 
the United States after being captured on the battlefield, that they 
would not have access to Federal courts.
  But then the Supreme Court held in Rasul that the detainees could 
have access to our courts to challenge their detention. Would my 
colleague from Arizona care to comment on the Rasul decision?
  Mr. KYL. Where to even begin? The U.S. has been accused before in its 
history of imperialistic behavior, but I think that this is the first 
time ever that a portion of a sovereign nation has been annexed to the 
United States by the U.S. Supreme Court.
  Rasul begins with a discussion of two cases that were irrelevant to 
the question before the court, Ahrens v. Clark

[[Page 30753]]

and the Braden case. Ahrens had adopted a strict rule that district 
courts may only hear cases within their territorial jurisdiction. 
Braden then softened that rule for particular circumstances--for cases 
where a defendant is in prison in one state but under indictment in 
another, allowing the defendant to bring a habeas action to challenge 
the indictment in the latter state's courts. Neither of these cases has 
anything to do with enemy combatants.
  From a discussion of these relatively mundane decisions, the Rasul 
majority adopts a rather stunning non-sequitir: that ``because Braden 
overruled the statutory predicate to Eisentrager's holding, Eisentrager 
plainly does not preclude the exercise of section 2241 jurisdiction 
over petitioners' claims.''
  It could almost be a rule of construction that when a lawyer says 
``plainly'' or ``clearly,'' he usually is identifying the weakest point 
in his argument. Braden is a case concerned more with the technical 
aspects of judicial administration than with core questions of the 
scope of the writ. Eisentrager is different. The Nazi soldiers denied 
access to the writ in that case did not simply file in the wrong 
forum--Alabama instead of Kentucky--or at the wrong phase of their 
sentences. Eisentrager denied review to the Nazi soldiers because they 
were Nazi soldiers in the custody of the U.S. military in occupied 
Germany. It is not a case about how we administer the writ of habeas 
corpus, but about the power and nature of the writ and who may employ 
it. I doubt that there was any member of the court who participated in 
Braden who believed that the court in that case was destroying the 
foundation of Eisentrager.
  So according to section III of Rasul, Braden killed the ``statutory 
predicate'' for Eisentrager and that's that. No more territorial 
jurisdiction requirement for habeas courts. Apparently even the Rasul 
court itself was unwilling to buy this argument, however, because 
section IV of the opinion goes on to explain that Guantanamo Bay, Cuba 
is really part of the territory of the United States--something which 
section III just told us irrelevant and unnecessary to the court's 
decision.
  But territorial jurisdiction does matter--a point that the court 
seems to concede by attempting to annex Guantanamo Bay to the United 
States. But Cuba is not the United States. Eisentrager should be 
restored to its rightful place as the precedent that governs litigation 
attempted by enemy combatants outside of our territory--even for the 
special case of Guantanamo Bay. Eisentrager was the law of the land for 
over 50 years, until Rasul carved a hole into it. Through this act, 
Congress patches that hole and restores Eisentrager's role as the 
governing standard. We do this not because, or not just because, Rasul 
doesn't make sense and is wrong. We do it because Eisentrager's 
reasoning is compelling, and the rule that is established wards off 
much mischief.
  Let me quote two key passages from Eisentrager that explain why enemy 
combatants outside the United States should not have access to U.S. 
courts. As that court began by noting, there has been:

     . . . no instance where a court, in this or any other country 
     where the writ is known, has issued it on behalf of an alien 
     enemy who, at no relevant time and in no stage of his 
     captivity, has been within its territorial jurisdiction. 
     Nothing in the text of the Constitution extends such a right, 
     nor does anything in our statutes.

  Not only has this always been the law, but it should remain so. 
Eisentrager explains rather clearly and eloquently why we do not let 
enemy combatants sue our soldiers in our courts:

       A basic consideration in habeas corpus practice is that the 
     prisoner will be produced before the court. This is the crux 
     of the statutory scheme established by the Congress; indeed, 
     it is inherent in the very term ``habeas corpus.'' And though 
     production of the prisoner may be dispensed with where it 
     appears on the face of the application that no cause for 
     granting the writ exists, Walker v. Johnston, we have 
     consistently adhered to and recognized the general rule. 
     Ahrens v. Clark. To grant the writ to these prisoners might 
     mean that our army must transport them across the seas for 
     hearing. This would require allocation of shipping space, 
     guarding personnel, billeting and rations. It might also 
     require transportation for whatever witnesses the prisoners 
     desired to call as well as transportation for those necessary 
     to defend legality of the sentence. The writ, since it is 
     held to be a matter of right, would be equally available to 
     enemies during active hostilities as in the present twilight 
     between war and peace. Such trials would hamper the war 
     effort and bring aid and comfort to the enemy. They would 
     diminish the prestige of our commanders, not only with 
     enemies but with wavering neutrals. It would be difficult to 
     devise more effective fettering of a field commander than to 
     allow the very enemies he is ordered to reduce to submission 
     to call him to account in his own civil courts and divert his 
     efforts and attention from the military offensive abroad to 
     the legal defensive at home. Nor is it unlikely that the 
     result of such enemy litigiousness would be a conflict 
     between judicial and military opinion highly comforting to 
     enemies of the United States.

  Other authorities also have emphasized that the Anglo-American common 
law tradition includes no place for habeas petitions filed by enemy 
aliens in military custody outside our territory. Law Professor Peter 
Lushing, in an internet posting commenting on the Graham amendment 
shortly after it passed the Senate, put the matter quite colorfully: 
``the guys in the powdered wigs would have flipped over the idea that 
habeas extends to foreigners we are in combat with who have been 
captured and are being held by us abroad.'' He concludes: ``the Rasul 
decision has extended habeas far beyond what anybody alive during the 
ratification of the Constitution would have envisioned.''
  Former U.S. Attorney General William Barr testified on the subject of 
detainees in the war on terror before the Senate Judiciary Committee on 
June 15 of this year. His testimony made a considerable impact on 
members of the committee--it persuaded several of us that something 
needed to be done legislatively to correct the current situation. Here 
is what Attorney General Barr had to say about the history of habeas 
and detainees:

       The determination that a particular foreign person seized 
     on the battlefield is an enemy combatant has always been 
     recognized as a matter committed to the sound judgment of the 
     Commander in Chief and his military forces. There has never 
     been a requirement that our military engage in evidentiary 
     proceedings to establish that each individual captured is, in 
     fact, an enemy combatant.

  Attorney General Barr went on to note:

       World War II provides a dramatic example. During that war, 
     we held hundreds of thousands of German and Italian prisoners 
     in detention camps within the United States. These foreign 
     prisoners were not charged with anything; they were not 
     entitled to lawyers; they were not given access to U.S. 
     courts; and the American military was not required to engage 
     in evidentiary proceedings to establish that each was a 
     combatant.

  The concerns that were expressed in the passage from Eisentrager that 
I quoted earlier also have been expressed by other, more recent 
commentators, with the present conflict against Islamic extremism in 
mind. For example, in a 2003 article in George Washington Law Review, 
law professor John C. Yoo notes the special importance of 
``interrogating enemy combatants for information about coming attacks'' 
in this conflict, and concludes:

     . . . de novo judicial review threatens to undermine the very 
     effectiveness of the military effort against al-Qaeda. A 
     habeas proceeding could become a forum for recalling 
     commanders and intelligence operatives from the field into 
     open court; disrupting overt and covert operations; revealing 
     successful military tactics and methods; and forcing the 
     military to shape its activities to the demands of the 
     judicial process.

  Similarly, Andrew McCarthy, a former federal prosecutor who led the 
case against Sheik Omar Abdel Rahman, offered a stinging criticism of 
Rasul the day after the Supreme Court issued its opinion. He stated 
that:

       How can it conceivably be appropriate to impose on our 
     soldiers the burdens of stopping to collect evidence and 
     write incident reports in the middle of fighting a war? Of 
     course they do a measure of that now--after all, it is much 
     in their interest correctly to sort out whom to hold and whom 
     to release. But, until now, that has certainly not been done 
     with the rigor anticipation of litigation will doubtless 
     produce. It is not enough to

[[Page 30754]]

     say, hopefully, that U.S. courts will be indulgent given 
     what's involved. Empirically, judicial demands on 
     governmental procedural compliance become steadily more 
     demanding over time, and government naturally responds by 
     being even more internally exacting to avoid problems. In no 
     time flat, what was once thought a trifling inconvenience 
     becomes a major expenditure--in this case one that will 
     inevitably detract from the military mission which is the 
     bedrock of our safety.

  McCarthy also summarized why the Rasul decision is at war with the 
role and duties of the Federal judiciary in our constitutional 
framework:

       In the Framers' ingenious construct, the courts of the 
     United States are supposed to be a bulwark protecting members 
     of the uniquely American community--i.e., citizens of the 
     United States and those aliens who, by their lawful 
     participation in our national life, have immersed themselves 
     into the fabric of American society--from the excesses of an 
     oppressive executive or a legislature insufficiently heedful 
     of their fundamental rights. It is the institution that 
     ensures the law and order a free people must have in order to 
     thrive.
       Nevertheless, as manifested in Rasul, yesterday's case 
     involving claims of foreign enemy combatants captured on 
     faraway battlefields and held by the military in Guantanamo 
     Bay, Cuba--an installation outside the jurisdiction of any 
     U.S. court--the judiciary is no longer a neutral arbiter 
     there to ensure that Americans get a fair shake from their 
     government and its laws. Instead, it is evolving, or 
     morphing, into a sort of United Nations with teeth. It has 
     seized the mantle of international arbiter, ensuring that the 
     world--including that part of it energetically trying to kill 
     Americans--has a forum in which to press its case against the 
     United States.

  McCarthy went on to conclude: ``Rasul is a dangerous decision. 
Congress should slam the door on al-Qaeda today.''
  And again, former Attorney General Barr also commented on this same 
question--on the impracticality of applying judicial process and 
standards to questions of the detention of enemy combatants. Because of 
his authority and the force of his arguments, I quote from his June 15 
testimony at length:

       There appear to be courts and critics who continue to claim 
     that the Due Process Clause applies and that the CSRT process 
     does not go far enough. I believe these assertions are 
     frivolous.
       I am aware of no legal precedent that supports the 
     proposition that foreign persons confronted by U.S. troops in 
     the zone of battle have Fifth Amendment rights that they can 
     assert against the American troops. On the contrary, there 
     are at least three reasons why the Fifth Amendment has no 
     applicability to such a situation. First, as the Supreme 
     Court has consistently held, the Fifth Amendment does not 
     have extra-territorial application to foreign persons outside 
     the United States. As Justice Kennedy has observed, ``[T]he 
     Constitution does not create, nor do general principles of 
     law create, any juridical relation between our country and 
     some undefined, limitless class of non-citizens who are 
     beyond our territory.'' Moreover, as far as I am aware, prior 
     to their capture, none of the detainees had taken any 
     voluntary act to place themselves under the protection of our 
     laws; their only connection with the United States is that 
     they confronted U.S. troops on the battlefield. And finally, 
     the nature of the power being used against these individuals 
     is not the domestic law enforcement power--we are not seeking 
     to subject these individuals to the obligations and sanctions 
     of our domestic laws--rather, we are waging war against them 
     as foreign enemies, a context in which the concept of Due 
     Process is inapposite.
       In society today, we see a tendency to impose the judicial 
     model on virtually every field of decision-making. The notion 
     is that the propriety of any decision can be judged by 
     determining whether it satisfies some objective standard of 
     proof and that such a judgment must be made by a ``neutral'' 
     arbiter based on an adversarial evidentiary hearing. What we 
     are seeing today is an extreme manifestation of this--an 
     effort to take the judicial rules and standard applicable in 
     the domestic law enforcement context and extend them to the 
     fighting of wars. In my view, nothing could be more farcical, 
     or more dangerous.
       These efforts flow from a fundamental error--confusion 
     between two very distinct constitutional realms. In the 
     domestic realm of law enforcement, the government's role is 
     disciplinary--sanctioning an errant member of society for 
     transgressing the internal rules of the body politic. The 
     Framers recognized that in the name of maintaining domestic 
     tranquility an overzealous government could oppress the very 
     body politic it is meant to protect. The government itself 
     could become an oppressor of ``the people.''
       Thus our Constitution makes the fundamental decision to 
     sacrifice efficiency in the realm of law enforcement by 
     guaranteeing that no punishment can be meted out in the 
     absence of virtual certainty of individual guilt. Both the 
     original Constitution and the Bill of Rights contain a number 
     of specific constraints on the Executive's law enforcement 
     powers, many of which expressly provide for a judicial role 
     as a neutral arbiter or ``check'' on executive power. In this 
     realm, the Executive's subjective judgments are irrelevant; 
     it must gather and present objective evidence of guilt 
     satisfying specific constitutional standards at each stage of 
     a criminal proceeding. The underlying premise in this realm 
     is that it is better for society to suffer the cost of the 
     guilty going free than mistakenly to deprive an innocent 
     person of life or liberty.
       The situation is entirely different in armed conflict where 
     the entire nation faces an external threat. In armed 
     conflict, the body politic is not using its domestic 
     disciplinary powers to sanction an errant member, rather it 
     is exercising its national defense powers to neutralize the 
     external threat and preserve the very foundation of all our 
     civil liberties. Here the Constitution is not concerned with 
     handicapping the government to preserve other values. Rather 
     it is designed to maximize the government's efficiency to 
     achieve victory--even at the cost of ``collateral damage'' 
     that would be unacceptable in the domestic realm.

  Attorney General Barr brought these concerns into relief with the 
following hypothetical example:

       Let me posit a battlefield scenario. American troops are 
     pinned down by sniper fire from a village. As the troops 
     advance, they see two men running from a building from which 
     the troops believe they had received sniper fire. The troops 
     believe they are probably a sniper team. Is it really being 
     suggested that the Constitution vests these men with due 
     process rights as against the American soldiers? When do 
     these rights arise? If the troops shoot and kill them--i.e., 
     deprive them of life--could it be a violation of due process? 
     Suppose they are wounded and it turns out they were not enemy 
     forces. Does this give rise to Bivens' Constitutional tort 
     actions for violation of due process? Alternatively, suppose 
     the fleeing men are captured and held as enemy combatants. 
     Does the due process clause really mean that they have to be 
     released unless the military can prove they were enemy 
     combatants? Does the Due Process Clause mean that the 
     American military must divert its energies and resources from 
     fighting the war and dedicate them to investigating the 
     claims of innocence of these two men?
       This illustrates why military decisions are not susceptible 
     to judicial administration and supervision. There are simply 
     no judicially manageable standards to either govern or 
     evaluate military operational judgments. Such decisions 
     inevitably involve the weighing of risks. One can easily 
     imagine situations in which there is an appreciable risk that 
     someone is an enemy combatant, but significant uncertainty 
     and not a preponderance of evidence. Nevertheless, the 
     circumstances may be such that the President makes a judgment 
     that prudence dictates treating such a person as hostile in 
     order to avoid an unacceptable risk to our military 
     operations. By their nature, these military judgments must 
     rest upon a broad range of information, opinion, prediction, 
     and even surmise. The President's assessment may include 
     reports from his military and diplomatic advisors, field 
     commanders, intelligence sources, or sometimes just the 
     opinion of frontline troops. He must decide what weight to 
     give each of these sources. He must evaluate risks in light 
     of the present state of the conflict and the overall military 
     and political objectives of the campaign.

  Attorney General Barr goes on to consider the practical consequences 
of applying civilian due process concepts in the context of military 
detention of enemy combatants:

       The imposition of such procedures would fundamentally alter 
     the character and mission of our combat troops. To the extent 
     that the decisions to detain persons as enemy combatants are 
     based in part on the circumstances of the initial encounter 
     on the battlefield, our frontline troops will have to concern 
     themselves with developing and preserving evidence as to each 
     individual they capture, at the same time as they confront 
     enemy forces in the field. They would be diverted from their 
     primary mission--the rapid destruction of the enemy by all 
     means at their disposal--to taking notes on the conduct of 
     particular individuals in the field of battle. Like 
     policeman, they would also face the prospect of removal from 
     the battlefield to give evidence at post-hoc proceedings.
       Nor would the harm stop there. Under this due process 
     theory, the military would have to take on the further burden 
     of detailed investigation of detainees' factual claims once 
     they are taken to the rear. Again, this would radically 
     change the nature of the military enterprise. To establish 
     the capacity to conduct individualized investigations and 
     adversarial hearings as to every detained combatant would 
     make the conduct of war--especially irregular warfare--vastly 
     more cumbersome and expensive. For every platoon of combat 
     troops, the United States would have

[[Page 30755]]

     to field three platoons of lawyers, investigators, and 
     paralegals. Such a result would inject legal uncertainty into 
     our military operations, divert resources from winning the 
     war into demonstrating the individual ``fault'' of persons 
     confronted in the field of battle, and thereby uniquely 
     disadvantage our military vis-a-vis every other fighting 
     force in the world.
       Second, the introduction of an ultimate decision maker 
     outside of the normal chain of command, or altogether outside 
     the Executive Branch, would disrupt the unitary chain of 
     command and undermine the confidence of frontline troops in 
     their superior officers. The impartial tribunals could 
     literally overrule command decisions regarding battlefield 
     tactics and set free prisoners of war whom American soldiers 
     have risked or given their lives to capture. The effect of 
     such a prospect on military discipline and morale is 
     impossible to predict.

  Attorney General Barr also noted that ``Supreme Court's decision in 
Rasul was a statutory ruling, not a constitutional one.'' He went on to 
point out:

       An important consequence follows: Congress remains free to 
     restrict or even to eliminate entirely the ability of enemy 
     aliens at Guantanamo Bay to file habeas petitions. Congress 
     could consider enacting legislation that does so--either by 
     creating special procedural rules for enemy alien detainees, 
     by requiring any such habeas petitions to be filed in a 
     particular court, or by prohibiting enemy aliens from hauling 
     military officials into court altogether.

  Obviously, the Congress has taken the former Attorney General up on 
his suggestion, particularly the third variation of it.
  I should also say a few words about military commissions. The 
Judiciary Committee also heard enlightening testimony on the history of 
these commissions. Former Attorney General Barr commented on them as 
follows:

       Throughout our history we have used military tribunals to 
     try enemy forces accused of engaging in war crimes. Shortly 
     after the attacks of 9/11, the President established military 
     commissions to address war crimes committed by members of al-
     Qaeda and their Taliban supporters.
       Again, our experience in World War II provides a useful 
     analog. While the vast majority of Axis prisoners were simply 
     held as enemy combatants, military commissions were convened 
     at various times during the war, and in its immediate 
     aftermath, to try particular Axis prisoners for war crimes. 
     One notorious example was the massacre of American troops at 
     Malmedy during the Battle of the Bulge. The German troops 
     responsible for these violations were tried before military 
     commissions.

  As an aside, those disturbed by the tendency of some in the press and 
politics to take the side of the Guantanamo detainees--of those 
captured while at war with America--might find it interesting that the 
same phenomenon developed with regard to the Malmedy detainees. The 
Malmedy German soldiers were tried and convicted of massacring American 
POWs near the Belgian village of Malmedy during the Battle of the 
Bulge. This crime unquestionably occurred--the bodies of over 80 U.S. 
soldiers were recovered in a field, most of them shot in the head. 
Members of the German unit responsible for this crime later were 
captured and tried by a military commission. Over the years, these Nazi 
soldiers, at least some of whom unquestionably massacred American 
G.I.s, somehow managed to turn the tables on the U.S. military in the 
press and in political circles. Senator Joseph McCarthy took up their 
cause, as did other Senators. The most fanciful allegations of abuse 
made by these Nazi murderers were indulged by various prominent 
Americans, and the whole incident became a public relations 
embarrassment for the U.S. military. Eventually, this pressure campaign 
succeeded in winning the commutation of all death sentences given to 
the Malmedy killers, and all of the German soldiers involved--even 
their commander--were released from prison by the mid-1950s. For those 
who find it disturbing that the sympathies of the press (especially in 
Europe) and of various intellectuals have been misplaced on the side of 
the Guantanamo detainees, at least we can take comfort in the fact the 
perversions of truth and rank miscarriages of justice that have 
resulted from such misplaced sympathy so far in this war pale in 
comparison to those that followed from Malmedy.
  Perhaps first among those who would object to any sympathizing with 
the Guantanamo detainees would be Andrew McCarthy, the former Federal 
antiterror prosecutor. He has written often on this and other war-on-
terror topics. I was pleased to see that shortly after the Graham/Kyl 
amendment first passed the Senate, he wrote a column for National 
Review Online lauding our efforts. It was titled ``Restoring Law and 
Order,'' and McCarthy's only complaint was that ``it has taken our 
national legislature nearly a year-and-a-half--during all of which we 
have been at war--to stir itself to address this serious national-
security problem.'' So you can imagine my disappointment when, just two 
days later, Mr. McCarthy posted another column commenting on the final 
Senate language, which include some compromises to ensure bipartisan 
support. This column was titled ``Snatching Defeat from the Jaws of 
Victory.'' Some of its language I won't recite here. But its specific 
complaints bear scrutiny. Mr. McCarthy alleged that ``the senators 
resolved Tuesday that the ultimate decision about who is properly 
considered an `enemy combatant,' should rest with federal judges, not 
our military commanders.'' As he characterized the final Senate 
language, ``a panel of robed lawyers will second-guess the 
determination of [our soldiers'] commanders on scene that certain 
captives warranted detention--that holding them would be beneficial to 
the war effort.'' Similarly, with regard to military commissions, Mr. 
McCarthy complained that ``everything that happens in the commission 
would be reviewed by judges if this measure passes.''
  I do not think that these words are an accurate characterization of 
the Senate-passed language. I think that Mr. McCarthy probably relied 
on inaccurate characterizations of the language that were published in 
the press at the time rather than on the language itself. Nevertheless, 
Mr. McCarthy's complaints did cause me and others to take another look 
at the language, to make sure that it does what we intended.
  Limited judicial review of the decisions of the CSRTs and military 
commissions is authorized by paragraphs 2 and 3 of subsection 1405(e) 
of the conference report. These paragraphs authorize the same two 
narrow judicial inquiries into the ``status determinations'' and 
``final decisions'' of the CSRTs and military commissions. The 
difference in language here is not intended to connote any substantive 
difference in the scope of review--it simply attempts to accurately 
characterize the work of each entity: ``making status determinations'' 
for the CSRTs, and ``reaching final decisions'' for the military 
commissions.
  The review authorized by each of these paragraphs goes only to the 
following questions: did the CSRTs and commissions use the standards 
and procedures identified by the Secretary of Defense, and is the use 
of these systems to either continue the detention of enemy combatants 
or try them for war crimes consistent with the Constitution and Federal 
law? The first inquiry I think is straightforward: did the military 
follow its own rules? This inquiry does not ask whether the military 
reached the correct result by applying its rules, or even whether those 
rules were properly applied to the facts. The inquiry is simply whether 
the right rule was employed.
  As to the second inquiry, here the language has been further modified 
in order to make clear the narrow scope of the inquiry. The original 
Senate language spoke of whether ``subjecting'' an enemy combatant to 
the CSRT or commission systems was constitutional and legal. This 
formulation was somewhat illogical in that the detainee would not 
complain of the fact that he was forced to go through a CSRT--rather, 
he would want to challenge its adequacy as a means for justifying his 
continued detention. And in any event, our concern was to make clear 
that this language in no way invites a re-evaluation of the correctness 
of the military's decision, even under a deferential standard of 
review. Nor does it invite an as-applied challenge. All that this 
language asks is whether using these systems is good enough for the 
ends that they serve--to justify continued detention or to try an enemy 
combatant for war crimes. The only thing

[[Page 30756]]

that this provision authorizes is, in effect, a facial challenge. In 
fact, we anticipate that once the District of Columbia Circuit decides 
these questions in one case, at least so long as military orders do not 
substantially change, that decision will operate as circuit precedent 
in all future cases, with no need to relitigate this second inquiry in 
the future. In effect, the second inquiry--into the constitutionality 
and lawfulness of the use of CSRTs and commissions--need only be 
decided once by the court.
  It bears quoting some of the thinking that undergirds the 
establishment of these review standards. Attorney General Barr, in his 
June 5 testimony before the Judiciary Committee, describes the 
philosophy and approach that paragraph 2's scope of review for CSRTs is 
designed to reflect:

       It seems to me that the kinds of military decisions at 
     issue here--namely, what and who poses a threat to our 
     military operations--are quintessentially Executive in 
     nature. They are not amenable to the type of process we 
     employ in the domestic law enforcement arena. They cannot be 
     reduced to neat legal formulas, purely objective tests and 
     evidentiary standards. They necessarily require the exercise 
     of prudential judgment and the weighing of risks. This is one 
     of the reasons why the Constitution vests ultimate military 
     decision-making in the President as Commander-in-Chief. If 
     the concept of Commander-in-Chief means anything, it must 
     mean that the office holds the final authority to direct how, 
     and against whom, military power is to be applied to achieve 
     the military and political objectives of the campaign.
       I am not speaking here of ``deference'' to Presidential 
     decisions. In some contexts, courts are fond of saying that 
     they ``owe deference'' to some Executive decisions. But this 
     suggests that the court has the ultimate decision-making 
     authority and is only giving weight to the judgment of the 
     Executive. This is not a question of deference--the point 
     here is that the ultimate substantive decision rests with the 
     President and that courts have no authority to substitute 
     their judgments for that of the President.

  And the thinking that underlies paragraph 3's scope of review for 
military-commission decisions is well articulated in Johnson v. 
Eisentrager:

       It is not for us to say whether these prisoners were or 
     were not guilty of a war crime, or whether if we were to 
     retry the case we would agree to the findings of fact or the 
     application of the laws of war made by the Military 
     Commission. The petition shows that these prisoners were 
     formally accused of violating the laws of war and fully 
     informed of particulars of these charges. As we observed in 
     the Yamashita case, ``If the military tribunals have lawful 
     authority to hear, decide and condemn, their action is not 
     subject to judicial review merely because they have made a 
     wrong decision on disputed facts. Correction of their errors 
     of decision is not for the courts but for the military 
     authorities which are alone authorized to review their 
     decisions.'' ``We consider here only the lawful power of the 
     commission to try the petitioner for the offense charged.

  There is another matter that I should mention before I yield the 
floor to my colleague from South Carolina. Some have asked why the 
jurisdiction-removing language in the bill is limited to Guantanamo. 
The answer is that Rasul is only about Guantanamo. Although the opinion 
contains the discussion of Ahrens and Braden that undercuts the 
``territorial-jurisdiction'' rule for habeas courts, in the end the 
decision appears to be based on the unique status of the naval station 
at Guantanamo Bay--the permanent nature of the lease, for example, 
which can only be terminated by the United States. Justice Kennedy 
adopted a similar focus in his concurring opinion. I believe that 
Justice Kennedy's concurrence goes so far as to declare that Guantanamo 
is in practical respects a U.S. territory.
  Some have raised the concern that the logic of Rasul will be extended 
to U.S. military and intelligence detention facilities in Iraq or 
Afghanistan. I think that such an extension would be very foolish and I 
do not think that the court will go there. I do not think that the 
Supreme Court is going to declare parts of Afghanistan or Iraq to be 
the territory of the United States. If the court does do so, we can of 
course legislatively overrule it, as we legislatively overrule Rasul 
today. But I do not think that it is either necessary, or respectful of 
the court's capacity for common sense, to preemptively overrule such an 
outlandish hypothetical decision. Does the Senator from South Carolina 
agree?
  Mr. GRAHAM. Yes, my friend from Arizona is correct, our language 
applies only to Guantanamo just because we understand that the Supreme 
Court only extended the jurisdiction of the courts over the detainees 
held at Guantanamo. And since the Rasul decision was based on the 
habeas statute in the U.S. Code, I am very comfortable amending that 
statute as a proper congressional response to the Court's decision.
  As I stated repeatedly to a number of my colleagues, we did not want 
to deprive the courts of jurisdiction to hear cases filed on behalf of 
detainees in Iraq because we are confident that, as the law stands now, 
those cases are already barred by previous Supreme Court decisions, 
which the Rasul decision left in place.
  We should always be careful when dealing with our co-equal branches. 
Just as we do not appreciate it when they stray into our areas of 
constitutional responsibility, we should always be willing to refrain 
from straying into theirs unnecessarily. As I read the Rasul decision, 
these other cases from other parts of the world are still subject to 
the Eisentrager opinion and will not be considered by U.S. courts.
  And so, our language is limited to Guantanamo. To my friends who 
counseled that we should extend our jurisdiction modification to those 
cases being filed on behalf of Iraqis held in accordance with the 
Geneva Convention, I would just counsel them to be patient. I cannot 
imagine the Court extending its jurisdiction halfway around the world 
to involve what is almost exclusively an executive branch function. 
However, should that become necessary, I am perfectly willing to modify 
our courts' jurisdiction again to ensure that does not happen. But 
again, in truth, especially after our very robust action here today, I 
cannot even conceive of such a decision by the Supreme Court.
  Mr. KYL. Well, that is what I thought before Rasul was decided. But 
we can cross that bridge if we get to it.
  Mr. GRAHAM. Mr. President, I would also like my esteemed colleague 
from Arizona, Senator Kyl, to address the misunderstandings that seem 
to have made their way into the press. For instance, when I returned 
from Iraq this morning, I was surprised to see the New York Times 
editorial page making some fundamental mistakes about what our 
legislation does.
  Mr. President, I would also request unanimous consent to have the New 
York Times editorial entitled Ban Torture. Period. from December 16, 
2005 entered in the Record.
  The first sentence reads, ``It should have been unmitigated good news 
when President Bush finally announced yesterday that he would back 
Senator John McCain's proposal to ban torture and ``cruel, inhuman or 
degrading'' treatment at United States prison camps. Nothing should be 
more obvious for an American president than to support a ban on 
torture.'' I agree, nothing should be more obvious. And I'd like to 
applaud the New York Times for finally endorsing the actions President 
Reagan took when we signed the Convention Against Torture on April 18, 
1988, and the Senate ratified the Convention on October 21, 1994.
  But since they appear to be laboring under some confusion, I would 
like to clarify how and when our antitorture statutes apply. First, 
torture has been illegal for quite some time. Indeed, Section 2340A of 
Title 18 of the United States Code specifically provides for the 
prosecution of people who torture overseas. And most of the techniques 
of torture, beatings, improper imprisonment, and threats have long been 
part of the criminal code of the United States.
  I strongly supported Senator McCain's amendment each and every time 
it came up. I am extremely pleased it passed. But, make no mistake, it 
does not make torture illegal. Torture has long been illegal. What the 
McCain language does is make a very clear statement that we will treat 
people humanely while we have them in our custody. The McCain amendment 
is a very clear policy statement that is in

[[Page 30757]]

accord with the best of American tradition. But it does not ban 
torture. Accordingly, the Graham-Levin-Kyl provisions do not equivocate 
in any way regarding torture. The Times editors, regrettably, for I 
appreciate the place the Times holds in our public discourse, do not 
appear to understand what they are talking about.
  I would like to address one other statement the Times makes. They 
state, and I quote, that ``What is at stake here, and so harmful to 
America's reputation, is the routine mistreatment of prisoners swept up 
in the so-called war on terror.'' Now I take great exception to this 
baseless smear of our soldiers and marines. It is said off-handedly, 
almost as if everyone takes it for granted that the fine men and women 
of our armed services routinely mistreat our prisoners.
  Well I will tell you, I for one don't take it for granted that the 
fine people who are putting their lives on the line to protect our 
Nation routinely mistreat the prisoners in their care. I believe they 
follow the orders that their superiors give them, orders based on such 
policy statements as Senator McCain's or the Army Field Manual, and 
they follow them to the best of their ability.
  Now, are there going to be bad apples? As a former JAG prosecutor and 
defense counsel, I can tell you affirmatively, yes, there will be. And 
they will be arrested, tried, convicted, and will serve long sentences. 
Those few individuals who do not live up to the high standards of the 
vast majority of our honorable service members, will be held 
accountable for their actions.
  Our troops do not deserve such a slander, and I call on the New York 
Times to take back the vile assertion they have made against the people 
who exemplify the best our Nation has to offer.
  Mr. KYL. Mr. President, I see that we are nearing the end of our 
allotted time. If I could quickly address a few other minor issues and 
summarize briefly. It is important to note that the limited judicial 
review authorized by paragraphs 2 and 3 of subsection (e) are not 
habeas-corpus review. It is a limited judicial review of its own 
nature. All habeas actions are terminated by this bill. I hope that 
this change will also put to rest any arguments that extending habeas 
to prisoners also extends to them some type of substantive rights. I do 
not believe that supposition is correct because habeas is a vehicle for 
asserting rights, not a source of rights. The fact that an individual 
has access to habeas does not mean that he has any of the rights that 
he asserts. But in any event, because this bill leaves no habeas in 
place, that debate need not be rejoined.
  Also, some have suggested that by vesting exclusive jurisdiction in 
the DC circuit for the paragraph 2 and 3 appeals, this bill bars even 
Supreme Court appellate review. That was not the drafters' intention, 
nor do I believe that it is a correct reading of the legislative 
language. Supreme Court review is implicit, or rather, authorized 
elsewhere in statute, for all judicial decisions. It is rarely 
mentioned expressly. In fact, when it is mentioned, it is sometimes to 
preempt Supreme Court review. Far example, the limit on successive 
federal habeas petitions for state prisoners in section 2244 bars 
petitions for certiorari following a three-judge panel's decision on a 
successive-petition application. The clear implication of these 
provisions is that Supreme Court review is implicitly allowed except 
where expressly barred, and thus since it is not barred here, it is 
allowed.


            uniform standards of interrogation for detainees

  Mr. McCAIN. I would like to thank the chairman and the ranking member 
for their untiring work to bring the Defense authorization bill to 
closure. In doing so, Congress takes a major step in ensuring that 
America stays true to its fundamental values. By establishing uniform 
standards for the interrogation of Department of Defense detainees, and 
by ensuring that the United States will not subject any individual to 
cruel, inhuman or degrading treatment or punishment, we are better able 
to wage and win the war on terror. This would not have been possible 
without the work of the chairman, the ranking member, and other members 
of this committee, including most notably the Senator from South 
Carolina.
  I would also like to thank the President and the national security 
advisor for their efforts in resolving the difficult issues underlying 
the amendment. In reaching agreement, we make sure that the world knows 
that the United States does not--and by law cannot engage in torture or 
cruel, inhuman or degrading treatment. During our talks, the 
administration raised legitimate concerns about legal claims facing 
civilian interrogators. Based on these concerns, the bill includes 
language that will allow accused civilian interrogators--like military 
interrogators--a robust defense if a person of ordinary sense and 
understanding would have believed he was following a lawful directive. 
It further includes language providing legal counsel to interrogators. 
These provisions are modeled on provisions drawn from the Uniform Code 
of Military Justice.
  With the detainee treatment provisions, Congress has clearly spoken 
that the prohibition against torture and other cruel, inhuman or 
degrading treatment should be enforced and that anyone engaging in or 
authorizing such conduct, whether at home or overseas, is violating the 
law. Sections 1402 and 1403 of Title XIV of this bill do not create a 
new private right ot action. At the same time, these provisions do not 
eliminate or diminish any private right of action otherwise available. 
It is our intent not to disable that in any way.
  Mr. WARNER. To have worked from the beginning with Senator McCain 
then with Senators Graham, Levin and Kyl was a privilege, and, to 
achieve legislation which was needed for all our Nation's citizens was 
a humble, but very fulfilling, experience. We realized both the 
necessity for action in this area and the vital importance of dealing 
with the increasing flow of litigation involving Guantanamo detainees.
  This legislative history should document that the McCain provisions, 
sections 1402 and 1403 of the bill, do not create a private right of 
action. Title XIV of the bill does provide a new affirmative defense 
that may be applied to civil actions brought under other statutes and 
to criminal prosecutions. This is essential to give potential 
defendants fair rights to defend themselves. Further, language was 
included affording the same right to counsel and to payment of 
litigation costs at Government expense for non-military personnel, in 
both foreign and domestic courts, that is presently extended to members 
of the Armed Forces.
  Mr. LEVIN. I am pleased that the conference report contains the full 
text of the McCain amendment on torture, without change. This language 
firmly establishes in law that the United States will not subject any 
individual in our custody, regardless of nationality or physical 
location, to cruel, inhuman, or degrading treatment or punishment. The 
amendment provides a single standard--for ``cruel, inhuman, or 
degrading treatment or punishment''--without regard to what agency 
holds a detainee, what the nationality of the detainee is, or where the 
detainee is held.
  It has never been my understanding that the McCain amendment would, 
by itself, create a private right of action. I do not believe that the 
amendment was intended either to create such a private right of action, 
or to eliminate--or undercut any private right of action such as a 
claim under the Alien Tort Statute--that is otherwise available to an 
alien detainee. Rather, the McCain amendment would establish a legal 
standard applicable to any criminal prosecution or any private right of 
action that is otherwise available under law. That would not be changed 
in any way by the affirmative defense added in the new section.
  Mr. GRAHAM. I was pleased to support this legislation and work toward 
its enactment from the beginning. Under section 1402, our troops now 
have one standard--the Army Field Manual--for their interrogations. In 
section 1403, we close the loophole in the United Nations Convention 
Against Torture and Other Cruel, Inhuman or Degrading Treatment or 
Punishment.

[[Page 30758]]

As National Security Advisor Stephen Hadley said, ``those standards, as 
a technical, legal matter, did not apply abroad. And that is what 
Senator McCain, in the second section of his legislation, wanted to 
address--wanted to make clear that those would apply abroad. We applied 
them abroad as a matter of policy; he wanted to make sure they applied 
as a matter of law. And when this legislation is adopted, it will.'' I 
agree that these sections do not create a new private right of action, 
but that they are binding on the executive and may be applicable to 
actions brought under other statutes.
  Mr. KENNEDY. Mr. President, I ask unanimous consent to have a letter 
from Mr. Ed Tong printed in the Record for the consideration of the 
fiscal year 2006 Defense Authorization Act. The letter reflects the 
view of a supporter of the minority small business contracting program, 
which is reauthorized in this bill.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                   ASIAN, Inc.

                             San Francisco, CA, December 19, 2005.
     Hon. Edward M. Kennedy,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kennedy: I write to urge you to support the 
     reauthorization of the Department of Defense 1207 program. 
     The program has been repeatedly reauthorized since its 
     original enactment, and it remains necessary today. 
     Minorities have historically been disadvantaged with regard 
     to the awarding of federal, state and municipal contracts. 
     The impact of such discrimination and exclusion has been 
     especially felt in Northern California--and specifically 
     within the San Francisco Bay area.
       The 1992 Minority Business Census of the U.S. Census Bureau 
     reported that San Francisco has over 16,353 minority-owned 
     businesses operating in the area. That statistic makes San 
     Francisco the fourth largest business locale in the country 
     for minority-owned businesses. Despite the large number of 
     minority-owned business, discriminatory and harassing 
     treatment is commonly experienced.
       Specifically, Asian American construction firms in San 
     Francisco, have encountered discriminatory and harassing 
     treatment at the hands of the craft unions and city 
     government through the San Francisco's Office of Labor 
     Standards Enforcement (OLSE). OLSE was created in 2000, to 
     enforce the prevailing wages of crafts set by the state's 
     Department of Industrial Relations. In fact, OLSE has 
     differentially chosen to conduct its audits and impose higher 
     penalties against many of San Francisco's minority craft 
     businesses. At its inception of enforcement, the OLSE 
     specifically targeted Chinese businesses. The statistics at 
     that time showed that Chinese businesses had around a 5% 
     chance of obtaining a prime contract they bid on, but a 50% 
     probability of their project being inspected and audited by 
     the OLSE. At present, OLSE still disproportionately targets 
     minority businesses, whether they are union or non-unionized 
     construction companies. Left with no avenue through which to 
     remedy its grievances, many Asian American businesses have 
     turned to ASIAN, Inc. for assistance
       In my role as ASIAN, Inc.'s Program Manager in our Business 
     & Economic Development Division, I have had personal 
     experience in speaking with Asian American businesses dealing 
     with discriminatory treatment. ASIAN, Inc. is a nonprofit 
     technical assistance and research organization that works to 
     strengthen the infrastructure of Asian American communities 
     in Northern California and to assist in their physical, 
     economic, and social development. ASIAN, Inc. has been in 
     operation for 34 years. Over the years, the organization has 
     helped over 500 disadvantaged businesses obtain business 
     loans through partnerships with the City of San Francisco's 
     Office of Community Development, the State of California, the 
     U.S. Department of Commerce Minority Business Development 
     Agency, the U.S. Small Business Administration, and many 
     banks and other private lenders. Still, discrimination 
     continues to pose barriers for many of the businesses with 
     which we work
       Because ASIAN, Inc.'s role has been to provide strategic 
     information and technical assistance in order to promote the 
     ability of Asian Americans to compete in mainstream society--
     including achieving success for their businesses and 
     participating in public decision-making--the organization has 
     been in a position to witness the experiences of Asian 
     American businesses in the San Francisco Bay Area.
       Notably, several Asian American businesses came to ASIAN, 
     Inc. for assistance after the OLSE imposed significant 
     penalties upon their businesses, allowed those businesses no 
     opportunity to rectify any alleged violations prior to making 
     a finding, or to present their sides of the story. Initially 
     there was no appeals process built into the Ordinance. To the 
     presidents and owners of these businesses, it felt as if the 
     OLSE was targeting them because they were minority owned and 
     because of the ongoing disputes between Asian businesses and 
     the trade unions in the area. The targeting of Asian American 
     firms by OLSE for inspection and audits made obtaining 
     contracts difficult when it became known that a business was 
     being inspected by the OLSE.
       ASIAN, Inc.'s work with the OLSE is by no means unique but 
     rather signifies merely one of many types of discrimination 
     experienced by the Asian American businesses that contact our 
     organization. In fact, the OLSE situation is quite emblematic 
     of the larger underlying problems that minority businesses 
     face. Discrimination is not limited to the local or municipal 
     level. Asian American businesses have experienced 
     discrimination in the awarding of local agency contracts, the 
     issuance of bonds and insurance policies, and the provision 
     of necessary materials and material quotes by suppliers.
       For example, I personally have heard of complaints/
     testimonials from minority businesses about:
       The use of racial slurs or epithets against minority owners 
     or employees, One Asian firm owner used workers of Mexican 
     ancestry on a job, and other white subcontractors challenged 
     him and asked ``Why are your illegal workers on my job 
     site.'' Also, an institution's administrator might use the 
     phrase ``Your kind are the majority now.'' For another Asian 
     American owner, when his workers took items from the trash 
     bins he was told to stop his workers from doing so. As ``You 
     may be a nice guy, but you are not one of us.''
       The exclusion of minority businesses from informal business 
     networks such as the Associated General Contractors. Or not 
     invited to go golfing with them, even when the other group 
     was looking for a foursome.
       The refusal to use minority businesses on private jobs even 
     when they are used on government jobs where minority business 
     programs are in place. For example, Nibbi Brothers 
     Construction will use numerous minority firms when doing 
     public works projects (and the locale's program encourages 
     minority participation) but not ask them to bid on their 
     private works projects. This was also true for a general 
     contractor (SJ Amoroso) that uses minority firms in their 
     public works jobs but one white subcontractor almost 
     exclusively for their roofing work, in their private works 
     projects.
       The existence of the old boys network to justify doing 
     business with one's own cronies. For example, with Asian 
     firms that have become prime contractors, white 
     subcontractors often won't bid for the subcontracting work, 
     or will hedge their bids and draw out the bidding process in 
     deciding whether they want to work with a minority prime 
     contractor
       The non-enforcement of nondiscrimination requirements and 
     disparate treatment by government inspectors. For example, 
     when as the prime contractor and your project is audited, all 
     certified payrolls are asked of your minority subs, but your 
     white sub will not be asked to provide a certified payroll. 
     In another case with an institution in the City, the 
     inspector would not approve the work, and make additional 
     demands that were not put it in writing. For example, he 
     demand that a electrical panel be explosion proof though it 
     was not required by the specs. He also demanded that 
     materials be UL (Underwriters Laboratories) listed although 
     the specs did not require it. Also, when the Asian prime 
     contractor reported the error of his white subcontractor to 
     the engineer, he was told that this was not acceptable. 
     However, when the white subcontractor reported his error to 
     the white engineer the error was allowed to stand without 
     correction.
       The bundling of contracts which minority businesses could 
     bid for if not for bundling. For example, when work is 
     required for a number of school sites, a number of 3-4 
     schools may be bundled even when the type of work in each 
     school is different. This will bring the total project and 
     bonding requirements to $10 million dollar when without 
     bundling the individual projects would cost about $2-3 
     million dollars.
       The tendency to pay minority contractors slower or not at 
     all compared to white contractors. For example, San Francisco 
     city departments and institutions have a poor reputation for 
     paying in a timely manner and so the cumulative debt on a 
     number of projects/contracts owed to Asian businesses has 
     been in excess of $1 million dollars.
       The provision of different quotes from suppliers to 
     companies depending upon the race of the business owner, or 
     to provide those supplies at an exorbitant rate to a minority 
     contractor.
       The refusal to provide higher capacity bonds.
       Our nation's small businesses are the backbone of this 
     country's economy and the obstacles that impede the successes 
     of U.S. businesses have enormous impact on the local 
     economies these businesses support as well as the nation at 
     large. This is especially true for minority-owned businesses 
     that not only contribute to the country's economic base but 
     have also traditionally provided jobs for minority youth and 
     adults in ways that majority-owned business have not. As 
     such, removing obstacles facing minority

[[Page 30759]]

     businesses is critical not only for our economy but for our 
     nation's minority youth.
       Minority contractors have a right to expect unbiased 
     treatment in the awarding of contracts. The 1207 Program is a 
     valuable means by which the federal government demonstrates 
     fairness and equity in the area of government contracts. It 
     is vitally important that the federal government recognizes 
     and rectifies some of the problems faced by minority 
     businesses across the country. The government's commitment to 
     equality in the economic marketplace is an ongoing 
     responsibility of our government, and the reauthorization of 
     1207 not only is in keeping with the spirit of that 
     commitment but provides leadership by example to local 
     government, banks, customers and suppliers that interact with 
     minority-owned businesses.
           Respectfully submitted,

                                               Edmund Y. Tong,

                                       Program Manager, Business &
                                    Economic Development Division.

  Mrs. CLINTON. Mr. President, the Senate is considering today the 
Department of Defense authorization conference report for the 2006 
fiscal year. As a member of the Senate Armed Services Committee, I have 
attended numerous hearings and participated in the markup of this 
legislation. And I want to commend the Chairman of the Senate Armed 
Services Committee, Senator Warner, and the ranking member, Senator 
Levin, for the serious, bipartisan approach they took in preparing the 
Senate version of the bill.
  The DOD authorization bill is critically important, particularly with 
our servicemen and women are serving bravely in Iraq, Afghanistan and 
around the world. We owe it to our men and women in uniform to do 
everything we can to support them.
  While what has emerged from conference is not perfect, the bill 
contains a wealth of positive provisions in keeping with the 
responsibility of Congress to our men and women in uniform.
  When we first considered the DOD authorization bill in July, the 
Senate accepted an amendment Senator Graham and I offered to make 
Tricare available to all National Guard members and reservists during 
the House-Senate conference, we reached a compromise which will offer 
great opportunities for Guard members and reservists to join the 
Tricare Program.
  At a time when approximately 40 percent of the men and women serving 
in Iraq are members of the National Guard and Reserve, and as Guard 
members and reservists are a serving in a new and expanding role in the 
global war on terror, we ought to do all we can to ensure that these 
men and women have the services and support they need and deserve. This 
bill marks further progress in this effort, increasing access to health 
benefits for our National Guard and Reserve and their families in New 
York and around the country. Providing the Guard and Reserves, as well 
as their families, with adequate support and benefits is the least that 
a grateful nation can do. Under the provision, all members of the 
Selected Reserve are eligible to enroll in the military health care 
program.The premiums are based on categories of eligibility:
  Category 1: Members of the Selected Reserve who are called to active 
duty qualify for TRICARE Reserve Select, TRS. Under this program, 
established last year, a reservist would accumulate 1 year of TRS 
coverage for every 90 days of Active-Duty service. Monthly premiums 
during the years of accumulated eligibility are only 28 percent of the 
program cost. The Government picks up the remaining 72 percent. As has 
always been the case, coverage is free of charge while on active duty. 
This bill now permits accumulation of earned periods of coverage for 
frequently deployed personnel. In addition, it authorizes 6 months of 
transitional coverage for family members following the death of the 
Reserve member, if the member dies while in an inactive status.
  Category 2: Members of the Selected Reserve who are not called to 
active duty and who otherwise do not qualify for health insurance due 
to unemployment or lack of employer-provided coverage are eligible to 
enroll in TRICARE for a 50-percent cost-sharing premium. The Government 
will pay the remaining 50-percent.
  Category 3: Members of the Selected Reserve who do not fit into 
either of the above categories but would like to participate in TRICARE 
are eligible to do so for an 85-percent cost share. Employers are 
allowed and encouraged to contribute to the reservist's share. The 
Government contributes 15 percent of the costs.
  This compromise is an important step forward in improving health care 
access for our Nation's guardsmen and reservists.
  It is important to note as well that this expansion was the fruit of 
a bipartisan effort by Senator Graham and myself, along with my 
colleagues Senator Leahy and Senator DeWine.
  The conference report also includes another provision I offered, this 
one with Senator Collins, to improve financial education for our 
soldiers. It is a problem that has plagued military service men and 
women for years: a lack of general knowledge about the insurance and 
other financial services available to them.
  This provision instructs the Secretary of Defense to carry out a 
comprehensive education program for military members regarding public 
and private financial services, including life insurance and the 
marketing practices of these services, available to them. This 
education will be institutionalized in initial and recurring training 
for members of the military. This is important so that we don't just 
make an instantaneous improvement, but a truly lasting benefit to 
members of the military.
  The legislation also requires that counseling services on these 
issues be made available, upon request, to members and their spouses. 
It is very important to include the spouses in this program because we 
all know that investment decisions should be made as a family. Too many 
times, a military spouse has to make these decisions alone, while a 
husband or wife is deployed.
  This amendment requires that during counseling of members or spouses 
regarding life insurance, counselors must include information on the 
availability of Servicemembers' Group Life Insurance, SGLI, as well as 
other available products.
  I am happy that my fellow Senators support this legislation and proud 
that the amendment was adopted in conference.
  The legislation also includes a provision which will ensure the 
availability of special pay for members during rehabilitation from 
wounds, injuries, and illnesses incurred in a combat zone. Earlier this 
year, I learned of the story of Army SPC Jeffrey Loria, who was 
encountering pay problems while recovering at Walter Reed Army Medical 
Center. My inquiry to the Army in this matter corrected Specialist 
Loria's problems and also led to the discovery of pay problems for at 
least 129 other soldiers. I continued to follow up on the plight of 
wounded soldiers when I questioned each of the service secretaries 
about this topic in early March 2005, asking if they would support 
efforts to ensure that wounded Guard members and reservists did not 
lose their combat pay allowance while in a military hospital. Their 
unanimous answer was yes. I am proud to see the provision incorporated 
into the bill.
  In addition, I am pleased that the House and Senate have agreed to 
provide hundreds of members of the National Guard who served at Ground 
Zero after the terrorist attacks the full Federal retirement credit for 
their service that they deserve. Many of the soldiers who served at 
Ground Zero, often for extended periods, were not officially put on 
Federal active duty and so did not receive Federal military retirement 
credit. I was proud to fight for this legislation as a House-Senate 
conferee, and I want to thank Congresswoman Maloney and Congressman 
King for their hard work to see the provision through the House of 
Representatives. I applaud Congress for accepting our arguments for 
those brave men and women of the National Guard who gave their all 
after the September 11 attacks and absolutely deserve this credit.
  I am also glad to see that the final conference report includes no 
language to restrict the role that women can play in our Armed Forces. 
Women have

[[Page 30760]]

a long history of proud service in our Armed Forces, and more than 
200,000 women currently serve, making up approximately 17 percent of 
the total force. Thousands of women are currently serving bravely in 
Iraq, Afghanistan, and elsewhere. During my own visits to Iraq--as I am 
sure that many of my colleagues who have also visited Iraq can also 
attest--I witnessed women performing a wide range of tasks in a 
dangerous environment.
  Our soldiers, both men and women, volunteered to serve their Nation. 
They are performing magnificently. There should be no change to 
existing policies that would decrease the roles or positions available 
to women in the Armed Forces. Earlier this year, I introduced, along 
with several of my colleagues, a sense-of-the Senate resolution stating 
that there should be no change to existing laws, policies, or 
regulations that would decrease the roles or positions available to 
women in the Armed forces.
  Finally, I want to highlight several other provisions in the 
legislation that honor the commitment of this Congress to our men and 
women in uniform. The final bill includes a 3.1-percent pay raise for 
all military personnel as well as increases to the maximum amount of 
assignment incentive pay and hardship duty pay that our servicemen and 
servicewomen receive. The bill also calls for an increase of $60 
million for childcare and family assistance services to support Active-
Duty and Reserve military families.
  Also included were measures to bolster the support and gratitude our 
Nation shows for the families of our men and women in uniform who have 
lost their lives in service to our country. The bill increases the 
survivor benefits to $100,000 for all Active Duty military decedents; 
payments would be retroactive, to include all those lost since the 
commencement of Operation Enduring Freedom. In addition, the conference 
report increases TRICARE benefits for the surviving children of those 
who have lost their lives while on active duty and calls for the 
establishment of a uniform policy on casualty assistance to improve the 
services provided to survivors and next of kin.
  I am proud to support these provisions and proud to do all I can for 
these families.
  Despite the positive sections of the conference report, many of which 
I have outlined above, there are also portions of the authorization 
bill that are deeply troubling. I fear that included in a bill that 
does so much to support our men and women in uniform are provisions 
that might also do a disservice to these brave Americans.
  One in particular is the Graham-Levin-Kyl amendment, included in the 
conference report, governing the treatment of detainees at Guantanamo 
Bay.
  Like all of my colleagues, I am deeply troubled by the circumstances 
that have opened our Federal courts to enemy combatants. Senator Graham 
is correct that the present level of accessibility to our courts by 
individuals who would do us harm is unprecedented in our Nation's 
history.
  However, the seeds of this situation were sown when the President 
chose our course for the war against terror. Rather than treating our 
detainees in accordance with the governing principles of military 
engagement, he chose to institute policies that demonstrate disrespect 
for the rule of law and have resulted in lowering our country's moral 
standing in the world. Had the President chosen instead to respect 
international conventions that provide due process protections, we 
would not be facing the unprecedented problem of having to make our 
courts open to our enemies.
  I agree that this is an area long overdue for reform. Although it 
left much to be desired, I voted in favor of the Graham-Levin-Kyl 
amendment in its original form because it was an improvement over a 
harsh measure that would have eliminated almost entirely a detainee's 
ability to challenge his or her detention. In conference, however, 
House negotiators once again undermined much of the thoughtful 
deliberation that went into crafting the Graham-Levin-Kyl compromise, 
stripping out important provisions that would have prohibited the 
admission of evidence obtained through ``undue coercion'' and further 
limiting legal recourse available to detainees.
  We must work toward a system that corrects the missteps made by the 
President and adopt a well-thought-out set of procedures that respects 
the rule of law and restores our Nation to its proper standing in the 
world. The system outlined by the Graham-Levin-Kyl amendment as 
provided in the DOD Authorization conference report falls short of this 
measure.
  The Defense authorization conference report contains a great deal 
that we in this body can look to with pride. That is why I support the 
bill as a whole and why I voted in favor of it. We face real challenges 
and threats as a nation, and our men and women in uniform are, every 
single day, serving with courage on the front lines in defense of our 
values and our way of life. I do not vote without concern, however, in 
light of a few troubling provisions which I fear do not serve the 
interests of our country or our troops.
  Mr. KERRY. Mr. President, the fiscal year 2006 Defense Authorization 
Act contains a number of provisions that take an important step towards 
the Military Family Bill of Rights I believe we need.
  Among the final provisions, the legislation authorizes an increase of 
the death gratuity to $100,000 for all active-duty service members. I 
was pleased to originally offer this provision as an amendment to the 
fiscal year 2005 supplemental appropriations act earlier this year. I 
was happy to work with Senator Levin on this bill to bring this 
provision into reality.
  I offered another amendment on the supplemental last spring to 
increase to 1 year the length of time surviving families of service 
members may reside in Government housing or receive the basic allowance 
for housing. It was signed into law then, but because it was part of 
the supplemental, it expired with the end of the fiscal year. The 
fiscal year 2006 National Defense Authorization Act makes this 
extension permanent.
  I am also pleased that the final bill includes authorization for 
increased funding for Project Sheriff--an initiative of the Office of 
Force Transformation to provide our soldiers and marines with a full 
spectrum of lethal and nonlethal weapons when engaging enemies in an 
urban environment.
  The Defense authorization bill includes other important provisions 
for our country: a 3.1-percent pay raise for military personnel; 
increased Army and Marine Corps end strength, and an expansion of 
TRICARE benefits for members of the Selected Reserve and their 
families.
  Taken together, these provisions are important milestones. They are 
further testament of this Congress's and this country's determination 
to maintain the best trained, best equipped, best prepared, and most 
capable military on earth. It is also a recognition of the important 
contributions made by military families--families who give so much to 
this country.
  When I voted for this legislation on the Senate floor, one essential 
aspect was that the limitations placed on the review of habeas corpus 
claims of Guantanamo Bay detainees were prospective only. I am pleased 
to say that the bill's effective date was not altered in conference. As 
a result, as the Supreme Court held in Lindh v. Murphy, it still 
employs the normal rule that our laws operate prospectively.
  Mr. FEINGOLD. Mr. President, I am pleased that the Senate was finally 
able to debate and pass the Defense Authorization Act. It is 
indefensible that this important legislation was put on the backburner 
for so long; held back until the eleventh hour by the majority for 
various special interests and political reasons. The American people 
and the troops deserve better than that.
  I am pleased that this bill includes important provisions for our men 
and women in uniform and their families. I am very pleased that we were 
able to include a 3.1 percent pay raise for all of our men and women in 
uniform as well as a host of bonus and incentive pays to help the 
military in its recruiting and retention efforts. The conference report 
also contains an important provision that permanently increases the

[[Page 30761]]

death gratuity for those killed on active duty. Although the Senate's 
strong bipartisan efforts to make TRICARE available for the Guard and 
Reserve were again watered down in the conference report, the final 
bill still includes significant improvements in TRICARE access for all 
of our citizen-soldiers. These are just a few examples of the important 
provisions contained in this bill.
  I am proud that the Congress has finally, definitively, sent such a 
strong message to the administration about the treatment of detainees 
by enacting the amendment of the senior Senator from Arizona. The lack 
of a clear policy regarding the treatment of detainees has been 
confusing and counter-productive. It has left our men and women in 
uniform in the lurch with no clear direction about what is and is not 
permissible. This failure on the part of the administration has sullied 
our reputation as a Nation, and hurt our efforts to promote democracy 
and human rights in the Arab and Muslim worlds. I have been proud to 
support Senator McCain's amendment on interrogation policy because it 
should help to bring back some accountability to the process and 
restore our great Nation's reputation as the world's leading advocate 
for human rights.
  Although I voted for the Department of Defense authorization bill, I 
am disappointed with the mixed messages that the Senate continues to 
send to the administration and the country on issues related to the 
detainees held at Guantanamo Bay. Even as we enact the important McCain 
amendment on torture, the conference report also includes the Graham 
amendment, which remains deeply troubling because of the restrictions 
it places on judicial review of detainees held at Guantanamo. However, 
it is important to note that the provision is limited in critical ways. 
The provision on judicial review of military commissions covers only 
``final decisions'' of military commissions, and only governs 
challenges brought under that provision. In addition, the language in 
section 1405(e)(2) that prohibits ``any other action against the United 
States'' applies only to suits brought relating to an ``aspect of 
detention by the Department of Defense.'' Therefore, it is my 
understanding that this provision will not affect the ongoing 
litigation in Hamdan v. Rumsfeld before the Supreme Court because that 
case involves a challenge to trial by military commission, not to an 
aspect of a detention, and of course was not brought under this 
provision. Furthermore, it is important to make clear that this 
provision should not be read to endorse the current system of trial by 
military commission for those at Guantanamo Bay. This provision 
reflects, but certainly does not endorse, the existing status of those 
military commissions, which is that they are currently legal under a 
decision of the DC Circuit. However, the Supreme Court has not yet 
addressed the legality of such military commissions, and this amendment 
should not be read as any indication that Congress is weighing in on 
that issue. While I would have strongly preferred that this amendment 
not be included in the conference report, I think it is important to 
note these limitations on its practical effect.
  I am pleased that the conference report contained a number of 
provisions I authored, including my amendment to enhance and strengthen 
the transition services that are provided to our military personnel by 
making a number of improvements to the existing transition and 
postdeployment/predischarge health assessment programs. The conference 
report also includes my amendment that corrects a flaw in the law that 
unintentionally restricted the number of families of injured 
servicemembers who qualify for travel assistance. The change in the law 
now ensures that families of injured servicemembers evacuated to a U.S. 
hospital get at least one trip paid for so that these families can 
quickly reunite and begin recovering from the trauma they have 
experienced.
  The military's high operational tempo over the last 4 years led it to 
keep thousands of troops beyond their contractual separation dates 
through a policy often referred to as ``stop-loss.'' The Pentagon did a 
poor job of clearly disclosing to volunteers that they could be stop-
lossed and so many who thought they had completed their military 
service found themselves deployed to a combat zone. It is not difficult 
to understand how this policy turned upside down the lives of the 
impacted troops and their families. The conference report includes an 
amendment I authored requiring the Department of Defense to report on 
the steps it is taking to clearly communicate the stop-loss policy to 
potential enlistees and re-enlistees. I hope that, by pushing the 
Department to report on the actions it is taken to ensure that 
potential recruits know the terms of their service, the Department will 
take quick action to address this problem.
  Despite the unprecedented levels of defense spending, the Government 
Accountability Office recently found that the Department of Defense is 
not only doing a poor job in replacing equipment that is being rapidly 
worn out but is not even tracking its equipment needs. Military 
readiness has suffered as a result. I authored an amendment retained in 
the conference report requiring DOD to submit a comprehensive report in 
conjunction with the President's annual budget request that details 
DOD's program strategies and funding plans to ensure that DOD's budget 
decisions address these equipment deficiencies. Such a report will make 
DOD's equipment needs more transparent and will allow Congress to 
provide more effective oversight and hold the Department accountable.
  I am disappointed that the conference report did not maintain the 
bipartisan amendment I authored establishing the Civilian Linguist 
Reserve Corps, CLRC, pilot project. Our Government is in desperate need 
of people with critical language skills and the CLRC model, which is 
strongly supported by the Defense Department, has the potential of 
addressing this need in a fiscally responsible manner. It is 
unfortunate that the conferees chose to go another route.
  In conclusion, I must note, as I have in all of the 13 years I have 
served in the Senate, my disappointment that we continue the wasteful 
trend of spending billions of dollars on Cold War-era weapons systems 
while not fully funding our current needs. This enormous bill could 
have been better. However, on balance this legislation contains many 
good provisions for our men and women in uniform and their families and 
that is why I support it.
  Mr. CORNYN. Mr. President, I express my concern regarding the 
adoption of the McCain amendment as part of the National Defense 
Authorization Act. Although I am pleased the legislation now includes 
important protections for the brave men and women who are interrogating 
terrorists around the world, I am nevertheless concerned that this 
legislation may hinder our intelligence collection activities.
  Many supporters of the amendment, including the mainstream media, 
claim that the legislation ``bans'' torture--leaving the impression 
that torture was somehow legal under our current laws. This is 
incorrect. Torture is prohibited under current U.S. law and treaty 
obligations, and President Bush has unequivocally stated that the 
United States will not engage in torture, and we will treat all 
detainees in a humane fashion. In fact, this legislation will likely 
prohibit current legal interrogation techniques that stop well short of 
torture and are providing valuable intelligence information.
  We all agree that in order to achieve victory in the war on terror, 
the United States must have the very best intelligence we can acquire 
through technical means and the interrogation of captured terrorists. 
Many of these terrorists are highly trained to resist U.S. 
interrogation techniques. Although I adamantly oppose torture, I 
believe we must use every legal means--including aggressive 
interrogation methods that some may find objectionable--to get 
intelligence that will save American lives. I voted against the McCain 
amendment out of a deep concern that it would potentially limit certain 
interrogation methods that may be necessary to save American lives.

[[Page 30762]]

  We know that aggressive--yet humane--interrogation techniques were 
instrumental in gaining valuable information from Khalid Sheikh 
Mohammed, a key architect of the 9/11 attacks, and other terrorists in 
U.S. custody. We must not abandon these important and legal questioning 
methods for the sake of political correctness. We must send a strong 
signal to terrorists everywhere that if they are captured by the United 
States, while they will be treated humanely, we will use every legal 
method to force them to reveal their designs on the United States.
  Torture does not produce good intelligence. People who are tortured 
will tell their captors anything they want to hear and not the truth. 
More importantly, torture does not represent the values of America and 
all that we stand for as a Nation. However, we should not unnecessarily 
limit our military and intelligence agencies from aggressively 
interrogating those individuals who wish to kill innocent Americans. We 
must always remember that the terrorists who attacked America on 9/11 
are relentless in their efforts to destroy us.
  Finally, some have argued that the passage of the McCain amendment 
would have somehow prevented the heinous abuses that we saw at Abu 
Ghraib prison. This is patently false. The individuals who committed 
the abuses at Abu Ghraib knew their actions were against the law, yet 
they violated core American values. The perpetrators of these crimes 
are now being prosecuted, and the military has undertaken comprehensive 
reforms to prevent future abuses. As noted by the independent 
Schlesinger Panel in its report on detainee operations: ``There is no 
evidence of a policy of abuse promulgated by senior officials or 
military authorities.'' Our military has detained over 80,000 
individuals and the instances of detainee abuse are extremely rare and 
they are prosecuted when discovered. To imply that our military or 
intelligence services are torturing detainees as a matter of policy is 
a distortion of reality.
  In our efforts to demonstrate to the world that the United States 
does not torture terrorists, we must not weaken our ability to 
prosecute the war on terror. Our military and intelligence personnel 
must have the tools--including aggressive interrogation techniques--to 
question captured terrorists. I remain concerned that the McCain 
amendment, although admirable in its intent, may hinder our efforts to 
collect vital intelligence, and I make no apologies for endorsing all 
legal means of obtaining actionable intelligence that will save 
American lives.
  Mr. GRAHAM. Mr. President, today I rise to comment upon the recently 
passed Defense authorization bill. That bill contained a Graham-Levin-
Kyl amendment which dealt with the Combatant Status Review Tribunals 
and Military Commissions at Guantanamo Bay. I was very pleased to join 
with Senators Levin and Kyl and others to offer this amendment, and I 
want to thank them for working so hard on this issue.
  In rising today, I address one particular section of our amendment, 
the requirement that the tribunals consider whether evidence was 
coerced. In drafting this section, we were compelled to recognize three 
basic facts.
  First, we were compelled to recognize the impracticality of importing 
domestic criminal protections into a forum constructed to administer 
what are essentially enemy soldiers; combatants for a very unique 
enemy, an enemy without uniforms, capitals, or cohesive command 
structures, but combatants nonetheless.
  Second, we were forced to address the necessity of relying on 
evidence without a complete picture of how it was obtained; evidence 
that might be obscured by the fog of war, derived from battlefield 
intelligence, from classified sources, or even through unknown 
circumstances.
  Lastly, we were required by our constitutional responsibilities to 
err on the side of protecting the American people. In instances where 
there is some doubt as to the evidence or the status of the detainee, 
the benefit of the doubt must go to the government as it seeks to 
discharge its first duty, providing for the common defense of our 
people.
  In our efforts to balance these interests, we initially included an 
exclusionary rule for evidence obtained through ``undue coercion.'' We 
felt that the term ``undue coercion'' reflected the reality that, in 
the national security context, there is some level of coercive 
interrogation that is acceptable. We also understand that, at some 
point, the reliability of the information can be questioned as a result 
of the methods used to obtain it. I believe Guantanamo Bay serves a 
unique and necessary purpose in the war on terror, but we need to 
ensure that we are holding the right people.
  However, upon reconsideration, we came to believe that the term 
``undue coercion,'' being a new term without legal precedent, might not 
be as instructive as we required. Furthermore, a number of the military 
judge advocates we consulted were concerned that the exclusionary rule 
could limit them from considering evidence tainted by only an 
allegation of mistreatment.
  Therefore, after much consultation with legal professionals, we 
decided to eliminate the ``undue'' qualifier. Unfortunately, striking 
the qualifier also eliminated the consideration of whether the 
information was obtained by acceptable sources and methods. 
Accordingly, we decided to refrain from mandating the exclusionary 
rule. Instead, our language requires, for the first time, the panels to 
consider the source of the information and the information's 
reliability. I am very confident our language provides for the proper 
consideration.
  Now, to be sure, our language also provides for the benefit of the 
doubt to go to the government. In granting this benefit, however, we 
recognize that we are fundamentally different from our adversaries. 
Though we may fail at times, we strive to be fair and just and 
honorable. And because our military men and women exemplify those 
values, we can trust them to fairly administer this process. In the 
end, we must remember that this is a military administrative process, 
and, with the proper congressional and judicial oversight provided by 
our amendment, we must trust our professional military officers to do 
their jobs.
  In our amendment as a whole, we sought to protect our national 
security while still striking the proper balance between aggressively 
interrogating detainees and providing a competent military 
administrative process for their status determination. I am confident 
that this new evidentiary standard serves that goal.
  Mr. DURBIN. Mr. President, I rise to speak about the Detainee 
Treatment Act of 2005, which is included in the Defense authorization 
conference report.
  The Detainee Treatment Act includes two provisions that were adopted 
in the Senate version of the Defense authorization bill: the McCain 
antihuman torture amendment and the Graham-Levin Detainee Amendment.
  I was an original cosponsor of the McCain Antitorture amendment. I 
have spoken at length about the vital importance of this amendment on 
several other occasions. At this time, I simply want to reiterate a 
couple of points.
  Twice in the last year and a half, I have authored amendments to 
affirm our Nation's long standing position that torture and cruel, 
inhuman, or degrading treatment are illegal. Twice, the Senate 
unanimously approved my amendments. Both times, the amendments were 
killed behind the closed doors of a conference committee--at the 
insistence of the Bush administration.
  I am pleased that the administration has changed its position. As a 
result, it will now be absolutely clear that under U.S. law all U.S. 
personnel are prohibited from subjecting any detainee anywhere in the 
world to torture or cruel, inhuman, or degrading treatment.
  The amendment defines cruel, inhuman, or degrading treatment as any 
conduct that would constitute the cruel, unusual, and inhumane 
treatment or punishment prohibited by the U.S. Constitution if the 
conduct took place in the United States. Under this standard, abusive 
treatment that would be unconstitutional in American

[[Page 30763]]

prisons will not be permissible anywhere in the world.
  Let me give you some examples of conduct that is clearly prohibited 
by the McCain amendment.
  ``Waterboarding'' or simulated drowning is a technique that was used 
during the Spanish Inquisition. It is clearly a form of torture. It 
creates an overwhelming sense of imminent death. It amounts to a clear-
cut threat of death akin to a mock execution, which is expressly called 
mental torture in the U.S. Army Field Manual.
  Sleep deprivation is another classic form of torture which is 
explicitly called mental torture in the U.S. Army Field Manual. It has 
been banned in the United Kingdom and by a unanimous Israeli Supreme 
Court, and the U.S. Supreme Court has repeatedly declared it 
unconstitutional, once citing a report that called it ``the most 
effective form of torture.''
  The amendment also clearly bans so-called stress positions or 
painful, prolonged forced standing or shackling. Again, the U.S. Army 
Field Manual expressly calls these techniques ``physical torture.'' 
Moreover, one of the most recent Supreme Court cases on the extent of 
the prohibitions on ``cruel and unusual'' punishments expressly 
outlawed the use of painful stress positions, denouncing their 
``obvious cruelty'' as ``antithetical to human dignity.''
  The amendment bans the use of extreme cold, or hypothermia, as an 
interrogation tactic. Hypothermia can be deadly. Clearly it is capable 
of causing severe and lasting harm, if not death, and consequently is 
banned by both the Field Manual and the Constitution.
  The amendment bans punching, striking, violently shaking, or beating 
detainees. Striking prisoners is a criminal offense and clearly 
unconstitutional. Moreover, while assaults like slapping and violent 
shaking may not seem as dangerous as beatings, shaking did, in fact, 
kill a prisoner in Israel, and the tactic has been banned by the 
Israeli Supreme Court. Numerous U.S. Supreme Court cases likewise 
prohibited striking prisoners.
  The amendment bans the use of dogs in interrogation and the use of 
nakedness and sexual humiliation for the purpose of degrading 
prisoners.
  No reasonable person, given the text of the amendment, the judicial 
precedents, and common sense, would consider these techniques to be 
permitted. Any U.S. official or employee who receives legal advice to 
the contrary should think twice before defying the will of the Congress 
on this issue.
  The McCain antitorture amendment will make the rules for the 
treatment of detainees clear to our troops and will send a signal to 
the world about our Nation's commitment to the humane treatment of 
detainees.
  I want to express again my opposition to the Graham-Levin amendment.
  The amendment would essentially eliminate habeas corpus for detainees 
at Guantanamo Bay. In so doing, it would apparently overturn the 
Supreme Court's landmark decision in Rasul v. Bush.
  No one questions the fact that the United States has the power to 
hold battlefield combatants for the duration of an armed conflict. That 
is a fundamental premise of the law of war.
  However, over the objections of then-Secretary of State Colin Powell 
and military lawyers, the Bush administration has created a new 
detention policy that goes far beyond the traditional law of war. The 
administration claims the right to seize anyone, including an American 
citizen, anywhere in the world, including in the United States, and to 
hold him until the end of the war on terrorism, whenever that may be. 
They claim that a person detained in the war on terrorism has no legal 
rights. That means no right to a lawyer, no right to see the evidence 
against him, and no right to challenge his detention.
  In fact, the Government has argued in court that detainees would have 
no right to challenge their detentions even if they claimed they were 
being tortured or summarily executed.
  U.S. military lawyers have called this detention system ``a legal 
black hole.''
  Defense Secretary Rumsfeld has described the detainees as ``the 
hardest of the hard core'' and ``among the most dangerous, best 
trained, vicious killers on the face of the Earth.'' However, the 
administration now acknowledges that innocent people are held at 
Guantanamo Bay. In late 2003, the Pentagon reportedly determined that 
15 Chinese Muslims held at Guantanamo are not enemy combatants and were 
mistakenly detained. Almost 2 years later, those individuals remain in 
Guantanamo Bay.
  Last year, in the Rasul decision, the Supreme Court rejected the 
administration's detention policy. The Court held that detainees at 
Guantanamo have the right to habeas corpus to challenge their 
detentions in Federal court. The Court held that the detainees' claims 
that they were detained for years without charge and without access to 
counsel ``unquestionably describe custody in violation of the 
Constitution, or laws or treaties of the United States.''
  The Graham amendment would protect the Bush administration's 
detention system from legal challenge. It would effectively overturn 
the Supreme Court's decision. It would prevent innocent detainees, like 
the Chinese Muslims, from challenging their detention.
  However, I do want to note some limitations on the scope of the 
Graham-Levin Amendment.
  A critical feature of this legislation is that it is forward looking. 
A law purporting to require a Federal court to give up its jurisdiction 
over a case that is submitted and awaiting decision would raise grave 
constitutional questions. The amendment's jurisdiction-stripping 
provisions clearly do not apply to pending cases, including the Hamdan 
v. Rumsfeld case, which is currently pending before the Supreme Court. 
In accordance with our traditions, this amendment does not apply 
retroactively to revoke the jurisdiction of the courts to consider 
pending claims invoking the Great Writ of Habeas Corpus challenging 
past enemy combatant determinations reached without the safeguards this 
amendment requires for future determinations. The amendment alters the 
original language introduced by Senator Graham so that those pending 
cases are not affected by this provision.
  The amendment also does not legislate an exhaustion requirement for 
those who have already filed military commission challenges. As such, 
nothing in the legislation alters or impacts the jurisdiction or merits 
of the Hamdan case.
  Nothing in the legislation affirmatively authorizes, or even 
recognizes, the legal status of the military commissions at issue in 
Hamdan. That is the precise question that the Supreme Court will decide 
in the next months. Right now, the military commissions are legal under 
a decision of the DC Circuit, and this amendment reflects but in no way 
endorses that present status. It would be a grave mistake for our 
allies around the world to think that we are endorsing this system at 
Guantanamo Bay--a system that has produced not a single conviction in 
the 4 years since the horrible attacks of September 11, 2001.
  This provision attempts to address problems that have occurred in the 
determinations of the status of people detained by the military at 
Guantanamo Bay and elsewhere. It recognizes that the Combatant Status 
Review Tribunal, CSRT, procedures applied in the past were inadequate 
and must be changed going forward. As the former chief judge of the 
U.S. Foreign Intelligence Surveillance Court found, in In Re Guantanamo 
Detainee Cases, the past CSRT procedures ``deprive[d] the detainees of 
sufficient notice of the factual bases for their detention and den[ied] 
them a fair opportunity to challenge their incarceration,'' and allowed 
``reliance on statements possibly obtained through torture or other 
coercion.'' Her review ``call[ed] into serious question the nature and 
thoroughness'' of the past CSRT process. The former CSRT procedures 
were not issued by the Secretary of Defense, were not reported to or 
approved by Congress, did not provide for final determinations by

[[Page 30764]]

a civilian official answerable to Congress, did not provide for the 
consideration of new evidence, and did not address the use of 
statements possibly obtained through coercion.
  To address these problems, this provision requires the Secretary of 
Defense to issue new CSRT procedures and report those procedures to the 
appropriate committees of Congress; it requires that going forward, the 
determinations be made by a Designated Civilian Official who is 
answerable to Congress; it provides for the periodic review of new 
evidence; it provides for future CSRTs to assess whether statements 
were derived from coercion and their probative value; and it provides 
for review in the DC Circuit Court of Appeals for these future CSRT 
determinations.
  Mr. REID. In a statement on November 15 of this year, I explained my 
vote on amendments offered by Senators Graham, Levin, and Bingaman 
regarding access to the Federal courts for detainees at Guantanamo Bay. 
Now that a conference report containing a revised version of these 
provisions is before us, I want to reiterate a few points.
  I voted in favor of the Graham-Levin amendment because I believed it 
was better than the original Graham amendment. Similarly, I will vote 
in favor of this conference report because I favor the bill as a whole. 
But I have mixed views on the detainee provisions of the conference 
report, now in title X as the ``Detainee Treatment Act of 2005.''
  On the one hand, I oppose stripping the courts of jurisdiction to 
hear habeas corpus petitions. The writ of habeas corpus is one of the 
pillars of the Anglo-American legal system, and limiting the Great Writ 
interferes with the independence of the judiciary and violates 
principles of separation of powers. The action we take today fails to 
address adequately the Bush administration's flawed policy of detaining 
suspects indefinitely, in secret, and without access to meaningful 
judicial oversight.
  On the other hand, I support provisions in this bill that require 
improvements in the procedures and oversight of the Combatant Status 
Review Tribunals. It is important to ensure that status determinations 
of those detained at Guantanamo Bay and elsewhere are conducted in 
accordance with basic requirements of due process and fairness. The 
Defense Department must address the serious problems identified earlier 
this year by Judge Green, the former chief judge of the U.S. Foreign 
Intelligence Surveillance Court.
  I am also pleased that the final law would allow courts to consider 
whether the standards and procedures used by the Combatant Status 
Review Tribunals are consistent with the Constitution and U.S. laws, 
that it does not apply retroactively to pending habeas claims that 
challenge past enemy combatant determinations reached without the 
safeguards this amendment requires, and that it would allow for court 
review of the actions of military commissions. I commend Senator Levin 
for his work on these issues.
  On balance, I support the final detainee provisions with the 
following understandings:
  First, I am pleased that Senator Graham's original language was 
altered so that the Supreme Court would not be divested of jurisdiction 
to hear the pending case of Hamdan v. Rumsfeld. In fact, subsection (h) 
of section 1005 makes clear that the DC Circuit and other courts will 
maintain jurisdiction to hear all pending habeas cases, in accordance 
with the Supreme Court's decision in Lindh v. Murphy.
  Second, on a related but distinct point, I believe this act has no 
impact on the Supreme Court's ability to consider Hamdan's challenge at 
this pre-conviction stage of the military commission proceedings. As 
the DC Circuit held in Hamdan earlier this year, Ex Parte Quirin is a 
compelling historical precedent for the power of civilian courts to 
entertain challenges that are raised during a military commission 
process. Nothing in these sections requires the courts to abstain at 
this point in the litigation. Paragraph 3 of subsection 1005(e) governs 
challenges to ``final decisions'' of the military commissions and does 
not impact challenges like Hamdan's other cases not brought under that 
paragraph.
  Third, this legislation does not represent congressional acquiescence 
in or authorization of the military commissions unilaterally 
established by the executive branch at Guantanamo Bay. Whether these 
commissions are legal is precisely the question the Supreme Court will 
soon decide in the Hamdan case. Rather, this legislation reflects the 
fact that the military commissions are currently legal under the DC 
Circuit's decision in Hamdan. We legislate against this backdrop in 
setting up a procedure to challenge the commissions, but we do not 
necessarily endorse the use of such commissions in this manner.
  I hope that the Judiciary Committee soon considers legislation to 
define the rights of the detainees at Guantanamo with greater care and 
to develop sensible procedures for enforcing those rights. Congress 
should be guided by principles of human rights and the rule of law upon 
which this Nation was founded.
  The PRESIDING OFFICER. The question is on agreeing to the conference 
report.
  The conference report was agreed to.
  Mr. WARNER. Mr. President, I move to reconsider the vote.
  Mr. LEVIN. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________




                    EXTENSION OF THE USA PATRIOT ACT

  The PRESIDING OFFICER. Under the previous order, the Senate will 
proceed to a bill at the desk relating to the extension of the PATRIOT 
Act which the clerk will report by title.
  The legislative clerk read as follows:

       A bill (S. 2167) to amend the USA PATRIOT Act, and for 
     other purposes.

  The Senate proceeded to consider the bill.
  Mr. LEAHY. Mr. President, those of us working constructively to 
extend the USA PATRIOT Act have repeatedly offered to enter into a 
short-term extension while we work out the differences and improve this 
reauthorization legislation. The extension we are passing for 6 months 
is a commonsense solution that allows us to take a few more weeks to 
get this right for all Americans.
  A majority of Senators--Republicans, Democrats, those Senators who 
voted for cloture, those who voted against cloture on the conference 
report that failed to pass the Senate--have joined on a letter urging 
the Republican leader to act on this commonsense offer by calling up a 
short-term extension bill.
  As soon as it became apparent that the conference report filed by the 
Republican leadership would be unacceptable to the Senate, I joined on 
Thursday, December 8, in urging a 3-month extension to work out a 
better bill. On the first day the Senate was in session, Monday, 
December 12, Senator Sununu and I introduced such a bill, S. 2082. We 
sent out a Dear Colleague letter to other Senators on December 13 and 
that bipartisan bill now has 47 cosponsors.
  We offered this solution before the vote on the Senate floor last 
Friday. Contrary to the false claims and misrepresentations by some, 
there is no effort to do away with the PATRIOT Act. That is just not 
true. Along with others here in the Senate, I am seeking to mend and 
extend the PATRIOT Act, not to end it. There is no reason why the 
American people cannot have a PATRIOT Act that is both effective and 
that adequately protects their rights and their privacy.
  Republican and Democratic Senators joined together last week to say 
we can do better to protect Americans' liberties while ensuring our 
national security is as strong as it can be.
  Every single Senator--Republican and Democratic--voted in July to 
mend and extend the PATRIOT Act. I have joined with Senators of both 
parties in an effort to enact a short-term extension so that we can 
keep working to improve the bill. This is standard operating procedure 
in the Congress where we pass extensions in the nature

[[Page 30765]]

of continuing resolutions regularly. The Sununu-Leahy bill to provide a 
6-month extension, S. 2167, accomplishes this purpose. I thank the 
majority leader and Democratic leader for their leadership in passing 
this measure.
  A clear majority of the Senate, Republican and Democrats, have come 
together and requested a short-term extension. These are Senators who 
voted for cloture and Senators who voted against cloture in an effort 
to improve the long-term extension of the PATRIOT Act. These are 
Republicans and Democrats.
  No Democratic Senator opposes extending the PATRIOT Act. All of the 
52 Senators who signed the letter to the majority leader urged its 
extension.
  Our Nation is a democracy, founded on the principles of balanced 
government. We need to restore checks and balances in this country to 
protect us all and all that we hold dear. Our Congress and our courts 
provide checks on the abuse of executive authority and should protect 
our liberties.
  We need to write the law so that Congress has provided its check in 
the law and so that courts can play their role, as well. All Americans 
need to take notice and need to demand that their liberties be 
maintained. We can do better and must do better for the American 
people.
  Just this week, we celebrated the 214th anniversary of the passage of 
the Bill of Rights, the first 10 amendments to the Constitution of the 
United States. These amendments ensure some of our most vital freedoms, 
including the freedom of speech, religion and press in the first 
amendment. Within these amendments is also the right ``to be secure in 
our persons, houses, papers, and effects, against unreasonable searches 
and seizures.'' The Bill of Rights made clear not only the rights of 
the American people, but also the limitations on the power of 
government.
  Just as we cannot allow ourselves to be lulled into a sense of false 
security when it comes to our national security, we cannot allow 
ourselves to be lulled into a blind trust regarding our freedoms and 
rights. We must remain vigilant on both counts or we stand to lose much 
that we hold dear.
  In arguing for reauthorization of the USA PATRIOT Act, Attorney 
General Alberto Gonzales sought to assure us that ``concerns raised 
about the act's impact on civil liberties, while sincere, were 
unfounded.'' I am not reassured, however.
  We need only pick up a morning newspaper to see how the overreaching 
of the Bush administration plagues our efforts to uphold democracy at 
home and throughout the world. We have seen secret arrests and secret 
hearings of hundreds of people for the first time in U.S. history; the 
abuse of detainees in U.S. custody; detentions without charges and 
denial of access to counsel; and the misapplication of the material 
witness statute as a sort of general preventive detention law. Such 
abuses harm our national security as well as our civil liberties 
because they serve as recruiting tools for terrorists, intimidate 
American communities from cooperating with law enforcement, and, by 
misusing limited antiterrorism resources, make it more likely that real 
terrorists will escape detection.
  We have learned that the Pentagon maintains a secret database 
containing information on a wide cross-section of ordinary Americans. 
It keeps track of people like those in Vermont who planned peaceful 
protests of military recruiters, including one organized by Veterans 
for Peace. It monitored the activities of an antiwar group that met at 
the Quaker Meeting House in Lake Worth, FL, a year ago to plan a 
protest against military recruiting at local high schools.
  Similarly, the FBI also engages in monitoring other ordinary, law-
abiding citizens. Records show that the FBI kept information on 
Greenpeace, the American-Arab Anti-Discrimination Committee, and on 
students and peace activists who attended a conference at Stanford 
University in 2002. In a similar story, a student at the University of 
Massachusetts/Dartmouth reportedly was visited by Federal agents in 
October, after he requested a copy of Mao Tse-Tung's tome on Communism 
called, ``The Little Red Book'' through the University's interlibrary 
loan program. If the FBI is investigating what book a college senior is 
borrowing, what is it that they are not investigating that they should 
be?
  The New York Times reports that after September 11, 2001, when former 
Attorney General John Ashcroft loosened restrictions on the FBI to 
permit it to monitor Web sites, mosques, and other public entities, 
``the FBI has used that authority to investigate not only groups with 
suspected ties to foreign terrorists, but also protest groups suspected 
of having links to violent or disruptive activities.'' For example, 
recently disclosed agency records show that FBI counterterrorism agents 
have conducted surveillance and intelligence-gathering operations on 
groups concerning the environment, animal cruelty, and poverty relief.
  Now we are learning that President Bush has, for more than 4 years, 
been secretly authorizing warrantless surveillance of Americans inside 
the United States. In fact, he acknowledges issuing secret Presidential 
orders to authorize such warrantless surveillance more than 30 times 
since September 11, 2001.
  The U.S. Supreme Court has consistently held for nearly 40 years that 
the monitoring and recording of private conversations constitutes a 
``search and seizure'' within the meaning of the fourth amendment, 
extending as far back as the 1967 case, Katz v. United States. It was 
because of concerns over unconstitutional surveillance of Americans in 
the 1960s and 1970s that Congress enacted the Foreign Intelligence 
Surveillance Act in 1978 to provide a legal mechanism for the 
Government to engage in searches of Americans in connection with 
intelligence gathering. Unless pursuant to a criminal search warrant 
issued by a judge on a showing of probable cause, FISA warrants are the 
exclusive means by which electronic surveillance and the interception 
of electronic communications may be undertaken pursuant to the rule of 
law.
  The Foreign Intelligence Surveillance Act has been amended over time, 
and it has been adjusted several times since 9/11. Indeed, much of the 
PATRIOT Act includes FISA amendments. The law has been further amended 
since the PATRIOT Act, as well.
  Congress allows the FISA Court to operate in secret and authorizes 
the Government to begin immediate surveillance in an emergency 
situation, so long as it seeks a warrant from the FISA Court within 72 
hours. In addition, Congress has provided that following a declaration 
of war, the President may authorize electronic surveillance without a 
court order for a period not to exceed 15 days.
  There has never been a leak reported out of the FISA Court. 
Furthermore, it has never been alleged that FISA's emergency procedures 
are inadequate or that FISA ties the hands of law enforcement. If the 
Bush administration believed that FISA was inadequate, it should have 
alerted Congress to these flaws. It did not. Instead, it worked with me 
and with others in the days following 9/11 to amend FISA. I chaired the 
Senate Judiciary Committee at that time, apparently the same time that 
the Bush administration began surveillance outside FISA. I was not 
informed of the President's secret  eavesdropping program while I 
chaired the Judiciary Committee in 2001 and 2002. I read about it for 
the first time in the press last week. Spying on Americans without 
safeguards to protect against the abuse of government power is 
unnecessary, and it is wrong.

  Over the last week, we have learned of long-term, widespread 
eavesdropping on Americans by the Bush administration without 
compliance to the law, without court oversight, and without 
congressional authorization. Compounding that already troubling 
discovery were new, disturbing reports that the FBI has been monitoring 
U.S. advocacy groups working on behalf of the environment and civil 
rights issues, Quaker meetings and students checking out books to write 
school papers. This is all too reminiscent of the dark days when a 
Republican President

[[Page 30766]]

compiled ``enemies lists'' and eaves-
dropped on political opponents and broke into doctors' offices and used 
the vast power of the executive branch to violate the constitutional 
rights of Americans.
  I was elected to the Senate in the aftermath of Watergate and the 
White House plumbers and the secret wars that led to the impeachment 
articles being considered against President Nixon. The Foreign 
Intelligence Surveillance Act was passed in 1978 as part of the reform 
and reaction to those abuses. As I have noted, this law has been 
extensively updated in accordance with the Bush administration's 
requests in the aftermath of 9/11 and has been modified further in the 
last 4 years with respect to so-called lone wolf terrorists. Neither in 
the first year of his Presidency or in the aftermath of 9/11 or in the 
4 years since enactment of the PATRIOT Act has President Bush come to 
Congress and asked us for authority to engage in the kind of extensive 
surveillance on Americans by the National Security Agency that The New 
York Times reported and the President has now confirmed that he 
secretly ordered and has reaffirmed more than 30 times.
  We are a nation of laws, and the fact that no person is above the law 
is a bedrock principle upon which this Nation was founded and one we 
are defending and fighting for abroad. This type of covert spying on 
American citizens and targeted groups on American soil betrays that 
principle.
  The chairman of the Judiciary Committee has the right instinct and 
was right to announce that we need hearings and an explanation, and the 
American people deserve an accounting for this troubling revelation. 
Earlier this week, I joined with Senators Reid and Rockefeller in 
requesting specific information from the Bush administration on its 
covert spying operations domestically. I cannot emphasize strongly 
enough how important it is for the Bush administration to cooperate 
with Congress on this matter. No one should be able to conduct secret, 
illegal spying programs on our soil with no accountability to Congress 
or the American people.
  Congress has passed laws that established a legal way to eavesdrop on 
al-Qaida and other potential terrorist organizations. Internationally 
that monitoring should have been done more effectively before 9/11 by 
this administration. We have established legal authority in emergency 
circumstances for the Attorney General to proceed first so long as he 
promptly seeks court approval thereafter. We even provided a 15-day 
window after a declaration of war. This program has apparently been 
going on for not 4 days or 14 days but for more than 4 years. That is 
not pursuant to or consistent with FISA. In the PATRIOT Act and other 
actions since 9/11, Congress has created additional authorities. But it 
is Congress that passes laws. The President cannot simply declare when 
he wishes to follow the law and when he chooses not to.
  What happens to the rule of law if those in power abuse it and only 
adhere to it selectively? What happens to our liberties when the 
Government decides it would rather not follow the rules designed to 
protect them?
  The Bush administration, in secret legal justifications for a secret 
eavesdropping program, apparently argues that when the Congress 
authorized the use of force in September 2001 to attack al-Qaida in 
Afghanistan, it authorized warrantless searches and eavesdropping on 
Americans. I voted for that authorization. This program is not what I 
voted for. Congress did not sign a blank check. The power to eavesdrop 
on Americans is not even authority that the Bush administration asked 
for from Congress.
  I was chairman of the Judiciary Committee when the President's 
program was undertaken, and I was never informed of the program or its 
purported legal justification. In this, as with its detention and 
interrogation practices, this administration has chosen to go it alone. 
That is wrong, and it is corrosive to our system of checks and 
balances.
  This is a Government with three co-equal branches. As Justice 
O'Connor reminded the Bush administration, even wartime does not give 
the President a blank check with regard to power. As I said last week, 
the same lawyers who advised the President that he was above the law 
when it came to torture, in a memorandum the Bush administration has 
had to disavow and withdraw when it was brought to light, have 
apparently advised the Bush administration that this President has 
authority to conduct warrantless surveillance of Americans. That is 
wrong. Accountability is sacrificed when there is rampant 
unilateralism.
  No one can just ignore the law or the constitutional limits on 
Executive authority that protect Americans' liberties. Accordingly, I 
urge the Bush administration to make public its purported legal 
justification for what I view as an illegal program of spying on 
Americans without court approval. I urge them not just to recite bumper 
sticker slogans or conclusory statements that they view their actions 
as consistent with the self-serving rewriting of the law they have 
secretly made amongst themselves, but to provide that legal 
justification in the light of day so that Congress and Americans can 
consider it. Provide and post the legal memoranda.
  Al-Qaida knows that we eavesdrop and wiretap. Whether we do so 
legally, whether we protect the liberties of Americans by respecting 
the constitutional requirements for court-issued warrants, these 
aspects are of little concern to terrorists but matter greatly to 
Americans. I expect that when the supposed legal underpinnings for the 
President's eavesdropping program are examined, they, too, will be 
withdrawn and disavowed by this administration. I also expect that they 
will be rejected by an honest review in Congress, in the courts, and 
certainly by the American people. I ask that a copy of a letter to the 
President of which I referred be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  U.S. Senate,

                                Washington, DC, December 20, 2005.
     The President,
     The White House,
     Washington, DC.
       Dear Mr. President: Your recent acknowledgement of the 
     existence of a highly-classified program to conduct 
     electronic surveillance on U.S. citizens and permanent 
     residents without obtaining a court order as required by law 
     has raised a number of troubling issues in the minds of the 
     American people. That is why Democrats and Republicans have 
     called for prompt and thorough congressional investigation of 
     this program. We write to ask that you immediately provide 
     Congress with additional details on the extent and scope of 
     this program, your legal justification for your actions, and 
     your efforts to inform Congress about this program.
       The relevant law governing surveillances, the Foreign 
     Intelligence Surveillance Act of 1978 (``FISA''), could not 
     be clearer on the need to obtain a court order for such 
     surveillance. It also provides for emergency procedures and 
     for authorization of electronic surveillance during a time of 
     war, with reasonable time limits beyond which a court order 
     must be obtained. We are deeply troubled by your assertions 
     that the Constitution and the Authorization for Use of 
     Military Force passed by Congress following the 9/11 attacks 
     provide you justification for contravening a statute's clear 
     language. In your public statements to date, you have not 
     made a convincing legal argument for the authority to do so.
       In addition, public statements by several of the handful of 
     Members of Congress who were provided a briefing on this 
     program indicate that insufficient information was provided 
     to them under ground rules that did not enable Congress to 
     conduct satisfactory oversight. There are questions whether 
     your Administration has properly complied with the National 
     Security Act of 1947 requirement to keep the appropriate 
     committees of jurisdiction ``fully and currently informed of 
     the intelligence activities of the United States.''
       It is important for Congress to review these matters. We 
     respectfully ask that you cooperate fully to provide all 
     necessary information on all relevant aspects of this 
     program, including presidential orders, supporting legal 
     opinions, complete descriptions of actions taken under the 
     program, and other information, to the appropriate oversight 
     committees.
       As Congress begins to examine this program in greater 
     detail, it is clear Congress and the American people need 
     immediately to understand at least four issues:
       (1) Under what specific legal authorities did you authorize 
     warrantless electronic surveillance of American citizens and 
     permanent residents inside the United States?

[[Page 30767]]

       (2) Given your assertion that the FISA is insufficient in 
     providing appropriate authority and procedures to protect 
     Americans from terrorism, what specific powers or authorities 
     are insufficient and why, in the four years since the 9/11 
     attacks, has your Administration not proposed correcting 
     modifications?
       (3) You have stated that you authorized the NSA to 
     intercept the international communications of people with 
     known links to al Qaeda and related terrorist organizations. 
     Have you ever authorized the interception, without a warrant, 
     of purely domestic communications, or communications of 
     people without known links to al Qaeda and related terrorist 
     organizations?
       (4) Could you please provide additional information on the 
     legal and other justifications for limiting briefings on 
     these matters to a handful of Members of Congress, as well as 
     information on the dates, attendance, and issues discussed at 
     these briefings, so it can be determined whether you complied 
     with the letter and spirit of the National Security Act of 
     1947?
           Sincerely,
     Harry Reid,
       Democratic Leader.
     John D. Rockefeller IV,
       Vice Chairman, Select Committee on Intelligence.
     Patrick Leahy,
       Ranking Democrat, Committee on the Judiciary.

  Mr. BIDEN. Mr. President, according to the Book of Mark, Jesus asked 
this question: ``For what shall it profit a man, if he shall gain the 
whole world, and lose his own soul?'' Mark 8:36.
  I would ask the President of the United States a similar question--
what good is it to expand the power of the President, if in the process 
you erode the fundamental freedoms guaranteed by the U.S. Constitution?
  Last week, we learned--from a New York Times report and then from 
President Bush himself--that since September 11, 2001, the President of 
the United States has authorized the National Security Agency to 
conduct electronic surveillance of American citizens on American soil 
without resort to the procedures of the Foreign Intelligence 
Surveillance Act.
  Today we learn, contrary to assurances by administration officials, 
that the NSA has also conducted warrant-
less surveillance of purely domestic phone calls because of the 
technical difficulties of determining the physical location of a 
particular telephone.
  There is still much that we do not know about this secret program and 
much that we do not know about the purported legal basis for it. In 
briefing the press on Tuesday, the Attorney General noted that people 
criticizing the administration are proffering opinions based on ``very 
limited information,'' and that such critics ``probably don't have the 
information about our legal analysis.''
  But we do know this: for the past 4 years, the Bush administration 
has aggressively sought to expand the power of the President beyond 
recognition. In the face of this campaign, a Republican Congress has 
largely stood idle, reluctant to exercise its constitutional duty of 
oversight.
  The Framers provided for a system of checks and balances in the 
Constitution for one simple reason: to protect against abuse of power 
by any branch of government in order to protect our personal freedoms.
  In its zeal to expand the power of the President, the Bush 
administration's actions have threatened the fabric of the 
Constitution. These are hardly the actions of a self-described 
conservative who professes to want to reduce the power of the National 
Government.
  It would be one thing if the President's actions to expand 
Presidential power reflected sound judgment and wisdom. But again and 
again, the President's overreaching in the name of security has been 
profoundly misguided, and has undermined support for the war against 
al-Qaida at home and abroad; in his decision to create special military 
tribunals for al-Qaida suspects held in Guantanamo Bay, a system that 
has yet to produce a complete trial, in his decision to authorize 
secret prisons abroad holding terrorist suspects--including, 
apparently, using facilities once operated by Soviet Intelligence 
agencies; in his decision to play fast and loose with time-tested 
standards against torture; and now in his decision to unilaterally 
authorize secret wiretaps of Americans without a court order.
  Without more information from the Executive, it is difficult to judge 
the legality of the President's secret spying program. I call on the 
Attorney General, therefore, to provide the necessary information by 
promptly releasing the legal opinions governing this program--so that 
the Congress and the American people can assess the propriety of the 
President's actions. And I call on the Director of National 
Intelligence to promptly provide full and complete briefings to the 
appropriate congressional committees on the scope and operation of this 
program.
  What is clear today is that the President of the United States 
decided to create a new system outside the framework of the Foreign 
Intelligence Surveillance Act of 1978--a framework that Congress 
designed to be comprehensive for electronic surveillance of foreign 
powers and agents of foreign powers. It is this framework on which I 
will focus my remarks today.
  The Foreign Intelligence Surveillance Act, or FISA, was enacted in 
1978 after a 3-year effort to do so.
  As stated in the report of the Senate Select Committee on 
Intelligence, the purpose of the law was to provide regulation for 
``all electronic surveillance conducted within the United States for 
foreign intelligence purposes'' in order to provide a check against 
abuses that had been revealed by the investigation of the Church 
Committee.
  The bill was a bipartisan product; in the Senate, the original 
version introduced in 1977 that served as the basis of the 1978 law was 
sponsored by Senators across the ideological spectrum--including Birch 
Bayh, Ted Kennedy, Mac Mathias, James Eastland, and Strom Thurmond. The 
Senate ultimately adopted the bill on April 20, 1978, by a strong, 
bipartisan vote of 95 to 1. At the time the bill was approved in the 
Senate, I stated that it ``was a reaffirmation of the principle that it 
is possible to protect national security and at the same time the Bill 
of Rights.'' I was also a member of the conference committee that 
produced the final version of the law that was enacted with broad 
support in October 1978.
  Here is what we did in 1978. FISA was designed to govern our 
collection of ``foreign intelligence.'' Typically, in the criminal 
context, search warrants can only be issued if the Government can 
demonstrate to a neutral judge that probable cause exists to believe a 
crime has been committed.
  Under FISA, surveillance orders are issued so long as probable cause 
exists that someone is an ``agent of a foreign power.'' That term has 
been expanded in the last year to even include a lone wolf terrorist; 
in other words, someone not affiliated with a known terrorist 
organization.
  Not only is the standard different under FISA, but the FISA process 
is done in secret, with a special court known as the Foreign 
Intelligence Surveillance Court. This is a court made up of Federal 
judges who sit on U.S. district courts. I should parenthetically note 
that we learned today that one of the 11 judges on this court just 
resigned in reaction to President Bush's unilateral domestic spying 
program.
  When we wrote FISA, we knew there could be times when the President 
would have to act quickly. We knew there would be times when probable 
cause would have to be demonstrated to the FISA court after the 
surveillance began. We contemplated emergencies and wrote the law so 
that it could deal with them.
  First, we addressed emergency situations in section 105(f) of the 
act, which provides that if the Attorney General reasonably determines 
that an emergency situation exists--and that his investigators need to 
target a wiretap against an agent before an application can be made to 
the FISA Court--he may do so for 72 hours. The original act provided 
for only a 24-hour emergency period, but Congress expanded that period 
to 72 hours in December 2001--after the attacks on 9/11. Similarly, in 
enacting the Patriot Act in 2001, Congress provided other changes to 
FISA.
  It is therefore difficult to accept the contention of the Attorney 
General

[[Page 30768]]

that Congress has been unwilling to help the President meet the 
challenges we now face.
  The law is clear on the steps the Attorney General needs to take to 
wiretap suspects without first obtaining a warrant: he must tell a FISA 
Court judge at the time of the authorization that he has taken such 
emergency measures, and he has to apply for post-hoc approval as soon 
as is practicable but not later than 72 hours after the surveillance 
has commenced.
  We envisioned another emergency that could authorize warrantless 
intelligence searches: a declaration of war. Section 111 lets the 
Attorney General authorize electronic surveillance without a court 
order to acquire foreign intelligence information for up to 15 calendar 
days following a declaration of war by Congress. Although the 
``Authorization for the Use of Military Force'' approved just after 9/
11 was not, technically speaking, a declaration of war, it was the 
constitutional equivalent under the war clause to permit the use of 
force in Afghanistan, and the President would have been justified to 
exercise these extraordinary surveillance powers in the first 2 weeks 
after enactment of the joint resolution.
  It is also important to note that FISA, on its own terms, set up a 
comprehensive and exclusive system for domestic wiretapping. Section 
2511(2)(f) of Title 18, United States Code, states that FISA, when 
combined with wiretap authority for domestic criminal investigations, 
is the ``exclusive means by which . . . the interception of domestic 
wire, oral and electronic communications may be conducted.''
  That is why George Will recently had this to say about the 
administration's tortured legal reasoning, ``The President's 
authorization of domestic surveillance by the National Security Agency 
contravened a statute's clear language.''
  It is also worth looking at how the FISA system has operated 
throughout its 27 years of existence. I would submit that it has served 
us well.
  To those who would say it is too restrictive on our ability to gain 
intelligence, I would respond that the FISA Court has only rejected 5 
applications out of approximately 19,000.
  To those who would say that the system is too lenient, I would 
respond that the important piece of the equation with FISA is that it 
has some independent review of the executive branch--in this instance, 
by an independent Article III judge.
  And yet, even with a history of a FISA court that approves the 
overwhelming majority of applications, and even with the two emergency 
exceptions, there are some who still argue that the administration 
needs additional flexibility.
  For example, there are some who would say that FISA wouldn't allow us 
to tap the phone numbers found in the cell phone of a top al-Qaida 
target. With all due respect, a phone number found in a top al-Qaida 
operative's cell phone would seem to me to comfortably satisfy the 
``probable cause'' standard outlined above. And if there were an urgent 
need to tap these phone numbers promptly--as I am sure there would be--
no one has explained why this couldn't be done under the 72-hour 
emergency exception.
  Rather, we have the disturbing spectacle of the Deputy Director of 
National Intelligence, General Hayden, complaining that ``FISA involves 
marshaling arguments . . . FISA involves looping paperwork around.''
  Exactly right. FISA isn't a high hurdle--but it does require the 
executive branch to justify the extraordinary surveillance of American 
citizens to a judicial officer. Isn't this the rule of law that we are 
fighting to defend? And when FISA has needed updating over its 27-year 
existence, Congress has, time and time again, stepped up to the plate.
  When we first enacted FISA, its scope was limited to wiretapping and 
other electronic eavesdropping. It has since been amended to authorize 
pen/trap orders and business record orders; in reaction to the Zacarias 
Moussaoui case, Congress created the so-called ``lone wolf'' provision; 
after 9/11, we extended the emergency period from 24 to 72 hours; and 
the list goes on and on.
  If additional changes need to be made to FISA, this Senator stands 
ready and willing to engage in that exercise.
  The alternative is the course on which the President has embarked, 
directly contravening a specific statute and relying on a dangerously 
expansive view of his Commander in Chief authority--a view that would 
potentially expose thousands of Americans who make a phone call abroad 
to surveillance of this sort. This is a course that we tried to avoid 
when we drafted the FISA Act in the first place. As I said in 1978 when 
FISA was originally passed, ``it is not necessary to compromise civil 
liberties in the name of national security.'' I hope the lessons from 
1978 and the real story about what FISA allows can inform the debate 
going on today.
  This debate is just beginning. Congress must stand up to this 
Presidential overreaching, examine what occurred, and provide 
corrective action. Senator Specter, the Chairman of the Judiciary 
Committee, has promised to hold hearings on this matter. I commend him 
for that.
  But we will need the full cooperation of the Executive in this 
undertaking, and the administration can start by coming clean with the 
full legal reasoning for the President's domestic spying program.
  There will be much more to say--and learn--in the second session of 
the 109th Congress. The executive branch's program must be subjected to 
close scrutiny by this Congress to ensure that in pursuit of terrorists 
or suspected terrorists, we are not sacrificing essential freedoms that 
we hold dear.
  Mr. LEVIN. Mr. President, more than 50 years ago, Justice Robert 
Jackson said:

       With all its defects, delays and inconveniences, men have 
     discovered no technique for long preserving free government 
     except that the Executive be under the law, and that the law 
     be made by parliamentary deliberations.

  I am deeply troubled by recent revelations that the President of the 
United States has apparently personally authorized spying on the 
private phone conversations of Americans without court approval, as is 
required by law. The President's decision to ignore the law Congress 
wrote and bypass the special court we created raises profound concerns 
that deserve our immediate attention.
  Yesterday, I joined several of my colleagues in requesting a joint 
inquiry into the President's actions by the Senate Intelligence and 
Judiciary Committees.
  Checks and balances are the bedrock of our system of government. In 
1978, when Congress passed the Foreign Intelligence Surveillance Act to 
permit the Government to seek court orders to tap the phones of people 
in the United States, Congress put in the law a check--the FISA Court--
on the executive branch's authority.
  Since 1979 the FISA Court has approved nearly 19,000 applications for 
FISA wiretaps. The Court has rejected only a handful.
  Last year, at a speech in Buffalo, NY, the President explicitly cited 
the need for a court order as a reason why Americans should have 
confidence that their civil liberties are being protected. He said:

       Any time you hear the United States government talking 
     about wiretap, it requires--a wiretap requires a court order. 
     Nothing has changed, by the way. When we're talking about 
     chasing down terrorists, we're talking about getting a court 
     order before we do so. It's important for our fellow citizens 
     to understand . . . constitutional guarantees are in place 
     when it comes to doing what is necessary to protect our 
     homeland, because we value the Constitution.

  But now the President acknowledges that 4 years ago, he authorized 
wiretaps on Americans without court review. Now he asserts that he has 
the authority--without court approval--to order the wiretaps himself 
and we now know that the Government was conducting warrantless wiretaps 
when the President made the statement in Buffalo.
  If the court isn't consulted, where is the check on executive power?
  The President has said that he consults with executive branch lawyers 
and has briefed Congressional leaders about the domestic spying 
program.

[[Page 30769]]

But to suggest that consulting with executive branch lawyers is a check 
on Executive Branch authority demonstrates a fundamental 
misunderstanding of the concept of checks and balances. And notifying a 
few members of Congress--if that is in fact what the administration 
did--is not the check provided by law. That check is the court.
  In the conference report that accompanied the FISA law, Congress made 
the Supreme Court the only body that could authorize electronic 
surveillance by the executive branch not explicitly authorized by the 
FISA law. The conference report said:

       The conferees agree that the establishment by this act of 
     exclusive means by which the President may conduct electronic 
     surveillance does not foreclose a different decision by the 
     Supreme Court . . .

  Executive Order 12333, issued by President Reagan in 1981, recognizes 
FISA as the governing law for foreign intelligence wiretaps. It 
provides that:

       Electronic surveillance, as defined in the Foreign 
     Intelligence Surveillance Act of 1978, shall be conducted in 
     accordance with that Act, as well as this Order.

  And, under FISA itself, a person is actually guilty of a crime if he 
engages in electronic surveillance except as authorized by statute.

       A person is guilty of an offense if he intentionally--(1) 
     engages in electronic surveillance under color of law except 
     as authorized by statute.

  The President has not provided any legal opinion that supports his 
claim of authority.
  On Monday, the President said that the targets of the spying are 
``those that are known al Qaeda ties and/or affiliates.'' But the FISA 
law says that wiretap orders may be issued by the court if there is 
probable cause to believe that the target of the wiretap is a foreign 
power or an agent of a foreign power. If the targets of the spying have 
known al Qaeda ties, why didn't he get a FISA court order?
  The President has also tried to justify the warrantless spying by 
saying ``Sometimes we have to move very, very quickly.'' That is true. 
In some cases we do have to move quickly. But the FISA law addresses 
such occasions. It explicitly allows the Attorney General, to issue 
emergency wiretap orders without first obtaining court approval. His 
wiretap application need only be filed with the FISA court within 72 
hours after surveillance is authorized.
  The President claims that he has authority under the Constitution to 
authorize wiretaps without court approval as required by law. Yet he 
refuses to provide any legal opinions justifying that view.
  The Attorney General is quoted in the Washington Post as saying 
``This is not a backdoor approach . . . We believe Congress has 
authorized this kind of surveillance'' and he points to the 
Authorization for Use of Military Force passed by Congress in September 
2001 as a source of Congressional authorization.
  That Resolution states:

       That the President is authorized to use all necessary and 
     appropriate force against those nations, organizations, or 
     persons he determines planned, authorized, committed, or 
     aided the terrorist attacks that occurred on September 11, 
     2001, or harbored such organizations or persons, in order to 
     prevent any future acts of international terrorism against 
     the United States by such nations, organizations or persons.

  The assertion that ``necessary and appropriate force'' includes the 
authority to wiretap American citizens in the United States, is, on its 
face, without merit. And again, the President has not provided any 
legal opinion that would support that interpretation.
  The Attorney General undermined his own statement that the Congress 
authorized warrantless wiretaps by telling the Post that the President 
had contemplated asking Congress to pass legislation granting him that 
authority but decided against it because it ``would be difficult, if 
not impossible'' to pass. Taken together, the two statements of the 
Attorney General make no sense. He asserts both that Congress 
authorized the wiretapping and that it never would. The Attorney 
General is trying to have it both ways. We need some straight answers.
  So, why wasn't the FISA law followed?
  Just this morning, the Washington Post reported that General Michael 
Hayden--the head of the National Security Agency--the agency the 
President has charged with carrying out the spying--suggested that 
getting retroactive court approval is inefficient because it ``involves 
marshaling arguments'' and ``looping paperwork around.''
  I would remind General Hayden--and the President for that matter--of 
something else Justice Jackson said. He said:

       The doctrine of the separation of powers was adopted by the 
     Convention of 1787, not to promote efficiency but to preclude 
     the exercise of arbitrary power.

  Just as troubling as General Hayden's reason for bypassing FISA is 
the Post's report that the decision to tap a phone without a warrant 
``requires only the approval of a shift supervisor.''
  That is outrageous. We don't let shift supervisors at the airport 
decide to stop screening passengers for explosives. And we shouldn't 
let shift supervisors at the NSA decide whether to abide by the law or 
not.
  The President says that this is a different era and a different type 
of war. And he is right. But this is the same country, with the same 
Constitution, and the same system of checks and balances that have 
served us so well for more than 200 years. And even Presidents are not 
above the law.
  Mr. DODD. Mr. President, I rise to speak on the PATRIOT Act 
Reauthorization conference report.
  I voted for the original legislation in 2001. Along with 98 of my 
colleagues, I supported that bill because I decided that on balance, 
the PATRIOT Act it would enhance our Nation's ability to fight 
terrorism without substantially encroaching on our citizens' civil 
liberties. At the same time, I and many of our colleagues understood 
that aspects of the law should be revisited. For that reason, a number 
of provisions were set to sunset on December 31, 2005. After careful, 
bipartisan review of these provisions, it became evidence to many of us 
that certain improvements are necessary to maintain the balance between 
fighting terrorism and protecting civil liberties. For that reason, I 
joined with a bipartisan group of Senators to cosponsor the SAFE Act, 
which would have modestly reformed the 2001 PATRIOT Act to provide 
procedural safeguards and increase judicial review.
  In July of this year, the Senate unanimously passed a PATRIOT Act 
reauthorization bill. While that bill was not perfect, it took 
significant steps to fix shortcomings in the current law and strength 
our Nation's ability to fight terrorism while still protecting the 
civil liberties that are the cornerstone of a free and secure 
democratic society. The House also passed a reauthorization bill, which 
did not come as close to reaching this goal. Conferees were appointed 
to work out a compromise.
  Prior to the Thanksgiving recess, a draft PATRIOT Act reauthorization 
conference report was circulated by conferees. At the urging of several 
Senators, Senator Specter and others took the conference report back to 
the conferees to try to negotiate additional modifications. They are to 
be commended for their efforts to reach a compromise that would earn 
broad bipartisan support.
  When the conference was concluded, a number of our colleagues, 
including Senators Leahy, Kennedy, Rockefeller, and Levin declined to 
sign the conference report due to their exclusion from key negotiations 
and their conclusion that the conference report failed to sufficiently 
meet the dual objective of combating terrorism and defending freedoms.
  While I believe that the conference report is an improvement over 
current law, the provisions related to section 215, national security 
letters, and roving wiretaps have still given me pause. First, under 
section 215, also called the business records provision, current law 
allows the Justice Department to obtain medical records, business 
records, library records, or other tangible items of individuals by 
merely showing that the items are relevant to a terrorism 
investigation. The unanimously agreed

[[Page 30770]]

upon Senate bill requires that the Government show that a person whose 
records are sought have some connection to a suspected terrorist or spy 
organization. Unfortunately, the conference report differs from the 
Senate version as it maintains the minimal standard of relevance 
without a requirement of fact connecting the records sought, or the 
individual, suspected of terrorist activity. Additionally, the 
conference report does not impose any limit on the breadth of the 
records that can be requested or how long those records can be kept by 
the Government.
  Under the current PATRIOT Act, an individual who receives a section 
215 order to turn over business records is prohibited from telling 
anyone about the order. This is referred to as a ``gag order.'' The 
conference report is an improvement over current law as it explicitly 
grants the right for a suspect to consult with an attorney regarding 
this ``gag order'' but unlike the Senate version, the conference report 
also requires an individual who receives a Section 215 order to notify 
the FBI if he consults with an attorney and to identify the attorney.
  Second, under current law, the FBI can issue a national security 
letter--``NSL''--without the approval of a judge, grand jury, or 
prosecutor, to obtain certain types of sensitive information about 
innocent individuals. Similar to a 215 order, the targeted individual 
is restricted by a gag order. While the conference report does provide 
the right to challenge the NSL demand, it also requires the court to 
accept as conclusive the Government's assertion that a gag order should 
not be lifted, unless the court determines the Government is acting in 
bad faith.
  I also find it troubling that the conference report would give the 
Government the authority to keep all evidence secret from an individual 
who is challenging a 215 order or an NSL order. For example, if an 
attorney wants to challenge an order to turn over the business records 
of a client on the grounds of attorney/client privilege, they would not 
be allowed to see the evidence the Government had requested or the 
reasoning behind the request. It is also important to note that the 
recipient of a Section 215 ``business records'' order or an NSL order 
is usually not the subject of investigation. For example, a doctor 
could receive a Section 215 order from law enforcement to reveal the 
medical records of a patient. Under this conference report, that 
patient would not even receive notice that the Government had obtained 
his personal information and would never have the opportunity to 
challenge the use of that information in a trial.
  Third, I would like to address ``roving wiretaps.'' A ``roving 
wiretap'' is a tap on any telephone that a suspect uses, moving from 
one telephone to another, with no particular locational target. Under 
the PATRIOT Act, the FBI is authorized to engage in roving wiretaps 
without court approval. The Senate bill mandated that a roving wiretap 
include sufficient information to describe the specific person to be 
wiretapped with ``particularity.'' ``Particularity'' is a legal term of 
art describing the place or places to be searched, the person or 
persons, thing or things to be seized, the communication to be 
intercepted, and the nature of evidence to be obtained. The conference 
report does not include that requirement and it does not require the 
Government to determine whether the target of a roving intelligence 
wiretap is present before beginning surveillance. Without this level of 
specification it is easy to see how roving wiretaps could be abused to 
secretly record the conversations of Americans without their knowledge 
or consent.
  However, I would also like to note that the conference report is an 
improvement over current law as it includes a number of comprehensive 
public reporting and auditing requirements which would help prevent 
abuse of section 215 orders and to help preserve civil liberties. 
Additionally, the conference report also maintains provisions from the 
Senate bill that address the shortcomings of current law, including 
expressly permitting the recipient of the national security letter or a 
section 215 order to consult with an attorney, requiring the Government 
to notify a target of a warrantless search within a set number of days, 
and limiting the use of roving wiretaps to those cases in which the FBI 
includes a ``specific'' description of the target and ``specific facts 
in the application'' that show the target's actions may thwart 
conventional surveillance efforts.
  The PATRIOT Act Reauthorization conference report passed the House by 
a vote to 251-174 on December 14 and was brought to the Senate floor 
for debate. On December 16, Senator Frist attempted to invoke cloture 
to bring this body to a vote on the conference report. Cloture was not 
invoked. I was necessarily absent from the Senate for health reasons.
  Since then I have joined 47 of my colleagues in cosponsoring S. 2082. 
The bipartisan legislation, introduced by Senators Sununu and Leahy, 
would provide a 3-month extension of the expiring provisions of the 
PATRIOT Act. Unfortunately, Senator Frist has said he will not permit a 
vote on it; the House leadership has said they will not bring it to the 
floor for a vote; and the Bush administration has stated that, even if 
the extension were to pass both the House and the Senate, President 
Bush would refuse to sign it. My fellow colleagues have asked this body 
more than a half dozen times to allow this 3-month extension to come to 
the floor. They have been denied this opportunity. This is playing 
politics with an extremely important law that protects our citizens 
from terrorism.
  Earlier this week, the President, in speaking of the PATRIOT Act, 
said, ``in a war on terror, we cannot afford to be without this law for 
a single moment.'' I agree with his statement. That is why there is no 
reason why the President and those on the other side of the aisle 
should refuse to extend this important law. This is why I remain 
hopeful that the majority leader will set aside politics and allow this 
extension to occur. Law enforcement officials should not be without 
these important tools to fight terrorism for even a single moment. We 
would then have the opportunity to return after the holidays to address 
these areas of concern and hopefully pass a bipartisan bill that would 
enhance our ability to fight terrorism without substantially 
encroaching on our civil liberties.
  The PRESIDING OFFICER. Under the previous order, the bill is read a 
third time and passed, and the motion to reconsider is laid upon the 
table.
  The bill (S. 2167) was read a third time and passed, as follows:

                                S. 2167

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

     SECTION 1. EXTENSION OF SUNSET OF CERTAIN PROVISIONS OF THE 
                   USA PATRIOT ACT AND THE LONE WOLF PROVISION OF 
                   THE INTELLIGENCE REFORM AND TERRORISM 
                   PREVENTION ACT OF 2004.

       Section 224(a) of the Uniting and Strengthening America by 
     Providing Appropriate Tools Required to Intercept and 
     Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 (18 U.S.C. 
     2510 note) is amended by striking ``December 31, 2005'' and 
     inserting ``July 1, 2006''.

                          ____________________




 MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF LABOR, HEALTH AND HUMAN 
          SERVICES, AND EDUCATION--CONFERENCE REPORT--Resumed

  Mr. McCONNELL. Mr. President, notwithstanding the previous order, I 
ask unanimous consent that the Senate proceed to the consideration of 
the conference report to accompany H.R. 3010, that the conference 
report be agreed to, and the motion to reconsider be laid upon the 
table.
  The PRESIDING OFFICER. The clerk will report the conference report by 
title.
  The legislative clerk read as follows:

       A conference report to accompany H.R. 3010 making 
     appropriations for Departments of Labor, Health and Human 
     Services and Education, and for other purposes.
       There being no objection, the Senate proceeded to consider 
     the conference report.

  Mr. KYL. Mr. President, I rise today to call attention to a provision 
contained in the conference report to H.R.

[[Page 30771]]

3010, the fiscal year 2006 appropriations bill for Departments of 
Labor, HHS, and Education. I am pleased to see that House and Senate 
conferees were able to provide $100 million for the Teacher Incentive 
Fund. The Teacher Incentive Fund was first proposed in the President's 
fiscal year 2006 budget, and will offer an appropriate incentive to 
States and local education agencies to advance the goals of the No 
Child Left Behind Act.
  The No Child Left Behind Act, enacted 4 years ago, raised 
expectations for students and teachers. Students are expected to raise 
their achievement level, and teachers are accountable for reaching the 
specific goals. The Teacher Incentive Fund is an appropriate follow up 
to the No Child Left Behind Act. It is a pilot program for States and 
school districts to provide additional compensation to teachers who 
make a measurable impact on raising student achievement. Under this 
incentive program, Federal funds would be available to States and local 
school districts for the purpose of developing new compensation systems 
to reward teachers who raise achievement and to provide an incentive to 
attract effective teachers to what the Department of Education calls 
high-need schools. These are schools with high poverty rates and poor 
performance on State assessments. The Teacher Incentive Fund provides 
States and school districts with another tool to raise teacher quality 
and, thus, close the achievement gap, which, of course is the primary 
goal of the No Child Left Behind Act.
  In October, the Senate Republican Policy Committee, of which I am the 
chairman, released a policy paper in support of merit pay for teachers 
in general and the Teacher Incentive Fund specifically. The paper, 
titled ``Teachers Are Key to Success of `No Child Left Behind' Act: 
Better Pay for Better Teaching,'' discusses research in support of 
merit pay for teachers, and the success merit pay programs have 
achieved.
  Mr. President, I ask unanimous consent that this paper be printed in 
the Record following my remarks.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

 Teachers Are Key to Success of `No Child Left Behind' Act: Better Pay 
                          for Better Teaching


                              Introduction

       Enacted four years ago, the No Child Left Behind (NCLB) Act 
     raised expectations for students and teachers. Students are 
     expected to raise their achievement level, and teachers are 
     accountable for reaching the specific goals. As such, it is 
     appropriate to reward and acknowledge those teachers who, by 
     working harder and smarter, have achieved measurable success 
     in their classrooms.
       President Bush has proposed a pilot program for states and 
     school districts to provide additional compensation to 
     teachers who make a measurable impact on raising student 
     achievement. Under this incentive program, federal funds 
     would be available for the purpose of developing new 
     compensation systems to reward teachers who raise 
     achievement, and to provide an incentive to attract effective 
     teachers to what the Department of Education calls ``high-
     need'' schools, which are schools with high poverty rates and 
     poor performance on state assessments.
       In response to the President's proposal, the House of 
     Representatives included an incentive pay program for 
     teachers in its Fiscal Year 2006 appropriations bill that 
     funds the Department of Education (H.R. 3010). The House-
     passed program, like the one proposed by the President, is a 
     voluntary pilot program available to interested states and 
     school districts. The Senate-reported bill does not contain 
     such a provision.
       Some observers may be concerned that using federal dollars 
     for anything related to teacher pay is an inappropriate 
     intrusion of the federal government into an area that is 
     historically the jurisdiction of states and local school 
     districts. However, supporters of this concept view it in the 
     context of a natural follow-up to the four-year-old NCLB. 
     That law placed new accountability requirements upon schools; 
     thus, it is argued, it is now appropriate for the federal 
     government to make available financial incentives for 
     teachers who help meet those requirements. The concept of the 
     President's proposal and the House plan is to provide states 
     and school districts with another tool to raise teacher 
     quality and close the achievement gap, which stand as the 
     foundation of NCLB.
       According to a November 2004 national survey, 80 percent of 
     the public supports salary increases for teachers who raise 
     student achievement. However, some observers suggest that 
     teachers' unions oppose anything that might be construed as 
     merit pay. At least one observer notes that union opposition 
     stands in the way of local districts implementing merit pay 
     systems on a larger scale. For example, in California, in 
     response to Governor Schwarzenegger's proposal to introduce 
     merit pay for teachers, the state's largest teachers' union 
     sought to impose a dues hike on its members to help raise 
     ``tens of millions of dollars'' to combat merit pay and other 
     budget initiatives. A federal pilot program, such as the one 
     proposed by the President, may be necessary to allow public 
     schools to overcome teachers' unions' opposition to 
     implementing a compensation program that links teacher 
     performance and student outcomes. The pilot program would 
     provide funds directly to state and local educational 
     agencies to allow this concept--one that has already proven 
     successful in other schools--the chance to prove itself and 
     build support within the community. This was the case in 
     Little Rock, Arkansas. Merit-pay bonuses were paid in the 
     first year by an anonymous donor; the next year, the school 
     district, pleased with the results of the first year, voted 
     to use its own funds to pay performance bonuses.


                  Background: An Antiquated Pay System

       Today, the majority of teachers in the United States are 
     compensated through a ``single salary schedule,'' which bases 
     teachers' pay on their years of experience and their 
     education credits and degrees. According to the National 
     Center for Education Statistics, 96 percent of all public 
     school districts utilize a single-salary schedule for teacher 
     pay. The system was designed in the 1920s to ensure fairness 
     among elementary school teachers, who were mostly women, and 
     secondary teachers, who were mostly men. Critics contend that 
     this pay system fails teachers and students as it does 
     nothing to reward excellence. Indeed, it promotes equal pay 
     for unequal performance. Under the current system, an 
     increase for one teacher means an increase for all. The 
     following table shows the Denver Public Schools' salary 
     schedule as offered by Brad Jupp, education author and member 
     of the Denver Classroom Teachers Association. According to 
     Jupp, it is an example of a ``typical single-salary 
     schedule'' used for paying teachers.

                 FIGURE 1.--DENVER'S SALARY SCHEDULE\1\
------------------------------------------------------------------------
                                       B.A.         M.A.      Doctorate
------------------------------------------------------------------------
New Hire.........................      $31,320      $31,779
Step 1...........................       32,971       33,454      $39,169
Step 2...........................       33,073       33,697       40,903
Step 3...........................       33,225       35,101       42,642
Step 4...........................       33,480       36,503       44,377
Step 5...........................       33,785       38,053       46,251
Step 6...........................       33,988       39,671       48,219
Step 7...........................       35,421       41,337       50,290
Step 8...........................       36,912       43,087       52,449
Step 9...........................       38,456       44,924       54,702
Step 10..........................       40,092       46,860       57,057
Step 11..........................       41,784       48,843       59,521
Step 12..........................       43,566       50,944       62,082
Step 13..........................       45,546       53,401       64,919
------------------------------------------------------------------------
\1\With relatively low starting salaries and guaranteed raises over
  time, the current Denver Public Schools salary schedule is typical of
  compensation schemes for teachers. Each step represents a year of
  teaching.
Source: Denver Public Schools.

       Proponents of changing teacher compensation argue that the 
     single-salary schedule deprives public school administrators 
     of the ability to adjust an individual teacher's pay to 
     reflect performance, attract sought-after skills, and assure 
     that teaching positions in low-income schools are filled by 
     high performers. For example, many school systems struggle to 
     fill teaching positions in fields that command high salaries 
     outside of education, such as math and science. The rigidity 
     of the single-salary schedule prevents

[[Page 30772]]

     them from addressing this shortage in the obvious way--by 
     raising pay in these specialties. Likewise, few school 
     systems provide extra compensation to teachers who work with 
     disadvantaged students. Therefore, experienced teachers often 
     use their seniority to transfer to more attractive schools, 
     leaving the neediest students with more inexperienced 
     teachers.
       With such obvious flaws in this rigid pay system, why don't 
     states and local school districts reform their pay practices 
     for teachers? The short answer is teachers' unions. Unions 
     defend the single-salary schedule in the name of employee 
     equity and fairness, and oppose changes that rely on student 
     performance as a measure of a teacher's effectiveness. 
     Furthermore, teachers' unions, particularly the National 
     Education Association, have opposed merit pay systems because 
     they place the union in an awkward position: ``For every 
     teacher awarded merit pay, ten others will want the union to 
     file a grievance alleging that they deserved merit pay more 
     than the teacher who received it.''


                   Why Merit Pay Enhances NCLB Goals

       The No Child Left Behind Act requires that all students 
     become proficient in reading and math, and that the 
     achievement gap between students of different socio-economic 
     backgrounds be closed. Schools that do not make progress must 
     provide supplemental services, such as free tutoring, and/or 
     offering the option of choosing another public school. They 
     must also take corrective action with regard to the way the 
     school is run. The law, recognizing that high-quality, 
     effective teachers are a necessary component to obtaining 
     these results, established certain teacher-quality 
     requirements for states, including the requirement that core 
     academic subjects be taught by ``highly qualified teachers.'' 
     And while federal funds already are in place for professional 
     training and development to help states and school districts 
     meet this requirement, that program alone may be 
     insufficient. The General Accounting Office (GAO) reported in 
     2003 that state and district officials are hindered in their 
     ability to obtain all highly qualified teachers for a number 
     of reasons, including ``the lack of incentive pay programs.''
       In keeping with the rationale that teachers are the key to 
     the success of NCLB's goals, and so should be rewarded for 
     meeting them, the President proposed a $500 million Teacher 
     Incentive Fund as part of his FY 2006 budget request. This 
     formula grant program is for states and school districts that 
     choose to reward effective teachers--those who are closing 
     the achievement gap for students in schools most in need, and 
     those who otherwise are meeting NCLB annual targets for 
     student achievement. Under the President's proposal, states 
     would be authorized to create a statewide system to reward 
     these teachers, and to provide grant money to local school 
     districts in order to recruit highly qualified teachers to 
     high-need schools. Additionally, the President requested that 
     a portion of the funds be used for competitive grants for the 
     development and implementation of performance-based teacher 
     compensation systems in order to aid school districts that 
     choose to change to such a system.
       H.R. 3010, the House-passed Fiscal Year 2006 appropriations 
     bill for the Departments of Labor, Health and Human Services, 
     and Education, and Related Agencies, included $100 million 
     for a pilot Teacher Incentive Fund program available to 
     states willing to develop and implement innovative ways to 
     provide financial incentives for teachers (and also 
     principals) who raise student achievement and close the 
     achievement gap. In the interest of ensuring that the states 
     remain in control of this issue--and are committed to it--the 
     bill requires states and schools to pay for an increasing 
     share of the total cost of the project in subsequent years 
     with non-federal funds. And, in order to assure that workable 
     plans can be implemented elsewhere, the bill requires the 
     Department of Education to assess each project through an 
     independent evaluator, and then share these assessments with 
     other interested parties.
       It is important to note that the proposals of both the 
     President and the House allow state and local schools a great 
     deal of latitude in how they develop merit pay plans. For 
     example, they may include additional measures and goals, 
     combined with student performance, but the fundamental shift 
     would be that the merit pay systems consider outputs, such as 
     student achievement, rather than only inputs, such as the 
     number of courses a teacher takes.
       The provisions in the House funding bill were applauded by 
     the chairman of the Department of Education's authorizing 
     committee who noted, ``The federal government is spending 
     tens of billions of dollars a year on K-12 education 
     programs. States and schools ought to be allowed to use at 
     least a fraction of that money to provide financial rewards 
     for highly qualified teachers and principals who are working 
     successfully to raise student achievement.'' Chairman John 
     Boehner (R-OH) also noted that the funds provided in the 
     House bill are not new, but are being diverted from existing 
     funds that were used for what he termed ``less effective 
     programs.'' Meanwhile, the Senate-reported appropriations 
     bill that funds the Department of Education (as reported on 
     July 14), does not include a similar provision.


                     Merit Pay is Soundly Supported

       Support for the use of merit pay in public education has 
     not been limited to one political party. In addition to the 
     support of the President and House Republicans noted above, 
     the 2004 Democratic Presidential candidate, John Kerry (D-
     MA), voiced his support. In his policy plan, ``A Great 
     Teacher for Every Child,'' the candidate stated that 
     ``teachers should be rewarded for demonstrating more skill or 
     better results.''
       Another Democratic advocate is former Clinton 
     Administration official Joel Klein, now Chancellor of the New 
     York City public schools. According to Chancellor Klein, 
     ``Our system is built on principles of non-meritocracy and 
     non-differentiation, and those two principles are killing us. 
     At the heart of the problem are the three pillars of civil 
     service: lock-step pay, seniority, and life tenure. Together, 
     they act as handcuffs and prevent us from making the changes 
     that will encourage excellence in our system.''
       In addition to the bipartisan support it has garnered from 
     elected officials, merit pay for educators is supported by 
     teachers, parents, and education researchers. In November 
     2004, two national surveys were conducted for The Teaching 
     Commission, a private panelled by former IBM chairman Louis 
     Gerstner, Jr. The surveys found that 80 percent of those 
     surveyed support salary increases for ``teachers who improve 
     student achievement, raise teaching standards and increase 
     accountability for teachers.'' The surveys also found that 
     three out of four surveyed support paying higher salaries to 
     teachers willing to serve in high-poverty schools that 
     struggle to attract and retain good teachers. Furthermore, a 
     2003 survey conducted by the research group Public Agenda 
     found that 85 percent of teachers and 72 percent of 
     principals reported that providing financial incentives would 
     ``help a lot'' when it comes to attracting and retaining 
     quality teachers. Similarly, 72 percent of the public 
     supported paying more for those who teach in subjects such as 
     math, science, and special education in order to attract 
     teachers with knowledge in these subjects.


Reasons to Support Merit Pay for Teachers: Merit Pay Has Proven Results

       A number of school districts have explored merit pay as a 
     means to attract, motivate, and retain high-quality teachers. 
     Below are examples of merit pay systems that proponents point 
     to as promising models.
       Starting in 1999, the Denver Classroom Teachers Association 
     and the Denver Public Schools agreed to study the 
     relationship between student achievement and teacher 
     compensation. The initial study included a pilot project at 
     16 schools for four years. As a result of the initial pilot 
     program, it was determined that teacher compensation ``could 
     not be based on student achievement alone.'' Therefore, the 
     district and the teacher association formed a task force to 
     design a new comprehensive pay system for teachers. The task 
     force of teachers, school administrators, and local citizens 
     used private funds to develop a system dubbed ``ProComp,'' 
     which linked teacher pay to the school district's 
     instructional mission.
       Denver's ProComp system has four components that allow 
     teachers to earn additional pay. The first component is 
     ``knowledge and skill,'' which allows teachers to earn 
     additional compensation by completing annual training. The 
     second component is ``professional evaluation,'' which allows 
     salary increases based on evaluation. The third, ``student 
     growth,'' rewards teachers based on the academic achievement 
     of their students. And the fourth is ``market incentives,'' 
     which allows the district to offer additional pay for 
     difficult-to-fill positions.
       The Denver Board of Education and the teachers' association 
     approved ProComp in 2004. Next, the program will be submitted 
     to Denver voters later this year in order to raise the $25 
     million needed to finance the system.
       A second program proving successful is in Chattanooga, 
     Tennessee. In 2001, nine of Tennessee's twenty worst 
     performing schools were located in Chattanooga. The mayor and 
     the school district, with cooperation from the teacher 
     association (with funds provided by two private foundations), 
     devised a plan to address these nine elementary schools, 
     known as the ``Benwood schools.'' To attract highly qualified 
     teachers to teach in the Benwood schools, the group developed 
     a teacher-incentive package. The package included a $5,000 
     bonus for highly-qualified teachers as defined by student 
     achievement, and a $2,000 annual bonus for every teacher in a 
     school that significantly increased its test scores, among 
     other incentives.
       The ``Benwood schools'' results are impressive. The 
     percentage of third graders reading at or above grade level 
     rose from 23 percent in 2001 to 36 percent in 2003. Across 
     all grades, the percentage of students at or above grade 
     level in reading/language arts rose from 57 percent in 2003 
     to 77 percent in 2005. Math achievement increased from 54 
     percent to 70 percent during the same period. In addition to 
     raising student achievement, the Benwood schools report that 
     filling their teacher positions has been easier, turnover has 
     been reduced, and teacher morale has improved.

[[Page 30773]]




            Merit Pay Helps With Difficult-to-Fill Positions

       The success of the NCLB depends particularly on raising 
     achievement at high-needs schools, but, as Secretary of 
     Education Margaret Spellings describes it, the current system 
     detracts from that goal: ``We have a system that doesn't give 
     the teachers who want to help these students the support they 
     deserve. While most professions reward those willing to take 
     on the hardest assignments, the public school system often 
     does the opposite. Teachers with the skill and desire to 
     close the achievement gap find themselves drawn away from the 
     schools that need the most help. Many school systems even 
     offer de facto incentives for teachers to leave these 
     schools.'' That is, sometimes experienced teachers use their 
     seniority to transfer to more desirable schools.
       To address this, a number of school districts have employed 
     merit pay to reward highly qualified teachers who work in 
     designated high-poverty schools. One such program is the 
     Teacher Advancement Program (TAP) developed by the Milken 
     Family Foundation. In addition to merit pay, the TAP system 
     rewards teachers who take on additional responsibilities with 
     additional pay. In Arizona, talented teachers have shown 
     their support for this program by taking jobs at some high-
     need schools. Of the 61 teachers in one school district who 
     moved to high-need schools, 13 (or 21 percent) came from 
     schools in high socioeconomic areas, schools that are ``among 
     the best in the area.'' Additionally, school districts in 
     Florida, Alabama, Maryland, and Tennessee are offering 
     rewards to qualified teachers who work in designated high-
     poverty schools. According to the superintendent of one such 
     school district, since the initiative began, ``staffing the 
     urban schools has become much easier.''


 Merit Pay Raises Teacher Ouality and Treats Teachers as Professionals

       Education research demonstrates that teacher quality is the 
     single most important factor affecting student achievement. 
     That said, one recent study documents a decline in teacher 
     quality--which its authors attribute to lack of financial 
     reward for quality work. Economists Carline Hoxby of Harvard 
     University and Andrew Leigh of Australian National University 
     found that salary distribution for U.S. public school 
     teachers ``has narrowed so dramatically that those with the 
     highest aptitude can expect to earn no more than those with 
     the lowest. This alone accounts for more than three-quarters 
     of the decline in teacher quality.'' According to their 
     research (which used mean SAT scores to define ``aptitude'' 
     and was limited to women), 16 percent of American female 
     teachers in 1963 were of low aptitude, compared to 36 percent 
     in 2000. At the other end the spectrum, only one percent of 
     female teachers in 2000 were high-aptitude, compared to five 
     percent in 1963.
       This study underscores the assertion that, especially in 
     this highly competitive economy, the single-salary schedule 
     that bases compensation solely on college credits, education 
     degrees, and years of experience does not attract the best 
     and brightest. Highly capable and competent people are more 
     likely to be attracted to a system that rewards individual 
     performance.
       Teaching is a profession like none other. It is responsible 
     for educating, training, and preparing all others with the 
     skills needed to succeed. As such, it should be held to high 
     standards. Merit pay allows top teachers to be acknowledged 
     for their efforts, provides an incentive to other teachers, 
     and raises the bar of professionalism in teaching. It allows 
     teachers to be held more accountable and judged in relation 
     to their peers. Merit pay brings evaluation of outputs to 
     teaching, a standard used in most professions.


           Merit Pay Is More Cost-Effective for the Taxpayers

       Under the current single-salary teacher pay system, a 
     salary increase for one means a salary increase for all. 
     Based on survey data, a majority of the public (71 percent) 
     believes teachers deserve to earn more. However, ``just to 
     bring the salaries in the below-average states to the 
     national average would cost $8.5 billion--an amount that is 
     fiscally irrational.'' Proponents of merit pay note that it 
     would be less costly and would produce greater results to 
     target raises toward the most effective teachers. According 
     to the April 2005 Harris-Hart survey, ``public support for 
     paying the costs of higher teacher salaries is enhanced if 
     higher pay is linked to teacher performance and other 
     accountability measures.''


                            Refuting Critics

       Among the criticisms raised by opponents of merit pay is 
     that it inappropriately uses student performance as a measure 
     of a teacher's effectiveness. Yet, as the aforementioned 
     studies show, a merit pay system can be built around a 
     variety of objective and subjective measures, decided at the 
     local level. Successful pay systems can factor in a variety 
     of measures of excellence, including peer and principal 
     review, in addition to student achievement.
       A parallel issue is outcome-based payments for physicians 
     under Medicare, which is currently under consideration by the 
     Senate Finance Committee. The aim of merit pay for teachers 
     is similar to that of outcome-based payments for physicians. 
     As expressed by Senator Max Baucus (D-MT), that proposal 
     would ``reward better health-care quality with better 
     payment.''
       Critics also contend that it is unfair to grade teachers 
     and that grading could be subject to favoritism. One only 
     needs to be reminded that testing is a reality in education. 
     If gauging performance is inappropriate, then why do we give 
     grades to students? The typical response, as noted in the 
     Christian Science Monitor, is, ``We give grades because they 
     help us understand which areas need improvement and because 
     they acknowledge superb effort and ability.'' Also, grading 
     based on student performance is not subject to favoritism; 
     grading is simply a reflection of the numbers. A carefully 
     crafted merit pay program with clearly defined measures and 
     expectations should alleviate this concern.
       Another criticism by opponents is that merit pay plans have 
     not proven successful. A number of merit pay experiments 
     tried in the 1980s are no longer in place. Critics argue that 
     the decline of such programs was due to the difficulties of 
     accurately identifying effective teachers and rewarding good 
     teaching practices. These difficulties have been erased 
     following annual testing of grades three through eight as 
     required by NCLB, which provides objective measures to 
     identify effective teachers. Proponents of change insist the 
     experiments in the 1980s were too limited in scope, and were 
     destined to fail due to the stiff resistance from teachers 
     and unions. The programs running in Denver and Chattanooga 
     are two examples of programs that are yielding positive 
     results. Furthermore, now that NCLB gives parents the choice 
     to transfer out of low-performing public schools, a new sense 
     of competition among schools has emerged that has forced 
     changes in how parents and teachers view public schools.
       Critics also raise concerns that teachers will ``cherry 
     pick'' the best students to be in their class. Supporters of 
     merit pay note that this concern can largely be addressed by 
     measuring student achievement using ``value-added 
     standards,'' which look at student improvement or gain over 
     the course of the year instead of students' level of 
     achievement at the end of a year. Furthermore, when value-
     added standards are used, merit pay remains available to 
     teachers of all students. That is, it likely is easier to get 
     a 25-percentile gain from a student starting in the 30th 
     percentile than a 15-percentile gain from a student already 
     at the 80th percentile.
       Critics of merit pay argue that it damages the school 
     culture when ``superior teachers'' are singled out and given 
     special awards. They note that in competitive industries, 
     both employers and employees must consider the possibility 
     that competing companies will provide better products or 
     services at a lower price, and these incentives ``are not 
     present in public education.'' In response, supporters of 
     merit pay point to its wide and successful use in private 
     schools, which suggests that it is neither infeasible nor 
     unattractive. Private schools note they use merit pay to 
     recruit and retain the quality teachers demanded by tuition-
     paying parents. This broad use of merit pay by private 
     schools, of course, highlights a critical distinction between 
     public and private schools: such initiatives are ``easier in 
     the private sector because administrators are seldom subject 
     to the constraints imposed by a collective bargaining 
     process.'' Even so, the successes seen in the private schools 
     could point to the direction public schools might take if 
     teachers were rewarded for student achievements.
       Along the same lines, some critics assert that rewarding 
     some teachers and not others harms teacher collaboration 
     within a school. Yet, this did not prove true in the Denver 
     program. When Denver teachers were asked whether their pilot 
     program had an impact on ``cooperation among teachers,'' the 
     results were that 53 percent of the participating teachers 
     said the impact was positive, and only 2 percent said the 
     impact was negative. According to Brad Jupp, the teacher 
     representative to the ProComp taskforce, the Denver teachers' 
     survey response ``flies in the face of preconceptions that 
     teachers fear pay for performance based on student growth 
     because it will harm collegial relations.'' Furthermore, 
     schools need to reward the best teachers to attract and 
     retain them in the schools that need them the most. According 
     to education researchers Caroline Hoxby and Andrew Leigh, in 
     order to attract high-aptitude individuals back into 
     teaching, ``school districts need to reward teachers in the 
     same way that college graduates are paid in other 
     professions--that is, according to their performance.''
       The National Education Association argues that, rather than 
     pay increases for some, all teachers should be paid more. 
     However, history shows that there is no direct connection 
     between spending more money on education and increased 
     student achievement. According to the most recent analysis by 
     the Organization for Economic Cooperation and Development 
     (OECD) of its member countries' spending on education as a 
     percentage of Gross Domestic Product, the United States 
     spends the second-highest

[[Page 30774]]

     amount. And yet, U.S. student achievement does not match the 
     higher-than-average expenditure. While the proportion of 
     individuals completing high school has been rising in all 
     OECD countries, the rates of students graduating from high 
     school in most OECD countries are now higher than those in 
     the United States. Another study shows a similar lack of 
     correlation. According to the National Center for Education 
     Statistics, the United States outspends the other G-8 
     countries in per-student expenditures. And yet, fourth-grade 
     students in the United States ranked in the middle of the 
     list of countries in mathematics, and eighth-grade students 
     ranked 15th among the 45 countries in mathematics.


                               Conclusion

       Expectations are greater now for teachers because the No 
     Child Left Behind Act holds schools accountable for student 
     achievement. Merit pay is a positive way to reward those who 
     are effective in raising student achievement. Congress needs 
     to help states to implement alternatives to the traditional, 
     single-salary schedule used by the majority of public schools 
     to pay teachers if it wants to assure that schools nationwide 
     meet the NCLB's important goals. Merit pay increases schools' 
     ability to attract and retain highly qualified teachers, 
     especially in fields that command high salaries outside of 
     education, such as math and sciences, and it encourages 
     teachers to work in high-needs schools. A carefully developed 
     merit pay plan, with clearly defined measures and 
     expectations, should be able to address any legitimate 
     concerns raised by teachers and their unions. Eighty percent 
     of parents and teachers support salary increases for teachers 
     who improve student achievement. The Teacher Incentive Fund 
     proposed by the President and passed by the House will permit 
     many more schools to implement public-supported reforms, and 
     will provide a major incentive for needed changes in teacher 
     compensation nationally.

  Mr. SCHUMER. Mr. President, I rise today to express my strong support 
for the extension of a program that has provided vital support to our 
Nation's dairy farmers, helped to maintain the milk supply, and perhaps 
more importantly has helped to preserve an important way of life in 
rural America. The program I speak of is the Milk Income Loss Contract, 
MILC, Program, which since its inception in the 2002 farm bill has 
provided a crucial buffer between our Nation's hard-working dairy 
farmers and the rollercoaster ups and downs of the milk market.
  America's farmers are the backbone of its rural communities, and as 
markets, weather, and other challenges become more daunting we must 
make every effort to support them when they are in need. It is not just 
for the benefit of our farmers, who work hard year-round, often in the 
face of unforgiving circumstances, and their families, but for the 
towns that they help to support and for the health of the land that 
they steward. Small farms are the big business of rural America, and if 
it becomes too hard for them to survive, the communities where they are 
lost will suffer, both economically and culturally. Likewise, as the 
economic pressure to develop grows, more and more open space will be 
lost to suburban sprawl if small farms disappear. Allowing these farms 
to go under by failing to extend sensible supports like the MILC 
Program would be bad for the economy, bad for our environment, and bad 
for consumers.
  In very few places across the country are the stakes of the MILC 
Program's survival more starkly apparent than in my State of New York. 
Agriculture is a dominant industry in New York, and dairy farmers are 
the bulwark of New York's agricultural economy. In light of dramatic 
price swings and development pressures that are more severe than almost 
anywhere else in the country, the dairy farmers of my State need the 
type of support provided by the MILC Program when prices hit rock 
bottom. New York's farmers have received millions of dollars under the 
program, and I can tell you that that money has made a real difference 
in helping small family farms pull back from the brink and stay in 
business.
  Let me be clear about one thing. While this program provides crucial 
and timely support, it is not simply a big-dollar bonanza for America's 
dairy farmers. Payments under the program only kick in when prices dip 
below the trigger price of $16.94 per hundredweight, when they are most 
needed. In fact, in the almost 4 years covered by the program, there 
were only 26 months in which USDA had to issue payments. There was an 
entire year, from May of 2004 to May of 2005, where prices were 
fortunately high enough that support was not necessary. I raise these 
facts simply to say that anyone who would oppose this program, which 
provides crucial, targeted assistance to small dairy farms, on the 
grounds that it is a budget buster or boondoggle is way off the mark.
  The MILC Program expired at the end of September, so the need to 
extend it is pressing and vital. As we enter the New Year, milk prices 
may once again drop below the trigger price, and we need to make sure 
that the MILC Program is in place to do its job should our dairy 
farmers find themselves in need. The MILC Program is very important to 
New York, but not just to New York. The fact that the extension of this 
program has drawn strong support from Democrats and Republicans from 
multiple regions demonstrates its importance to our entire Nation.
  While I have serious misgivings with other provisions contained in 
this budget reconciliation conference report, the 2-year extension of 
the MILC Program is one item that I am glad to see is included. The 
MILC Program has shown itself to be an effective and vital part of our 
Government's commitment to support America's farmers, and I strongly 
support its extension.
  Mr. REED. Mr. President, this evening the Senate passed the 
conference report to the fiscal year 2006 Department of Labor, Health 
and Human Services, and Education appropriations bill. I want to 
express my concerns with this conference report. Not only does this 
legislation shortchange important priorities compared to the Senate 
version of this bill, which passed on a near unanimous vote of 94 to 3, 
it is not the only affront to these programs since an additional 
across-the-board cut to discretionary spending is included in the 
Department of Defense appropriations conference report.
  I am disappointed that this conference report fails to provide our 
children with the resources they need to compete in today's world. 
Children of all ages will be affected by the decisions we make today.
  This conference report decreases funding to programs that help 
students succeed at every stage. Indeed, it cuts education funding for 
the first time in 10 years. Despite rising tuition costs, college 
students will not see an increase in financial aid. The supplemental 
educational opportunity grant, SEOG, program will receive $26 million 
less than the Senate bill we passed in October. The maximum Pell grant 
award will be frozen at $4,050 for the fourth year in a row, making it 
more difficult for students to keep up with tuition and the cost of 
attending college.
  Funding for No Child Left Behind Act programs are reduced by 3 
percent, for a total that is $13.1 billion below the authorized level. 
Elementary and secondary school children will experience a decrease in 
services funded through the School Improvement Programs, the 
educational technology State grants, and the Javits Gifted and Talented 
Program, which all received less funding than in the Senate bill.
  Title I of the No Child Left Behind Act will see its smallest 
increase in 8 years, for a total of $12.8 billion. This is $9.9 billion 
less than the $22.75 billion authorized in the No Child Left Behind 
Act. This funding is critical to improve education in this country. In 
2001, members of this chamber made a commitment with the No Child Left 
Behind Act to give every child an opportunity at an excellent 
education. The President and our colleagues from across the aisle 
should join us in seeking to uphold that commitment.
  Infants and toddlers will also receive fewer services. The 
President's fiscal year 2006 budget proposal, the House bill, and the 
Senate bill all included increases in funding for Head Start. However, 
this conference report ignores those increases and instead includes 
less than 1 percent increase for this important early childhood 
program. Head Start centers across the country are cutting back on 
comprehensive services, the core of this program's success, because 
funding has been minimal year after year and has not kept pace with

[[Page 30775]]

inflation. In a time when we should be increasing our investment in 
early childhood development, this conference report moves us in the 
wrong direction.
  The conference report also reduces health funding by a total of $466 
million. It will set back critical research at the National Institutes 
of Health, unravel already fragile health care safety net programs, 
undermine essential health professions training programs, and leave our 
Nation completely unprepared to respond to a looming avian influenza 
pandemic.
  In this conference report, the National Institutes of Health, NIH, 
after seeing its budget doubled only a few years ago, will face the 
smallest percentage increase--less than 1 percent--in more than three 
decades. Withdrawing our support for revolutionary basic and clinical 
research at such a crucial time will undoubtedly set back our efforts 
in the war against cancer, as well as impede our quest to learn about 
the causes of and find effective methods to diagnose and treat 
debilitating conditions such as diabetes, heart disease, Alzheimer's, 
Parkinson's, Multiple Sclerosis, Lou Gehrig's disease, and autism. 
These diseases are not only devastating to those who are afflicted and 
the families who care for them, they continue to be a significant drain 
on our health care system and our economy.
  This bill also deals a devastating blow to essential safety net 
programs. First, it essentially stops cold the President's initiative 
to create 1,200 new or expanded health center sites to serve an 
additional 6.1 million people by 2006. The Senate-passed bill provided 
$105 million over the fiscal year 2005 level for community health 
centers while this bill contains an increase of only $66 million, in 
essence freezing any new competition for community health center funds. 
Second, the report slashes funding for programs that train health care 
providers who serve in health centers and other safety net sites.
  Title VII health professions programs have a long tradition of 
responding to the needs of medically underserved communities as well as 
providing support to increase the racial and ethnic diversity of our 
health care workforce. Under this bill, a broad array of small but 
essential programs pertaining to trauma care systems, geriatrics 
training and education, and emergency medical services will be 
eliminated. Over the past several years, Senator Roberts and I have led 
a strong bipartisan effort in support of these essential education and 
training programs. Gutting these programs is penny-wise and pound-
foolish. It will cripple our ability as a nation to be better prepared 
for the inevitable emergencies and tragedies that happen every day and 
the demographic tidal wave that will soon be hitting our health care 
system.
  The bill also neglected to include a Senate amendment allocating 
nearly $8 billion in emergency funds to combat the avian flu. Instead, 
the conference report actually diverts millions from the annual 
influenza program budget to pay for rural health programs, with a 
promise that funding for avian flu would be included in the pending 
Defense appropriations bill but at a much lower amount than the Senate 
originally provided.
  This conference report fails to provide sufficient funding for the 
Low Income Home Energy Assistance Program, LIHEAP. Rising energy prices 
threaten to financially overwhelm low-income families and seniors. This 
winter, the average family will face a $1,000 natural gas bill, an 
increase of 38 percent from just last year. For families using heating 
oil, prices are projected to hit $1,400, an increase of 21 percent over 
last year. These price increases are overcoming workers' salaries and 
seniors' Social Security checks. American families need economic relief 
from high energy prices. They need the security to know they will not 
have to decide between heating their homes or feeding their families 
and paying the energy bill or buying lifesaving medicines. With a sharp 
increase in energy prices this year, it is obvious that level funding 
for the LIHEAP program is inadequate. A majority of the Senate supports 
$5.1 billion in funding for LIHEAP, but this conference report does not 
reflect the will of my colleagues.
  This conference report fails the American people in a number of very 
important ways. It fails to maintain our promise to give children the 
opportunity to achieve their full potential. It fails to preserve our 
commitment to groundbreaking and potentially lifesaving advancements in 
medicine. And it fails to sustain support for essential programs that 
help vulnerable Americans.
  Mr. DURBIN. Mr. President, American families are ready for a change. 
They take a look at the priorities of this Republican Congress and the 
record of the Republican Party and say: it is time for a new direction 
for our country.
  You need to look no further than the Labor-HHS conference report. It 
is a low point of a Republican Congress that is disengaged from the 
real needs of American families. This bill is a crowning achievement of 
a Republican agenda out of touch with voters.
  Republicans are ignoring the problems that matter most to families in 
Illinois and all across the country health care, education, and jobs.
  What we have is a bill that cuts education funding for the first, the 
first time in a decade, slashes health funding by more than $300 
million, and eliminates funding for trauma care.
  This bill pulls the rug out from under America's working families.
  Many working families have children in public schools. I have been in 
a lot of public schools in Illinois that serve lower income kids. No 
matter how successful those schools are, I can tell you--they don't 
have money to spare. This bill actually spends less Federal money on 
schools and education than any federal budget in the last 10 years.
  How can we in good conscience reduce our commitment to education for 
low-income kids in public schools?
  But perhaps one of the more striking failures of the reconferenced 
version of the Labor-HHS appropriations bill is the utter lack of 
concern over preparing for the avian flu.
  Never mind that this bill eliminates the $7.9 billion added to this 
bill on the Senate floor to help local hospitals and health departments 
get ready for what pandemic flu.
  This conference report goes so far as to take an additional $120 
million out of already underfunded accounts at the CDC-money 
specifically designated to prepare for pandemic flu.
  ``We'll take care of that later,'' we were told.
  Meanwhile, my understanding is that the Defense appropriations bill 
includes half of the funding the Senate approved--half of the funding 
the President requested--to prepare for avian flu.
  What is driving these cuts is a tax reconciliation that benefits 
corporations and the wealthiest among us. Those benefits come at the 
expense of basic guarantees for working American families--that they 
can have decent public schools; that they can see a doctor; that they 
have a chance to getting back into the workforce when they are out; and 
that if a killer flu pandemic breaks out in this country we will have 
the capacity, the drugs, and the organization to beat it back.
  As a member of the conference committee, I did not sign the 
conference report and strongly oppose it.
  Together, America can do better.
  Mr. REID. Mr. President, tonight the Senate adopted the fiscal year 
2006 Labor-HHS-Education conference report by a voice vote. I would 
like to note for the Record that I do not support this legislation.
  This bill reflects the misguided priorities of the Republican 
Congress and will shortchange vital health care, education, and labor 
programs in order to cut taxes.
  At a time when the need for a well-educated, well-trained workforce 
is more critical than ever, Republican conferees provided education, 
health care, and job training programs $1.4 billion below last year's 
level.
  This bill cuts education funding for the first time in a decade. It 
cuts funding for No Child Left Behind Act programs, and the maximum 
Pell grant is frozen for the fourth year in a row, even as college 
costs are skyrocketing.

[[Page 30776]]

And, for the first time 10 years, the Federal Government will slide 
backward on its commitment to students with disabilities because this 
bill cuts the Federal share of the costs of special education.
  At a time when most Americans cite health care as their top priority, 
Republican conferees provided health care programs $466 million below 
last year's level, including a $137 million in cuts to rural health 
programs and a $185 million cut to the Bureau of Health Professions. 
Cutting these programs will make it even harder to recruit qualified 
professionals in many parts of the country.
  Moreover, Republican conferees eliminated nine vital health care 
programs altogether, including trauma care, rural emergency medical 
services, the geriatric education centers, health education training 
centers, and the healthy community access program. As a result of these 
cuts, not one new community health center will be created next year.
  At a time when we are the verge of major new breakthroughs in disease 
prevention and treatment, the conference agreement also includes the 
smallest percentage increase for the National Institutes of Health, 
NIH, since 1970, which will hinder promising medical research and 
disease prevention initiatives.
  These are just a few examples of the unconscionable cuts to crucial 
programs in this bill. Unfortunately, these cuts will be even deeper 
because the Republicans imposed an across-the-board cut against all 
nondefense and homeland security programs in the Defense appropriations 
bill.
  In summary, Mr. President this bill is bad for our children, bad for 
workers, bad for seniors, and bad for this nation. America can do 
better.
  Mr. KOHL. Mr. President, I rise today in opposition to the conference 
report to accompany the Labor, Health and Human Services, Education and 
Related Agencies Appropriations bill. This bill does not reflect our 
Nation's shared priorities and is a far cry from representing Wisconsin 
values. The people of Wisconsin value quality education for their 
children, affordable and decent health care for their families, and 
sound job training for workers. This bill falls short on all three 
accounts.
  For the first time in a decade, the LHHS bill cuts total Federal 
education funding. Funding for No Child Left Behind programs would be 
cut by $779 million bringing it to its lowest level since 2002. Funding 
for Title I, which serves low-income, disadvantaged students and 
schools across the nation, would receive $9.9 billion below the 
authorized level, its smallest increase in 8 years. And again, Congress 
fails to live up to its promise to provide 40 percent of the costs of 
educating students with disabilities: the bill cuts the Federal share 
of special education spending from 18.6 percent to 18.0 percent, just 
as our school districts are struggling to keep up with rising costs. 
Funding for Pell grant awards, which help make higher education 
affordable for many students, is frozen at $4,050 for the fourth year 
in a row, funding for Even Start and Education Technology is slashed, 
and funding for the National Youth Sports Program is eliminated, 
leaving almost 1,500 Wisconsin young people without summer enrichment 
programs they have come to count on. The list goes on and on.
  And education is not the only investment shortchanged. Some of the 
largest cuts in the LHHS bill are in programs that help shore up the 
health care safety net for people lacking other access to care and that 
address shortages of healthcare providers in underserved urban and 
rural areas. The conference report cuts funding for community health 
centers, which serve the uninsured and underinsured, to a lower level 
than provided in either the House or Senate versions of the bill. This 
amount would not allow a single new community health center to open in 
the coming year. Funding for the Bureau of Health Professions, which 
helps recruit qualified health professions throughout the country, 
would be cut by $185 million, including the elimination of geriatric 
education centers and health education training centers. Rural health 
programs would be cut by $137 million, including the elimination of the 
healthy community access program and rural emergency medical services.
  In addition, funding levels have not kept pace with our need for 
investment in lifesaving biomedical research. The National Institutes 
of Health's budget would receive a funding increase of less than 1 
percent, the smallest percentage increase to NIH since 1970. NIH will 
have to reduce the numbers of research grants awarded by 355. The bill 
would provide no increase in Federal funding for Alzheimer's research 
threatening the progress of promising research on that devastating 
disease. Less money would be available to support new research grants, 
attract talented, young researchers to the promising field of 
Alzheimer's research and fund clinical trials to test new drugs to 
treat the disease--and this is just one example of the damage to vital 
research that the LHHS conference report would do.
  Labor programs are not immune from the slash and burn approach to 
appropriations embodied in the conference report before us. They are 
cut by $430 million. At a time when five percent of Americans, and four 
and a half percent of people from my State of Wisconsin, are 
unemployed, this bill wrongly reduces adult job training by $31 million 
and youth job training by $36 million. Instead of helping the 
unemployed find work and providing training to upgrade the skills of 
those who have jobs, this conference report turns its back to them.
  I know we can do better for our children and families. I supported 
the Senate version of this bill, which was bipartisan and passed by a 
vote of 94-3. Unfortunately, this conference report falls far short; it 
is neither bipartisan nor bicameral, and actually provides $1.4 billion 
less than last year's level. In fact, LHHS is the only fiscal year 2006 
appropriations bill to receive an overall cut in funding from last 
year.
  I want to thank Senators Specter and Harkin for working tirelessly to 
improve this bill. I also want to thank them for the modest increases 
they provided in the CMS Survey and Certification program, the 
ombudsman program, as well as their work to restore Perkins funding. 
However, I cannot support a bill that forces our schools, our health 
care system, and our workforce to do more with less. I urge my 
colleagues to join me in rejecting this conference report.
  Mr. KENNEDY. Mr. President, the Christmas spirit was nowhere to be 
found tonight on the floor of the United States Senate as Republicans 
rushed through unconscionable cuts to the programs that American 
families deserve. This conference report affects the lives of every 
single American, and it lets them down. It fails our commitments to the 
education of our children, to our health care, to the poor, and to our 
jobs. At a time when we should be moving forward, and helping families 
meet the challenges of higher costs, this conference report moves us 
backward.


                               Education

  Parents know that education is a critical factor in making the 
American dream a reality for their children. An educated citizenry also 
makes a strong Nation possible. We cannot compete in the world without 
skilled workers. We cannot maintain a strong defense without a skilled 
and educated military.
  Once again, the United States has been presented with a global 
challenge, as we were when the Soviets launched Sputnik in 1958. In 
order to face this challenge with confidence, we should invest in the 
transforming power of education. That's not what this conference report 
says. This conference report says that education is not a priority. It 
says global competitiveness is not a priority. It says basic fairness 
is not a priority. It says the American dream is not a priority.
  In the face of this global challenge, this conference report does not 
invest more in education. In fact, for the first time in a decade, this 
conference report cuts the education budget. As we learn more about the 
critical importance of early education, as our elementary and secondary 
schools struggle to help our children meet higher

[[Page 30777]]

standards, as a college degree is becoming an imperative, and as the 
cost of that degree is skyrocketing, the Federal budget for education 
is actually going down.
  If our country is to remain strong in this rapidly changing world, 
our economy must work for everyone, and every American must have an 
equal opportunity to succeed. No Child Left Behind is not just a 
political slogan. It's a solemn pledge to every parent and every child 
in America.
  At a time when requirements under the law are more demanding than 
ever, this conference report cuts funding overall for No Child Left 
Behind programs by $1 billion, for a total that is $13.4 billion less 
than promised in the law. Over 3.2 million children will be left 
behind. Next year, schools have to raise the bar for adequate yearly 
progress, administer tests in reading and math on an annual basis, and 
ensure that all teachers are highly qualified. This conference report 
tells them they're on their own.
  Title I--the key NCLB program, which targets disadvantaged students--
is cut for the first time in 13 years. Title I funds will be $28 
million lower than last year, and 160,000 fewer children will be 
served. Funding to Massachusetts schools will be cut more than $4.3 
million.
  The conference report cuts Head Start funds by $68.5 million, leaving 
750,000 eligible preschoolers without services, and dropping from the 
program 9,500 children who are currently enrolled in Head Start 
classrooms. It slashes the Even Start family literacy program, taking 
services away from nearly 35,000 children.
  The conference report cuts funds for after-school programs, denying 
after-school programs to 13,000 children currently enrolled. The 
conference report also cuts funds to keep our schools safe and drug-
free.
  With the first cut to special education funding in a decade, this 
conference report moves backwards on our commitment to disabled 
students. The Federal share of the cost of educating students with 
disabilities actually drops from 18.6 percent last year to 17.8 percent 
this year. The funding in the report is more than $4 billion short of 
the amount promised just 1 year ago when we passed the IDEA Improvement 
Act.
  At a time when American students are performing below the 
international average in math and science, the conference report cuts 
$13 million in funds for the Math and Science Partnerships at the 
Department of Education, leaving funding well below half of the amount 
promised in No Child Left Behind.
  At a time when technology is more and more prevalent in our lives and 
in our economy, this conference report continues the bewildering 
downward trend in educational technology funding. In fiscal year 2004, 
the program was funded at almost $700 million. This conference report 
includes $248 million, a 50 percent cut since last year and just over a 
third of the 2004 funding.
  At a time when college costs have skyrocketed 46 percent since 2001, 
and almost 400,000 college-ready students do not go to a 4-year college 
because of financial need, this conference report provides no increase 
in student aid. It leaves Pell grants frozen in place for the fourth 
year in a row.


                                  Jobs

  Just as this conference report leaves millions of children behind, it 
also leaves millions of American workers behind.
  Close to 8 million Americans are unemployed, and most remain 
unemployed for 18 weeks or more. The picture is so bleak that many 
workers have given up hope of finding work altogether. The real 
unemployment rate is almost 9 percent when these discouraged workers 
are counted.
  Workers affected by the recent storms in the gulf are particularly at 
risk. Hundreds of thousands of gulf coast workers continue to struggle 
to find work in the wake of Hurricanes Katrina and Rita. Twenty-five 
percent of Katrina evacuees are unemployed, including 30 percent of 
those evacuees that have been relocated across the country. African-
American and Hispanic evacuees fare even worse, with an overall 
unemployment rate of about 43 percent. Thus far, a total of 502,000 
initial claims for unemployment benefits can be traced to the two 
storms.
  Yet, the conference report would cut funding for unemployment 
insurance and employment services offices that help jobless workers 
around the country. The conference report also cuts job training, as 
many workers struggle to improve their skills in order to secure good 
jobs. These illogical steps are an insult to those struggling to 
recover from our Nation's greatest national disaster and those 
struggling to meet the challenges of a global economy.
  In addition, as we continue the long process of rebuilding the gulf 
coast, thousands of relief and recovery workers are facing toxic 
working conditions. Workers cleaning up in the aftermath of the storms 
are being exposed to hazardous chemicals, oil and sewage contaminated 
waters, mold, and other hazardous substances. Even outside of the gulf 
coast region, death rates among Hispanic and immigrant workers continue 
to be alarmingly high. Yet, our Government will be doing less to 
protect the lives and health of our workers. The small, 1.8 percent 
increase that the conference report provides for funding the 
Occupational Safety and Health Administration is more than eaten up by 
inflation and won't be enough to maintain current levels of enforcement 
and training.
  The conference report also short-sightedly ignores the future needs 
of health care workers. We are facing a looming threat of a pandemic 
flu epidemic, yet the conference report prohibits the Department of 
Labor from enforcing key safety standards to protect health care 
workers from tuberculosis. These are very basic measures that would 
help protect healthcare workers from all deadly infectious diseases, 
and it is unconscionable to bow to special interests at the expense of 
those who will be on the front lines of our battle against this public 
health crisis.
  In addition to threatening the safety of American workers, the 
conference report also threatens their job security. It is hardly news 
to any of us that globalization is rapidly creating a single global 
workforce. Now more than ever, the jobs of American workers are at risk 
due to the poor wages and working conditions in other parts of the 
world. It's critical that we invest in efforts to improve working 
conditions around the world, for the sake of all workers, including our 
own. Yet, the conference report slashes the budget for the 
International Labor Affairs Bureau, ILAB, by 22 percent--from $93 
million to $72.5 million--threatening our ability to protect American 
jobs and protect the basic rights of workers and children across the 
globe.


                                 Health

  The conference report also fails to protect American families from 
public health catastrophes.
  Congress has few higher priorities than protecting the American 
people from the deadly strain of influenza that is threatening the 
world and could take the lives of millions of Americans and damage the 
health of millions more.
  The threat from this deadly new disease has been compounded by our 
inattention and failure to prepare. For years, public health experts 
sounded warning after warning about the devastation that a flu pandemic 
would bring, but year after year, we failed to respond to this deadly 
threat in its earliest stages.
  Canada, Australia, Britain, Japan, and other nations released plans 
long ago. They're implementing their plans now, but the Bush 
administration has put out a plan for only one Federal agency. A 
response plan for the Department of Health and Human Services is a 
critical first step, but even that plan is incomplete. It's missing the 
actual operational plans for responding to a pandemic.
  The President has called, however, for a significant investment in 
preparedness. I attended his speech at NIH, where he urged that $7 
billion be appropriated immediately for preparedness.
  We still have time to avert the serious consequences that a pandemic

[[Page 30778]]

would bring, but only if we act now to begin improving our readiness. 
The Senate heeded the call to action by unanimously approving an 
amendment for $8 billion in preparedness funding offered by Senator 
Harkin.
  But the Republican leadership isn't on board. They stripped the $8 
billion amendment out of this conference report, and provided only half 
that amount in the Defense Appropriations conference report. These 
irresponsible cuts will mean that critical programs will have to be 
delayed. Which parts of our response do our Republican colleagues think 
we should delay? Production of new vaccines? Stockpiling of flu 
medicine? Support for hospitals and health agencies preparing for the 
pandemic? I'd like to hear them explain to the American people which of 
these activities they think are unimportant, which of these priorities 
can wait, and which are not needed if disaster strikes.
  This conference report also means that we will fail to capitalize on 
the promise of this century of the life sciences. With the 1 percent 
across the board cut, funding for NIH will decrease. This has happened 
only four other times in NIH history. This is woefully inadequate to 
maintain our tradition of research excellence and breakthrough medical 
science. This is the lowest NIH funding level in 35 years and the 
research and development budget fails to keep up with inflation. These 
budget cuts will mean that four of five innovative new ideas will be 
ignored. Over 500 new research grants will fall by the wayside. It's 
unbelievable that with the threat of a pandemic looming over America, 
the Republican Congress is denying the resources we need to discover 
new, life-saving treatments and cures.
  Not only does the conference report not include funding for the avian 
flu preparedness, funding that would help to improve State and local 
preparedness against bioterrorist attacks was cut by over $96 million.
  As we know, maintaining the health of our Nation is not limited to 
emergency preparedness. Providing basic health services to the most 
vulnerable Americans and health promotion, and disease prevention are 
also vitally important. But this conference report cuts critical health 
promotion and prevention programs at the CDC will be cut by $307 
million and HRSA programs are slashed by $754 million.
  This conference report funds community health centers, that serve as 
a safety net of care for the most vulnerable, at less than half of the 
increase passed by the Senate, while eliminating the Healthy 
Communities Access Program which provides funds for health care 
providers, community-based organizations and local government to 
coordinate and strengthen health services for the poor and uninsured 
members of their communities. Funding is also cut for critical health 
professions training programs that address the shortages of providers 
and train them to deliver care in underserved areas and to serve the 46 
million Americans who lack health insurance--often in community health 
centers. Funding for critical health professions training programs that 
encourage diversity in the health professions and train health care 
providers that will deliver care in underserved areas are cut 52 
percent and training for geriatric medicine was cut by 100 percent.
  With a 1 percent across the board cut, several programs, including 
family planning and HIV/AIDS prevention programs, will now receive a 
decrease in funding, despite the growing need for these services.


                                 LIHEAP

  The conference report leaves our poorest Americans out in the cold in 
a time of soaring energy prices. Households heating primarily with 
natural gas will pay an average of $281 more this winter for heat--an 
increase of an incredible 38 percent over last year. Those relying 
primarily on oil for heat will pay $255 more--an increase of 21 
percent.
  This fall, the Senate voted against fully funding LIHEAP four times, 
and this conference report only provides flat funds. This is 
unacceptable.
  We know that heating costs are at record levels this year.
  Big oil profits are fatter than ever. Exxon-Mobil--the largest oil 
company in the United States--reported 3rd quarter profits of almost 
$10 billion, a 75 percent increase over last year.
  Exxon-Mobil alone made $10 billion in the last quarter--yet the 
Republican leadership refuses to fund LIHEAP at its authorized level of 
$5.1 billion. The Republican leadership is Robin Hood in reverse--
robbing the poor to pay the rich.
  So this conference report leaves our children behind, American 
workers behind, and American families behind. It leaves America behind.
  It's unfortunate that Christmas comes this week, because this 
conference report is the Grinch that steals Christmas for so many. 
While the neediest Americans are struggling to find some hope this 
season, the special interests are sledding away with all the presents. 
Bah humbug.
  We should embrace the hopes and dreams of millions of Americans--not 
abandon them, as this conference report does. All parents want their 
children to have lives of fulfillment and opportunity; to raise strong 
and healthy families and afford to live comfortably in safe 
neighborhoods. Our actions in Congress should strengthen, not weaken 
America.
  The PRESIDING OFFICER. Without objection, the conference report is 
agreed to, and the motion to reconsider is laid on the table.

                          ____________________




                            MORNING BUSINESS

  Mr. McCONNELL. Mr. President, I ask unanimous consent that there now 
be a period for morning business with Senators permitted to speak 
therein for up to 10 minutes each.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                  UNANIMOUS-CONSENT REQUEST--H.R. 4297

  Mr. KYL. Mr. President, I have a unanimous consent request to remake.
  As my colleagues know, there is one major unfinished piece of 
business yet that we need to conclude, and it is the action on the tax 
reconciliation bill. This is a bill which has the section 179, small 
business expensing, the small savers credit for low-income families, 
those making under $25,000 a year, above-the-line deduction for college 
tuition costs, R&D, tax credit, and extension of capital gains and 
dividends.
  These are all-important matters that we need to act on.
  As a result, I ask unanimous consent that the Senate proceed to the 
immediate consideration of Calendar No. 325, H.R. 4297, the House 
reconciliation bill.
  I ask unanimous consent that all after the enacting clause be 
stricken and the text of S. 2020 as passed by the Senate be inserted 
thereof; that the bill, as amended, be read a third time and passed, 
the motion to reconsider be laid upon the table, the Senate insist upon 
its amendment and request a conference with the House and the Chair be 
authorized to appoint conferees at a ratio of 2 to 1.
  The PRESIDING OFFICER. Is there objection?
  Mr. BAUCUS. Mr. President, reserving the right to object, the 
majority seeks to go to conference on the House-passed tax 
reconciliation bill. The House-passed bill includes tax cuts for 
dividends and capital gains. And the House-passed bill does not include 
language to prevent 17 million middle-income Americans from getting a 
tax increase from the alternative minimum tax.
  The Constitution requires the House to go first on tax measures like 
this. In order to build momentum for their tax cuts, the majority in 
the Senate chose to proceed before the House. But now the Constitution 
requires that the Senate take up the House-passed tax reconciliation 
bill and amendment.
  That is where we are.
  There are a number of Senators on this side of the aisle who would 
like to avail themselves of the opportunity to propose amendments to 
the House-passed bill. I expect that several Senators would choose to 
substitute middle-income tax cuts as alternatives to the dividend and 
capital gains tax cuts.
  It is important to remember that under the Budget Act Senators would 
have up to 20 hours to debate amendments to the House-passed bill. I, 
for

[[Page 30779]]

one, would seek to offer a motion to instruct conferees on this bill to 
ensure that we do not raise taxes on those 17 million Americans who 
become subject to the AMT, unless we act. Under the Budget Act, 
Senators would have an additional 10 hours to debate motions to 
instruct conferees. We are not in the position to conduct 10 hours of 
debate at this late hour. The exercise, I might say, would be 
inappropriate. So I must object.
  The PRESIDING OFFICER. Objection is heard.

                          ____________________




                  UNANIMOUS-CONSENT REQUEST--H.R. 4096

  Mrs. HUTCHISON. Mr. President, if we are not going to take up the 
major tax cut at this time, I am going to ask unanimous consent to take 
up the AMT.
  In 1969, when Congress passed the AMT it was supposed to affect 1 in 
500,000 taxpayers who make over $200,000 a year. In fact, that is not 
the case today. By 2010, the AMT is expected to ensnare 32 million 
taxpayers, the majority of whom have adjusted gross incomes of under 
$100,000. In fact, this especially hits people with children. By the 
year 2010, among married taxpayers with two or more children, 85 
percent of married taxpayers with two or more children in 2010 will 
face the AMT. It prohibits the ability to deduct for children.
  So I ask unanimous consent that the Senate proceed to the immediate 
consideration of Calendar No. 326, H.R. 4096, the alternative minimum 
tax relief.
  I ask unanimous consent that the bill be read a third time and 
passed, the motion to reconsider be laid upon the table, and that any 
statements related thereto be printed in the Record.
  The PRESIDING OFFICER. Is there objection?
  Mr. BAUCUS. Mr. President, reserving the right to object, the 
majority, through the Senator from Texas, seeks unanimous consent to 
pass the House bill which extends the AMT exemption level. The House-
passed bill purports to be an AMT hold harmless bill. It is not. It 
does not hold everyone harmless.
  In fact, 600,000 additional families will pay AMT next year under 
that House bill which the majority seeks our consent. Under the version 
we in the Senate passed last month, with 64 Senators in support, we 
ensure that not one additional taxpayer faces higher taxes in 2006 due 
to an onerous alternative minimum tax.
  The same cannot be said of this House bill for which consent is 
agreed to.
  It is true that if Congress does not act, 17 million more middle-
income Americans will be subject to the AMT come January 1. We would 
prefer to get it right the first time and not have to make promises to 
close the gap for those 600,000 hard-working American taxpayers next 
year.
  I ask the Senator from Texas if she would amend her request instead 
to seek consent for an AMT relief amendment that I believe the majority 
would be supportive of, since it shows the Senate's provision, so that 
no AMT taxpayers are created next year. Further, while we are seeking 
to do these tax cuts outside of reconciliation, we would have them 
count against the total allowed under reconciliation. That would be 
part of the amendment. The text of that Senate amendment is pending at 
the desk, and I am asking, Will the Senator from Texas accept this 
amendment?
  Mrs. HUTCHISON. Mr. President, with all due respect to the Senator 
from Montana, I don't see how we can take part but not all of the tax 
reconciliation bill. It is time to do away with the AMT.
  I appreciate the fact that the Senator from Montana has said he, too, 
wants to do that and that we need to do it right. To do it right we 
need to do the whole tax reconciliation bill.
  The PRESIDING OFFICER. Is there objection?
  Mr. BAUCUS. I ask the Senator, will she object to an amendment I 
suggested that the whole AMT be held harmless and that it count under 
pay-go in terms of the tax, the budget provisions which provide for $70 
billion over the next 5 years? Those are the two conditions.
  Mr. KYL. Reserving the right to object to the proposed amendment to 
the unanimous consent, I believe on our side we would not object to the 
form of the so-called AMT patch that the Senator from Montana has 
proposed. Of course, we would object to his counting of that against 
the reconciliation number, or the so-called pay-go provision.
  I guess I ask for an amendment to his proposed amendment which would 
accept the broader AMT patch, as the Senator first described it, but 
nothing in addition to that.
  The PRESIDING OFFICER. The Senator from Montana.
  Mr. BAUCUS. As I hear their response, they will not agree to my two 
suggested conditions and amendments. Therefore, I must respectfully 
object.
  The PRESIDING OFFICER. An objection has been heard.
  Mrs. HUTCHISON. Mr. President, I do hope the Senator from Montana, 
working with the chairman of the Committee on Finance, will make it a 
priority early next year to have the tax reconciliation package go 
through with AMT and with the other tax cuts that would be extended to 
show the American people they can rely on the tax cuts that have been 
passed and have helped the economy in its recovery.
  It is very important we not leave any question in anyone's mind that 
the tax cuts that started the economic upturn 2 years ago will be 
extended. The American people will get to keep the money in their 
pocketbooks, spend it, and fuel the jobs our economy has produced.
  Mr. BAUCUS. Mr. President, I listened carefully to the Senator from 
Texas. I think we all agree we have to do something about the AMT. It 
is a big problem.
  I, frankly, tell the Senator I have introduced a bill to totally 
repeal AMT. It is a pernicious stealth tax and should not be incurred. 
We would like to work with the Senator to try and find a way to 
accomplish that.
  Mrs. HUTCHISON. I sign on to that effort immediately. With this kind 
of coalition maybe we can do something very important by doing away 
with the AMT in this country.

                          ____________________




                   UNANIMOUS-CONSENT REQUEST--S. 2164

  Mr. DURBIN. Mr. President, as part of a bipartisan action this 
morning, Democrats and Republicans agree to send a reconciliation bill 
back to the House of Representatives for further consideration. Even 
though the vast majority of this bill hurts working families and the 
most vulnerable among them, there were a handful of important proposals 
that we support in that bill that need to be enacted immediately. That 
is why I am going to be asking unanimous consent in just a moment for 
the Senate to pass the Health and Welfare Relief Act of Senator 
Stabenow of Michigan.
  This bill prevents the scheduled reduction in Medicare physician 
payments while holding Part B premiums harmless for beneficiaries. The 
bill extends TANF and transitional medical assistance, TMA, for an 
additional year. Finally, the bill provides temporary Medicaid relief 
to Katrina victims.
  We should all be able to agree, even if there are parts of the bill 
subject to a point of order, parts that will be debated, there are many 
provisions in that bill that meet pressing needs that are important and 
need to be addressed on a timely basis. Many of them are taken directly 
from the conference report my friends across the aisle have just 
supported. I hope we can take up this bill and pass it today.
  Therefore, I ask unanimous consent the Senate proceed to the 
immediate consideration of S. 2164, the Health and Welfare Relief Act 
of 2005, introduced earlier by Senators Stabenow, Reid, Baucus, and 
others; that the bill be read three times, passed, and the motion to 
reconsider be laid upon the table without any intervening action or 
debate.
  The PRESIDING OFFICER. Is there objection?
  Mr. McCONNELL. Mr. President, I object.

[[Page 30780]]



                          ____________________




                           EXECUTIVE SESSION

                                 ______
                                 

                           EXECUTIVE CALENDAR

  Mr. McCONNELL. Mr. President, I have a series of judicial nominations 
that have been cleared on both sides. I ask unanimous consent the 
Senate immediately proceed to executive session to consider the 
following nominations on today's Executive Calendar: Nos. 457, 458, 
459, 460, 461, 462, 463, 471, and 472. I further ask unanimous consent 
that the nominations be confirmed, the motions to reconsider be laid 
upon the table, the President be immediately notified of the Senate's 
action, and the Senate then return to legislative session.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The nominations considered and confirmed en bloc are as follows:


                             the judiciary

       Joseph Frank Bianco, of New York, to be United States 
     District Judge for the Eastern District of New York.
       Timothy Mark Burgess, of Alaska, to be United States 
     District Judge for the District of Alaska.
       Gregory F. Van Tatenhove, of Kentucky, to be United States 
     District Judge for the Eastern District of Kentucky.
       Eric Nicholas Vitaliano, of New York, to be United States 
     District Judge for the Eastern District of New York.
       Kristi Dubose, of Alabama, to be United States District 
     Judge for the Southern District of Alabama.
       W. Keith Watkins, of Alabama, to be United States District 
     Judge for the Middle District of Alabama.
       Virginia Mary Kendall, of Illinois, to be United States 
     District Judge for the Northern District of Illinois.


                   federal communications commission

       Michael Joseph Copps, of Virginia, to be a Member of the 
     Federal Communications Commission for a term of five years 
     from July 1, 2005. (Reappointment)
       Deborah Taylor Tate, of Tennessee, to be a Member of the 
     Federal Communications Commission for the remainder of the 
     term expiring June 30, 2007.


                    NOMINATION OF GREG VAN TATENHOVE

  Mr. McCONNELL. Mr. President, if I may, Calendar No. 459, that I just 
read and was just confirmed by the Senate, is a former member of my 
staff, Greg Van Tatenhove, who is, at the moment, the U.S. attorney for 
the Eastern District of Kentucky. He is an outstanding lawyer. He will 
be a fine addition to the Federal judiciary.
  As a former staff member of mine, I say to my colleagues, you have 
done a great thing in confirming him. He will be a distinguished member 
of the Federal judiciary.
  Mr. President, I strongly support the nomination of Greg Van 
Tatenhove to the U.S. District Court in the Eastern District of 
Kentucky.
  Greg Van Tatenhove has been an outstanding public servant for the 
better part of 20 years. I first met Greg when he was a young aide to a 
Member of Congress. He later joined my legislative staff, where he 
performed superbly before leaving to attend law school.
  Greg distinguished himself in law school by being chosen as an 
Articles Editor of the Kentucky Law Journal and receiving a citation 
for Excellence in Oral Advocacy in the Moot Court Program. After 
graduation from law school, Greg spent a year as clerk to U.S. District 
Court Judge Eugene Siler.
  Greg was then chosen to join the Federal Programs Branch of the 
Department of Justice through the Attorney General's Honors Program. He 
was one of only eleven young attorneys to be chosen nationwide out of 
hundreds of applicants for this prestigious branch. This branch is well 
known for handling especially complex and precedent-setting legal cases 
on behalf of the United States. During his 4 years at DOJ, the 
Department recognized Greg for his excellent performance with its 
Special Achievement Award.
  Greg then returned to Capitol Hill, where he spent 7 years as Chief 
of Staff and Legal Counsel to Representative Ron Lewis of Kentucky. 
During his tenure, he developed a reputation as one of the 
Commonwealth's outstanding young legal minds, and in 2001, he was 
nominated by President Bush as United States Attorney in the Eastern 
District of Kentucky, a position which he has ably filled for the past 
4 years.
  In the course of his service as the chief federal law enforcement 
officer in the Eastern District, he approves all indictments, all major 
plea bargains, and is directly involved in all of the major cases 
involving the United States that come before the court, both civil and 
criminal.
  Based on Greg's outstanding record, it should come as no surprise 
that President Bush nominated him as a judge for the U.S. District 
Court for the Eastern District of Kentucky on September 13, 2005. I 
applaud the President's choice, and I proudly support his nomination. 
Greg's high intellect, integrity, character, and devotion to public 
service make him an ideal choice for the District Court.
  Greg's nomination has been widely praised by those who know him best, 
including two members of the Sixth Circuit Court of Appeals, five 
members of the District Court on which he will serve, and numerous 
former colleagues. They share my conviction that Greg will be a 
splendid addition to the federal bench.
  In addition to his outstanding intellectual and professional 
abilities, Greg is a devoted family man. I know his wife Jane and his 
two beautiful children, Cooper and Catherine, are proud of him as he 
assumes this new position of responsibility.
  It was clear to me 20 years ago when I hired Greg, even then a young 
man of great accomplishment, that he would go on to greater success. 
His confirmation is the result of many years of hard work, great 
intellect, commitment to public service, and the highest ethical and 
professional standards.
  Greg Van Tatenhove will be an outstanding District Court judge, and I 
urge my colleagues to support his nomination.
  Mr. LEAHY. Last week marked the 214th anniversary of the adoption of 
the Bill of Rights to the Constitution. Over the last week, this Nation 
and this Senate have been engaged in a debate about the importance of 
protecting and preserving those rights as we consider how best to 
revise and reauthorize the PATRIOT Act. We have also learned about the 
White House's domestic surveillance program that short-circuited the 
judicial safeguards established by Congress.
  Today we engage in an action unique to the Senate. We consider for 
confirmation to lifetime appointments to the judiciary a number of 
nominees. This is an instance in which all three branches of the 
government are involved. The President nominates, the Senate considers 
the nominations and, if confirmed, the nominee is appointed to become a 
member of the judiciary. The judiciary has a particularly important 
role in the protection of the rights and liberties of all Americans. It 
was Justice O'Connor who, writing for the Supreme Court, noted that 
even wartime does not give the President a ``blank check'' when it 
comes to actions that impact Americans' rights. Every day in courtrooms 
across the country federal judges are the last line of defense for 
Americans' rights.
  If anyone doubts the importance of the position of Federal district 
court judges, they need look no further than the district court judges 
assigned to sit on Federal Intelligence Surveillance Act, or FISA 
Court. This court was designed specifically to act as a check on the 
Executive Branch, and when it is consulted as the law requires, it 
performs a crucial role in our Government's system of checks and 
balances. In an extraordinary development, we read today that a federal 
judge assigned by the Chief Justice of the United States to serve on 
that court has resigned in the face of the disclosure of this 
President's secret surveillance program outside of the legal FISA 
process.
  With the votes today, the Senate will be called upon to grant or 
withhold its consent to another seven judicial nominees. If they are 
confirmed, the Senate will have confirmed 225 of this President's 
judicial nominees to lifetime appointments. If they are confirmed, the 
Senate will increase the number of confirmations this year by 50 
percent in just one day, from 14 to 21.
  I chaired the Judiciary Committee for the second half of 2001. No 
judges had been confirmed that year before I

[[Page 30781]]

became chair. In the last 5 months of the year we were able to have 
hearings, Committee consideration, and Senate votes on 28 new judges. 
We worked hard in spite of the 9/11 attacks and the anthrax attacks and 
succeeded in reducing vacancies and filling longstanding vacancies. 
Indeed in the 17 months I chaired the Judiciary Committee, the Senate 
proceeded to confirm 100 of this President's nominees. It took 
Republicans more than twice as long to match our record. Democrats 
proceeded in spite of the recent history of Republicans pocket 
filibustering more than 60 of President Clinton's qualified, moderate 
nominees.
  As is clear from our record since that time, we have been willing to 
continue working with the Republican majority to fill vacancies on the 
federal bench--if only the President would send nominees. 
Unfortunately, along with home heating prices, gasoline prices, 
interest rates, the budget deficit and the trade deficit, judicial 
vacancies have also increased dramatically this year. It almost seems 
that unless the White House can pick a partisan political fight, it 
really does not care very much about the Federal judiciary. I noted in 
the spring that we had not received new nominations this year from the 
President. Only recently has that begun to change but there are still 
more than 25 vacancies without a nominee. I urge the President, as the 
Democratic leader and I have urged him for some time, to work with 
Senators on both sides of the aisle to identify qualified, consensus 
candidates to fill these vacancies.


                  Nomination of Virginia Mary Kendall

  Mr. DURBIN. Mr. President, included in the nominations just approved 
by the Senate is the nomination of Virginia Mary Kendall of Illinois to 
be the U.S. district judge for the Northern District of Illinois. She 
is replacing the retired Susanne Conlon. This is an extraordinary woman 
who will make a great contribution to the Federal judiciary.
  She is strongly supported by Senator Obama and myself, as well as 
Speaker Dennis Hastert. On a bipartisan basis, we reviewed many fine 
candidates for this vacancy and found Virginia Kendall to be the best. 
With the approval of the White House, she moved through the Senate 
Judiciary Committee.
  I am anxious, as soon as I finish these remarks, to go to the 
cloakroom, place a phone call, and give her a Christmas present and let 
her know her nomination has been approved by the Senate.
  I would like to thank Judiciary Committee Chairman Specter, as well 
as Ranking Member Leahy, for expediting the consideration of Ms. 
Kendall's nomination. I also want to thank Senator Obama for the 
significant role that he played in the selection process. Finally, I 
want to thank House Speaker Hastert for his role in the process and for 
his willingness to continue an Illinois tradition of seeking bipartisan 
cooperation in the recommendation of Federal district court nominees 
for presidential consideration.
  Virginia Kendall is a highly respected federal prosecutor in Chicago 
with a stellar reputation for diligence, intelligence, and integrity. 
She has been in the U.S. Attorney's office in the Northern District of 
Illinois for the past decade, and she has a great depth of experience.
  She is one of the leading prosecutors in the country in the area of 
child exploitation over the Internet, and she was the lead counsel in 
the first Internet kidnaping case brought by the Department of Justice. 
She has also prosecuted domestic terrorism and corporate fraud cases.
  Ms. Kendall has helped reduce Chicago's murder rate, by creating a 
novel program that emphasizes better outreach by law enforcement to 
parolee gun offenders and to at-risk students in the Chicago Public 
Schools. She has been the lead prosecutor in cases involving the sale 
of weapons over the Internet to minors.
  Ms. Kendall has also been extremely active in pro bono work. She has 
created programs in which Federal prosecutors go into Chicago high 
schools and educate students about the dangers of gun violence and the 
workings of the criminal justice system. One of her programs received 
an award from the Department of Justice as the most outstanding 
volunteer program in the country. Ms. Kendall and her husband have 
worked closely with students from the Cristo Rey Jesuit High School, an 
amazing success story of a high school in Pilson, a low-income Latino 
neighborhood in Chicago.
  In addition, Ms. Kendall has served as an adjunct law professor at 
Loyola University law school for the past 12 years. Some of her former 
law school students contacted me and said she was the best professor 
they ever had. That speaks very well of Ms. Kendall's ability not only 
to understand the law, but to teach it.
  One of Ms. Kendall's biggest supporters is her boss--Patrick 
Fitzgerald--the United States Attorney in the Northern District of 
Illinois. He wrote me a long letter singing her praises, and he 
concluded:

       I can also assure you that Ginny is a warm and 
     compassionate person who is very attentive to the human needs 
     of those she works with and supervises. Ginny's combination 
     of legal talents, experience as a prosecutor, supervisor and 
     instructor, and commitment to bettering the communities most 
     in need of help would stand her in great stead if she were 
     selected as a federal judge in this district.

  I am pleased to report that Ms. Kendall also receives high marks from 
her opposing counsel and has an excellent reputation in the criminal 
defense bar. One of her opposing counsel described her as ``honorable, 
decent, ethical, and someone with an ideal temperament.'' Another 
opposing counsel said Ms. Kendall was ``down to earth, honest, 
straightforward, reliable, and full of integrity.''
  I was not surprised to learn that a substantial majority of the 
American Bar Association's judicial nomination review committee gave 
Ms. Kendall their highest possible rating of ``Well Qualified.'' I am 
confident that, as a judge, Ms. Kendall will serve with honor, courage, 
and distinction on the Federal bench in the Northern District of 
Illinois for many years to come.

                          ____________________




                          LEGISLATIVE SESSION

  The PRESIDING OFFICER. Under the previous order, the Senate will 
return to legislative session.
  The Senator from Louisiana.
  (The remarks of Ms. LANDRIEU pertaining to the introduction of S. 
2171 and S. 2172 are located in today's Record under ``Statements on 
Introduced Bills and Joint Resolutions.'')

                          ____________________




                            HURRICANE RELIEF

  Ms. LANDRIEU. Mr. President, while we did leave a lot of work to be 
done, I do want to thank my colleagues, particularly Chairman Cochran 
and Senator Byrd, for shepherding through a tremendous direct relief 
bill. That would not have happened without these two leaders. It was 
initially sent to us at $17 billion, with an anemic funding level for 
our levees. It was basically a bill that fixed Federal buildings and 
sent money to Federal bureaucracies and didn't reach the people 
directly or our cities or counties or parishes or churches or schools 
or hospitals. Senator Cochran took that bill and he stood it up and 
added some extraordinary pieces to it and fought like a tiger to keep 
that money flexible but accountable so our Governors could start 
rebuilding our States again, with help from the Federal Government; not 
just promises but real help. If it had not been for Senators Cochran 
and Byrd and the appropriators who helped to stand this bill up, we 
would be leaving here tonight in a much less hopeful situation.
  We passed that bill out of here a little while ago. It is headed to 
the House of Representatives. That part is not controversial, but the 
process is controversial. I hope the House Members will pass that 
tomorrow so the people of the gulf coast, who have been waiting not for 
a week, not for 2 weeks, but for 4 months for this Congress to send 
some package of hope, other than money to FEMA, but a package of hope 
to our elected officials so they can get their parishes stood up, 
people back home, the lights turned on, the hospitals working again, 
the universities

[[Page 30782]]

functioning again, and stop firing and start hiring people so we can 
stand up this economy.
  I am hoping that tomorrow the House will act, and we will at least 
send this $29 billion home. Just today the President signed an $8 
billion tax relief package that is full of targeted and specific tax 
credits and tax relief for businesses and individuals that will help as 
well. I thank the administration for their support of that bill.
  Particularly I thank Senators Baucus and Grassley. Senator Blanche 
Lincoln worked very hard on many portions of this bill as a member of 
the Finance Committee. I could not leave tonight to go home for the 
holidays without thanking Senators Grassley and Baucus. Without them, 
that bill never would have made it through the process. On the House 
side, Congressman Jim McCrery and my own Congressman from New Orleans, 
Bill Jefferson, had a great deal to do with the success of that bill.
  As we get ready to celebrate Christmas and we remember members of our 
own family, my parents, my siblings, cousins, very good friends who 
have lost their homes and their businesses, as we remember the 250,000 
homes that have been destroyed and the millions of people impacted 
negatively, at least this Congress can say we passed an $8 billion tax 
bill that will help many directly and give them immediate relief as it 
was signed today, and this $29 billion direct package reallocating FEMA 
money that is sitting in a bank account and give it to people for this 
Christmas holiday, and then to resolve when we get back to take up and 
design some new tools for reconstruction that can help in the area 
particularly of housing, which is such a desperate need, and 
reorganization of our neighborhoods and communities.
  I can rest assured that the leadership in Louisiana, with the 
Louisiana Recovery District, led by the Governor, who appointed Norman 
Francis and Walter Isaacson, the two leaders of the LRA, is prepared, 
with our local officials, to come up with new and innovative strategies 
to build a great city of New Orleans again, the great parishes of 
Jefferson, St. Bernard, and Plaquemine, then to move over to the 
southwest and give the small parishes, such as Cameron, which was 
totally destroyed, the help they need to stand back up, so we can stand 
up our farms, hospitals, petrochemical industry, keep our ports open, 
start hiring teachers and doctors back, and start building up the 
18,000 businesses that were lost. Forty-one percent of the businesses 
in Louisiana were destroyed by this hurricane. Our income fell 25 
percent, our personal income, in a report released today.
  I know everybody is tired. It has been a long day. I am ready to go 
home myself and have a few Christmas gifts wrapped before the weekend. 
But I can say that last night in New Orleans, there was the first party 
thrown in a long time at Gallier Hall, the old city hall. Although 
Senator Vitter and I couldn't be there, 500 people showed up. While 
there were a lot of stories about the heartache that had occurred, 
there was a lot of hope in the hearts of the people who came. There 
were former mayors and former council members and leaders of the 
community, Black and White, Hispanic and Asian. And despite the fact 
that still this Congress doesn't understand in every way why New 
Orleans matters, I can promise you that the spirit of the people who 
live in this city will not let it die, will not let south Louisiana 
die.
  We are going to come back and work even harder to add to the package 
we passed tonight to get the job done and to be a model for the 
country, should this catastrophe ever strike another area again.
  I thank my colleagues for getting through at least tonight the $29 
billion of direct relief and the $8 billion tax package. When we come 
back, we have work to do on coastal, work to do on housing. I look 
forward to working with Members on both sides of the aisle to get the 
job done for the people of Louisiana and the gulf coast.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. FRIST. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                            MAGEN DAVID ADOM

  Mr. FRIST. For 75 years, the Magen David Adom has served as Israel's 
emergency relief service..
  Founded in 1930 by seven Israeli doctors and a one-room emergency 
medical service, the MDA has grown to play a major role working 
alongside the Israeli Army Medical Corps in times of war and peace.
  Twelve hundred employees and more than 10,000 volunteers have helped 
countless disaster, accident, and terrorism victims within Israel's 
borders.
  And on battlefields and disaster areas around the world, the relief 
service has distinguished itself with consummate caring, 
professionalism and bravery.
  Even the United States has been a beneficiary of the MDA's 
humanitarian efforts.
  Most recently, in the aftermath of Hurricane Katrina MDA Israel 
launched an emergency mission named ``United Brotherhood'' to collect 
donations, funds, clothing and other equipment for the New Orleans 
survivors who were left homeless.
  Despite their indisputably noble work, for nearly 60 years the 
organization has been excluded from the International Red Cross and Red 
Crescent Movement.
  The reason? The Israeli agency has been excluded for 60 years because 
of its decision to retain its own protective symbol rather than adopt 
the Red Cross or the Red Crescent.
  Finally, this month, the impasse was broken.
  An overwhelming majority of the state-parties to the Geneva 
Conventions approved a new protective symbol--a ``Red Crystal''--to 
allow the relief agency to operate as a member of the global 
humanitarian movement.
  Within Israel's territory, the agency will still use the Red Star of 
David.
  Around the world, it will use the Red Crystal Protective Symbol, with 
the option of also displaying its traditional logo if the host country 
permits.
  Aside from a few remaining formalities, the Israeli emergency service 
will, finally, at long last, take its place as a full member of the 
International Red Cross and Red Crescent Movement.
  I would have liked to have seen straightforward international 
recognition of the traditional symbol. But the new Red Crystal is a 
worthy and fair compromise.
  I commend the International Committee of the Red Cross and the 
American Red Cross for their efforts to bring this vital and life 
saving organization into the fold.
  And I applaud the Magen David Adom for their compassionate and 
honorable work inspired by faith and carried out everyday with 
extraordinary courage.

                          ____________________




                               AVIAN FLU

  Mr. FRIST. In the 20th century, three influenza pandemics. The worst 
of the three, the 1918 Spanish flu, killed over half-a-million 
Americans and more than 40 million worldwide.
  Secretary Leavitt warns that if past is prologue, the world is 
overdue for another flu pandemic.
  The avian flu spreading from East Asia to Romania and Turkey looks 
and acts more like the virus of 1918 than of any of its more moderate 
cousins.
  If it achieves the final step of human-to-human transmission, the 
consequences could be catastrophic both in loss of human life and 
economic meltdown.
  Recently, the Congressional Budget Office released a study which I 
had specifically requested on the economic impact of a flu pandemic. 
The CBO predicts that the American economy could suffer a $675 billion 
setback, a 5-percent loss in GDP, in the year a pandemic might hit.
  The clock is ticking, and we need to act now.
  We need to put the wheels in motion so that when and if the avian flu 
hits, America is prepared.

[[Page 30783]]

  If we don't, and an avian flu epidemic comes to our shores, we will 
rightly be blamed for failing to do our best to protect the American 
people. The finger will be pointing straight at the Congress.
  What we need in order to be prepared is a six-pronged approach.
  We need communication, surveillance, antivirals, vaccines, research, 
and stockpiling and surge capacity.
  This may sound like a lot of moving parts, but between our 
researchers, entrepreneurs, and public health experts, we have the 
intellect, the ingenuity, and the knowledge to get the job done.
  My duty as an elected official and as a doctor is to see this through 
to make sure that we are adequately prepared and we can look our 
constituents in the eye and tell them we have done everything we can to 
be prepared.
  Our economy, our country, and our lives are depending on it.
  The President has laid out a comprehensive plan. It is our job, now, 
to set aside sufficient resources to tackle this looming threat.
  I urge my colleagues to set aside their partisan differences and pull 
together to protect the American people.
  The flu virus won't know who is Republican and who is Democrat, but 
the people who suffer will know who didn't get the job done.
  We don't need to panic, but we do need to be prepared.
  We need to act, and that is what we intend to do.

                          ____________________




                              AFGHANISTAN

  Mr. FRIST. On Monday, Afghanistan's first democratically elected 
Parliament in more than 30 years convened before the eyes of the world. 
It was an emotional moment and one of great pride for the Afghan 
people.
  As President Karzai told his audience of 351 new parliament members, 
with Vice President Dick Cheney and his wife Lynne listening in the 
front row, ``This dear Afghanistan has risen again from the ashes.''
  Here in the United States, we are full of hope for the Afghan people 
and we share in their joy.
  They have suffered a long and difficult journey.
  Twenty years of civil war. Nearly another decade of total repression.
  But they have finally reached the shores of freedom, and the future 
spread out before them is one of hope, progress, and limitless 
possibility.
  We are proud to count Afghanistan as a free country, a fellow 
democracy, and a friend of the United States of America.
  This past year has been one of extraordinary events in the Middle 
East.
  We have seen amazing images of people celebrating their newfound 
liberty--cheering, dancing and singing in the streets that they, too, 
are now free.
  From the cedar revolution in Lebanon to the historic elections in 
Iraq, the winds of democratic change are blowing across Arab lands.
  A new report by the highly respected human rights group Freedom House 
finds genuine stirrings of democratic progress: local elections in 
Saudi Arabia; women's new voting rights in Kuwait; improved elections 
in Egypt and the Palestinian territories.
  The organization's director of research notes that, ``Many people 
predicted that American policy in Iraq and elsewhere would set back the 
cause of freedom. This year's results suggest that hasn't been the 
case.''
  Indeed, I would go further to say that President Bush, our brave men 
and women in uniform, our coalition partners, and courageous citizens 
across the Middle East deserve tremendous credit for advancing the 
cause of freedom.
  That freedom is bringing hope and optimism to millions of people long 
oppressed.
  Last week's ABC News poll found that Iraqis believe their lives are 
going well, and nearly two-thirds expect things to improve in the year 
ahead.
  Average Iraqi household incomes have skyrocketed by 60 percent in the 
last 20 months. Iraqis are quickly joining the swift current of modern 
life with cell phones and the Internet, cars, washing machines, and 
satellite dishes.
  Another new poll in Pakistan found that in that Muslim country, 
public opinion toward the United States has dramatically improved.
  Favorable opinion toward the United States has more than doubled 
since May to nearly half of those polled, while support for al-Qaida 
has plunged to its lowest level since 9/11.
  Times are changing, and they are changing for the better.
  It is true, we still face a terrorist enemy who targets innocent 
civilians with bombings and beheadings, who dreams of inflicting 
massive violence on the American people.
  These same enemies sent suicide bombers to murder innocent Jordanians 
only a few weeks ago. They despise freedom, and they are bending every 
effort to derail the democratic process.
  But they will not succeed.
  I am confident that America and her allies will prevail. I am 
confident that we will defeat the terrorist enemy and bury its twisted 
aims.
  And all the while, we will continue to stand behind Iraq, Afghanistan 
and all champions of freedom as they work to secure the blessings of 
liberty.

                          ____________________




                    RETIREMENT OF MR. ROBERT J. SHUE

  Mr. STEVENS. Mr. President, I rise to pay tribute to Robert J. Shue, 
a senior official in the Office of the Under Secretary of Defense, 
Comptroller, who in early January, 2006, will retire from a 
distinguished career spanning 37 years of exemplary service to America.
  Mr. Shue began his career serving over 13 years in the Bureau of 
Economic Analysis in the Department of Commerce. He joined the 
Department of Defense in 1982 and quickly became a highly valuable 
member of the Secretary of Defense's staff.
  During his 23 years in the Comptroller's office, Mr. Shue was a 
highly respected leader and expert on the Defense Department budget and 
a wide range of related matters. He played a critical role in the 
formulation, approval, and execution of defense budgets that produced a 
much-needed strengthening of America's defense posture and enabled our 
military to fulfill its many demanding commitments.
  Mr. Shue developed and led a diverse staff of analysts and liaison 
officers and made his office the Defense Department's primary leader in 
tracking and resolving high-level budget issues. He meticulously 
tracked numerous and complex actions affecting the funding available to 
the Department. He was a pivotal leader in presenting and justifying 
each new budget to the Congress and the American public.
  Mr. Shue was vital to the Department's analysis of congressional 
action on Defense Department funding and to devising strategies to 
influence that action. He skillfully led staff in achieving and 
sustaining a highly productive relationship with congressional 
oversight committees. This resulted in accurate and constructive 
information flow between Congress and the Department, helping each meet 
its responsibilities more successfully.
  Mr. Shue produced substantial top-quality analysis on complex 
economic, fiscal, and budget topics for the Secretary of Defense and 
other senior DoD leaders. He also improved support for these leaders by 
initiating important management reforms that saved staff time and 
improved the quality of decision making data.
  For his extraordinary achievements, Mr. Shue received the 
Presidential Rank Award for Meritorious Service. He earned the deep 
respect of leaders throughout the Department of Defense, in the Office 
of Management and Budget, and with Congress's defense oversight 
committees. These leaders benefited enormously from his exceptional 
knowledge and dedication. Mr. Shue's service has substantially helped 
our Nation's leaders make the wisest possible allocation of its defense 
resources in order to ensure America's future security.
  Throughout his distinguished career, Mr. Shue has had the resolute 
support of his wife, Suzi, and his three children. He has earned the 
deep gratitude of the American people. I wish Mr. Shue and

[[Page 30784]]

his family all the best in the coming years.

                          ____________________




               GIVE OUR VETERANS THE CARE THEY'VE EARNED

  Mr. BYRD. Mr. President, it has been 3 weeks since President Bush 
signed into law the 2006 spending bill providing funding for the 
Department of Veterans Affairs. Unfortunately, his signature was 
accompanied by a glaring asterisk. Instead of approving the full amount 
of funding that Congress provided for veterans health care, the 
President bottled up $1.2 billion in emergency funding that the VA 
urgently needs to make ends meet.
  Congress added the emergency money to the bill after discovering that 
the President's 2006 budget request for the VA was woefully inadequate, 
compounding a series of errors in funding assumptions by the 
administration that led to a massive shortfall in VA funding in fiscal 
year 2005.
  The $1.2 billion in emergency funding was not some kind of optional 
Christmas bonus for America's veterans. It is money that the VA needs 
to cover the baseline cost of veterans health care programs. But that 
money cannot be released to the VA until the President signs on the 
dotted line and designates it as an emergency. Unless and until the 
President acts, the money will simply languish in the Treasury, 
benefitting nobody while jeopardizing the VA's ability to meet the 
needs of veterans. Make no mistake about it: without this money, the VA 
will experience another shortfall in funding in 2006, and veterans will 
suffer the consequences of diminished services and longer waiting times 
for health care.
  So why is the President sitting on this money? When Congress passed 
the VA funding bill, I wrote to the President urging him to release the 
emergency funding at the same time, thus assuring veterans that health 
care services will continue uninterrupted for the next year. But for 
some reason, the President has chosen not to release the emergency 
money. Instead of sending the VA the full amount of funding that 
Congress appropriated for veterans health care in 2006--a total of 
$22.5 billion--the President has chosen to hold $1.2 billion hostage at 
the White House.
  What possible reason could the President have for refusing to 
relinquish this money to the VA? Does he expect America's veterans to 
beg for the money? Could he possibly fail to understand the importance 
of fully funding the VA health care program? Or could he have somehow 
forgotten the chaos last summer when the VA revealed that it had at 
least a $1 billion shortfall in health care funding for 2005, and was 
facing another gaping shortfall in 2006?
  What kind of a signal does this send to our Nation's veterans, and to 
our men and women fighting in Iraq and Afghanistan?
  Congress has worked diligently over the past 6 months to clean up the 
budget mess in the VA. As a result of amendments that I spearheaded in 
the Appropriations Committee and on the floor, the Senate seized the 
initiative to provide emergency funding to cover the shortfall that 
occurred in 2005 and to head off another shortfall in 2006. The 
administration, by contrast, had to be dragged to the table and only 
grudgingly owned up to the catastrophic consequences of its sloppy and 
inept budget estimates.
  Congress has acted. Now the ball is in the President's court, and the 
clock is ticking. Mr. President, I again call on the President to 
immediately release the $1.2 billion in emergency funding for veterans' 
health care that Congress has provided.

                          ____________________




                       MILITARY AID TO INDONESIA

  Mr. DURBIN. Mr. President, just 1 month ago, this Congress approved 
the Department of State, Foreign Operations, and Related Programs 
Appropriations Act, of 2006. President Bush signed the bill into law on 
November 14. The act contains strong language concerning the political 
and military situation in Indonesia.
  Congress requested from the administration evidence of genuine 
progress in military reform, the protection of human rights, and 
accountability for crimes against humanity. It asked for such evidence 
before the administration made available to Indonesia any funds 
appropriated under the Foreign Appropriations Act for the Foreign 
Military Financing Program and before it issued any licenses for the 
export of lethal defense articles for the Indonesian Armed Forces.
  Congress also gave the administration the authority to waive these 
conditions when it is in the interests of national security to do so, 
as it usually does when placing these kinds of conditions on this or 
any administration.
  To measure the desired improvements in military reform, we asked the 
State Department to certify that, No. 1, the Indonesian Government is 
prosecuting and punishing, in a manner proportional to the crime, 
members of the Armed Forces who have been credibly alleged to have 
committed gross violations of human rights; No. 2, at the direction of 
the President of Indonesia, the Armed Forces are cooperating with 
civilian judicial authorities and with international efforts to resolve 
cases of gross violations of human rights in East Timor and elsewhere; 
and No. 3, at the direction of the President of Indonesia, the 
Government of Indonesia is implementing reforms to improve civilian 
control of the military.
  Congress does not make these requests lightly, and we based our 
decision on four decades of Indonesian history and U.S.-Indonesian 
relations. The Indonesian Armed Forces have frequently acted to 
forestall progress and the growth of democracy in Indonesia. Over the 
last decade, taking note of this, Congress has placed certain 
restrictions on military assistance to Indonesia, and--over that same 
span of time--we have seen certain positive changes in TNI behavior.
  This progress is occurring--of course--in a larger context. Indonesia 
is making commendable progress in building one of the world's largest 
democracies, with democratic elections most recently in 2004.
  Congress did not include the conditions on aid for Indonesia's 
military contained in the Foreign Operations Act to hinder the 
development of Indonesian democracy or punish the Indonesian people, 
but to assist them as they build a better future for their country.
  The Indonesian Armed Forces have rightly been criticized in the past, 
but I also want to emphasize the changes we have seen, the positive 
steps Indonesia's military authorities have taken. Those steps are 
important and praiseworthy.
  The Armed Forces have revised their old ``Dual Function'' doctrine, 
an artifact of the Sukarno and Suharto years, under which the Armed 
Forces claimed both a military and a socio-political role in the life 
of the Indonesian state.
  Under Suharto, military officers also served as parliamentarians, 
provincial governors, mayors, civil servants, and teachers. The Armed 
Forces also controlled the police. They effectively controlled giant 
industrial and commercial concerns such as the state oil company.
  That has stopped. The TNI has stepped back from politics, and given 
up its reserved seats in the Indonesian Parliament.
  Indonesia's military officers have shown repeatedly in recent years 
that they accept their place in the new Indonesia, and during their 
country's last two national elections, they have behaved in an 
exemplary fashion.
  When Indonesia suffered the terrible blows inflicted upon it by last 
December's tsunami, the Indonesian military acted with bravery and 
great humanity to bring assistance to the victims of that most terrible 
natural disaster.
  We recognize what they have done and we admire their commitment to 
the new and more democratic system their country is building.
  Sadly, while the Indonesian Armed Forces have done a great deal, they 
have not done enough. Too many reasons for serious concern remain.
  Six years after the TNI's involvement in East Timor's referendum on 
independence left 1,400 people dead, the Indonesian authorities have 
not brought one Indonesian officer to justice for abuses committed in 
the

[[Page 30785]]

Timorese capital of Dili and elsewhere in that island nation. Indeed, 
some officers suspected of serious abuses have received not punishment 
or censure, but promotions to higher grades of their services.
  There are numerous cases of human rights activists being harassed and 
even murdered, and we still have not seen justice for these victims.
  Last year, when Indonesia's Parliament was considering a South 
African-style truth and reconciliation commission to discuss past 
atrocities, military officials objected--strongly and publicly--to the 
inclusion of ``truth'' in the commission's title, warning any ensuing 
investigation into past human rights crimes would not help the aim of 
building national unity.
  During that debate, a retired Indonesian major general serving in 
Parliament, a man named Djasri Marin, said a remarkable thing. 
According to Australia's The Age newspaper, he said, ``If we reveal 
everything, it will be far from the idea of reconciliation, because 
there will be trials.'' He added, ``If we want to disclose everything 
for the sake of mere truth, it will prevent us from real reconciliation 
. . . Let's bury the past and step towards the future.''
  It will be difficult to move into a common future in a unified 
fashion if the Indonesian military cannot own up to its past and take 
responsibility for its actions. That is one reason why we need to 
continue promoting positive change within the Indonesian Army. We need 
to continue pressing for evidence of genuine military reform, human 
rights protections, and accountability for crimes against humanity, 
just as Congress has requested.
  In plain and simple language, Congress made its intent clear, asking 
the administration for evidence of genuine improvement in these three 
areas. It seems unlikely that either the President or the Secretary of 
State could have misunderstood or misconstrued this congressional 
expression of intent. Still, only a week after President Bush signed 
the Foreign Operations bill into law, the State Department hastily 
waived these conditions on military assistance, squandering an 
opportunity to encourage the TNI and Indonesian authorities to engage 
in meaningful reforms.
  The waiver authority, granted to the administration by Congress, 
comes with implicit expectations by Congress that the administration 
will use it wisely and well. During the few days that passed between 
the time the President affixed his signature to the Foreign 
Appropriations Act and the moment Under Secretary of State Nicholas 
Burns affixed his signature to the waiver, the President has little 
time to act on congressional concerns.
  We certainly saw no major advances in the three areas marked out by 
Congress. The TNI took no new steps to assure the appropriate 
prosecution and punishment of TNI members credibly alleged to have 
committed gross violations of human rights. The TNI took no new steps 
to show it is cooperating with civilian judicial authorities and with 
international efforts to resolve cases of gross violations of human 
rights in East Timor and elsewhere. The Indonesian authorities took no 
new steps to improve civilian control of the military. How could they? 
A week is hardly any time.
  The great irony of all this is that the amount of assistance affected 
would have been small; small, but of great symbolic importance. I 
regret to say that the administration's decision to waive these 
conditions on national security grounds is also of great symbolic 
importance. Congress was promoting accountability and the rule of law 
in a democratic system. The Department of State has said the 
administration remains committed to accountability, but its actions 
suggest otherwise.
  To waive these conditions in such a preemptory fashion raises serious 
questions about the relationship this administration has decided to 
have with Congress. In truth, it makes a mockery of the waiver process. 
Can we trust the administration to implement conditions like this in 
good faith? They waived the conditions--on supposed national security 
grounds--a week after the President signed the bill into law. It 
probably takes a week just to move a paper like that through the State 
Department bureaucracy.
  In truth, it demeans the process, making a national security waiver a 
waive-it-when-you-feel-like-it waiver, rather than a last resort when 
other priorities intrude.
  And so, I ask the administration, how shall we do business with one 
another in the future? Does the administration want us to eliminate 
such waiver authorities, so that its officers are required to give our 
concerns a fair hearing?
  The administration needs to do more to make sure that U.S. policy and 
U.S. assistance to Indonesia promote TNI accountability and discourage 
the impunity the TNI still enjoys. I respectfully disagree with MG 
Djasri Marin. Nobody can step towards the future by burying the past.
  We are intensely interested in Indonesia's future and the success of 
its democracy. Indonesia is the world's fourth most populous country, 
with an Islamic population larger than that of any other country on the 
planet. It unwillingly hosts a number of radical terrorist groups that 
have killed hundreds of Indonesian citizens and hundreds of foreign 
visitors to Indonesia's shores. It sits astride vital trade routes 
linking the Middle East to the Pacific.
  We want Indonesia to succeed, and we will continue to support the 
Indonesia Government and the Indonesian people. But uncritical 
assistance to the TNI will only hinder Indonesia's democratic 
transition and undermine our interests in that country.
  We know Indonesia faces a serious terrorist threat and that the 
Indonesian authorities must act to protect their nation's citizens from 
that threat. We have urged closer U.S. cooperation with Indonesian 
police authorities to face down terrorism, and we support efforts to 
fund, train, and equip the Indonesian police's anti-terrorism units. We 
applaud the Indonesian Government's determination to vet all members of 
such units to make sure they have not been involved in human rights 
violations.
  We do not dispute that the TNI could play an important and 
appropriate role in Indonesia's own fight against terrorism, but we 
cannot ignore the institution's history of human rights abuses. We 
should not lend American support to an unreformed TNI, a TNI that no 
Indonesian democratic institution can hold accountable for human rights 
abuses. Congress clearly expressed its intent in this regard.
  We will find ourselves on shaky ground--and place our 
counterterrorism strategy in the region at risk--if we do not press for 
reforms in an Army that considers itself above the law.
  I strongly urge the State Department to reconsider its decision to 
waive in such a preemptory fashion the restrictions placed upon 
military assistance to Indonesia by this Congress. The administration 
needs to provide Congress with a better sense of the benchmarks it is 
using to encourage TNI reform and measure TNI progress. And it needs to 
use its waiver authority more judiciously if it expects Congress to 
continue granting such authority.

                          ____________________




                             DORRANCE SMITH

  Mr. WARNER. Mr. President, earlier this week, the Committee on Armed 
Services favorably reported the nomination of Mr. Dorrance Smith to the 
full Senate. Mr. Smith is an experienced and highly accomplished 
television executive, who has been nominated to be the Assistant 
Secretary of Defense for Public Affairs. I have a copy of Mr. Smith's 
biography, and I would note that he is a four-time Emmy award winning 
television producer who spent 9 months in Iraq from 2003 to 2004 where 
he served as Senior Media Advisor to Ambassador Paul Bremer. I have met 
with Mr. Smith on several occasions. I believe him to be highly 
qualified, and I fully support his nomination.
  At a full Armed Services Committee hearing on October 25, 2005, and 
later, at an executive session of the Armed Services Committee on 
December 13, at which Mr. Smith was present, he fully and respectfully 
answered all questions

[[Page 30786]]

posed to him. Many questions focused on an op ed article he wrote as a 
private citizen that appeared in the Wall Street Journal on April 25, 
2005. In this article, based on his ``in the trenches'' experience as 
Ambassador Bremer's senior media advisor in Baghdad, Mr. Smith 
questioned the practice relied on by major media outlets in the United 
States of airing video of insurgent attacks supplied by the Arab 
satellite news channel Al Jazeera. I am satisfied with Mr. Smith's 
responses. I would note that no major media outlet, except Al Jazeera, 
expressed any concern about Mr. Smith's op ed.
  The post of Assistant Secretary for Public Affairs has been vacant 
since June 2003. Mr. Smith is an outstanding nominee. I urge favorable, 
rapid action by the full Senate on his nomination.
  I ask unanimous consent that the above-referenced biography be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                             Dorrance Smith

       Dorrance Smith is a four-time Emmy award winning television 
     producer, political consultant, and media strategist who has 
     worked over 30 years in television and politics.
       Mr. Smith spent nine months in Iraq in 2003-2004 where he 
     served as Senior Media Adviser to Ambassador Paul Bremer. He 
     was responsible for developing a state of the art 
     communications facility in Baghdad for the Coalition 
     Provisional Authority and a public diplomacy strategy for the 
     United States government. In addition, Mr. Smith was asked to 
     overhaul the fledgling Iraqi Media Network. By April, 2004 
     this effort was deemed so successful that the terrestrial 
     channel--Al Iraqiya--was launched on satellite. For his 
     efforts he was awarded the Secretary of Defense Medal for 
     Exceptional Public Service.
       More recently he has been a consultant to the Joint 
     Congressional Committee on Inaugural Ceremonies and the 2004 
     Republican National Convention.
       A four time Emmy Award winning ABC News and Sports 
     producer, he has held a number of positions at the network, 
     including serving as the first executive producer of ``This 
     Week with David Brinkley.''
       From 1989 until 1991, Smith was the executive producer of 
     ABC News ``Nightline.'' During his tenure he was responsible 
     for the weeklong ``Nightline'' series originating from South 
     Africa, which covered the release of Nelson Mandela. The 
     broadcasts won an Emmy award. In addition he served as 
     executive producer of the prime time special ``Tragedy at 
     Tiananmen--The Untold Story,'' which was honored with the 
     duPont Columbia University Award, the Overseas Press Club 
     Award and an Emmy. ``Nightline'' also won an Emmy in 1991 for 
     outstanding news coverage of the Iraqi invasion of Kuwait.
       Prior to his work on ``Nightline,'' Smith was the executive 
     producer of the number one rated Sunday public affairs 
     program, ``This Week with David Brinkley,'' a post he held 
     from the program's inception in 1981 until 1989. During his 
     tenure the broadcast received the first Joan Barone Award, 
     the George Foster Peabody Award, and was named the Best 
     National TV Interview Discussion Program by the readers of 
     the Washington Journalism Review.
       In 1991 Smith left ABC News to become Assistant to the 
     President for Media Affairs at the White House. In this 
     capacity Smith handled all television and radio events 
     involving President Bush, members of the White House staff 
     and Cabinet. In addition his office handled all regional 
     media; coordinated media strategy for administration 
     officials seeking confirmation; and organized the debate 
     preparation during the 1992 political campaign.
       In 2001, Smith was designated by FEMA Director Joe Allbaugh 
     to handle all media following the events of September 11th. 
     In this capacity Smith was responsible for FEMA's media 
     strategy for print, radio and television. Smith organized and 
     distributed the now famous FEMA video feeds from Ground Zero. 
     He reorganized the Public Affairs Office to meet the post 
     September 11th media demands.
       At ABC News, Smith became executive producer of all weekend 
     news programming in 1980. He was responsible for the 
     production and programming of ``World News Saturday,'' 
     ``World News Sunday,'' ``The Weekend Report,'' and ``The 
     Health Show.''
       Prior to his weekend assignment. Smith was Washington 
     producer of ABC News' ``The Iran Crises: America Held 
     Hostage.'' He also served as ABC News Senior Producer at the 
     1980 Winter Olympics, the 1984 Winter and Summer Games, and 
     the 1988 Winter Olympics in Calgary.
       From 1978-1979, Smith served as ABC News' White House 
     producer. Smith joined ABC News as a Washington producer in 
     1977. Previously he was staff assistant to President Gerald 
     Ford.
       He began his broadcasting career at ABC Sports in 1973 as 
     an assistant to the producer. In 1974 he was made Manager of 
     Program Planning for ABC's Wide World of Sports.
       Smith is a member of the Advisory Council for the George 
     Bush Library in College Station, Texas.
       He graduated from Claremont Men's College in 1973 with a 
     Bachelor of Arts degree. He lives in McLean, Virginia.

                          ____________________




                    FIRST SESSION OF 109TH CONGRESS

  Mr. ALLARD. I rise today to speak in review of the first session of 
this 109th Congress. I have served in the Congress since 1991, and I 
can say without exaggeration that this year has been the single most 
productive year I have participated in. As I will detail, we have 
passed numerous significant legislative items, some of which have 
languished in Congress for many years. We have stayed a determined 
course in the global war on terror, maintaining our commitment to our 
troops and to those eager to adopt a democratic way of life in place of 
tyranny. We have stayed a proven course to reduce the tax burden on 
Americans and on American business. Economic indicators in the markets, 
home ownership data, and employment all illustrate the wisdom of this 
course. This Congress has shown a very real commitment to principle. 
While there are those in this body and in the media who would like to 
deny it, I am confident that this session of Congress will go down in 
history as singularly productive and representative of the will of the 
people.
  The list of significant legislative items passed and signed into law 
this year is extensive. We got off on the right foot by passing a 
budget resolution out of the Senate on March 17, and the Congress 
adopted the budget conference report on April 28. This is amazingly 
early when compared to the struggles we have encountered in recent 
years. The Budget, as I have said many times before, is a vital 
blueprint for our work and a responsibility we must assume to serve the 
taxpayers. I am a member of the Senate Budget Committee and a former 
member of the House Budget Committee, and I am pleased to say that our 
chairman in the Senate has been as efficient and principled an advocate 
for good budgeting policy as I have ever worked with.
  In previous years, we have also struggled to complete our work on 
appropriations legislation. The House, where appropriations measures 
are to originate, reported every single appropriations bill out of 
committee by June 21. The Senate passed every bill before October 27. 
Today, as we wrap up a few remaining issues, all but the Defense and 
Labor-HHS bills have been signed into law, but it is important to note 
that these bills were passed by the Senate in October. The leadership 
on both sides of the Capitol and the members of the various 
appropriations subcommittees certainly deserve accolades for making 
such quick work of these difficult legislative items.
  Congress passed the Safe, Accountable, Flexible and Efficient 
Transportation Equity Act authorizing more than $286 billion of 
investment in our national infrastructure. The Congress also took a 
major step forward this year by passing a comprehensive energy policy. 
A comprehensive energy policy will help America meet long-term demands 
for energy. This policy will encourage greater domestic production, 
fuel diversity, research and development of new energy technologies, 
and an across-the-board improvement of energy infrastructure. One piece 
of this forward-looking policy includes the Oil Shale Development Act, 
which I worked on with my colleagues. This has been a prominent issue 
for years, but we have made the right policy decision, and it is one 
that will benefit millions of Americans in the decades to come. This 
year, Congress also addressed the energy needs of low-income families 
by increasing funds for the Low Income Heating Assistance Program, 
LIHEAP. Increased funding for this program will help those in need as 
winter grows more cold.
  The work we have done on energy and transportation represents 
historic commitments to the public good. Virtually no aspect of our 
economic prosperity is unaffected by our fortunes in

[[Page 30787]]

transportation and energy, and I am pleased to have been a part of 
these policy achievements.
  After years of opposition that cost consumers untold millions, 
Congress finally passed the Bankruptcy Abuse Prevention and Consumer 
Protection Act, the first major revision to the U.S. Bankruptcy Code 
since 1978. This law will save approximately $3 billion a year for 
consumers through lower interest rates and better products and 
services. Consumers will further benefit from The Protection of Lawful 
Commerce in Arms Act and the Class Action Fairness Act. The former puts 
an end to the frivolous lawsuits that sought to financially drain 
lawful firearms manufacturers for the acts of criminals, and the latter 
curbs abuses in our courts that have driven costs for consumers up 
without benefitting the public. Frivolous lawsuits forced the firearms 
industry to spend nearly $200 million a year to defend itself from 
third-party actions and class action lawsuits had grown over 1,000 
percent nationwide. Lawyers were getting rich while consumers suffered. 
These two bills represent a major accomplishment for both consumers and 
American business. We also passed the Dominican Republic-Central 
America-United States Free Trade Implementation Act which will benefit 
American business, consumers, and our neighbors in this hemisphere.
  I would like to highlight another recent achievement of this 
administration and of this Congress that we celebrated this week when 
the first shipment of U.S. beef since December 2003 arrived in Japan. 
As my colleagues know the Japan Government recently declared that U.S. 
beef is every bit as safe as Japanese beef and that the beef trade may 
resume. This is a tribute to sound science, the hard work of our beef 
producers, and the diligent work of policymakers. It is with some pride 
that I note the first shipment of beef to be shipped to Japan was sent 
from Denver, CO.
  In addition to these notable and historically significant 
accomplishments, the Congress has also passed a more humble pair of 
consumer-friendly items in the Junk Fax Prevention Act and The Family 
Entertainment and Copyright Act. These aren't the kinds of bills that 
the Washington, DC, crowd may see as being vital national issues, but 
these are issues felt deeply by our constituents and the small business 
community.
  It cannot be overstated that these policies have fostered continued 
economic growth and prosperity. More than 56,000 jobs were created in 
our economy in October this year, and more than 4.2 million jobs have 
been created sine May 2003. Unemployment continues to steadily decline 
as more Americans than ever are working. This is a remarkable feat by 
policymakers, investors, small businesspeople, and families across the 
country. Our economy is strong.
  Congress continued the national commitment to our men and women in 
uniform in a variety of ways this year. Though we await completion on 
the Department of Defense appropriations bill, we have already passed 
into law more than $80 billion for the further prosecution of the war 
in Iraq, the reconstruction of Afghanistan, and aid for our 
international partners. We have increased the pay of our service men 
and women with an across-the-board 3.1 percent raise, increased housing 
allowances, increased bonuses for additional retention and recruiting, 
and increased specific bonuses for those deployed overseas. We have 
also increased the maximum life insurance allowed for an insured 
veteran or service member and secured more than $140 million for body 
armor and personal protection.
  I am particularly pleased with the steps we have taken to support our 
troops. Too often policymakers talk the talk without regard to action. 
It is my hope that we will continue to be responsive and supportive of 
our troops. The people of the United States are grateful for their 
dedication and courage. We tackled important veterans health issues 
this year, as well, by passing the Veterans Medical Services 
Supplemental. This legislation provided $1.5 billion to meet our 
commitment to those who have served our Nation.
  The same Defense supplemental appropriations bill included almost a 
billion dollars in aid for those impacted by the tsunami in the Indian 
Ocean almost a year ago, including more than $650 million for the 
Recovery and Reconstruction Fund.
  Though not a legislative accomplishment, this would be a good time to 
mention the tremendous yield we have seen from the years of work by 
this administration, the military, and Congress. This year started with 
Parliamentary elections in Iraq to democratically select those 
responsible for drafting the framework of a free Iraq. In October, the 
Iraqi people approved their new constitution, and the mechanisms of 
democracy are still working. In Afghanistan, after many years of 
turmoil, we also witnessed the free election of a Prime Minister and of 
the new Parliament. We must stay this course.
  In the past year, we have also enacted a series of legislative 
proposals to provide relief to families in the gulf region. The 
unprecedented impact of Hurricane Katrina demanded an immediate 
response. The Gulf Coast Emergency Water Infrastructure Assistance Act, 
The Community Disaster Loan Act, The Natural Disaster Student Aid 
Fairness Act, Pell Grant Hurricane and Disaster Relief Act, Temporary 
Assistance for Needy Families Emergency Response and Recovery Act, and 
Katrina Tax Relief Act, among others, put us on the road to recovery. 
The pair of emergency supplemental appropriations bills that Congress 
passed total well over $65 billion and have provided needed 
infrastructure, security, and humanitarian relief. While there is a 
great deal of work to be done in the Gulf States, Congress has and will 
continue to demonstrate an ongoing commitment to this region.
  Congress also engaged in one of the most important debates we could 
hope to have as far as our national security is concerned, that of 
enhancing the security of our borders. This year's Homeland Security 
Appropriations Act provides unprecedented funding to protect our 
borders from those who wish to enter illegally. This year we passed 
more than $31 billion in new budget authority for the Department of 
Homeland Security, increasing border security accounts, providing an 
additional 1,000 border patrol agents, and providing more 220 detention 
beds.
  Among the most high-profile issues of the year were the nominations, 
hearings, and thus far one confirmation for the U.S. Supreme Court. Not 
only did the Senate confirm John Roberts to the Court, but Justice 
Roberts was also named to be the new Chief Justice of the Supreme 
Court. In the time since Chief Justice Roberts came before the Senate, 
we have also worked through a pair of nominations, one of which we will 
take up as our first order of business in the new year. The Roberts 
nomination demonstrated the value of our system and all of its various 
parts, working together for a greater good. I look forward to the 
timely hearings on Judge Alito's nomination and an up-or-down vote on 
his nomination.
  This has been an amazing year of accomplishment for the Congress. As 
I said earlier, there has not been a more productive year in my time 
here. As proud as I am of these many accomplishments I would also like 
to discuss a few accomplishments a little closer to my home, the State 
of Colorado, where we have had a pretty big year, as well.
  One of the ongoing projects I have worked on for many years now is 
the cleanup of Rocky Flats. This year, we secured more than $560 
million for the final stages of the cleanup. Contrary to what many may 
expect, this cleanup was completed ahead of time and below projected 
costs, serving both the region and the taxpayer by cleaning up this 
facility.
  Another long-term project that I have worked on is the destruction of 
chemical weapons at the Pueblo Depot. By working with the Department of 
Defense, we have increased funding and maintained good management 
principles to meet our treaty obligations in the destruction of more 
than three-

[[Page 30788]]

quarters of a million chemical weapons on site.
  Just down the road from Pueblo is Fort Carson. I recently held a town 
meeting at Fort Carson to discuss a variety of issues important to that 
base and to that community, including the political process that 
accompanies BRAC. We secured more than $120 million in military 
construction funds for new barracks and training at the facility as 
well as securing funds to prevent encroachment at the base. Even 
further on up the road is another jewel in America's military 
infrastructure, the U.S. Air Force Academy. Our ongoing efforts to 
assess progress and address problems at the Academy have been very 
productive thus far, and we secured $18 million to upgrade academic 
facilities and family housing this year. It is with some pleasure that 
I can also say I attended all four board of visitor meetings at the 
academy this year.
  This has also been a year of accomplishment for Colorado's space 
industry. This year we added $60 million for military satellite 
projects in Colorado, secured $12 million for the space control 
facility at Peterson Air Force Base, and $6 million for the space 
warning facility in Greeley. In keeping with these efforts to modernize 
and expand our posture in space I held four Space Power Caucus events. 
Space is indeed a great frontier, and it is one where we must maintain 
an aggressive stance. Just as it is important that the military sector 
be moving forward in space, it is equally vital that our workforce and 
our students learn about space science and perform cutting-edge 
research. This year we secured more than $10,000,000 for student space 
programs at the University of Colorado, Colorado State University, the 
Challenger Learning Center, and the Space Foundation. The students who 
will benefit from these programs are our future.
  Students in my home State will likewise benefit from our continued 
support of the University of Colorado's Center for Micro and Nano-
technology, which will receive three-quarters of a million dollars for 
cutting edge scientific research that dwells on the cutting edge. 
Congress has seen fit to support Colorado State University's Pueblo 
campus, as well, providing $250,000 for the Western Forensic Law 
Enforcement Training Center.
  I spoke earlier of the importance of the highway bill and its impact 
on our Nation's infrastructure. In Colorado, this will translate in to 
a variety of projects. We secured $80,000,000 for the T-Rex highway 
improvement program, $5 million for the west corridor, and $9 million 
for the Colorado Association of Transit Agencies, a statewide coalition 
of agencies focused on the future of mass transit in my home State. Our 
successful year of investment in infrastructure includes a variety of 
projects around the State, including projects such as the Rio Grande 
bike trail in Garfield County, funding for the Pikes Peak Highway, 
State Highway 145 from Dolores to Stoner, the Ports-to-Plains Corridor, 
and Frisco's West Main Street.
  In the Agriculture Appropriations Act we secured more than $300,000 
for the Cooperative State Research, Education and Extension Services 
for the Russian Wheat Aphid Resistance, Stress Tolerance and Quality 
Enhancement Project, more than 800,000 for infectious disease research 
to the Center for Economically Important Infectious Animal Diseases at 
Colorado State University, and almost $900,000 for the National Beef 
Cattle Evaluation Consortium, comprised of Colorado State University in 
Fort Collins, Cornell University, and the University of Georgia.
  Our efforts this year also yielded $400,000 for tamarisk eradication 
efforts, more than $10,000,000 for new science and technology facility 
at the National Renewable Energy Laboratory, and $10,000,000 for design 
and construction of a new NREL Administrative Facility, and more than 
$55,000,000 for the Animas-La Plata project. In addition to securing 
funding to help my home State combat chronic wasting disease, we worked 
this year to direct the Animal Plant Health Inspection Service at USDA 
to begin to promulgate rules for dealing with this disease.
  Another ongoing project that I have been pleased to work on with my 
colleagues is the modernization and expansion of the Centers for 
Disease Control lab in Ft. Collins. This facility, which provides vital 
research on vector-borne disease, will receive $24,000,000 this year.
  We have been very fortunate in the State of Colorado. I appreciate 
the efforts of my colleagues in recognizing the vital research, 
military, and educational facilities housed in Colorado.
  On a more personal note, this year I opened a new State office in 
Durango, CO. I would like to urge colleagues, if they have not been, to 
pay a visit to this charming mountain community in southwestern 
Colorado. Durango offers terrific recreation in summer and winter, and 
I look forward to being able to enhance my constituent service with 
this new office.
  Each of my State offices and my office here in Washington joined with 
the University of Denver and the University of Northern Colorado this 
year to host the sixth annual Allard Capitol Conference. This year, we 
hosted more than 100 Colorado citizens for 3 days of civic learning and 
participation. This annual conference is one of the most enjoyable 
things I am able to do with constituents each year.
  It has been an extraordinary year of accomplishment for the Congress 
and for Colorado. We have a tremendous amount of inertia going in to 
the second half of the 109th Congress, and I look forward to the new 
year and all of its challenges.

                          ____________________




                      CLERICAL ERROR CLARIFICATION

  Mr. GREGG. Mr. President, I submit for the Record a clarification to 
the conference report to accompany S. 1932, the Deficit Reduction 
Omnibus Reconciliation Act, to correct a clerical error in drafting in 
Section 11101(a)(2) regarding bankruptcy fees. The language, ``in 
paragraph (2) by striking `$1,000' and inserting `$2,750''', refers to 
the wrong subsection of the bankruptcy code. The language should read, 
``in paragraph (3) by striking `$1,000' and inserting `$2,750'''. Any 
reading of the language in context would indicate this clerical error, 
as the numerical references in the language are illogical otherwise. We 
will make the technical correction at the appropriate time.

                          ____________________




         REAUTHORIZATION OF THE TRAFFICKING VICTIMS PROTECTION

  Mrs. CLINTON. Mr. President, I rise today to speak in support of the 
reauthorization of the Trafficking Victims Protection Act.
  The scourge of trafficking in women and children was a priority for 
me as First Lady and continues to be a priority for me as a Senator. 
Since the United Nations Fourth World Conference on Women in 1995, I 
have been working to raise awareness of the heinous practice of buying 
and selling women and children like commodities. I have seen the 
devastation that it causes, and the lives it ruins. I have met with the 
families from Eastern and Central Europe, who, with tears in their 
eyes, pleaded with me to help them find lost ones who had been stolen 
from them, and I have met with the victims, including a 12-year-old 
girl in Thailand who was dying of AIDS after being sold twice by her 
family. This barbaric practice has caused far too many to exist in a 
perpetual state of fear and vulnerability, and we must do everything in 
our power to bring the scourge of trafficking out of the shadows and to 
the attention of the world.
  I am proud to say that the United States has, for the past decade, 
been the leader in trying to persuade the rest of the world to 
eradicate this abhorrent practice. As the Clinton administration 
increased the antitrafficking activities of our Government through 
programs at the State Department and the Department of Justice, 
Congress was developing legislation to eradicate trafficking. We worked 
with the late Senator Wellstone, his Republican cosponsor, Senator 
Brownback, and Congressman Chris Smith and former Congressman Sam 
Gejdenson in the House, to introduce the first comprehensive 
antitrafficking bill in Congress. This culminated in the passage

[[Page 30789]]

of the Victims of Trafficking and Violence Protection Act of 2000. I 
believed then, and I believe now, that this is one of the Clinton 
administration's greatest achievements and one of the most important 
parts of Senator Wellstone's legacy. That law has meant the difference 
between freedom and enslavement for unknown numbers of potential 
trafficking victims, and this reauthorization provides us with the 
opportunity to strengthen its ability to help those who have been 
trafficked, and I would like to thank Senator Brown-
back and Representative Smith, my colleagues on the Helsinki 
Commission, for their continued commitment to this act since its 
initial passage.
  I am proud to see that this reauthorization enhances the 3 P's 
strategy--prevention of trafficking, prosecution of those that engage 
in these acts, and protection of the vulnerable individuals who have 
been trafficked--that we developed in the Clinton administration. It 
gives the Justice Department the authority to pursue extraterritorial 
prosecutions of Federal employees or those accompanying them if they 
engage in trafficking activities. It encourages the prevention of 
trafficking by requiring organizations or contractors engaged in U.S.-
supported peacekeeping efforts to have antitraf-
ficking policies in place. And it will protect those who have been 
trafficked overseas by increasing funding for programs like residential 
treatment facilities.
  But there is still so much work to be done. Although reliable 
statistics are difficult to find, we know that 800,000 individuals--the 
vast majority of whom are women and children--are trafficked from one 
country to another every year, with 15,000 being trafficked to the 
United States. The FBI estimates that trafficking generates $9.5 
billion annually for organized crime syndicates around the world.
  I am deeply concerned about the growing domestic commercial sex 
trade, and I believe that we need to increase funding and target 
efforts to end all forms of exploitation. Any expansion of our focus 
must not dilute our commitment to eradicating human trafficking in all 
its forms in the United States, nor detract from the progress we have 
made in increasing prosecutions and working with law enforcement 
agencies. We must ensure that our government has all the resources it 
needs to make inroads against these awful acts on our own soil.
  In the fight against trafficking in persons, patience simply is not 
an option. I look forward to continuing to work with my colleagues to 
end this barbaric practice in both the United States and around the 
world, because this is not about politics, but about what we all share: 
universal freedom and universal human rights.

                          ____________________




                        KATRINA RECOVERY EFFORTS

  Mr. KENNEDY. Mr. President, this holiday season is a time for 
families to come together, reflect on the year's challenges and 
opportunities, and give thanks for all that has been accomplished. It 
is also a time to take action to help those less fortunate.
  The year 2005 was a year of great challenges, and among the greatest 
were the hurricanes that ripped through the gulf coast.
  The magnitude of Hurricane Katrina was unprecedented. Its aftermath 
brought us images that we thought we would never see in America--lives 
lost, communities destroyed, families uprooted.
  The toll was particularly devastating for hundreds of thousands of 
young children and students torn from the surroundings and institutions 
they depend on, and I'd like to spend a few moments discussing this 
aspect of the recovery effort.
  We are all familiar with the devastation that past hurricanes have 
caused. Some have temporarily closed schools and colleges. In the 
aftermath of Hurricane Andrew in 1992, the Army, Navy, and National 
Guard joined in helping to repair classrooms and reopen school doors in 
about 3 weeks. Last year, Florida schools damaged by Hurricane Charley 
reopened within a month, and students were quickly back on track in 
their classrooms.
  But Hurricane Katrina caused vastly greater devastation, especially 
in Louisiana, Mississippi, and Alabama. More than 700 schools and 30 
colleges and universities were damaged or destroyed. Almost all have 
been closed, at least temporarily, and many will not open until January 
at the earliest. Some are in danger of never reopening.
  The number of students affected is staggering. More than 370,000 
elementary, middle, and high school students were displaced. Over 
100,000 college students were affected by the disaster. And 18,500 Head 
Start or Early Head Start children were uprooted from programs.
  These are not just statistics. These are real people whose lives have 
been changed forever.
  Hurricane Katrina reminded us that we are all part of a single 
American family. And we have a responsibility to help members of that 
family when they are in need.
  For too many weeks, our friends in the gulf region have waited for 
Congress to provide help in rebuilding their lives and their 
communities. Today, I am pleased that we will take an important step in 
actually providing the assistance so obviously needed.
  The Katrina and Rita relief provisions in the conference report 
passed by the Senate today include several proposals developed by 
Senator Enzi and myself to help the children and students affected by 
these hurricanes.
  It includes assistance to ensure that the youngest children uprooted 
by these tragic storms receive the services, help, and support they 
need. The bill dedicates funding to provide access to Head Start 
preschool programs and child care.
  It provides much-needed relief for the public and private schools 
across the country that generously opened their doors to schoolchildren 
whose lives were turned upside-down by these disasters. These schools 
provided classrooms, teachers, and services for all of these students, 
and did so without a penny from the Federal Government.
  It also includes relief for colleges in the affected areas, and 
ensures that college students displaced by the hurricane will receive 
the financial aid they need to stay in school and continue working 
toward their degree. Several colleges in Louisiana are in danger of 
closing their doors for good, unless they receive this critical 
assistance soon. The funding approved by the Senate today may not be 
enough to guarantee their future, but at least it offers much needed 
support.
  This relief is long overdue, and I commend the Senate for taking 
action.
  When these devastating storms struck, the entire nation responded in 
a way that is as caring and as generous as the American spirit.
  Thousands volunteered to help. Families opened their homes. School 
districts across the country accommodated displaced students in their 
schools. Colleges and universities graciously opened their doors.
  The Nation is grateful to all who did so much to help respond in the 
tragic aftermath of the hurricanes. We are grateful to the school 
principals and superintendents and the college presidents and deans who 
served as first-Responders and helped so many students continue their 
education.
  But these educators need help as they struggle to accommodate the 
students. Congress must do its part to help these devastated 
communities get back on their feet and enable students to return to 
their schools. We also need to help the institutions that are laboring 
so hard to provide a safety net for these children and their families.
  That is why the proposals in this conference report are so important. 
This funding will rehabilitate and strengthen the educational 
institutions that serve and assist children and students affected by 
Hurricanes Katrina and Rita, and help meet the needs of early 
education, elementary and secondary education, and higher education.
  Thousands of young children affected by the storms need to return 
home to safe and healthy settings. They need good early childhood 
programs in adequate facilities. Their families need health and 
counseling services to cope with the trauma brought on by the storms.

[[Page 30790]]

  The bill facilitates enrollment in Head Start and Early Head Start by 
waiving income eligibility and other requirements, so that families 
affected by Katrina will be able to enroll their children more easily. 
It provides $90 million for affected Head Start centers to provide 
preschool opportunities to displaced students. It also provides 
additional support and guidance to meet the emotional needs of children 
and their families.
  We are reminded by this disaster that schools are the heart of local 
communities across America. When schools open, families return, 
businesses return, and lives begin to return to normal. So I am pleased 
that the report provides $750 million for special school reopening 
grants to districts and communities significantly affected by Hurricane 
Katrina.
  These grants will aid in the effort to retain highly qualified 
teachers, recover lost data, establish temporary facilities, and take 
other steps necessary to reopen the schools.
  The bill also responds to the efforts of schools in Texas, Georgia, 
Florida, and other States that opened their doors to displaced 
students. It provides $645 million for public and private schools that 
have enrolled displaced students, in order to ease the transition of 
students into new schools, support basic instruction, purchase 
textbooks and materials, and temporarily expand facilities to avoid 
overcrowding.
  Both public and private schools can benefit from this aid, but the 
proposal sets ideology aside and rejects the attempts by the House and 
the administration to provide this aid in the form of vouchers to 
parents through a 1-800 number. Instead, the bill uses the mechanisms 
of current law to provide aid for students in private schools through 
the public school system.
  The funds can only be used for the same list of allowable educational 
services as for public schools and so cannot and should not be used for 
religious activities. It makes clear that all of the aid is temporary, 
and is being provided in response to the extraordinary circumstances 
resulting from these disasters. It is not a precedent for future 
policymaking.
  In addition, to help meet the demand for qualified teachers, the bill 
authorizes the Secretary of Education to encourage states to extend 
temporary reciprocity for the certification of teachers and para-
professionals across state lines. Teachers certified as highly 
qualified in one state should be recognized as meeting this standard in 
other States as well.
  To ease the burden faced by colleges and universities in the declared 
disaster area, the bill also authorizes the Secretary of Education to 
waive various Federal reporting requirements. It includes $200 million 
for student aid and waives the institutional matching requirement for 
students affected by the hurricane. These funds can also be used to 
help institutions in Louisiana rebuild their facilities and welcome 
their students home. Our priority should be to help these colleges and 
universities move into the future.
  This relief package is a welcome step to help life return to normal 
for the hundreds of thousands of children and students uprooted by 
these deadly storms. We begin today to help the gulf coast communities 
rebuild and re-open their schools and colleges.
  We need to continue this important work in the coming weeks, by 
assessing the ongoing needs of those affected by the hurricanes, and 
doing all that is necessary to help them rebuild their lives.

                          ____________________




          FAILURE OF HOUSE OF REPRESENTATIVES TO PASS S. 1558

  Mr. LEAHY. I am disappointed that the House of Representatives has 
failed to act on S. 1558, which passed the Senate on November 10. This 
bill was introduced by Senators Collins and Lieberman. I worked with 
them to amend it to extend for 4 years the ``sunset'' of a provision 
first enacted in the Identity Theft and Assumption Deterrence Act of 
1998 that grants the Judicial Conference of the United States the 
authority to redact information from a judge's mandatory financial 
disclosure in circumstances in which it is determined that the release 
of the information could endanger the filer or the filer's family. The 
bill, as amended, also extends the protections of this provision to the 
family members of filers.
  Like the more comprehensive court security measure Senator Specter 
and I have introduced, S, 1968, the Court Security Improvement Act of 
2005, CSIA, from which it is drawn, S. 1558 provides judges and their 
families with needed security by extending the judges' redaction 
authority without interruption and expanding it to their families. It 
also strikes the right balance with the need for continuing 
congressional oversight to prevent the misuse of this redaction 
authority, which has been a matter of some concern to me. I appreciate 
that the Judicial Conference is seeking to improve its practices and 
the Senate passed S. 1558 because none of us wants to see judges or 
their families endangered. Now, because of the failure of the House to 
pass S. 1558 and enact the reauthorization of redaction authority for 
another 4-year period, these protections will lapse at the end of the 
year.

                          ____________________




              EPA'S PROPOSED PARTICULATE MATTER STANDARDS

  Mr. JEFFORDS. Mr. President, I rise to speak on behalf of myself and 
Senators Carper, Boxer, Clinton, Lautenberg, Lieberman, and Obama.
  Last night, the U.S. Environmental Protection Agency proposed new 
National Ambient Air Quality Standards for fine particulate matter. The 
National Ambient Air Quality Standards are the cornerstone of the Clean 
Air Act. These standards must be set at a level ``requisite to public 
health'' with ``an adequate margin of safety.'' They are to be based on 
the ``latest scientific knowledge,'' and EPA is prohibited from 
considering costs in setting them. Their fundamental purpose is to 
ensure that our air is safe to breathe.
  We have known for years that fine particle pollution causes premature 
death, increased asthma attacks, and numerous other health effects. In 
1997, EPA revised the particulate matter standard on the basis of that 
evidence. The Clean Air Act directs that EPA, together with an 
independent scientific review panel, examine the available scientific 
evidence and determine whether the existing standard needs to be 
changed. The proposal by EPA last night, coming almost 5 years late, 
represents the end result of that effort. Unfortunately, EPA selected 
the weakest option available to it.
  In determining whether to revise the standard, EPA reviewed the more 
than 2000 scientific studies that have been published since 1996. These 
studies confirm the earlier research results that demonstrate the 
strong relationship between particle pollution and illness, 
hospitalization, and premature death. Some of the more recent studies 
show the strong relationship between particle pollution and 
cardiovascular illnesses that trigger heart attacks and strokes. These 
studies also indicate a stronger relationship between short term PM 
exposure and health effects than was evident in 1997.
  Under the Clean Air Act, EPA is required to consider the advice of an 
independent scientific review panel, the Clean Air Science Advisory 
Committee, CASAC, which must include at least one member of the 
National Academy of Sciences, one physician, and one person 
representing State air pollution control agencies. That body 
exhaustively reviewed the current body of scientific evidence and 
concluded that EPA must revise both its short term--24 hour or daily--
PM standard, and its annual PM standard. Unfortunately, EPA chose to 
disregard that advice and proposed to only revise the daily standard. 
And in making its proposal on the 24-hour standard, it choose the 
highest level recommended by CASAC--35 micrograms per cubic meter.
  It is apparent that the level proposed by EPA was not based entirely 
on the latest scientific knowledge. The level of the standard proposed 
by EPA will leave millions of Americans unprotected. It will also 
require few, if any,

[[Page 30791]]

additional controls to be put in place. EPA chose the least protective 
approach that it could and disregarded the advice of the CASAC by 
failing to revise the annual standard. Had EPA followed the 
recommendations of CASAC, it could have proposed options that would 
have prevented more than twice as many deaths. That is not even 
considering the Clean Air Act requirement for an ``adequate margin of 
safety'' that considers ``sensitive subpopulations.''
  Playing politics with public health is unconscionable. When these 
standards were last revised in 1997, they were subject to multiyear 
litigation battle. Ultimately the Supreme Court unanimously upheld the 
1997 standards and the scientific process that was used to develop 
them. The science we have available to us today is even clearer than it 
was then. Fine particle pollution kills people at levels below the 
existing standards. We need to change these standards and heed the 
advice of our best and brightest scientific minds. We need to let them 
tell us when the air is safe to breathe. When EPA makes its final 
decision in September regarding a new national ambient air quality 
standard, it must do so based on scientific, rather than political 
considerations. The very lives of our citizens depend on it.

                          ____________________




                           CAPITAL PUNISHMENT

  Mr. FEINGOLD. Mr. President, we recently passed a disturbing 
milestone in this country. One morning just a few weeks ago in North 
Carolina, Kenneth Lee Boyd was put to death by lethal injection. Mr. 
Boyd's was the one thousandth execution since the death penalty was 
reinstated in 1976. While a jury decided that his guilt was not in 
doubt, confidence in the extraordinary punishment he received 
increasingly is.
  Across the Nation, people are reconsidering capital punishment. 
Recent polls, jury verdicts, and actions taken by all three branches of 
government in States across the country reflect the changing attitudes 
about the death penalty in this country. Americans are increasingly 
concerned about the use of this very final punishment.
  With advances in DNA technology, numerous exonerations of people on 
death row, and new revelations that innocent people have actually been 
put to death, more and more people are questioning the accuracy and 
fairness of the administration of the death penalty. In addition, more 
and more people have qualms about the very concept of state-sponsored 
executions. This trend is a hopeful sign, as I believe there continue 
to be numerous moral, ethical and legal problems with the death 
penalty.
  According to a series of Gallup polls, opposition to the death 
penalty has grown from 13 percent of Americans in 1995 to 30 percent in 
October of this year. Think about that. In just 10 years, we went from 
a vast majority of Americans supporting the death penalty, to nearly 
one-third now opposing it. That is the highest level of opposition 
since its reinstatement almost 30 years ago. And a CBS News poll from 
April indicates that when people were asked whether they prefer the 
death penalty or life without parole for individuals convicted of 
murder, only 39 percent supported the death penalty.
  Evidence of the changing attitudes about the death penalty can be 
seen across America. The U.S. Conference of Catholic Bishops recently 
launched a campaign to end the use of the death penalty. In New York 
earlier this year, the State's highest court struck down the State's 
capital punishment statute, which had passed only 10 years earlier in 
1995. The legislature then declined to reinstate the law, making New 
York the first state to abandon capital punishment since 1976. That is 
a remarkable sign of progress.
  Meanwhile, just over the river in Virginia, the death penalty was a 
key issue in the last gubernatorial election. Tim Kaine, the current 
Lieutenant Governor, has long been personally opposed to the death 
penalty, although he pledged to enforce the law in Virginia. In the 
final weeks before the election, his opponent Jerry Kilgore began an ad 
campaign that heavily criticized Kaine's opposition to the death 
penalty. Kilgore strongly supports capital punishment and during the 
campaign he said he would push to expand its use in Virginia. But when 
Kilgore went after Kaine on the death penalty, Virginians did not take 
the bait. Despite Kilgore's attack ads, the citizens of Virginia 
elected Kaine Governor, and he will become Virginia's Governor in 
January.
  I think what happened in Virginia strongly demonstrates how far we 
have come. This issue can no longer be used as a political grenade. A 
majority of Americans may not yet oppose the death penalty, but the 
electorate understands what a serious issue this is, and it will not 
stand for capital punishment to be exploited for political purposes.
  Yet another example of the seriousness with which citizens and 
politicians alike are treating this .issue is outgoing Virginia 
Governor Mark Warner's recent commutation of the sentence of Robin 
Lovitt to life in prison. Mr. Lovitt was convicted of robbery and 
murder and sentenced to death, but before he had exhausted all judicial 
remedies, a court employee destroyed the physical evidence in his 
case--the very evidence that Lovitt said would exonerate him if 
subjected to new advanced DNA analysis. Under Virginia law, the 
Commonwealth must keep all physical evidence until the defendant has 
exhausted all posttrial remedies. Although Governor Warner is a death 
penalty supporter, he decided that he simply could not put a man to 
death when the State itself had destroyed his ability to prove his 
innocence. As he put it, he believed that the case ``require[d] 
executive intervention to reaffirm public confidence in our justice 
system.'' In his almost 4 years as Governor, this was the first time 
Governor Warner granted a clemency petition.
  On the other side of the country, we have seen a great deal of public 
debate as Governor Schwarzenegger considered a clemency petition for 
Stanley Tookie Williams. Williams was a founding member of the Crips 
gang and was convicted of four murders in 1981. During his years in 
prison, however, Williams, by all accounts, worked to turn his life 
around. He denounced gang violence, tried to keep kids out of gangs, 
and even helped broker peace deals between rival gangs. Governor 
Schwarzenegger denied clemency and refused to commute Mr. Williams' 
death sentence to life without parole. The State of California put Mr. 
Williams to death on December 13.
  Much more is happening at the State level that has not received 
nearly as much attention. North Carolina and California recently 
created commissions to study the administration of the death penalty in 
their respective States, joining many other states that have already 
done so. Moratoriums on executions remain in place in Illinois and New 
Jersey, and are under consideration in other States. Many State 
legislatures have worked to address flaws in their systems or even 
rejected efforts to reinstate the death penalty. State courts have 
limited or banned the death penalty, including the Kansas Supreme 
Court, which in 2001 ruled that State's death penalty law 
unconstitutional. That case, Kansas v. Marsh, was heard in the U.S. 
Supreme Court just last week. Even in Texas, the State that executes by 
far the most people every year, a life-without-parole sentence was 
recently enacted, giving juries a strong alternative to the death 
penalty. And Texas Governor Perry also established a Criminal Justice 
Advisory Council to review the State's capital punishment procedures.
  These signs of progress have coincided with critical new restraints 
imposed by the Supreme Court, which in recent years has issued two key 
rulings that limited the application of the death penalty. In 2002, the 
Court held in Atkins v. Virginia that applying the death penalty to 
mentally retarded defendants was excessive and constituted cruel and 
unusual punishment in violation of the Eighth Amendment. And just this 
year, in Roper v. Simmons, the Court made the same decision with regard 
to individuals who commit crimes before their eighteenth birthday. 
Capital punishment for mentally

[[Page 30792]]

retarded defendants and juveniles is now unconstitutional in the United 
States.
  Mr. President, as I mentioned before, there are many reasons people 
are questioning the death penalty in ever-increasing numbers. A common 
concern is that innocent people end up on death row, and we cannot 
tolerate errors when the state is imposing such a final penalty. More 
than 120 people on death row have been exonerated and released. Think 
about that. Just over one thousand people have been executed in the era 
of the modem death penalty, while a number equaling 12 percent of those 
executed have been exonerated. Those are not good odds, Mr. President.
  Even more horrific is the prospect that we have already executed 
individuals who were, in fact, innocent. It saddens me greatly to 
report that information has come to light strongly demonstrating that 
two men put to death in this country in the 1990s may well have been 
innocent. That sends chills down my spine, as I'm sure it must for my 
colleagues.
  Earlier this year in Missouri, local prosecutors in St. Louis 
reopened the case of a 1980 murder because the evidence against the man 
convicted of the crime had fallen apart. That man, Larry Griffin, was 
sentenced to death, and he was executed by the State of Missouri more 
than 10 years ago. Yet now, 25 years after the crime and more than 10 
years after his execution, very serious questions about his guilt are 
being raised. CNN recently reported that a University of Michigan law 
professor who researched the case found that the first police officer 
on the scene now claims the person who testified as an eyewitness gave 
false testimony. A victim of the shooting, who was never contacted 
before Mr. Griffin's original trial, stated that the person claiming to 
be an eyewitness at the original trial was not present at the scene of 
the crime. Samuel Gross, the Michigan law professor who supervised the 
new investigation of the case that led to the St. Louis Circuit 
Attorney's decision, was quoted as saying with regard to this man's 
innocence: ``There's no case that I know of where the evidence that's 
been produced in public is as strong as what we see here.''
  The second case is from Texas, where a young man named Ruben Cantu 
was executed in 1993. He was just seventeen at the time of the murder 
for which he was executed. Again, in this case, the only eyewitness to 
the crime has recanted his statement, and told the Houston Chronicle 
that Cantu was innocent. The Houston Chronicle also reported that the 
judge, prosecutor, head juror, and defense attorney have since realized 
that, as the newspaper put it, ``his conviction seems to have been 
built on omission and lies.''
  The loss of one innocent life through capital punishment should be 
enough to force all of us to stop and reconsider this penalty. These 
cases illustrate the grave danger in imposing the death penalty. 
Whatever the new evidence that might come to light, it doesn't matter. 
There's no going back.
  Mr. President, I know that many people in this country say that it 
doesn't matter what other countries do or say, that we should not look 
abroad for ideas. But the fact is that attitudes are changing around 
the world about capital punishment, and the United States is in poor 
company internationally on this issue. We are the only Western 
democracy ranked in the top ten countries in executions in 2004. And 
increasingly, other countries are rejecting capital punishment. Over 
the past 10 years, according to Amnesty International, an average of 
three countries per year has abolished the death penalty.
  In closing, I urge my colleagues to take a long, hard look at capital 
punishment. Years of study have shown that the death penalty does 
little to deter crime, and that defendants' likelihood of being 
sentenced to death depends heavily on whether they are rich or poor, 
and what race their victims were. We have experienced again and again 
the risks, and realities, of innocent people being sentenced to death. 
I believe that is it wrong for the State to put people to death, 
especially when we can achieve our public safety goals by sentencing 
them to life without parole. It is heartening to see so many people 
reconsidering the death penalty, and it is my hope that in time we will 
end it in the United States.
  I yield the floor.

                          ____________________




                                  IRAQ

  Mr. LAUTENBERG. Mr. President, over the weekend the Senate passed my 
resolution, S. Res. 338, to honor the first 2,152 troops who have died 
in Iraq and Afghanistan by listing their names and hometowns in the 
Congressional Record. They deserve this tribute for their valiant 
support of their military obligations.
  I appreciate the support of my colleagues on this measure. It is a 
symbolic way for us to honor each of our fallen heroes individually.
  But there is another way we can honor their memory. And that is to be 
honest and truthful about the war in which they fought--Iraq.
  The President has taken small steps toward candor on Iraq, but the 
denial of reality is still apparent in his speeches.
  To make matters worse, the President is still making insulting 
insinuations about those who criticize his Iraq policy. In his Sunday 
night address to the nation, President Bush said:

       Some look at the challenges in Iraq and conclude that the 
     war is lost, and not worth another dime or another day.

  Does this statement suggest that those who disagree with the 
President would not even spend a trivial amount to protect America's 
international interests?
  The President states that the sacrifices in Iraq are made in dimes 
and days. But what about lives?
  What about the more than two American lives given each day so far 
this year in Iraq? The President didn't mention that.
  I have gone to many memorial services and funerals for brave, young 
Americans from New Jersey who died in Iraq. Seventy-three soldiers with 
ties to New Jersey have died in Iraq and Afghanistan.
  I have also visited Walter Reed Army Hospital here in Washington 
several times, and I have been struck by the incredible resilience and 
dedication to country of those young Americans.
  While these brave men and women put their lives on the line, this 
administration bypasses reality.
  Today we know that Iraq did not pose an imminent threat to our 
national security. We know that there were not weapons of mass 
destruction. We also learned that Iraq had nothinq to do with 9/11 and 
actually had an adversarial relationship with al-Qaida.
  There is no doubt Saddam Hussein was a maniacal dictator who killed, 
tortured, and suppressed his own people.
  But President Bush did not call for an invasion of Iraq based on 
Saddam's treatment of his own people. President Bush called for war 
with Iraq because he argued that Saddam was a direct threat to the 
American people.
  That turned out to be untrue, plain and simple.
  Now, in the wake of the administration's mishandling of this war, 
much of Iraq has turned into a magnet for terrorists and extremists. 
President Bush continues to say that Iraq is a ``central front of the 
war on terror.'' But the reality is that Iraq has become a terrorist 
front as a result of President Bush's mistakes.
  Our 160,000 troops in Iraq have become a tarqet for cowardly 
insurgents who attack us with roadside bombs and suicide attacks.
  This is not progress.
  Despite claims by supporters of the President's Iraq policy we are 
not making sufficient progress in Iraq. Unfortunately, we may be 
sinking deeper into a quaqmire.
  We have not made progress because the President has never put 
together a coherent plan for postinvasion Iraq.
  For evidence of this, one need only look at the infamous speech 
aboard the aircraft carrier on May 1, 2003, when President Bush 
declared ``mission accomplished.''
  ``Mission accomplished'' sure sounded like the job was done and our 
troops can begin to come home.

[[Page 30793]]

  But we now know the mission was not accomplished on May 1, 2003.
  More recently, over the past few weeks, President Bush has been 
making speeches about Iraq in an attempt to reshape people's 
perceptions of the war. The President knows that polls show that a 
majority of the American people do not believe that the war is being 
managed properly.
  President Bush thinks if something is repeated often enough, people 
will eventually believe it.
  But the American people will not stand still while we lose more of 
our courageous young men and women.
  We all pray that Thursday's Iraqi elections will lead to a viable 
government that will create stability. It could be a critical first 
step.
  But where are the plans if the elections do not lead to success? How 
long until more lost lives exhaust the patience and will of the 
American people?
  In the meantime, supporters of the President point to evidence of 
significant progress as more satellite dishes appear on Iraqi roofs and 
cell phones are in Iraqi hands. But while the anxiety and fear existing 
in thousands of American families continues, Iraqi satellite dishes and 
cell phones do not suggest relief.
  It seems possible to get an honest assessment from the administration 
of any future plans to get our people home.
  That probably explains why some of President Bush's statements on 
Iraq have been contradicted by current military leaders.
  For example, last June President Bush said there were 160,000 Iraqi 
troops trained and ready to fight. But then, a few months later, Gen. 
Georqe W. Casey, Jr.--the top U.S. commander in Iraq--said only one 
Iraqi battalion was able to conduct operations independently of 
American forces. That means less than a thousand Iraqi soldiers were 
actually equipped to fight without our help.
  And we should pay close attention to what the former head of U.S. 
Central Command--retired Gen. Anthony Zinni--said about this Iraq 
operation.
  General Zinni has described the poor planning for the Iraq war as, 
``at a minimum true dereliction, negligence and irresponsibility, at 
worse, lying, incompetence and corruption.''
  General Zinni went on to say, ``And to think that we are going to 
`stay the course'--the course is headed over Niagra Falls.''
  Other generals with vast experience voiced serious doubt to the White 
House about Iraq, including Norman Schwarzkopf, Wesley Clark, Brent 
Scowcroft and Eric Shinseki.
  But the people who wear a suit--not a uniform--in the administration 
didn't listen.
  I served in the Army. I have met thousands of soldiers. I know that 
it takes about 3 months to turn a young American into a trained and 
dedicated soldier. So why has it taken almost 3 years to train a 
handful of Iraqis to be able to fight for their country?
  President Bush also said this war has made us safer. But Iraq is not 
safe for our troops or the Iraqi people. We had 85 soldiers killed last 
month--one of the deadliest months since the war began.
  There have been over 70 suicide bombings in the last 2 months, an 
average of more than one a day and more than 3,000 concealed bombs 
either exploded or discovered.
  President Bush points to last Thursday's parliamentary elections in 
Iraq as a sign that there is light at the end of the tunnel. Let's hope 
this is true.
  But we have heard rosy predictions from this President before, yet 
the insurgency seemed to only grow each time.
  Remember: We also heard rosy predictions when the President said 
``mission accomplished.'' We heard it when Saddam Hussein was captured. 
We heard it a year ago after the first election in Iraq.
  Meanwhile, 2,158 of our best young Americans have been killed. And 
nearly 16,000 have been wounded--many with injuries that will forever 
change their lives. No wonder a significant majority of the American 
people do not believe that President Bush has a plan to end this war.
  That is why it is time for the President to give the American people 
a realistic plan for bringing our troops home.
  What needs to happen? How many Iraqi troops need to be trained?
  Let us set reliable goals for our mission, with an understanding of 
what it will take to get the job done and brinq our troops back home to 
their families.
  Mr. President, we don't want our leader to deny us the hard facts of 
war. And we don't want the price of this conflict hidden by prohibiting 
photographs of the flag-draped coffins that carry heroes back to our 
shores.
  We need a leader who recognizes what a majority of the American 
people see taking place in front of their eyes on television, in our 
newspapers, in our homes, and in our hearts.
  President Bush, I ask you to be frank with us about what we are 
facing in the future in Iraq. Show us how you will work to avoid 
further loss of life. And while we honor the memories of those who have 
perished, we must do whatever we can to make life more bearable for 
their families.

                          ____________________




        KOREAN FAIR TRADE COMMISSION DECISION AGAINST MICROSOFT

  Mrs. MURRAY. Mr. President, I rise today regarding the December 7 
Korean Fair Trade Commission, KFTC, decision against Microsoft. A major 
employer in Washington, Microsoft is being unfairly penalized by Korea, 
but this decision goes well beyond Microsoft as the Korean Fair Trade 
Commission's decision is ultimately a decision against free and fair 
trade.
  When the European Commission issued its competition decision against 
Microsoft in March 2004, I was one of many Members who expressed 
serious concerns about the decision and its impact on one of America's 
most innovative companies and its workers. Like many of my colleagues, 
however, I was also alarmed at the broader policy implications of the 
decision--that Europe would adopt a decision whose negative impact on 
trade was so clear, and which diverged so markedly from the Department 
of Justice's remedy addressing the same conduct.
  I believe that the December 7 decision of the Korean Fair Trade 
Commission against Microsoft is yet another warning sign that our 
trading partners are limiting competition in order to benefit their 
domestic interests. In this case, the Korean Fair Trade Commission not 
only followed the EU's market-distorting, anticonsumer approach, but 
appears to have gone substantially further than the EU remedies in 
several respects. The KFTC's decision makes me wonder whether the 
Microsoft case is not a unique case but instead indicates the beginning 
of a trend among some of our key trading partners to use competition 
law as a means to pursue protectionist agendas or advance domestic 
industrial policy goals. If so, this should be of tremendous concern to 
every member of this body.
  Last week I wrote to U.S. Trade Representative Portman about this 
issue, and I would like to ask unanimous consent to place that letter 
into the record.
  The letter urges Ambassador Port-
man to work with others in the administration--including at the White 
House and the Departments of Justice, State, and Commerce--to develop 
and implement mechanisms for addressing these issues in a more coherent 
and effective fashion. At the same time, I urged Ambassador Portman to 
work with others in the administration to take whatever steps are still 
available to advance the U.S. perspective in the Microsoft case, so 
that the anti-consumer, anti-innovation decisions do not establish a 
precedent that harms U.S. competitiveness for years to come.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                                  U.S. Senate,

                                Washington, DC, December 12, 2005.
     Hon. Rob Portman,
     U.S. Trade Representative,
     Washington, DC.
       Dear Ambassador Portman: When the European Commission 
     issued its competition decision against Microsoft in March 
     2004, I was one of many Members who expressed serious 
     concerns about the decision and its impact on one of 
     America's most innovative

[[Page 30794]]

     companies and its workers. Like many of my colleagues, 
     however, I was also alarmed at the broader policy 
     implications of the decision--that Europe would adopt a 
     decision whose negative impact on trade was so clear, and 
     which diverged so markedly from the Department of Justice's 
     remedy addressing the same conduct. At the time, my hope was 
     that the Commission's decision was the counter-example that 
     proved the rule--namely, that comity was alive and well among 
     the U.S. and its trading partners, and that the international 
     community was increasingly moving towards adopting U.S.-style 
     antitrust principles and rules.
       Recent developments, however, suggest otherwise. 
     Specifically, the December 7 decision of the Korean Fair 
     Trade Commission (KFTC) against Microsoft--in which the KFTC 
     not only followed the EU's market-distorting, anti-consumer 
     approach, but appears to have gone substantially further than 
     the EU remedies in several respects--makes me wonder whether 
     the Microsoft case is not a unique case, but instead 
     indicates the beginning of a trend among some of our key 
     trading partners to use competition law as a means to pursue 
     protectionist agendas or advance domestic industrial policy 
     goals. If so, this should be of tremendous concern to the 
     United States and your office.
       I understand that your Office, and you personally, have 
     been following this issue closely, and that you and other 
     USTR representatives have expressed the Administration's 
     strong concerns on these issues with your Korean counterparts 
     on more than one occasion. As a Member who represents a State 
     with dozens of leading innovative companies employing several 
     hundreds of thousands of workers, please know that these 
     efforts are greatly appreciated. Clearly, however, the 
     results to date are not what we would have hoped.
       I am deeply concerned that, without a strategy for 
     addressing these issues more effectively--not only in the EU 
     and Korea, but also more broadly--leading U.S. firms will 
     increasingly face competition rulings in foreign nations that 
     have little or no economic justification, but that make it 
     much more difficult for U.S. industry to compete in global 
     markets. With all of the other challenges facing the global 
     trading regime at the moment, the United States can ill 
     afford yet another barrier denying U.S. industry and workers 
     the benefits of international trade.
       I would therefore urge you to work with others in the 
     Administration--including at the White House and the 
     Departments of Justice, State, and Commerce--to develop and 
     implement mechanisms for addressing these issues in a more 
     coherent and effective fashion. At the same time, I would 
     urge you and others in the Administration to take whatever 
     steps are still available to you to advance the U.S. 
     perspective in the Microsoft case, so that the anti-consumer, 
     anti-innovation decisions do not establish a precedent that 
     harms U.S. competitiveness for years to come.
       I would appreciate your response to this letter and look 
     forward to continuing our dialogue on these issues in the 
     months ahead.
           Sincerely,
                                                     Patty Murray,
     U.S. Senator.

                          ____________________




               FOURTH TERM FOR MAYOR TOM MENINO OF BOSTON

  Mr. KENNEDY. Mr. President, I welcome this opportunity to 
congratulate our outstanding mayor in Boston, Tom Menino, on his 
reelection last month. The people of Boston love Tom, and for good 
reason.
  Running for his fourth full term as mayor, Tom received an incredible 
68 percent of the vote on election day, an extraordinary new mandate to 
continue his leadership that has meant so much to our city.
  Tom is Boston's modern FDR, and at the end of this term he will 
become the longest serving mayor in Boston's 375-year history.
  It is a distinction Tom Menino has earned through his unwavering 
dedication and commitment to the people of Boston.
  For 12 years, Mayor Menino has worked day in and day out to unite our 
diverse city, make its neighborhoods and communities stronger, create 
fertile opportunities for businesses, and improve the quality of life 
for all the people of Boston.
  He has fought to protect and expand housing for low-income families 
in the midst of the Nation's tightest housing market. He has never 
stopped working to meet the needs and protect the basic rights of every 
resident of our city--regardless of their race or background.
  He has been a pioneer in education, creating Read Boston to help 
every child read at grade level by third grade and the Afterschool for 
All partnership so that learning doesn't end once school lets out for 
the day. He has fought to close the achievement gap for all of Boston's 
children and made Boston the first urban school district to have every 
school wired to the Internet.
  Tom Menino has proven that America's great urban areas can succeed 
and thrive in this new economy, at a time when more and more of our 
Nation seems headed for the suburbs. Tom modestly describes himself as 
an urban mechanic, but it is far more accurate to say that he is an 
urban genius. Each day, he adds new proof that there are second and 
third acts for America's cities in our modern Nation.
  Above all, Mayor Tom Menino has always worked tirelessly to ensure 
that Boston's brightest days lie ahead and that our city will continue 
to build on its incomparable history.
  Tom has worked especially closely with our local colleges and 
universities to make certain that Boston remains the most prestigious 
destination in America for young men and women seeking excellence in 
higher education.
  He has welcomed our burgeoning biotech and medical research sectors 
in order to guarantee that Boston stays at the cutting edge of these 
highly promising industries of the future. This new century may well be 
the century of the life sciences, and Tom Menino is making sure that 
Boston helps write that history.
  Next year marks the 100th anniversary of the inauguration of another 
visionary Mayor of Boston, my grandfather, John F. Fitzgerald, whose 
love of our city was legendary and whose commitment to progress was 
unchallenged.
  Grampa Fitzgerald might not immediately recognize modern Boston as 
his beloved hometown, but he would be thoroughly at home with its 
vitality and its spirit of innovation, progress, and opportunity. Those 
qualities he fought so hard for a century ago are alive and well today, 
an he would be grateful that the city he loved so dearly is now in the 
capable hands of Mayor Tom Menino.
  In the years ahead, I look forward to continuing to work with Mayor 
Menino to find solutions to the real and often daunting challenges 
facing Boston and all of urban America. No one is more committed to 
solving the big issues than Tom Menino.
  He and his extraordinary wife Angela have made a remarkable team for 
Boston, and all of us in the city look forward very much to more of the 
unique brand of Menino leadership in the years ahead.

                          ____________________




                         TRIBUTE TO JULIA SERNA

  Mr. DOMENICI. Mr. President, I would like to honor and praise a long-
time member of my staff, Julia Serna, who has served the people of New 
Mexico admirably. Julia works in my Las Cruces office and has been a 
member of my staff since April 1993. Julia will retire at the end of 
2005.
  Julia's positive outlook is remarkable, and her smile and zest for 
life is contagious. And her jovial attitude and eagerness to deal with 
challenges is commendable. So many of those from my home State have 
come to know and love Julia over the years. Julia has always been known 
as someone always willing to listen to my constituents and lend a 
helping hand.
  During her work on immigration and veterans issues, she has gone to 
great lengths to help a great many people in my home State. Julia is 
loyal and is one on whom I have come to rely and depend. In that time, 
we have accomplished much, and I am extremely proud of those 
accomplishments. She will be greatly missed by me and my staff and by 
the people of southwestern New Mexico for whom she has worked for so 
many years.
  Most importantly, Julia is my good friend. But the time has come. 
After over 12 years of service on my staff, I know Julia's children 
Susie, Gabriel, Adolfo, and her grandchildren and great grandchild will 
be glad to be able to spend more time with her. As she begins her well-
deserved retirement, I extend my best wishes to Julia and her family. 
Julia, for all you have done for me, and for all you have done for the 
people of New Mexico, you have my utmost respect and deepest gratitude.

[[Page 30795]]

Thank you, for a job well done. We will miss those tamales at the 
office.

                          ____________________




                          JUDICIAL PHILOSOPHY

  Mr. HATCH. Mr. President I rise to make a few remarks about a matter 
relating to judicial philosophy that has been discussed by some during 
the course of this year in connection with the public debate over 
Supreme Court vacancies that have occurred this year.
  Some have attempted to create a false conclusion by criticizing a 
school of judicial philosophy sometimes referred to as the 
``constitution in exile''.
  For example, earlier this year, my esteemed colleague from Delaware, 
Senator Biden, who, I understand, teaches constitutional law at the 
University of Delaware, entered into this debate. My friend from 
Delaware specifically asked us to reflect upon the judicial philosophy 
of one of our Nation's most respected Federal appellate judges, Chief 
Judge Douglas Ginsburg of the U.S. Court of Appeals for the District of 
Columbia Circuit.
  I was recently in attendance at the DC Circuit for the formal 
swearing in of Judge Thomas Griffith and was once again impressed with 
the quality of jurists of this extremely important and influential 
court.
  I commend Senator Biden for his support for the nomination of Judge 
Griffith.
  As I will explain, I do take exception to some of the 
characterizations that the former chairman of the Judiciary Committee 
made about the views of Chief Judge Ginsburg.
  The senior Senator from Delaware invited us to ``read Judge 
Ginsburg's ideas about the `Constitution in Exile'. . . [and to] read 
what Judge Ginsburg has written'' about the ``fifth amendment's taking 
clause, the non-delegation doctrine, the 11th amendment, and the 10th 
Amendment.'' Since the Chief Judge of the DC Circuit is one of our 
Nation's finest jurists, I welcomed this opportunity to reacquaint 
myself with his opinions and writings. I was surprised and somewhat 
dismayed, then, to discover that this was such a short assignment.
  Considering the sharp criticism by my Judiciary Committee colleague, 
Senator Biden, of Chief Judge Ginsburg's views as ``radical,'' I was 
taken aback to discover how little he had actually written on the 
specified subjects.
  It is no exaggeration to say that on most of these issues, Judge 
Ginsburg had written nothing of substance.
  That being said, having considered what little he did write on these 
topics, the characterization of his views as ``radical'' is, at best, a 
stretch.
  If the research that I have seen is correct, Chief Judge Ginsburg has 
authored only two opinions that even refer to the takings clause of the 
Constitution. In neither did he decide the takings claim being 
presented.
  In Corporation of Presiding Bishop of the Church of Jesus Christ of 
Latter-Day Saints v. Hodel, 830 F.2d 374, 381, DC Cir. 1987, Chief 
Judge Ginsburg, writing for the court, noted that ``[t]he question of 
whether courts, as opposed to legislative bodies, can ever `take' 
property in violation of the Fifth Amendment is an interesting and by 
no means a settled issue of law.'' He determined, however, that the 
court did not need to decide this issue. Similarly, in City of Los 
Angeles v. United States Dept. of Transp., 90 F.3d 591, D.C. Cir. 1996, 
unpublished, Chief Judge Ginsburg, writing for the court, determined 
that the takings claims were not ripe for resolution.
  Many of my colleagues have denounced ideological decision-making by 
judges who are eager to promote their own speculative constitutional 
understanding at the expense of the American people's traditional 
views. I actually think that is a fair description of judicial 
activism, and it is clear that Chief Judge Ginsburg has not engaged in 
it. Quite the contrary, in these cases where he declined the 
opportunity to reach for and resolve constitutional questions 
prematurely, he exhibited the moderation and prudence we should expect 
of our judges.
  Similarly, Chief Judge Ginsburg does not appear to have written 
anything of significance on the tenth or eleventh amendments. In the 
one and only case in which he even mentions the tenth amendment, 
Chenoweth v. Clinton, 181 F.3d 112, D.C. Cir. 1999, Chief Judge 
Ginsburg, writing for the court, did not address the merits of the 
claim because the court had determined that the party lacked standing. 
As for the eleventh amendment, Chief Judge Ginsburg's ``radical'' 
contribution was to note, in Brown v. Secretary of Army, 78 F.3d 645, 
653, D.C. Cir. 1996, that a case referred to by the appellant citing 
the eleventh amendment was inapposite to the case before the court. 
This is hardly the controversial statement in support of State 
sovereign immunity one would expect given my colleague's remarks.
  So, as far as I am aware, Chief Judge Ginsburg has not written 
substantively on the tenth amendment, the eleventh amendment, or the 
takings clause. How then can anyone fairly conclude that Chief Judge 
Ginsburg has such radical views about the constitutionally limited 
powers of the national government? Perhaps some are reading between the 
lines and seeing emanations and penumbras that others do not discern.
  The only topic singled out for criticism by my friend from Delaware 
that I could find was, in fact, substantively addressed by Chief Judge 
Ginsburg is the non-delegation doctrine. In a 1995 book review of David 
Schoenbrod's ``Power Without Responsibility'', Chief Judge Ginsburg 
employed the term ``Constitution-in-exile.''
  Apparently some liberal critics of the President's judicial nominees 
have seized on this expression, perhaps in the hope that it will scare 
the American people into fearing some super-secret rightwing led by 
wayward judges.
  Of course, this is nonsense.
  But it is worth noting that the many of the critics who talk today 
about the Constitution-in-exile have completely unmoored that term from 
Chief Justice Ginsburg's original formulation.
  In an article in the journal Regulation, Chief Judge Ginsburg wrote 
the following:

       [F]or 60 years the non-delegation doctrine has existed only 
     as part of the Constitution-in-exile, along with the 
     doctrines of enumerated powers, unconstitutional conditions, 
     and substantive due process, and their textual cousins, the 
     Necessary and Proper, Contracts, Takings, and Commerce 
     Clauses. David Schoenbrod, ``Power Without Responsibility: 
     How Congress Abuses the People Through Delegation,'' 
     Regulation Magazine (1995 No. 1) (Book Review), at 84.

  He went on to explain that, ``The memory of these ancient exiles, 
banished for standing in opposition to unlimited government, is kept 
alive by a few scholars who labor on in the hopes of a restoration, a 
second coming of the Constitution of liberty--even if perhaps not in 
their own lifetimes.'' Id.
  So two sentences equal a judicial scheme to advance substantive 
economic liberty and restrain Federal authority? For a careful reader, 
it is clear that Chief Judge Ginsburg promotes no such agenda. First, 
he was referring only to the non-delegation doctrine, the supposedly 
radical proposition that Congress, not unelected bureaucrats, should be 
responsible for making our laws. And second, Chief Judge Ginsburg was 
writing a book review, and his reference to those ``few scholars'' was 
obviously not a reference to himself because he had not written on this 
subject.
  His point was that the author of the book he was reviewing was 
misguided in thinking that the Supreme Court was likely to put teeth 
back into the non-delegation doctrine. Far from arguing that courts 
should strip Congress of their authority to delegate its lawmaking 
authority, he suggested that it would be more productive to ask 
Congress to change the way it delegates lawmaking authority to 
administrative agencies. Chief Judge Ginsburg was Administrator of 
Information and Regulatory Affairs of the Office of Management and 
Budget during the Reagan administration. This is the office within the 
Executive Office of the President charged with reviewing all Federal 
regulations. So Chief Judge Ginsburg has considerable experience and 
expertise in these matters.
  In the referenced book review, Chief Judge Ginsburg endorses then-
Judge Breyer's suggestion that ``[p]roposed

[[Page 30796]]

regulations, or at least those that would impose a burden in excess of 
a specified amount, say $100 million, would not take effect unless 
affirmatively approved by both houses of Congress.'' In this regard, I 
would note that Justice Breyer was one of the seminal thinkers in the 
field of regulatory reform and I would recommend that everyone read his 
1982 book, ``Regulation and Its Reform'' in which he lays out a 
comprehensive analysis of, and suggestions for, regulatory reform.
  In Chief Judge Ginsburg's speech, On Constitutionalism, published in 
the Cato Supreme Court Review in 2003, he articulates much the same 
position, stating that the separation of powers doctrine clearly 
indicates that ``there must be a limit upon the ability of Congress to 
delegate lawmaking functions to the executive branch.'' Id. at 16. That 
is, the Constitution does seem to prohibit legislators from simply 
delegating their constitutional authority to legislate to an executive 
branch agency and then go home. Yet he also notes the Supreme Court's 
failure since the mid 1930's to find any act of Congress a violation of 
the non-delegation doctrine, demonstrating the High Court's reluctance 
to give meaning to the doctrine. So this is the view some have 
characterized as radical, the Constitution assigns the legislative 
power to Congress, and it violates the principle of separation of 
powers to have unlimited delegation of that law-making authority to 
executive branch agencies. Yet because the courts have been reluctant 
to adjudicate these arrangements, any remedy must come through 
political persuasion.
  Chief Judge Ginsburg did join an opinion, the relevant part of which 
was written by another judge, in which the court held that the 
Environmental Protection Agency had interpreted sections of the Clean 
Air Act authorizing the national ambient air quality standards, NAAQS, 
for ozone and particulate matter so loosely as to render them 
unconstitutional delegations of legislative power. See American 
Trucking Ass'n. v. EPA, 175 F.3d 1027, 1034-40, D.C. Cir. 1999. More 
specifically, the court determined that it was unclear what in EPA's 
view was the ``intelligible principle'' the Congress had directed the 
agency to follow and no such principle was apparent to the court on the 
face of the act.
  The court therefore remanded the cases to the EPA so that it could 
detail the principle limiting the agency's discretion. The full DC 
Circuit then denied the EPA's petition for rehearing en banc. See 195 
F.3d 4, DC Cir. 1999. It is true, however, the Supreme Court granted 
the EPA's petition for certiorari and held that the act's delegation of 
authority to the EPA to set the NAAQS at the level ``requisite to 
protect the public health'', although broad, provided an ``intelligible 
principle'' for setting air quality standards and was therefore 
constitutional without further delineation by the agency. Whitman v. 
American Trucking Ass'n, 531 U.S. 457, 473, 2001. But this is hardly 
the first time the Supreme Court overruled an appellate court and, in 
any case, is a pretty thin reed on which to reach a conclusion that the 
lower court decision represented a radical break with constitutional 
jurisprudence.
  I encourage everyone to examine Chief Judge Ginsburg's writings 
pertaining to the takings clause, the non-delegation doctrine, and the 
tenth and eleventh amendments. A fair reading warrants a conclusion 
that there is nothing radical about his reasoning or conclusions. Chief 
Judge Ginsburg's writings on these matters are neither extensive nor 
extreme. Characterizing them as a ``stark departure from current 
constitutional law'' is not justified.
  I also might add that the issue of non-delegation is not as black or 
white as many have come to believe in recent times. Some appear--
including many advocates of the liberal welfare state administered by 
so many Federal agencies--to argue, contrary to the Constitution's 
clear commitment to limited government, that there should be little, if 
any, judicial oversight over congressional actions and claim that even 
modest judicial requirements that Congress act within its 
constitutional authority are radical changes to our law. It seems 
counterintuitive then that these same people argue for an unlimited 
congressional authority to delegate their lawmaking power to another 
branch of Government. On the one hand, Congress is all powerful. On the 
other hand, they can give that power away.
  The record reflects that Chief Judge Ginsburg is a mainstream 
conservative judge, who applies the Constitution faithfully. He is no 
judicial radical. He is one of the most respected judges in the Federal 
judiciary. Suggestions to the contrary are not supported by the facts.

                          ____________________




   NOTICE OF CHANGE IN INTERNET SERVICES USAGE RULES AND REGULATIONS

  Mr. LOTT. Mr. President, I am taking this opportunity to announce 
that in accordance with Title V of the Rules of Procedure of the 
Committee on Rules and Administration, the committee intends to update 
the ``U.S. Senate Internet Services Usage Rules and Regulations.''
  Based on the committee's review of the 1996 regulations and the 
October 8, 2003 amendments to the regulations, the following changes to 
these policies have been adopted effective today, December 21, 2005. 
The changes primarily affect the activities of a Senator who is running 
for election, section C.
  Set forth below are the updated Internet Usage Rules and Regulations:


                      A. Scope and Responsibility

       1. Senate Internet Services (``World Wide Web and 
     Electronic mail, BLOGs, Podcasting, streaming media, etc.'') 
     may only be used for official purposes. The use of Senate 
     Internet Services for personal, promotional, commercial, or 
     partisan political/campaign purposes is prohibited.
       2. Members of the Senate, as well as Committee Chairmen and 
     Officers of the Senate may post to the Internet Servers 
     information files which contain matter relating to their 
     official business, activities, and duties. All other offices 
     must request approval from the Committee on Rules and 
     Administration before posting material on the Internet 
     Information Servers.
       3. Websites covered by this policy must be located in the 
     SENATE.GOV host-domain.
       4. It is the responsibility of each Senator, Committee 
     Chairman (on behalf of the committee), Officer of the Senate, 
     or office head to oversee the use of the Internet Services by 
     his or her office and to ensure that the use of the services 
     is consistent with the requirements established by this 
     policy and applicable laws and regulations.
       5. Official records may not be placed on the Internet 
     Servers unless otherwise approved by the Secretary of the 
     Senate and prepared in accordance with Section 501 of Title 
     44 of the United States Code. Such records include, but are 
     not limited to: bills, public laws, committee reports, and 
     other legislative materials.


      B. Posting or Linking to the Following Matter is Prohibited

       1. Political Matter
       a. Matter which specifically solicits political support for 
     the sender or any other person or political party, or a vote 
     or financial assistance for any candidate for any political 
     office is prohibited.
       b. Matter which mentions a Senator or an employee of a 
     Senator as a candidate for political office, or which 
     constitutes electioneering, or which advocates the election 
     or defeat of any individuals, or a political party is 
     prohibited.
       2. Personal Matter
       a. Matter which by its nature is purely personal and is 
     unrelated to the official business activities and duties of 
     the sender is prohibited.
       b. Matter which constitutes or includes any article, 
     account, sketch, narration, or other text laudatory and 
     complimentary of any Senator on a purely personal or 
     political basis rather than on the basis of performance of 
     official duties as a Senator is prohibited.
       c. Reports of how or when a Senator, the Senator's spouse, 
     or any other member of the Senator's family spends time other 
     than in the performance of, or in connection with, the 
     legislative, representative, and other official functions of 
     such Senator is prohibited.
       d. Any transmission expressing holiday greetings from a 
     Senator is prohibited. This prohibition does not preclude an 
     expression of holiday greetings at the commencement or 
     conclusion of an otherwise proper transmission.
       3. Promotional Matter
       a. The solicitation of funds for any purpose is prohibited.
       b. The placement of logos or links used for personal, 
     promotional, commercial, or partisan political/campaign 
     purposes is prohibited.


            C. Restrictions on the Use of Internet Services

       1. During the 60 day period immediately preceding the date 
     of any primary or general

[[Page 30797]]

     election (whether regular, special, or runoff) for any 
     national, state, or local office in which the Senator is a 
     candidate, no Member may solicit constituent input or 
     inquiries (such as online petitions or opinion polls or issue 
     alerts) using a Senate Internet Server (``World Wide Web and 
     Electronic mail, BLOGs, Podcasting, streaming media, etc.''), 
     unless the candidacy of the Senator in such election is 
     uncontested.
       2. Electronic mail may not be transmitted by a Member 
     during the 60 day period before the date of the Member's 
     primary or general election unless it is in response to a 
     ``direct inquiry''. Exceptions to this moratorium include the 
     following: press release distribution to press organizations 
     and email to perform administrative communication. ``Direct 
     inquiries'' do not include a request to be added to a mailing 
     list, subscription list, or other request to receive future 
     mailings. During the 60 day period, electronic news letters 
     may not be sent out.
       3. During the 60 day period immediately before the date of 
     a biennial general Federal election, no Member may solicit 
     constituent input or inquiries (such as online petitions or 
     opinion polls, issue alerts or request to be added to 
     newsletter mailing lists--electronic or otherwise, on behalf 
     of another Senator who is a candidate for election, unless 
     the candidacy of the Senator in such election is 
     uncontested.''
       4. An uncontested candidacy is established when the Rules 
     Committee receives written certification from the appropriate 
     state official that the Senator's candidacy may not be 
     contested under state law. Since the candidacy of a Senator 
     who is running for re-election from a state which permits 
     write-in votes on elections day without prior registration or 
     other advance qualification by the candidate may be 
     contested, such a Member is subject to the above 
     restrictions.
       5. If a Member is under the restrictions as defined in 
     subtitle C, paragraph (1), above, the following statement 
     must appear on the homepage: (``Pursuant to Senate policy, 
     newsletters, petitions, opinion polls and issue alerts and 
     other electronic communications cannot be initiated by this 
     office for the 60 day period immediately before the date of a 
     primary or general election.''). The words ``Senate Policy'' 
     must be hypertext linked to the Internet services policy on 
     the Senate Home Page.
       6. A Senator's homepage may not refer or be hypertext 
     linked to another Member's site or electronic mail address 
     without authorization from that Member.
       7. Any Links to Information not located on a Senate 
     Internet Server must be identified as a link to a non-Senate 
     entity.


                            D. Miscellaneous

       Domains and Names (URL)--Senate entities must reside 
     exclusively on SENATE.GOV domains. The URL name for an 
     official Senate Web site located in the SENATE.GOV domain 
     must:
       1. Member's sites--contain the Senator's last name.
       2. Committee sites--contain the name of the committee.
       3. Officer sites--contain the name of the office.

                          ____________________




                        NEPAL'S DOWNWARD SPIRAL

  Mr. LEAHY. Mr. President, this is the third time in the past 6 months 
that I have spoken in this chamber about Nepal. I do so because this 
land of mostly impoverished tea and rice farmers who toil between India 
and China on precipitous hillsides in the shadows of the Himalayas, is 
experiencing a political crisis that may plunge the country into chaos.
  As many predicted, King Gyanendra's seizure of absolute power on 
February 1 and suppression of civil liberties has damaged Nepal's 
foreign relations, triggered clashes between prodemocracy demonstrators 
and the police, and strengthened the Maoist insurgency.
  The Maoists, whose use of extortion and brutality against poor 
villagers has spread throughout the country, announced a unilateral 
ceasefire on September 3 which they recently extended for an additional 
month. Although flawed, the ceasefire was the impetus for a loose 
alliance with Nepal's weak political parties after the King refused to 
negotiate with them and sought instead to consolidate his own grip on 
power.
  Last month, the Maoists and the parties endorsed a vaguely worded but 
important 12 point understanding that could be the basis for a national 
dialogue to restore democracy and end the conflict. That, however, 
would require some reciprocal confidence building measures by the army, 
which has so far rejected the Maoist ceasefire as a ploy and continues 
to see itself as the defender of an anachronistic, corrupt and 
autocratic monarchy.
  Although the army has won praise for its role in international 
peacekeeping missions, its reputation has been badly tarnished because 
of its abusive and ineffective campaign against the Maoists. It has 
engaged in arbitrary arrests, torture and extrajudicial killings of 
ordinary citizens, which has alienated many of the same people who have 
been victims of the Maoists.
  On December 10, when hundreds of Nepalese citizens took to the 
streets to protest the King's repressive actions, the police used force 
to break up the rally and arrested several dozen people. The press 
reported another 120 arrests and dozens injured in demonstrations on 
December 17. More protests are likely, and it may be only a matter of 
time before Katmandu is in the full throes of a pitched battle between 
prodemocracy demonstrators and the King's security forces.
  This is the disheartening situation in which Nepal finds itself 
today. The immediate challenge for the United States is how to help 
promote a political dialogue which includes the broadest possible 
participation from Nepali society to restore and strengthen democracy 
and end the conflict.
  The Maoist cease-fire, while welcome, was a tactical move to lure the 
political parties into an alliance and further isolate the palace. 
There is no way to predict with confidence if the Maoists would 
participate in a political process in good faith, or simply use it as a 
ruse to gain new recruits and weapons. A resumption of attacks against 
civilians would be condemned and resisted by the international 
community. The Maoists should know that they cannot defeat the 
government by force, and as long as they extort money and property and 
abduct children they will be seen as enemies of the Nepali people.
  Similarly, military experts have concluded that Nepal's undisciplined 
army cannot defeat a determined insurgency that attacks civilians and 
army posts and then disappears into the mountains.
  There are also concerns about Nepal's political parties, who do not 
have a record of putting the interests of the nation above their own 
self interest. But the political parties, for all their flaws, are the 
real representatives of the Nepali people. They urgently need to 
reform, but there is no substitute for them.
  Despite these difficulties and uncertainties, it is clear that the 
King has failed to provide the leadership to build bridges with the 
country's democratic forces and develop a workable plan. It is also 
clear that efforts by the international community, including the United 
States, to appeal to the King to start such a process, have failed. The 
Bush administration should apply whatever pressure it can, including 
denying U.S. visas to Nepali officials and their families.
  With few options and no guarantees, Nepal's hour of reckoning is 
approaching. There is a growing possibility that the King's obstinacy 
and unpopularity will trigger massive civil unrest, shootings and 
arrests of many more civilians by soldiers and police, Nepal's further 
isolation, and perhaps the end of the monarchy itself.
  Only the army has the ability to convince the King to abandon his 
imperial ambitions, but time is running out. The army's chief of staff, 
General Pyar Jung Thapa, was privileged to receive training at the Army 
War College and he has participated in other U.S. military training 
programs. He has led Nepali troops in UN peacekeeping missions. He 
knows, or he should have learned, that the function of a modern, 
professional military is to protect the rights and security of the 
people, not the privileges of a dictator who has squandered the moral 
authority of his office. It is not only in the interests of Nepal, but 
in the army's long-term self-interest, to show real leadership at this 
critical time.
  The United States should do everything possible to encourage the army 
to announce its own cease-fire, to accept international observers as 
the Maoists have said they would do, and to support a broadly inclusive 
political dialogue with or without the participation of the palace.
  Such a process, to be meaningful, must lead to free and fair 
elections.

[[Page 30798]]

The municipal elections announced by King Gyanendra for early next 
year, without any consultation with the political parties, are no 
solution. An attempt to apply a veneer of legitimacy to an otherwise 
undemocratic process will only prolong and exacerbate this crisis.
  Many of the Maoists' grievances mirror those of the majority of 
Nepal's people who for centuries have suffered from discrimination, 
poverty, and abuse by one corrupt government after another. But Nepal's 
problems, which are at the root of the conflict, can only be solved 
through a transparent, democratic process. The Maoists have opened the 
door a crack for that to begin. The army should reciprocate. The 
international community should lend its support.

                          ____________________




                      RECOGNIZING SENATOR CORZINE

  Mr. DOMENICI. Mr. President, I rise to wish Senator Jon Corzine the 
very best as he leaves his service in the Senate to become the next 
Governor of the State of New Jersey. Although we didn't always agree on 
all the issues, it has been an honor to work with him. He has always 
been courteous and professional and I have enjoyed the opportunity to 
know him.
  Senator Corzine's career has taken him to the uppermost levels in the 
business world. He was a partner at Goldman Sachs at the age of 33 and 
he became CEO of that prestigious firm at the age of 50. As someone who 
has been extraordinarily successful in the private sector, I am sure 
Senator Corzine has had many life opportunities offered to him. The 
fact that he has chosen a career in public service speaks a great deal 
to the type of person that he is.
  Senator Corzine's economic expertise helped him become a leader on 
budget and fiscal issues in the Senate. I had the privilege of serving 
with Senator Corzine as members on the Budget Committee. His knowledge 
and understanding of financial markets and economic issues will be 
missed.
  Jon Corzine has been a good Senator, and I wish him success as he 
leaves here to become Governor of the State of New Jersey.

                          ____________________




                      LCDR ANDREW J. SCHULMAN, USN

  Mr. DOMENICI. Mr. President, I rise to recognize LCDR Andrew 
Schulman, U.S. Navy for the outstanding contributions he rendered this 
past year while serving as a legislative fellow on my staff. Andrew is 
completing his Capitol Hill fellowship this month, and it is my hope 
that he has benefited as much from this experience as have I from 
having him on my staff.
  Lieutenant Commander Schulman is a member of the U.S. Navy Civil 
Engineer Corps and is a Seabee Combat Warfare qualified officer. To my 
great benefit, Andrew joined my office in a year when the Department of 
Defense, made public its Base Closure and Realignment list. When an Air 
Force base in my home State of New Mexico was designated for closure, 
Andrew's expertise in facilities planning and assessment proved 
critical in our successful effort to convince the BRAC Commission that 
the DOD's decision on Cannon Air Force Base was premature and deserved 
a second look. I have no doubt that Andrew's tireless work and 
dedication was key to the Commission's ultimate finding that DOD 
``substantially deviated'' on several BRAC selection criteria and that 
the Department ``shall seek'' a new mission for Cannon.
  Andrew's experience as the officer in charge of designing and 
constructing detention cells for enemy combatants at Guantanamo Bay 
also provided me a firsthand insight on the issue of enemy prisoner 
detainment. It is an issue that has been carefully scrutinized by 
Congress this year, and Andrew provided sharp memoranda and oral 
briefings on both legal and policy aspects that greatly informed my own 
understanding of both interrogation and detainee policies of the 
Department of Defense.
  I must also thank Andrew's family for enduring his many late nights 
at work. So to Mary Rose, Andrew's wife, and the Schulman children, 
Adam and Emma, I say thank you. And without question, you can be 
extremely proud of Andrew's dedication to our country.
  Finally, I want to give my heartfelt thank you to Andrew for his 
service. His ``can-do'' attitude and tireless work ethic were 
infectious. His willingness to tackle issues which were new to him and 
to embrace the goals I have set for my staff on behalf of both the men 
and women of the armed forces and the citizens of New Mexico were truly 
commendable. I have no doubt that as Andrew continues his military 
career, he will achieve great things for both the U.S. Navy and his 
country, and I wish him the very best of luck in all his future 
endeavors.

                          ____________________




                  TRIBUTE TO SENATOR WILLIAM PROXMIRE

  Mr. DODD. Mr. President, I rise today to honor a long-time friend and 
an esteemed colleague William Proxmire, who passed away last week at 
the age of 90. I had the privilege of serving with him in this body for 
8 years.
  Senator Proxmire retired from this Chamber 16 years ago, but he is 
still remembered for his staunch work ethic and his unique dedication 
to a set of closely held principles. His standards of conduct as a U.S. 
Senator are legendary. In 22 years of service, he attended more than 
10,000 rollcall votes--still a record in the Senate. In his last two 
campaigns for office, he declined all campaign donations--from anyone. 
During each race, he spent less than $200, all out of his own pocket, 
mostly to pay for postage and envelopes to return donations offered to 
him by his supporters. In both instances, he won by a landslide, a 
testament to the overwhelming support of his constituency in Wisconsin.
  I have always felt a special affinity for Senator Proxmire and the 
issues that he championed. He was one of the few Senators who served 
with both my father and me. And he dedicated a great deal of time and 
effort to an issue that both my father and I considered paramount to 
our Nation's future. Over 19 years, he made over 3,000 statements on 
the Floor in support of ratification of an international treaty 
outlawing genocide. My father, as Senator Proxmire put it, 
``contributed a special zeal to this effort,'' fighting for this issue 
even before he entered the Senate. In 1950, as a member of a special 
committee of the American Bar Association, my father was one of the 
first witnesses to appear before the Foreign Relations Committee in 
favor of a treaty condemning genocide. Senator Proxmire's efforts over 
the years to champion this issue meant a great deal to me. And I am 
particularly honored to have brokered a deal with Senator Jesse Helms 
in 1988 to finally commit the United States as a signatory to this 
treaty.
  I also had the privilege of serving with Senator Proxmire on the 
Banking Committee when he was the chairman of that body, and I can tell 
you, that he performed his duties with a unique commitment both to 
competition and the rights of the consumer. Early in his career, he 
passed the Truth-in-Lending Act, ensuring consumer access to 
information and forcing banks to compete openly and on equal terms. He 
also helped pass a bill deregulating the banking industry, which helped 
financial institutions offer better services at lower costs to 
consumers.
  Senator Proxmire is perhaps best remembered for his fervent devotion 
to slowing Government spending. He returned over $1 million of his 
staff budget to the Treasury. He refused to travel abroad at the 
expense of the taxpayers. And he developed the ``Golden Fleece'' award 
to expose government programs that he considered wasteful. He gave 
statements on the floor exposing studies that explored the effects of 
alcohol on fish, documented the body measurements of airline flight 
attendants, and examined why people fall in love. Each ``Golden 
Fleece'' not only illuminated Government programs that might be 
considered profligate, but reminded us of the humor and personality of 
this noble public servant.
  My wife Jackie and I offer our deepest condolences to his wife Helen, 
to his family, and to the people of Wisconsin and the citizens of our 
Nation, for the loss of such a dedicated public servant and an 
exceptional man.

[[Page 30799]]



                          ____________________




                          BROADCASTING BALANCE

  Mr. BROWNBACK. Mr. President, I rise today to reaffirm the 
Corporation for Public Broadcasting's requirement to ensure ``strict 
adherence to objectivity and balance in all programs or series of 
programs of a controversial nature.'' CPB receives roughly $400 million 
from Congress as part of the Labor, Health and Human Services, 
Education Appropriations bill.
  CPB's requirement to see that recipients like the Public Broadcasting 
Service and National Public Radio uphold the objectivity and balance 
standard does not stem from congressional micro-management or partisan 
interference. Rather, it is a matter of complying with the law under 
which CPB dispenses taxpayers' money.
  That law mandates CPB to see to both ``maximum freedom of the public 
telecommunications entities'' and their ``strict adherence to 
objectivity and balance.'' These mandates are not in conflict. Instead, 
they complement each other, and to maintain Americans' confidence in 
public broadcasting the Corporation for Public Broadcasting must see 
that both mandates are fulfilled. Congress and the taxpayers expect 
nothing less.

                          ____________________




                          GUANTANAMO PRISONERS

  Mr. BINGAMAN. Mr. President, I rise today to express my strong 
disagreement with the language in the Defense appropriations and 
Defense authorization conference reports concerning the treatment of 
prisoners being held in Guantanamo Bay, Cuba.
  Under the McCain amendment, U.S. personnel are prohibited from 
engaging in torture or cruel, inhuman, or degrading treatment. I 
strongly support this. This ban applies to all military and 
intelligence personnel regardless of where they are located throughout 
the world. This is a clear statement that the United States will abide 
by its obligation to follow the law, and it is a step forward in 
reinstating our Nation's moral authority.
  However, the Graham amendment would undercut much of what we are 
accomplishing with the McCain amendment in two respects. First, it 
would undercut our commitment to prohibiting the use of torture by 
allowing evidence produced as a result of torture to be used in 
military legal proceedings. Second, it would undercut any enforcement 
of this prohibition by barring individuals from seeking judicial review 
of the legality of their detention or bringing a suit to stop unlawful 
treatment.
  When the Graham-Levin compromise passed the Senate, it had some good 
language in it, and it had some very troubling language.
  On the good side, the amendment provided that the Combatant Status 
Review Tribunals at Guantanamo, which are charged with determining 
whether individuals should be classified as so called enemy combatants, 
are not allowed to use evidence that is derived through ``undue 
coercion,'' such as torture. This was an important step forward. We 
should not be relying on information that is inherently unreliable in 
deciding whether to indefinitely detain a person. Unfortunately, this 
provision is now gone.
  In the conference report the outright prohibition on using evidence 
derived through torture was replaced with a mere assessment of whether 
the evidence has been derived through coercive means, such as torture, 
and whether the evidence has any probative value. I would hope that a 
military tribunal assessing such evidence would realize that evidence 
derived through torture is not reliable. However, as drafted, this bill 
would allow a Combatant Status Review Tribunal to use evidence derived 
through torture if the tribunal finds that the evidence is helpful.
  To the best of my knowledge this would be the first time in U.S. 
history that the United States would be on record as allowing this type 
of evidence in any type of legal proceeding. This is wrong and a huge 
step backwards.
  Furthermore, from a practical standpoint the assessment with regard 
to whether the evidence is derived though torture is essentially 
pointless. The conference report states that this assessment is only 
applicable prospectively. The problem is that of the over 500 prisoners 
being held at Guantanamo, every single one has already undergone a 
status hearing to determine whether or not they are an ``enemy 
combatant.'' Under the existing procedures, there is no exclusionary 
rule prohibiting the use of evidence derived through torture. 
Therefore, the Government may be basing its finding that some of these 
prisoners are ``enemy combatants'' on faulty evidence that is 
completely unreliable.
  Let me provide an example of why this language is so problematic. 
Suppose a person is detained by the U.S. Government and handed over to 
a foreign intelligence service for interrogation. While U.S. personnel 
are prohibited from using interrogation techniques that amount to 
torture or cruel, inhuman, or degrading treatment, other countries use 
interrogation techniques, such as electric shock or pulling off a 
person's fingernails, which do not comply with this standard. If a 
person is tortured while in the custody of one of these intelligence 
services, any statements that the person makes, either incriminating 
himself or another person, could be admissible in the Combatant Status 
Tribunal Review, or CSRT, process. Frankly, I, and most people, would 
confess to nearly anything to avoid the harshest forms of torture. We 
should not be permitting the use of this type of evidence in any legal 
proceeding.
  It is inconsistent to say that we will prohibit the use of torture by 
our military and intelligence personnel because it is legally and 
morally repugnant, but we will allow evidence derived in this manner to 
be used in our military proceedings. ``We don't do it, but if you do it 
we will use it,'' is hardly a position of clarity with regard to our 
commitment to uphold the prohibition on torture, or cruel, inhuman, or 
degrading treatment.
  The conference report also limits the ability of a prisoner at 
Guantanamo to file a writ of habeas corpus. This fundamental right has 
its foundation in the Magna Carta and is enshrined in our Constitution. 
Simply, it is the right to go to court when a person is detained by the 
Government and ask whether or not one's detention is justified. 
Contrary to how this right was characterized during debate on this 
bill, this is not about prisoners suing to get access to DVD movies or 
because they are unhappy with the type of peanut butter that they are 
being served--the Great Writ, as habeas is known, is meant to provide a 
basic check in preventing the Executive Branch from exercising 
unfettered authority in imprisoning individuals without judicial 
review.
  The fact is that mistakes happen. For example, take the recent case 
of the innocent German citizen who was picked up by the CIA in 
Macedonia and flown to a prison in Afghanistan where he was held in a 
secret facility for over 5 months because he was thought to be involved 
in terrorism--he wasn't. We made a mistake. Judicial review is 
important in reducing the likelihood that we are wrongfully imprisoning 
people, and we should have a viable process for weeding out these 
mistakes.
  According to news reports, commanders in Guantanamo have estimated 
that 70 percent of the individuals imprisoned there may be no threat at 
all. Whether this number is correct or not, it is reasonable to require 
that there be some meaningful judicial review in place to make sure 
that we are not indefinitely imprisoning people who pose no threat. If 
you are going to hold someone indefinitely for years on end without 
affording them a trial, I think it is fair to allow a person to 
challenge the basic legality of their detention.
  The Graham amendment, as it passed the Senate, restricted habeas 
corpus.
  Unfortunately, the conference report goes much further. It also 
prohibits a prisoner from bringing ``any other action'' against the 
Government regarding ``any aspect'' of their detention. This is an 
excessively broad restriction. It seems to eliminate all other causes 
of action, including the ability of a person to bring a suit to stop 
ongoing torture. This significantly undermines the McCain amendment. 
Ultimately, I have confidence that a court

[[Page 30800]]

will hold that this provision is overly broad and unconstitutional.
  In addition, it is also important to note what the conference report 
does not do. The language contained in the conference report limits 
access to U.S. courts. But the conference report does not provide an 
exception for people who have been found not to be a threat and have 
been determined to be ``non-enemy combatants.''
  Recently, the Washington Post has done a series of articles 
highlighting the plight of the ethnic Uighurs, who are Chinese Muslims 
opposed to the Communist government in China and who are seeking their 
own homeland in northwestern China. Mr. President, I ask unanimous 
consent that these Washington Post articles be inserted into the Record 
at the end of my statement.
  The Department of Defense has been holding a group of Uighurs in 
Guantanamo for the last 4 years. CSRT hearings have been held for these 
individuals, and the Department of Defense has determined that they are 
``non-enemy combatants.'' They are not a threat to our country and are 
not part of the al Qaida terrorist organization. The problem is that 
despite the finding that they are not ``enemy combatants,'' the Defense 
Department has refused to release them from Guantanamo because it can't 
find a country to take them--if they are sent to China they will likely 
be arrested and tortured, and countries such as Saudi Arabia, where 
many have lived previously, won't take them back. And the United States 
will not allow them to enter our country because it does not want them 
to apply for asylum.
  In essence, we are taking away the right of a person who is being 
held without charge, indefinitely, to go to court and ask for their 
release after the Department of Defense has said that they are 
essentially innocent. Not only is this repugnant to our Nation's 
values, it is also blatantly unconstitutional.
  Mr. President, over the last several years this administration has 
diminished our standing in the world by backing away from our 
longstanding commitment to human rights and the rule of law. I look 
forward to the day when the United States is once again viewed as a 
leader in this regard.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

               [From the Washington Post, Dec. 15, 2005]

         Detainee Cleared for Release is in Limbo at Guantanamo

                    (By Josh White and Robin Wright)

       When U.S. forces freed Saddiq Ahmad Turkistani from a 
     Taliban prison in Kandahar, Afghanistan, in late 2001, the 
     detainee met with reporters at a news conference and told 
     U.S. officials that he had been wrongly imprisoned for 
     allegedly plotting to kill Osama bin Laden.
       An ethnic Uighur who was born and raised in Saudi Arabia, 
     Turkistani said he believed in the U.S. campaign against 
     terrorism. He professed hatred for al Qaeda and the Taliban--
     groups he said tortured him in prison--and offered to help 
     the United States. Intelligence officials and U.N. 
     representatives told Turkistani they would seek to find him 
     refuge, possibly in Pakistan, according to accounts he later 
     gave his lawyers.
       Instead, Turkistani was taken to a U.S. military base in 
     Afghanistan, where he was stripped, bound and thrown behind 
     bars. U.S. officials then strapped him into an airplane, 
     fitted him with dark goggles and sent him to the U.S. 
     detention facility at Guantanamo Bay, Cuba, in January 2002, 
     according to U.S. lawyers who represent him.
       Nearly four years later, Turkistani remains there, despite 
     being cleared for release early this year after a government 
     review concluded he is ``no longer an enemy combatant.'' It 
     is unclear exactly when that determination was made, but 
     Justice Department lawyers gave notice of it in an Oct. 11 
     court filing.
       Turkistani wrote a letter to his lawyers in recent months, 
     in which he asked about the welfare of his family, whom he 
     has not heard from in eight years: ``Now, I have been under 
     the control of the Americans for the past three years and 
     eight months. Six months ago, I was told by the Americans 
     that I am innocent and I am not an enemy combatant.''
       It remains a mystery why Turkistani was sent to Guantanamo 
     Bay at all. Some officials and his lawyers speculate that he 
     has been held by mistake. Or, they say, some officials may 
     have believed he had intelligence value because bin Laden 
     accused him of trying to plot his killing in 1998. U.S. 
     officials have offered no public explanation.
       Like a group of five Chinese Uighurs (pronounced wee-gurs), 
     Turkistani remains incarcerated because the United States 
     simply does not know what to do with him. He does not have 
     Saudi citizenship, and U.S. officials are having trouble 
     getting his home country to take him back. U.S. officials do 
     not want to send him to China, where Uighurs are seeking a 
     separate homeland, saying he is likely to be tortured.
       But unlike many detainees at Guantanamo Bay, Turkistani was 
     not captured on the battlefield, nor was he a suspected 
     terrorist. Instead, he was swept up in the confusion that 
     marked the early days of the U.S. war in Afghanistan, and 
     even as a potential ally found himself with no recourse to 
     challenge his detention.
       ``The crowning irony is that he is an enemy of bin Laden, 
     who was charged with conspiring to kill him, and we hold him 
     prisoner today,'' said Sabin Willett, a lawyer who has filed 
     a petition with the U.S. District Court in Washington on 
     Turkistani's behalf. ``It's heartbreaking that we throw 
     people into jail to rot.''
       Turkistani is one of nine detainees who live at Guantanamo 
     Bay's Camp Iguana, a less restrictive area of the prison 
     where detainees have limited privileges including access to 
     television and a few DVDs. Besides five Chinese Uighurs who 
     have not been accepted by any country, there is a Russian, an 
     Algerian and an Egyptian. All have been cleared for release 
     but have not been given their freedom.
       A former U.S. official familiar with detention operations 
     said mistakes were made in Afghanistan, when some detainees 
     were shipped to Cuba because space at the U.S. facility in 
     Bagram was limited and there was no clear plan on where to 
     house suspected enemy combatants.
       ``It's possible to get stuck there if you don't have a 
     state,'' the former official said. ``Particularly at that 
     time, when there were a lot of people getting picked up in 
     Afghanistan, cases people were unsure about tended to end up 
     in Cuba. People did get caught up in the situation.''
       Another U.S. official familiar with Guantanamo Bay said it 
     is likely that other ``stateless'' people will surface as the 
     military prepares to release more detainees.
       The Defense and State departments are working to return 
     such people to their home countries, if possible, and have 
     unsuccessfully tried to persuade at least 20 nations to take 
     in the Uighurs--including Sweden, Finland, Switzerland and 
     Turkey.
       ``The government is serious about finding a place for 
     resettlement for the Uighurs and will continue diplomatic 
     efforts to accomplish that goal,'' said Lt. Col. Mark 
     Ballesteros, a Pentagon spokesman. ``The United States has 
     made it clear that it does not expel, return or extradite 
     individuals to other countries where it believes it is more 
     likely than not they will be tortured.''
       Turkistani is one of more than 200 Guantanamo Bay detainees 
     who have filed habeas corpus petitions in U.S. District Court 
     in Washington, arguing that they are being held unlawfully 
     and asking the court to order their release.
       Turkistani told his lawyers that he was deported to 
     Afghanistan from Saudi Arabia sometime in 1997, after he was 
     jailed for alleged possession of hashish. Turkistani said he 
     was given fake Afghan identification and put on a plane from 
     Jeddah to Kabul because the Saudi government did not 
     recognize him as a citizen. He said that Afghan officials 
     detained him for six days before releasing him.
       He said he made his way to Khost, Afghanistan, and 
     befriended an Iraqi man. Before long, he and his friend were 
     arrested by four Arab al Qaeda members. Turkistani said he 
     was accused of being a Saudi spy, interrogated and tortured.
       Fearing for his life, after 20 days of severe beatings and 
     sleep deprivation, Turkistani said he ultimately gave what he 
     called a ``lengthy story'' about how the Saudis had sent him 
     there to kill bin Laden. He was turned over to the Taliban 
     and held in Kandahar for more than four years.
       Susan Baker Manning, another lawyer representing Turkistani 
     who met with him last month, said he denies allegations that 
     he tried to kill bin Laden and confessed only under torture. 
     Bin Laden, however, asserted in a statement in December 1998 
     that Turkistani and two accomplices had been hired by Saudi 
     Arabian officials to kill him and failed.
       Foreign news reports have indicated that the attack, 
     allegedly by poison, caused bin Laden's kidneys to fail and 
     netted Turkistani and his alleged accomplices hundreds of 
     thousands of dollars.
       Manning said that the government has been challenging 
     lawyers' efforts to represent Turkistani, and that he has 
     become intensely frustrated by his lengthy confinement.
       ``It's entirely possible that it's just a mistake,'' 
     Manning said. ``The enemy took away his life for 4\1/2\ 
     years, and we reward him for that by taking away his life for 
     another four years. He clearly opposed al Qaeda and the 
     Taliban, and he still feels that way. He's not a huge fan of 
     the U.S. anymore.''

[[Page 30801]]

     
                                  ____
               [From the Washington Post, Dec. 13, 2005]

               Court May Hear Chinese (Uighur) Detainees

                            (By Josh White)

       A federal judge in Washington said yesterday that he will 
     consider allowing two detainees in the military prison at 
     Guantanamo Bay, Cuba, to appear before him in court to 
     challenge their confinement, telling lawyers that the ethnic 
     Uighurs who have been cleared for release have been held too 
     long.
       U.S. District Judge James Robertson said he believes the 
     case of the Uighurs (pronounced wee-gurs ) presents ``a 
     genuine dilemma'' because the government has determined they 
     are not enemy combatants but has not found a country to 
     accept them. U.S. officials are not willing to send the 
     Uighurs--Muslims who are seeking their own homeland on what 
     is now part of northwestern China--to their native country 
     for fear that they would be tortured or killed.
       U.S. authorities have tried to persuade nearly two dozen 
     nations to provide refuge for the Uighurs but have refused to 
     allow them into the United States.
       No Guantanamo Bay detainee has been allowed to travel to 
     the United States and appear before a federal judge. The 
     government has fought efforts at judicial review after a 2004 
     Supreme Court ruling entitling detainees to a ``competent 
     tribunal'' to determine whether they are enemy combatants. 
     The issue is currently before the appellate court for the 
     District of Columbia Circuit.
       Government lawyers are concerned that such a move could 
     allow the Uighurs to immediately apply for asylum when they 
     arrive on U.S. soil.
       But Sabin Willett, an attorney for the detainees, said his 
     clients are essentially on U.S. soil already and asked the 
     judge to consider granting them a provisional ``parole'' that 
     would allow them to live with ethnic Uighurs in the 
     Washington area while their cases are considered.
       Robertson, who in August sought more time to consider the 
     cases, said yesterday that he is frustrated by the 
     government's inability to move forward, essentially stranding 
     five Uighurs who have been housed in a part of the detention 
     facility known as Camp Iguana, which is less restrictive than 
     the rest of the prison. The five Uighurs are living with four 
     others at the camp as they await a country to accept them.
       The Uighur detainees have been held, without charges, for 
     more than four years since their arrests in the Middle East.
       The judge said he had three options: deny the detainees' 
     motion and allow the case to go to an appellate court; order 
     them to appear before him for a hearing on their immediate 
     release; or order the government to release them outright 
     ``and see what happens, see how the government responds.''
       ``As far as I can tell, nothing is happening,'' Robertson 
     said, adding that he doesn't believe diplomatic progress has 
     been made. ``The time has stretched out to the point where 
     indefinite is not an inappropriate word to describe what is 
     happening.''
       Terry Henry, a Justice Department lawyer, said that 
     government officials have been working on a diplomatic 
     solution but that he could discuss it only in private. 
     Robertson declined to hear the information off the record.
       ``The government is serious about finding a place for 
     resettlement for the petitioners,'' Henry said.
       The Uighurs, through their lawyers, have argued that 
     because they are not a threat they should be moved to more 
     hospitable living conditions and have asked to be released to 
     live in the Washington area. Willett said his clients have 
     gone from elation in August--when they were moved to Camp 
     Iguana and given hope of release--to frustration as their 
     cases have dragged on.
       ``I am deeply concerned about the human impact of the 
     indefinite nature of this,'' Willett said.
       Rabiya Kadeer, president of the Washington-based 
     International Uyghur Human Rights and Democracy Foundation, 
     attended the brief hearing yesterday and pledged to provide 
     homes and jobs for the Uighurs should they be released to the 
     United States.

                          ____________________




            HONORING WINTER WONDERLAND WALK FOR THE CURE DAY

  Mr. LIEBERMAN. Mr. President, breast cancer is one of the most 
frequently diagnosed cancers in women. More than 211,240 new cases of 
breast cancer in women will be diagnosed in the United States in 2005. 
In my own State of Connecticut, more than 2,600 women are expected to 
be diagnosed and 530 are expected to die from breast cancer this year. 
Overall, it is believed that 1 in every 10 women will develop breast 
cancer at least once in their lifetime.
  The best defense against breast cancer, is early detection. The 
sooner one can detect breast cancer, the better the chances that the 
disease can be successfully treated. It is because of this that the 
American Cancer Society suggests that all women age 40 and over have a 
mammogram annually. As important, women must learn to do regular self 
breast exams.
  Women generally will understand their bodies better than doctors. In 
Connecticut, early detection from mammograms and self breast exam has 
helped our State achieve a 5-year survival rate, for those women 
diagnosed with breast cancer, of 97 percent. That is one of the highest 
such survival rates in the country.
  As successful as my State has been, we have not been successful 
enough. We must strive to increase awareness and education of breast 
cancer so that all women are aware of the risk it poses and the 
indisputable benefits of early detection. We must increase research 
into the relationship between environmental exposures, genetic 
predisposition, and breast cancer risk and also seek new drugs and 
tools that will allow health care professionals to better treat breast 
cancer patients with the goal of cure.
  It is in this spirit on January 21, 2006, Eastern Mountain Sports 
Connecticut stores will sponsor the Winter Wonderland Walk for the Cure 
to benefit both breast cancer research and the Connecticut chapter of 
the Susan G. Women Breast Cancer Foundation, at Tarrywile Park in 
Danbury, CT.
  Therefore, it is my pleasure to join Connecticut's Governor, M. Jodi 
Rell, herself a breast cancer survivor, in celebrating, in recognition 
of the need to increase awareness about breast cancer and the need for 
early detection, January 21, 2006 as Winter Wonderland Walk for the 
Cure Day in Danbury, CT.

                          ____________________




                  HUMAN RIGHTS VIOLATIONS IN ETHIOPIA

  Ms. CANTWELL. Mr. President, I rise to speak on the disturbing 
reports of political chaos in Ethiopia. With allegations of vote 
tampering and emerging pictures of large-scale human rights abuses 
taking place in Ethiopia, that the administration must impress upon 
Prime Minister Meles Zenawi and other global neighbors, that severe 
consequences follow actions which undermine democratic ideals.
  Ethiopia held its first ever democratic elections on May 15, 2005. 
Revelations since then of violence and mass detention of Ethiopian 
citizens by the Me1es government are not only alarming and 
disconcerting to me and the American people who have supported the 
country in its effort to advance the cause of democracy. It is 
regretful to have to witness a regress in democratization.
  Roughly 90 percent of Ethiopia's populace turned out for the 
democratic election. Rather than a sentiment of accomplishment or 
progress, the mood of the country remains nihilistically somber. 
According to international human rights observers, increased repression 
of the Ethiopian people is connected to the seeming loss of power from 
the ruling Meles government to the opposing party, the Coalition for 
Unity & Democracy, CUD--has shown by early vote counts during the 
election. With the Meles government accused of voting irregularities, 
it is not surprising that the people of Ethiopia protested the 
unofficial election results.
  Recent reports of human rights abuses in Ethiopia range from arrest 
and intimidation by government authorities and illegal arrests of 
innocent people, including ranking members of the CUD party and media 
representatives, to the loss of life. For example, some 14,000 people 
were detained when riots ensued following the election. Among other 
journalists, Getachew Simie, former editor of the Amharic-language 
weekly, and Leykun Dngeda, former publisher of the Dagim WonchifWeekly, 
have been given jail sentences for covering the anti-government 
protests. Even Prime Minister Meles reported that 48 people were killed 
last month in relation to the unrest caused by the alleged fraud in the 
May polls.
  Prime Minister Meles must fulfill his good faith commitment to human 
rights. With any successful transition to democracy, civil society 
requires

[[Page 30802]]

the firm accountability of its government authorities. Until the Meles 
government brings an end to the intimidation of its people, political 
unrest will remain high and America's support for the democratization 
of Ethiopia will be muted by concern for the country's political 
instability.

                          ____________________




            TRIBUTE TO SENATOR EUGENE McCARTHY OF MINNESOTA

  Mr. COLEMAN. Mr. President, Minnesota and the Nation have lost a 
great leader and deep thinker, Senator Gene McCarthy of Minnesota. He 
played an import part in the history of this body and of this Nation, 
and we should carefully consider the lessons of his unique and deeply 
significant public life.
  Gene McCarthy has been described as a philosopher who was a Senator. 
In his youth, many describe Gene as the brightest of scholars and later 
in his life; he was celebrated as skilled poet. In between, he was a 
five term Congressman and two-term Senator. His time in Washington and 
on the national political scene was a display of thoughtfulness, 
serious inquiry, and passionate pursuit of the truth. In the business 
of politics where there is safety in conformity, Gene McCarthy 
celebrated the role of the maverick. He says his role was to provoke 
thought and debate in our system and ensure we adhere more closely to 
lasting principles.
  Eugene Robert McCarthy was born in the town of Watkins, in rural 
Meeker County, MN, on March 29, 1916. He began a life time of1eing in 
the schools of Watkins. He graduated from St. John's University, 
Collegeville, MN, in 1935 with the highest GPA in the school's history. 
He also studied at the University of Minnesota in Minneapolis until 
1939. Professionally, he was a high school teacher in Minnesota and 
North Dakota for 5 years and eventually became a professor of economics 
and education at St. John's University from 1940 to 1943 an instructor 
in sociology and economics at St. Thomas College, St. Paul, MN, from 
1946 to 1949.
  In 1944, his service to the United States began during World War II, 
when he was a civilian technical assistant in the Military Intelligence 
Division of the War Department.
  He was first elected to the U.S. Congress as a Representative from 
Minnesota in 1948 and served five terms. In 1958, he won a seat in the 
Senate where he remained for two terms. One of the focuses of his 
Senate career was the work of the Senate Foreign Relations Committee, 
which has been a common interest of most of Minnesota's Senators and an 
indication of the strong international character of our State.
  I first became aware of Gene McCarthy in 1967 when I was campus 
organizer at Hofstra University. In a time of boiling-over passions, I 
remember being impressed with Gene McCarthy's thoughtfulness and 
seriousness. He was an unlikely leader for ``youth revolution,'' but he 
balanced our youthful over-exuberance with a steady articulation of 
principles and commitment. He encouraged young people to ``Get Clean 
with Gene:'' to stop ``tuning in, turning on and dropping out'' and to 
clean up our act and get involved in the political process. He knew 
that a movement based on self-indulgence was doomed to failure.
  Gene McCarthy's life predates the experience of contemporary American 
youth, but still has important lessons for them. First, political 
involvement should not rest on raw emotion. Instead, to sustain your 
position you need to ``do your homework,'' which could mean years of 
study.
  Second, you should not be intimidated by the generation in power. The 
great movements of history have been led and supported by young people, 
so the force of youthful enthusiasm should never be underestimated. 
Third, Gene McCarthy demonstrated that you earn the right to have your 
ideas taken seriously by engaging responsibly in the political process. 
He believed that the solution to all problems in a democracy is more 
democracy, which means participation, ideas, hard work and 
perseverance. His personal experience in 1968, even though it was 
politically unsuccessful, opened a door into the political process that 
can't be closed. Young people of all political persuasions should seize 
that opportunity and help shape the world in which they will grow old.
  In 1968, Gene McCarthy certainly seized opportunities. He announced 
that he was willing and available to be President in November of 1968 
and two months later stunned President Johnson, and the political world 
with a close second place finish in the New Hampshire primary. His 
success encouraged Robert Kennedy to enter the race and President 
Johnson withdrew shortly thereafter. McCarthy did not win the 
nomination, which went to fellow Minnesotan Hubert Humphrey, but he 
changed the dynamics of politics in America. He helped create the 
phenomenon of bringing young people into the process in large numbers 
to challenge the power of the ``smoke filled room.''
  When Gene McCarthy left the Senate, he returned to the place he 
always was most at home: the world of ideas and words. When you look at 
the list of the 15 books he published, it is remarkable to see that 
they are either challenging works of non-fiction policy analysis or 
poetry. As a poet, Gene McCarthy probably knew Samuel Johnson's 
statement that ``poetry is the art of uniting pleasure with truth.'' 
That sums up his life.
  Like a lot of Minnesotans, Eugene McCarthy took great pleasure not in 
the usual ways, but through service. He served as a teacher. He served 
as a scholar. He served as a public policy leader. He served as a 
motivator and organizer of youth. He served as a brave voice, 
challenging the powerful status quo. And he served as a poet, rendering 
great ideas into beautiful words.
  Gene McCarthy lived a bold and uncompromising life, which is the only 
kind of life that creates real change. He was always more interested in 
the truth than in people's opinion of him. He lived out Amelia 
Earhart's statement that ``Courage is price that life exacts for 
granting peace.'' His life was about living out the courage of his 
convictions and that was his peace. He changed a nation by choosing 
that tough road instead of a life of compliance.
  We are grateful for his service and memory, and we should all be 
inspired to take up his courage of conviction for the new chapters of 
American challenge and progress ahead.

                          ____________________




                EXTEND RELOCATION EXPENSES TEST PROGRAMS

  Ms. COLLINS. Mr. President, on Tuesday, December 20, I introduced a 
simple but important bill that would allow an existing General Services 
Administration, GSA, program for streamlined Government employee 
relocations to continue for an additional 4 years. Under a pilot 
program enacted in 1998, government agencies including GSA, Customs and 
Border Protection, and the Department of Defense have been able to 
relocate staff in a more economical manner than what can be done under 
the existing Federal relocation regulations. This innovative and cost 
saving test program, known as the Voluntary Relocation Program, 
provides Government agencies additional flexibility to relocate 
personnel to meet mission critical staffing needs and, according to 
Customs and Border Protection, has resulted in a cost savings of nearly 
$25 million in their organization alone.
  I am very pleased that Senators Lieberman and Akaka have joined me in 
cosponsoring this legislation.
  The Department of Homeland Security began using the Voluntary 
Relocation Program to relocate hundreds of Border Patrol agents to 
critical U.S. border locations after the terrorist attacks of September 
11, 2001. As part of its new mission to protect national borders from 
security threats, agents from the Office of Border Patrol, OBP, eagerly 
volunteered to transfer to border locations deemed most vulnerable. 
However, these transfers took a long time to process and were very 
costly under the Federal travel regulations, FTR.

[[Page 30803]]

  According to Customs and Border Protection, CBP, relocation of 
personnel under the Federal travel regulations typically cost the 
Federal Government an average of $72,000 per Border Patrol agent move. 
Understandably, the agency's ability to relocate significant numbers of 
Border Patrol agents was limited, so customs and border protection, 
CBP, sought alternative funding sources.
  Under this voluntary program, employees receive a lump-sum payment to 
cover relocation costs, rather than submitting expense reports 
supported by receipts. Transferees that choose to relocate to a new 
duty station under the Voluntary Relocation Program manage the details 
of their own move and are fully responsible for determining how to 
spend the pre-determined lump-sum payment allocated by the Federal 
Government. Furthermore, employees enjoy greater input in how funds are 
allocated and transferees have more control over the logistics of their 
move. To date, the VRP has saved customs and border protection more 
than $23,500,000 in Border Patrol agent relocation costs.
  This Voluntary Relocation Program has provided both the government 
and its employees with both reduced administrative burdens and 
increased responsiveness to employees and the organization's mission.
  From April 2004 through September 2005, CBP processed 435 relocations 
at an average cost of $16,888 per move. Interim reports published by 
customs and border protection on the VRP indicate that participating 
employees are satisfied with the program and are interested in its 
continuation. It is anticipated that if the VRP program is extended, 
``several hundred'' CBP agents will seek to take advantage of the VRP 
for career ladder promotions within the first year of it being offered. 
Based upon the promise of the program's early results, the continuation 
of the VRP test program would benefit national security needs and the 
agency's mission.
  I believe that the VRP is an excellent example of how Government can 
work better and more cost effectively to best serve the interests of 
the public and government employees. This legislation would allow 
Federal agencies to provide an additional relocation incentive that 
would assist them in the accomplishment of their mission. I urge my 
colleagues to join me, Senator Lieberman and Senator Akaka in support 
of this legislation.

                          ____________________




                 HEALTH AND WELFARE RELIEF ACT OF 2005

  Mr. BAUCUS. I support the Health and Welfare Relief Act of 2005. This 
bill will provide funding for important initiatives that take effect in 
January 2006, just a few days from now.
  This morning the Senate passed, by the slimmest of margins, S. 1932, 
legislation to cut about $40 billion from mandatory spending programs 
over the next 5 years. I did not support S. 1932 because I believe it 
contains bad policy on Medicaid, on welfare, and on child support 
enforcement, among other things.
  For example, S. 1932 includes $5 billion in cuts to the child support 
enforcement program, which will mean that an estimated $19.6 million in 
child support funds will go uncollected in Montana over the next 10 
years. That is money that should go to needy Montana kids.
  As for Medicaid, S. 1932 contains almost $2 billion in increased 
copays for Medicaid beneficiaries, as well as other Medicaid cuts. 
There are right ways to cut health care costs, through greater 
efficiencies that will save more money over time, and there is a wrong 
way to cut costs: on the backs of the Americans who can least afford to 
pay more for their health care. S. 1932 goes the wrong way and ignores 
the Senate's strong instruction to protect Medicaid beneficiaries from 
deep spending cuts. Last week 75 Senators supported a motion I offered 
in the Senate instructing budget conferees not to come back with a bill 
that included higher Medicaid copays and benefit cuts. Passage of S. 
1932 is inconsistent with that vote.
  S. 1932 is bad news for the welfare program as well. Despite a Senate 
vote of 64 to 27 in support of removing TANF from S. 1932, the bill 
that the Senate passed today does just that: it reauthorizes TANF 
through the budget reconciliation process, with a punitive and 
unnecessarily austere set of provisions. The TANF Program, originally 
passed in 1996, has successfully reduced welfare caseloads and focused 
on moving parents from welfare to work. Changes to the TANF Program 
should build on the success of 1996 reforms, not reverse that success, 
as S. 1932 will ultimately do.
  Unfortunately, S. 1932 takes something that is not broken--and fixes 
it. For example, S. 1932 would raise work requirements without 
providing the funding needed to help States get people working. In 
fact, while S. 1932 includes $1 billion in additional funding for 
childcare, that is $7.4 billion short of what the Congressional Budget 
Office estimates to be the cost to States of meeting the TANF work 
requirements under this bill.
  The Health and Welfare Relief Act would extend TANF for an additional 
year, maintaining current policy on this important program. The Health 
and Welfare Relief Act would also extend transitional medical 
assistance, TMA, for an additional year, a program that is critical for 
helping families make the transition from welfare to work.
  The Health and Welfare Relief Act also contains a fix to the Medicare 
physician payment formula, which is set to cut Medicare physician 
payments by 4.4 percent on January 1. It prevents a cap on Medicare 
physical therapy from taking effect. And it extends an important 
provision for small rural hospitals' outpatient departments, helping 
them stay afloat. The bill also provides $60 million for CMS 
administrative funding, which should be spent to help educate seniors 
about the new Medicare drug benefit. And it contains $80 million for 
important legislation that I have sponsored related to high-risk pools, 
which are often the insurer of last resort.
  Finally, the Health and Welfare Relief Act includes important 
legislation providing relief to individuals and States harmed by 
Hurricane Katrina. Like the Lincoln amendment voted on in the Senate 
November 3, this bill contains provisions to: provide temporary 
Medicaid relief to Katrina survivors; help States struggling to meet 
health care costs incurred as a result of Katrina; and assist providers 
dealing with Katrina-related uncompensated care costs.
  I support the minority leader's efforts to pass these timely and 
critical provisions through the Health and Welfare Relief Act of 2005. 
While I do not support S. 1932, we should take the positive elements of 
that bill--as well as important provisions to aid Katrina victims--and 
pass them today.

                          ____________________




             NATIVE HAWAIIAN GOVERNMENT REORGANIZATION ACT

  Mr. INOUYE. Mr. President, I rise to seek clarification from our 
esteemed majority leader, Senator Frist, on the scheduling of S. 147, 
the Native Hawaiian Government Reorganization Act, for consideration of 
the full Senate.
  As you may recall, in December of last year, the majority and 
minority leaders joined us in reaching agreement on a schedule for the 
Senate's action on the Native Hawaiian Government Reorganization Act 
bill with Senators Domenici and Kyl. Specifically, in an exchange of 
correspondence that was made part of the Congressional Record for the 
108th session of the Congress, the leaders agreed that S. 147 would be 
brought before the Senate on or before August 7, 2005.
  Mr. AKAKA. Mr. President, we commend our majority leader for his 
diligent efforts to secure the agreement of other Senators so that the 
Senate could proceed to consideration of this measure that is so 
important to the citizens of Hawaii. I know that Senator Inouye joins 
me in expressing our deep appreciation for our leader's action in 
laying down a cloture petition prior to the August recess when 
unanimous consent could not be achieved.

[[Page 30804]]

  However, when the Senate reconvened in September, the tragic 
devastation of Hurricane Katrina clearly demanded the Congress's 
immediate action, and thus, Senator Inouye and I agreed to the proposal 
of the minority and the majority leader, that the cloture petition be 
vitiated.
  As we now approach the end of the first session of the 109th 
Congress--with pressing matters requiring the Nation's attention once 
again moving the Senate's consideration of S. 147 to the sidelines--we 
seek the guidance of the majority leader as to when our Leader 
anticipates that this measure may be brought before the Senate.
  Mr. FRIST. Mr. President, I thank the Senators from Hawaii for their 
review of our actions and intent in securing the Senate's action on S. 
147. In addition to our two Senators from Hawaii, the Governor of 
Hawaii has consistently sought our action on this bill, and I am fully 
committed to assuring that the measure is brought before the Senate 
early in the next session of the Congress.
  Mr. President, because a few of our colleagues are apparently not 
inclined to allow the bill to be considered under unanimous consent, it 
may be necessary to once again file a cloture petition to enable the 
measure to be given the Senate's full consideration. I want to assure 
my colleagues from Hawaii that the commitment I made in December of 
last year remains firm, and that I will work with them to take the 
appropriate steps to assure Senate action on S. 147 early in the second 
session of the 109th Congress.
  Mr. AKAKA. Mr. President, I thank the majority leader for his 
clarification and his commitment. We look forward to working with both 
leaders to bring S. 147 to the Senate floor at the earliest possible 
time in the second session of the 109th Congress.

                          ____________________




                   ON THE PASSING OF EUGENE McCARTHY

  Mr. OBAMA. Mr. President, I rise today to honor the memory of Senator 
Eugene McCarthy, who passed away earlier this month.
  I did not have the pleasure of knowing him. But I know how powerful 
and stirring he was--a man who was not afraid to speak the truth. A man 
who, in 1968, had already resided in the corridors of power for nearly 
20 years, but had not been corrupted by them.
  Accomplished and beloved by his constituents, Senator McCarthy could 
have rested on his laurels and kept his views to himself; he could have 
toed the line in the name of unity and loyalty to the president.
  But that was not in Senator McCarthy's character. There is something 
about Minnesota that produces people and politicians who care more 
about what is right than about being liked. In this tradition, he was a 
clarion voice of courage and conviction.
  Senator McCarthy retired after 22 years of service in Congress, but 
he never abandoned his beliefs or moderated his tone. He was not 
interested in conforming to society's expectations for an elder 
statesman. Nor was he afraid to turn his wit against his adversaries 
when discussing their policies with which he disagreed.
  While he took more than his share of criticism, he stuck to his 
principles and gave as good as he got. The Senate is better because 
Eugene McCarthy served here, and the country is as well. He will be 
missed.

                          ____________________




                         ADDITIONAL STATEMENTS

                                 ______
                                 

          CONGRATULATING HAWAII'S NATIONAL FOOTBALL CHAMPIONS

 Mr. AKAKA. Mr. President, I rise to congratulate our national 
championship football team from Hawaii, the Lihue Patriots Pee Wee 
team, which won the Pop Warner Division II National Championship in 
Orlando, FL, on December 9, 2005. The Patriots are the first from 
Hawaii to win a Pop Warner national title.
  The Patriots won the right to compete for the national championship 
by beating the undefeated East Tampa Bandits, 14 to 6, in a thrilling 
come from behind victory. In the championship game, the Patriots shut 
out the Hollister Vikings from San Jose, CA, 14 to 0, earning the 
Tomlin Championship trophy for the Pop Warner Division II Pee Wee 
bracket for 9- to 11-year-olds.
  The Lihue Patriots Pee Wee team members are: Darren Acoba, Taran 
Tani, Bron Dela Cruz, Kekoa Agustin, Kevin Reyes, Kalen Kimura, Henry 
Rodrigues, Jonathan Butac, Travis Koga, Austin Furumoto, Isaac 
Ramboyon, John Das, Rolland Fukushima-Peahu, Austin Oshiro, Erin Doi, 
Dustin Ferreira-Kashima, Shane Iwata, Shawn Taguas, Trey Smith, Wailea 
Kerr, Micah Hanano, and Isaiah Prunty. The team is coached by Mario 
Longboy, Bradley Hiranaka, Eugenio Nacnac, Craig Koga, Ralph Suniga, 
and Layton Tani. The Patriots are also supported by managers Tyler 
Manibog, Christie Kashima, and Johnny Pongasi and team moms Lori Koga 
and Jolly Iwata.
  I congratulate the Lihue Patriots on their history making victory, 
and I wish all of them the best in their future endeavors, in life and 
on the playing field. And I extend the same congratulations to all 
players and coaches who participated in this year's Pop Warner National 
Football Championships on a job well done.

                          ____________________




                   IN MEMORY OF PRESTON ROBERT TISCH

 Mr. LAUTENBERG. Mr. President, I rise to pay my respects to 
someone I knew very well, Preston Robert Tisch, who passed away last 
month of brain cancer. He was a distinguished American who, along with 
his brother, Laurence, built a giant financial enterprise. Bob was 
eminently successful at everything he did, particularly in his role as 
a husband, father and grandfather.
  I, like all who had contact with Bob Tisch, treasure my times with 
him. I send my deepest condolences to his wife and family.
  I ask unanimous consent to have printed in the Record a statement 
released by the New York Giants organization that so perfectly 
describes the life and accomplishments of Bob Tisch.
  He will be long remembered by all who knew him.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                          (November 15, 2005)

                    Preston Robert Tisch (1926-2005)

       Preston Robert ``Bob'' Tisch, the Giants' Chairman and Co-
     Chief Executive Officer, one of the nation's most respected 
     and successful businessmen, a former United States Postmaster 
     General, and an extremely generous philanthropist, died 
     Tuesday night.
       Tisch passed away from inoperable brain cancer, which was 
     first diagnosed in the summer of 2004. He was 79. His death 
     comes just three weeks after the passing of his fellow owner, 
     Wellington Mara, who died of cancer on Oct. 25 at the age of 
     89.
       Tisch realized a longtime dream in 1991 when he completed 
     negotiations with Wellington Mara's nephew, Tim Mara, and his 
     family and paid $75 million for a 50 percent interest in the 
     Giants.
       ``I was very fortunate,'' Tisch said in a 2002 interview. 
     ``I got a call from (former Cleveland and Baltimore owner) 
     Art Modell telling me that Tim Mara wanted to sell his half 
     of the team and asking me if I would be interested in 
     purchasing it. I met with Wellington Mara and John Mara and 
     said I'd be very interested. There were no problems with 
     them, and then I bought my share of the team from Tim Mara. 
     It's been a great relationship and a great boon to me. I'm 
     very happy to be the 50 percent owner of the New York 
     Giants.''
       Tisch played an active role in the organization. As a 
     member of the National Football League's Finance and Super 
     Bowl Policy Committees, he attained a prominence in the 
     sports arena equal to his position in the world of business.
       Owning the Giants was one of many careers Tisch pursued 
     simultaneously. Forbes magazine ranks him 56th on its list of 
     the country's 400 wealthiest people and estimates his net 
     worth to be about $3.9 billion.
       He was the Chairman and Director of the Loews Corporation, 
     one of the country's most successful financial companies. The 
     company, with a 2004 net income of $1.2 billion and assets 
     exceeding $74 billion, owns and operates 91 percent of CNA 
     Financial Corporation; 100 percent of Lorillard; 100 percent 
     of Boardwalk Pipelines, which consists of Texas Gas 
     Transmission and Gulf South Pipelines; 52 percent of Diamond 
     Offshore Drilling; 100 percent of Loews Hotels and 100 
     percent of Bulova.
       Tisch served as Postmaster General of the United States 
     from Aug. 1986 until returning to New York in March 1988. 
     Prior to his appointment as Postmaster, he served as 
     President and Chief Operating Officer of Loews

[[Page 30805]]

     Corporation and its corporate predecessor, Loews Theaters, 
     Inc., a position held from 1960 until his appointment as Co-
     Chairman and CoCEO.
       Tisch also served as Chairman of the New York Convention & 
     Visitors Bureau for 19 years and currently serves as the 
     Bureau's (now called NYC & Co.) Chairman Emeritus. He was 
     also founding Chairman of the New York City Convention and 
     Exhibition Center Corporation and Chairman of the Citizens 
     Committee for the Democratic National Conventions held in New 
     York City in 1976 and 1980.
       In May 1990, Mayor David Dinkins appointed Tisch as New 
     York City's Ambassador to Washington, D.C. Through 1993, he 
     served as a liaison between the City of New York and his 
     friends and colleagues in both the national government in 
     Washington, D.C. and the business community in New York City.
       From 1990-1993, Tisch served as Chairman of the New York 
     City Partnership, Inc. and the New York Chamber of Commerce 
     and Industry, where he was instrumental in developing a 
     campaign to enhance New York's position as an international 
     business center. After completing his stint as chairman, 
     Tisch remained on the Board of Directors of both 
     organizations, now merged.
       Tisch was also a Trustee of New York University.
       The Giants, however, were truly a labor of love for Tisch, 
     a lifelong sports fan. He attended every Giants game, home 
     and away, and spent as much time working in his stadium 
     office as possible. His two sons are now important members of 
     the organization: Steven as executive vice president and Jon 
     as treasurer.
       The process of going from fan to owner took at least three 
     decades for Tisch.
       ``I came to New York in 1960, and a couple of propitious 
     things happened,'' he said. ``Our company owned a radio 
     station at that time, WHN. During the 1950s they broadcast 
     Giants games. The president of the radio station had ten 50-
     yard-line tickets at Yankee Stadium. When we sold the radio 
     station he decided he wanted to stay with us, so he came over 
     to Loews Theaters to become the controller. So for about 
     seven or eight years, I had the use of these tickets.
       ``Also, when we came to New York we moved to Scarsdale, and 
     I got to know Allie Sherman, who was then coach of the 
     Giants. Actually, Allie's son Randy and my son Jon were born 
     one day apart. So we got to know the Sherman family. Then in 
     1975 or '76, Pete Rozelle moved to Harrison. We lived in the 
     city, but we have a house in Harrison, which was a mile away 
     from where Pete Rozelle and his family resided. We became 
     very friendly with Pete Rozelle. So I have a history in the 
     last 40-some odd years of being involved. I went to most of 
     the owners meetings and all the Super Bowls with Pete 
     Rozelle. I was chairman of a group of his friends called 
     Rozelle's Raiders--I was responsible for getting him to the 
     right place at the right time. He finally gave me a whistle 
     and a sign that said `Rozelle's Raiders.' I've been very 
     lucky. In my own mind, I've been involved in football since 
     1960.''
       It was about that time that Tisch first began to consider 
     buying a professional team.
       ``I had tried several times before (purchasing his interest 
     in the Giants),'' he said. ``Steve Ross, who ended up as CEO 
     of Time-Warner, Inc. and I tried to buy the Jets in about 
     1967 or '68 and it didn't work out. I looked at other things. 
     In 1988, when I came out of the Postal Service, I decided I 
     would try to buy a sports team. I looked at many of them, 
     both in football and basketball. I looked at the Dallas 
     Cowboys and a couple of other teams. But I made up my mind I 
     was never going to buy a team that was more than one hour 
     from New York. I was interested in becoming owner of the new 
     franchise that was in Baltimore. We were putting together a 
     group when the opportunity came about to become the 50 
     percent owner of the New York Giants, which I jumped at and 
     dropped everything else.''
       He completed the negotiations with Tim Mara just a few 
     months after the Giants won Super Bowl XXV.
       Tisch's business success was but a small part of his life's 
     achievements. His generosity and commitment to civic and 
     charitable causes was legendary. Tisch was a tireless and 
     influential participant in civic affairs throughout his adult 
     life.
       In Feb. 2000, he helped found Take the Field, Inc., a non-
     profit organization dedicated to renovating and rebuilding 
     the athletic fields at New York City's public high schools. 
     Tisch, a product of those schools who graduated from Erasmus 
     Hall High in Brooklyn, was Chairman of Take the Field, Inc. 
     He launched the organization with a $1 million donation, and 
     as of earlier this year had raised more than $147 million in 
     public and private dollars.
       Tisch and two partners in Take the Field, Tony Kiser and 
     Richard Kahan, believed the private sector had to play a 
     leading role in repairing sports fields at schools throughout 
     the city that had been slowly destroyed by more than two 
     decades of neglect. Tisch approached then-mayor Rudy Giuliani 
     with his idea. The city agreed to match every dollar raised 
     by Take the Field with three of its own, and the mission was 
     to re-do every athletic field in the city that was classified 
     as ``needy.''
       ``Take the Field is one of the most innovative and 
     wonderful ideas of my life in the city,'' said New York Mets 
     owner Fred Wilpon, one of Tisch's best friends. ``And it 
     doesn't happen without Bob. At a time in his life when he 
     could have just sat back and enjoyed everything he had 
     accomplished, he went to work.''
       That's what Tisch did throughout his life. He was a 
     founding Co-Chairman of Citymeals-on-Wheels, President of the 
     Board of Directors from 1993 to 2002, and later served on the 
     Board as Honorary Chairman. He also served as chairman of 
     Public Private Initiative, a public private partnership that 
     raises funds for important community programs, from 1997 to 
     1998.
       Tisch's philanthropy continued even after he became gravely 
     ill. His family picked a physician at the Duke University 
     Medical Center to supervise his treatment for the brain 
     cancer. Tisch and his family recently donated $10 million to 
     the Duke Comprehensive Cancer Center and the school's Brain 
     Tumor Center.
       The gift accounted for the majority of a $16.3 million 
     package of subsidies that Duke will use to support research 
     into the treatment of brain tumors.
       ``I was very, very impressed by the program at Duke, and 
     very taken by more than just its medical approach,'' said 
     Steve Tisch. ``For me, there was the intangible that became 
     so important, of the spiritual and emotional commitment that 
     these programs and their doctors have.''
       Duke officials have pledged to use $5 million from the 
     Tisch family to underwrite the hiring of additional 
     researchers. The medical center is matching that with $5 
     million of its own money. Another $2.5 million from the Tisch 
     family will finance the screening of drugs that might be 
     useful in treating brain tumors. Duke officials are now are 
     calling the treatment center the Preston Robert Tisch Brain 
     Tumor Center.
       Given his many accomplishments and interesting ventures, 
     Tisch was asked in that 2002 interview what was most 
     rewarding to him.
       ``My brother (Laurence, who died of cancer at age 80 two 
     years ago today on Nov. 15, 2003) and I took the Loews 
     Corporation from a corporation that did about $20 million 
     worth of business and built it up to a $13 billon company, 
     which is now run by the next generation,'' Tisch said. 
     ``Building the company and seeing it grow has been extremely 
     gratifying. I also enjoyed my time at the Postal Service when 
     I was appointed Postmaster General. People said, `How can you 
     stand a job like that?' I loved it. I made one mistake--I 
     stayed two years when I should have stayed three years.
       ``Then, of course, my involvement with the New York Giants 
     has been very rewarding. I've been very, very lucky in my 
     life and what I've been able to achieve.''
       Everyone who knew him, worked with him or were touched by 
     his generosity were just as fortunate.
       Preston Robert Tisch was born on April 29, 1926 in New York 
     City. He attended Bucknell University before entering the 
     Army in 1944. After military service in World War II, he 
     earned a B.A. degree in economics from the University of 
     Michigan in 1948. Tisch is survived by his wife, the former 
     Joan Hyman, and their three children, Steven, Laurie and 
     Jonathan, and nine grandchildren.

                          ____________________




     BELATED THANK YOU TO THE MERCHANT MARINERS OF WORLD WAR II ACT

 Mr. BURNS. Mr. President, today I join my colleagues, Senators 
Nelson, Mikulski, Landrieu, Murkowski, Boxer, Snowe, Reed, Roberts, 
Lautenberg, DeWine, Smith, Jeffords, Corzine, Stevens, Sarbanes, Kerry, 
Lincoln, Murray, Durbin, Coleman, Feinstein, Johnson, Collins, Schumer, 
Baucus, Cochran, Brownback, Cantwell, Clinton, Dodd, Lieberman, and 
Stabenow in cosponsoring S. 1272, Belated Thank You to the Merchant 
Mariners of World War II Act of 2005.
  The contribution Merchant Mariners made during WWII have gone un-
heralded for far too long. The Merchant Marine is the forgotten service 
of World War II.
  Although their numbers were small, they suffered the highest 
casualties of any service in World War II. Merchant mariners were 
responsible for transporting troops, tanks, food, fuel, airplanes and 
other supplies and, as a result, their likelihood of combat was 
extremely high. In fact, enemy forces sank over 800 of their ships 
between 1941 and 1944.
  For more than 40 years, Merchant Mariners were denied any G.I. bill 
of rights benefits. In 1988, they were granted a ``watered down'' 
version of the G.I. bill of rights, but some portions of those benefits 
were never made

[[Page 30806]]

available to them. In addition, they still have not received proper 
recognition as veterans for Social Security purposes.
  This legislation would rectify that inequity by recognizing these 
American heroes with the status of ``veteran,'' and it would grant a 
small monthly stipend to these veterans or their widows in order to 
offset their lost benefits.
  As a veteran, I will always seek to protect the honored place of our 
military heroes. I cherish their service, and I will do everything in 
my power to support their interests. I look forward to working with my 
Senate colleagues to pass this important piece of legislation.

                          ____________________




                   RECOGNIZING THE NEWARK HUD OFFICE

 Mr. LAUTENBERG. Mr. President, it is with great pleasure that 
I rise today to pay tribute to the Newark field office of the U.S. 
Department of Housing and Urban Development on the occasion of its 40th 
anniversary in my home State of New Jersey.
  The Department of Housing and Urban Development, HUD, administers 
programs that increase homeownership, provide aid for housing for lower 
income people, support community development, and increase access to 
housing free from discrimination.
  For 40 years, the staff of the Newark field office has embraced this 
mission and effectively partnered with faith-based and community 
organizations to help provide housing assistance to the homeless, 
elderly, people with disabilities, and people living with AIDS.
  Today, under the leadership of Diane Johnson, the Newark field office 
is leading the way in helping more low- and moderate-income New 
Jerseyans realize the American dream of becoming homeowners. For 
example, in the city of Trenton, the HUD-designated ``Homeownership 
Zone'' is helping first-time homebuyers and minority families purchase 
homes.
  Since its creation in 1992, the HOPE VI Program has helped transform 
the HUD's approach to housing assistance for the poor. In New Jersey, 
HOPE VI has successfully generated over $1 billion to revitalize 
distressed public housing. This investment has changed the housing 
landscape in towns and cities throughout the State by replacing 
severely distressed public housing projects, occupied exclusively by 
poor families, with redesigned mixed-income housing.
  The Housing Choice Voucher Program has grown into the dominant form 
of federal housing assistance, helping 65,000 low-income families in 
New Jersey afford decent, safe, and sanitary housing in the private 
market.
  It is with great respect that I extend my warmest congratulations to 
the Newark field office on four decades of success and to Diane Johnson 
who has been a tireless advocate on behalf of HUD's programs and the 
people who benefit from them.

                          ____________________




                   SILVER HIGH SCHOOL FIGHTING COLTS

 Mr. BINGAMAN. Mr. President, all over this great country in 
the last month or so, high school football championships have been won 
and lost. I am delighted to report that the team in my hometown of 
Silver City, NM, after decades of effort, has won the championship 
trophy in Class 4A football in New Mexico.
  All who attended Silver High School--and all of us who attended it 
before it changed its name to that--are thrilled with this achievement. 
Seven times in the past, our team has been in the final game, and seven 
times we have come in second. This year, the Silver High School 
Fighting Colts came away with the winner's trophy for the first time in 
the school's history.
  This was accomplished under the leadership of Head Coach David 
Carrillo and his fine staff, and because of the skill and heart of all 
those enthusiastic players and their supportive families. They all have 
the congratulations and good wishes of those of us who have watched the 
team over the years. Somehow it is reassuring to know that no matter 
how old we get, we are always Colts.

                          ____________________




       RECOGNIZING MATRIX HUMAN SERVICES ON ITS 100TH ANNIVERSARY

 Mr. LEVIN. Mr. President, I would like to take this 
opportunity to recognize Matrix Human Services, one of Michigan's 
oldest and largest nonprofit social service organizations, as it 
celebrates 100 years of tireless and dedicated service.
  Matrix Human Services was founded in 1906 by a small group of 
Catholic women, later known as the League of Catholic Women, who 
recognized a growing need to provide support for low income and at-risk 
populations in the Detroit Metropolitan area. Over the years as the 
League's membership continued to grow, it was able to dedicate more 
resources and personnel to its mission of fostering self-sufficiency 
and hope to those in need. These efforts ultimately lead to a broadened 
scope of services that sought to address the growing and diverse needs 
of the community, which grew into what we now refer to as Matrix Human 
Services.
  Today, Matrix Human Services is a diverse organization with more than 
300 staff members and dedicated volunteers, serving 30 locations across 
the Detroit Metropolitan area. It continues to focus on its mission to 
help prepare individuals and families to live a more positive, 
productive and meaningful life. Matrix Human Services has organized 
educational training, childcare, social work, mentoring, abuse 
prevention, and housing assistance for the homeless programs. Each 
year, Matrix is able to serve thousands of individuals through a 
network of specialized divisions that include Head Start Family Service 
Center, Project Transition Housing, Walter and May Reuther Senior 
Services, Barat Child and Family Services, Casa Maria Family Services, 
Vistas Nuevas Head Start, and Off the Streets.
  I know my Senate colleagues join me in congratulating Matrix Human 
Services on its many years of excellent service and wish its staff, 
volunteers, and community partners many more productive years of 
service to the community.

                          ____________________




                IN MEMORY OF MAJOR GENERAL JOHN W. KIELY

 Mr. CHAFEE. Mr. President, I rise today to honor the life of 
MG John W. Kiely. Major General Kiely was a man of exemplary service to 
our State and country. A veteran of three wars, he ascended to the rank 
of colonel, Regular Army as well as serving as brigadier general, 
National Guard of Rhode Island, adjutant general of Rhode Island, and 
also was promoted to the grade of major general and commanding general. 
General Kiely was a model soldier, receiving a Purple Heart, 2 Bronze 
Stars, Valor, and 3 Legions of Merit, along with 22 other Federal 
Government awards and decorations, as well as the Rhode Island Cross 
and the Rhode Island Star. His military knowledge and service to our 
Nation will be dearly missed, and my deepest condolences go to Mrs. 
Marilyn L. Kiely and the Kiely family in their time of 
mourning.

                          ____________________




                      REMEMBERING JOSEPH O'DONNELL

 Mr. CHAFEE. Mr. President, it is with great sadness that today 
I reflect upon the life of Joseph O'Donnell. Mr. O'Donnell dedicated 
his life to his family and to public service. He served alongside my 
father as Lieutenant Governor in the 1960s, and is, in fact, the last 
Republican elected to the position. He remained active in politics 
until his passing. In addition to his tenure as Lieutenant Governor, 
Joe O'Donnell has served his community and the State of Rhode Island 
for over 55 years, including as State Director of Administration, as 
Chairman of the North Smithfield Water Authority, and in a number of 
other capacities. In addition, Mr. O'Donnell served the business 
community as a founding partner and chairman of the board of Keough 
Kirby Associates, Inc., as a trustee of

[[Page 30807]]

Landmark Health Systems, and in other board positions for numerous 
business and civic organizations. As a panelist on the `Coffee-An' 
radio program in his later years, Joe O'Donnell contributed his 
knowledge of politics, his great sense of humor, and his penchant for 
gourmet cooking to a larger audience. His name is on the Wall of Honor 
at the Marine Maritime Academy for outstanding lifetime achievement, 
and he was a recipient of the Admiral Joel R.P. Pringle Society Award 
from the Naval War College Foundation in Newport. It is with heavy 
hearts that Stephanie and I send our deepest sympathies to Mrs. Yolande 
O'Donnell and their six children. Of all his accomplishments, I know he 
is most proud of the closeness of his family.

                          ____________________




                      MESSAGES FROM THE PRESIDENT

  Messages from the President of the United States were communicated to 
the Senate by Ms. Evans, one of his secretaries.

                          ____________________




                      EXECUTIVE MESSAGES REFERRED

  As in executive session the Presiding Officer laid before the Senate 
messages from the President of the United States submitting sundry 
nominations and withdrawals which were referred to the appropriate 
committees.
  (The nominations received today are printed at the end of the Senate 
proceedings.)

                          ____________________




                         MESSAGE FROM THE HOUSE

                                 ______
                                 

                          ENROLLED BILL SIGNED

  At 1:35 p.m., a message from the House of Representatives, delivered 
by Ms. Niland, one of its reading clerks, announced that the Speaker 
has signed the following enrolled bills:

       S. 205. An act to authorize the American Battle Monuments 
     Commission to establish in the State of Louisiana a memorial 
     to honor the Buffalo Soldiers.
       S. 652. An act to provide financial assistance for the 
     rehabilitation of the Benjamin Franklin National Memorial in 
     Philadelphia, Pennsylvania, and the development of an exhibit 
     to commemorate the 300th anniversary of the birth of Benjamin 
     Franklin.
       S. 1238. An act to amend the Public Lands Corps Act of 1993 
     to provide for the conduct of projects that protect forests, 
     and for other purposes.
       S. 1310. An act to authorize the Secretary of the Interior 
     to allow the Columbia Gas Transmission Corporation to 
     increase the diameter of a natural gas pipeline located in 
     the Delaware Water Gap National Recreation Area, to allow 
     certain commercial vehicles to continue to use Route 209 
     within the Delaware Water Gap National Recreation Area, and 
     to extend the termination date of the National Park System 
     Advisory Board to January 1, 2007.
       S. 1481. An act to amend the Indian Land Consolidation Act 
     to provide for probate reform.
       S. 1892. An act to amend Public Law 107-153 to modify a 
     certain date.
       S. 1988. An act to authorize the transfer of items in the 
     War Reserves Stockpile for Allies, Korea.

  The enrolled bills were signed subsequently by the President pro 
tempore (Mr. Stevens).

                          ____________________




                           MEASURES REFERRED

  The following concurrent resolution was read, and referred as 
indicated:

       H. Con. Res. 230. Concurrent resolution expressing the 
     sense of the Congress that the Russian Federation must 
     protect intellectual property rights; to the Committee on 
     Finance.

                          ____________________




                         REPORTS OF COMMITTEES

  The following reports of committees were submitted:

       By Mr. INHOFE, from the Committee on Environment and Public 
     Works, without amendment:
       S. 2015. A bill to provide a site for construction of a 
     national health museum, and for other purposes (Rept. No. 
     109-212).

                          ____________________




              INTRODUCTION OF BILLS AND JOINT RESOLUTIONS

  The following bills and joint resolutions were introduced, read the 
first and second times by unanimous consent, and referred as indicated:

           By Mr. DURBIN (for himself and Mr. Obama):
       S. 2156. A bill to designate the facility of the United 
     States Postal Service located at 332 South Main Street in 
     Flora, Illinois, as the ``Robert T. Ferguson Post Office 
     Building''; to the Committee on Homeland Security and 
     Governmental Affairs.
           By Mrs. BOXER:
       S. 2157. A bill to amend title 10, United States Code, to 
     provide for the Purple Heart to be awarded to prisoners of 
     war who die in captivity under circumstances not otherwise 
     establishing eligibility for the Purple Heart; to the 
     Committee on Armed Services.
           By Mr. LIEBERMAN (for himself and Ms. Collins):
       S. 2158. A bill to establish a National Homeland Security 
     Academy within the Department of Homeland Security; to the 
     Committee on Homeland Security and Governmental Affairs.
           By Mr. SMITH (for himself and Mr. Wyden):
       S. 2159. A bill to provide for reimbursement of the cost of 
     certain projects at the Fern Ridge Dam, Oregon; to the 
     Committee on Environment and Public Works.
           By Mrs. BOXER (for herself and Mr. Akaka):
       S. 2160. A bill to amend the Higher Education Act of 1965 
     to authorize grants for institutions of higher education 
     serving Asian Americans and Pacific Islanders; to the 
     Committee on Health, Education, Labor, and Pensions.
           By Mr. INHOFE (for himself, Mr. Domenici, Mr. Hagel, 
             and Mr. Nelson of Nebraska):
       S. 2161. A bill to amend the Safe Drinking Water Act to 
     prevent the enforcement of certain national primary drinking 
     water regulations unless sufficient funding is available or 
     variance technology has been identified; to the Committee on 
     Environment and Public Works.
           By Ms. SNOWE:
       S. 2162. A bill to foster local development by facilitating 
     the delivery of financial assistance to small businesses, and 
     for other purposes; to the Committee on Small Business and 
     Entrepreneurship.
           By Mr. KERRY:
       S. 2163. A bill to amend titles 10 and 38 of the United 
     States Code, to increase and index education 31 benefits for 
     veterans under the Montgomery GI bill to ensure adequate and 
     equitable benefits for active duty members and members of the 
     selected Reserve, and to include certain servicemembers 
     previously excluded from such benefits; to the Committee on 
     Veterans' Affairs.
           By Ms. STABENOW (for herself, Mr. Reid, Mr. Baucus, Mr. 
             Nelson of Nebraska, Mr. Bingaman, Mr. Kennedy, Mrs. 
             Clinton, Mr. Rockefeller, Mr. Dayton, Mrs. Lincoln, 
             and Ms. Mikulski):
       S. 2164. A bill to amend titles IV, XVIII, and XIX of the 
     Social Security Act to improve the provision of care under 
     the programs under such titles, and for other purposes; to 
     the Committee on Finance.
           By Ms. MIKULSKI (for herself, Mr. Kennedy, and Mr. 
             Sarbanes):
       S. 2165:. A bill to assist members of the Armed Forces in 
     obtaining United States citizenship, and for other purposes; 
     to the Committee on the Judiciary.
           By Mr. LOTT (for himself and Mr. Dodd):
       S. 2166. A bill to direct the Election Assistance 
     Commission to make grants to States to restore and replace 
     election administration supplies, materials, records, 
     equipment, and technology which were damaged, destroyed, or 
     dislocated as a result of Hurricane Katrina or Hurricane 
     Rita; to the Committee on Rules and Administration.
           By Mr. SUNUNU (for himself, Mr. Leahy, Mr. Schumer, Mr. 
             Levin, Mr. Durbin, Mr. Hagel, Mr. Craig, Mr. Kerry, 
             Mr. Carper, Mr. Akaka, Mr. Reid, Ms. Cantwell, Mr. 
             Conrad, Mr. Lautenberg, Ms. Landrieu, Mrs. Clinton, 
             Ms. Mikulski, Mr. Pryor, Mr. Kennedy, Mr. Obama, Mr. 
             Dodd, Mr. Reed, Mr. Rockefeller, Mrs. Boxer, Mr. 
             Johnson, Mr. Nelson of Nebraska, Mr. Kohl, Mr. Nelson 
             of Florida, Mr. Salazar, Mr. Bingaman, Mr. Lieberman, 
             and Mr. Dayton):
       S. 2167. A bill to amend the USA PATRIOT ACT to extend the 
     sunset of certain provisions of that Act and the lone wolf 
     provision of the Intelligence Reform and Terrorism Prevention 
     Act of 2004 to July 1, 2006; considered and passed.
           By Ms. SNOWE (for herself and Mr. Nelson of Florida):
       S. 2168. A bill to amend title XVIII of the Social Security 
     Act to provide extended and additional protections to 
     Medicare beneficiaries enrolled under part C or D or such 
     title; to the Committee on Finance.
           By Mr. CARPER (for himself and Mr. Martinez):
       S. 2169. A bill to amend the Fair Credit Reporting Act to 
     provide for secure financial data, and for other purposes; to 
     the Committee on Banking, Housing, and Urban Affairs.
           By Mr. FRIST (for himself, Mr. Biden, and Mr. Lugar):
       S. 2170. A bill to provide for global pathogen surveillance 
     and response; considered and passed.

[[Page 30808]]


           By Ms. LANDRIEU:
       S. 2171. A bill to amend the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act to reauthorize the 
     temporary mortgage and rental payments program; to the 
     Committee on Homeland Security and Governmental Affairs.
           By Ms. LANDRIEU:
       S. 2172. A bill to provide for response to Hurricane 
     Katrina by establishing a Louisiana Recovery Corporation, 
     providing for housing and community rebuilding, and for other 
     purposes; to the Committee on Banking, Housing, and Urban 
     Affairs.
           By Mrs. CLINTON (for herself and Mr. Rockefeller):
       S. 2173. A bill to assist pharmacies in facilitating 
     enrollment of dual eligible populations under the Medicare 
     prescription drug benefit; to the Committee on Finance.
           By Mr. THUNE:
       S. 2174. A bill to permit certain funds made available for 
     the Wagner Service Unit of the Indian Health Service to be 
     used to pay expenses incurred in keeping the emergency room 
     of that Unit open 24 hours per day, 7 days a week, through 
     September 30, 2006; to the Committee on Indian Affairs.
           By Mr. KENNEDY (for himself, Mr. Rockefeller, and Mr. 
             Reid):
       S. 2175. A bill to require the submittal to Congress of any 
     Presidential Daily Briefing relating to Iraq during the 
     period beginning on January 20, 1997, and ending on March 19, 
     2003; to the Select Committee on Intelligence.
           By Mr. BAYH (for himself, Mr. Durbin, and Ms. 
             Landrieu):
       S. 2176. A bill to amend title 10, United States Code, to 
     modify eligibility for income replacement payments for 
     Reserves experiencing extended and frequent mobilization for 
     active duty service; to the Committee on Armed Services.

                          ____________________




            SUBMISSION OF CONCURRENT AND SENATE RESOLUTIONS

  The following concurrent resolutions and Senate resolutions were 
read, and referred (or acted upon), as indicated:

           By Mr. VOINOVICH (for himself, Mr. Hagel, and Mr. 
             Biden):
       S. Res. 342. A resolution recognizing the Republic of 
     Croatia for its progress in strengthening democratic 
     institutions, respect for human rights, and the rule of law 
     and recommending the integration of Croatia into the North 
     Atlantic Treaty Organization; considered and agreed to.
           By Mr. SESSIONS:
       S. Res. 343. A resolution expressing the sense of the 
     Senate that the week of December 19, 2005 should be 
     designated ``Thank Our Defenders Week''; considered and 
     agreed to.
           By Mr. McCAIN (for himself, Mr. Lugar, Mr. Brownback, 
             and Mr. Reid):
       S. Res. 344. A resolution expressing support for the 
     Government of Georgia's South Ossetian Peace Plan and the 
     successful and peaceful reintegration of the region into 
     Georgia; considered and agreed to.
           By Mr. BYRD (for himself and Mr. Rockefeller):
       S. Res. 345. A resolution recognizing the 100th anniversary 
     of Fenton Art Glass, a beloved institution in West Virginia, 
     that continues to contribute to the economic and cultural 
     heritage of the State through its production of world 
     renowned, hand-blown glass; considered and agreed to.
           By Mr. BURR (for himself and Mrs. Dole):
       S. Res. 346. A resolution commending the Appalachian State 
     University football team for winning the 2005 National 
     Collegiate Athletic Association Division I-AA Football 
     Championship; considered and agreed to.
           By Ms. LANDRIEU (for herself and Mr. Vitter):
       S. Res. 347. A resolution expressing the sense of the 
     Senate that lenders holding mortgages on homes in communities 
     of the Gulf Coast devastated by Hurricanes Katrina and Rita 
     should extend current voluntary mortgage payment forbearance 
     periods and not foreclose on properties in those communities; 
     considered and agreed to.
           By Ms. CANTWELL:
       S. Con. Res. 74. A concurrent resolution correcting the 
     enrollment of H.R. 2863; considered and agreed to.
           By Mr. SANTORUM (for himself and Mr. Lieberman):
       S. Con. Res. 75. A concurrent resolution encouraging all 
     Americans to increase their charitable giving, with the goal 
     of increasing the annual amount of charitable giving in the 
     United States by 1 percent; considered and agreed to.

                          ____________________




                         ADDITIONAL COSPONSORS


                                 S. 438

  At the request of Mr. Ensign, the name of the Senator from 
Connecticut (Mr. Dodd) was added as a cosponsor of S. 438, a bill to 
amend title XVIII of the Social Security Act to repeal the medicare 
outpatient rehabilitation therapy caps.


                                 S. 484

  At the request of Mr. Warner, the name of the Senator from Hawaii 
(Mr. Inouye) was added as a cosponsor of S. 484, a bill to amend the 
Internal Revenue Code of 1986 to allow Federal civilian and military 
retirees to pay health insurance premiums on a pretax basis and to 
allow a deduction for TRICARE supplemental premiums.


                                 S. 662

  At the request of Ms. Collins, the name of the Senator from 
Mississippi (Mr. Cochran) was added as a cosponsor of S. 662, a bill to 
reform the postal laws of the United States.


                                 S. 707

  At the request of Mr. Jeffords, his name was added as a cosponsor of 
S. 707, a bill to reduce preterm labor and delivery and the risk of 
pregnancy-related deaths and complications due to pregnancy, and to 
reduce infant mortality caused by prematurity.


                                 S. 757

  At the request of Mr. Chafee, the name of the Senator from North 
Carolina (Mrs. Dole) was added as a cosponsor of S. 757, a bill to 
amend the Public Health Service Act to authorize the Director of the 
National Institute of Environmental Health Sciences to make grants for 
the development and operation of research centers regarding 
environmental factors that may be related to the etiology of breast 
cancer.


                                 S. 863

  At the request of Mr. Conrad, the name of the Senator from Georgia 
(Mr. Isakson) was added as a cosponsor of S. 863, a bill to require the 
Secretary of the Treasury to mint coins in commemoration of the 
centenary of the bestowal of the Nobel Peace Prize on President 
Theodore Roosevelt, and for other purposes.


                                 S. 910

  At the request of Ms. Landrieu, the name of the Senator from Vermont 
(Mr. Jeffords) was added as a cosponsor of S. 910, a bill to require 
that health plans provide coverage for a minimum hospital stay for 
mastectomies, lumpectomies, and lymph node dissection for the treatment 
of breast cancer and coverage for secondary consultations.


                                S. 1002

  At the request of Mr. Baucus, the name of the Senator from Vermont 
(Mr. Jeffords) was added as a cosponsor of S. 1002, a bill to amend 
title XVIII of the Social Security Act to make improvements in payments 
to hospitals under the medicare program, and for other purposes.


                                S. 1405

  At the request of Mr. Nelson of Nebraska, the name of the Senator 
from Washington (Mrs. Murray) was added as a cosponsor of S. 1405, a 
bill to extend the 50 percent compliance threshold used to determine 
whether a hospital or unit of a hospital is an inpatient rehabilitation 
facility and to establish the National Advisory Council on Medical 
Rehabilitation.


                                S. 1568

  At the request of Mr. Hagel, his name was added as a cosponsor of S. 
1568, a bill to enhance the ability of community banks to foster 
economic growth and serve their communities, and for other purposes.


                                S. 1841

  At the request of Mr. Carper, his name was added as a cosponsor of S. 
1841, a bill to amend title XVIII of the Social Security Act to provide 
extended and additional protection to Medicare beneficiaries who enroll 
for the Medicare prescription drug benefit during 2006.


                                S. 2076

  At the request of Mr. Leahy, the name of the Senator from Colorado 
(Mr. Salazar) was added as a cosponsor of S. 2076, a bill to amend 
title 5, United States Code, to provide to assistant United States 
attorneys the same retirement benefits as are afforded to Federal law 
enforcement officers.


                                S. 2083

  At the request of Mrs. Clinton, the names of the Senator from 
California (Mrs. Boxer) and the Senator from Vermont (Mr. Jeffords) 
were added as cosponsors of S. 2083, a bill to prohibit the Assistant 
Secretary of Homeland Security (Transportation Security Administration) 
from removing any item

[[Page 30809]]

from the current list of items prohibited from being carried aboard a 
passenger aircraft.


                                S. 2088

  At the request of Mr. Allard, the name of the Senator from North 
Carolina (Mrs. Dole) was added as a cosponsor of S. 2088, a bill to 
assist low-income families, displaced from their residences in the 
States of Alabama, Louisiana, and Mississippi as a result of Hurricane 
Katrina, by establishing within the Department of Housing and Urban 
Development a homesteading initiative that offers displaced low-income 
families the opportunity to purchase a home owned by the Federal 
Government, and for other purposes.


                                S. 2109

  At the request of Mr. Ensign, the names of the Senator from West 
Virginia (Mr. Rockefeller), the Senator from South Dakota (Mr. Thune) 
and the Senator from Maine (Ms. Snowe) were added as cosponsors of S. 
2109, a bill to provide national innovation initiative.


                                S. 2134

  At the request of Mr. Smith, the names of the Senator from Wisconsin 
(Mr. Kohl) and the Senator from Ohio (Mr. DeWine) were added as 
cosponsors of S. 2134, a bill to strengthen existing programs to assist 
manufacturing innovation and education, to expand outreach programs for 
small and medium-sized manufacturers, and for other purposes.


                                S. 2140

  At the request of Mr. Hatch, the name of the Senator from Ohio (Mr. 
DeWine) was added as a cosponsor of S. 2140, a bill to enhance 
protection of children from sexual exploitation by strengthening 
section 2257 of title 18, United States Code, requiring producers of 
sexually explicit material to keep and permit inspection of records 
regarding the age of performers, and for other purposes.


                                S. 2145

  At the request of Ms. Collins, the name of the Senator from New 
Jersey (Mr. Corzine) was added as a cosponsor of S. 2145, a bill to 
enhance security and protect against terrorist attacks at chemical 
facilities.


                                S. 2154

  At the request of Mr. Obama, the names of the Senator from Indiana 
(Mr. Bayh), the Senator from California (Mrs. Feinstein), the Senator 
from New Jersey (Mr. Lautenberg) and the Senator from Florida (Mr. 
Nelson) were added as cosponsors of S. 2154, a bill to provide for the 
issuance of a commemorative postage stamp in honor of Rosa Parks.


                            S. CON. RES. 71

  At the request of Mr. Akaka, the name of the Senator from South 
Dakota (Mr. Thune) was added as a cosponsor of S. Con. Res. 71, a 
concurrent resolution expressing the sense of Congress that States 
should require candidates for driver's licenses to demonstrate an 
ability to exercise greatly increased caution when driving in the 
proximity of a potentially visually impaired individual.


                              S. RES. 253

  At the request of Mr. Schumer, the name of the Senator from Maryland 
(Mr. Sarbanes) was added as a cosponsor of S. Res. 253, a resolution 
designating October 7, 2005, as ``National `It's Academic' Television 
Quiz Show Day''.


                              S. RES. 340

  At the request of Ms. Landrieu, the name of the Senator from 
Louisiana (Mr. Vitter) was added as a cosponsor of S. Res. 340, a 
resolution expressing the sense of the Senate that lenders holding 
mortgages on homes in communities of Louisiana devastated by Hurricanes 
Katrina and Rita should extend current mortgage payment forbearance 
periods and not foreclose on properties in those communities until such 
time that Congress can consider legislation to provide relief to those 
homeowners.

                          ____________________




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself and Mr. Obama):
  S. 2156. A bill to designate the facility of the United States Postal 
Service located at 332 South Main Street in Flora, Illinois, as the 
``Robert T. Ferguson Post Office Building.''; to the Committee on 
Homeland Security and Governmental Affairs.
  Mr. DURBIN. Mr. President, 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. 2156

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

     SECTION 1. ROBERT T. FERGUSON POST OFFICE BUILDING.

       (a) Designation.--The facility of the United States Postal 
     Service located at 332 South Main Street in Flora, Illinois, 
     shall be known and designated as the ``Robert T. Ferguson 
     Post Office Building''.
       (b) References.--Any reference in a law, map, regulation, 
     document, paper, or other record of the United States to the 
     facility referred to in subsection (a) shall be deemed to be 
     a reference to the ``Robert T. Ferguson Post Office 
     Building''.

  Mr. DURBIN. Mr. President, today I am pleased to introduce 
legislation to designate the U.S. Post Office at 332 South Main Street 
in Flora, Illinois as the ``Robert T. Ferguson Post Office Building''.
  Mr. Ferguson was a distinguished public servant who began his postal 
career at the Harvey, Illinois Post Office, where he worked as a city 
carrier from 1954 to 1957. He then moved to the Flora, Illinois Post 
Office where he worked his way up from clerk/carrier to Assistant 
Postmaster to Postmaster in 1986. During the final three years of his 
career before he retired in 1988, Robert Ferguson served as Postmaster 
in Collinsville, Illinois.
  In recognition of his hard work and dedication, Mr. Ferguson received 
five Outstanding Superior Accomplishment Awards and qualified as a 
Postmaster Trainer on October 1, 1976. He worked tirelessly on behalf 
of postal workers and traveled throughout Southern Illinois training 
newly appointed Postmasters. He was well liked by his colleagues who 
knew they had a leader they could trust.
  In addition to his active professional life, Robert Ferguson found 
time to serve his community. As President of the Clay County Shrine 
Club in 1992, he organized events to raise thousands of dollars for the 
Shriner's Hospital for Children. In 1996, he raised money to assist a 
local family after a storm destroyed their mobile home. In 2002, Mr. 
Ferguson created a Hospital Directory for Southern Illinois, which aid 
local citizens by providing phone numbers and addresses of local 
hospitals.
  In 1996, the Flora Chamber of Commerce named Robert Ferguson the 
``Outstanding Citizen of Flora''.
  Mr. President, post offices are often designated in honor of 
individuals who have made valuable contributions to their community, 
State, and country. I can think of no more fitting way to permanently 
and publicly recognize Robert Ferguson's work than to name the Flora, 
Illinois post office in his honor. It would be a most appropriate way 
to commemorate his exemplary service to the Flora community and to 
postal workers and patrons throughout Southern Illinois.
                                 ______
                                 
      By Mrs. BOXER:
  S. 2157. A bill to amend title 10, United States Code, to provide for 
the Purple Heart to be awarded to prisoners of war who die in captivity 
under circumstances not otherwise establishing eligibility for the 
Purple Heart; to the Committee on Armed Services.
  Mrs. BOXER. Mr. President, I am pleased to introduce legislation 
today to provide for the Purple Heart to be awarded to all prisoners of 
war who die in captivity, regardless of the cause of death. The ``Honor 
Our Fallen Prisoners of War Act'' was previously introduced by 
Representative Bob Filner in the House of Representatives. I am proud 
to join him in this effort.
  The ``Honor Our Fallen Prisoners of War Act'' would make members of 
the Armed Forces who die in captivity of any circumstance eligible for 
the Purple Heart. Currently, only prisoners of war who die during their 
imprisonment of wounds inflicted by an instrument of war are eligible 
for posthumous Purple

[[Page 30810]]

Heart recognition. Those who die of starvation, disease, abuse, or 
other causes during captivity are not.
  I believe this is an injustice to the thousands of POWs who paid the 
ultimate price in service to our Nation. The purpose of the Purple 
Heart is to honor those who are killed or wounded in action as the 
result of an act of an enemy of the United States. It makes no sense 
that prisoner of war camps--where thousands of Americans have been held 
against their will and have endured great suffering at the hands of 
enemy forces--are not considered a battlefield.
  The legislation is retro-active to December 7, 1941 and would 
therefore include all POWs who have died in captivity since World War 
II.
  The ``Honor Our Fallen Prisoners of War Act'' has been endorsed by 
the Tiger Survivors, Veterans of Foreign Wars, Military Order of the 
Purple Heart, Korean War Veterans Association, National League of POW/
MIA Families, and a number of other prominent veterans organizations.
  I urge my colleagues to support this important legislation.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself and Ms. Collins):
  S. 2158. A bill to establish a National Homeland Security Academy 
within the Department of Homeland Security; to the Committee on 
Homeland Security and Governmental Affairs.
  Mr. LIEBERMAN. Mr. President, I am pleased to introduce today the 
National Homeland Security Academy Act of 2005. I am delighted that 
Chairman Collins has joined me in sponsoring this legislation.
  Shortly after the Homeland Security Department was formed in 2003, I 
laid out my vision for what the country needed to do to protect against 
another terrorist attack, or major natural disaster, in a speech at 
George Washington University. Among the areas I identified as in need 
of additional work was the training of those who agreed to commit 
themselves to the protection of Americans here at home. At the time, I 
said we needed to make sure homeland security professionals were given 
the full range of skills necessary to make this country as safe as it 
should be and I proposed a National Homeland Security Academy to 
educate and train the best and brightest of our future leaders.
  The bill Senator Collins and I are introducing today, the National 
Homeland Security Academy Act of 2005, is the fulfillment of that idea.
  It was clear to me as I was working to create a Department of 
Homeland Security that we would need to find a way to make sure 
Department professionals, as well as the State and local officials with 
whom they work, understand the full scope and range of responsibilities 
entrusted to the Department--not just the details of their own 
particular jobs. This academy would accomplish that. It would cultivate 
leaders, teach the full range of skills necessary for robust homeland 
security, and provide cross-disciplinary and joint education and 
training to government officials at the Federal, State and local levels 
so that they can develop the bonds and relationships that will make 
their work more efficient and effective.
  The National Homeland Security Academy Act of 2005 is the product of 
my work with the Chairman of the Homeland Security and Governmental 
Affairs Committee, Senator Collins, as well as homeland security 
experts, scholars, and education and professional development experts. 
Together, we have refined the concept of homeland security education 
and training to meet the Department's needs today and into the future.
  The academy I envision would be a professional development 
institution, much like the War College created by the Department of 
Defense to provide its leaders with a deep and thorough understanding 
of military and defense matters. The National Homeland Security Academy 
would ensure that new and mid-level executive employees at the 
Department of Homeland Security--as well as other Federal, State, and 
local leaders with homeland security responsibilities--have a thorough 
understanding of the strategic missions of the Department, as well 
access to hands-on training exercises, and real-time simulation.
  Four months ago, Hurricane Katrina reminded us in no uncertain terms 
that our homeland security workers at all levels still have much to 
learn. How and when to share critical information? What does it mean to 
activate the National Response Plan? Who is responsible for which 
emergency response mission? These are the types of questions we on the 
Homeland Security and Governmental Affairs Committee have been hearing 
as we investigate why the preparedness for and response to the 
hurricane was so lacking. The National Homeland Security Academy would 
provide answers to these and many more questions and ensure homeland 
security officials are better equipped to respond to the next disaster.
  The centerpiece of the Academy would be the National Homeland 
Security Education and Strategy Center, where Federal homeland security 
officials would receive initial and continuing homeland security 
education. The Academy would also incorporate the Center for Homeland 
Defense and Security run by the Naval Postgraduate School at the 
Direction of the Office of State and Local Government Coordination and 
Preparedness. In addition, the bill establishes a National Homeland 
Security Education Network comprised of the academies and training 
centers within the jurisdiction of DHS--like the Federal Law 
Enforcement Training Center--as well as a communications network 
capable of providing distance learning opportunities.
  It also creates a new State and Local Education and Training 
Coordinator within the Office of State and Local Government 
Coordination and Preparedness to address one of the most frequent 
criticisms local first responders have with the Department of Homeland 
Security, and that is the fact that many people in the Department seem 
to be unaware of or unwilling to make use of excellent state and local 
education and training programs. A liaison officer would rectify that.
  This bill does not change the system for first responder training. 
Local first responders will continue to work with the Office of State 
and Local Government Coordination and Preparedness to ensure they have 
the necessary training to deal with the situations they face everyday. 
But we believe that bringing people together from all levels of 
government to study homeland security issues from different 
perspectives would be healthy. And we do think that homeland security 
will benefit overall from the relationships that would inevitably form 
between officials at every level and from every corner of the country.
  The National Homeland Security Act of 2005 addresses a deficiency in 
the education and training of our homeland security professionals by 
helping to foster connected, experienced, and knowledgeable homeland 
security leaders who will be able to provide the best possible 
protection for the American people. I look forward to working with 
Chairman Collins in the next session to mark up this bill and make it 
law.
  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. 2158

       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 ``National Homeland Security 
     Academy Act of 2005''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) homeland security poses a complex challenge for the 
     Nation that can only be successfully addressed by the 
     combined effort of Federal, State, and local governments and 
     the private sector;
       (2) the United States fields a dedicated workforce to 
     provide homeland security, but lacks a coordinated homeland 
     security education system that links a strategy-based 
     education with hands on training and real time simulation, 
     and fails to make such a system available to the appropriate 
     government and private sector personnel on a wide scale;

[[Page 30811]]

       (3) officials at all levels of government should understand 
     the strategic mission of the Department of Homeland Security, 
     and have access to continuing education and hands-on training 
     exercises;
       (4) the development of a program of professional education 
     and training that links strategy and training, and 
     coordinates current training among the many academies and 
     training facilities that fall under the jurisdiction of the 
     Department of Homeland Security, is essential to meeting the 
     goals and intent of the Homeland Security Act of 2002;
       (5) lessons learned from the Department of Homeland 
     Security's Top Official Exercises (TOPOFF), and the tragedy 
     of Hurricane Katrina, demonstrate there is a need to build up 
     institutional knowledge within the Department and cultivate 
     leaders capable of guiding the Department and the Nation when 
     catastrophic incidents occur;
       (6) modern information technologies provide uniquely 
     powerful tools for ensuring that material is presented in a 
     way that facilitates rapid and effective learning for a 
     diverse student body, material being taught is continuously 
     upgraded and reviewed, and training is available anytime and 
     anywhere it is needed; and
       (7) as the Homeland Security Act of 2002 brought together a 
     number of Federal agencies with specific and often nonrelated 
     functions to form a single department, the National Homeland 
     Security Academy will draw upon the expertise of a variety of 
     existing academic institutions and innovative programs to 
     educate our homeland security workforce.

     SEC. 3. ESTABLISHMENT OF NATIONAL HOMELAND SECURITY ACADEMY.

       (a) In General.--Title VIII of the Homeland Security Act of 
     2002 (6 U.S.C. 361 et seq.) is amended by adding after 
     section 801 the following:

     ``SEC. 802. NATIONAL HOMELAND SECURITY ACADEMY.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary--
       ``(A) shall establish the National Homeland Security 
     Academy (referred to in this section as the `Academy') within 
     the Office of State and Local Government Coordination and 
     Preparedness of the Department; and
       ``(B) may enter into cooperative agreements with other 
     agencies or entities to utilize space and provide for the 
     lease of real property for the Academy or any component of 
     the Academy.
       ``(2) Composition.--The Academy shall consist of--
       ``(A) the National Homeland Security Education and Strategy 
     Center (referred to in this section as the `Strategy Center') 
     to provide fundamental instruction and develop a homeland 
     security curriculum focusing primarily on the Federal 
     Government's overall strategy, goals, methods, and 
     techniques;
       ``(B) a communications network capable of delivering 
     distance learning opportunities, at the direction of the 
     Strategy Center;
       ``(C) the programs of the Office of State and Local 
     Government Coordination and Preparedness' Center for Homeland 
     Defense and Security located at the Naval Postgraduate 
     School, and such programs shall be incorporated into the 
     Academy in a manner to be determined by the Secretary; and
       ``(D) the National Homeland Security Education Network, 
     which--
       ``(i) shall be composed of representatives from all of the 
     academies and training centers within the jurisdiction of the 
     Department;
       ``(ii) shall work with the Academy to develop a 
     standardized homeland security curriculum to be incorporated, 
     as appropriate, at each academy and training center to ensure 
     that the focus of the individual centers is coordinated with 
     the centralized educational strategies and goals of the 
     Academy; and
       ``(iii) shall not affect the respective missions and goals 
     of the participating academies and training centers.
       ``(3) Mission.--The mission of the Academy shall be to--
       ``(A) establish an educational system to--
       ``(i) cultivate leaders in homeland security; and
       ``(ii) ensure that Federal, State, local, tribal, and 
     private sector officials get the full range of skills needed 
     to provide robust homeland security;
       ``(B) provide strategic education and training to carry out 
     the missions of the Department of Homeland Security;
       ``(C) provide cross-disciplinary and joint education and 
     training to Federal, State, and local government officials 
     responsible for the direct application and execution of vital 
     homeland security missions; and
       ``(D) focus primarily on shorter-term classes and exercises 
     to maximize participation by the homeland security community.
       ``(4) Enrollment target.--
       ``(A) In general.--The Strategy Center shall have an 
     initial annual enrollment target of 1,000 resident students, 
     as described in subsection (b)(3)(A).
       ``(B) Non-resident students.--The enrollment target under 
     subparagraph (A) does not include non-resident students, 
     including students who participate in electronic learning 
     systems.
       ``(5) Responsibilities.--
       ``(A) In general.--In addition to providing traditional 
     course work and hands-on training exercises, the Academy 
     shall encourage the development and use of modern technology 
     to ensure that the training offered at the Academy, and to 
     organizations and individuals receiving instruction over 
     electronic learning systems--
       ``(i) is tailored to the unique needs of the individuals 
     and groups that need training;
       ``(ii) efficiently uses such technology; and
       ``(iii) translates directly into practical skills.
       ``(B) Instructional materials.--The Academy shall develop 
     instructional requirements for courses related to its mission 
     that are supported with materials that are adequately 
     reviewed and continuously updated.
       ``(C) Certification.--
       ``(i) In general.--The Academy may establish certification 
     criteria for students in areas related to its mission, in 
     consultation with the Network established under subsection 
     (e).
       ``(ii) Recertification.--The criteria established under 
     clause (i) shall include requirements for recertification and 
     ensure the availability of needed assessment tools.
       ``(D) Information repository.--The Academy shall provide a 
     repository of approved instructional materials, instructional 
     software, and other materials that are easily accessible by 
     participants.
       ``(E) Communication networks.--The Academy shall certify, 
     and operate, if necessary, a secure, reliable communication 
     system capable of delivering instructional materials to 
     participants at any time and place.
       ``(F) Instruction and expertise.--The Academy shall certify 
     instructors, experts, counselors, and other individuals who 
     can provide answers and advice to students over communication 
     systems.
       ``(6) Strategy center.--
       ``(A) Responsibilities.--The Strategy Center shall--
       ``(i) provide curriculum development and classroom 
     instruction for resident students that focus on the strategic 
     goals, methods, and techniques for homeland security;
       ``(ii) provide instruction--

       ``(I) primarily to Federal employees described under 
     subsection (b)(3)(A) with homeland security responsibilities; 
     and
       ``(II) to small numbers of State and local government 
     officials and private individuals; and

       ``(iii) direct the operation of the Academy's electronic 
     learning systems.
       ``(B) Curriculum.--The curriculum taught at the Strategy 
     Center shall--
       ``(i) include basic education about homeland security, the 
     Department, and the relationship of the directorates within 
     the Department;
       ``(ii) include the relationship between the Department and 
     other Federal, State, and local agencies with homeland 
     security responsibilities; and
       ``(iii) be developed with assistance from the National 
     Homeland Security Education Network.
       ``(b) Administration.--
       ``(1) Executive director.--The Secretary shall appoint an 
     Executive Director for the Academy, who shall--
       ``(A) administer the operations of the Academy;
       ``(B) establish an Academic Board, to be headed by the Dean 
     of the Academic Board, appointed under paragraph (2);
       ``(C) hire initial staff and faculty, as appropriate and 
     necessary;
       ``(D) contract with practitioners and experts, as 
     appropriate, to supplement academic instruction;
       ``(E) make recommendations to the Secretary regarding long-
     term staffing and funding levels for the Academy; and
       ``(F) report to the Executive Director of the Office of 
     State and Local Government Coordination and Preparedness.
       ``(2) Dean of the academic board.--The Executive Director 
     shall appoint, with the approval of the Secretary, a 
     permanent professor to serve as Dean of the Academic Board 
     and perform such duties as the Executive Director may 
     prescribe.
       ``(3) Director of admissions.--The Executive Director shall 
     appoint, with the approval of the Secretary, a Director of 
     Admissions, who shall--
       ``(A) grant admission to the Strategy Center to--
       ``(i) new employees of the Department, who have clear 
     homeland security responsibilities;
       ``(ii) mid-level executive employees of the Department, 
     including employees that receive academy or other training, 
     who demonstrate a need for cross-disciplinary or advanced 
     education and training and have been endorsed by the 
     appropriate Under Secretary;
       ``(iii) other Federal employees with homeland security 
     responsibilities who have been endorsed by the head of their 
     agency;
       ``(iv) State and local employees who--

       ``(I) demonstrate a clear responsibility for providing 
     homeland security; and
       ``(II) possess the nomination of the Governor of their 
     State, or Head of applicable jurisdiction; and

       ``(v) private sector applicants who demonstrate a clear 
     responsibility for providing homeland security;

[[Page 30812]]

       ``(B) ensure that students from each level of government 
     and the private sector are included in all programs and 
     classes, whenever appropriate; and
       ``(C) perform such duties as the Executive Director may 
     prescribe.
       ``(c) Board of Visitors.--
       ``(1) Establishment.--Before the Academy admits any 
     students, the Secretary shall establish a Board of Visitors 
     (in this section referred to as the `Board') to--
       ``(A) assist in the development of curriculum and programs 
     at the Academy; and
       ``(B) recommend the site for the location of the Strategy 
     Center.
       ``(2) Membership.--
       ``(A) Composition.--The Board will be composed of--
       ``(i) the Secretary, or designee, who shall serve as chair;
       ``(ii) the Executive Director of the Academy, or designee, 
     who shall be a nonvoting member;
       ``(iii) the Chairman of the Committee on Homeland Security 
     and Governmental Affairs of the Senate, or designee;
       ``(iv) the Ranking Member of the Committee on Homeland 
     Security and Governmental Affairs of the Senate, or designee;
       ``(v) the Chairman of the Committee on Homeland Security of 
     the House of Representatives, or designee;
       ``(vi) the Ranking Member of the Committee on Homeland 
     Security of the House of Representatives, or designee;
       ``(vii) the Secretary of Health and Human Services, or 
     designee;
       ``(viii) the Secretary of Defense, or designee;
       ``(ix) the Secretary of Education, or designee;
       ``(x) the Secretary of Transportation, or designee;
       ``(xi) the Director of the Federal Bureau of Investigation, 
     or designee;
       ``(xii) 4 persons, who shall be appointed by the Secretary 
     for 2-year terms to represent State and local governments; 
     and
       ``(xiii) 4 persons, who shall be appointed by the Secretary 
     for 2-year terms to represent first responders.
       ``(B) Prohibition.--Any person described under subparagraph 
     (A), whose membership on the Board would create a conflict of 
     interest, shall not serve as a member of the Board.
       ``(C) Vacancies.--If a member of the Board dies or resigns 
     from office, the official who designated the member shall 
     designate a successor for the unexpired portion of the term.
       ``(3) Duties.--
       ``(A) Academy visits.--The Board shall visit the Academy 
     not less than annually, and may, with the approval of the 
     Secretary, make other visits to the Academy in connection 
     with the duties of the Board or to consult with the Executive 
     Director of the Academy.
       ``(B) Inquiries.--The Board shall inquire into the 
     curriculum, instruction, physical equipment, fiscal affairs, 
     academic methods, student body composition, and other matters 
     relating to the Academy that the Board decides to consider.
       ``(C) Reports.--
       ``(i) Annual report.--Not later than 60 days after each 
     annual visit, the Board shall submit a written report to the 
     Secretary, which describes its action, and of its views and 
     recommendations pertaining to the Academy.
       ``(ii) Additional reports.--Any report of a visit, other 
     than the annual visit, shall, if approved by a majority of 
     the members of the Board, be submitted to the Secretary not 
     later than 60 days after the approval.
       ``(4) Travel expenses.--The members of the Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Board.
       ``(d) Reports to Congress.--
       ``(1) Curriculum and attendance.--The Secretary shall 
     submit an annual report that describes the curriculum of, and 
     enrollment at, the Academy to--
       ``(A) the Committee on Homeland Security and Governmental 
     Affairs of the Senate; and
       ``(B) the Committee on Homeland Security of the House of 
     Representatives.
       ``(2) Feasibility report.--Not later than 1 year after the 
     establishment of the Academy, the Secretary shall submit a 
     report to the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Homeland Security 
     of the House of Representatives that--
       ``(A) recommends an appropriate combination of students 
     from Federal, State, and local government and the private 
     sector, and the percentage of costs related to the education 
     of each of these student groups that should be reimbursable;
       ``(B) describes the feasibility of expanding the Academy in 
     regional offices established by the Department or other 
     government or university programs to provide ongoing 
     education and training for Federal employees with homeland 
     security responsibilities; and
       ``(C) describes the feasibility of providing education for 
     the general public through electronic learning systems.
       ``(e) National Homeland Security Education Network.--
       ``(1) Establishment.--The Executive Director of the Academy 
     shall establish a National Homeland Security Education 
     Network (referred to in this section as the `Network'), as 
     described under subsection (a)(2)(B).
       ``(2) Membership.--The Network shall be comprised of 
     representatives from Federal training and certification 
     organizations, including--
       ``(A) the National Homeland Security Academy;
       ``(B) the Office of Domestic Preparedness;
       ``(C) the National Domestic Preparedness Consortium;
       ``(D) the Center for Homeland Defense and Security at the 
     Naval Postgraduate School;
       ``(E) the Federal Law Enforcement Training Center, 
     including all schools or training and education programs 
     managed or co-located with the Center;
       ``(F) the Customs and Border Protection Academy;
       ``(G) the Border Patrol Academy;
       ``(H) the Bureau of Immigration and Customs Enforcement 
     Academy;
       ``(I) the Secret Service Academy;
       ``(J) the United States Coast Guard Academy, including all 
     schools within the jurisdiction of the Coast Guard Academy;
       ``(K) the Emergency Management Institute;
       ``(L) the Animal and Plant Health Inspection Service 
     Training Program;
       ``(M) the Federal Air Marshal Training Center;
       ``(N) the National Fire Academy; and
       ``(O) other relevant training facilities within the 
     Department.
       ``(3) Curriculum requirements.--The curriculum and course 
     work developed as part of the Network shall be incorporated 
     into the curriculum of the institutions listed under 
     paragraph (2), as appropriate, to ensure that students at 
     these institutions understand how their homeland security 
     responsibilities relate to other homeland security 
     responsibilities in the Department and other Federal, State, 
     and local agencies. The training centers and academies listed 
     under paragraph (2) shall retain their respective missions 
     and goals.
       ``(4) Semi-annual meetings.--The Executive Director and the 
     Dean of the Academic Board shall meet with the Network not 
     less than once every 6 months to--
       ``(A) discuss curriculum requirements; and
       ``(B) coordinate training activities within the Network.
       ``(5) Reports.--Not later than 2 years after the date of 
     enactment of this section, and every 2 years thereafter, the 
     Network shall submit a report to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Homeland Security of the House of 
     Representatives, which describes the Network's--
       ``(A) strategy for using advanced instructional 
     technologies;
       ``(B) plans for future improvement; and
       ``(C) success in working with other organizations in 
     achieving the goals described under subparagraphs (A) and 
     (B).''.
       (b) Technical Amendment.--Section 1(b) of the Homeland 
     Security Act of 2002 (Public Law 107-296) is amended by 
     inserting after the item relating to section 801 the 
     following:

``Sec. 802. National Homeland Security Academy.''.

     SEC. 4. STATE AND LOCAL EDUCATION AND TRAINING COORDINATOR.

       The Secretary of Homeland Security shall appoint a State 
     and Local Education and Training Coordinator to serve in the 
     Office of State and Local Government Coordination and 
     Preparedness, who shall--
       (1) serve as the primary point of contact between Federal, 
     State, and local training facilities, the National Homeland 
     Security Academy, and the Office of State and Local 
     Government Coordination and Preparedness, in order to--
       (A) maximize the ability of the Academy to identify non-
     Academy programs that meet specific training goals and are 
     crucial to the Nation's homeland security mission; and
       (B) assist the Academy and the Office of State and Local 
     Government Coordination and Preparedness in determining where 
     to direct Federal training funds; and
       (2) at least semiannually, conduct meetings with a 
     coalition of State and local education and training 
     facilities to--
       (A) allow State and local fire, rescue, and law enforcement 
     training facilities to provide input on decisions made 
     concerning the training of first responders; and
       (B) increase curriculum coordination between the Academy 
     and Federal, State, and local facilities.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out the 
     amendment made by section 3 such sums as may be necessary for 
     each of the fiscal years 2006 through 2009.

  Mrs. BOXER. Mr. President, each year Congress appropriates millions 
of dollars to institutions of higher learning that serve minority 
students. Currently, funds go to historically Black colleges and 
universities, Hispanic-serving institutions, tribally controlled

[[Page 30813]]

colleges and universities, and Alaska Native and Native Hawaiian-
serving institutions. These funds--which exceeded $890 million in 
fiscal year 2005-- help institutions provide more higher education 
opportunities for low-income minority students.
  For schools that serve a large number of low-income Asian Americans 
and Pacific Islanders, however, Federal assistance is not available. A 
need is not being served.
  Over 42 percent of Cambodian Americans, almost 35 percent of Laotian 
Americans and 25 percent of Vietnamese Americans live in poverty. And 
the graduation rates among these populations are low. Only 13.8 percent 
of Vietnamese Americans, 5.8 percent of Laotian Americans, 6.1 percent 
of Cambodian Americans, and 5.1 percent of Hmong have college degrees.
  So, today, I am introducing the Asian Americans and Pacific Islanders 
Higher Education Enhancement Act. I am pleased to be joined in this 
effort by Senator Akaka.
  This legislation creates a new Federal grant program for institutions 
where Asian and Pacific Islander students make up at least 10 percent 
of the undergraduate student body. Priority will be given based on the 
number of low-income students.
  The grants--authorized at $30 million in the first year, and such 
sums as necessary for the next 4 years--could be used for a variety of 
purposes, including outreach to secondary and elementary school 
students, curriculum development, tutoring, counseling, and student 
support services.
  Mr. President, we need to make college accessible for low-income 
Asian American students as we do for with other minority students. This 
bill is an important step toward this goal.
                                 ______
                                 
      By Mrs. BOXER (for herself and Mr. Akaka):
  S. 2160. A bill to amend the Higher Education Act of 1965 to 
authorize grants for institutions of higher education serving Asian 
Americans and Pacific Islanders; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. AKAKA. Mr. President, as a member of the Congressional Asian 
Pacific American Caucus, the only Chinese American in the U.S. Senate, 
and sole native Hawaiian in the U.S. Congress, I thank my colleague 
from California, Senator Boxer, for introducing a bill to establish 
Asian American and Pacific Islander, AAPI, Serving Institutions which 
will improve the educational opportunities available to Asian Americans 
and Pacific Islanders throughout our Nation. I am proud to stand with 
her as a cosponsor of her bill. I also commend my colleagues, 
Congressmen David Wu and Mike Honda, in the other body for working to 
advance an AAPI Serving Institution bill.
  This legislation would authorize the Department of Education to 
establish an Asian American and Pacific Islander Serving Institution 
designation under the Higher Education Act. A higher education 
institution with an AAPI undergraduate enrollment of at least 10 
percent would be eligible for grants to address and improve the 
institution's capacity to serve the AAPI community. In the Higher 
Education Act, titles III and V were established to provide aid for 
colleges and universities to expand educational opportunities for 
historically under represented and financially disadvantaged students. 
However, we need a program specifically for Asian American and Pacific 
Islander Americans. This legislation would assist in providing AAPI 
students with the equal opportunity to pursue a quality education.
  The AAPI community has made many significant contributions to our 
country, and is known as having the highest percentage of undergraduate 
and advanced degrees when compared to other racial or ethnic groups 
according to the College Board. However, as one of the most ethnically, 
culturally, and linguistically diverse groups in America, the success 
of the community as a whole masks the needs of its disparate groups who 
may not be doing so well. This is the ``model minority'' myth. In fact, 
serious challenges face Cambodian, Hmong, and Pacific Islander 
students, particularly in the acquisition of the English language.
  The AAPI population is one of the fastest growing populations in this 
country, including nearly 12 million Asian Americans and 1 million 
Pacific Islanders. Census projections show the AAPI population more 
than doubling by 2050 and comprising about 9 percent of the total U.S. 
population. As a significant part of our society, AAPIs and their 
higher education needs should be better understood and addressed, and 
the establishment of AAPI Serving Institutions would be a major step in 
the right direction for this multifaceted population.
  I urge my colleagues to join me in supporting Senator Boxer's 
legislation to enhance educational opportunities for Asian Americans 
and Pacific Islanders.
                                 ______
                                 
      By Mr. INHOFE (for himself, Mr. Domenici, Mr. Hagel, and Mr. 
        Nelson of Nebraska):
  S. 2161. A bill to amend the Safe Drinking Water Act to prevent the 
enforcement of certain national primary drinking water regulations 
unless sufficient funding is available or variance technology has been 
identified; to the Committee on Environment and Public Works.
  Mr. INHOFE. Mr. President, I rise today to introduce The Small System 
Drinking Water Act of 2005 to assist water systems throughout the 
country comply with the numerous Federal drinking water standards. My 
bill will require the Federal Government to live up to its obligations 
and require the EPA to use all of the tools given the Agency in the 
1996 Safe Drinking Water Act amendments (SDWA).
  In Oklahoma we continue to have municipalities struggling with the 
arsenic rule. Further nearly 80 percent of our small systems, those 
serving less than 10,000 people, are not in compliance with the 
Disinfection Byproducts (DBP) Stage I rule. In EPA's most recent 
drinking water needs survey, Oklahoma identified $4.5 billion in 
infrastructure needs over the next 20 years. $40 million a year of that 
need is to meet Federal drinking water standards. This does not include 
costs imposed by Oklahoma communities to meet Federal clean water 
requirements.
  The EPA on December 15th finalized the Disinfection Byproducts Stage 
II rule and the Long Term 2 Enhanced Surface Water Treatment Rule. The 
costs of complying with these two rules are not included in the $40 
million a year need recently identified by the State. At current 
funding rates, the State receives $8.5 million dollars for its drinking 
water revolving loan fund.
  My bill proposes a few simple steps to help systems comply with the 
rules. First, it reauthorizes the technical assistance program in the 
SDWA. The DBP Stage I rule is very complex and involves a lot of 
monitoring and testing. The other rules are equally complex in nature 
and many small systems simply do not have the expertise needed to 
implement them. If we are going to impose complicated requirements on 
systems, we need to provide them with help to implement those 
requirements. Therefore, my legislation also requires that each system 
receive the help it needs to come into compliance before an enforcement 
action can be taken.
  The bill also creates a pilot program to demonstrate new technologies 
and approaches for systems of all sizes to comply with these 
complicated rules. It requires the EPA to convene a working group to 
examine the science behind the rules compared to new developments since 
their publication.
  Section 1412(b)(4)(E) of the SDWA Amendments of 1996 authorizes the 
use of point of entry treatment, point of use treatment and package 
plants to economically meet the requirements of the Act. However, to 
date, these approaches are not widely used by small water systems. My 
legislation directs the EPA to convene a working group to identify 
barriers to the use of these approaches. The EPA will then use the 
recommendations of the working group to draft a model guidance document 
that states can use to create their own programs.
  This legislation seeks to provide communities with more tools in 
order

[[Page 30814]]

to comply with these Federal requirements while also requiring EPA to 
use the tools it has been provided, including the identification of 
variance technologies.
                                 ______
                                 
      By Ms. SNOWE:
  S. 2162. A bill to foster local development by facilitating the 
delivery of financial assistance to small businesses, and for other 
purposes; to the Committee on Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, I rise today to introduce the ``Local 
Development Business Loan Program Act of 2005.'' This bill will improve 
the Small Business Administration's (SBA) Certified Development Company 
Loan Program, also known as the ``504 Loan Program,'' by streamlining 
the lending process and providing small businesses with greater 
opportunities to obtain affordable financing. The 504 Loan Program 
provides small businesses with long-term, fixed-rate financing for real 
estate and machinery.
  As Chair of the Senate Committee on Small Business and 
Entrepreneurship, one of my primary responsibilities is to ensure small 
businesses are afforded the best possible environment to grow and 
flourish. The fundamental purpose of the SBA is to maintain and 
strengthen the nation's economy by aiding, counseling, assisting, and 
protecting the interests of small business concerns. This bill would 
strengthen the SBA's ability to pursue those goals.
  The legislation responds to one of the primary needs of small 
businesses: access to affordable capital. For many small businesses, 
expansion plans face constraints imposed by facilities that are too 
small, or equipment that has insufficient capacity or outdated 
features. These small businesses often lack capital to remedy these 
needs, and without the SBA they would be limited to obtaining short-
term financing with higher, often variable, rates. As a result, the 504 
loan program is a key element of these small businesses' eventual 
success, because the program provides long-term capital, at fixed 
rates, that allows businesses to obtain new facilities, expand existing 
facilities, and update their machinery.
  In Fiscal Year 2004, the SBA's financing programs, combined, 
supported over $20 billion in loans and venture capital for small 
businesses. In the 504 program alone, small businesses obtained 8,357 
loans in 2004. Through those loans the SBA guaranteed over $4 billion 
in financing. The SBA portion of each 504 program loan is only 40 
percent of the total loan size. This program thus produced 
approximately $10 billion in financing for small businesses in 2004! 
That financing allowed small businesses to create or retain 140,000 
jobs in 2004.
  Although the 504 program is already assisting entrepreneurial small 
businesses throughout the nation, it can be improved. The program works 
by combining in each financing package provided to a small business a 
loan from a Certified Development Company (CDC) that is guaranteed by 
the SBA, this is 40 percent of the total package; a non-guaranteed loan 
provided by a private ``first-mortgage'' lender, 50 percent of the 
total package; and a 10 percent down-payment provided by the small 
business. This bill offers improvements to all three aspects of the 
program, to increase the program's efficiency and impact. If approved 
by the Congress and signed into law, this bill will increase the number 
of small businesses that can utilize the program to grow and succeed.
  Job creation and retention is a bedrock element of local development 
efforts throughout the country. One of the statutory purposes of the 
504 loan program is to create new jobs and to help small businesses 
retain existing jobs. This bill's purpose is to further strengthen the 
local development impact of the 504 loan program. To reflect that, the 
bill re-names the 504 loan program as the ``Local Development Business 
Loan Program'' (Local Development Program). This new name will also 
help borrowers to understand the intent of the program; many small 
business owners had commented to the Committee that the name ``504 
program'' was neither clear nor indicative of the program's purposes. 
The bill will not require the SBA to waste money by discarding existing 
program materials that refer to the previous name; the SBA may continue 
to use those materials, but it will use the new name on any new 
materials produced after the bill's enactment.
  If the Local Development Program continues to grow at its recent 
pace, it may exceed $6 billion in guaranteed loans during 2006. The 
bill would authorize a maximum program level of $8 billion in 
guaranteed loans in fiscal year 2007, and $8.5 billion for fiscal year 
2008.
  This legislation will also reduce regulatory barriers that have 
constrained CDCs from expanding their operations into new areas. By 
increasing competitive opportunities for CDCs, the bill seeks to 
increase the number and qualify of financing options available to small 
businesses. For instance, existing SBA regulations require CDCs to have 
a separate loan committee for each State and to account for all revenue 
and expenses separately for each state. Regulations of this type have 
made compliance both costly and difficult and have deterred many CDCs 
from expanding into new areas. Simplifying these regulations will 
result in increased access to capital for small business.
  The bill allows borrowers to provide more than the required minimum 
amount of equity when initiating their loan, and to use the excess 
equity to reduce the amount of the first-lien mortgage made by a 
private lender in the program. By contributing a larger down-payment at 
the onset of the loan, this provision will provide an opportunity for 
these borrowers to reduce their periodic payment obligations.
  This legislation would also designate Local Development Program loans 
that qualify under the New Markets Tax Credit Program as a public 
policy goal under the Local Development Program, and thus make them 
eligible for larger financing packages. The New Market Tax Credit 
Program permits taxpayers to receive a credit against Federal income 
taxes for making qualified equity investments in designated Community 
Development Entities.
  The Act will also permit the ownership interest of two or more small 
business owners to be combined to determine whether the small business 
is 51 percent owned by minorities, women, or veterans in order to 
qualify as a business eligible for a public policy loan. The Act's goal 
of improving access to capital for small businesses is also furthered 
by another provision that permits Local Development Program borrowers 
to obtain financing in the maximum amount permitted under this program 
and also under the SBA's ``7(a) loan program.''
  This legislation would also allow a borrower to refinance a limited 
amount of existing debt. The amount that could be refinanced could not 
exceed 50 percent of the expansion project funded by the loan, and 
would be limited to certain situations. By giving these small 
businesses the opportunity to refinance and obtain lower-cost capital, 
the bill would provide them a greater chance to succeed.
  The bill would also eliminate a fee now imposed on the first mortgage 
lenders, private banks, in a Local Development Program financing 
package. The lender's fee is a one-time fee equal to 0.5 percent of the 
first mortgage loan. Currently, the first mortgage lenders pass this 
fee on to CDCs and to borrowers. The bill will not increase the total 
fees paid by the CDCs or the borrowers, but clarifies that the CDC's 
stipulated annual fee would be increased by 0.06 percent, 6/100ths of 
one percent, and the borrower's stipulated fee would increase by 
approximately 0.06 percent, to replace the fees currently imposed on 
CDCs and borrowers by private lenders. In other words, instead of a fee 
imposed on CDCs and borrowers by the private lenders, which is not 
always clearly identifiable to those outside the program, this 
provision will specify the fee be paid directly by the CDCs and 
borrowers. It is hoped that this provision will clarify the fee 
obligations owed within the program, and will clearly identify to banks 
the total costs of participating in the program.

[[Page 30815]]

  The SBA's current 504 Program provides our Nation's small businesses 
with low-cost, long-term financing that is absolutely critical to 
starting and developing a successful business. In turn, small 
businesses create the majority of new jobs created in the United 
States. This program, re-named as the Local Development Business Loan 
Program, will continue to help small businesses create jobs and support 
their local communities. In fact, the provisions in this bill will 
improve those efforts significantly.
  Mr. President, 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. 2162

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

     SECTION 1. SHORT TITLE; DEFINITION.

       (a) Short Title.--This Act may be cited as the ``Local 
     Development Business Loan Program Act of 2005''.
       (b) Definition.--In this Act, the term ``Administrator'' 
     means the Administrator of the Small Business Administration.

     SEC. 2. DEVELOPMENT COMPANY LOAN PROGRAMS.

       (a) Title of Program.--Title V of the Small Business 
     Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 511. PROGRAM TITLE.

       ``The programs authorized by this title shall be known as 
     the `Local Development Business Loan Program'.''.
       (b) Existing Materials.--The Administrator may use 
     informational materials created, or that were in the process 
     of being created, before the date of enactment of this Act 
     that do not refer to a program under title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.) as 
     the ``Local Development Business Loan Program''.
       (c) New Materials.--Any informational materials created by 
     the Administrator on or after the date of enactment of this 
     Act shall refer to any program under title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.) as 
     the ``Local Development Business Loan Program''.

     SEC. 3. PROGRAM AUTHORIZATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by adding at the end the following:
       ``(f) Fiscal Year 2007.--For the program authorized under 
     section 7(a)(13) of this Act and the Local Development 
     Business Loan Program under the Small Business Investment Act 
     of 1958, the Administrator is authorized to make 
     $8,000,000,000 in financings, and there are authorized to be 
     appropriated to the Administrator such sums as may be 
     necessary to carry out such programs.
       ``(g) Fiscal Year 2008.--For the program authorized under 
     section 7(a)(13) of this Act and the Local Development 
     Business Loan Program under the Small Business Investment Act 
     of 1958, the Administrator is authorized to make 
     $8,500,000,000 in financings, and there are authorized to be 
     appropriated to the Administrator such sums as may be 
     necessary to carry out such programs.''.

     SEC. 4. LOAN LIQUIDATIONS.

       Section 510 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697g) is amended--
       (1) by redesignating subsection (e) as subsection (g); and
       (2) by inserting after subsection (d) the following:
       ``(e) Participation.--
       ``(1) In general.--Any qualified State or local development 
     company which elects not to apply for authority to foreclose 
     and liquidate defaulted loans under this section, or which 
     the Administrator determines to be ineligible for such 
     authority, shall contract with a qualified third-party to 
     perform foreclosure and liquidation of defaulted loans in its 
     portfolio. The contract shall be contingent upon approval by 
     the Administrator with respect to the qualifications of the 
     contractor and the terms and conditions of liquidation 
     activities.
       ``(2) Commencement.--The provisions of this subsection 
     shall not require any development company to liquidate 
     defaulted loans until the Administrator has adopted and 
     implemented a program to compensate and reimburse development 
     companies, as provided under subsection (f).
       ``(f) Compensation and Reimbursement.--
       ``(1) Reimbursement of expenses.--The Administrator shall 
     reimburse each qualified State or local development company 
     for all expenses paid by such company as part of the 
     foreclosure and liquidation activities, if the expenses--
       ``(A) were approved in advance by the Administrator, either 
     specifically or generally; or
       ``(B) were incurred by the development company on an 
     emergency basis without prior approval from the 
     Administrator, if the Administrator determines that the 
     expenses were reasonable and appropriate.
       ``(2) Compensation for results.--The Administrator shall 
     develop a schedule to compensate and provide an incentive to 
     qualified State or local development companies that foreclose 
     and liquidate defaulted loans. The schedule shall be based on 
     a percentage of the net amount recovered, but shall not 
     exceed a maximum amount. The schedule shall not apply to any 
     foreclosure which is conducted pursuant to a contract between 
     a development company and a qualified third party to perform 
     the foreclosure and liquidation.''.

     SEC. 5. ADDITIONAL EQUITY INJECTIONS.

       Section 502(3)(B)(ii) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 696(3)(B)(ii)) is amended to read as 
     follows:
       ``(ii) Funding from institutions.--If a small business 
     concern--

       ``(I) provides the minimum contribution required under 
     subparagraph (C), not less than 50 percent of the total cost 
     of any project financed under clause (i), (ii), or (iii) of 
     subparagraph (C) shall come from the institutions described 
     in subclauses (I), (II), and (III) of clause (i); and
       ``(II) provides more than the minimum contribution required 
     under subparagraph (C), any excess contribution may be used 
     to reduce the amount required from the institutions described 
     in subclauses (I), (II), and (III) of clause (i), except that 
     the amount from such institutions may not be reduced to an 
     amount that is less than the amount of the loan made by the 
     Administrator.''.

     SEC. 6. BUSINESSES IN LOW-INCOME AREAS.

       Section 501(d)(3)(A) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 695(d)(3)(A)) is amended by inserting 
     after ``business district revitalization,'' the following: 
     ``or expansion of businesses in low-income communities which 
     would be eligible for a new markets tax credit pursuant to 
     section 45D(a) of the Internal Revenue Code of 1986, or 
     implementing regulations issued thereunder,''.

     SEC. 7. COMBINATIONS OF CERTAIN GOALS.

       Section 501(e) of the Small Business Investment Act of 1958 
     (15 U.S.C. 695(e)) is amended by adding at the end the 
     following:
       ``(7) A small business concern that is unconditionally 
     owned by more than 1 individual, or a corporation, the stock 
     of which is owned by more than 1 individual, shall be deemed 
     to have achieved a public policy goal required under 
     subsection (d)(3) if a combined ownership share of not less 
     than 51 percent is held by individuals who are in 1 of the 
     groups described in subparagraph (C) or (E) of subsection 
     (d)(3).''.

     SEC. 8. MAXIMUM 504 AND 7(A) LOAN ELIGIBILITY.

       Section 502(2) of the Small Business Investment Act of 1958 
     (15 U.S.C. 696(2)) is amended by adding at the end the 
     following:
       ``(C) Combination financing.--Notwithstanding any other 
     provision of law, financing under this title may be provided 
     to a borrower in the maximum amount provided in this 
     subsection, and a loan guarantee under section 7(a) of the 
     Small Business Act may be provided to the same borrower in 
     the maximum amount provided in section 7(a)(3)(A) of such 
     Act, to the extent that the borrower otherwise qualifies for 
     such assistance.''.

     SEC. 9. REFINANCING.

       Section 502 of the Small Business Investment Act of 1958 
     (15 U.S.C. 696) is amended by adding at the end the 
     following:
       ``(7) Permissible debt refinancing.--
       ``(A) In general.--Any financing approved under this title 
     may include a limited amount of debt refinancing.
       ``(B) Expansions.--If the project involves expansion of a 
     small business concern which has existing indebtedness 
     collateralized by fixed assets, any amount of existing 
     indebtedness that does not exceed \1/2\ of the project cost 
     of the expansion may be refinanced and added to the expansion 
     cost, providing that--
       ``(i) the proceeds of the indebtedness were used to acquire 
     land, including a building situated thereon, to construct a 
     building thereon, or to purchase equipment;
       ``(ii) the borrower has been current on all payments due on 
     the existing debt for at least the preceding year; and
       ``(iii) the financing under section 504 will provide better 
     terms or rate of interest than exists on the debt at the time 
     of refinancing.''.

     SEC. 10. FEES.

       (a) In General.--Section 503(d) of the Small Business 
     Investment Act of l958 (15 U.S.C. 697(d)) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraph (3) as paragraph (2); and
       (3) in paragraph (2), as so redesignated, by striking 
     ``0.125 percent'' and inserting ``0.185 percent''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect and apply to loans under section 503(d) of 
     the Small Business Investment Act of l958 (15 U.S.C. 697(d)) 
     approved on or after 30 days after the date of enactment of 
     this Act.

     SEC. 11. TECHNICAL CORRECTION.

       Section 501(e)(2) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(e)(2)) is amended by striking 
     ``outstanding''.

     SEC. 12. SBIA DEFINITIONS.

       Section 103 of the Small Business Investment Act of 1958 
     (15 U.S.C. 662) is amended--
       (1) by striking paragraph (6) and inserting the following:
       ``(6) the term `development company' means an entity 
     incorporated under State

[[Page 30816]]

     law with the authority to promote and assist the growth and 
     development of small business concerns in the areas in which 
     it is authorized to operate by the Administrator;'';
       (2) in paragraph (16), by striking ``and'' at the end;
       (3) in paragraph (17), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(18) the term `certified development company' means a 
     development company that the Administrator has certified 
     meets the criteria of section 506.''.

     SEC. 13. REPEAL OF SUNSET ON RESERVE REQUIREMENTS FOR PREMIER 
                   CERTIFIED LENDERS.

       Section 508(c)(6)(B) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 697e(c)(6)(B)) is amended--
       (1) in the heading, by striking ``Temporary reduction'' and 
     inserting ``Reduction''; and
       (2) by striking ``Notwithstanding subparagraph (A), during 
     the 2-year period beginning on the date that is 90 days after 
     the date of enactment of this subparagraph, the'' and 
     inserting ``The''.

     SEC. 14. ELIGIBILITY OF DEVELOPMENT COMPANIES TO BE 
                   DESIGNATED AS CERTIFIED DEVELOPMENT COMPANIES 
                   AND AUTHORITY TO ISSUE DEBENTURES; AND 
                   PROVIDING AN AREA OF OPERATIONAL AUTHORITY, 
                   FUNDING RESTRICTIONS, AND ETHICAL REQUIREMENTS.

       Section 506 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697c) is amended--
       (1) in the heading, by striking ``RESTRICTIONS ON 
     DEVELOPMENT COMPANY ASSISTANCE'' and inserting ``CERTIFIED 
     DEVELOPMENT COMPANIES''; and
       (2) by inserting before ``Notwithstanding any other 
     provision of law'' the following:
       ``(a) Authority to Issue Debentures.--A development company 
     may issue debentures under this title if the Administrator 
     certifies that the company meets the following criteria:
       ``(1) Size.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the development company shall be a small business concern 
     with fewer than 500 employees, and shall not be under the 
     control of any entity that does not meet the size standards 
     established by the Administrator for a small business 
     concern.
       ``(B) Exception.--Any development company that was 
     certified by the Administrator before December 31, 2005, may 
     continue to issue debentures under this title.
       ``(2) Purpose.--A primary purpose of the development 
     company shall be to benefit the community by fostering 
     economic development to create and preserve jobs and 
     stimulate private investment.
       ``(3) Primary function.--A primary function of the 
     development company shall be to accomplish its purpose by 
     providing long term financing to small business concerns 
     under the Local Development Business Loan Program. The 
     development company may also provide or support other local 
     economic development activities to assist the community.
       ``(4) Nonprofit status.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the development company shall be a nonprofit corporation.
       ``(B) Exception.--A development company certified by the 
     Administrator before January 1, 1987, may continue to issue 
     debentures under this title and retain its status as a for-
     profit enterprise.
       ``(5) Good standing.--The development company--
       ``(A) shall be in good standing in the State in which such 
     company is incorporated and in any other State in which it 
     conducts business; and
       ``(B) shall be in compliance with all laws, including 
     taxation requirements, in the State in which such company is 
     incorporated and in any other State in which it conducts 
     business.
       ``(6) Membership of development company.--There shall be--
       ``(A) not fewer than 25 members of the development company 
     (or owners or stockholders, if the corporation is a for-
     profit entity) none of whom may own or control more than 10 
     percent of the voting membership of the company; and
       ``(B) at least 1 member of the development company (none of 
     whom is in a position to control the development company) 
     from each of the following:
       ``(i) Government organizations that are responsible for 
     economic development.
       ``(ii) Financial institutions that provide commercial long 
     term fixed asset financing.
       ``(iii) Community organizations that are dedicated to 
     economic development.
       ``(iv) Businesses.
       ``(7) Board of directors.--
       ``(A) In general.--The development company shall have a 
     board of directors.
       ``(B) Members of board.--Each member of the board of 
     directors shall be--
       ``(i) a member of the development company; and
       ``(ii) elected by a majority of the members of the 
     development company.
       ``(C) Representation of organizations and institutions.--
       ``(i) In general.--There shall be at least 1 member of the 
     board of directors from not fewer than 3 of the 4 
     organizations and institutions described in paragraph (6)(B), 
     none of whom is in a position to control the development 
     company.
       ``(ii) Maximum percentage.--Not more than 50 percent of the 
     members of the board of directors shall be from any 1 of the 
     organizations and institutions described in paragraph (6)(B).
       ``(D) Meetings.--The board of directors of the development 
     company shall meet on a regular basis to make policy 
     decisions for such company.
       ``(8) Professional management and staff.--
       ``(A) In general.--The development company shall have full-
     time professional management, including a chief executive 
     officer to manage daily operations and a full-time 
     professional staff qualified to market the Local Development 
     Business Loan Program and handle all aspects of loan approval 
     and servicing, including liquidation, if appropriate.
       ``(B) Independent management and operation.--Except as 
     provided in paragraph (9), the development company shall be 
     independently managed and operated to pursue the economic 
     development purpose of the company and shall employ directly 
     the chief executive officer.
       ``(9) Management and operation exceptions.--
       ``(A) Affiliation.--A development company may be an 
     affiliate of another local nonprofit service corporation 
     (other than a development company), a purpose of which is to 
     support economic development in the area in which the 
     development company operates.
       ``(B) Staffing.--A development company may satisfy the 
     requirement for full-time professional staff under paragraph 
     (8)(A) by contracting for the required staffing with--
       ``(i) a local nonprofit service corporation;
       ``(ii) a nonprofit affiliate of a local nonprofit service 
     corporation;
       ``(iii) an entity wholly or partially operated by a 
     governmental agency; or
       ``(iv) another entity approved by the Administration.
       ``(C) Directors.--A development company and a local 
     nonprofit service corporation with which it is affiliated may 
     have in common some, but not all, members of their respective 
     board of directors.
       ``(D) Rural areas.--A development company in a rural area 
     may satisfy the requirements of a full-time professional 
     staff and professional management ability under paragraph 
     (8)(A) by contracting for such services with another 
     certified development company that--
       ``(i) has such staff and management ability; and
       ``(ii) is located in the same State as the development 
     company or in a State that is contiguous to the State in 
     which the development company is located.
       ``(E) Previously certified.--A development company that, on 
     or before December 31, 2005, was certified by the 
     Administrator and had contracted with a for-profit company to 
     provide staffing and management services, may continue to do 
     so.
       ``(b) Use of Excess Funds.--Any funds generated by a 
     certified development company from making loans under section 
     503 or 504 that remain unexpended after payment of staff, 
     operating, and overhead expenses shall be retained by the 
     certified development company as a reserve for--
       ``(1) future operations;
       ``(2) expanding the area in which the certified development 
     company operates through the methods authorized by this Act; 
     or
       ``(3) investment in other local economic development 
     activity in the State from which such funds were generated.
       ``(c) Ethical Requirements.--
       ``(1) In general.--A certified development company and the 
     officers, employees, and other staff of the company shall at 
     all times act ethically and avoid activities which constitute 
     a conflict of interest or appear to constitute a conflict of 
     interest.
       ``(2) Prohibited conflict in project loans.--
       ``(A) In general.--No certified development company may--
       ``(i) recommend or approve a guarantee of a debenture by 
     the Administrator under the Local Business Development Loan 
     Program that is collateralized by a second lien position on 
     the property being constructed or acquired; and
       ``(ii) provide, or be affiliated with a corporation or 
     other entity which provides, financing collateralized by a 
     first lien on the same property.
       ``(B) Exception.--During the 2-year period beginning on the 
     date of enactment of this subsection, a certified development 
     company that was participating as a first mortgage lender for 
     the Local Business Development Loan Program in either of 
     fiscal years 2004 or 2005 may continue to do so.
       ``(3) Other economic development activities.--It shall not 
     be a conflict of interest for a certified development company 
     to operate multiple programs to assist small business 
     concerns as part of carrying out its economic development 
     purpose.
       ``(d) Multistate Operations.--
       ``(1) Authorization.--Notwithstanding any other provision 
     of law, the Administrator shall permit a certified 
     development company to make loans in any State that is 
     contiguous to the State of incorporation of that certified 
     development company, only if such company--

[[Page 30817]]

       ``(A) is--
       ``(i) an accredited lender under section 507; or
       ``(ii) a premier certified lender under section 508;
       ``(B) has a membership that contains not fewer than 25 
     members from each State in which the company makes loans;
       ``(C) has a board of directors that contains not fewer than 
     1 member from each State in which the company makes loans; 
     and
       ``(D) maintains not fewer than 1 loan committee, which 
     shall have not fewer than 1 member from each State in which 
     the company makes loans; and
       ``(E) submits to the Administrator, in writing--
       ``(i) a notice of the intention of the company to make 
     loans in multiple States;
       ``(ii) the names of the States in which the company intends 
     to make loans;
       ``(iii) a detailed statement of how the company will comply 
     with this paragraph, including a list of the members 
     described in subparagraph (B).
       ``(2) Review.--The Administrator shall verify whether a 
     certified development company satisfies the requirements of 
     paragraph (1) on an expedited basis and, not later than 30 
     days after the date on which the Administrator receives the 
     statement described in paragraph (1)(E)(iii), the 
     Administrator shall determine whether such company satisfies 
     such criteria and provide notice to such company.
       ``(3) Loan committee participation.--For any loan made by a 
     company described in paragraph (1), not fewer than 1 member 
     of the loan committee from the State in which the loan is to 
     be made shall participate in the review of such loan.
       ``(4) Aggregate accounting.--A company described in 
     paragraph (1) may maintain an aggregate accounting of all 
     revenue and expenses of the company for purposes of this 
     title.
       ``(5) Directors.--Notwithstanding any other provision of 
     law, a person may serve on the board of directors, but not as 
     an officer, of more than 1 certified development company if 
     none of the certified development companies on which the 
     person serves as a member of the board of directors are 
     located or operate in the same area.
       ``(6) Local job creation requirements.--Any certified 
     development company making loans in multiple States shall 
     satisfy any applicable job creation or retention requirements 
     separately for each such State. Such a company shall not 
     count jobs created or retained in 1 State towards any 
     applicable job creation or retention requirement in another 
     State.
       ``(7) Contiguous states.--For purposes of this subsection, 
     the States of Alaska and Hawaii shall be deemed to be 
     contiguous to any State abutting the Pacific ocean.
       ``(e) Restrictions on Development Company Assistance.--''.

     SEC. 15. CONFORMING AMENDMENTS.

       Section 503 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697) is amended--
       (1) in subsection (a)(1), by striking ``qualified State or 
     local development company'' and inserting ``certified 
     development company''; and
       (2) by striking subsection (e) and inserting the following:
       ``(e) Section 7(a) Loans.--Notwithstanding any other 
     provision of law, a certified development company is 
     authorized to prepare applications for deferred participation 
     loans under section 7(a) of the Small Business Act, to 
     service such loans, and to charge a reasonable fee for 
     servicing such loans.''.

     SEC. 16. CLOSING COSTS.

       Section 503(b) of the Small Business Investment Act of 1958 
     (15 U.S.C. 697(b)) is amended by striking paragraph (4) and 
     inserting the following:
       ``(4) the aggregate amount of such debenture does not 
     exceed the amount of the loans to be made from the proceeds 
     of such debenture plus, at the election of the borrower, 
     other amounts attributable to the administrative and closing 
     costs of such loans, except for the attorney fees of the 
     borrower;''.

     SEC. 17. DEFINITION OF RURAL.

       Section 501 of the Small Business Investment Act of 1958 
     (15 U.S.C. 695) is amended by adding at the end the 
     following:
       ``(f) As used in this title, the term `rural' shall include 
     any area that is not--
       ``(1) a city or town that has a population greater than 
     50,000 inhabitants; or
       ``(2) the urbanized area contiguous and adjacent to a city 
     or town described in paragraph (1).''.

     SEC. 18. REGULATIONS AND EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), the 
     Administrator shall--
       (1) publish proposed rules to implement this Act and the 
     amendments made by this Act not later than 120 days after the 
     date of enactment of this Act; and
       (2) publish such rules in final form not later than 120 
     days after the date of publication under paragraph (1).
       (b) Multistate Operations.--As soon as is practicable after 
     the date of enactment of this Act, the Administrator shall 
     promulgate regulations to implement section 506(d) of the 
     Small Business Investment Act of 1958, as added by section 14 
     of this Act. Such regulations shall become effective not 
     later than 120 days after the date of enactment of this Act.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2) and 
     section 10(b), this Act and the amendments made by this Act 
     shall become effective 240 days after the date of enactment 
     of this Act, regardless of whether the Administrator has 
     promulgated the regulations required under subsection (a).
       (2) Multistate operations.--Section 506(d) of the Small 
     Business Investment Act of 1958, as added by section 14 of 
     this Act, shall become effective 120 days after the date of 
     enactment of this Act, regardless of whether the 
     Administrator has promulgated the regulations required under 
     subsection (b).
                                 ______
                                 
      By Mr. KERRY:
  S. 2163. A bill to amend titles 10 and 38 of the United States Code, 
to increase and index educational benefits for veterans under the 
Montgomery GI bill to ensure adequate and equitable benefits for active 
duty members and members of the selected Reserve, and to include 
certain servicemembers previously excluded from such benefits; to the 
Committee on Veterans' Affairs.
  Mr. KERRY. Mr. President, the original GI Bill of 1944 was intended 
to help veterans readjust to civilian life, and to recognize the 
service they provided to their country. Subsequent GI Bills, including 
the one in force today, have been important tools to recruit the 
world's best troops.
  The GI Bill is meant ``to help meet, in part, the expenses of such 
individual's subsistence, tuition, fees, supplies, books, equipment, 
and other educational costs.'' At certain points historically the 
payment has met over 100 percent of these costs.
  Yet, today's troops, performing with such distinction in Iraq, 
Afghanistan, and other locations around the world, are returning home 
to a GI Bill that covers only 63 percent of the average price of a 
public four-year secondary education.
  Veterans are struggling to make up the difference in the price of 
their education.
  We have heard of a 28-year-old Navy veteran who served two 
deployments in the Persian Gulf between 1996 and 2002. When he went to 
school he had to supplement his GI Bill benefits by working part-time 
as a bartender and taking out tens of thousands of dollars in emergency 
loans.
  We've heard of a veteran who served 4 years in the airborne infantry 
prior to enrolling in a local community college in California under the 
GI Bill. He has been able to make ends meet at the community college by 
subsidizing his GI Bill benefits through part time work, but he worries 
that he will be unable to fulfill his dream of finishing up at UC Davis 
because his benefits and part time job will not cover the higher costs 
at the 4-year public secondary institution.
  But not all veterans are in a position where they can worry only 
about their education. Almost 60 percent of enlisted men and women are 
married today, compared with 40 percent in 1973. These veterans are 
faced with choosing to borrow in order to invest for the future or take 
care of their family now.
  We know of veterans who have lost that fight. One was unable to come 
up with the remaining third of the cost of his education and support 
his wife and baby daughter. His wife had convinced him to use his GI 
Bill benefits, but for this young veteran, ``the benefit just didn't 
match up to the cost of living'' and he dropped out of school after 
only one semester.
  Over the past 10 years, less than 10 percent of eligible veterans who 
signed up for the GI Bill from 1985 to 1994 used their entire 
educational benefit, although 70 percent have used some portion of it.
  The legislation I introduce today is the start of an effort to help 
veterans meet the everincreasing costs of education. It is only a 
start. I recognize that the cost of this proposal has to be addressed 
for the legislation to advance. Toward this end, Senator Ensign and I 
have written to the Veterans' Affairs Committee seeking reauthorization 
of a reporting requirement that will inform this process. And I plan to 
work with my colleagues in the coming months to find a solution that 
meets the needs of America's veterans.
  We know that improving GI Bill benefits isn't just about saying thank 
you.

[[Page 30818]]

It is critical to recruiting the world's finest military. As recently 
as 2004, a survey of active duty service members found that GI Bill 
education benefits were the primary reason individuals chose to enlist. 
We recently increased sign-up and reenlistment bonuses for members of 
the military. The GI Bill must increase too.
  This legislation, the Armed Forces Education Benefits Improvement 
Act, would increase GI Bill educational benefits to cover the average 
price of a 4-year secondary education. According to the most recent 
report by the U.S. Department of Education, an average public 4-year 
education cost $14,260 in 2004-05, compared with the $9,036 provided 
under the current GI Bill for the same time period.
  The Armed Forces Education Benefits Improvement Act would also 
provide for real growth in future benefits that keep paces with the 
ever increasing cost of education. The bill would index the increased 
benefit to the ``college tuition and fees'' component of the Consumer 
Price Index. Currently, the increasing cost of education is out-pacing 
growth in GI Bill benefits, which are indexed to the less rapidly 
growing overall inflation.
  This legislation would also increase the base amount provided for 
members of the Selected Reserve by approximately 59 percent. And it 
maintains the same ratio in the FY05 Defense Authorization Act for 
those members of the Selected Reserve called up to active duty for at 
least 90 days.
  Finally, the Armed Forces Education Benefits Improvement Act would 
open' enrollment for updated Montgomery GI bill benefits to certain 
active duty service members who declined to accept the Veterans 
Education Assistance Program, VEAP, offered between January 1, 1977 and 
June 30, 1985. These veterans are the only group of active duty service 
members--other than service academy graduates and recipients of certain 
ROTC scholarships--who have not been able to sign up for GI Bill 
educational benefits.
  I am pleased that this legislation has been endorsed by the Military 
Officers Association of America and the Reserve Enlisted Association.
  I know my colleagues are as inspired as I am by the dedication, 
courage, and honor of the soldiers, sailors, airmen, and Marines we 
meet around the world. They serve with a selfless devotion to their 
country and their mission--and we are all so very proud of them. The 
least that we can do is ensure the GI Bill education benefits keep pace 
with the cost of education in this country. I look forward to working 
with my colleagues over the coming months to bring this legislation to 
fruition.
  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. 2163

       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 ``Armed Forces Education 
     Benefits Improvement Act''.

     SEC. 2. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL 
                   ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR 
                   ACTIVE DUTY MEMBERS.

       (a) In General.--Section 3015 of title 38, United States 
     Code, is amended--
       (1) in subsection (a), by amending paragraph (1) to read as 
     follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis--
       ``(A) $1,584 per month for months during fiscal year 2005; 
     and
       ``(B) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     paragraph for the previous fiscal year multiplied by the 
     percentage increase calculated under subsection (h); or'';
       (2) in subsection (b), by amending paragraph (1) to read as 
     follows:
       ``(1) for an approved program of education pursued on a 
     full-time basis--
       ``(A) $1,267 per month for months during fiscal year 2005; 
     and
       ``(B) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     paragraph for the previous fiscal year multiplied by the 
     percentage increase calculated under subsection (h); or''; 
     and
       (3) in subsection (h)(1), by striking ``all items'' and 
     inserting ``college tuition and fees''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the first month 
     beginning after the date of enactment of this Act.

     SEC. 3. ANALYSIS OF IMPACT OF MONTGOMERY GI BILL EDUCATIONAL 
                   BENEFITS.

       (a) Findings.--Congress finds that--
       (1) the enhanced educational benefits provided under the 
     Ronald W. Reagan National Defense Authorization Act for 
     Fiscal Year 2005 are an important step in ensuring that 
     members of the Selected Reserve are thanked for their 
     increasing role in the modern warfare; and
       (2) when these members return from extended tours in Iraq, 
     Afghanistan, and other places, they should be provided with 
     immediate access to these enhanced educational benefits.
       (b) Cooperation.--The Secretary of Defense shall work 
     expeditiously with the Secretary of Veterans Affairs to 
     ensure that members of the Selected Reserve receive the 
     educational benefits referred to in subsection (a) in a 
     timely manner.
       (c) Studies.--
       (1) Secretary of defense.--The Secretary of Defense shall 
     conduct a study analyzing the effect of all Montgomery GI 
     bill educational benefits on recruitment and retention during 
     the 12-month period beginning on the date on which the 
     enhanced benefits referred to in subsection (a) become 
     available.
       (2) Secretary of veterans affairs.--The Secretary of 
     Veterans Affairs shall conduct a study analyzing the effect 
     of all Montgomery GI bill educational benefits on the 
     readjustment of veterans eligible for educational benefits 
     under section 3015 of title 38, United States Code, and 
     chapters 1606 and 1607 of title 10, United States Code, 
     during the 12-month period beginning on the date on which the 
     enhanced benefits referred to in subsection (a) become 
     available.
       (3) Report.--Not later than 18 months after the date on 
     which the enhanced benefits referred to in subsection (a) 
     become available, the Secretary of Defense and the Secretary 
     of Veterans Affairs shall submit a report on the results of 
     the studies conducted under paragraphs (1) and (2) to--
       (A) the Committee on Armed Services of the Senate;
       (B) the Committee on Armed Services of the House of 
     Representatives;
       (C) the Committee on Veterans' Affairs of the Senate; and
       (D) the Committee on Veterans' Affairs of the House of 
     Representatives.

     SEC. 4. ADJUSTMENT AND ANNUAL DETERMINATION OF EDUCATIONAL 
                   ASSISTANCE UNDER THE MONTGOMERY GI BILL FOR 
                   CERTAIN MEMBERS OF THE SELECTED RESERVE.

       (a) Increase in Rates.--Section 16131(b) of title 10, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) by striking ``at the following rates:'' and inserting 
     ``--''; and
       (B) by striking subparagraphs (A) through (C) and inserting 
     the following:
       ``(A) for a program of education pursued on a full-time 
     basis--
       ``(i) $475 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2);
       ``(B) for a program of education pursued on a three-
     quarter-time basis--
       ``(i) $356 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2);
       ``(C) for a program of education pursued on a half-time 
     basis--
       ``(i) $238 per month for months during fiscal year 2005; 
     and
       ``(ii) for months during fiscal year 2006 and each 
     subsequent fiscal year, the monthly amount under this 
     subparagraph for the previous fiscal year multiplied by the 
     percentage increase calculated under paragraph (2); and''; 
     and
       (2) in paragraph (2)--
       (A) by inserting ``beginning on or after October 1, 2005'' 
     after ``With respect to any fiscal year''; and
       (B) in subparagraph (A), by striking ``all items'' and 
     inserting ``college tuition and fees''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the first month 
     beginning after the date of enactment of this Act.

     SEC. 5. OPPORTUNITY FOR CERTAIN ACTIVE-DUTY PERSONNEL TO 
                   ENROLL UNDER THE MONTGOMERY GI BILL.

       (a) In General.--Chapter 30 of title 38, United States 
     Code, is amended by inserting after section 3018C the 
     following:

     ``Sec. 3018D. Opportunity for certain active-duty personnel 
       to enroll

       ``(a)(1) Notwithstanding any other provision of this 
     chapter, during the 1-year period beginning on the date of 
     enactment of this section, a qualified individual (described 
     in subsection (b)) may make an irrevocable

[[Page 30819]]

     election under this section to receive basic educational 
     assistance under this chapter.
       ``(2) The Secretary of each military department shall 
     provide for procedures for a qualified individual to make an 
     irrevocable election under this section in accordance with 
     regulations prescribed by the Secretary of Defense for the 
     purpose of carrying out this section or which the Secretary 
     of Homeland Security shall provide for such purpose with 
     respect to the Coast Guard when it is not operating as a 
     service in the Navy.
       ``(b) A qualified individual referred to in subsection (a) 
     is an individual who meets each of the following 
     requirements:
       ``(1) The individual first became a member of the Armed 
     Forces or first served on active duty as a member of the 
     Armed Forces before July 1, 1985.
       ``(2) The individual--
       ``(A) has served on active duty without a break in service 
     since the date the individual first became such a member or 
     first served on active duty as such a member; and
       ``(B) continues to serve on active duty for some or all of 
     the 1-year period described in subsection (a).
       ``(3) The individual, before applying for benefits under 
     this section--
       ``(A) completed the requirements of a secondary school 
     diploma (or equivalency certificate); or
       ``(B) has successfully completed (or otherwise received 
     academic credit for) the equivalent of 12 semester hours in a 
     program of education leading to a standard college degree.
       ``(4) The individual, when discharged or released from 
     active duty, is discharged or released therefrom with an 
     honorable discharge.
       ``(c)(1) Subject to paragraph (2), with respect to a 
     qualified individual who elects under this section to receive 
     basic educational assistance under this chapter--
       ``(A) the basic pay of the qualified individual shall be 
     reduced (in a manner determined by the Secretary concerned) 
     until the total amount by which such basic pay is reduced is 
     $1,200; and
       ``(B) to the extent that basic pay is not reduced under 
     subparagraph (A) before the qualified individual's discharge 
     or release from active duty, an amount equal to the 
     difference between $1,200 and the total amount of reductions 
     under subparagraph (A), which shall be paid into the Treasury 
     of the United States as miscellaneous receipts, shall, at the 
     election of the qualified individual, be--
       ``(i) collected from the qualified individual by the 
     Secretary concerned; or
       ``(ii) withheld from the retired or retainer pay of the 
     qualified individual by the Secretary concerned.
       ``(2)(A) The Secretary concerned shall provide for an 18-
     month period, beginning on the date the qualified individual 
     makes an election under this section, for the qualified 
     individual to pay that Secretary the amount due under 
     paragraph (1).
       ``(B) Nothing in subparagraph (A) shall be construed as 
     modifying the period of eligibility for and entitlement to 
     basic educational assistance under this chapter applicable 
     under section 3031 of this title.
       ``(d) With respect to qualified individuals referred to in 
     subsection (c)(1)(B), no amount of educational assistance 
     allowance under this chapter shall be paid to the qualified 
     individual until the earlier of the date on which--
       ``(1) the Secretary concerned collects the applicable 
     amount under subsection (c)(1)(B)(i); or
       ``(2) the retired or retainer pay of the qualified 
     individual is first reduced under subsection (c)(1)(B)(ii).
       ``(e) The Secretary, in conjunction with the Secretary of 
     Defense, shall provide for notice of the opportunity under 
     this section to elect to become entitled to basic educational 
     assistance under this chapter.''.
       (b) Conforming Amendments.--Section 3017(b)(1) of title 38, 
     United States Code, is amended--
       (1) in subparagraphs (A) and (C), by striking ``or 
     3018C(e)'' and inserting ``3018C(e), or 3018D(c)''; and
       (2) in subparagraph (B), by inserting ``or 3018D(c)'' after 
     ``under section 3018C(e)''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 30 of title 38, United States Code, is 
     amended by inserting after the item relating to section 3018C 
     the following:

``3018D. Opportunity for certain active-duty personnel to enroll.''.
                                 ______
                                 
      By Mr. LOTT (for himself and Mr. Dodd):
  S. 2166. A bill to direct the Election Assistance Commission to make 
grants to States to restore and replace election administration 
supplies, materials, records, equipment, and technology which were 
damaged, destroyed, or dislocated as a result of Hurricane Katrina or 
Hurricane Rita; to the Committee on Rules and Administration.
  Mr. LOTT. Mr. President, I rise today to introduce the Hurricane 
Election Relief Act of 2005. I thank my friend Senator Dodd--the 
ranking member of the committee I chair, the Senate Committee on Rules 
and Administration--for joining me in sponsoring this important 
legislation.
  It has now been over three months since Hurricanes Katrina and Rita 
wreaked havoc throughout the gulf coast region, leaving almost 
unimaginable wreckage and destruction in their wakes. The good people 
in the region have suffered a terrible toll in terms of lives lost and 
property destroyed. Though their plight no longer dominates the 
headlines, the difficulties and hardships that these individuals 
continue to confront on a daily basis remain formidable. However, one 
thing that gulf coast residents should not have to face in the 
aftermath of the hurricanes is an impediment to their ability to fully 
participate in our Nation's democracy. The right to vote must not 
become a further casualty of Hurricanes Katrina and Rita.
  The hurricane-related damage to election infrastructure was extensive 
throughout my home State of Mississippi as well as Louisiana and other 
gulf States. Voting equipment was destroyed; voter records were lost; 
polling places were leveled. If this infrastructure is not restored in 
a timely manner, the voting rights of thousands of citizens in the 
region will be substantially impaired. This is not acceptable.
  But replacing damaged and destroyed election equipment and technology 
is not the only election-related challenge these States face. Thousands 
and thousands of individuals were forced to evacuate their homes and 
their communities and relocate to other areas and, in some instances, 
other States. Large numbers of these displaced individuals will not be 
able to return to their homes anytime soon. Consequently, if these 
citizens are going to participate in the upcoming elections that will 
shape the rebuilding efforts in their communities, they will have to do 
so largely by means of absentee ballots. This increased demand for 
absentee ballots will, in turn, present significant logistical 
challenges for localities that are already cash-strapped and struggling 
to recover in the aftermath of Hurricanes Katrina and Rita. Therefore, 
to ensure that gulf coast residents remain fully enfranchised, it is 
essential that the impacted States receive sufficient resources to 
restore their election infrastructure to pre-hurricane levels.
  For this reason, I am proud to introduce today the Hurricane Election 
Relief Act of 2005, which provides much needed funds to the States that 
bore the brunt of Hurricanes Katrina and Rita to aid them in rebuilding 
election infrastructure that was damaged or destroyed. Specifically, 
the Hurricane Election Relief Act authorizes $50 million in grants to 
be distributed by the Election Assistance Commission, EAC, to assist 
affected States in restoring and replacing supplies, materials, 
records, equipment, and technology used in administering Federal 
elections that were damaged, destroyed, or dislocated as a result of 
the hurricanes. The act also permits the authorized funds to be used to 
ensure the full electoral participation of displaced individuals. Thus, 
State and local election officials could use monies furnished by the 
act to offset the costs associated with printing and processing voter 
registration and absentee ballot materials for displaced voters. 
Finally, the use of the funds provided under this act would have to be 
consistent with the requirements of Title III of the Help America Vote 
Act of 2002.
  Much work remains to be done to help the communities impacted by 
Hurricanes Katrina and Rita get back on their feet. I realize this fact 
more than most. Thus, it is my hope that my fellow Senators will 
enthusiastically support this important legislation, which will ensure 
that those individuals in my home State as well as those in the 
surrounding States whose lives were thrown into such turmoil as a 
result of the hurricanes will retain their ability to fully exercise 
their right to vote.
  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:

[[Page 30820]]



                                S. 2166

       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 ``Hurricane Election Relief 
     Act of 2005''.

     SEC. 2. GRANTS TO STATES FOR RESTORING AND REPLACING ELECTION 
                   ADMINISTRATION SUPPLIES, MATERIALS, RECORDS, 
                   EQUIPMENT, AND TECHNOLOGY WHICH WERE DAMAGED, 
                   DESTROYED, OR DISLOCATED BY HURRICANES KATRINA 
                   OR RITA.

       (a) Authority to Make Grants.--The Election Assistance 
     Commission shall make a grant to each eligible State, in such 
     amount as the Commission considers appropriate, for purposes 
     of restoring and replacing supplies, materials, records, 
     equipment, and technology used in the administration of 
     Federal elections in the State which were damaged, destroyed, 
     or dislocated as a result of Hurricane Katrina or Hurricane 
     Rita and ensuring the full participation in such elections by 
     individuals who were displaced as a result of Hurricane 
     Katrina or Hurricane Rita.
       (b) Use of Grant Funds.--Funds received under a grant under 
     subsection (a) shall be used in a manner that is consistent 
     with the requirements of title III of the Help America Vote 
     Act of 2002.
       (c) Eligibility.--A State is eligible to receive a grant 
     under this section if it submits to the Commission (at such 
     time and in such form as the Commission may require) a 
     certification that--
       (1) supplies, materials, records, equipment, and technology 
     used in the administration of Federal elections in the State 
     were damaged, destroyed, or dislocated as a result of 
     Hurricane Katrina or Hurricane Rita; or
       (2) the system of such State for conducting Federal 
     elections has been significantly impacted by the displacement 
     of individuals as a result of Hurricane Katrina or Hurricane 
     Rita.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for fiscal year 
     2006 for grants under this Act $50,000,000, to remain 
     available until expended.

  Mr. DODD. Mr. President, nearly three months have passed since 
Hurricanes Katrina and Rita ravaged the lives of the good people of our 
Gulf Coast region. Congress has taken great efforts to address the 
immediate needs of those affected by the hurricanes and continues to 
consider how we can assist the long-term needs of these communities. I 
previously came to the floor with the distinguished Chairman of the 
Senate Rules Committee, Senator Lott, to discuss the needs for funding 
to restore the elections infrastructure of the impacted States, 
including not just those directly hit by the storms but also States 
that welcomed and provided shelter to those displaced by the storms.
  As the ranking member of the Rules Committee, I rise today to 
introduce with Senator Lott, the Hurricane Election Relief Act of 2005, 
a bill that authorizes the necessary funding to impacted States for the 
purpose of ensuring that they will be capable of conducting the up-
coming Federal elections next year, consistent with the Help America 
Vote Act ("HAVA'). This bill will ensure that impacted States will be 
able to strengthen the foundation of our democracy and the process by 
which we build communities. Specifically, this bill provides funding to 
States to restore and replace supplies, materials, records, equipment 
and technology that were damaged, destroyed, or dislocated as result of 
the storms. The Election Assistance Commission (EAC) is charged with 
distribution of the appropriate funding to the States.
  Earlier this month, Louisiana Secretary of State Al Ater postponed 
for up to eight months the elections for mayor and City Council in New 
Orleans from the scheduled February 4, 2006 date, after explaining that 
the infrastructure to hold an election is simply absent. Secretary of 
State Alter noted that polling places must be rebuilt, voting systems 
must be repaired, poll workers must be located, and a system to process 
the anticipated increase in absentee ballots must be developed. 
Following the storms, Ater requested $2 million from the Federal 
Emergency Management Agency (FEMA) solely to repair voting machines. To 
date, he has not received any of the requested funds and there does not 
yet appear to be a projected FEMA disbursement date for such funds.
  Mississippi Secretary of State Eric Clark surveyed the 43 counties 
affected by the storms in his State and announced that in order to 
facilitate elections without long lines, Mississippi needs $3.3 million 
to replace 966 voting machines as well as additional funding to assure 
that the counties meet the HAVA requirements effective January 1, 2006.
  In light of the above, it is essential that we rise and join together 
to ensure that all States, including those States impacted by the 
hurricanes, may conduct timely Federal elections that enable every 
eligible voter to cast a vote and have that vote counted, regardless of 
race, ethnicity, language, age, disability or community resources. The 
health of our democracy depends upon it.
  As we approach the end of the first session of the 109th Congress and 
prepare to return to the comfort of our families and constituents, let 
us give thanks for the well-being of our communities and provide the 
authority to allocate funding to those States which are rebuilding 
their communities in the aftermath of these devastating natural 
disasters.
                                 ______
                                 
      By Ms. SNOWE (for herself and Mr. Nelson of Florida):
  S. 2168. A bill to amend title XVIII of the Social Security Act to 
provide extended and additional protections to Medicare beneficiaries 
enrolled under part C or D or such title; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce the Medicare Drug 
Benefit Protections Act of 2005 with my colleague, Senator Bill Nelson. 
Our bill provides additional protections for Medicare beneficiaries 
enrolling in the new Medicare Part D prescription drug benefit, 
protections which we believe are essential. Our bill extends the 
initial enrollment period for the new benefit until the end of 2006, 
provides more flexibility for beneficiaries to change plans, and adds 
crucial protections for those enrolled in a plan.
  We are now in the midst of the rollout of the new Medicare drug 
benefit, and, as of November 15, seniors and individuals with 
disabilities on Medicare have begun enrolling in various plans. 
Unfortunately, many seniors are confused and angry, frustrated and 
concerned that they do not have adequate information about the plans 
being offered. Seniors may ultimately decide not to enroll in a plan if 
they do not have enough expert assistance--readily available and 
accessible--to help them choose an appropriate plan. To make matters 
worse, many say the information available from the Centers for Medicare 
and Medicaid Services, CMS, the agency overseeing the plan, is either 
not helpful or simply overwhelming.
  Beneficiaries are worried they could make a poor choice in selecting 
a plan and that, once enrolled, the drugs offered by the plan they 
choose may not be the drugs they need. We must assure them that they 
will not be saddled with monthly premiums for plans which, in the end, 
do not adequately cover their prescription drug needs.
  Our bill would address these concerns in several ways. The bill 
includes two provisions from Senator Nelson's bill, the Medicare 
Informed Choice Act of 2005, which give beneficiaries additional 
protection. The bill extends the initial six-month period for enrolling 
in a plan from May 15, 2006, to December 31, 2006, thus delaying late 
enrollment penalties until 2007 and giving beneficiaries the rest of 
this year and all of next year to decide whether to enroll in a plan. 
Once beneficiaries have enrolled in a plan, the bill provides a one-
time opportunity during 2006 to change to another plan without penalty, 
should they wish to do so.
  The Medicare Drug Benefit Protections Act includes additional 
safeguards, as well. Seniors are getting misinformation from the CMS 
website, especially in regard to the cost of drugs being offered by 
certain plans. Seniors in my home State of Maine have experienced 
serious problems with inaccurate drug pricing information being 
provided by the CMS website devoted to the new Medicare Part D plans, 
www.medicare.gov. In one instance, the CMS website quoted one price for 
a senior's drug costs for 2006 but the plan itself quoted a cost of 
approximately

[[Page 30821]]

$2,000 more than the CMS website. Under our bill, beneficiaries could 
change plans without penalty if they relied on misinformation from CMS 
to their detriment.
  Beneficiaries would also be allowed to change plans without penalty 
should their circumstances change significantly, due to medical 
reasons, for example. Beneficiaries who meet these criteria would have 
an extended period of time to change plans, a minimum of four months 
rather than the current 90 days. The bill would also extend the annual 
open season, as of 2007, from November 15th through December 31st, to a 
full two months, from November 1st through December 31st, in order to 
allow all beneficiaries more time outside the busy and travel-filled 
holiday season to study and compare plans should they wish to make a 
change.
  Finally, our bill authorizes $25 million in funding for grants to 
States, non-profit organizations, and other entities to conduct 
additional education and outreach efforts on the drug benefit during 
fiscal years 2007 and 2008.
  Our goal is to ensure that beneficiaries have sufficient time, 
comfort, and peace of mind to understand the new drug benefit and 
enroll in a plan well-suited to their needs so they can derive the 
much-needed assistance with their prescription drugs offered by these 
plans. We must provide flexibility, safeguards, and outreach efforts 
beyond what currently exists to reduce the anxiety and frustration that 
too many seniors are experiencing today.
  The new Medicare drug benefit is the first comprehensive outpatient 
prescription drug benefit in the 40-year history of Medicare. The 
benefit is not perfect by any means, but rather a beginning. I will 
continue working to improve this benefit so that it will truly deliver 
the assistance that our seniors so desperately need and deserve to 
have.
                                 ______
                                 
      By Mr. FRIST (for himself, Mr. Biden, and Mr. Lugar):
  S. 2170. A bill to provide for global pathogen surveillance and 
response; read twice.
  Mr. FRIST. Mr. President, 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. 2170

       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 ``Global Pathogen Surveillance 
     Act of 2005''.

     SEC. 2. FINDINGS; PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) The frequency of the occurrence of biological events 
     that could threaten the national security of the United 
     States has increased and is likely increasing. The threat to 
     the United States from such events includes threats from 
     diseases that infect humans, animals, or plants regardless of 
     if such diseases are introduced naturally, accidentally, or 
     intentionally.
       (2) The United States lacks an effective and real-time 
     system to detect, identify, contain, and respond to global 
     threats and also lacks an effective mechanism to disseminate 
     information to the national response community if such 
     threats arise.
       (3) Bioterrorism poses a grave national security threat to 
     the United States. The insidious nature of a bioterrorist 
     attack, the likelihood that the recognition of such an attack 
     would be delayed, and the underpreparedness of the domestic 
     public health infrastructure to respond to such an attack 
     could result in catastrophic consequences following a 
     biological weapons attack against the United States.
       (4) The ability to recognize that a country or organization 
     is carrying out a covert biological weapons programs is 
     dependent on a number of indications and warnings. A critical 
     component of this recognition is the timely detection of 
     sentinel events such as laboratory accidents and community-
     level outbreaks that could be the earliest indication of an 
     emerging bioterrorist program in a foreign country. Early 
     detection of such events may enable earlier 
     counterproliferation intervention.
       (5) A contagious pathogen engineered as a biological weapon 
     and developed, tested, produced, or released in a foreign 
     country could quickly spread to the United States. 
     Considering the realities of international travel, trade, and 
     migration patterns, a dangerous pathogen appearing naturally, 
     accidentally, or intentionally anywhere in the world can 
     spread to the United States in a matter of days, before any 
     effective quarantine or isolation measures could be 
     implemented.
       (6) To combat bioterrorism effectively and ensure that the 
     United States is fully prepared to prevent, recognize, and 
     contain a biological weapons attack, or emerging infectious 
     disease, measures to strengthen the domestic public health 
     infrastructure and improve domestic event detection, 
     surveillance, and response, while absolutely essential, are 
     not sufficient.
       (7) The United States should enhance cooperation with the 
     World Health Organization, regional international health 
     organizations, and individual countries, including data 
     sharing with appropriate agencies and departments of the 
     United States, to help detect and quickly contain infectious 
     disease outbreaks or a bioterrorism agent before such a 
     disease or agent is spread.
       (8) The World Health Organization has done an impressive 
     job in monitoring infectious disease outbreaks around the 
     world, particularly with the establishment in April 2000 of 
     the Global Outbreak Alert and Response Network.
       (9) The capabilities of the World Health Organization 
     depend on the quality of the data and information the 
     Organization receives from the countries that are members of 
     the Organization and is further limited by the narrow list of 
     diseases (such as plague, cholera, and yellow fever) on which 
     such surveillance and monitoring is based and by the 
     consensus process used by the Organization to add new 
     diseases to the list. Developing countries, in particular, 
     often are unable to devote the necessary resources to build 
     and maintain public health infrastructures.
       (10) In particular, developing countries could benefit 
     from--
       (A) better trained public health professionals and 
     epidemiologists to recognize disease patterns;
       (B) appropriate laboratory equipment for diagnosis of 
     pathogens;
       (C) disease reporting systems that--
       (i) are based on disease and syndrome surveillance; and
       (ii) could enable an effective response to a biological 
     event to begin at the earliest possible opportunity;
       (D) a narrowing of the existing technology gap in disease 
     and syndrome surveillance capabilities, based on reported 
     symptoms, and real-time information dissemination to public 
     health officials; and
       (E) appropriate communications equipment and information 
     technology to efficiently transmit information and data 
     within national, international regional, and international 
     health networks, including inexpensive, Internet-based 
     Geographic Information Systems (GIS) and relevant telephone-
     based systems for early recognition and diagnosis of 
     diseases.
       (11) An effective international capability to detect, 
     monitor, and quickly diagnose infectious disease outbreaks 
     will offer dividends not only in the event of biological 
     weapons development, testing, production, and attack, but 
     also in the more likely cases of naturally occurring 
     infectious disease outbreaks that could threaten the United 
     States. Furthermore, a robust surveillance system will serve 
     to deter, prevent, or contain terrorist use of biological 
     weapons, mitigating the intended effects of such malevolent 
     uses.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To provide the United States with an effective and 
     real-time system to detect biological threats that--
       (A) utilizes classified and unclassified information to 
     detect such threats; and
       (B) may be utilized by the human or the agricultural 
     domestic disease response community.
       (2) To enhance the capability of the international 
     community, through the World Health Organization and 
     individual countries, to detect, identify, and contain 
     infectious disease outbreaks, whether the cause of those 
     outbreaks is intentional human action or natural in origin.
       (3) To enhance the training of public health professionals 
     and epidemiologists from eligible developing countries in 
     advanced Internet-based disease and syndrome surveillance 
     systems, in addition to traditional epidemiology methods, so 
     that such professionals and epidemiologists may better 
     detect, diagnose, and contain infectious disease outbreaks, 
     especially such outbreaks caused by the pathogens that may be 
     likely to be used in a biological weapons attack.
       (4) To provide assistance to developing countries to 
     purchase appropriate communications equipment and information 
     technology to detect, analyze, and report biological threats, 
     including--
       (A) relevant computer equipment, Internet connectivity 
     mechanisms, and telephone-based applications to effectively 
     gather, analyze, and transmit public health information for 
     infectious disease surveillance and diagnosis; and
       (B) appropriate computer equipment and Internet 
     connectivity mechanisms--
       (i) to facilitate the exchange of Geographic Information 
     Systems-based disease and syndrome surveillance information; 
     and
       (ii) to effectively gather, analyze, and transmit public 
     health information for infectious disease surveillance and 
     diagnosis.

[[Page 30822]]

       (5) To make available greater numbers of public health 
     professionals who are employed by the Government of the 
     United States to international regional and international 
     health organizations, international regional and 
     international health networks, and United States diplomatic 
     missions, as appropriate.
       (6) To expand the training and outreach activities of 
     United States laboratories located in foreign countries, 
     including the Centers for Disease Control and Prevention or 
     Department of Defense laboratories, to enhance the public 
     health capabilities of developing countries.
       (7) To provide appropriate technical assistance to existing 
     international regional and international health networks and, 
     as appropriate, seed money for new international regional and 
     international networks.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible developing country.--The term ``eligible 
     developing country'' means any developing country that--
       (A) has agreed to the objective of fully complying with 
     requirements of the World Health Organization on reporting 
     public health information on outbreaks of infectious 
     diseases;
       (B) has not been determined by the Secretary, for purposes 
     of section 40 of the Arms Export Control Act (22 U.S.C. 
     2780), section 620A of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2371), or section 6(j) of the Export Administration 
     Act of 1979 (as in effect pursuant to the International 
     Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), to 
     have repeatedly provided support for acts of international 
     terrorism, unless the Secretary exercises a waiver certifying 
     that it is in the national interest of the United States to 
     provide assistance under the provisions of this Act; and
       (C) is a party to the Convention on the Prohibition of the 
     Development, Production and Stockpiling of Bacteriological 
     (Biological) and Toxin Weapons and on Their Destruction, done 
     at Washington, London, and Moscow April 10, 1972 (26 UST 
     583).
       (2) Eligible national.--The term ``eligible national'' 
     means any citizen or national of an eligible developing 
     country who--
       (A) does not have a criminal background;
       (B) is not on any immigration or other United States watch 
     list; and
       (C) is not affiliated with any foreign terrorist 
     organization.
       (3) International health organization.--The term 
     ``international health organization'' includes the World 
     Health Organization, regional offices of the World Health 
     Organization, and international health organizations, such as 
     the Pan American Health Organization.
       (4) Laboratory.--The term ``laboratory'' means a facility 
     for the biological, microbiological, serological, chemical, 
     immuno-hematological, hematological, biophysical, 
     cytological, pathological, or other medical examination of 
     materials derived from the human body for the purpose of 
     providing information for the diagnosis, prevention, or 
     treatment of any disease or impairment of, or the assessment 
     of the health of, human beings.
       (5) Secretary.--Unless otherwise provided, the term 
     ``Secretary'' means the Secretary of State.
       (6) Disease and syndrome surveillance.--The term ``disease 
     and syndrome surveillance'' means the recording of clinician-
     reported symptoms (patient complaints) and signs (derived 
     from physical examination and laboratory data) combined with 
     simple geographic locators to track the emergence of a 
     disease in a population.

     SEC. 4. ELIGIBILITY FOR ASSISTANCE.

       (a) In General.--Except as provided in subsection (b), 
     assistance may be provided to an eligible developing country 
     under any provision of this Act only if the government of the 
     eligible developing country--
       (1) permits personnel from the World Health Organization 
     and the Centers for Disease Control and Prevention to 
     investigate outbreaks of infectious diseases within the 
     borders of such country; and
       (2) provides pathogen surveillance data to the appropriate 
     agencies and departments of the United States and to 
     international health organizations.
       (b) Waiver.--The Secretary may waive the prohibition set 
     out in subsection (a) if the Secretary determines that it is 
     in the national interest of the United States to provide such 
     a waiver.

     SEC. 5. RESTRICTION.

       (a)  In General.--Notwithstanding any other provision of 
     this Act, no foreign national participating in a program 
     authorized under this Act shall have access, during the 
     course of such participation, to a select agent or toxin 
     described in section 73.4 of title 42, Code of Federal 
     Regulations (or any corresponding similar regulation) or an 
     overlap select agent or toxin described in section 73.5 of 
     such title (or any corresponding similar regulation) that may 
     be used as, or in, a biological weapon, except in a 
     supervised and controlled setting.
       (b) Relationship to Regulations.--The restriction set out 
     in subsection (a) may not be construed to limit the ability 
     of the Secretary of Health and Human Services to prescribe, 
     through regulation, standards for the handling of a select 
     agent or toxin or an overlap select agent or toxin described 
     in such subsection.

     SEC. 6. FELLOWSHIP PROGRAM.

       (a) Establishment.--There is established a fellowship 
     program under which the Secretary, in consultation with the 
     Secretary of Health and Human Services and subject to the 
     availability of appropriations, shall award fellowships to 
     eligible nationals to pursue public health education or 
     training, as follows:
       (1) Master of public health degree.--Graduate courses of 
     study leading to a master of public health degree with a 
     concentration in epidemiology from an institution of higher 
     education in the United States with a Center for Public 
     Health Preparedness, as determined by the Director of the 
     Centers for Disease Control and Prevention.
       (2) Advanced public health epidemiology training.--Advanced 
     public health training in epidemiology for public health 
     professionals from eligible developing countries to be 
     carried out at the Centers for Disease Control and 
     Prevention, an appropriate facility of a State, or an 
     appropriate facility of another agency or department of the 
     United States (other than a facility of the Department of 
     Defense or a national laboratory of the Department of Energy) 
     for a period of not less than 6 months or more than 12 
     months.
       (b) Specialization in Bioterrorism.--In addition to the 
     education or training specified in subsection (a), each 
     recipient of a fellowship under this section (in this section 
     referred to as a ``fellow'') may take courses of study at the 
     Centers for Disease Control and Prevention or at an 
     equivalent facility on diagnosis and containment of likely 
     bioterrorism agents.
       (c) Fellowship Agreement.--
       (1) In general.--A fellow shall enter into an agreement 
     with the Secretary under which the fellow agrees--
       (A) to maintain satisfactory academic progress, as 
     determined in accordance with regulations issued by the 
     Secretary and confirmed in regularly scheduled updates to the 
     Secretary from the institution providing the education or 
     training on the progress of the fellow's education or 
     training;
       (B) upon completion of such education or training, to 
     return to the fellow's country of nationality or last 
     habitual residence (so long as it is an eligible developing 
     country) and complete at least 4 years of employment in a 
     public health position in the government or a 
     nongovernmental, not-for-profit entity in that country or, 
     with the approval of the Secretary, complete part or all of 
     this requirement through service with an international health 
     organization without geographic restriction; and
       (C) that, if the fellow is unable to meet the requirements 
     described in subparagraph (A) or (B), the fellow shall 
     reimburse the United States for the value of the assistance 
     provided to the fellow under the fellowship program, together 
     with interest at a rate that--
       (i) is determined in accordance with regulations issued by 
     the Secretary; and
       (ii) is not higher than the rate generally applied in 
     connection with other Federal loans.
       (2) Waivers.--The Secretary may waive the application of 
     subparagraph (B) or (C) of paragraph (1) if the Secretary 
     determines that it is in the national interest of the United 
     States to provide such a waiver.
       (d) Agreement.--The Secretary, in consultation with the 
     Secretary of Health and Human Services, is authorized to 
     enter into an agreement with the government of an eligible 
     developing country under which such government agrees--
       (1) to establish a procedure for the nomination of eligible 
     nationals for fellowships under this section;
       (2) to guarantee that a fellow will be offered a 
     professional public health position within the developing 
     country upon completion of the fellow's studies; and
       (3) to submit to the Secretary a certification stating that 
     a fellow has concluded the minimum period of employment in a 
     public health position required by the fellowship agreement, 
     including an explanation of how the requirement was met.
       (e) Participation of United States Citizens.--On a case-by-
     case basis, the Secretary may provide for the participation 
     of a citizen of the United States in the fellowship program 
     under the provisions of this section if--
       (1) the Secretary determines that it is in the national 
     interest of the United States to provide for such 
     participation; and
       (2) the citizen of the United States agrees to complete, at 
     the conclusion of such participation, at least 5 years of 
     employment in a public health position in an eligible 
     developing country or at an international health 
     organization.
       (f) Use of Existing Programs.--The Secretary, with the 
     concurrence of the Secretary of Health and Human Services, 
     may elect to use existing programs of the Department of 
     Health and Human Services to provide the education and 
     training described in subsection (a) if the requirements of 
     subsections (b), (c), and (d) will be substantially met under 
     such existing programs.

     SEC. 7. IN-COUNTRY TRAINING IN LABORATORY TECHNIQUES AND 
                   DISEASE AND SYNDROME SURVEILLANCE.

       (a) Laboratory Techniques.--

[[Page 30823]]

       (1) In general.--The Secretary, after consultation with the 
     Secretary of Health and Human Services and in conjunction 
     with the Director of the Centers for Disease Control and 
     Prevention and the Secretary of Defense, and subject to the 
     availability of appropriations, shall provide assistance for 
     short training courses for eligible nationals who are 
     laboratory technicians or other public health personnel in 
     laboratory techniques relating to the identification, 
     diagnosis, and tracking of pathogens responsible for possible 
     infectious disease outbreaks.
       (2) Location.--The training described in paragraph (1) 
     shall be held outside the United States and may be conducted 
     in facilities of the Centers for Disease Control and 
     Prevention located in foreign countries or in Overseas 
     Medical Research Units of the Department of Defense, as 
     appropriate.
       (3) Coordination with existing programs.--The Secretary 
     shall coordinate the training described in paragraph (1), 
     where appropriate, with existing programs and activities of 
     international health organizations.
       (b) Disease and Syndrome Surveillance.--
       (1) In general.--The Secretary, after consultation with the 
     Secretary of Health and Human Services and in conjunction 
     with the Director of the Centers for Disease Control and 
     Prevention and the Secretary of Defense and subject to the 
     availability of appropriations, shall establish and provide 
     assistance for short training courses for eligible nationals 
     who are health care providers or other public health 
     personnel in techniques of disease and syndrome surveillance 
     reporting and rapid analysis of syndrome information using 
     Geographic Information System (GIS) tools.
       (2) Location.--The training described in paragraph (1) 
     shall be conducted via the Internet or in appropriate 
     facilities located in a foreign country, as determined by the 
     Secretary.
       (3) Coordination with existing programs.--The Secretary 
     shall coordinate the training described in paragraph (1), 
     where appropriate, with existing programs and activities of 
     international regional and international health 
     organizations.

     SEC. 8. ASSISTANCE FOR THE PURCHASE AND MAINTENANCE OF PUBLIC 
                   HEALTH LABORATORY EQUIPMENT AND SUPPLIES.

       (a) Authorization.--The President is authorized to provide, 
     on such terms and conditions as the President may determine, 
     assistance to eligible developing countries to purchase and 
     maintain the public health laboratory equipment and supplies 
     described in subsection (b).
       (b) Equipment and Supplies Covered.--The equipment and 
     supplies described in this subsection are equipment and 
     supplies that are--
       (1) appropriate, to the extent possible, for use in the 
     intended geographic area;
       (2) necessary to collect, analyze, and identify 
     expeditiously a broad array of pathogens, including mutant 
     strains, which may cause disease outbreaks or may be used in 
     a biological weapon;
       (3) compatible with general standards set forth by the 
     World Health Organization and, as appropriate, the Centers 
     for Disease Control and Prevention, to ensure 
     interoperability with international regional and 
     international public health networks; and
       (4) not defense articles, defense services, or training, as 
     such terms are defined in the Arms Export Control Act (22 
     U.S.C. 2751 et seq.).
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (as in effect pursuant to the 
     International Emergency Economic Powers Act; 50 U.S.C. 1701 
     et seq.).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of equipment or supplies that, if made in the 
     United States, would be subject to the Arms Export Control 
     Act (22 U.S.C. 2751 et seq.) or likely be barred or subject 
     to special conditions under the Export Administration Act of 
     1979 (as in effect pursuant to the International Emergency 
     Economic Powers Act; 50 U.S.C. 1701 et seq.).
       (e) Procurement Preference.--In the use of grant funds 
     authorized under subsection (a), preference should be given 
     to the purchase of equipment and supplies of United States 
     manufacture. The use of amounts appropriated to carry out 
     this section shall be subject to section 604 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2354).
       (f) Country Commitments.--The assistance provided under 
     this section for equipment and supplies may be provided only 
     if the eligible developing country that receives such 
     equipment and supplies agrees to provide the infrastructure, 
     technical personnel, and other resources required to house, 
     maintain, support, secure, and maximize use of such equipment 
     and supplies.

     SEC. 9. ASSISTANCE FOR IMPROVED COMMUNICATION OF PUBLIC 
                   HEALTH INFORMATION.

       (a) Assistance for Purchase of Communication Equipment and 
     Information Technology.--The President is authorized to 
     provide, on such terms and conditions as the President may 
     determine, assistance to eligible developing countries to 
     purchase and maintain the communications equipment and 
     information technology described in subsection (b), and the 
     supporting equipment, necessary to effectively collect, 
     analyze, and transmit public health information.
       (b) Covered Equipment.--The communications equipment and 
     information technology described in this subsection are 
     communications equipment and information technology that--
       (1) are suitable for use under the particular conditions of 
     the area of intended use;
       (2) meet the standards set forth by the World Health 
     Organization and, as appropriate, the Secretary of Health and 
     Human Services, to ensure interoperability with like 
     equipment of other countries and international organizations; 
     and
       (3) are not defense articles, defense services, or 
     training, as those terms are defined in the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.).
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (as in effect pursuant to the 
     International Emergency Economic Powers Act; 50 U.S.C. 1701 
     et seq.).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of communications equipment or information 
     technology that, if made in the United States, would be 
     subject to the Arms Export Control Act (22 U.S.C. 2751 et 
     seq.) or likely be barred or subject to special conditions 
     under the Export Administration Act of 1979 (as in effect 
     pursuant to the International Emergency Economic Powers Act; 
     50 U.S.C. 1701 et seq.).
       (e) Procurement Preference.--In the use of grant funds 
     under subsection (a), preference should be given to the 
     purchase of communications equipment and information 
     technology of United States manufacture. The use of amounts 
     appropriated to carry out this section shall be subject to 
     section 604 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2354).
       (f) Assistance for Standardization of Reporting.--The 
     President is authorized to provide, on such terms and 
     conditions as the President may determine, technical 
     assistance and grant assistance to international health 
     organizations to facilitate standardization in the reporting 
     of public health information between and among developing 
     countries and international health organizations.
       (g) Country Commitments.--The assistance provided under 
     this section for communications equipment and information 
     technology may be provided only if the eligible developing 
     country that receives such equipment and technology agrees to 
     provide the infrastructure, technical personnel, and other 
     resources required to house, maintain, support, secure, and 
     maximize use of such equipment and technology.

     SEC. 10. ASSIGNMENT OF PUBLIC HEALTH PERSONNEL TO UNITED 
                   STATES MISSIONS AND INTERNATIONAL 
                   ORGANIZATIONS.

       (a) In General.--Upon the request of the chief of a 
     diplomatic mission of the United States or of the head of an 
     international regional or international health organization, 
     and with the concurrence of the Secretary and of the employee 
     concerned, the head of an agency or department of the United 
     States may assign to the mission or the organization any 
     officer or employee of the agency or department that occupies 
     a public health position within the agency or department for 
     the purpose of enhancing disease and pathogen surveillance 
     efforts in developing countries.
       (b) Reimbursement.--The costs incurred by an agency or 
     department of the United States by reason of the detail of 
     personnel under subsection (a) may be reimbursed to that 
     agency or department out of the applicable appropriations 
     account of the Department of State if the Secretary 
     determines that the agency or department may otherwise be 
     unable to assign such personnel on a non-reimbursable basis.

     SEC. 11. EXPANSION OF CERTAIN UNITED STATES GOVERNMENT 
                   LABORATORIES ABROAD.

       (a) In General.--Subject to the availability of 
     appropriations, the Director of the Centers for Disease 
     Control and Prevention and the Secretary of Defense shall 
     each--
       (1) increase the number of personnel assigned to 
     laboratories of the Centers for Disease Control and 
     Prevention or the Department of Defense, as appropriate, 
     located in eligible developing countries that conduct 
     research and other activities with respect to infectious 
     diseases; and
       (2) expand the operations of such laboratories, especially 
     with respect to the implementation of on-site training of 
     foreign nationals and activities affecting the region in 
     which the country is located.
       (b) Cooperation and Coordination Between Laboratories.--
     Subsection (a) shall be carried out in such a manner as to 
     foster cooperation and avoid duplication between and among 
     laboratories.
       (c) Relation to Core Missions and Security.--The expansion 
     of the operations of the laboratories of the Centers for 
     Disease Control and Prevention or the Department of

[[Page 30824]]

     Defense located in foreign countries under this section may 
     not--
       (1) detract from the established core missions of the 
     laboratories; or
       (2) compromise the security of those laboratories, as well 
     as their research, equipment, expertise, and materials.

     SEC. 12. ASSISTANCE FOR INTERNATIONAL HEALTH NETWORKS AND 
                   EXPANSION OF FIELD EPIDEMIOLOGY TRAINING 
                   PROGRAMS.

       (a) Authority.--The President is authorized, on such terms 
     and conditions as the President may determine, to provide 
     assistance for the purposes of--
       (1) enhancing the surveillance and reporting capabilities 
     for the World Health Organization and existing international 
     regional and international health networks; and
       (2) developing new international regional and international 
     health networks.
       (b) Expansion of Field Epidemiology Training Programs.--The 
     Secretary of Health and Human Services is authorized to 
     establish new country or regional international Field 
     Epidemiology Training Programs in eligible developing 
     countries.

     SEC. 13. FOREIGN BIOLOGICAL THREAT DETECTION AND WARNING.

       (a) In General.--The President shall establish the Office 
     of Foreign Biological Threat Detection and Warning within 
     either the Department of Defense, the Central Intelligence 
     Agency, or the Centers for Disease Control and Prevention 
     with the technical ability to conduct event detection and 
     rapid threat assessment related to biological threats in 
     foreign countries.
       (b) Purposes.--The purposes of the Office of Foreign 
     Biological Threat Detection and Warning shall be--
       (1) to integrate public health, medical, agricultural, 
     societal, and intelligence indications and warnings to 
     identify in advance the emergence of a transnational 
     biological threat;
       (2) to provide rapid threat assessment capability to the 
     appropriate agencies or departments of the United States that 
     is not dependent on access to--
       (A) a specific biological agent;
       (B) the area in which such agent is present; or
       (C) information related to the means of introduction of 
     such agent; and
       (3) to build the information visibility and decision 
     support activities required for appropriate and timely 
     information distribution and threat response.
       (c) Technology.--The Office of Foreign Biological Threat 
     Detection and Warning shall employ technologies similar to, 
     but no less capable than, those used by the Intelligence 
     Technology Innovation Center (ITIC) within the Directorate of 
     Science and Technology of the Central Intelligence Agency to 
     conduct real-time, prospective, automated threat assessments 
     that employ social disruption factors.
       (d) Event Detection Defined.--In this section, the term 
     ``event detection'' refers to the real-time and rapid 
     recognition of a possible biological event that has appeared 
     in a community and that could have national security 
     implications, regardless of whether the event is caused by 
     natural, accidental, or intentional means and includes 
     scrutiny of such possible biological event by analysts 
     utilizing classified and unclassified information.

     SEC. 14. REPORTS.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary, in conjunction with the Secretary of 
     Health and Human Services and the Secretary of Defense, shall 
     submit to Congress a report on the implementation of programs 
     under this Act, including an estimate of the level of funding 
     required to carry out such programs at a sufficient level.

     SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--Subject to subsection 
     (c), there is authorized to be appropriated for fiscal year 
     2006 such sums as may be necessary to carry out this Act.
       (b) Availability of Funds.--The amount appropriated 
     pursuant to subsection (a) is authorized to remain available 
     until expended.
       (c) Limitation on Obligation of Funds.--Not more than 10 
     percent of the amount appropriated pursuant to subsection (a) 
     may be obligated before the date on which a report is 
     submitted, or required to be submitted, whichever first 
     occurs, under section 14.
                                 ______
                                 
      By Ms. LANDRIEU:
  S. 2171. A bill to amend the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act to reauthorize the temporary mortgage and 
rental payments program; to the Committee on Homeland Security and 
Governmental Affairs.
                                 ______
                                 
      By Ms. LANDRIEU:
  S. 2172. A bill to provide for response to Hurricane Katrina by 
establishing a Louisiana Recovery Corporation, providing for housing 
and community rebuilding, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Ms. LANDRIEU. Mr. President, I will speak just for a moment about 
each of these important measures. Before I do, I know today has been a 
long day, and it has been complicated by many procedural votes and a 
series of bills that we just passed out of here, many important bills. 
Of course, the Defense appropriations, Defense authorization bill, two 
of the major bills that Congress works on throughout the year, and it 
is important we get them through.
  On the Defense appropriations bill, as it was amended, there was a 
very important piece for the gulf coast, $29 billion direct relief 
package. I will speak just for a moment about that because it has 
bearing on what we are going to do in the future when we are faced with 
catastrophic events.
  Senator Vitter and I, my colleague from Louisiana, returned to the 
Congress over 4 months ago to try to describe to our colleagues the 
devastation that occurred with not one but two hurricanes and then 
multiple levee breaks which have devastated a major American city and a 
region, the southern part of Louisiana and Mississippi.
  I have said now on many occasions that FEMA, on its best day, is not 
adequate to address the emergency and enormous needs of the people who 
have been affected: their need for housing, their need for employment, 
their need for capital, their need for emotional security, their need 
for public infrastructure, their need for police, their need for 
firefighters, their need for health care, their need for education.
  I cannot even describe the tremendous angst, anxiety, and despair 
setting in on many communities in the gulf coast region because help 
has been slow in coming. And when it has been offered, it has been 
inadequate to address the situation we find ourselves in.
  I do not know if we have ever considered what needs to be done when 
we have a catastrophic incident such as we had. So we are going to come 
back after the recess and I hope talk about how FEMA can be 
restructured, how it can be made to be more efficient, how it can be 
made to be more accountable, how it can be made to act more quickly. 
But we are also going to need some additional tools.
  That is what the two bills address I have introduced tonight as a 
companion to a House bill that was introduced and has been worked on 
very diligently by my colleague Congressman Richard Baker from Baton 
Rouge, who is the ranking member on the Banking Committee in the House. 
He has done some excellent work on this bill and has moved it out of 
the House committee. It establishes a brand new corporation that can 
step in. It would be established by appointment by the President and by 
the Governor, with seven members, to establish a corporation that could 
then access the capital markets by issuing bonds, to step up and into 
the gulf coast area to work with our local officials, to work with the 
officials at the city level, at the parish level, to provide 
opportunities, to provide equity for homeowners who find themselves 
with homes that are uninhabitable, with mortgages that need to be paid 
and no possible way to sell their property because it is of 
questionable value, given the situation.
  We are very fortunate in America that we have not had to face these 
tragedies very often, and this is the first time we faced a tragedy of 
this magnitude. Mr. President, 275,000 homes destroyed, 10 times the 
amount of homes destroyed by Hurricane Andrew in 1992. Mr. President, 
28,000 homes were destroyed in the worst disaster before we faced Rita 
and Katrina. But with 275,000 homes destroyed, clearly, we have to do 
more than send money through FEMA.
  Money is not the only answer for the challenges before us. So we need 
new tools. That is why I have come to the Senate tonight to introduce, 
after a long day, a bill that was crafted in the House by Congressman 
Baker, amended through input from a variety of his colleagues in the 
House, input from myself and some Senators in anticipation of the bill 
moving over here, and have had a verbal commitment from Senator Shelby, 
the chairman of the Banking Committee, and very positive comments from 
Democrats on the

[[Page 30825]]

Banking Committee that we could have an expedited hearing on this bill 
when we return.
  Because even with the $29 billion in direct aid that is included in 
the Defense appropriations bill, I can promise my colleagues, to stand 
up the great city of New Orleans and the region and the gulf coast is 
going to take more than FEMA, more than direct aid through community 
development block grants and aid to our schools and universities and 
hospitals. It is going to take some new tools we are going to have to 
invent, we are going to have to place into a toolbox and then give out 
to local elected officials, to business leaders, to community 
organizations, to rebuild this great community.
  But the great opportunity is, if we can invent these tools, and we 
can design them appropriately, they will then be available for us in 
the event a catastrophe such as this or something similar strikes 
again, whether it is an earthquake in San Francisco, massive tornadoes 
in the Midwest or, God forbid, a terror strike that would decimate or 
destroy a population or vast area such as we are experiencing from a 
hurricane and levee breaks in New Orleans.
  There is all this work we can do on this housing corporation bill 
when we get back. I urge my colleagues' involvement because of the 
extraordinary need, as outlined and expressed so beautifully by Senator 
Stevens' remarks toward the end of this evening about how he was so 
emotionally taken aback by what he saw in New Orleans. I can most 
certainly understand it. Senator Vitter and I have been living that as 
we have moved through New Orleans and the region and all through south 
Louisiana, and share his view that more has to be done.
  So these two bills that I introduce--one is a companion bill to 
Congressman Baker's bill with some important, I think, improvements or 
important amendments. One is to ensure a strong local input through 
local advisory committees, appointed by parish governments and 
municipalities. Also there is an underlining or emphasis, if you will, 
that the corporation must comply with State and local planning 
ordinances and direction.
  This Senate version will also increase the potential equity recovery 
from 60 percent to 80 percent and will increase the potential cap of 
recovery from $500,000 to $750,000. We also put something in this bill 
to try to give corporate or commercial property owners some relief.
  So between the Baker bill in the House, which needs to continue to 
move through the process, and this bill which will get, hopefully, some 
expedited hearings when we return, hopefully, we can quickly put into 
the hands of our communities, our large cities, our suburban areas, our 
rural areas, and individual property owners--who have seen in the last 
4 months everything they have worked for in their life, perhaps even a 
little bit they were able to inherit, and all they hoped to pass on to 
their children or their grandchildren gone, without a whole lot of 
options for recovery--assistance.
  We have every intention to rebuild our city and to rebuild our 
region. Just as if there were an earthquake in San Francisco, I don't 
think Congress would suggest that the millions of people who live there 
should simply pick up and move to New York and abandon the city of San 
Francisco, we have no intention of abandoning the city of New Orleans. 
We may lie 5 feet below sea level, but let me assure you, there are 
places in this world that are as or more productive than this region 
that lie 20 feet below sea level and manage their water properly and 
invest in their civil works properly in a way we could model ourselves 
after and do very well.
  The city of New Orleans and the State of Louisiana have contributed 
billions of dollars to the economy of this Nation and to the general 
fund of this Nation, and we want to continue to do so. We are not 
asking for a handout but a hand up. We are not asking for charity. We 
are asking for a portion of the taxes we pay, a portion of the money we 
send to the national Government, to be redirected, to give us the 
security for our coast and our hurricane protection that we warrant and 
the industries this infrastructure protects warrant for the benefit of 
not just the 4.5 million people who live in the State of Louisiana, and 
the 3 million-plus people who live in Mississippi, but which protect 
and support the almost 300 million people who live in the United States 
of America.
  So these two bills are very important. I look forward to working on 
them when we get back.
  The second bill is a bill where we picked up an idea from the New 
York situation, 9/11--a terrible situation that is still seared into 
our memory and our collective conscience.
  There were some real problems with housing following the destruction 
of that neighborhood. This second bill I have introduced would allow 
FEMA to extend some of their rental and housing programs to give some 
immediate help to families who find themselves unable to recover their 
equity for whatever reason out of the houses they have that are 
uninhabitable but who have to find a decent place to live so they can 
rebuild and regroup. That bill will address that situation.
  Mrs. CLINTON. Mr. President, I rise today to introduce legislation 
that will help ensure beneficiaries who are eligible for both Medicare 
and Medicaid, the so-called ``dual-eligibles,'' make a smooth and 
successful transition from Medicaid prescription drug coverage to 
Medicare Part D.
  The 6.4 million seniors and disabled Americans who are dually 
eligible are the most vulnerable members of an already vulnerable 
population. They are the poorest of the elderly, with incomes of less 
than $10,000 per year. And they are the sickest of the elderly, with 
approximately 25 percent residing in a long-term care facility. They 
have significant health care needs, have often been diagnosed with 
multiple chronic conditions, and are in greatest danger of being 
affected by poor implementation of Medicare's new prescription drug 
benefit.
  On November 15, beneficiaries began signing up for Medicare Part D 
prescription drug plans, and on January 1, the drug benefit actually 
begins. But this date does not only mark the beginning of a new 
Medicare drug benefit. For the 6.4 million dual eligibles, January 1 is 
also the day that they stop receiving a Medicaid drug benefit.
  I voted against the Medicare bill when it was before the Senate in 
2003 and we are all well aware of the many flaws and shortcomings: the 
insurance company slush fund, the ``donut hole,'' the prohibition on 
the Government negotiating for lower drug costs and on the safe 
importation of prescription medications, among others.
  But the short timeframe in which dual eligibles have to complete this 
transition is one of the most worrisome.
  There are only 6 weeks between the time when seniors began signing up 
for the new drug plans, and the date when Medicaid coverage ceases. 
That means that dual eligibles--the poorest and sickest portion of the 
Medicare population--have very little time in which to accurately 
balance the benefits and drawbacks of their prescription drug plan 
choices.
  We're giving most seniors 6 months to consider their options of a 
prescription drug plan, but we're giving the most vulnerable only 6 
weeks.
  While it would be my preference that the existence of a Medicaid drug 
benefit be extended beyond January 1 to provide adequate time for the 
transition, Republicans in Congress have blocked legislation that would 
do this, leaving these individuals without coverage if their transition 
from Medicaid to Medicare doesn't happen before the end of the year.
  In response to the concern over the short implementation period, CMS 
announced that it will automatically enroll dual eligibles in a 
randomly chosen prescription drug plan by January 1, 2006.
  CMS reports that at the end of November they had automatically 
enrolled over 5 million of the 6.4 million dually eligible 
beneficiaries in a Medicare Part D plan. But this leaves more than 1 
million of our poorest and sickest vulnerable to falling through the 
cracks if they are not enrolled in a

[[Page 30826]]

Medicare Part D plan in the next several weeks.
  CMS Administrator Mark McClellan has himself said that some dual 
eligibles may not be auto-enrolled before January 1, when their 
Medicaid drug benefit ceases to exist. In fact, if CMS is able to auto-
enroll 95 percent of all dual eligibles, more than 300,000 would still 
be left without prescription drug coverage and access to critical 
medications. At 98 percent enrollment, almost 130,000 would be left 
without coverage. These are unacceptable numbers.
  In light of growing concern that some dual eligible beneficiaries 
will arrive at their pharmacy counter on January 1 without coverage, 
CMS has announced a procedure to allow pharmacies to fill the 
prescription and a contractor to follow up with the beneficiary to 
facilitate enrollment in a Part D plan.
  While I am glad that CMS has taken this step, I am concerned that 
pharmacies will not be aware of this option and some beneficiaries will 
still fall through the cracks.
  In addition, pharmacies will be charged a transaction fee if they use 
this procedure and electronically inquire about the status of a 
beneficiary that comes to their pharmacy counter and isn't sure what 
coverage they have or if they have coverage at all.
  The legislation I am introducing today aims to address this problem. 
The Medicare Dual Eligible Identification and Enrollment Facilitation 
Act would require outreach and education to pharmacies, particularly 
independent pharmacies, and a hold harmless provision for transaction 
fees that pharmacies incur when they use this procedure.
  It is critical that we do everything we can to ensure that our most 
vulnerable seniors do not fall through the cracks and the pharmacies 
across the country are now our last line of defense. Helping them help 
these beneficiaries and eliminating fees they incur for doing so are 
simple but critical steps we should take to ensure that not a single 
dual eligible beneficiary is left without prescription drug coverage.
  I urge speedy passage of the Medicare Dual Eligible Identification 
and Enrollment Facilitation Act.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Rockefeller, and Mr. Reid):
  S. 2175. A bill to require the submittal to Congress of any 
Presidential Daily Briefing relating to Iraq during the period 
beginning on January 20, 1997, and ending on March 19, 2003; to the 
Select Committee on Intelligence.
  Mr. KENNEDY. Mr. President, 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. 2175

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

     SECTION 1. SUBMITTAL TO CONGRESS OF CERTAIN PRESIDENTIAL 
                   DAILY BRIEFINGS ON IRAQ.

       (a) In General.--The Director of National Intelligence 
     shall submit to the congressional intelligence committees any 
     Presidential Daily Briefing (PDB), or any portion of a 
     Presidential Daily Briefing, of the Director of Central 
     Intelligence during the period beginning on January 20, 1997, 
     and ending on March 19, 2003, that refers to Iraq or 
     otherwise addresses Iraq in any fashion.
       (b) Congressional Intelligence Committees Defined.--In this 
     section, the term ``congressional intelligence committees'' 
     means--
       (1) the Select Committee on Intelligence of the Senate; and
       (2) the Permanent Select Committee on Intelligence of the 
     House of Representatives.

                          ____________________




                         SUBMITTED RESOLUTIONS

                                 ______
                                 

  SENATE RESOLUTION 342--RECOGNIZING THE REPUBLIC OF CROATIA FOR ITS 
 PROGRESS IN STRENGTHENING DEMOCRATIC INSTITUTIONS, RESPECT FOR HUMAN 
RIGHTS, AND THE RULE OF LAW AND RECOMMENDING THE INTEGRATION OF CROATIA 
              INTO THE NORTH ATLANTIC TREATY ORGANIZATION

  Mr. VOINOVICH (for himself, Mr. Hagel, and Mr. Biden) submitted the 
following resolution; which was considered and agreed to:

                              S. Res. 342

       Whereas the United States recognized the Republic of 
     Croatia on April 7, 1992, acknowledging the decision of the 
     people of Croatia to live in an independent, democratic, and 
     sovereign country;
       Whereas since achieving their independence, the people of 
     Croatia have dedicated themselves to building a functioning 
     democratic society, based on the rule of law, respect for 
     human rights, and a free market economy;
       Whereas Croatia has made progress in judicial reform and 
     has adopted a judicial reform strategy;
       Whereas Croatia has demonstrated a desire to protect 
     minority rights and promote a viable multiethnic society;
       Whereas, in 2002, Croatia adopted the Constitutional Law on 
     the Rights of National Minorities, ensuring the 
     representation of minorities in the Parliament of Croatia and 
     the establishment of the councils of national minorities;
       Whereas the Government of Croatia has concluded specific 
     bilateral agreements on the protection of minority rights 
     with Hungary, Italy, and Serbia and Montenegro and has 
     concluded an agreement on cooperation with representatives of 
     the Independent Democratic Serb Party in the Parliament of 
     Croatia;
       Whereas three prominent members of the Parliament of 
     Croatia, Ratko Gajica, Milorad Pupovac, and Vojislav 
     Stanimirovic, who represent the Serb minority, sent a letter 
     to the Assistant to the President for National Security 
     Affairs, Stephen Hadley, expressing their support for the 
     Prime Minister of Croatia, Ivo Sanader, and for Croatia's 
     path toward membership in the European Union and in the North 
     Atlantic Treaty Organization (``NATO'');
       Whereas Croatia has shown dedication to advancing the 
     return, reconstruction, and restitution of property in 
     Croatia;
       Whereas Croatia has proven to be a reliable partner of the 
     United States in seeking the stabilization of the region;
       Whereas Croatia participated in the Iraq International 
     Conference held in Brussels on June 22, 2005, and offered to 
     train and educate nationals of Iraq at universities in 
     Croatia;
       Whereas Croatia is taking part in the training of Iraqi 
     security forces at the International Training Center in 
     Jordan and has offered to train additional security personnel 
     for Iraq in Croatia;
       Whereas Croatia has been a partner in the war against 
     terrorism, sent troops to Afghanistan as part of the NATO-led 
     International Security Assistance Force in support of the war 
     against terrorism in 2002, and has provided civilians to 
     staff the Provincial Reconstruction Team under the leadership 
     of NATO in Fayzabad;
       Whereas, during July 2005, Croatia adopted a decision to 
     triple its military presence in the International Security 
     Assistance Force;
       Whereas Croatia has endorsed and is participating in the 
     Proliferation Security Initiative with like-minded nations 
     across the world to prevent the flow of weapons of mass 
     destruction, missile systems, and related material;
       Whereas, on June 1, 2005, Croatia was the fourth nation to 
     sign the Proliferation Security Initiative Shipboarding 
     Agreement with the United States to prevent the maritime 
     transfer of dangerous shipments of weapons or other illicit 
     materials to keep such weapons and materials out of the hands 
     of dangerous actors and terrorists;
       Whereas, since Croatia has become an independent country, 
     the United States has shown support for Croatia in many ways, 
     including by providing Croatia with economic and military 
     assistance that has contributed significantly to the progress 
     and continued success occurring in Croatia;
       Whereas the United States has encouraged Croatia's 
     transformation and the future membership of Croatia in NATO;
       Whereas a whole and free Europe cannot be fully achieved 
     without the integration into NATO of all countries that share 
     the common values of democracy, the rule of law, and respect 
     for human rights;
       Whereas the Membership Action Plan developed for NATO, 
     which was launched in April 1999, is a program of assistance 
     that provides both goals and a roadmap for countries aspiring 
     to membership in NATO;
       Whereas Croatia was invited into the Membership Action Plan 
     in May 2002 and has made substantial progress toward the 
     achievement of the reforms required for receiving an 
     invitation to start accession talks with NATO;
       Whereas the United States, Croatia, Albania, and Macedonia 
     are signatories to the United States-Adriatic Charter for 
     Partnership, which promotes Euro-Atlantic integration and 
     commits the signatory nations to the values and principles of 
     NATO and to membership in NATO at the earliest possible time;
       Whereas Croatia supports regional cooperation as a means of 
     bringing stability to Europe, particularly Southeast Europe, 
     and has cooperated with the countries that

[[Page 30827]]

     neighbor Croatia to promote such stability, including 
     providing technical and other assistance to countries that 
     seek membership in the European Union;
       Whereas, on October 3, 2005, the European Union decided to 
     open accession negotiations with Croatia based on the 
     assessment of the European Union's Council of Ministers that 
     Croatia met the political and economic criteria for candidacy 
     in the European Union, including that Croatia was fully 
     cooperating with the International Criminal Tribunal for the 
     former Yugoslavia;
       Whereas the cooperation between the Government of Croatia 
     and the Tribunal improved significantly under Prime Minister 
     Ivo Sanader;
       Whereas, since November 2003, Croatia has handed over to 
     the Tribunal eleven individuals indicted for war crimes;
       Whereas the cooperation of the Government of Croatia with 
     the Tribunal assisted in the arrest of Ante Gotovina on 
     December 8, 2005, in Spain and his transfer to the Tribunal 
     on December 10, 2005;
       Whereas the success of the Government of Croatia in 
     bringing war criminals to justice demonstrates the commitment 
     of the Government to move Croatia toward a brighter future of 
     peace, stability, and prosperity for its people; and
       Whereas Croatia shares the common interests and values of 
     the free and democratic world: Now, therefore, be it
       Resolved, That--
       (1) since the Republic of Croatia became an independent 
     country, the Government and people of Croatia have made 
     significant progress in strengthening democratic 
     institutions, respect for human rights, and the rule of law 
     in Croatia;
       (2) Croatia's membership in the North Atlantic Treaty 
     Organization (``NATO'') would contribute to stability in 
     Southeast Europe;
       (3) it is the sense of the Senate that--
       (A) the Government and people of Croatia should be 
     commended for their progress on protecting minority rights in 
     Croatia, progress toward achieving the political, economic, 
     military, and other requirements of NATO's Membership Action 
     Plan, contribution to the International Security Assistance 
     Force and the war against terrorism, and for their 
     constructive participation the Proliferation Security 
     Initiative and in the United States-Adriatic Charter;
       (B) the Government of Croatia should be commended for its 
     cooperation with the International Criminal Tribunal for the 
     former Yugoslavia which led to the apprehension and transfer 
     of several individuals indicted for war crimes, including 
     Ante Gotovina, to the Tribunal;
       (C) the Government of Croatia should continue its 
     cooperation with the Tribunal;
       (D) the Government of Croatia should continue and 
     strengthen its role as a partner on nonproliferation and its 
     support in the war against terrorism and in Iraq;
       (E) the Government of Croatia should continue its efforts 
     to implement defense reforms; and
       (F) the Government of the United States should continue and 
     increase its defense and security cooperation with the 
     Government of Croatia, including through education, training, 
     and technical cooperation, to assist Croatia in the reform 
     process and in fulfilling its requirements for membership in 
     NATO; and
       (4) upon complete satisfaction of the criteria for NATO 
     membership, in accordance with NATO's guidelines, Croatia 
     should be invited to be a full member of NATO at the earliest 
     possible date.

                          ____________________




SENATE RESOLUTION 343--EXPRESSING THE SENSE OF THE SENATE THAT THE WEEK 
 OF DECEMBER 19, 2005 SHOULD BE DESIGNATED ``THANK OUR DEFENDERS WEEK''

  Mr. SESSIONS submitted the following resolution; which was considered 
and agreed to:

                              S. Res. 343

       Whereas, ever since our Nation was founded, the members of 
     our military, Soldiers, Sailors, Airmen, Marines, Coast Guard 
     personnel, active duty, Guard, and reserve, have played a 
     critical role protecting America's vital interests and 
     spreading peace throughout the world;
       Whereas, more than 193,000 troops in the Persian Gulf 
     region are courageously fighting insurgents and helping to 
     establish democracies in Iraq and Afghanistan;
       Whereas, 19,000 servicemen and servicewomen are stationed 
     in Afghanistan, fighting Al-Qaeda and providing security for 
     the people of that fledgling nation;
       Whereas, over 30,000 troops are protecting American 
     interests and maintaining peace on the Korean peninsula;
       Whereas, in total, nearly 300,000 brave men and women are 
     actively serving on the soil of 120 foreign countries and on 
     the High Seas, fighting terrorists and making sacrifices for 
     American citizens and families; and
       Whereas, thanks to their tireless efforts, a brutal 
     dictatorship in Iraq and an oppressive regime in Afghanistan 
     have given way to emerging democratic societies: Now, 
     therefore, be it
       Resolved, That with gratitude it is the sense of the Senate 
     that the week of December 19, 2005 should be designated 
     ``Thank Our Defenders Week.''

                          ____________________




    SENATE RESOLUTION 344--EXPRESSING SUPPORT FOR THE GOVERNMENT OF 
  GEORGIA'S SOUTH OSSETIAN PEACE PLAN AND THE SUCCESSFUL AND PEACEFUL 
                REINTEGRATION OF THE REGION INTO GEORGIA

  Mr. McCAIN (for himself, Mr. Lugar, Mr. Brownback, and Mr. Reid) 
submitted the following resolution; which was considered and agreed to:

                              S. Res. 344

       Whereas during December 1991, Georgia was internationally 
     recognized as an independent and sovereign country following 
     the formal dissolution of the Union of Soviet Socialist 
     Republics;
       Whereas the United States supports the independence, 
     sovereignty, territorial integrity, and ongoing democratic 
     reform process in Georgia;
       Whereas the United States reaffirms its support for the 
     peaceful resolution of the conflict in Adjura and the 
     restoration of democracy and political stability in that 
     region of Georgia;
       Whereas as a result of a conflict from 1991 to 1992, a 
     separatist regime has enforced its rule in the Georgia 
     territory of South Ossetia, impoverishing the people living 
     in South Ossetia, militarizing the area, allowing organized 
     crime to flourish, and posing a threat to the peace and 
     security in the region;
       Whereas the Government of Georgia has announced a peace 
     plan to reach a full political settlement to the South 
     Ossetian conflict;
       Whereas the Government of Georgia has acknowledged that 
     mistakes were made in its past efforts in dealing with the 
     region of South Ossetia;
       Whereas at the 59th meeting of the United Nations General 
     Assembly, Georgian President Mikhail Saakashvili outlined 
     specific components of a peace initiative that includes 
     demilitarization, confidence building measures, and economic, 
     social, cultural, and political steps to protect the South 
     Ossetian people and their rights while reintegrating the 
     region, with significant autonomy, into Georgia;
       Whereas President Saakashvili reaffirmed the main 
     principles of the peace agreement at the Parliamentary 
     Assembly Council of Europe in January, 2005, held in 
     Strasbourg, France;
       Whereas a formal comprehensive peace proposal based on the 
     Strasbourg principles was formally proposed on October 27, 
     2005, at the Organization for Security and Co-operation in 
     Europe; and
       Whereas on December 6, 2005, at their 13th Ministerial 
     Council Meeting in Ljubljana, Slovenia, the Organization for 
     Security and Co-operation in Europe endorsed the Government 
     of Georgia's peace plan, stating, ``We welcome the steps 
     taken by the Georgian side to address the peaceful resolution 
     of the conflict and believe that the recent proposals, in 
     particular the Peace Plan built upon the initiatives of the 
     President of Georgia presented at the 59th United Nations 
     General Assembly and supported by the sides, will serve as a 
     basis for the peaceful settlement of the conflict'': Now, 
     therefore, be it
       Resolved, That the Senate--
       (1) commends the Government of Georgia for its vision and 
     determination in its efforts to resolve peacefully the 
     conflict in South Ossetia;
       (2) supports the sovereignty, independence, and territorial 
     integrity of the democratic Government of Georgia;
       (3) urges all Organization for Security and Co-operation in 
     Europe participating States to respect fully the 
     independence, sovereignty, territorial integrity of Georgia, 
     refraining from any acts constituting a threat of or use of 
     force, direct or indirect, and abiding by the principle of 
     the inviolability of frontiers;
       (4) expresses its support for the Government of Georgia's 
     plan to control peacefully and reestablish authority in the 
     region of South Ossetia, viewing it as an opportunity to 
     restore the territorial integrity of the country and to 
     protect the individual rights and democratic liberties of 
     those living in South Ossetia;
       (5) urges the United States to increase its efforts in 
     support of the peaceful reincorporation of South Ossetia to 
     Georgia, including efforts to support the greater involvement 
     of the international community, including the Russian 
     Federation, the Organization for Security and Cooperation in 
     Europe, the European Union, and international organizations 
     in the peaceful settlement of the South Ossetian conflict; 
     and
       (6) supports the ongoing democratic transformation in 
     Georgia and will continue to monitor closely the peace 
     process in South Ossetia, including the implementation by all 
     sides of their obligations under the peace plan if it is 
     accepted.

[[Page 30828]]



                          ____________________




SENATE RESOLUTION 345--RECOGNIZING THE 100TH ANNIVERSARY OF FENTON ART 
   GLASS, A BELOVED INSTITUTION IN WEST VIRGINIA, THAT CONTINUES TO 
 CONTRIBUTE TO THE ECONOMIC AND CULTURAL HERITAGE OF THE STATE THROUGH 
           ITS PRODUCTION OF WORLD RENOWNED, HAND-BLOWN GLASS

  Mr. BYRD (for himself and Mr. Rockefeller) submitted the following 
resolution; which was considered and agreed to:

                              S. Res. 345

       Whereas Fenton Art Glass rose from its humble beginnings as 
     a glass decorating company in 1905, and came to settle in 
     Williamstown, West Virginia, by opening a factory to create 
     their own glass when they were unable to obtain the glass 
     that they needed;
       Whereas, with the vision of brothers Frank and John Fenton, 
     Fenton Art Glass began to create innovative new colors and 
     established the company in the forefront of the hand-blown 
     glass industry;
       Whereas in 1907, Fenton introduced its highly colorful 
     Iridescent, or ``Carnival'' Glass, which became instantly 
     successful throughout the country and is now highly prized by 
     collectors around the world;
       Whereas during the 1930s and 1940s, Fenton addressed the 
     shortages felt by families in the United States by producing 
     mixing bowls and tableware that were often unavailable during 
     the World War II and Depression shortages;
       Whereas Fenton Art Glass is not only a family tradition, 
     with the third generation of the Fenton family now carrying 
     on the legacy, but also a West Virginia institution, 
     employing generations of workers; and
       Whereas Fenton Glass, known for its beauty and precision in 
     craftsmanship, is a symbol of the dedication and care of the 
     Fenton family, as well as the pride in craftsmanship so 
     characteristic of the West Virginia people: Now, therefore, 
     be it
       Resolved, That the Senate congratulates Fenton Art Glass on 
     its centennial milestone, for creating beautiful, hand-blown 
     glass in West Virginia for 100 years. a for 100 years.

                          ____________________




  SENATE RESOLUTION 346--COMMENDING THE APPALACHIAN STATE UNIVERSITY 
    FOOTBALL TEAM FOR WINNING THE 2005 NATIONAL COLLEGIATE ATHLETIC 
            ASSOCIATION DIVISION I-AA FOOTBALL CHAMPIONSHIP.

  Mr. BURR (for himself and Mrs. Dole) submitted the following 
resolution; which was submitted and read:

                              S. Res. 346

       Whereas on December 16, 2005, the Appalachian State 
     Mountaineers defeated the Northern Iowa Panthers in the 
     Championship game of the National Collegiate Athletic 
     Association (``NCAA'') Division I-AA Football Tournament in 
     Chattanooga, Tennessee;
       Whereas the Mountaineers are the first team from 
     Appalachian State to win a NCAA Championship in school 
     history;
       Whereas Appalachian State is the first university in the 
     State of North Carolina to win a NCAA football championship;
       Whereas head coach Jerry Moore, the all-time winningest 
     coach in Southern Conference history, won his first NCAA 
     title in his seventeenth year as head coach of the 
     Mountaineers, improving to 140-67 his record as head coach at 
     Appalachian State;
       Whereas defensive ends Marques Murrell and Jason Hunter, as 
     well as safety Corey Lynch, were named to the I-AA All 
     America team;
       Whereas junior defensive end Marques Murrell, who finished 
     the game with 9 tackles and forced a fumble with 9 minutes, 
     14 seconds remaining in the game, and senior Jason Hunter, 
     who finished the game with ten tackles, returned it for the 
     winning touchdown;
       Whereas injured senior quarterback and Southern Conference 
     Offensive Player of the Year Richie Williams courageously led 
     the Mountaineers in the second half while playing with an 
     injured ankle tendon;
       Whereas the Mountaineer defense held the Panthers scoreless 
     in the second half;
       Whereas backup quarterback Trey Elder led Appalachian State 
     to a 29-23 victory over Furman University to earn a spot in 
     the final contest;
       Whereas the Mountaineers defeated Lehigh University and 
     Southern Illinois to advance to the I-AA ``Final Four'';
       Whereas the Mountaineer team members are excellent 
     representatives of a fine university that is a leader in 
     higher education, producing many fine student-athletes and 
     other leaders;
       Whereas each player, coach, trainer, manager, and staff 
     member dedicated this season and their efforts to ensure the 
     Appalachian State University Mountaineers reached the summit 
     of college football;
       Whereas the Mountaineers showed tremendous dedication to 
     each other, appreciation to their fans, sportsmanship to 
     their opponents, and respect for the game of football 
     throughout the 2005 season; and
       Whereas residents of the Old North State and Appalachian 
     fans worldwide are to be commended for their long-standing 
     support, perseverance, and pride in the team: Now, therefore, 
     be it
         Resolved, That the Senate--
         (1) commends the champion Appalachian State University 
     Mountaineers for their historic win in the 2005 National 
     Collegiate Athletic Association Division I-AA Football 
     Championship;
         (2) recognizes the achievements of the players, coaches, 
     students, alumni, and support staff who were instrumental in 
     helping Appalachian State University win the championship; 
     and
         (3) directs the Secretary of the Senate to transmit a 
     copy of this resolution to Appalachian State University 
     Chancellor Kenneth Peacock and head coach Jerry Moore for 
     appropriate display.

                          ____________________




SENATE RESOLUTION 347--EXPRESSING THE SENSE OF THE SENATE THAT LENDERS 
HOLDING MORTGAGES ON HOMES IN COMMUNITIES OF THE GULF COAST DEVASTATED 
BY HURRICANES KATRINA AND RITA SHOULD EXTEND CURRENT VOLUNTARY MORTGAGE 
 PAYMENT FORBEARANCE PERIODS AND NOT FORECLOSE ON PROPERTIES IN THOSE 
                              COMMUNITIES

  Ms. LANDRIEU (for herself and Mr. Vitter) submitted the following 
resolution; which was submitted and read:

                              S. Res. 347

       Whereas the Gulf Coast of the United States has experienced 
     1 of the worst hurricane seasons on record;
       Whereas Hurricane Katrina and multiple levee breaks 
     destroyed an estimated 275,000 homes in the Gulf Coast;
       Whereas 20,664 businesses in the Gulf Coast sustained 
     catastrophic damage from Hurricane Katrina and Hurricane 
     Rita;
       Whereas, according to the Bureau of Economic Analysis at 
     the Department of Commerce, personal income has fallen more 
     than 25 percent in Louisiana in the third quarter of 2005;
       Whereas, in the time since Hurricanes Katrina, Rita, and 
     Wilma, the Small Business Administration has only approved 20 
     percent of disaster loan applications for homeowners in the 
     Gulf Coast and has a backlog of more than 176,000 
     applications for this assistance as of December 21, 2005;
       Whereas, of the 20,741 homeowner disaster loan applications 
     that have been approved in the Gulf Coast by the Small 
     Business Administration, only 1,444 have been fully 
     disbursed;
       Whereas, in response to these circumstances, commercial 
     banks, mortgage banks, credit unions, and other mortgage 
     lenders voluntarily instituted 90-day loan forbearance 
     periods after Hurricane Katrina and did not require home 
     owners in the Gulf Coast to make mortgage payments until on 
     or about December 1, 2005;
       Whereas, after the termination of the 90-day forbearance 
     period, many home and business owners have received notice 
     from their lenders that they face foreclosure unless they 
     make a lump sum balloon payment in the amount of the mortgage 
     payments previously subject to forbearance; and
       Whereas foreclosure on homes and businesses in the Gulf 
     Coast will have a detrimental impact on the economy of the 
     area, will deprive property owners of their equity at a time 
     when they can least afford it, and will have a negative 
     impact on lenders who will be holding properties that may not 
     be readily marketable on the open market: Now, therefore, be 
     it
         Resolved, That it is the sense of the Senate that--
         (1) Congress should act early in the second session of 
     the 109th Congress to consider legislation to provide relief 
     to homeowners in the Gulf Coast; and
         (2) commercial banks, mortgage banks, credit unions, and 
     other mortgage lenders should extend mortgage payment 
     forbearance to March 31, 2006, in order to allow Congress the 
     time to consider such legislation.

[[Page 30829]]



                          ____________________




SENATE CONCURRENT RESOLUTION 74--CORRECTING THE ENROLLMENT OF H.R. 2863

  Ms. CANTWELL submitted the following concurrent resolution; which was 
considered and agreed to:

                            S. Con. Res. 74

       Resolved in the Senate (the House of Representatives 
     Concurring), That, in the enrollment of the bill (H.R. 2863) 
     making appropriations for the Departments of Defense for the 
     fiscal year ending September 30, 2006, and for other 
     purposes, the Clerk of the House of Representatives shall 
     make the following corrections:
       Strike Division C, the American Energy Independence and 
     Security Act of 2005 and Division D, the Distribution of 
     Revenues and Disaster Assistance.

                          ____________________




SENATE CONCURRENT RESOLUTION 75--ENCOURAGING ALL AMERICANS TO INCREASE 
THEIR CHARITABLE GIVING, WITH THE GOAL OF INCREASING THE ANNUAL AMOUNT 
         OF CHARITABLE GIVING IN THE UNITED STATES BY 1 PERCENT

  Mr. SANTORUM (for himself and Mr. Lieberman) submitted the following 
concurrent resolution; which was submitted and read:

                            S. Con. Res. 75

       Whereas individual charitable giving rates among Americans 
     have stagnated at 1.5 to 2.2 percent of aggregate individual 
     income for the past 50 years; .
       Whereas a 1 percent increase (from 2 percent to 3 percent) 
     in charitable giving will generate over $90,000,000,000 to 
     charity; Whereas charitable giving is a significant source of 
     funding for health, education, and welfare programs; and
       Whereas a 1 percent increase in charitable giving would 
     provide some of the funds that will allow the nation to meet 
     our health, education and welfare goals. Now, therefore, be 
     it
       Resolved by the Senate (the House of Representatives 
     concurring), That Congress encourages all Americans to 
     increase their charitable giving, with the goal of increasing 
     the annual amount of charitable giving in the United States 
     by 1 percent.

                          ____________________




                   AMENDMENTS SUBMITTED AND PROPOSED

       SA 2691. Mr. CONRAD proposed an amendment to the bill S. 
     1932, to provide for reconciliation pursuant to section 
     202(a) of the concurrent resolution on the budget for fiscal 
     year 2006 (H. Con. Res. 95).
       SA 2692. Mr. FRIST (for Mrs. Feinstein (for herself and Mr. 
     Brownback)) proposed an amendment to the bill S. 119, to 
     provide for the protection of unaccompanied alien children, 
     and for other purposes.
       SA 2693. Mr. FRIST (for Mr. Lugar) proposed an amendment to 
     the bill S. 1315, to require a report on progress toward the 
     Millennium Development Goals, and for other purposes.
       SA 2694. Mr. FRIST (for Mr. Craig (for himself and Mr. 
     Akaka)) proposed an amendment to the bill S. 1182, to amend 
     title 38, United States Code, to improve health care for 
     veterans, and for other purposes.
       SA 2695. Mr. FRIST (for Mr. Stevens) proposed an amendment 
     to the bill H.R. 1400, to amend title 18, United States Code, 
     to provide penalties for aiming laser pointers at airplanes, 
     and for other purposes.

                          ____________________




                           TEXT OF AMENDMENTS

  SA 2691. Mr. CONRAD proposed an amendment to the bill S. 1932, to 
provide for reconciliation pursuant to section 202(a) of the concurrent 
resolution on the budget for fiscal year 2006 (H. Con. Res. 95); as 
follows:

  In lieu of the matter proposed to be inserted by the House amendment, 
insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Deficit Reduction Act of 
     2005''.

     SEC. 2. TABLE OF TITLES.

       The table of titles is as follows:

                    TITLE I--AGRICULTURE PROVISIONS

           TITLE II--HOUSING AND DEPOSIT INSURANCE PROVISIONS

       TITLE III--DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY

                  TITLE IV--TRANSPORTATION PROVISIONS

                           TITLE V--MEDICARE

                      TITLE VI--MEDICAID AND SCHIP

            TITLE VII--HUMAN RESOURCES AND OTHER PROVISIONS

          TITLE VIII--EDUCATION AND PENSION BENEFIT PROVISIONS

                      TITLE IX--LIHEAP PROVISIONS

                 TITLE X--JUDICIARY RELATED PROVISIONS

                    TITLE I--AGRICULTURE PROVISIONS

     SECTION 1001. SHORT TITLE.

       This title may be cited as the ``Agricultural 
     Reconciliation Act of 2005''.

                     Subtitle A--Commodity Programs

     SEC. 1101. NATIONAL DAIRY MARKET LOSS PAYMENTS.

       (a) Amount.--Section 1502(c) of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7982(c)) is amended by 
     striking paragraph (3) and inserting the following new 
     paragraph:
       ``(3)(A) during the period beginning on the first day of 
     the month the producers on a dairy farm enter into a contract 
     under this section and ending on September 30, 2005, 45 
     percent;
       ``(B) during the period beginning on October 1, 2005, and 
     ending on August 31, 2007, 34 percent; and
       ``(C) during the period beginning on September 1, 2007, 0 
     percent.''.
       (b) Duration.--Section 1502 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7982) is amended by striking 
     ``2005'' each place it appears in subsections (f) and (g)(1) 
     and inserting ``2007''.
       (c) Conforming Amendments.--Section 1502 of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is 
     amended--
       (1) in subsection (g)(1), by striking ``and subsection 
     (h)''; and
       (2) by striking subsection (h).

     SEC. 1102. ADVANCE DIRECT PAYMENTS.

       (a) Covered Commodities.--Section 1103(d)(2) of the Farm 
     Security and Rural Investment Act of 2002 (7 U.S.C. 
     7913(d)(2)) is amended in the first sentence by striking 
     ``2007 crop years'' and inserting ``2005 crop years, up to 40 
     percent of the direct payment for a covered commodity for the 
     2006 crop year, and up to 22 percent of the direct payment 
     for a covered commodity for the 2007 crop year,''.
       (b) Peanuts.--Section 1303(e)(2) of the Farm Security and 
     Rural Investment Act of 2002 (7 U.S.C. 7953(e)(2)) is amended 
     in the first sentence by striking ``2007 crop years'' and 
     inserting ``2005 crop years, up to 40 percent of the direct 
     payment for the 2006 crop year, and up to 22 percent of the 
     direct payment for the 2007 crop year,''.

     SEC. 1103. COTTON COMPETITIVENESS PROVISIONS.

       (a) Repeal of Authority to Issue Cotton User Marketing 
     Certificates.--Section 1207 of the Farm Security and Rural 
     Investment Act of 2002 (7 U.S.C. 7937) is amended--
       (1) by striking subsection (a); and
       (2) in subsection (b)(1)--
       (A) in subparagraph (B), by striking ``, adjusted for the 
     value of any certificate issued under subsection (a),''; and
       (B) in subparagraph (C), by striking ``, for the value of 
     any certificates issued under subsection (a)''.
       (b) Effective Date.--The amendments made by this section 
     take effect on August 1, 2006.

                        Subtitle B--Conservation

     SEC. 1201. WATERSHED REHABILITATION PROGRAM.

       The authority to obligate funds previously made available 
     under section 14(h)(1) of the Watershed Protection and Flood 
     Prevention Act (16 U.S.C. 1012(h)(1)) for a fiscal year and 
     unobligated as of October 1, 2006, is hereby cancelled 
     effective on that date.

     SEC. 1202. CONSERVATION SECURITY PROGRAM.

       (a) Extension.--Section 1238A(a) of the Food Security Act 
     of 1985 (16 U.S.C. 3838a(a)) is amended by striking ``2007'' 
     and inserting ``2011''.
       (b) Funding.--Section 1241(a)(3) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)(3)) is amended by striking ``not 
     more than $6,037,000,000'' and all that follows through 
     ``2014.'' and inserting the following: ``not more than--
       ``(A) $1,954,000,000 for the period of fiscal years 2006 
     through 2010; and
       ``(B) $5,650,000,000 for the period of fiscal years 2006 
     through 2015.''.

     SEC. 1203. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

       (a) Extension.--Section 1240B(a)(1) of the Food Security 
     Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by striking 
     ``2007'' and inserting ``2010''.
       (b) Limitation on Payments.--Section 1240G of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-7) is amended by 
     striking ``the period of fiscal years 2002 through 2007'' and 
     inserting ``any six-year period''.
       (c) Funding.--Section 1241(a)(6) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)(6)) is amended--
       (1) by striking ``and'' at the end of subparagraph (D); and
       (2) by striking subparagraph (E) and inserting the 
     following new subparagraphs:
       ``(E) $1,270,000,000 in each of fiscal years 2007 through 
     2009; and
       ``(F) $1,300,000,000 in fiscal year 2010.''.

                           Subtitle C--Energy

     SEC. 1301. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY 
                   IMPROVEMENTS PROGRAM.

       Section 9006(f) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 8106(f)) is amended by striking 
     ``2007'' and inserting ``2006 and $3,000,000 for fiscal year 
     2007''.

[[Page 30830]]



                     Subtitle D--Rural Development

     SEC. 1401. ENHANCED ACCESS TO BROADBAND TELECOMMUNICATIONS 
                   SERVICES IN RURAL AREAS.

       The authority to obligate funds previously made available 
     under section 601(j)(1) of the Rural Electrification Act of 
     1936 for a fiscal year and unobligated as of October 1, 2006, 
     is hereby cancelled effective on that date.

     SEC. 1402. VALUE-ADDED AGRICULTURAL PRODUCT MARKET 
                   DEVELOPMENT GRANTS.

       The authority to obligate funds previously made available 
     under section 231(b)(4) of the Agricultural Risk Protection 
     Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note) for a 
     fiscal year and unobligated as of October 1, 2006, is hereby 
     cancelled effective on that date.

     SEC. 1403. RURAL BUSINESS INVESTMENT PROGRAM.

       (a) Termination of Fiscal Year 2007 and Subsequent 
     Funding.--Subsection (a)(1) of section 384S of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009cc-
     18) is amended by inserting after ``necessary'' the 
     following: ``through fiscal year 2006''.
       (b) Cancellation of Unobligated Prior-Year Funds.--The 
     authority to obligate funds previously made available under 
     such section and unobligated as of October 1, 2006, is hereby 
     cancelled effective on that date.

     SEC. 1404. RURAL BUSINESS STRATEGIC INVESTMENT GRANTS.

       The authority to obligate funds previously made available 
     under section 385E of the Consolidated Farm and Rural 
     Development Act and unobligated as of October 1, 2006, is 
     hereby cancelled effective on that date.

     SEC. 1405. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANTS.

       (a) Termination of Fiscal Year 2007 Funding.--Subsection 
     (c) of section 6405 of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 2655) is amended by striking ``2007'' 
     and inserting ``2006''.
       (b) Cancellation of Unobligated Prior-Year Funds.--The 
     authority to obligate funds previously made available under 
     such section for a fiscal year and unobligated as of October 
     1, 2006, is hereby cancelled effective on that date.

                          Subtitle E--Research

     SEC. 1501. INITIATIVE FOR FUTURE FOOD AND AGRICULTURE 
                   SYSTEMS.

       (a) Termination of Fiscal Year 2007, 2008, and 2009 
     Transfers.--Subsection (b)(3)(D) of section 401 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7621) is amended by striking ``2006'' and 
     inserting ``2009''.
       (b) Termination of Multi-Year Availability of Fiscal Year 
     2006 Funds.--Paragraph (6) of subsection (f) of such section 
     is amended to read as follows:
       ``(6) Availability of funds.--
       ``(A) Two-year availability.--Except as provided in 
     subparagraph (B), funds for grants under this section shall 
     be available to the Secretary for obligation for a 2-year 
     period beginning on the date of the transfer of the funds 
     under subsection (b).
       ``(B) Exception for fiscal year 2006 transfer.--In the case 
     of the funds required to be transferred by subsection 
     (b)(3)(C), the funds shall be available to the Secretary for 
     obligation for the 1-year period beginning on October 1, 
     2005.''.

           TITLE II--HOUSING AND DEPOSIT INSURANCE PROVISIONS

                   Subtitle A--FHA Asset Disposition

     SEC. 2001. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) The term ``affordability requirements'' means any 
     requirements or restrictions imposed by the Secretary, at the 
     time of sale, on a multifamily real property or a multifamily 
     loan, such as use restrictions, rent restrictions, and 
     rehabilitation requirements.
       (2) The term ``discount sale'' means the sale of a 
     multifamily real property in a transaction, such as a 
     negotiated sale, in which the sale price is lower than the 
     property market value and is set outside of a competitive 
     bidding process that has no affordability requirements.
       (3) The term ``discount loan sale'' means the sale of a 
     multifamily loan in a transaction, such as a negotiated sale, 
     in which the sale price is lower than the loan market value 
     and is set outside of a competitive bidding process that has 
     no affordability requirements.
       (4) The term ``loan market value'' means the value of a 
     multifamily loan, without taking into account any 
     affordability requirements.
       (5) The term ``multifamily real property'' means any rental 
     or cooperative housing project of 5 or more units owned by 
     the Secretary that prior to acquisition by the Secretary was 
     security for a loan or loans insured under title II of the 
     National Housing Act.
       (6) The term ``multifamily loan'' means a loan held by the 
     Secretary and secured by a multifamily rental or cooperative 
     housing project of 5 or more units that was formerly insured 
     under title II of the National Housing Act.
       (7) The term ``property market value'' means the value of a 
     multifamily real property for its current use, without taking 
     into account any affordability requirements.
       (8) The term ``Secretary'' means the Secretary of Housing 
     and Urban Development.

     SEC. 2002. APPROPRIATED FUNDS REQUIREMENT FOR BELOW-MARKET 
                   SALES.

       (a) Discount Sales.--Notwithstanding any other provision of 
     law, except for affordability requirements for the elderly 
     and disabled required by statute, disposition by the 
     Secretary of a multifamily real property during fiscal years 
     2006 through 2010 through a discount sale under sections 
     207(l) or 246 of the National Housing Act (12 U.S.C. 1713(l), 
     1715z-11), section 203 of the Housing and Community 
     Development Amendments of 1978 (12 U.S.C. 1701z-11), or 
     section 204 of the Departments of Veterans Affairs and 
     Housing and Urban Development, and Independent Agencies 
     Appropriations Act, 1997 (12 U.S.C. 1715z-11a), shall be 
     subject to the availability of appropriations to the extent 
     that the property market value exceeds the sale proceeds. If 
     the multifamily real property is sold, during such fiscal 
     years, for an amount equal to or greater than the property 
     market value then the transaction is not subject to the 
     availability of appropriations.
       (b) Discount Loan Sales.--Notwithstanding any other 
     provision of law and in accordance with the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.), a discount loan 
     sale during fiscal years 2006 through 2010 under section 
     207(k) of the National Housing Act (12 U.S.C. 1713(k)), 
     section 203(k) of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1701z-11(k)), or section 204(a) 
     of the Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1997 (12 U.S.C. 1715z-11a(a)), shall be subject to the 
     availability of appropriations to the extent that the loan 
     market value exceeds the sale proceeds. If the multifamily 
     loan is sold, during such fiscal years, for an amount equal 
     to or greater than the loan market value then the transaction 
     is not subject to the availability of appropriations.
       (c) Applicability.--This section shall not apply to any 
     transaction that formally commences within one year prior to 
     the enactment of this section.

     SEC. 2003. UP-FRONT GRANTS.

       (a) 1997 Act.--Section 204(a) of the Departments of 
     Veterans Affairs and Housing And Urban Development, and 
     Independent Agencies Appropriations Act, 1997 (12 U.S.C. 
     1715z-11a(a))) is amended by adding at the end the following 
     new sentence: ``A grant provided under this subsection during 
     fiscal years 2006 through 2010 shall be available only to the 
     extent that appropriations are made in advance for such 
     purposes and shall not be derived from the General Insurance 
     Fund.''.
       (b) 1978 Act.--Section 203(f)(4) of the Housing and 
     Community Development Amendments of 1978 (12 USC 1701z-
     11(f)(4)) is amended by adding at the end the following new 
     sentence: ``This paragraph shall be effective during fiscal 
     years 2006 through 2010 only to the extent that such budget 
     authority is made available for use under this paragraph in 
     advance in appropriation Acts.''.
       (c) Applicability.--The amendments made by this section 
     shall not apply to any transaction that formally commences 
     within one year prior to the enactment of this section.

                     Subtitle B--Deposit Insurance

     SEC. 2101. SHORT TITLE.

       This subtitle may be cited as the ``Federal Deposit 
     Insurance Reform Act of 2005''.

     SEC. 2102. MERGING THE BIF AND SAIF.

       (a) In General.--
       (1) Merger.--The Bank Insurance Fund and the Savings 
     Association Insurance Fund shall be merged into the Deposit 
     Insurance Fund.
       (2) Disposition of assets and liabilities.--All assets and 
     liabilities of the Bank Insurance Fund and the Savings 
     Association Insurance Fund shall be transferred to the 
     Deposit Insurance Fund.
       (3) No separate existence.--The separate existence of the 
     Bank Insurance Fund and the Savings Association Insurance 
     Fund shall cease on the effective date of the merger thereof 
     under this section.
       (b) Repeal of Outdated Merger Provision.--Section 2704 of 
     the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) 
     is repealed.
       (c) Effective Date.--This section shall take effect no 
     later than the first day of the first calendar quarter that 
     begins after the end of the 90-day period beginning on the 
     date of the enactment of this Act.

     SEC. 2103. INCREASE IN DEPOSIT INSURANCE COVERAGE.

       (a) In General.--Section 11(a)(1) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(a)(1)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) Net amount of insured deposit.--The net amount due to 
     any depositor at an insured depository institution shall not 
     exceed the standard maximum deposit insurance amount as 
     determined in accordance with subparagraphs (C), (D), (E) and 
     (F) and paragraph (3).''; and
       (2) by adding at the end the following new subparagraphs:
       ``(E) Standard maximum deposit insurance amount defined.--
     For purposes of this Act, the term `standard maximum deposit 
     insurance amount' means $100,000, adjusted

[[Page 30831]]

     as provided under subparagraph (F) after March 31, 2010.
       ``(F) Inflation adjustment.--
       ``(i) In general.--By April 1 of 2010, and the 1st day of 
     each subsequent 5-year period, the Board of Directors and the 
     National Credit Union Administration Board shall jointly 
     consider the factors set forth under clause (v), and, upon 
     determining that an inflation adjustment is appropriate, 
     shall jointly prescribe the amount by which the standard 
     maximum deposit insurance amount and the standard maximum 
     share insurance amount (as defined in section 207(k) of the 
     Federal Credit Union Act) applicable to any depositor at an 
     insured depository institution shall be increased by 
     calculating the product of--

       ``(I) $100,000; and
       ``(II) the ratio of the published annual value of the 
     Personal Consumption Expenditures Chain-Type Price Index (or 
     any successor index thereto), published by the Department of 
     Commerce, for the calendar year preceding the year in which 
     the adjustment is calculated under this clause, to the 
     published annual value of such index for the calendar year 
     preceding the date this subparagraph takes effect under the 
     Federal Deposit Insurance Reform Act of 2005.

     The values used in the calculation under subclause (II) shall 
     be, as of the date of the calculation, the values most 
     recently published by the Department of Commerce.
       ``(ii) Rounding.--If the amount determined under clause 
     (ii) for any period is not a multiple of $10,000, the amount 
     so determined shall be rounded down to the nearest $10,000.
       ``(iii) Publication and report to the congress.--Not later 
     than April 5 of any calendar year in which an adjustment is 
     required to be calculated under clause (i) to the standard 
     maximum deposit insurance amount and the standard maximum 
     share insurance amount under such clause, the Board of 
     Directors and the National Credit Union Administration Board 
     shall--

       ``(I) publish in the Federal Register the standard maximum 
     deposit insurance amount, the standard maximum share 
     insurance amount, and the amount of coverage under paragraph 
     (3)(A) and section 207(k)(3) of the Federal Credit Union Act, 
     as so calculated; and
       ``(II) jointly submit a report to the Congress containing 
     the amounts described in subclause (I).

       ``(iv) 6-month implementation period.--Unless an Act of 
     Congress enacted before July 1 of the calendar year in which 
     an adjustment is required to be calculated under clause (i) 
     provides otherwise, the increase in the standard maximum 
     deposit insurance amount and the standard maximum share 
     insurance amount shall take effect on January 1 of the year 
     immediately succeeding such calendar year.
       ``(v) Inflation adjustment consideration.--In making any 
     determination under clause (i) to increase the standard 
     maximum deposit insurance amount and the standard maximum 
     share insurance amount, the Board of Directors and the 
     National Credit Union Administration Board shall jointly 
     consider--

       ``(I) the overall state of the Deposit Insurance Fund and 
     the economic conditions affecting insured depository 
     institutions;
       ``(II) potential problems affecting insured depository 
     institutions; or
       ``(III) whether the increase will cause the reserve ratio 
     of the fund to fall below 1.15 percent of estimated insured 
     deposits.''.

       (b) Coverage for Certain Employee Benefit Plan Deposits.--
     Section 11(a)(1)(D) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(a)(1)(D)) is amended to read as follows:
       ``(D) Coverage for certain employee benefit plan 
     deposits.--
       ``(i) Pass-through insurance.--The Corporation shall 
     provide pass-through deposit insurance for the deposits of 
     any employee benefit plan.
       ``(ii) Prohibition on acceptance of benefit plan 
     deposits.--An insured depository institution that is not well 
     capitalized or adequately capitalized may not accept employee 
     benefit plan deposits.
       ``(iii) Definitions.--For purposes of this subparagraph, 
     the following definitions shall apply:

       ``(I) Capital standards.--The terms `well capitalized' and 
     `adequately capitalized' have the same meanings as in section 
     38.
       ``(II) Employee benefit plan.--The term `employee benefit 
     plan' has the same meaning as in paragraph (5)(B)(ii), and 
     includes any eligible deferred compensation plan described in 
     section 457 of the Internal Revenue Code of 1986.
       ``(III) Pass-through deposit insurance.--The term `pass-
     through deposit insurance' means, with respect to an employee 
     benefit plan, deposit insurance coverage based on the 
     interest of each participant, in accordance with regulations 
     issued by the Corporation.''.

       (c) Increased Amount of Deposit Insurance for Certain 
     Retirement Accounts.--Section 11(a)(3)(A) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1821(a)(3)(A)) is amended by 
     striking ``$100,000'' and inserting ``$250,000 (which amount 
     shall be subject to inflation adjustments as provided in 
     paragraph (1)(F), except that $250,000 shall be substituted 
     for $100,000 wherever such term appears in such paragraph)''.
       (d) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date the final 
     regulations required under section 9(a)(2) take effect.

     SEC. 2104. SETTING ASSESSMENTS AND REPEAL OF SPECIAL RULES 
                   RELATING TO MINIMUM ASSESSMENTS AND FREE 
                   DEPOSIT INSURANCE.

       (a) Setting Assessments.--Section 7(b)(2) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended--
       (1) by striking subparagraphs (A) and (B) and inserting the 
     following new subparagraphs:
       ``(A) In general.--The Board of Directors shall set 
     assessments for insured depository institutions in such 
     amounts as the Board of Directors may determine to be 
     necessary or appropriate, subject to subparagraph (D).
       ``(B) Factors to be considered.--In setting assessments 
     under subparagraph (A), the Board of Directors shall consider 
     the following factors:
       ``(i) The estimated operating expenses of the Deposit 
     Insurance Fund.
       ``(ii) The estimated case resolution expenses and income of 
     the Deposit Insurance Fund.
       ``(iii) The projected effects of the payment of assessments 
     on the capital and earnings of insured depository 
     institutions.
       ``(iv) The risk factors and other factors taken into 
     account pursuant to paragraph (1) under the risk-based 
     assessment system, including the requirement under such 
     paragraph to maintain a risk-based system.
       ``(v) Any other factors the Board of Directors may 
     determine to be appropriate.''; and
       (2) by inserting after subparagraph (C) the following new 
     subparagraph:
       ``(D) No discrimination based on size.--No insured 
     depository institution shall be barred from the lowest-risk 
     category solely because of size.''.
       (b) Assessment Recordkeeping Period Shortened.--Paragraph 
     (5) of section 7(b) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)) is amended to read as follows:
       ``(5) Depository institution required to maintain 
     assessment-related records.-- Each insured depository 
     institution shall maintain all records that the Corporation 
     may require for verifying the correctness of any assessment 
     on the insured depository institution under this subsection 
     until the later of--
       ``(A) the end of the 3-year period beginning on the due 
     date of the assessment; or
       ``(B) in the case of a dispute between the insured 
     depository institution and the Corporation with respect to 
     such assessment, the date of a final determination of any 
     such dispute.''.
       (c) Increase in Fees for Late Assessment Payments.--
     Subsection (h) of section 18 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1828(h)) is amended to read as follows:
       ``(h) Penalty for Failure to Timely Pay Assessments.--
       ``(1) In general.--Subject to paragraph (3), any insured 
     depository institution which fails or refuses to pay any 
     assessment shall be subject to a penalty in an amount of not 
     more than 1 percent of the amount of the assessment due for 
     each day that such violation continues.
       ``(2) Exception in case of dispute.--Paragraph (1) shall 
     not apply if--
       ``(A) the failure to pay an assessment is due to a dispute 
     between the insured depository institution and the 
     Corporation over the amount of such assessment; and
       ``(B) the insured depository institution deposits security 
     satisfactory to the Corporation for payment upon final 
     determination of the issue.
       ``(3) Special rule for small assessment amounts.--If the 
     amount of the assessment which an insured depository 
     institution fails or refuses to pay is less than $10,000 at 
     the time of such failure or refusal, the amount of any 
     penalty to which such institution is subject under paragraph 
     (1) shall not exceed $100 for each day that such violation 
     continues.
       ``(4) Authority to modify or remit penalty.--The 
     Corporation, in the sole discretion of the Corporation, may 
     compromise, modify or remit any penalty which the Corporation 
     may assess or has already assessed under paragraph (1) upon a 
     finding that good cause prevented the timely payment of an 
     assessment.''.
       (d) Statute of Limitations for Assessment Actions.--
     Subsection (g) of section 7 of the Federal Deposit Insurance 
     Act (12 U.S.C. 1817(g)) is amended to read as follows:
       ``(g) Assessment Actions.--
       ``(1) In general.--The Corporation, in any court of 
     competent jurisdiction, shall be entitled to recover from any 
     insured depository institution the amount of any unpaid 
     assessment lawfully payable by such insured depository 
     institution.
       ``(2) Statute of limitations.--The following provisions 
     shall apply to actions relating to assessments, 
     notwithstanding any other provision in Federal law, or the 
     law of any State:
       ``(A) Any action by an insured depository institution to 
     recover from the Corporation the overpaid amount of any 
     assessment shall be brought within 3 years after the date the 
     assessment payment was due, subject to the exception in 
     subparagraph (E).

[[Page 30832]]

       ``(B) Any action by the Corporation to recover from an 
     insured depository institution the underpaid amount of any 
     assessment shall be brought within 3 years after the date the 
     assessment payment was due, subject to the exceptions in 
     subparagraphs (C) and (E).
       ``(C) If an insured depository institution has made a false 
     or fraudulent statement with intent to evade any or all of 
     its assessment, the Corporation shall have until 3 years 
     after the date of discovery of the false or fraudulent 
     statement in which to bring an action to recover the 
     underpaid amount.
       ``(D) Except as provided in subparagraph (C), assessment 
     deposit information contained in records no longer required 
     to be maintained pursuant to subsection (b)(4) shall be 
     considered conclusive and not subject to change.
       ``(E) Any action for the underpaid or overpaid amount of 
     any assessment that became due before the amendment to this 
     subsection under the Federal Deposit Insurance Reform Act of 
     2005 took effect shall be subject to the statute of 
     limitations for assessments in effect at the time the 
     assessment became due.''.
       (e) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date that the final 
     regulations required under section 9(a)(5) take effect.

     SEC. 2105. REPLACEMENT OF FIXED DESIGNATED RESERVE RATIO WITH 
                   RESERVE RANGE.

       (a) In General.--Section 7(b)(3) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1817(b)(3)) is amended to read as 
     follows:
       ``(3) Designated reserve ratio.--
       ``(A) Establishment.--
       ``(i) In general.--Before the beginning of each calendar 
     year, the Board of Directors shall designate the reserve 
     ratio applicable with respect to the Deposit Insurance Fund 
     and publish the reserve ratio so designated.
       ``(ii) Rulemaking requirement.--Any change to the 
     designated reserve ratio shall be made by the Board of 
     Directors by regulation after notice and opportunity for 
     comment.
       ``(B) Range.--The reserve ratio designated by the Board of 
     Directors for any year--
       ``(i) may not exceed 1.5 percent of estimated insured 
     deposits; and
       ``(ii) may not be less than 1.15 percent of estimated 
     insured deposits.
       ``(C) Factors.--In designating a reserve ratio for any 
     year, the Board of Directors shall--
       ``(i) take into account the risk of losses to the Deposit 
     Insurance Fund in such year and future years, including 
     historic experience and potential and estimated losses from 
     insured depository institutions;
       ``(ii) take into account economic conditions generally 
     affecting insured depository institutions so as to allow the 
     designated reserve ratio to increase during more favorable 
     economic conditions and to decrease during less favorable 
     economic conditions, notwithstanding the increased risks of 
     loss that may exist during such less favorable conditions, as 
     determined to be appropriate by the Board of Directors;
       ``(iii) seek to prevent sharp swings in the assessment 
     rates for insured depository institutions; and
       ``(iv) take into account such other factors as the Board of 
     Directors may determine to be appropriate, consistent with 
     the requirements of this subparagraph.
       ``(D) Publication of proposed change in ratio.--In 
     soliciting comment on any proposed change in the designated 
     reserve ratio in accordance with subparagraph (A), the Board 
     of Directors shall include in the published proposal a 
     thorough analysis of the data and projections on which the 
     proposal is based.''.
       (b) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date that the final 
     regulations required under section 9(a)(1) take effect.

     SEC. 2106. REQUIREMENTS APPLICABLE TO THE RISK-BASED 
                   ASSESSMENT SYSTEM.

       Section 7(b)(1) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)(1)) is amended by adding at the end the 
     following new subparagraphs:
       ``(E) Information concerning risk of loss and economic 
     conditions.--
       ``(i) Sources of information.--For purposes of determining 
     risk of losses at insured depository institutions and 
     economic conditions generally affecting depository 
     institutions, the Corporation shall collect information, as 
     appropriate, from all sources the Board of Directors 
     considers appropriate, such as reports of condition, 
     inspection reports, and other information from all Federal 
     banking agencies, any information available from State bank 
     supervisors, State insurance and securities regulators, the 
     Securities and Exchange Commission (including information 
     described in section 35), the Secretary of the Treasury, the 
     Commodity Futures Trading Commission, the Farm Credit 
     Administration, the Federal Trade Commission, any Federal 
     reserve bank or Federal home loan bank, and other regulators 
     of financial institutions, and any information available from 
     credit rating entities, and other private economic or 
     business analysts.
       ``(ii) Consultation with federal banking agencies.--

       ``(I) In general.--Except as provided in subclause (II), in 
     assessing the risk of loss to the Deposit Insurance Fund with 
     respect to any insured depository institution, the 
     Corporation shall consult with the appropriate Federal 
     banking agency of such institution.
       ``(II) Treatment on aggregate basis.--In the case of 
     insured depository institutions that are well capitalized (as 
     defined in section 38) and, in the most recent examination, 
     were found to be well managed, the consultation under 
     subclause (I) concerning the assessment of the risk of loss 
     posed by such institutions may be made on an aggregate basis.

       ``(iii) Rule of construction.--No provision of this 
     paragraph shall be construed as providing any new authority 
     for the Corporation to require submission of information by 
     insured depository institutions to the Corporation.
       ``(F) Modifications to the risk-based assessment system 
     allowed only after notice and comment.--In revising or 
     modifying the risk-based assessment system at any time after 
     the date of the enactment of the Federal Deposit Insurance 
     Reform Act of 2005, the Board of Directors may implement such 
     revisions or modification in final form only after notice and 
     opportunity for comment.''.

     SEC. 2107. REFUNDS, DIVIDENDS, AND CREDITS FROM DEPOSIT 
                   INSURANCE FUND.

       (a) In General.--Subsection (e) of section 7 of the Federal 
     Deposit Insurance Act (12 U.S.C. 1817(e)) is amended to read 
     as follows:
       ``(e) Refunds, Dividends, and Credits.--
       ``(1) Refunds of overpayments.--In the case of any payment 
     of an assessment by an insured depository institution in 
     excess of the amount due to the Corporation, the Corporation 
     may--
       ``(A) refund the amount of the excess payment to the 
     insured depository institution; or
       ``(B) credit such excess amount toward the payment of 
     subsequent assessments until such credit is exhausted.
       ``(2) Dividends from excess amounts in deposit insurance 
     fund.--
       ``(A) Reserve ratio in excess of 1.5 percent of estimated 
     insured deposits.--If, at the end of a calendar year, the 
     reserve ratio of the Deposit Insurance Fund exceeds 1.5 
     percent of estimated insured deposits, the Corporation shall 
     declare the amount in the Fund in excess of the amount 
     required to maintain the reserve ratio at 1.5 percent of 
     estimated insured deposits, as dividends to be paid to 
     insured depository institutions.
       ``(B) Reserve ratio equal to or in excess of 1.35 percent 
     of estimated insured deposits and not more than 1.5 
     percent.--If, at the end of a calendar year, the reserve 
     ratio of the Deposit Insurance Fund equals or exceeds 1.35 
     percent of estimated insured deposits and is not more than 
     1.5 percent of such deposits, the Corporation shall declare 
     the amount in the Fund that is equal to 50 percent of the 
     amount in excess of the amount required to maintain the 
     reserve ratio at 1.35 percent of the estimated insured 
     deposits as dividends to be paid to insured depository 
     institutions.
       ``(C) Basis for distribution of dividends.--
       ``(i) In general.--Solely for the purposes of dividend 
     distribution under this paragraph, the Corporation shall 
     determine each insured depository institution's relative 
     contribution to the Deposit Insurance Fund (or any 
     predecessor deposit insurance fund) for calculating such 
     institution's share of any dividend declared under this 
     paragraph, taking into account the factors described in 
     clause (ii).
       ``(ii) Factors for distribution.--In implementing this 
     paragraph in accordance with regulations, the Corporation 
     shall take into account the following factors:

       ``(I) The ratio of the assessment base of an insured 
     depository institution (including any predecessor) on 
     December 31, 1996, to the assessment base of all eligible 
     insured depository institutions on that date.
       ``(II) The total amount of assessments paid on or after 
     January 1, 1997, by an insured depository institution 
     (including any predecessor) to the Deposit Insurance Fund 
     (and any predecessor deposit insurance fund).
       ``(III) That portion of assessments paid by an insured 
     depository institution (including any predecessor) that 
     reflects higher levels of risk assumed by such institution.
       ``(IV) Such other factors as the Corporation may determine 
     to be appropriate.

       ``(D) Notice and opportunity for comment.--The Corporation 
     shall prescribe by regulation, after notice and opportunity 
     for comment, the method for the calculation, declaration, and 
     payment of dividends under this paragraph.
       ``(E) Limitation.--The Board of Directors may suspend or 
     limit dividends paid under subparagraph (B), if the Board 
     determines in writing that--
       ``(i) a significant risk of losses to the Deposit Insurance 
     Fund exists over the next 1-year period; and
       ``(ii) it is likely that such losses will be sufficiently 
     high as to justify a finding by the Board that the reserve 
     ratio should temporarily be allowed--

       ``(I) to grow without requiring dividends under 
     subparagraph (B); or
       ``(II) to exceed the maximum amount established under 
     subsection (b)(3)(B)(i).

[[Page 30833]]

       ``(F) Considerations.--In making a determination under 
     subparagraph (E), the Board shall consider--
       ``(i) national and regional conditions and their impact on 
     insured depository institutions;
       ``(ii) potential problems affecting insured depository 
     institutions or a specific group or type of depository 
     institution;
       ``(iii) the degree to which the contingent liability of the 
     Corporation for anticipated failures of insured institutions 
     adequately addresses concerns over funding levels in the 
     Deposit Insurance Fund; and
       ``(iv) any other factors that the Board determines are 
     appropriate.
       ``(H) Review of determination.--
       ``(i) Annual review.--A determination to suspend or limit 
     dividends under subparagraph (E) shall be reviewed by the 
     Board of Directors annually.
       ``(ii) Action by board.--Based on each annual review under 
     clause (i), the Board of Directors shall either renew or 
     remove a determination to suspend or limit dividends under 
     subparagraph (E), or shall make a new determination in 
     accordance with this paragraph. Unless justified under the 
     terms of the renewal or new determination, the Corporation 
     shall be required to provide cash dividends under 
     subparagraph (A) or (B), as appropriate.
       ``(3) One-time credit based on total assessment base at 
     year-end 1996.--
       ``(A) In general.--Before the end of the 270-day period 
     beginning on the date of the enactment of the Federal Deposit 
     Insurance Reform Act of 2005, the Board of Directors shall, 
     by regulation after notice and opportunity for comment, 
     provide for a credit to each eligible insured depository 
     institution (or a successor insured depository institution), 
     based on the assessment base of the institution on December 
     31, 1996, as compared to the combined aggregate assessment 
     base of all eligible insured depository institutions, taking 
     into account such factors as the Board of Directors may 
     determine to be appropriate.
       ``(B) Credit limit.--The aggregate amount of credits 
     available under subparagraph (A) to all eligible insured 
     depository institutions shall equal the amount that the 
     Corporation could collect if the Corporation imposed an 
     assessment of 10.5 basis points on the combined assessment 
     base of the Bank Insurance Fund and the Savings Association 
     Insurance Fund as of December 31, 2001.
       ``(C) Eligible insured depository institution defined.--For 
     purposes of this paragraph, the term `eligible insured 
     depository institution' means any insured depository 
     institution that--
       ``(i) was in existence on December 31, 1996, and paid a 
     deposit insurance assessment prior to that date; or
       ``(ii) is a successor to any insured depository institution 
     described in clause (i).
       ``(D) Application of credits.--
       ``(i) In general.--Subject to clause (ii), the amount of a 
     credit to any eligible insured depository institution under 
     this paragraph shall be applied by the Corporation, subject 
     to subsection (b)(3)(E), to the assessments imposed on such 
     institution under subsection (b) that become due for 
     assessment periods beginning after the effective date of 
     regulations prescribed under subparagraph (A).
       ``(ii) Temporary restriction on use of credits.--The amount 
     of a credit to any eligible insured depository institution 
     under this paragraph may not be applied to more than 90 
     percent of the assessments imposed on such institution under 
     subsection (b) that become due for assessment periods 
     beginning in fiscal years 2008, 2009, and 2010.
       ``(iii) Regulations.--The regulations prescribed under 
     subparagraph (A) shall establish the qualifications and 
     procedures governing the application of assessment credits 
     pursuant to clause (i).
       ``(E) Limitation on amount of credit for certain depository 
     institutions.--In the case of an insured depository 
     institution that exhibits financial, operational, or 
     compliance weaknesses ranging from moderately severe to 
     unsatisfactory, or is not adequately capitalized (as defined 
     in section 38) at the beginning of an assessment period, the 
     amount of any credit allowed under this paragraph against the 
     assessment on that depository institution for such period may 
     not exceed the amount calculated by applying to that 
     depository institution the average assessment rate on all 
     insured depository institutions for such assessment period.
       ``(F) Successor defined.--The Corporation shall define the 
     term `successor' for purposes of this paragraph, by 
     regulation, and may consider any factors as the Board may 
     deem appropriate.
       ``(4) Administrative review.--
       ``(A) In general.--The regulations prescribed under 
     paragraphs (2)(D) and (3) shall include provisions allowing 
     an insured depository institution a reasonable opportunity to 
     challenge administratively the amount of the credit or 
     dividend determined under paragraph (2) or (3) for such 
     institution.
       ``(B) Administrative review.--Any review under subparagraph 
     (A) of any determination of the Corporation under paragraph 
     (2) or (3) shall be final and not subject to judicial 
     review.''.
       (b) Definition of Reserve Ratio.--Section 3(y) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1813(y)) (as amended 
     by section 2105(b) of this subtitle) is amended by adding at 
     the end the following new paragraph:
       ``(3) Reserve ratio.--The term `reserve ratio', when used 
     with regard to the Deposit Insurance Fund other than in 
     connection with a reference to the designated reserve ratio, 
     means the ratio of the net worth of the Deposit Insurance 
     Fund to the value of the aggregate estimated insured 
     deposits.''.

     SEC. 2108. DEPOSIT INSURANCE FUND RESTORATION PLANS.

       Section 7(b)(3) of the Federal Deposit Insurance Act (12 
     U.S.C. 1817(b)(3)) (as amended by section 2105(a) of this 
     subtitle) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Dif restoration plans.--
       ``(i) In general.--Whenever--

       ``(I) the Corporation projects that the reserve ratio of 
     the Deposit Insurance Fund will, within 6 months of such 
     determination, fall below the minimum amount specified in 
     subparagraph (B)(ii) for the designated reserve ratio; or
       ``(II) the reserve ratio of the Deposit Insurance Fund 
     actually falls below the minimum amount specified in 
     subparagraph (B)(ii) for the designated reserve ratio without 
     any determination under subclause (I) having been made,

     the Corporation shall establish and implement a Deposit 
     Insurance Fund restoration plan within 90 days that meets the 
     requirements of clause (ii) and such other conditions as the 
     Corporation determines to be appropriate.
       ``(ii) Requirements of restoration plan.--A Deposit 
     Insurance Fund restoration plan meets the requirements of 
     this clause if the plan provides that the reserve ratio of 
     the Fund will meet or exceed the minimum amount specified in 
     subparagraph (B)(ii) for the designated reserve ratio before 
     the end of the 5-year period beginning upon the 
     implementation of the plan (or such longer period as the 
     Corporation may determine to be necessary due to 
     extraordinary circumstances).
       ``(iii) Restriction on assessment credits.--As part of any 
     restoration plan under this subparagraph, the Corporation may 
     elect to restrict the application of assessment credits 
     provided under subsection (e)(3) for any period that the plan 
     is in effect.
       ``(iv) Limitation on restriction.--Notwithstanding clause 
     (iii), while any restoration plan under this subparagraph is 
     in effect, the Corporation shall apply credits provided to an 
     insured depository institution under subsection (e)(3) 
     against any assessment imposed on the institution for any 
     assessment period in an amount equal to the lesser of--

       ``(I) the amount of the assessment; or
       ``(II) the amount equal to 3 basis points of the 
     institution's assessment base.

       ``(v) Transparency.--Not more than 30 days after the 
     Corporation establishes and implements a restoration plan 
     under clause (i), the Corporation shall publish in the 
     Federal Register a detailed analysis of the factors 
     considered and the basis for the actions taken with regard to 
     the plan.''.

     SEC. 2109. REGULATIONS REQUIRED.

       (a) In General.--Not later than 270 days after the date of 
     the enactment of this Act, the Board of Directors of the 
     Federal Deposit Insurance Corporation shall prescribe final 
     regulations, after notice and opportunity for comment--
       (1) designating the reserve ratio for the Deposit Insurance 
     Fund in accordance with section 7(b)(3) of the Federal 
     Deposit Insurance Act (as amended by section 2105 of this 
     subtitle);
       (2) implementing increases in deposit insurance coverage in 
     accordance with the amendments made by section 2103 of this 
     subtitle;
       (3) implementing the dividend requirement under section 
     7(e)(2) of the Federal Deposit Insurance Act (as amended by 
     section 2107 of this subtitle);
       (4) implementing the 1-time assessment credit to certain 
     insured depository institutions in accordance with section 
     7(e)(3) of the Federal Deposit Insurance Act, as amended by 
     section 2107 of this subtitle, including the qualifications 
     and procedures under which the Corporation would apply 
     assessment credits; and
       (5) providing for assessments under section 7(b) of the 
     Federal Deposit Insurance Act, as amended by this subtitle.
       (b) Transition Provisions.--
       (1) Continuation of existing assessment regulations.--No 
     provision of this subtitle or any amendment made by this 
     subtitle shall be construed as affecting the authority of the 
     Corporation to set or collect deposit insurance assessments 
     pursuant to any regulations in effect before the effective 
     date of the final regulations prescribed under subsection 
     (a).
       (2) Treatment of dif members under existing regulations.--
     As of the date of the merger of the Bank Insurance Fund and 
     the Savings Association Insurance Fund pursuant to section 
     2102, the assessment regulations in effect immediately before 
     the date of the enactment of this Act shall continue to apply 
     to all members of the Deposit Insurance Fund, until such 
     regulations are modified by the Corporation, notwithstanding

[[Page 30834]]

     that such regulations may refer to ``Bank Insurance Fund 
     members'' or ``Savings Association Insurance Fund members''.

       TITLE III--DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY

     SEC. 3001. SHORT TITLE; DEFINITION.

       (a) Short Title.--This title may be cited as the ``Digital 
     Television Transition and Public Safety Act of 2005''.
       (b) Definition.--As used in this Act, the term ``Assistant 
     Secretary'' means the Assistant Secretary for Communications 
     and Information of the Department of Commerce.

     SEC. 3002. ANALOG SPECTRUM RECOVERY: FIRM DEADLINE.

       (a) Amendments.--Section 309(j)(14) of the Communications 
     Act of 1934 (47 U.S.C. 309(j)(14)) is amended--
       (1) in subparagraph (A)--
       (A) by inserting ``full-power'' before ``television 
     broadcast license''; and
       (B) by striking ``December 31, 2006'' and inserting 
     ``February 17, 2009'';
       (2) by striking subparagraph (B);
       (3) in subparagraph (C)(i)(I), by striking ``or (B)'';
       (4) in subparagraph (D), by striking ``subparagraph 
     (C)(i)'' and inserting ``subparagraph (B)(i)''; and
       (5) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively.
       (b) Terminations of Analog Licenses and Broadcasting.--The 
     Federal Communications Commission shall take such actions as 
     are necessary--
       (1) to terminate all licenses for full-power television 
     stations in the analog television service, and to require the 
     cessation of broadcasting by full-power stations in the 
     analog television service, by February 18, 2009; and
       (2) to require by February 18, 2009, that all broadcasting 
     by Class A stations, whether in the analog television service 
     or digital television service, and all broadcasting by full-
     power stations in the digital television service, occur only 
     on channels between channels 2 and 36, inclusive, or 38 and 
     51, inclusive (between frequencies 54 and 698 megahertz, 
     inclusive).
       (c) Conforming Amendments.--
       (1) Section 337(e) of the Communications Act of 1934 (47 
     U.S.C. 337(e)) is amended--
       (A) in paragraph (1)--
       (i) by striking ``channels 60 to 69'' and inserting 
     ``channels 52 to 69'';
       (ii) by striking ``person who'' and inserting ``full-power 
     television station licensee that'';
       (iii) by striking ``746 and 806 megahertz'' and inserting 
     ``698 and 806 megahertz''; and
       (iv) by striking ``the date on which the digital television 
     service transition period terminates, as determined by the 
     Commission'' and inserting ``February 17, 2009'';
       (B) in paragraph (2), by striking ``746 megahertz'' and 
     inserting ``698 megahertz''; and

     SEC. 3003. AUCTION OF RECOVERED SPECTRUM.

       (a) Deadline for Auction.--Section 309(j) of the 
     Communications Act of 1934 (47 U.S.C. 309(j)) is amended--
       (1) by redesignating the second paragraph (15) of such 
     section (as added by section 203(b) of the Commercial 
     Spectrum Enhancement Act (P.L. 108-494; 118 Stat. 3993)), as 
     paragraph (16) of such section; and
       (2) in the first paragraph (15) of such section (as added 
     by section 3(a)of the Auction Reform Act of 2002 (P.L. 107-
     195; 116 Stat. 716)), by adding at the end of subparagraph 
     (C) the following new clauses:
       ``(v) Additional deadlines for recovered analog spectrum.--
     Notwithstanding subparagraph (B), the Commission shall 
     conduct the auction of the licenses for recovered analog 
     spectrum by commencing the bidding not later than January 28, 
     2008, and shall deposit the proceeds of such auction in 
     accordance with paragraph (8)(E)(ii) not later than June 30, 
     2008.
       ``(vi) Recovered analog spectrum.--For purposes of clause 
     (v), the term `recovered analog spectrum' means the spectrum 
     between channels 52 and 69, inclusive (between frequencies 
     698 and 806 megahertz, inclusive) reclaimed from analog 
     television service broadcasting under paragraph (14), other 
     than--

       ``(I) the spectrum required by section 337 to be made 
     available for public safety services; and
       ``(II) the spectrum auctioned prior to the date of 
     enactment of the Digital Television Transition and Public 
     Safety Act of 2005.''.

       (b) Extension of Auction Authority.--Section 309(j)(11) of 
     such Act (47 U.S.C. 309(j)(11)) is amended by striking 
     ``2007'' and inserting ``2011''.

     SEC. 3004. RESERVATION OF AUCTION PROCEEDS.

       Section 309(j)(8) of the Communications Act of 1934 (47 
     U.S.C. 309(j)(8)) is amended--
       (1) in subparagraph (A), by striking ``subparagraph (B) or 
     subparagraph (D)'' and inserting ``subparagraphs (B), (D), 
     and (E)'';
       (2) in subparagraph (C)(i), by inserting before the 
     semicolon at the end the following: ``, except as otherwise 
     provided in subparagraph (E)(ii)''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) Transfer of receipts.--
       ``(i) Establishment of fund.--There is established in the 
     Treasury of the United States a fund to be known as the 
     Digital Television Transition and Public Safety Fund.
       ``(ii) Proceeds for funds.--Notwithstanding subparagraph 
     (A), the proceeds (including deposits and upfront payments 
     from successful bidders) from the use of a competitive 
     bidding system under this subsection with respect to 
     recovered analog spectrum shall be deposited in the Digital 
     Television Transition and Public Safety Fund.
       ``(iii) Transfer of amount to treasury.--On September 30, 
     2009, the Secretary shall transfer $7,363,000,000 from the 
     Digital Television Transition and Public Safety Fund to the 
     general fund of the Treasury.
       ``(iv) Recovered analog spectrum.--For purposes of clause 
     (i), the term `recovered analog spectrum' has the meaning 
     provided in paragraph (15)(C)(vi).''.

     SEC. 3005. DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM.

       (a) Creation of Program.--The Assistant Secretary shall--
       (1) implement and administer a program through which 
     households in the United States may obtain coupons that can 
     be applied toward the purchase of digital-to-analog converter 
     boxes; and
       (2) make payments of not to exceed $990,000,000, in the 
     aggregate, through fiscal year 2009 to carry out that program 
     from the Digital Television Transition and Public Safety Fund 
     established under section 309(j)(8)(E) of the Communications 
     Act of 1934 (47 U.S.C. 309(j)(8)(E).
       (b) Credit.--The Assistant Secretary may borrow from the 
     Treasury beginning on October 1, 2009 such sums as may be 
     necessary, but not to exceed $1,500,000,000, to implement 
     this section. The Assistant Secretary shall reimburse the 
     Treasury, without interest, as funds are deposited into the 
     Digital Television Transition and Public Safety Fund.
       (c) Program Specifications.--
       (1) Limitations.--
       (A) Two-per-household maximum.--A household may obtain 
     coupons by making a request as required by the regulations 
     under this section between January 1, 2008, and March 31, 
     2009, inclusive. The Assistant Secretary shall ensure that 
     each requesting household receives, via the United States 
     Postal Service, no more than two coupons.
       (B) No combinations of coupons.--Two coupons may not be 
     used in combination toward the purchase of a single digital-
     to-analog converter box.
       (C) Duration.--All coupons shall expire 3 months after 
     issuance.
       (2) Distribution of coupons.--The Assistant Secretary shall 
     expend not more than $100,000,000 on administrative expenses 
     and shall ensure that the sum of--
       (A) all administrative expenses for the program, including 
     not more than $5,000,000 for consumer education concerning 
     the digital television transition and the availability of the 
     digital-to-analog converter box program; and
       (B) the total maximum value of all the coupons redeemed, 
     and issued but not expired, does not exceed $990,000,000.
       (3) Use of additional amount.--If the Assistant Secretary 
     transmits to the Committee on Energy and Commerce of the 
     House of Representatives and Committee on Commerce, Science, 
     and Transportation of the Senate a statement certifying that 
     the sum permitted to be expended under paragraph (2) will be 
     insufficient to fulfill the requests for coupons from 
     eligible households--
       (A) paragraph (2) shall be applied--
       (i) by substituting ``$160,000,000'' for ``$100,000,000''; 
     and
       (ii) by substituting ``$1,500,000,000'' for 
     ``$990,000,000'';
       (B) subsection (a)(2) shall be applied by substituting 
     ``$1,500,000,000'' for ``$990,000,000''; and
       (C) the additional amount permitted to be expended shall be 
     available 60 days after the Assistant Secretary sends such 
     statement.
       (4) Coupon value.--The value of each coupon shall be $40.
       (e) Definition of Digital-to-Analog Converter Box.--For 
     purposes of this section, the term ``digital-to-analog 
     converter box'' means a stand-alone device that does not 
     contain features or functions except those necessary to 
     enable a consumer to convert any channel broadcast in the 
     digital television service into a format that the consumer 
     can display on television receivers designed to receive and 
     display signals only in the analog television service, but 
     may also include a remote control device.

     SEC. 3006. PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS.

       (a) Creation of Program.--The Assistant Secretary, in 
     consultation with the Secretary of the Department of Homeland 
     Security--
       (1) may take such administrative action as is necessary to 
     establish and implement a grant program to assist public 
     safety agencies in the acquisition of, deployment of, or 
     training for the use of interoperable communications systems 
     that utilize, or enable interoperability with communications 
     systems that can utilize, reallocated public safety spectrum 
     for radio communication; and
       (2) shall make payments of not to exceed $1,000,000,000, in 
     the aggregate, through fiscal year 2010 to carry out that 
     program from the Digital Television Transition and Public 
     Safety Fund established under section

[[Page 30835]]

     309(j)(8)(E) of the Communications Act of 1934 (47 U.S.C. 
     309(j)(8)(E).
       (b) Credit.--The Assistant Secretary may borrow from the 
     Treasury beginning on October 1, 2006 such sums as may be 
     necessary, but not to exceed $1,000,000,000, to implement 
     this section. The Assistant Secretary shall reimburse the 
     Treasury, without interest, as funds are deposited into the 
     Digital Television Transition and Public Safety Fund.
       (c) Condition of Grants.--In order to obtain a grant under 
     the grant program, a public safety agency shall agree to 
     provide, from non-Federal sources, not less than 20 percent 
     of the costs of acquiring and deploying the interoperable 
     communications systems funded under the grant program.
       (d) Definitions.--For purposes of this section:
       (1) Public safety agency.--The term ``public safety 
     agency'' means any State, local, or tribal government entity, 
     or nongovernmental organization authorized by such entity, 
     whose sole or principal purpose is to protect the safety of 
     life, health, or property.
       (2) Interoperable communications systems.--The term 
     ``interoperable communications systems'' means communications 
     systems which enable public safety agencies to share 
     information amongst local, State, Federal, and tribal public 
     safety agencies in the same area via voice or data signals.
       (3) Reallocated public safety spectrum.--The term 
     ``reallocated public safety spectrum'' means the bands of 
     spectrum located at 764 -776 megahertz and 794-806 megahertz, 
     inclusive.

     SEC. 3007. NYC 9/11 DIGITAL TRANSITION.

       (a) Funds Available.--From the Digital Television 
     Transition and Public Safety Fund established under section 
     309(j)(8)(E) of the Communications Act of 1934 (47 U.S.C. 
     309(j)(8)(E)) the Assistant Secretary shall make payments of 
     not to exceed $30,000,000, in the aggregate, which shall be 
     available to carry out this section for fiscal years 2007 
     through 2008. The Assistant Secretary may borrow from the 
     Treasury beginning October 1, 2006 such sums as may be 
     necessary not to exceed $30,000,000 to implement and 
     administer the program in accordance with this section. The 
     Assistant Secretary shall reimburse the Treasury, without 
     interest, as funds are deposited into the Digital Television 
     Transition and Public Safety Fund.
       (b) Use of Funds.--The sums available under subsection (a) 
     shall be made available by the Assistant Secretary by grant 
     to be used to reimburse the Metropolitan Television Alliance 
     for costs incurred in the design and deployment of a 
     temporary digital television broadcast system to ensure that, 
     until a permanent facility atop the Freedom Tower is 
     constructed, the members of the Metropolitan Television 
     Alliance can provide the New York City area with an adequate 
     digital television signal as determined by the Federal 
     Communications Commission.
       (d) Definitions.--For purposes of this section:
       (1) Metropolitan television alliance.--The term 
     ``Metropolitan Television Alliance'' means the organization 
     formed by New York City television broadcast station 
     licensees to locate new shared facilities as a result of the 
     attacks on September 11, 2001 and the loss of use of shared 
     facilities that housed broadcast equipment.
       (2) New york city area.--The term ``New York City area'' 
     means the five counties comprising New York City and counties 
     of northern New Jersey in immediate proximity to New York 
     City (Bergen, Essex, Union, and Hudson Counties) .

     SEC. 3008. LOW-POWER TELEVISION AND TRANSLATOR DIGITAL-TO-
                   ANALOG CONVERSION.

       (a) Creation of Program.--The Assistant Secretary shall 
     make payments of not to exceed $10,000,000, in the aggregate, 
     during the fiscal year 2008 and 2009 period from the Digital 
     Television Transition and Public Safety Fund established 
     under section 309(j)(8)(E) of the Communications Act of 1934 
     (47 U.S.C. 309(j)(8)(E)) to implement and administer a 
     program through which each eligible low-power television 
     station may receive compensation toward the cost of the 
     purchase of a digital-to-analog conversion device that 
     enables it to convert the incoming digital signal of its 
     corresponding full-power television station to analog format 
     for transmission on the low-power television station's analog 
     channel. An eligible low-power television station may receive 
     such compensation only if it submits a request for such 
     compensation on or before February 17, 2009. Priority 
     compensation shall be given to eligible low-power television 
     stations in which the license is held by a non-profit 
     corporation and eligible low-power television stations that 
     serve rural areas of fewer than 10,000 viewers.
       (b) Credit.--The Assistant Secretary may borrow from the 
     Treasury beginning October 1, 2006 such sums as may be 
     necessary, but not to exceed $10,000,000, to implement this 
     section. The Assistant Secretary shall reimburse the 
     Treasury, without interest, as funds are deposited into the 
     Digital Television Transition and Public Safety Fund.
       (c) Eligible Stations.--For purposes of this section, the 
     term ``eligible low-power television station'' means a low-
     power television broadcast station, Class A television 
     station, television translator station, or television booster 
     station--
       (1) that is itself broadcasting exclusively in analog 
     format; and
       (2) that has not purchased a digital-to-analog conversion 
     device prior to the date of enactment of the Digital 
     Television Transition and Public Safety Act of 2005.

     SEC. 3009. LOW-POWER TELEVISION AND TRANSLATOR UPGRADE 
                   PROGRAM.

       (a) Establishment.--The Assistant Secretary shall make 
     payments of not to exceed $65,000,000, in the aggregate, 
     during the fiscal year 2009 from the Digital Television 
     Transition and Public Safety Fund established under section 
     309(j)(8)(E) of the Communications Act of 1934 (47 U.S.C. 
     309(j)(8)(E)) to implement and administer a program through 
     which each licensee of an eligible low-power television 
     station may receive reimbursement for equipment to upgrade 
     low-power television stations from analog to digital in 
     eligible rural communities, as that term is defined in 
     section 610(b)(2) of the Rural Electrification Act of 1937 (7 
     U.S.C. 950bb(b)(2)). Such reimbursements shall be issued to 
     eligible stations no earlier than October 1, 2010. Priority 
     reimbursements shall be given to eligible low-power 
     television stations in which the license is held by a non-
     profit corporation and eligible low-power television stations 
     that serve rural areas of fewer than 10,000 viewers.
       (b) Eligible Stations.--For purposes of this section, the 
     term ``eligible low-power television station'' means a low-
     power television broadcast station, Class A television 
     station, television translator station, or television booster 
     station--
       (1) that is itself broadcasting exclusively in analog 
     format; and
       (2) that has not converted from analog to digital 
     operations prior to the date of enactment of the Digital 
     Television Transition and Public Safety Act of 2005.

     SEC. 3010. NATIONAL ALERT AND TSUNAMI WARNING PROGRAM.

       The Assistant Secretary shall make payments of not to 
     exceed $156,000,000, in the aggregate, during the fiscal year 
     2007 through 2012 period from the Digital Television 
     Transition and Public Safety Fund established under section 
     309(j)(8)(E) of the Communications Act of 1934 (47 U.S.C. 
     309(j)(8)(E)) to implement a unified national alert system 
     capable of alerting the public, on a national, regional, or 
     local basis to emergency situations by using a variety of 
     communications technologies. The Assistant Secretary shall 
     use $50,000,000 of such amounts to implement a tsunami 
     warning and coastal vulnerability program.

     SEC. 3011. ENHANCE 911.

       The Assistant Secretary shall make payments of not to 
     exceed $43,500,000, in the aggregate, from the Digital 
     Television Transition and Public Safety Fund established 
     under section 309(j)(8)(E) of the Communications Act of 1934 
     (47 U.S.C. 309(j)(8)(E)) to implement the ENHANCE 911 Act of 
     2004.

     SEC. 3012. ESSENTIAL AIR SERVICE PROGRAM.

       (a) In General.--If the amount appropriated to carry out 
     the essential air service program under subchapter II of 
     chapter 417 of title 49, United States Code, equals or 
     exceeds $110,000,000 for fiscal year 2007 or 2008, then the 
     Secretary of Commerce shall make $15,000,000 available, from 
     the Digital Television Transition and Public Safety Fund 
     established by section 309(j)(8)(E) of the Communications Act 
     of 1934 (47 U.S.C. 309(j)(8)(E)), to the Secretary of 
     Transportation for use in carrying out the essential air 
     service program for that fiscal year.
       (b) Application With Other Funds.--Amounts made available 
     under subsection (a) for any fiscal year shall be in addition 
     to any amounts--
       (1) appropriated for that fiscal year; or
       (2) derived from fees collected pursuant to section 
     45301(a)(1) of title 49, United States Code, that are made 
     available for obligation and expenditure to carry out the 
     essential air service program for that fiscal year.
       (c) Advances.--The Secretary of Transportation may borrow 
     from the Treasury such sums as may be necessary, but not to 
     exceed $30,000,000 on a temporary and reimbursable basis to 
     implement subsection (a). The Secretary of Transportation 
     shall reimburse the Treasury, without interest, as funds are 
     deposited into the Digital Television Transition and Public 
     Safety Fund under section 309(j)(8)(E) of the Communications 
     Act of 1934 (47 U.S.C. 309(j)(8)(E)) and made available to 
     the Secretary under subsection (a).

     SEC. 3014. SUPPLEMENTAL LICENSE FEES.

       In addition to any fees assessed under the Communications 
     Act of 1934 (47 U.S.C. 151 et seq.), the Federal 
     Communications Commission shall assess extraordinary fees for 
     licenses in the aggregate amount of $10,000,000, which shall 
     be deposited in the Treasury during fiscal year 2006 as 
     offsetting receipts.

                  TITLE IV--TRANSPORTATION PROVISIONS

     SEC. 4001. EXTENSION OF VESSEL TONNAGE DUTIES.

       (a) Extension of Duties.--Section 36 of the Act entitled 
     ``An Act to provide revenue, equalize duties, and encourage 
     the industries of the United States, and for other 
     purposes'', approved August 5, 1909 (36 Stat. 111; 46 U.S.C. 
     App. 121), is amended--
       (1) by striking ``9 cents per ton'' and all that follows 
     through ``2002,'' the first place it appears and inserting 
     ``4.5 cents per ton, not to exceed in the aggregate 22.5 
     cents per ton in any one year, for fiscal years 2006 through 
     2010,'' and

[[Page 30836]]

       (2) by striking ``27 cents per ton'' and all that follows 
     through ``2002,'' and inserting ``13.5 cents per ton, not to 
     exceed 67.5 cents per ton per annum, for fiscal years 2006 
     through 2010,''.
       (b) Conforming Amendment.--The Act entitled ``An Act 
     concerning tonnage duties on vessels entering otherwise than 
     by sea'', approved March 8, 1910 (36 Stat. 234; 46 U.S.C. 
     App. 132), is amended by striking ``9 cents per ton'' and all 
     that follows through ``and 2 cents'' and inserting ``4.5 
     cents per ton, not to exceed in the aggregate 22.5 cents per 
     ton in any one year, for fiscal years 2006 through 2010, and 
     2 cents''.

                           TITLE V--MEDICARE

               Subtitle A--Provisions Relating to Part A

     SEC. 5001. HOSPITAL QUALITY IMPROVEMENT.

       (a) Submission of Hospital Data.--Section 1886(b)(3)(B) of 
     the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is 
     amended--
       (1) in clause (i)--
       (A) in subclause (XIX), by striking ``2007'' and inserting 
     ``2006''; and
       (B) in subclause (XX), by striking ``for fiscal year 2008 
     and each subsequent fiscal year,'' and inserting ``for each 
     subsequent fiscal year, subject to clause (viii),'';
       (2) in clause (vii)--
       (A) in subclause (I), by striking ``for each of fiscal 
     years 2005 through 2007'' and inserting ``for fiscal years 
     2005 and 2006''; and
       (B) in subclause (II), by striking ``Each'' and inserting 
     ``For fiscal years 2005 and 2006, each''; and
       (3) by adding at the end the following new clauses:
       ``(viii)(I) For purposes of clause (i) for fiscal year 2007 
     and each subsequent fiscal year, in the case of a subsection 
     (d) hospital that does not submit, to the Secretary in 
     accordance with this clause, data required to be submitted on 
     measures selected under this clause with respect to such a 
     fiscal year, the applicable percentage increase under clause 
     (i) for such fiscal year shall be reduced by 2.0 percentage 
     points. Such reduction shall apply only with respect to the 
     fiscal year involved and the Secretary shall not take into 
     account such reduction in computing the applicable percentage 
     increase under clause (i) for a subsequent fiscal year, and 
     the Secretary and the Medicare Payment Advisory Commission 
     shall carry out the requirements under section 5001(b) of the 
     Deficit Reduction Act of 2005.
       ``(II) Each subsection (d) hospital shall submit data on 
     measures selected under this clause to the Secretary in a 
     form and manner, and at a time, specified by the Secretary 
     for purposes of this clause.
       ``(III) The Secretary shall expand, beyond the measures 
     specified under clause (vii)(II) and consistent with the 
     succeeding subclauses, the set of measures that the Secretary 
     determines to be appropriate for the measurement of the 
     quality of care furnished by hospitals in inpatient settings.
       ``(IV) Effective for payments beginning with fiscal year 
     2007, in expanding the number of measures under subclause 
     (III), the Secretary shall begin to adopt the baseline set of 
     performance measures as set forth in the November 2005 report 
     by the Institute of Medicine of the National Academy of 
     Sciences under section 238(b) of the Medicare Prescription 
     Drug, Improvement, and Modernization Act of 2003.
       ``(V) Effective for payments beginning with fiscal year 
     2008, the Secretary shall add other measures that reflect 
     consensus among affected parties and, to the extent feasible 
     and practicable, shall include measures set forth by one or 
     more national consensus building entities.
       ``(VI) For purposes of this clause and clause (vii), the 
     Secretary may replace any measures or indicators in 
     appropriate cases, such as where all hospitals are 
     effectively in compliance or the measures or indicators have 
     been subsequently shown not to represent the best clinical 
     practice.
       ``(VII) The Secretary shall establish procedures for making 
     data submitted under this clause available to the public. 
     Such procedures shall ensure that a hospital has the 
     opportunity to review the data that are to be made public 
     with respect to the hospital prior to such data being made 
     public. The Secretary shall report quality measures of 
     process, structure, outcome, patients' perspectives on care, 
     efficiency, and costs of care that relate to services 
     furnished in inpatient settings in hospitals on the Internet 
     website of the Centers for Medicare & Medicaid Services.''.
       (b) Plan for Hospital Value Based Purchasing Program.--
       (1) In general.--The Secretary of Health and Human Services 
     shall develop a plan to implement a value based purchasing 
     program for payments under the Medicare program for 
     subsection (d) hospitals beginning with fiscal year 2009.
       (2) Details.--Such a plan shall include consideration of 
     the following issues:
       (A) The on-going development, selection, and modification 
     process for measures of quality and efficiency in hospital 
     inpatient settings.
       (B) The reporting, collection, and validation of quality 
     data.
       (C) The structure of value based payment adjustments, 
     including the determination of thresholds or improvements in 
     quality that would substantiate a payment adjustment, the 
     size of such payments, and the sources of funding for the 
     value based payments.
       (D) The disclosure of information on hospital performance.

     In developing such a plan, the Secretary shall consult with 
     relevant affected parties and shall consider experience with 
     such demonstrations that are relevant to the value based 
     purchasing program under this subsection.
       (c) Quality Adjustment in DRG Payments for Certain Hospital 
     Acquired Infections.--
       (1) In general.--Section 1886(d)(4) of the Social Security 
     Act (42 U.S.C. 1395ww(d)(4)) is amended by adding at the end 
     the following new subparagraph:
       ``(D)(i) For discharges occurring on or after October 1, 
     2008, the diagnosis-related group to be assigned under this 
     paragraph for a discharge described in clause (ii) shall be a 
     diagnosis-related group that does not result in higher 
     payment based on the presence of a secondary diagnosis code 
     described in clause (iv).
       ``(ii) A discharge described in this clause is a discharge 
     which meets the following requirements:
       ``(I) The discharge includes a condition identified by a 
     diagnosis code selected under clause (iv) as a secondary 
     diagnosis.
       ``(II) But for clause (i), the discharge would have been 
     classified to a diagnosis-related group that results in a 
     higher payment based on the presence of a secondary diagnosis 
     code selected under clause (iv).
       ``(III) At the time of admission, no code selected under 
     clause (iv) was present.
       ``(iii) As part of the information required to be reported 
     by a hospital with respect to a discharge of an individual in 
     order for payment to be made under this subsection, for 
     discharges occurring on or after October 1, 2007, the 
     information shall include the secondary diagnosis of the 
     individual at admission.
       ``(iv) By not later than October 1, 2007, the Secretary 
     shall select diagnosis codes associated with at least two 
     conditions, each of which codes meets all of the following 
     requirements (as determined by the Secretary):
       ``(I) Cases described by such code have a high cost or high 
     volume, or both, under this title.
       ``(II) The code results in the assignment of a case to a 
     diagnosis-related group that has a higher payment when the 
     code is present as a secondary diagnosis.
       ``(III) The code describes such conditions that could 
     reasonably have been prevented through the application of 
     evidence-based guidelines.
     The Secretary may from time to time revise (through addition 
     or deletion of codes) the diagnosis codes selected under this 
     clause so long as there are diagnosis codes associated with 
     at least two conditions selected for discharges occurring 
     during any fiscal year.
       ``(v) In selecting and revising diagnosis codes under 
     clause (iv), the Secretary shall consult with the Centers for 
     Disease Control and Prevention and other appropriate 
     entities.
       ``(vi) Any change resulting from the application of this 
     subparagraph shall not be taken into account in adjusting the 
     weighting factors under subparagraph (C)(i) or in applying 
     budget neutrality under subparagraph (C)(iii).''.
       (2) No judicial review.--Section 1886(d)(7)(B) of such Act 
     (42 U.S.C. 1395ww(d)(7)(B)) is amended by inserting before 
     the period the following: ``, including the selection and 
     revision of codes under paragraph (4)(D)''.

     SEC. 5002. CLARIFICATION OF DETERMINATION OF MEDICAID PATIENT 
                   DAYS FOR DSH COMPUTATION.

       (a) In General.--Section 1886(d)(5)(F)(vi) of the Social 
     Security Act (42 U.S.C. 1395ww(d)(5)(F)(vi)) is amended by 
     adding after and below subclause (II) the following:
     ``In determining under subclause (II) the number of the 
     hospital's patient days for such period which consist of 
     patients who (for such days) were eligible for medical 
     assistance under a State plan approved under title XIX, the 
     Secretary may, to the extent and for the period the Secretary 
     determines appropriate, include patient days of patients not 
     so eligible but who are regarded as such because they receive 
     benefits under a demonstration project approved under title 
     XI.''.
       (b) Ratification and Prospective Application of Previous 
     Regulations.--
       (1) In general.--Subject to paragraph (2), regulations 
     described in paragraph (3), insofar as such regulations 
     provide for the treatment of individuals eligible for medical 
     assistance under a demonstration project approved under title 
     XI of the Social Security Act under section 1886(d)(5)(F)(vi) 
     of such Act, are hereby ratified, effective as of the date of 
     their respective promulgations.
       (2) No application to closed cost reports.--Paragraph (1) 
     shall not be applied in a manner that requires the reopening 
     of any cost reports which are closed as of the date of the 
     enactment of this Act.
       (3) Regulations described.--For purposes of paragraph (1), 
     the regulations described in this paragraph are as follows:
       (A) 2000 regulation.--Regulations promulgated on January 
     20, 2000, at 65 Federal Register 3136 et seq, including the 
     policy in such

[[Page 30837]]

     regulations regarding discharges occurring prior to January 
     20, 2000.
       (B) 2003 regulation.--Regulations promulgated on August 1, 
     2003, at 68 Federal Register 45345 et seq.

     SEC. 5003. IMPROVEMENTS TO THE MEDICARE-DEPENDENT HOSPITAL 
                   (MDH) PROGRAM.

       (a) 5-Year Extension.--
       (1) Extension of Payment Methodology.--Section 
     1886(d)(5)(G) of the Social Security Act (42 U.S.C. 
     1395ww(d)(5)(G)) is amended--
       (A) in clause (i), by striking ``October 1, 2006'' and 
     inserting ``October 1, 2011''; and
       (B) in clause (ii)(II)--
       (i) by striking ``October 1, 2006'' and inserting ``October 
     1, 2011''; and
       (ii) by inserting ``or for discharges in the fiscal year'' 
     after ``for the cost reporting period''.
       (2) Conforming amendments.--
       (A) Extension of target amount.--Section 1886(b)(3)(D) of 
     such Act (42 U.S.C. 1395ww(b)(3)(D)) is amended--
       (i) in the matter preceding clause (i)--

       (I) by striking ``beginning'' and inserting ``occurring''; 
     and
       (II) by striking ``October 1, 2006'' and inserting 
     ``October 1, 2011''; and

       (ii) in clause (iv), by striking ``through fiscal year 
     2005'' and inserting ``through fiscal year 2011''.
       (B) Permitting hospitals to decline reclassification.--
     Section 13501(e)(2) of the Omnibus Budget Reconciliation Act 
     of 1993 (42 U.S.C. 1395ww note) is amended by striking 
     ``through fiscal year 2005'' and inserting ``through fiscal 
     year 2011''.
       (b) Option to Use 2002 as Base Year.--Section 1886(b)(3) of 
     such Act (42 U.S.C. 1395ww(b)(3)) is amended--
       (1) in subparagraph (D), by inserting ``subject to 
     subparagraph (K),'' after ``(d)(5)(G)),''; and
       (2) by adding at the end the following new subparagraph:
       ``(K)(i) With respect to discharges occurring on or after 
     October 1, 2006, in the case of a medicare-dependent, small 
     rural hospital, for purposes of applying subparagraph (D)--
       ``(I) there shall be substituted for the base cost 
     reporting period described in subparagraph (D)(i) the 12-
     month cost reporting period beginning during fiscal year 
     2002; and
       ``(II) any reference in such subparagraph to the `first 
     cost reporting period' described in such subparagraph is 
     deemed a reference to the first cost reporting period 
     beginning on or after October 1, 2006.
       ``(ii) This subparagraph shall only apply to a hospital if 
     the substitution described in clause (i)(I) results in an 
     increase in the target amount under subparagraph (D) for the 
     hospital.''.
       (c) Enhanced Payment for Amount by Which the Target Exceeds 
     the PPS Rate.--Section 1886(d)(5)(G)(ii)(II) of such Act (42 
     U.S.C. 1395ww(d)(5)(G)(iv)(II)) is amended by inserting ``(or 
     75 percent in the case of discharges occurring on or after 
     October 1, 2006)'' after ``50 percent''.
       (d) Enhanced Disproportionate Share Hospital (DSH) 
     Treatment for Medicare Dependent Hospitals.--Section 
     1886(d)(5)(F)(xiv)(II) of such Act (42 U.S.C. 
     1395ww(d)(5)(F)(xiv)(II)) is amended by inserting ``or, in 
     the case of discharges occurring on or after October 1, 2006, 
     as a medicare-dependent, small rural hospital under 
     subparagraph (G)(iv)'' before the period at the end.

     SEC. 5004. REDUCTION IN PAYMENTS TO SKILLED NURSING 
                   FACILITIES FOR BAD DEBT.

       (a) In General.--Section 1861(v)(1) of the Social Security 
     Act (42 U.S.C. 1395x(v)(1)) is amended by adding at the end 
     the following new subparagraph:
       ``(V) In determining such reasonable costs for skilled 
     nursing facilities with respect to cost reporting periods 
     beginning on or after October 1, 2005, the amount of bad 
     debts otherwise treated as allowed costs which are 
     attributable to the coinsurance amounts under this title for 
     individuals who are entitled to benefits under part A and--
       ``(i) are not described in section 1935(c)(6)(A)(ii) shall 
     be reduced by 30 percent of such amount otherwise allowable; 
     and
       ``(ii) are described in such section shall not be 
     reduced.''.
       (b) Technical Amendment.--Section 1861(v)(1)(T) of such Act 
     (42 U.S.C. 1395x(v)(1)(T)) is amended by striking ``section 
     1833(t)(5)(B)'' and inserting ``section 1833(t)(8)(B)''.

     SEC. 5005. EXTENDED PHASE-IN OF THE INPATIENT REHABILITATION 
                   FACILITY CLASSIFICATION CRITERIA.

       (a) In General.--Notwithstanding section 412.23(b)(2) of 
     title 42, Code of Federal Regulations, the Secretary of 
     Health and Human Services shall apply the applicable percent 
     specified in subsection (b) in the classification criterion 
     used under the IRF regulation (as defined in subsection (c)) 
     to determine whether a hospital or unit of a hospital is an 
     inpatient rehabilitation facility under the Medicare program 
     under title XVIII of the Social Security Act.
       (b) Applicable Percent.--For purposes of subsection (a), 
     the applicable percent specified in this subsection for cost 
     reporting periods--
       (1) beginning during the 12-month period beginning on July 
     1, 2006, is 60 percent;
       (2) beginning during the 12-month period beginning on July 
     1, 2007, is 65 percent; and
       (3) beginning on or after July 1, 2008, is 75 percent.
       (c) IRF Regulation.--For purposes of subsection (a), the 
     term ``IRF regulation'' means the rule published in the 
     Federal Register on May 7, 2004, entitled ``Medicare Program; 
     Final Rule; Changes to the Criteria for Being Classified as 
     an Inpatient Rehabilitation Facility'' (69 Fed. Reg. 25752).

     SEC. 5006. DEVELOPMENT OF A STRATEGIC PLAN REGARDING 
                   PHYSICIAN INVESTMENT IN SPECIALTY HOSPITALS.

       (a) Development.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     develop a strategic and implementing plan to address issues 
     described in paragraph (2) regarding physician investment in 
     specialty hospitals (as defined in section 1877(h)(7)(A) of 
     the Social Security Act (42 U.S.C. 1395nn(h)(7)(A)).
       (2) Issues described.--The issues described in this 
     paragraph are the following:
       (A) Proportionality of investment return.
       (B) Bona fide investment.
       (C) Annual disclosure of investment information.
       (D) The provision by specialty hospitals of--
       (i) care to patients who are eligible for medical 
     assistance under a State plan approved under title XIX of the 
     Social Security Act, including patients not so eligible but 
     who are regarded as such because they receive benefits under 
     a demonstration project approved under title XI of such Act; 
     and
       (ii) charity care.
       (E) Appropriate enforcement.
       (b) Reports.--
       (1) Interim report.--Not later than 3 months after the date 
     of the enactment of this Act, the Secretary shall submit an 
     interim report to the appropriate committees of jurisdiction 
     of Congress on the status of the development of the plan 
     under subsection (a).
       (2) Final report.--Not later six months after the date of 
     the enactment of this Act, the Secretary shall submit a final 
     report to the appropriate committees of jurisdiction of 
     Congress on the plan developed under subsection (a) together 
     with recommendations for such legislation and administrative 
     actions as the Secretary considers appropriate.
       (c) Continuation of Suspension on Enrollment.--
       (1) In general.--Subject to paragraph (2), the Secretary 
     shall continue the suspension on enrollment of new specialty 
     hospitals (as so defined) under title XVIII of the Social 
     Security Act until the earlier of--
       (A) the date that the Secretary submits the final report 
     under subsection (b)(2); or
       (B) the date that is six months after the date of the 
     enactment of this Act.
       (2) Extension of suspension.--If the Secretary fails to 
     submit the final report described in subsection (b)(2) by the 
     date required under such subsection, the Secretary shall--
       (A) extend the suspension on enrollment under paragraph (1) 
     for an additional two months; and
       (B) provide a certification to the appropriate committees 
     of jurisdiction of Congress of such failure.
       (d) Waiver.--In developing the plan and report required 
     under this section, the Secretary may waive such requirements 
     of section 553 of title 5, United States Code, as the 
     Secretary determines necessary.
       (e) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Secretary for fiscal year 2006, $2,000,000 to carry out this 
     section.

     SEC. 5007. MEDICARE DEMONSTRATION PROJECTS TO PERMIT GAIN-
                   SHARING ARRANGEMENTS.

       (a) Establishment.--The Secretary shall establish under 
     this section a qualified gainsharing demonstration program 
     under which the Secretary shall approve demonstration 
     projects by not later than November 1, 2006, to test and 
     evaluate methodologies and arrangements between hospitals and 
     physicians designed to govern the utilization of inpatient 
     hospital resources and physician work to improve the quality 
     and efficiency of care provided to Medicare beneficiaries and 
     to develop improved operational and financial hospital 
     performance with sharing of remuneration as specified in the 
     project. Such projects shall be operational by not later than 
     January 1, 2007.
       (b) Requirements Described.--A demonstration project under 
     this section shall meet the following requirements for 
     purposes of maintaining or improving quality while achieving 
     cost savings:
       (1) Arrangement for remuneration as share of savings.--The 
     demonstration project shall involve an arrangement between a 
     hospital and a physician under which the hospital provides 
     remuneration to the physician that represents solely a share 
     of the savings incurred directly as a result of collaborative 
     efforts between the hospital and the physician.
       (2) Written plan agreement.--The demonstration project 
     shall be conducted pursuant to a written agreement that--
       (A) is submitted to the Secretary prior to implementation 
     of the project; and

[[Page 30838]]

       (B) includes a plan outlining how the project will achieve 
     improvements in quality and efficiency.
       (3) Patient notification.--The demonstration project shall 
     include a notification process to inform patients who are 
     treated in a hospital participating in the project of the 
     participation of the hospital in such project.
       (4) Monitoring quality and efficiency of care.--The 
     demonstration project shall provide measures to ensure that 
     the quality and efficiency of care provided to patients who 
     are treated in a hospital participating in the demonstration 
     project is continuously monitored to ensure that such quality 
     and efficiency is maintained or improved.
       (5) Independent review.--The demonstration project shall 
     certify, prior to implementation, that the elements of the 
     demonstration project are reviewed by an organization that is 
     not affiliated with the hospital or the physician 
     participating in the project.
       (6) Referral limitations.--The demonstration project shall 
     not be structured in such a manner as to reward any physician 
     participating in the project on the basis of the volume or 
     value of referrals to the hospital by the physician.
       (c) Waiver of Certain Restrictions.--
       (1) In general.--An incentive payment made by a hospital to 
     a physician under and in accordance with a demonstration 
     project shall not constitute--
       (A) remuneration for purposes of section 1128B of the 
     Social Security Act (42 U.S.C. 1320a-7b);
       (B) a payment intended to induce a physician to reduce or 
     limit services to a patient entitled to benefits under 
     Medicare or a State plan approved under title XIX of such Act 
     in violation of section 1128A of such Act (42 U.S.C. 1320a-
     7a); or
       (C) a financial relationship for purposes of section 1877 
     of such Act (42 U.S.C. 1395nn).
       (2) Protection for existing arrangements.--In no case shall 
     the failure to comply with the requirements described in 
     paragraph (1) affect a finding made by the Inspector General 
     of the Department of Health and Human Services prior to the 
     date of the enactment of this Act that an arrangement between 
     a hospital and a physician does not violate paragraph (1) or 
     (2) of section 1128A(a) of the Social Security Act (42 U.S.C. 
     1320a-7(a)).
       (d) Program Administration.--
       (1) Solicitation of applications.--By not later than 90 
     days after the date of the enactment of this Act, the 
     Secretary shall solicit applications for approval of a 
     demonstration project, in such form and manner, and at such 
     time specified by the Secretary.
       (2) Number of projects approved.--The Secretary shall 
     approve not more than 6 demonstration projects, at least 2 of 
     which shall be located in a rural area.
       (3) Duration.--The qualified gainsharing demonstration 
     program under this section shall be conducted for the period 
     beginning on January 1, 2007, and ending on December 31, 
     2009.
       (e) Reports.--
       (1) Initial report.--By not later than December 1, 2006, 
     the Secretary shall submit to Congress a report on the number 
     of demonstration projects that will be conducted under this 
     section.
       (2) Project update.--By not later than December 1, 2007, 
     the Secretary shall submit to Congress a report on the 
     details of such projects (including the project improvements 
     towards quality and efficiency described in subsection 
     (b)(2)(B)).
       (3) Quality improvement and savings.--By not later than 
     December 1, 2008, the Secretary shall submit to Congress a 
     report on quality improvement and savings achieved as a 
     result of the qualified gainsharing demonstration program 
     established under subsection (a).
       (4) Final report.--By not later than May 1, 2010, the 
     Secretary shall submit to Congress a final report on the 
     information described in paragraph (3).
       (f) Funding.--
       (1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Secretary for fiscal year 2006 $6,000,000, to carry out this 
     section.
       (2) Availability.--Funds appropriated under paragraph (1) 
     shall remain available for expenditure through fiscal year 
     2010.
       (g) Definitions.--For purposes of this section:
       (1) Demonstration project.--The term ``demonstration 
     project'' means a project implemented under the qualified 
     gainsharing demonstration program established under 
     subsection(a).
       (2) Hospital.--The term ``hospital'' means a hospital that 
     receives payment under section 1886(d) of the Social Security 
     Act (42 U.S.C. 1395ww(d)), and does not include a critical 
     access hospital (as defined in section 1861(mm) of such Act 
     (42 U.S.C. 1395x(mm))).
       (3) Medicare.--The term ``Medicare'' means the programs 
     under title XVIII of the Social Security Act.
       (4) Physician.--The term ``physician'' means, with respect 
     to a demonstration project, a physician described in 
     paragraph (1) or (3) of section 1861(r) of the Social 
     Security Act (42 U.S.C. 1395x(r)) who is licensed as such a 
     physician in the area in which the project is located and 
     meets requirements to provide services for which benefits are 
     provided under Medicare. Such term shall be deemed to include 
     a practitioner described in section 1842(e)(18)(C) of such 
     Act (42 U.S.C. 1395u(e)(18)(C)).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 5008. POST-ACUTE CARE PAYMENT REFORM DEMONSTRATION 
                   PROGRAM.

       (a) Establishment.--
       (1) In general.--By not later than January 1, 2008, the 
     Secretary of Health and Human Services (in this section 
     referred to as the ``Secretary'') shall establish a 
     demonstration program for purposes of understanding costs and 
     outcomes across different post-acute care sites. Under such 
     program, with respect to diagnoses specified by the 
     Secretary, an individual who receives treatment from a 
     provider for such a diagnosis shall receive a single 
     comprehensive assessment on the date of discharge from a 
     subsection (d) hospital (as defined in section 1886(d)(1)(B) 
     of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))) of 
     the needs of the patient and the clinical characteristics of 
     the diagnosis to determine the appropriate placement of such 
     patient in a post-acute care site. The Secretary shall use a 
     standardized patient assessment instrument across all post-
     acute care sites to measure functional status and other 
     factors during the treatment and at discharge from each 
     provider. Participants in the program shall provide 
     information on the fixed and variable costs for each 
     individual. An additional comprehensive assessment shall be 
     provided at the end of the episode of care.
       (2) Number of sites.--The Secretary shall conduct the 
     demonstration program under this section with sufficient 
     numbers to determine statistically reliable results.
       (3) Duration.--The Secretary shall conduct the 
     demonstration program under this section for a 3-year period.
       (b) Waiver Authority.--The Secretary may waive such 
     requirements of titles XI and XVIII of the Social Security 
     Act (42 U.S.C. 1301 et seq.; 42 U.S.C. 1395 et seq.) as may 
     be necessary for the purpose of carrying out the 
     demonstration program under this section.
       (c) Report.--Not later than 6 months after the completion 
     of the demonstration program under this section, the 
     Secretary shall submit to Congress a report on such program, 
     that includes the results of the program and recommendations 
     for such legislation and administrative action as the 
     Secretary determines to be appropriate.
       (d) Funding.--The Secretary shall provide for the transfer 
     from the Federal Hospital Insurance Trust Fund established 
     under section 1817 of the Social Security Act (42 U.S.C. 
     1395i), $6,000,000 for the costs of carrying out the 
     demonstration program under this section.

               Subtitle B--Provisions Relating to Part B

                     CHAPTER 1--PAYMENT PROVISIONS

     SEC. 5101. BENEFICIARY OWNERSHIP OF CERTAIN DURABLE MEDICAL 
                   EQUIPMENT (DME).

       (a) DME.--
       (1) In general.--Section 1834(a)(7)(A) of the Social 
     Security Act (42 U.S.C. 1395m(a)(7)(A)) is amended to read as 
     follows:
       ``(A) Payment.--In the case of an item of durable medical 
     equipment not described in paragraphs (2) through (6), the 
     following rules shall apply:
       ``(i) Rental.--

       ``(I) In general.--Except as provided in clause (iii), 
     payment for the item shall be made on a monthly basis for the 
     rental of the item during the period of medical need (but 
     payments under this clause may not extend over a period of 
     continuous use (as determined by the Secretary) of longer 
     than 13 months).
       ``(II) Payment amount.--Subject to subparagraph (B), the 
     amount recognized for the item, for each of the first 3 
     months of such period, is 10 percent of the purchase price 
     recognized under paragraph (8) with respect to the item, and, 
     for each of the remaining months of such period, is 7.5 
     percent of such purchase price.

       ``(ii) Ownership after rental.--On the first day that 
     begins after the 13th continuous month during which payment 
     is made for the rental of an item under clause (i), the 
     supplier of the item shall transfer title to the item to the 
     individual.
       ``(iii) Purchase agreement option for power-driven 
     wheelchairs.--In the case of a power-driven wheelchair, at 
     the time the supplier furnishes the item, the supplier shall 
     offer the individual the option to purchase the item, and 
     payment for such item shall be made on a lump-sum basis if 
     the individual exercises such option.
       ``(iv) Maintenance and servicing.--After the supplier 
     transfers title to the item under clause (ii) or in the case 
     of a power-driven wheelchair for which a purchase agreement 
     has been entered into under clause (iii), maintenance and 
     servicing payments shall, if the Secretary determines such 
     payments are reasonable and necessary, be made (for parts and 
     labor not covered by the supplier's or manufacturer's 
     warranty, as determined by the Secretary to be appropriate 
     for the particular type of durable medical equipment), and 
     such payments shall be in an amount determined to be 
     appropriate by the Secretary.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to items furnished for which the first rental 
     month occurs on or after January 1, 2006.

[[Page 30839]]

       (b) Oxygen Equipment.--
       (1) In general.--Section 1834(a)(5) of such Act (42 U.S.C. 
     1395m(a)(5)) is amended--
       (A) in subparagraph (A), by striking ``and (E)'' and 
     inserting ``(E), and (F)''; and
       (B) by adding at the end the following new subparagraph:
       ``(F) Ownership of Equipment.--
       ``(i) In general.--Payment for oxygen equipment (including 
     portable oxygen equipment) under this paragraph may not 
     extend over a period of continuous use (as determined by the 
     Secretary) of longer than 36 months.
       ``(ii) Ownership.--

       ``(I) Transfer of title.--On the first day that begins 
     after the 36th continuous month during which payment is made 
     for the equipment under this paragraph, the supplier of the 
     equipment shall transfer title to the equipment to the 
     individual.
       ``(II) Payments for oxygen and maintenance and servicing.--
     After the supplier transfers title to the equipment under 
     subclause (I)--

       ``(aa) payments for oxygen shall continue to be made in the 
     amount recognized for oxygen under paragraph (9) for the 
     period of medical need; and
       ``(bb) maintenance and servicing payments shall, if the 
     Secretary determines such payments are reasonable and 
     necessary, be made (for parts and labor not covered by the 
     supplier's or manufacturer's warranty, as determined by the 
     Secretary to be appropriate for the equipment), and such 
     payments shall be in an amount determined to be appropriate 
     by the Secretary.''.
       (2) Effective date.--
       (A) In general.--The amendments made by paragraph (1) shall 
     take effect on January 1, 2006.
       (B) Application to certain individuals.--In the case of an 
     individual receiving oxygen equipment on December 31, 2005, 
     for which payment is made under section 1834(a) of the Social 
     Security Act (42 U.S.C. 1395m(a)), the 36-month period 
     described in paragraph (5)(F)(i) of such section, as added by 
     paragraph (1), shall begin on January 1, 2006.

     SEC. 5102. ADJUSTMENTS IN PAYMENT FOR IMAGING SERVICES.

       (a) Multiple Procedure Payment Reduction for Imaging 
     Exempted From Budget Neutrality.--Section 1848(c)(2)(B) of 
     the Social Security Act (42 U.S.C. 1395w-4(c)(2)(B)) is 
     amended--
       (1) in clause (ii)(II), by striking ``clause (iv)'' and 
     inserting ``clauses (iv) and (v)'';
       (2) in clause (iv) in the heading, by inserting ``of 
     certain additional expenditures'' after ``Exemption''; and
       (3) by adding at the end the following new clause:
       ``(v) Exemption of certain reduced expenditures from 
     budget-neutrality calculation.--The following reduced 
     expenditures, as estimated by the Secretary, shall not be 
     taken into account in applying clause (ii)(II):

       ``(I) Reduced payment for multiple imaging procedures.--
     Effective for fee schedules established beginning with 2007, 
     reduced expenditures attributable to the multiple procedure 
     payment reduction for imaging under the final rule published 
     by the Secretary in the Federal Register on November 21, 2005 
     (42 CFR 405, et al.) insofar as it relates to the physician 
     fee schedules for 2006 and 2007.''.

       (b) Reduction in Physician Fee Schedule to OPD Payment 
     Amount for Imaging Services.--Section 1848 of such Act (42 
     U.S.C. 1395w-4) is amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(4) Special rule for imaging services.--
       ``(A) In general.--In the case of imaging services 
     described in subparagraph (B) furnished on or after January 
     1, 2007, if--
       ``(i) the technical component (including the technical 
     component portion of a global fee) of the service established 
     for a year under the fee schedule described in paragraph (1) 
     without application of the geographic adjustment factor 
     described in paragraph (1)(C), exceeds
       ``(ii) the medicare OPD fee schedule amount established 
     under the prospective payment system for hospital outpatient 
     department services under paragraph (3)(D) of section 1833(t) 
     for such service for such year, determined without regard to 
     geographic adjustment under paragraph (2)(D) of such section,
     the Secretary shall substitute the amount described in clause 
     (ii), adjusted by the geographic adjustment factor described 
     in paragraph (1)(C), for the fee schedule amount for such 
     technical component for such year.
       ``(B) Imaging services described.--For purposes of 
     subparagraph (A), imaging services described in this 
     subparagraph are imaging and computer-assisted imaging 
     services, including X-ray, ultrasound (including 
     echocardiography), nuclear medicine (including positron 
     emission tomography), magnetic resonance imaging, computed 
     tomography, and fluoroscopy, but excluding diagnostic and 
     screening mammography.''; and
       (2) in subsection (c)(2)(B)(v), as added by subsection 
     (a)(3), by adding at the end the following new subclause:

       ``(II) OPD payment cap for imaging services.--Effective for 
     fee schedules established beginning with 2007, reduced 
     expenditures attributable to subsection (b)(4).''.

     SEC. 5103. LIMITATION ON PAYMENTS FOR PROCEDURES IN 
                   AMBULATORY SURGICAL CENTERS.

       Section 1833(i)(2) of the Social Security Act (42 U.S.C. 
     1395l(i)(2)) is amended--
       (1) in subparagraph (A), by inserting ``subject to 
     subparagraph (E),'' after ``subparagraph (D),'';
       (2) in subparagraph (D)(ii), by inserting before the period 
     at the end the following: ``and taking into account reduced 
     expenditures that would apply if subparagraph (E) were to 
     continue to apply, as estimated by the Secretary''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) With respect to surgical procedures furnished on or 
     after January 1, 2007, and before the effective date of the 
     implementation of a revised payment system under subparagraph 
     (D), if--
       ``(i) the standard overhead amount under subparagraph (A) 
     for a facility service for such procedure, without the 
     application of any geographic adjustment, exceeds
       ``(ii) the medicare OPD fee schedule amount established 
     under the prospective payment system for hospital outpatient 
     department services under paragraph (3)(D) of section 1833(t) 
     for such service for such year, determined without regard to 
     geographic adjustment under paragraph (2)(D) of such section,
     the Secretary shall substitute under subparagraph (A) the 
     amount described in clause (ii) for the standard overhead 
     amount for such service referred to in clause (i).''.

     SEC. 5104. UPDATE FOR PHYSICIANS' SERVICES FOR 2006.

       (a) Update for 2006.--Section 1848(d) of the Social 
     Security Act (42 U.S.C. 1395w-4(d)) is amended--
       (1) in paragraph (4)(B), in the matter preceding clause 
     (i), by striking ``paragraph (5)'' and inserting ``paragraphs 
     (5) and (6)''; and
       (2) by adding at the end the following new paragraph:
       ``(6) Update for 2006.--The update to the single conversion 
     factor established in paragraph (1)(C) for 2006 shall be 0 
     percent.''.
       (b) Not Treated as Change in Law and Regulation in 
     Sustainable Growth Rate Determination.--The amendments made 
     by subsection (a) shall not be treated as a change in law for 
     purposes of applying section 1848(f)(2)(D) of the Social 
     Security Act (42 U.S.C. 1395w-4(f)(2)(D)).
       (c) MedPAC Report.--
       (1) In general.--By not later than March 1, 2007, the 
     Medicare Payment Advisory Commission shall submit a report to 
     Congress on mechanisms that could be used to replace the 
     sustainable growth rate system under section 1848(f) of the 
     Social Security Act (42 U.S.C. 1395w-4(f)).
       (2) Requirements.--The report required under paragraph (1) 
     shall--
       (A) identify and examine alternative methods for assessing 
     volume growth;
       (B) review options to control the volume of physicians' 
     services under the Medicare program while maintaining access 
     to such services by Medicare beneficiaries;
       (C) examine the application of volume controls under the 
     Medicare physician fee schedule under section 1848 of the 
     Social Security Act (42 U.S.C. 1395w-4);
       (D) identify levels of application of volume controls, such 
     as group practice, hospital medical staff, type of service, 
     geographic area, and outliers;
       (E) examine the administrative feasibility of implementing 
     the options reviewed under subparagraph (B), including the 
     availability of data and time lags;
       (F) examine the extent to which the alternative methods 
     identified and examined under subparagraph (A) should be 
     specified in such section 1848; and
       (G) identify the appropriate level of discretion for the 
     Secretary of Health and Human Services to change payment 
     rates under the Medicare physician fee schedule or otherwise 
     take steps that affect physician behavior.
     Such report shall include such recommendations on alternative 
     mechanisms to replace the sustainable growth rate system as 
     the Medicare Payment Advisory Commission determines 
     appropriate.
       (3) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Medicare Payment Advisory Commission $550,000, to carry out 
     this subsection.

     SEC. 5105. THREE-YEAR TRANSITION OF HOLD HARMLESS PAYMENTS 
                   FOR SMALL RURAL HOSPITALS UNDER THE PROSPECTIVE 
                   PAYMENT SYSTEM FOR HOSPITAL OUTPATIENT 
                   DEPARTMENT SERVICES.

       Section 1833(t)(7)(D)(i) of the Social Security Act (42 
     U.S.C. 1395l(t)(7)(D)(i)) is amended--
       (1) by inserting ``(I)'' before ``In the case''; and
       (2) by adding at the end the following new subclause:
       ``(II) In the case of a hospital located in a rural area 
     and that has not more than 100 beds and that is not a sole 
     community hospital (as defined in section 
     1886(d)(5)(D)(iii)), for covered OPD services furnished on or 
     after January 1, 2006, and before January 1, 2009, for which 
     the PPS amount is less than the pre-BBA amount, the amount of 
     payment under this subsection shall be increased by the 
     applicable percentage of the

[[Page 30840]]

     amount of such difference. For purposes of the previous 
     sentence, with respect to covered OPD services furnished 
     during 2006, 2007, or 2008, the applicable percentage shall 
     be 95 percent, 90 percent, and 85 percent, respectively.''.

     SEC. 5106. UPDATE TO THE COMPOSITE RATE COMPONENT OF THE 
                   BASIC CASE-MIX ADJUSTED PROSPECTIVE PAYMENT 
                   SYSTEM FOR DIALYSIS SERVICES.

       Section 1881(b)(12) of the Social Security Act (42 U.S.C. 
     1395rr(b)(12)) is amended--
       (1) in subparagraph (F), in the flush matter at the end, by 
     striking ``Nothing'' and inserting ``Except as provided in 
     subparagraph (G), nothing'';
       (2) by redesignating subparagraph (G) as subparagraph (H); 
     and
       (3) by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G) The Secretary shall increase the amount of the 
     composite rate component of the basic case-mix adjusted 
     system under subparagraph (B) for dialysis services furnished 
     on or after January 1, 2006, by 1.6 percent above the amount 
     of such composite rate component for such services furnished 
     on December 31, 2005.''.

     SEC. 5107. REVISIONS TO PAYMENTS FOR THERAPY SERVICES.

       (a) Exception to Caps for 2006.--
       (1) In general.--Section 1833(g) of the Social Security Act 
     (42 U.S.C. 1395l(g)) is amended--
       (A) in each of paragraphs (1) and (3), by striking 
     ``paragraph (4)'' and inserting ``paragraphs (4) and (5)''; 
     and
       (B) by adding at the end the following new paragraph:
       ``(5) With respect to expenses incurred during 2006 for 
     services, the Secretary shall implement a process under which 
     an individual enrolled under this part may, upon request of 
     the individual or a person on behalf of the individual, 
     obtain an exception from the uniform dollar limitation 
     specified in paragraph (2), for services described in 
     paragraphs (1) and (3) if the provision of such services is 
     determined to be medically necessary. Under such process, if 
     the Secretary does not make a decision on such a request for 
     an exception within 10 business days of the date of the 
     Secretary's receipt of the request, the Secretary shall be 
     deemed to have found the services to be medically 
     necessary.''.
       (2) Timely implementation.--The Secretary of Health and 
     Human Services shall waive such provisions of law and 
     regulation (including those described in section 110(c) of 
     Public Law 108-173) as are necessary to implement the 
     amendments made by paragraph (1) on a timely basis and, 
     notwithstanding any other provision of law, may implement 
     such amendments by program instruction or otherwise. There 
     shall be no administrative or judicial review under section 
     1869 or section 1878 of the Social Security Act (42 U.S.C. 
     1395ff and 1395oo), or otherwise of the process (including 
     the establishment of the process) under section 1833(g)(5) of 
     such Act, as added by paragraph (1).
       (b) Implementation of Clinically Appropriate Code Edits In 
     Order To Identify and Eliminate Improper Payments For Therapy 
     Services.--By not later than July 1, 2006, the Secretary of 
     Health and Human Services shall implement clinically 
     appropriate code edits with respect to payments under part B 
     of title XVIII of the Social Security Act for physical 
     therapy services, occupational therapy services, and speech-
     language pathology services in order to identify and 
     eliminate improper payments for such services, including 
     edits of clinically illogical combinations of procedure codes 
     and other edits to control inappropriate billings.

                        CHAPTER 2--MISCELLANEOUS

     SEC. 5111. ACCELERATED IMPLEMENTATION OF INCOME-RELATED 
                   REDUCTION IN PART B PREMIUM SUBSIDY.

       Section 1839(i)(3)(B) of the Social Security Act (42 U.S.C. 
     1395r(i)(3)(B)) is amended--
       (1) in the heading, by striking ``5-year'' and inserting 
     ``3-year'';
       (2) in the matter preceding clause (i), by striking 
     ``2011'' and inserting ``2009'';
       (3) in clause (i), by striking ``20 percent'' and inserting 
     ``33 percent'';
       (4) in clause (ii), by striking ``40 percent'' and 
     inserting ``67 percent''; and
       (5) by striking clauses (iii) and (iv).

     SEC. 5112. MEDICARE COVERAGE OF ULTRASOUND SCREENING FOR 
                   ABDOMINAL AORTIC ANEURYSMS.

       (a) In General.--Section 1861 of the Social Security Act 
     (42 U.S.C. 1395x) is amended--
       (1) in subsection (s)(2)--
       (A) by striking ``and'' at the end of subparagraph (Y);
       (B) by adding ``and'' at the end of subparagraph (Z) and 
     moving such subparagraph 2 ems to the left; and
       (C) by adding at the end the following new subparagraph:
       ``(AA) ultrasound screening for abdominal aortic aneurysm 
     (as defined in subsection (bbb)) for an individual--
       ``(i) who receives a referral for such an ultrasound 
     screening as a result of an initial preventive physical 
     examination (as defined in section 1861(ww)(1));
       ``(ii) who has not been previously furnished such an 
     ultrasound screening under this title; and
       ``(iii) who--
       ``(I) has a family history of abdominal aortic aneurysm; or
       ``(II) manifests risk factors included in a beneficiary 
     category recommended for screening by the United States 
     Preventive Services Task Force regarding abdominal aortic 
     aneurysms;''; and
       (2) by adding at the end the following new subsection:

          ``Ultrasound Screening for Abdominal Aortic Aneurysm

       ``(bbb) The term `ultrasound screening for abdominal aortic 
     aneurysm' means--
       ``(1) a procedure using sound waves (or such other 
     procedures using alternative technologies, of commensurate 
     accuracy and cost, that the Secretary may specify) provided 
     for the early detection of abdominal aortic aneurysm; and
       ``(2) includes a physician's interpretation of the results 
     of the procedure.''.
       (b) Inclusion of Ultrasound Screening for Abdominal Aortic 
     Aneurysm in Initial Preventive Physical Examination.--Section 
     1861(ww)(2) of such Act (42 U.S.C. 1395x(ww)(2)) is amended 
     by adding at the end the following new subparagraph:
       ``(L) Ultrasound screening for abdominal aortic aneurysm as 
     defined in section 1861(bbb).''.
       (c) Payment for Ultrasound Screening for Abdominal Aortic 
     Aneurysm.--Section 1848(j)(3) of such Act (42 U.S.C. 1395w-
     4(j)(3)) is amended by inserting ``(2)(AA),'' after 
     ``(2)(W),''.
       (d) Frequency.--Section 1862(a)(1) of such Act (42 U.S.C. 
     1395y(a)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (L);
       (2) by striking the semicolon at the end of subparagraph 
     (M) and inserting ``, and''; and
       (3) by adding at the end the following new subparagraph:
       ``(N) in the case of ultrasound screening for abdominal 
     aortic aneurysm which is performed more frequently than is 
     provided for under section 1861(s)(2)(AA);''.
       (e) Non-Application of Part B Deductible.--Section 1833(b) 
     of such Act (42 U.S.C. 1395l(b)) is amended in the first 
     sentence--
       (1) by striking ``and'' before ``(6)''; and
       (2) by inserting ``, and (7) such deductible shall not 
     apply with respect to ultrasound screening for abdominal 
     aortic aneurysm (as defined in section 1861(bbb))'' before 
     the period at the end.
       (f) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after January 1, 
     2007.

     SEC. 5113. IMPROVING PATIENT ACCESS TO, AND UTILIZATION OF, 
                   COLORECTAL CANCER SCREENING.

       (a) Non-Application of Deductible for Colorectal Cancer 
     Screening Tests.--Section 1833(b) of the Social Security Act 
     (42 U.S.C. 1395l(b)), as amended by section 5112(e), is 
     amended in the first sentence--
       (1) by striking ``and'' before ``(7)''; and
       (2) by inserting ``, and (8) such deductible shall not 
     apply with respect to colorectal cancer screening tests (as 
     described in section 1861(pp)(1))'' before the period at the 
     end.
       (b) Conforming Amendments.--Paragraphs (2)(C)(ii) and 
     (3)(C)(ii) of section 1834(d) of such Act (42 U.S.C. 
     1395m(d)) are each amended--
       (1) by striking ``deductible and'' in the heading; and
       (2) in subclause (I), by striking ``deductible or'' each 
     place it appears.
       (c) Effective Date.--The amendments made by this section 
     shall apply to services furnished on or after January 1, 
     2007.

     SEC. 5114. DELIVERY OF SERVICES AT FEDERALLY QUALIFIED HEALTH 
                   CENTERS.

       (a) Coverage.--
       (1) In general.--Section 1861(aa)(3) of the Social Security 
     Act (42 U.S.C. 1395x(aa)(3)) is amended--
       (A) in subparagraph (A), by striking ``, and'' and 
     inserting ``and services described in subsections (qq) and 
     (vv); and'';
       (B) in subparagraph (B), by striking ``sections 329, 330, 
     and 340'' and inserting ``section 330''; and
       (C) in the flush matter at the end, by inserting ``by the 
     center or by a health care professional under contract with 
     the center'' after ``outpatient of a Federally qualified 
     health center''.
       (2) Consolidated billing.--The first sentence of section 
     1842(b)(6)(F) of such Act (42 U.S.C. 1395u(b)(6)(F)) is 
     amended--
       (A) by striking ``and (G)'' and inserting ``(G)''; and
       (B) by inserting before the period at the end the 
     following: ``, and (H) in the case of services described in 
     section 1861(aa)(3) that are furnished by a health care 
     professional under contract with a Federally qualified health 
     center, payment shall be made to the center''.
       (b) Technical Corrections.--Clauses (i) and (ii)(II) of 
     section 1861(aa)(4)(A) of such Act (42 U.S.C. 
     1395x(aa)(4)(A)) are each amended by striking ``(other than 
     subsection (h))''.
       (c) Effective Dates.--The amendments made by this section 
     shall apply to services furnished on or after January 1, 
     2006.

     SEC. 5115. WAIVER OF PART B LATE ENROLLMENT PENALTY FOR 
                   CERTAIN INTERNATIONAL VOLUNTEERS.

       (a) In General.--
       (1) Waiver of penalty.--Section 1839(b) of the Social 
     Security Act (42 U.S.C. 1395r(b)) is

[[Page 30841]]

     amended in the second sentence by inserting the following 
     before the period at the end: ``or months for which the 
     individual can demonstrate that the individual was an 
     individual described in section 1837(k)(3)''.
       (2) Special enrollment period.--
       (A) In general.--Section 1837 of such Act (42 U.S.C. 1395p) 
     is amended by adding at the end the following new subsection:
       ``(k)(1) In the case of an individual who--
       ``(A) at the time the individual first satisfies paragraph 
     (1) or (2) of section 1836, is described in paragraph (3), 
     and has elected not to enroll (or to be deemed enrolled) 
     under this section during the individual's initial enrollment 
     period; or
       ``(B) has terminated enrollment under this section during a 
     month in which the individual is described in paragraph (3),
     there shall be a special enrollment period described in 
     paragraph (2).
       ``(2) The special enrollment period described in this 
     paragraph is the 6-month period beginning on the first day of 
     the month which includes the date that the individual is no 
     longer described in paragraph (3).
       ``(3) For purposes of paragraph (1), an individual 
     described in this paragraph is an individual who--
       ``(A) is serving as a volunteer outside of the United 
     States through a program--
       ``(i) that covers at least a 12-month period; and
       ``(ii) that is sponsored by an organization described in 
     section 501(c)(3) of the Internal Revenue Code of 1986 and 
     exempt from taxation under section 501(a) of such Code; and
       ``(B) demonstrates health insurance coverage while serving 
     in the program.''.
       (B) Coverage period.--Section 1838 of such Act (42 U.S.C. 
     1395q) is amended by adding at the end the following new 
     subsection:
       ``(f) Notwithstanding subsection (a), in the case of an 
     individual who enrolls during a special enrollment period 
     pursuant to section 1837(k), the coverage period shall begin 
     on the first day of the month following the month in which 
     the individual so enrolls.''.
       (b) Effective Date.--The amendment made by subsection 
     (a)(1) shall apply to months beginning with January 2007 and 
     the amendments made by subsection (a)(2) shall take effect on 
     January 1, 2007.

            Subtitle C--Provisions Relating to Parts A and B

     SEC. 5201. HOME HEALTH PAYMENTS.

       (a) 2006 Update.--Section 1895(b)(3)(B)(ii) of the Social 
     Security Act (42 U.S.C. 1395fff(b)(3)(B)(ii)) is amended--
       (1) in subclause (III), by striking ``each of 2005 and 
     2006'' and inserting ``all of 2005'';
       (2) by striking ``or'' at the end of subclause (III);
       (3) in subclause (IV), by striking ``2007 and'' and by 
     redesignating such subclause as subclause (V); and
       (4) by inserting after subclause (III) the following new 
     subclause:

       ``(IV) 2006, 0 percent; and''.

       (b) Applying Rural Add-On Policy for 2006.--Section 421(a) 
     of Medicare Prescription Drug, Improvement, and Modernization 
     Act of 2003 (Public Law 108-173; 117 Stat. 2283) is amended 
     by inserting ``and episodes and visits beginning on or after 
     January 1, 2006, and before January 1, 2007,'' after ``April 
     1, 2005,''.
       (c) Home Health Care Quality Improvement.--Section 
     1895(b)(3)(B) of the Social Security Act (42 
     U.S.C.fff(b)(3)(B)) is amended--
       (1) in clause (ii)(V), as redesignated by subsection 
     (a)(3), by inserting ``subject to clause (v),'' after 
     ``subsequent year,''; and
       (2) by adding at the end the following new clause:
       ``(v) Adjustment if quality data not submitted.--

       ``(I) Adjustment.--For purposes of clause (ii)(V), for 2007 
     and each subsequent year, in the case of a home health agency 
     that does not submit data to the Secretary in accordance with 
     subclause (II) with respect to such a year, the home health 
     market basket percentage increase applicable under such 
     clause for such year shall be reduced by 2 percentage points. 
     Such reduction shall apply only with respect to the year 
     involved, and the Secretary shall not take into account such 
     reduction in computing the prospective payment amount under 
     this section for a subsequent year, and the Medicare Payment 
     Advisory Commission shall carry out the requirements under 
     section 5201(d) of the Deficit Reduction Act of 2005.
       ``(II) Submission of quality data.--For 2007 and each 
     subsequent year, each home health agency shall submit to the 
     Secretary such data that the Secretary determines are 
     appropriate for the measurement of health care quality. Such 
     data shall be submitted in a form and manner, and at a time, 
     specified by the Secretary for purposes of this clause.
       ``(III) Public availability of data submitted.--The 
     Secretary shall establish procedures for making data 
     submitted under subclause (II) available to the public. Such 
     procedures shall ensure that a home health agency has the 
     opportunity to review the data that is to be made public with 
     respect to the agency prior to such data being made 
     public.''.

       (d) MedPAC Report on Value Based Purchasing.--
       (1) In general.--Not later than June 1, 2007, the Medicare 
     Payment Advisory Commission shall submit to Congress a report 
     that includes recommendations on a detailed structure of 
     value based payment adjustments for home health services 
     under the Medicare program under title XVIII of the Social 
     Security Act. Such report shall include recommendations 
     concerning the determination of thresholds, the size of such 
     payments, sources of funds, and the relationship of payments 
     for improvement and attainment of quality.
       (2) Funding.--Out of any funds in the Treasury not 
     otherwise appropriated, there are appropriated to the 
     Medicare Payment Advisory Commission $550,000, to carry out 
     this subsection.

     SEC. 5202. REVISION OF PERIOD FOR PROVIDING PAYMENT FOR 
                   CLAIMS THAT ARE NOT SUBMITTED ELECTRONICALLY.

       (a) Revision.--
       (1) Part a.--Section 1816(c)(3)(B)(ii) of the Social 
     Security Act (42 U.S.C. 1395h(c)(3)(B)(ii)) is amended by 
     striking ``26 days'' and inserting ``28 days''.
       (2) Part b.--Section 1842(c)(3)(B)(ii) of such Act (42 
     U.S.C. 1395u(c)(3)(B)(ii)) is amended by striking ``26 days'' 
     and inserting ``28 days''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to claims submitted on or after January 1, 2006.

     SEC. 5203. TIMEFRAME FOR PART A AND B PAYMENTS.

       Notwithstanding sections 1816(c) and 1842(c)(2) of the 
     Social Security Act or any other provision of law--
       (1) any payment from the Federal Hospital Insurance Trust 
     Fund under section 1817 of the Social Security Act (42 U.S.C. 
     1395i) or from the Federal Supplementary Medical Insurance 
     Trust Fund under section 1841 of such Act (42 U.S.C. 1395t) 
     for claims submitted under part A or B of title XVIII of such 
     Act for items and services furnished under such part A or B, 
     respectively, that would otherwise be payable during the 
     period beginning on September 22, 2006, and ending on 
     September 30, 2006, shall be paid on the first business day 
     of October 2006; and
       (2) no interest or late penalty shall be paid to an entity 
     or individual for any delay in a payment by reason of the 
     application of paragraph (1).

     SEC. 5204. MEDICARE INTEGRITY PROGRAM FUNDING.

       Section 1817(k)(4) of the Social Security Act (42 U.S.C. 
     1395i(k)(4)) is amended--
       (1) in subparagraph (B), by striking ``The amount'' and 
     inserting ``Subject to subparagraph (C), the amount''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Adjustments.--The amount appropriated under 
     subparagraph (A) for a fiscal year is increased as follows:
       ``(i) For fiscal year 2006, $100,000,000.''.

               Subtitle D--Provisions Relating to Part C

     SEC. 5301. PHASE-OUT OF RISK ADJUSTMENT BUDGET NEUTRALITY IN 
                   DETERMINING THE AMOUNT OF PAYMENTS TO MEDICARE 
                   ADVANTAGE ORGANIZATIONS.

       (a) In General.--Section 1853 of the Social Security Act 
     (42 U.S.C. 1395w-23) is amended--
       (1) in subsection (j)(1)--
       (A) in subparagraph (A)--
       (i) by inserting ``(or, beginning with 2007, \1/12\ of the 
     applicable amount determined under subsection (k)(1))'' after 
     ``1853(c)(1)''; and
       (ii) by inserting ``(for years before 2007)'' after 
     ``adjusted as appropriate'';
       (B) in subparagraph (B), by inserting ``(for years before 
     2007)'' after ``adjusted as appropriate''; and
       (2) by adding at the end the following new subsection:
       ``(k) Determination of Applicable Amount for Purposes of 
     Calculating the Benchmark Amounts.--
       ``(1) Applicable amount defined.--For purposes of 
     subsection (j), subject to paragraph (2), the term 
     `applicable amount' means for an area--
       ``(A) for 2007--
       ``(i) if such year is not specified under subsection 
     (c)(1)(D)(ii), an amount equal to the amount specified in 
     subsection (c)(1)(C) for the area for 2006--

       ``(I) first adjusted by the rescaling factor for 2006 for 
     the area (as made available by the Secretary in the 
     announcement of the rates on April 4, 2005, under subsection 
     (b)(1), but excluding any national adjustment factors for 
     coding intensity and risk adjustment budget neutrality that 
     were included in such factor); and
       ``(II) then increased by the national per capita MA growth 
     percentage, described in subsection (c)(6) for 2007, but not 
     taking into account any adjustment under subparagraph (C) of 
     such subsection for a year before 2004;

       ``(ii) if such year is specified under subsection 
     (c)(1)(D)(ii), an amount equal to the greater of--

       ``(I) the amount determined under clause (i) for the area 
     for the year; or
       ``(II) the amount specified in subsection (c)(1)(D) for the 
     area for the year; and

       ``(B) for a subsequent year--
       ``(i) if such year is not specified under subsection 
     (c)(1)(D)(ii), an amount equal to the amount determined under 
     this paragraph for the area for the previous year (determined 
     without regard to paragraph (2)), increased by the national 
     per capita MA growth percentage, described in subsection 
     (c)(6) for

[[Page 30842]]

     that succeeding year, but not taking into account any 
     adjustment under subparagraph (C) of such subsection for a 
     year before 2004; and
       ``(ii) if such year is specified under subsection 
     (c)(1)(D)(ii), an amount equal to the greater of--

       ``(I) the amount determined under clause (i) for the area 
     for the year; or
       ``(II) the amount specified in subsection (c)(1)(D) for the 
     area for the year.

       ``(2) Phase-out of budget neutrality factor.--
       ``(A) In general.--Except as provided in subparagraph (D), 
     in the case of 2007 through 2010, the applicable amount 
     determined under paragraph (1) shall be multiplied by a 
     factor equal to 1 plus the product of--
       ``(i) the percent determined under subparagraph (B) for the 
     year; and
       ``(ii) the applicable phase-out factor for the year under 
     subparagraph (C).
       ``(B) Percent determined.--
       ``(i) In general.--For purposes of subparagraph (A)(i), 
     subject to clause (iv), the percent determined under this 
     subparagraph for a year is a percent equal to a fraction the 
     numerator of which is described in clause (ii) and the 
     denominator of which is described in clause (iii).
       ``(ii) Numerator based on difference between demographic 
     rate and risk rate.--

       ``(I) In general.--The numerator described in this clause 
     is an amount equal to the amount by which the demographic 
     rate described in subclause (II) exceeds the risk rate 
     described in subclause (III).
       ``(II) Demographic rate.--The demographic rate described in 
     this subclause is the Secretary's estimate of the total 
     payments that would have been made under this part in the 
     year if all the monthly payment amounts for all MA plans were 
     equal to \1/12\ of the annual MA capitation rate under 
     subsection (c)(1) for the area and year, adjusted pursuant to 
     subsection (a)(1)(C).
       ``(III) Risk rate.--The risk rate described in this 
     subclause is the Secretary's estimate of the total payments 
     that would have been made under this part in the year if all 
     the monthly payment amounts for all MA plans were equal to 
     the amount described in subsection (j)(1)(A) (determined as 
     if this paragraph had not applied) under subsection (j) for 
     the area and year, adjusted pursuant to subsection (a)(1)(C).

       ``(iii) Denominator based on risk rate.--The denominator 
     described in this clause is equal to the total amount 
     estimated for the year under clause (ii)(III).
       ``(iv) Requirements.--In estimating the amounts under the 
     previous clauses, the Secretary shall--

       ``(I) use a complete set of the most recent and 
     representative Medicare Advantage risk scores under 
     subsection (a)(3) that are available from the risk adjustment 
     model announced for the year;
       ``(II) adjust the risk scores to reflect changes in 
     treatment and coding practices in the fee-for-service sector;
       ``(III) adjust the risk scores for differences in coding 
     patterns between Medicare Advantage plans and providers under 
     the original medicare fee-for-service program under parts A 
     and B to the extent that the Secretary has identified such 
     differences, as required in subsection (a)(1)(C);
       ``(IV) as necessary, adjust the risk scores for late data 
     submitted by Medicare Advantage organizations;
       ``(V) as necessary, adjust the risk scores for lagged 
     cohorts; and
       ``(VI) as necessary, adjust the risk scores for changes in 
     enrollment in Medicare Advantage plans during the year.

       ``(v) Authority.--In computing such amounts the Secretary 
     may take into account the estimated health risk of enrollees 
     in preferred provider organization plans (including MA 
     regional plans) for the year.
       ``(C) Applicable phase-out factor.--For purposes of 
     subparagraph (A)(ii), the term `applicable phase-out factor' 
     means--
       ``(i) for 2007, 0.55;
       ``(ii) for 2008, 0.40;
       ``(iii) for 2009, 0.25; and
       ``(iv) for 2010, 0.05.
       ``(D) Termination of application.--Subparagraph (A) shall 
     not apply in a year if the amount estimated under 
     subparagraph (B)(ii)(III) for the year is equal to or greater 
     than the amount estimated under subparagraph (B)(ii)(II) for 
     the year.
       ``(3) No revision in percent.--
       ``(A) In general.--The Secretary may not make any 
     adjustment to the percent determined under paragraph (2)(B) 
     for any year.
       ``(B) Rule of construction.--Nothing in this subsection 
     shall be construed to limit the authority of the Secretary to 
     make adjustments to the applicable amounts determined under 
     paragraph (1) as appropriate for purposes of updating data or 
     for purposes of adopting an improved risk adjustment 
     methodology.''.
       (b) Refinements to Health Status Adjustment.--Section 
     1853(a)(1)(C) of such Act (42 U.S.C. 1395w-23) is amended--
       (1) by designating the matter after the heading as a clause 
     (i) with the following heading: ``In general.--'' and 
     indenting appropriately; and
       (2) by adding at the end the following:
       ``(ii) Application during phase-out of budget neutrality 
     factor.--For 2006 through 2010:

       ``(I) In applying the adjustment under clause (i) for 
     health status to payment amounts, the Secretary shall ensure 
     that such adjustment reflects changes in treatment and coding 
     practices in the fee-for-service sector and reflects 
     differences in coding patterns between Medicare Advantage 
     plans and providers under part A and B to the extent that the 
     Secretary has identified such differences.
       ``(II) In order to ensure payment accuracy, the Secretary 
     shall conduct an analysis of the differences described in 
     subclause (I). The Secretary shall complete such analysis by 
     a date necessary to ensure that the results of such analysis 
     are incorporated into the risk scores only for 2008, 2009, 
     and 2010. In conducting such analysis, the Secretary shall 
     use data submitted with respect to 2004 and subsequent years, 
     as available.''.

     SEC. 5302. RURAL PACE PROVIDER GRANT PROGRAM.

       (a) Definitions.--In this section:
       (1) CMS.--The term ``CMS'' means the Centers for Medicare & 
     Medicaid Services.
       (2) PACE program.--The term ``PACE program'' has the 
     meaning given that term in sections 1894(a)(2) and 1934(a)(2) 
     of the Social Security Act (42 U.S.C. 1395eee(a)(2); 1396u-
     4(a)(2)).
       (3) PACE provider.--The term ``PACE provider'' has the 
     meaning given that term in section 1894(a)(3) or 1934(a)(3) 
     of the Social Security Act (42 U.S.C. 1395eee(a)(3); 1396u-
     4(a)(3)).
       (4) Rural area.--The term ``rural area'' has the meaning 
     given that term in section 1886(d)(2)(D) of the Social 
     Security Act (42 U.S.C. 1395ww(d)(2)(D)).
       (5) Rural pace pilot site.--The term ``rural PACE pilot 
     site'' means a PACE provider that has been approved to 
     provide services in a geographic service area that is, in 
     whole or in part, a rural area, and that has received a site 
     development grant under this section.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (b) Site Development Grants and Technical Assistance 
     Program.--
       (1) Site development grants.--
       (A) In general.--The Secretary shall establish a process 
     and criteria to award site development grants to qualified 
     PACE providers that have been approved to serve a rural area.
       (B) Amount per award.--A site development grant awarded 
     under subparagraph (A) to any individual rural PACE pilot 
     site shall not exceed $750,000.
       (C) Number of awards.--Not more than 15 rural PACE pilot 
     sites shall be awarded a site development grant under 
     subparagraph (A).
       (D) Use of funds.--Funds made available under a site 
     development grant awarded under subparagraph (A) may be used 
     for the following expenses only to the extent such expenses 
     are incurred in relation to establishing or delivering PACE 
     program services in a rural area:
       (i) Feasibility analysis and planning.
       (ii) Interdisciplinary team development.
       (iii) Development of a provider network, including contract 
     development.
       (iv) Development or adaptation of claims processing 
     systems.
       (v) Preparation of special education and outreach efforts 
     required for the PACE program.
       (vi) Development of expense reporting required for 
     calculation of outlier payments or reconciliation processes.
       (vii) Development of any special quality of care or patient 
     satisfaction data collection efforts.
       (viii) Establishment of a working capital fund to sustain 
     fixed administrative, facility, or other fixed costs until 
     the provider reaches sufficient enrollment size.
       (ix) Startup and development costs incurred prior to the 
     approval of the rural PACE pilot site's PACE provider 
     application by CMS.
       (x) Any other efforts determined by the rural PACE pilot 
     site to be critical to its successful startup, as approved by 
     the Secretary.
       (E) Appropriation.--
       (i) In general.--Out of funds in the Treasury not otherwise 
     appropriated, there are appropriated to the Secretary to 
     carry out this subsection for fiscal year 2006, $7,500,000.
       (ii) Availability.--Funds appropriated under clause (i) 
     shall remain available for expenditure through fiscal year 
     2008.
       (2) Technical assistance program.--The Secretary shall 
     establish a technical assistance program to provide--
       (A) outreach and education to State agencies and provider 
     organizations interested in establishing PACE programs in 
     rural areas; and
       (B) technical assistance necessary to support rural PACE 
     pilot sites.
       (c) Cost Outlier Protection for Rural Pace Pilot Sites.--
       (1) Establishment of fund for reimbursement of outlier 
     costs.--Notwithstanding any other provision of law, the 
     Secretary shall establish an outlier fund to reimburse rural 
     PACE pilot sites for recognized outlier costs (as defined in 
     paragraph (3)) incurred for eligible outlier participants (as 
     defined in

[[Page 30843]]

     paragraph (2)) in an amount, subject to paragraph (4), equal 
     to 80 percent of the amount by which the recognized outlier 
     costs exceeds $50,000.
       (2) Eligible outlier participant.--For purposes of this 
     subsection, the term ``eligible outlier participant'' means a 
     PACE program eligible individual (as defined in sections 
     1894(a)(5) and 1934(a)(5) of the Social Security Act (42 
     U.S.C. 1395eee(a)(5); 1396u-4(a)(5) who resides in a rural 
     area and with respect to whom the rural PACE pilot site 
     incurs more than $50,000 in recognized costs in a 12-month 
     period.
       (3) Recognized outlier costs defined.--
       (A) In general.--For purposes of this subsection, the term 
     ``recognized outlier costs'' means, with respect to services 
     furnished to an eligible outlier participant by a rural PACE 
     pilot site, the least of the following (as documented by the 
     site to the satisfaction of the Secretary) for the provision 
     of inpatient and related physician and ancillary services for 
     the eligible outlier participant in a given 12-month period:
       (i) If the services are provided under a contract between 
     the pilot site and the provider, the payment rate specified 
     under the contract.
       (ii) The payment rate established under the original 
     medicare fee-for-service program for such service.
       (iii) The amount actually paid for the services by the 
     pilot site.
       (B) Inclusion in only one period.--Recognized outlier costs 
     may not be included in more than one 12-month period.
       (3) Outlier expense payment.--
       (A) Payment for outlier costs.--Subject to subparagraph 
     (B), in the case of a rural PACE pilot site that has incurred 
     outlier costs for an eligible outlier participant, the rural 
     PACE pilot site shall receive an outlier expense payment 
     equal to 80 percent of such costs that exceed $50,000.
       (4) Limitations.--
       (A) Costs incurred per eligible outlier participant.--The 
     total amount of outlier expense payments made under this 
     subsection to a rural PACE pilot site with respect to an 
     eligible outlier participant for any 12-month period shall 
     not exceed $100,000 for the 12-month period used to calculate 
     the payment.
       (B) Costs incurred per provider.--No rural PACE pilot site 
     may receive more than $500,000 in total outlier expense 
     payments in a 12-month period.
       (C) Limitation of outlier cost reimbursement period.--A 
     rural PACE pilot site shall only receive outlier expense 
     payments under this subsection with respect to costs incurred 
     during the first 3 years of the site's operation.
       (5) Requirement to access risk reserves prior to payment.--
     A rural PACE pilot site shall access and exhaust any risk 
     reserves held or arranged for the provider (other than 
     revenue or reserves maintained to satisfy the requirements of 
     section 460.80(c) of title 42, Code of Federal Regulations) 
     and any working capital established through a site 
     development grant awarded under subsection (b)(1), prior to 
     receiving any payment from the outlier fund.
       (6) Application.--In order to receive an outlier expense 
     payment under this subsection with respect to an eligible 
     outlier participant, a rural PACE pilot site shall submit an 
     application containing--
       (A) documentation of the costs incurred with respect to the 
     participant;
       (B) a certification that the site has complied with the 
     requirements under paragraph (4); and
       (C) such additional information as the Secretary may 
     require.
       (7) Appropriation.--
       (A) In general.--Out of funds in the Treasury not otherwise 
     appropriated, there are appropriated to the Secretary to 
     carry out this subsection for fiscal year 2006, $10,000,000.
       (B) Availability.--Funds appropriated under subparagraph 
     (A) shall remain available for expenditure through fiscal 
     year 2010.
       (d) Evaluation of PACE Providers Serving Rural Service 
     Areas.--Not later than 60 months after the date of enactment 
     of this Act, the Secretary shall submit a report to Congress 
     containing an evaluation of the experience of rural PACE 
     pilot sites.
       (e) Amounts in Addition to Payments Under Social Security 
     Act.--Any amounts paid under the authority of this section to 
     a PACE provider shall be in addition to payments made to the 
     provider under section 1894 or 1934 of the Social Security 
     Act (42 U.S.C. 1395eee; 1396u-4).

                      TITLE VI--MEDICAID AND SCHIP

                          Subtitle A--Medicaid

               CHAPTER 1--PAYMENT FOR PRESCRIPTION DRUGS

     SEC. 6001. FEDERAL UPPER PAYMENT LIMIT FOR MULTIPLE SOURCE 
                   DRUGS AND OTHER DRUG PAYMENT PROVISIONS.

       (a) Modification of Federal Upper Payment Limit for 
     Multiple Source Drugs; Definition of Multiple Source Drugs.--
     Section 1927 of the Social Security Act (42 U.S.C. 1396r-8) 
     is amended--
       (1) in subsection (e)(4)--
       (A) by striking ``The Secretary'' and inserting ``Subject 
     to paragraph (5), the Secretary''; and
       (B) by inserting ``(or, effective January 1, 2007, two or 
     more)'' after ``three or more'';
       (2) by adding at the end of subsection (e) the following 
     new paragraph:
       ``(5) Use of amp in upper payment limits.--Effective 
     January 1, 2007, in applying the Federal upper reimbursement 
     limit under paragraph (4) and section 447.332(b) of title 42 
     of the Code of Federal Regulations, the Secretary shall 
     substitute 250 percent of the average manufacturer price (as 
     computed without regard to customary prompt pay discounts 
     extended to wholesalers) for 150 percent of the published 
     price.'';
       (3) in subsection (k)(7)(A)(i), in the matter preceding 
     subclause (I), by striking ``are 2 or more drug products'' 
     and inserting ``at least 1 other drug product''; and
       (4) in subclauses (I), (II), and (III) of subsection 
     (k)(7)(A)(i), by striking ``are'' and inserting ``is'' each 
     place it appears.
       (b) Disclosure of Price Information To States and the 
     Public.--Subsection (b)(3) of such section is amended--
       (1) in subparagraph (A)--
       (A) in clause (i), by inserting ``month of a'' after ``last 
     day of each''; and
       (B) by adding at the end the following: ``Beginning July 1, 
     2006, the Secretary shall provide on a monthly basis to 
     States under subparagraph (D)(iv) the most recently reported 
     average manufacturer prices for single source drugs and for 
     multiple source drugs and shall, on at least a quarterly 
     basis, update the information posted on the website under 
     subparagraph (D)(v).''; and
       (2) in subparagraph (D)--
       (A) by striking ``and'' at the end of clause (ii);
       (B) by striking the period at the end of clause (iii) and 
     inserting a comma; and
       (C) by inserting after clause (iii) the following new 
     clauses:
       ``(iv) to States to carry out this title, and
       ``(v) to the Secretary to disclose (through a website 
     accessible to the public) average manufacturer prices.''.
       (c) Definition of Average Manufacturer Price.--
       (1) Exclusion of customary prompt pay discounts extended to 
     wholesalers.--Subsection (k)(1) of such section is amended--
       (A) by striking ``The term'' and inserting the following:
       ``(A) In general.--Subject to subparagraph (B), the term'';
       (B) by striking ``, after deducting customary prompt pay 
     discounts''; and
       (C) by adding at the end the following:
       ``(B) Exclusion of customary prompt pay discounts extended 
     to wholesalers.--The average manufacturer price for a covered 
     outpatient drug shall be determined without regard to 
     customary prompt pay discounts extended to wholesalers.''.
       (2) Manufacturer reporting of prompt pay discounts.--
     Subsection (b)(3)(A)(i) of such section is amended by 
     inserting ``, customary prompt pay discounts extended to 
     wholesalers,'' after ``(k)(1))''.
       (3) Requirement to promulgate regulation.--
       (A) Inspector general recommendations.--Not later than June 
     1, 2006, the Inspector General of the Department of Health 
     and Human Services shall--
       (i) review the requirements for, and manner in which, 
     average manufacturer prices are determined under section 1927 
     of the Social Security Act, as amended by this section; and
       (ii) shall submit to the Secretary of Health and Human 
     Services and Congress such recommendations for changes in 
     such requirements or manner as the Inspector General 
     determines to be appropriate.
       (B) Deadline for promulgation.--Not later than July 1, 
     2007, the Secretary of Health and Human Services shall 
     promulgate a regulation that clarifies the requirements for, 
     and manner in which, average manufacturer prices are 
     determined under section 1927 of the Social Security Act, 
     taking into consideration the recommendations submitted to 
     the Secretary in accordance with subparagraph (A)(ii).
       (d) Exclusion of Sales at a Nominal Price from 
     Determination of Best Price.--
       (1) Manufacturer reporting of sales.--Subsection 
     (b)(3)(A)(iii) of such section is amended by inserting before 
     the period at the end the following: ``, and, for calendar 
     quarters beginning on or after January 1, 2007 and only with 
     respect to the information described in subclause (III), for 
     covered outpatient drugs''.
       (2) Limitation on sales at a nominal price.--Subsection 
     (c)(1) of such section is amended by adding at the end the 
     following new subparagraph:
       ``(D) Limitation on sales at a nominal price.--
       ``(i) In general.--For purposes of subparagraph 
     (C)(ii)(III) and subsection (b)(3)(A)(iii)(III), only sales 
     by a manufacturer of covered outpatient drugs at nominal 
     prices to the following shall be considered to be sales at a 
     nominal price or merely nominal in amount:

       ``(I) A covered entity described in section 340B(a)(4) of 
     the Public Health Service Act.
       ``(II) An intermediate care facility for the mentally 
     retarded.
       ``(III) A State-owned or operated nursing facility.
       ``(IV) Any other facility or entity that the Secretary 
     determines is a safety net provider to which sales of such 
     drugs at a nominal

[[Page 30844]]

     price would be appropriate based on the factors described in 
     clause (ii).

       ``(ii) Factors.--The factors described in this clause with 
     respect to a facility or entity are the following:

       ``(I) The type of facility or entity.
       ``(II) The services provided by the facility or entity.
       ``(III) The patient population served by the facility or 
     entity.
       ``(IV) The number of other facilities or entities eligible 
     to purchase at nominal prices in the same service area.

       ``(iii) Nonapplication.--Clause (i) shall not apply with 
     respect to sales by a manufacturer at a nominal price of 
     covered outpatient drugs pursuant to a master agreement under 
     section 8126 of title 38, United States Code.''.
       (e) Retail Survey Prices; State Payment and Utilization 
     Rates; and Performance Rankings.--Such section is further 
     amended by inserting after subsection (e) the following new 
     subsection:
       ``(f) Survey of Retail Prices; State Payment and 
     Utilization Rates; and Performance Rankings.--
       ``(1) Survey of retail prices.--
       ``(A) Use of vendor.--The Secretary may contract services 
     for--
       ``(i) the determination on a monthly basis of retail survey 
     prices for covered outpatient drugs that represent a 
     nationwide average of consumer purchase prices for such 
     drugs, net of all discounts and rebates (to the extent any 
     information with respect to such discounts and rebates is 
     available); and
       ``(ii) the notification of the Secretary when a drug 
     product that is therapeutically and pharmaceutically 
     equivalent and bioequivalent becomes generally available.
       ``(B) Secretary response to notification of availability of 
     multiple source products.--If contractor notifies the 
     Secretary under subparagraph (A)(ii) that a drug product 
     described in such subparagraph has become generally 
     available, the Secretary shall make a determination, within 7 
     days after receiving such notification, as to whether the 
     product is now described in subsection (e)(4).
       ``(C) Use of competitive bidding.--In contracting for such 
     services, the Secretary shall competitively bid for an 
     outside vendor that has a demonstrated history in--
       ``(i) surveying and determining, on a representative 
     nationwide basis, retail prices for ingredient costs of 
     prescription drugs;
       ``(ii) working with retail pharmacies, commercial payers, 
     and States in obtaining and disseminating such price 
     information; and
       ``(iii) collecting and reporting such price information on 
     at least a monthly basis.
     In contracting for such services, the Secretary may waive 
     such provisions of the Federal Acquisition Regulation as are 
     necessary for the efficient implementation of this 
     subsection, other than provisions relating to confidentiality 
     of information and such other provisions as the Secretary 
     determines appropriate.
       ``(D) Additional provisions.--A contract with a vendor 
     under this paragraph shall include such terms and conditions 
     as the Secretary shall specify, including the following:
       ``(i) The vendor must monitor the marketplace and report to 
     the Secretary each time there is a new covered outpatient 
     drug generally available.
       ``(ii) The vendor must update the Secretary no less often 
     than monthly on the retail survey prices for covered 
     outpatient drugs.
       ``(iii) The contract shall be effective for a term of 2 
     years.
       ``(E) Availability of information to states.--Information 
     on retail survey prices obtained under this paragraph, 
     including applicable information on single source drugs, 
     shall be provided to States on at least a monthly basis. The 
     Secretary shall devise and implement a means for providing 
     access to each State agency designated under section 
     1902(a)(5) with responsibility for the administration or 
     supervision of the administration of the State plan under 
     this title of the retail survey price determined under this 
     paragraph.
       ``(2) Annual state report.--Each State shall annually 
     report to the Secretary information on--
       ``(A) the payment rates under the State plan under this 
     title for covered outpatient drugs;
       ``(B) the dispensing fees paid under such plan for such 
     drugs; and
       ``(C) utilization rates for noninnovator multiple source 
     drugs under such plan.
       ``(3) Annual state performance rankings.--
       ``(A) Comparative analysis.--The Secretary annually shall 
     compare, for the 50 most widely prescribed drugs identified 
     by the Secretary, the national retail sales price data 
     (collected under paragraph (1)) for such drugs with data on 
     prices under this title for each such drug for each State.
       ``(B) Availability of information.--The Secretary shall 
     submit to Congress and the States full information regarding 
     the annual rankings made under subparagraph (A).
       ``(4) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Secretary of Health and Human Services $5,000,000 for each of 
     fiscal years 2006 through 2010 to carry out this 
     subsection.''.
       (f) Miscellaneous Amendments.--
       (1) In general.--Sections 1927(g)(1)(B)(i)(II) and 
     1861(t)(2)(B)(ii)(I) of such Act are each amended by 
     inserting ``(or its successor publications)'' after ``United 
     States Pharmacopoeia-Drug Information''.
       (2) Paperwork reduction.--The last sentence of section 
     1927(g)(2)(A)(ii) of such Act (42 U.S.C. 1396r-
     8(g)(2)(A)(ii)) is amended by inserting before the period at 
     the end the following: ``, or to require verification of the 
     offer to provide consultation or a refusal of such offer''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       (g) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall take effect on January 
     1, 2007, without regard to whether or not final regulations 
     to carry out such amendments have been promulgated by such 
     date.

     SEC. 6002. COLLECTION AND SUBMISSION OF UTILIZATION DATA FOR 
                   CERTAIN PHYSICIAN ADMINISTERED DRUGS.

       (a) In General.--Section 1927(a) of the Social Security Act 
     (42 U.S.C. 1396r-8(a)) is amended by adding at the end the 
     following new paragraph:
       ``(7) Requirement for submission of utilization data for 
     certain physician administered drugs.--
       ``(A) Single source drugs.--In order for payment to be 
     available under section 1903(a) for a covered outpatient drug 
     that is a single source drug that is physician administered 
     under this title (as determined by the Secretary), and that 
     is administered on or after January 1, 2006, the State shall 
     provide for the collection and submission of such utilization 
     data and coding (such as J-codes and National Drug Code 
     numbers) for each such drug as the Secretary may specify as 
     necessary to identify the manufacturer of the drug in order 
     to secure rebates under this section for drugs administered 
     for which payment is made under this title.
       ``(B) Multiple source drugs.--
       ``(i) Identification of most frequently physician 
     administered multiple source drugs.--Not later than January 
     1, 2007, the Secretary shall publish a list of the 20 
     physician administered multiple source drugs that the 
     Secretary determines have the highest dollar volume of 
     physician administered drugs dispensed under this title. The 
     Secretary may modify such list from year to year to reflect 
     changes in such volume.
       ``(ii) Requirement.--In order for payment to be available 
     under section 1903(a) for a covered outpatient drug that is a 
     multiple source drug that is physician administered (as 
     determined by the Secretary), that is on the list published 
     under clause (i), and that is administered on or after 
     January 1, 2008, the State shall provide for the submission 
     of such utilization data and coding (such as J-codes and 
     National Drug Code numbers) for each such drug as the 
     Secretary may specify as necessary to identify the 
     manufacturer of the drug in order to secure rebates under 
     this section.
       ``(C) Use of NDC codes.--Not later than January 1, 2007, 
     the information shall be submitted under subparagraphs (A) 
     and (B)(ii) using National Drug Code codes unless the 
     Secretary specifies that an alternative coding system should 
     be used.
       ``(D) Hardship waiver.--The Secretary may delay the 
     application of subparagraph (A) or (B)(ii), or both, in the 
     case of a State to prevent hardship to States which require 
     additional time to implement the reporting system required 
     under the respective subparagraph.''.
       (b) Limitation on Payment.--Section 1903(i)(10) of such Act 
     (42 U.S.C. 1396b(i)(10)), is amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by striking ``or'' at the end of subparagraph (B) and 
     inserting ``and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) with respect to covered outpatient drugs described in 
     section 1927(a)(7), unless information respecting utilization 
     data and coding on such drugs that is required to be 
     submitted under such section is submitted in accordance with 
     such section; or''.

     SEC. 6003. IMPROVED REGULATION OF DRUGS SOLD UNDER A NEW DRUG 
                   APPLICATION APPROVED UNDER SECTION 505(C) OF 
                   THE FEDERAL FOOD, DRUG, AND COSMETIC ACT.

       (a) Inclusion With Other Reported Average Manufacturer and 
     Best Prices.--Section 1927(b)(3)(A) of the Social Security 
     Act (42 U.S.C. 1396r-8(b)(3)(A)) is amended--
       (1) by striking clause (i) and inserting the following:
       ``(i) not later than 30 days after the last day of each 
     rebate period under the agreement--

       ``(I) on the average manufacturer price (as defined in 
     subsection (k)(1)) for covered outpatient drugs for the 
     rebate period under the agreement (including for all such 
     drugs that are sold under a new drug application approved 
     under section 505(c) of the Federal Food, Drug, and Cosmetic 
     Act); and
       ``(II) for single source drugs and innovator multiple 
     source drugs (including all such drugs that are sold under a 
     new drug application approved under section 505(c) of the 
     Federal Food, Drug, and Cosmetic Act), on the

[[Page 30845]]

     manufacturer's best price (as defined in subsection 
     (c)(1)(C)) for such drugs for the rebate period under the 
     agreement;''; and

       (2) in clause (ii), by inserting ``(including for such 
     drugs that are sold under a new drug application approved 
     under section 505(c) of the Federal Food, Drug, and Cosmetic 
     Act)'' after ``drugs''.
       (b) Conforming Amendments.--Section 1927 of such Act (42 
     U.S.C. 1396r-8) is amended--
       (1) in subsection (c)(1)(C)--
       (A) in clause (i), in the matter preceding subclause (I), 
     by inserting after ``or innovator multiple source drug of a 
     manufacturer'' the following: ``(including the lowest price 
     available to any entity for any such drug of a manufacturer 
     that is sold under a new drug application approved under 
     section 505(c) of the Federal Food, Drug, and Cosmetic 
     Act)''; and
       (B) in clause (ii)--
       (i) in subclause (II), by striking ``and'' at the end;
       (ii) in subclause (III), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:

       ``(IV) in the case of a manufacturer that approves, allows, 
     or otherwise permits any other drug of the manufacturer to be 
     sold under a new drug application approved under section 
     505(c) of the Federal Food, Drug, and Cosmetic Act, shall be 
     inclusive of the lowest price for such authorized drug 
     available from the manufacturer during the rebate period to 
     any manufacturer, wholesaler, retailer, provider, health 
     maintenance organization, nonprofit entity, or governmental 
     entity within the United States, excluding those prices 
     described in subclauses (I) through (IV) of clause (i).''; 
     and

       (2) in subsection (k), as amended by section 6001(c)(1), by 
     adding at the end the following:
       ``(C) Inclusion of section 505(c) drugs.--In the case of a 
     manufacturer that approves, allows, or otherwise permits any 
     drug of the manufacturer to be sold under a new drug 
     application approved under section 505(c) of the Federal 
     Food, Drug, and Cosmetic Act, such term shall be inclusive of 
     the average price paid for such drug by wholesalers for drugs 
     distributed to the retail pharmacy class of trade.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on January 1, 2007.

     SEC. 6004. CHILDREN'S HOSPITAL PARTICIPATION IN SECTION 340B 
                   DRUG DISCOUNT PROGRAM.

       (a) In General.--Section 1927(a)(5)(B) of the Social 
     Security Act (42 U.S.C. 1396r- 8(a)(5)(B)) is amended by 
     inserting before the period at the end the following: ``and a 
     children's hospital described in section 1886(d)(1)(B)(iii) 
     which meets the requirements of clauses (i) and (iii) of 
     section 340B(b)(4)(L) of the Public Health Service Act and 
     which would meet the requirements of clause (ii) of such 
     section if that clause were applied by taking into account 
     the percentage of care provided by the hospital to patients 
     eligible for medical assistance under a State plan under this 
     title''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to drugs purchased on or after the date of the 
     enactment of this Act.

                CHAPTER 2--LONG-TERM CARE UNDER MEDICAID

              Subchapter A--Reform of Asset Transfer Rules

     SEC. 6011. LENGTHENING LOOK-BACK PERIOD; CHANGE IN BEGINNING 
                   DATE FOR PERIOD OF INELIGIBILITY.

       (a) Lengthening Look-Back Period for All Disposals to 5 
     Years.--Section 1917(c)(1)(B)(i) of the Social Security Act 
     (42 U.S.C. 1396p(c)(1)(B)(i)) is amended by inserting ``or in 
     the case of any other disposal of assets made on or after the 
     date of the enactment of the Deficit Reduction Act of 2005'' 
     before ``, 60 months''.
       (b) Change in Beginning Date for Period of Ineligibility.--
     Section 1917(c)(1)(D) of such Act (42 U.S.C. 1396p(c)(1)(D)) 
     is amended--
       (1) by striking ``(D) The date'' and inserting ``(D)(i) In 
     the case of a transfer of asset made before the date of the 
     enactment of the Deficit Reduction Act of 2005, the date''; 
     and
       (2) by adding at the end the following new clause:
       ``(ii) In the case of a transfer of asset made on or after 
     the date of the enactment of the Deficit Reduction Act of 
     2005, the date specified in this subparagraph is the first 
     day of a month during or after which assets have been 
     transferred for less than fair market value, or the date on 
     which the individual is eligible for medical assistance under 
     the State plan and would otherwise be receiving institutional 
     level care described in subparagraph (C) based on an approved 
     application for such care but for the application of the 
     penalty period, whichever is later, and which does not occur 
     during any other period of ineligibility under this 
     subsection.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to transfers made on or after the date of the 
     enactment of this Act.
       (d) Availability of Hardship Waivers.--Each State shall 
     provide for a hardship waiver process in accordance with 
     section 1917(c)(2)(D) of the Social Security Act (42 U.S.C. 
     1396p(c)(2)(D))--
       (1) under which an undue hardship exists when application 
     of the transfer of assets provision would deprive the 
     individual--
       (A) of medical care such that the individual's health or 
     life would be endangered; or
       (B) of food, clothing, shelter, or other necessities of 
     life; and
       (2) which provides for--
       (A) notice to recipients that an undue hardship exception 
     exists;
       (B) a timely process for determining whether an undue 
     hardship waiver will be granted; and
       (C) a process under which an adverse determination can be 
     appealed.
       (e) Additional Provisions on Hardship Waivers.--
       (1) Application by facility.--Section 1917(c)(2) of the 
     Social Security Act (42 U.S.C. 1396p(c)(2)) is amended--
       (A) by striking the semicolon at the end of subparagraph 
     (D) and inserting a period; and
       (B) by adding after and below such subparagraph the 
     following:
     ``The procedures established under subparagraph (D) shall 
     permit the facility in which the institutionalized individual 
     is residing to file an undue hardship waiver application on 
     behalf of the individual with the consent of the individual 
     or the personal representative of the individual.''.
       (2) Authority to make bed hold payments for hardship 
     applicants.--Such section is further amended by adding at the 
     end the following: ``While an application for an undue 
     hardship waiver is pending under subparagraph (D) in the case 
     of an individual who is a resident of a nursing facility, if 
     the application meets such criteria as the Secretary 
     specifies, the State may provide for payments for nursing 
     facility services in order to hold the bed for the individual 
     at the facility, but not in excess of payments for 30 
     days.''.

     SEC. 6012. DISCLOSURE AND TREATMENT OF ANNUITIES.

       (a) In General.--Section 1917 of the Social Security Act 
     (42 U.S.C. 1396p) is amended by redesignating subsection (e) 
     as subsection (f) and by inserting after subsection (d) the 
     following new subsection:
       ``(e)(1) In order to meet the requirements of this section 
     for purposes of section 1902(a)(18), a State shall require, 
     as a condition for the provision of medical assistance for 
     services described in subsection (c)(1)(C)(i) (relating to 
     long-term care services) for an individual, the application 
     of the individual for such assistance (including any 
     recertification of eligibility for such assistance) shall 
     disclose a description of any interest the individual or 
     community spouse has in an annuity (or similar financial 
     instrument, as may be specified by the Secretary), regardless 
     of whether the annuity is irrevocable or is treated as an 
     asset. Such application or recertification form shall include 
     a statement that under paragraph (2) the State becomes a 
     remainder beneficiary under such an annuity or similar 
     financial instrument by virtue of the provision of such 
     medical assistance.
       ``(2)(A) In the case of disclosure concerning an annuity 
     under subsection (c)(1)(F), the State shall notify the issuer 
     of the annuity of the right of the State under such 
     subsection as a preferred remainder beneficiary in the 
     annuity for medical assistance furnished to the individual. 
     Nothing in this paragraph shall be construed as preventing 
     such an issuer from notifying persons with any other 
     remainder interest of the State's remainder interest under 
     such subsection.
       ``(B) In the case of such an issuer receiving notice under 
     subparagraph (A), the State may require the issuer to notify 
     the State when there is a change in the amount of income or 
     principal being withdrawn from the amount that was being 
     withdrawn at the time of the most recent disclosure described 
     in paragraph (1). A State shall take such information into 
     account in determining the amount of the State's obligations 
     for medical assistance or in the individual's eligibility for 
     such assistance.
       ``(3) The Secretary may provide guidance to States on 
     categories of transactions that may be treated as a transfer 
     of asset for less than fair market value.
       ``(4) Nothing in this subsection shall be construed as 
     preventing a State from denying eligibility for medical 
     assistance for an individual based on the income or resources 
     derived from an annuity described in paragraph (1).''.
       (b) Requirement for State To Be Named As a Remainder 
     Beneficiary.--Section 1917(c)(1) of such Act (42 U.S.C. 
     1396p(c)(1)), is amended by adding at the end the following:
       ``(F) For purposes of this paragraph, the purchase of an 
     annuity shall be treated as the disposal of an asset for less 
     than fair market value unless--
       ``(i) the State is named as the remainder beneficiary in 
     the first position for at least the total amount of medical 
     assistance paid on behalf of the annuitant under this title; 
     or
       ``(ii) the State is named as such a beneficiary in the 
     second position after the community spouse or minor or 
     disabled child and

[[Page 30846]]

     is named in the first position if such spouse or a 
     representative of such child disposes of any such remainder 
     for less than fair market value.''.
       (c) Inclusion of Transfers To Purchase Balloon Annuities.--
     Section 1917(c)(1) of such Act (42 U.S.C. 1396p(c)(1)), as 
     amended by subsection (b), is amended by adding at the end 
     the following:
       ``(G) For purposes of this paragraph with respect to a 
     transfer of assets, the term `assets' includes an annuity 
     purchased by or on behalf of an annuitant who has applied for 
     medical assistance with respect to nursing facility services 
     or other long-term care services under this title unless--
       ``(i) the annuity is--
       ``(I) an annuity described in subsection (b) or (q) of 
     section 408 of the Internal Revenue Code of 1986; or
       ``(II) purchased with proceeds from--
       ``(aa) an account or trust described in subsection (a), 
     (c), (p) of section 408 of such Code;
       ``(bb) a simplified employee pension (within the meaning of 
     section 408(k) of such Code); or
       ``(cc) a Roth IRA described in section 408A of such Code; 
     or
       ``(ii) the annuity--
       ``(I) is irrevocable and nonassignable;
       ``(II) is actuarially sound (as determined in accordance 
     with actuarial publications of the Office of the Chief 
     Actuary of the Social Security Administration); and
       ``(III) provides for payments in equal amounts during the 
     term of the annuity, with no deferral and no balloon payments 
     made.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions (including the purchase of an 
     annuity) occurring on or after the date of the enactment of 
     this Act.

     SEC. 6013. APPLICATION OF ``INCOME-FIRST'' RULE IN APPLYING 
                   COMMUNITY SPOUSE'S INCOME BEFORE ASSETS IN 
                   PROVIDING SUPPORT OF COMMUNITY SPOUSE.

       (a) In General.--Section 1924(d) of the Social Security Act 
     (42 U.S.C. 1396r-5(d)) is amended by adding at the end the 
     following new subparagraph:
       ``(6) Application of `income first' rule to revision of 
     community spouse resource allowance.--For purposes of this 
     subsection and subsections (c) and (e), a State must consider 
     that all income of the institutionalized spouse that could be 
     made available to a community spouse, in accordance with the 
     calculation of the community spouse monthly income allowance 
     under this subsection, has been made available before the 
     State allocates to the community spouse an amount of 
     resources adequate to provide the difference between the 
     minimum monthly maintenance needs allowance and all income 
     available to the community spouse.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to transfers and allocations made on or after the 
     date of the enactment of this Act by individuals who become 
     institutionalized spouses on or after such date.

     SEC. 6014. DISQUALIFICATION FOR LONG-TERM CARE ASSISTANCE FOR 
                   INDIVIDUALS WITH SUBSTANTIAL HOME EQUITY.

       (a) In General.--Section 1917 of the Social Security Act, 
     as amended by section 6012(a), is further amended by 
     redesignating subsection (f) as subsection (g) and by 
     inserting after subsection (e) the following new subsection:
       ``(f)(1)(A) Notwithstanding any other provision of this 
     title, subject to subparagraphs (B) and (C) of this paragraph 
     and paragraph (2), in determining eligibility of an 
     individual for medical assistance with respect to nursing 
     facility services or other long-term care services, the 
     individual shall not be eligible for such assistance if the 
     individual's equity interest in the individual's home exceeds 
     $500,000.
       ``(B) A State may elect, without regard to the requirements 
     of section 1902(a)(1) (relating to statewideness) and section 
     1902(a)(10)(B) (relating to comparability), to apply 
     subparagraph (A) by substituting for `$500,000', an amount 
     that exceeds such amount, but does not exceed $750,000.
       ``(C) The dollar amounts specified in this paragraph shall 
     be increased, beginning with 2011, from year to year based on 
     the percentage increase in the consumer price index for all 
     urban consumers (all items; United States city average), 
     rounded to the nearest $1,000.
       ``(2) Paragraph (1) shall not apply with respect to an 
     individual if--
       ``(A) the spouse of such individual, or
       ``(B) such individual's child who is under age 21, or (with 
     respect to States eligible to participate in the State 
     program established under title XVI) is blind or permanently 
     and totally disabled, or (with respect to States which are 
     not eligible to participate in such program) is blind or 
     disabled as defined in section 1614,
     is lawfully residing in the individual's home.
       ``(3) Nothing in this subsection shall be construed as 
     preventing an individual from using a reverse mortgage or 
     home equity loan to reduce the individual's total equity 
     interest in the home.
       ``(4) The Secretary shall establish a process whereby 
     paragraph (1) is waived in the case of a demonstrated 
     hardship.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals who are determined eligible for 
     medical assistance with respect to nursing facility services 
     or other long-term care services based on an application 
     filed on or after January 1, 2006.

     SEC. 6015. ENFORCEABILITY OF CONTINUING CARE RETIREMENT 
                   COMMUNITIES (CCRC) AND LIFE CARE COMMUNITY 
                   ADMISSION CONTRACTS.

       (a) Admission Policies of Nursing Facilities.--Section 
     1919(c)(5) of the Social Security Act (42 U.S.C. 1396r(c)(5)) 
     is amended--
       (1) in subparagraph (A)(i)(II), by inserting ``subject to 
     clause (v),'' after ``(II)''; and
       (2) by adding at the end of subparagraph (B) the following 
     new clause:
       ``(v) Treatment of continuing care retirement communities 
     admission contracts.--Notwithstanding subclause (II) of 
     subparagraph (A)(i), subject to subsections (c) and (d) of 
     section 1924, contracts for admission to a State licensed, 
     registered, certified, or equivalent continuing care 
     retirement community or life care community, including 
     services in a nursing facility that is part of such 
     community, may require residents to spend on their care 
     resources declared for the purposes of admission before 
     applying for medical assistance.''.
       (b) Treatment of Entrance Fees.--Section 1917 of such Act 
     (42 U.S.C. 1396p), as amended by sections 6012(a) and 
     6014(a), is amended by redesignating subsection (g) as 
     subsection (h) and by inserting after subsection (f) the 
     following new subsection:
       ``(g) Treatment of Entrance Fees of Individuals Residing in 
     Continuing Care Retirement Communities.--
       ``(1) In general.--For purposes of determining an 
     individual's eligibility for, or amount of, benefits under a 
     State plan under this title, the rules specified in paragraph 
     (2) shall apply to individuals residing in continuing care 
     retirement communities or life care communities that collect 
     an entrance fee on admission from such individuals.
       ``(2) Treatment of entrance fee.--For purposes of this 
     subsection, an individual's entrance fee in a continuing care 
     retirement community or life care community shall be 
     considered a resource available to the individual to the 
     extent that--
       ``(A) the individual has the ability to use the entrance 
     fee, or the contract provides that the entrance fee may be 
     used, to pay for care should other resources or income of the 
     individual be insufficient to pay for such care;
       ``(B) the individual is eligible for a refund of any 
     remaining entrance fee when the individual dies or terminates 
     the continuing care retirement community or life care 
     community contract and leaves the community; and
       ``(C) the entrance fee does not confer an ownership 
     interest in the continuing care retirement community or life 
     care community.''.

     SEC. 6016. ADDITIONAL REFORMS OF MEDICAID ASSET TRANSFER 
                   RULES.

       (a) Requirement To Impose Partial Months of 
     Ineligibility.--Section 1917(c)(1)(E) of the Social Security 
     Act (42 U.S.C. 1396p(c)(1)(E)) is amended by adding at the 
     end the following:
       ``(iv) A State shall not round down, or otherwise disregard 
     any fractional period of ineligibility determined under 
     clause (i) or (ii) with respect to the disposal of assets.''.
       (b) Authority for States To Accumulate Multiple Transfers 
     Into One Penalty Period.--Section 1917(c)(1) of such Act (42 
     U.S.C. 1396p(c)(1)), as amended by subsections (b) and (c) of 
     section 6012, is amended by adding at the end the following:
       ``(H) Notwithstanding the preceding provisions of this 
     paragraph, in the case of an individual (or individual's 
     spouse) who makes multiple fractional transfers of assets in 
     more than 1 month for less than fair market value on or after 
     the applicable look-back date specified in subparagraph (B), 
     a State may determine the period of ineligibility applicable 
     to such individual under this paragraph by--
       ``(i) treating the total, cumulative uncompensated value of 
     all assets transferred by the individual (or individual's 
     spouse) during all months on or after the look-back date 
     specified in subparagraph (B) as 1 transfer for purposes of 
     clause (i) or (ii) (as the case may be) of subparagraph (E); 
     and
       ``(ii) beginning such period on the earliest date which 
     would apply under subparagraph (D) to any of such 
     transfers.''.
       (c) Inclusion of Transfer of Certain Notes and Loans 
     Assets.--Section 1917(c)(1) of such Act (42 U.S.C. 1396 
     p(c)(1)), as amended by subsection (b), is amended by adding 
     at the end the following:
       ``(I) For purposes of this paragraph with respect to a 
     transfer of assets, the term `assets' includes funds used to 
     purchase a promissory note, loan, or mortgage unless such 
     note, loan, or mortgage--
       ``(i) has a repayment term that is actuarially sound (as 
     determined in accordance with actuarial publications of the 
     Office of the Chief Actuary of the Social Security 
     Administration);
       ``(ii) provides for payments to be made in equal amounts 
     during the term of the loan, with no deferral and no balloon 
     payments made; and
       ``(iii) prohibits the cancellation of the balance upon the 
     death of the lender.


[[Page 30847]]


     In the case of a promissory note, loan, or mortgage that does 
     not satisfy the requirements of clauses (i) through (iii), 
     the value of such note, loan, or mortgage shall be the 
     outstanding balance due as of the date of the individual's 
     application for medical assistance for services described in 
     subparagraph (C).''.
       (d) Inclusion of Transfers To Purchase Life Estates.--
     Section 1917(c)(1) of such Act (42 U.S.C. 1396p(c)(1)), as 
     amended by subsection (c), is amended by adding at the end 
     the following:
       ``(J) For purposes of this paragraph with respect to a 
     transfer of assets, the term `assets' includes the purchase 
     of a life estate interest in another individual's home unless 
     the purchaser resides in the home for a period of at least 1 
     year after the date of the purchase.''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the amendments made by this section shall apply to 
     payments under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) for calendar quarters beginning on or 
     after the date of enactment of this Act, without regard to 
     whether or not final regulations to carry out such amendments 
     have been promulgated by such date.
       (2) Exceptions.--The amendments made by this section shall 
     not apply--
       (A) to medical assistance provided for services furnished 
     before the date of enactment;
       (B) with respect to assets disposed of on or before the 
     date of enactment of this Act; or
       (C) with respect to trusts established on or before the 
     date of enactment of this Act.
       (3) Extension of effective date for state law amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) which the Secretary of 
     Health and Human Services determines requires State 
     legislation in order for the plan to meet the additional 
     requirements imposed by the amendments made by a provision of 
     this section, the State plan shall not be regarded as failing 
     to comply with the requirements of such title solely on the 
     basis of its failure to meet these additional requirements 
     before the first day of the first calendar quarter beginning 
     after the close of the first regular session of the State 
     legislature that begins after the date of the enactment of 
     this Act. For purposes of the previous sentence, in the case 
     of a State that has a 2-year legislative session, each year 
     of the session is considered to be a separate regular session 
     of the State legislature.

           Subchapter B--Expanded Access to Certain Benefits

     SEC. 6021. EXPANSION OF STATE LONG-TERM CARE PARTNERSHIP 
                   PROGRAM.

       (a) Expansion Authority.--
       (1) In general.--Section 1917(b) of the Social Security Act 
     (42 U.S.C. 1396p(b)) is amended--
       (A) in paragraph (1)(C)--
       (i) in clause (ii), by inserting ``and which satisfies 
     clause (iv), or which has a State plan amendment that 
     provides for a qualified State long-term care insurance 
     partnership (as defined in clause (iii))'' after ``1993,''; 
     and
       (ii) by adding at the end the following new clauses:
       ``(iii) For purposes of this paragraph, the term `qualified 
     State long-term care insurance partnership' means an approved 
     State plan amendment under this title that provides for the 
     disregard of any assets or resources in an amount equal to 
     the insurance benefit payments that are made to or on behalf 
     of an individual who is a beneficiary under a long-term care 
     insurance policy if the following requirements are met:
       ``(I) The policy covers an insured who was a resident of 
     such State when coverage first became effective under the 
     policy.
       ``(II) The policy is a qualified long-term care insurance 
     policy (as defined in section 7702B(b) of the Internal 
     Revenue Code of 1986) issued not earlier than the effective 
     date of the State plan amendment.
       ``(III) The policy meets the model regulations and the 
     requirements of the model Act specified in paragraph (5).
       ``(IV) If the policy is sold to an individual who--
       ``(aa) has not attained age 61 as of the date of purchase, 
     the policy provides compound annual inflation protection;
       ``(bb) has attained age 61 but has not attained age 76 as 
     of such date, the policy provides some level of inflation 
     protection; and
       ``(cc) has attained age 76 as of such date, the policy may 
     (but is not required to) provide some level of inflation 
     protection.
       ``(V) The State Medicaid agency under section 1902(a)(5) 
     provides information and technical assistance to the State 
     insurance department on the insurance department's role of 
     assuring that any individual who sells a long-term care 
     insurance policy under the partnership receives training and 
     demonstrates evidence of an understanding of such policies 
     and how they relate to other public and private coverage of 
     long-term care.
       ``(VI) The issuer of the policy provides regular reports to 
     the Secretary, in accordance with regulations of the 
     Secretary, that include notification regarding when benefits 
     provided under the policy have been paid and the amount of 
     such benefits paid, notification regarding when the policy 
     otherwise terminates, and such other information as the 
     Secretary determines may be appropriate to the administration 
     of such partnerships.
       ``(VII) The State does not impose any requirement affecting 
     the terms or benefits of such a policy unless the State 
     imposes such requirement on long-term care insurance policies 
     without regard to whether the policy is covered under the 
     partnership or is offered in connection with such a 
     partnership.

     In the case of a long-term care insurance policy which is 
     exchanged for another such policy, subclause (I) shall be 
     applied based on the coverage of the first such policy that 
     was exchanged. For purposes of this clause and paragraph (5), 
     the term `long-term care insurance policy' includes a 
     certificate issued under a group insurance contract
       ``(iv) With respect to a State which had a State plan 
     amendment approved as of May 14, 1993, such a State satisfies 
     this clause for purposes of clause (ii) if the Secretary 
     determines that the State plan amendment provides for 
     consumer protection standards which are no less stringent 
     than the consumer protection standards which applied under 
     such State plan amendment as of December 31, 2005.
       ``(v) The regulations of the Secretary required under 
     clause (iii)(VI) shall be promulgated after consultation with 
     the National Association of Insurance Commissioners, issuers 
     of long-term care insurance policies, States with experience 
     with long-term care insurance partnership plans, other 
     States, and representatives of consumers of long-term care 
     insurance policies, and shall specify the type and format of 
     the data and information to be reported and the frequency 
     with which such reports are to be made. The Secretary, as 
     appropriate, shall provide copies of the reports provided in 
     accordance with that clause to the State involved.
       ``(vi) The Secretary, in consultation with other 
     appropriate Federal agencies, issuers of long-term care 
     insurance, the National Association of Insurance 
     Commissioners, State insurance commissioners, States with 
     experience with long-term care insurance partnership plans, 
     other States, and representatives of consumers of long-term 
     care insurance policies, shall develop recommendations for 
     Congress to authorize and fund a uniform minimum data set to 
     be reported electronically by all issuers of long-term care 
     insurance policies under qualified State long-term care 
     insurance partnerships to a secure, centralized electronic 
     query and report-generating mechanism that the State, the 
     Secretary, and other Federal agencies can access.''; and
       (B) by adding at the end the following:
       ``(5)(A) For purposes of clause (iii)(III), the model 
     regulations and the requirements of the model Act specified 
     in this paragraph are:
       ``(i) In the case of the model regulation, the following 
     requirements:
       ``(I) Section 6A (relating to guaranteed renewal or 
     noncancellability), other than paragraph (5) thereof, and the 
     requirements of section 6B of the model Act relating to such 
     section 6A.
       ``(II) Section 6B (relating to prohibitions on limitations 
     and exclusions) other than paragraph (7) thereof.
       ``(III) Section 6C (relating to extension of benefits).
       ``(IV) Section 6D (relating to continuation or conversion 
     of coverage).
       ``(V) Section 6E (relating to discontinuance and 
     replacement of policies).
       ``(VI) Section 7 (relating to unintentional lapse).
       ``(VII) Section 8 (relating to disclosure), other than 
     sections 8F, 8G, 8H, and 8I thereof.
       ``(VIII) Section 9 (relating to required disclosure of 
     rating practices to consumer).
       ``(IX) Section 11 (relating to prohibitions against post-
     claims underwriting).
       ``(X) Section 12 (relating to minimum standards).
       ``(XI) Section 14 (relating to application forms and 
     replacement coverage).
       ``(XII) Section 15 (relating to reporting requirements).
       ``(XIII) Section 22 (relating to filing requirements for 
     marketing).
       ``(XIV) Section 23 (relating to standards for marketing), 
     including inaccurate completion of medical histories, other 
     than paragraphs (1), (6), and (9) of section 23C.
       ``(XV) Section 24 (relating to suitability).
       ``(XVI) Section 25 (relating to prohibition against 
     preexisting conditions and probationary periods in 
     replacement policies or certificates).
       ``(XVII) The provisions of section 26 relating to 
     contingent nonforfeiture benefits, if the policyholder 
     declines the offer of a nonforfeiture provision described in 
     paragraph (4).
       ``(XVIII) Section 29 (relating to standard format outline 
     of coverage).
       ``(XIX) Section 30 (relating to requirement to deliver 
     shopper's guide).
       ``(ii) In the case of the model Act, the following:
       ``(I) Section 6C (relating to preexisting conditions).
       ``(II) Section 6D (relating to prior hospitalization).
       ``(III) The provisions of section 8 relating to contingent 
     nonforfeiture benefits.
       ``(IV) Section 6F (relating to right to return).

[[Page 30848]]

       ``(V) Section 6G (relating to outline of coverage).
       ``(VI) Section 6H (relating to requirements for 
     certificates under group plans).
       ``(VII) Section 6J (relating to policy summary).
       ``(VIII) Section 6K (relating to monthly reports on 
     accelerated death benefits).
       ``(IX) Section 7 (relating to incontestability period).
       ``(B) For purposes of this paragraph and paragraph (1)(C)--
       ``(i) the terms `model regulation' and `model Act' mean the 
     long-term care insurance model regulation, and the long-term 
     care insurance model Act, respectively, promulgated by the 
     National Association of Insurance Commissioners (as adopted 
     as of October 2000);
       ``(ii) any provision of the model regulation or model Act 
     listed under subparagraph (A) shall be treated as including 
     any other provision of such regulation or Act necessary to 
     implement the provision; and
       ``(iii) with respect to a long-term care insurance policy 
     issued in a State, the policy shall be deemed to meet 
     applicable requirements of the model regulation or the model 
     Act if the State plan amendment under paragraph (1)(C)(iii) 
     provides that the State insurance commissioner for the State 
     certifies (in a manner satisfactory to the Secretary) that 
     the policy meets such requirements.
       ``(C) Not later than 12 months after the National 
     Association of Insurance Commissioners issues a revision, 
     update, or other modification of a model regulation or model 
     Act provision specified in subparagraph (A), or of any 
     provision of such regulation or Act that is substantively 
     related to a provision specified in such subparagraph, the 
     Secretary shall review the changes made to the provision, 
     determine whether incorporating such changes into the 
     corresponding provision specified in such subparagraph would 
     improve qualified State long-term care insurance 
     partnerships, and if so, shall incorporate the changes into 
     such provision.''.
       (2) State reporting requirements.--Nothing in clauses 
     (iii)(VI) and (v) of section 1917(b)(1)(C) of the Social 
     Security Act (as added by paragraph (1)) shall be construed 
     as prohibiting a State from requiring an issuer of a long-
     term care insurance policy sold in the State (regardless of 
     whether the policy is issued under a qualified State long-
     term care insurance partnership under section 
     1917(b)(1)(C)(iii) of such Act) to require the issuer to 
     report information or data to the State that is in addition 
     to the information or data required under such clauses.
       (3) Effective date.--A State plan amendment that provides 
     for a qualified State long-term care insurance partnership 
     under the amendments made by paragraph (1) may provide that 
     such amendment is effective for long-term care insurance 
     policies issued on or after a date, specified in the 
     amendment, that is not earlier than the first day of the 
     first calendar quarter in which the plan amendment was 
     submitted to the Secretary of Health and Human Services.
       (b) Standards for Reciprocal Recognition Among Partnership 
     States.--In order to permit portability in long-term care 
     insurance policies purchased under State long-term care 
     insurance partnerships, the Secretary of Health and Human 
     Services shall develop, not later than January 1, 2007, and 
     in consultation with the National Association of Insurance 
     Commissioners, issuers of long-term care insurance policies, 
     States with experience with long-term care insurance 
     partnership plans, other States, and representatives of 
     consumers of long-term care insurance policies, standards for 
     uniform reciprocal recognition of such policies among States 
     with qualified State long-term care insurance partnerships 
     under which--
       (1) benefits paid under such policies will be treated the 
     same by all such States; and
       (2) States with such partnerships shall be subject to such 
     standards unless the State notifies the Secretary in writing 
     of the State's election to be exempt from such standards.
       (c) Annual Reports to Congress.--
       (1) In general.--The Secretary of Health and Human Services 
     shall annually report to Congress on the long-term care 
     insurance partnerships established in accordance with section 
     1917(b)(1)(C)(ii) of the Social Security Act (42 U.S.C. 
     1396p(b)(1)(C)(ii)) (as amended by subsection (a)(1)). Such 
     reports shall include analyses of the extent to which such 
     partnerships expand or limit access of individuals to long-
     term care and the impact of such partnerships on Federal and 
     State expenditures under the Medicare and Medicaid programs. 
     Nothing in this section shall be construed as requiring the 
     Secretary to conduct an independent review of each long-term 
     care insurance policy offered under or in connection with 
     such a partnership.
       (2) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Secretary of Health and Human Services, $1,000,000 for the 
     period of fiscal years 2006 through 2010 to carry out 
     paragraph (1).
       (d) National Clearinghouse for Long-Term Care 
     Information.--
       (1) Establishment.--The Secretary of Health and Human 
     Services shall establish a National Clearinghouse for Long-
     Term Care Information. The Clearinghouse may be established 
     through a contract or interagency agreement.
       (2) Duties.--
       (A) In general.--The National Clearinghouse for Long-Term 
     Care Information shall--
       (i) educate consumers with respect to the availability and 
     limitations of coverage for long-term care under the Medicaid 
     program and provide contact information for obtaining State-
     specific information on long-term care coverage, including 
     eligibility and estate recovery requirements under State 
     Medicaid programs;
       (ii) provide objective information to assist consumers with 
     the decisionmaking process for determining whether to 
     purchase long-term care insurance or to pursue other private 
     market alternatives for purchasing long-term care and provide 
     contact information for additional objective resources on 
     planning for long-term care needs; and
       (iii) maintain a list of States with State long-term care 
     insurance partnerships under the Medicaid program that 
     provide reciprocal recognition of long-term care insurance 
     policies issued under such partnerships.
       (B) Requirement.--In providing information to consumers on 
     long-term care in accordance with this subsection, the 
     National Clearinghouse for Long-Term Care Information shall 
     not advocate in favor of a specific long-term care insurance 
     provider or a specific long-term care insurance policy.
       (3) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to carry out 
     this subsection, $3,000,000 for each of fiscal years 2006 
     through 2010.

       CHAPTER 3--ELIMINATING FRAUD, WASTE, AND ABUSE IN MEDICAID

     SEC. 6032. ENCOURAGING THE ENACTMENT OF STATE FALSE CLAIMS 
                   ACTS.

       (a) In General.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) is amended by inserting after section 
     1908A the following:


  ``STATE FALSE CLAIMS ACT REQUIREMENTS FOR INCREASED STATE SHARE OF 
                               RECOVERIES

       ``Sec. 1909. (a) In General.--Notwithstanding section 
     1905(b), if a State has in effect a law relating to false or 
     fraudulent claims that meets the requirements of subsection 
     (b), the Federal medical assistance percentage with respect 
     to any amounts recovered under a State action brought under 
     such law, shall be decreased by 10 percentage points.
       ``(b) Requirements.--For purposes of subsection (a), the 
     requirements of this subsection are that the Inspector 
     General of the Department of Health and Human Services, in 
     consultation with the Attorney General, determines that the 
     State has in effect a law that meets the following 
     requirements:
       ``(1) The law establishes liability to the State for false 
     or fraudulent claims described in section 3729 of title 31, 
     United States Code, with respect to any expenditure described 
     in section 1903(a).
       ``(2) The law contains provisions that are at least as 
     effective in rewarding and facilitating qui tam actions for 
     false or fraudulent claims as those described in sections 
     3730 through 3732 of title 31, United States Code.
       ``(3) The law contains a requirement for filing an action 
     under seal for 60 days with review by the State Attorney 
     General.
       ``(4) The law contains a civil penalty that is not less 
     than the amount of the civil penalty authorized under section 
     3729 of title 31, United States Code.
       ``(c) Deemed Compliance.--A State that, as of January 1, 
     2007, has a law in effect that meets the requirements of 
     subsection (b) shall be deemed to be in compliance with such 
     requirements for so long as the law continues to meet such 
     requirements.
       ``(d) No Preclusion of Broader Laws.--Nothing in this 
     section shall be construed as prohibiting a State that has in 
     effect a law that establishes liability to the State for 
     false or fraudulent claims described in section 3729 of title 
     31, United States Code, with respect to programs in addition 
     to the State program under this title, or with respect to 
     expenditures in addition to expenditures described in section 
     1903(a), from being considered to be in compliance with the 
     requirements of subsection (a) so long as the law meets such 
     requirements.''.
       (b) Effective Date.--Except as provided in section 6035(e), 
     the amendments made by this section take effect on January 1, 
     2007.

     SEC. 6033. EMPLOYEE EDUCATION ABOUT FALSE CLAIMS RECOVERY.

       (a) In General.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a(a)) is amended--
       (1) in paragraph (66), by striking ``and'' at the end;
       (2) in paragraph (67) by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (67) the following:
       ``(68) provide that any entity that receives or makes 
     annual payments under the State plan of at least $5,000,000, 
     as a condition of receiving such payments, shall--
       ``(A) establish written policies for all employees of the 
     entity (including management), and of any contractor or agent 
     of the entity, that provide detailed information

[[Page 30849]]

     about the False Claims Act established under sections 3729 
     through 3733 of title 31, United States Code, administrative 
     remedies for false claims and statements established under 
     chapter 38 of title 31, United States Code, any State laws 
     pertaining to civil or criminal penalties for false claims 
     and statements, and whistleblower protections under such 
     laws, with respect to the role of such laws in preventing and 
     detecting fraud, waste, and abuse in Federal health care 
     programs (as defined in section 1128B(f));
       ``(B) include as part of such written policies, detailed 
     provisions regarding the entity's policies and procedures for 
     detecting and preventing fraud, waste, and abuse; and
       ``(C) include in any employee handbook for the entity, a 
     specific discussion of the laws described in subparagraph 
     (A), the rights of employees to be protected as 
     whistleblowers, and the entity's policies and procedures for 
     detecting and preventing fraud, waste, and abuse.''.
       (b) Effective Date.--Except as provided in section 6035(e), 
     the amendments made by subsection (a) take effect on January 
     1, 2007.

     SEC. 6034. PROHIBITION ON RESTOCKING AND DOUBLE BILLING OF 
                   PRESCRIPTION DRUGS.

       (a) In General.--Section 1903(i)(10) of the Social Security 
     Act (42 U.S.C. 1396b(i)), as amended by section 6002(b), is 
     amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking ``; or'' at the end 
     and inserting ``, and''; and
       (3) by adding at the end the following:
       ``(D) with respect to any amount expended for reimbursement 
     to a pharmacy under this title for the ingredient cost of a 
     covered outpatient drug for which the pharmacy has already 
     received payment under this title (other than with respect to 
     a reasonable restocking fee for such drug); or''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the first day of the first fiscal year quarter 
     that begins after the date of enactment of this Act.

     SEC. 6035. MEDICAID INTEGRITY PROGRAM.

       (a) Establishment of Medicaid Integrity Program.--Title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.) is 
     amended--
       (1) by redesignating section 1936 as section 1937; and
       (2) by inserting after section 1935 the following:


                      ``MEDICAID INTEGRITY PROGRAM

       ``Sec. 1936. (a) In General.--There is hereby established 
     the Medicaid Integrity Program (in this section referred to 
     as the `Program') under which the Secretary shall promote the 
     integrity of the program under this title by entering into 
     contracts in accordance with this section with eligible 
     entities to carry out the activities described in subsection 
     (b).
       ``(b) Activities Described--Activities described in this 
     subsection are as follows:
       ``(1) Review of the actions of individuals or entities 
     furnishing items or services (whether on a fee-for-service, 
     risk, or other basis) for which payment may be made under a 
     State plan approved under this title (or under any waiver of 
     such plan approved under section 1115) to determine whether 
     fraud, waste, or abuse has occurred, is likely to occur, or 
     whether such actions have any potential for resulting in an 
     expenditure of funds under this title in a manner which is 
     not intended under the provisions of this title.
       ``(2) Audit of claims for payment for items or services 
     furnished, or administrative services rendered, under a State 
     plan under this title, including--
       ``(A) cost reports;
       ``(B) consulting contracts; and
       ``(C) risk contracts under section 1903(m).
       ``(3) Identification of overpayments to individuals or 
     entities receiving Federal funds under this title.
       ``(4) Education of providers of services, managed care 
     entities, beneficiaries, and other individuals with respect 
     to payment integrity and quality of care.
       ``(c) Eligible Entity and Contracting Requirements.--
       ``(1) In general.--An entity is eligible to enter into a 
     contract under the Program to carry out any of the activities 
     described in subsection (b) if the entity satisfies the 
     requirements of paragraphs (2) and (3).
       ``(2) Eligibility requirements.--The requirements of this 
     paragraph are the following:
       ``(A) The entity has demonstrated capability to carry out 
     the activities described in subsection (b).
       ``(B) In carrying out such activities, the entity agrees to 
     cooperate with the Inspector General of the Department of 
     Health and Human Services, the Attorney General, and other 
     law enforcement agencies, as appropriate, in the 
     investigation and deterrence of fraud and abuse in relation 
     to this title and in other cases arising out of such 
     activities.
       ``(C) The entity complies with such conflict of interest 
     standards as are generally applicable to Federal acquisition 
     and procurement.
       ``(D) The entity meets such other requirements as the 
     Secretary may impose.
       ``(3) Contracting requirements.--The entity has contracted 
     with the Secretary in accordance with such procedures as the 
     Secretary shall by regulation establish, except that such 
     procedures shall include the following:
       ``(A) Procedures for identifying, evaluating, and resolving 
     organizational conflicts of interest that are generally 
     applicable to Federal acquisition and procurement.
       ``(B) Competitive procedures to be used--
       ``(i) when entering into new contracts under this section;
       ``(ii) when entering into contracts that may result in the 
     elimination of responsibilities under section 202(b) of the 
     Health Insurance Portability and Accountability Act of 1996; 
     and
       ``(iii) at any other time considered appropriate by the 
     Secretary.
       ``(C) Procedures under which a contract under this section 
     may be renewed without regard to any provision of law 
     requiring competition if the contractor has met or exceeded 
     the performance requirements established in the current 
     contract.

     The Secretary may enter into such contracts without regard to 
     final rules having been promulgated.
       ``(4) Limitation on contractor liability.--The Secretary 
     shall by regulation provide for the limitation of a 
     contractor's liability for actions taken to carry out a 
     contract under the Program, and such regulation shall, to the 
     extent the Secretary finds appropriate, employ the same or 
     comparable standards and other substantive and procedural 
     provisions as are contained in section 1157.
       ``(d) Comprehensive Plan for Program Integrity.--
       ``(1) 5-year plan.--With respect to the 5 fiscal year 
     period beginning with fiscal year 2006, and each such 5-
     fiscal year period that begins thereafter, the Secretary 
     shall establish a comprehensive plan for ensuring the 
     integrity of the program established under this title by 
     combatting fraud, waste, and abuse.
       ``(2) Consultation.--Each 5-fiscal year plan established 
     under paragraph (1) shall be developed by the Secretary in 
     consultation with the Attorney General, the Director of the 
     Federal Bureau of Investigation, the Comptroller General of 
     the United States, the Inspector General of the Department of 
     Health and Human Services, and State officials with 
     responsibility for controlling provider fraud and abuse under 
     State plans under this title.
       ``(e) Appropriation.--
       ``(1) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated to carry out the Medicaid Integrity Program 
     under this section, without further appropriation--
       ``(A) for fiscal year 2006, $5,000,000;
       ``(B) for each of fiscal years 2007 and 2008, $50,000,000; 
     and
       ``(C) for each fiscal year thereafter, $75,000,000.
       ``(2) Availability.--Amounts appropriated pursuant to 
     paragraph (1) shall remain available until expended.
       ``(3) Increase in cms staffing devoted to protecting 
     medicaid program integrity.--From the amounts appropriated 
     under paragraph (1), the Secretary shall increase by 100 the 
     number of full-time equivalent employees whose duties consist 
     solely of protecting the integrity of the Medicaid program 
     established under this section by providing effective support 
     and assistance to States to combat provider fraud and abuse.
       ``(4) Annual report.--Not later than 180 days after the end 
     of each fiscal year (beginning with fiscal year 2006), the 
     Secretary shall submit a report to Congress which 
     identifies--
       ``(A) the use of funds appropriated pursuant to paragraph 
     (1); and
       ``(B) the effectiveness of the use of such funds.''.
       (b) State Requirement To Cooperate With Integrity Program 
     Efforts.--Section 1902(a) of such Act (42 U.S.C. 1396a(a)), 
     as amended by section 6033(a), is amended--
       (1) in paragraph (67), by striking ``and'' at the end;
       (2) in paragraph (68), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting after paragraph (68), the following:
       ``(69) provide that the State must comply with any 
     requirements determined by the Secretary to be necessary for 
     carrying out the Medicaid Integrity Program established under 
     section 1936.''.
       (c) Increased Funding for Medicaid Fraud and Abuse Control 
     Activities.--
       (1) In general.--Out of any money in the Treasury of the 
     United States not otherwise appropriated, there are 
     appropriated to the Office of the Inspector General of the 
     Department of Health and Human Services, without further 
     appropriation, $25,000,000 for each of fiscal years 2006 
     through 2010, for activities of such Office with respect to 
     the Medicaid program under title XIX of the Social Security 
     Act (42 U.S.C. 1396 et seq.).
       (2) Availability; amounts in addition to other amounts 
     appropriated for such activities.--Amounts appropriated 
     pursuant to paragraph (1) shall--
       (A) remain available until expended; and
       (B) be in addition to any other amounts appropriated or 
     made available to the Office of the Inspector General of the 
     Department of Health and Human Services for activities of 
     such Office with respect to the Medicaid program.

[[Page 30850]]

       (3) Annual report.--Not later than 180 days after the end 
     of each fiscal year (beginning with fiscal year 2006), the 
     Inspector General of the Department of Health and Human 
     Services shall submit a report to Congress which identifies--
       (A) the use of funds appropriated pursuant to paragraph 
     (1); and
       (B) the effectiveness of the use of such funds.
       (d) National Expansion of the Medicare-Medicaid (Medi-Medi) 
     Data Match Pilot Program.--
       (1) Requirement of the medicare integrity program.--Section 
     1893 of the Social Security Act (42 U.S.C. 1395ddd) is 
     amended--
       (A) in subsection (b), by adding at the end the following:
       ``(6) The Medicare-Medicaid Data Match Program in 
     accordance with subsection (g).''; and
       (B) by adding at the end the following:
       ``(g) Medicare-Medicaid Data Match Program.--
       ``(1) Expansion of program.--
       ``(A) In general.--The Secretary shall enter into contracts 
     with eligible entities for the purpose of ensuring that, 
     beginning with 2006, the Medicare-Medicaid Data Match Program 
     (commonly referred to as the `Medi-Medi Program') is 
     conducted with respect to the program established under this 
     title and State Medicaid programs under title XIX for the 
     purpose of--
       ``(i) identifying program vulnerabilities in the program 
     established under this title and the Medicaid program 
     established under title XIX through the use of computer 
     algorithms to look for payment anomalies (including billing 
     or billing patterns identified with respect to service, time, 
     or patient that appear to be suspect or otherwise 
     implausible);
       ``(ii) working with States, the Attorney General, and the 
     Inspector General of the Department of Health and Human 
     Services to coordinate appropriate actions to protect the 
     Federal and State share of expenditures under the Medicaid 
     program under title XIX, as well as the program established 
     under this title; and
       ``(iii) increasing the effectiveness and efficiency of both 
     such programs through cost avoidance, savings, and 
     recoupments of fraudulent, wasteful, or abusive expenditures.
       ``(B) Reporting requirements.--The Secretary shall make 
     available in a timely manner any data and statistical 
     information collected by the Medi-Medi Program to the 
     Attorney General, the Director of the Federal Bureau of 
     Investigation, the Inspector General of the Department of 
     Health and Human Services, and the States (including a 
     medicaid fraud and abuse control unit described in section 
     1903(q)). Such information shall be disseminated no less 
     frequently than quarterly.
       ``(2) Limited waiver authority.--The Secretary shall waive 
     only such requirements of this section and of titles XI and 
     XIX as are necessary to carry out paragraph (1).''.
       (2) Funding.--Section 1817(k)(4) of such Act (42 U.S.C. 
     1395i(k)(4)), as amended by section 5204 of this Act, is 
     amended--
       (A) in subparagraph (A), by striking ``subparagraph (B)'' 
     and inserting ``subparagraphs (B), (C), and (D)''; and
       (B) by adding at the end the following:
       ``(D) Expansion of the medicare-medicaid data match 
     program.--The amount appropriated under subparagraph (A) for 
     a fiscal year is further increased as follows for purposes of 
     carrying out section 1893(b)(6) for the respective fiscal 
     year:
       ``(i) $12,000,000 for fiscal year 2006.
       ``(ii) $24,000,000 for fiscal year 2007.
       ``(iii) $36,000,000 for fiscal year 2008.
       ``(iv) $48,000,000 for fiscal year 2009.
       ``(v) $60,000,000 for fiscal year 2010 and each fiscal year 
     thereafter.''.
       (e) Delayed Effective Date for Chapter.--Except as 
     otherwise provided in this chapter, in the case of a State 
     plan under title XIX of the Social Security Act which the 
     Secretary determines requires State legislation in order for 
     the plan to meet the additional requirements imposed by the 
     amendments made by a provision of this chapter, the State 
     plan shall not be regarded as failing to comply with the 
     requirements of such Act solely on the basis of its failure 
     to meet these additional requirements before the first day of 
     the first calendar quarter beginning after the close of the 
     first regular session of the State legislature that begins 
     after the date of enactment of this Act. For purposes of the 
     previous sentence, in the case of a State that has a 2-year 
     legislative session, each year of the session shall be 
     considered to be a separate regular session of the State 
     legislature.

     SEC. 6036. ENHANCING THIRD PARTY IDENTIFICATION AND PAYMENT.

       (a) Clarification of Third Parties Legally Responsible for 
     Payment of a Claim for a Health Care Item or Service.--
     Section 1902(a)(25) of the Social Security Act (42 U.S.C. 
     1396a(a)(25)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i)--
       (A) by inserting ``, self-insured plans'' after ``health 
     insurers''; and
       (B) by striking ``and health maintenance organizations'' 
     and inserting ``managed care organizations, pharmacy benefit 
     managers, or other parties that are, by statute, contract, or 
     agreement, legally responsible for payment of a claim for a 
     health care item or service''; and
       (2) in subparagraph (G)--
       (A) by inserting ``a self-insured plan,'' after ``1974,''; 
     and
       (B) by striking ``and a health maintenance organization'' 
     and inserting ``a managed care organization, a pharmacy 
     benefit manager, or other party that is, by statute, 
     contract, or agreement, legally responsible for payment of a 
     claim for a health care item or service''.
        (b) Requirement for Third Parties To Provide the State 
     With Coverage Eligibility and Claims Data.--Section 
     1902(a)(25) of such Act (42 U.S.C. 1396a(a)(25)) is amended--
       (1) in subparagraph (G), by striking ``and'' at the end;
       (2) in subparagraph (H), by adding ``and'' after the 
     semicolon at the end; and
       (3) by inserting after subparagraph (H), the following:
       ``(I) that the State shall provide assurances satisfactory 
     to the Secretary that the State has in effect laws requiring 
     health insurers, including self-insured plans, group health 
     plans (as defined in section 607(1) of the Employee 
     Retirement Income Security Act of 1974), service benefit 
     plans, managed care organizations, pharmacy benefit managers, 
     or other parties that are, by statute, contract, or 
     agreement, legally responsible for payment of a claim for a 
     health care item or service, as a condition of doing business 
     in the State, to--
       ``(i) provide, with respect to individuals who are eligible 
     for, or are provided, medical assistance under the State 
     plan, upon the request of the State, information to determine 
     during what period the individual or their spouses or their 
     dependents may be (or may have been) covered by a health 
     insurer and the nature of the coverage that is or was 
     provided by the health insurer (including the name, address, 
     and identifying number of the plan) in a manner prescribed by 
     the Secretary;
       ``(ii) accept the State's right of recovery and the 
     assignment to the State of any right of an individual or 
     other entity to payment from the party for an item or service 
     for which payment has been made under the State plan;
       ``(iii) respond to any inquiry by the State regarding a 
     claim for payment for any health care item or service that is 
     submitted not later than 3 years after the date of the 
     provision of such health care item or service; and
       ``(iv) agree not to deny a claim submitted by the State 
     solely on the basis of the date of submission of the claim, 
     the type or format of the claim form, or a failure to present 
     proper documentation at the point-of-sale that is the basis 
     of the claim, if--

       ``(I) the claim is submitted by the State within the 3-year 
     period beginning on the date on which the item or service was 
     furnished; and
       ``(II) any action by the State to enforce its rights with 
     respect to such claim is commenced within 6 years of the 
     State's submission of such claim;''.

       (c) Effective date.--Except as provided in section 6035(e), 
     the amendments made by this section take effect on January 1, 
     2006.

     SEC. 6037. IMPROVED ENFORCEMENT OF DOCUMENTATION 
                   REQUIREMENTS.

       (a) In General.--Section 1903 of the Social Security Act 
     (42 U.S.C. 1396b) is amended--
       (1) in subsection (i), as amended by section 104 of Public 
     Law 109-91 and section 6031(a) of this Act--
       (A) by striking ``or'' at the end of paragraph (20);
       (B) by striking the period at the end of paragraph (21) and 
     inserting ``; or''; and
       (C) by inserting after paragraph (21) the following new 
     paragraph:
       ``(22) with respect to amounts expended for medical 
     assistance for an individual who declares under section 
     1137(d)(1)(A) to be a citizen or national of the United 
     States for purposes of establishing eligibility for benefits 
     under this title, unless the requirement of subsection (x) is 
     met.''; and
       (2) by adding at the end the following new subsection:
       ``(x)(1) For purposes of subsection (i)(23), the 
     requirement of this subsection is, with respect to an 
     individual declaring to be a citizen or national of the 
     United States, that, subject to paragraph (2), there is 
     presented satisfactory documentary evidence of citizenship or 
     nationality (as defined in paragraph (3)) of the individual.
       ``(2) The requirement of paragraph (1) shall not apply to 
     an alien who is eligible for medical assistance under this 
     title--
       ``(A) and is entitled to or enrolled for benefits under any 
     part of title XVIII;
       ``(B) on the basis of receiving supplemental security 
     income benefits under title XVI; or
       ``(C) on such other basis as the Secretary may specify 
     under which satisfactory documentary evidence of citizenship 
     or nationality had been previously presented.
       ``(3)(A) For purposes of this subsection, the term 
     `satisfactory documentary evidence of citizenship or 
     nationality' means--
       ``(i) any document described in subparagraph (B); or
       ``(ii) a document described in subparagraph (C) and a 
     document described in subparagraph (D).

[[Page 30851]]

       ``(B) The following are documents described in this 
     subparagraph:
       ``(i) A United States passport.
       ``(ii) Form N-550 or N-570 (Certificate of Naturalization).
       ``(iii) Form N-560 or N-561 (Certificate of United States 
     Citizenship).
       ``(iv) A valid State-issued driver's license or other 
     identity document described in section 274A(b)(1)(D) of the 
     Immigration and Nationality Act, but only if the State 
     issuing the license or such document requires proof of United 
     States citizenship before issuance of such license or 
     document or obtains a social security number from the 
     applicant and verifies before certification that such number 
     is valid and assigned to the applicant who is a citizen.
       ``(v) Such other document as the Secretary may specify, by 
     regulation, that provides proof of United States citizenship 
     or nationality and that provides a reliable means of 
     documentation of personal identity.
       ``(C) The following are documents described in this 
     subparagraph:
       ``(i) A certificate of birth in the United States.
       ``(ii) Form FS-545 or Form DS-1350 (Certification of Birth 
     Abroad).
       ``(iii) Form I-97 (United States Citizen Identification 
     Card).
       ``(iv) Form FS-240 (Report of Birth Abroad of a Citizen of 
     the United States).
       ``(v) Such other document (not described in subparagraph 
     (B)(iv)) as the Secretary may specify that provides proof of 
     United States citizenship or nationality.
       ``(D) The following are documents described in this 
     subparagraph:
       ``(i) Any identity document described in section 
     274A(b)(1)(D) of the Immigration and Nationality Act.
       ``(ii) Any other documentation of personal identity of such 
     other type as the Secretary finds, by regulation, provides a 
     reliable means of identification.
       ``(E) A reference in this paragraph to a form includes a 
     reference to any successor form.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to determinations of initial eligibility for 
     medical assistance made on or after July 1, 2006, and to 
     redeterminations of eligibility made on or after such date in 
     the case of individuals for whom the requirement of section 
     1903(z) of the Social Security Act, as added by such 
     amendments, was not previously met.
       (c) Implementation Requirement.--As soon as practicable 
     after the date of enactment of this Act, the Secretary of 
     Health and Human Services shall establish an outreach program 
     that is designed to educate individuals who are likely to be 
     affected by the requirements of subsections (i)(23) and (x) 
     of section 1903 of the Social Security Act (as added by 
     subsection (a)) about such requirements and how they may be 
     satisfied.

          CHAPTER 4--FLEXIBILITY IN COST SHARING AND BENEFITS

     SEC. 6041. STATE OPTION FOR ALTERNATIVE MEDICAID PREMIUMS AND 
                   COST SHARING.

       (a) In General.--Title XIX of the Social Security Act is 
     amended by inserting after section 1916 the following new 
     section:


        ``State option for alternative premiums and cost sharing

       ``Sec. 1916A. (a) State Flexibility.--
       ``(1) In general.--Notwithstanding sections 1916 and 
     1902(a)(10)(B), a State, at its option and through a State 
     plan amendment, may impose premiums and cost sharing for any 
     group of individuals (as specified by the State) and for any 
     type of services (other than drugs for which cost sharing may 
     be imposed under subsection (c)), and may vary such premiums 
     and cost sharing among such groups or types, consistent with 
     the limitations established under this section. Nothing in 
     this section shall be construed as superseding (or preventing 
     the application of) section 1916(g).
       ``(2) Definitions.--In this section:
       ``(A) Premium.--The term `premium' includes any enrollment 
     fee or similar charge.
       ``(B) Cost sharing.--The term `cost sharing' includes any 
     deduction, copayment, or similar charge.
       ``(b) Limitations on Exercise of Authority.--
       ``(1) Individuals with family income between 100 and 150 
     percent of the poverty line.--In the case of an individual 
     whose family income exceeds 100 percent, but does not exceed 
     150 percent, of the poverty line applicable to a family of 
     the size involved, subject to subsections (c)(2) and 
     (e)(2)(A)--
       ``(A) no premium may be imposed under the plan; and
       ``(B) with respect to cost sharing--
       ``(i) the cost sharing imposed under subsection (a) with 
     respect to any item or service may not exceed 10 percent of 
     the cost of such item or service; and
       ``(ii) the total aggregate amount of cost sharing imposed 
     under this section (including any cost sharing imposed under 
     subsection (c) or (e)) for all individuals in the family may 
     not exceed 5 percent of the family income of the family 
     involved, as applied on a quarterly or monthly basis (as 
     specified by the State).
       ``(2) Individuals with family income above 150 percent of 
     the poverty line.-- In the case of an individual whose family 
     income exceeds 150 percent of the poverty line applicable to 
     a family of the size involved, subject to subsections (c)(2) 
     and (e)(2)(A)--
       ``(A) the total aggregate amount of premiums and cost 
     sharing imposed under this section (including any cost 
     sharing imposed under subsection (c) or (e)) for all 
     individuals in the family may not exceed 5 percent of the 
     family income of the family involved, as applied on a 
     quarterly or monthly basis (as specified by the State); and
       ``(B) with respect to cost sharing, the cost sharing 
     imposed with respect to any item or service under subsection 
     (a) may not exceed 20 percent of the cost of such item or 
     service.
       ``(3) Additional limitations.--
       ``(A) Premiums.--No premiums shall be imposed under this 
     section with respect to the following:
       ``(i) Individuals under 18 years of age that are required 
     to be provided medical assistance under section 
     1902(a)(10)(A)(i), and including individuals with respect to 
     whom aid or assistance is made available under part B of 
     title IV to children in foster care and individuals with 
     respect to whom adoption or foster care assistance is made 
     available under part E of such title, without regard to age.
       ``(ii) Pregnant women.
       ``(iii) Any terminally ill individual who is receiving 
     hospice care (as defined in section 1905(o)).
       ``(iv) Any individual who is an inpatient in a hospital, 
     nursing facility, intermediate care facility for the mentally 
     retarded, or other medical institution, if such individual is 
     required, as a condition of receiving services in such 
     institution under the State plan, to spend for costs of 
     medical care all but a minimal amount of the individual's 
     income required for personal needs.
       ``(v) Women who are receiving medical assistance by virtue 
     of the application of sections 1902(a)(10)(A)(ii)(XVIII) and 
     1902(aa).
       ``(B) Cost sharing.--Subject to the succeeding provisions 
     of this section, no cost sharing shall be imposed under 
     subsection (a) with respect to the following:
       ``(i) Services furnished to individuals under 18 years of 
     age that are required to be provided medical assistance under 
     section 1902(a)(10)(A)(i), and including services furnished 
     to individuals with respect to whom aid or assistance is made 
     available under part B of title IV to children in foster care 
     and individuals with respect to whom adoption or foster care 
     assistance is made available under part E of such title, 
     without regard to age.
       ``(ii) Preventive services (such as well baby and well 
     child care and immunizations) provided to children under 18 
     years of age regardless of family income.
       ``(iii) Services furnished to pregnant women, if such 
     services relate to the pregnancy or to any other medical 
     condition which may complicate the pregnancy.
       ``(iv) Services furnished to a terminally ill individual 
     who is receiving hospice care (as defined in section 
     1905(o)).
       ``(v) Services furnished to any individual who is an 
     inpatient in a hospital, nursing facility, intermediate care 
     facility for the mentally retarded, or other medical 
     institution, if such individual is required, as a condition 
     of receiving services in such institution under the State 
     plan, to spend for costs of medical care all but a minimal 
     amount of the individual's income required for personal 
     needs.
       ``(vi) Emergency services (as defined by the Secretary for 
     purposes of section 1916(a)(2)(D)).
       ``(vii) Family planning services and supplies described in 
     section 1905(a)(4)(C).
       ``(viii) Services furnished to women who are receiving 
     medical assistance by virtue of the application of sections 
     1902(a)(10)(A)(ii)(XVIII) and 1902(aa).
       ``(C) Construction.--Nothing in this paragraph shall be 
     construed as preventing a State from exempting additional 
     classes of individuals from premiums under this section or 
     from exempting additional individuals or services from cost 
     sharing under subsection (a).
       ``(4) Determinations of family income.--In applying this 
     subsection, family income shall be determined in a manner 
     specified by the State for purposes of this subsection, 
     including the use of such disregards as the State may 
     provide. Family income shall be determined for such period 
     and at such periodicity as the State may provide under this 
     title.
       ``(5) Poverty line defined.--For purposes of this section, 
     the term `poverty line' has the meaning given such term in 
     section 673(2) of the Community Services Block Grant Act (42 
     U.S.C. 9902(2)), including any revision required by such 
     section.
       ``(6) Construction.--Nothing in this section shall be 
     construed--
       ``(A) as preventing a State from further limiting the 
     premiums and cost sharing imposed under this section beyond 
     the limitations provided under this section;
       ``(B) as affecting the authority of the Secretary through 
     waiver to modify limitations on premiums and cost sharing 
     under this section; or
       ``(C) as affecting any such waiver of requirements in 
     effect under this title before the date of the enactment of 
     this section with regard to the imposition of premiums and 
     cost sharing.

[[Page 30852]]

       ``(d) Enforceability of Premiums and Other Cost Sharing.--
       ``(1) Premiums.--Notwithstanding section 1916(c)(3) and 
     section 1902(a)(10)(B), a State may, at its option, condition 
     the provision of medical assistance for an individual upon 
     prepayment of a premium authorized to be imposed under this 
     section, or may terminate eligibility for such medical 
     assistance on the basis of failure to pay such a premium but 
     shall not terminate eligibility of an individual for medical 
     assistance under this title on the basis of failure to pay 
     any such premium until such failure continues for a period of 
     not less than 60 days. A State may apply the previous 
     sentence for some or all groups of beneficiaries as specified 
     by the State and may waive payment of any such premium in any 
     case where the State determines that requiring such payment 
     would create an undue hardship.
       ``(2) Cost sharing.--Notwithstanding section 1916(e) or any 
     other provision of law, a State may permit a provider 
     participating under the State plan to require, as a condition 
     for the provision of care, items, or services to an 
     individual entitled to medical assistance under this title 
     for such care, items, or services, the payment of any cost 
     sharing authorized to be imposed under this section with 
     respect to such care, items, or services. Nothing in this 
     paragraph shall be construed as preventing a provider from 
     reducing or waiving the application of such cost sharing on a 
     case-by-case basis.''.
       (b) Indexing Nominal Cost Sharing and Conforming 
     Amendment.--Section 1916 of such Act (42 U.S.C. 1396o) is 
     amended--
       (1) in subsection (f), by inserting ``and section 1916A'' 
     after ``(b)(3)''; and
       (2) by adding at the end the following new subsection:
       ``(h) In applying this section and subsections (c) and (e) 
     of section 1916A, with respect to cost sharing that is 
     `nominal' in amount, the Secretary shall increase such 
     `nominal' amounts for each year (beginning with 2006) by the 
     annual percentage increase in the medical care component of 
     the consumer price index for all urban consumers (U.S. city 
     average) as rounded up in an appropriate manner.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to cost sharing imposed for items and services 
     furnished on or after March 31, 2006.

     SEC. 6042. SPECIAL RULES FOR COST SHARING FOR PRESCRIPTION 
                   DRUGS.

       (a) In General.--Section 1916A of the Social Security Act, 
     as inserted by section 6041(a), is amended by inserting after 
     subsection (b) the following new subsection:
       ``(c) Special Rules for Cost Sharing for Prescription 
     Drugs.--
       ``(1) In general.--In order to encourage beneficiaries to 
     use drugs (in this subsection referred to as `preferred 
     drugs') identified by the State as the least (or less) costly 
     effective prescription drugs within a class of drugs (as 
     defined by the State), with respect to one or more groups of 
     beneficiaries specified by the State, subject to paragraph 
     (2), the State may--
       ``(A) provide cost sharing (instead of the level of cost 
     sharing otherwise permitted under section 1916, but subject 
     to paragraphs (2) and (3)) with respect to drugs that are not 
     preferred drugs within a class; and
       ``(B) waive or reduce the cost sharing otherwise applicable 
     for preferred drugs within such class and shall not apply any 
     such cost sharing for such preferred drugs for individuals 
     for whom cost sharing may not otherwise be imposed under 
     subsection (b)(3)(B).
       ``(2) Limitations.--
       ``(A) By income group.--In no case may the cost sharing 
     under paragraph (1)(A) with respect to a non-preferred drug 
     exceed--
       ``(i) in the case of an individual whose family income does 
     not exceed 150 percent of the poverty line applicable to a 
     family of the size involved, the amount of nominal cost 
     sharing (as otherwise determined under section 1916); or
       ``(ii) in the case of an individual whose family income 
     exceeds 150 percent of the poverty line applicable to a 
     family of the size involved, 20 percent of the cost of the 
     drug.
       ``(B) Limitation to nominal for exempt populations.--In the 
     case of an individual who is otherwise not subject to cost 
     sharing due to the application of subsection (b)(3)(B), any 
     cost sharing under paragraph (1)(A) with respect to a non-
     preferred drug may not exceed a nominal amount (as otherwise 
     determined under section 1916).
       ``(C) Continued application of aggregate cap.--In addition 
     to the limitations imposed under subparagraphs (A) and (B), 
     any cost sharing under paragraph (1)(A) continues to be 
     subject to the aggregate cap on cost sharing applied under 
     paragraph (1) or (2) of subsection (b), as the case may be.
       ``(3) Waiver.--In carrying out paragraph (1), a State shall 
     provide for the application of cost sharing levels applicable 
     to a preferred drug in the case of a drug that is not a 
     preferred drug if the prescribing physician determines that 
     the preferred drug for treatment of the same condition either 
     would not be as effective for the individual or would have 
     adverse effects for the individual or both.
       ``(4) Exclusion authority.--Nothing in this subsection 
     shall be construed as preventing a State from excluding 
     specified drugs or classes of drugs from the application of 
     paragraph (1).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to cost sharing imposed for items and services 
     furnished on or after March 31, 2006.

     SEC. 6043. EMERGENCY ROOM COPAYMENTS FOR NON-EMERGENCY CARE.

       (a) In General.--Section 1916A of the Social Security Act, 
     as inserted by section 6041 and as amended by section 6042, 
     is further amended by adding at the end the following new 
     subsection:
       ``(e) State Option for Permitting Hospitals To Impose Cost 
     Sharing for Non-Emergency Care Furnished in an Emergency 
     Department.--
       ``(1) In general.--Notwithstanding section 1916 and section 
     1902(a)(1) or the previous provisions of this section, but 
     subject to the limitations of paragraph (2), a State may, by 
     amendment to its State plan under this title, permit a 
     hospital to impose cost sharing for non-emergency services 
     furnished to an individual (within one or more groups of 
     individuals specified by the State) in the hospital emergency 
     department under this subsection if the following conditions 
     are met:
       ``(A) Access to non-emergency room provider.--The 
     individual has actually available and accessible (as such 
     terms are applied by the Secretary under section 1916(b)(3)) 
     an alternate non-emergency services provider with respect to 
     such services.
       ``(B) Notice.--The hospital must inform the beneficiary 
     after receiving an appropriate medical screening examination 
     under section 1867 and after a determination has been made 
     that the individual does not have an emergency medical 
     condition, but before providing the non-emergency services, 
     of the following:
       ``(i) The hospital may require the payment of the State 
     specified cost sharing before the service can be provided.
       ``(ii) The name and location of an alternate non-emergency 
     services provider (described in subparagraph (A)) that is 
     actually available and accessible (as described in such 
     subparagraph).
       ``(iii) The fact that such alternate provider can provide 
     the services without the imposition of cost sharing described 
     in clause (i).
       ``(iv) The hospital provides a referral to coordinate 
     scheduling of this treatment.
     Nothing in this subsection shall be construed as preventing a 
     State from applying (or waiving) cost sharing otherwise 
     permissible under this section to services described in 
     clause (iii).
       ``(2) Limitations.--
       ``(A) For poorest beneficiaries.--In the case of an 
     individual described in subsection (b)(1), the cost sharing 
     imposed under this subsection may not exceed twice the amount 
     determined to be nominal under section 1916, subject to the 
     percent of income limitation otherwise applicable under 
     subsection (b)(1).
       ``(B) Application to exempt populations.--In the case of an 
     individual who is otherwise not subject to cost sharing under 
     subsection (b)(3), a State may impose cost sharing under 
     paragraph (1) for care in an amount that does not exceed a 
     nominal amount (as otherwise determined under section 1916) 
     so long as no cost sharing is imposed to receive such care 
     through an outpatient department or other alternative health 
     care provider in the geographic area of the hospital 
     emergency department involved.
       ``(C) Continued application of aggregate cap; relation to 
     other cost sharing.--In addition to the limitations imposed 
     under subparagraphs (A) and (B), any cost sharing under 
     paragraph (1) is subject to the aggregate cap on cost sharing 
     applied under paragraph (1) or (2) of subsection (b), as the 
     case may be. Cost sharing imposed for services under this 
     subsection shall be instead of any cost sharing that may be 
     imposed for such services under subsection (a).
       ``(3) Construction.--Nothing in this section shall be 
     construed--
       ``(A) to limit a hospital's obligations with respect to 
     screening and stabilizing treatment of an emergency medical 
     condition under section 1867; or
       ``(B) to modify any obligations under either State or 
     Federal standards relating to the application of a prudent-
     layperson standard with respect to payment or coverage of 
     emergency services by any managed care organization.
       ``(5) Definitions.--For purposes of this subsection:
       ``(A) Non-emergency services.--The term `non-emergency 
     services' means any care or services furnished in a emergency 
     department of a hospital that the physician determines do not 
     constitute an appropriate medical screening examination or 
     stabilizing examination and treatment required to be provided 
     by the hospital under section 1867.
       ``(B) Alternate non-emergency services provider.--The term 
     `alternative non-emergency services provider' means, with 
     respect to non-emergency services for the diagnosis or 
     treatment of a condition, a health care provider, such as a 
     physician's office, health care clinic, community health 
     center, hospital outpatient department, or similar health 
     care provider, that can provide clinically appropriate 
     services for the diagnosis or treatment of a condition 
     contemporaneously with the provision of the non-emergency 
     services that would be provided in a

[[Page 30853]]

     emergency department of a hospital for the diagnosis or 
     treatment of a condition, and that is participating in the 
     program under this title.''.
       (b) Grant Funds for Establishment of Alternate Non-
     Emergency Services Providers.--Section 1903 of the Social 
     Security Act (42 U.S.C. 1396b), as amended by section 
     6037(a)(2), is amended by adding at the end the following new 
     subsection:
       ``(y) Payments for Establishment of Alternate Non-Emergency 
     Services Providers.--
       ``(1) Payments.--In addition to the payments otherwise 
     provided under subsection (a), subject to paragraph (2), the 
     Secretary shall provide for payments to States under such 
     subsection for the establishment of alternate non-emergency 
     service providers (as defined in section 1916A(e)(5)(B)), or 
     networks of such providers.
       ``(2) Limitation.--The total amount of payments under this 
     subsection shall not exceed $50,000,000 during the 4-year 
     period beginning with 2006. This subsection constitutes 
     budget authority in advance of appropriations Acts and 
     represents the obligation of the Secretary to provide for the 
     payment of amounts provided under this subsection.
       ``(3) Preference.--In providing for payments to States 
     under this subsection, the Secretary shall provide preference 
     to States that establish, or provide for, alternate non-
     emergency services providers or networks of such providers 
     that--
       ``(A) serve rural or underserved areas where beneficiaries 
     under this title may not have regular access to providers of 
     primary care services; or
       ``(B) are in partnership with local community hospitals.
       ``(4) Form and manner of payment.--Payment to a State under 
     this subsection shall be made only upon the filing of such 
     application in such form and in such manner as the Secretary 
     shall specify. Payment to a State under this subsection shall 
     be made in the same manner as other payments under section 
     1903(a).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to non-emergency services furnished on or after 
     January 1, 2007.

     SEC. 6044. USE OF BENCHMARK BENEFIT PACKAGES.

       (a) In General.--Title XIX of the Social Security Act, as 
     amended by section 6035, is amended by redesignating section 
     1937 as section 1938 and by inserting after section 1936 the 
     following new section:


                ``State flexibility in benefit packages

       ``Sec. 1937. (a) State Option of Providing Benchmark 
     Benefits.--
       ``(1) Authority.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, a State, at its option as a State plan amendment, 
     may provide for medical assistance under this title to 
     individuals within one or more groups of individuals 
     specified by the State through enrollment in coverage that 
     provides--
       ``(i) benchmark coverage described in subsection (b)(1) or 
     benchmark equivalent coverage described in subsection (b)(2); 
     and
       ``(ii) for any child under 19 years of age who is covered 
     under the State plan under section 1902(a)(10)(A), wrap-
     around benefits to the benchmark coverage or benchmark 
     equivalent coverage consisting of early and periodic 
     screening, diagnostic, and treatment services defined in 
     section 1905(r).
       ``(B) Limitation.--The State may only exercise the option 
     under subparagraph (A) for an individual eligible under an 
     eligibility category that had been established under the 
     State plan on or before the date of the enactment of this 
     section.
       ``(C) Option of wrap-around benefits.--In the case of 
     coverage described in subparagraph (A), a State, at its 
     option, may provide such wrap-around or additional benefits 
     as the State may specify.
       ``(D) Treatment as medical assistance.--Payment of premiums 
     for such coverage under this subsection shall be treated as 
     payment of other insurance premiums described in the third 
     sentence of section 1905(a).
       ``(2) Application.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a State may require that a full-benefit eligible individual 
     (as defined in subparagraph (C)) within a group obtain 
     benefits under this title through enrollment in coverage 
     described in paragraph (1)(A). A State may apply the previous 
     sentence to individuals within 1 or more groups of such 
     individuals.
       ``(B) Limitation on application.--A State may not require 
     under subparagraph (A) an individual to obtain benefits 
     through enrollment described in paragraph (1)(A) if the 
     individual is within one of the following categories of 
     individuals:
       ``(i) Mandatory pregnant women.--The individual is a 
     pregnant woman who is required to be covered under the State 
     plan under section 1902(a)(10)(A)(i).
       ``(ii) Blind or disabled individuals.--The individual 
     qualifies for medical assistance under the State plan on the 
     basis of being blind or disabled (or being treated as being 
     blind or disabled) without regard to whether the individual 
     is eligible for supplemental security income benefits under 
     title XVI on the basis of being blind or disabled and 
     including an individual who is eligible for medical 
     assistance on the basis of section 1902(e)(3).
       ``(iii) Dual eligibles.--The individual is entitled to 
     benefits under any part of title XVIII.
       ``(iv) Terminally ill hospice patients.--The individual is 
     terminally ill and is receiving benefits for hospice care 
     under this title.
       ``(v) Eligible on basis of institutionalization.--The 
     individual is an inpatient in a hospital, nursing facility, 
     intermediate care facility for the mentally retarded, or 
     other medical institution, and is required, as a condition of 
     receiving services in such institution under the State plan, 
     to spend for costs of medical care all but a minimal amount 
     of the individual's income required for personal needs.
       ``(vi) Medically frail and special medical needs 
     individuals.--The individual is medically frail or otherwise 
     an individual with special medical needs (as identified in 
     accordance with regulations of the Secretary).
       ``(vii) Beneficiaries qualifying for long-term care 
     services.--The individual qualifies based on medical 
     condition for medical assistance for long-term care services 
     described in section 1917(c)(1)(C).
       ``(viii) Children in foster care receiving child welfare 
     services and children receiving foster care or adoption 
     assistance.--The individual is an individual with respect to 
     whom aid or assistance is made available under part B of 
     title IV to children in foster care and individuals with 
     respect to whom adoption or foster care assistance is made 
     available under part E of such such title, without regard to 
     age.
       ``(ix) TANF and section 1931 parents.--The individual 
     qualifies for medical assistance on the basis of eligibility 
     to receive assistance under a State plan funded under part A 
     of title IV (as in effect on or after the welfare reform 
     effective date defined in section 1931(i)).
       ``(x) Women in the breast or cervical cancer program.--The 
     individual is a woman who is receiving medical assistance by 
     virtue of the application of sections 
     1902(a)(10)(A)(ii)(XVIII) and 1902(aa).
       ``(xii) Limited services beneficiaries.--The individual--

       ``(I) qualifies for medical assistance on the basis of 
     section 1902(a)(10)(A)(ii)(XII); or
       ``(II) is not a qualified alien (as defined in section 431 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996) and receives care and services 
     necessary for the treatment of an emergency medical condition 
     in accordance with section 1903(v).

       ``(C) Full-benefit eligible individuals.--
       ``(i) In general.--For purposes of this paragraph, subject 
     to clause (ii), the term `full-benefit eligible individual' 
     means for a State for a month an individual who is determined 
     eligible by the State for medical assistance for all services 
     defined in section 1905(a) which are covered under the State 
     plan under this title for such month under section 
     1902(a)(10)(A) or under any other category of eligibility for 
     medical assistance for all such services under this title, as 
     determined by the Secretary.
       ``(ii) Exclusion of medically needy and spend-down 
     populations.--Such term shall not include an individual 
     determined to be eligible by the State for medical assistance 
     under section 1902(a)(10)(C) or by reason of section 1902(f) 
     or otherwise eligible based on a reduction of income based on 
     costs incurred for medical or other remedial care.
       ``(b) Benchmark Benefit Packages.--
       ``(1) In general.--For purposes of subsection (a)(1), each 
     of the following coverage shall be considered to be benchmark 
     coverage:
       ``(A) FEHBP-equivalent health insurance coverage.--The 
     standard Blue Cross/Blue Shield preferred provider option 
     service benefit plan, described in and offered under section 
     8903(1) of title 5, United States Code.
       ``(B) State employee coverage.--A health benefits coverage 
     plan that is offered and generally available to State 
     employees in the State involved.
       ``(C) Coverage offered through hmo.--The health insurance 
     coverage plan that--
       ``(i) is offered by a health maintenance organization (as 
     defined in section 2791(b)(3) of the Public Health Service 
     Act), and
       ``(ii) has the largest insured commercial, non-medicaid 
     enrollment of covered lives of such coverage plans offered by 
     such a health maintenance organization in the State involved.
       ``(D) Secretary-approved coverage.--Any other health 
     benefits coverage that the Secretary determines, upon 
     application by a State, provides appropriate coverage for the 
     population proposed to be provided such coverage.
       ``(2) Benchmark-equivalent coverage.--For purposes of 
     subsection (a)(1), coverage that meets the following 
     requirement shall be considered to be benchmark-equivalent 
     coverage:
       ``(A) Inclusion of basic services.--The coverage includes 
     benefits for items and services within each of the following 
     categories of basic services:
       ``(i) Inpatient and outpatient hospital services.
       ``(ii) Physicians' surgical and medical services.
       ``(iii) Laboratory and x-ray services.

[[Page 30854]]

       ``(iv) Well-baby and well-child care, including age-
     appropriate immunizations.
       ``(v) Other appropriate preventive services, as designated 
     by the Secretary.
       ``(B) Aggregate actuarial value equivalent to benchmark 
     package.--The coverage has an aggregate actuarial value that 
     is at least actuarially equivalent to one of the benchmark 
     benefit packages described in paragraph (1).
       ``(C) Substantial actuarial value for additional services 
     included in benchmark package.--With respect to each of the 
     following categories of additional services for which 
     coverage is provided under the benchmark benefit package used 
     under subparagraph (B), the coverage has an actuarial value 
     that is equal to at least 75 percent of the actuarial value 
     of the coverage of that category of services in such package:
       ``(i) Coverage of prescription drugs.
       ``(ii) Mental health services.
       ``(iii) Vision services.
       ``(iv) Hearing services.
       ``(3) Determination of actuarial value.--The actuarial 
     value of coverage of benchmark benefit packages shall be set 
     forth in an actuarial opinion in an actuarial report that has 
     been prepared--
       ``(A) by an individual who is a member of the American 
     Academy of Actuaries;
       ``(B) using generally accepted actuarial principles and 
     methodologies;
       ``(C) using a standardized set of utilization and price 
     factors;
       ``(D) using a standardized population that is 
     representative of the population involved;
       ``(E) applying the same principles and factors in comparing 
     the value of different coverage (or categories of services);
       ``(F) without taking into account any differences in 
     coverage based on the method of delivery or means of cost 
     control or utilization used; and
       ``(G) taking into account the ability of a State to reduce 
     benefits by taking into account the increase in actuarial 
     value of benefits coverage offered under this title that 
     results from the limitations on cost sharing under such 
     coverage.
     The actuary preparing the opinion shall select and specify in 
     the memorandum the standardized set and population to be used 
     under subparagraphs (C) and (D).
       ``(4) Coverage of rural health clinic and fqhc services.--
     Notwithstanding the previous provisions of this section, a 
     State may not provide for medical assistance through 
     enrollment of an individual with benchmark coverage or 
     benchmark equivalent coverage under this section unless--
       ``(A) the individual has access, through such coverage or 
     otherwise, to services described in subparagraphs (B) and (C) 
     of section 1905(a)(2); and
       ``(B) payment for such services is made in accordance with 
     the requirements of section 1902(bb).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on March 31, 2006.

               CHAPTER 5--STATE FINANCING UNDER MEDICAID

     SEC. 6051. MANAGED CARE ORGANIZATION PROVIDER TAX REFORM.

       (a) In General.--Section 1903(w)(7)(A)(viii) of the Social 
     Security Act (42 U.S.C. 1396b(w)(7)(A)(viii)) is amended to 
     read as follows:
       ``(viii) Services of managed care organizations (including 
     health maintenance organizations, preferred provider 
     organizations, and such other similar organizations as the 
     Secretary may specify by regulation).''.
       (b) Effective Date.--
       (1) In general.--Subject to paragraph (2), the amendment 
     made by subsection (a) shall be effective as of the date of 
     the enactment of this Act.
       (2) Delay in effective date.--
       (A) In general.--Subject to subparagraph (B), in the case 
     of a State specified in subparagraph (B), the amendment made 
     by subsection (a) shall be effective as of October 1, 2009.
       (B) Specified states.--For purposes of subparagraph (A), 
     the States specified in this subparagraph are States that 
     have enacted a law providing for a tax on the services of a 
     medicaid managed care organization with a contract under 
     section 1903(m) of the Social Security Act as of December 8, 
     2005.
       (c) Clarification Regarding Non-Regulation of Transfers.--
       (1) In general.--Nothing in section 1903(w) of the Social 
     Security Act (42 U.S.C. 1396b(w)) shall be construed by the 
     Secretary of Health and Human Services as prohibiting a 
     State's use of funds as the non-Federal share of expenditures 
     under title XIX of such Act where such funds are transferred 
     from or certified by a publicly-owned regional medical center 
     located in another State and described in paragraph (2), so 
     long as the Secretary determines that such use of funds is 
     proper and in the interest of the program under title XIX.
       (2) Center described.--A center described in this paragraph 
     is a publicly-owned regional medical center that--
       (A) provides level 1 trauma and burn care services;
       (B) provides level 3 neonatal care services;
       (C) is obligated to serve all patients, regardless of State 
     of origin;
       (D) is located within a Standard Metropolitan Statistical 
     Area (SMSA) that includes at least 3 States, including the 
     States described in paragraph (1);
       (E) serves as a tertiary care provider for patients 
     residing within a 125 mile radius; and
       (F) meets the criteria for a disproportionate share 
     hospital under section 1923 of such Act in at least one State 
     other than the one in which the center is located.
       (3) Effective period.--This subsection shall apply through 
     December 31, 2006.

     SEC. 6052. REFORMS OF CASE MANAGEMENT AND TARGETED CASE 
                   MANAGEMENT.

       (a) In General.--Section 1915(g) of the Social Security Act 
     (42 U.S.C. 1396n(g)(2)) is amended by striking paragraph (2) 
     and inserting the following:
       ``(2) For purposes of this subsection:
       ``(A)(i) The term `case management services' means services 
     which will assist individuals eligible under the plan in 
     gaining access to needed medical, social, educational, and 
     other services.
       ``(ii) Such term includes the following:
       ``(I) Assessment of an eligible individual to determine 
     service needs, including activities that focus on needs 
     identification, to determine the need for any medical, 
     educational, social, or other services. Such assessment 
     activities include the following:
       ``(aa) Taking client history.
       ``(bb) Identifying the needs of the individual, and 
     completing related documentation.
       ``(cc) Gathering information from other sources such as 
     family members, medical providers, social workers, and 
     educators, if necessary, to form a complete assessment of the 
     eligible individual.
       ``(II) Development of a specific care plan based on the 
     information collected through an assessment, that specifies 
     the goals and actions to address the medical, social, 
     educational, and other services needed by the eligible 
     individual, including activities such as ensuring the active 
     participation of the eligible individual and working with the 
     individual (or the individual's authorized health care 
     decision maker) and others to develop such goals and identify 
     a course of action to respond to the assessed needs of the 
     eligible individual.
       ``(III) Referral and related activities to help an 
     individual obtain needed services, including activities that 
     help link eligible individuals with medical, social, 
     educational providers or other programs and services that are 
     capable of providing needed services, such as making 
     referrals to providers for needed services and scheduling 
     appointments for the individual.
       ``(IV) Monitoring and followup activities, including 
     activities and contacts that are necessary to ensure the care 
     plan is effectively implemented and adequately addressing the 
     needs of the eligible individual, and which may be with the 
     individual, family members, providers, or other entities and 
     conducted as frequently as necessary to help determine such 
     matters as--
       ``(aa) whether services are being furnished in accordance 
     with an individual's care plan;
       ``(bb) whether the services in the care plan are adequate; 
     and
       ``(cc) whether there are changes in the needs or status of 
     the eligible individual, and if so, making necessary 
     adjustments in the care plan and service arrangements with 
     providers.
       ``(iii) Such term does not include the direct delivery of 
     an underlying medical, educational, social, or other service 
     to which an eligible individual has been referred, including, 
     with respect to the direct delivery of foster care services, 
     services such as (but not limited to) the following:
       ``(I) Research gathering and completion of documentation 
     required by the foster care program.
       ``(II) Assessing adoption placements.
       ``(III) Recruiting or interviewing potential foster care 
     parents.
       ``(IV) Serving legal papers.
       ``(V) Home investigations.
       ``(VI) Providing transportation.
       ``(VII) Administering foster care subsidies.
       ``(VIII) Making placement arrangements.
       ``(B) The term `targeted case management services' are case 
     management services that are furnished without regard to the 
     requirements of section 1902(a)(1) and section 1902(a)(10)(B) 
     to specific classes of individuals or to individuals who 
     reside in specified areas.
       ``(3) With respect to contacts with individuals who are not 
     eligible for medical assistance under the State plan or, in 
     the case of targeted case management services, individuals 
     who are eligible for such assistance but are not part of the 
     target population specified in the State plan, such 
     contacts--
       ``(A) are considered an allowable case management activity, 
     when the purpose of the contact is directly related to the 
     management of the eligible individual's care; and
       ``(B) are not considered an allowable case management 
     activity if such contacts relate directly to the 
     identification and management of the noneligible or 
     nontargeted individual's needs and care.
       ``(4)(A) In accordance with section 1902(a)(25), Federal 
     financial participation only is available under this title 
     for case management services or targeted case management 
     services if there are no other third

[[Page 30855]]

     parties liable to pay for such services, including as 
     reimbursement under a medical, social, educational, or other 
     program.
       ``(B) A State shall allocate the costs of any part of such 
     services which are reimbursable under another federally 
     funded program in accordance with OMB Circular A-87 (or any 
     related or successor guidance or regulations regarding 
     allocation of costs among federally funded programs) under an 
     approved cost allocation program.
       ``(5) Nothing in this subsection shall be construed as 
     affecting the application of rules with respect to third 
     party liability under programs, or activities carried out 
     under title XXVI of the Public Health Service Act or by the 
     Indian Health Service.''.
       (b) Regulations.--The Secretary shall promulgate 
     regulations to carry out the amendment made by subsection (a) 
     which may be effective and final immediately on an interim 
     basis as of the date of publication of the interim final 
     regulation. If the Secretary provides for an interim final 
     regulation, the Secretary shall provide for a period of 
     public comments on such regulation after the date of 
     publication. The Secretary may change or revise such 
     regulation after completion of the period of public comment.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2006.

     SEC. 6053. ADDITIONAL FMAP ADJUSTMENTS.

       (a) Hold Harmless for Certain Decrease.--Notwithstanding 
     the first sentence of section 1905(b) of the Social Security 
     Act (42 U.S.C. 1396d(b)), if, for purposes of titles XIX and 
     XXI of the Social Security Act (42 U.S.C. 1396 et seq., 
     1397aa et seq.), the Federal medical assistance percentage 
     determined for the State specified in section 4725(a) of 
     Public Law 105-33 for fiscal year 2006 or fiscal year 2007 is 
     less than the Federal medical assistance percentage 
     determined for such State for fiscal year 2005, the Federal 
     medical assistance percentage determined for such State for 
     fiscal year 2005 shall be substituted for the Federal medical 
     assistance percentage otherwise determined for such State for 
     fiscal year 2006 or fiscal year 2007, as the case may be.
       (b) Hold Harmless for Katrina Impact.--Notwithstanding any 
     other provision of law, for purposes of titles XIX and XXI of 
     the Social Security Act, the Secretary of Health and Human 
     Services, in computing the Federal medical assistance 
     percentage under section 1905(b) of such Act (42 U.S.C. 
     1396d(b)) for any year after 2006 for a State that the 
     Secretary determines has a significant number of evacuees who 
     were evacuated to, and live in, the State as a result of 
     Hurricane Katrina as of October 1, 2005, shall disregard such 
     evacuees (and income attributable to such evacuees) from such 
     computation.

     SEC. 6054. DSH ALLOTMENT FOR THE DISTRICT OF COLUMBIA.

       (a) In General.--For purposes of determining the DSH 
     allotment for the District of Columbia under section 1923 of 
     the Social Security Act (42 U.S.C. 1396r-4) for fiscal year 
     2006 and each subsequent fiscal year, the table in subsection 
     (f)(2) of such section is amended under each of the columns 
     for FY 00, FY 01, and FY 02, in the entry for the District of 
     Columbia by striking ``32'' and inserting ``49''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if enacted on October 1, 2005, and shall 
     only apply to disproportionate share hospital adjustment 
     expenditures applicable to fiscal year 2006 and subsequent 
     fiscal years made on or after that date.

     SEC. 6055. INCREASE IN MEDICAID PAYMENTS TO INSULAR AREAS.

       Section 1108(g) of the Social Security Act (42 U.S.C. 
     1308(g)) is amended--
       (1) in paragraph (2), by inserting ``and subject to 
     paragraph (3)'' after ``subsection (f)''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Fiscal years 2006 and 2007 for certain insular 
     areas.--The amounts otherwise determined under this 
     subsection for Puerto Rico, the Virgin Islands, Guam, the 
     Northern Mariana Islands, and American Samoa for fiscal year 
     2006 and fiscal year 2007 shall be increased by the following 
     amounts:
       ``(A) For Puerto Rico, $12,000,000 for fiscal year 2006 and 
     $12,000,000 for fiscal year 2007.
       ``(B) For the Virgin Islands, $2,500,000 for fiscal year 
     2006 and $5,000,000 for fiscal year 2007.
       ``(C) For Guam, $2,500,000 for fiscal year 2006 and 
     $5,000,000 for fiscal year 2007.
       ``(D) For the Northern Mariana Islands, $1,000,000 for 
     fiscal year 2006 and $2,000,000 for fiscal year 2007.
       ``(E) For American Samoa, $2,000,000 for fiscal year 2006 
     and $4,000,000 for fiscal year 2007.
     Such amounts shall not be taken into account in applying 
     paragraph (2) for fiscal year 2007 but shall be taken into 
     account in applying such paragraph for fiscal year 2008 and 
     subsequent fiscal years.''.

                      CHAPTER 6--OTHER PROVISIONS

                  Subchapter A--Family Opportunity Act

     SEC. 6061. SHORT TITLE OF SUBCHAPTER.

       This subchapter may be cited as the ``Family Opportunity 
     Act of 2005'' or the ``Dylan Lee James Act''.

     SEC. 6062. OPPORTUNITY FOR FAMILIES OF DISABLED CHILDREN TO 
                   PURCHASE MEDICAID COVERAGE FOR SUCH CHILDREN.

       (a) State Option To Allow Families of Disabled Children To 
     Purchase Medicaid Coverage for Such Children.--
       (1) In general.--Section 1902 of the Social Security Act 
     (42 U.S.C. 1396a) is amended--
       (A) in subsection (a)(10)(A)(ii)--
       (i) by striking ``or'' at the end of subclause (XVII);
       (ii) by adding ``or'' at the end of subclause (XVIII); and
       (iii) by adding at the end the following new subclause:

       ``(XIX) who are disabled children described in subsection 
     (cc)(1);''; and

       (B) by adding at the end the following new subsection:
       ``(cc)(1) Individuals described in this paragraph are 
     individuals--
       ``(A) who are children who have not attained 19 years of 
     age and are born--
       ``(i) on or after January 1, 2001 (or, at the option of a 
     State, on or after an earlier date), in the case of the 
     second, third, and fourth quarters of fiscal year 2007;
       ``(ii) on or after October 1, 1995 (or, at the option of a 
     State, on or after an earlier date), in the case of each 
     quarter of fiscal year 2008; and
       ``(iii) after October 1, 1989, in the case of each quarter 
     of fiscal year 2009 and each quarter of any fiscal year 
     thereafter;
       ``(B) who would be considered disabled under section 
     1614(a)(3)(C) (as determined under title XVI for children but 
     without regard to any income or asset eligibility 
     requirements that apply under such title with respect to 
     children); and
       ``(C) whose family income does not exceed such income level 
     as the State establishes and does not exceed--
       ``(i) 300 percent of the poverty line (as defined in 
     section 2110(c)(5)) applicable to a family of the size 
     involved; or
       ``(ii) such higher percent of such poverty line as a State 
     may establish, except that--
       ``(I) any medical assistance provided to an individual 
     whose family income exceeds 300 percent of such poverty line 
     may only be provided with State funds; and
       ``(II) no Federal financial participation shall be provided 
     under section 1903(a) for any medical assistance provided to 
     such an individual.''.
       (2) Interaction with employer-sponsored family coverage.--
     Section 1902(cc) of such Act (42 U.S.C. 1396a(cc)), as added 
     by paragraph (1)(B), is amended by adding at the end the 
     following new paragraph:
       ``(2)(A) If an employer of a parent of an individual 
     described in paragraph (1) offers family coverage under a 
     group health plan (as defined in section 2791(a) of the 
     Public Health Service Act), the State shall--
       ``(i) notwithstanding section 1906, require such parent to 
     apply for, enroll in, and pay premiums for such coverage as a 
     condition of such parent's child being or remaining eligible 
     for medical assistance under subsection (a)(10)(A)(ii)(XIX) 
     if the parent is determined eligible for such coverage and 
     the employer contributes at least 50 percent of the total 
     cost of annual premiums for such coverage; and
       ``(ii) if such coverage is obtained--
       ``(I) subject to paragraph (2) of section 1916(h), reduce 
     the premium imposed by the State under that section in an 
     amount that reasonably reflects the premium contribution made 
     by the parent for private coverage on behalf of a child with 
     a disability; and
       ``(II) treat such coverage as a third party liability under 
     subsection (a)(25).
       ``(B) In the case of a parent to which subparagraph (A) 
     applies, a State, notwithstanding section 1906 but subject to 
     paragraph (1)(C)(ii), may provide for payment of any portion 
     of the annual premium for such family coverage that the 
     parent is required to pay. Any payments made by the State 
     under this subparagraph shall be considered, for purposes of 
     section 1903(a), to be payments for medical assistance.''.
       (b) State Option To Impose Income-Related Premiums.--
     Section 1916 of such Act (42 U.S.C. 1396o) is amended--
       (1) in subsection (a), by striking ``subsection (g)'' and 
     inserting ``subsections (g) and (i)''; and
       (2) by adding at the end, as amended by section 6041(b)(2), 
     the following new subsection:
       ``(i)(1) With respect to disabled children provided medical 
     assistance under section 1902(a)(10)(A)(ii)(XIX), subject to 
     paragraph (2), a State may (in a uniform manner for such 
     children) require the families of such children to pay 
     monthly premiums set on a sliding scale based on family 
     income.
       ``(2) A premium requirement imposed under paragraph (1) may 
     only apply to the extent that--
       ``(A) in the case of a disabled child described in that 
     paragraph whose family income--
       ``(i) does not exceed 200 percent of the poverty line, the 
     aggregate amount of such premium and any premium that the 
     parent is required to pay for family coverage under section 
     1902(cc)(2)(A)(i) and other cost-sharing charges do not 
     exceed 5 percent of the family's income; and
       ``(ii) exceeds 200, but does not exceed 300, percent of the 
     poverty line, the aggregate amount of such premium and any 
     premium

[[Page 30856]]

     that the parent is required to pay for family coverage under 
     section 1902(cc)(2)(A)(i) and other cost-sharing charges do 
     not exceed 7.5 percent of the family's income; and
       ``(B) the requirement is imposed consistent with section 
     1902(cc)(2)(A)(ii)(I).
       ``(3) A State shall not require prepayment of a premium 
     imposed pursuant to paragraph (1) and shall not terminate 
     eligibility of a child under section 1902(a)(10)(A)(ii)(XIX) 
     for medical assistance under this title on the basis of 
     failure to pay any such premium until such failure continues 
     for a period of at least 60 days from the date on which the 
     premium became past due. The State may waive payment of any 
     such premium in any case where the State determines that 
     requiring such payment would create an undue hardship.''.
       (c) Conforming Amendments.--(1) Section 1903(f)(4) of such 
     Act (42 U.S.C. 1396b(f)(4)) is amended in the matter 
     preceding subparagraph (A), by inserting 
     ``1902(a)(10)(A)(ii)(XIX),'' after 
     ``1902(a)(10)(A)(ii)(XVIII),''.
       (2) Section 1905(u)(2)(B) of such Act (42 U.S.C. 
     1396d(u)(2)(B)) is amended by adding at the end the following 
     sentence: ``Such term excludes any child eligible for medical 
     assistance only by reason of section 
     1902(a)(10)(A)(ii)(XIX).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to medical assistance for items and services 
     furnished on or after January 1, 2007.

     SEC. 6063. DEMONSTRATION PROJECTS REGARDING HOME AND 
                   COMMUNITY-BASED ALTERNATIVES TO PSYCHIATRIC 
                   RESIDENTIAL TREATMENT FACILITIES FOR CHILDREN.

       (a) In General.--The Secretary is authorized to conduct, 
     during each of fiscal years 2007 through 2011, demonstration 
     projects (each in the section referred to as a 
     ``demonstration project'') in accordance with this section 
     under which up to 10 States (as defined for purposes of title 
     XIX of the Social Security Act) are awarded grants, on a 
     competitive basis, to test the effectiveness in improving or 
     maintaining a child's functional level and cost-effectiveness 
     of providing coverage of home and community-based 
     alternatives to psychiatric residential treatment for 
     children enrolled in the Medicaid program under title XIX of 
     such Act.
       (b) Application of Terms and Conditions.--
       (1) In general.--Subject to the provisions of this section, 
     for the purposes of the demonstration projects, and only with 
     respect to children enrolled under such demonstration 
     projects, a psychiatric residential treatment facility (as 
     defined in section 483.352 of title 42 of the Code of Federal 
     Regulations) shall be deemed to be a facility specified in 
     section 1915(c) of the Social Security Act (42 U.S.C. 
     1396n(c)), and to be included in each reference in such 
     section 1915(c) to hospitals, nursing facilities, and 
     intermediate care facilities for the mentally retarded.
       (2) State option to assure continuity of medicaid 
     coverage.--Upon the termination of a demonstration project 
     under this section, the State that conducted the project may 
     elect, only with respect to a child who is enrolled in such 
     project on the termination date, to continue to provide 
     medical assistance for coverage of home and community-based 
     alternatives to psychiatric residential treatment for the 
     child in accordance with section 1915(c) of the Social 
     Security Act (42 U.S.C. 1396n(c)), as modified through the 
     application of paragraph (1). Expenditures incurred for 
     providing such medical assistance shall be treated as a home 
     and community-based waiver program under section 1915(c) of 
     the Social Security Act (42 U.S.C. 1396n(c)) for purposes of 
     payment under section 1903 of such Act (42 U.S.C. 1396b).
       (c) Terms of Demonstration Projects.--
       (1) In general.--Except as otherwise provided in this 
     section, a demonstration project shall be subject to the same 
     terms and conditions as apply to a waiver under section 
     1915(c) of the Social Security Act (42 U.S.C. 1396n(c)), 
     including the waiver of certain requirements under the first 
     sentence of paragraph (3) of such section but not applying 
     the second sentence of such paragraph.
       (2) Budget neutrality.--In conducting the demonstration 
     projects under this section, the Secretary shall ensure that 
     the aggregate payments made by the Secretary under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.) do not 
     exceed the amount which the Secretary estimates would have 
     been paid under that title if the demonstration projects 
     under this section had not been implemented.
       (3) Evaluation.--The application for a demonstration 
     project shall include an assurance to provide for such 
     interim and final evaluations of the demonstration project by 
     independent third parties, and for such interim and final 
     reports to the Secretary, as the Secretary may require.
       (d) Payments to States; Limitations to Scope and Funding.--
       (1) In general.--Subject to paragraph (2), a demonstration 
     project approved by the Secretary under this section shall be 
     treated as a home and community-based waiver program under 
     section 1915(c) of the Social Security Act (42 U.S.C. 
     1396n(c)) for purposes of payment under section 1903 of such 
     Act (42 U.S.C. 1396b).
       (2) Limitation.--In no case may the amount of payments made 
     by the Secretary under this section for State demonstration 
     projects for a fiscal year exceed the amount available under 
     subsection (f)(2)(A) for such fiscal year.
       (e) Secretary's Evaluation and Report.--The Secretary shall 
     conduct an interim and final evaluation of State 
     demonstration projects under this section and shall report to 
     the President and Congress the conclusions of such 
     evaluations within 12 months of completing such evaluations.
       (f) Funding.--
       (1) In general.--For the purpose of carrying out this 
     section, there are appropriated, from amounts in the Treasury 
     not otherwise appropriated, for fiscal years 2007 through 
     2011, a total of $218,000,000, of which--
       (A) the amount specified in paragraph (2) shall be 
     available for each of fiscal years 2007 through 2011; and
       (B) a total of $1,000,000 shall be available to the 
     Secretary for the evaluations and report under subsection 
     (e).
       (2) Fiscal year limit.--
       (A) In general.--For purposes of paragraph (1), the amount 
     specified in this paragraph for a fiscal year is the amount 
     specified in subparagraph (B) for the fiscal year plus the 
     difference, if any, between the total amount available under 
     this paragraph for prior fiscal years and the total amount 
     previously expended under paragraph (1)(A) for such prior 
     fiscal years.
       (B) Fiscal year amounts.--The amount specified in this 
     subparagraph for--
       (i) fiscal year 2007 is $21,000,000;
       (ii) fiscal year 2008 is $37,000,000;
       (iii) fiscal year 2009 is $49,000,000;
       (iv) fiscal year 2010 is $53,000,000; and
       (v) fiscal year 2011 is $57,000,000.

     SEC. 6064. DEVELOPMENT AND SUPPORT OF FAMILY-TO-FAMILY HEALTH 
                   INFORMATION CENTERS.

       Section 501 of the Social Security Act (42 U.S.C. 701) is 
     amended by adding at the end the following new subsection:
       ``(c)(1)(A) For the purpose of enabling the Secretary 
     (through grants, contracts, or otherwise) to provide for 
     special projects of regional and national significance for 
     the development and support of family-to-family health 
     information centers described in paragraph (2), there is 
     appropriated to the Secretary, out of any money in the 
     Treasury not otherwise appropriated--
       ``(i) $3,000,000 for fiscal year 2007;
       ``(ii) $4,000,000 for fiscal year 2008; and
       ``(iii) $5,000,000 for fiscal year 2009.
       ``(B) Funds appropriated or authorized to be appropriated 
     under subparagraph (A) shall--
       ``(i) be in addition to amounts appropriated under 
     subsection (a) and retained under section 502(a)(1) for the 
     purpose of carrying out activities described in subsection 
     (a)(2); and
       ``(ii) remain available until expended.
       ``(2) The family-to-family health information centers 
     described in this paragraph are centers that--
       ``(A) assist families of children with disabilities or 
     special health care needs to make informed choices about 
     health care in order to promote good treatment decisions, 
     cost-effectiveness, and improved health outcomes for such 
     children;
       ``(B) provide information regarding the health care needs 
     of, and resources available for, such children;
       ``(C) identify successful health delivery models for such 
     children;
       ``(D) develop with representatives of health care 
     providers, managed care organizations, health care 
     purchasers, and appropriate State agencies, a model for 
     collaboration between families of such children and health 
     professionals;
       ``(E) provide training and guidance regarding caring for 
     such children;
       ``(F) conduct outreach activities to the families of such 
     children, health professionals, schools, and other 
     appropriate entities and individuals; and
       ``(G) are staffed--
       ``(i) by such families who have expertise in Federal and 
     State public and private health care systems; and
       ``(ii) by health professionals.
       ``(3) The Secretary shall develop family-to-family health 
     information centers described in paragraph (2) in accordance 
     with the following:
       ``(A) With respect to fiscal year 2007, such centers shall 
     be developed in not less than 25 States.
       ``(B) With respect to fiscal year 2008, such centers shall 
     be developed in not less than 40 States.
       ``(C) With respect to fiscal year 2009 and each fiscal year 
     thereafter, such centers shall be developed in all States.
       ``(4) The provisions of this title that are applicable to 
     the funds made available to the Secretary under section 
     502(a)(1) apply in the same manner to funds made available to 
     the Secretary under paragraph (1)(A).
       ``(5) For purposes of this subsection, the term `State' 
     means each of the 50 States and the District of Columbia.''.

     SEC. 6065. RESTORATION OF MEDICAID ELIGIBILITY FOR CERTAIN 
                   SSI BENEFICIARIES.

       (a) In General.--Section 1902(a)(10)(A)(i)(II) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(II)) is 
     amended--
       (1) by inserting ``(aa)'' after ``(II)'';

[[Page 30857]]

       (2) by striking ``) and'' and inserting ``and'';
       (3) by striking ``section or who are'' and inserting 
     ``section), (bb) who are''; and
       (4) by inserting before the comma at the end the following: 
     ``, or (cc) who are under 21 years of age and with respect to 
     whom supplemental security income benefits would be paid 
     under title XVI if subparagraphs (A) and (B) of section 
     1611(c)(7) were applied without regard to the phrase `the 
     first day of the month following'''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to medical assistance for items and services 
     furnished on or after the date that is 1 year after the date 
     of enactment of this Act.

    Subchapter B--Money Follows the Person Rebalancing Demonstration

     SEC. 6071. MONEY FOLLOWS THE PERSON REBALANCING 
                   DEMONSTRATION.

       (a) Program Purpose and Authority.--The Secretary is 
     authorized to award, on a competitive basis, grants to States 
     in accordance with this section for demonstration projects 
     (each in this section referred to as an ``MFP demonstration 
     project'') designed to achieve the following objectives with 
     respect to institutional and home and community-based long-
     term care services under State Medicaid programs:
       (1) Rebalancing.--Increase the use of home and community-
     based, rather than institutional, long-term care services.
       (2) Money follows the person.--Eliminate barriers or 
     mechanisms, whether in the State law, the State Medicaid 
     plan, the State budget, or otherwise, that prevent or 
     restrict the flexible use of Medicaid funds to enable 
     Medicaid-eligible individuals to receive support for 
     appropriate and necessary long-term services in the settings 
     of their choice.
       (3) Continuity of service.--Increase the ability of the 
     State Medicaid program to assure continued provision of home 
     and community-based long-term care services to eligible 
     individuals who choose to transition from an institutional to 
     a community setting.
       (4) Quality assurance and quality improvement.--Ensure that 
     procedures are in place (at least comparable to those 
     required under the qualified HCB program) to provide quality 
     assurance for eligible individuals receiving Medicaid home 
     and community-based long-term care services and to provide 
     for continuous quality improvement in such services.
       (b) Definitions.--For purposes of this section:
       (1) Home and community-based long-term care services.--The 
     term ``home and community-based long-term care services'' 
     means, with respect to a State Medicaid program, home and 
     community-based services (including home health and personal 
     care services) that are provided under the State's qualified 
     HCB program or that could be provided under such a program 
     but are otherwise provided under the Medicaid program.
       (2) Eligible individual.--The term ``eligible individual'' 
     means, with respect to an MFP demonstration project of a 
     State, an individual in the State--
       (A) who, immediately before beginning participation in the 
     MFP demonstration project--
       (i) resides (and has resided, for a period of not less than 
     6 months or for such longer minimum period, not to exceed 2 
     years, as may be specified by the State) in an inpatient 
     facility;
       (ii) is receiving Medicaid benefits for inpatient services 
     furnished by such inpatient facility; and
       (iii) with respect to whom a determination has been made 
     that, but for the provision of home and community-based long-
     term care services, the individual would continue to require 
     the level of care provided in an inpatient facility and, in 
     any case in which the State applies a more stringent level of 
     care standard as a result of implementing the State plan 
     option permitted under section 1915(i) of the Social Security 
     Act, the individual must continue to require at least the 
     level of care which had resulted in admission to the 
     institution; and
       (B) who resides in a qualified residence beginning on the 
     initial date of participation in the demonstration project.
       (3) Inpatient facility.--The term ``inpatient facility'' 
     means a hospital, nursing facility, or intermediate care 
     facility for the mentally retarded. Such term includes an 
     institution for mental diseases, but only, with respect to a 
     State, to the extent medical assistance is available under 
     the State Medicaid plan for services provided by such 
     institution.
       (4) Medicaid.--The term ``Medicaid'' means, with respect to 
     a State, the State program under title XIX of the Social 
     Security Act (including any waiver or demonstration under 
     such title or under section 1115 of such Act relating to such 
     title).
       (5) Qualified hcb program.--The term ``qualified HCB 
     program'' means a program providing home and community-based 
     long-term care services operating under Medicaid, whether or 
     not operating under waiver authority.
       (6) Qualified residence.--The term ``qualified residence'' 
     means, with respect to an eligible individual--
       (A) a home owned or leased by the individual or the 
     individual's family member;
       (B) an apartment with an individual lease, with lockable 
     access and egress, and which includes living, sleeping, 
     bathing, and cooking areas over which the individual or the 
     individual's family has domain and control; and
       (C) a residence, in a community-based residential setting, 
     in which no more than 4 unrelated individuals reside.
       (7) Qualified expenditures.--The term ``qualified 
     expenditures'' means expenditures by the State under its MFP 
     demonstration project for home and community-based long-term 
     care services for an eligible individual participating in the 
     MFP demonstration project, but only with respect to services 
     furnished during the 12-month period beginning on the date 
     the individual is discharged from an inpatient facility 
     referred to in paragraph (2)(A)(i).
       (8) Self-directed services.--The term ``self-directed'' 
     means, with respect to home and community-based long-term 
     care services for an eligible individual, such services for 
     the individual which are planned and purchased under the 
     direction and control of such individual or the individual's 
     authorized representative (as defined by the Secretary), 
     including the amount, duration, scope, provider, and location 
     of such services, under the State Medicaid program consistent 
     with the following requirements:
       (A) Assessment.--There is an assessment of the needs, 
     capabilities, and preferences of the individual with respect 
     to such services.
       (B) Service plan.--Based on such assessment, there is 
     developed jointly with such individual or the individual's 
     authorized representative a plan for such services for such 
     individual that is approved by the State and that--
       (i) specifies those services, if any, which the individual 
     or the individual's authorized representative would be 
     responsible for directing;
       (ii) identifies the methods by which the individual or the 
     individual's authorized representative or an agency 
     designated by an individual or representative will select, 
     manage, and dismiss providers of such services;
       (iii) specifies the role of family members and others whose 
     participation is sought by the individual or the individual's 
     authorized representative with respect to such services;
       (iv) is developed through a person-centered process that--

       (I) is directed by the individual or the individual's 
     authorized representative;
       (II) builds upon the individual's capacity to engage in 
     activities that promote community life and that respects the 
     individual's preferences, choices, and abilities; and
       (III) involves families, friends, and professionals as 
     desired or required by the individual or the individual's 
     authorized representative;

       (v) includes appropriate risk management techniques that 
     recognize the roles and sharing of responsibilities in 
     obtaining services in a self-directed manner and assure the 
     appropriateness of such plan based upon the resources and 
     capabilities of the individual or the individual's authorized 
     representative; and
       (vi) may include an individualized budget which identifies 
     the dollar value of the services and supports under the 
     control and direction of the individual or the individual's 
     authorized representative.
       (C) Budget Process.--With respect to individualized budgets 
     described in subparagraph (B)(vi), the State application 
     under subsection (c)--
       (i) describes the method for calculating the dollar values 
     in such budgets based on reliable costs and service 
     utilization;
       (ii) defines a process for making adjustments in such 
     dollar values to reflect changes in individual assessments 
     and service plans; and
       (iii) provides a procedure to evaluate expenditures under 
     such budgets.
       (9) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act.
       (c) State Application.--A State seeking approval of an MFP 
     demonstration project shall submit to the Secretary, at such 
     time and in such format as the Secretary requires, an 
     application meeting the following requirements and containing 
     such additional information, provisions, and assurances, as 
     the Secretary may require:
       (1) Assurance of a public development process.--The 
     application contains an assurance that the State has engaged, 
     and will continue to engage, in a public process for the 
     design, development, and evaluation of the MFP demonstration 
     project that allows for input from eligible individuals, the 
     families of such individuals, authorized representatives of 
     such individuals, providers, and other interested parties.
       (2) Operation in connection with qualified hcb program to 
     assure continuity of services.--The State will conduct the 
     MFP demonstration project for eligible individuals in 
     conjunction with the operation of a qualified HCB program 
     that is in operation (or approved) in the State for such 
     individuals in a manner that assures continuity of Medicaid 
     coverage for such individuals so long as such individuals 
     continue to be eligible for medical assistance.

[[Page 30858]]

       (3) Demonstration project period.--The application shall 
     specify the period of the MFP demonstration project, which 
     shall include at least 2 consecutive fiscal years in the 5-
     fiscal-year period beginning with fiscal year 2007.
       (4) Service area.--The application shall specify the 
     service area or areas of the MFP demonstration project, which 
     may be a statewide area or 1 or more geographic areas of the 
     State.
       (5) Targeted groups and numbers of individuals served.--The 
     application shall specify--
       (A) the target groups of eligible individuals to be 
     assisted to transition from an inpatient facility to a 
     qualified residence during each fiscal year of the MFP 
     demonstration project;
       (B) the projected numbers of eligible individuals in each 
     targeted group of eligible individuals to be so assisted 
     during each such year; and
       (C) the estimated total annual qualified expenditures for 
     each fiscal year of the MFP demonstration project.
       (6) Individual choice, continuity of care.--The application 
     shall contain assurances that--
       (A) each eligible individual or the individual's authorized 
     representative will be provided the opportunity to make an 
     informed choice regarding whether to participate in the MFP 
     demonstration project;
       (B) each eligible individual or the individual's authorized 
     representative will choose the qualified residence in which 
     the individual will reside and the setting in which the 
     individual will receive home and community-based long-term 
     care services;
       (C) the State will continue to make available, so long as 
     the State operates its qualified HCB program consistent with 
     applicable requirements, home and community-based long-term 
     care services to each individual who completes participation 
     in the MFP demonstration project for as long as the 
     individual remains eligible for medical assistance for such 
     services under such qualified HCB program (including meeting 
     a requirement relating to requiring a level of care provided 
     in an inpatient facility and continuing to require such 
     services, and, if the State applies a more stringent level of 
     care standard as a result of implementing the State plan 
     option permitted under section 1915(i) of the Social Security 
     Act, meeting the requirement for at least the level of care 
     which had resulted in the individual's admission to the 
     institution).
       (7) Rebalancing.--The application shall--
       (A) provide such information as the Secretary may require 
     concerning the dollar amounts of State Medicaid expenditures 
     for the fiscal year, immediately preceding the first fiscal 
     year of the State's MFP demonstration project, for long-term 
     care services and the percentage of such expenditures that 
     were for institutional long-term care services or were for 
     home and community-based long-term care services;
       (B)(i) specify the methods to be used by the State to 
     increase, for each fiscal year during the MFP demonstration 
     project, the dollar amount of such total expenditures for 
     home and community-based long-term care services and the 
     percentage of such total expenditures for long-term care 
     services that are for home and community-based long-term care 
     services; and
       (ii) describe the extent to which the MFP demonstration 
     project will contribute to accomplishment of objectives 
     described in subsection (a).
       (8) Money follows the person.--The application shall 
     describe the methods to be used by the State to eliminate any 
     legal, budgetary, or other barriers to flexibility in the 
     availability of Medicaid funds to pay for long-term care 
     services for eligible individuals participating in the 
     project in the appropriate settings of their choice, 
     including costs to transition from an institutional setting 
     to a qualified residence.
       (9) Maintenance of effort and cost-effectiveness.--The 
     application shall contain or be accompanied by such 
     information and assurances as may be required to satisfy the 
     Secretary that--
       (A) total expenditures under the State Medicaid program for 
     home and community-based long-term care services will not be 
     less for any fiscal year during the MFP demonstration project 
     than for the greater of such expenditures for--
       (i) fiscal year 2005; or
       (ii) any succeeding fiscal year before the first year of 
     the MFP demonstration project; and
       (B) in the case of a qualified HCB program operating under 
     a waiver under subsection (c) or (d) of section 1915 of the 
     Social Security Act (42 U.S.C. 1396n), but for the amount 
     awarded under a grant under this section, the State program 
     would continue to meet the cost-effectiveness requirements of 
     subsection (c)(2)(D) of such section or comparable 
     requirements under subsection (d)(5) of such section, 
     respectively.
       (10) Waiver requests.--The application shall contain or be 
     accompanied by requests for any modification or adjustment of 
     waivers of Medicaid requirements described in subsection 
     (d)(3), including adjustments to the maximum numbers of 
     individuals included and package of benefits, including one-
     time transitional services, provided.
       (11) Quality assurance and quality improvement.--The 
     application shall include--
       (A) a plan satisfactory to the Secretary for quality 
     assurance and quality improvement for home and community-
     based long-term care services under the State Medicaid 
     program, including a plan to assure the health and welfare of 
     individuals participating in the MFP demonstration project; 
     and
       (B) an assurance that the State will cooperate in carrying 
     out activities under subsection (f) to develop and implement 
     continuous quality assurance and quality improvement systems 
     for home and community-based long-term care services.
       (12) Optional program for self-directed services.--If the 
     State elects to provide for any home and community-based 
     long-term care services as self-directed services (as defined 
     in subsection (b)(8)) under the MFP demonstration project, 
     the application shall provide the following:
       (A) Meeting requirements.--A description of how the project 
     will meet the applicable requirements of such subsection for 
     the provision of self-directed services.
       (B) Voluntary election.--A description of how eligible 
     individuals will be provided with the opportunity to make an 
     informed election to receive self-directed services under the 
     project and after the end of the project.
       (C) State support in service plan development.--
     Satisfactory assurances that the State will provide support 
     to eligible individuals who self-direct in developing and 
     implementing their service plans.
       (D) Oversight of receipt of services.--Satisfactory 
     assurances that the State will provide oversight of eligible 
     individual's receipt of such self-directed services, 
     including steps to assure the quality of services provided 
     and that the provision of such services are consistent with 
     the service plan under such subsection.

     Nothing in this section shall be construed as requiring a 
     State to make an election under the project to provide for 
     home and community-based long-term care services as self-
     directed services, or as requiring an individual to elect to 
     receive self-directed services under the project.
       (13) Reports and evaluation.--The application shall provide 
     that--
       (A) the State will furnish to the Secretary such reports 
     concerning the MFP demonstration project, on such timetable, 
     in such uniform format, and containing such information as 
     the Secretary may require, as will allow for reliable 
     comparisons of MFP demonstration projects across States; and
       (B) the State will participate in and cooperate with the 
     evaluation of the MFP demonstration project.
       (d) Secretary's Award of Competitive Grants.--
       (1) In general.--The Secretary shall award grants under 
     this section on a competitive basis to States selected from 
     among those with applications meeting the requirements of 
     subsection (c), in accordance with the provisions of this 
     subsection.
       (2) Selection and modification of state applications.--In 
     selecting State applications for the awarding of such a 
     grant, the Secretary--
       (A) shall take into consideration the manner in which, and 
     extent to which, the State proposes to achieve the objectives 
     specified in subsection (a);
       (B) shall seek to achieve an appropriate national balance 
     in the numbers of eligible individuals, within different 
     target groups of eligible individuals, who are assisted to 
     transition to qualified residences under MFP demonstration 
     projects, and in the geographic distribution of States 
     operating MFP demonstration projects;
       (C) shall give preference to State applications proposing--
       (i) to provide transition assistance to eligible 
     individuals within multiple target groups; and
       (ii) to provide eligible individuals with the opportunity 
     to receive home and community-based long-term care services 
     as self-directed services, as defined in subsection (b)(8); 
     and
       (D) shall take such objectives into consideration in 
     setting the annual amounts of State grant awards under this 
     section.
       (3) Waiver authority.--The Secretary is authorized to waive 
     the following provisions of title XIX of the Social Security 
     Act, to the extent necessary to enable a State initiative to 
     meet the requirements and accomplish the purposes of this 
     section:
       (A) Statewideness.--Section 1902(a)(1), in order to permit 
     implementation of a State initiative in a selected area or 
     areas of the State.
       (B) Comparability.--Section 1902(a)(10)(B), in order to 
     permit a State initiative to assist a selected category or 
     categories of individuals described in subsection (b)(2)(A).
       (C) Income and resources eligibility.--Section 
     1902(a)(10)(C)(i)(III), in order to permit a State to apply 
     institutional eligibility rules to individuals transitioning 
     to community-based care.
       (D) Provider agreements.--Section 1902(a)(27), in order to 
     permit a State to implement self-directed services in a cost-
     effective manner.

[[Page 30859]]

       (4) Conditional approval of outyear grant.--In awarding 
     grants under this section, the Secretary shall condition the 
     grant for the second and any subsequent fiscal years of the 
     grant period on the following:
       (A) Numerical benchmarks.--The State must demonstrate to 
     the satisfaction of the Secretary that it is meeting 
     numerical benchmarks specified in the grant agreement for--
       (i) increasing State Medicaid support for home and 
     community-based long-term care services under subsection 
     (c)(5); and
       (ii) numbers of eligible individuals assisted to transition 
     to qualified residences.
       (B) Quality of care.--The State must demonstrate to the 
     satisfaction of the Secretary that it is meeting the 
     requirements under subsection (c)(11) to assure the health 
     and welfare of MFP demonstration project participants.
       (e) Payments to States; Carryover of Unused Grant 
     Amounts.--
       (1) Payments.--For each calendar quarter in a fiscal year 
     during the period a State is awarded a grant under subsection 
     (d), the Secretary shall pay to the State from its grant 
     award for such fiscal year an amount equal to the lesser of--
       (A) the MFP-enhanced FMAP (as defined in paragraph (5)) of 
     the amount of qualified expenditures made during such 
     quarter; or
       (B) the total amount remaining in such grant award for such 
     fiscal year (taking into account the application of paragraph 
     (2)).
       (2) Carryover of unused amounts.--Any portion of a State 
     grant award for a fiscal year under this section remaining at 
     the end of such fiscal year shall remain available to the 
     State for the next 4 fiscal years, subject to paragraph (3).
       (3) Reawarding of certain unused amounts.--In the case of a 
     State that the Secretary determines pursuant to subsection 
     (d)(4) has failed to meet the conditions for continuation of 
     a MFP demonstration project under this section in a 
     succeeding year or years, the Secretary shall rescind the 
     grant awards for such succeeding year or years, together with 
     any unspent portion of an award for prior years, and shall 
     add such amounts to the appropriation for the immediately 
     succeeding fiscal year for grants under this section.
       (4) Preventing duplication of payment.--The payment under a 
     MFP demonstration project with respect to qualified 
     expenditures shall be in lieu of any payment with respect to 
     such expenditures that could otherwise be paid under 
     Medicaid, including under section 1903(a) of the Social 
     Security Act. Nothing in the previous sentence shall be 
     construed as preventing the payment under Medicaid for such 
     expenditures in a grant year after amounts available to pay 
     for such expenditures under the MFP demonstration project 
     have been exhausted.
       (5) MFP-enhanced fmap.--For purposes of paragraph (1)(A), 
     the ``MFP-enhanced FMAP'', for a State for a fiscal year, is 
     equal to the Federal medical assistance percentage (as 
     defined in the first sentence of section 1905(b)) for the 
     State increased by a number of percentage points equal to 50 
     percent of the number of percentage points by which (A) such 
     Federal medical assistance percentage for the State, is less 
     than (B) 100 percent; but in no case shall the MFP-enhanced 
     FMAP for a State exceed 90 percent.
       (f) Quality Assurance and Improvement; Technical 
     Assistance; Oversight.--
       (1) In general.--The Secretary, either directly or by grant 
     or contract, shall provide for technical assistance to, and 
     oversight of, States for purposes of upgrading quality 
     assurance and quality improvement systems under Medicaid home 
     and community-based waivers, including--
       (A) dissemination of information on promising practices;
       (B) guidance on system design elements addressing the 
     unique needs of participating beneficiaries;
       (C) ongoing consultation on quality, including assistance 
     in developing necessary tools, resources, and monitoring 
     systems; and
       (D) guidance on remedying programmatic and systemic 
     problems.
       (2) Funding.--From the amounts appropriated under 
     subsection (h)(1) for the portion of fiscal year 2007 that 
     begins on January 1, 2007, and ends on September 30, 2007, 
     and for fiscal year 2008, not more than $2,400,000 shall be 
     available to the Secretary to carry out this subsection 
     during the period that begins on January 1, 2007, and ends on 
     September 30, 2011.
       (g) Research and Evaluation.--
       (1) In general.--The Secretary, directly or through grant 
     or contract, shall provide for research on, and a national 
     evaluation of, the program under this section, including 
     assistance to the Secretary in preparing the final report 
     required under paragraph (2). The evaluation shall include an 
     analysis of projected and actual savings related to the 
     transition of individuals to qualified residences in each 
     State conducting an MFP demonstration project.
       (2) Final report.--The Secretary shall make a final report 
     to the President and Congress, not later than September 30, 
     2011, reflecting the evaluation described in paragraph (1) 
     and providing findings and conclusions on the conduct and 
     effectiveness of MFP demonstration projects.
       (3) Funding.--From the amounts appropriated under 
     subsection (h)(1) for each of fiscal years 2008 through 2011, 
     not more than $1,100,000 per year shall be available to the 
     Secretary to carry out this subsection.
       (h) Appropriations.--
       (1) In general.--There are appropriated, from any funds in 
     the Treasury not otherwise appropriated, for grants to carry 
     out this section--
       (A) $250,000,000 for the portion of fiscal year 2007 
     beginning on January 1, 2007, and ending on September 30, 
     2007;
       (B) $300,000,000 for fiscal year 2008;
       (C) $350,000,000 for fiscal year 2009;
       (D) $400,000,000 for fiscal year 2010; and
       (E) $450,000,000 for fiscal year 2011.
       (2) Availability.--Amounts made available under paragraph 
     (1) for a fiscal year shall remain available for the awarding 
     of grants to States by not later than September 30, 2011.

                      Subchapter C--Miscellaneous

     SEC. 6081. MEDICAID TRANSFORMATION GRANTS.

       (a) In General.--Section 1903 of the Social Security Act 
     (42 U.S.C. 1396b), as amended by sections 6037(a)(2) and 
     6043(b), is amended by adding at the end the following new 
     subsection:
       ``(z) Medicaid Transformation Payments.--
       ``(1) In general.--In addition to the payments provided 
     under subsection (a), subject to paragraph (4), the Secretary 
     shall provide for payments to States for the adoption of 
     innovative methods to improve the effectiveness and 
     efficiency in providing medical assistance under this title.
       ``(2) Permissible uses of funds.--The following are 
     examples of innovative methods for which funds provided under 
     this subsection may be used:
       ``(A) Methods for reducing patient error rates through the 
     implementation and use of electronic health records, 
     electronic clinical decision support tools, or e-prescribing 
     programs.
       ``(B) Methods for improving rates of collection from 
     estates of amounts owed under this title.
       ``(C) Methods for reducing waste, fraud, and abuse under 
     the program under this title, such as reducing improper 
     payment rates as measured by annual payment error rate 
     measurement (PERM) project rates.
       ``(D) Implementation of a medication risk management 
     program as part of a drug use review program under section 
     1927(g).
       ``(E) Methods in reducing, in clinically appropriate ways, 
     expenditures under this title for covered outpatient drugs, 
     particularly in the categories of greatest drug utilization, 
     by increasing the utilization of generic drugs through the 
     use of education programs and other incentives to promote 
     greater use of generic drugs.
       ``(F) Methods for improving access to primary and specialty 
     physician care for the uninsured using integrated university-
     based hospital and clinic systems.
       ``(3) Application; terms and conditions.--
       ``(A) In general.--No payments shall be made to a State 
     under this subsection unless the State applies to the 
     Secretary for such payments in a form, manner, and time 
     specified by the Secretary.
       ``(B) Terms and conditions.--Such payments are made under 
     such terms and conditions consistent with this subsection as 
     the Secretary prescribes.
       ``(C) Annual report.--Payment to a State under this 
     subsection is conditioned on the State submitting to the 
     Secretary an annual report on the programs supported by such 
     payment. Such report shall include information on--
       ``(i) the specific uses of such payment;
       ``(ii) an assessment of quality improvements and clinical 
     outcomes under such programs; and
       ``(iii) estimates of cost savings resulting from such 
     programs.
       ``(4) Funding.--
       ``(A) Limitation on funds.--The total amount of payments 
     under this subsection shall be equal to, and shall not 
     exceed--
       ``(i) $75,000,000 for fiscal year 2007; and
       ``(ii) $75,000,000 for fiscal year 2008.
     This subsection constitutes budget authority in advance of 
     appropriations Acts and represents the obligation of the 
     Secretary to provide for the payment of amounts provided 
     under this subsection.
       ``(B) Allocation of funds.--The Secretary shall specify a 
     method for allocating the funds made available under this 
     subsection among States. Such method shall provide preference 
     for States that design programs that target health providers 
     that treat significant numbers of Medicaid beneficiaries. 
     Such method shall provide that not less than 25 percent of 
     such funds shall be allocated among States the population of 
     which (as determined according to data collected by the 
     United States Census Bureau) as of July 1, 2004, was more 
     than 105 percent of the population of the respective State 
     (as so determined) as of April 1, 2000.
       ``(C) Form and manner of payment.--Payment to a State under 
     this subsection shall be made in the same manner as other 
     payments under section 1903(a). There is no requirement for 
     State matching funds to receive payments under this 
     subsection.
       ``(5) Medication risk management program.--

[[Page 30860]]

       ``(A) In general.--For purposes of this subsection, the 
     term `medication risk management program' means a program for 
     targeted beneficiaries that ensures that covered outpatient 
     drugs are appropriately used to optimize therapeutic outcomes 
     through improved medication use and to reduce the risk of 
     adverse events.
       ``(B) Elements.--Such program may include the following 
     elements:
       ``(i) The use of established principles and standards for 
     drug utilization review and best practices to analyze 
     prescription drug claims of targeted beneficiaries and 
     identify outlier physicians.
       ``(ii) On an ongoing basis provide outlier physicians--

       ``(I) a comprehensive pharmacy claims history for each 
     targeted beneficiary under their care;
       ``(II) information regarding the frequency and cost of 
     relapses and hospitalizations of targeted beneficiaries under 
     the physician's care; and
       ``(III) applicable best practice guidelines and empirical 
     references.

       ``(iii) Monitor outlier physician's prescribing, such as 
     failure to refill, dosage strengths, and provide incentives 
     and information to encourage the adoption of best clinical 
     practices.
       ``(C) Targeted beneficiaries.--For purposes of this 
     paragraph, the term `targeted beneficiaries' means Medicaid 
     eligible beneficiaries who are identified as having high 
     prescription drug costs and medical costs, such as 
     individuals with behavioral disorders or multiple chronic 
     diseases who are taking multiple medications.''.

     SEC. 6082. HEALTH OPPORTUNITY ACCOUNTS.

       Title XIX of the Social Security Act, as amended by 
     sections 6035 and 6044, is amended--
       (1) by redesignating section 1938 as section 1939; and
       (2) by inserting after section 1937 the following new 
     section:


                     ``health opportunity accounts

       ``Sec. 1938. (a) Authority.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, the Secretary shall establish a demonstration 
     program under which States may provide under their State 
     plans under this title (including such a plan operating under 
     a statewide waiver under section 1115) in accordance with 
     this section for the provision of alternative benefits 
     consistent with subsection (c) for eligible population groups 
     in one or more geographic areas of the State specified by the 
     State. An amendment under the previous sentence is referred 
     to in this section as a `State demonstration program'.
       ``(2) Initial demonstration.--
       ``(A) In general.--The demonstration program under this 
     section shall begin on January 1, 2007. During the first 5 
     years of such program, the Secretary shall not approve more 
     than 10 States to conduct demonstration programs under this 
     section, with each State demonstration program covering 1 or 
     more geographic areas specified by the State. After such 5-
     year period--
       ``(i) unless the Secretary finds, taking into account cost-
     effectiveness, quality of care, and other criteria that the 
     Secretary specifies, that a State demonstration program 
     previously implemented has been unsuccessful, such a 
     demonstration program may be extended or made permanent in 
     the State; and
       ``(ii) unless the Secretary finds, taking into account 
     cost-effectiveness, quality of care, and other criteria that 
     the Secretary specifies, that all State demonstration 
     programs previously implemented were unsuccessful, other 
     States may implement State demonstration programs.
       ``(B) GAO report.--
       ``(i) In general.--Not later than 3 months after the end of 
     the 5-year period described in subparagraph (A), the 
     Comptroller General of the United States shall submit a 
     report to Congress evaluating the demonstration programs 
     conducted under this section during such period.
       ``(ii) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Comptroller General of the United States, $550,000 for the 
     period of fiscal years 2007 through 2010 to carry out clause 
     (i).
       ``(3) Approval.--The Secretary shall not approve a State 
     demonstration program under paragraph (1) unless the program 
     includes the following:
       ``(A) Creating patient awareness of the high cost of 
     medical care.
       ``(B) Providing incentives to patients to seek preventive 
     care services.
       ``(C) Reducing inappropriate use of health care services.
       ``(D) Enabling patients to take responsibility for health 
     outcomes.
       ``(E) Providing enrollment counselors and ongoing education 
     activities.
       ``(F) Providing transactions involving health opportunity 
     accounts to be conducted electronically and without cash.
       ``(G) Providing access to negotiated provider payment rates 
     consistent with this section.

     Nothing in this section shall be construed as preventing a 
     State demonstration program from providing incentives for 
     patients obtaining appropriate preventive care (as defined 
     for purposes of section 223(c)(2)(C) of the Internal Revenue 
     Code of 1986), such as additional account contributions for 
     an individual demonstrating healthy prevention practices.
       ``(4) No requirement for statewideness.--Nothing in this 
     section or any other provision of law shall be construed to 
     require that a State must provide for the implementation of a 
     State demonstration program on a Statewide basis.
       ``(b) Eligible Population Groups.--
       ``(1) In general.--A State demonstration program under this 
     section shall specify the eligible population groups 
     consistent with paragraphs (2) and (3).
       ``(2) Eligibility limitations during initial demonstration 
     period.--During the initial 5 years of the demonstration 
     program under this section, a State demonstration program 
     shall not apply to any of the following individuals:
       ``(A) Individuals who are 65 years of age or older.
       ``(B) Individuals who are disabled, regardless of whether 
     or not their eligibility for medical assistance under this 
     title is based on such disability.
       ``(C) Individuals who are eligible for medical assistance 
     under this title only because they are (or were within the 
     previous 60 days) pregnant.
       ``(D) Individuals who have been eligible for medical 
     assistance for a continuous period of less than 3 months.
       ``(3) Additional limitations.--A State demonstration 
     program shall not apply to any individual within a category 
     of individuals described in section 1937(a)(2)(B).
       ``(4) Limitations.--
       ``(A) State option.--This subsection shall not be construed 
     as preventing a State from further limiting eligibility.
       ``(B) On enrollees in medicaid managed care 
     organizations.--Insofar as the State provides for eligibility 
     of individuals who are enrolled in medicaid managed care 
     organizations, such individuals may participate in the State 
     demonstration program only if the State provides assurances 
     satisfactory to the Secretary that the following conditions 
     are met with respect to any such organization:
       ``(i) In no case may the number of such individuals 
     enrolled in the organization who participate in the program 
     exceed 5 percent of the total number of individuals enrolled 
     in such organization.
       ``(ii) The proportion of enrollees in the organization who 
     so participate is not significantly disproportionate to the 
     proportion of such enrollees in other such organizations who 
     participate.
       ``(iii) The State has provided for an appropriate 
     adjustment in the per capita payments to the organization to 
     account for such participation, taking into account 
     differences in the likely use of health services between 
     enrollees who so participate and enrollees who do not so 
     participate.
       ``(5) Voluntary participation.--An eligible individual 
     shall be enrolled in a State demonstration program only if 
     the individual voluntarily enrolls. Except in such hardship 
     cases as the Secretary shall specify, such an enrollment 
     shall be effective for a period of 12 months, but may be 
     extended for additional periods of 12 months each with the 
     consent of the individual.
       ``(6) 1-year moratorium for reenrollment.--An eligible 
     individual who, for any reason, is disenrolled from a State 
     demonstration program conducted under this section shall not 
     be permitted to reenroll in such program before the end of 
     the 1-year period that begins on the effective date of such 
     disenrollment.
       ``(c) Alternative Benefits.--
       ``(1) In general.--The alternative benefits provided under 
     this section shall consist, consistent with this subsection, 
     of at least--
       ``(A) coverage for medical expenses in a year for items and 
     services for which benefits are otherwise provided under this 
     title after an annual deductible described in paragraph (2) 
     has been met; and
       ``(B) contribution into a health opportunity account.

     Nothing in subparagraph (A) shall be construed as preventing 
     a State from providing for coverage of preventive care 
     (referred to in subsection (a)(3)) within the alternative 
     benefits without regard to the annual deductible.
       ``(2) Annual deductible.--The amount of the annual 
     deductible described in paragraph (1)(A) shall be at least 
     100 percent, but no more than 110 percent, of the annualized 
     amount of contributions to the health opportunity account 
     under subsection (d)(2)(A)(i), determined without regard to 
     any limitation described in subsection (d)(2)(C)(i)(II).
       ``(3) Access to negotiated provider payment rates.--
       ``(A) Fee-for-service enrollees.--In the case of an 
     individual who is participating in a State demonstration 
     program and who is not enrolled with a medicaid managed care 
     organization, the State shall provide that the individual may 
     obtain demonstration program medicaid services from--
       ``(i) any participating provider under this title at the 
     same payment rates that would

[[Page 30861]]

     be applicable to such services if the deductible described in 
     paragraph (1)(A) was not applicable; or
       ``(ii) any other provider at payment rates that do not 
     exceed 125 percent of the payment rate that would be 
     applicable to such services furnished by a participating 
     provider under this title if the deductible described in 
     paragraph (1)(A) was not applicable.
       ``(B) Treatment under medicaid managed care plans.--In the 
     case of an individual who is participating in a State 
     demonstration program and is enrolled with a medicaid managed 
     care organization, the State shall enter into an arrangement 
     with the organization under which the individual may obtain 
     demonstration program medicaid services from any provider 
     described in clause (ii) of subparagraph (A) at payment rates 
     that do not exceed the payment rates that may be imposed 
     under that clause.
       ``(C) Computation.--The payment rates described in 
     subparagraphs (A) and (B) shall be computed without regard to 
     any cost sharing that would be otherwise applicable under 
     sections 1916 and 1916A.
       ``(D) Definitions.--For purposes of this paragraph:
       ``(i) The term `demonstration program medicaid services' 
     means, with respect to an individual participating in a State 
     demonstration program, services for which the individual 
     would be provided medical assistance under this title but for 
     the application of the deductible described in paragraph 
     (1)(A).
       ``(ii) The term `participating provider' means--

       ``(I) with respect to an individual described in 
     subparagraph (A), a health care provider that has entered 
     into a participation agreement with the State for the 
     provision of services to individuals entitled to benefits 
     under the State plan; or
       ``(II) with respect to an individual described in 
     subparagraph (B) who is enrolled in a medicaid managed care 
     organization, a health care provider that has entered into an 
     arrangement for the provision of services to enrollees of the 
     organization under this title.

       ``(4) No effect on subsequent benefits.--Except as provided 
     under paragraphs (1) and (2), alternative benefits for an 
     eligible individual shall consist of the benefits otherwise 
     provided to the individual, including cost sharing relating 
     to such benefits.
       ``(5) Overriding cost sharing and comparability 
     requirements for alternative benefits.--The provisions of 
     this title relating to cost sharing for benefits (including 
     sections 1916 and 1916A) shall not apply with respect to 
     benefits to which the annual deductible under paragraph 
     (1)(A) applies. The provisions of section 1902(a)(10)(B) 
     (relating to comparability) shall not apply with respect to 
     the provision of alternative benefits (as described in this 
     subsection).
       ``(6) Treatment as medical assistance.--Subject to 
     subparagraphs (D) and (E) of subsection (d)(2), payments for 
     alternative benefits under this section (including 
     contributions into a health opportunity account) shall be 
     treated as medical assistance for purposes of section 
     1903(a).
       ``(7) Use of tiered deductible and cost sharing.--
       ``(A) In general.--A State--
       ``(i) may vary the amount of the annual deductible applied 
     under paragraph (1)(A) based on the income of the family 
     involved so long as it does not favor families with higher 
     income over those with lower income; and
       ``(ii) may vary the amount of the maximum out-of-pocket 
     cost sharing (as defined in subparagraph (B)) based on the 
     income of the family involved so long as it does not favor 
     families with higher income over those with lower income.
       ``(B) Maximum out-of-pocket cost sharing.--For purposes of 
     subparagraph(A)(ii), the term `maximum out-of-pocket cost 
     sharing' means, for an individual or family, the amount by 
     which the annual deductible level applied under paragraph 
     (1)(A) to the individual or family exceeds the balance in the 
     health opportunity account for the individual or family.
       ``(8) Contributions by employers.--Nothing in this section 
     shall be construed as preventing an employer from providing 
     health benefits coverage consisting of the coverage described 
     in paragraph (1)(A) to individuals who are provided 
     alternative benefits under this section.
       ``(d) Health Opportunity Account.--
       ``(1) In general.--For purposes of this section, the term 
     `health opportunity account' means an account that meets the 
     requirements of this subsection.
       ``(2) Contributions.--
       ``(A) In general.--No contribution may be made into a 
     health opportunity account except--
       ``(i) contributions by the State under this title; and
       ``(ii) contributions by other persons and entities, such as 
     charitable organizations, as permitted under section 1903(w).
       ``(B) State contribution.--A State shall specify the 
     contribution amount that shall be deposited under 
     subparagraph (A)(i) into a health opportunity account.
       ``(C) Limitation on annual state contribution provided and 
     permitting imposition of maximum account balance.--
       ``(i) In general.--A State--

       ``(I) may impose limitations on the maximum contributions 
     that may be deposited under subparagraph (A)(i) into a health 
     opportunity account in a year;
       ``(II) may limit contributions into such an account once 
     the balance in the account reaches a level specified by the 
     State; and
       ``(III) subject to clauses (ii) and (iii) and subparagraph 
     (D)(i), may not provide contributions described in 
     subparagraph (A)(i) to a health opportunity account on behalf 
     of an individual or family to the extent the amount of such 
     contributions (including both State and Federal shares) 
     exceeds, on an annual basis, $2,500 for each individual (or 
     family member) who is an adult and $1,000 for each individual 
     (or family member) who is a child.

       ``(ii) Indexing of dollar limitations.--For each year after 
     2006, the dollar amounts specified in clause (i)(III) shall 
     be annually increased by the Secretary by a percentage that 
     reflects the annual percentage increase in the medical care 
     component of the consumer price index for all urban 
     consumers.
       ``(iii) Budget neutral adjustment.--A State may provide for 
     dollar limitations in excess of those specified in clause 
     (i)(III) (as increased under clause (ii)) for specified 
     individuals if the State provides assurances satisfactory to 
     the Secretary that contributions otherwise made to other 
     individuals will be reduced in a manner so as to provide for 
     aggregate contributions that do not exceed the aggregate 
     contributions that would otherwise be permitted under this 
     subparagraph.
       ``(D) Limitations on federal matching.--
       ``(i) State contribution.--A State may contribute under 
     subparagraph (A)(i) amounts to a health opportunity account 
     in excess of the limitations provided under subparagraph 
     (C)(i)(III), but no Federal financial participation shall be 
     provided under section 1903(a) with respect to contributions 
     in excess of such limitations.
       ``(ii) No ffp for private contributions.--No Federal 
     financial participation shall be provided under section 
     1903(a) with respect to any contributions described in 
     subparagraph (A)(ii) to a health opportunity account.
       ``(E) Application of different matching rates.--The 
     Secretary shall provide a method under which, for 
     expenditures made from a health opportunity account for 
     medical care for which the Federal matching rate under 
     section 1903(a) exceeds the Federal medical assistance 
     percentage, a State may obtain payment under such section at 
     such higher matching rate for such expenditures.
       ``(3) Use.--
       ``(A) General uses.--
       ``(i) In general.--Subject to the succeeding provisions of 
     this paragraph, amounts in a health opportunity account may 
     be used for payment of such health care expenditures as the 
     State specifies.
       ``(ii) General limitation.--Subject to subparagraph 
     (B)(ii), in no case shall such account be used for payment 
     for health care expenditures that are not payment of medical 
     care (as defined by section 213(d) of the Internal Revenue 
     Code of 1986).
       ``(iii) State restrictions.--In applying clause (i), a 
     State may restrict payment for--

       ``(I) providers of items and services to providers that are 
     licensed or otherwise authorized under State law to provide 
     the item or service and may deny payment for such a provider 
     on the basis that the provider has been found, whether with 
     respect to this title or any other health benefit program, to 
     have failed to meet quality standards or to have committed 1 
     or more acts of fraud or abuse; and
       ``(II) items and services insofar as the State finds they 
     are not medically appropriate or necessary.

       ``(iv) Electronic withdrawals.--The State demonstration 
     program shall provide for a method whereby withdrawals may be 
     made from the account for such purposes using an electronic 
     system and shall not permit withdrawals from the account in 
     cash.
       ``(B) Maintenance of health opportunity account after 
     becoming ineligible for public benefit.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, if an account holder of a health opportunity account 
     becomes ineligible for benefits under this title because of 
     an increase in income or assets--

       ``(I) no additional contribution shall be made into the 
     account under paragraph (2)(A)(i);
       ``(II) subject to clause (iii), the balance in the account 
     shall be reduced by 25 percent; and
       ``(III) subject to the succeeding provisions of this 
     subparagraph, the account shall remain available to the 
     account holder for 3 years after the date on which the 
     individual becomes ineligible for such benefits for 
     withdrawals under the same terms and conditions as if the 
     account holder remained eligible for such benefits, and such 
     withdrawals shall be treated as medical assistance in 
     accordance with subsection (c)(6).

       ``(ii) Special rules.--Withdrawals under this subparagraph 
     from an account--

       ``(I) shall be available for the purchase of health 
     insurance coverage; and
       ``(II) may, subject to clause (iv), be made available (at 
     the option of the State) for such additional expenditures 
     (such as job

[[Page 30862]]

     training and tuition expenses) specified by the State (and 
     approved by the Secretary) as the State may specify.

       ``(iii) Exception from 25 percent savings to government for 
     private contributions.--Clause (i)(II) shall not apply to the 
     portion of the account that is attributable to contributions 
     described in paragraph (2)(A)(ii). For purposes of accounting 
     for such contributions, withdrawals from a health opportunity 
     account shall first be attributed to contributions described 
     in paragraph (2)(A)(i).
       ``(iv) Condition for non-health withdrawals.--No withdrawal 
     may be made from an account under clause (ii)(II) unless the 
     accountholder has participated in the program under this 
     section for at least 1 year.
       ``(v) No requirement for continuation of coverage.--An 
     account holder of a health opportunity account, after 
     becoming ineligible for medical assistance under this title, 
     is not required to purchase high-deductible or other 
     insurance as a condition of maintaining or using the account.
       ``(4) Administration.--A State may coordinate 
     administration of health opportunity accounts through the use 
     of a third party administrator and reasonable expenditures 
     for the use of such administrator shall be reimbursable to 
     the State in the same manner as other administrative 
     expenditures under section 1903(a)(7).
       ``(5) Treatment.--Amounts in, or contributed to, a health 
     opportunity account shall not be counted as income or assets 
     for purposes of determining eligibility for benefits under 
     this title.
       ``(6) Unauthorized withdrawals.--A State may establish 
     procedures--
       ``(A) to penalize or remove an individual from the health 
     opportunity account based on nonqualified withdrawals by the 
     individual from such an account; and
       ``(B) to recoup costs that derive from such nonqualified 
     withdrawals.''.

     SEC. 6083. STATE OPTION TO ESTABLISH NON-EMERGENCY MEDICAL 
                   TRANSPORTATION PROGRAM.

       (a) In General.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a(a)), as amended by sections 6033(a) and 
     6035(b), is amended--
       (1) in paragraph (68), by striking ``and'' at the end;
       (2) in paragraph (69) by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (69) the following:
       ``(70) at the option of the State and notwithstanding 
     paragraphs (1), (10)(B), and (23), provide for the 
     establishment of a non-emergency medical transportation 
     brokerage program in order to more cost-effectively provide 
     transportation for individuals eligible for medical 
     assistance under the State plan who need access to medical 
     care or services and have no other means of transportation 
     which--
       ``(A) may include a wheelchair van, taxi, stretcher car, 
     bus passes and tickets, secured transportation, and such 
     other transportation as the Secretary determines appropriate; 
     and
       ``(B) may be conducted under contract with a broker who--
       ``(i) is selected through a competitive bidding process 
     based on the State's evaluation of the broker's experience, 
     performance, references, resources, qualifications, and 
     costs;
       ``(ii) has oversight procedures to monitor beneficiary 
     access and complaints and ensure that transport personnel are 
     licensed, qualified, competent, and courteous;
       ``(iii) is subject to regular auditing and oversight by the 
     State in order to ensure the quality of the transportation 
     services provided and the adequacy of beneficiary access to 
     medical care and services; and
       ``(iv) complies with such requirements related to 
     prohibitions on referrals and conflict of interest as the 
     Secretary shall establish (based on the prohibitions on 
     physician referrals under section 1877 and such other 
     prohibitions and requirements as the Secretary determines to 
     be appropriate).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     take effect on the date of the enactment of this Act.

     SEC. 6084. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA) 
                   AND ABSTINENCE EDUCATION PROGRAM.

       Effective as if enacted on December 31, 2005, activities 
     authorized by sections 510 and 1925 of the Social Security 
     Act shall continue through December 31, 2006, in the manner 
     authorized for fiscal year 2005, notwithstanding section 
     1902(e)(1)(A) of such Act, and out of any money in the 
     Treasury of the United States not otherwise appropriated, 
     there are hereby appropriated such sums as may be necessary 
     for such purpose. Grants and payments may be made pursuant to 
     this authority through the first quarter of fiscal year 2007 
     at the level provided for such activities through the first 
     quarter of fiscal year 2006.

     SEC. 6085. EMERGENCY SERVICES FURNISHED BY NON-CONTRACT 
                   PROVIDERS FOR MEDICAID MANAGED CARE ENROLLEES.

       (a) In General.--Section 1932(b)(2) of the Social Security 
     Act (42 U.S.C. 1396u-2(b)(2)) is amended by adding at the end 
     the following new subparagraph:
       ``(D) Emergency services furnished by non-contract 
     providers.--Any provider of emergency services that does not 
     have in effect a contract with a medicaid managed care entity 
     that establishes payment amounts for services furnished to a 
     beneficiary enrolled in the entity's Medicaid managed care 
     plan must accept as payment in full no more than the amounts 
     (less any payments for indirect costs of medical education 
     and direct costs of graduate medical education) that it could 
     collect if the beneficiary received medical assistance under 
     this title other than through enrollment in such an entity. 
     In a State where rates paid to hospitals under the State plan 
     are negotiated by contract and not publicly released, the 
     payment amount applicable under this subparagraph shall be 
     the average contract rate that would apply under the State 
     plan for general acute care hospitals or the average contract 
     rate that would apply under such plan for tertiary 
     hospitals.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2007.

     SEC. 6086. EXPANDED ACCESS TO HOME AND COMMUNITY-BASED 
                   SERVICES FOR THE ELDERLY AND DISABLED.

       (a) Home and Community-Based Services as an Optional 
     Benefit for Elderly and Disabled Individuals.--Section 1915 
     of the Social Security Act (42 U.S.C. 1396n) is amended by 
     adding at the end the following new subsection:
       ``(i) State Plan Amendment Option To Provide Home and 
     Community-Based Services for Elderly and Disabled 
     Individuals.--
       ``(1) In general.--Subject to the succeeding provisions of 
     this subsection, a State may provide through a State plan 
     amendment for the provision of medical assistance for home 
     and community-based services (within the scope of services 
     described in paragraph (4)(B) of subsection (c) for which the 
     Secretary has the authority to approve a waiver and not 
     including room and board or such other services requested by 
     the State as the Secretary may approve) for individuals 
     eligible for medical assistance under the State plan whose 
     income does not exceed 150 percent of the poverty line (as 
     defined in section 2110(c)(5)), without determining that but 
     for the provision of such services the individuals would 
     require the level of care provided in a hospital or a nursing 
     facility or intermediate care facility for the mentally 
     retarded, but only if the State meets the following 
     requirements:
       ``(A) Needs-based criteria for eligibility for, and receipt 
     of, home and community-based services.--The State establishes 
     needs-based criteria for determining an individual's 
     eligibility under the State plan for medical assistance for 
     such home and community-based services, and if the individual 
     is eligible for such services, the specific home and 
     community-based services that the individual will receive.
       ``(B) Establishment of more stringent needs-based 
     eligibility criteria for institutionalized care.--The State 
     establishes needs-based criteria for determining whether an 
     individual requires the level of care provided in a hospital, 
     a nursing facility, or an intermediate care facility for the 
     mentally retarded under the State plan or under any waiver of 
     such plan that are more stringent than the needs-based 
     criteria established under subparagraph (A) for determining 
     eligibility for home and community-based services.
       ``(C) Projection of number of individuals to be provided 
     home and community-based services.--
       ``(i) In general.--The State submits to the Secretary, in 
     such form and manner, and upon such frequency as the 
     Secretary shall specify, the projected number of individuals 
     to be provided home and community-based services.
       ``(ii) Authority to limit number of eligible individuals.--
     A State may limit the number of individuals who are eligible 
     for such services and may establish waiting lists for the 
     receipt of such services.
       ``(D) Criteria based on individual assessment.--
       ``(i) In general.--The criteria established by the State 
     for purposes of subparagraphs (A) and (B) requires an 
     assessment of an individual's support needs and capabilities, 
     and may take into account the inability of the individual to 
     perform 2 or more activities of daily living (as defined in 
     section 7702B(c)(2)(B) of the Internal Revenue Code of 1986) 
     or the need for significant assistance to perform such 
     activities, and such other risk factors as the State 
     determines to be appropriate.
       ``(ii) Adjustment authority.--The State plan amendment 
     provides the State with the option to modify the criteria 
     established under subparagraph (A) (without having to obtain 
     prior approval from the Secretary) in the event that the 
     enrollment of individuals eligible for home and community-
     based services exceeds the projected enrollment submitted for 
     purposes of subparagraph (C), but only if--

       ``(I) the State provides at least 60 days notice to the 
     Secretary and the public of the proposed modification;
       ``(II) the State deems an individual receiving home and 
     community-based services on the basis of the most recent 
     version of the criteria in effect prior to the effective date

[[Page 30863]]

     of the modification to be eligible for such services for a 
     period of at least 12 months beginning on the date the 
     individual first received medical assistance for such 
     services; and
       ``(III) after the effective date of such modification, the 
     State, at a minimum, applies the criteria for determining 
     whether an individual requires the level of care provided in 
     a hospital, a nursing facility, or an intermediate care 
     facility for the mentally retarded under the State plan or 
     under any waiver of such plan which applied prior to the 
     application of the more stringent criteria developed under 
     subparagraph (B).

       ``(E) Independent evaluation and assessment.--
       ``(i) Eligibility determination.--The State uses an 
     independent evaluation for making the determinations 
     described in subparagraphs (A) and (B).
       ``(ii) Assessment.--In the case of an individual who is 
     determined to be eligible for home and community-based 
     services, the State uses an independent assessment, based on 
     the needs of the individual to--

       ``(I) determine a necessary level of services and supports 
     to be provided, consistent with an individual's physical and 
     mental capacity;
       ``(II) prevent the provision of unnecessary or 
     inappropriate care; and
       ``(III) establish an individualized care plan for the 
     individual in accordance with subparagraph (G).

       ``(F) Assessment.--The independent assessment required 
     under subparagraph (E)(ii) shall include the following:
       ``(i) An objective evaluation of an individual's inability 
     to perform 2 or more activities of daily living (as defined 
     in section 7702B(c)(2)(B) of the Internal Revenue Code of 
     1986) or the need for significant assistance to perform such 
     activities.
       ``(ii) A face-to-face evaluation of the individual by an 
     individual trained in the assessment and evaluation of 
     individuals whose physical or mental conditions trigger a 
     potential need for home and community-based services.
       ``(iii) Where appropriate, consultation with the 
     individual's family, spouse, guardian, or other responsible 
     individual.
       ``(iv) Consultation with appropriate treating and 
     consulting health and support professionals caring for the 
     individual.
       ``(v) An examination of the individual's relevant history, 
     medical records, and care and support needs, guided by best 
     practices and research on effective strategies that result in 
     improved health and quality of life outcomes.
       ``(vi) If the State offers individuals the option to self-
     direct the purchase of, or control the receipt of, home and 
     community-based service, an evaluation of the ability of the 
     individual or the individual's representative to self-direct 
     the purchase of, or control the receipt of, such services if 
     the individual so elects.
       ``(G) Individualized care plan.--
       ``(i) In general.--In the case of an individual who is 
     determined to be eligible for home and community-based 
     services, the State uses the independent assessment required 
     under subparagraph (E)(ii) to establish a written 
     individualized care plan for the individual.
       ``(ii) Plan requirements.--The State ensures that the 
     individualized care plan for an individual--

       ``(I) is developed--

       ``(aa) in consultation with the individual, the 
     individual's treating physician, health care or support 
     professional, or other appropriate individuals, as defined by 
     the State, and, where appropriate the individual's family, 
     caregiver, or representative; and
       ``(bb) taking into account the extent of, and need for, any 
     family or other supports for the individual;

       ``(II) identifies the necessary home and community-based 
     services to be furnished to the individual (or, if the 
     individual elects to self-direct the purchase of, or control 
     the receipt of, such services, funded for the individual); 
     and
       ``(III) is reviewed at least annually and as needed when 
     there is a significant change in the individual's 
     circumstances.

       ``(iii) State option to offer election for self-directed 
     services.--

       ``(I) Individual choice.--At the option of the State, the 
     State may allow an individual or the individual's 
     representative to elect to receive self-directed home and 
     community-based services in a manner which gives them the 
     most control over such services consistent with the 
     individual's abilities and the requirements of subclauses 
     (II) and (III).
       ``(II) Self-directed services.--The term `self-directed' 
     means, with respect to the home and community-based services 
     offered under the State plan amendment, such services for the 
     individual which are planned and purchased under the 
     direction and control of such individual or the individual's 
     authorized representative, including the amount, duration, 
     scope, provider, and location of such services, under the 
     State plan consistent with the following requirements:

       ``(aa) Assessment.--There is an assessment of the needs, 
     capabilities, and preferences of the individual with respect 
     to such services.
       ``(bb) Service plan.--Based on such assessment, there is 
     developed jointly with such individual or the individual's 
     authorized representative a plan for such services for such 
     individual that is approved by the State and that satisfies 
     the requirements of subclause (III).

       ``(III) Plan requirements.--For purposes of subclause 
     (II)(bb), the requirements of this subclause are that the 
     plan--

       ``(aa) specifies those services which the individual or the 
     individual's authorized representative would be responsible 
     for directing;
       ``(bb) identifies the methods by which the individual or 
     the individual's authorized representative will select, 
     manage, and dismiss providers of such services;
       ``(cc) specifies the role of family members and others 
     whose participation is sought by the individual or the 
     individual's authorized representative with respect to such 
     services;
       ``(dd) is developed through a person-centered process that 
     is directed by the individual or the individual's authorized 
     representative, builds upon the individual's capacity to 
     engage in activities that promote community life and that 
     respects the individual's preferences, choices, and 
     abilities, and involves families, friends, and professionals 
     as desired or required by the individual or the individual's 
     authorized representative;
       ``(ee) includes appropriate risk management techniques that 
     recognize the roles and sharing of responsibilities in 
     obtaining services in a self-directed manner and assure the 
     appropriateness of such plan based upon the resources and 
     capabilities of the individual or the individual's authorized 
     representative; and
       ``(ff) may include an individualized budget which 
     identifies the dollar value of the services and supports 
     under the control and direction of the individual or the 
     individual's authorized representative.

       ``(IV) Budget process.--With respect to individualized 
     budgets described in subclause (III)(ff), the State plan 
     amendment--

       ``(aa) describes the method for calculating the dollar 
     values in such budgets based on reliable costs and service 
     utilization;
       ``(bb) defines a process for making adjustments in such 
     dollar values to reflect changes in individual assessments 
     and service plans; and
       ``(cc) provides a procedure to evaluate expenditures under 
     such budgets.
       ``(H) Quality assurance; conflict of interest standards.--
       ``(i) Quality assurance.--The State ensures that the 
     provision of home and community-based services meets Federal 
     and State guidelines for quality assurance.
       ``(ii) Conflict of interest standards.--The State 
     establishes standards for the conduct of the independent 
     evaluation and the independent assessment to safeguard 
     against conflicts of interest.
       ``(I) Redeterminations and appeals.--The State allows for 
     at least annual redeterminations of eligibility, and appeals 
     in accordance with the frequency of, and manner in which, 
     redeterminations and appeals of eligibility are made under 
     the State plan.
       ``(J) Presumptive eligibility for assessment.--The State, 
     at its option, elects to provide for a period of presumptive 
     eligibility (not to exceed a period of 60 days) only for 
     those individuals that the State has reason to believe may be 
     eligible for home and community-based services. Such 
     presumptive eligibility shall be limited to medical 
     assistance for carrying out the independent evaluation and 
     assessment under subparagraph (E) to determine an 
     individual's eligibility for such services and if the 
     individual is so eligible, the specific home and community-
     based services that the individual will receive.
       ``(2) Definition of individual's representative.--In this 
     section, the term `individual's representative' means, with 
     respect to an individual, a parent, a family member, or a 
     guardian of the individual, an advocate for the individual, 
     or any other individual who is authorized to represent the 
     individual.
       ``(3) Nonapplication.--A State may elect in the State plan 
     amendment approved under this section to not comply with the 
     requirements of section 1902(a)(1) (relating to 
     statewideness) and section 1902(a)(10)(C)(i)(III) (relating 
     to income and resource rules applicable in the community), 
     but only for purposes of provided home and community-based 
     services in accordance with such amendment. Any such election 
     shall not be construed to apply to the provision of services 
     to an individual receiving medical assistance in an 
     institutionalized setting as a result of a determination that 
     the individual requires the level of care provided in a 
     hospital or a nursing facility or intermediate care facility 
     for the mentally retarded.
       ``(4) No effect on other waiver authority.--Nothing in this 
     subsection shall be construed as affecting the option of a 
     State to offer home and community-based services under a 
     waiver under subsections (c) or (d) of this section or under 
     section 1115.
       ``(5) Continuation of federal financial participation for 
     medical assistance provided to individuals as of effective 
     date of state plan amendment.--Notwithstanding paragraph 
     (1)(B), Federal financial participation shall continue to be 
     available

[[Page 30864]]

     for an individual who is receiving medical assistance in an 
     institutionalized setting, or home and community-based 
     services provided under a waiver under this section or 
     section 1115 that is in effect as of the effective date of 
     the State plan amendment submitted under this subsection, as 
     a result of a determination that the individual requires the 
     level of care provided in a hospital or a nursing facility or 
     intermediate care facility for the mentally retarded, without 
     regard to whether such individuals satisfy the more stringent 
     eligibility criteria established under that paragraph, until 
     such time as the individual is discharged from the 
     institution or waiver program or no longer requires such 
     level of care.''.
       (b) Quality of Care Measures.--
       (1) In general.--The Secretary, acting through the Director 
     of the Agency for Healthcare Research and Quality, shall 
     consult with consumers, health and social service providers 
     and other professionals knowledgeable about long-term care 
     services and supports to develop program performance 
     indicators, client function indicators, and measures of 
     client satisfaction with respect to home and community-based 
     services offered under State Medicaid programs.
       (2) Best practices.--The Secretary shall--
       (A) use the indicators and measures developed under 
     paragraph (1) to assess such home and community-based 
     services, the outcomes associated with the receipt of such 
     services (particularly with respect to the health and welfare 
     of the recipient of the services), and the overall system for 
     providing home and community-based services under the 
     Medicaid program under title XIX of the Social Security Act; 
     and
       (B) make publicly available the best practices identified 
     through such assessment and a comparative analyses of the 
     system features of each State.
       (3) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Secretary of Health and Human Services, $1,000,000 for the 
     period of fiscal years 2006 through 2010 to carry out this 
     subsection.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) take effect on January 1, 2007, and apply to 
     expenditures for medical assistance for home and community-
     based services provided in accordance with section 1915(i) of 
     the Social Security Act (as added by subsections (a) and (b)) 
     on or after that date.

     SEC. 6087. OPTIONAL CHOICE OF SELF-DIRECTED PERSONAL 
                   ASSISTANCE SERVICES (CASH AND COUNSELING).

       (a) Exemption From Certain Requirements.--Section 1915 of 
     the Social Security Act (42 U.S.C. 1396n), as amended by 
     section 6086(a), is amended by adding at the end the 
     following new subsection:
       ``(j)(1) A State may provide, as `medical assistance', 
     payment for part or all of the cost of self-directed personal 
     assistance services (other than room and board) under the 
     plan which are provided pursuant to a written plan of care to 
     individuals with respect to whom there has been a 
     determination that, but for the provision of such services, 
     the individuals would require and receive personal care 
     services under the plan, or home and community-based services 
     provided pursuant to a waiver under subsection (c). Self-
     directed personal assistance services may not be provided 
     under this subsection to individuals who reside in a home or 
     property that is owned, operated, or controlled by a provider 
     of services, not related by blood or marriage.
       ``(2) The Secretary shall not grant approval for a State 
     self-directed personal assistance services program under this 
     section unless the State provides assurances satisfactory to 
     the Secretary of the following:
       ``(A) Necessary safeguards have been taken to protect the 
     health and welfare of individuals provided services under the 
     program, and to assure financial accountability for funds 
     expended with respect to such services.
       ``(B) The State will provide, with respect to individuals 
     who--
       ``(i) are entitled to medical assistance for personal care 
     services under the plan, or receive home and community-based 
     services under a waiver granted under subsection (c);
       ``(ii) may require self-directed personal assistance 
     services; and
       ``(iii) may be eligible for self-directed personal 
     assistance services,
     an evaluation of the need for personal care under the plan, 
     or personal services under a waiver granted under subsection 
     (c).
       ``(C) Such individuals who are determined to be likely to 
     require personal care under the plan, or home and community-
     based services under a waiver granted under subsection (c) 
     are informed of the feasible alternatives, if available under 
     the State's self-directed personal assistance services 
     program, at the choice of such individuals, to the provision 
     of personal care services under the plan, or personal 
     assistance services under a waiver granted under subsection 
     (c).
       ``(D) The State will provide for a support system that 
     ensures participants in the self-directed personal assistance 
     services program are appropriately assessed and counseled 
     prior to enrollment and are able to manage their budgets. 
     Additional counseling and management support may be provided 
     at the request of the participant.
       ``(E) The State will provide to the Secretary an annual 
     report on the number of individuals served and total 
     expenditures on their behalf in the aggregate. The State 
     shall also provide an evaluation of overall impact on the 
     health and welfare of participating individuals compared to 
     non-participants every three years.
       ``(3) A State may provide self-directed personal assistance 
     services under the State plan without regard to the 
     requirements of section 1902(a)(1) and may limit the 
     population eligible to receive these services and limit the 
     number of persons served without regard to section 
     1902(a)(10)(B).
       ``(4)(A) For purposes of this subsection, the term `self-
     directed personal assistance services' means personal care 
     and related services, or home and community-based services 
     otherwise available under the plan under this title or 
     subsection (c), that are provided to an eligible participant 
     under a self-directed personal assistance services program 
     under this section, under which individuals, within an 
     approved self-directed services plan and budget, purchase 
     personal assistance and related services, and permits 
     participants to hire, fire, supervise, and manage the 
     individuals providing such services.
       ``(B) At the election of the State--
       ``(i) a participant may choose to use any individual 
     capable of providing the assigned tasks including legally 
     liable relatives as paid providers of the services; and
       ``(ii) the individual may use the individual's budget to 
     acquire items that increase independence or substitute (such 
     as a microwave oven or an accessibility ramp) for human 
     assistance, to the extent that expenditures would otherwise 
     be made for the human assistance.
       ``(5) For purpose of this section, the term `approved self-
     directed services plan and budget' means, with respect to a 
     participant, the establishment of a plan and budget for the 
     provision of self-directed personal assistance services, 
     consistent with the following requirements:
       ``(A) Self-direction.--The participant (or in the case of a 
     participant who is a minor child, the participant's parent or 
     guardian, or in the case of an incapacitated adult, another 
     individual recognized by State law to act on behalf of the 
     participant) exercises choice and control over the budget, 
     planning, and purchase of self-directed personal assistance 
     services, including the amount, duration, scope, provider, 
     and location of service provision.
       ``(B) Assessment of needs.--There is an assessment of the 
     needs, strengths, and preferences of the participants for 
     such services.
       ``(C) Service plan.--A plan for such services (and supports 
     for such services) for the participant has been developed and 
     approved by the State based on such assessment through a 
     person-centered process that--
       ``(i) builds upon the participant's capacity to engage in 
     activities that promote community life and that respects the 
     participant's preferences, choices, and abilities; and
       ``(ii) involves families, friends, and professionals in the 
     planning or delivery of services or supports as desired or 
     required by the participant.
       ``(D) Service budget.--A budget for such services and 
     supports for the participant has been developed and approved 
     by the State based on such assessment and plan and on a 
     methodology that uses valid, reliable cost data, is open to 
     public inspection, and includes a calculation of the expected 
     cost of such services if those services were not self-
     directed. The budget may not restrict access to other 
     medically necessary care and services furnished under the 
     plan and approved by the State but not included in the 
     budget.
       ``(E) Application of quality assurance and risk 
     management.--There are appropriate quality assurance and risk 
     management techniques used in establishing and implementing 
     such plan and budget that recognize the roles and 
     responsibilities in obtaining services in a self-directed 
     manner and assure the appropriateness of such plan and budget 
     based upon the participant's resources and capabilities.
       ``(6) A State may employ a financial management entity to 
     make payments to providers, track costs, and make reports 
     under the program. Payment for the activities of the 
     financial management entity shall be at the administrative 
     rate established in section 1903(a).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to services furnished on or after January 1, 
     2007.

                           Subtitle B--SCHIP

     SEC. 6101. ADDITIONAL ALLOTMENTS TO ELIMINATE FISCAL YEAR 
                   2006 FUNDING SHORTFALLS.

       (a) In General.--Section 2104 of the Social Security Act 
     (42 U.S.C. 1397dd) is amended by inserting after subsection 
     (c) the following:
       ``(d) Additional Allotments To Eliminate Funding 
     Shortfalls.--
       ``(1) Appropriation; allotment authority.--For the purpose 
     of providing additional allotments to shortfall States 
     described in paragraph (2), there is appropriated, out of any 
     money in the Treasury not otherwise appropriated, 
     $283,000,000 for fiscal year 2006.
       ``(2) Shortfall states described.--For purposes of 
     paragraph (1), a shortfall State described in this paragraph 
     is a State with a State child health plan approved under this 
     title for which the Secretary estimates, on the basis of the 
     most recent data available to

[[Page 30865]]

     the Secretary as of December 16, 2005, that the projected 
     expenditures under such plan for such State for fiscal year 
     2006 will exceed the sum of--
       ``(A) the amount of the State's allotments for each of 
     fiscal years 2004 and 2005 that will not be expended by the 
     end of fiscal year 2005;
       ``(B) the amount, if any, that is to redistributed to the 
     State during fiscal year 2006 in accordance with subsection 
     (f); and
       ``(C) the amount of the State's allotment for fiscal year 
     2006.
       ``(3) Allotments.--In addition to the allotments provided 
     under subsections (b) and (c), subject to paragraph (4), of 
     the amount available for the additional allotments under 
     paragraph (1) for fiscal year 2006, the Secretary shall 
     allot--
       ``(A) to each shortfall State described in paragraph (2) 
     such amount as the Secretary determines will eliminate the 
     estimated shortfall described in such paragraph for the 
     State; and
       ``(B) to each commonwealth or territory described in 
     subsection (c)(3), the same proportion as the proportion of 
     the commonwealth's or territory's allotment under subsection 
     (c) (determined without regard to subsection (f)) to 1.05 
     percent of the amount appropriated under paragraph (1).
       ``(4) Use of additional allotment.--Additional allotments 
     provided under this subsection are only available for amounts 
     expended under a State plan approved under this title for 
     child health assistance for targeted low-income children.
       ``(5) 1-year availability; no redistribution of unexpended 
     additional allotments.--Notwithstanding subsections (e) and 
     (f), amounts allotted to a State pursuant to this subsection 
     for fiscal year 2006 shall only remain available for 
     expenditure by the State through September 30, 2006. Any 
     amounts of such allotments that remain unexpended as of such 
     date shall not be subject to redistribution under subsection 
     (f) and shall revert to the Treasury on October 1, 2006.''.
       (b) Conforming amendments.--Section 2104 of the Social 
     Security Act (42 U.S.C. 1397dd) is amended--
       (1) in subsection (a), by inserting ``subject to subsection 
     (d),'' after ``under this section,'';
       (2) in subsection (b)(1), by inserting ``and subsection 
     (d)'' after ``Subject to paragraph (4)''; and
       (3) in subsection (c)(1), by inserting ``subject to 
     subsection (d),'' after ``for a fiscal year,''.
       (c) Effective Date.--The amendments made by this section 
     apply to items and services furnished on or after October 1, 
     2005, without regard to whether or not regulations 
     implementing such amendments have been issued.

     SEC. 6102. PROHIBITION AGAINST COVERING NONPREGNANT CHILDLESS 
                   ADULTS WITH SCHIP FUNDS.

       (a) Prohibition on Use of SCHIP Funds.--Section 2107 of the 
     Social Security Act (42 U.S.C. 1397gg) is amended by adding 
     at the end the following:
       ``(f) Limitation of Waiver Authority.--Notwithstanding 
     subsection (e)(2)(A) and section 1115(a), the Secretary may 
     not approve a waiver, experimental, pilot, or demonstration 
     project that would allow funds made available under this 
     title to be used to provide child health assistance or other 
     health benefits coverage to a nonpregnant childless adult. 
     For purposes of the preceding sentence, a caretaker relative 
     (as such term is defined for purposes of carrying out section 
     1931) shall not be considered a childless adult.''.
       (b) Conforming Amendments.--Section 2105(c)(1) of such Act 
     (42 U.S.C. 1397ee(c)(1)) is amended--
       (1) by inserting ``and may not include coverage of a 
     nonpregnant childless adult'' after ``section 2101)''; and
       (2) by adding at the end the following: ``For purposes of 
     the preceding sentence, a caretaker relative (as such term is 
     defined for purposes of carrying out section 1931) shall not 
     be considered a childless adult.''.
       (c) Rule of Construction.--Nothing in this section or the 
     amendments made by this section shall be construed to--
       (1) authorize the waiver of any provision of title XIX or 
     XXI of the Social Security Act (42 U.S.C. 1396 et seq., 
     1397aa et seq.) that is not otherwise authorized to be waived 
     under such titles or under title XI of such Act (42 U.S.C. 
     1301 et seq.) as of the date of enactment of this Act;
       (2) imply congressional approval of any waiver, 
     experimental, pilot, or demonstration project affecting funds 
     made available under the State children's health insurance 
     program under title XXI of the Social Security Act (42 U.S.C. 
     1397aa et. seq.) or any amendment to such a waiver or project 
     that has been approved as of such date of enactment; or
       (3) apply to any waiver, experimental, pilot, or 
     demonstration project that would allow funds made available 
     under title XXI of the Social Security Act (42 U.S.C. 1397aa 
     et seq.) to be used to provide child health assistance or 
     other health benefits coverage to a nonpregnant childless 
     adult that is approved before the date of enactment of this 
     Act or to any extension, renewal, or amendment of such a 
     waiver or project that is approved on or after such date of 
     enactment.
       (d) Effective Date.--This section and the amendments made 
     by this section shall take effect as if enacted on October 1, 
     2005, and shall apply to any waiver, experimental, pilot, or 
     demonstration project that is approved on or after that date.

     SEC. 6103. CONTINUED AUTHORITY FOR QUALIFYING STATES TO USE 
                   CERTAIN FUNDS FOR MEDICAID EXPENDITURES.

       (a) In General.--Section 2105(g)(1)(A) of the Social 
     Security Act (42 U.S.C. 1397ee(g)(1)(A)) is amended by 
     striking ``or 2001'' and inserting ``2001, 2004, or 2005''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to expenditures made under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.) on or after 
     October 1, 2005.

                       Subtitle C--Katrina Relief

     SEC. 6201. ADDITIONAL FEDERAL PAYMENTS UNDER HURRICANE-
                   RELATED MULTI-STATE SECTION 1115 
                   DEMONSTRATIONS.

       (a) In General.--The Secretary of Health and Human Services 
     shall pay to each eligible State, from amounts appropriated 
     pursuant to subsection (e), amounts for the following 
     purposes:
       (1) Under the authority of an approved Multi-State Section 
     1115 Demonstration Project (in this section referred to as an 
     ``section 1115 project'')--
       (A) with respect to evacuees receiving health care under 
     such project, for the non-Federal share of expenditures:
       (i) for medical assistance furnished under title XIX of the 
     Social Security Act, and
       (ii) for child health assistance furnished under title XXI 
     of such Act;
       (B) with respect to evacuees who do not have other coverage 
     for such assistance through insurance, including (but not 
     limited to) private insurance, under title XIX or title XXI 
     of the Social Security Act, or under State-funded health 
     insurance programs, for the total uncompensated care costs 
     incurred for medically necessary services and supplies or 
     premium assistance for such persons, and for those evacuees 
     receiving medical assistance under the project for the total 
     uncompensated care costs incurred for medically necessary 
     services and supplies beyond those included as medical 
     assistance or child health assistance under the State's 
     approved plan under title XIX or title XXI of the Social 
     Security Act;
       (C) with respect to affected individuals receiving health 
     care under such project for the non-Federal share of the 
     following expenditures:
       (i) for medical assistance furnished under title XIX of the 
     Social Security Act, and
       (ii) for child health assistance furnished under title XXI 
     of such Act; and
       (D) with respect to affected individuals who do not have 
     other coverage for such assistance through insurance, 
     including (but not limited to) private insurance, under title 
     XIX or title XXI of the Social Security Act, or under State-
     funded health insurance programs, for the total uncompensated 
     care costs incurred for medically necessary services and 
     supplies or premium assistance for such persons, and for 
     those affected individuals receiving medical assistance under 
     the project for the total uncompensated care costs incurred 
     for medically necessary services and supplies beyond those 
     included as medical assistance or child health assistance 
     under the State's approved plan under title XIX or title XXI 
     of the Social Security Act.
       (2) For reimbursement of the reasonable administrative 
     costs related to subparagraphs (A) through (D) of paragraph 
     (1) as determined by the Secretary.
       (3) Only with respect to affected counties or parishes, for 
     reimbursement with respect to individuals receiving medical 
     assistance under existing State plans approved by the 
     Secretary of Health and Human Services for the following non-
     Federal share of expenditures:
       (A) For medical assistance furnished under title XIX of the 
     Social Security Act.
       (B) For child health assistance furnished under title XXI 
     of such Act.
       (4) For other purposes, if approved by the Secretary under 
     the Secretary's authority, to restore access to health care 
     in impacted communities.
       (b) Definitions.--For purposes of this section:
       (1) The term ``affected individual'' means an individual 
     who resided in an individual assistance designation county or 
     parish pursuant to section 408 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act, as declared by 
     the President as a result of Hurricane Katrina and continues 
     to reside in the same State that such county or parish is 
     located in.
       (2) The term ``affected counties or parishes'' means a 
     county or parish described in paragraph (1).
       (3) The term ``evacuee'' means an affected individual who 
     has been displaced to another State.
       (4) The term ``eligible State'' means a State that has 
     provided care to affected individuals or evacuees under a 
     section 1115 project.
       (c) Application to Matching Requirements.--The non-Federal 
     share paid under

[[Page 30866]]

     this section shall not be regarded as Federal funds for 
     purposes of Medicaid matching requirements, the effect of 
     which is to provide fiscal relief to the State in which the 
     Medicaid eligible individual originally resided.
       (d) Time Limits on Payments.--
       (1) No payments shall be made by the Secretary under 
     subsection (a)(1)(A) or (a)(1)(C), for costs of health care 
     provided to an eligible evacuee or affected individual for 
     services for such individual incurred after June 30, 2006.
       (2) No payments shall be made by the Secretary under 
     subsection (a)(1)(B) or (a)(1)(D) for costs of health care 
     incurred after January 31, 2006.
       (3) No payments may be made under subsection (a)(1)(B) or 
     (a)(1)(D) for an item or service that an evacuee or an 
     affected individual has received from an individual or 
     organization as part of a public or private hurricane relief 
     effort.
       (e) Appropriations.--For the purpose of providing funds for 
     payments under this section, in addition to any funds made 
     available for the National Disaster Medical System under the 
     Department of Homeland Security for health care costs related 
     to Hurricane Katrina, including under a section 1115 project, 
     there is appropriated out of any money in the Treasury not 
     otherwise appropriated, $2,000,000,000, to remain available 
     to the Secretary until expended. The total amount of payments 
     made under subsection (a) may not exceed the total amount 
     appropriated under this subsection.

     SEC. 6202. STATE HIGH RISK HEALTH INSURANCE POOL FUNDING.

       (a) In General.--There are hereby authorized and 
     appropriated for fiscal year 2006--
       (1) $75,000,000 for grants under subsection (b)(1) of 
     section 2745 of the Public Health Service Act (42 U.S.C. 
     300gg-45); and
       (2) $15,000,000 for grants under subsection (a) of such 
     section.
       (b) Treatment.--The amount appropriated under--
       (1) paragraph (1) shall be treated as if it had been 
     appropriated under subsection (c)(2) of such section; and
       (2) paragraph (2) shall be treated as if it had been 
     appropriated under subsection (c)(1) of such section.
       (c) References.--Effective upon the enactment of the State 
     High Risk Pool Funding Extension Act of 2005--
       (1) subsection (a)(1) shall be applied by substituting 
     ``subsections (b)(2) and (c)(3)'' for ``subsection 
     ``(b)(1)'';
       (2) subsection (b)(1) shall be applied by substituting 
     ``(d)(1)(B)'' for ``(c)(2)''; and
       (3) subsection (b)(2) shall be applied by substituting 
     ``(d)(1)(A)'' for ``(c)(1)''.

     SEC. 6203. IMPLEMENTATION FUNDING.

       For purposes of implementing the provisions of, and 
     amendments made by, title V of this Act and this title--
       (1) the Secretary of Health and Human Services shall 
     provide for the transfer, in appropriate part from the 
     Federal Hospital Insurance Trust Fund established under 
     section 1817 of the Social Security Act (42 U.S.C. 1395i) and 
     the Federal Supplementary Medical Insurance Trust Fund 
     established under section 1841 of such Act (42 U.S.C. 1395t), 
     of $30,000,000 to the Centers for Medicare & Medicaid 
     Services Program Management Account for fiscal year 2006; and
       (2) out of any funds in the Treasury not otherwise 
     appropriated, there are appropriated to such Secretary for 
     the Centers for Medicare & Medicaid Services Program 
     Management Account, $30,000,000 for fiscal year 2006.

            TITLE VII--HUMAN RESOURCES AND OTHER PROVISIONS

     SEC. 7002. REFERENCES.

       Except as otherwise expressly provided, wherever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     amendment or repeal shall be considered to be made to a 
     section or other provision of the Social Security Act.

                            Subtitle A--TANF

     SEC. 7101. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND 
                   RELATED PROGRAMS FUNDING THROUGH SEPTEMBER 30, 
                   2010.

       (a) In General.--Activities authorized by part A of title 
     IV and section 1108(b) of the Social Security Act (adjusted, 
     as applicable, by or under this subtitle, the amendments made 
     by this subtitle, and the TANF Emergency Response and 
     Recovery Act of 2005) shall continue through September 30, 
     2010, in the manner authorized for fiscal year 2004, and out 
     of any money in the Treasury of the United States not 
     otherwise appropriated, there are hereby appropriated such 
     sums as may be necessary for such purpose. Grants and 
     payments may be made pursuant to this authority on a 
     quarterly basis through fiscal year 2010 at the level 
     provided for such activities for the corresponding quarter of 
     fiscal year 2004 (or, as applicable, at such greater level as 
     may result from the application of this subtitle, the 
     amendments made by this subtitle, and the TANF Emergency 
     Response and Recovery Act of 2005), except that in the case 
     of section 403(a)(3) of the Social Security Act, grants and 
     payments may be made pursuant to this authority only through 
     fiscal year 2008 and in the case of section 403(a)(4) of the 
     Social Security Act, no grants shall be made for any fiscal 
     year occurring after fiscal year 2005.
       (b) Conforming Amendments.--Part A of title IV (42 U.S.C. 
     601 et seq.) is amended--
       (1) in section 403(a)(3)(H)(ii), by striking ``December, 
     31, 2005'' and inserting ``fiscal year 2008'';
       (2) in section 403(b)(3)(C)(ii), by striking ``2006'' and 
     inserting ``2010''; and
       (3) in section 409(a)(7)--
       (A) in subparagraph (A), by striking ``or 2007'' and 
     inserting ``2007, 2008, 2009, 2010, or 2011''; and
       (B) in subparagraph (B)(ii), by striking ``2006'' and 
     inserting ``2010''.
       (c) Extension of the National Random Sample Study of Child 
     Welfare Through September 30, 2010.--Activities authorized by 
     section 429A of the Social Security Act shall continue 
     through September 30, 2010, in the manner authorized for 
     fiscal year 2004, and out of any money in the Treasury of the 
     United States not otherwise appropriated, there are hereby 
     appropriated such sums as may be necessary for such purpose. 
     Grants and payments may be made pursuant to this authority on 
     a quarterly basis through fiscal year 2010 at the level 
     provided for such activities for the corresponding quarter of 
     fiscal year 2004.

     SEC. 7102. IMPROVED CALCULATION OF WORK PARTICIPATION RATES 
                   AND PROGRAM INTEGRITY.

       (a) Recalibration of Caseload Reduction Credit.--
       (1) In general.--Section 407(b)(3)(A) (42 U.S.C. 
     607(b)(3)(A)) is amended--
       (A) in clause (i), by inserting ``or any other State 
     program funded with qualified State expenditures (as defined 
     in section 409(a)(7)(B)(i))'' after ``this part'' ; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii) the average monthly number of families that received 
     assistance under any State program referred to in clause (i) 
     during fiscal year 2005.''.
       (2) Conforming amendment.--Section 407(b)(3)(B) (42 U.S.C. 
     607(b)(3)(B)) is amended by striking ``and eligibility 
     criteria'' and all that follows through the close parenthesis 
     and inserting ``and the eligibility criteria in effect during 
     fiscal year 2005''.
       (b) Inclusion of Families Receiving Assistance Under 
     Separate State Programs in Calculation of Participation 
     Rates.--
       (1) Section 407 (42 U.S.C. 607) is amended in each of 
     subsections (a)(1), (a)(2), (b)(1)(B)(i), (c)(2)(A)(i), 
     (e)(1), and (e)(2), by inserting ``or any other State program 
     funded with qualified State expenditures (as defined in 
     section 409(a)(7)(B)(i))'' after ``this part''.
       (2) Section 411(a)(1) (42 U.S.C. 611(a)(1)) is amended--
       (A) in subparagraph (A), by inserting ``or any other State 
     program funded with qualified State expenditures (as defined 
     in section 409(a)(7)(B)(i))'' before the colon; and
       (B) in subparagraph (B)(ii), by inserting ``and any other 
     State programs funded with qualified State expenditures (as 
     defined in section 409(a)(7)(B)(i))'' after ``this part''.
       (c) Improved Verification and Oversight of Work 
     Participation.--
       (1) In general.--Section 407(i) (42 U.S.C. 607(i)) is 
     amended to read as follows:
       ``(i) Verification of Work and Work-Eligible Individuals in 
     Order to Implement Reforms.--
       ``(1) Secretarial direction and oversight.--
       ``(A) Regulations for determining whether activities may be 
     counted as `work activities', how to count and verify 
     reported hours of work, and determining who is a work-
     eligible individual.--
       ``(i) In general.--Not later than June 30, 2006, the 
     Secretary shall promulgate regulations to ensure consistent 
     measurement of work participation rates under State programs 
     funded under this part and State programs funded with 
     qualified State expenditures (as defined in section 
     409(a)(7)(B)(i)), which shall include information with 
     respect to--

       ``(I) determining whether an activity of a recipient of 
     assistance may be treated as a work activity under subsection 
     (d);
       ``(II) uniform methods for reporting hours of work by a 
     recipient of assistance;
       ``(III) the type of documentation needed to verify reported 
     hours of work by a recipient of assistance; and
       ``(IV) the circumstances under which a parent who resides 
     with a child who is a recipient of assistance should be 
     included in the work participation rates.

       ``(ii) Issuance of regulations on an interim final basis.--
     The regulations referred to in clause (i) may be effective 
     and final immediately on an interim basis as of the date of 
     publication of the regulations. If the Secretary provides for 
     an interim final regulation, the Secretary shall provide for 
     a period of public comment on the regulation after the date 
     of publication. The Secretary may change or revise the 
     regulation after the public comment period.
       ``(B) Oversight of state procedures.--The Secretary shall 
     review the State procedures established in accordance with 
     paragraph (2) to ensure that such procedures are consistent 
     with the regulations promulgated under subparagraph (A) and 
     are adequate to ensure an accurate measurement of work

[[Page 30867]]

     participation under the State programs funded under this part 
     and any other State programs funded with qualified State 
     expenditures (as so defined).
       ``(2) Requirement for states to establish and maintain work 
     participation verifi-
     cation procedures.--Not later than September 30, 2006, a 
     State to which a grant is made under section 403 shall 
     establish procedures for determining, with respect to 
     recipients of assistance under the State program funded under 
     this part or under any State programs funded with qualified 
     State expenditures (as so defined), whether activities may be 
     counted as work activities, how to count and verify reported 
     hours of work, and who is a work-eligible individual, in 
     accordance with the regulations promulgated pursuant to 
     paragraph (1)(A)(i) and shall establish internal controls to 
     ensure compliance with the procedures.''.
       (2) State penalty for failure to establish or comply with 
     work participation verification procedures.--Section 409(a) 
     (42 U.S.C. 609(a)) is amended by adding at the end the 
     following:
       ``(15) Penalty for failure to establish or comply with work 
     participation verification procedures.--
       ``(A) In general.--If the Secretary determines that a State 
     to which a grant is made under section 403 in a fiscal year 
     has violated section 407(i)(2) during the fiscal year, the 
     Secretary shall reduce the grant payable to the State under 
     section 403(a)(1) for the immediately succeeding fiscal year 
     by an amount equal to not less than 1 percent and not more 
     than 5 percent of the State family assistance grant.
       ``(B) Penalty based on severity of failure.--The Secretary 
     shall impose reductions under subparagraph (A) with respect 
     to a fiscal year based on the degree of noncompliance.''.
       (d) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2006.

     SEC. 7103. GRANTS FOR HEALTHY MARRIAGE PROMOTION AND 
                   RESPONSIBLE FATHERHOOD.

       (a) Healthy Marriage and Family Funds.--Section 403(a)(2) 
     (42 U.S.C. 603(a)(2)) is amended to read as follows:
       ``(2) Healthy marriage promotion and responsible fatherhood 
     grants.--
       ``(A) In general.--
       ``(i) Use of funds.--Subject to subparagraphs (B) and (C), 
     the Secretary may use the funds made available under 
     subparagraph (D) for the purpose of conducting and supporting 
     research and demonstration projects by public or private 
     entities, and providing technical assistance to States, 
     Indian tribes and tribal organizations, and such other 
     entities as the Secretary may specify that are receiving a 
     grant under another provision of this part.
       ``(ii) Limitations.--The Secretary may not award funds made 
     available under this paragraph on a noncompetitive basis, and 
     may not provide any such funds to an entity for the purpose 
     of carrying out healthy marriage promotion activities or for 
     the purpose of carrying out activities promoting responsible 
     fatherhood unless the entity has submitted to the Secretary 
     an application which--

       ``(I) describes--

       ``(aa) how the programs or activities proposed in the 
     application will address, as appropriate, issues of domestic 
     violence; and
       ``(bb) what the applicant will do, to the extent relevant, 
     to ensure that participation in the programs or activities is 
     voluntary, and to inform potential participants that their 
     participation is voluntary; and

       ``(II) contains a commitment by the entity--

       ``(aa) to not use the funds for any other purpose; and
       ``(bb) to consult with experts in domestic violence or 
     relevant community domestic violence coalitions in developing 
     the programs and activities.
       ``(iii) Healthy marriage promotion activities.--In clause 
     (ii), the term `healthy marriage promotion activities' means 
     the following:

       ``(I) Public advertising campaigns on the value of marriage 
     and the skills needed to increase marital stability and 
     health.
       ``(II) Education in high schools on the value of marriage, 
     relationship skills, and budgeting.
       ``(III) Marriage education, marriage skills, and 
     relationship skills programs, that may include parenting 
     skills, financial management, conflict resolution, and job 
     and career advancement, for non-married pregnant women and 
     non-married expectant fathers.
       ``(IV) Pre-marital education and marriage skills training 
     for engaged couples and for couples or individuals interested 
     in marriage.
       ``(V) Marriage enhancement and marriage skills training 
     programs for married couples.
       ``(VI) Divorce reduction programs that teach relationship 
     skills.
       ``(VII) Marriage mentoring programs which use married 
     couples as role models and mentors in at-risk communities.
       ``(VIII) Programs to reduce the disincentives to marriage 
     in means-tested aid programs, if offered in conjunction with 
     any activity described in this subparagraph.

       ``(B) Limitation on use of funds for demonstration projects 
     for coordination of provision of child welfare and tanf 
     services to tribal families at risk of child abuse or 
     neglect.--
       ``(i) In general.--Of the amounts made available under 
     subparagraph (D) for a fiscal year, the Secretary may not 
     award more than $2,000,000 on a competitive basis to fund 
     demonstration projects designed to test the effectiveness of 
     tribal governments or tribal consortia in coordinating the 
     provision to tribal families at risk of child abuse or 
     neglect of child welfare services and services under tribal 
     programs funded under this part.
       ``(ii) Limitation on use of funds.--A grant made pursuant 
     to clause (i) to such a project shall not be used for any 
     purpose other than--

       ``(I) to improve case management for families eligible for 
     assistance from such a tribal program;
       ``(II) for supportive services and assistance to tribal 
     children in out-of-home placements and the tribal families 
     caring for such children, including families who adopt such 
     children; and
       ``(III) for prevention services and assistance to tribal 
     families at risk of child abuse and neglect.

       ``(iii) Reports.--The Secretary may require a recipient of 
     funds awarded under this subparagraph to provide the 
     Secretary with such information as the Secretary deems 
     relevant to enable the Secretary to facilitate and oversee 
     the administration of any project for which funds are 
     provided under this subparagraph.
       ``(C) Limitation on use of funds for activities promoting 
     responsible fatherhood.--
       ``(i) In general.--Of the amounts made available under 
     subparagraph (D) for a fiscal year, the Secretary may not 
     award more than $50,000,000 on a competitive basis to States, 
     territories, Indian tribes and tribal organizations, and 
     public and nonprofit community entities, including religious 
     organizations, for activities promoting responsible 
     fatherhood.
       ``(ii) Activities promoting responsible fatherhood.--In 
     this paragraph, the term `activities promoting responsible 
     fatherhood' means the following:

       ``(I) Activities to promote marriage or sustain marriage 
     through activities such as counseling, mentoring, 
     disseminating information about the benefits of marriage and 
     2-parent involvement for children, enhancing relationship 
     skills, education regarding how to control aggressive 
     behavior, disseminating information on the causes of domestic 
     violence and child abuse, marriage preparation programs, 
     premarital counseling, marital inventories, skills-based 
     marriage education, financial planning seminars, including 
     improving a family's ability to effectively manage family 
     business affairs by means such as education, counseling, or 
     mentoring on matters related to family finances, including 
     household management, budgeting, banking, and handling of 
     financial transactions and home maintenance, and divorce 
     education and reduction programs, including mediation and 
     counseling.
       ``(II) Activities to promote responsible parenting through 
     activities such as counseling, mentoring, and mediation, 
     disseminating information about good parenting practices, 
     skills-based parenting enducation, encouraging child support 
     payments, and other methods.
       ``(III) Activities to foster economic stability by helping 
     fathers improve their economic status by providing activities 
     such as work first services, job search, job training, 
     subsidized employment, job retention, job enhancement, and 
     encouraging education, including career-advancing education, 
     dissemination of employment materials, coordination with 
     existing employment services such as welfare-to-work 
     programs, referrals to local employment training initiatives, 
     and other methods.
       ``(IV) Activities to promote responsible fatherhood that 
     are conducted through a contract with a nationally 
     recognized, nonprofit fatherhood promotion organization, such 
     as the development, promotion, and distribution of a media 
     campaign to encourage the appropriate involvement of parents 
     in the life of any child and specifically the issue of 
     responsible fatherhood, and the development of a national 
     clearinghouse to assist States and communities in efforts to 
     promote and support marriage and responsible fatherhood.

       ``(D) Appropriation.--Out of any money in the Treasury of 
     the United States not otherwise appropriated, there are 
     appropriated $150,000,000 for each of fiscal years 2006 
     through 2010, for expenditure in accordance with this 
     paragraph.''.
       (b) Counting of Spending on Certain Pro-Family 
     Activities.--Section 409(a)(7)(B)(i) (42 U.S.C. 
     609(a)(7)(B)(i)) is amended by adding at the end the 
     following:

       ``(V) Counting of spending on certain pro-family 
     activities.--The term `qualified State expenditures' includes 
     the total expenditures by the State during the fiscal year 
     under all State programs for a purpose described in paragraph 
     (3) or (4) of section 401(a).''.

[[Page 30868]]



                         Subtitle B--Child Care

     SEC. 7201. ENTITLEMENT FUNDING.

       Section 418(a)(3) (42 U.S.C. 618(a)(3)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(G) $2,917,000,000 for each of fiscal years 2006 through 
     2010.''.

                       Subtitle C--Child Support

     SEC. 7301. ASSIGNMENT AND DISTRIBUTION OF CHILD SUPPORT.

       (a) Modification of Rule Requiring Assignment of Support 
     Rights as a Condition of Receiving TANF.--Section 408(a)(3) 
     (42 U.S.C. 608(a)(3)) is amended to read as follows:
       ``(3) No assistance for families not assigning certain 
     support rights to the state.--A State to which a grant is 
     made under section 403 shall require, as a condition of 
     paying assistance to a family under the State program funded 
     under this part, that a member of the family assign to the 
     State any right the family member may have (on behalf of the 
     family member or of any other person for whom the family 
     member has applied for or is receiving such assistance) to 
     support from any other person, not exceeding the total amount 
     of assistance so paid to the family, which accrues during the 
     period that the family receives assistance under the 
     program.''.
       (b) Increasing Child Support Payments to Families and 
     Simplifying Child Support Distribution Rules.--
       (1) Distribution rules.--
       (A) In general.--Section 457(a) (42 U.S.C. 657(a)) is 
     amended to read as follows:
       ``(a) In General.--Subject to subsections (d) and (e), the 
     amounts collected on behalf of a family as support by a State 
     pursuant to a plan approved under this part shall be 
     distributed as follows:
       ``(1) Families receiving assistance.--In the case of a 
     family receiving assistance from the State, the State shall--
       ``(A) pay to the Federal Government the Federal share of 
     the amount collected, subject to paragraph (3)(A);
       ``(B) retain, or pay to the family, the State share of the 
     amount collected, subject to paragraph (3)(B); and
       ``(C) pay to the family any remaining amount.
       ``(2) Families that formerly received assistance.--In the 
     case of a family that formerly received assistance from the 
     State:
       ``(A) Current support.--To the extent that the amount 
     collected does not exceed the current support amount, the 
     State shall pay the amount to the family.
       ``(B) Arrearages.--Except as otherwise provided in an 
     election made under section 454(34), to the extent that the 
     amount collected exceeds the current support amount, the 
     State--
       ``(i) shall first pay to the family the excess amount, to 
     the extent necessary to satisfy support arrearages not 
     assigned pursuant to section 408(a)(3);
       ``(ii) if the amount collected exceeds the amount required 
     to be paid to the family under clause (i), shall--

       ``(I) pay to the Federal Government the Federal share of 
     the excess amount described in this clause, subject to 
     paragraph (3)(A); and
       ``(II) retain, or pay to the family, the State share of the 
     excess amount described in this clause, subject to paragraph 
     (3)(B); and

       ``(iii) shall pay to the family any remaining amount.
       ``(3) Limitations.--
       ``(A) Federal reimbursements.--The total of the amounts 
     paid by the State to the Federal Government under paragraphs 
     (1) and (2) of this subsection with respect to a family shall 
     not exceed the Federal share of the amount assigned with 
     respect to the family pursuant to section 408(a)(3).
       ``(B) State reimbursements.--The total of the amounts 
     retained by the State under paragraphs (1) and (2) of this 
     subsection with respect to a family shall not exceed the 
     State share of the amount assigned with respect to the family 
     pursuant to section 408(a)(3).
       ``(4) Families that never received assistance.--In the case 
     of any other family, the State shall distribute to the family 
     the portion of the amount so collected that remains after 
     withholding any fee pursuant to section 454(6)(B)(ii).
       ``(5) Families under certain agreements.--Notwithstanding 
     paragraphs (1) through (3), in the case of an amount 
     collected for a family in accordance with a cooperative 
     agreement under section 454(33), the State shall distribute 
     the amount collected pursuant to the terms of the 
     agreement.''.
       (B) State option to pass through additional support with 
     federal financial participation beginning with fiscal year 
     2009.--
       (i) In general.--Section 457(a) (42 U.S.C. 657(a)) is 
     amended by adding at the end the following:
       ``(7) State option to pass through additional support with 
     federal financial participation.--
       ``(A) Families that formerly received assistance.--
     Notwithstanding paragraph (2), a State shall not be required 
     to pay to the Federal Government the Federal share of an 
     amount collected on behalf of a family that formerly received 
     assistance from the State to the extent that the State pays 
     the amount to the family.
       ``(B) Families that currently receive assistance.--
       ``(i) In general.--Notwithstanding paragraph (1), in the 
     case of a family that receives assistance from the State, a 
     State shall not be required to pay to the Federal Government 
     the Federal share of the excepted portion (as defined in 
     clause (ii)) of any amount collected on behalf of such family 
     during a month to the extent that--

       ``(I) the State pays the excepted portion to the family; 
     and
       ``(II) the excepted portion is disregarded in determining 
     the amount and type of assistance provided to the family 
     under such program.

       ``(ii) Excepted portion defined.--For purposes of this 
     subparagraph, the term ``excepted portion'' means that 
     portion of the amount collected on behalf of a family during 
     a month that does not exceed $100 per month, or in the case 
     of a family that includes 2 or more children, that does not 
     exceed an amount established by the State that is not more 
     than $200 per month.''.
       (ii) Effective date.--The amendment made by clause (i) 
     shall take effect on October 1, 2008.
       (iii) Redesignation.--Effective October 1, 2009, paragraph 
     (7) of section 457(a) of the Social Security Act (as added by 
     clause (i)) is redesignated as paragraph (6).
       (C) State plan to include election as to which rules to 
     apply in distributing child support arrearages collected on 
     behalf of families formerly receiving assistance.--Section 
     454 (42 U.S.C. 654) is amended--
       (i) by striking ``and'' at the end of paragraph (32);
       (ii) by striking the period at the end of paragraph (33) 
     and inserting ``; and''; and
       (iii) by inserting after paragraph (33) the following:
       ``(34) include an election by the State to apply section 
     457(a)(2)(B) of this Act or former section 457(a)(2)(B) of 
     this Act (as in effect for the State immediately before the 
     date this paragraph first applies to the State) to the 
     distribution of the amounts which are the subject of such 
     sections and, for so long as the State elects to so apply 
     such former section, the amendments made by subsection (b)(1) 
     of section 7301 of the Deficit Reduction Act of 2005 shall 
     not apply with respect to the State, notwithstanding 
     subsection (e) of such section 7301.''.
       (2) Current support amount defined.--Section 457(c) (42 
     U.S.C. 657(c)) is amended by adding at the end the following:
       ``(5) Current support amount.--The term `current support 
     amount' means, with respect to amounts collected as support 
     on behalf of a family, the amount designated as the monthly 
     support obligation of the noncustodial parent in the order 
     requiring the support or calculated by the State based on the 
     order.''.
       (c) State Option to Discontinue Older Support 
     Assignments.--Section 457(b) (42 U.S.C. 657(b)) is amended to 
     read as follows:
       ``(b) Continuation of Assignments.--
       ``(1) State option to discontinue pre-1997 support 
     assignments.--
       ``(A) In general.--Any rights to support obligations 
     assigned to a State as a condition of receiving assistance 
     from the State under part A and in effect on September 30, 
     1997 (or such earlier date on or after August 22, 1996, as 
     the State may choose), may remain assigned after such date.
       ``(B) Distribution of amounts after assignment 
     discontinuation.--If a State chooses to discontinue the 
     assignment of a support obligation described in subparagraph 
     (A), the State may treat amounts collected pursuant to the 
     assignment as if the amounts had never been assigned and may 
     distribute the amounts to the family in accordance with 
     subsection (a)(4).
       ``(2) State option to discontinue post-1997 assignments.--
       ``(A) In general.--Any rights to support obligations 
     accruing before the date on which a family first receives 
     assistance under part A that are assigned to a State under 
     that part and in effect before the implementation date of 
     this section may remain assigned after such date.
       ``(B) Distribution of amounts after assignment 
     discontinuation.--If a State chooses to discontinue the 
     assignment of a support obligation described in subparagraph 
     (A), the State may treat amounts collected pursuant to the 
     assignment as if the amounts had never been assigned and may 
     distribute the amounts to the family in accordance with 
     subsection (a)(4).''.
       (d) Conforming Amendments.--Section 6402(c) of the Internal 
     Revenue Code of 1986 (relating to offset of past-due support 
     against overpayments) is amended--
       (1) in the first sentence, by striking ``the Social 
     Security Act.'' and inserting ``of such Act.''; and
       (2) by striking the third sentence and inserting the 
     following: ``The Secretary shall apply a reduction under this 
     subsection first to an amount certified by the State as past

[[Page 30869]]

     due support under section 464 of the Social Security Act 
     before any other reductions allowed by law.''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     section, the amendments made by the preceding provisions of 
     this section shall take effect on October 1, 2009, and shall 
     apply to payments under parts A and D of title IV of the 
     Social Security Act for calendar quarters beginning on or 
     after such date, and without regard to whether regulations to 
     implement the amendments (in the case of State programs 
     operated under such part D) are promulgated by such date.
       (2) State option to accelerate effective date.--
     Notwithstanding paragraph (1), a State may elect to have the 
     amendments made by the preceding provisions of this section 
     apply to the State and to amounts collected by the State (and 
     the payments under parts A and D), on and after such date as 
     the State may select that is not earlier than October 1, 
     2008, and not later than September 30, 2009.
       (f) Use of Tax Refund Intercept Program to Collect Past-Due 
     Child Support on Behalf of Children Who Are not Minors.--
       (1) In general.--Section 464 (42 U.S.C. 664) is amended--
       (A) in subsection (a)(2)(A), by striking ``(as that term is 
     defined for purposes of this paragraph under subsection 
     (c))''; and
       (B) in subsection (c)--
       (i) in paragraph (1)--

       (I) by striking ``(1) Except as provided in paragraph (2), 
     as used in'' and inserting ``In''; and
       (II) by inserting ``(whether or not a minor)'' after ``a 
     child'' each place it appears; and

       (ii) by striking paragraphs (2) and (3).
       (2) Effective date.--The amendments made by paragraph (1) 
     shall take effect on October 1, 2007.
       (g) State Option to Use Statewide Automated Data Processing 
     and Information Retrieval System for Interstate Cases.--
     Section 466(a)(14)(A)(iii) (42 U.S.C. 666(a)(14)(A)(iii)) is 
     amended by inserting before the semicolon the following: 
     ``(but the assisting State may establish a corresponding case 
     based on such other State's request for assistance)''.

     SEC. 7302. MANDATORY REVIEW AND ADJUSTMENT OF CHILD SUPPORT 
                   ORDERS FOR FAMILIES RECEIVING TANF.

       (a) In General.--Section 466(a)(10)(A)(i) (42 U.S.C. 
     666(a)(10)(A)(i)) is amended--
       (1) by striking ``parent, or,'' and inserting ``parent 
     or''; and
       (2) by striking ``upon the request of the State agency 
     under the State plan or of either parent,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on October 1, 2007.

     SEC. 7303. DECREASE IN AMOUNT OF CHILD SUPPORT ARREARAGE 
                   TRIGGERING PASSPORT DENIAL.

       (a) In General.--Section 452(k)(1) (42 U.S.C. 652(k)(1)) is 
     amended by striking ``$5,000'' and inserting ``$2,500''.
       (b) Conforming Amendment.--Section 454(31) (42 U.S.C. 
     654(31)) is amended by striking ``$5,000'' and inserting 
     ``$2,500''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2006.

     SEC. 7304. MAINTENANCE OF TECHNICAL ASSISTANCE FUNDING.

       Section 452(j) (42 U.S.C. 652(j)) is amended by inserting 
     ``or the amount appropriated under this paragraph for fiscal 
     year 2002, whichever is greater'' before ``, which shall be 
     available''.

     SEC. 7305. MAINTENANCE OF FEDERAL PARENT LOCATOR SERVICE 
                   FUNDING.

       Section 453(o) (42 U.S.C. 653(o)) is amended--
       (1) in the first sentence, by inserting ``or the amount 
     appropriated under this paragraph for fiscal year 2002, 
     whichever is greater'' before ``, which shall be available''; 
     and
       (2) in the second sentence, by striking ``for each of 
     fiscal years 1997 through 2001''.

     SEC. 7306. INFORMATION COMPARISONS WITH INSURANCE DATA.

       (a) Duties of the Secretary.--Section 452 (42 U.S.C. 652) 
     is amended by adding at the end the following:
       ``(l) Comparisons With Insurance Information.--
       ``(1) In general.--The Secretary, through the Federal 
     Parent Locator Service, may--
       ``(A) compare information concerning individuals owing 
     past-due support with information maintained by insurers (or 
     their agents) concerning insurance claims, settlements, 
     awards, and payments; and
       ``(B) furnish information resulting from the data matches 
     to the State agencies responsible for collecting child 
     support from the individuals.
       ``(2) Liability.--An insurer (including any agent of an 
     insurer) shall not be liable under any Federal or State law 
     to any person for any disclosure provided for under this 
     subsection, or for any other action taken in good faith in 
     accordance with this subsection.''.
       (b) State Reimbursement of Federal Costs.--Section 
     453(k)(3) (42 U.S.C. 653(k)(3)) is amended by inserting ``or 
     section 452(l)'' after ``pursuant to this section''.

     SEC. 7307. REQUIREMENT THAT STATE CHILD SUPPORT ENFORCEMENT 
                   AGENCIES SEEK MEDICAL SUPPORT FOR CHILDREN FROM 
                   EITHER PARENT.

       (a) State Agencies Required to Seek Medical Support From 
     Either Parent.--
       (1) In general.--Section 466(a)(19)(A) (42 U.S.C. 
     666(a)(19)(A)) is amended by striking ``which include a 
     provision for the health care coverage of the child are 
     enforced'' and inserting ``shall include a provision for 
     medical support for the child to be provided by either or 
     both parents, and shall be enforced''.
       (2) Conforming amendments.--
       (A) Title iv-d.--
       (i) Section 452(f) (42 U.S.C. 652(f)) is amended by 
     striking ``include medical support as part of any child 
     support order and enforce medical support'' and inserting 
     ``enforce medical support included as part of a child support 
     order''.
       (ii) Section 466(a)(19) (42 U.S.C. 666(a)(19)), as amended 
     by paragraph (1) of this subsection, is amended--

       (I) in subparagraph (A)--

       (aa) by striking ``section 401(e)(3)(C)'' and inserting 
     ``section 401(e)''; and
       (bb) by striking ``section 401(f)(5)(C)'' and inserting 
     ``section 401(f)'';

       (II) in subparagraph (B)--

       (aa) by striking ``noncustodial'' each place it appears; 
     and
       (bb) in clause (iii), by striking ``section 466(b)'' and 
     inserting ``subsection (b)''; and

       (III) in subparagraph (C), by striking ``noncustodial'' 
     each place it appears and inserting ``obligated''.

       (B) State or local governmental group health plans.--
     Section 401(e)(2) of the Child Support Performance and 
     Incentive Act of 1998 (29 U.S.C. 1169 note) is amended, in 
     the matter preceding subparagraph (A), by striking ``who is a 
     noncustodial parent of the child''.
       (C) Church plans.--Section 401(f)(5)(C) of the Child 
     Support Performance and Incentive Act of 1998 (29 U.S.C. 1169 
     note) is amended by striking ``noncustodial'' each place it 
     appears.
       (b) Enforcement of Medical Support Requirements.--Section 
     452(f) (42 U.S.C. 652(f)), as amended by subsection 
     (a)(2)(A)(i), is amended by inserting after the first 
     sentence the following: ``A State agency administering the 
     program under this part may enforce medical support against a 
     custodial parent if health care coverage is available to the 
     custodial parent at a reasonable cost, notwithstanding any 
     other provision of this part.''.
       (c) Definition of Medical Support.--Section 452(f) (42 
     U.S.C. 652(f)), as amended by subsections (a)(2)(A)(i) and 
     (b) of this section, is amended by adding at the end the 
     following: ``For purposes of this part, the term `medical 
     support' may include health care coverage, such as coverage 
     under a health insurance plan (including payment of costs of 
     premiums, co-payments, and deductibles) and payment for 
     medical expenses incurred on behalf of a child.''.

     SEC. 7308. REDUCTION OF FEDERAL MATCHING RATE FOR LABORATORY 
                   COSTS INCURRED IN DETERMINING PATERNITY.

       (a) In General.--Section 455(a)(1)(C) (42 U.S.C. 
     655(a)(1)(C)) is amended by striking ``90 percent (rather 
     than the percentage specified in subparagraph (A))'' and 
     inserting ``66 percent''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2006, and shall apply to 
     costs incurred on or after that date.

     SEC. 7309. ENDING FEDERAL MATCHING OF STATE SPENDING OF 
                   FEDERAL INCENTIVE PAYMENTS.

       (a) In General.--Section 455(a)(1) (42 U.S.C. 655(a)(1)) is 
     amended by inserting ``from amounts paid to the State under 
     section 458 or'' before ``to carry out an agreement''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2007.

     SEC. 7310. MANDATORY FEE FOR SUCCESSFUL CHILD SUPPORT 
                   COLLECTION FOR FAMILY THAT HAS NEVER RECEIVED 
                   TANF.

       (a) In General.--Section 454(6)(B) (42 U.S.C. 654(6)(B)) is 
     amended--
       (1) by inserting ``(i)'' after ``(B)'';
       (2) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively;
       (3) by adding ``and'' after the semicolon; and
       (4) by adding after and below the end the following new 
     clause:
       ``(ii) in the case of an individual who has never received 
     assistance under a State program funded under part A and for 
     whom the State has collected at least $500 of support, the 
     State shall impose an annual fee of $25 for each case in 
     which services are furnished, which shall be retained by the 
     State from support collected on behalf of the individual (but 
     not from the 1st $500 so collected), paid by the individual 
     applying for the services, recovered from the absent parent, 
     or paid by the State out of its own funds (the payment of 
     which from State funds shall not be considered as an 
     administrative cost of the State for the operation of the 
     plan, and the fees shall be considered income to the 
     program);''.
       (b) Conforming Amendments.--Section 457(a)(3) (42 U.S.C. 
     657(a)(3)) is amended to read as follows:

[[Page 30870]]

       ``(3) Families that never received assistance.--In the case 
     of any other family, the State shall distribute to the family 
     the portion of the amount so collected that remains after 
     withholding any fee pursuant to section 454(6)(B)(ii).''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2006.

     SEC. 7311. EXCEPTION TO GENERAL EFFECTIVE DATE FOR STATE 
                   PLANS REQUIRING STATE LAW AMENDMENTS.

       In the case of a State plan under part D of title IV of the 
     Social Security Act which the Secretary determines requires 
     State legislation in order for the plan to meet the 
     additional requirements imposed by the amendments made by 
     this subtitle, the effective date of the amendments imposing 
     the additional requirements shall be 3 months after the first 
     day of the first calendar quarter beginning after the close 
     of the first regular session of the State legislature that 
     begins after the date of the enactment of this Act. For 
     purposes of the preceding sentence, in the case of a State 
     that has a 2-year legislative session, each year of the 
     session shall be considered to be a separate regular session 
     of the State legislature.

                       Subtitle D--Child Welfare

     SEC. 7401. STRENGTHENING COURTS.

       (a) Court Improvement Grants.--
       (1) In general.--Section 438(a) (42 U.S.C. 629h(a)) is 
     amended--
       (A) by striking ``and'' at the end of paragraph (1);
       (B) by striking the period at the end of paragraph (2) and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(3) to ensure that the safety, permanence, and well-being 
     needs of children are met in a timely and complete manner; 
     and
       ``(4) to provide for the training of judges, attorneys and 
     other legal personnel in child welfare cases.''.
       (2) Applications.--Section 438(b) (42 U.S.C. 629h(b)) is 
     amended to read as follows:
       ``(b) Applications.--
       ``(1) In general.--In order to be eligible to receive a 
     grant under this section, a highest State court shall submit 
     to the Secretary an application at such time, in such form, 
     and including such information and assurances as the 
     Secretary may require, including--
       ``(A) in the case of a grant for the purpose described in 
     subsection (a)(3), a description of how courts and child 
     welfare agencies on the local and State levels will 
     collaborate and jointly plan for the collection and sharing 
     of all relevant data and information to demonstrate how 
     improved case tracking and analysis of child abuse and 
     neglect cases will produce safe and timely permanency 
     decisions;
       ``(B) in the case of a grant for the purpose described in 
     subsection (a)(4), a demonstration that a portion of the 
     grant will be used for cross-training initiatives that are 
     jointly planned and executed with the State agency or any 
     other agency under contract with the State to administer the 
     State program under the State plan under subpart 1, the State 
     plan approved under section 434, or the State plan approved 
     under part E; and
       ``(C) in the case of a grant for any purpose described in 
     subsection (a), a demonstration of meaningful and ongoing 
     collaboration among the courts in the State, the State agency 
     or any other agency under contract with the State who is 
     responsible for administering the State program under part B 
     or E, and, where applicable, Indian tribes.
       ``(2) Separate applications.-- A highest State court 
     desiring grants under this section for 2 or more purposes 
     shall submit separate applications for the following grants:
       ``(A) A grant for the purposes described in paragraphs (1) 
     and (2) of subsection (a).
       ``(B) A grant for the purpose described in subsection 
     (a)(3).
       ``(C) A grant for the purpose described in subsection 
     (a)(4).''.
       (3) Allotments.--Section 438(c) (42 U.S.C. 429h(c)) is 
     amended--
       (A) in paragraph (1)--
       (i) by inserting ``of this section for a grant described in 
     subsection (b)(2)(A) of this section'' after ``subsection 
     (b)''; and
       (ii) by striking ``paragraph (2) of this subsection'' and 
     inserting ``subparagraph (B) of this paragraph'';
       (B) in paragraph (2)--
       (i) by striking ``this paragraph'' and inserting ``this 
     subparagraph'';
       (ii) by striking ``paragraph (1) of this subsection'' and 
     inserting ``subparagraph (A) of this paragraph''; and
       (iii) by inserting ``for such a grant'' after ``subsection 
     (b)'';
       (C) by redesignating and indenting paragraphs (1) and (2) 
     as subparagraphs (A) and (B), respectively;
       (D) by inserting before and above such subparagraph (A) the 
     following:
       ``(1) Grants to assess and improve handling of court 
     proceedings relating to foster care and adoption.--''; and
       (E) by adding at the end the following:
       ``(2) Grants for improved data collection and training.--
       ``(A) In general.--Each highest State court which has an 
     application approved under subsection (b) of this section for 
     a grant referred to in subparagraph (B) or (C) of subsection 
     (b)(2) shall be entitled to payment, for each of fiscal years 
     2006 through 2010, from the amount made available under 
     whichever of paragraph (1) or (2) of subsection (e) applies 
     with respect to the grant, of an amount equal to the sum of 
     $85,000 plus the amount described in subparagraph (B) of this 
     paragraph for the fiscal year with respect to the grant.
       ``(B) Formula.--The amount described in this subparagraph 
     for any fiscal year with respect to a grant referred to in 
     subparagraph (B) or (C) of subsection (b)(2) is the amount 
     that bears the same ratio to the amount made available under 
     subsection (e) for such a grant (reduced by the dollar amount 
     specified in subparagraph (A) of this paragraph) as the 
     number of individuals in the State who have not attained 21 
     years of age bears to the total number of such individuals in 
     all States the highest State courts of which have approved 
     applications under subsection (b) for such a grant.''.
       (4) Funding.--Section 438 (42 U.S.C. 629h) is amended by 
     adding at the end the following:
       ``(e) Funding for Grants for Improved Data Collection and 
     Training.--Out of any money in the Treasury of the United 
     States not otherwise appropriated, there are appropriated to 
     the Secretary, for each of fiscal years 2006 through 2010--
       ``(1) $10,000,000 for grants referred to in subsection 
     (b)(2)(B); and
       ``(2) $10,000,000 for grants referred to in subsection 
     (b)(2)(C).''.
       (b) Requirement to Demonstrate Meaningful Collaboration 
     Between Courts and Agencies in Child Welfare Services 
     Programs.--Section 422(b) (42 U.S.C. 622(b)) is amended--
       (1) by striking ``and'' at the end of paragraph (13);
       (2) by striking the period at the end of paragraph (14) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(15) demonstrate substantial, ongoing, and meaningful 
     collaboration with State courts in the development and 
     implementation of the State plan under subpart 1, the State 
     plan approved under subpart 2, and the State plan approved 
     under part E, and in the development and implementation of 
     any program improvement plan required under section 1123A.''.
       (c) Use of Child Welfare Records in State Court 
     Proceedings.--Section 471 (42 U.S.C. 671) is amended--
       (1) in subsection (a)(8), by inserting ``subject to 
     subsection (c),'' after ``(8)''; and
       (2) by adding at the end the following:
       ``(c) Use of Child Welfare Records in State Court 
     Proceedings.--Subsection (a)(8) shall not be construed to 
     limit the flexibility of a State in determining State 
     policies relating to public access to court proceedings to 
     determine child abuse and neglect or other court hearings 
     held pursuant to part B or this part, except that such 
     policies shall, at a minimum, ensure the safety and well-
     being of the child, parents, and family.''.

     SEC. 7402. FUNDING OF SAFE AND STABLE FAMILIES PROGRAMS.

       Section 436(a) (42 U.S.C. 629f(a)) is amended to read as 
     follows:
       ``(a) Authorization.--In addition to any amount otherwise 
     made available to carry out this subpart, there are 
     authorized to be appropriated to carry out this subpart 
     $345,000,000 for fiscal year 2006. Notwithstanding the 
     preceding sentence, the total amount authorized to be so 
     appropriated for fiscal year 2006 under this subsection and 
     under this subsection (as in effect before the date of the 
     enactment of the Deficit Reduction Act of 2005) is 
     $345,000,000.''.

     SEC. 7403. CLARIFICATION REGARDING FEDERAL MATCHING OF 
                   CERTAIN ADMINISTRATIVE COSTS UNDER THE FOSTER 
                   CARE MAINTENANCE PAYMENTS PROGRAM.

       (a) Administrative Costs Relating to Unlicensed Care.--
     Section 472 (42 U.S.C. 672) is amended by inserting after 
     subsection (h) the following:
       ``(i) Administrative Costs Associated With Otherwise 
     Eligible Children not in Licensed Foster Care Settings.--
     Expenditures by a State that would be considered 
     administrative expenditures for purposes of section 474(a)(3) 
     if made with respect to a child who was residing in a foster 
     family home or child-care institution shall be so considered 
     with respect to a child not residing in such a home or 
     institution--
       ``(1) in the case of a child who has been removed in 
     accordance with subsection (a) of this section from the home 
     of a relative specified in section 406(a) (as in effect on 
     July 16, 1996), only for expenditures--
       ``(A) with respect to a period of not more than the lesser 
     of 12 months or the average length of time it takes for the 
     State to license or approve a home as a foster home, in which 
     the child is in the home of a relative and an application is 
     pending for licensing or approval of the home as a foster 
     family home; or
       ``(B) with respect to a period of not more than 1 calendar 
     month when a child moves from a facility not eligible for 
     payments under this part into a foster family home or child 
     care institution licensed or approved by the State; and
       ``(2) in the case of any other child who is potentially 
     eligible for benefits under a State plan approved under this 
     part and at imminent risk of removal from the home, only if--

[[Page 30871]]

       ``(A) reasonable efforts are being made in accordance with 
     section 471(a)(15) to prevent the need for, or if necessary 
     to pursue, removal of the child from the home; and
       ``(B) the State agency has made, not less often than every 
     6 months, a determination (or redetermination) as to whether 
     the child remains at imminent risk of removal from the 
     home.''.
       (b) Conforming Amendment.--Section 474(a)(3) (42 U.S.C. 
     674(a)(3)) is amended by inserting ``subject to section 
     472(i)'' before ``an amount equal to''.

     SEC. 7404. CLARIFICATION OF ELIGIBILITY FOR FOSTER CARE 
                   MAINTENANCE PAYMENTS AND ADOPTION ASSISTANCE.

       (a) Foster Care Maintenance Payments.--Section 472(a) (42 
     U.S.C. 672(a)) is amended to read as follows:
       ``(a) In General.--
       ``(1) Eligibility.--Each State with a plan approved under 
     this part shall make foster care maintenance payments on 
     behalf of each child who has been removed from the home of a 
     relative specified in section 406(a) (as in effect on July 
     16, 1996) into foster care if--
       ``(A) the removal and foster care placement met, and the 
     placement continues to meet, the requirements of paragraph 
     (2); and
       ``(B) the child, while in the home, would have met the AFDC 
     eligibility requirement of paragraph (3).
       ``(2) Removal and foster care placement requirements.--The 
     removal and foster care placement of a child meet the 
     requirements of this paragraph if--
       ``(A) the removal and foster care placement are in 
     accordance with--
       ``(i) a voluntary placement agreement entered into by a 
     parent or legal guardian of the child who is the relative 
     referred to in paragraph (1); or
       ``(ii) a judicial determination to the effect that 
     continuation in the home from which removed would be contrary 
     to the welfare of the child and that reasonable efforts of 
     the type described in section 471(a)(15) for a child have 
     been made;
       ``(B) the child's placement and care are the responsibility 
     of--
       ``(i) the State agency administering the State plan 
     approved under section 471; or
       ``(ii) any other public agency with which the State agency 
     administering or supervising the administration of the State 
     plan has made an agreement which is in effect; and
       ``(C) the child has been placed in a foster family home or 
     child-care institution.
       ``(3) AFDC eligibility requirement.--
       ``(A) In general.--A child in the home referred to in 
     paragraph (1) would have met the AFDC eligibility requirement 
     of this paragraph if the child--
       ``(i) would have received aid under the State plan approved 
     under section 402 (as in effect on July 16, 1996) in the 
     home, in or for the month in which the agreement was entered 
     into or court proceedings leading to the determination 
     referred to in paragraph (2)(A)(ii) of this subsection were 
     initiated; or
       ``(ii)(I) would have received the aid in the home, in or 
     for the month referred to in clause (i), if application had 
     been made therefor; or
       ``(II) had been living in the home within 6 months before 
     the month in which the agreement was entered into or the 
     proceedings were initiated, and would have received the aid 
     in or for such month, if, in such month, the child had been 
     living in the home with the relative referred to in paragraph 
     (1) and application for the aid had been made.
       ``(B) Resources determination.--For purposes of 
     subparagraph (A), in determining whether a child would have 
     received aid under a State plan approved under section 402 
     (as in effect on July 16, 1996), a child whose resources 
     (determined pursuant to section 402(a)(7)(B), as so in 
     effect) have a combined value of not more than $10,000 shall 
     be considered a child whose resources have a combined value 
     of not more than $1,000 (or such lower amount as the State 
     may determine for purposes of section 402(a)(7)(B)).
       ``(4) Eligibility of certain alien children.--Subject to 
     title IV of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996, if the child is an alien 
     disqualified under section 245A(h) or 210(f) of the 
     Immigration and Nationality Act from receiving aid under the 
     State plan approved under section 402 in or for the month in 
     which the agreement described in paragraph (2)(A)(i) was 
     entered into or court proceedings leading to the 
     determination described in paragraph (2)(A)(ii) were 
     initiated, the child shall be considered to satisfy the 
     requirements of paragraph (3), with respect to the month, if 
     the child would have satisfied the requirements but for the 
     disqualification.''.
       (b) Adoption Assistance.--Section 473(a)(2) (42 U.S.C. 
     673(a)(2)) is amended to read as follows:
       ``(2)(A) For purposes of paragraph (1)(B)(ii), a child 
     meets the requirements of this paragraph if the child--
       ``(i)(I)(aa) was removed from the home of a relative 
     specified in section 406(a) (as in effect on July 16, 1996) 
     and placed in foster care in accordance with a voluntary 
     placement agreement with respect to which Federal payments 
     are provided under section 474 (or section 403, as such 
     section was in effect on July 16, 1996), or in accordance 
     with a judicial determination to the effect that continuation 
     in the home would be contrary to the welfare of the child; 
     and
       ``(bb) met the requirements of section 472(a)(3) with 
     respect to the home referred to in item (aa) of this 
     subclause;
       ``(II) meets all of the requirements of title XVI with 
     respect to eligibility for supplemental security income 
     benefits; or
       ``(III) is a child whose costs in a foster family home or 
     child-care institution are covered by the foster care 
     maintenance payments being made with respect to the minor 
     parent of the child as provided in section 475(4)(B); and
       ``(ii) has been determined by the State, pursuant to 
     subsection (c) of this section, to be a child with special 
     needs.
       ``(B) Section 472(a)(4) shall apply for purposes of 
     subparagraph (A) of this paragraph, in any case in which the 
     child is an alien described in such section.
       ``(C) A child shall be treated as meeting the requirements 
     of this paragraph for the purpose of paragraph (1)(B)(ii) if 
     the child--
       ``(i) meets the requirements of subparagraph (A)(ii);
       ``(ii) was determined eligible for adoption assistance 
     payments under this part with respect to a prior adoption;
       ``(iii) is available for adoption because--
       ``(I) the prior adoption has been dissolved, and the 
     parental rights of the adoptive parents have been terminated; 
     or
       ``(II) the child's adoptive parents have died; and
       ``(iv) fails to meet the requirements of subparagraph (A) 
     but would meet such requirements if--
       ``(I) the child were treated as if the child were in the 
     same financial and other circumstances the child was in the 
     last time the child was determined eligible for adoption 
     assistance payments under this part; and
       ``(II) the prior adoption were treated as never having 
     occurred.''.

                Subtitle E--Supplemental Security Income

     SEC. 7501. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
                   DETERMINATIONS.

        Section 1633 (42 U.S.C. 1383b) is amended by adding at the 
     end the following:
       ``(e)(1) The Commissioner of Social Security shall review 
     determinations, made by State agencies pursuant to subsection 
     (a) in connection with applications for benefits under this 
     title on the basis of blindness or disability, that 
     individuals who have attained 18 years of age are blind or 
     disabled as of a specified onset date. The Commissioner of 
     Social Security shall review such a determination before any 
     action is taken to implement the determination.
       ``(2)(A) In carrying out paragraph (1), the Commissioner of 
     Social Security shall review--
       ``(i) at least 20 percent of all determinations referred to 
     in paragraph (1) that are made in fiscal year 2006;
       ``(ii) at least 40 percent of all such determinations that 
     are made in fiscal year 2007; and
       ``(iii) at least 50 percent of all such determinations that 
     are made in fiscal year 2008 or thereafter.
       ``(B) In carrying out subparagraph (A), the Commissioner of 
     Social Security shall, to the extent feasible, select for 
     review the determinations which the Commissioner of Social 
     Security identifies as being the most likely to be 
     incorrect.''.

     SEC. 7502. PAYMENT OF CERTAIN LUMP SUM BENEFITS IN 
                   INSTALLMENTS UNDER THE SUPPLEMENTAL SECURITY 
                   INCOME PROGRAM.

       (a) In General.--Section 1631(a)(10)(A)(i) (42 U.S.C. 
     1383(a)(10)(A)(i)) is amended by striking ``12'' and 
     inserting ``3''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect 3 months after the date of the enactment of 
     this Act.

       Subtitle F--Repeal of Continued Dumping and Subsidy Offset

     SEC. 7601. REPEAL OF CONTINUED DUMPING AND SUBSIDY OFFSET.

       (a) Repeal.--Effective upon the date of enactment of this 
     Act, section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c), 
     and the item relating to section 754 in the table of contents 
     for title VII of that Act, are repealed.
       (b) Distributions on Certain Entries.--All duties on 
     entries of goods made and filed before October 1, 2007, that 
     would, but for subsection (a) of this section, be distributed 
     under section 754 of the Tariff Act of 1930, shall be 
     distributed as if section 754 of the Tariff Act of 1930 had 
     not been repealed by subsection (a).

                       Subtitle G--Effective Date

     SEC. 7701. EFFECTIVE DATE.

       Except as otherwise provided in this title, this title and 
     the amendments made by this title shall take effect as if 
     enacted on October 1, 2005.

          TITLE VIII--EDUCATION AND PENSION BENEFIT PROVISIONS

                Subtitle A--Higher Education Provisions

     SEC. 8001. SHORT TITLE; REFERENCE; EFFECTIVE DATE.

       (a) Short Title.--This subtitle may be cited as the 
     ``Higher Education Reconciliation Act of 2005''.

[[Page 30872]]

       (b) References.--Except as otherwise expressly provided, 
     whenever in this subtitle 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 Higher Education Act of 
     1965 (20 U.S.C. 1001 et seq.).
       (c) Effective Date.--Except as otherwise provided in this 
     subtitle or the amendments made by this subtitle, the 
     amendments made by this subtitle shall be effective July 1, 
     2006.

     SEC. 8002. MODIFICATION OF 50/50 RULE.

       Section 102(a)(3) (20 U.S.C. 1002(a)(3)) is amended--
       (1) in subparagraph (A), by inserting ``(excluding courses 
     offered by telecommunications as defined in section 
     484(l)(4))'' after ``courses by correspondence''; and
       (2) in subparagraph (B), by inserting ``(excluding courses 
     offered by telecommunications as defined in section 
     484(l)(4))'' after ``correspondence courses''.

     SEC. 8003. ACADEMIC COMPETITIVENESS GRANTS.

       Subpart 1 of part A of title IV (20 U.S.C. 1070a) is 
     amended by adding after section 401 the following new 
     section:

     ``SEC. 401A. ACADEMIC COMPETITIVENESS GRANTS.

       ``(b) Academic Competitiveness Grant Program.--
       ``(1) Academic competitiveness grants authorized.--The 
     Secretary shall award grants, in the amounts specified in 
     subsection (e)(1), to eligible students to assist the 
     eligible students in paying their college education expenses.
       ``(2) Academic competitiveness council.--
       ``(A) Establishment.--There is established an Academic 
     Competitiveness Council (referred to in this paragraph as the 
     `Council'). From the funds made available under subsection 
     (f) for fiscal year 2006, $50,000 shall be available to the 
     Council to carry out the duties described in subparagraph 
     (B). The Council shall be chaired by the Secretary of 
     Education, and the membership of the Council shall consist of 
     officials from Federal agencies with responsibilities for 
     managing existing Federal programs that promote mathematics 
     and science (or designees of such officials with significant 
     decision-making authority).
       ``(B) Duties.--The Council shall--
       ``(i) identify all Federal programs with a mathematics or 
     science focus;
       ``(ii) identify the target populations being served by such 
     programs;
       ``(iii) determine the effectiveness of such programs;
       ``(iv) identify areas of overlap or duplication in such 
     programs; and
       ``(v) recommend ways to efficiently integrate and 
     coordinate such programs.
       ``(C) Report.--Not later than one year after the date of 
     enactment of the Higher Education Reconciliation Act of 2005, 
     the Council shall transmit a report to each committee of 
     Congress with jurisdiction over a Federal program identified 
     under subparagraph (B)(i), detailing the findings and 
     recommendations under subparagraph (B), including 
     recommendations for legislative or administrative action.
       ``(c) Designation.--A grant under this section--
       ``(1) for the first or second academic year of a program of 
     undergraduate education shall be known as an `Academic 
     Competitiveness Grant'; and
       ``(2) for the third or fourth academic year of a program of 
     undergraduate education shall be known as a `National Science 
     and Mathematics Access to Retain Talent Grant' or a `National 
     SMART Grant'.
       ``(d) Definition of Eligible Student.--In this section the 
     term `eligible student' means a full-time student who, for 
     the academic year for which the determination of eligibility 
     is made--
       ``(1) is a citizen of the United States;
       ``(2) is eligible for a Federal Pell Grant; and
       ``(3) in the case of a student enrolled or accepted for 
     enrollment in--
       ``(A) the first academic year of a program of undergraduate 
     education at a two- or four-year degree-granting institution 
     of higher education--
       ``(i) has successfully completed, after January 1, 2006, a 
     rigorous secondary school program of study established by a 
     State or local educational agency and recognized as such by 
     the Secretary; and
       ``(ii) has not been previously enrolled in a program of 
     undergraduate education;
       ``(B) the second academic year of a program of 
     undergraduate education at a two- or four-year degree-
     granting institution of higher education--
       ``(i) has successfully completed, after January 1, 2005, a 
     rigorous secondary school program of study established by a 
     State or local educational agency and recognized as such by 
     the Secretary; and
       ``(ii) has obtained a cummulative grade point average of at 
     least 3.0 (or the equivalent as determined under regulations 
     prescribed by the Secretary) at the end of the first academic 
     year of such program of undergraduate education; or
       ``(C) the third or fourth academic year of a program of 
     undergraduate education at a four-year degree-granting 
     institution of higher education--
       ``(i) is pursuing a major in--

       ``(I) the physical, life, or computer sciences, 
     mathematics, technology, or engineering (as determined by the 
     Secretary pursuant to regulations); or
       ``(II) a foreign language that the Secretary, in 
     consultation with the Director of National Intelligence, 
     determines is critical to the national security of the United 
     States; and

       ``(ii) has obtained a cummulative grade point average of at 
     least 3.0 (or the equivalent as determined under regulations 
     prescribed by the Secretary) in the coursework required for 
     the major described in clause (i).
       ``(e) Grant Award.--
       ``(1) Amounts.--
       ``(A) The Secretary shall award a grant under this section 
     in the amount of--
       ``(i) $750 for an eligible student under subsection 
     (d)(3)(A);
       ``(ii) $1,300 for an eligible student under subsection 
     (d)(3)(B); or
       ``(iii) $4,000 for an eligible student under subsection 
     (d)(3)(C).
       ``(B) Notwithstanding subparagraph (A)--
       ``(i) the amount of such grant, in combination with the 
     Federal Pell Grant assistance and other student financial 
     assistance available to such student, shall not exceed the 
     student's cost of attendance;
       ``(ii) if the amount made available under subsection (f) 
     for any fiscal year is less than the amount required to be 
     provide grants to all eligible students in the amounts 
     determined under subparagraph (A) and clause (i) of this 
     subparagraph, then the amount of the grant to each eligible 
     student shall be ratably reduced; and
       ``(iii) if additional amounts are appropriated for any such 
     fiscal year, such reduced amounts shall be increased on the 
     same basis as they were reduced.
       ``(2) Limitations.--The Secretary shall not award a grant 
     under this section--
       ``(A) to any student for an academic year of a program of 
     undergraduate education described in subparagraph (A), (B), 
     or (C) of subsection (d)(3) for which the student received 
     credit before the date of enactment of the Higher Education 
     Reconciliation Act of 2005; or
       ``(B) to any student for more than--
       ``(i) one academic year under subsection (d)(3)(A);
       ``(ii) one academic year under subsection (d)(3)(B); or
       ``(iii) two academic years under subsection (d)(3)(C).
       ``(f) Funding.--
       ``(1) Authorization and appropriation of funds.--There are 
     authorized to be appropriated, and there are appropriated, 
     out of any money in the Treasury not otherwise appropriated, 
     for the Department of Education to carry out this section--
       ``(A) $790,000,000 for fiscal year 2006;
       ``(B) $850,000,000 for fiscal year 2007;
       ``(C) $920,000,000 for fiscal year 2008;
       ``(D) $960,000,000 for fiscal year 2009; and
       ``(E) $1,010,000,000 for fiscal year 2010.
       ``(2) Use of excess funds.--If, at the end of a fiscal 
     year, the funds available for awarding grants under this 
     section exceed the amount necessary to make such grants in 
     the amounts authorized by subsection (e), then all of the 
     excess funds shall remain available for awarding grants under 
     this section during the subsequent fiscal year.
       ``(g) Recognition of Programs of Study.--The Secretary 
     shall recognize at least one rigorous secondary school 
     program of study in each State under subsection (d)(3)(A) and 
     (B) for the purpose of determining student eligibility under 
     such subsection.
       ``(h) Sunset Provision.--The authority to make grants under 
     this section shall expire at the end of academic year 2010-
     2011.''.

     SEC. 8004. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN 
                   PROGRAM.

       (a) Authorization of Appropriations.--Section 421(b)(5) (20 
     U.S.C. 1071(b)(5)) is amended by striking ``an administrative 
     cost allowance'' and inserting ``a loan processing and 
     issuance fee''.
       (b) Extension of Authority.--
       (1) Federal insurance limitations.--Section 424(a) (20 
     U.S.C. 1074(a)) is amended--
       (A) by striking ``2004'' and inserting ``2012''; and
       (B) by striking ``2008'' and inserting ``2016''.
       (2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C. 
     1078(a)(5)) is amended--
       (A) by striking ``2004'' and inserting ``2012''; and
       (B) by striking ``2008'' and inserting ``2016''.
       (3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
     3(e)) is amended by striking ``2004'' and inserting ``2012''.

     SEC. 8005. LOAN LIMITS.

       (a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 
     U.S.C. 1075(a)(1)(A)) is amended--
       (1) in clause (i)(I), by striking ``$2,625'' and inserting 
     ``$3,500''; and
       (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
     ``$4,500''.
       (b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C. 
     1078(b)(1)(A)) is amended--
       (1) in clause (i)(I), by striking ``$2,625'' and inserting 
     ``$3,500''; and
       (2) in clause (ii)(I), by striking ``$3,500'' and inserting 
     ``$4,500''.
       (c) Federal PLUS Loans.--Section 428B (20 U.S.C. 1078-2) is 
     amended--
       (1) in subsection (a)(1)--

[[Page 30873]]

       (A) in the matter preceding subparagraph (A), by striking 
     ``Parents'' and inserting ``A graduate or professional 
     student or the parents'';
       (B) in subparagraph (A), by striking ``the parents'' and 
     inserting ``the graduate or professional student or the 
     parents''; and
       (C) in subparagraph (B), by striking ``the parents'' and 
     inserting ``the graduate or professional student or the 
     parents'';
       (2) in subsection (b), by striking ``any parent'' and 
     inserting ``any graduate or professional student or any 
     parent'';
       (3) in subsection (c)(2), by striking ``parent'' and 
     inserting ``graduate or professional student or parent''; and
       (4) in subsection (d)(1), by striking ``the parent'' and 
     inserting ``the graduate or professional student or the 
     parent''.
       (d) Unsubsidized Stafford Loans for Graduate or 
     Professional Students.--Section 428H(d)(2) (20 U.S.C. 1078-
     8(d)(2)) is amended--
       (1) in subparagraph (C), by striking ``$10,000'' and 
     inserting ``$12,000''; and
       (2) in subparagraph (D)--
       (A) in clause (i), by striking ``$5,000'' and inserting 
     ``$7,000''; and
       (B) in clause (ii), by striking ``$5,000'' and inserting 
     ``$7,000''.
       (e) Effective Date of Increases.--The amendments made by 
     subsections subsections (a), (b), and (d) shall be effective 
     July 1, 2007.

     SEC. 8006. PLUS LOAN INTEREST RATES AND ZERO SPECIAL 
                   ALLOWANCE PAYMENT.

       (a) PLUS Loans.--Section 427A(l)(2) (20 U.S.C. 1077a(l)(2)) 
     is amended by striking ``7.9 percent'' and inserting ``8.5 
     percent''.
       (b) Conforming Amendments for Special Allowances.--
       (1) Amendments.--Subparagraph (I) of section 438(b)(2) (20 
     U.S.C. 1087-1(b)(2)) is amended--
       (A) in clause (iii), by striking ``, subject to clause (v) 
     of this subparagraph'';
       (B) in clause (iv), by striking ``, subject to clause (vi) 
     of this subparagraph''; and
       (C) by striking clauses (v), (vi), and (vii) and inserting 
     the following:
       ``(v) Recapture of excess interest.--

       ``(I) Excess credited.--With respect to a loan on which the 
     applicable interest rate is determined under subsection (k) 
     or (l) of section 427A and for which the first disbursement 
     of principal is made on or after April 1, 2006, if the 
     applicable interest rate for any 3-month period exceeds the 
     special allowance support level applicable to such loan under 
     this subparagraph for such period, then an adjustment shall 
     be made by calculating the excess interest in the amount 
     computed under subclause (II) of this clause, and by 
     crediting the excess interest to the Government not less 
     often than annually.
       ``(II) Calculation of excess.--The amount of any adjustment 
     of interest on a loan to be made under this subsection for 
     any quarter shall be equal to--

       ``(aa) the applicable interest rate minus the special 
     allowance support level determined under this subparagraph; 
     multiplied by
       ``(bb) the average daily principal balance of the loan (not 
     including unearned interest added to principal) during such 
     calendar quarter; divided by
       ``(cc) four.

       ``(III) Special allowance support level.--For purposes of 
     this clause, the term `special allowance support level' 
     means, for any loan, a number expressed as a percentage equal 
     to the sum of the rates determined under subclauses (I) and 
     (III) of clause (i), and applying any substitution rules 
     applicable to such loan under clauses (ii), (iii), and (iv) 
     in determining such sum.''.

       (2) Effective date.--The amendments made by this subsection 
     shall not apply with respect to any special allowance payment 
     made under section 438 of the Higher Education Act of 1965 
     (20 U.S.C 1087-1) before April 1, 2006.

     SEC. 8007. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.

       (a) Federal Family Education Loans.--Section 428(b)(1)(M) 
     (20 U.S.C. 1078(b)(1)(M)) is amended--
       (1) by striking ``or'' at the end of clause (ii);
       (2) by redesignating clause (iii) as clause (iv); and
       (3) by inserting after clause (ii) the following new 
     clause:
       ``(iii) not in excess of 3 years during which the 
     borrower--

       ``(I) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(II) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency; 
     or''.

       (b) Direct Loans.--Section 455(f)(2) (20 U.S.C. 
     1087e(f)(2)) is amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) not in excess of 3 years during which the borrower--
       ``(i) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(ii) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency; 
     or''.
       (c) Perkins Loans.--Section 464(c)(2)(A) (20 U.S.C. 
     1087dd(c)(2)(A)) is amended--
       (1) by redesignating clauses (iii) and (iv) as clauses (iv) 
     and (v), respectively; and
       (2) by inserting after clause (ii) the following new 
     clause:
       ``(iii) not in excess of 3 years during which the 
     borrower--

       ``(I) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(II) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency;''.

       (d) Definitions.--Section 481 (20 U.S.C. 1088) is amended 
     by adding at the end the following new subsection:
       ``(d) Definitions for Military Deferments.--For purposes of 
     parts B, D, and E of this title:
       ``(1) Active duty.--The term `active duty' has the meaning 
     given such term in section 101(d)(1) of title 10, United 
     States Code, except that such term does not include active 
     duty for training or attendance at a service school.
       ``(2) Military operation.--The term `military operation' 
     means a contingency operation as such term is defined in 
     section 101(a)(13) of title 10, United States Code.
       ``(3) National emergency.--The term `national emergency' 
     means the national emergency by reason of certain terrorist 
     attacks declared by the President on September 14, 2001, or 
     subsequent national emergencies declared by the President by 
     reason of terrorist attacks.
       ``(4) Serving on active duty.--The term `serving on active 
     duty during a war or other military operation or national 
     emergency' means service by an individual who is--
       ``(A) a Reserve of an Armed Force ordered to active duty 
     under section 12301(a), 12301(g), 12302, 12304, or 12306 of 
     title 10, United States Code, or any retired member of an 
     Armed Force ordered to active duty under section 688 of such 
     title, for service in connection with a war or other military 
     operation or national emergency, regardless of the location 
     at which such active duty service is performed; and
       ``(B) any other member of an Armed Force on active duty in 
     connection with such emergency or subsequent actions or 
     conditions who has been assigned to a duty station at a 
     location other than the location at which such member is 
     normally assigned.
       ``(5) Qualifying national guard duty.--The term `qualifying 
     National Guard duty during a war or other military operation 
     or national emergency' means service as a member of the 
     National Guard on full-time National Guard duty (as defined 
     in section 101(d)(5) of title 10, United States Code) under a 
     call to active service authorized by the President or the 
     Secretary of Defense for a period of more than 30 consecutive 
     days under section 502(f) of title 32, United States Code, in 
     connection with a war, other military operation, or a 
     national emergency declared by the President and supported by 
     Federal funds.''.
       (e) Rule of Construction.--Nothing in the amendments made 
     by this section shall be construed to authorize any refunding 
     of any repayment of a loan.
       (f) Effective Date.--The amendments made by this section 
     shall apply with respect to loans for which the first 
     disbursement is made on or after July 1, 2001.

     SEC. 8008. ADDITIONAL LOAN TERMS AND CONDITIONS.

       (a) Disbursement.--Section 428(b)(1)(N) (20 U.S.C. 
     1078(b)(1)(N)) is amended--
       (1) by striking ``or'' at the end of clause (i); and
       (2) by striking clause (ii) and inserting the following:
       ``(ii) in the case of a student who is studying outside the 
     United States in a program of study abroad that is approved 
     for credit by the home institution at which such student is 
     enrolled, and only after verification of the student's 
     enrollment by the lender or guaranty agency, are, at the 
     request of the student, disbursed directly to the student by 
     the means described in clause (i), unless such student 
     requests that the check be endorsed, or the funds transfer be 
     authorized, pursuant to an authorized power-of-attorney; or
       ``(iii) in the case of a student who is studying outside 
     the United States in a program of study at an eligible 
     foreign institution, are, at the request of the foreign 
     institution, disbursed directly to the student, only after 
     verification of the student's enrollment by the lender or 
     guaranty agency by the means described in clause (i).''.
       (b) Repayment Plans: Direct Loans.--Section 455(d)(1) (20 
     U.S.C. 1087e(d)(1)) is amended by striking subparagraphs (A), 
     (B), and (C) and inserting the following:
       ``(A) a standard repayment plan, consistent with subsection 
     (a)(1) of this section and with section 428(b)(9)(A)(i);
       ``(B) a graduated repayment plan, consistent with section 
     428(b)(9)(A)(ii);
       ``(C) an extended repayment plan, consistent with section 
     428(b)(9)(A)(v), except that the borrower shall annually 
     repay a minimum amount determined by the Secretary in 
     accordance with section 428(b)(1)(L); and''.
       (c) Origination Fees.--
       (1) FFEL program.--Paragraph (2) of section 438(c) (20 
     U.S.C. 1087-1(c)) is amended--

[[Page 30874]]

       (A) by striking the designation and heading of such 
     paragraph and inserting the following:
       ``(2) Amount of origination fees.--
       ``(A) In general.--''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) Subsequent reductions.--Subparagraph (A) shall be 
     applied to loans made under this part (other than loans made 
     under sections 428C and 439(o))--
       ``(i) by substituting `2.0 percent' for `3.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2006, and before July 
     1, 2007;
       ``(ii) by substituting `1.5 percent' for `3.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2007, and before July 
     1, 2008;
       ``(iii) by substituting `1.0 percent' for `3.0 percent' 
     with respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2008, and before July 
     1, 2009;
       ``(iv) by substituting `0.5 percent' for `3.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2009, and before July 
     1, 2010; and
       ``(v) by substituting `0.0 percent' for `3.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2010.''.
       (2) Direct loan program.--Subsection (c) of section 455 (20 
     U.S.C. 1087e(c)) is amended--
       (A) by striking ``(c) Loan Fee.--'' and inserting the 
     following:
       ``(c) Loan Fee.--
       ``(1) In general.--''; and
       (B) by adding at the end the following:
       ``(2) Subsequent reduction.--Paragraph (1) shall be applied 
     to loans made under this part, other than Federal Direct 
     Consolidation loans and Federal Direct PLUS loans--
       ``(A) by substituting `3.0 percent' for `4.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after the date of enactment of the 
     Higher Education Reconciliation Act of 2005, and before July 
     1, 2007;
       ``(B) by substituting `2.5 percent' for `4.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2007, and before July 
     1, 2008;
       ``(C) by substituting `2.0 percent' for `4.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2008, and before July 
     1, 2009;
       ``(D) by substituting `1.5 percent' for `4.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2009, and before July 
     1, 2010; and
       ``(E) by substituting `1.0 percent' for `4.0 percent' with 
     respect to loans for which the first disbursement of 
     principal is made on or after July 1, 2010.''.
       (3) Conforming amendment.--Section 455(b)(8)(A) (20 U.S.C. 
     1087e(b)(8)(A)) is amended by inserting ``or origination 
     fee'' after ``reductions in the interest rate''.

     SEC. 8009. CONSOLIDATION LOAN CHANGES.

       (a) Consolidation Between Programs.--Section 428C (20 
     U.S.C. 1078-3) is amended--
       (1) in subsection (a)(3)(B)(i)--
       (A) by inserting ``or under section 455(g)'' after ``under 
     this section'' both places it appears;
       (B) by inserting ``under both sections'' after 
     ``terminates''
       (C) by striking ``and'' at the end of subclause (III);
       (D) by striking the period at the end of subclause (IV) and 
     inserting ``; and''; and
       (E) by adding at the end the following new subclause:
       ``(V) an individual may obtain a subsequent consolidation 
     loan under section 455(g) only for the purposes of obtaining 
     an income contingent repayment plan, and only if the loan has 
     been submitted to the guaranty agency for default 
     aversion.''; and
       (2) in subsection (b)(5), by striking the first sentence 
     and inserting the following: ``In the event that a lender 
     with an agreement under subsection (a)(1) of this section 
     denies a consolidation loan application submitted to the 
     lender by an eligible borrower under this section, or denies 
     an application submitted to the lender by such a borrower for 
     a consolidation loan with income-sensitive repayment terms, 
     the Secretary shall offer any such borrower who applies for 
     it, a Federal Direct Consolidation loan. The Secretary shall 
     offer such a loan to a borrower who has defaulted, for the 
     purpose of resolving the default.''.
       (b) Repeal of in-School Consolidation.--
       (1) Definition of repayment period.--Section 428(b)(7)(A) 
     (20 U.S.C. 1078(b)(7)(A)) is amended by striking ``shall 
     begin--'' and all that follows through ``earlier date.'' and 
     inserting the following: ``shall begin the day after 6 months 
     after the date the student ceases to carry at least one-half 
     the normal full-time academic workload (as determined by the 
     institution).''.
       (2) Conforming change to eligible borrower definition.--
     Section 428C(a)(3)(A)(ii)(I) (20 U.S.C. 1078-
     3(a)(3)(A)(ii)(I)) is amended by inserting ``as determined 
     under section 428(b)(7)(A)'' after ``repayment status''.
       (c) Additional Amendments.--Section 428C (20 U.S.C. 1078-3) 
     is amended in subsection (a)(3), by striking subparagraph 
     (C).
       (d) Conforming Amendments to Direct Loan Program.--Section 
     455 (20 U.S.C. 1087e) is amended
       (1) in subsection (a)(1) by inserting ``428C,'' after 
     ``428B,'';
       (2) in subsection (a)(2)--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) section 428C shall be known as `Federal Direct 
     Consolidation Loans'; and ''; and
       (3) in subsection (g)--
       (A) by striking the second sentence; and
       (B) by adding at the end the following new sentences: ``To 
     be eligible for a consolidation loan under this part, a 
     borrower shall meet the eligibility criteria set forth in 
     section 428C(a)(3). The Secretary, upon application for such 
     a loan, shall comply with the requirements applicable to a 
     lender under section 428C(b)(1)(F).''.

     SEC. 8010. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.

       Section 428G (20 U.S.C. 1078-7) is amended--
       (1) in subsection (a)(3), by adding at the end the 
     following: ``Notwithstanding section 422(d) of the Higher 
     Education Amendments of 1998, this paragraph shall be 
     effective beginning on the date of enactment of the Higher 
     Education Reconciliation Act of 2005.'';
       (2) in subsection (b)(1), by adding at the end the 
     following: ``Notwithstanding section 422(d) of the Higher 
     Education Amendments of 1998, the second sentence of this 
     paragraph shall be effective beginning on the date of 
     enactment of the Higher Education Reconciliation Act of 
     2005.''; and
       (3) in subsection (e), by striking ``, made to a student to 
     cover the cost of attendance at an eligible institution 
     outside the United States''.

     SEC. 8012. SCHOOL AS LENDER.

       Paragraph (2) of section 435(d) (20 U.S.C. 1085(d)(2)) is 
     amended to read as follows:
       ``(2) Requirements for eligible institutions.--
       ``(A) In general.--To be an eligible lender under this 
     part, an eligible institution--
       ``(i) shall employ at least one person whose full-time 
     responsibilities are limited to the administration of 
     programs of financial aid for students attending such 
     institution;
       ``(ii) shall not be a home study school;
       ``(iii) shall not--

       ``(I) make a loan to any undergraduate student;
       ``(II) make a loan other than a loan under section 428 or 
     428H to a graduate or professional student; or
       ``(III) make a loan to a borrower who is not enrolled at 
     that institution;

       ``(iv) shall award any contract for financing, servicing, 
     or administration of loans under this title on a competitive 
     basis;
       ``(v) shall offer loans that carry an origination fee or an 
     interest rate, or both, that are less than such fee or rate 
     authorized under the provisions of this title;
       ``(vi) shall not have a cohort default rate (as defined in 
     section 435(m)) greater than 10 percent;
       ``(vii) shall, for any year for which the institution 
     engages in activities as an eligible lender, provide for a 
     compliance audit conducted in accordance with section 
     428(b)(1)(U)(iii)(I), and the regulations thereunder, and 
     submit the results of such audit to the Secretary;
       ``(viii) shall use any proceeds from special allowance 
     payments and interest payments from borrowers, interest 
     subsidies received from the Department of Education, and any 
     proceeds from the sale or other disposition of loans, for 
     need-based grant programs; and
       ``(ix) shall have met the requirements of subparagraphs (A) 
     through (F) of this paragraph as in effect on the day before 
     the date of enactment of the Higher Education Reconciliation 
     Act of 2005, and made loans under this part, on or before 
     April 1, 2006.
       ``(B) Administrative expenses.--An eligible lender under 
     subparagraph (A) shall be permitted to use a portion of the 
     proceeds described in subparagraph (A)(viii) for reasonable 
     and direct administrative expenses.
       ``(C) Supplement, not supplant.--An eligible lender under 
     subparagraph (A) shall ensure that the proceeds described in 
     subparagraph (A)(viii) are used to supplement, and not to 
     supplant, non-Federal funds that would otherwise be used for 
     need-based grant programs.''.

     SEC. 8013. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, 
                   DECEASED, OR DISABLED BORROWERS; TREATMENT OF 
                   BORROWERS ATTENDING SCHOOLS THAT FAIL TO 
                   PROVIDE A REFUND, ATTENDING CLOSED SCHOOLS, OR 
                   FALSELY CERTIFIED AS ELIGIBLE TO BORROW.

       Section 437 (20 U.S.C. 1087) is amended--
       (1) in the section heading, by striking ``CLOSED SCHOOLS OR 
     FALSELY CERTIFIED AS ELIGIBLE TO BORROW'' and inserting 
     ``SCHOOLS THAT FAIL TO PROVIDE A REFUND, ATTENDING CLOSED 
     SCHOOLS, OR FALSELY CERTIFIED AS ELIGIBLE TO BORROW''; and
       (2) in the first sentence of subsection (c)(1), by 
     inserting ``or was falsely certified as a result of a crime 
     of identity theft'' after ``falsely certified by the eligible 
     institution''.

[[Page 30875]]



     SEC. 8014. ELIMINATION OF TERMINATION DATES FROM TAXPAYER-
                   TEACHER PROTECTION ACT OF 2004.

       (a) Extension of Limitations on Special Allowance for Loans 
     From the Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) 
     (20 U.S.C. 1087-1(b)(2)(B)) is amended--
       (1) in clause (iv), by striking ``and before January 1, 
     2006,''; and
       (2) in clause (v)(II)--
       (A) by striking ``and before January 1, 2006,'' each place 
     it appears in divisions (aa) and (bb); and
       (B) by striking ``, and before January 1, 2006'' in 
     division (cc).
       (b) Additional Limitation on Special Allowance for Loans 
     From the Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) 
     (20 U.S.C 1087-1(b)(2)(B)) is further amended by adding at 
     the end thereof the following new clauses:
       ``(vi) Notwithstanding clauses (i), (ii), and (v), but 
     subject to clause (vii), the quarterly rate of the special 
     allowance shall be the rate determined under subparagraph 
     (A), (E), (F), (G), (H), or (I) of this paragraph, as the 
     case may be, for a holder of loans--
       ``(I) that were made or purchased on or after the date of 
     enactment of the Higher Education Reconciliation Act of 2005; 
     or
       ``(II) that were not earning a quarterly rate of special 
     allowance determined under clauses (i) or (ii) of 
     subparagraph (B) of this paragraph (20 U.S.C. 1087-
     1(b)(2)(b)) as of the date of enactment of the Higher 
     Education Reconciliation Act of 2005.
       ``(vii) Clause (vi) shall be applied by substituting 
     `December 31, 2010' for `the date of enactment of the Higher 
     Education Reconciliation Act of 2005' in the case of a holder 
     of loans that--
       ``(I) was, as of the date of enactment of the Higher 
     Education Reconciliation Act of 2005, and during the quarter 
     for which the special allowance is paid, a unit of State or 
     local government or a nonprofit private entity;
       ``(II) was, as of such date of enactment, and during such 
     quarter, not owned or controlled by, or under common 
     ownership or control with, a for-profit entity; and
       ``(III) held, directly or through any subsidiary, 
     affiliate, or trustee, a total unpaid balance of principal 
     equal to or less than $100,000,000 on loans for which special 
     allowances were paid under this subparagraph in the most 
     recent quarterly payment prior to September 30, 2005.''.
       (c) Elimination of Effective Date Limitation on Higher 
     Teacher Loan Forgiveness Benefits.--
       (1) Technical clarification.--The matter preceding 
     paragraph (1) of section 2 of the Taxpayer-Teacher Protection 
     Act of 2004 (Public Law 108-409; 118 Stat. 2299) is amended 
     by inserting ``of the Higher Education Act of 1965'' after 
     ``Section 438(b)(2)(B)''.
       (2) Amendment.--Paragraph (3) of section 3(b) of the 
     Taxpayer-Teacher Protection Act of 2004 (20 U.S.C. 1078-10 
     note) is amended by striking ``, and before October 1, 
     2005''.
       (3) Effective dates.--The amendment made by paragraph (1) 
     shall be effective as if enacted on October 30, 2004, and the 
     amendment made by paragraph (2) shall be effective as if 
     enacted on October 1, 2005.
       (d) Coordination With Second Higher Education Extension Act 
     of 2005.--
       (1) Repeal.--Section 2 of the Second Higher Education 
     Extension Act of 2005 is amended by striking subsections (b) 
     and (c).
       (2) Effect on amendments.--The amendments made by 
     subsections (a) and (c) of this section shall be effective as 
     if the amendments made subsections (b) and (c) of section 2 
     of the Second Higher Education Extension Act of 2005 had not 
     been enacted.
       (e) Additional Changes to Teacher Loan Forgiveness 
     Provisions.--
       (1) FFEL provisions.--Section 428J (20 U.S.C. 1078-10) is 
     amended--
       (A) in subsection (b)(1)(B), by inserting after ``1965'' 
     the following: ``, or meets the requirements of subsection 
     (g)(3)''; and
       (B) in subsection (g), by adding at the end the following 
     new paragraph:
       ``(3) Private school teachers.--An individual who is 
     employed as a teacher in a private school and is exempt from 
     State certification requirements (unless otherwise applicable 
     under State law), may, in lieu of the requirement of 
     subsection (b)(1)(B), have such employment treated as 
     qualifying employment under this section if such individual 
     is permitted to and does satisfy rigorous subject knowledge 
     and skills tests by taking competency tests in the applicable 
     grade levels and subject areas. For such purposes, the 
     competency tests taken by such a private school teacher shall 
     be recognized by 5 or more States for the purpose of 
     fulfilling the highly qualified teacher requirements under 
     section 9101 of the Elementary and Secondary Education Act of 
     1965, and the score achieved by such teacher on each test 
     shall equal or exceed the average passing score of those 5 
     States.''.
       (2) Direct loan provisions.--Section 460 (20 U.S.C. 1087j) 
     is amended--
       (A) in subsection (b)(1)(A)(ii), by inserting after 
     ``1965'' the following: ``, or meets the requirements of 
     subsection (g)(3)''; and
       (B) in subsection (g), by adding at the end the following 
     new paragraph:
       ``(3) Private school teachers.--An individual who is 
     employed as a teacher in a private school and is exempt from 
     State certification requirements (unless otherwise applicable 
     under State law), may, in lieu of the requirement of 
     subsection (b)(1)(A)(ii), have such employment treated as 
     qualifying employment under this section if such individual 
     is permitted to and does satisfy rigorous subject knowledge 
     and skills tests by taking competency tests in the applicable 
     grade levels and subject areas. For such purposes, the 
     competency tests taken by such a private school teacher shall 
     be recognized by 5 or more States for the purpose of 
     fulfilling the highly qualified teacher requirements under 
     section 9101 of the Elementary and Secondary Education Act of 
     1965, and the score achieved by such teacher on each test 
     shall equal or exceed the average passing score of those 5 
     States.''.

     SEC. 8015. ADDITIONAL ADMINISTRATIVE PROVISIONS.

       (a) Insurance Percentage.--
       (1) Amendment.--Subparagraph (G) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)(G)) is amended to read as follows:
       ``(G) insures 98 percent of the unpaid principal of loans 
     insured under the program, except that--
       ``(i) such program shall insure 100 percent of the unpaid 
     principal of loans made with funds advanced pursuant to 
     section 428(j) or 439(q);
       ``(ii) for any loan for which the first disbursement of 
     principal is made on or after July 1, 2006, the preceding 
     provisions of this subparagraph shall be applied by 
     substituting `97 percent' for `98 percent'; and
       ``(iii) notwithstanding the preceding provisions of this 
     subparagraph, such program shall insure 100 percent of the 
     unpaid principal amount of exempt claims as defined in 
     subsection (c)(1)(G);''.
       (2) Effective date of amendment.--The amendment made by 
     this subsection shall apply with respect to loans for which 
     the first disbursement of principal is made on or after July 
     1, 2006.
       (b) Federal Default Fees.--
       (1) In general.--Subparagraph (H) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)(H)) is amended to read as follows:
       ``(H) provides--
       ``(i) for loans for which the date of guarantee of 
     principal is before July, 1, 2006, for the collection of a 
     single insurance premium equal to not more than 1.0 percent 
     of the principal amount of the loan, by deduction 
     proportionately from each installment payment of the proceeds 
     of the loan to the borrower, and ensures that the proceeds of 
     the premium will not be used for incentive payments to 
     lenders; or
       ``(ii) for loans for which the date of guarantee of 
     principal is on or after July 1, 2006, for the collection, 
     and the deposit into the Federal Student Loan Reserve Fund 
     under section 422A of a Federal default fee of an amount 
     equal to 1.0 percent of the principal amount of the loan, 
     which fee shall be collected either by deduction from the 
     proceeds of the loan or by payment from other non-Federal 
     sources, and ensures that the proceeds of the Federal default 
     fee will not be used for incentive payments to lenders;''.
       (2) Unsubsidized loans.--Section 428H(h) (20 U.S.C. 1078-
     8(h)) is amended by adding at the end the following new 
     sentences: ``Effective for loans for which the date of 
     guarantee of principal is on or after July 1, 2006, in lieu 
     of the insurance premium authorized under the preceding 
     sentence, each State or nonprofit private institution or 
     organization having an agreement with the Secretary under 
     section 428(b)(1) shall collect and deposit into the Federal 
     Student Loan Reserve Fund under section 422A, a Federal 
     default fee of an amount equal to 1.0 percent of the 
     principal amount of the loan, which fee shall be collected 
     either by deduction from the proceeds of the loan or by 
     payment from other non-Federal sources. The Federal default 
     fee shall not be used for incentive payments to lenders.''.
       (3) Voluntary flexible agreements.--Section 428A(a)(1) (20 
     U.S.C. 1078-1(a)(1)) is amended--
       (A) by striking ``or'' at the end of subparagraph (A);
       (B) by striking the period at the end of subparagraph (B) 
     and inserting ``; or''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) the Federal default fee required by section 
     428(b)(1)(H) and the second sentence of section 428H(h).''.
       (c) Treatment of Exempt Claims.--
       (1) Amendment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is 
     amended--
       (A) by redesignating subparagraph (G) as subparagraph (H), 
     and moving such subparagraph 2 em spaces to the left; and
       (B) by inserting after subparagraph (F) the following new 
     subparagraph:
       ``(G)(i) Notwithstanding any other provisions of this 
     section, in the case of exempt claims, the Secretary shall 
     apply the provisions of--
       ``(I) the fourth sentence of subparagraph (A) by 
     substituting `100 percent' for `95 percent';
       ``(II) subparagraph (B)(i) by substituting `100 percent' 
     for `85 percent'; and
       ``(III) subparagraph (B)(ii) by substituting `100 percent' 
     for `75 percent'.
       ``(ii) For purposes of clause (i) of this subparagraph, the 
     term `exempt claims' means claims with respect to loans for 
     which it is determined that the borrower (or the student

[[Page 30876]]

     on whose behalf a parent has borrowed), without the lender's 
     or the institution's knowledge at the time the loan was made, 
     provided false or erroneous information or took actions that 
     caused the borrower or the student to be ineligible for all 
     or a portion of the loan or for interest benefits thereon.''.
       (2) Effective date of amendments.--The amendments made by 
     this subsection shall apply with respect to loans for which 
     the first disbursement of principal is made on or after July 
     1, 2006.
       (d) Consolidation of Defaulted Loans.--Section 428(c) (20 
     U.S.C. 1078(c)) is further amended--
       (1) in paragraph (2)(A)--
       (A) by inserting ``(i)'' after ``including''; and
       (B) by inserting before the semicolon at the end the 
     following: ``and (ii) requirements establishing procedures to 
     preclude consolidation lending from being an excessive 
     proportion of guaranty agency recoveries on defaulted loans 
     under this part'';
       (2) in paragraph (2)(D), by striking ``paragraph (6)'' and 
     inserting ``paragraph (6)(A)''; and
       (3) in paragraph (6)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by inserting ``(A)'' before ``For the purpose of 
     paragraph (2)(D),''; and
       (C) by adding at the end the following new subparagraphs:
       ``(B) A guaranty agency shall--
       ``(i) on or after October 1, 2006--
       ``(I) not charge the borrower collection costs in an amount 
     in excess of 18.5 percent of the outstanding principal and 
     interest of a defaulted loan that is paid off through 
     consolidation by the borrower under this title; and
       ``(II) remit to the Secretary a portion of the collection 
     charge under subclause (I) equal to 8.5 percent of the 
     outstanding principal and interest of such defaulted loan; 
     and
       ``(ii) on and after October 1, 2009, remit to the Secretary 
     the entire amount charged under clause (i)(I) with respect to 
     each defaulted loan that is paid off with excess 
     consolidation proceeds.
       ``(C) For purposes of subparagraph (B), the term `excess 
     consolidation proceeds' means, with respect to any guaranty 
     agency for any Federal fiscal year beginning on or after 
     October 1, 2009, the proceeds of consolidation of defaulted 
     loans under this title that exceed 45 percent of the agency's 
     total collections on defaulted loans in such Federal fiscal 
     year.''.
       (e) Documentation of Forbearance Agreements.--Section 
     428(c) (20 U.S.C. 1078(c)) is further amended--
       (1) in paragraph (3)(A)(i)--
       (A) by striking ``in writing''; and
       (B) by inserting ``and documented in accordance with 
     paragraph (10)'' after ``approval of the insurer''; and
       (2) by adding at the end the following new paragraph:
       ``(10) Documentation of forbearance agreements.--For the 
     purposes of paragraph (3), the terms of forbearance agreed to 
     by the parties shall be documented by confirming the 
     agreement of the borrower by notice to the borrower from the 
     lender, and by recording the terms in the borrower's file.''.
       (f) Voluntary Flexible Agreements.--Section 428A(a) (20 
     U.S.C. 1078-1(a)) is further amended--
       (1) in paragraph (1)(B), by striking ``unless the 
     Secretary'' and all that follows through ``designated 
     guarantor'';
       (2) by striking paragraph (2);
       (3) by redesignating paragraph (3) as paragraph (2); and
       (4) by striking paragraph (4).
       (g) Fraud: Repayment Required.--Section 428B(a)(1) (20 
     U.S.C. 1078-2(a)(1)) is further amended--
       (1) by striking ``and'' at the end of subparagraph (A);
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) in the case of a graduate or professional student or 
     parent who has been convicted of, or has pled nolo contendere 
     or guilty to, a crime involving fraud in obtaining funds 
     under this title, such graduate or professional student or 
     parent has completed the repayment of such funds to the 
     Secretary, or to the holder in the case of a loan under this 
     title obtained by fraud; and''.
       (h) Default Reduction Program.--Section 428F(a)(1) (20 
     U.S.C. 1078-6(a)(1)) is amended--
       (1) in subparagraph (A), by striking ``consecutive payments 
     for 12 months'' and inserting ``9 payments made within 20 
     days of the due date during 10 consecutive months'';
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) A guaranty agency may charge the borrower and retain 
     collection costs in an amount not to exceed 18.5 percent of 
     the outstanding principal and interest at the time of sale of 
     a loan rehabilitated under subparagraph (A).''.
       (j) Exceptional Performance Insurance Rate.--Section 
     428I(b)(1) (20 U.S.C. 1078-9(b)(1)) is amended--
       (1) in the heading, by striking ``100 percent'' and 
     inserting ``99 percent''; and
       (2) by striking ``100 percent of the unpaid'' and inserting 
     ``99 percent of the unpaid''.
       (k) Uniform Administrative and Claims Procedure.--Section 
     432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by 
     inserting ``and anticipated graduation date'' after ``status 
     change''.
       (2) Section 428(a)(3)(A)(v) (20 U.S.C. 1078(a)(3)(A)(v)) is 
     amended--
       (A) by striking ``or'' at the end of subclause (I);
       (B) by striking the period at the end of subclause (II) and 
     inserting ``; or''; and
       (C) by adding after subclause (II) the following new 
     subclause:
       ``(III) in the case of a loan disbursed through an escrow 
     agent, 3 days before the first disbursement of the loan.''.
       (3) Section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is 
     amended by striking ``45 days'' in the last sentence and 
     inserting ``30 days''.
       (4) Section 428(i)(1) (20 U.S.C. 1078(i)(1)) is amended by 
     striking ``21 days'' in the third sentence and inserting ``10 
     days''.

     SEC. 8016. FUNDS FOR ADMINISTRATIVE EXPENSES.

       Section 458 is amended to read as follows:

     ``SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.

       ``(a) Administrative Expenses.--
       ``(1) Mandatory funds for fiscal year 2006.--For fiscal 
     year 2006, there shall be available to the Secretary, from 
     funds not otherwise appropriated, funds to be obligated for--
       ``(A) administrative costs under this part and part B, 
     including the costs of the direct student loan programs under 
     this part; and
       ``(B) account maintenance fees payable to guaranty agencies 
     under part B and calculated in accordance with subsections 
     (b) and (c),
     not to exceed (from such funds not otherwise appropriated) 
     $820,000,000 in fiscal year 2006.
       ``(2) Authorization for administrative costs beginning in 
     fiscal years 2007 through 2011.--For each of the fiscal years 
     2007 through 2011, there are authorized to be appropriated 
     such sums as may be necessary for administrative costs under 
     this part and part B, including the costs of the direct 
     student loan programs under this part.
       ``(3) Continuing mandatory funds for account maintenance 
     fees.--For each of the fiscal years 2007 through 2011, there 
     shall be available to the Secretary, from funds not otherwise 
     appropriated, funds to be obligated for account maintenance 
     fees payable to guaranty agencies under part B and calculated 
     in accordance with subsection (b).
       ``(4) Account mainenance fees.--Account maintenance fees 
     under paragraph (3) shall be paid quarterly and deposited in 
     the Agency Operating Fund established under section 422B.
       ``(5) Carryover.--The Secretary may carry over funds made 
     available under this section to a subsequent fiscal year.
       ``(b) Calculation Basis.--Account maintenance fees payable 
     to guaranty agencies under subsection (a)(3) shall not exceed 
     the basis of 0.10 percent of the original principal amount of 
     outstanding loans on which insurance was issued under part B.
       ``(c) Budget Justification.--No funds may be expended under 
     this section unless the Secretary includes in the Department 
     of Education's annual budget justification to Congress a 
     detailed description of the specific activities for which the 
     funds made available by this section have been used in the 
     prior and current years (if applicable), the activities and 
     costs planned for the budget year, and the projection of 
     activities and costs for each remaining year for which 
     administrative expenses under this section are made 
     available.''.

     SEC. 8017. COST OF ATTENDANCE.

       Section 472 (20 U.S.C. 1087ll) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4) for less than half-time students (as determined by 
     the institution), tuition and fees and an allowance for 
     only--
       ``(A) books, supplies, and transportation (as determined by 
     the institution);
       ``(B) dependent care expenses (determined in accordance 
     with paragraph (8)); and
       ``(C) room and board costs (determined in accordance with 
     paragraph (3)), except that a student may receive an 
     allowance for such costs under this subparagraph for not more 
     than 3 semesters or the equivalent, of which not more than 2 
     semesters or the equivalent may be consecutive;'';
       (2) in paragraph (11), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (12), by striking the period and inserting 
     ``; and''; and
       (4) by adding at the end the following:
       ``(13) at the option of the institution, for a student in a 
     program requiring professional licensure or certification, 
     the one time cost of obtaining the first professional 
     credentials (as determined by the institution).''.

     SEC. 8018. FAMILY CONTRIBUTION.

       (a) Family Contribution for Dependent Students.--
       (1) Amendments.--Section 475 (20 U.S.C. 1087oo) is 
     amended--
       (A) in subsection (g)(2)(D), by striking ``$2,200'' and 
     inserting ``$3,000''; and
       (B) in subsection (h), by striking ``35'' and inserting 
     ``20''.

[[Page 30877]]

       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply with respect to determinations of need for 
     periods of enrollment beginning on or after July 1, 2007.
       (b) Family Contribution for Independent Students Without 
     Dependents Other Than a Spouse.--
       (1) Amendments.--Section 476 (20 U.S.C.1087pp) is amended--
       (A) in subsection (b)(1)(A)(iv)--
       (i) in subclause (I), by striking ``$5,000'' and inserting 
     ``$6,050'';
       (ii) in subclause (II), by striking ``$5,000'' and 
     inserting ``$6,050''; and
       (iii) in subclause (III), by striking ``$8,000'' and 
     inserting ``$9,700''; and
       (B) in subsection (c)(4), by striking ``35'' and inserting 
     ``20''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply with respect to determinations of need for 
     periods of enrollment beginning on or after July 1, 2007.
       (c) Family Contribution for Independent Students With 
     Dependents Other Than a Spouse.--
       (1) Amendment.--Section 477(c)(4) (20 U.S.C. 1087qq(c)(4)) 
     is amended by striking ``12'' and inserting ``7''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to determinations of need for 
     periods of enrollment beginning on or after July 1, 2007.
       (d) Regulations; Updated Tables.--Section 478(b) (20 U.S.C. 
     1087rr(b)) is amended--
       (1) in paragraph (1), by adding at the end the following: 
     ``For the 2007-2008 academic year, the Secretary shall revise 
     the tables in accordance with this paragraph, except that the 
     Secretary shall increase the amounts contained in the table 
     in section 477(b)(4) by a percentage equal to the greater of 
     the estimated percentage increase in the Consumer Price Index 
     (as determined under the preceding sentence) or 5 percent.''; 
     and
       (2) in paragraph (2)--
       (A) by striking ``2000-2001'' and inserting ``2007-2008''; 
     and
       (B) by striking ``1999'' and inserting ``2006''.
       (e) Employment Expense Allowance.--Section 478(h) (20 
     U.S.C. 1087rr(h)) is amended--
       (1) by striking ``476(b)(4)(B),''; and
       (2) by striking ``meals away from home, apparel and upkeep, 
     transportation, and housekeeping services'' and inserting 
     ``food away from home, apparel, transportation, and household 
     furnishings and operations''.

     SEC. 8019. SIMPLIFIED NEED TEST AND AUTOMATIC ZERO 
                   IMPROVEMENTS.

       (a) Amendments.--Section 479 (20 U.S.C. 1087ss) is 
     amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking clause (i) and 
     inserting the following:
       ``(i) the student's parents--

       ``(I) file, or are eligible to file, a form described in 
     paragraph (3);
       ``(II) certify that the parents are not required to file a 
     Federal income tax return; or
       ``(III) received, or the student received, benefits at some 
     time during the previous 12-month period under a means-tested 
     Federal benefit program as defined under subsection (d); 
     and''; and

       (ii) in subparagraph (B), by striking clause (i) and 
     inserting the following:
       ``(i) the student (and the student's spouse, if any)--

       ``(I) files, or is eligible to file, a form described in 
     paragraph (3);
       ``(II) certifies that the student (and the student's 
     spouse, if any) is not required to file a Federal income tax 
     return; or
       ``(III) received benefits at some time during the previous 
     12-month period under a means-tested Federal benefit program 
     as defined under subsection (d); and''; and

       (B) in the matter preceding subparagraph (A) of paragraph 
     (3), by striking ``A student or family files a form described 
     in this subsection, or subsection (c), as the case maybe, if 
     the student or family, respectively, files'' and inserting 
     ``In the case of an independent student, the student, or in 
     the case of a dependent student, the family, files a form 
     described in this subsection, or subsection (c), as the case 
     may be, if the student or family, as appropriate, files'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the student's parents--
       ``(i) file, or are eligible to file, a form described in 
     subsection (b)(3);
       ``(ii) certify that the parents are not required to file a 
     Federal income tax return; or
       ``(iii) received, or the student received, benefits at some 
     time during the previous 12-month period under a means-tested 
     Federal benefit program as defined under subsection (d); 
     and''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the sum of the adjusted gross income of the parents 
     is less than or equal to $20,000; or''; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) the student (and the student's spouse, if any)--
       ``(i) files, or is eligible to file, a form described in 
     subsection (b)(3);
       ``(ii) certifies that the student (and the student's 
     spouse, if any) is not required to file a Federal income tax 
     return; or
       ``(iii) received benefits at some time during the previous 
     12-month period under a means-tested Federal benefit program 
     as defined under subsection (d); and''; and
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the sum of the adjusted gross income of the student 
     and spouse (if appropriate) is less than or equal to 
     $20,000.''; and
       (3) by adding at the end the following:
       ``(d) Definition of Means-Tested Federal Benefit Program.--
     In this section, the term `means-tested Federal benefit 
     program' means a mandatory spending program of the Federal 
     Government, other than a program under this title, in which 
     eligibility for the program's benefits, or the amount of such 
     benefits, are determined on the basis of income or resources 
     of the individual or family seeking the benefit, and may 
     include such programs as--
       ``(1) the supplemental security income program under title 
     XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
       ``(2) the food stamp program under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.);
       ``(3) the free and reduced price school lunch program 
     established under the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1751 et seq.);
       ``(4) the program of block grants for States for temporary 
     assistance for needy families established under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.);
       ``(5) the special supplemental nutrition program for women, 
     infants, and children established by section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786); and
       ``(6) other programs identified by the Secretary.''.
       (b) Evaluation of Simplified Needs Test.--
       (1) Eligibility guidelines.--The Secretary of Education 
     shall regularly evaluate the impact of the eligibility 
     guidelines in subsections (b)(1)(A)(i), (b)(1)(B)(i), 
     (c)(1)(A), and (c)(2)(A) of section 479 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087ss(b)(1)(A)(i), 
     (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).
       (2) Means-tested federal benefit program.--For each 3-year 
     period, the Secretary of Education shall evaluate the impact 
     of including the receipt of benefits by a student or parent 
     under a means-tested Federal benefit program (as defined in 
     section 479(d) of the Higher Education Act of 1965 (20 U.S.C. 
     1087ss(d)) as a factor in determining eligibility under 
     subsections (b) and (c) of section 479 of the Higher 
     Education Act of 1965 (20 U.S.C. 1087ss(b) and (c)).

     SEC. 8020. ADDITIONAL NEED ANALYSIS AMENDMENTS.

       (b) Treating Active Duty Members of the Armed Forces as 
     Independent Students.--Section 480(d)(3) (20 U.S.C. 
     1087vv(d)(3)) is amended by inserting before the semicolon at 
     the end the following: ``or is currently serving on active 
     duty in the Armed Forces for other than training purposes''.
       (c) Definition of Assets.--Section 480(f)(1) (20 U.S.C. 
     1087vv(f)(1)) is amended by inserting ``qualified education 
     benefits (except as provided in paragraph (3)),'' after ``tax 
     shelters,''.
       (d) Treatment of Family Ownership of Small Businesses.--
     Section 480(f)(2) (20 U.S.C. 1087vv(f)(2)) is amended--
       (1) in subparagraph (A), by striking ``or'';
       (2) in subparagraph (B), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) a small business with not more than 100 full-time or 
     full-time equivalent employees (or any part of such a small 
     business) that is owned and controlled by the family.''.
       (e) Additional Definitions.--Section 480(f) is further 
     amended by adding at the end the following new paragraphs:
       ``(3) A qualified education benefit shall not be considered 
     an asset of a student for purposes of section 475.
       ``(4) In determining the value of assets in a determination 
     of need under this title (other than for subpart 4 of part 
     A), the value of a qualified education benefit shall be--
       ``(A) the refund value of any tuition credits or 
     certificates purchased under a qualified education benefit; 
     and
       ``(B) in the case of a program in which contributions are 
     made to an account that is established for the purpose of 
     meeting the qualified higher education expenses of the 
     designated beneficiary of the account, the current balance of 
     such account.
       ``(5) In this subsection:
       ``(A) The term `qualified education benefit' means--
       ``(i) a qualified tuition program (as defined in section 
     529(b)(1)(A) of the Internal Revenue Code of 1986) or other 
     prepaid tuition plan offered by a State; and
       ``(ii) a Coverdell education savings account (as defined in 
     section 530(b)(1) of the Internal Revenue Code of 1986).
       ``(B) The term `qualified higher education expenses' has 
     the meaning given the term in section 529(e) of the Internal 
     Revenue Code of 1986.''.
       (f) Designated Assistance.--Section 480(j) (20 U.S.C. 
     1087vv(j)) is amended--
       (1) in the subsection heading, by striking ``; Tuition 
     Prepayment Plans'';

[[Page 30878]]

       (2) by striking paragraph (2);
       (3) by redesignating paragraph (3) as paragraph (2); and
       (4) by adding at the end the following new paragraph:
       ``(3) Notwithstanding paragraph (1) and section 472, 
     assistance not received under this title may be excluded from 
     both estimated financial assistance and cost of attendance, 
     if that assistance is provided by a State and is designated 
     by such State to offset a specific component of the cost of 
     attendance. If that assistance is excluded from either 
     estimated financial assistance or cost of attendance, it 
     shall be excluded from both.''.

     SEC. 8021. GENERAL PROVISIONS.

       (a) Academic Year.--Paragraph (2) of section 481(a) (20 
     U.S.C. 1088(a)) is amended to read as follows:
       ``(2)(A) For the purpose of any program under this title, 
     the term `academic year' shall--
       ``(i) require a minimum of 30 weeks of instructional time 
     for a course of study that measures its program length in 
     credit hours; or
       ``(ii) require a minimum of 26 weeks of instructional time 
     for a course of study that measures its program length in 
     clock hours; and
       ``(iii) require an undergraduate course of study to contain 
     an amount of instructional time whereby a full-time student 
     is expected to complete at least--
       ``(I) 24 semester or trimester hours or 36 quarter credit 
     hours in a course of study that measures its program length 
     in credit hours; or
       ``(II) 900 clock hours in a course of study that measures 
     its program length in clock hours.
       ``(B) The Secretary may reduce such minimum of 30 weeks to 
     not less than 26 weeks for good cause, as determined by the 
     Secretary on a case-by-case basis, in the case of an 
     institution of higher education that provides a 2-year or 4-
     year program of instruction for which the institution awards 
     an associate or baccalaureate degree.''.
       (b) Distance Education: Eligible Program.--Section 481(b) 
     (20 U.S.C. 1088(b)) is amended by adding at the end the 
     following new paragraphs:
       ``(3) An otherwise eligible program that is offered in 
     whole or in part through telecommunications is eligible for 
     the purposes of this title if the program is offered by an 
     institution, other than a foreign institution, that has been 
     evaluated and determined (before or after the date of 
     enactment of the Higher Education Reconciliation Act of 2005) 
     to have the capability to effectively deliver distance 
     education programs by an accrediting agency or association 
     that--
       ``(A) is recognized by the Secretary under subpart 2 of 
     part H; and
       ``(B) has evaluation of distance education programs within 
     the scope of its recognition, as described in section 
     496(n)(3).
       ``(4) For purposes of this title, the term `eligible 
     program' includes an instructional program that, in lieu of 
     credit hours or clock hours as the measure of student 
     learning, utilizes direct assessment of student learning, or 
     recognizes the direct assessment of student learning by 
     others, if such assessment is consistent with the 
     accreditation of the institution or program utilizing the 
     results of the assessment. In the case of a program being 
     determined eligible for the first time under this paragraph, 
     such determination shall be made by the Secretary before such 
     program is considered to be an eligible program.''.
       (c) Correspondence Courses.--Section 484(l)(1) (20 U.S.C. 
     1091(l)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``for a program of study of 1 year or 
     longer''; and
       (B) by striking ``unless the total'' and all that follows 
     through ``courses at the institution''; and
       (2) by amending subparagraph (B) to read as follows:
       ``(B) Exception.--Subparagraph (A) shall not apply to an 
     institution or school described in section 3(3)(C) of the 
     Carl D. Perkins Vocational and Technical Education Act of 
     1998.''.

     SEC. 8022. STUDENT ELIGIBILITY.

       (a) Fraud: Repayment Required.--Section 484(a) (20 U.S.C. 
     1091(a)) is amended--
       (1) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (2) by adding at the end the following new paragraph:
       ``(6) if the student has been convicted of, or has pled 
     nolo contendere or guilty to, a crime involving fraud in 
     obtaining funds under this title, have completed the 
     repayment of such funds to the Secretary, or to the holder in 
     the case of a loan under this title obtained by fraud.''.
       (b) Verification of Income Date.--Paragraph (1) of section 
     484(q) (20 U.S.C. 1091(q)) is amended to read as follows:
       ``(1) Confirmation with irs.--The Secretary of Education, 
     in cooperation with the Secretary of the Treasury, is 
     authorized to confirm with the Internal Revenue Service the 
     information specified in section 6103(l)(13) of the Internal 
     Revenue Code of 1986 reported by applicants (including 
     parents) under this title on their Federal income tax returns 
     for the purpose of verifying the information reported by 
     applicants on student financial aid applications.''.
       (c) Suspension of Eligibility for Drug Offenses.--Section 
     484(r)(1) (20 U.S.C. 1091(r)(1)) is amended by striking 
     everything preceding the table and inserting the following:
       ``(1) In general.--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. 8023. INSTITUTIONAL REFUNDS.

       Section 484B (20 U.S.C. 1091b) is amended--
       (1) in the matter preceding clause (i) of subsection 
     (a)(2)(A), by striking ``a leave of'' and inserting ``1 or 
     more leaves of'';
       (2) in subsection (a)(3)(B)(ii), by inserting ``(as 
     determined in accordance with subsection (d))'' after 
     ``student has completed'';
       (3) in subsection (a)(3)(C)(i), by striking ``grant or loan 
     assistance under this title'' and inserting ``grant 
     assistance under subparts 1 and 3 of part A, or loan 
     assistance under parts B, D, and E,'';
       (4) in subsection (a)(4), by amending subparagraph (A) to 
     read as follows:
       ``(A) In general.--After determining the eligibility of the 
     student for a late disbursement or post-withdrawal 
     disbursement (as required in regulations prescribed by the 
     Secretary), the institution of higher education shall contact 
     the borrower and obtain confirmation that the loan funds are 
     still required by the borrower. In making such contact, the 
     institution shall explain to the borrower the borrower's 
     obligation to repay the funds following any such 
     disbursement. The institution shall document in the 
     borrower's file the result of such contact and the final 
     determination made concerning such disbursement.'';
       (5) in subsection (b)(1), by inserting ``not later than 45 
     days from the determination of withdrawal'' after ``return'';
       (6) in subsection (b)(2), by amending subparagraph (C) to 
     read as follows:
       ``(C) Grant overpayment requirements.--
       ``(i) In general.--Notwithstanding subparagraphs (A) and 
     (B), a student shall only be required to return grant 
     assistance in the amount (if any) by which--

       ``(I) the amount to be returned by the student (as 
     determined under subparagraphs (A) and (B)), exceeds
       ``(II) 50 percent of the total grant assistance received by 
     the student under this title for the payment period or period 
     of enrollment.

       ``(ii) Minimum.--A student shall not be required to return 
     amounts of $50 or less.'';
       (7) in subsection (d), by striking ``(a)(3)(B)(i)'' and 
     inserting ``(a)(3)(B)''; and
       (8) in subsection (d)(2), by striking ``clock hours--'' and 
     all that follows through the period and inserting ``clock 
     hours scheduled to be completed by the student in that period 
     as of the day the student withdrew.''.

     SEC. 8024. COLLEGE ACCESS INITIATIVE.

       Part G is further amended by inserting after section 485C 
     (20 U.S.C. 1092c) the following new section:

     ``SEC. 485D. COLLEGE ACCESS INITIATIVE.

       ``(a) State-by-State Information.--The Secretary shall 
     direct each guaranty agency with which the Secretary has an 
     agreement under section 428(c) to provide to the Secretary 
     the information necessary for the development of Internet web 
     links and access for students and families to a comprehensive 
     listing of the postsecondary education opportunities, 
     programs, publications, Internet web sites, and other 
     services available in the States for which such agency serves 
     as the designated guarantor.
       ``(b) Guaranty Agency Activities.--
       ``(1) Plan and activity required.--Each guaranty agency 
     with which the Secretary has an agreement under section 
     428(c) shall develop a plan, and undertake the activity 
     necessary, to gather the information required under 
     subsection (a) and to make such information available to the 
     public and to the Secretary in a form and manner as 
     prescribed by the Secretary.
       ``(2) Activities.--Each guaranty agency shall undertake 
     such activities as are necessary to promote access to 
     postsecondary education for students through providing 
     information on college planning, career preparation, and 
     paying for college. The guaranty agency shall publicize such 
     information and coordinate such activities with other 
     entities that either provide or distribute such information 
     in the States for which such guaranty agency serves as the 
     designated guarantor.
       ``(3) Funding.--The activities required by this section may 
     be funded from the guaranty agency's Operating Fund 
     established pursuant to section 422B and, to the extent funds 
     remain, from earnings on the restricted account established 
     pursuant to section 422(h)(4).
       ``(4) Rule of construction.--Nothing in this subsection 
     shall be construed to require a guaranty agency to duplicate 
     any efforts under way on the date of enactment of the Higher 
     Education Reconciliation Act of 2005 that meet the 
     requirements of this section.

[[Page 30879]]

       ``(c) Access to Information.--
       ``(1) Secretary's responsibility.--The Secretary shall 
     ensure the availability of the information provided, by the 
     guaranty agencies in accordance with this section, to 
     students, parents, and other interested individuals, through 
     Internet web links or other methods prescribed by the 
     Secretary.
       ``(2) Guaranty agency responsibility.--The guaranty 
     agencies shall ensure that the information required by this 
     section is available without charge in printed format for 
     students and parents requesting such information.
       ``(3) Publicity.--Not later than 270 days after the date of 
     enactment of the Higher Education Reconciliation Act of 2005, 
     the Secretary and guaranty agencies shall publicize the 
     availability of the information required by this section, 
     with special emphasis on ensuring that populations that are 
     traditionally underrepresented in postsecondary education are 
     made aware of the availability of such information.''.

     SEC. 8026. WAGE GARNISHMENT REQUIREMENT.

       Section 488A(a)(1) (20 U.S.C. 1095a(a)(1)) is amended by 
     striking ``10 percent'' and inserting ``15 percent''.

                          Subtitle B--Pensions

     SEC. 8201. INCREASES IN PBGC PREMIUMS.

       (a) Flat-Rate Premiums.--
       (1) Single-employer plans.--
       (A) In general.--Clause (i) of section 4006(a)(3)(A) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1306(a)(3)(A)) is amended by striking ``$19'' and inserting 
     ``$30''.
       (B) Adjustment for inflation.--Section 4006(a)(3) of such 
     Act (29 U.S.C. 1306(a)(3)) is amended by adding at the end 
     the following new subparagraph:
       ``(F) For each plan year beginning in a calendar year after 
     2006, there shall be substituted for the premium rate 
     specified in clause (i) of subparagraph (A) an amount equal 
     to the greater of--
       ``(i) the product derived by multiplying the premium rate 
     specified in clause (i) of subparagraph (A) by the ratio of--
       ``(I) the national average wage index (as defined in 
     section 209(k)(1) of the Social Security Act) for the first 
     of the 2 calendar years preceding the calendar year in which 
     such plan year begins, to
       ``(II) the national average wage index (as so defined) for 
     2004; and
       ``(ii) the premium rate in effect under clause (i) of 
     subparagraph (A) for plan years beginning in the preceding 
     calendar year.
     If the amount determined under this subparagraph is not a 
     multiple of $1, such product shall be rounded to the nearest 
     multiple of $1.''.
       (2) Multiemployer plans.--
       (A) In general.--Section 4006(a)(3)(A) of such Act (29 
     U.S.C. 1306(a)(3)(A)) is amended--
       (i) in clause (iii)--

       (I) by inserting ``and before January 1, 2006,'' after 
     ``Act of 1980,''; and
       (II) by striking the period at the end and inserting ``, 
     or''; and

       (ii) by adding at the end the following:
       ``(iv) in the case of a multiemployer plan, for plan years 
     beginning after December 31, 2005, $8.00 for each individual 
     who is a participant in such plan during the applicable plan 
     year.''.
       (B) Adjustment for inflation.--Section 4006(a)(3) of such 
     Act (29 U.S.C. 1306(a)(3)), as amended by this subsection, is 
     amended by adding at the end the following new subparagraph:
       ``(G) For each plan year beginning in a calendar year after 
     2006, there shall be substituted for the premium rate 
     specified in clause (iv) of subparagraph (A) an amount equal 
     to the greater of--
       ``(i) the product derived by multiplying the premium rate 
     specified in clause (iv) of subparagraph (A) by the ratio 
     of--
       ``(I) the national average wage index (as defined in 
     section 209(k)(1) of the Social Security Act) for the first 
     of the 2 calendar years preceding the calendar year in which 
     such plan year begins, to
       ``(II) the national average wage index (as so defined) for 
     2004; and
       ``(ii) the premium rate in effect under clause (iv) of 
     subparagraph (A) for plan years beginning in the preceding 
     calendar year.
     If the amount determined under this subparagraph is not a 
     multiple of $1, such product shall be rounded to the nearest 
     multiple of $1.''.
       (b) Premium Rate for Certain Terminated Single-Employer 
     Plans.--Subsection (a) of section 4006 of such Act (29 U.S.C. 
     1306) is amended by adding at the end the following:
       ``(7) Premium Rate for Certain Terminated Single-Employer 
     Plans.--
       ``(A) In general.--If there is a termination of a single-
     employer plan under clause (ii) or (iii) of section 
     4041(c)(2)(B) or section 4042, there shall be payable to the 
     corporation, with respect to each applicable 12-month period, 
     a premium at a rate equal to $1,250 multiplied by the number 
     of individuals who were participants in the plan immediately 
     before the termination date. Such premium shall be in 
     addition to any other premium under this section.
       ``(B) Special rule for plans terminated in bankruptcy 
     reorganization.--In the case of a single-employer plan 
     terminated under section 4041(c)(2)(B)(ii) or under section 
     4042 during pendency of any bankruptcy reorganization 
     proceeding under chapter 11 of title 11, United States Code, 
     or under any similar law of a State or a political 
     subdivision of a State (or a case described in section 
     4041(c)(2)(B)(i) filed by or against such person has been 
     converted, as of such date, to such a case in which 
     reorganization is sought), subparagraph (A) shall not apply 
     to such plan until the date of the discharge or dismissal of 
     such person in such case.
       ``(C) Applicable 12-month period.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--The term `applicable 12-month period' 
     means--
       ``(I) the 12-month period beginning with the first month 
     following the month in which the termination date occurs, and
       ``(II) each of the first two 12-month periods immediately 
     following the period described in subclause (I).
       ``(ii) Plans terminated in bankruptcy reorganization.--In 
     any case in which the requirements of subparagraph (B)(i)(I) 
     are met in connection with the termination of the plan with 
     respect to 1 or more persons described in such subparagraph, 
     the 12-month period described in clause (i)(I) shall be the 
     12-month period beginning with the first month following the 
     month which includes the earliest date as of which each such 
     person is discharged or dismissed in the case described in 
     such clause in connection with such person.
       ``(D) Coordination with section 4007.--
       ``(i) Notwithstanding section 4007--
       ``(I) premiums under this paragraph shall be due within 30 
     days after the beginning of any applicable 12-month period, 
     and
       ``(II) the designated payor shall be the person who is the 
     contributing sponsor as of immediately before the termination 
     date.
       ``(ii) The fifth sentence of section 4007(a) shall not 
     apply in connection with premiums determined under this 
     paragraph.
       ``(E) Termination.--Subparagraph (A) shall not apply with 
     respect to any plan terminated after December 31, 2010.''.
       (c) Conforming Amendment.--Section 4006(a)(3)(B) of such 
     Act (29 U.S.C. 1306(a)(3)(B)) is amended by striking 
     ``subparagraph (A)(iii)'' and inserting ``clause (iii) or 
     (iv) of subparagraph (A)''.
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to plan years beginning after December 31, 2005.
       (2) Premium rate for certain terminated single-employer 
     plans.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendment made by subsection (b) shall apply to plans 
     terminated after December 31, 2005.
       (B) Special rule for plans terminated in bankruptcy.--The 
     amendment made by subsection (b) shall not apply to a 
     termination of a single-employer plan that is terminated 
     during the pendency of any bankruptcy reorganization 
     proceeding under chapter 11 of title 11, United States Code 
     (or under any similar law of a State or political subdivision 
     of a State), if the proceeding is pursuant to a bankruptcy 
     filing occurring before October 18, 2005.

                      TITLE IX--LIHEAP PROVISIONS

     SEC. 9001. FUNDING AVAILABILITY.

       (a) In General.--In addition to amounts otherwise made 
     available, there are appropriated, out of any money in the 
     Treasury not otherwise appropriated, to the Secretary of 
     Health and Human Services for a 1-time only obligation and 
     expenditure--
       (1) $250,000,000 for fiscal year 2007 for allocation under 
     section 2604(a) through (d) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8623(a) through (d)); and
       (2) $750,000,000 for fiscal year 2007 for allocation under 
     section 2604(e) of the Low-Income Home Energy Assistance Act 
     of 1981 (42 U.S.C. 8623(e)).
       (b) Sunset.--The provisions of this section shall 
     terminate, be null and void, and have no force and effect 
     whatsoever after September 30, 2007. No monies provided for 
     under this section shall be available after such date.

                 TITLE X--JUDICIARY RELATED PROVISIONS

                  Subtitle A--Civil Filing Adjustments

     SEC. 10001. CIVIL CASE FILING FEE INCREASES.

       (a) Civil Actions Filed in District Courts.--Section 
     1914(a) of title 28, United States Code, is amended by 
     striking ``$250'' and inserting ``$350''.
       (b) Appeals Filed in Courts of Appeals.--The $250 fee for 
     docketing a case on appeal or review, or docketing any other 
     proceeding, in a court of appeals, as prescribed by the 
     Judicial Conference, effective as of January 1, 2005, under 
     section 1913 of title 28, United States Code, shall be 
     increased to $450.
       (c) Expenditure Limitation.--Incremental amounts collected 
     by reason of the enactment of this section shall be deposited 
     in a special fund in the Treasury to be established after the 
     enactment of this Act. Such amounts shall be available for 
     the purposes specified in section 1931(a) of title 28, United 
     States Code, but only to the extent specifically appropriated 
     by an Act of Congress enacted after the enactment of this 
     Act.
       (d) Effective Date.--This section and the amendment made by 
     this section shall take

[[Page 30880]]

     effect 60 days after the date of the enactment of this Act.

                      Subtitle B--Bankruptcy Fees

     SEC. 10002. BANKRUPTCY FEES.

       (a) Bankruptcy Filing Fees.--Section 1930(a) of title 28, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A) by striking ``$220'' and inserting 
     ``$245''; and
       (B) in subparagraph (B) by striking ``$150'' and inserting 
     ``$235''; and
       (2) in paragraph (2) by striking ``$1,000'' and inserting 
     ``$2,750''.
       (b) Expenditure Limitation.--Incremental amounts collected 
     by reason of the amendments made by subsection (a) shall be 
     deposited in a special fund in the Treasury to be established 
     after the enactment of this Act. Such amounts shall be 
     available for the purposes specified in section 1931(a) of 
     title 28, United States Code, but only to the extent 
     specifically appropriated by an Act of Congress enacted after 
     the enactment of this Act.
       (c) Effective Date.--This section and the amendments made 
     by this section shall take effect 60 days after the date of 
     the enactment of this Act.
                                 ______
                                 
  SA 2692. Mr. FRIST (for Mrs. Feinstein (for herself and Mr. 
Brownback)) proposed an amendment to the bill S. 119, to provide for 
the protection of unaccompanied alien children, and for other purposes; 
as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Unaccompanied Alien Child Protection Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

     TITLE I--CUSTODY, RELEASE, FAMILY REUNIFICATION, AND DETENTION

Sec. 101. Procedures when encountering unaccompanied alien children.
Sec. 102. Family reunification for unaccompanied alien children with 
              relatives in the United States.
Sec. 103. Appropriate conditions for detention of unaccompanied alien 
              children.
Sec. 104. Repatriated unaccompanied alien children.
Sec. 105. Establishing the age of an unaccompanied alien child.
Sec. 106. Effective date.

TITLE II--ACCESS BY UNACCOMPANIED ALIEN CHILDREN TO CHILD ADVOCATES AND 
                                COUNSEL

Sec. 201. Child advocates.
Sec. 202. Counsel.
Sec. 203. Preservation of law enforcement authority.
Sec. 204. Effective date; applicability.

  TITLE III--STRENGTHENING POLICIES FOR PERMANENT PROTECTION OF ALIEN 
                                CHILDREN

Sec. 301. Special immigrant juvenile classification.
Sec. 302. Training for officials and certain private parties who come 
              into contact with unaccompanied alien children.
Sec. 303. Report.
Sec. 304. Effective date.

             TITLE IV--CHILDREN REFUGEE AND ASYLUM SEEKERS

Sec. 401. Guidelines for children's asylum claims.
Sec. 402. Unaccompanied refugee children.
Sec. 403. Exceptions for unaccompanied alien children in asylum and 
              refugee-like circumstances.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

Sec. 501. Authorization of appropriations.

       TITLE VI--AMENDMENTS TO THE HOMELAND SECURITY ACT OF 2002

Sec. 601. Additional responsibilities and powers of the Office of 
              Refugee Resettlement with respect to unaccompanied alien 
              children.
Sec. 602. Technical corrections.
Sec. 603. Effective date.

     SEC. 2. DEFINITIONS.

       (a) In General.--In this Act:
       (1) Competent.--The term ``competent'', in reference to 
     counsel, means an attorney, or a representative authorized to 
     represent unaccompanied alien children in immigration 
     proceedings or matters, who--
       (A) complies with the duties set forth in this Act;
       (B)(i) is properly qualified to handle matters involving 
     unaccompanied alien children; or
       (ii) is working under the auspices of a qualified nonprofit 
     organization that is experienced in handling such matters; 
     and
       (C) if an attorney--
       (i) is a member in good standing of the bar of the highest 
     court of any State, possession, territory, Commonwealth, or 
     the District of Columbia; and
       (ii) is not under any order of any court suspending, 
     enjoining, restraining, disbarring, or otherwise restricting 
     the attorney in the practice of law.
       (2) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (3) Director.--The term ``Director'' means the Director of 
     the Office.
       (4) Office.--The term ``Office'' means the Office of 
     Refugee Resettlement established by section 411 of the 
     Immigration and Nationality Act (8 U.S.C. 1521).
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (6) Unaccompanied alien child.--The term ``unaccompanied 
     alien child'' has the meaning given the term in section 
     462(g)(2) of the Homeland Security Act of 2002 (6 U.S.C. 
     279(g)(2)).
       (7) Voluntary agency.--The term ``voluntary agency'' means 
     a private, nonprofit voluntary agency with expertise in 
     meeting the cultural, developmental, or psychological needs 
     of unaccompanied alien children, as certified by the 
     Director.
       (b) Amendments to the Immigration and Nationality Act.--
     Section 101(a) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)) is amended by adding at the end the 
     following:
       ``(51) The term `unaccompanied alien child' means a child 
     who--
       ``(A) has no lawful immigration status in the United 
     States;
       ``(B) has not attained the age of 18; and
       ``(C) with respect to whom--
       ``(i) there is no parent or legal guardian in the United 
     States; or
       ``(ii) no parent or legal guardian in the United States is 
     available to provide care and physical custody.
       ``(52) The term `unaccompanied refugee children' means 
     persons described in paragraph (42) who--
       ``(A) have not attained the age of 18; and
       ``(B) with respect to whom there are no parents or legal 
     guardians available to provide care and physical custody.''.
       (c) Rule of Construction.--A department or agency of a 
     State, or an individual or entity appointed by a State court 
     or juvenile court located in the United States, acting in 
     loco parentis, shall not be considered a legal guardian for 
     purposes of section 462 of the Homeland Security Act of 2002 
     (6 U.S.C. 279) or this Act.

     TITLE I--CUSTODY, RELEASE, FAMILY REUNIFICATION, AND DETENTION

     SEC. 101. PROCEDURES WHEN ENCOUNTERING UNACCOMPANIED ALIEN 
                   CHILDREN.

       (a) Unaccompanied Children Found Along the United States 
     Border or at United States Ports of Entry.--
       (1) In general.--Subject to paragraph (2), if an 
     immigration officer finds an unaccompanied alien child who is 
     described in paragraph (2) at a land border or port of entry 
     of the United States and determines that such child is 
     inadmissible under the Immigration and Nationality Act (8 
     U.S.C. 1101 et seq.), the officer shall--
       (A) permit such child to withdraw the child's application 
     for admission pursuant to section 235(a)(4) of the 
     Immigration and Nationality Act (8 U.S.C. 1225(a)(4)); and
       (B) return such child to the child's country of nationality 
     or country of last habitual residence.
       (2) Special rule for contiguous countries.--
       (A) In general.--Any child who is a national or habitual 
     resident of a country that is contiguous with the United 
     States and that has an agreement in writing with the United 
     States providing for the safe return and orderly repatriation 
     of unaccompanied alien children who are nationals or habitual 
     residents of such country shall be treated in accordance with 
     paragraph (1), if a determination is made on a case-by-case 
     basis that--
       (i) such child is a national or habitual resident of a 
     country described in this subparagraph;
       (ii) such child does not have a fear of returning to the 
     child's country of nationality or country of last habitual 
     residence owing to a fear of persecution;
       (iii) the return of such child to the child's country of 
     nationality or country of last habitual residence would not 
     endanger the life or safety of such child; and
       (iv) the child is able to make an independent decision to 
     withdraw the child's application for admission due to age or 
     other lack of capacity.
       (B) Right of consultation.--Any child described in 
     subparagraph (A) shall have the right, and shall be informed 
     of that right in the child's native language--
       (i) to consult with a consular officer from the child's 
     country of nationality or country of last habitual residence 
     prior to repatriation; and
       (ii) to consult, telephonically, with the Office.
       (3) Rule for apprehensions at the border.--The custody of 
     unaccompanied alien children not described in paragraph (2) 
     who are apprehended at the border of the United States or at 
     a United States port of entry shall be treated in accordance 
     with subsection (b).
       (b) Care and Custody of Unaccompanied Alien Children Found 
     in the Interior of the United States.--
       (1) Establishment of jurisdiction.--
       (A) In general.--Except as otherwise provided under 
     subparagraphs (B) and (C) and

[[Page 30881]]

     subsection (a), the care and custody of all unaccompanied 
     alien children, including responsibility for their detention, 
     where appropriate, shall be under the jurisdiction of the 
     Office.
       (B) Exception for children who have committed crimes.--
     Notwithstanding subparagraph (A), the Department shall retain 
     or assume the custody and care of any unaccompanied alien 
     child who--
       (i) has been charged with any felony, excluding offenses 
     proscribed by the Immigration and Nationality Act (8 U.S.C. 
     1101 et seq.), while such charges are pending; or
       (ii) has been convicted of any such felony.
       (C) Exception for children who threaten national 
     security.--Notwithstanding subparagraph (A), the Department 
     shall retain or assume the custody and care of an 
     unaccompanied alien child if the Secretary has substantial 
     evidence, based on an individualized determination, that such 
     child could personally endanger the national security of the 
     United States.
       (D) Trafficking victims.--For purposes of section 462 of 
     the Homeland Security Act of 2002 (6 U.S.C. 279) and this 
     Act, an unaccompanied alien child who is eligible for 
     services authorized under the Victims of Trafficking and 
     Violence Protection Act of 2000 (Public Law 106-386), shall 
     be considered to be in the custody of the Office.
       (2) Notification.--
       (A) In general.--The Secretary shall promptly notify the 
     Office upon--
       (i) the apprehension of an unaccompanied alien child;
       (ii) the discovery that an alien in the custody of the 
     Department is an unaccompanied alien child;
       (iii) any claim by an alien in the custody of the 
     Department that such alien is under the age of 18; or
       (iv) any suspicion that an alien in the custody of the 
     Department who has claimed to be over the age of 18 is 
     actually under the age of 18.
       (B) Special rule.--In the case of an alien described in 
     clause (iii) or (iv) of subparagraph (A), the Director shall 
     make an age determination in accordance with section 105 and 
     take whatever other steps are necessary to determine whether 
     such alien is eligible for treatment under section 462 of the 
     Homeland Security Act of 2002 (6 U.S.C. 279) or this Act.
       (3) Transfer of unaccompanied alien children.--
       (A) Transfer to the office.--The care and custody of an 
     unaccompanied alien child shall be transferred to the 
     Office--
       (i) in the case of a child not described in subparagraph 
     (B) or (C) of paragraph (1), not later than 72 hours after a 
     determination is made that such child is an unaccompanied 
     alien child;
       (ii) in the case of a child whose custody and care has been 
     retained or assumed by the Department pursuant to 
     subparagraph (B) or (C) of paragraph (1), following a 
     determination that the child no longer meets the description 
     set forth in such subparagraphs; or
       (iii) in the case of a child who was previously released to 
     an individual or entity described in section 102(a)(1), upon 
     a determination by the Director that such individual or 
     entity is no longer able to care for the child.
       (B) Transfer to the department.--Upon determining that a 
     child in the custody of the Office is described in 
     subparagraph (B) or (C) of paragraph (1), the Director shall 
     transfer the care and custody of such child to the 
     Department.
       (C) Promptness of transfer.--In the event of a need to 
     transfer a child under this paragraph, the sending office 
     shall make prompt arrangements to transfer such child and the 
     receiving office shall make prompt arrangements to receive 
     such child.
       (c) Age Determinations.--In any case in which the age of an 
     alien is in question and the resolution of questions about 
     the age of such alien would affect the alien's eligibility 
     for treatment under section 462 of the Homeland Security Act 
     of 2002 (6 U.S.C. 279) or this Act, a determination of 
     whether or not such alien meets such age requirements shall 
     be made in accordance with section 105, unless otherwise 
     specified in subsection (b)(2)(B).
       (d) Access to Alien.--The Secretary of Homeland Security 
     shall permit the Office to have reasonable access to aliens 
     in the custody of the Secretary to ensure a prompt 
     determination of the age of such alien, if necessary under 
     subsection (b)(2)(B).

     SEC. 102. FAMILY REUNIFICATION FOR UNACCOMPANIED ALIEN 
                   CHILDREN WITH RELATIVES IN THE UNITED STATES.

       (a) Placement Authority.--
       (1) Order of preference.--Subject to the discretion of the 
     Director under paragraph (4), section 103(a)(2), and section 
     462(b)(2) of the Homeland Security Act of 2002 (6 U.S.C. 
     279(b)(2)), an unaccompanied alien child in the custody of 
     the Office shall be promptly placed with 1 of the following 
     individuals or entities in the following order of preference:
       (A) A parent who seeks to establish custody, as described 
     in paragraph (3)(A).
       (B) A legal guardian who seeks to establish custody, as 
     described in paragraph (3)(A).
       (C) An adult relative.
       (D) An individual or entity designated by the parent or 
     legal guardian that is capable and willing to care for the 
     well-being of the child.
       (E) A State-licensed juvenile shelter, group home, or 
     foster care program willing to accept custody of the child.
       (F) A qualified adult or entity seeking custody of the 
     child when it appears that there is no other likely 
     alternative to long-term detention and family reunification 
     does not appear to be a reasonable alternative. For purposes 
     of this subparagraph, the Office shall decide who is a 
     qualified adult or entity and promulgate regulations in 
     accordance with such decision.
       (2) Suitability assessment.--
       (A) General requirements.--Notwithstanding paragraph (1), 
     and subject to the requirements of subparagraph (B), no 
     unaccompanied alien child shall be placed with a person or 
     entity described in any of subparagraphs (A) through (F) of 
     paragraph (1) unless the Director certifies, in writing, that 
     the proposed custodian is capable of providing for the 
     child's physical and mental well-being, based on--
       (i) with respect to an individual custodian--

       (I) verification of such individual's identity and 
     employment;
       (II) a finding that such individual has not engaged in any 
     activity that would indicate a potential risk to the child, 
     including the activities described in paragraph (4)(A);
       (III) a finding that such individual has no open 
     investigation by a state or local child protective services 
     authority due to suspected child abuse or neglect;
       (IV) verification that such individual has a plan for the 
     provision of care for the child; and
       (V) verification of familial relationship of such 
     individual, if any relationship is claimed; and

       (ii) verification of nature and extent of previous 
     relationship;
       (iii) with respect to a custodial entity, verification of 
     such entity's appropriate licensure by the State, county, or 
     other applicable unit of government; and
       (iv) such other information as the Director determines 
     appropriate.
       (B) Home study.--
       (i) In general.--A home study shall be conducted prior to 
     release with respect to each proposed custodian described in 
     any of subparagraphs (A) through (F) of paragraph (1) unless 
     waived by the Director.
       (ii) Special needs children.--In the case of a special 
     needs child with a disability (as defined in section 3 of the 
     Americans with Disabilities Act of 1990 (42 U.S.C. 12102(2)), 
     a home study shall be conducted to determine if the child's 
     needs can be properly met by the custodian.
       (C) Contract authority.--The Director may, by grant or 
     contract, arrange for some or all of the activities under 
     this section to be carried out by--
       (i) an agency of the State of the child's proposed 
     residence;
       (ii) an agency authorized by such State to conduct such 
     activities; or
       (iii) an appropriate voluntary or nonprofit agency.
       (D) Database access.--In conducting suitability 
     assessments, the Director shall be given access to all 
     relevant information in the appropriate Federal, State, and 
     local law enforcement and immigration databases.
       (3) Right of parent or legal guardian to custody of 
     unaccompanied alien child.--
       (A) Placement with parent or legal guardian.--If an 
     unaccompanied alien child is placed with any person or entity 
     other than a parent or legal guardian, and subsequent to that 
     placement a parent or legal guardian seeks to establish 
     custody, the Director shall--
       (i) assess the suitability of placing the child with the 
     parent or legal guardian; and
       (ii) make a written determination on the child's placement 
     within 30 days.
       (B) Rule of construction.--Nothing in this Act shall be 
     construed to--
       (i) supersede obligations under any treaty or other 
     international agreement to which the United States is a 
     party, including The Hague Convention on the Civil Aspects of 
     International Child Abduction, the Vienna Declaration and 
     Program of Action, and the Declaration of the Rights of the 
     Child; or
       (ii) limit any right or remedy under such international 
     agreement.
       (4) Protection from smugglers and traffickers.--
       (A) Policies and programs.--
       (i) In general.--The Director shall establish policies and 
     programs to ensure that unaccompanied alien children are 
     protected from smugglers, traffickers, or other persons 
     seeking to victimize or otherwise engage such children in 
     criminal, harmful, or exploitative activity.
       (ii) Witness protection programs included.--Programs 
     established pursuant to clause (i) may include witness 
     protection programs.
       (B) Criminal investigations and prosecutions.--Any officer 
     or employee of the Office or the Department of Homeland 
     Security, and any grantee or contractor of the Office, who 
     suspects any individual of involvement in any activity 
     described in subparagraph (A) shall report such individual to 
     Federal or State prosecutors for criminal investigation and 
     prosecution.
       (C) Disciplinary action.--Any officer or employee of the 
     Office or the Department of

[[Page 30882]]

     Homeland Security, and any grantee or contractor of the 
     Office, who suspects an attorney of involvement in any 
     activity described in subparagraph (A) shall report the 
     individual to the State bar association of which the attorney 
     is a member, or to other appropriate disciplinary 
     authorities, for appropriate disciplinary action, which may 
     include private or public admonition or censure, suspension, 
     or disbarment of the attorney from the practice of law.
       (5) Grants and contracts.--The Director may award grants 
     to, and enter into contracts with, voluntary agencies to 
     carry out this section or section 462 of the Homeland 
     Security Act of 2002 (6 U.S.C. 279).
       (6) Reimbursement of state expenses.--The Director may 
     reimburse States for any expenses they incur in providing 
     assistance to unaccompanied alien children who are served 
     pursuant to this Act or section 462 of the Homeland Security 
     Act of 2002 (6 U.S.C. 279).
       (b) Confidentiality.--All information obtained by the 
     Office relating to the immigration status of a person 
     described in subparagraphs (A), (B), and (C) of subsection 
     (a)(1) shall remain confidential and may be used only for the 
     purposes of determining such person's qualifications under 
     subsection (a)(1).
       (c) Required Disclosure.--The Secretary of Health and Human 
     Services or the Secretary of Homeland Security shall provide 
     the information furnished under this section, and any other 
     information derived from such furnished information, to--
       (1) a duly recognized law enforcement entity in connection 
     with an investigation or prosecution of an offense described 
     in paragraph (2) or (3) of section 212(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)), when such information 
     is requested in writing by such entity; or
       (2) an official coroner for purposes of affirmatively 
     identifying a deceased individual (whether or not such 
     individual is deceased as a result of a crime).
       (d) Penalty.--Whoever knowingly uses, publishes, or permits 
     information to be examined in violation of this section shall 
     be fined not more than $10,000.

     SEC. 103. APPROPRIATE CONDITIONS FOR DETENTION OF 
                   UNACCOMPANIED ALIEN CHILDREN.

       (a) Standards for Placement.--
       (1) Prohibition of detention in certain facilities.--Except 
     as provided in paragraph (2), an unaccompanied alien child 
     shall not be placed in an adult detention facility or a 
     facility housing delinquent children.
       (2) Detention in appropriate facilities.--An unaccompanied 
     alien child who has exhibited a violent or criminal behavior 
     that endangers others may be detained in conditions 
     appropriate to such behavior in a facility appropriate for 
     delinquent children.
       (3) State licensure.--A child shall not be placed with an 
     entity described in section 102(a)(1)(E), unless the entity 
     is licensed by an appropriate State agency to provide 
     residential, group, child welfare, or foster care services 
     for dependent children.
       (4) Conditions of detention.--
       (A) In general.--The Director and the Secretary of Homeland 
     Security shall promulgate regulations incorporating standards 
     for conditions of detention in such placements that provide 
     for--
       (i) educational services appropriate to the child;
       (ii) medical care;
       (iii) mental health care, including treatment of trauma, 
     physical and sexual violence, or abuse;
       (iv) access to telephones;
       (v) access to legal services;
       (vi) access to interpreters;
       (vii) supervision by professionals trained in the care of 
     children, taking into account the special cultural, 
     linguistic, and experiential needs of children in immigration 
     proceedings;
       (viii) recreational programs and activities;
       (ix) spiritual and religious needs; and
       (x) dietary needs.
       (B) Notification of children.--Regulations promulgated 
     under subparagraph (A) shall provide that all children are 
     notified of such standards orally and in writing in the 
     child's native language.
       (b) Prohibition of Certain Practices.--The Director and the 
     Secretary shall develop procedures prohibiting the 
     unreasonable use of--
       (1) shackling, handcuffing, or other restraints on 
     children;
       (2) solitary confinement; or
       (3) pat or strip searches.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to supersede procedures favoring release of 
     children to appropriate adults or entities or placement in 
     the least secure setting possible, as defined in the 
     Stipulated Settlement Agreement under Flores v. Reno.

     SEC. 104. REPATRIATED UNACCOMPANIED ALIEN CHILDREN.

       (a) Country Conditions.--
       (1) Sense of congress.--It is the sense of Congress that, 
     to the extent consistent with the treaties and other 
     international agreements to which the United States is a 
     party, and to the extent practicable, the United States 
     Government should undertake efforts to ensure that it does 
     not repatriate children in its custody into settings that 
     would threaten the life and safety of such children.
       (2) Assessment of conditions.--
       (A) In general.--The annual Country Reports on Human Rights 
     Practices published by the Department of State shall contain 
     an assessment of the degree to which each country protects 
     children from smugglers and traffickers.
       (B) Factors for assessment.--The Department shall consult 
     the Country Reports on Human Rights Practices and the 
     Trafficking in Persons Report in assessing whether to 
     repatriate an unaccompanied alien child to a particular 
     country.
       (b) Report on Repatriation of Unaccompanied Alien 
     Children.--
       (1) In general.--Not later than 18 months after the date of 
     enactment of this Act, and annually thereafter, the Secretary 
     shall submit a report to the Committee on the Judiciary of 
     the Senate and the Committee on the Judiciary of the House of 
     Representatives on efforts to repatriate unaccompanied alien 
     children.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) the number of unaccompanied alien children ordered 
     removed and the number of such children actually removed from 
     the United States;
       (B) a description of the type of immigration relief sought 
     and denied to such children;
       (C) a statement of the nationalities, ages, and gender of 
     such children;
       (D) a description of the procedures used to effect the 
     removal of such children from the United States;
       (E) a description of steps taken to ensure that such 
     children were safely and humanely repatriated to their 
     country of origin; and
       (F) any information gathered in assessments of country and 
     local conditions pursuant to subsection (a)(2).

     SEC. 105. ESTABLISHING THE AGE OF AN UNACCOMPANIED ALIEN 
                   CHILD.

       (a) Procedures.--
       (1) In general.--The Director shall develop procedures, in 
     consultation with the Secretary, to make a prompt 
     determination of the age of an alien, to be used--
       (A) by the Department, with respect to aliens in the 
     custody of the Department; and
       (B) by the Office, with respect to aliens in the custody of 
     the Office.
       (2) Evidence.--The procedures developed under paragraph (1) 
     shall--
       (A) permit the presentation of multiple forms of evidence, 
     including testimony of the alien, to determine the age of the 
     unaccompanied alien for purposes of placement, custody, 
     parole, and detention; and
       (B) allow the appeal of a determination to an immigration 
     judge.
       (b) Prohibition on Sole Means of Determining Age.--
     Radiographs or the attestation of an alien shall not be used 
     as the sole means of determining age for the purposes of 
     determining an alien's eligibility for treatment under this 
     Act or section 462 of the Homeland Security Act of 2002 (6 
     U.S.C. 279).
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to place the burden of proof in determining the age 
     of an alien on the Government.

     SEC. 106. EFFECTIVE DATE.

       This title shall take effect on the date which is 90 days 
     after the date of enactment of this Act.

TITLE II--ACCESS BY UNACCOMPANIED ALIEN CHILDREN TO CHILD ADVOCATES AND 
                                COUNSEL

     SEC. 201. CHILD ADVOCATES.

       (a) Establishment of Child Advocate Program.--
       (1) Appointment.--The Director may appoint a child 
     advocate, who meets the qualifications described in paragraph 
     (2), for an unaccompanied alien child. The Director is 
     encouraged, wherever practicable, to contract with a 
     voluntary agency for the selection of an individual to be 
     appointed as a child advocate under this paragraph.
       (2) Qualifications of child advocate.--
       (A) In general.--No person shall serve as a child advocate 
     unless such person--
       (i) is a child welfare professional or other individual who 
     has received training in child welfare matters; and
       (ii) possesses special training on the nature of problems 
     encountered by unaccompanied alien children.
       (B) Prohibition.--A child advocate shall not be an employee 
     of the Department, the Office, or the Executive Office for 
     Immigration Review.
       (3) Duties.--The child advocate shall--
       (A) conduct interviews with the child in a manner that is 
     appropriate, taking into account the child's age;
       (B) investigate the facts and circumstances relevant to the 
     child's presence in the United States, including facts and 
     circumstances--
       (i) arising in the country of the child's nationality or 
     last habitual residence; and
       (ii) arising subsequent to the child's departure from such 
     country;
       (C) work with counsel to identify the child's eligibility 
     for relief from removal or voluntary departure by sharing 
     with counsel information collected under subparagraph (B);
       (D) develop recommendations on issues relative to the 
     child's custody, detention, release, and repatriation;

[[Page 30883]]

       (E) take reasonable steps to ensure that--
       (i) the best interests of the child are promoted while the 
     child participates in, or is subject to, proceedings or 
     matters under the Immigration and Nationality Act (8 U.S.C. 
     1101 et seq.);
       (ii) the child understands the nature of the legal 
     proceedings or matters and determinations made by the court, 
     and that all information is conveyed to the child in an age-
     appropriate manner; and
       (F) report factual findings relating to--
       (i) information collected under subparagraph (B);
       (ii) the care and placement of the child during the 
     pendency of the proceedings or matters; and
       (iii) any other information collected under subparagraph 
     (D).
       (4) Termination of appointment.--The child advocate shall 
     carry out the duties described in paragraph (3) until the 
     earliest of the date on which--
       (A) those duties are completed;
       (B) the child departs the United States;
       (C) the child is granted permanent resident status in the 
     United States;
       (D) the child attains the age of 18; or
       (E) the child is placed in the custody of a parent or legal 
     guardian.
       (5) Powers.--The child advocate--
       (A) shall have reasonable access to the child, including 
     access while such child is being held in detention or in the 
     care of a foster family;
       (B) shall be permitted to review all records and 
     information relating to such proceedings that are not deemed 
     privileged or classified;
       (C) may seek independent evaluations of the child;
       (D) shall be notified in advance of all hearings or 
     interviews involving the child that are held in connection 
     with proceedings or matters under the Immigration and 
     Nationality Act (8 U.S.C. 1101 et seq.), and shall be given a 
     reasonable opportunity to be present at such hearings or 
     interviews;
       (E) shall be permitted to consult with the child during any 
     hearing or interview involving such child; and
       (F) shall be provided at least 24 hours advance notice of a 
     transfer of that child to a different placement, absent 
     compelling and unusual circumstances warranting the transfer 
     of such child before such notification.
       (b) Training.--
       (1) In general.--The Director shall provide professional 
     training for all persons serving as guardians ad litem under 
     this section.
       (2) Training topics.--The training provided under paragraph 
     (1) shall include training in--
       (A) the circumstances and conditions that unaccompanied 
     alien children face; and
       (B) various immigration benefits for which such alien child 
     might be eligible.
       (c) Pilot Program.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Director shall establish and begin 
     to carry out a pilot program to test the implementation of 
     subsection (a).
       (2) Purpose.--The purpose of the pilot program established 
     under paragraph (1) is to--
       (A) study and assess the benefits of providing guardians ad 
     litem to assist unaccompanied alien children involved in 
     immigration proceedings or matters;
       (B) assess the most efficient and cost-effective means of 
     implementing the child advocate provisions in this section; 
     and
       (C) assess the feasibility of implementing such provisions 
     on a nationwide basis for all unaccompanied alien children in 
     the care of the Office.
       (3) Scope of program.--
       (A) Selection of site.--The Director shall select 3 sites 
     in which to operate the pilot program established under 
     paragraph (1).
       (B) Number of children.--To the greatest extent possible, 
     each site selected under subparagraph (A) should have at 
     least 25 children held in immigration custody at any given 
     time.
       (4) Report to congress.--Not later than 1 year after the 
     date on which the first pilot program site is established 
     under paragraph (1), the Director shall submit a report on 
     the achievement of the purposes described in paragraph (2) to 
     the Committee on the Judiciary of the Senate and the 
     Committee on the Judiciary of the House of Representatives.

     SEC. 202. COUNSEL.

       (a) Access to Counsel.--
       (1) In general.--The Director should ensure, to the extent 
     practicable, that all unaccompanied alien children in the 
     custody of the Office or the Department, who are not 
     described in section 101(a)(2), have competent counsel to 
     represent them in immigration proceedings or matters.
       (2) Pro bono representation.--To the maximum extent 
     practicable, the Director should--
       (A) make every effort to utilize the services of competent 
     pro bono counsel who agree to provide representation to such 
     children without charge; and
       (B) ensure that placements made under subparagraphs (D), 
     (E), and (F) of section 102(a)(1) are in cities where there 
     is a demonstrated capacity for competent pro bono 
     representation.
       (3) Development of necessary infrastructures and systems.--
     For purposes of this subsection, the Director shall develop 
     the necessary mechanisms to identify entities available to 
     provide such legal assistance and representation and to 
     recruit such entities.
       (4) Contracting and grant making authority.--
       (A) In general.--The Director shall enter into contracts 
     with, or award grants to, nonprofit agencies with relevant 
     expertise in the delivery of immigration-related legal 
     services to children in order to carry out the 
     responsibilities of this Act, including providing legal 
     orientation, screening cases for referral, recruiting, 
     training, and overseeing pro bono attorneys.
       (B) Subcontracting.--Nonprofit agencies may enter into 
     subcontracts with, or award grants to, private voluntary 
     agencies with relevant expertise in the delivery of 
     immigration-related legal services to children in order to 
     carry out this subsection.
       (C) Considerations regarding grants and contracts.--In 
     awarding grants and entering into contracts with agencies 
     under this paragraph, the Director shall take into 
     consideration the capacity of the agencies in question to 
     properly administer the services covered by such grants or 
     contracts without an undue conflict of interest.
       (5) Model guidelines on legal representation of children.--
       (A) Development of guidelines.--The Executive Office for 
     Immigration Review, in consultation with voluntary agencies 
     and national experts, shall develop model guidelines for the 
     legal representation of alien children in immigration 
     proceedings. Such guidelines shall be based on the children's 
     asylum guidelines, the American Bar Association Model Rules 
     of Professional Conduct, and other relevant domestic or 
     international sources.
       (B) Purpose of guidelines.--The guidelines developed under 
     subparagraph (A) shall be designed to help protect each child 
     from any individual suspected of involvement in any criminal, 
     harmful, or exploitative activity associated with the 
     smuggling or trafficking of children, while ensuring the 
     fairness of the removal proceeding in which the child is 
     involved.
       (C) Implementation.--The Executive Office for Immigration 
     Review shall adopt the guidelines developed under 
     subparagraph (A) and submit the guidelines for adoption by 
     national, State, and local bar associations.
       (b) Duties.--Counsel under this section shall--
       (1) represent the unaccompanied alien child in all 
     proceedings and matters relating to the immigration status of 
     the child or other actions involving the Department;
       (2) appear in person for all individual merits hearings 
     before the Executive Office for Immigration Review and 
     interviews involving the Department; and
       (3) owe the same duties of undivided loyalty, 
     confidentiality, and competent representation to the child as 
     is due an adult client.
       (c) Access to Child.--
       (1) In general.--Counsel shall have reasonable access to 
     the unaccompanied alien child, including access while the 
     child is being held in detention, in the care of a foster 
     family, or in any other setting that has been determined by 
     the Office.
       (2) Restriction on transfers.--Absent compelling and 
     unusual circumstances, no child who is represented by counsel 
     shall be transferred from the child's placement to another 
     placement unless advance notice of at least 24 hours is made 
     to counsel of such transfer.
       (d) Notice to Counsel During Immigration Proceedings.--
       (1) In general.--Except when otherwise required in an 
     emergency situation involving the physical safety of the 
     child, counsel shall be given prompt and adequate notice of 
     all immigration matters affecting or involving an 
     unaccompanied alien child, including adjudications, 
     proceedings, and processing, before such actions are taken.
       (2) Opportunity to consult with counsel.--An unaccompanied 
     alien child in the custody of the Office may not give consent 
     to any immigration action, including consenting to voluntary 
     departure, unless first afforded an opportunity to consult 
     with counsel.
       (e) Access to Recommendations of Child Advocate.--Counsel 
     shall be given an opportunity to review the recommendation by 
     the child advocate affecting or involving a client who is an 
     unaccompanied alien child.
       (f) Counsel for Unaccompanied Alien Children.--Nothing in 
     this Act requires the United States to pay for counsel to any 
     unaccompanied alien child.

     SEC. 203. PRESERVATION OF LAW ENFORCEMENT AUTHORITY.

       (a) In General.--The child advocate or counsel appointed 
     under this title shall not interfere with Federal 
     investigators or prosecutors in a Federal criminal 
     investigation or prosecution in which the child is a victim 
     or witness.
       (b) Definition.--In subsection (a), the term ``interfere 
     with'' shall include--
       (1) restricting access to a victim or witness;
       (2) encouraging noncooperation with Federal investigators 
     or prosecutors; and
       (3) being present during interviews of the child by Federal 
     investigators or prosecutors

[[Page 30884]]

     without the permission of the investigators or prosecutors.

     SEC. 204. EFFECTIVE DATE; APPLICABILITY.

       (a) Effective Date.--This title shall take effect 180 days 
     after the date of enactment of this Act.
       (b) Applicability.--The provisions of this title shall 
     apply to all unaccompanied alien children in Federal custody 
     on, before, or after the effective date of this title.

  TITLE III--STRENGTHENING POLICIES FOR PERMANENT PROTECTION OF ALIEN 
                                CHILDREN

     SEC. 301. SPECIAL IMMIGRANT JUVENILE CLASSIFICATION.

       (a) J Classification.--Section 101(a)(27)(J) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(27)(J)) is 
     amended to read as follows:
       ``(J) an immigrant, who is 18 years of age or younger on 
     the date of application for the classification and who is 
     present in the United States--
       ``(i) who by a court order supported by written findings of 
     fact, which shall be binding on the Secretary of Homeland 
     Security for purposes of adjudications under this 
     subparagraph, was declared dependent on a juvenile court 
     located in the United States or has been legally committed 
     to, or placed under the custody of, a department or agency of 
     a State, or an individual or entity appointed by a State or 
     juvenile court located in the United States, and who has been 
     deemed eligible by that court for long-term foster care due 
     to abuse, neglect, abandonment, or a similar basis found 
     under State law;
       ``(ii) for whom it has been determined by written findings 
     of fact in administrative or judicial proceedings that it 
     would not be in the alien's best interest to be returned to 
     the alien's or parent's previous country of nationality or 
     country of last habitual residence; and
       ``(iii) with respect to a child in Federal custody, for 
     whom the Office of Refugee Resettlement of the Department of 
     Health and Human Services has certified to the Director of 
     U.S. Citizenship and Immigration Services that the 
     classification of an alien as a special immigrant under this 
     subparagraph has not been made solely to provide an 
     immigration benefit to that alien,

     except that no natural parent or prior adoptive parent of any 
     alien provided special immigrant status under this 
     subparagraph shall thereafter, by virtue of such parentage, 
     be accorded any right, privilege, or status under this 
     Act;''.
       (b) Adjustment of Status.--Section 245(h)(2)(A) of the 
     Immigration and Nationality Act (8 U.S.C. 1255(h)(2)(A)) is 
     amended to read as follows:
       ``(A) paragraphs (4), (5)(A), (6)(A), (7)(A), 9(B), and 
     9(C)(i)(I) of section 212(a) shall not apply; and''.
       (c) Eligibility for Assistance.--A child who has been 
     granted relief under section 101(a)(27)(J) of the Immigration 
     and Nationality Act (8 U.S.C. 1101(a)(27)(J)), may be 
     eligible for funds made available under section 412(d) of 
     that Act (8 U.S.C. 1522(d)) until such time as the child 
     attains the age designated in section 412(d)(2)(B) of that 
     Act (8 U.S.C. 1522(d)(2)(B)), or until the child is placed in 
     a permanent adoptive home, whichever occurs first.
       (d) Transition Rule.--Notwithstanding any other provision 
     of law, any child described in section 101(a)(27)(J) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(27)(J)) who 
     filed an application for special immigrant juvenile 
     classification before the date of enactment of this Act and 
     who was 19, 20, or 21 years of age on the date such 
     application was filed shall not be denied such classification 
     after the date of enactment of this Act because of such 
     alien's age.

     SEC. 302. TRAINING FOR OFFICIALS AND CERTAIN PRIVATE PARTIES 
                   WHO COME INTO CONTACT WITH UNACCOMPANIED ALIEN 
                   CHILDREN.

       (a) Training of State and Local Officials and Certain 
     Private Parties.--
       (1) In general.--The Secretary of Health and Human 
     Services, acting jointly with the Secretary, shall provide 
     appropriate training materials, and if requested, direct 
     training, to State and county officials, child welfare 
     specialists, teachers, public counsel, and juvenile judges 
     who come into contact with unaccompanied alien children.
       (2) Curriculum.--The training shall provide education on 
     the processes pertaining to unaccompanied alien children with 
     pending immigration status and on the forms of relief 
     potentially available. The Director shall be responsible for 
     establishing a core curriculum that can be incorporated into 
     education, training, or orientation modules or formats that 
     are currently used by these professionals.
       (3) Video conferencing.--If direct training is requested 
     under this subsection, such training may be conducted through 
     video conferencing.
       (b) Training of Department Personnel.--The Secretary, 
     acting jointly with the Secretary of Health and Human 
     Services, shall provide specialized training to all personnel 
     of the Department who come into contact with unaccompanied 
     alien children. Training for Border Patrol agents and 
     immigration inspectors shall include specific training on 
     identifying children at the United States borders or at 
     United States ports of entry who have been victimized by 
     smugglers or traffickers, and children for whom asylum or 
     special immigrant relief may be appropriate, including 
     children described in section 101(a)(2).

     SEC. 303. REPORT.

       Not later than 1 year after the date of enactment of this 
     Act, and annually thereafter, the Secretary of Health and 
     Human Services shall submit a report for the previous fiscal 
     year to the Committee on the Judiciary of the Senate and the 
     Committee on the Judiciary of the House of Representatives 
     that contains--
       (1) data related to the implementation of section 462 of 
     the Homeland Security Act (6 U.S.C. 279);
       (2) data regarding the care and placement of children in 
     accordance with this Act;
       (3) data regarding the provision of child advocate and 
     counsel services under this Act; and
       (4) any other information that the Director or the 
     Secretary of Health and Human Services determines to be 
     appropriate.

     SEC. 304. EFFECTIVE DATE.

       The amendment made by section 301 shall apply to all aliens 
     who were in the United States before, on, or after the date 
     of enactment of this Act.

             TITLE IV--CHILDREN REFUGEE AND ASYLUM SEEKERS

     SEC. 401. GUIDELINES FOR CHILDREN'S ASYLUM CLAIMS.

       (a) Sense of Congress.--Congress--
       (1) commends the former Immigration and Naturalization 
     Service for its issuance of its ``Guidelines for Children's 
     Asylum Claims'', dated December 1998, and encourages and 
     supports the implementation of such guidelines by the 
     Department in an effort to facilitate the handling of 
     children's affirmative asylum claims;
       (2) commends the Executive Office for Immigration Review of 
     the Department of Justice for its issuance of its 
     ``Guidelines for Immigration Court Cases Involving 
     Unaccompanied Alien Children'', dated September 2004, and 
     encourages and supports the continued implementation of such 
     guidelines by the Executive Office for Immigration Review in 
     its handling of children's asylum claims before immigration 
     judges; and
       (3) understands that the guidelines described in paragraph 
     (2) do not specifically address the issue of asylum claims, 
     but go to the broader issue of unaccompanied alien children 
     in general.
       (b) Training.--
       (1) Immigration officers.--The Secretary shall provide 
     periodic comprehensive training under the ``Guidelines for 
     Children's Asylum Claims'' to asylum officers and immigration 
     officers who have contact with children in order to 
     familiarize and sensitize such officers to the needs of 
     children asylum seekers.
       (2) Immigration judges.--The Executive Office for 
     Immigration Review shall--
       (A) provide periodic comprehensive training under the 
     ``Guidelines for Immigration Court Cases Involving 
     Unaccompanied Alien Children'' and the ``Guidelines for 
     Children's Asylum Claims'' to immigration judges and members 
     of the Board of Immigration Appeals; and
       (B) redistribute to all Immigration Courts the ``Guidelines 
     for Children's Asylum Claims'' as part of its training of 
     immigration judges.
       (3) Use of voluntary agencies.--Voluntary agencies shall be 
     allowed to assist in the training described in this 
     subsection.

     SEC. 402. UNACCOMPANIED REFUGEE CHILDREN.

       (a) Identifying Unaccompanied Refugee Children.--Section 
     207(e) of the Immigration and Nationality Act (8 U.S.C. 
     1157(e)) is amended--
       (1) by redesignating paragraphs (3), (4), (5), (6), and (7) 
     as paragraphs (4), (5), (6), (7), and (8), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) An analysis of the worldwide situation faced by 
     unaccompanied refugee children, by region, which shall 
     include an assessment of--
       ``(A) the number of unaccompanied refugee children, by 
     region;
       ``(B) the capacity of the Department of State to identify 
     such refugees;
       ``(C) the capacity of the international community to care 
     for and protect such refugees;
       ``(D) the capacity of the voluntary agency community to 
     resettle such refugees in the United States;
       ``(E) the degree to which the United States plans to 
     resettle such refugees in the United States in the coming 
     fiscal year; and
       ``(F) the fate that will befall such unaccompanied refugee 
     children for whom resettlement in the United States is not 
     possible.''.
       (b) Training on the Needs of Unaccompanied Refugee 
     Children.--Section 207(f)(2) of the Immigration and 
     Nationality Act (8 U.S.C. 1157(f)(2)) is amended by--
       (1) striking ``and'' after ``countries,''; and
       (2) inserting before the period at the end the following: 
     ``, and instruction on the needs of unaccompanied refugee 
     children''.

[[Page 30885]]



     SEC. 403. EXCEPTIONS FOR UNACCOMPANIED ALIEN CHILDREN IN 
                   ASYLUM AND REFUGEE-LIKE CIRCUMSTANCES.

       (a) Placement in Removal Proceedings.--Any unaccompanied 
     alien child apprehended by the Department, except for an 
     unaccompanied alien child subject to exceptions under 
     paragraph (1)(A) or (2) of section (101)(a), shall be placed 
     in removal proceedings under section 240 of the Immigration 
     and Nationality Act (8 U.S.C. 1229a).
       (b) Exception From Time Limit for Filing Asylum 
     Application.--Section 208(a)(2) of the Immigration and 
     Nationality Act (8 U.S.C. 1158(a)(2)) is amended by adding at 
     the end the following:
       ``(E) Applicability.--Subparagraphs (A) and (B) shall not 
     apply to an unaccompanied alien child as defined in section 
     101(a)(51).''.

                TITLE V--AUTHORIZATION OF APPROPRIATIONS

     SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Department of Homeland Security, the Department of 
     Justice, and the Department of Health and Human Services, 
     such sums as may be necessary to carry out--
       (1) the provisions of section 462 of the Homeland Security 
     Act of 2002 (6 U.S.C. 279); and
       (2) the provisions of this Act.
       (b) Availability of Funds.--Amounts appropriated pursuant 
     to subsection (a) shall remain available until expended.

       TITLE VI--AMENDMENTS TO THE HOMELAND SECURITY ACT OF 2002

     SEC. 601. ADDITIONAL RESPONSIBILITIES AND POWERS OF THE 
                   OFFICE OF REFUGEE RESETTLEMENT WITH RESPECT TO 
                   UNACCOMPANIED ALIEN CHILDREN.

       (a) Additional Responsibilities of the Director.--Section 
     462(b)(1) of the Homeland Security Act of 2002 (6 U.S.C. 
     279(b)(1)) is amended--
       (1) in subparagraph (K), by striking ``and'' at the end;
       (2) in subparagraph (L), by striking the period at the end 
     and inserting ``, including regular follow-up visits to such 
     facilities, placements, and other entities, to assess the 
     continued suitability of such placements; and''; and
       (3) by adding at the end the following:
       ``(M) ensuring minimum standards of care for all 
     unaccompanied alien children--
       ``(i) for whom detention is necessary; and
       ``(ii) who reside in settings that are alternative to 
     detention.''.
       (b) Additional Powers of the Director.--Section 462(b) of 
     the Homeland Security Act of 2002 (6 U.S.C. 279(b)) is 
     amended by adding at the end the following:
       ``(4) Authority.--In carrying out the duties under 
     paragraph (3), the Director is authorized to--
       ``(A) contract with service providers to perform the 
     services described in sections 102, 103, 201, and 202 of the 
     Unaccompanied Alien Child Protection Act of 2005; and
       ``(B) compel compliance with the terms and conditions set 
     forth in section 103 of the Unaccompanied Alien Child 
     Protection Act of 2005, including the power to--
       ``(i) declare providers to be in breach and seek damages 
     for noncompliance;
       ``(ii) terminate the contracts of providers that are not in 
     compliance with such conditions; and
       ``(iii) reassign any unaccompanied alien child to a similar 
     facility that is in compliance with such section.''.

     SEC. 602. TECHNICAL CORRECTIONS.

       Section 462(b) of the Homeland Security Act of 2002 (6 
     U.S.C. 279(b)), as amended by section 601, is amended--
       (1) in paragraph (3), by striking ``paragraph (1)(G)'' and 
     inserting ``paragraph (1)''; and
       (2) by adding at the end the following:
       ``(5) Statutory construction.--Nothing in paragraph (2)(B) 
     may be construed to require that a bond be posted for 
     unaccompanied alien children who are released to a qualified 
     sponsor.''.

     SEC. 603. EFFECTIVE DATE.

       The amendments made by this title shall take effect as if 
     included in the Homeland Security Act of 2002 (6 U.S.C. 101 
     et seq.).
                                 ______
                                 
  SA 2693. Mr. FRIST (for Mr. Lugar) proposed an amendment to the bill 
S. 1315, to require a report on progress toward the Millennium 
Development Goals, and for other purposes; as follows:

       On page 13, line 21-22, strike ``as a fundamental guide on 
     which to base their planning,''.
                                 ______
                                 
  SA 2694. Mr. FRIST (for Mr. Craig (for himself and Mr. Akaka)) 
proposed an amendment to the bill S. 1182, to amend title 38, United 
States Code, to improve health care for veterans, and for other 
purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

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

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Health Care Act of 2005''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment or repeal to a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of title 38, United States Code.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; references to title 38, United States Code; table 
              of contents.
Sec. 2. Care for newborn children of women veterans receiving maternity 
              care.
Sec. 3. Enhancement of payer provisions for health care furnished to 
              certain children of Vietnam veterans.
Sec. 4. Improvements to homeless veterans service providers programs.
Sec. 5. Additional mental health providers.
Sec. 6. Pay comparability for chief nursing officer, office of nursing 
              services.
Sec. 7. Cost comparison studies.
Sec. 8. Improvements and expansion of mental health services.
Sec. 9. Disclosure of medical records.
Sec. 10. Expansion of National Guard Outreach Program.
Sec. 11. Expansion of tele-health services.
Sec. 12. Mental health data sources report.
Sec. 13. Strategic plan for long-term care.
Sec. 14. Blind rehabilitation outpatient specialists.
Sec. 15. Compliance report.
Sec. 16. Health care and services for veterans affected by hurricane 
              Katrina.
Sec. 17. Reimbursement for certain veterans' outstanding emergency 
              treatment expenses.
Sec. 18. Conveyance of Federal land in exchange for fair market value 
              consideration.
Sec. 19. Technical and clerical amendments.

     SEC. 2. CARE FOR NEWBORN CHILDREN OF WOMEN VETERANS RECEIVING 
                   MATERNITY CARE.

       (a) In General.--Subchapter VIII of chapter 17 is amended 
     by adding at the end the following:

     ``Sec. 1786. Care for newborn children of women veterans 
       receiving maternity care

       ``The Secretary may furnish care to a newborn child of a 
     woman veteran, who is receiving maternity care furnished by 
     the Department, for not more than 14 days after the birth of 
     the child if the veteran delivered the child in a Department 
     facility or in another facility pursuant to a Department 
     contract for the delivery services.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1785 the following:

``1786. Care for newborn children of women veterans receiving maternity 
              care.''.

     SEC. 3. ENHANCEMENT OF PAYER PROVISIONS FOR HEALTH CARE 
                   FURNISHED TO CERTAIN CHILDREN OF VIETNAM 
                   VETERANS.

       (a) Health Care for Spina Bifida and Associated 
     Disabilities.--Section 1803 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c)(1) If a payment made by the Secretary for health care 
     under this section is less than the amount billed for such 
     health care, the health care provider or agent of the health 
     care provider may, in accordance with paragraphs (2) through 
     (4), seek payment for the difference between the amount 
     billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       ``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received the health 
     care, or the family of such beneficiary, for any service or 
     item for which the Secretary has made payment under this 
     section.
       ``(3) The total amount of payment a health care provider or 
     agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary.
       ``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.
       (b) Health Care for Birth Defects and Associated 
     Disabilities.--Section 1813 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c)(1) If payment made by the Secretary for health care 
     under this section is less than the amount billed for such 
     health care, the health care provider or agent of the health 
     care provider may, in accordance with paragraphs (2) through 
     (4), seek payment for the difference between the amount 
     billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       ``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received health 
     care, or the

[[Page 30886]]

     family of such beneficiary, for any service or item for which 
     the Secretary has made payment under this section.
       ``(3) The total amount of payment a health care provider or 
     agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary.
       ``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.

     SEC. 4. IMPROVEMENTS TO HOMELESS VETERANS SERVICE PROVIDERS 
                   PROGRAMS.

       (a) Permanent Authority.--Section 2011 (a) is amended--
       (1) in paragraph (1), by striking ``(1)''; and
       (2) by striking paragraph (2).
       (b) Authorization of Appropriations.--
       (1) Comprehensive service programs for homeless veterans.--
     Section 2013 is amended to read as follows:

     ``Sec. 2013. Authorization of appropriations

       ``There are authorized to be appropriated $130,000,000 for 
     fiscal year 2006 and each subsequent fiscal year to carry out 
     this subchapter.''.
       (2) Homeless veteran service provider technical assistance 
     program.--Section 2064(b) is amended to read as follows:
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated $1,000,000 for each of fiscal 
     years 2006 through 2011 to carry out the programs under this 
     section.''.

     SEC. 5. ADDITIONAL MENTAL HEALTH PROVIDERS.

       (a) Qualifications.--Section 7402(b) is amended--
       (1) by redesignating paragraph (10) as paragraph (12); and
       (2) by inserting after paragraph (9) the following:
       ``(10) Marriage and family therapist.--To be eligible to be 
     appointed to a marriage and family therapist position, a 
     person shall--
       ``(A) hold a master's degree in marriage and family 
     therapy, or a comparable degree in mental health, from a 
     college or university approved by the Secretary; and
       ``(B) be licensed or certified to independently practice 
     marriage and family therapy in a State, except that the 
     Secretary may waive the requirement of licensure or 
     certification for an individual marriage and family therapist 
     for a reasonable period of time recommended by the Under 
     Secretary for Health.
       ``(11) Licensed professional mental health counselors.--To 
     be eligible to be appointed to a licensed professional mental 
     health counselor position, a person shall--
       ``(A) hold a master's degree in mental health counseling, 
     or a related field, from a college or university approved by 
     the Secretary; and
       ``(B) be licensed or certified to independently practice 
     mental health counseling.''.
       (b) Report on Marriage and Family Therapy Workload.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Under Secretary for Health, 
     Department of Veterans Affairs, shall submit to the Committee 
     on Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a report on 
     the provisions of post-traumatic stress disorder treatment by 
     marriage and family therapists.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) the actual and projected workloads in facilities of the 
     Veterans Readjustment Counseling Service and the Veterans 
     Health Administration for the provision of marriage and 
     family counseling for veterans diagnosed with, or otherwise 
     in need of treatment for, post-traumatic stress disorder;
       (B) the resources available and needed to support the 
     workload projections described in subparagraph (A);
       (C) an assessment by the Under Secretary for Health of the 
     effectiveness of treatment by marriage and family therapists; 
     and
       (D) recommendations, if any, for improvements in the 
     provision of such counseling treatment.

     SEC. 6. PAY COMPARABILITY FOR CHIEF NURSING OFFICER, OFFICE 
                   OF NURSING SERVICES.

       Section 7404 is amended--
       (1) in subsection (d), by striking ``subchapter III and 
     in'' and inserting ``subsection (e), subchapter III, and''; 
     and
       (2) by adding at the end the following:
       ``(e) The position of Chief Nursing Officer, Office of 
     Nursing Services, shall be exempt from the provisions of 
     section 7451 of this title and shall be paid at a rate not to 
     exceed the maximum rate established for the Senior Executive 
     Service under section 5382 of title 5 United States Code, as 
     determined by the Secretary.''.

     SEC. 7. COST COMPARISON STUDIES.

       (a) Studies Authorized.--
       (1) In general.--Notwithstanding section 8110(a)(5), the 
     Secretary of Veterans Affairs may conduct studies to compare 
     the amount that would be expended if private contractors 
     provided specific commercial or industrial products and 
     services for the Veterans Health Administration with the 
     amount that would be expended if the Department of Veterans 
     Affairs provided such products and services for the Veterans 
     Health Administration.
       (2) Limitation.--In the course of conducting the private-
     public cost comparison studies under paragraph (1), a private 
     contractor may not receive an advantage for a proposal that 
     would reduce costs for the Department of Veterans Affairs 
     by--
       (A) not making an employer-sponsored health insurance plan 
     available to the workers who are to be employed in the 
     performance of that activity or function under the contract; 
     or
       (B) offering to such workers an employer-sponsored health 
     benefits plan that requires the employer to contribute less 
     towards the premium or subscription share than the amount 
     that is paid by the Department of Veterans Affairs for health 
     benefits for civilian employees under chapter 89 of title 5, 
     United States Code.
       (3) Authorization of appropriations.--
       (A) In general.--There are authorized to be appropriated 
     $15,000,000 to carry out paragraph (1), of which--
       (i) not more than $7,500,000 shall be available to evaluate 
     activities that have been performed by employees of the 
     Federal Government; and
       (ii) not more than $7,500,000 shall be available to 
     evaluate activities that have been performed by private 
     contractors.
       (B) Sunset date.--This paragraph is repealed on September 
     30, 2007.
       (b) Report.--Not later than March 15, 2007, the Secretary 
     of Veterans Affairs shall submit to the Committee on 
     Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a report 
     that--
       (1) identifies the amount expended by the Department of 
     Veterans Affairs during fiscal year 2006 to conduct cost 
     comparison studies, including--
       (A) studies conducted in accordance with Office of 
     Management and Budget Circular A-76; and
       (B) studies to identify the most efficient internal 
     processes for the Department of Veterans Affairs;
       (2) summarizes the benefits and burdens of the studies 
     described in paragraph (1);
       (3) analyzes each approach for determining--
       (A) the best method of allocating the resources of the 
     Department of Veterans Affairs; and
       (B) the appropriate use of nongovernmental employees; and
       (4) identifies the amount of savings (calculated in terms 
     of full-time employee reinvestment), if any, to the 
     Department of Veterans Affairs as a result of--
       (A) the private-public cost comparison studies conducted 
     under subsection (a); and
       (B) the Department of Veterans Affairs internal processes 
     for the same positions.

     SEC. 8. IMPROVEMENTS AND EXPANSION OF MENTAL HEALTH SERVICES.

       (a) Findings.--Congress makes the following findings:
       (1) Mental health treatment capacity at community-based 
     outpatient clinics remains inadequate and inconsistent, 
     despite the requirement under section 1706(c) of title 38, 
     United States Code, that every primary care health care 
     facility of the Department of Veterans Affairs develop and 
     carry out a plan to meet the mental health care needs of 
     veterans who require such services.
       (2) In 2001, the minority staff of the Committee on 
     Veterans' Affairs of the Senate conducted a survey of 
     community-based outpatient clinics and found that there was 
     no established systemwide baseline of acceptable mental 
     health service levels at such clinics.
       (3) In February 2005, the Government Accountability Office 
     reported that the Department of Veterans Affairs had not 
     fully met any of the 24 clinical care and education 
     recommendations made in 2004 by the Special Committee on 
     Post-Traumatic Stress Disorder of the Under Secretary for 
     Health, Veterans Health Administration.
       (b) Clinical Services and Education.--
       (1) In general.--The Secretary of Veterans affairs shall--
       (A) expand the number of clinical treatment teams 
     principally dedicated to the treatment of post-traumatic 
     stress disorder in medical facilities of the Department of 
     Veterans Affairs;
       (B) expand and improve the services available to diagnose 
     and treat substance abuse;
       (C) expand and improve tele-health initiatives to provide 
     better access to mental health services in areas of the 
     country in which the Secretary determines that a need for 
     such services exist due to the distance of such locations 
     from an appropriate facility of the Department of Veterans 
     Affairs;
       (D) improve education programs available to primary care 
     delivery professionals and dedicate such programs to 
     recognize, treat, and clinically manage veterans with mental 
     health care needs;
       (E) expand the delivery of mental health services in 
     community-based outpatient clinics of the Department of 
     Veterans Affairs in which such services are not available as 
     of the date of enactment of this Act; and
       (F) expand and improve the Mental Health Intensive Case 
     Management Teams for the treatment and clinical case 
     management of veterans with serious or chronic mental 
     illness.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated

[[Page 30887]]

     $95,000,000 in each of fiscal years 2006 and 2007 to improve 
     and expand the treatment services and options available to 
     veterans in need of mental health treatment from the 
     Department of Veterans Affairs, of which--
       (A) $5,000,000 shall be allocated to carry out paragraph 
     (1)(A);
       (B) $50,000,000 shall be allocated to carry out paragraph 
     (1)(B);
       (C) $10,000,000 shall be allocated to carry out paragraph 
     (1)(C);
       (D) $1,000,000 shall be allocated to carry out paragraph 
     (1)(D);
       (E) $20,000,000 shall be allocated to carry out paragraph 
     (1)(E); and
       (F) $5,000,000 shall be allocated to carry out paragraph 
     (1)(F).
       (c) Required Capacity for Community-Based Outpatient 
     Clinics.--
       (1) Accountability for the provision of mental health 
     services.--The Under Secretary shall take appropriate steps 
     and provide necessary incentives (including appropriate 
     performance incentives) to ensure that each Regional Director 
     of the Veterans Health Administration is encouraged to--
       (A) prioritize the provision of mental health services to 
     veterans in need of such services;
       (B) foster collaborative working environments among 
     clinicians for the provision of mental health services; and
       (C) conduct mental health consultations during primary care 
     appointments.
       (2) Mental health and substance abuse services.--
       (A) In general.--The Secretary shall ensure that each 
     community-based outpatient clinic of the Department has the 
     capacity to provide, or monitor the provision of, mental 
     health services to enrolled veterans in need of such 
     services.
       (B) Settings.--In carrying out subparagraph (A), the 
     Secretary shall ensure that mental health services are 
     provided through--
       (i) a community-based outpatient clinic of the Department 
     by an employee of the Department;
       (ii) referral to another facility of the Department;
       (iii) contract with an appropriate mental health 
     professional in the local community; or
       (iv) tele-mental health service.
       (3) Reporting requirement.--Not later than January 31, 
     2008, the Secretary of Veterans Affairs shall submit a report 
     to Congress that--
       (A) describes the status and availability of mental health 
     services at community-based outpatient clinics;
       (B) describes the substance of services available at such 
     clinics; and
       (C) includes the ratios between mental health staff and 
     patients at such clinics.
       (d) Cooperation on Mental Health Awareness and 
     Prevention.--
       (1) Agreement.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall enter into a Memorandum of 
     Understanding--
       (A) to ensure that separating service members receive 
     standardized individual mental health and sexual trauma 
     assessments as part of separation exams; and
       (B) that includes the development of shared guidelines on 
     how to conduct the assessments.
       (2) Establishment of joint veterans affairs-department of 
     defense workgroup on mental health.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Defense and the 
     Secretary of Veterans Affairs shall establish a joint 
     workgroup on mental health, which shall be comprised of not 
     less than 7 leaders in the field of mental health appointed 
     from their respective departments.
       (B) Study.--Not later than 1 year after the establishment 
     of the workgroup under subparagraph (A), the workgroup shall 
     analyze the feasibility, content, and scope of initiatives 
     related to--
       (i) combating stigmas and prejudices associated with 
     service members who suffer from mental health disorders or 
     readjustment issues, through the use of peer counseling 
     programs or other educational initiatives;
       (ii) ways in which the Department of Veterans Affairs can 
     make their expertise in treating mental health disorders more 
     readily available to Department of Defense mental health care 
     providers;
       (iii) family and spousal education to assist family members 
     of veterans and service members to recognize and deal with 
     signs of potential readjustment issues or other mental health 
     disorders; and
       (iv) the seamless transition of service members who have 
     been diagnosed with mental health disorders from active duty 
     to veteran status (in consultation with the Seamless 
     Transition Task Force and other entities assisting in this 
     effort).
       (C) Report.--Not later than June 30, 2007, the Secretary of 
     Defense and the Secretary of Veterans Affairs shall submit a 
     report to Congress containing the findings and 
     recommendations of the workgroup established under this 
     paragraph.
       (e) Primary Care Consultations for Mental Health.--
       (1) Guidelines.--The Under Secretary for Health, Veterans 
     Health Administration, shall establish systemwide guidelines 
     for screening primary care patients for mental health 
     disorders and illnesses.
       (2) Training.--Based upon the guidelines established under 
     paragraph (1), the Under Secretary for Health, Veterans 
     Health Administration, shall conduct appropriate training for 
     clinicians of the Department of Veterans Affairs to carry out 
     mental health consultations.
       (f) Clinical Training and Protocols.--
       (1) Findings.--Congress finds that--
       (A) the Iraq War Clinician Guide has tremendous value; and
       (B) the Secretary of Defense and the National Center on 
     Post Traumatic Stress Disorder should continue to work 
     together to ensure that the mental health care needs of 
     service members and veterans are met.
       (2) Collaboration.--The National Center on Post Traumatic 
     Stress Disorder shall collaborate with the Secretary of 
     Defense--
       (A) to enhance the clinical skills of military clinicians 
     through training, treatment protocols, web-based 
     interventions, and the development of evidence-based 
     interventions; and
       (B) to promote pre-deployment resilience and post-
     deployment readjustment among service members serving in 
     Operation Iraqi Freedom and Operation Enduring Freedom.
       (3) Training.--The National Center on Post Traumatic Stress 
     Disorder shall work with the Secretary of Defense to ensure 
     that clinicians in the Department of Defense are provided 
     with the training and protocols developed pursuant to 
     paragraph (2)(A).
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated $2,000,000 for 2006 to carry out this 
     subsection.

     SEC. 9. DISCLOSURE OF MEDICAL RECORDS.

       (a) Limited Exception to Confidentiality of Medical 
     Records.--Section 5701 is amended by adding at the end the 
     following:
       ``(k)(1)(A) The Secretary may disclose the name and address 
     of any individual described in subparagraph (C) to an entity 
     described in subparagraph (B) in order to facilitate the 
     determination by such entity whether the individual is, or 
     after death will be, a suitable organ, tissue, or eye donor 
     if--
       ``(i) the individual is near death (as determined by the 
     Secretary) or is deceased; and
       ``(ii) the disclosure is permitted under regulations 
     promulgated pursuant to section 264 of the Health Insurance 
     Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
     note).
       ``(B) An entity described in this subparagraph is--
       ``(i) an organ procurement organization; or
       ``(ii) an entity that the Secretary has determined--
       ``(I) is substantially similar in function, 
     professionalism, and reliability to an organ procurement 
     organization; and
       ``(II) should be treated for purposes of this subsection in 
     the same manner as an organ procurement organization.
       ``(C) An individual described in this subparagraph is--
       ``(i) a member or former member of the Armed Forces; or
       ``(ii) a dependent of a member or former member of the 
     Armed Forces.
       ``(2) In this subsection, the term `organ procurement 
     organization' has the meaning given the term `qualified organ 
     procurement organization' in section 371(b) of the Public 
     Health Service Act (42 U.S.C. 273(b)).
       (b) Disclosures From Certain Medical Records.--Section 
     7332(b)(2) is amended by adding at the end the following:
       ``(E) To an entity described in paragraph (1)(B) of section 
     5701(k) of this title, but only to the extent authorized by 
     such section.''.

     SEC. 10. EXPANSION OF NATIONAL GUARD OUTREACH PROGRAM.

       (a) Requirement.--The Secretary of Veterans Affairs shall 
     expand the total number of personal employed by the 
     Department of Veterans Affairs as part of the Readjustment 
     Counseling Service's Global War on Terrorism Outreach Program 
     (referred to in this section as the ``Program'').
       (b) Coordination.--In carrying out subsection (a), the 
     Secretary shall coordinate participation in the Program by 
     appropriate employees of the Veterans Benefits Administration 
     and the Veterans Health Administration.
       (c) Information and Assessments.--The Secretary shall 
     ensure that--
       (1) all appropriate health, education, and benefits 
     information is available to returning members of the National 
     Guard; and
       (2) proper assessments of the needs in each of these areas 
     is made by the Department of Veterans Affairs.
       (d) Collaboration.--The Secretary of Veterans Affairs shall 
     collaborate with appropriate State National Guard officials 
     and provide such officials with any assets or services of the 
     Department of Veterans Affairs that the Secretary determines 
     to be necessary to carry out the Global War on Terrorism 
     Outreach Program.

     SEC. 11. EXPANSION OF TELE-HEALTH SERVICES.

       (a) In General.--The Secretary shall increase the number of 
     Veterans Readjustment Counseling Service facilities capable 
     of providing health services and counseling through tele-
     health linkages with facilities of the Veterans Health 
     Administration.

[[Page 30888]]

       (b) Plan.--The Secretary shall submit to the Committee on 
     Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a plan to 
     implement the requirement under subsection (a), which shall 
     describe the facilities that will have such capabilities at 
     the end of each of fiscal years 2005, 2006, and 2007.

     SEC. 12. MENTAL HEALTH DATA SOURCES REPORT.

       (a) In General.--Not less than 180 days after the date of 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit a report to the Committee on Veterans' Affairs 
     of the Senate and the Committee on Veterans' Affairs of the 
     House of Representatives describing the mental health data 
     maintained by the Department of Veterans Affairs.
       (b) Contents.--The report submitted under subsection (a) 
     shall include--
       (1) a comprehensive list of the sources of all such data, 
     including the geographic locations of facilities of the 
     Department of Veterans Affairs maintaining such data;
       (2) an assessment of the limitations or advantages to 
     maintaining the current data configuration and locations; and
       (3) any recommendations, if any, for improving the 
     collection, use, and location of mental health data 
     maintained by the Department of Veterans Affairs.

     SEC. 13. STRATEGIC PLAN FOR LONG-TERM CARE.

       (a) Publication.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall publish a strategic plan for long-term care.
       (b) Contents.--The plan published under subsection (a) 
     shall--
       (1) contain policies and strategies for--
       (A) the delivery of care in domiciliaries, residential 
     treatment facilities, and nursing homes, and for seriously 
     mentally ill veterans;
       (B) maximizing the use of State veterans homes;
       (C) locating domiciliary units as close to patient 
     populations as feasible; and
       (D) identifying freestanding nursing homes as an acceptable 
     care model;
       (2) include data on--
       (A) the care of catastrophically disabled veterans; and
       (B) the geographic distribution of catastrophically 
     disabled veterans;
       (3) address the spectrum of noninstitutional long-term care 
     options, including--
       (A) respite care;
       (B) home-based primary care;
       (C) geriatric evaluation;
       (D) adult day health care;
       (E) skilled home health care; and
       (F) community residential care; and
       (4) provide--
       (A) cost and quality comparison analyses of all the 
     different levels of care;
       (B) detailed information about geographic distribution of 
     services and gaps in care; and
       (C) specific plans for working with Medicare, Medicaid, and 
     private insurance companies to expand care.

     SEC. 14. BLIND REHABILITATION OUTPATIENT SPECIALISTS.

       (a) Findings.--Congress makes the following findings:
       (1) There are approximately 135,000 blind veterans 
     throughout the United States, including approximately 35,000 
     who are enrolled with the Department of Veterans Affairs. An 
     aging veteran population and injuries incurred in Operation 
     Iraqi Freedom and Operation Enduring Freedom are increasing 
     the number of blind veterans.
       (2) Since 1996, when the Department of Veterans Affairs 
     hired its first 14 blind rehabilitation outpatient 
     specialists (referred to in this section as ``Specialists'', 
     Specialists have been a critical part of the continuum of 
     care for blind and visually impaired veterans.
       (3) The Department of Veterans Affairs operates 10 
     residential blind rehabilitation centers that are considered 
     among the best in the world. These centers have had long 
     waiting lists, with as many as 1,500 blind veterans waiting 
     for openings in 2004.
       (4) Specialists provide--
       (A) critically needed services to veterans who are unable 
     to attend residential centers or are waiting to enter such a 
     program;
       (B) a range of services, including training with living 
     skills, mobility, and adaptation of manual skills; and
       (C) pre-admission screening and follow-up care for blind 
     rehabilitation centers.
       (5) There are not enough Specialist positions to meet the 
     increased numbers and needs of blind veterans.
       (b) Establishment of Specialist Positions.--Not later than 
     30 months after the date of enactment of this Act, the 
     Secretary of Veterans Affairs shall establish an additional 
     Specialist position at not fewer than 35 additional 
     facilities of the Department of Veterans Affairs.
       (c) Selection of Facilities.--In identifying the most 
     appropriate facilities to receive a Specialist position under 
     this section, the Secretary shall--
       (1) give priority to facilities with large numbers of 
     enrolled legally blind veterans;
       (2) ensure that each facility does not have such a 
     position; and
       (3) ensure that each facility is in need of the services of 
     such Specialists.
       (d) Coordination.--The Secretary shall coordinate the 
     provision of blind rehabilitation services for veterans with 
     services for the care of the visually impaired offered by 
     State and local agencies, especially if such State and local 
     agencies can provide similar services to veterans in settings 
     located closer to the residences of such veterans.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $3,500,000 for 
     each of the fiscal years 2006 through 2011.

     SEC. 15. COMPLIANCE REPORT.

       Section 1706(b)(5)(A) is amended by striking ``2004'' and 
     inserting ``2006''.

     SEC. 16. HEALTH CARE AND SERVICES FOR VETERANS AFFECTED BY 
                   HURRICANE KATRINA.

       (a) Requirement for Hospital Care and Medical Services for 
     Priority 8 Veterans Affected by Hurricane Katrina.--
       (1) In general.--Notwithstanding any other provision of law 
     and any notwithstanding any previous decisions made by the 
     Secretary of Veterans Affairs pursuant to chapter 17 of title 
     38 United States Code, the Secretary shall provide necessary 
     medical and health care services to any veteran affected by 
     Hurricane Katrina as if such veteran was enrolled for care 
     under section 1705 of title 38, United States Code.
       (2) Status of veterans.--For purposes of managing the 
     health care system, as required under section 1705 of title 
     38, United States Code, a veteran who seeks care under 
     paragraph (1) shall not be considered to be an enrollee of 
     the health care system under such section unless the 
     Secretary subsequently designates such a veteran as such an 
     enrollee.
       (b) Prohibition on Collection of Copayments for Veterans 
     Affected by Hurricane Katrina.--In furnishing hospital care 
     and medical services to any veteran affected by Hurricane 
     Katrina, the Secretary shall not collect from, or with 
     respect to, such veteran any payment for such care and 
     services otherwise required under any provision of law, 
     including any copayment for medications otherwise required 
     under section 1722A of title 38, United States Code.
       (c) Definition.--In this section, the term ``veteran 
     affected by Hurricane Katrina'' means any veteran who, as of 
     August 29, 2005, resided in the catchment region of the 
     Department of Veterans Affairs medical center in--
       (1) New Orleans, Louisiana;
       (2) Biloxi, Mississippi; or
       (3) Gulfport, Mississippi.
       (d) Sunset Provision.--The authority under this section 
     shall expire on January 31, 2006.

     SEC. 17. REIMBURSEMENT FOR CERTAIN VETERANS' OUTSTANDING 
                   EMERGENCY TREATMENT EXPENSES. .

        (a) In General.--Subchapter III of chapter 17 is amended 
     by inserting after section 1725 the following:

     ``Sec. 1725A. Reimbursement for emergency treatment expenses 
       for which certain veterans remain personally liable

       ``(a)(1) Subject to subsection (c), the Secretary may 
     reimburse a veteran described in subsection (b) for expenses 
     resulting from emergency treatment furnished to the veteran 
     in a non-Department facility for which the veteran remains 
     personally liable.
       ``(2) In any case in which reimbursement is authorized 
     under subsection (a)(1), the Secretary, in the Secretary's 
     discretion, may, in lieu of reimbursing the veteran, make 
     payment--
       ``(A) to a hospital or other health care provider that 
     furnished the treatment; or
       ``(B) to the person or organization that paid for such 
     treatment on behalf of the veteran.
       ``(b) A veteran referred to in subsection (a) is an 
     individual who--
       ``(1) is enrolled in the health care system established 
     under section 1705(a) of this title;
       ``(2) received care under this chapter during the 24-month 
     period preceding the furnishing of such emergency treatment;
       ``(3) is entitled to care or services under a health-plan 
     contract that partially reimburses the cost of the veteran's 
     emergency treatment;
       ``(4) is financially liable to the provider of emergency 
     care treatment for costs not covered by the veteran's health-
     plan contract, including copayments and deductibles; and
       ``(5) is not eligible for reimbursement for medical care or 
     services under section 1725 or 1728 of this title.
       ``(c)(1) Any amount paid by the Secretary under subsection 
     (a) shall exclude the amount of any payment the veteran would 
     have been required to make to the United States under this 
     chapter if the veteran had received the emergency treatment 
     from the Department.
       ``(2) The Secretary may not provide reimbursement under 
     this section with respect to any item or service--
       ``(A) provided or for which payment has been made, or can 
     reasonably be expected to be made, under the veteran's 
     health-plan contract; or
       ``(B) for which payment has been made or can reasonably be 
     expected to be made by a third party.
       ``(3)(A) Payment by the Secretary under this section on 
     behalf of a veteran to a provider of emergency treatment 
     shall, unless

[[Page 30889]]

     rejected and refunded by the provider within 30 days of 
     receipt, extinguish any liability on the part of the veteran 
     for that treatment.
       ``(B) The absence of a contract or agreement between the 
     Secretary and the provider, any provision of a contract or 
     agreement, or an assignment to the contrary shall not operate 
     to modify, limit, or negate the requirement under 
     subparagraph (A).
       ``(4) In accordance with regulations prescribed by the 
     Secretary, the Secretary shall--
       ``(A) establish criteria for determining the amount of 
     reimbursement (which may include a maximum amount) payable 
     under this section; and
       ``(B) delineate the circumstances under which such payment 
     may be made, including requirements for requesting 
     reimbursement.
       ``(d)(1) In accordance with regulations prescribed by the 
     Secretary, the United States shall have the independent right 
     to recover any amount paid under this section if, and to the 
     extent that, a third party subsequently makes a payment for 
     the same emergency treatment.
       ``(2) Any amount paid by the United States to the veteran, 
     the veteran's personal representative, successor, dependents, 
     or survivors, or to any other person or organization paying 
     for such treatment shall constitute a lien in favor of the 
     United States against any recovery the payee subsequently 
     receives from a third party for the same treatment.
       ``(3) Any amount paid by the United States to the provider 
     that furnished the veteran's emergency treatment shall 
     constitute a lien against any subsequent amount the provider 
     receives from a third party for the same emergency treatment 
     for which the United States made payment.
       ``(4) The veteran or the veteran's personal representative, 
     successor, dependents, or survivors shall--
       ``(A) ensure that the Secretary is promptly notified of any 
     payment received from any third party for emergency treatment 
     furnished to the veteran;
       ``(B) immediately forward all documents relating to a 
     payment described in subparagraph (A);
       ``(C) cooperate with the Secretary in an investigation of a 
     payment described in subparagraph (A); and
       ``(D) assist the Secretary in enforcing the United States 
     right to recover any payment made under subsection (c)(3).
       ``(e) The Secretary may waive recovery of a payment made to 
     a veteran under this section that is otherwise required under 
     subsection (d)(1) if the Secretary determines that such 
     waiver would be in the best interest of the United States, as 
     defined by regulations prescribed by the Secretary.
       ``(f) For purposes of this section--
       ``(1) the term `health-plan contract' includes--
       ``(A) an insurance policy or contract, medical or hospital 
     service agreement, membership or subscription contract, or 
     similar arrangement, under which health services for 
     individuals are provided or the expenses of such services are 
     paid;
       ``(B) an insurance program described in section 1811 of the 
     Social Security Act (42 U.S.C. 1395c) or established by 
     section 1831 of that Act (42 U.S.C. 1395j);
       ``(C) a State plan for medical assistance approved under 
     title XIX of such Act (42 U.S.C. 1396 et seq.); and
       ``(D) a workers' compensation law or plan described in 
     section 1729(A)(2)(B) of this title;
       ``(2) the term `third party' means--
       ``(A) a Federal entity;
       ``(B) a State or political subdivision of a State;
       ``(C) an employer or an employer's insurance carrier; and
       ``(D) a person or entity obligated to provide, or pay the 
     expenses of, such emergency treatment; and
       ``(3) the term `emergency treatment' has the meaning given 
     such term in section 1725 of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1725 the following:

``1725A. Reimbursement for emergency treatment expenses for which 
              certain veterans remain personally liable.''.

     SEC. 18. CONVEYANCE OF FEDERAL LAND IN EXCHANGE FOR FAIR 
                   MARKET VALUE CONSIDERATION.

       (a) Definitions.--In this section:
       (1) City.--The term ``City'' means the city of Fort Thomas, 
     Kentucky.
       (2) Fair market value consideration.--The term ``fair 
     market value consideration'' means the monetary value of the 
     Federal land as of the date of conveyance under section 2, as 
     determined by the Secretary.
       (3) Federal land.--The term ``Federal land'' means an 
     approximately 11.75 acre parcel of federally-owned property, 
     including the 15 structures located on such property, which 
     is managed by the Department of Veterans Affairs and located 
     in the northeastern portion of Tower Park in the City.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Veterans Affairs.
       (b) In General.--Subject to valid existing rights, 
     easements, and rights-of-way, the Secretary may convey all 
     right, title, and interest of the United States in and to the 
     Federal land to the City in exchange for fair market value 
     consideration.
       (c) Release From Liability.--Effective on the date of 
     conveyance to the City of the parcel of Federal land under 
     subsection (b), the United States shall not be liable for 
     damages arising out of any act, omission, or occurrence 
     relating to the Federal land and facilities conveyed, but 
     shall continue to be liable for damages caused by acts of 
     negligence committed by the United States or by any employee 
     or agent of the United States before the date of conveyance, 
     consistent with chapter 171 of title 28, United States Code.
       (d) Administrative Costs.--All administrative costs 
     relating to the conveyance of the Federal land under 
     subsection (b) shall be paid by the City to the United 
     States.

     SEC. 19. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Title 38, United States Code.--Title 38, United States 
     Code, is amended as follows:
       (1) Typographical error.--Section 1117(h)(1) is amended by 
     striking ``nothwithstanding'' and inserting 
     ``notwithstanding''.
       (2) Insertion of missing word.--Section 1513(a) is amended 
     by inserting ``section'' after ``prescribed by''.
       (3) Citation correction.--Section 1718(c)(2) is amended by 
     inserting ``of 1938'' after ``Act''.
       (4) Citation correction.--Section 1785(b)(1) is amended by 
     striking ``Robert B.'' and inserting ``Robert T.''.
       (5) Punctuation correction.--Section 2002(1) is amended by 
     inserting a closing parenthesis before the period at the end.
       (6) Punctuation correction.--Section 2011(a)(1)(C) is 
     amended by inserting a period at the end.
       (7) Cross reference correction.--Section 2041(a)(3)(A)(i) 
     is amended by striking ``under this chapter'' and inserting 
     ``established under section 3722 of this title''.
       (8) Deletion of extra words.--Section 3012(a)(1)(C)(ii) is 
     amended by striking ``on or''.
       (9) Cross reference correction.--Section 3017(b)(1)(D) is 
     amended by striking ``3011(c)'' and inserting ``3011(e)''.
       (10) Stylistic amendments.--Section 3018A is amended--
       (A) in subsections (b) and (c), by striking ``of this 
     section'' each place it appears;
       (B) in subsections (a)(4), (a)(5), (d)(1), and (d)(3) by 
     striking ``of this subsection'' each place it appears; and
       (C) in subsection (d)(3), by striking ``of this chapter'' 
     and inserting ``of this title''.
       (11) Cross reference correction.--Section 3117(b)(1) is 
     amended--
       (A) by striking ``section 8'' and inserting ``section 
     4(b)(1)''; and
       (B) by striking ``633(b)'' and inserting ``633(b)(1)''.
       (12) Insertion of missing word.--Section 3511(a)(1) is 
     amended by inserting ``sections'' after ``under both''.
       (13) Subsection headings.--
       (A) Sections 3461, 3462, 3481, 3565, 3680, and 3690 are 
     each amended by revising each subsection heading for a 
     subsection therein (appearing as a centered heading 
     immediately before the text of the subsection) so that such 
     heading appears immediately after the subsection designation 
     and is set forth in capitals-and-small-capitals typeface, 
     followed by a period and a one-em dash.
       (B) Section 3461(c) is amended by inserting after the 
     subsection designation the following: ``Duration of 
     Entitlement.--''.
       (C) Section 3462 is amended--
       (i) in subsection (d), by inserting after the subsection 
     designation the following: ``Prisoners of War.--''; and
       (ii) in subsection (e), by inserting after the subsection 
     designation the following: ``Termination of Assistance.--''.
       (14) Cross reference correction.--Section 3732(c)(10)(D) is 
     amended by striking ``clause (B) of paragraphs (5), (6), (7), 
     and (8) of this subsection'' and inserting ``paragraphs 
     (5)(B), (6), (7)(B) , and (8)(B)''.
       (15) Date of enactment reference.--Section 3733(a)(7) is 
     amended by striking ``the date of the enactment of the 
     Veterans' Benefits Act of 2003'' and inserting ``December 16, 
     2003''.
       (16) Repeal of obsolete provisions.--Section 4102A(c)(7) is 
     amended--
       (A) by striking ``With respect to program years beginning 
     during or after fiscal year 2004, one percent of'' and 
     inserting ``Of''; and
       (B) by striking ``for the program year'' and inserting 
     ``for any program year, one percent''.
       (17) Repeal of obsolete provisions.--Section 4105(b) is 
     amended--
       (A) by striking ``shall provide,'' and all that follows 
     through ``Affairs with'' and inserting ``shall, on the 15th 
     day of each month, provide the Secretary and the Secretary of 
     Veterans Affairs with updated information regarding''; and
       (B) by striking ``and shall'' and all that follows through 
     ``regarding the list''.
       (18) Citation correction.--Section 4110B is amended--
       (A) by striking ``this Act'' and inserting ``the Workforce 
     Investment Act of 1998''; and

[[Page 30890]]

       (B) by striking ``the Workforce Investment Act of 1998'' 
     and inserting ``that Act (29 U.S.C. 2822(b))''.
       (19) Cross-reference correction.--Section 4331(b)(2)(C) is 
     amended by striking ``section 2303(a)(2)(C)(ii)'' and 
     inserting ``section 2302(a)(2)(C)(ii)''
       (20) Capitalization correction.--Section 7253(d)(5) is 
     amended by striking ``court'' and inserting ``Court''.
       (21) Citation correction.--Section 8111(b)(1) is amended by 
     striking ``into the strategic'' and all that follows through 
     ``and Results Act'' and inserting ``into the strategic plan 
     of each Department under section 306 of title 5 and the 
     performance plan of each Department under section 1115 of 
     title 31''.
       (22) Repeal of obsolete provisions.--Section 8111 is 
     amended further--
       (A) in subsection (d)--
       (i) in paragraph (2), by striking ``effective October 1, 
     2003,''; and
       (ii) in paragraph (3)(A), by striking the last sentence; 
     and
       (B) in subsection (e)(2)--
       (i) in the second sentence, by striking ``shall be 
     implemented no later than October 1, 2003, and''; and
       (ii) in the third sentence, by striking ``, following 
     implementation of the schedule,''.
       (23) Citation correction.--Section 8111A(a)(2)(B)(i) is 
     amended by striking ``Robert B.'' and inserting ``Robert 
     T.''.
       (b) Public Law 107-296.--
       (1) In general.--Section 1704(d) of the Homeland Security 
     Act of 2002 (Public Law 107-296; 116 Stat. 2315) is amended--
       (A) by striking ``101(25)(d)'' and inserting 
     ``101(25)(D)''; and
       (B) by striking ``3011(a)(1)(A)(ii)(II)'' and inserting 
     ``3011(a)(1)(A)(ii)(III)''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall be effective as of November 25, 2002.
                                 ______
                                 
  SA 2695. Mr. FRIST (for Mr. Stevens) proposed an amendment to the 
bill H.R. 1400, to amend title 18, United States Code, to provide 
penalties for aiming laser pointers at airplanes, and for other 
purposes; as follows:

     SECTION 1. PROHIBITION AGAINST INTERFERING WITH FLIGHT CREWS 
                   THROUGH USE OF LASER POINTERS OR SIMILAR 
                   DEVICES.

       (a) In General.--Chapter 465 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 46508. Interference with flight crew vision

       ``(a) In General.--An individual who interferes with, or 
     attempts to interfere with, the ability of the flight crew of 
     an aircraft in flight to see, or otherwise to impair the safe 
     operation of an aircraft in flight, by illuminating the 
     aircraft with a laser pointer or similar device shall be 
     fined under title 18, imprisoned for not more than 5 years, 
     or both.
       ``(b) Exceptions.--Subsection (a) does not apply to the 
     illumination of aircraft by laser or other devices by--
       ``(1) an authorized individual in the conduct of research 
     and development or flight test operations conducted by an 
     aircraft manufacturer, the Federal Aviation Administration, 
     or any other person authorized by the Federal Aviation 
     Administration to conduct such research and development or 
     flight test operations;
       ``(2) members or elements of the Department of Defense 
     acting in an official capacity for the purpose of research, 
     development, operations, testing or training; or
       ``(3) by an individual using a laser emergency signaling 
     device to send an emergency distress signal.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     465 of title 49, United States Code, is amended by adding at 
     the end the following:

``46508. Interference with flight crew vision''.

                          ____________________




                     SENATE ACCOMPLISHMENTS IN 2005

  Mr. FRIST. Mr. President, we have a lot to do in wrapup tonight. As 
we get those papers ready and bring the year to a close, I want to look 
back over what we have been able to accomplish and then look ahead at 
what we can expect.
  In a letter to John Adams in September 1817, Thomas Jefferson, our 
third President, wrote:

       A morsel of genuine history is a thing so rare as to be 
     always valuable.

  This past year has presented far more than a morsel. We have been 
witness to an abundance of extraordinary historic milestones, from the 
Iraqi elections and Lebanon's cedar revolution, the selection of a new 
Pope in Rome, and a new Chief Justice to lead the Supreme Court to the 
outpouring of generosity for the American people, first for the tsunami 
survivors, and then to their fellow citizens on the gulf coast.
  Mr. President, 2005 has been a year of outsize events.
  I commend to my colleagues an article that appeared in Sunday's 
Washington Post. It was on the continuing success of the Army in 
reenlisting our GIs. It appeared on A-27 entitled ``GIs in Iraq 
Choosing to Re-up.''
  Across Iraq, U.S. soldiers on the front lines are reenlisting by the 
thousands. Since 2001, the Army has surpassed its retention targets by 
wider and wider margins each year. Conjuring up vivid scenes of daring 
and service, the Post reports that:

       On palace rooftops and pockmarked streets, GIs are 
     reenlisting in rituals that range from dramatic to harrowing. 
     Soldiers have taken the oath in gaudy former residences of 
     Saddam Hussein and in the spider hole near Tikrit where the 
     gray-bearded fugitive was captured in December of 2003 . . .
       Despite the risks and long months away from home, many 
     soldiers . . . say serving in Iraq gives them a powerful 
     sense of purpose.

  So during this holiday season, I ask every American to offer their 
prayers, to offer their thanks to these brave young men and women who 
are risking their lives in far away lands to protect us and to provide 
us security.
  I am gratified by the passage of the Defense appropriations bill 
tonight. This important legislation helps ensure that our armed 
services will receive the resources and authorities they need to 
protect America. From delivering advanced technologies to improving 
personnel protection, this bill delivers crucial support for our 
courageous men and women in uniform.
  While our troops are protecting us abroad, the PATRIOT Act is 
protecting us here at home. Tonight we passed a 6-month extension to 
this critical legislation. By unanimously and in a bipartisan way 
agreeing to a 6-month extension, the Senate reaffirmed that the PATRIOT 
Act is one of our most important tools in the war on terror both now 
and into the future.
  Yes, we need to improve that act and, yes, no longer can we tolerate 
obstruction to that improvement of the act, but in a bipartisan way we 
came together tonight to say that despite a lot of passions and 
statements that we could rise above it, put forth a 6-month extension, 
and then hopefully be able to address and improve the PATRIOT Act.
  It has been an intense and productive year for the Senate. We were 
able to meet many of our goals to deliver meaningful solutions to the 
needs, wants, and desires of the American people. Strength and security 
throughout were our guiding principles. We rolled up our shirt sleeves 
and tackled a number of fundamental structural issues that were driving 
up gas prices, that were inhibiting and constricting innovation, and 
that were threatening America's security.
  To strengthen America's economic security, we passed a sweeping 
deficit reduction bill today that for the first time in 8 years cuts 
the growth of mandatory spending. This was a huge victory for the 
American people. It was a huge victory for fiscal responsibility. It 
was a victory for the American taxpayer. It shows that we are serious 
as a body about fiscal restraint, about cutting out wasteful Washington 
spending. Because of these critical reforms, America will be in a 
stronger position to meet our obligations, especially to the baby 
boomers who, as we all know, are just beginning to retire, especially 
to that doubling of the seniors in our population today, especially to 
the workforce who will be supporting those seniors in the years to 
come.
  This year, we also passed a tax cut extension. We also passed an 
energy bill, a major highway bill. We addressed free trade through the 
Central American Free Trade Act. We addressed pensions. Just today, we 
passed SMART grants, which actually give up to $8,000 over 2 years to 
disadvantaged or low-income students, to Pell-income students, to 
encourage them to major in math, science, and engineering, those fields 
which we know are important to job creation in the future.
  By facing these issues head on, by responding to them, by 
legislating, we are making America less dependent on foreign oil, more 
prepared to compete with India and China in that global marketplace. We 
helped rebuild that infrastructure to support and promote our economic 
growth.

[[Page 30891]]

  We also addressed a problem that has been hanging over the small 
business community and the courts for years--the litigation lottery 
lawsuit abuse. We all know that frivolous litigation has been driving 
up health care costs. It has been driving up consumer prices for 
everything from toothpaste to blue jeans. It has been clogging our 
courts. It has been making our health care more expensive, and that 
drives people to the ranks of the uninsured. It generally wastes our 
taxpayer dollars, taxpayer dollars that can be spent more productively.
  For years, Republicans have fought for reform, have talked reform, 
but in this Congress we have delivered on litigation reform, on lawsuit 
abuse reform. We passed class action reform. We passed bankruptcy 
reform. We passed gun manufacturing liability reform. That is three 
reforms in terms of liability. Tonight, just a few hours ago, we passed 
very targeted vaccine manufacturing protections in emergency situations 
to make America safer, to help rebuild that manufacturing capacity 
which has been decimated over the past 20 years. This brings fairness 
to our system. This brings rationality to the system. This slows down 
the litigation lottery that injects inequities into our system. As a 
result, appropriate compensation will go to the people who really need 
it. Those resources which are wasted and which are taken out of the 
system are directed to those people who do deserve appropriately to be 
compensated. These are the economic issues.
  At the same time we were addressing those economic issues, we also 
continued to focus on securing our homeland, focusing on our homeland 
security, strengthening our national security.
  Earlier this year, I had the opportunity to travel in part as a 
Senator but in larger part probably as a physician to Sri Lanka, where 
I had the chance to witness the devastation that occurred as a result 
of that natural tsunami disaster. In the wake of that particular 
disaster, in this body we passed a generous relief package that helped 
the victims recover and rebuild. This critical help paid immediate 
dividends in lives saved and--we cannot dismiss this--it helped improve 
the way others around the world look at us. They recognize America's 
good will. They recognize America's compassion. I say this because I 
think it particularly is important among Muslims in Southeast Asia.
  Likewise, our outpouring of aid and assistance to Pakistan following 
their earthquake disaster has significantly improved our standing in 
that country.
  Disaster, as we all know, unfortunately, was a dominant thing 
throughout 2005, and here at home we were hit through Katrina and Rita 
by the worst natural disaster in the history of this country. Hundreds 
of thousands of residents across Alabama, Louisiana, and Mississippi 
were flooded from their homes. Katrina devastated 90,000 square miles. 
That is an area larger than the United Kingdom.
  A few hours ago, on the Senate floor, Senator Stevens was recounting 
his experiences having spent several days along that gulf coast. About 
3 to 4 days after the levees broke in New Orleans, I, too, had the 
opportunity to be in the airport as patients were being brought in and 
people were being evacuated out of New Orleans. I had the opportunity 
to talk to people on stretchers who 3 days before had homes that they 
had been in for 30, 40, 50 years. Those homes were totally washed away 
and destroyed with all of their belongings. Whole towns were washed 
away.
  We traveled also on the first trip, as well as the second trip, to 
Alabama and to Mississippi, along that entire gulf coast. One can see 
the utter catastrophe of that coast, inland for miles. The Senate 
immediately set to work providing aid, relief, and support, and that 
continued tonight.
  We passed numerous measures to help people get up off the ground and 
to get their boots back on the ground and be able to reestablish some 
element of normalcy and also to support the rebuilding efforts that 
have begun, that will result in renewal we all know will continue long 
into the future.
  Tonight, as part of the Defense appropriations bill, we passed $29 
billion in Hurricanes Katrina and Rita relief. We will continue to work 
hard to help the citizens of the gulf coast rebuild, renew, and restore 
their communities in the days ahead, in the weeks and months ahead, 
and, indeed, in the years ahead. The American people stand firmly 
behind their neighbors in the gulf region.
  We also took action tonight to prepare for another potential disaster 
that is waiting to happen, and that is the threat of avian flu. We do 
not know if avian flu is going to become transmissible from one person 
to another person to another, but what we do know is that it is a novel 
virus. It is a new virus. It is very similar to that virus of 1918 
which we know killed about 50,000 people--actually killed about 30 
million to 40 million people worldwide and half a million people in 
this country.
  We know that novel virus we do not have any immunity to. We don't 
have any natural immunity to it. We know with that novel virus today, 
that people who have been infected have a 50-percent mortality rate. 
One out of every two people we know were infected with that virus died. 
We know that virus has jumped to other species. It jumped from avian or 
birds that it starts in, to cats, and from cats we know that it has 
jumped to humans. We know that 5 million--20 million birds died, and 
100 million, now 200 million birds died, and it started in southeast 
Asia and is now moving across to eastern Europe. We do not know if it 
is going to become a pandemic, but what we do know is we are 
unprepared. We know it is fast moving.
  The Congressional Budget Office study the other day said if that 
virus does become transmissible, and if it has the same fatality rate 
and prevalence rate as that virus in 1918, the so-called Spanish flu, 
the economic impact on this country could be as high as $675 billion.
  The good news is we know if we become prepared, we can reduce that 
markedly, and we can save lives. But we are unprepared today. How do we 
respond? Again, about 2 hours ago we put in money, additional 
resources, and we put in appropriate targeted liability protections to 
help build our manufacturing base, and we added an element of 
compensation in the event that somebody was inadvertently hurt in some 
way by a vaccine or a countermeasure that was necessary in emergency 
situations, they could seek and receive compensation.
  We are going to be better prepared as a product of this. Whether it 
is in the next 5 weeks, 5 months, or 5 years, we will be able to look 
our constituents in the eye and tell them that we did the right thing 
on December 21, 2005, and that help, indeed, is on the way.
  Our Nation is a large nation. It is a diverse and a vibrant nation. 
To meet all of these challenges before us, we need a sound government, 
a strong government, an efficient government that meets its basic 
obligations. Here, too, we have acted this year. We made progress. We 
need a government that is smart, that is efficient, that is effective; 
a government that works for the people and respects the taxpayers' 
hard-earned dollar. To that end, this year we passed a budget 
resolution. What is remarkable--but I am sure doesn't sound remarkable 
to people across America who are viewing tonight--is the fact that we 
passed all 12 appropriations bills, our spending bills, one by one, 
individually, across the floor of the Senate.
  It is almost embarrassing that we have to say that is a great 
achievement, but indeed in this body it is a tremendous achievement 
that has not been achieved in years. We passed the Health and Human 
Services bill a couple of hours ago, the 12th of those bills. These are 
the bills that ensure that Government is carrying out its most basic 
function: to protect and serve the American people and to do so in a 
fiscally responsible way.
  This year we were also able to overcome partisan obstruction, which 
was very frustrating, which continued for about 2\1/2\, almost 3 years. 
We were able to overcome the judicial obstruction, this partisan 
obstruction, and indeed successfully confirm eight Federal

[[Page 30892]]

judges who had previously been obstructed, who had previously been 
filibustered. These judges now are serving America proudly. They allow 
our courts to be able to function at full capacity and thus provide the 
justice that had been lacking because of not being able to fill those 
seats.
  Of course, this fall we had the privilege of confirming a new Chief 
Justice to the Supreme Court; a man all of us have gotten to know, the 
eminently qualified and highly respected Justice John Roberts.
  All of this is just a partial accounting of the work that we were 
able to do this year to strengthen America, to move us forward, to 
strengthen our economic security, to strengthen our national security. 
In the new year, we are going to have a lot of challenges. We have a 
lot to accomplish over the next year. But I am absolutely confident 
that by keeping our eye on the ball, by staying focused, by working 
together in a bipartisan way we will be able to continue to cut 
bureaucratic redtape, to have more efficient Government, to demonstrate 
more fiscal restraint, to lower Government spending, to support our 
troops in the field, and to promote policies that will make America 
safer and more prosperous and healthier and stronger.
  I extend my warm wishes to my colleagues for a joyous holiday season. 
The holidays also are an opportunity to gather with loved ones, to 
cherish achievements, and to recommit ourselves to the challenges that 
lay ahead. May we all find strength and renewal in this season, and may 
we all allow the good will which warms our homes during the holidays to 
be shared with others--our families, our friends, our neighbors--
throughout the year to come.
  To our colleagues, to our staff, to the pages who are here tonight, 
the colleagues who hopefully are at home and in bed now, to the press 
corps who has been so actively covering us up until about 15 or 20 
minutes ago and are probably writing their stories right now, I wish 
you all happy holidays, and to all a very Merry Fristmas.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. FRIST. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                       STATUS QUO OF NOMINATIONS

  Mr. FRIST. Mr. President, as in executive session, I ask unanimous 
consent that all nominations received by the Senate during the first 
session of the 109th Congress remain in status quo following the sine 
die adjournment of the first session under the provisions of rule XXXI, 
paragraph 6, of the Standing Rules of the Senate, with the following 
exceptions: Calendar No. 436, Brett Kavanaugh, PN203, and a list of 
nominations from the Armed Services that is at the desk.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                           EXECUTIVE SESSION

                                 ______
                                 

                           EXECUTIVE CALENDAR

  Mr. FRIST. Mr. President, I ask unanimous consent the Senate 
immediately proceed to executive session to consider the following 
nominations on today's Executive Calendar, Calendar Nos. 149, 219, 464, 
483, 486, 487, 488, 489, and all nominations on the Secretary's desk; 
provided further the Commerce Committee be discharged further from 
consideration of the following nominations, and they be considered en 
bloc: PN1147 and PN1146; I further ask unanimous consent the 
nominations be confirmed en bloc, the motions to reconsider be laid on 
the table, the President be immediately notified of the Senate's 
action, and the Senate then return to legislative session.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The nominations considered and confirmed en bloc are as follows:


                              in the army

       The following named officers for appointment in the United 
     States Army to the grade indicated under title 10, U.S.C., 
     section 624.

                        To be brigadier general

     Col. Donald M. Bradshaw, 0000


                       department of the interior

       R. Thomas Weimer, of Colorado, to be an Assistant Secretary 
     of the Interior.


                    department of homeland security

       Emilio T. Gonzalez, of Florida, to be Director of the 
     Bureau of Citizenship and Immigration Services, Department of 
     Homeland Security.


                department of health and human services

       Vincent J. Ventimiglia, Jr., of Maryland, to be an 
     Assistant Secretary of Health and Human Services.


                            in the air force

       The following named officers for appointment in the United 
     States Air Force to the grade indicated under title 10, 
     U.S.C., section 624:

                          To be major general

     Brigadier General Philip M. Breedlove, 0000


                              in the army

       The following named officer for appointment in the United 
     States Army to the grade indicated while assigned to a 
     position of importance and responsibility under the title 10, 
     U.S.C., section 601:

                        To be lieutenant general

     Maj. Gen. Gary D. Speer, 0000
       The following named officer for appointment in the United 
     States Army to the grade indicated while assigned to a 
     position of importance and responsibility under title 10, 
     U.S.C., section 601:

                        To be lieutenant general

     Lt. Gen. Charles C. Campbell, 0000


                          in the marine corps

       The following named officer for appointment in the United 
     States Marine Corps Reserve to the grade indicated under 
     title 10, U.S.C., section 12203:

                          To be major general

     Brig. Gen. Andrew B. Davis, 0000

               Nominations Placed on the Secretary's Desk


                            in the air force

       PN785 AIR FORCE nominations (177) beginning JOLENE A. * 
     AINSWORTH, and ending DAVID C. * ZIMMERMAN, which nominations 
     were received by the Senate and appeared in the Congressional 
     Record of July 28, 2005.
       PN994 AIR FORCE nominations (61) beginning CRAIG L. ADAMS, 
     and ending MATTHEW C. WYATT, which nominations were received 
     by the Senate and appeared in the Congressional Record of 
     October 17, 2005.
       PN996 AIR FORCE nominations (1235) beginning JAY O. AANRUD, 
     and ending SCOTT C. ZIPPWALD, which nominations were received 
     by the Senate and appeared in the Congressional Record of 
     October 17, 2005.
       PN1123 AIR FORCE nomination of Martin E. Keillor, which was 
     received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.
       PN1124 AIR FORCE nominations (3) beginning ROBERT W. 
     DESVERREAUZ, and ending CHETAN U. KHAROD, which nominations 
     were received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.
       PN1125 AIR FORCE nomination of Julie S. Miller, which was 
     received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.
       PN1126 AIR FORCE nomination of Kara A. Gormont, which was 
     received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.


                              in the army

       PN1103-1 ARMY nominations (527) beginning DEIBY ACEVEDO, 
     and ending DAVID R. ZYSK, which nominations were received by 
     the Senate and appeared in the Congressional Record of 
     December 13, 2005.
       PN1104 ARMY nominations (478) beginning HOLTORF R. ALONSO, 
     and ending RICHARD M. ZYGADLO, which nominations were 
     received by the Senate and appeared in the Congressional 
     Record of December 13, 2005.
       PN1105 ARMY nominations (17) beginning THOMAS E. AYRES, and 
     ending PETER C. ZOLPER, which nominations were received by 
     the Senate and appeared in the Congressional Record of 
     December 13, 2005.
       PN1127 ARMY nomination of Cindy R. Jebb, which was received 
     by the Senate and appeared in the Congressional Record of 
     December 14, 2005.
       PN1128 ARMY nomination of Richard L. Chavez, which was 
     received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.
       PN1129 ARMY nominations (2) beginning SAMUEL CASSCELLS, and 
     ending SLOBODAN JAZAREVIC, which nominations were received by 
     the Senate and appeared in the Congressional Record of 
     December 14, 2005.
       PN1130 ARMY nominations (5) beginning JOSEPH J. IMPALLARIA, 
     and ending ARTHUR E. LEES, which nominations were received by 
     the Senate and appeared in the Congressional Record of 
     December 14, 2005.


                          in the marine corps

       PN1131 MARINE CORPS nomination of Michelle A. Rakers, which 
     was received by

[[Page 30893]]

     the Senate and appeared in the Congressional Record of 
     December 14, 2005.


                              in the navy

       PN1110 NAVY nominations (42) beginning TONY C. BAKER, and 
     ending JAMES J. VOPELIUS, which nominations were received by 
     the Senate and appeared in the Congressional Record of 
     December 13, 2005.
       PN1132 NAVY nomination of Lloyd G. Lecain, which was 
     received by the Senate and appeared in the Congressional 
     Record of December 14, 2005.


   in the coast guard in the grade indicated under title 14, u.s.c., 
                              section 211:

                       To be lieutenant commander

     Connie M. Rooke, 0000

                            To be lieutenant

     Joseph T. Benin, 0000

                          ____________________




                          LEGISLATIVE SESSION

  The PRESIDING OFFICER. Under the previous order, the Senate will 
return to legislative session.

                          ____________________




                         UNCLEARED NOMINATIONS

  Mr. FRIST. Mr. President, there are several nominations that had been 
cleared for some length of time on our side of the aisle, and I was 
disappointed we were not able to clear them on the other side. The 
Intelligence Committee reported the General Counsel of the Office of 
the Director of National Intelligence on July 26, and that is being 
held up. We have the Assistant Secretary of Defense and an Under 
Secretary of Defense that we have been unable to reach consent on. I 
hope my colleagues on the other side of the aisle would allow these 
important defense and intelligence positions to go forward, and we will 
try again when we return.

                          ____________________




                     AUTHORITY TO MAKE APPOINTMENTS

  Mr. FRIST. I ask unanimous consent that notwithstanding the upcoming 
recess or adjournment of the Senate, the President of the Senate, the 
President pro tempore, and the majority and minority leaders be 
authorized to make appointments to commissions, committees, boards, 
conferences, or interparliamentary conferences authorized by law by 
concurrent action of the two Houses or by order of the Senate.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                           SIGNING AUTHORITY

  Mr. FRIST. I ask unanimous consent that during adjournment the Senate 
majority leader and junior Senator from Virginia be authorized to sign 
duly enrolled bills or joint resolutions.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




             ORDER FOR NOMINATIONS TO REMAIN IN STATUS QUO

  Mr. FRIST. As in executive session, I ask unanimous consent all 
nominations received by the Senate during the first session of the 
109th Congress remain in status quo following the sine die adjournment 
of the first session under the provisions of rule XXXI, paragraph 6, of 
the Standing Rules of the Senate, with the following exception: 
Calendar No. 436, Brett Kavanaugh, PN203, and a list of nominations 
from the armed services that are at the desk.
  The PRESIDING OFFICER. Without objection it is so ordered.

                          ____________________




               GLOBAL PATHOGEN SURVEILLANCE AND RESPONSE

  Mr. FRIST. I ask unanimous consent the Senate proceed to the 
immediate consideration of S. 2170, introduced earlier today.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2170) to provide for global pathogen 
     surveillance and response.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the bill be read a third time and 
passed, the motion to reconsider be laid upon the table, and any 
statements related to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 2170) was read the third time and passed, as follows:

                                S. 2170

       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 ``Global Pathogen Surveillance 
     Act of 2005''.

     SEC. 2. FINDINGS; PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) The frequency of the occurrence of biological events 
     that could threaten the national security of the United 
     States has increased and is likely increasing. The threat to 
     the United States from such events includes threats from 
     diseases that infect humans, animals, or plants regardless of 
     if such diseases are introduced naturally, accidentally, or 
     intentionally.
       (2) The United States lacks an effective and real-time 
     system to detect, identify, contain, and respond to global 
     threats and also lacks an effective mechanism to disseminate 
     information to the national response community if such 
     threats arise.
       (3) Bioterrorism poses a grave national security threat to 
     the United States. The insidious nature of a bioterrorist 
     attack, the likelihood that the recognition of such an attack 
     would be delayed, and the underpreparedness of the domestic 
     public health infrastructure to respond to such an attack 
     could result in catastrophic consequences following a 
     biological weapons attack against the United States.
       (4) The ability to recognize that a country or organization 
     is carrying out a covert biological weapons programs is 
     dependent on a number of indications and warnings. A critical 
     component of this recognition is the timely detection of 
     sentinel events such as laboratory accidents and community-
     level outbreaks that could be the earliest indication of an 
     emerging bioterrorist program in a foreign country. Early 
     detection of such events may enable earlier counterprolif-
     eration intervention.
       (5) A contagious pathogen engineered as a biological weapon 
     and developed, tested, produced, or released in a foreign 
     country could quickly spread to the United States. 
     Considering the realities of international travel, trade, and 
     migration patterns, a dangerous pathogen appearing naturally, 
     accidentally, or intentionally anywhere in the world can 
     spread to the United States in a matter of days, before any 
     effective quarantine or isolation measures could be 
     implemented.
       (6) To combat bioterrorism effectively and ensure that the 
     United States is fully prepared to prevent, recognize, and 
     contain a biological weapons attack, or emerging infectious 
     disease, measures to strengthen the domestic public health 
     infrastructure and improve domestic event detection, 
     surveillance, and response, while absolutely essential, are 
     not sufficient.
       (7) The United States should enhance cooperation with the 
     World Health Organization, regional international health 
     organizations, and individual countries, including data 
     sharing with appropriate agencies and departments of the 
     United States, to help detect and quickly contain infectious 
     disease outbreaks or a bioterrorism agent before such a 
     disease or agent is spread.
       (8) The World Health Organization has done an impressive 
     job in monitoring infectious disease outbreaks around the 
     world, particularly with the establishment in April 2000 of 
     the Global Outbreak Alert and Response Network.
       (9) The capabilities of the World Health Organization 
     depend on the quality of the data and information the 
     Organization receives from the countries that are members of 
     the Organization and is further limited by the narrow list of 
     diseases (such as plague, cholera, and yellow fever) on which 
     such surveillance and monitoring is based and by the 
     consensus process used by the Organization to add new 
     diseases to the list. Developing countries, in particular, 
     often are unable to devote the necessary resources to build 
     and maintain public health infrastructures.
       (10) In particular, developing countries could benefit 
     from--
       (A) better trained public health professionals and 
     epidemiologists to recognize disease patterns;
       (B) appropriate laboratory equipment for diagnosis of 
     pathogens;
       (C) disease reporting systems that--
       (i) are based on disease and syndrome surveillance; and
       (ii) could enable an effective response to a biological 
     event to begin at the earliest possible opportunity;
       (D) a narrowing of the existing technology gap in disease 
     and syndrome surveillance capabilities, based on reported 
     symptoms, and real-time information dissemination to public 
     health officials; and
       (E) appropriate communications equipment and information 
     technology to efficiently transmit information and data 
     within national, international regional, and

[[Page 30894]]

     international health networks, including inexpensive, 
     Internet-based Geographic Information Systems (GIS) and 
     relevant telephone-based systems for early recognition and 
     diagnosis of diseases.
       (11) An effective international capability to detect, 
     monitor, and quickly diagnose infectious disease outbreaks 
     will offer dividends not only in the event of biological 
     weapons development, testing, production, and attack, but 
     also in the more likely cases of naturally occurring 
     infectious disease outbreaks that could threaten the United 
     States. Furthermore, a robust surveillance system will serve 
     to deter, prevent, or contain terrorist use of biological 
     weapons, mitigating the intended effects of such malevolent 
     uses.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To provide the United States with an effective and 
     real-time system to detect biological threats that--
       (A) utilizes classified and unclassified information to 
     detect such threats; and
       (B) may be utilized by the human or the agricultural 
     domestic disease response community.
       (2) To enhance the capability of the international 
     community, through the World Health Organization and 
     individual countries, to detect, identify, and contain 
     infectious disease outbreaks, whether the cause of those 
     outbreaks is intentional human action or natural in origin.
       (3) To enhance the training of public health professionals 
     and epidemiologists from eligible developing countries in 
     advanced Internet-based disease and syndrome surveillance 
     systems, in addition to traditional epidemiology methods, so 
     that such professionals and epidemiologists may better 
     detect, diagnose, and contain infectious disease outbreaks, 
     especially such outbreaks caused by the pathogens that may be 
     likely to be used in a biological weapons attack.
       (4) To provide assistance to developing countries to 
     purchase appropriate communications equipment and information 
     technology to detect, analyze, and report biological threats, 
     including--
       (A) relevant computer equipment, Internet connectivity 
     mechanisms, and telephone-based applications to effectively 
     gather, analyze, and transmit public health information for 
     infectious disease surveillance and diagnosis; and
       (B) appropriate computer equipment and Internet 
     connectivity mechanisms--
       (i) to facilitate the exchange of Geographic Information 
     Systems-based disease and syndrome surveillance information; 
     and
       (ii) to effectively gather, analyze, and transmit public 
     health information for infectious disease surveillance and 
     diagnosis.
       (5) To make available greater numbers of public health 
     professionals who are employed by the Government of the 
     United States to international regional and international 
     health organizations, international regional and 
     international health networks, and United States diplomatic 
     missions, as appropriate.
       (6) To expand the training and outreach activities of 
     United States laboratories located in foreign countries, 
     including the Centers for Disease Control and Prevention or 
     Department of Defense laboratories, to enhance the public 
     health capabilities of developing countries.
       (7) To provide appropriate technical assistance to existing 
     international regional and international health networks and, 
     as appropriate, seed money for new international regional and 
     international networks.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible developing country.--The term ``eligible 
     developing country'' means any developing country that--
       (A) has agreed to the objective of fully complying with 
     requirements of the World Health Organization on reporting 
     public health information on outbreaks of infectious 
     diseases;
       (B) has not been determined by the Secretary, for purposes 
     of section 40 of the Arms Export Control Act (22 U.S.C. 
     2780), section 620A of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2371), or section 6(j) of the Export Administration 
     Act of 1979 (as in effect pursuant to the International 
     Emergency Economic Powers Act; 50 U.S.C. 1701 et seq.), to 
     have repeatedly provided support for acts of international 
     terrorism, unless the Secretary exercises a waiver certifying 
     that it is in the national interest of the United States to 
     provide assistance under the provisions of this Act; and
       (C) is a party to the Convention on the Prohibition of the 
     Development, Production and Stockpiling of Bacteriological 
     (Biological) and Toxin Weapons and on Their Destruction, done 
     at Washington, London, and Moscow April 10, 1972 (26 UST 
     583).
       (2) Eligible national.--The term ``eligible national'' 
     means any citizen or national of an eligible developing 
     country who--
       (A) does not have a criminal background;
       (B) is not on any immigration or other United States watch 
     list; and
       (C) is not affiliated with any foreign terrorist 
     organization.
       (3) International health organization.--The term 
     ``international health organization'' includes the World 
     Health Organization, regional offices of the World Health 
     Organization, and international health organizations, such as 
     the Pan American Health Organization.
       (4) Laboratory.--The term ``laboratory'' means a facility 
     for the biological, microbiological, serological, chemical, 
     immuno-hematological, hematological, biophysical, 
     cytological, pathological, or other medical examination of 
     materials derived from the human body for the purpose of 
     providing information for the diagnosis, prevention, or 
     treatment of any disease or impairment of, or the assessment 
     of the health of, human beings.
       (5) Secretary.--Unless otherwise provided, the term 
     ``Secretary'' means the Secretary of State.
       (6) Disease and syndrome surveillance.--The term ``disease 
     and syndrome surveillance'' means the recording of clinician-
     reported symptoms (patient complaints) and signs (derived 
     from physical examination and laboratory data) combined with 
     simple geographic locators to track the emergence of a 
     disease in a population.

     SEC. 4. ELIGIBILITY FOR ASSISTANCE.

       (a) In General.--Except as provided in subsection (b), 
     assistance may be provided to an eligible developing country 
     under any provision of this Act only if the government of the 
     eligible developing country--
       (1) permits personnel from the World Health Organization 
     and the Centers for Disease Control and Prevention to 
     investigate outbreaks of infectious diseases within the 
     borders of such country; and
       (2) provides pathogen surveillance data to the appropriate 
     agencies and departments of the United States and to 
     international health organizations.
       (b) Waiver.--The Secretary may waive the prohibition set 
     out in subsection (a) if the Secretary determines that it is 
     in the national interest of the United States to provide such 
     a waiver.

     SEC. 5. RESTRICTION.

       (a)  In General.--Notwithstanding any other provision of 
     this Act, no foreign national participating in a program 
     authorized under this Act shall have access, during the 
     course of such participation, to a select agent or toxin 
     described in section 73.4 of title 42, Code of Federal 
     Regulations (or any corresponding similar regulation) or an 
     overlap select agent or toxin described in section 73.5 of 
     such title (or any corresponding similar regulation) that may 
     be used as, or in, a biological weapon, except in a 
     supervised and controlled setting.
       (b) Relationship to Regulations.--The restriction set out 
     in subsection (a) may not be construed to limit the ability 
     of the Secretary of Health and Human Services to prescribe, 
     through regulation, standards for the handling of a select 
     agent or toxin or an overlap select agent or toxin described 
     in such subsection.

     SEC. 6. FELLOWSHIP PROGRAM.

       (a) Establishment.--There is established a fellowship 
     program under which the Secretary, in consultation with the 
     Secretary of Health and Human Services and subject to the 
     availability of appropriations, shall award fellowships to 
     eligible nationals to pursue public health education or 
     training, as follows:
       (1) Master of public health degree.--Graduate courses of 
     study leading to a master of public health degree with a 
     concentration in epidemiology from an institution of higher 
     education in the United States with a Center for Public 
     Health Preparedness, as determined by the Director of the 
     Centers for Disease Control and Prevention.
       (2) Advanced public health epidemiology training.--Advanced 
     public health training in epidemiology for public health 
     professionals from eligible developing countries to be 
     carried out at the Centers for Disease Control and 
     Prevention, an appropriate facility of a State, or an 
     appropriate facility of another agency or department of the 
     United States (other than a facility of the Department of 
     Defense or a national laboratory of the Department of Energy) 
     for a period of not less than 6 months or more than 12 
     months.
       (b) Specialization in Bioterrorism.--In addition to the 
     education or training specified in subsection (a), each 
     recipient of a fellowship under this section (in this section 
     referred to as a ``fellow'') may take courses of study at the 
     Centers for Disease Control and Prevention or at an 
     equivalent facility on diagnosis and containment of likely 
     bioterrorism agents.
       (c) Fellowship Agreement.--
       (1) In general.--A fellow shall enter into an agreement 
     with the Secretary under which the fellow agrees--
       (A) to maintain satisfactory academic progress, as 
     determined in accordance with regulations issued by the 
     Secretary and confirmed in regularly scheduled updates to the 
     Secretary from the institution providing the education or 
     training on the progress of the fellow's education or 
     training;
       (B) upon completion of such education or training, to 
     return to the fellow's country of nationality or last 
     habitual residence (so long as it is an eligible developing 
     country) and complete at least 4 years of employment in a 
     public health position in the government or a 
     nongovernmental, not-for-profit entity in that country or, 
     with the approval of the Secretary, complete part or all of 
     this

[[Page 30895]]

     requirement through service with an international health 
     organization without geographic restriction; and
       (C) that, if the fellow is unable to meet the requirements 
     described in subparagraph (A) or (B), the fellow shall 
     reimburse the United States for the value of the assistance 
     provided to the fellow under the fellowship program, together 
     with interest at a rate that--
       (i) is determined in accordance with regulations issued by 
     the Secretary; and
       (ii) is not higher than the rate generally applied in 
     connection with other Federal loans.
       (2) Waivers.--The Secretary may waive the application of 
     subparagraph (B) or (C) of paragraph (1) if the Secretary 
     determines that it is in the national interest of the United 
     States to provide such a waiver.
       (d) Agreement.--The Secretary, in consultation with the 
     Secretary of Health and Human Services, is authorized to 
     enter into an agreement with the government of an eligible 
     developing country under which such government agrees--
       (1) to establish a procedure for the nomination of eligible 
     nationals for fellowships under this section;
       (2) to guarantee that a fellow will be offered a 
     professional public health position within the developing 
     country upon completion of the fellow's studies; and
       (3) to submit to the Secretary a certification stating that 
     a fellow has concluded the minimum period of employment in a 
     public health position required by the fellowship agreement, 
     including an explanation of how the requirement was met.
       (e) Participation of United States Citizens.--On a case-by-
     case basis, the Secretary may provide for the participation 
     of a citizen of the United States in the fellowship program 
     under the provisions of this section if--
       (1) the Secretary determines that it is in the national 
     interest of the United States to provide for such 
     participation; and
       (2) the citizen of the United States agrees to complete, at 
     the conclusion of such participation, at least 5 years of 
     employment in a public health position in an eligible 
     developing country or at an international health 
     organization.
       (f) Use of Existing Programs.--The Secretary, with the 
     concurrence of the Secretary of Health and Human Services, 
     may elect to use existing programs of the Department of 
     Health and Human Services to provide the education and 
     training described in subsection (a) if the requirements of 
     subsections (b), (c), and (d) will be substantially met under 
     such existing programs.

     SEC. 7. IN-COUNTRY TRAINING IN LABORATORY TECHNIQUES AND 
                   DISEASE AND SYNDROME SURVEILLANCE.

       (a) Laboratory Techniques.--
       (1) In general.--The Secretary, after consultation with the 
     Secretary of Health and Human Services and in conjunction 
     with the Director of the Centers for Disease Control and 
     Prevention and the Secretary of Defense, and subject to the 
     availability of appropriations, shall provide assistance for 
     short training courses for eligible nationals who are 
     laboratory technicians or other public health personnel in 
     laboratory techniques relating to the identification, 
     diagnosis, and tracking of pathogens responsible for possible 
     infectious disease outbreaks.
       (2) Location.--The training described in paragraph (1) 
     shall be held outside the United States and may be conducted 
     in facilities of the Centers for Disease Control and 
     Prevention located in foreign countries or in Overseas 
     Medical Research Units of the Department of Defense, as 
     appropriate.
       (3) Coordination with existing programs.--The Secretary 
     shall coordinate the training described in paragraph (1), 
     where appropriate, with existing programs and activities of 
     international health organizations.
       (b) Disease and Syndrome Surveillance.--
       (1) In general.--The Secretary, after consultation with the 
     Secretary of Health and Human Services and in conjunction 
     with the Director of the Centers for Disease Control and 
     Prevention and the Secretary of Defense and subject to the 
     availability of appropriations, shall establish and provide 
     assistance for short training courses for eligible nationals 
     who are health care providers or other public health 
     personnel in techniques of disease and syndrome surveillance 
     reporting and rapid analysis of syndrome information using 
     Geographic Information System (GIS) tools.
       (2) Location.--The training described in paragraph (1) 
     shall be conducted via the Internet or in appropriate 
     facilities located in a foreign country, as determined by the 
     Secretary.
       (3) Coordination with existing programs.--The Secretary 
     shall coordinate the training described in paragraph (1), 
     where appropriate, with existing programs and activities of 
     international regional and international health 
     organizations.

     SEC. 8. ASSISTANCE FOR THE PURCHASE AND MAINTENANCE OF PUBLIC 
                   HEALTH LABORATORY EQUIPMENT AND SUPPLIES.

       (a) Authorization.--The President is authorized to provide, 
     on such terms and conditions as the President may determine, 
     assistance to eligible developing countries to purchase and 
     maintain the public health laboratory equipment and supplies 
     described in subsection (b).
       (b) Equipment and Supplies Covered.--The equipment and 
     supplies described in this subsection are equipment and 
     supplies that are--
       (1) appropriate, to the extent possible, for use in the 
     intended geographic area;
       (2) necessary to collect, analyze, and identify 
     expeditiously a broad array of pathogens, including mutant 
     strains, which may cause disease outbreaks or may be used in 
     a biological weapon;
       (3) compatible with general standards set forth by the 
     World Health Organization and, as appropriate, the Centers 
     for Disease Control and Prevention, to ensure 
     interoperability with international regional and 
     international public health networks; and
       (4) not defense articles, defense services, or training, as 
     such terms are defined in the Arms Export Control Act (22 
     U.S.C. 2751 et seq.).
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (as in effect pursuant to the 
     International Emergency Economic Powers Act; 50 U.S.C. 1701 
     et seq.).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of equipment or supplies that, if made in the 
     United States, would be subject to the Arms Export Control 
     Act (22 U.S.C. 2751 et seq.) or likely be barred or subject 
     to special conditions under the Export Administration Act of 
     1979 (as in effect pursuant to the International Emergency 
     Economic Powers Act; 50 U.S.C. 1701 et seq.).
       (e) Procurement Preference.--In the use of grant funds 
     authorized under subsection (a), preference should be given 
     to the purchase of equipment and supplies of United States 
     manufacture. The use of amounts appropriated to carry out 
     this section shall be subject to section 604 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2354).
       (f) Country Commitments.--The assistance provided under 
     this section for equipment and supplies may be provided only 
     if the eligible developing country that receives such 
     equipment and supplies agrees to provide the infrastructure, 
     technical personnel, and other resources required to house, 
     maintain, support, secure, and maximize use of such equipment 
     and supplies.

     SEC. 9. ASSISTANCE FOR IMPROVED COMMUNICATION OF PUBLIC 
                   HEALTH INFORMATION.

       (a) Assistance for Purchase of Communication Equipment and 
     Information Technology.--The President is authorized to 
     provide, on such terms and conditions as the President may 
     determine, assistance to eligible developing countries to 
     purchase and maintain the communications equipment and 
     information technology described in subsection (b), and the 
     supporting equipment, necessary to effectively collect, 
     analyze, and transmit public health information.
       (b) Covered Equipment.--The communications equipment and 
     information technology described in this subsection are 
     communications equipment and information technology that--
       (1) are suitable for use under the particular conditions of 
     the area of intended use;
       (2) meet the standards set forth by the World Health 
     Organization and, as appropriate, the Secretary of Health and 
     Human Services, to ensure interoperability with like 
     equipment of other countries and international organizations; 
     and
       (3) are not defense articles, defense services, or 
     training, as those terms are defined in the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.).
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to exempt the exporting of goods and technology 
     from compliance with applicable provisions of the Export 
     Administration Act of 1979 (as in effect pursuant to the 
     International Emergency Economic Powers Act; 50 U.S.C. 1701 
     et seq.).
       (d) Limitation.--Amounts appropriated to carry out this 
     section shall not be made available for the purchase from a 
     foreign country of communications equipment or information 
     technology that, if made in the United States, would be 
     subject to the Arms Export Control Act (22 U.S.C. 2751 et 
     seq.) or likely be barred or subject to special conditions 
     under the Export Administration Act of 1979 (as in effect 
     pursuant to the International Emergency Economic Powers Act; 
     50 U.S.C. 1701 et seq.).
       (e) Procurement Preference.--In the use of grant funds 
     under subsection (a), preference should be given to the 
     purchase of communications equipment and information 
     technology of United States manufacture. The use of amounts 
     appropriated to carry out this section shall be subject to 
     section 604 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2354).
       (f) Assistance for Standardization of Reporting.--The 
     President is authorized to provide, on such terms and 
     conditions as the President may determine, technical 
     assistance and grant assistance to international health 
     organizations to facilitate standardization in the reporting 
     of public health information between and among developing 
     countries and international health organizations.

[[Page 30896]]

       (g) Country Commitments.--The assistance provided under 
     this section for communications equipment and information 
     technology may be provided only if the eligible developing 
     country that receives such equipment and technology agrees to 
     provide the infrastructure, technical personnel, and other 
     resources required to house, maintain, support, secure, and 
     maximize use of such equipment and technology.

     SEC. 10. ASSIGNMENT OF PUBLIC HEALTH PERSONNEL TO UNITED 
                   STATES MISSIONS AND INTERNATIONAL 
                   ORGANIZATIONS.

       (a) In General.--Upon the request of the chief of a 
     diplomatic mission of the United States or of the head of an 
     international regional or international health organization, 
     and with the concurrence of the Secretary and of the employee 
     concerned, the head of an agency or department of the United 
     States may assign to the mission or the organization any 
     officer or employee of the agency or department that occupies 
     a public health position within the agency or department for 
     the purpose of enhancing disease and pathogen surveillance 
     efforts in developing countries.
       (b) Reimbursement.--The costs incurred by an agency or 
     department of the United States by reason of the detail of 
     personnel under subsection (a) may be reimbursed to that 
     agency or department out of the applicable appropriations 
     account of the Department of State if the Secretary 
     determines that the agency or department may otherwise be 
     unable to assign such personnel on a non-reimbursable basis.

     SEC. 11. EXPANSION OF CERTAIN UNITED STATES GOVERNMENT 
                   LABORATORIES ABROAD.

       (a) In General.--Subject to the availability of 
     appropriations, the Director of the Centers for Disease 
     Control and Prevention and the Secretary of Defense shall 
     each--
       (1) increase the number of personnel assigned to 
     laboratories of the Centers for Disease Control and 
     Prevention or the Department of Defense, as appropriate, 
     located in eligible developing countries that conduct 
     research and other activities with respect to infectious 
     diseases; and
       (2) expand the operations of such laboratories, especially 
     with respect to the implementation of on-site training of 
     foreign nationals and activities affecting the region in 
     which the country is located.
       (b) Cooperation and Coordination Between Laboratories.--
     Subsection (a) shall be carried out in such a manner as to 
     foster cooperation and avoid duplication between and among 
     laboratories.
       (c) Relation to Core Missions and Security.--The expansion 
     of the operations of the laboratories of the Centers for 
     Disease Control and Prevention or the Department of Defense 
     located in foreign countries under this section may not--
       (1) detract from the established core missions of the 
     laboratories; or
       (2) compromise the security of those laboratories, as well 
     as their research, equipment, expertise, and materials.

     SEC. 12. ASSISTANCE FOR INTERNATIONAL HEALTH NETWORKS AND 
                   EXPANSION OF FIELD EPIDEMIOLOGY TRAINING 
                   PROGRAMS.

       (a) Authority.--The President is authorized, on such terms 
     and conditions as the President may determine, to provide 
     assistance for the purposes of--
       (1) enhancing the surveillance and reporting capabilities 
     for the World Health Organization and existing international 
     regional and international health networks; and
       (2) developing new international regional and international 
     health networks.
       (b) Expansion of Field Epidemiology Training Programs.--The 
     Secretary of Health and Human Services is authorized to 
     establish new country or regional international Field 
     Epidemiology Training Programs in eligible developing 
     countries.

     SEC. 13. FOREIGN BIOLOGICAL THREAT DETECTION AND WARNING.

       (a) In General.--The President shall establish the Office 
     of Foreign Biological Threat Detection and Warning within 
     either the Department of Defense, the Central Intelligence 
     Agency, or the Centers for Disease Control and Prevention 
     with the technical ability to conduct event detection and 
     rapid threat assessment related to biological threats in 
     foreign countries.
       (b) Purposes.--The purposes of the Office of Foreign 
     Biological Threat Detection and Warning shall be--
       (1) to integrate public health, medical, agricultural, 
     societal, and intelligence indications and warnings to 
     identify in advance the emergence of a transnational 
     biological threat;
       (2) to provide rapid threat assessment capability to the 
     appropriate agencies or departments of the United States that 
     is not dependent on access to--
       (A) a specific biological agent;
       (B) the area in which such agent is present; or
       (C) information related to the means of introduction of 
     such agent; and
       (3) to build the information visibility and decision 
     support activities required for appropriate and timely 
     information distribution and threat response.
       (c) Technology.--The Office of Foreign Biological Threat 
     Detection and Warning shall employ technologies similar to, 
     but no less capable than, those used by the Intelligence 
     Technology Innovation Center (ITIC) within the Directorate of 
     Science and Technology of the Central Intelligence Agency to 
     conduct real-time, prospective, automated threat assessments 
     that employ social disruption factors.
       (d) Event Detection Defined.--In this section, the term 
     ``event detection'' refers to the real-time and rapid 
     recognition of a possible biological event that has appeared 
     in a community and that could have national security 
     implications, regardless of whether the event is caused by 
     natural, accidental, or intentional means and includes 
     scrutiny of such possible biological event by analysts 
     utilizing classified and unclassified information.

     SEC. 14. REPORTS.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary, in conjunction with the Secretary of 
     Health and Human Services and the Secretary of Defense, shall 
     submit to Congress a report on the implementation of programs 
     under this Act, including an estimate of the level of funding 
     required to carry out such programs at a sufficient level.

     SEC. 15. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization of Appropriations.--Subject to subsection 
     (c), there is authorized to be appropriated for fiscal year 
     2006 such sums as may be necessary to carry out this Act.
       (b) Availability of Funds.--The amount appropriated 
     pursuant to subsection (a) is authorized to remain available 
     until expended.
       (c) Limitation on Obligation of Funds.--Not more than 10 
     percent of the amount appropriated pursuant to subsection (a) 
     may be obligated before the date on which a report is 
     submitted, or required to be submitted, whichever first 
     occurs, under section 14.

                          ____________________




                  RECOGNIZING THE REPUBLIC OF CROATIA

  Mr. FRIST. I ask unanimous consent the Senate now proceed to the 
consideration of S. Res. 342, which was submitted earlier today.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 342) recognizing the Republic of 
     Croatia for its progress in strengthening democratic 
     institutions, respect for human rights, and the rule of law 
     and recommending the integration of Croatia into the North 
     Atlantic Treaty Organization.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the resolution be agreed to, the 
preamble be agreed to, and the motion to reconsider be laid upon the 
table, and any statements be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 342) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 342

       Whereas the United States recognized the Republic of 
     Croatia on April 7, 1992, acknowledging the decision of the 
     people of Croatia to live in an independent, democratic, and 
     sovereign country;
       Whereas since achieving their independence, the people of 
     Croatia have dedicated themselves to building a functioning 
     democratic society, based on the rule of law, respect for 
     human rights, and a free market economy;
       Whereas Croatia has made progress in judicial reform and 
     has adopted a judicial reform strategy;
       Whereas Croatia has demonstrated a desire to protect 
     minority rights and promote a viable multiethnic society;
       Whereas, in 2002, Croatia adopted the Constitutional Law on 
     the Rights of National Minorities, ensuring the 
     representation of minorities in the Parliament of Croatia and 
     the establishment of the councils of national minorities;
       Whereas the Government of Croatia has concluded specific 
     bilateral agreements on the protection of minority rights 
     with Hungary, Italy, and Serbia and Montenegro and has 
     concluded an agreement on cooperation with representatives of 
     the Independent Democratic Serb Party in the Parliament of 
     Croatia;
       Whereas three prominent members of the Parliament of 
     Croatia, Ratko Gajica, Milorad Pupovac, and Vojislav 
     Stanimirovic, who represent the Serb minority, sent a letter 
     to the Assistant to the President for National Security 
     Affairs, Stephen Hadley, expressing their support for the 
     Prime Minister of Croatia, Ivo Sanader, and for Croatia's 
     path toward membership in the European Union and in the North 
     Atlantic Treaty Organization (``NATO'');

[[Page 30897]]

       Whereas Croatia has shown dedication to advancing the 
     return, reconstruction, and restitution of property in 
     Croatia;
       Whereas Croatia has proven to be a reliable partner of the 
     United States in seeking the stabilization of the region;
       Whereas Croatia participated in the Iraq International 
     Conference held in Brussels on June 22, 2005, and offered to 
     train and educate nationals of Iraq at universities in 
     Croatia;
       Whereas Croatia is taking part in the training of Iraqi 
     security forces at the International Training Center in 
     Jordan and has offered to train additional security personnel 
     for Iraq in Croatia;
       Whereas Croatia has been a partner in the war against 
     terrorism, sent troops to Afghanistan as part of the NATO-led 
     International Security Assistance Force in support of the war 
     against terrorism in 2002, and has provided civilians to 
     staff the Provincial Reconstruction Team under the leadership 
     of NATO in Fayzabad;
       Whereas, during July 2005, Croatia adopted a decision to 
     triple its military presence in the International Security 
     Assistance Force;
       Whereas Croatia has endorsed and is participating in the 
     Proliferation Security Initiative with like-minded nations 
     across the world to prevent the flow of weapons of mass 
     destruction, missile systems, and related material;
       Whereas, on June 1, 2005, Croatia was the fourth nation to 
     sign the Proliferation Security Initiative Shipboarding 
     Agreement with the United States to prevent the maritime 
     transfer of dangerous shipments of weapons or other illicit 
     materials to keep such weapons and materials out of the hands 
     of dangerous actors and terrorists;
       Whereas, since Croatia has become an independent country, 
     the United States has shown support for Croatia in many ways, 
     including by providing Croatia with economic and military 
     assistance that has contributed significantly to the progress 
     and continued success occurring in Croatia;
       Whereas the United States has encouraged Croatia's 
     transformation and the future membership of Croatia in NATO;
       Whereas a whole and free Europe cannot be fully achieved 
     without the integration into NATO of all countries that share 
     the common values of democracy, the rule of law, and respect 
     for human rights;
       Whereas the Membership Action Plan developed for NATO, 
     which was launched in April 1999, is a program of assistance 
     that provides both goals and a roadmap for countries aspiring 
     to membership in NATO;
       Whereas Croatia was invited into the Membership Action Plan 
     in May 2002 and has made substantial progress toward the 
     achievement of the reforms required for receiving an 
     invitation to start accession talks with NATO;
       Whereas the United States, Croatia, Albania, and Macedonia 
     are signatories to the United States-Adriatic Charter for 
     Partnership, which promotes Euro-Atlantic integration and 
     commits the signatory nations to the values and principles of 
     NATO and to membership in NATO at the earliest possible time;
       Whereas Croatia supports regional cooperation as a means of 
     bringing stability to Europe, particularly Southeast Europe, 
     and has cooperated with the countries that neighbor Croatia 
     to promote such stability, including providing technical and 
     other assistance to countries that seek membership in the 
     European Union;
       Whereas, on October 3, 2005, the European Union decided to 
     open accession negotiations with Croatia based on the 
     assessment of the European Union's Council of Ministers that 
     Croatia met the political and economic criteria for candidacy 
     in the European Union, including that Croatia was fully 
     cooperating with the International Criminal Tribunal for the 
     former Yugoslavia;
       Whereas the cooperation between the Government of Croatia 
     and the Tribunal improved significantly under Prime Minister 
     Ivo Sanader;
       Whereas, since November 2003, Croatia has handed over to 
     the Tribunal eleven individuals indicted for war crimes;
       Whereas the cooperation of the Government of Croatia with 
     the Tribunal assisted in the arrest of Ante Gotovina on 
     December 8, 2005, in Spain and his transfer to the Tribunal 
     on December 10, 2005;
       Whereas the success of the Government of Croatia in 
     bringing war criminals to justice demonstrates the commitment 
     of the Government to move Croatia toward a brighter future of 
     peace, stability, and prosperity for its people; and
       Whereas Croatia shares the common interests and values of 
     the free and democratic world: Now, therefore, be it
       Resolved, That--
       (1) since the Republic of Croatia became an independent 
     country, the Government and people of Croatia have made 
     significant progress in strengthening democratic 
     institutions, respect for human rights, and the rule of law 
     in Croatia;
       (2) Croatia's membership in the North Atlantic Treaty 
     Organization (``NATO'') would contribute to stability in 
     Southeast Europe;
       (3) it is the sense of the Senate that--
       (A) the Government and people of Croatia should be 
     commended for their progress on protecting minority rights in 
     Croatia, progress toward achieving the political, economic, 
     military, and other requirements of NATO's Membership Action 
     Plan, contribution to the International Security Assistance 
     Force and the war against terrorism, and for their 
     constructive participation the Proliferation Security 
     Initiative and in the United States-Adriatic Charter;
       (B) the Government of Croatia should be commended for its 
     cooperation with the International Criminal Tribunal for the 
     former Yugoslavia which led to the apprehension and transfer 
     of several individuals indicted for war crimes, including 
     Ante Gotovina, to the Tribunal;
       (C) the Government of Croatia should continue its 
     cooperation with the Tribunal;
       (D) the Government of Croatia should continue and 
     strengthen its role as a partner on nonproliferation and its 
     support in the war against terrorism and in Iraq;
       (E) the Government of Croatia should continue its efforts 
     to implement defense reforms; and
       (F) the Government of the United States should continue and 
     increase its defense and security cooperation with the 
     Government of Croatia, including through education, training, 
     and technical cooperation, to assist Croatia in the reform 
     process and in fulfilling its requirements for membership in 
     NATO; and
       (4) upon complete satisfaction of the criteria for NATO 
     membership, in accordance with NATO's guidelines, Croatia 
     should be invited to be a full member of NATO at the earliest 
     possible date.

                          ____________________




                        THANK OUR DEFENDERS WEEK

  Mr. FRIST. I ask unanimous consent that the Senate now proceed to the 
consideration of S. Res. 343, submitted earlier today.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 343) expressing the sense of the 
     Senate that the week of December 19, 2005 shall be designated 
     ``Thank Our Defenders Week.''

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the resolution be agreed to, the 
preamble be agreed to, and the motion to reconsider be laid upon the 
table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 343) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 343

       Whereas, ever since our Nation was founded, the members of 
     our military, soldiers, sailors, Airmen, Marines, Coast Guard 
     personnel, active duty, Guard, and reserve, have played a 
     critical role protecting America's vital interests and 
     spreading peace throughout the world;
       Whereas more than 193,000 troops in the Persian Gulf region 
     are courageously fighting insurgents and helping to establish 
     democracies in Iraq and Afghanistan;
       Whereas 19,000 servicemen and servicewomen are stationed in 
     Afghanistan, fighting Al-Qaeda and providing security for the 
     people of that fledgling nation;
       Whereas over 30,000 troops are protecting American 
     interests and maintaining peace on the Korean peninsula;
       Whereas, in total, nearly 300,000 brave men and women are 
     actively serving on the soil of 120 foreign countries and on 
     the High Seas, fighting terrorists and making sacrifices for 
     American citizens and families; and
       Whereas, thanks to their tireless efforts, a brutal 
     dictatorship in Iraq and an oppressive regime in Afghanistan 
     have given way to emerging democratic societies: Now, 
     therefore, be it
       Resolved, That with gratitude it is the sense of the Senate 
     that the week of December 19, 2005 should be designated 
     ``Thank Our Defenders week.''

                          ____________________




                  GEORGIA'S SOUTH OSSETIAN PEACE PLAN

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of S. Res. 344 which was submitted earlier 
today.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 344) expressing support for the 
     Government of Georgia's South Ossetian Peace Plan and the 
     successful and peaceful reintegration of the Region of 
     Georgia.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. FRIST. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the preamble be agreed

[[Page 30898]]

to, and the motion to reconsider be laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 344) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 344

       Whereas during December 1991, Georgia was internationally 
     recognized as an independent and sovereign country following 
     the formal dissolution of the Union of Soviet Socialist 
     Republics;
       Whereas the United States supports the independence, 
     sovereignty, territorial integrity, and ongoing democratic 
     reform process in Georgia;
       Whereas the United States reaffirms its support for the 
     peaceful resolution of the conflict in Adjura and the 
     restoration of democracy and political stability in that 
     region of Georgia;
       Whereas as a result of a conflict from 1991 to 1992, a 
     separatist regime has enforced its rule in the Georgia 
     territory of South Ossetia, impoverishing the people living 
     in South Ossetia, militarizing the area, allowing organized 
     crime to flourish, and posing a threat to the peace and 
     security in the region;
       Whereas the Government of Georgia has announced a peace 
     plan to reach a full political settlement to the South 
     Ossetian conflict;
       Whereas the Government of Georgia has acknowledged that 
     mistakes were made in its past efforts in dealing with the 
     region of South Ossetia;
       Whereas at the 59th meeting of the United Nations General 
     Assembly, Georgian President Mikhail Saakashvili outlined 
     specific components of a peace initiative that includes 
     demilitarization, confidence building measures, and economic, 
     social, cultural, and political steps to protect the South 
     Ossetian people and their rights while reintegrating the 
     region, with significant autonomy, into Georgia;
       Whereas President Saakashvili reaffirmed the main 
     principles of the peace agreement at the Parliamentary 
     Assembly Council of Europe in January, 2005, held in 
     Strasbourg, France;
       Whereas a formal comprehensive peace proposal based on the 
     Strasbourg principles was formally proposed on October 27, 
     2005, at the Organization for Security and Co-operation in 
     Europe; and
       Whereas on December 6, 2005, at their 13th Ministerial 
     Council Meeting in Ljubljana, Slovenia, the Organization for 
     Security and Co-operation in Europe endorsed the Government 
     of Georgia's peace plan, stating, ``We welcome the steps 
     taken by the Georgian side to address the peaceful resolution 
     of the conflict and believe that the recent proposals, in 
     particular the Peace Plan built upon the initiatives of the 
     President of Georgia presented at the 59th United Nations 
     General Assembly and supported by the sides, will serve as a 
     basis for the peaceful settlement of the conflict'': Now, 
     therefore, be it
       Resolved, That the Senate--
       (1) commends the Government of Georgia for its vision and 
     determination in its efforts to resolve peacefully the 
     conflict in South Ossetia;
       (2) supports the sovereignty, independence, and territorial 
     integrity of the democratic Government of Georgia;
       (3) urges all Organization for Security and Co-operation in 
     Europe participating States to respect fully the 
     independence, sovereignty, territorial integrity of Georgia, 
     refraining from any acts constituting a threat of or use of 
     force, direct or indirect, and abiding by the principle of 
     the inviolability of frontiers;
       (4) expresses its support for the Government of Georgia's 
     plan to control peacefully and reestablish authority in the 
     region of South Ossetia, viewing it as an opportunity to 
     restore the territorial integrity of the country and to 
     protect the individual rights and democratic liberties of 
     those living in South Ossetia;
       (5) urges the United States to increase its efforts in 
     support of the peaceful reincorporation of South Ossetia to 
     Georgia, including efforts to support the greater involvement 
     of the international community, including the Russian 
     Federation, the Organization for Security and Cooperation in 
     Europe, the European Union, and international organizations 
     in the peaceful settlement of the South Ossetian conflict; 
     and
       (6) supports the ongoing democratic transformation in 
     Georgia and will continue to monitor closely the peace 
     process in South Ossetia, including the implementation by all 
     sides of their obligations under the peace plan if it is 
     accepted.

                          ____________________




                    CONGRATULATING FENTON ART GLASS

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of S. Res. 345 which was 
submitted earlier today.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 345) recognizing the 100th 
     anniversary of Fenton Art Glass, a beloved institution in 
     West Virginia, that continues to contribute to the economic 
     and cultural heritage of the State through its production of 
     world renowned, hand-blown glass.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. FRIST. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the preamble be agreed to, and the motion to reconsider 
be laid upon the table, and that any statements relating thereto be 
printed in the Record, without intervening action or debate.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 345) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 345

       Whereas Fenton Art Glass rose from its humble beginnings as 
     a glass decorating company in 1905, and came to settle in 
     Williamstown, West Virginia, by opening a factory to create 
     their own glass when they were unable to obtain the glass 
     that they needed;
       Whereas, with the vision of brothers Frank and John Fenton, 
     Fenton Art Glass began to create innovative new colors and 
     established the company in the forefront of the hand-blown 
     glass industry;
       Whereas in 1907, Fenton introduced its highly colorful 
     Iridescent, or ``Carnival'' Glass, which became instantly 
     successful throughout the country and is now highly prized by 
     collectors around the world;
       Whereas during the 1930s and 1940s, Fenton addressed the 
     shortages felt by families in the United States by producing 
     mixing bowls and tableware that were often unavailable during 
     the World War II and Depression shortages;
       Whereas Fenton Art Glass is not only a family tradition, 
     with the third generation of the Fenton family now carrying 
     on the legacy, but also a West Virginia institution, 
     employing generations of workers; and
       Whereas Fenton Glass, known for its beauty and precision in 
     craftsmanship, is a symbol of the dedication and care of the 
     Fenton family, as well as the pride in craftsmanship so 
     characteristic of the West Virginia people: Now, therefore, 
     be it
       Resolved, That the Senate congratulates Fenton Art Glass on 
     its centennial milestone, for creating beautiful, hand-blown 
     glass in West Virginia for 100 years.

                          ____________________




       COMMENDING THE APPALACHIAN STATE UNIVERSITY FOOTBALL TEAM

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of S. Res. 346 which was submitted earlier 
today.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 346) commending the Appalachian State 
     University Football Team for winning the 2005 National 
     Collegiate Athletic Association Division 1-AA Football 
     Championship.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. FRIST. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the preamble be agreed to, and the motion to reconsider 
be laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 346) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 346

       Whereas on December 16, 2005, the Appalachian State 
     Mountaineers defeated the Northern Iowa Panthers in the 
     Championship game of the National Collegiate Athletic 
     Association (``NCAA'') Division I-AA Football Tournament in 
     Chattanooga, Tennessee;
       Whereas the Mountaineers are the first team from 
     Appalachian State to win a NCAA Championship in school 
     history;
       Whereas Appalachian State is the first university in the 
     State of North Carolina to win a NCAA football championship;
       Whereas head coach Jerry Moore, the all-time winningest 
     coach in Southern Conference history, won his first NCAA 
     title in his seventeenth year as head coach of the

[[Page 30899]]

     Mountaineers, improving to 140-67 his record as head coach at 
     Appalachian State;
       Whereas defensive ends Marques Murrell and Jason Hunter, as 
     well as safety Corey Lynch, were named to the I-AA All 
     America team;
       Whereas junior defensive end Marques Murrell, who finished 
     the game with 9 tackles and forced a fumble with 9 minutes, 
     14 seconds remaining in the game, and senior Jason Hunter, 
     who finished the game with ten tackles, returned it for the 
     winning touchdown;
       Whereas injured senior quarterback and Southern Conference 
     Offensive Player of the Year Richie Williams courageously led 
     the Mountaineers in the second half while playing with an 
     injured ankle tendon;
       Whereas the Mountaineer defense held the Panthers scoreless 
     in the second half;
       Whereas backup quarterback Trey Elder led Appalachian State 
     to a 29-23 victory over Furman University to earn a spot in 
     the final contest;
       Whereas the Mountaineers defeated Lehigh University and 
     Southern Illinois to advance to the I-AA ``Final Four'';
       Whereas the Mountaineer team members are excellent 
     representatives of a fine university that is a leader in 
     higher education, producing many fine student-athletes and 
     other leaders;
       Whereas each player, coach, trainer, manager, and staff 
     member dedicated this season and their efforts to ensure the 
     Appalachian State University Mountaineers reached the summit 
     of college football;
       Whereas the Mountaineers showed tremendous dedication to 
     each other, appreciation to their fans, sportsmanship to 
     their opponents, and respect for the game of football 
     throughout the 2005 season; and
       Whereas residents of the Old North State and Appalachian 
     fans worldwide are to be commended for their long-standing 
     support, perseverance, and pride in the team: Now, therefore, 
     be it
       Resolved, That the Senate--
       (1) commends the champion Appalachian State University 
     Mountaineers for their historic win in the 2005 National 
     Collegiate Athletic Association Division I-AA Football 
     Championship;
       (2) recognizes the achievements of the players, coaches, 
     students, alumni, and support staff who were instrumental in 
     helping Appalachian State University win the championship; 
     and
       (3) directs the Secretary of the Senate to transmit a copy 
     of this resolution to Appalachian State University Chancellor 
     Kenneth Peacock and head coach Jerry Moore for appropriate 
     display.

     

                          ____________________


                           CHARITABLE GIVING

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of S. Con. Res. 75 which was submitted 
earlier today.
  The PRESIDING OFFICER. The clerk will report the concurrent 
resolution by title.
  The legislative clerk read as follows:

       A concurrent resolution (S. Con. Res. 75) encouraging all 
     Americans to increase their charitable giving with the goal 
     of increasing the annual amount of charitable giving in the 
     United States by 1 percent.

  There being no objection, the Senate proceeded to consider the 
concurrent resolution.
  Mr. FRIST. Mr. President, I ask unanimous consent that the concurrent 
resolution be agreed to, the preamble be agreed to, and the motion to 
reconsider be laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolution (S. Con. Res. 75) was agreed to.
  The preamble was agreed to.
  The concurrent resolution, with its preamble, reads as follows:

                            S. Con. Res. 75

       Whereas individual charitable giving rates among Americans 
     have stagnated at 1.5 to 2.2 percent of aggregate individual 
     income for the past 50 years;
       Whereas a 1 percent increase (from 2 percent to 3 percent) 
     in charitable giving will generate over $90,000,000,000 to 
     charity;
       Whereas charitable giving is a significant source of 
     funding for health, education, and welfare programs; and
       Whereas a 1 percent increase in charitable giving would 
     provide some of the funds that will allow the nation to meet 
     our health, education and welfare goals. Now, therefore, be 
     it
       Resolved by the Senate (the House of Representatives 
     concurring), That Congress encourages all Americans to 
     increase their charitable giving, with the goal of increasing 
     the annual amount of charitable giving in the United States 
     by 1 percent.

                          ____________________




  NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AUTHORIZATION ACT OF 
                        2005--CONFERENCE REPORT

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of the conference report to 
accompany S. 1281, the NASA authorization bill.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the bill (S. 
     1281),  to authorize appropriations for the National 
     Aeronautics and Space Administration for science, 
     aeronautics, exploration, exploration capabilities, and the 
     Inspector General, and for other purposes, for fiscal years 
     2006, 2007, 2008, 2009, and 2010, having met, have agreed 
     that the Senate recede from its disagreement to the amendment 
     of the House and agree to the same with an amendment.
  The PRESIDING OFFICER. The Senate will proceed to the consideration 
of the conference report.
  (The conference report is printed in the House Proceedings of the 
Record of December 18, 2005.)
  Mrs. HUTCHISON. Mr. President, last Friday, when I spoke to my 
colleagues about the NASA authorization bill, the Senate, in the press 
of other business at the end of the session, was unable to take up the 
conference report on S. 1281, the National Aeronautics and Space 
Administration Authorization Act of 2005. Since then, the House of 
Representatives has adopted the report under suspension of the rules, 
demonstrating wide support for the compromise bill. I am very pleased 
that the Senate is now poised to approve the conference report as well.
  I want to thank my ranking member on the Science and Space 
Subcommittee, Senator Nelson of Florida, for all his help. Chairman 
Stevens and Senator Inouye were active participants throughout this 
process, and I certainly appreciate their efforts. Senator Lott was a 
key member of the Senate team that has brought us to this point.
  My subcommittee staff, Jeff Bingham and Tom Cremins, and Senator 
Nelson's staff, Jean Toal Eisen and Chan Lieu, work so well together 
and have done so much to bring us to this point, and I want to say 
thank you to them.
  When President Bush announced a new Vision for Space Exploration in 
January of 2004, he was not simply describing a new mission for NASA; 
he was describing a pathway to a future for the next generation. The 
legislation embodied in this conference report represents a statement 
by the Congress that the Vision for Space Exploration is the right 
vision for America in the new age of space. At the same time, the bill 
provides guidance to help NASA do its part in leading the way along 
this new path to the future by building effectively on lessons learned 
and by efficiently using its resources, especially the talent and 
expertise of its workforce.
  S. 1281, as modified by the conference report, provides authorization 
for NASA funding at $17.9 billion in fiscal year 2007 and $18.7 billion 
in fiscal year 2008. The conferees believe these levels of funding will 
ensure the successful return to flight of the space shuttle and the 
completion of the international space station, as well as continuing 
the important work in exploration, science, aeronautics and education.
  These funding levels also take into account the recently identified 
shortfall between what the administration had been projecting for 
shuttle flights and the number of flights needed to complete the 
international space station, meet our international commitments, and 
provide an important research capability in space.
  I am especially pleased that the conference report provides the 
designation of the U.S. portion of the space station as national 
laboratory. This is an important and significant part of the bill. 
First, it demonstrates that the Congress understands the great value 
and potential represented by the research that can be done aboard the 
space station. It underscores the need to ensure that the laboratory is 
as capable, efficient and well equipped as we can make it. Second, it 
provides a framework for bringing additional, non-NASA resources to 
bear in supporting research

[[Page 30900]]

aboard the space station. This will enable NASA to focus its resources 
on research needed to support the Vision for Exploration, while 
continuing to provide space station research opportunities in the 
broader areas of life sciences and fundamental sciences.
  In my previous statement, I mentioned briefly a perfect example of 
the kind of fundamental research that the space station enables, which 
was described in a recent hearing before the Commerce Committee. Dr. 
Sam Ting, of MIT, discussed the Alpha Magnetic Spectrometer, scheduled 
to be attached to the space station. This device takes advantage of the 
unique space environment to measure--and help understand--the 
characteristics of matter in the universe. The results of this 
experiment could revolutionize our knowledge about the interactions of 
matter and potentially lead, for example, to the development of new, 
and virtually unlimited, energy sources.
  As we move forward with the Vision for Space Exploration, we will 
need new vehicles and launch capabilities. NASA has made the decision 
to base those new vehicles on much of the existing capabilities and 
designs of the space shuttle program. This legislation ratifies that 
decision and provides the policy foundation to ensure its successful 
implementation. The evolution of our launch vehicles to a new 
generation requires that we be especially careful not to undermine our 
existing capabilities for human space flight. The legislation ensures a 
smooth transition between the shuttle and the new crew exploration 
vehicles by providing adequate resources to continue shuttle flights 
and accelerate CEV development so as to minimize any gap between the 
two systems. In addition, the legislation specifically directs NASA to 
make the maximum possible utilization of the personnel, assets, and 
capabilities of the space shuttle program in developing the next 
generation of crew and cargo vehicles. The new CEV will be designed 
with the flexibility to carry out a variety of missions. It will 
specifically be designed to provide access to the space station, and 
thus fulfills the role of a crew rescue vehicle, CRV, if needed, to 
ensure the safety of our crews aboard the international space station.
  In order to further facilitate the evolution of current human space 
flight systems into those needed for the Vision for Exploration, the 
bill has provided for the merging of the human space fight activities 
into a single account. This is intended to provide the closest possible 
interaction between these activities, in those areas where they can be 
mutually supportive. At the same time, the legislation contains 
language to ensure that both the exploration activities and the human 
space flight, or space operations activities, retain sufficient 
resources to fulfill their core objectives.
  Another important and historical NASA research activity is 
aeronautical research, a fundamental part of NASA's activities since 
its inception. All of us recognize that the continued health of the 
Nation's aerospace industry in a very competitive global marketplace 
makes it essential that we have solid aeronautical research 
capabilities. This legislation directs the development of a national 
policy to guide the Nation's aeronautical research--including that 
conducted by NASA. This policy will enable us to make informed 
decisions about the future directions for aeronautics research and the 
necessary resources to support them.
  One of the more exciting new developments in space exploration is the 
expanded level of commercial interest in supporting and expanding space 
exploration. This legislation encourages those developments. It 
provides expanded authority for competitive prizes to promote 
commercial developments, and it encourages the use of commercial 
services and capabilities in servicing the space station, to cite just 
two examples. This is clearly an important new development in space 
exploration which the bill fully endorses.
  Finally, let me say something about the broad range of science 
activities for which NASA has always been known. This conference 
agreement expresses very clearly the need for maintaining a balanced 
science portfolio throughout all NASA programs and provides the funding 
authority necessary to ensure the space sciences, earth sciences, and 
education activities remain vigorous parts of NASA's mission.
  Mr. President, this legislation provides a comprehensive, forward-
looking and responsible approach to the transition of our Nation's 
space exploration programs into a new era of discovery. I believe that, 
together with our colleagues in the House, we have crafted a 
congressional consensus that will help ensure this Nation's leadership 
in space exploration and provide benefits beyond measure and beyond 
imagination to this Nation and the world.
  Mr. LEVIN. Mr. President, I urge passage by unanimous consent of the 
2005 NASA Authorization Act and managers' package that has been agreed 
to by conferees from the House and Senate.
  I express my thanks for the work that my fellow conferees, the 
committees, subcommittees, and our staffs have done on this bill. I am 
confident that it will help Administrator Griffin to lead NASA to 
accomplish its many missions.
  America is a nation of explorers. NASA explores the frontiers of 
aviation by atmospheric flight; the frontiers of space by going where 
others have never been; and the frontiers of science by conducting 
scientific endeavors that broaden our understanding of life, our home 
planet, and the heavens. NASA has not been authorized by Congress for 
some time. In fact, the last two times NASA was authorized was 1993 and 
2000.
  This is the first authorization of NASA in 6 years. NASA must be held 
accountable to the Congress through the oversight of the agency. With 
an authorization bill passed only once every 5 to 7 years, the role has 
defaulted to the Appropriations Committee, which has many other items 
on its plate. Now with this NASA authorization legislation, hopefully 
there will be a healthier and more meaningful communication between the 
agency and the Congress.
  The NASA Authorization Act of 2005 will help the Congress to do a 
better job of performing oversight of NASA. The act is a 3-year bill, 
authorizing NASA from 2006 through 2008.
  Because appropriators have already funded NASA for fiscal year 2006 
the authorizing conferees receded to the appropriations bill for that 
fiscal year. The bill authorizes $17.932 billion for fiscal year 2007 
and $18.686 billion for fiscal year 2008, and provides more funding 
than the President's budget projections.
  Like many of our colleagues, Senator Hutchison and I believe that 
recent NASA budget requests have been below the levels required for the 
agency to perform its various missions effectively. That was made 
apparent recently when Administrator Griffin testified at a committee 
hearing before the U.S. House of Representatives, that the space 
shuttle program will have a $3 billion plus shortfall over the next 5 
years. Dr. Griffin's concerns have been echoed by a letter recently 
provided by several Members of the House to the White House calling for 
the space shuttle program to be fully funded.
  This legislation authorizes NASA to return humans to the Moon, to 
explore it, and to maintain a human presence on the Moon. Consistent 
with the President's vision, it also requires using what we learn and 
develop on the Moon as a stepping-stone to future exploration of Mars.
  To carry out these missions, this act requires NASA to develop an 
implementation plan for the transition from shuttle to crew exploration 
vehicle, CEV. The plan will help NASA to make a smooth transition from 
retirement of the space shuttle orbiters to the replacement spacecraft 
systems. The implementation plan will help make sure that we can keep 
the skills and the focus that are needed to assure that each space 
shuttle flight is safe through retirement of the orbiters, and to 
retain those personnel needed for the CEV and heavy lift cargo 
spacecraft.
  The bill should be helpful for reducing if not eliminating a gap in 
America's ability to put humans in Earth

[[Page 30901]]

orbit. The act also directs NASA to plan for and consider a Hubble 
servicing mission after the second space shuttle return to flight 
mission has been completed.
  This NASA authorization bill calls for utilization of the 
international space station for basic science as well as exploration 
science. It is important that we reap the benefits of our multibillion 
dollar investment in the space station. This act ensures that NASA will 
maintain a focus on the importance of basic science.
  This legislation directs the Aerospace Safety Advisory Panel to 
monitor and measure NASA's improvements to their safety culture, 
including employees' fear of reprisals for voicing concerns about 
safety. The bill encourages NASA to more effectively utilize lessons 
learned and best practices, and to implement cost controls that are 
more effective for making better use of our taxpayers' money.
  This authorization bill addresses NASA aeronautics and America's pre-
eminence in aviation, calling for the President of the United States to 
pursue a national policy for aeronautics. The Europeans have stated 
their intent to dominate the airplane market by 2020. It is not in our 
national interest to let that occur.
  The bill includes a limitation on reprogramming funds from space 
operations, includes the space shuttle and international space station, 
to exploration systems, and vice versa. This limitation will ensure 
that no more than 10 percent of shuttle and station funds can be 
transferred into the exploration systems program to be used for a 
shortfall in an exploration-related development program. However, it 
will not limit the exploration systems and space shuttle programs from 
utilizing the same personnel, equipment, and contract vehicles to 
continue to safely operate the shuttle while developing the shuttle-
derived crew exploration vehicle.
  This act gives America the opportunity for implementing the vision 
for space exploration; renewing our commitment to U.S. civil aviation 
and NASA aeronautics research; conducting important science activities 
at NASA; and assuring that America has continuous human access to 
space.
  By passing this legislation, we will continue to strengthen our 
economy and inspire the next generation of scientists, engineers, and 
explorers.
  Mr. INOUYE. Mr. President, I wish to thank Senators Hutchison, 
Nelson, and Stevens, for their leadership in bringing together the 
different bills from the Senate and the House. The final product is the 
result of hard work and compromise. It provides the National 
Aeronantics and Space Administration, NASA, and the country clear 
congressional direction on how to proceed with human space exploration, 
and it emphasizes NASA's invaluable work in science and education.
  Human space exploration is a key component of this bill. I am 
confident that space discovery will continue to excite young minds and, 
hopefully, inspire them to pursue an education in math and science. The 
skills and talents they develop will not only help them reach the 
stars, they will propel American innovation and define our country's 
future.
  At the same time, we must not overlook safety. I applaud Senator 
Nelson and the other conferees for keeping safety a top priority in 
this legislation.
  In addition, I want to express my appreciation for the conferees' 
willingness to accommodate my efforts to promote the design and 
development of new science facilities, such as telescopes through the 
National Science Foundation, as well as NASA.
  NASA plays a strong role in astronomy from the Hubble Telescope to 
the Keck Outrigger Project in Hawaii. I am pleased to see that the bill 
affirms NASA's commitment to astronomy by ensuring that the Hubble will 
be serviced. It is my hope that Section 616 will also help NASA work 
with institutions, such as the Mauna Kea Astronomy Education Center, to 
make the work of world-class scientists accessible to their neighbors 
and children.
  Finally, I would like to thank Jeff Bingham, Tom Cremins, Jean Toal 
Eisen and Chan Lieu of the Commerce Committee staff, and Mike Dodson, a 
fellow in Senator Bill Nelson's office, for their hard work on this 
important measure. I understand Mr. Dodson will be leaving at the end 
of the year. We will miss his counsel and expertise.
  I urge the swift adoption of the conference report.
  Mr. NELSON of Florida. Mr. President, my fellow Senators, I am 
pleased to join Senators Hutchison, Stevens, Inouye, and Lott today in 
presenting the 2005 NASA Authorization Act and managers' package that 
has been agreed to by conferees from the House and Senate.
  I express my thanks for the work that my fellow conferees, the 
committees, subcommittees, and our staffs have done on this bill. I am 
confident that it will help Administrator Griffin to lead NASA to 
accomplish its many missions.
  America is a nation of explorers. NASA explores the frontiers of 
aviation by atmospheric flight, the frontiers of space by going where 
others have never been; and the frontiers of science by conducting 
scientific endeavors that broaden our understanding of life, our home 
planet, and the heavens. NASA has not been authorized by Congress for 
some time. In fact, the last two times NASA was authorized was 1993 and 
2000.
  Congress needs to authorize NASA more often. When NASA is authorized 
infrequently, then oversight may become lax. The lack of an 
authorization bill leaves the authorizing function to the 
Appropriators--and they don't have time and it's not their job. In 
fact, the lack of oversight provided by authorizers over the last 
several years may have contributed to the loss of the Space Shuttle 
Columbia.
  The NASA Authorization Act of 2005 will help the Congress to do a 
better job of performing oversight of NASA. The act is a 3-year bill, 
authorizing NASA from 2006 through 2008. It authorizes NASA 
appropriations for fiscal year 2007 and 2008.
  Because appropriators have already funded NASA for fiscal year 2006 
the authorizing conferees receded to the appropriations bill for that 
fiscal year. The bill authorizes $17.932 billion for fiscal year 2007 
and $18.686 billion for fiscal year 2008, and provides more funding 
than the President's budget projections.
  Like many of our colleagues, Senator Hutchison and I believe that 
recent NASA budget requests have been below the levels required for the 
agency to perform its various missions effectively. That was made 
apparent recently when Administrator Griffin testified at a committee 
hearing before the House of Representatives, that the Space Shuttle 
program will have a $3 billion plus shortfall over the next 5 years. 
Dr. Griffin's concerns have been echoed by a letter recently provided 
by several Members of the House to the White House calling for the 
space shuttle program to be fully funded.
  This legislation authorizes NASA to return humans to the Moon, to 
explore it, and to maintain a human presence on the Moon. Consistent 
with the President's vision, it also requires using what we learn and 
develop on the Moon as a stepping-stone to future exploration of Mars.
  To carry out these missions, this act requires NASA to develop an 
implementation plan for the transition from shuttle to crew exploration 
vehicle, CEV. The plan will help NASA to make a smooth transition from 
retirement of the space shuttle orbiters to the replacement spacecraft 
systems. The implementation plan will help make sure that we can keep 
the skills and the focus that are needed to assure that each Space 
Shuttle flight is safe through retirement of the orbiters, and to 
retain those personnel needed for the CEV and heavy lift cargo 
spacecraft.
  The bill should be helpful for reducing if not eliminating a gap in 
America's ability to put humans in Earth orbit. The act also directs 
NASA to plan for and consider a Hubble servicing mission after the 
second space shuttle return to flight mission has been completed.
  This NASA authorization bill calls for utilization of the 
international

[[Page 30902]]

space station for basic science as well as exploration science. It is 
important that we reap the benefits of our multibillion dollar 
investment in the space station. This act ensures that NASA will 
maintain a focus on the importance of basic science.
  This legislation directs the Aerospace Safety Advisory Panel to 
monitor and measure NASA's improvements to their safety culture, 
including employees' fear of reprisals for voicing concerns about 
safety. The bill encourages NASA to more effectively utilize lessons 
learned and best practices, and to implement cost controls that are 
more effective for making better use of our taxpayers' money.
  This authorization bill addresses NASA aeronautics and America's pre-
eminence in aviation, calling for the President of the United States to 
pursue a national policy for aeronautics. The Europeans have stated 
their intent to dominate the airplane market by 2020. It is not in our 
national interest to let that occur.
  The bill includes a limitation on reprogramming funds from space 
operations--(includes the space shuttle and international space 
station)--to exploration systems, and vice versa. This limitation will 
ensure that no more than 10 percent of shuttle and station funds can be 
transferred into the exploration systems program to be used for a 
shortfall in an exploration-related development program. However, it 
will not limit the exploration systems and space shuttle programs from 
utilizing the same personnel, equipment, and contract vehicles to 
continue to safely fly the shuttle while developing the shuttle-derived 
crew exploration vehicle.
  This act gives America the opportunity for implementing the Vision 
for Space Exploration; renewing our commitment to U.S. civil aviation 
and NASA aeronautics research; conducting important science activities 
at NASA; and assuring that America has continuous human access to 
space.
  By passing this legislation, we will continue to strengthen our 
economy and inspire the next generation of scientists, engineers, and 
explorers.
  Mr. FRIST. Mr. President, I ask unanimous consent that the conference 
report be agreed to, and the motion to reconsider be laid upon the 
table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The conference report was agreed to.
  Mr. FRIST. Mr. President, this is the NASA authorization bill.
  I congratulate Senator Kay Bailey Hutchison for this particular piece 
of legislation, because as we look to the future, science and the 
technology, and the importance and significance of this legislation 
stands out.
  A few minutes ago, I was talking about SMART grants--these math, 
education, science, and engineering grants which are being given to 
juniors and seniors in college. This marries with that beautifully in 
terms of making sure that we have a strong technology base in terms of 
jobs and competitiveness.
  I congratulate our distinguished colleague from Texas, Senator 
Hutchison, for her leadership on this bill.

                          ____________________




           TECHNICAL CORRECTION IN THE ENROLLMENT OF S. 1281

  Mr. FRIST. I ask unanimous consent the Senate proceed to H. Con. Res. 
324 which was received from the House.
  The PRESIDING OFFICER. The clerk will report the concurrent 
resolution by title.
  The legislative clerk read as follows:

       A resolution (H. Con. Res. 324) directing the Secretary of 
     the Senate to make a technical correction in the enrollment 
     of S. 1281.

  There being no objection, the Senate proceeded to consider the 
concurrent resolution.
  Mr. FRIST. I ask unanimous consent the resolution be agreed to, the 
motion to reconsider be laid upon the table, and any statements be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolution (H. Con. Res. 324) was agreed to.

                          ____________________




     RUSSIAN FEDERATION PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

  Mr. FRIST. I ask unanimous consent the Committee on Foreign Relations 
be discharged from further consideration of H. Con. Res. 230, and the 
resolution be referred to the Committee on Finance.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. FRIST. I ask unanimous consent that the Committee on Finance be 
discharged and the Senate proceed to the immediate consideration of H. 
Con. Res. 230.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the concurrent resolution by title.
  The legislative clerk read as follows:

       A concurrent resolution (H. Con. Res. 230) expressing the 
     sense of the Congress that the Russian Federation must 
     protect intellectual property rights.

  There being no objection, the Senate proceeded to consider the 
concurrent resolution.
  Mr. FRIST. I ask unanimous consent the resolution be agreed to, the 
preamble be agreed to, and the motion to reconsider be laid upon the 
table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolution (H. Con. Res. 230) was agreed to.
  The preamble was agreed to.

                          ____________________




      HONORING PILOTS OF THE FEDERAL FLIGHT DECK OFFICERS PROGRAM

                                 ______
                                 

       RECOGNIZING AFRICAN-AMERICAN BASKETBALL TEAMS AND PLAYERS

  Mr. FRIST. I ask unanimous consent that the Commerce Committee be 
discharged and the Senate proceed to the immediate consideration of H. 
Con. Res. 196 and H. Con. Res. 59, en bloc.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the resolutions by title.
  The legislative clerk read as follows:

       A concurrent resolution (H. Con. Res. 196) honoring the 
     pilots of the United States commercial air carriers who 
     volunteered to participate in the Federal flight deck 
     officers program.
       A concurrent resolution (H. Con. Res. 59) recognizing the 
     contributions of the African-American basketball teams and 
     players for their achievements, dedication, and contributions 
     to the sport of basketball and to the Nation.

  There being no objection, the Senate proceeded to consider the 
concurrent resolutions, en bloc.
  Mr. FRIST. I ask unanimous consent the resolutions be agreed to, the 
preambles be agreed to, and the motions to reconsider be laid upon the 
table, en bloc.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolutions (H. Con. Res. 196 and H. Con. Res. 59) 
were agreed to.
  The preambles were agreed to.

                          ____________________




            UNACCOMPANIED ALIEN CHILD PROTECTION ACT OF 2005

  Mr. FRIST. I ask unanimous consent the Senate proceed to the 
immediate consideration of Calendar 74, S. 119.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 119) to provide for the protection of 
     unaccompanied alien children, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the Feinstein substitute amendment 
which is at the desk be agreed to, the bill, as amended, be read the 
third time and passed, the motion to reconsider be laid upon the table, 
and any statements related to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2692) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The bill (S. 119), as amended, was read the third time and passed.

[[Page 30903]]



                          ____________________




             VOLUNTARY MORTGAGE PAYMENT FORBEARANCE PERIOD

  Mr. FRIST. I ask unanimous consent the Senate proceed to the 
immediate consideration of S. Res. 347, submitted earlier today by 
Senator Landrieu.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 347) expressing the sense of the 
     Senate that lenders holding mortgages on homes in communities 
     of the Gulf Coast devastated by Hurricanes Katrina and Rita 
     should extend current voluntary mortgage payment forbearance 
     periods and not foreclose on properties in those communities.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent the resolution be agreed to, the 
preamble be agreed to, the motion to reconsider be laid upon the table, 
and any statements related to the resolution be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 347) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, is as follows:

                              S. Res. 347

       Whereas the Gulf Coast of the United States has experienced 
     1 of the worst hurricane seasons on record;
       Whereas Hurricane Katrina and multiple levee breaks 
     destroyed an estimated 275,000 homes in the Gulf Coast;
       Whereas 20,664 businesses in the Gulf Coast sustained 
     catastrophic damage from Hurricane Katrina and Hurricane 
     Rita;
       Whereas, according to the Bureau of Economic Analysis at 
     the Department of Commerce, personal income has fallen more 
     than 25 percent in Louisiana in the third quarter of 2005;
       Whereas, in the time since Hurricanes Katrina, Rita, and 
     Wilma, the Small Business Administration has only approved 20 
     percent of disaster loan applications for homeowners in the 
     Gulf Coast and has a backlog of more than 176,000 
     applications for this assistance as of December 21, 2005;
       Whereas, of the 20,741 homeowner disaster loan applications 
     that have been approved in the Gulf Coast by the Small 
     Business Administration, only 1,444 have been fully 
     disbursed;
       Whereas, in response to these circumstances, commercial 
     banks, mortgage banks, credit unions, and other mortgage 
     lenders voluntarily instituted 90-day loan forbearance 
     periods after Hurricane Katrina and did not require home 
     owners in the Gulf Coast to make mortgage payments until on 
     or about December 1, 2005;
       Whereas, after the termination of the 90-day forbearance 
     period, many home and business owners have received notice 
     from their lenders that they face foreclosure unless they 
     make a lump sum balloon payment in the amount of the mortgage 
     payments previously subject to forbearance; and
       Whereas foreclosure on homes and businesses in the Gulf 
     Coast will have a detrimental impact on the economy of the 
     area, will deprive property owners of their equity at a time 
     when they can least afford it, and will have a negative 
     impact on lenders who will be holding properties that may not 
     be readily marketable on the open market: Now, therefore, be 
     it
       Resolved, That it is the sense of the Senate that--
       (1) Congress should act early in the second session of the 
     109th Congress to consider legislation to provide relief to 
     homeowners in the Gulf Coast; and
       (2) commercial banks, mortgage banks, credit unions, and 
     other mortgage lenders should extend mortgage payment 
     forbearance to March 31, 2006, in order to allow Congress the 
     time to consider such legislation.

                          ____________________




INTERNATIONAL COOPERATION TO MEET THE MILLENNIUM DEVELOPMENT GOALS ACT 
                                OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 281, S. 1315.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1315) to require a report on progress toward the 
     Millennium Development Goals, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Foreign Relations, with 
amendments.
  [Strike the parts shown in black brackets and insert the parts shown 
in italic.]

                                S. 1315

       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 ``International Cooperation to 
     Meet the Millennium Development Goals Act of 2005''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) At the United Nations Millennium Summit in 2000, the 
     United States joined more than 180 other countries in 
     committing to work toward goals to improve life for the 
     world's poorest people by 2015.
       (2) Such goals include reducing the proportion of people 
     living on less than $1 per day by \1/2\, reducing child 
     mortality by \2/3\, and assuring basic education for all 
     children, while sustaining the environment upon which human 
     life depends.
       (3) At the 2002 International Conference on Financing for 
     Development, the United States representative reiterated the 
     support of the United States for the Millennium Development 
     Goals and advocated, along with other international 
     participants, for a stronger focus on measurable outcomes 
     derived from a global partnership between developed and 
     developing countries.
       (4) On March 22, 2002, President Bush stated, ``We fight 
     against poverty because hope is an answer to terror. We fight 
     against poverty because opportunity is a fundamental right to 
     human dignity. We fight against poverty because faith 
     requires it and conscience demands it. We fight against 
     poverty with a growing conviction that major progress is 
     within our reach.''.
       (5) The 2002 National Security Strategy of the United 
     States notes that ``a world where some live in comfort and 
     plenty, while half of the human race lives on less than $2 
     per day, is neither just nor stable. Including all of the 
     world's poor in an expanding circle of development and 
     opportunity is a moral imperative and one of the top 
     priorities of U.S. international policy''.
       (6) The National Commission on Terrorist Attacks Upon the 
     United States concluded that the Government of the United 
     States must offer an example of moral leadership in the world 
     and offer parents and their children a vision of the future 
     that emphasizes individual educational and economic 
     opportunity as essential to the efforts of the United States 
     to defeat global terrorism.
       [(7) The summit of the Group of Eight scheduled for July 
     2005, the United Nations summit scheduled for September 2005, 
     and the Sixth Ministerial Conference of the World Trade 
     Organization scheduled for December 2005 will provide 
     opportunities to measure and continue to pursue progress on 
     the Millennium Development Goals.]
       (7) The summit of the Group of Eight held during July 2005, 
     the United Nations summit held during September 2005, and the 
     Sixth Ministerial Conference of the World Trade Organization 
     scheduled to be held during December 2005 have provided and 
     will provide opportunities to measure and continue to pursue 
     progress on the Millennium Development Goals.
       (8) The summit of the Group of Eight [scheduled for] held 
     July 6 through July 8, 2005, in Gleneagles, Scotland, [will 
     bring] brought together the countries that can make the 
     greatest contribution to alleviating extreme poverty in 
     Africa, the region of the world where extreme poverty is most 
     prevalent.
       (9) On June 11, 2005, the United States helped secure the 
     agreement of the Group of Eight Finance Ministers to cancel 
     100 percent of the debt obligations owed to the World Bank, 
     African Development Bank, and International Monetary Fund by 
     countries that are eligible for debt relief under the Highly 
     Indebted Poor Countries Initiative, the initiative 
     established in 1996 by the World Bank and the International 
     Monetary Fund for the purpose of reducing the debt burdens of 
     the world's poorest countries, or under the Enhanced HIPC 
     Initiative, as defined in section 1625 of the International 
     Financial Institutions Act (22 U.S.C. 262p-8), which are poor 
     countries that are on the path to reform.
       (10) The report prepared by the Commission for Africa and 
     issued by Prime Minister Tony Blair on March 11, 2005, 
     entitled ``Our Common Interest'', called for coherence and 
     coordination in the development of an overarching package of 
     actions to be carried out by the countries of Africa and the 
     international community to address the complex interlocking 
     issues that challenge the continent, many of which have 
     already been addressed individually in previous summits and 
     under the Africa Action Plan enacted by the Group of Eight.
       (11) The United States has recognized the need for 
     strengthened economic and trade opportunities, as well as 
     increased financial and technical assistance to Africa and 
     other countries burdened by extreme poverty, through 
     significant initiatives in recent years, including--
       (A) the African Growth and Opportunity Act (19 U.S.C. 3701 
     et seq.) that has opened United States markets to thousands 
     of products from Africa;
       (B) the President's Emergency Plan for AIDS Relief 
     developed under section 101 of the United States Leadership 
     Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003

[[Page 30904]]

     (22 U.S.C. 7611), the major focus of which has been on 
     African countries;
       (C) the Millennium Challenge Corporation established under 
     section 604 of the Millennium Challenge Act of 2003 (22 
     U.S.C. 7703) that is in the process of committing new and 
     significant levels of assistance to countries, including 
     countries in Africa, that are poor but show great promise for 
     boosting economic growth and bettering the lives of their 
     people; and
       (D) [the United States has canceled] the cancellation by 
     the United States of 100 percent of the bilateral debt owed 
     to the Untied States by countries eligible for debt relief 
     under the Enhanced HIPC Initiative.
       (12) The report prepared by the Commission for Africa 
     entitled ``Our Common Interest'' includes the following 
     findings:
       (A) The people of Africa must demonstrate the leadership 
     necessary to address the governance challenges they face, 
     setting priorities that ensure the development of effective 
     civil and police services, independent judiciaries, and 
     strong parliaments, all of which reinforce a stable and 
     predictable economic environment attractive to investment.
       (B) Many leaders in Africa have pursued personal self-
     interest rather than national goals, a tendency that has been 
     in some instances exacerbated and abetted by the manipulation 
     of foreign governments pursuing their own agenda in the 
     region to the detriment of the people of Africa.
       (C) More violent conflict has occurred in Africa during the 
     period between 1965 and 2005 than occurred in any other 
     continent during that period, and the countries of Africa 
     must engage on the individual, national, and regional level 
     to prevent and manage conflict.
       (D) The capacity to trade is constrained by a derelict or 
     nonexistent infrastructure in most African countries as well 
     as by the double-edged sword of tariff and nontariff barriers 
     to trade that complicate markets and discourage investment 
     both within and beyond the continent.
       (E) The local resources for investment in people and the 
     institutions necessary for good governance have been 
     squandered, misappropriated, and, to an increasingly 
     devastating effect, spent on servicing debt to the developed 
     world. Such resources should be reoriented to serve the needs 
     of the people through the use of debt forgiveness and support 
     for institutional reform and internal capacity building.
       (F) Failing to prevent conflict in Africa results in 
     incalculable costs to African development and expense to the 
     international community and the investment in preventing 
     conflict is a fraction of such costs and expenses, in human, 
     security, and financial terms.
       (G) Despite difficulties, there is optimism and energy 
     reflected in the scope of activities of individuals such as 
     2004 Nobel Peace Prize recipient, Wangari Maathai, as well as 
     those of improved regional organizations such as the African 
     Union and the New Partnership for Economic Development's Peer 
     Review Mechanism, and subregional entities such as the 
     Economic Community of West African States, the Inter-
     Governmental Authority on Development, and the potential of 
     the Southern African Development Community.
       (H) Political reform in Africa has produced results. For 
     example, while in 1985 countries of sub-Saharan Africa ruled 
     by dictators were the norm, by 2005 dictatorships are a 
     minority and democracy has new life with governments chosen 
     by the people increasing fourfold since 1991.
       (13) The report prepared by the Commission for Africa 
     entitled ``Our Common Interest'' includes the following 
     recommendations:
       (A) At this vital moment when globalization and growth, 
     technology and trade, and mutual security concerns allow, and 
     common humanity demands, a substantial tangible and coherent 
     package of actions should immediately be taken by the 
     international community, led by the most industrialized 
     countries, in partnership with the countries of Africa, to 
     address the poverty and underdevelopment of the African 
     continent.
       (B) The people of Africa must take responsibility and show 
     courageous leadership in addressing problems and taking 
     ownership of solutions as the means for ensuring sustainable 
     development, while implementing governance reform as an 
     underlying prerequisite for foreign assistance effectiveness.
       (C) Each developed country has unique strengths and 
     capacity to add value to a comprehensive assistance plan and 
     should join their individual efforts to a coherent whole that 
     is more efficient and responsive to Africa and the people of 
     Africa.
       (D) The international community must honor existing 
     commitments to strengthen African peacekeeping capacity and 
     go beyond those commitments to invest in more effective 
     prevention and nonmilitary means to resolve conflict through 
     such regional organizations as the African Union and the 
     subregional Economic Community for West African States.
       (E) A massive investment in physical infrastructure should 
     be made to support commerce, extend governance, and provide 
     opportunities for education, healthcare, investment and 
     growth.
       (F) Donors and the governments of the countries of Africa 
     should devote substantial investment in the men and women of 
     Africa through the education and health sectors, enabling and 
     extending recent gains made to reach far more broadly into 
     remote regions.
       (G) The public sector should actively engage the private 
     sector in driving growth through partnerships by reforming 
     the laws, bureaucracy, and infrastructure necessary to 
     maintain a climate that fosters investment by developing 
     public-private centers of excellence to pursue such reforms.
       (H) The countries of Africa must maximize the participation 
     of women in both business and government, protect the rights 
     of women, and work to increase the number of women in 
     leadership positions so as to capitalize on the ability of 
     women to deliver scarce resources effectively and fairly.
       (I) The international community must work together to 
     dismantle trade barriers, including the immediate elimination 
     of trade-distorting commodity support.
       (J) International donors should strengthen multilateral 
     institutions in Africa to respond appropriately to local and 
     regional crises as well as to promote economic development 
     and ensure the people of Africa are granted a stronger voice 
     in international forums.
       (K) The international community must join in providing 
     creative incentives for commercial firms to research and 
     develop products that improve water, sanitation, health, and 
     the environment in ways that would dramatically reduce 
     suffering and increase productive life-spans in Africa.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means the Committee 
     on Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Group of eight.--The term ``Group of Eight'' means the 
     forum for addressing international economic, political, and 
     social issues attended by representatives of Canada, France, 
     Germany, Italy, Japan, Russia, the United Kingdom, and the 
     United States.
       (3) Millennium development goals.--The term ``Millennium 
     Development Goals'' means the goals set out in United Nations 
     Millennium Declaration, resolution [55/1] 55/2 adopted by the 
     General Assembly of the United Nations on September 8, 2000.

     SEC. 4. SENSE OF CONGRESS.

       It is the sense of Congress that--
       [(1) the President should continue to provide the 
     leadership necessary at the summit of the Group of Eight 
     scheduled for July 2005 at Gleneagles, Scotland, to encourage 
     other countries to develop a true partnership to pursue the 
     Millennium Development Goals;]
       (1) the President should continue to provide the leadership 
     shown at the summit of the Group of Eight held in July 2005 
     at Gleneagles, Scotland, to continue to encourage other 
     countries to develop a true partnership to pursue the 
     Millennium Development Goals;
       (2) the President should urge the Group of Eight to 
     consider the findings and recommendations contained in the 
     report prepared by the Commission for Africa entitled ``Our 
     Common Interest'', as a fundamental guide on which to base 
     their planning, in partnership with the nations of Africa, 
     for the development of Africa;
       (3) the Group of Eight, as well as governments of the 
     countries of Africa and regional organizations of such 
     governments, should reaffirm and honor the commitments made 
     in the Africa Action Plan enacted by the Group of Eight in 
     previous years; and
       [(4) the international community should pursue further 
     progress toward achieving the Millennium Development Goals at 
     the summit of the Group of Eight scheduled for July 2005, the 
     United Nations summit scheduled for September 2005, and the 
     Sixth Ministerial Conference of the World Trade Organization 
     scheduled for December 2005.]
       (4) the international community should continue to build 
     upon the progress made at the summit of the Group of Eight in 
     July 2005 and the United Nations summit in September 2005 
     toward achieving the Millennium Development Goals, and should 
     further enable such progress at the Sixth Ministerial 
     Conference of the World Trade Organization scheduled for 
     December 2005.

     SEC. 5. REPORT.

       (a) Requirement.--Not later than 60 days after the date of 
     the conclusion of [the World Trade Organization Ministerial 
     meeting in Hong Kong that is scheduled to be held] the Sixth 
     Ministerial Conference of the World Trade Organization that 
     is scheduled to be held in Hong Kong from December 13 through 
     December 18, 2005, the Secretary of State in consultation 
     with other appropriate United States and international 
     agencies shall submit a report to the appropriate 
     congressional committees on the progress the international 
     community is making toward achieving the Millennium 
     Development Goals.
       (b) Content.--The report required by subsection (a) shall 
     include the following:
       (1) A review of the commitments made by the United States 
     and other members of the international community at the 
     summit of

[[Page 30905]]

     the Group of Eight [scheduled for] in July 2005, the United 
     Nations summit [scheduled for] in September 2005, and the 
     Sixth Ministerial Conference of the World Trade Organization 
     scheduled for December 2005, that pertain to the ability of 
     the developing world to achieve the Millennium Development 
     Goals.
       (2) A review of United States policies and progress toward 
     achieving the Millennium Development Goals by 2015, as well 
     as policies to provide continued leadership in achieving such 
     goals by 2015.
       (3) An [evaluation] evaluation, to the extent possible, of 
     the contributions of other national and international actors 
     in achieving the Millennium Development Goals by 2015.
       (4) An assessment of the likelihood that the Millennium 
     Development Goals will be achieved.

  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
at the desk be agreed to, the committee-reported amendments, as 
amended, if amended, be agreed to, the bill, as amended, be read a 
third time and passed, the motion to reconsider be laid upon the table, 
and that any statements relating to the measure be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2693) was agreed to, as follows:

       On page 13 line 21-22, strike ``as a fundamental guide on 
     which to base their planning,''

  The committee-reported amendments were agreed to.
  The bill (S. 1315), as amended, was read the third time and passed, 
as follows:
  (The bill will be printed in a future edition of the Record.)

                          ____________________




                   VET CENTER ENHANCEMENT ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 290, S. 716.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 716) to amend title 38, United States Code, to 
     enhance services provided by vet centers, to clarify and 
     improve the provision of bereavement counseling by the 
     Department of Veterans Affairs, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read a third time and passed, and the motion to reconsider be laid upon 
the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 716) was read the third time and passed, as follows:

                                 S. 716

       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 ``Vet Center Enhancement Act 
     of 2005''.

     SEC. 2. EXPANSION OF OUTREACH ACTIVITIES OF VET CENTERS.

       (a) Additional Outreach Workers.--The Secretary of Veterans 
     Affairs shall employ not more than 50 veterans of Operation 
     Enduring Freedom or Operation Iraqi Freedom for the purpose 
     of providing outreach to veterans on the availability of 
     readjustment counseling and related mental health services 
     for veterans under section 1712A of title 38, United States 
     Code.
       (b) Construction With Current Outreach Program.--The 
     veterans employed under subsection (a) are in addition to any 
     veterans employed by the Secretary for the purpose described 
     in that subsection under the February 2004 program of the 
     Department of Veterans Affairs to provide outreach described 
     in that subsection.
       (c) Assignment to Vet Centers.--The Secretary may assign 
     any veteran employed under subsection (a) to any vet center 
     that the Secretary considers appropriate in order to meet the 
     purpose described in that subsection.
       (d) Inapplicability and Termination of Limitation on 
     Duration of Employment.--Any limitation on the duration of 
     employment of veterans under the program described in 
     subsection (b) is hereby terminated, and shall not apply to 
     veterans employed under such program or under this section.
       (e) Employment Status.--Veterans employed under subsection 
     (a) shall be employed in career conditional status, which is 
     the employment status in which veterans are employed under 
     the program described in subsection (b).
       (f) Definitions.--In this section:
       (1) Vet center.--The term ``vet center'' means a center for 
     the provision of readjustment counseling and related mental 
     health services under section 1712A of title 38, United 
     States Code.
       (2) Veteran of operation enduring freedom or operation 
     iraqi freedom.--The term ``veteran of Operation Enduring 
     Freedom or Operation Iraqi Freedom'' means any veteran who 
     served in the Southwest Asia theater of operations during 
     Operation Enduring Freedom or Operation Iraqi Freedom.

     SEC. 3. CLARIFICATION AND ENHANCEMENT OF BEREAVEMENT 
                   COUNSELING.

       (a) Clarification of Members of Immediate Family Eligible 
     for Counseling.--Subsection (b) of section 1783 of title 38, 
     United States Code, is amended--
       (1) by inserting ``(1)'' before ``The Secretary''; and
       (2) by adding at the end the following new paragraph:
       ``(2) For purposes of this subsection, the members of the 
     immediate family of a member of the Armed Forces described in 
     paragraph (1) include the parents of such member.''.
       (b) Provision of Counseling Through Vet Centers.--Such 
     section is further amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Provision of Counseling Through Vet Centers.--
     Bereavement counseling may be provided under this section 
     through the facilities and personnel of centers for the 
     provision of readjustment counseling and related mental 
     health services under section 1712A of this title.''.

     SEC. 4. FUNDING FOR VET CENTER PROGRAM.

       There is authorized to be appropriated to the Department of 
     Veterans Affairs for fiscal year 2006, $180,000,000 for the 
     provision of readjustment counseling and related mental 
     health services through centers under section 1712A of title 
     38, United States Code, including for the discharge of the 
     requirements of this Act (and the amendments made by this 
     Act).

                          ____________________




                    VETERANS HEALTH CARE ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 284, S. 1182.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1182) to amend title 38, United States Code, to 
     improve health care for veterans, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Veterans' Affairs, with 
an amendment.
  [Strike the part shown in black brackets and insert the part shown in 
italic.]

                                S. 1182

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

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

       [(a) Short Title.--This Act may be cited as the ``Veterans 
     Health Care Act of 2005''.
       [(b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment or repeal to a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of title 38, United States Code.

     [SEC. 2. COPAYMENT EXEMPTION FOR HOSPICE CARE.

       [Section 1710 is amended--
       [(1) in subsection (f)(1), by inserting ``(other than 
     hospice care)'' after ``nursing home care''; and
       [(2) in subsection (g)(1), by inserting ``(other than 
     hospice care)'' after ``medical services''.

     [SEC. 3. NURSING HOME BED LEVELS; EXEMPTION FROM EXTENDED 
                   CARE SERVICES COPAYMENTS FOR FORMER POWS.

       [Section 1710B is amended--
       [(1) by striking subsection (b);
       [(2) by redesignating subsections (c) through (e) as 
     subsections (b) through (d), respectively; and
       [(3) in subsection (b)(2), as redesignated--
       [(A) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (D), respectively; and
       [(B) by inserting after subparagraph (A) the following:
       [``(B) to a veteran who is a former prisoner of war;''.

     [SEC. 4. REIMBURSEMENT FOR CERTAIN VETERANS' OUTSTANDING 
                   EMERGENCY TREATMENT EXPENSES. .

       [ (a) In General.--Subchapter III of chapter 17 is amended 
     by inserting after section 1725 the following:

     [``Sec. 1725A. Reimbursement for emergency treatment expenses 
       for which certain veterans remain personally liable

       [``(a)(1) Subject to subsection (c), the Secretary may 
     reimburse a veteran described in

[[Page 30906]]

     subsection (b) for expenses resulting from emergency 
     treatment furnished to the veteran in a non-Department 
     facility for which the veteran remains personally liable.
       [``(2) In any case in which reimbursement is authorized 
     under subsection (a)(1), the Secretary, in the Secretary's 
     discretion, may, in lieu of reimbursing the veteran, make 
     payment--
       [``(A) to a hospital or other health care provider that 
     furnished the treatment; or
       [``(B) to the person or organization that paid for such 
     treatment on behalf of the veteran.
       [``(b) A veteran referred to in subsection (a) is an 
     individual who--
       [``(1) is enrolled in the health care system established 
     under section 1705(a) of this title;
       [``(2) received care under this chapter during the 24-month 
     period preceding the furnishing of such emergency treatment;
       [``(3) is entitled to care or services under a health-plan 
     contract that partially reimburses the cost of the veteran's 
     emergency treatment;
       [``(4) is financially liable to the provider of emergency 
     care treatment for costs not covered by the veteran's health-
     plan contract, including copayments and deductibles; and
       [``(5) is not eligible for reimbursement for medical care 
     or services under section 1725 or 1728 of this title.
       [``(c)(1) Any amount paid by the Secretary under subsection 
     (a) shall exclude the amount of any payment the veteran would 
     have been required to make to the United States under this 
     chapter if the veteran had received the emergency treatment 
     from the Department.
       [``(2) The Secretary may not provide reimbursement under 
     this section with respect to any item or service--
       [``(A) provided or for which payment has been made, or can 
     reasonably be expected to be made, under the veteran's 
     health-plan contract; or
       [``(B) for which payment has been made or can reasonably be 
     expected to be made by a third party.
       [``(3)(A) Payment by the Secretary under this section on 
     behalf of a veteran to a provider of emergency treatment 
     shall, unless rejected and refunded by the provider within 30 
     days of receipt, extinguish any liability on the part of the 
     veteran for that treatment.
       [``(B) The absence of a contract or agreement between the 
     Secretary and the provider, any provision of a contract or 
     agreement, or an assignment to the contrary shall not operate 
     to modify, limit, or negate the requirement under 
     subparagraph (A).
       [``(4) In accordance with regulations prescribed by the 
     Secretary, the Secretary shall--
       [``(A) establish criteria for determining the amount of 
     reimbursement (which may include a maximum amount) payable 
     under this section; and
       [``(B) delineate the circumstances under which such payment 
     may be made, including requirements for requesting 
     reimbursement.
       [``(d)(1) In accordance with regulations prescribed by the 
     Secretary, the United States shall have the independent right 
     to recover any amount paid under this section if, and to the 
     extent that, a third party subsequently makes a payment for 
     the same emergency treatment.
       [``(2) Any amount paid by the United States to the veteran, 
     the veteran's personal representative, successor, dependents, 
     or survivors, or to any other person or organization paying 
     for such treatment shall constitute a lien in favor of the 
     United States against any recovery the payee subsequently 
     receives from a third party for the same treatment.
       [``(3) Any amount paid by the United States to the provider 
     that furnished the veteran's emergency treatment shall 
     constitute a lien against any subsequent amount the provider 
     receives from a third party for the same emergency treatment 
     for which the United States made payment.
       [``(4) The veteran or the veteran's personal 
     representative, successor, dependents, or survivors shall--
       [``(A) ensure that the Secretary is promptly notified of 
     any payment received from any third party for emergency 
     treatment furnished to the veteran;
       [``(B) immediately forward all documents relating to a 
     payment described in subparagraph (A);
       [``(C) cooperate with the Secretary in an investigation of 
     a payment described in subparagraph (A); and
       [``(D) assist the Secretary in enforcing the United States 
     right to recover any payment made under subsection (c)(3).
       [``(e) The Secretary may waive recovery of a payment made 
     to a veteran under this section that is otherwise required 
     under subsection (d)(1) if the Secretary determines that such 
     waiver would be in the best interest of the United States, as 
     defined by regulations prescribed by the Secretary.
       [``(f) For purposes of this section--
       [``(1) the term `health-plan contract' includes--
       [``(A) an insurance policy or contract, medical or hospital 
     service agreement, membership or subscription contract, or 
     similar arrangement, under which health services for 
     individuals are provided or the expenses of such services are 
     paid;
       [``(B) an insurance program described in section 1811 of 
     the Social Security Act (42 U.S.C. 1395c) or established by 
     section 1831 of that Act (42 U.S.C. 1395j);
       [``(C) a State plan for medical assistance approved under 
     title XIX of such Act (42 U.S.C. 1396 et seq.); and
       [``(D) a workers' compensation law or plan described in 
     section 1729(A)(2)(B) of this title;
       [``(2) the term `third party' means--
       [``(A) a Federal entity;
       [``(B) a State or political subdivision of a State;
       [``(C) an employer or an employer's insurance carrier; and
       [``(D) a person or entity obligated to provide, or pay the 
     expenses of, such emergency treatment; and
       [``(3) the term `emergency treatment' has the meaning given 
     such term in section 1725 of this title.''.
       [(b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1725 the following:

[``Sec. 1725A. Reimbursement for emergency treatment expenses for which 
              certain veterans remain personally liable.''.

     [SEC. 5. CARE FOR NEWBORN CHILDREN OF WOMEN VETERANS 
                   RECEIVING MATERNITY CARE .

       [(a) In General.--Subchapter VIII of chapter 17 is amended 
     by adding at the end the following:

     [``Sec. 1786. Care for newborn children of women veterans 
       receiving maternity care

       [``The Secretary may furnish care to a newborn child of a 
     woman veteran, who is receiving maternity care furnished by 
     the Department, for not more than 14 days after the birth of 
     the child if the veteran delivered the child in a Department 
     facility or in another facility pursuant to a Department 
     contract for the delivery services.''.
       [(b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1785 the following:

[``Sec. 1786. Care for newborn children of women veterans receiving 
              maternity care.''.

     [SEC. 6. ENHANCEMENT OF PAYER PROVISIONS FOR HEALTH CARE 
                   FURNISHED TO CERTAIN CHILDREN OF VIETNAM 
                   VETERANS.

       [(a) Health Care for Spina Bifida and Associated 
     Disabilities.--Section 1803 is amended--
       [(1) by redesignating subsection (c) as subsection (d); and
       [(2) by inserting after subsection (b) the following:
       [``(c)(1) If a payment made by the Secretary for health 
     care under this section is less than the amount billed for 
     such health care, the health care provider or agent of the 
     health care provider may, in accordance with paragraphs (2) 
     through (4), seek payment for the difference between the 
     amount billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       [``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received the health 
     care, or the family of such beneficiary, for any service or 
     item for which the Secretary has made payment under this 
     section;
       [``(3) The total amount of payment a health care provider 
     or agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary.
       [``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.
       [(b) Health Care for Birth Defects and Associated 
     Disabilities.--Section 1813 is amended--
       [(1) by redesignating subsection (c) as subsection (d); and
       [(2) by inserting after subsection (b) the following:
       [``(c)(1) If payment made by the Secretary for health care 
     under this section is less than the amount billed for such 
     health care, the health care provider or agent of the health 
     care provider may, in accordance with paragraphs (2) through 
     (4), seek payment for the difference between the amount 
     billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       [``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received health 
     care, or the family of such beneficiary, for any service or 
     item for which the Secretary has made payment under this 
     section;
       [``(3) The total amount of payment a health care provider 
     or agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary; 
     and
       [``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.

[[Page 30907]]



     [SEC. 7. IMPROVEMENTS TO HOMELESS PROVIDERS GRANT AND PER 
                   DIEM PROGRAM.

       [(a) Permanent Authority.--Section 2011 (a) is amended--
       [(1) in paragraph (1), by striking ``(1)''; and
       [(2) by striking paragraph (2).
       [(b) Authorization of Appropriations.--Section 2013 is 
     amended to read as follows:

     [``Sec. 2013. Authorization of appropriations

       [``There are authorized to be appropriated $130,000,000 for 
     fiscal year 2006 and each subsequent fiscal year to carry out 
     this subchapter.''.

     [SEC. 8. MARRIAGE AND FAMILY THERAPISTS.

       [(a) Qualifications.--Section 7402(b) is amended--
       [(1) by redesignating paragraph (10) as paragraph (11); and
       [(2) by inserting after paragraph (9) the following:
       [``(10) Marriage and family therapist.--To be eligible to 
     be appointed to a marriage and family therapist position, a 
     person must--
       [``(A) hold a master's degree in marriage and family 
     therapy, or a comparable degree in mental health, from a 
     college or university approved by the Secretary; and
       [``(B) be licensed or certified to independently practice 
     marriage and family therapy in a State, except that the 
     Secretary may waive the requirement of licensure or 
     certification for an individual marriage and family therapist 
     for a reasonable period of time recommended by the Under 
     Secretary for Health.''.
       [(b) Report on Marriage and Family Therapy Workload.--
       [(1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Under Secretary for Health, 
     Department of Veterans Affairs, shall submit to the Committee 
     on Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a report on 
     the provisions of post-traumatic stress disorder treatment by 
     marriage and family therapists.
       [(2) Contents.--The report submitted under paragraph (1) 
     shall include--
       [(A) the actual and projected workloads in facilities of 
     the Veterans Readjustment Counseling Service and the Veterans 
     Health Administration for the provision of marriage and 
     family counseling for veterans diagnosed with, or otherwise 
     in need of treatment for, post-traumatic stress disorder;
       [(B) the resources available and needed to support the 
     workload projections described in subparagraph (A);
       [(C) an assessment by the Under Secretary for Health of the 
     effectiveness of treatment by marriage and family therapists; 
     and
       [(D) recommendations, if any, for improvements in the 
     provision of such counseling treatment.

     [SEC. 9. PAY COMPARABILITY FOR CHIEF NURSING OFFICER, OFFICE 
                   OF NURSING SERVICES.

       [Section 7404 is amended--
       [(1) in subsection (d), by striking ``subchapter III'' and 
     inserting ``paragraph (e), subchapter III,''; and
       [(2) by adding at the end the following:
       [``(e) The position of Chief Nursing Officer, Office of 
     Nursing Services, shall be exempt from the provisions of 
     section 7451 of this title and shall be paid at a rate not to 
     exceed the maximum rate established for the Senior Executive 
     Service under section 5382 of title 5 United States Code, as 
     determined by the Secretary.''.

     [SEC. 10. REPEAL OF COST COMPARISON STUDIES PROHIBITION.

       [Section 8110(a) is amended--
       [(1) by striking paragraph (5); and
       [(2) by redesignating paragraph (6) as paragraph (5).

     [SEC. 11. IMPROVEMENTS AND EXPANSION OF MENTAL HEALTH 
                   SERVICES.

       [(a) In General.--The Secretary of Veterans affairs shall--
       [(1) expand the number of clinical treatment teams 
     principally dedicated to the treatment of post-traumatic 
     stress disorder in medical facilities of the Department of 
     Veterans Affairs;
       [(2) expand and improve the services available to diagnose 
     and treat substance abuse;
       [(3) expand and improve tele-health initiatives to provide 
     better access to mental health services in areas of the 
     country in which the Secretary determines that a need for 
     such services exist due to the distance of such locations 
     from an appropriate facility of the Department of Veterans 
     Affairs;
       [(4) improve education programs available to primary care 
     delivery professionals and dedicate such programs to 
     recognize, treat, and clinically manage veterans with mental 
     health care needs;
       [(5) expand the delivery of mental health services in 
     community-based outpatient clinics of the Department of 
     Veterans Affairs in which such services are not available as 
     of the date of enactment of this Act; and
       [(6) expand and improve the Mental Health Intensive Case 
     Management Teams for the treatment and clinical case 
     management of veterans with serious or chronic mental 
     illness.
       [(b) Authorization of Appropriations.--There are authorized 
     to be appropriated in each of fiscal years 2006 and 2007, 
     $95,000,000 to improve and expand the treatment services and 
     options available to veterans in need of mental health 
     treatment from the Department of Veterans Affairs, of which--
       [(1) $5,000,000 shall be allocated to carry out subsection 
     (a)(1);
       [(2) $50,000,000 shall be allocated to carry out subsection 
     (a)(2);
       [(3) $10,000,000 shall be allocated to carry out subsection 
     (a)(3);
       [(4) $1,000,000 shall be allocated to carry out subsection 
     (a)(4);
       [(5) $20,000,000 shall be allocated to carry out subsection 
     (a)(5); and
       [(6) $5,000,000 shall be allocated to carry out subsection 
     (a)(6).

     [SEC. 12. DATA SHARING IMPROVEMENTS.

       [Notwithstanding any other provision of law, the Department 
     of Veterans Affairs and the Department of Defense may 
     exchange protected health information for--
       [(1) patients receiving treatment from the Department of 
     Veterans Affairs; or
       [(2) individuals who may receive treatment from the 
     Department of Veterans Affairs in the future, including all 
     current and former members of the Armed Services.

     [SEC. 13. EXPANSION OF NATIONAL GUARD OUTREACH PROGRAM.

       [(a) Requirement.--The Secretary of Veterans Affairs shall 
     expand the total number of personal employed by the 
     Department of Veterans Affairs as part of the Readjustment 
     Counseling Service's Global War on Terrorism Outreach Program 
     (referred to in this section as the ``Program'').
       [(b) Coordination.--In carrying out subsection (a), the 
     Secretary shall coordinate participation in the Program by 
     appropriate employees of the Veterans Benefits Administration 
     and the Veterans Health Administration.
       [(c) Information and Assessments.--The Secretary shall 
     ensure that--
       [(1) all appropriate health, education, and benefits 
     information is available to returning members of the National 
     Guard; and
       [(2) proper assessments of the needs in each of these areas 
     is made by the Department of Veterans Affairs.
       [(d) Collaboration.--The Secretary of Veterans Affairs 
     shall collaborate with appropriate State National Guard 
     officials and provide such officials with any assets or 
     services of the Department of Veterans Affairs that the 
     Secretary determines to be necessary to carry out the Global 
     War on Terrorism Outreach Program.

     [SEC. 14. EXPANSION OF TELE-HEALTH SERVICES.

       [(a) In General.--The Secretary shall increase the number 
     of Veterans Readjustment Counseling Service facilities 
     capable of providing health services and counseling through 
     tele-health linkages with facilities of the Veterans Health 
     Administration.
       [(b) Plan.--The Secretary shall submit to the Committee on 
     Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a plan to 
     implement the requirement under subsection (a), which shall 
     describe the facilities that will have such capabilities at 
     the end of each of fiscal years 2005, 2006, and 2007.

     [SEC. 15. MENTAL HEALTH DATA SOURCES REPORT.

       [(a) In General.--Not less than 180 days after the date of 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit a report to the Committee on Veterans' Affairs 
     of the Senate and the Committee on Veterans' Affairs of the 
     House of Representatives describing the mental health data 
     maintained by the Department of Veterans Affairs.
       [(b) Contents.--The report submitted under subsection (a) 
     shall include--
       [(1) a comprehensive list of the sources of all such data, 
     including the geographic locations of facilities of the 
     Department of Veterans Affairs maintaining such data;
       [(2) an assessment of the limitations or advantages to 
     maintaining the current data configuration and locations; and
       [(3) any recommendations, if any, for improving the 
     collection, use, and location of mental health data 
     maintained by the Department of Veterans Affairs.]

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

       (a) Short Title.--This Act may be cited as the ``Veterans 
     Health Care Act of 2005''.
       (b) References.--Except as otherwise expressly provided, 
     whenever in this Act an amendment or repeal is expressed in 
     terms of an amendment or repeal to a section or other 
     provision, the reference shall be considered to be made to a 
     section or other provision of title 38, United States Code.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; references to title 38, United States Code; table 
              of contents.
Sec. 2. Care for newborn children of women veterans receiving maternity 
              care.
Sec. 3. Enhancement of payer provisions for health care furnished to 
              certain children of Vietnam veterans.
Sec. 4. Improvements to homeless veterans service providers programs.
Sec. 5. Additional mental health providers.
Sec. 6. Pay comparability for Chief Nursing Officer, Office of Nursing 
              Services.
Sec. 7. Repeal of cost comparison studies prohibition.

[[Page 30908]]

Sec. 8. Improvements and expansion of mental health services.
Sec. 9. Data sharing improvements.
Sec. 10. Expansion of National Guard Outreach Program.
Sec. 11. Expansion of tele-health services.
Sec. 12. Mental health data sources report.
Sec. 13. Strategic plan for long-term care.
Sec. 14. Blind rehabilitation outpatient specialists.
Sec. 15. Compliance report.
Sec. 16. Health care and services for veterans affected by Hurricane 
              Katrina.
Sec. 17. Reimbursement for certain veterans' outstanding emergency 
              treatment expenses.

     SEC. 2. CARE FOR NEWBORN CHILDREN OF WOMEN VETERANS RECEIVING 
                   MATERNITY CARE.

       (a) In General.--Subchapter VIII of chapter 17 is amended 
     by adding at the end the following:

     ``Sec. 1786. Care for newborn children of women veterans 
       receiving maternity care

       ``The Secretary may furnish care to a newborn child of a 
     woman veteran, who is receiving maternity care furnished by 
     the Department, for not more than 14 days after the birth of 
     the child if the veteran delivered the child in a Department 
     facility or in another facility pursuant to a Department 
     contract for the delivery services.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1785 the following:

``Sec. 1786. Care for newborn children of women veterans receiving 
              maternity care.''.

     SEC. 3. ENHANCEMENT OF PAYER PROVISIONS FOR HEALTH CARE 
                   FURNISHED TO CERTAIN CHILDREN OF VIETNAM 
                   VETERANS.

       (a) Health Care for Spina Bifida and Associated 
     Disabilities.--Section 1803 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c)(1) If a payment made by the Secretary for health care 
     under this section is less than the amount billed for such 
     health care, the health care provider or agent of the health 
     care provider may, in accordance with paragraphs (2) through 
     (4), seek payment for the difference between the amount 
     billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       ``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received the health 
     care, or the family of such beneficiary, for any service or 
     item for which the Secretary has made payment under this 
     section.
       ``(3) The total amount of payment a health care provider or 
     agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary.
       ``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.
       (b) Health Care for Birth Defects and Associated 
     Disabilities.--Section 1813 is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c)(1) If payment made by the Secretary for health care 
     under this section is less than the amount billed for such 
     health care, the health care provider or agent of the health 
     care provider may, in accordance with paragraphs (2) through 
     (4), seek payment for the difference between the amount 
     billed and the amount paid by the Secretary from a 
     responsible third party to the extent that the provider or 
     agent would be eligible to receive payment for such health 
     care from such third party.
       ``(2) The health care provider or agent may not impose any 
     additional charge on the beneficiary who received health 
     care, or the family of such beneficiary, for any service or 
     item for which the Secretary has made payment under this 
     section.
       ``(3) The total amount of payment a health care provider or 
     agent may receive for health care furnished under this 
     section may not exceed the amount billed to the Secretary.
       ``(4) The Secretary, upon request, shall disclose to such 
     third party information received for the purposes of carrying 
     out this section.''.

     SEC. 4. IMPROVEMENTS TO HOMELESS VETERANS SERVICE PROVIDERS 
                   PROGRAMS.

       (a) Permanent Authority.--Section 2011 (a) is amended--
       (1) in paragraph (1), by striking ``(1)''; and
       (2) by striking paragraph (2).
       (b) Authorization of Appropriations.--
       (1) Comprehensive service programs for homeless veterans.--
     Section 2013 is amended to read as follows:

     ``Sec. 2013. Authorization of appropriations

       ``There are authorized to be appropriated $130,000,000 for 
     fiscal year 2006 and each subsequent fiscal year to carry out 
     this subchapter.''.
       (2) Homeless veteran service provider technical assistance 
     program.--Section 2064(b) is amended to read as follows:
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated $1,000,000 for each of fiscal 
     years 2006 through 2011 to carry out the programs under this 
     section.''.

     SEC. 5. ADDITIONAL MENTAL HEALTH PROVIDERS.

       (a) Qualifications.--Section 7402(b) is amended--
       (1) by redesignating paragraph (10) as paragraph (12); and
       (2) by inserting after paragraph (9) the following:
       ``(10) Marriage and family therapist.--To be eligible to be 
     appointed to a marriage and family therapist position, a 
     person shall--
       ``(A) hold a master's degree in marriage and family 
     therapy, or a comparable degree in mental health, from a 
     college or university approved by the Secretary; and
       ``(B) be licensed or certified to independently practice 
     marriage and family therapy in a State, except that the 
     Secretary may waive the requirement of licensure or 
     certification for an individual marriage and family therapist 
     for a reasonable period of time recommended by the Under 
     Secretary for Health.
       ``(11) Licensed professional mental health counselors.--To 
     be eligible to be appointed to a licensed professional mental 
     health counselor position, a person shall--
       ``(A) hold a master's degree in mental health counseling, 
     or a related field, from a college or university approved by 
     the Secretary; and
       ``(B) be licensed or certified to independently practice 
     mental health counseling.''.
       (b) Report on Marriage and Family Therapy Workload.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Under Secretary for Health, 
     Department of Veterans Affairs, shall submit to the Committee 
     on Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a report on 
     the provisions of post-traumatic stress disorder treatment by 
     marriage and family therapists.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) the actual and projected workloads in facilities of the 
     Veterans Readjustment Counseling Service and the Veterans 
     Health Administration for the provision of marriage and 
     family counseling for veterans diagnosed with, or otherwise 
     in need of treatment for, post-traumatic stress disorder;
       (B) the resources available and needed to support the 
     workload projections described in subparagraph (A);
       (C) an assessment by the Under Secretary for Health of the 
     effectiveness of treatment by marriage and family therapists; 
     and
       (D) recommendations, if any, for improvements in the 
     provision of such counseling treatment.

     SEC. 6. PAY COMPARABILITY FOR CHIEF NURSING OFFICER, OFFICE 
                   OF NURSING SERVICES.

       Section 7404 is amended--
       (1) in subsection (d), by striking ``subchapter III and 
     in'' and inserting ``subsection (e), subchapter III, and''; 
     and
       (2) by adding at the end the following:
       ``(e) The position of Chief Nursing Officer, Office of 
     Nursing Services, shall be exempt from the provisions of 
     section 7451 of this title and shall be paid at a rate not to 
     exceed the maximum rate established for the Senior Executive 
     Service under section 5382 of title 5 United States Code, as 
     determined by the Secretary.''.

     SEC. 7. REPEAL OF COST COMPARISON STUDIES PROHIBITION.

       Section 8110(a) is amended--
       (1) by striking paragraph (5); and
       (2) by redesignating paragraph (6) as paragraph (5).

     SEC. 8. IMPROVEMENTS AND EXPANSION OF MENTAL HEALTH SERVICES.

       (a) Findings.--Congress makes the following findings:
       (1) Mental health treatment capacity at community-based 
     outpatient clinics remains inadequate and inconsistent, 
     despite the requirement under section 1706(c) of title 38, 
     United States Code, that every primary care health care 
     facility of the Department of Veterans Affairs develop and 
     carry out a plan to meet the mental health care needs of 
     veterans who require such services.
       (2) In 2001, the minority staff of the Committee on 
     Veterans' Affairs of the Senate conducted a survey of 
     community-based outpatient clinics and found that there was 
     no established systemwide baseline of acceptable mental 
     health service levels at such clinics.
       (3) In February 2005, the Government Accountability Office 
     reported that the Department of Veterans Affairs had not 
     fully met any of the 24 clinical care and education 
     recommendations made in 2004 by the Special Committee on 
     Post-Traumatic Stress Disorder of the Under Secretary for 
     Health, Veterans Health Administration.
       (b) Clinical Services and Education.--
       (1) In general.--The Secretary of Veterans affairs shall--
       (A) expand the number of clinical treatment teams 
     principally dedicated to the treatment of post-traumatic 
     stress disorder in medical facilities of the Department of 
     Veterans Affairs;
       (B) expand and improve the services available to diagnose 
     and treat substance abuse;
       (C) expand and improve tele-health initiatives to provide 
     better access to mental health services in areas of the 
     country in which the Secretary determines that a need for 
     such services exist due to the distance of such locations 
     from an appropriate facility of the Department of Veterans 
     Affairs;
       (D) improve education programs available to primary care 
     delivery professionals and dedicate

[[Page 30909]]

     such programs to recognize, treat, and clinically manage 
     veterans with mental health care needs;
       (E) expand the delivery of mental health services in 
     community-based outpatient clinics of the Department of 
     Veterans Affairs in which such services are not available as 
     of the date of enactment of this Act; and
       (F) expand and improve the Mental Health Intensive Case 
     Management Teams for the treatment and clinical case 
     management of veterans with serious or chronic mental 
     illness.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated $95,000,000 in each of fiscal years 2006 
     and 2007 to improve and expand the treatment services and 
     options available to veterans in need of mental health 
     treatment from the Department of Veterans Affairs, of which--
       (A) $5,000,000 shall be allocated to carry out paragraph 
     (1)(A);
       (B) $50,000,000 shall be allocated to carry out paragraph 
     (1)(B);
       (C) $10,000,000 shall be allocated to carry out paragraph 
     (1)(C);
       (D) $1,000,000 shall be allocated to carry out paragraph 
     (1)(D);
       (E) $20,000,000 shall be allocated to carry out paragraph 
     (1)(E); and
       (F) $5,000,000 shall be allocated to carry out paragraph 
     (1)(F).
       (c) Required Capacity for Community-Based Outpatient 
     Clinics.--
       (1) Accountability for the provision of mental health 
     services.--The Under Secretary shall take appropriate steps 
     and provide necessary incentives (including appropriate 
     performance incentives) to ensure that each Regional Director 
     of the Veterans Health Administration is encouraged to--
       (A) prioritize the provision of mental health services to 
     veterans in need of such services;
       (B) foster collaborative working environments among 
     clinicians for the provision of mental health services; and
       (C) conduct mental health consultations during primary care 
     appointments.
       (2) Mental health and substance abuse services.--
       (A) In general.--The Secretary shall ensure that each 
     community-based outpatient clinic of the Department has the 
     capacity to provide, or monitor the provision of, mental 
     health services to enrolled veterans in need of such 
     services.
       (B) Settings.--In carrying out subparagraph (A), the 
     Secretary shall ensure that mental health services are 
     provided through--
       (i) a community-based outpatient clinic of the Department 
     by an employee of the Department;
       (ii) referral to another facility of the Department;
       (iii) contract with an appropriate mental health 
     professional in the local community; or
       (iv) tele-mental health service.
       (3) Reporting requirement.--Not later than January 31, 
     2008, the Secretary of Veterans Affairs shall submit a report 
     to Congress that--
       (A) describes the status and availability of mental health 
     services at community-based outpatient clinics;
       (B) describes the substance of services available at such 
     clinics; and
       (C) includes the ratios between mental health staff and 
     patients at such clinics.
       (d) Cooperation on Mental Health Awareness and 
     Prevention.--
       (1) Agreement.--The Secretary of Defense and the Secretary 
     of Veterans Affairs shall enter into a Memorandum of 
     Understanding--
       (A) to ensure that separating service members receive 
     standardized individual mental health and sexual trauma 
     assessments as part of separation exams; and
       (B) that includes the development of shared guidelines on 
     how to conduct the assessments.
       (2) Establishment of joint veterans affairs-department of 
     defense workgroup on mental health.--
       (A) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Defense and the 
     Secretary of Veterans Affairs shall establish a joint 
     workgroup on mental health, which shall be comprised of not 
     less than 7 leaders in the field of mental health appointed 
     from their respective departments.
       (B) Study.--Not later than 1 year after the establishment 
     of the workgroup under subparagraph (A), the workgroup shall 
     analyze the feasibility, content, and scope of initiatives 
     related to--
       (i) combating stigmas and prejudices associated with 
     service members who suffer from mental health disorders or 
     readjustment issues, through the use of peer counseling 
     programs or other educational initiatives;
       (ii) ways in which the Department of Veterans Affairs can 
     make their expertise in treating mental health disorders more 
     readily available to Department of Defense mental health care 
     providers;
       (iii) family and spousal education to assist family members 
     of veterans and service members to recognize and deal with 
     signs of potential readjustment issues or other mental health 
     disorders; and
       (iv) the seamless transition of service members who have 
     been diagnosed with mental health disorders from active duty 
     to veteran status (in consultation with the Seamless 
     Transition Task Force and other entities assisting in this 
     effort).
       (C) Report.--Not later than June 30, 2007, the Secretary of 
     Defense and the Secretary of Veterans Affairs shall submit a 
     report to Congress containing the findings and 
     recommendations of the workgroup established under this 
     paragraph.
       (e) Primary Care Consultations for Mental Health.--
       (1) Guidelines.--The Under Secretary for Health, Veterans 
     Health Administration, shall establish systemwide guidelines 
     for screening primary care patients for mental health 
     disorders and illnesses.
       (2) Training.--Based upon the guidelines established under 
     paragraph (1), the Under Secretary for Health, Veterans 
     Health Administration, shall conduct appropriate training for 
     clinicians of the Department of Veterans Affairs to carry out 
     mental health consultations.
       (f) Clinical Training and Protocols.--
       (1) Findings.--Congress finds that--
       (A) the Iraq War Clinician Guide has tremendous value; and
       (B) the Secretary of Defense and the National Center on 
     Post Traumatic Stress Disorder should continue to work 
     together to ensure that the mental health care needs of 
     servicemembers and veterans are met.
       (2) Collaboration.--The National Center on Post Traumatic 
     Stress Disorder shall collaborate with the Secretary of 
     Defense--
       (A) to enhance the clinical skills of military clinicians 
     through training, treatment protocols, web-based 
     interventions, and the development of evidence-based 
     interventions; and
       (B) to promote pre-deployment resilience and post-
     deployment readjustment among servicemembers serving in 
     Operation Iraqi Freedom and Operation Enduring Freedom.
       (3) Training.--The National Center on Post Traumatic Stress 
     Disorder shall work with the Secretary of Defense to ensure 
     that clinicians in the Department of Defense are provided 
     with the training and protocols developed pursuant to 
     paragraph (2)(A).
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated $2,000,000 for 2006 to carry out this 
     subsection.

     SEC. 9. DATA SHARING IMPROVEMENTS.

       Notwithstanding any other provision of law, the Department 
     of Veterans Affairs and the Department of Defense may 
     exchange protected health information for--
       (1) patients receiving treatment from the Department of 
     Veterans Affairs; or
       (2) individuals who may receive treatment from the 
     Department of Veterans Affairs in the future, including all 
     current and former members of the armed services.

     SEC. 10. EXPANSION OF NATIONAL GUARD OUTREACH PROGRAM.

       (a) Requirement.--The Secretary of Veterans Affairs shall 
     expand the total number of personal employed by the 
     Department of Veterans Affairs as part of the Readjustment 
     Counseling Service's Global War on Terrorism Outreach Program 
     (referred to in this section as the ``Program'').
       (b) Coordination.--In carrying out subsection (a), the 
     Secretary shall coordinate participation in the Program by 
     appropriate employees of the Veterans Benefits Administration 
     and the Veterans Health Administration.
       (c) Information and Assessments.--The Secretary shall 
     ensure that--
       (1) all appropriate health, education, and benefits 
     information is available to returning members of the National 
     Guard; and
       (2) proper assessments of the needs in each of these areas 
     is made by the Department of Veterans Affairs.
       (d) Collaboration.--The Secretary of Veterans Affairs shall 
     collaborate with appropriate State National Guard officials 
     and provide such officials with any assets or services of the 
     Department of Veterans Affairs that the Secretary determines 
     to be necessary to carry out the Global War on Terrorism 
     Outreach Program.

     SEC. 11. EXPANSION OF TELE-HEALTH SERVICES.

       (a) In General.--The Secretary shall increase the number of 
     Veterans Readjustment Counseling Service facilities capable 
     of providing health services and counseling through tele-
     health linkages with facilities of the Veterans Health 
     Administration.
       (b) Plan.--The Secretary shall submit to the Committee on 
     Veterans' Affairs of the Senate and the Committee on 
     Veterans' Affairs of the House of Representatives a plan to 
     implement the requirement under subsection (a), which shall 
     describe the facilities that will have such capabilities at 
     the end of each of fiscal years 2005, 2006, and 2007.

     SEC. 12. MENTAL HEALTH DATA SOURCES REPORT.

       (a) In General.--Not less than 180 days after the date of 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall submit a report to the Committee on Veterans' Affairs 
     of the Senate and the Committee on Veterans' Affairs of the 
     House of Representatives describing the mental health data 
     maintained by the Department of Veterans Affairs.
       (b) Contents.--The report submitted under subsection (a) 
     shall include--
       (1) a comprehensive list of the sources of all such data, 
     including the geographic locations of facilities of the 
     Department of Veterans Affairs maintaining such data;
       (2) an assessment of the limitations or advantages to 
     maintaining the current data configuration and locations; and
       (3) any recommendations, if any, for improving the 
     collection, use, and location of mental health data 
     maintained by the Department of Veterans Affairs.

     SEC. 13. STRATEGIC PLAN FOR LONG-TERM CARE.

       (a) Publication.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Veterans Affairs 
     shall publish a strategic plan for long-term care.
       (b) Contents.--The plan published under subsection (a) 
     shall--
       (1) contain policies and strategies for--
       (A) the delivery of care in domiciliaries, residential 
     treatment facilities, and nursing homes, and for seriously 
     mentally ill veterans;

[[Page 30910]]

       (B) maximizing the use of State veterans homes;
       (C) locating domiciliary units as close to patient 
     populations as feasible; and
       (D) identifying freestanding nursing homes as an acceptable 
     care model;
       (2) include data on--
       (A) the care of catastrophically disabled veterans; and
       (B) the geographic distribution of catastrophically 
     disabled veterans;
       (3) address the spectrum of noninstitutional long-term care 
     options, including--
       (A) respite care;
       (B) home-based primary care;
       (C) geriatric evaluation;
       (D) adult day health care;
       (E) skilled home health care; and
       (F) community residential care; and
       (4) provide--
       (A) cost and quality comparison analyses of all the 
     different levels of care;
       (B) detailed information about geographic distribution of 
     services and gaps in care; and
       (C) specific plans for working with Medicare, Medicaid, and 
     private insurance companies to expand care.

     SEC. 14. BLIND REHABILITATION OUTPATIENT SPECIALISTS.

       (a) Findings.--Congress makes the following findings:
       (1) There are approximately 135,000 blind veterans 
     throughout the United States, including approximately 35,000 
     who are enrolled with the Department of Veterans Affairs. An 
     aging veteran population and injuries incurred in Operation 
     Iraqi Freedom and Operation Enduring Freedom are increasing 
     the number of blind veterans.
       (2) Since 1996, when the Department of Veterans Affairs 
     hired its first 14 blind rehabilitation outpatient 
     specialists (referred to in this section as ``Specialists'', 
     Specialists have been a critical part of the continuum of 
     care for blind and visually impaired veterans.
       (3) The Department of Veterans Affairs operates 10 
     residential blind rehabilitation centers that are considered 
     among the best in the world. These centers have had long 
     waiting lists, with as many as 1,500 blind veterans waiting 
     for openings in 2004.
       (4) Specialists provide--
       (A) critically needed services to veterans who are unable 
     to attend residential centers or are waiting to enter such a 
     program;
       (B) a range of services, including training with living 
     skills, mobility, and adaptation of manual skills; and
       (C) pre-admission screening and follow-up care for blind 
     rehabilitation centers.
       (5) There are not enough Specialist positions to meet the 
     increased numbers and needs of blind veterans.
       (b) Establishment of Specialist Positions.--Not later than 
     30 months after the date of enactment of this Act, the 
     Secretary of Veterans Affairs shall establish a Specialist 
     position at not fewer than 35 facilities of the Department of 
     Veterans Affairs.
       (c) Selection of Facilities.--In identifying the most 
     appropriate facilities to receive a Specialist position under 
     this section, the Secretary shall--
       (1) give priority to facilities with large numbers of 
     enrolled legally blind veterans;
       (2) ensure that each facility does not have such a 
     position; and
       (3) ensure that each facility is in need of the services of 
     such Specialists.
       (d) Coordination.--The Secretary shall coordinate the 
     provision of blind rehabilitation services for veterans with 
     services for the care of the visually impaired offered by 
     State and local agencies, especially if such State and local 
     agencies can provide similar services to veterans in settings 
     located closer to the residences of such veterans.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $3,500,000 for 
     each of the fiscal years 2006 through 2011.

     SEC. 15. COMPLIANCE REPORT.

       Section 1706(b)(5)(A) is amended by striking ``2004'' and 
     inserting ``2006''.

     SEC. 16. HEALTH CARE AND SERVICES FOR VETERANS AFFECTED BY 
                   HURRICANE KATRINA.

       (a) Requirement for Hospital Care and Medical Services for 
     Priority 8 Veterans Affected by Hurricane Katrina.--
       (1) In general.--Notwithstanding any other provision of law 
     and any notwithstanding any previous decisions made by the 
     Secretary of Veterans Affairs pursuant to chapter 17 of title 
     38 United States Code, the Secretary shall provide necessary 
     medical and health care services to any veteran affected by 
     Hurricane Katrina as if such veteran was enrolled for care 
     under section 1705 of title 38, United States Code.
       (2) Status of veterans.--For purposes of managing the 
     health care system, as required under section 1705 of title 
     38, United States Code, a veteran who seeks care under 
     paragraph (1) shall not be considered to be an enrollee of 
     the health care system under such section unless the 
     Secretary subsequently designates such a veteran as such an 
     enrollee.
       (b) Prohibition on Collection of Copayments for Veterans 
     Affected by Hurricane Katrina.--In furnishing hospital care 
     and medical services to any veteran affected by Hurricane 
     Katrina, the Secretary shall not collect from, or with 
     respect to, such veteran any payment for such care and 
     services otherwise required under any provision of law, 
     including any copayment for medications otherwise required 
     under section 1722A of title 38, United States Code.
       (c) Definition.--In this section, the term ``veteran 
     affected by Hurricane Katrina'' means any veteran who, as of 
     August 29, 2005, resided in the catchment region of the 
     Department of Veterans Affairs medical center in--
       (1) New Orleans, Louisiana;
       (2) Biloxi, Mississippi; or
       (3) Gulfport, Mississippi.
       (d) Sunset Provision.--The authority under this section 
     shall expire on January 31, 2006.

     SEC. 17. REIMBURSEMENT FOR CERTAIN VETERANS' OUTSTANDING 
                   EMERGENCY TREATMENT EXPENSES. .

        (a) In General.--Subchapter III of chapter 17 is amended 
     by inserting after section 1725 the following:

     ``Sec. 1725A. Reimbursement for emergency treatment expenses 
       for which certain veterans remain personally liable

       ``(a)(1) Subject to subsection (c), the Secretary may 
     reimburse a veteran described in subsection (b) for expenses 
     resulting from emergency treatment furnished to the veteran 
     in a non-Department facility for which the veteran remains 
     personally liable.
       ``(2) In any case in which reimbursement is authorized 
     under subsection (a)(1), the Secretary, in the Secretary's 
     discretion, may, in lieu of reimbursing the veteran, make 
     payment--
       ``(A) to a hospital or other health care provider that 
     furnished the treatment; or
       ``(B) to the person or organization that paid for such 
     treatment on behalf of the veteran.
       ``(b) A veteran referred to in subsection (a) is an 
     individual who--
       ``(1) is enrolled in the health care system established 
     under section 1705(a) of this title;
       ``(2) received care under this chapter during the 24-month 
     period preceding the furnishing of such emergency treatment;
       ``(3) is entitled to care or services under a health-plan 
     contract that partially reimburses the cost of the veteran's 
     emergency treatment;
       ``(4) is financially liable to the provider of emergency 
     care treatment for costs not covered by the veteran's health-
     plan contract, including copayments and deductibles; and
       ``(5) is not eligible for reimbursement for medical care or 
     services under section 1725 or 1728 of this title.
       ``(c)(1) Any amount paid by the Secretary under subsection 
     (a) shall exclude the amount of any payment the veteran would 
     have been required to make to the United States under this 
     chapter if the veteran had received the emergency treatment 
     from the Department.
       ``(2) The Secretary may not provide reimbursement under 
     this section with respect to any item or service--
       ``(A) provided or for which payment has been made, or can 
     reasonably be expected to be made, under the veteran's 
     health-plan contract; or
       ``(B) for which payment has been made or can reasonably be 
     expected to be made by a third party.
       ``(3)(A) Payment by the Secretary under this section on 
     behalf of a veteran to a provider of emergency treatment 
     shall, unless rejected and refunded by the provider within 30 
     days of receipt, extinguish any liability on the part of the 
     veteran for that treatment.
       ``(B) The absence of a contract or agreement between the 
     Secretary and the provider, any provision of a contract or 
     agreement, or an assignment to the contrary shall not operate 
     to modify, limit, or negate the requirement under 
     subparagraph (A).
       ``(4) In accordance with regulations prescribed by the 
     Secretary, the Secretary shall--
       ``(A) establish criteria for determining the amount of 
     reimbursement (which may include a maximum amount) payable 
     under this section; and
       ``(B) delineate the circumstances under which such payment 
     may be made, including requirements for requesting 
     reimbursement.
       ``(d)(1) In accordance with regulations prescribed by the 
     Secretary, the United States shall have the independent right 
     to recover any amount paid under this section if, and to the 
     extent that, a third party subsequently makes a payment for 
     the same emergency treatment.
       ``(2) Any amount paid by the United States to the veteran, 
     the veteran's personal representative, successor, dependents, 
     or survivors, or to any other person or organization paying 
     for such treatment shall constitute a lien in favor of the 
     United States against any recovery the payee subsequently 
     receives from a third party for the same treatment.
       ``(3) Any amount paid by the United States to the provider 
     that furnished the veteran's emergency treatment shall 
     constitute a lien against any subsequent amount the provider 
     receives from a third party for the same emergency treatment 
     for which the United States made payment.
       ``(4) The veteran or the veteran's personal representative, 
     successor, dependents, or survivors shall--
       ``(A) ensure that the Secretary is promptly notified of any 
     payment received from any third party for emergency treatment 
     furnished to the veteran;
       ``(B) immediately forward all documents relating to a 
     payment described in subparagraph (A);
       ``(C) cooperate with the Secretary in an investigation of a 
     payment described in subparagraph (A); and
       ``(D) assist the Secretary in enforcing the United States 
     right to recover any payment made under subsection (c)(3).
       ``(e) The Secretary may waive recovery of a payment made to 
     a veteran under this section

[[Page 30911]]

     that is otherwise required under subsection (d)(1) if the 
     Secretary determines that such waiver would be in the best 
     interest of the United States, as defined by regulations 
     prescribed by the Secretary.
       ``(f) For purposes of this section--
       ``(1) the term `health-plan contract' includes--
       ``(A) an insurance policy or contract, medical or hospital 
     service agreement, membership or subscription contract, or 
     similar arrangement, under which health services for 
     individuals are provided or the expenses of such services are 
     paid;
       ``(B) an insurance program described in section 1811 of the 
     Social Security Act (42 U.S.C. 1395c) or established by 
     section 1831 of that Act (42 U.S.C. 1395j);
       ``(C) a State plan for medical assistance approved under 
     title XIX of such Act (42 U.S.C. 1396 et seq.); and
       ``(D) a workers' compensation law or plan described in 
     section 1729(A)(2)(B) of this title;
       ``(2) the term `third party' means--
       ``(A) a Federal entity;
       ``(B) a State or political subdivision of a State;
       ``(C) an employer or an employer's insurance carrier; and
       ``(D) a person or entity obligated to provide, or pay the 
     expenses of, such emergency treatment; and
       ``(3) the term `emergency treatment' has the meaning given 
     such term in section 1725 of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 17 is amended by inserting after the 
     item relating to section 1725 the following:

``Sec. 1725A. Reimbursement for emergency treatment expenses for which 
              certain veterans remain personally liable.''.

  Mr. FRIST. Mr. President, I ask unanimous consent that the amendment 
at the desk be agreed to, the committee-reported amendment, as amended, 
be agreed to, the bill, as amended, be read a third time and passed, 
the motions to reconsider be laid upon the table, and that any 
statements relating to the bill be printed in the Record, all en bloc.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2694) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee-reported amendment in the nature of a substitute, as 
amended, was agreed to.
  The bill (S. 1182), as amended, was read the third time and passed.

                          ____________________




  WAIVER OF PASSPORT FEES FOR A RELATIVE OF A DECEASED MEMBER OF THE 
                              ARMED FORCES

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 279, S. 1184.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1184) to waive the passport fees for a relative 
     of a deceased member of the Armed Forces proceeding abroad to 
     visit the grave of such member or to attend a funeral or 
     memorial service for such member.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I further ask unanimous consent that the 
bill be read a third time and passed, the motion to reconsider be laid 
upon the table, with no intervening action or debate, and that any 
statements related to this measure be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1184) was read the third time and passed, as follows:

                                S. 1184

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

     SECTION 1. PASSPORT FEES.

       Section 1 of the Act of June 4, 1920 (41 Stat. 750, chapter 
     223; 22 U.S.C. 214) is amended in the third sentence by 
     striking ``or from a widow, child, parent, brother, or sister 
     of a deceased member of the Armed Forces proceeding abroad to 
     visit the grave of such member'' and inserting ``or from a 
     widow, widower, child, parent, grandparent, brother, or 
     sister of a deceased member of the Armed Forces proceeding 
     abroad to visit the grave of such member or to attend a 
     funeral or memorial service for such member''.

                          ____________________




 MAKING TECHNICAL CORRECTIONS IN AMENDMENTS MADE BY THE ENERGY POLICY 
                              ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4637, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4637) to make certain technical corrections in 
     amendments made by the Energy Policy Act of 2005.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read a third time and passed, the motion to reconsider be laid upon the 
table, and that any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4637) was read the third time and passed.

                          ____________________




 REAUTHORIZING THE TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BLOCK GRANT 
                                PROGRAM

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4635, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4635) to reauthorize the Temporary Assistance 
     for Needy Families block grant program through March 31, 
     2006, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read a third time and passed, the motion to reconsider be laid upon the 
table, and that any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4635) was read the third time and passed.

                          ____________________




   FEDERAL DEPOSIT INSURANCE REFORM CONFORMING AMENDMENTS ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4636, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4636) to enact the technical and conforming 
     amendments necessary to implement the Federal Deposit 
     Insurance Reform Act of 2005, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent that the bill be read a third time 
and passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4636) was read the third time and passed.

                          ____________________




        JUNIOR DUCK STAMP REAUTHORIZATION AMENDMENTS ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 3179, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 3179) to reauthorize and amend the Junior Duck 
     Stamp Conservation and Design Program Act of 1994.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent that the bill be read a third time 
and passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 3179) was read the third time and passed.

                          ____________________




         SECURING AIRCRAFT COCKPITS AGAINST LASERS ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate

[[Page 30912]]

proceed to the immediate consideration of H.R. 1400, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 1400) to amend title 18, United States Code, 
     to provide penalties for aiming laser pointers at airplanes, 
     and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent that the amendment at the desk be 
agreed to, the bill, as amended, be read a third time and passed, the 
motion to reconsider be laid upon the table, and any statements 
relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2695) was agreed to, as follows:

(Purpose: To provide exceptions for FAA research, Department of Defense 
        activities, and use of signaling devices in emergencies)

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. PROHIBITION AGAINST INTERFERING WITH FLIGHT CREWS 
                   THROUGH USE OF LASER POINTERS OR SIMILAR 
                   DEVICES.

       (a) In General.--Chapter 465 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 46508. Interference with flight crew vision

       ``(a) In General.--An individual who interferes with, or 
     attempts to interfere with, the ability of the flight crew of 
     an aircraft in flight to see, or otherwise to impair the safe 
     operation of an aircraft in flight, by illuminating the 
     aircraft with a laser pointer or similar device shall be 
     fined under title 18, imprisoned for not more than 5 years, 
     or both.
       ``(b) Exceptions.--Subsection (a) does not apply to the 
     illumination of aircraft by laser or other devices by--
       ``(1) an authorized individual in the conduct of research 
     and development or flight test operations conducted by an 
     aircraft manufacturer, the Federal Aviation Administration, 
     or any other person authorized by the Federal Aviation 
     Administration to conduct such research and development or 
     flight test operations;
       ``(2) members or elements of the Department of Defense 
     acting in an official capacity for the purpose of research, 
     development, operations, testing or training; or
       ``(3) by an individual using a laser emergency signaling 
     device to send an emergency distress signal.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     465 of title 49, United States Code, is amended by adding at 
     the end the following:

``46508. Interference with flight crew vision.''.

  The bill (H.R. 1400), as amended, was read the third time and passed.

                          ____________________




               PASSPORT SERVICES ENHANCEMENT ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4501, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4501) to amend the Passport Act of June 4, 
     1920, to authorize the Secretary of State to establish and 
     collect a surcharge to cover the costs of meeting the 
     increased demand for passports as a result of actions taken 
     to comply with section 7209(b) of the Intelligence Reform and 
     Terrorism Prevention Act of 2004.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent that the bill be read a third time 
and passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4501) was read the third time and passed.

                          ____________________




       TRAFFICKING VICTIMS PROTECTION REAUTHORIZATION ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 972, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 972) to authorize appropriations for fiscal 
     years 2006 and 2007 for the Trafficking Victims Protection 
     Act of 2000, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. LEAHY. Mr. President, I support reauthorization of the 
Trafficking Victims Protection Act of 2000. This legislation was 
championed by my dear friend Senator Paul Wellstone. I supported him 
then and when it was reauthorized in 2003, and I continue to support 
this effort. It is part of his extraordinary legacy. The people of 
Minnesota, the Senate, the Nation and the world suffered a great loss 
when we lost Paul Wellstone.
  The United States has long played a leading role in the international 
community in combating these heinous crimes, and furthered its efforts 
by enacting the Trafficking Victims Protection Act of 2000 and 
reauthorizing the law in 2003. This reauthorization confirms our 
commitment to effectively and successfully combating this horrific 
problem by combining tough law enforcement strategies with important 
safeguards and services for victims.
  Information about severe cases of human trafficking will continue to 
be provided in the annual State Department Country Report for each 
foreign country, in a continued effort to raise awareness about this 
issue. In addition, the Inter-Agency Task Force will continue to 
monitor trafficking by providing annual and interim reports on 
countries whose governments do not comply with the minimum standards. 
Efforts to establish initiatives to enhance economic opportunities for 
potential trafficking victims, including training and education 
programs, will also continue.
  I am especially pleased that this reauthorization package has been 
improved significantly. For the first time, the bill focuses not only 
on the important goal of preventing international human trafficking, 
but also on preventing the human trafficking that occurs within our own 
borders. Children here in the United States are at tremendous risk, 
especially those who are homeless or runaways, and they are 
particularly susceptible to being domestically trafficked for purposes 
of commercial sexual exploitation. I will not rest until this alarming 
trend is stopped.
  Over the last 30 years, I have worked with my colleagues to write and 
enact legislation aimed at protecting children and assisting victims. 
In the last Congress, Senator Hatch and I joined forces to introduce 
the PROTECT Act, which provided prosecutors and law enforcement with 
tools necessary to combat child pornography and human trafficking. The 
final legislation signed into law included a number of provisions I had 
also either authored or strongly supported, including: The National 
AMBER Alert Network Act; the Protecting Our Children Comes First Act, 
which reauthorized funding for the National Center for Missing and 
Exploited Children; and legislation to amend the Violence Against Women 
Act to provide transitional housing assistance grants for child victims 
of domestic violence.
  As a father and a grandfather, I cannot think of any more important 
responsibility than our responsibility to protect the most vulnerable 
amongst us--our children. I recognize that more needs to be done, and I 
will continue to explore new ways to combat human trafficking. Although 
our work is far from finished, the reauthorization of the Trafficking 
Victims Protection Act is another important step in the right 
direction.
  Mr. BROWNBACK. Mr. President, when our Nation recently celebrated the 
life of Rosa Parks, we were reminded that the walk to justice is a long 
one. Her life reminded us that justice starts with individuals standing 
up for what is right; but also that the struggle does not quickly end 
until we faithfully finish the task. Likewise, while we have made a 
good start in our efforts to address the global crime of human 
trafficking, the millions of victims who still suffer in slavery today 
are urgently looking to see if we will finish as well as we have 
started.
  I am pleased to say that the passage of the Trafficking Victims' 
Protection Reauthorization Act is one more step in that direction.

[[Page 30913]]

  Each year, it is estimated that at least 800,000 human beings are 
trafficked across national borders. They are bought and sold in the sex 
industry as prostitutes, or forced into domestic servitude. Recent 
estimates on the number of victims trafficked into the United States 
range from 20,000 to 40,000 per year. Most of these victims are women 
and young children who languish in brothels, being raped and abused by 
the traffickers and their clients. An estimated 27 million human beings 
worldwide suffer from some form of slavery and forced labor.
  The late Senator Paul Wellstone and his wife Sheila were passionately 
devoted to the issue of trafficking and to assisting countless victims. 
I will always remember their courageous fight in addressing modern-day 
slavery.
  Senator Wellstone and I teamed up in the Senate and were able to see 
the Trafficking Victims Protection Act of 2000 signed into law. Some 
called us strange bedfellows, but the wide political and religious 
spectrum that supported our efforts were a clear reminder that this is 
not a partisan issue.
  While Paul Wellstone is no longer here to carry the torch, I am 
pleased that other colleagues from across party lines have worked to 
make a difference by uniting under the common principle of freedom.
  ``The Victims of Trafficking Protection Act,'' Public Law 106-386, 
established a monitoring system and sanctions for countries that fail 
to take minimal efforts to combat trafficking. ``The PROTECT Act,'' 
Public Law 108-21, made it a crime for any person traveling abroad or 
entering into the United States to do so for sex tourism involving 
children. The Trafficking Victims Protection Reauthorization Act of 
2003, Public Law 108-193, established a Senior Policy Operating Group 
within the executive branch to coordinate sound policies between 
interagency departments. These measures have brought about both deep 
understanding and awareness and much needed laws to protect and combat 
against trafficking.
  I congratulate Congressman Chris Smith and my colleagues in the House 
for their tireless devotion to this issue and the passage of the 2005 
reauthorization legislation.
  The bill reauthorizes ongoing programs of the Department of State, 
U.S. Agency for International Development, Department of Justice, 
Department of Homeland Security, Department of Health and Human 
Services, and Department of Labor to combat trafficking in persons for 
fiscal years 2006 and 2007. Additionally, it authorizes new funds to 
the FBI for domestic and international investigations of acts of severe 
forms of trafficking in persons, as well as grants to State and local 
law enforcement for the investigation and prosecution of acts of severe 
forms of trafficking in persons involving domestic victims of 
trafficking.
  For the first time, we have authorized new programs to reduce the 
demand for commercial sex in the United States and prevent trafficking 
of U.S. citizens through the creation of grant programs for States and 
local law enforcement.
  As a result of last year's tsunami, the legislation incorporates 
child protection and trafficking prevention activities into USAID, 
State, and DOD post-conflict and post-natural disaster relief programs. 
In addition, given recent sex scandals within peacekeeping missions, 
this bill aims to strengthen efforts to combat sexual exploitation and 
trafficking in persons by peacekeepers.
  Finally, the bill authorizes studies on the linkage between 
trafficking and terrorism and trafficking and HIV/AIDS, as well as 
requires a worldwide report on steps taken to prevent and eliminate the 
abduction and enslavement of children for use as soldiers.
  I would also like to applaud the work of the Trafficking in Persons 
Office at the State Department. Through their sustained diplomatic 
efforts, countries around the world are signing into law provisions 
that prevent and punish human trafficking. Even in the United States, 
we have places like the Kansas Legislature working on legislation to 
combat human trafficking. It is a true testament to the strides that we 
have made in ending modern-day slavery and I hope other states and 
nations around the world will also consider taking action against this 
type of organized crime.
  I am driven by the conviction that every individual counts. This 
principle comprises the heart of the democratic form of government. It 
is based on a belief in the universal nature of human rights and a 
commitment to the dignity of every human life. Addressing modern-day 
slavery is driven by that very conviction.
  Rosa Parks' remarkable story tells us that the walk to freedom has to 
begin somewhere--but also that such a walk is a long one. And for the 
journey we take encouragement from the assurances of a Baptist pastor 
who went to jail with Rosa Parks. ``The moral arc of the universe is 
long,'' said Dr. King, ``but it bends toward justice.''
  Mr. BIDEN. Mr. President, in March of this year, I--along with 
Senator Lugar--introduced S. 559, the Protection of Vulnerable 
Populations During Humanitarian Emergencies Act of 2005, a bill to make 
vulnerable people, especially women and children, a priority of our 
foreign assistance programs. The Committee on Foreign Relations 
approved the bill in March as part of its omnibus authorization bill, 
S. 600. Unfortunately, S. 600 was pulled from floor consideration in 
April, and remains stalled.
  In the last few days, I have attempted to add the provisions of S. 
559 as an amendment to H.R. 972, the Trafficking Victims Protection 
Act, which was approved by the other body just last week. I support the 
trafficking bill, which addresses a serious problem in many parts of 
the world, including this country. I have been told, however, by my 
friends on the other side of the aisle that my amendment is not 
acceptable at this time. Several reasons have been given, foremost 
among them that it will unduly delay enactment of the trafficking bill, 
because the other body has essentially closed up shop for the year.
  But as my colleagues know we have another problem--victims of sexual 
exploitation and abuse who are not trafficked--such as those who are 
forced to seek sanctuary in refugee or internally displaced camps. The 
trafficking bill deals with people who are trafficked from those camps. 
But it does not address the need to protect those left behind.
  Last May, I visited a refugee camp in Chad where nearly 30,000 
refugees from Darfur had settled. I have seen and heard the problems 
they are facing first hand.
  Over the last 2 years, civilians have been targeted by Khartoum in 
one of the most horrific genocides the world has ever seen. Villages 
have been bombed, government-sponsored militia have destroyed crops and 
have fouled the water supply. They have burned homes, leaving mothers 
no choice but to flee for their lives and their children's lives.
  Civilians forced to flee during war find their way to camps, but 
instead of relative safety, what do they find? They find more 
suffering. The camps become virtual prisons. Women and girls are beaten 
and raped if they venture outside the camps for firewood.
  Sudan is not the only part of the world where such travesties are 
occurring. A report by a United Nations investigatory team released 
earlier this year states that a number of U.N. peacekeepers--U.N. 
peacekeepers, mind you--deployed to protect civilians from ethnic 
violence in the eastern Democratic Republic of Congo were sexually 
exploiting girls as young as 13 years old. The peacekeepers were asking 
these children for sex in exchange for small sums of money or food. And 
the report found that the abuse continued even while UN investigators 
were on the ground.
  Reading that report and others reinforced my belief that we cannot 
stand by any longer. More must be done, and S. 559 provides an 
important framework to do so.
  I firmly believe that the objective of my legislation is entirely 
consistent with the objectives of the trafficking bill--to protect 
vulnerable people, whether they are trafficked from one

[[Page 30914]]

country to another, or left behind in a refugee camp.
  It enhances the U.S. Government's ability to see that women and 
children are protected before, during, and after a complex humanitarian 
emergency. It directs the Secretary of State to designate a special 
coordinator for protection issues who will be charged with making sure 
our embassies are made aware of the warning signs that an emergency 
which may put the lives and safety of women and children at risk is 
imminent.
  It directs the coordinator to compile a watch list of such countries 
and regions so that the Agency for International Development can plan 
to meet potential need for protection programs. It prohibits U.S. 
funding for relief agencies that do not sign a code of conduct that 
outlaws improper exploitative relationships between aid workers and 
recipients.
  It calls upon the United States Executive Director of the 
International Bank of Reconstruction and Development to try to make 
sure World Bank demobilization, disarmament, and reintegration programs 
extend the same benefits provided to ex-combatants to the women and 
children who were associated with them.
  As it now stands, women and children who were used as cooks and 
porters and so-called ``wives,'' a euphemism for women who were 
kidnaped to serve as sexual slaves, may well not be given benefits 
through these programs--nothing with which to rebuild their lives 
despite the fact that they were not there by choice. Yet the very 
people who forced them into such conditions receive assistance without 
conditions.
  Finally, it amends the Foreign Assistance Act to authorize programs 
and activities specifically aimed at making vulnerable people--
especially women and children--who are affected by humanitarian 
emergencies safer from further exploitation and abuse.
  In recent days, some supporters of the trafficking bill have 
suggested my bill is about abortion. My response is this: my bill has 
nothing to do with abortion, but I am willing to make any changes that 
are necessary to make clear that abortion-related restrictions in 
foreign aid laws are not affected.
  I sincerely hope that people who have a legitimate sense of moral 
outrage about victims of trafficking will support my objectives and 
work with me to pass my bill early next year. The Senator from Kansas, 
Senator Brownback, who is one of the chief sponsors in the Senate of 
the trafficking bill, has pledged to work with me on approval of S. 
559. I am grateful to him for that commitment.
  In the meantime, I am pleased that today the Senate will approve the 
Trafficking in Persons legislation and it will proceed to the 
President. It is a very important bill and I commend the sponsors in 
both chambers for their good work.
  Mr. CORNYN. Mr. President, I rise today to speak about the 
Trafficking Victims Protection Reauthorization Act approved by the 
House on Thursday, December 15. This legislation increases the 
Government's ability to combat human trafficking and provides greater 
protective measures for victims of this deplorable crime. I thank my 
colleagues in the House for working on this legislation in an expedited 
fashion, and for their leadership in responding to these challenges.
  The Trafficking Victims Protection Reauthorization Act includes 
language from the End Demand for Sex Trafficking Act of 2005, a bill 
that I introduced earlier this year. That bill is important because it 
expresses Congress' commitment to reduce U.S. domestic demand for sex 
trafficking--which disproportionately victimizes women and children. It 
incorporates more stringent provisions to penalize human traffickers, 
and it enhances protective measures for the victims of trafficking 
crimes.
  This is accomplished by establishing Federal grants which could be 
used to focus on prosecution efforts. In addition, it strengthens and 
clarifies Federal criminal law, making it easier to prosecute those who 
transport persons who are then used for prostitution across State 
lines. And it includes an important oversight element: the Attorney 
General will be required to release an annual report on best practices 
for reducing the demand for unlawful commercial sex.
  The Thirteenth Amendment to the Constitution states: ``Neither 
slavery nor involuntary servitude . . . shall exist within the United 
States, or any place subject to their jurisdiction.'' This provision is 
unique to our Constitution. Many constitutional amendments protect 
individual rights against actions by Federal, State, and local 
governments. But the Thirteenth Amendment is unique because it provides 
that slavery and involuntary servitude cannot exist--neither in public 
nor private spheres.
  Yet, even to this day, men, women, and children are trafficked into 
the United States and coerced into lives ravaged by forced labor and 
sexual slavery.
  I join the administration in commending the House International 
Relations and Judiciary Committees who joined me to address this 
important issue. Indeed, this bill lays out the terrible facts: as many 
as 800,000 human beings are literally bought and sold worldwide into 
some form of slavery or involuntary servitude--approximately 80 percent 
are women and girls and up to 50 percent are children. Roughly 16,000 
of those human beings are brought into the United States each year, 
coerced into lives of forced labor or sexual servitude which, of 
course, is slavery.
  The fact is the current administration has responded to the call by 
dramatically increasing efforts devoted to providing substantially more 
resources to combat human trafficking. This has been done principally 
under the auspices of the civil rights division at the Justice 
Department. The Department has initiated more than three times the 
number of trafficking investigations, filed almost four times as many 
of these cases. and doubled the number of defendants convicted for 
these heinous crimes than in the prior 4-year period.
  Mr. President, I am pleased this important piece of legislation has 
passed, and look forward to working with my colleagues on this very 
important issue in the future.
  Mr. DURBIN. Mr. President, I rise to support passage of the 
Trafficking Victims Protection Reauthorization Act of 2005.
  This law will help continue the progress in fighting the insidious 
global practice of trafficking in human beings. It is estimated that 
nearly a million people are trafficked across international borders 
each year and pressed into labor or servitude by the use of force, 
fraud, or coercion. Human trafficking represents the commerce in human 
misery.
  Today we reauthorize a bill that was passed and signed into law in 
October 2000. In doing so, we honor one of the great champions of that 
bill--the late Senator Paul Wellstone. Senator Wellstone's commitment 
to combating human trafficking and other human rights abuses stands as 
one of his most enduring legacies. The Senate and the Nation miss his 
courage, passion, and leadership on this issue and so many others.
  The passage of today's bill is also a tribute to the tireless 
advocacy of one of my constituents, Oprah Winfrey. She has helped put a 
spotlight on the tragedy of human trafficking, and she has been a 
powerful and eloquent voice for those who are silenced by oppression.
  Human trafficking is most prevalent in foreign lands, but the U.S. 
Government has estimated that over 10,000 people are trafficked into 
the United States every year. In my own State of Illinois, for example, 
a Russian trafficker was prosecuted in 2002 for forcing several women 
from Latvia to work in Chicago-area strip clubs. The State of Illinois 
has risen to the challenge. This past summer, Illinois Governor Rod 
Blagojevich signed a law that provides more legal tools for State 
prosecutors and more protections for trafficking victims.
  The Trafficking Victims Protection Reauthorization Act of 2005 will 
help combat human trafficking throughout the Nation and around the 
globe. It extends the provisions given to Federal

[[Page 30915]]

law enforcement in 2000 to prosecute traffickers, protect victims, and 
prevent future abuses.
  And it will allow our government to continue holding other nations 
accountable for their efforts to combat human trafficking abroad. I 
have discussed this issue with Ambassador John Miller, a former member 
of Congress who is now the director of the State Department's Office to 
Monitor and Combat Trafficking in Persons. I am pleased that the number 
of countries to whom the State Department has given a failing grade--
so-called ``Tier 3'' countries--has dropped from 27 in 2001 to 14 in 
2005.
  Earlier this month, we commemorated the International Day for the 
Abolition of Slavery. On this occasion, U.N. Secretary-General Kofi 
Annan said:

       The world is now wrestling with a new form of slavery--
     trafficking in human beings, in which many vulnerable people 
     are virtually abandoned by legal and social systems into a 
     sordid realm of exploitation and abuse. People who 
     perpetrate, condone or facilitate slavery or slavery-like 
     practices must be held accountable by national and, if 
     necessary, international means. The international community 
     must also do more to combat poverty, social exclusion, 
     illiteracy, ignorance and discrimination, which increase 
     vulnerability and are part of the underlying context for this 
     scourge.

  By passing the Trafficking Victims Protection Reauthorization Act of 
2005, we are heeding the advice of Kofi Annan and carrying the torch of 
Paul Wellstone.
  Mrs. CLINTON. I rise today to speak in support of the reauthorization 
of the Trafficking Victims Protection Act.
  The scourge of trafficking in women and children was a priority for 
me as First Lady and continues to be a priority for me as a U.S. 
Senator. Since the United Nations Fourth World Conference on Women in 
1995, I have been working to raise awareness of the heinous practice of 
buying and selling women and children like commodities. I have seen the 
devastation that it causes, and the lives it ruins. I have met with the 
families from Eastern and Central Europe, who, with tears in their 
eyes, pleaded with me to help them find lost ones who had been stolen 
from them, and I have met with the victims, including a 12-year-old 
girl in Thailand who was dying of AIDS after being sold twice by her 
family. This barbaric practice has caused far too many to exist in a 
perpetual state of fear and vulnerability, and we must do everything in 
our power to bring the scourge of trafficking out of the shadows and to 
the attention of the world.
  I am proud to say that the United States has, for the past decade, 
been the leader in trying to persuade the rest of the world to 
eradicate this abhorrent practice. As the Clinton administration 
increased the anti-trafficking activities of our Government through 
programs at the State Department and the Department of Justice, 
Congress was developing legislation to eradicate trafficking. We worked 
with the late Senator Wellstone, his Republican cosponsor, Senator 
Brownback, and Congressman Chris Smith and former Congressman Sam 
Gejdenson in the House, to introduce the first comprehensive anti-
trafficking bill in Congress. This culminated in the passage of the 
Victims of Trafficking and Violence Protection Act of 2000. I believed 
then, and I believe now, that this is one of the Clinton 
administration's greatest achievements and one of the most important 
parts of Senator Wellstone's legacy. That law has meant the difference 
between freedom and enslavement for unknown numbers of potential 
trafficking victims, and this reauthorization provides us with the 
opportunity to strengthen its ability to help those who have been 
trafficked, and I would like to thank Senator Brownback and 
Representative Smith, my colleagues on the Helsinki Commission, for 
their continued commitment to this act since its initial passage.
  I am proud to see that this reauthorization enhances the 3 P's 
strategy--prevention of trafficking, prosecution of those that engage 
in these acts, and protection of the vulnerable individuals who have 
been trafficked--that we developed in the Clinton administration. It 
gives the Justice Department the authority to pursue extraterritorial 
prosecutions of Federal employees or those accompanying them if they 
engage in trafficking activities. It encourages the prevention of 
trafficking by requiring organizations or contractors engaged in U.S.-
supported peacekeeping efforts to have antitraf-
ficking policies in place. And it will protect those who have been 
trafficked overseas by increasing funding for programs like residential 
treatment facilities.
  But there is still so much work to be done. Although reliable 
statistics are difficult to find, we know that 800,000 individuals--the 
vast majority of whom are women and children--are trafficked from one 
country to another every year, with 15,000 being trafficked to the 
United States. The FBI estimates that trafficking generates $9.5 
billion annually for organized crime syndicates around the world.
  I am deeply concerned about the growing domestic commercial sex 
trade, and I believe that we need to increase funding and target 
efforts to end all forms of exploitation. Any expansion of our focus 
must not dilute our commitment to eradicating human trafficking in all 
its forms in the United States, nor detract from the progress we have 
made in increasing prosecutions and working with law enforcement 
agencies. We must ensure that our Government has all the resources it 
needs to make inroads against these awful acts on our own soil.
  In the fight against trafficking in persons, patience simply is not 
an option. I look forward to continuing to work with my colleagues to 
end this barbaric practice in both the United States and around the 
world, because this is not about politics, but about what we all share: 
universal freedom and universal human rights.
  Mr. FRIST. I ask unanimous consent that the bill be read a third time 
and passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 972) was read the third time and passed.

                          ____________________




      TO AMEND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4579, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4579) to amend title I of the Employee 
     Retirement Income Security Act of 1974, title XXVII of the 
     Public Health Service Act, and the Internal Revenue Code of 
     1986 to extend by one year provisions requiring parity in the 
     application of certain limits to mental health benefits.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. I ask unanimous consent that the bill be read a third time 
and passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4579) was read the third time and passed.

                          ____________________




           TORTURE VICTIMS RELIEF REAUTHORIZATION ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 2017, which was received 
from House.
  The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 2017) to amend the Torture Victims Relief Act 
     of 1998 to authorize appropriations to provide assistance for 
     domestic and foreign programs and centers for the treatment 
     of victims of torture, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read the third time and passed, the motion to reconsider be laid upon 
the

[[Page 30916]]

 table, and that any statements relating to the bill be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 2017) was read the third time and passed.

                          ____________________




             SECOND HIGHER EDUCATION EXTENSION ACT OF 2005

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of H.R. 4525, which was received 
from the House.
  The PRESIDING OFFICER. The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4525) to temporarily extend the programs under 
     the Higher Education Act of 1965, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. FRIST. Mr. President, I ask unanimous consent that the bill be 
read the third time and passed, the motion to reconsider be laid upon 
the table, and that any statements relating to the bill be printed in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4525) was read the third time and passed.

                          ____________________




             UNANIMOUS CONSENT AGREEMENT--H. CON. RES. 326

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to consideration of H. Con. Res. 326, the adjournment 
resolution; provided that the concurrent resolution be agreed to, and 
the motion to reconsider be laid upon the table. I further ask 
unanimous consent that action on the resolution be vitiated if the 
House does not adopt S. Con. Res. 74.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolution (H. Con. Res. 326) was agreed to, as 
follows:

                            H. Con. Res. 326

       Resolved by the House of Representatives (the Senate 
     concurring), That when the House adjourns on any legislative 
     day from Sunday, December 18, 2005, through Saturday, 
     December 24, 2005, or from Monday, December 26, 2005, through 
     Saturday, December 31, 2005, on a motion offered pursuant to 
     this concurrent resolution by its Majority Leader or his 
     designee, it stand adjourned sine die or until the time of 
     any reassembly pursuant to section 3 of this concurrent 
     resolution; and when the Senate adjourns on any day from 
     Monday, December 19, 2005, through Saturday, December 24, 
     2005, or from Monday, December 26, 2005, through Saturday, 
     December 31, 2005, on a motion offered pursuant to this 
     concurrent resolution by its Majority Leader or his designee, 
     it stand adjourned sine die or until the time of any 
     reassembly pursuant to section 3 of this concurrent 
     resolution.
       Sec. 2. When the House adjourns on any legislative day of 
     the second session of the One Hundred Ninth Congress from 
     Tuesday, January 3, 2006, through Saturday, January 28, 2006, 
     on a motion offered pursuant to this concurrent resolution by 
     its Majority Leader or his designee, it shall stand adjourned 
     until noon on Tuesday, January 31, 2006, or until the time of 
     any reassembly pursuant to section 3 of this concurrent 
     resolution, whichever occurs first; when the Senate recesses 
     or adjourns on any day of the second session of the One 
     Hundred Ninth Congress from Tuesday, January 3, 2006, through 
     Monday, January 16, 2006, on a motion offered pursuant to 
     this concurrent resolution by its Majority Leader or his 
     designee, it shall stand recessed or adjourned until noon on 
     Wednesday, January 18, 2006, or until such other time on that 
     day as may be specified by its Majority Leader or his 
     designee in the motion to recess or adjourn, or until the 
     time of any reassembly pursuant to section 3 of this 
     concurrent resolution, whichever occurs first; and when the 
     Senate recesses or adjourns on any day from Friday, January 
     20, 2006, through Saturday, January 28, 2006, on a motion 
     offered pursuant to this concurrent resolution by its 
     Majority Leader or his designee, it shall stand recessed or 
     adjourned until noon on Tuesday, January 31, 2006, or until 
     such other time on that day as may be specified by its 
     Majority Leader or his designee in the motion to recess or 
     adjourn, or until the time of any reassembly pursuant to 
     section 3 of this concurrent resolution, whichever occurs 
     first.
       Sec. 3. The Speaker of the House and the Majority Leader of 
     the Senate, or their respective designees, acting jointly 
     after consultation with the Minority Leader of the House and 
     the Minority Leader of the Senate, shall notify the Members 
     of the House and the Senate, respectively, to reassemble at 
     such place and time as they may designate if, in their 
     opinion, the public interest shall warrant it.

                          ____________________




            CONDITIONAL ADJOURNMENT OF THE HOUSE AND SENATE

  Mr. FRIST. Mr. President, I ask unanimous consent that when the 
Senate completes its business today, it stand in adjournment sine die 
under the provisions of H. Con. Res. 326, and when the Senate 
reconvenes at 12 noon on January 3, it be for a pro forma session only, 
and that no business be in order and the Senate then automatically 
adjourn until 10 a.m. on January 18 as under the provisions of that 
resolution, or until 8 p.m. on December 22 if the House does not adopt 
S. Con. Res. 74. I further ask that on whichever day the Senate 
reconvenes, following the prayer and the pledge, the morning hour be 
deemed to have expired, the Journal of the proceedings be approved to 
date, and the time for the two leaders be reserved, and then the Senate 
proceed to a period of morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________




                      THANKING THE STAFF AND PAGES

  Mr. FRIST. Mr. President, as we bring this first session of the 109th 
Congress to a close, I once again thank my colleagues, the staff, the 
pages, and everyone who contributes so much to our work in this 
Chamber.
  I want to give a special thanks to the few pages we have remaining 
this evening. Most of them have gone back home to their families, and 
we have a few volunteers who stayed behind. They are instrumental in 
allowing us to carry out our work each day. It is very rare that we 
actually say thank you. I want to take this opportunity to say thank 
you for volunteering to be with us over what has been a pretty long 
last couple of days. So I thank Rafi Bortnick, Katie Rember, and Dan 
Tinsley.
  I wish everyone a Merry Christmas and a happy and healthy holiday 
season. I hope that everyone does get some rest and spends some time 
with family and friends and neighbors and others in their communities 
and returns back here in January ready to roll up your sleeves and 
continue right where we left off.

                          ____________________




         ADJOURNMENT UNTIL DECEMBER 22, 2005 OR JANUARY 3, 2006

  Mr. FRIST. Mr. President, if there is no further business to come 
before the Senate, I ask unanimous consent that the Senate stand in 
adjournment under the previous order.
  There being no objection, the Senate, at 12:13 a.m., adjourned until 
Thursday, December 22, 2005, at 8 p.m. or Tuesday, January 3, 2006.

                          ____________________




                              NOMINATIONS 

  Executive nominations received by the Senate December 21, 2005: 


                         DEPARTMENT OF ENERGY 

       ALEXANDER A. KARSNER, OF VIRGINIA, TO BE AN ASSISTANT 
     SECRETARY OF ENERGY (ENERGY EFFICIENCY AND RENEWABLE ENERGY), 
     VICE DAVID GARMAN. 


                      TENNESSEE VALLEY AUTHORITY 

       SUSAN RICHARDSON WILLIAMS, OF TENNESSEE, TO BE A MEMBER OF 
     THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY FOR 
     A TERM EXPIRING MAY 18, 2007. (NEW POSITION) 
       DONALD R. DEPRIEST, OF MISSISSIPPI, TO BE A MEMBER OF THE 
     BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY FOR A 
     TERM EXPIRING MAY 18, 2009. (NEW POSITION) 
       HOWARD A. THRAILKILL, OF ALABAMA, TO BE A MEMBER OF THE 
     BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY FOR THE 
     TERM PRESCRIBED BY LAW, VICE GLENN L. MCCULLOUGH, JR., 
     RESIGNED. 


            CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 

       VINCE J. JUARISTI, OF VIRGINIA, TO BE A MEMBER OF THE BOARD 
     OF DIRECTORS OF THE CORPORATION FOR NATIONAL AND COMMUNITY 
     SERVICE FOR A TERM EXPIRING FEBRUARY 8, 2009, VICE LESLIE 
     LENKOWSKY, TERM EXPIRED. 


                              IN THE NAVY 

       THE FOLLOWING NAMED OFFICERS FOR TEMPORARY APPOINTMENT TO 
     THE GRADE INDICATED IN THE UNITED STATES NAVY UNDER TITLE 10, 
     U.S.C., SECTION 5721: 

                      To be lieutenant commander 

CHRISTOPHER P. BOBB, 0000 
BRUCE J. CICCONE, JR., 0000 
CHAD J. CONEWAY, 0000 
DAVID COX, 0000 
DENNIS M. DAVIS, 0000 
RICHARD A. DEHAVEN, 0000 
MICHAEL J. DONIGER, 0000 
DAVID L. EDGERTON, 0000 
RANDALL I. FEHER, 0000 
JEFFREY L. HEAMES, 0000 
BRIAN P. HOGAN, 0000 
JONATHAN S. HOLMGREN, SR., 0000 
NOMER F. JAVIER, 0000 

[[Page 30917]]

MICHAEL D. JOHNSON, 0000 
CHARLES O. JONES, 0000 
DAVID R. KINNEY, 0000 
BRIAN S. ONEILL, 0000 
JEFFREY D. ORBERSON, 0000 
VINCENT J. WOOD, 0000 

                          ____________________




                             CONFIRMATIONS

  Executive nominations confirmed by the Senate, Wednesday, December 
21, 2005:


                       DEPARTMENT OF THE INTERIOR

       R. THOMAS WEIMER, OF COLORADO, TO BE AN ASSISTANT SECRETARY 
     OF THE INTERIOR.


                DEPARTMENT OF HEALTH AND HUMAN SERVICES

       VINCENT J. VENTIMIGLIA, JR., OF MARYLAND, TO BE AN 
     ASSISTANT SECRETARY OF HEALTH AND HUMAN SERVICES.
       THE ABOVE NOMINATION WAS APPROVED SUBJECT TO THE NOMINEE'S 
     COMMITMENT TO RESPOND TO REQUESTS TO APPEAR AND TESTIFY 
     BEFORE ANY DULY CONSTITUTED COMMITTEE OF THE SENATE.


                              IN THE ARMY

       THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT IN THE UNITED 
     STATES ARMY TO THE GRADE INDICATED UNDER TITLE 10, U.S.C., 
     SECTION 624:

                        To be brigadier general

COL. DONALD M. BRADSHAW


                             THE JUDICIARY

       JOSEPH FRANK BIANCO, OF NEW YORK, TO BE UNITED STATES 
     DISTRICT JUDGE FOR THE EASTERN DISTRICT OF NEW YORK.
       TIMOTHY MARK BURGESS, OF ALASKA, TO BE UNITED STATES 
     DISTRICT JUDGE FOR THE DISTRICT OF ALASKA.
       GREGORY F. VAN TATENHOVE, OF KENTUCKY, TO BE UNITED STATES 
     DISTRICT JUDGE FOR THE EASTERN DISTRICT OF KENTUCKY.
       ERIC NICHOLAS VITALIANO, OF NEW YORK, TO BE UNITED STATES 
     DISTRICT JUDGE FOR THE EASTERN DISTRICT OF NEW YORK.
       KRISTI DUBOSE, OF ALABAMA, TO BE UNITED STATES DISTRICT 
     JUDGE FOR THE SOUTHERN DISTRICT OF ALABAMA.
       W. KEITH WATKINS, OF ALABAMA, TO BE UNITED STATES DISTRICT 
     JUDGE FOR THE MIDDLE DISTRICT OF ALABAMA.
       VIRGINIA MARY KENDALL, OF ILLINOIS, TO BE UNITED STATES 
     DISTRICT JUDGE FOR THE NORTHERN DISTRICT OF ILLINOIS.


                    DEPARTMENT OF HOMELAND SECURITY

       EMILIO T. GONZALEZ, OF FLORIDA, TO BE DIRECTOR OF THE 
     BUREAU OF CITIZENSHIP AND IMMIGRATION SERVICES, DEPARTMENT OF 
     HOMELAND SECURITY.


                   FEDERAL COMMUNICATIONS COMMISSION

       MICHAEL JOSEPH COPPS, OF VIRGINIA, TO BE A MEMBER OF THE 
     FEDERAL COMMUNICATIONS COMMISSION FOR A TERM OF FIVE YEARS 
     FROM JULY 1, 2005.
       DEBORAH TAYLOR TATE, OF TENNESSEE, TO BE A MEMBER OF THE 
     FEDERAL COMMUNICATIONS COMMISSION FOR THE REMAINDER OF THE 
     TERM EXPIRING JUNE 30, 2007.


                            IN THE AIR FORCE

       THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT IN THE UNITED 
     STATES AIR FORCE TO THE GRADE INDICATED UNDER TITLE 10, 
     U.S.C., SECTION 624:

                          To be major general

BRIGADIER GENERAL PHILIP M. BREEDLOVE


                              IN THE ARMY

       THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED 
     STATES ARMY TO THE GRADE INDICATED WHILE ASSIGNED TO A 
     POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, 
     U.S.C., SECTION 601:

                        To be lieutenant general

MAJ. GEN. GARY D. SPEER

       THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED 
     STATES ARMY TO THE GRADE INDICATED WHILE ASSIGNED TO A 
     POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, 
     U.S.C., SECTION 601:

                        To be lieutenant general

LT. GEN. CHARLES C. CAMPBELL


                          IN THE MARINE CORPS

       THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED 
     STATES MARINE CORPS RESERVE TO THE GRADE INDICATED UNDER 
     TITLE 10, U.S.C., SECTION 12203:

                          To be major general

BRIG. GEN. ANDREW B. DAVIS


                           IN THE COAST GUARD

       COAST GUARD NOMINATION OF CONNIE M. ROOKE TO BE LIEUTENANT 
     COMMANDER.
       COAST GUARD NOMINATION OF JOSEPH T. BENIN TO BE LIEUTENANT.


                            IN THE AIR FORCE

       AIR FORCE NOMINATIONS BEGINNING WITH JOLENE A. AINSWORTH 
     AND ENDING WITH DAVID C. ZIMMERMAN, WHICH NOMINATIONS WERE 
     RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL 
     RECORD ON JULY 28, 2005.
       AIR FORCE NOMINATIONS BEGINNING WITH CRAIG L. ADAMS AND 
     ENDING WITH MATTHEW C. WYATT, WHICH NOMINATIONS WERE RECEIVED 
     BY THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON 
     OCTOBER 17, 2005.
       AIR FORCE NOMINATIONS BEGINNING WITH JAY O. AANRUD AND 
     ENDING WITH SCOTT C. ZIPPWALD, WHICH NOMINATIONS WERE 
     RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL 
     RECORD ON OCTOBER 17, 2005.
       AIR FORCE NOMINATION OF MARTIN E. KEILLOR TO BE LIEUTENANT 
     COLONEL.
       AIR FORCE NOMINATIONS BEGINNING WITH ROBERT W. DESVERREAUZ 
     AND ENDING WITH CHETAN U. KHAROD, WHICH NOMINATIONS WERE 
     RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL 
     RECORD ON DECEMBER 14, 2005.
       AIR FORCE NOMINATION OF JULIE S. MILLER TO BE MAJOR.
       AIR FORCE NOMINATION OF KARA A. GORMONT TO BE MAJOR.


                              IN THE ARMY

       ARMY NOMINATIONS BEGINNING WITH DEIBY ACEVEDO AND ENDING 
     WITH DAVID R. ZYSK, WHICH NOMINATIONS WERE RECEIVED BY THE 
     SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON DECEMBER 
     13, 2005.
       ARMY NOMINATIONS BEGINNING WITH HOLTORF R. ALONSO AND 
     ENDING WITH RICHARD M. ZYGADLO, WHICH NOMINATIONS WERE 
     RECEIVED BY THE SENATE AND APPEARED IN THE CONGRESSIONAL 
     RECORD ON DECEMBER 13, 2005.
       ARMY NOMINATIONS BEGINNING WITH THOMAS E. AYRES AND ENDING 
     WITH PETER C. ZOLPER, WHICH NOMINATIONS WERE RECEIVED BY THE 
     SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON DECEMBER 
     13, 2005.
       ARMY NOMINATION OF CINDY R. JEBB TO BE COLONEL.
       ARMY NOMINATION OF RICHARD L. CHAVEZ TO BE COLONEL.
       ARMY NOMINATIONS BEGINNING WITH SAMUEL CASSCELLS AND ENDING 
     WITH SLOBODAN JAZAREVIC, WHICH NOMINATIONS WERE RECEIVED BY 
     THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON 
     DECEMBER 14, 2005.
       ARMY NOMINATIONS BEGINNING WITH JOSEPH J. IMPALLARIA AND 
     ENDING WITH ARTHUR E. LEES, WHICH NOMINATIONS WERE RECEIVED 
     BY THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON 
     DECEMBER 14, 2005.


                          IN THE MARINE CORPS

       MARINE CORPS NOMINATION OF MICHELLE A. RAKERS TO BE 
     CAPTAIN.


                              IN THE NAVY

       NAVY NOMINATIONS BEGINNING WITH TONY C. BAKER AND ENDING 
     WITH JAMES J. VOPELIUS, WHICH NOMINATIONS WERE RECEIVED BY 
     THE SENATE AND APPEARED IN THE CONGRESSIONAL RECORD ON 
     DECEMBER 13, 2005.
       NAVY NOMINATION OF LLOYD G. LECAIN TO BE CAPTAIN.

                          ____________________




                              WITHDRAWALS

  Executive message transmitted by the President to the Senate on 
December 21, 2005 withdrawing from further Senate consideration the 
following nominations:

       HOWARD A. THRAILKILL, OF ALABAMA, TO BE A MEMBER OF THE 
     BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY FOR A 
     TERM EXPIRING MAY 18, 2007, WHICH WAS SENT TO THE SENATE ON 
     NOVEMBER 17, 2005.
       SUSAN RICHARDSON WILLIAMS, OF TENNESSEE, TO BE A MEMBER OF 
     THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY FOR 
     THE TERM PRESCRIBED BY LAW, WHICH WAS SENT TO THE SENATE ON 
     NOVEMBER 17, 2005.
     
     
     


[[Page 30918]]

                          EXTENSIONS OF REMARKS
                          ____________________


                       SENATE COMMITTEE MEETINGS

  Title IV of Senate Resolution 4, agreed to by the Senate on February 
4, 1977, calls for establishment of a system for a computerized 
schedule of all meetings and hearings of Senate committees, 
subcommittees, joint committees, and committees of conference. This 
title requires all such committees to notify the Office of the Senate 
Daily Digest--designated by the Rules Committee--of the time, place, 
and purpose of the meetings, when scheduled, and any cancellations or 
changes in the meetings as they occur.
  As an additional procedure along with the computerization of this 
information, the Office of the Senate Daily Digest will prepare this 
information for printing in the Extensions of Remarks section of the 
Congressional Record on Monday and Wednesday of each week.
  Meetings scheduled for Thursday, December 22, 2005 may be found in 
the Daily Digest of today's Record.

                           MEETINGS SCHEDULED

                               January 9
     12 noon
       Judiciary
         To hold hearings to examine the nomination of Samuel A. 
           Alito, Jr., of New Jersey, to be an Associate Justice 
           of the Supreme Court of the United States.
                                                            SH-216

                               February 9
     10 a.m.
       Commerce, Science, and Transportation
         To hold an oversight hearing to examine commercial 
           aviation security, focusing on Transportation Security 
           Administration's aviation passenger screening programs, 
           Secure Flight and Registered Traveler, to discuss 
           issues that have prevented these programs from being 
           launched, and to determine their future.
                                                            SD-562
     2:30 p.m.
       Commerce, Science, and Transportation
         To continue oversight hearings to examine commercial 
           aviation security, focusing on physical screening of 
           airline passengers, including issues pertaining to 
           Transportation Security Administration's Federal 
           passenger screener force, TSA procurement policy, air 
           cargo screening, and the deployment of explosive 
           detection technology.
                                                            SD-562