[Congressional Record (Bound Edition), Volume 151 (2005), Part 3]
[Senate]
[Pages 3597-3620]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. FEINGOLD:
  S. 534. A bill to amend the Internal Revenue Code of 1986 to repeal 
the percentage depletion allowance for certain hard rock mines, and for 
other purposes; to the Committee on Finance.
  Mr. FEINGOLD. Mr. President, today I am reintroducing legislation to 
eliminate from the Federal tax code percentage depletion allowances for 
hardrock minerals mined on Federal public lands. I thank Senator 
Cantwell for joining me as a cosponsor on this legislation.

[[Page 3598]]

  President Clinton proposed the elimination of the percentage 
depletion allowance on public lands in his fiscal year 2001 budget. 
President Clinton's fiscal year 2001 budget estimated that, under this 
legislation, income to the Federal treasury from the elimination of 
percentage depletion allowances for hardrock mining on public lands 
would total $487 million over 5 years and $1.20 billion over 10 years. 
The Joint Committee on Taxation estimated that it would save $410 
million over 5 years and $823 million over 10 years. Percentage 
depletion allowances are contained in the tax code for extracted fuel, 
minerals, metal and other mined commodities. These allowances have a 
combined value, according to estimates by the Joint Committee on 
Taxation, of $4.8 billion.
  These percentage depletion allowances were initiated by the 
Corporation Excise Act of 1909. That's right, these allowances were 
initiated nearly one hundred years ago. Provisions for a depletion 
allowance based on the value of the mine were made under a 1912 
Treasury Department regulation, but difficulty in applying this 
accounting principle to mineral production led to the initial 
codification of the mineral depletion allowance in the Tariff Act of 
1913. The Revenue Act of 1926 established percentage depletion much in 
its present form for oil and gas. The percentage depletion allowance 
was then extended to metal mines, coal, and other hardrock minerals by 
the Revenue Act of 1932, and has been adjusted several times since.
  Percentage depletion allowances were historically placed in the tax 
code to reduce the effective tax rates in the mineral and extraction 
industries far below tax rates on other industries, providing 
incentives to increase investment, exploration and output. Percentage 
depletion also makes it possible, however, to recover many times the 
amount of the original investment.
  There are two methods of calculating a deduction to allow a firm to 
recover the costs of its capital investment: cost depletion and 
percentage depletion. Cost depletion allows for the recovery of the 
actual capital investment--the costs of discovering, purchasing, and 
developing a mineral reserve--over the period during which the reserve 
produces income. Under the cost depletion method, the total deductions 
cannot exceed the original capital investment.
  Under percentage depletion, however, the deduction for recovery of a 
company's investment is a fixed percentage of ``gross income,'' namely, 
sales revenue from the sale of the mineral. Under this method, total 
deductions typically exceed the capital that the company invested.
  The rates for percentage depletion are quite significant. Section 613 
of the U.S. Code contains depletion allowances for more than 70 metals 
and minerals, at rates ranging from 10 to 22 percent.
  In addition to repealing the percentage depletion allowances for 
minerals mined on public lands, my bill would also create a new fund, 
called the Abandoned Mine Reclamation Fund. One-fourth of the revenue 
raised by the bill, or approximately $120 million, would be deposited 
into an interest-bearing fund in the Treasury to be used to clean up 
abandoned hardrock mines in States that are subject to the 1872 Mining 
Law. The Mineral Policy Center estimates that there are 557,650 
abandoned hardrock mine sites nationwide and the cost of clearing them 
up will range from $32.7 billion to $71.5 billion.
  There are currently no comprehensive Federal or State programs to 
address the need to clean up old mine sites. Reclaiming these sites 
requires the enactment of a program with explicit authority to clean up 
abandoned mine sites and the resources to do it. My legislation is a 
first step toward providing the needed authority and resources.
  In today's budget climate, we are faced with the question of who 
should bear the costs of exploration, development, and production of 
natural resources: all taxpayers, or the users and producers of the 
resource? For more than a century, the mining industry has been paying 
next to nothing for the privilege of extracting minerals from public 
lands and then abandoning its mines. Now those mines are adding to the 
Nation's environmental and financial burdens. We face serious budget 
choices this fiscal year, and one of those choices is whether to 
continue the special tax breaks provided to the mining industry.
  The measure I am introducing is straightforward. It eliminates the 
percentage depletion allowance for hardrock minerals mined on public 
lands while continuing to allow companies to recover reasonable cost 
depletion.
  Though at one time there may have been an appropriate role for a 
government-driven incentive for enhanced mineral production, there is 
now sufficient reason to adopt a more reasonable depletion allowance 
that is consistent with depreciation rates given to other businesses. 
This corporate subsidy is simply not justified.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 534

       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 ``Elimination of Double 
     Subsidies for the Hardrock Mining Industry Act of 2005''.

     SEC. 2. REPEAL OF PERCENTAGE DEPLETION ALLOWANCE FOR CERTAIN 
                   HARDROCK MINES.

       (a) In General.--Section 613(a) of the Internal Revenue 
     Code of 1986 (relating to percentage depletion) is amended by 
     inserting ``(other than hardrock mines located on lands 
     subject to the general mining laws or on land patented under 
     the general mining laws)'' after ``In the case of the 
     mines''.
       (b) General Mining Laws Defined.--Section 613 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following:
       ``(f) General Mining Laws.--For purposes of subsection (a), 
     the term `general mining laws' means those Acts which 
     generally comprise chapters 2, 12A, and 16, and sections 161 
     and 162 of title 30 of the United States Code.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2004.

     SEC. 3. ABANDONED MINE RECLAMATION FUND.

       (a) In General.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to establishment of trust 
     funds) is amended by adding at the end the following:

     ``SEC. 9511. ABANDONED MINE RECLAMATION FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Abandoned Mine Reclamation Trust Fund' (in this section 
     referred to as `Trust Fund'), consisting of such amounts as 
     may be appropriated or credited to the Trust Fund as provided 
     in this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--There are hereby 
     appropriated to the Trust Fund amounts equivalent to 25 
     percent of the additional revenues received in the Treasury 
     by reason of the amendments made by section 2 of the 
     Elimination of Double Subsidies for the Hardrock Mining 
     Industry Act of 2005.
       ``(c) Expenditures From Trust Fund.--
       ``(1) In general.--Amounts in the Trust Fund shall be 
     available, as provided in appropriation Acts, to the 
     Secretary of the Interior for--
       ``(A) the reclamation and restoration of lands and water 
     resources described in paragraph (2) adversely affected by 
     mineral (other than coal and fluid minerals) and mineral 
     material mining, including--
       ``(i) reclamation and restoration of abandoned surface mine 
     areas and abandoned milling and processing areas,
       ``(ii) sealing, filling, and grading abandoned deep mine 
     entries,
       ``(iii) planting on lands adversely affected by mining to 
     prevent erosion and sedimentation,
       ``(iv) prevention, abatement, treatment, and control of 
     water pollution created by abandoned mine drainage, and
       ``(v) control of surface subsidence due to abandoned deep 
     mines, and
       ``(B) the expenses necessary to accomplish the purposes of 
     this section.
       ``(2) Lands and water resources.--
       ``(A) In general.--The lands and water resources described 
     in this paragraph are lands within States that have land and 
     water resources subject to the general mining laws or lands 
     patented under the general mining laws--
       ``(i) which were mined or processed for minerals and 
     mineral materials or which were affected by such mining or 
     processing, and abandoned or left in an inadequate 
     reclamation status before the date of the enactment of this 
     section,
       ``(ii) for which the Secretary of the Interior makes a 
     determination that there is no

[[Page 3599]]

     continuing reclamation responsibility under State or Federal 
     law, and
       ``(iii) for which it can be established to the satisfaction 
     of the Secretary of the Interior that such lands or resources 
     do not contain minerals which could economically be extracted 
     through remining of such lands or resources.
       ``(B) Certain sites and areas excluded.--The lands and 
     water resources described in this paragraph shall not include 
     sites and areas which are designated for remedial action 
     under the Uranium Mill Tailings Radiation Control Act of 1978 
     (42 U.S.C. 7901 et seq.) or which are listed for remedial 
     action under the Comprehensive Environmental Response 
     Compensation and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.).
       ``(3) General mining laws.--For purposes of paragraph (2), 
     the term `general mining laws' means those Acts which 
     generally comprise chapters 2, 12A, and 16, and sections 161 
     and 162 of title 30 of the United States Code.''.
       (b) Conforming Amendment.--The table of sections for 
     subchapter A of chapter 98 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following:

``Sec. 9511. Abandoned Mined Reclamation Trust Fund.''.
                                 ______
                                 
      By Mr. INOUYE (for himself and Ms. Cantwell):
  S. 535. A bill to establish grant programs for the development of 
telecommunications capacities in Indian country; to the Committee on 
Indian Affairs.
  Mr. INOUYE. Mr. President, I rise today to introduce the Native 
American Connectivity Act. Senator Cantwell joins me in sponsoring this 
measure.
  Over 70 years ago, we passed the Communications Act of 1934 and 
committed ``to make available . . . to all the people of the United 
States . . . a rapid, efficient, Nationwide, and world-wide wire and 
radio communication service with adequate facilities at reasonable 
charges. . . .'' It is now 2005, and the Federal Government has yet to 
fulfill this commitment in Indian country.
  Relying on 2000 Census data, the Federal Communications Commission, 
FCC, estimates that, on average, only 67.9 percent of Indian households 
located on Indian reservations have telephone service compared to a 
national average of 95 percent. Even more alarming is that household 
telephone rates for some tribes, such as the Kickapoo Reservation in 
Texas and the Navajo Nation, are as low as 33 percent and 38 percent, 
respectively. Available data also shows that many Native Americans lack 
access not only to basic telephone service but also to advanced 
telecommunications services and information technology.
  As a result, many Native Americans lack access to emergency 911 
services, are unable to secure employment because they do not have 
telephone service or Internet, and cannot otherwise participate in many 
daily activities that non-Native Americans take for granted. Moreover, 
the lack of telecommunications infrastructure impedes the economic 
development of tribal communities, educational opportunities, language 
retention and preservation, and access to adequate health care.
  Tribal governments and their citizens must have access to the 
necessary resources to develop their telecommunications capacities. A 
recent report by the Harvard Project on American Indian Economic 
Development credited tribal self-governance for improvements in 
socioeconomic growth at rates that far exceed progress being made 
nationally. This bill will provide the resources necessary to enhance 
and strengthen tribal self-determination to address telecommunications 
needs. As a result, tribal governments should be able to make further 
gains in socioeconomic conditions.
  I urge my colleagues to give their favorable consideration to this 
measure.
  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. 535

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Native American Connectivity 
     Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1)(A) disparities exist in the areas of education, health 
     care, workforce training, commerce, and economic activity of 
     Indians due to the rural nature of most Indian reservations; 
     and
       (B) access to basic and advanced telecommunications 
     infrastructure is critical in eliminating those disparities;
       (2) currently, only 67.9 percent of Indian homes have 
     telephone service, compared with the national average of 95.1 
     percent;
       (3) the telephone service penetration rate on some 
     reservations is as low as 39 percent;
       (4) even on reservations and trust land, non-Indian homes 
     are more likely to have telephone service than Indian homes;
       (5) only 10 percent of Indian households on tribal land 
     have Internet access;
       (6) only 17 percent of Indian tribes have developed 
     comprehensive technology plans;
       (7) training and technical assistance have been identified 
     as the most significant needs for the development and 
     effective use of telecommunications and information 
     technology in Indian country;
       (8) funding for telecommunications and information 
     technology projects in Indian country remains inadequate to 
     address the needs of Indian communities;
       (9) many Indian tribes are located on or adjacent to Indian 
     land in which unemployment rates exceed 50 percent;
       (10) the lack of telecommunications infrastructure and low 
     telephone and Internet penetration rates adversely affects 
     the ability of Indian tribes to pursue economic development 
     opportunities; and
       (11) primary, secondary, and postsecondary education, job 
     training, health care, disease prevention education, and 
     cultural preservation are greatly enhanced with access to and 
     use of telecommunications technology and electronic 
     information.

     SEC. 3. PURPOSES.

       The purposes of this Act are--
       (1) to promote affordable and universal access among Indian 
     tribal governments, tribal entities, reservation-based 
     schools, tribal colleges and universities, and Indian 
     households to telecommunications and information technology 
     in Indian country;
       (2) to encourage and promote tribal economic development, 
     self-sufficiency, and strong tribal governments;
       (3) to enhance the health of Indian tribal members through 
     the availability and use of telemedicine and telehealth;
       (4) to improve the quality of kindergarten, primary, 
     secondary, postsecondary, and job-related training, through 
     enhanced and sustained information technology infrastructure; 
     and
       (5) to assist in the retention and preservation of native 
     languages and cultural traditions.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Block grant.--The term ``block grant'' means a grant 
     provided under section 5.
       (2) Eligible activity.--The term ``eligible activity'' 
     means an activity carried out--
       (A) to acquire or lease real property (including licensed 
     spectrum, water rights, dark fiber, exchanges, and other 
     related interests) to provide telecommunications services, 
     facilities, and improvements;
       (B) to acquire, construct, reconstruct, or install 
     telecommunications facilities, sites, improvements (including 
     design features), or utilities;
       (C) to retain any real property acquired under this Act for 
     tribal communications purposes;
       (D) to pay the non-Federal share required by a Federal 
     grant program undertaken as part of activities funded under 
     this Act;
       (E) to carry out activities necessary--
       (i) to develop a comprehensive telecommunications 
     development plan; and
       (ii) to develop a policy, planning, and management capacity 
     so that an eligible entity can more rationally and 
     effectively--

       (I) determine the needs of the entity;
       (II) set long term and short term goals;
       (III) devise programs and activities to meet the goals of 
     the entity, including, if appropriate, telehealth;
       (IV) evaluate the progress of the programs and activities 
     in meeting the goals of the entity; and
       (V) carry out management, coordination, and monitoring of 
     activities necessary for effective planning implementation;

       (F) to pay reasonable administrative costs and carrying 
     charges related to the planning and execution of 
     telecommunications development activities, including the 
     provision of information and resources about the planning and 
     execution of the activities to residents of areas in which 
     telecommunications development activities are to be 
     concentrated;
       (G) to increase the capacity of an eligible entity to carry 
     out telecommunications activities, including the development 
     of telecommunications regulations and related regulatory 
     matters;
       (H) to provide assistance to institutions of higher 
     education (including tribal colleges and universities) that 
     have a demonstrated capacity to carry out eligible 
     activities;
       (I) to enable an eligible entity to facilitate 
     telecommunications development by--

[[Page 3600]]

       (i) providing technical assistance, advice, and business 
     support services (including services for developing business 
     plans, securing funding, and conducting marketing); and
       (ii) providing general support (including peer support 
     programs and mentoring programs) to Indian tribes in 
     developing telecommunications projects;
       (J) to evaluate eligible activities to ascertain and 
     promote effective telecommunications and information 
     technology deployment practices and usages among Indian 
     tribes; or
       (K) to provide research, analysis, data collection, data 
     organization, and dissemination of information relevant to 
     telecommunications and information technology in Indian 
     country for the purpose of promoting effective 
     telecommunications and information technology deployment 
     practices and usages among tribes.
       (3) Eligible entity.--The term ``eligible entity'' means--
       (A) an Indian tribe or consortium of Indian tribes;
       (B) a tribally chartered organization; or
       (C) an Indian organization, intertribal organization, 
     tribal college or university, or a private or public 
     institution of higher education acting under an agreement 
     with an Indian tribe.
       (4) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (5) Information technology.--
       (A) In general.--The term ``information technology'' means 
     any equipment or interconnected system or subsystem of 
     equipment that is used in the automatic acquisition, storage, 
     analysis, evaluation, manipulation, management, movement, 
     control, display, switching, interchange, transmission, or 
     reception of data or information.
       (B) Inclusions.--The term ``information technology'' 
     includes computers, ancillary equipment (including imaging 
     peripherals, input, output, and storage devices necessary for 
     security and surveillance), peripheral equipment designed to 
     be controlled by the central processing unit of a computer, 
     software, firmware and similar procedures, services 
     (including support services), and related resources.
       (6) Planning.--The term ``planning'' means community-based 
     planning developed in consultation with the local community 
     based on the needs of the local community.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (8) Technical assistance.--The term ``technical 
     assistance'' means the facilitation of skills and knowledge 
     in planning, developing, assessing, and administering 
     eligible activities.
       (9) Training and technical assistance grant.--The term 
     ``training and technical assistance grant'' means a grant 
     provided under section 6.
       (10) Tribal college or university.--The term ``tribal 
     college or university'' has the meaning given the term 
     ``tribally controlled college or university'' in section 2 of 
     the Tribally Controlled Community College Assistance Act of 
     1978 (25 U.S.C. 1801), except that the term includes an 
     institution listed in the Equity in Educational Land-Grant 
     Status Act of 1994 (7 U.S.C. 301 note).
       (11) Telehealth.--The term ``telehealth'' means the use of 
     electronic information and telecommunications technologies to 
     support long-distance clinical health care, patient and 
     professional health-related education, public health, and 
     health administration.

     SEC. 5. BLOCK GRANT PROGRAM.

       (a) Establishment.--There is established within the 
     National Telecommunications and Information Administration a 
     Native American telecommunications block grant program to 
     provide grants on a competitive basis to eligible entities to 
     carry out activities under subsection (c).
       (b) Block Grants.--The Secretary may provide a block grant 
     to an eligible entity that submits a block grant application 
     to the Secretary for approval.
       (c) Eligible Activities.--A grant under this section may 
     only be used for an eligible activity.
       (d) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall promulgate 
     regulations establishing specific criteria for the 
     competition conducted to select eligible entities to receive 
     grants under this section for each fiscal year.

     SEC. 6. TRAINING AND TECHNICAL ASSISTANCE GRANTS.

       (a) Notification and Criteria.--The Secretary--
       (1) shall provide notice of the availability of training 
     and technical assistance grants; and
       (2) publish criteria for selecting recipients.
       (b) Grants.--The Secretary may provide training and 
     technical assistance grants to eligible entities with a 
     demonstrated capacity to carry out eligible activities.
       (c) Use of Funds.--A training and technical assistance 
     grant shall be used--
       (1) to develop a training program to facilitate local use 
     and maintenance of new telecommunications technologies;
       (2) to develop and implement--
       (A) telecommunications and information technology work 
     study programs; and
       (B) postsecondary telecommunications and information 
     technology-related education, development, planning, and 
     management programs;
       (3) to develop a training program for telecommunications 
     employees; or
       (4) to provide assistance to students who--
       (A) participate in telecommunications or information 
     technology work study programs; and
       (B) are enrolled in a full-time graduate or undergraduate 
     program in telecommunications-related education, development, 
     planning, or management.
       (d) Setaside.--
       (1) In general.--For each fiscal year, the Secretary shall 
     set aside 10 percent of the amount made available under 
     section 12 for training and technical assistance grants, to 
     remain available until expended.
       (2) Treatment.--A training and technical assistance grant 
     to an entity shall be in addition to any block grant provided 
     to the entity.
       (e) Provision of Technical Assistance by the Secretary.--
     The Secretary may provide technical assistance, directly or 
     through contracts, to--
       (1) eligible entities; and
       (2) persons or entities that assist tribal governments.

     SEC. 7. COMPLIANCE.

       (a) Audit by the Comptroller General.--
       (1) In general.--The Comptroller General of the United 
     States may audit any financial transaction involving grant 
     funds that is carried out by a block grant recipient or 
     training and technical assistance grant recipient.
       (2) Scope of authority.--In conducting an audit under 
     paragraph (1), the Comptroller General shall have access to 
     all books, accounts, records, reports, files, and other 
     papers, things, or property belonging to or in use by the 
     grant recipient that relate to the financial transaction and 
     are necessary to facilitate the audit.
       (b) Environmental Protection.--
       (1) In general.--After consultation with Indian tribes, the 
     Secretary may promulgate regulations to carry out this 
     subsection that--
       (A) ensure that the policies of the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), and other laws 
     that further the purposes of that Act (as specified by the 
     regulations), are most effectively implemented in connection 
     with the expenditure of funds under this Act; and
       (B) assure the public of undiminished protection of the 
     environment.
       (2) Substitute measures.--Subject to paragraph (3), the 
     Secretary may provide for the release of funds under this Act 
     for eligible activities to grant recipients that assume all 
     of the responsibilities for environmental review, 
     decisionmaking, and related action under the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), 
     and other laws that further the purposes of that Act (as 
     specified by the regulations promulgated under paragraph 
     (1)), that would apply to the Secretary if the Secretary 
     carried out the eligible activities as Federal projects.
       (3) Release.--
       (A) In general.--The Secretary shall approve the release of 
     funds under paragraph (2) if, at least 15 days prior to 
     approval, the grant recipient submits to the Secretary a 
     request for release accompanied by a certification that meets 
     the requirements of paragraph (4).
       (B) Approval.--The approval by the Secretary of a 
     certification shall be deemed to satisfy the responsibilities 
     of the Secretary under the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) and the laws specified by 
     the regulations promulgated under paragraph (1), to the 
     extent that those responsibilities relate to the release of 
     funds for projects described in the certification.
       (4) Certification.--A certification shall--
       (A) be in a form acceptable to the Secretary;
       (B) be executed by the tribal government;
       (C) specify that the grant recipient has fully assumed the 
     responsibilities described in paragraph (2); and
       (D) specify that the tribal officer--
       (i) assumes the status of a responsible Federal official 
     under the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.) and each law specified by the 
     regulations promulgated under paragraph (1), to the extent 
     that the provisions of that Act or law apply; and
       (ii) is authorized to consent, and consents, on behalf of 
     the grant recipient and on behalf of the tribal officer to 
     accept the jurisdiction of the Federal courts for enforcement 
     of the responsibilities of the tribal officer as a 
     responsible Federal official.

     SEC. 8. REMEDIES FOR NONCOMPLIANCE.

       (a) Failure to Comply.--If the Secretary finds, on the 
     record after opportunity for an agency hearing, that a block 
     grant recipient or training and technical assistance grant 
     recipient has failed to comply substantially with any 
     provision of this Act, the Secretary, until satisfied that 
     there is no longer a failure to comply, shall--
       (1) terminate payments to the grant recipient;

[[Page 3601]]

       (2) reduce payments to the grant recipient by an amount 
     equal to the amount of payments that were not expended in 
     accordance with this Act;
       (3) limit the availability of payments under this Act to 
     programs, projects, or activities not affected by the failure 
     to comply; or
       (4) refer the matter to the Attorney General with a 
     recommendation that the Attorney General bring an appropriate 
     civil action.
       (b) Action by the Attorney General.--After a referral by 
     the Secretary under subsection (a)(4), the Attorney General 
     may bring a civil action in United States district court for 
     appropriate relief (including mandatory relief, injunctive 
     relief, and recovery of the amount of the assistance provided 
     under this Act that was not expended in accordance with this 
     Act).

     SEC. 9. REPORTING REQUIREMENTS.

       (a) Annual Report to Congress.--Not later than 180 days 
     after the end of each fiscal year in which assistance under 
     this Act is provided, the Secretary shall submit to Congress 
     a report that includes--
       (1) a description of the progress made in accomplishing the 
     objectives of this Act;
       (2) a summary of the use of funds under this Act during the 
     preceding fiscal year; and
       (3) an evaluation of the status of telephone, Internet, and 
     personal computer penetration rates, by type of technology, 
     among Indian households throughout Indian country on a tribe-
     by-tribe basis.
       (b) Reports to Secretary.--The Secretary may require grant 
     recipients under this Act to submit reports and other 
     information necessary for the Secretary to prepare the report 
     under subsection (a).

     SEC. 10. CONSULTATION.

       In carrying out this Act, the Secretary shall consult 
     with--
       (1) other Federal agencies administering Federal grant 
     programs relating to the development of telecommunications 
     capacities or infrastructure; and
       (2) the Government Accountability Office and Indian tribes 
     to determine the proportion of grant funds necessary to 
     address training and technical assistance and eligible 
     activity needs.

     SEC. 11. HISTORIC PRESERVATION REQUIREMENTS.

       A telecommunications project funded under this Act shall 
     comply with the National Historic Preservation Act (16 U.S.C. 
     470 et seq.) and the Native American Graves Protection and 
     Repatriation Act (25 U.S.C. 3001 et seq.).

     SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out this Act--
       (1) $20,000,000 for fiscal year 2006; and
       (2) such sums as are necessary for each subsequent fiscal 
     year.
       (b) Availability.--Funds made available under subsection 
     (a) shall remain available until expended.
                                 ______
                                 
      By Mr. McCAIN:
  S. 536. A bill to make technical corrections to laws relating to 
Native Americans, and for other purposes; to the Committee on Indian 
Affairs.
  Mr. McCAIN. Mr. President, I am pleased to introduce the Native 
American Omnibus Act of 2005 to amend a variety of Federal statutes 
affecting Indian tribes and Indian people. This Act contains nineteen 
provisions, including technical amendments to several laws, extensions 
of expiring authorizations, and provisions relating to particular 
Indian tribes, and certain Native American programs.
  Section 101, amends the Indian finance act of 1974 to clarify that 
non-profit tribal entities are eligible for the BIA Loan Guaranty 
program. It also raises the limit on the amount of loans to $1.5 
billion from $500 million.
  Section 102 extends the authorization for the Indian Tribal Justice 
Technical and Legal Assistance Act to through fiscal year 2010.
  Section 103 extends the Indian Tribal Justice Act for three more 
years.
  Section 104 cures a problem specific to New Mexico and the 1924 
Indian Pueblo Lands Act. Recently, the New Mexico State Court of 
Appeals ruled that a change from Indian to non-Indian title for a 
parcel of land within a Pueblo land grant area eliminated that parcel's 
status as ``Indian Country.'' This ruling created a jurisdictional void 
for criminal acts occurring on land within the original Pueblo land 
grant once its' title has changed. Consistent with existing law, this 
amendment clarifies that the state maintains jurisdiction over non-
Indians, the tribe has jurisdiction over Indians and its members, and 
the federal government has jurisdiction pursuant to the Major Crimes 
Act. This amendment does not expand Indian civil jurisdiction and only 
applies to criminal jurisdiction. I understand that it is uniformly 
support by all affected parties.
  Section 105, conveys approximately 1290 acres of the Lock and Dam #3 
lands to the Prairie Island Tribe. The provision prohibits gaming or 
structures for human habitation on the conveyed lands.
  Section 106 is a technical amendment to allow binding arbitration in 
all contracts and not just leases on the Gila River Indian Community 
reservation.
  Section 107 conveys several parcels of land in the State of 
Washington to be held in trust for Puyallup Indian Tribes.
  Section 108 amends Native American graves Protection and Repatriation 
Act by clarifying that the term ``Native American'' refers to a member 
of a tribe, a people, or a culture that is or was indigenous to the 
United States.
  Section 109, the amends the Fallon Paiute Shoshone Tribe's water 
rights settlement act to permit the expenditure of six percent of the 
average market value of the Fund over three years.
  Section 110, the Washoe Tribes Lake Tahoe Access Act, corrects the 
1990 settlement and includes 24.3 acres of land near Lake Tahoe for the 
Tribes. The amendment does not affect the number of acres conveyed to 
the Tribe in the original settlement.
  Section 111 amends the Indian Arts and Crafts Act. A major source of 
tribal and individual income comes from the sale of handmade Indian 
arts and crafts, but millions of dollars are diverted each year from 
these artists and tribes by those who reproduce and sell counterfeit 
Indian goods. Enforcing the criminal law that prohibits the sale of 
Indian arts and crafts misrepresented as an Indian product is often 
stalled by the other responsibilities of the FBI including 
investigating terrorism activity and violent crimes on Indian lands. 
This amendment supplements the existing federal investigative authority 
by authorizing other federal investigative bodies, such as the BIA, in 
addition to the FBI, to investigate these offenses.
  Section 112, the Colorado River Indian Reservation Boundary 
Correction Act, corrects the south boundary of the Reservation by 
reestablishing the boundary as it was delineated in the original 
survey.
  Section 113, reauthorizes the Native American Programs Act of 1974 
and establishes the Inter-Departmental Council of Native American 
Affairs.
  Section 114 amends the Native Hawaiian Education Act to include 
research and education activities relating to Native Hawaiian law.
  Section 121 amends the Carl D. Perkins Vocational Act to include the 
registration of Indian students in the Spring semester.
  Section 122, the Native Nations Leadership, Management and Policy Act 
of 2005 authorizes funding for leadership training, strategic and 
organizational development, and research and policy analysis to assist 
American Indian nations to achieve effective self-governance and 
sustainable economic development. This provision renews authorized 
funding for NNI's programs for a period of 10 years, beginning in 
fiscal year 2007. Dedicated funding for NNI is necessary to ensure the 
continuation of these important programs without further draining funds 
from the Udall Foundation's other educational activities.
  Section 132 authorizes the Secretary of Homeland Security, to 
establish a pilot program to enhance an Indian tribe's response to 
border activity. Some Indian tribes that inhabit land on or easily 
accessible to the United States and Canada or Mexico, bear 
extraordinary costs in responding to illegal immigration crossing and 
drug smuggling and almost always divert funds intended for local 
services to do so. While Federal and State law enforcement resources 
may supplement tribal efforts, tribal police, fire and emergency 
services provide the first and often only response because of their 
access to the border. A tribe's proximity to the border and its 
responsibility to the community for public safety and welfare, requires 
that they respond. This program would enhance tribal first responder 
capabilities, provide assistance for aerial and ground

[[Page 3602]]

surveillance technologies, and communication capabilities, and 
facilitate coordination and cooperation with Federal, State, local and 
tribal governments in protecting the border. The Secretary may 
establish the selection criteria for participation in the program 
including the tribes' proximity to the border and the extent to which 
border crossing activity impacts existing tribal resources.
  Section 201, Authorization of 99 year leases, amends Title 25 USC 
Section 415 providing for leases of restricted lands by adding several 
additional tribes to the list of tribes that have requested 99-year 
lease authority.
  Section 202, Certification of rental proceeds, amends Title 25 USC 
Section 488 to permit actual rental proceeds from a lease to constitute 
the rental value of that land, and to satisfy the requirement for 
appraisal of that land.
  Section 211, will permit the Navajo Nation's Sage Memorial Hospital 
to be considered a tribal contractor under the Indian Self-
Determination Act, which will allow the hospital to obtain the benefits 
of coverage under the Federal Tort Claims Act and secure VA drug 
discounts.
  Section 221, amends the American Indian Probate Reform Act of 2004 by 
correcting provisions relating to non-testamentary disposition, 
partition of highly fractionated Indian land, and Tribal probate codes.
  I look forward to working with my colleagues on both sides of the 
aisle to enact this important legislation.
  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. 536

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Native 
     American Omnibus Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

   TITLE I--TECHNICAL AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS

                     Subtitle A--General Provisions

Sec. 101. Indian Financing Act amendments.
Sec. 102. Indian tribal justice technical and legal assistance.
Sec. 103. Tribal justice systems.
Sec. 104. Indian Pueblo Land Act amendments.
Sec. 105. Prairie Island land conveyance.
Sec. 106. Binding arbitration for Gila River Indian Community 
              reservation contracts.
Sec. 107. Puyallup Indian Tribe land claims settlement amendments.
Sec. 108. Definition of Native American.
Sec. 109. Fallon Paiute Shoshone Tribes settlement.
Sec. 110. Washoe tribe of Nevada and California land conveyance.
Sec. 111. Indian arts and crafts.
Sec. 112. Colorado River Indian Reservation boundary correction.
Sec. 113. Native American Programs Act of 1974.
Sec. 114. Research and educational activities.

                Subtitle B--Indian Education Provisions

Sec. 121. Definition of Indian student count.
Sec. 122. Native Nations leadership, management, and policy.

                    Subtitle C--Border Preparedness

Sec. 132. Border preparedness on Indian land.

    TITLE II--OTHER AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS

                    Subtitle A--Indian Land Leasing

Sec. 201. Authorization of 99-year leases.
Sec. 202. Certification of rental proceeds.

                 Subtitle B--Navajo Health Contracting

Sec. 211. Navajo health contracting.

                Subtitle C--Probate Technical Correction

Sec. 221. Probate reform.

     SEC. 2. DEFINITION OF SECRETARY.

       In this Act, the term ``Secretary'' means the Secretary of 
     the Interior.

   TITLE I--TECHNICAL AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS

                     Subtitle A--General Provisions

     SEC. 101. INDIAN FINANCING ACT AMENDMENTS.

       (a) Loan Guaranties and Insurance.--Section 201 of the 
     Indian Financing Act of 1974 (25 U.S.C. 1481) is amended--
       (1) by striking ``the Secretary is authorized (a) to 
     guarantee'' and inserting ``the Secretary may--
       ``(1) guarantee'';
       (2) by striking ``members; and (b) in lieu of such 
     guaranty, to insure'' and inserting ``members; or
       ``(2) to insure'';
       (3) by striking ``Sec. 201. In order'' and inserting the 
     following:

     ``SEC. 201. LOAN GUARANTIES AND INSURANCE.

       ``(a) In General.--In order''; and
       (4) by adding at the end the following:
       ``(b) Eligible Borrowers.--The Secretary may guarantee or 
     insure loans under subsection (a) to both for-profit and 
     nonprofit borrowers.''.
       (b) Loan Approval.--Section 204 of the Indian Financing Act 
     of 1974 (25 U.S.C. 1484) is amended by striking ``Sec. 204.'' 
     and inserting the following:

     ``SEC. 204. LOAN APPROVAL.''.

       (c) Sale or Assignment of Loans and Underlying Security.--
     Section 205 of the Indian Financing Act of 1974 (25 U.S.C. 
     1485) is amended--
       (1) by striking ``Sec. 205.'' and all that follows through 
     subsection (b) and inserting the following:

     ``SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING 
                   SECURITY.

       ``(a) In General.--All or any portion of a loan guaranteed 
     or insured under this title, including the security given for 
     the loan--
       ``(1) may be transferred by the lender by sale or 
     assignment to any person; and
       ``(2) may be retransferred by the transferee.
       ``(b) Transfers of Loans.--With respect to a transfer 
     described in subsection (a)--
       ``(1) the transfer shall be consistent with such 
     regulations as the Secretary shall promulgate under 
     subsection (h); and
       ``(2) the transferee shall give notice of the transfer to 
     the Secretary.'';
       (2) by striking subsection (c);
       (3) by redesignating subsections (d), (e), (f), (g), (h), 
     and (i) as subsections (c), (d), (e), (f), (g), and (h), 
     respectively;
       (4) in subsection (c) (as redesignated by paragraph (3))--
       (A) by striking ``Validity.--'' and all that follows 
     through ``subparagraph (B),'' and inserting ``Validity.--
     Except as provided by regulations in effect on the date on 
     which a loan is made,''; and
       (B) by striking ``incontestable'' and all that follows and 
     inserting ``incontestable.'';
       (5) in subsection (e) (as redesignated by paragraph (3))--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Compensation of fiscal transfer agent.--A fiscal 
     transfer agent designated under subsection (f) may be 
     compensated through any of the fees assessed under this 
     section and any interest earned on any funds or fees 
     collected by the fiscal transfer agent while the funds or 
     fees are in the control of the fiscal transfer agent and 
     before the time at which the fiscal transfer agent is 
     contractually required to transfer such funds to the 
     Secretary or to transferees or other holders.''; and
       (6) in subsection (f) (as redesignated by paragraph (3))--
       (A) by striking ``subsection (i)'' and inserting 
     ``subsection (h)''; and
       (B) in paragraph (2)(B), by striking ``, and issuance of 
     acknowledgments,''.
       (d) Loans Ineligible for Guaranty or Insurance.--Section 
     206 of the Indian Financing Act of 1974 (25 U.S.C. 1486) is 
     amended by inserting ``(not including an eligible Native 
     American owned or operated Community Development Finance 
     Institution)'' after ``Government''.
       (e) Aggregate Loans or Surety Bonds Limitation.--Section 
     217(b) of the Indian Financing Act of 1974 (25 U.S.C. 
     1497(b)) is amended by striking ``$500,000,000'' and 
     inserting ``$1,500,000,000''.

     SEC. 102. INDIAN TRIBAL JUSTICE TECHNICAL AND LEGAL 
                   ASSISTANCE.

       Sections 106 and 201(d) of the Indian Tribal Justice 
     Technical and Legal Assistance Act (25 U.S.C. 3666, 3681(d)) 
     are amended by striking ``for fiscal years 2000 through 
     2004'' and inserting ``for fiscal years 2004 through 2010''.

     SEC. 103. TRIBAL JUSTICE SYSTEMS.

       Subsections (a), (b), (c), and (d) of section 201 of the 
     Indian Tribal Justice Act (25 U.S.C. 3621) are amended by 
     striking ``2007'' and inserting ``2010''.

     SEC. 104. INDIAN PUEBLO LAND ACT AMENDMENTS.

       (a) In General.--The Act of June 7, 1924 (43 Stat. 636, 
     chapter 331), is amended by adding at the end the following:

     ``SEC. 20. CRIMINAL JURISDICTION.

       ``(a) In General.--Except as otherwise provided by 
     Congress, jurisdiction over offenses committed anywhere 
     within the exterior boundaries of any grant from a prior 
     sovereign, as confirmed by Congress or the Court of Private 
     Land Claims to a Pueblo Indian tribe of New Mexico, shall be 
     as provided in this section.
       ``(b) Jurisdiction of the Pueblo.--The Pueblo has 
     jurisdiction, as an act of the Pueblos' inherent power as an 
     Indian tribe, over any offense committed by a member of the 
     Pueblo or of another Indian tribe, or by any other Indian-
     owned entity.
       ``(c) Jurisdiction of the United States.--The United States 
     has jurisdiction over any offense described in chapter 53 of 
     title 18, United States Code, committed by or against an 
     Indian or any Indian-owned entity, or that involves any 
     Indian property or interest.

[[Page 3603]]

       ``(d) Jurisdiction of the State of New Mexico.--The State 
     of New Mexico shall have jurisdiction over any offense 
     committed by a person who is not a member of an Indian tribe, 
     which offense is not subject to the jurisdiction of the 
     United States.''.

     SEC. 105. PRAIRIE ISLAND LAND CONVEYANCE.

       (a) In General.--The Secretary of the Army shall convey all 
     right, title, and interest of the United States in and to the 
     land described in subsection (b), including all improvements, 
     cultural resources, and sites on the land, subject to the 
     flowage and sloughing easement described in subsection (d) 
     and to the conditions stated in subsection (f), to the 
     Secretary, to be--
       (1) held in trust by the United States for the benefit of 
     the Prairie Island Indian Community in Minnesota; and
       (2) included in the Prairie Island Indian Community 
     Reservation in Goodhue County, Minnesota.
       (b) Land Description.--The land to be conveyed under 
     subsection (a) is the approximately 1290 acres of land 
     associated with the Lock and Dam #3 on the Mississippi River 
     in Goodhue County, Minnesota, located in tracts identified as 
     GO-251, GO-252, GO-271, GO-277, GO-278, GO-284, GO-301 
     through GO-313, GO-314A, GO-314B, GO-329, GO-330A, GO-330B, 
     GO-331A, GO-331B, GO-331C, GO-332, GO-333, GO-334, GO-335A, 
     GO-335B, GO-336 through GO-338, GO-339A, GO-339B, GO-339C, 
     GO-339D, GO-339E, GO-340A, GO-340B, GO-358, GO-359A, GO-359B, 
     GO-359C, GO-359D, and GO-360, as depicted on the map entitled 
     ``United States Army Corps of Engineers survey map of the 
     Upper Mississippi River 9-Foot Project, Lock & Dam No. 3 (Red 
     Wing), Land & Flowage Rights'' and dated December 1936.
       (c) Boundary Survey.--Not later than 5 years after the date 
     of conveyance under subsection (a), the boundaries of the 
     land conveyed shall be surveyed as provided in section 2115 
     of the Revised Statutes (25 U.S.C. 176).
       (d) Easement.--
       (1) In general.--The Corps of Engineers shall retain a 
     flowage and sloughing easement for the purpose of navigation 
     and purposes relating to the Lock and Dam No. 3 project over 
     the portion of the land described in subsection (b) that lies 
     below the elevation of 676.0.
       (2) Inclusions.--The easement retained under paragraph (1) 
     includes--
       (A) the perpetual right to overflow, flood, and submerge 
     property as the District Engineer determines to be necessary 
     in connection with the operation and maintenance of the 
     Mississippi River Navigation Project; and
       (B) the continuing right to clear and remove any brush, 
     debris, or natural obstructions that, in the opinion of the 
     District Engineer, may be detrimental to the project.
       (e) Ownership of Sturgeon Lake Bed Unaffected.--Nothing in 
     this section diminishes or otherwise affects the title of the 
     State of Minnesota to the bed of Sturgeon Lake located within 
     the tracts of land described in subsection (b).
       (f) Conditions.--The conveyance under subsection (a) is 
     subject to the conditions that the Prairie Island Indian 
     Community shall not--
       (1) use the conveyed land for human habitation;
       (2) construct any structure on the land without the written 
     approval of the District Engineer; or
       (3) conduct gaming (within the meaning of section 4 of the 
     Indian Gaming Regulatory Act (25 U.S.C. 2703)) on the land.
       (g) No Effect on Eligibility for Certain Projects.--
     Notwithstanding the conveyance under subsection (a), the land 
     shall continue to be eligible for environmental management 
     planning and other recreational or natural resource 
     development projects on the same basis as before the 
     conveyance.
       (h) Effect of Section.--Nothing in this section diminishes 
     or otherwise affects the rights granted to the United States 
     pursuant to letters of July 23, 1937, and November 20, 1937, 
     from the Secretary to the Secretary of War and the letters of 
     the Secretary of War in response to the Secretary dated 
     August 18, 1937, and November 27, 1937, under which the 
     Secretary granted certain rights to the Corps of Engineers to 
     overflow the portions of Tracts A, B, and C that lie within 
     the Mississippi River 9-Foot Channel Project boundary and as 
     more particularly shown and depicted on the map entitled 
     ``United States Army Corps of Engineers survey map of the 
     Upper Mississippi River 9-Foot Project, Lock & Dam No. 3 (Red 
     Wing), Land & Flowage Rights'' and dated December 1936.

     SEC. 106. BINDING ARBITRATION FOR GILA RIVER INDIAN COMMUNITY 
                   RESERVATION CONTRACTS.

       (a) Amendments.--Subsection (f) of the first section of the 
     Act of August 9, 1955 (25 U.S.C. 415(f)), is amended--
       (1) in the first sentence--
       (A) by striking ``Any lease'' and all that follows through 
     ``affecting land'' and inserting ``Any contract, including a 
     lease, affecting land''; and
       (B) by striking ``such lease or contract'' and inserting 
     ``such contract''; and
       (2) in the second sentence, by striking ``such leases or 
     contracts entered into pursuant to such Acts'' and inserting 
     ``Such contracts''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if included in the Act of August 9, 1955 
     (69 Stat. 539, chapter 615) and Public 107-159 (116 Stat. 
     122).

     SEC. 107. PUYALLUP INDIAN TRIBE LAND CLAIMS SETTLEMENT 
                   AMENDMENTS.

       (a) In General.--The Secretary shall--
       (1) accept the conveyance of the parcels of land within the 
     Puyallup Reservation described in subsection (b); and
       (2) hold the land in trust for the benefit of the Puyallup 
     Indian Tribe.
       (b) Land Description.--The parcels of land referred to in 
     subsection (a) are as follows:
       (1) Parcel a.--Lot B, boundary line adjustment 9508150496: 
     according to the map thereof recorded August 15, 1995, 
     records of Pierce County Auditor, situate in the city of 
     Fife, county of Pierce, State of Washington.
       (2) Parcel b.--Lots 3 and 4, Pierce County Short Plat No. 
     8908020412: according to the map thereof recorded August 2, 
     1989, records of Pierce County Auditor, together with portion 
     of SR 5 abutting lot 4, conveyed by deed recorded under 
     recording number 9309070433, described as follows:
       That portion of Government lot 1, sec. 07, T. 20 N., R. 4 
     E., of the Willamette Meridian, described as commencing at 
     Highway Engineer's Station (hereinafter referred to as HES) 
     AL 26 6+38.0 P.O.T. on the AL26 line survey of SR 5, Tacoma 
     to King County line: Thence S88 deg.54'30" E., along the 
     north line of said lot 1 a distance of 95 feet to the true 
     point of beginning: Thence S01 deg.05'30" W87.4' feet: Thence 
     westerly to a point opposite HES AL26 5+50.6 P.O.T. on said 
     AL26 line survey and 75 feet easterly therefrom; Thence 
     northwesterly to a point opposite AL26 5+80.6 on said AL26 
     line survey and 55 feet easterly therefrom: Thence northerly 
     parallel with said line survey to the north line of said lot 
     1: Thence N88 deg.54'30" E., to the true point of beginning.
       Except that portion of lot 4 conveyed to the State of 
     Washington by deed recorded under recording number 9308100165 
     and more particularly described as follows:
       Commencing at the northeast corner of said lot 4: Thence 
     N89 deg.53'30" W., along the north line of said lot 4 a 
     distance of 147.44 feet to the true point of beginning and a 
     point of curvature; thence southwesterly along a curve to the 
     left, the center of which bears S0 deg.06'30" W., 55.00 feet 
     distance, through a central angle of 89 deg.01'00", an arc 
     distance of 85.45 feet; Thence S01 deg.05'30" W., 59.43 feet; 
     Thence N88 deg.54'30" W., 20.00 feet to a point on the 
     westerly line of said lot 4; Thence N0 deg.57'10" E., along 
     said westerly line 113.15 feet to the northwest corner of 
     said lot 4; Thence S89 deg.53'30" east along said north line, 
     a distance of 74.34 feet to the true point of beginning.
       Chicago Title Insurance Company Order No. 4293514 Lot A 
     boundary line adjustment recorded under Recording No. 
     9508150496. According to the map thereof recorded August 15, 
     1995, records of Pierce County Auditor.
       Situate in the city of Fife, county of Pierce, State of 
     Washington.
       (3) Additional lots.--Any lots acquired by the Tribe 
     located in block 7846, 7850, 7945, 7946, 7949, 7950, 8045, or 
     8049 in the Indian Addition to the city of Tacoma, State of 
     Washington.

     SEC. 108. DEFINITION OF NATIVE AMERICAN.

       Section 2(9) of the Native American Graves Protection and 
     Repatriation Act (25 U.S.C. 3001(9)) is amended--
       (1) by inserting ``or was'' after ``is''; and
       (2) by inserting after ``indigenous to'' the following: 
     ``any geographic area that is now located within the 
     boundaries of''.

     SEC. 109. FALLON PAIUTE SHOSHONE TRIBES SETTLEMENT.

       (a) Settlement Fund.--Section 102 of the Fallon Paiute 
     Shoshone Indian Tribes Water Rights Settlement Act of 1990 
     (104 Stat. 3289) is amended--
       (1) in subsection (C)--
       (A) in paragraph (1)--
       (i) by striking ``The income of the Fund may be obligated 
     and expended only for the following purposes:'' and inserting 
     the following: ``Notwithstanding any conflicting provision in 
     the original Fund plan during Fund fiscal year 2004 and 
     during each subsequent Fund fiscal year, 6 percent of the 
     average quarterly market value of the Fund during the 
     immediately preceding 3 Fund fiscal years (referred to in 
     this title as the `Annual 6 percent Amount'), plus any 
     unexpended and unobligated portion of the Annual 6 percent 
     Amount from any of the 3 immediately preceding Fund fiscal 
     years that are subsequent to Fund fiscal year 2003, less any 
     negative income that may accrue on that portion, may be 
     expended or obligated only for the following purposes:''; and
       (ii) by adding at the end the following:
       ``(g) Fees and expenses incurred in connection with the 
     investment of the Fund, for investment management, investment 
     consulting, custodianship, and other transactional services 
     or matters.''; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) No monies from the Fund other than the amounts 
     authorized under paragraphs (1) and (3) may be expended or 
     obligated for any purpose.
       ``(5) Notwithstanding any conflicting provision in the 
     original Fund plan, during

[[Page 3604]]

     Fund fiscal year 2004 and during each subsequent Fund fiscal 
     year, not more than 20 percent of the Annual 6 percent Amount 
     for the Fund fiscal year (referred to in this title as the 
     `Annual 1.2 percent Amount') may be expended or obligated 
     under paragraph (1)(c) for per capita distributions to tribal 
     members, except that during each Fund fiscal year subsequent 
     to Fund fiscal year 2004, any unexpended and unobligated 
     portion of the Annual 1.2 percent Amount from any of the 3 
     immediately preceding Fund fiscal years that are subsequent 
     to Fund fiscal year 2003, less any negative income that may 
     accrue on that portion, may also be expended or obligated for 
     such per capita payments.''; and
       (2) in subsection (D), by adding at the end the following: 
     ``Notwithstanding any conflicting provision in the original 
     Fund plan, the Fallon Business Council, in consultation with 
     the Secretary, shall promptly amend the original Fund plan 
     for purposes of conforming the Fund plan to this title and 
     making nonsubstantive updates, improvements, or corrections 
     to the original Fund plan.''.
       (b) Definitions.--Section 107 of the Fallon Paiute Shoshone 
     Indian Tribes Water Rights Settlement Act of 1990 (104 Stat. 
     3293) is amended--
       (1) by redesignating subsections (D), (E), (F), and (G) as 
     subsections (F), (G), (H), and (I), respectively; and
       (2) by striking subsections (B) and (C) and inserting the 
     following:
       ``(B) the term `Fund fiscal year' means a fiscal year of 
     the Fund (as defined in the Fund plan);
       ``(C) the term `Fund plan' means the plan established under 
     section 102(F), including the original Fund plan (the `Plan 
     for Investment, Management, Administration and Expenditure 
     dated December 20, 1991') and all amendments of the Fund plan 
     under subsection (D) or (F)(1) of section 102;
       ``(D) the term `income' means the total net return from the 
     investment of the Fund, consisting of all interest, 
     dividends, realized and unrealized gains and losses, and 
     other earnings, less all related fees and expenses incurred 
     for investment management, investment consulting, 
     custodianship and transactional services or matters;
       ``(E) the term `principal' means the total amount 
     appropriated to the Fallon Paiute Shoshone Tribal Settlement 
     Fund under section 102(B);''.

     SEC. 110. WASHOE TRIBE OF NEVADA AND CALIFORNIA LAND 
                   CONVEYANCE.

       Section 2 of Public Law 108-67 (117 Stat. 880) is amended 
     by striking ``the parcel'' and all that follows and inserting 
     ``a portion of Lots 3 and 4, as shown on the United States 
     and Encumbrance Map revised January 10, 1991, for the Toiyabe 
     National Forest, Ranger District Carson -1, located in the 
     S\1/2\ of NW\1/4\ and N\1/2\ of SW\1/4\ of the SE\1/4\ of 
     sec. 27, T. 15N, R. 18E, Mt. Diablo Base and Meridian, 
     comprising 24.3 acres.''.

     SEC. 111. INDIAN ARTS AND CRAFTS.

       (a) Criminal Proceedings; Civil Actions; 
     Misrepresentations.--Section 5 of the Indian Arts and Crafts 
     Act of 1990 (25 U.S.C. 305d) is amended to read as follows:

     ``SEC. 5. CRIMINAL PROCEEDINGS; CIVIL ACTIONS.

       ``(a) Definition of Federal Law Enforcement Officer.--In 
     this section, the term `Federal law enforcement officer' has 
     the meaning given the term in section 115(c) of title 18, 
     United States Code.
       ``(b) Criminal Proceedings.--
       ``(1) Referral.--On receiving a complaint of a violation of 
     section 1159 of title 18, United States Code, the Board may 
     refer the complaint to any Federal law enforcement officer 
     for appropriate investigation.
       ``(2) Findings.--The findings of an investigation under 
     paragraph (1) shall be submitted to--
       ``(A) the Attorney General; and
       ``(B) the Board.
       ``(3) Recommendations.--On receiving the findings of an 
     investigation in accordance with paragraph (2), the Board 
     may--
       ``(A) recommend to the Attorney General that criminal 
     proceedings be initiated under section 1159 of that title; 
     and
       ``(B) provide such support to the Attorney General relating 
     to the criminal proceedings as the Attorney General 
     determines appropriate.
       ``(c) Civil actions.--In lieu of, or in addition to, any 
     criminal proceeding under subsection (a), the Board may 
     recommend that the Attorney General initiate a civil action 
     pursuant to section 6.''.
       (b) Section 6 of the Indian Arts and Crafts Act of 1990 (25 
     U.S.C. 305e) is amended--
       (1) by striking subsection (d);
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (3) by inserting before subsection (b) (as redesignated by 
     paragraph (2)) the following:
       ``(a) Definitions.--In this section:
       ``(1) Indian.--The term `Indian' means an individual that--
       ``(A) is a member of an Indian tribe; or
       ``(B) is certified as an Indian artisan by an Indian tribe.
       ``(2) Indian product.--The term `Indian product' has the 
     meaning given the term in any regulation promulgated by the 
     Secretary.
       ``(3) Indian tribe.--
       ``(A) In general.--The term `Indian tribe' has the meaning 
     given the term in section 4 of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450b).
       ``(B) Inclusion.--The term `Indian tribe' includes an 
     Indian group that has been formally recognized as an Indian 
     tribe by--
       ``(i) a State legislature;
       ``(ii) a State commission; or
       ``(iii) another similar organization vested with State 
     legislative tribal recognition authority.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of the Interior.'';
       (4) in subsection (c) (as redesignated by paragraph (2))--
       (A) by striking ``of this section''; and
       (B) by striking ``suit'' and inserting ``the civil 
     action'';
       (5) by striking subsection (d) (as redesignated by 
     paragraph (2)) and inserting the following:
       ``(d) Persons That May Initiate Civil Actions.--
       ``(1) In general.--A civil action under subsection (b) may 
     be initiated by--
       ``(A) the Attorney General, at the request of the Secretary 
     acting on behalf of--
       ``(i) an Indian tribe;
       ``(ii) an Indian; or
       ``(iii) an Indian arts and crafts organization;
       ``(B) an Indian tribe, acting on behalf of--
       ``(i) the tribe;
       ``(ii) a member of that tribe; or
       ``(iii) an Indian arts and crafts organization;
       ``(C) an Indian; or
       ``(D) an Indian arts and crafts organizaion.
       ``(2) Disposition of amounts recovered.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an amount recovered in a civil action under this section 
     shall be paid to the Indian tribe, the Indian, or the Indian 
     arts and crafts organization on the behalf of which the civil 
     action was initiated.
       ``(B) Exceptions.--
       ``(i) Attorney general.--In the case of a civil action 
     initiated under paragraph (1)(A), the Attorney General may 
     deduct from the amount--

       ``(I) the amount of the cost of the civil action and 
     reasonable attorney's fees awarded under subsection (c), to 
     be deposited in the Treasury and credited to appropriations 
     available to the Attorney General on the date on which the 
     amount is recovered; and
       ``(II) the amount of the costs of investigation awarded 
     under subsection (c), to reimburse the Board for the 
     activities of the Board relating to the civil action.

       ``(ii) Indian tribe.--In the case of a civil action 
     intitated under paragraph (1)(B), the Indian tribe may deduct 
     from the amount--

       ``(I) the amount of the cost of the civil action; and
       ``(II) reasonable attorney's fees.'';

       (6) in subsection (e), by striking ``(e) In the event 
     that'' and inserting the following:
       ``(e) Savings Provision.--If''; and
       (7) by striking subsection (f) and inserting the following:
       ``(f) Regulations.--Not later than 180 days after the date 
     of enactment of the Native American Omnibus Act of 2005, the 
     Board shall promulgate regulations to include in the 
     definition of the term `Indian product' examples of each 
     Indian product to provide guidance and notice to Indian 
     artisans, suppliers of the artisans, and consumers of Indian 
     arts and crafts.''.
       (c) Conforming Amendment.--Section 1159(c) of title 18, 
     United States Code, is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) the term `Indian tribe'--
       ``(A) has the meaning given the term in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b); and
       ``(B) includes an Indian group that has been formally 
     recognized as an Indian tribe by--
       ``(i) a State legislature;
       ``(ii) a State commission; or
       ``(iii) another similar organization vested with State 
     legislative tribal recognition authority; and''.

     SEC. 112. COLORADO RIVER INDIAN RESERVATION BOUNDARY 
                   CORRECTION.

       (a) Findings.--Congress finds that--
       (1) the Act of March 3, 1865, created the Colorado River 
     Indian Reservation along the Colorado River in Arizona and 
     California for the ``Indians of said river and its 
     tributaries'';
       (2) in 1873 and 1874, President Grant issued Executive 
     orders to expand the Reservation southward and to secure the 
     southern boundary of the Reservation at a clearly 
     recognizable geographic location in order to forestall 
     encroachment by non-Indians and conflicts with the Indians of 
     the Reservation;
       (3) in 1875, Chandler Robbins conducted the Robbins Survey, 
     delineating the new southern boundary of the Reservation, 
     which included the La Paz land as part of the Reservation;
       (4) on May 15, 1876, President Grant issued an Executive 
     order establishing the boundaries of the Reservation as the 
     boundaries delineated by the Robbins Survey;
       (5) in 1907, as a result of increasingly frequent 
     trespasses by miners and cattle and at the request of the 
     Bureau of Indian Affairs, the General Land Office provided 
     for a resurvey of the southern and southeastern areas of the 
     Reservation;

[[Page 3605]]

       (6) in 1914, the General Land Office accepted and approved 
     the Harrington Survey, which confirmed the boundaries that 
     were delineated by the Robbins Survey and established by 
     Executive order in 1876;
       (7) on November 19, 1915, the Secretary of the Interior 
     reversed the decision of the General Land Office to accept 
     the Harrington Survey, and, on the recommendation of the 
     Secretary on November 22, 1915, President Wilson issued 
     Executive Order 2273 to correct the error in location of the 
     southern boundary line of the Reservation, effectively 
     excluding the La Paz land from the Reservation;
       (8) historical evidence compiled by the Department of the 
     Interior supports the conclusion that--
       (A) the recommendation of the Secretary in 1915 that the 
     President issue an Executive order to correct an error in 
     locating the southern boundary was in error; and
       (B) the La Paz land should not have been excluded from the 
     Reservation; and
       (9) the La Paz land continues to hold cultural and 
     historical significance, as well as economic development 
     potential, for the Tribe, which has consistently sought to 
     have the La Paz land restored to the Reservation.
       (b) Purposes.--The purposes of this section are--
       (1) to correct the south boundary of the Reservation by 
     reestablishing the boundary as the boundary was delineated by 
     the Robbins Survey and affirmed by the Harrington Survey;
       (2) to restore the La Paz land to the Reservation, subject 
     to Federal law;
       (3) to provide for continued public access to the La Paz 
     land for recreational purposes; and
       (4) to require the Secretary to ensure that the Reservation 
     boundary, as corrected by this section, is resurveyed and 
     marked in accordance with the public system of surveys 
     extended over the land.
       (c) Definitions.--In this section:
       (1) Harrington survey.--The term ``Harrington Survey'' 
     means the survey of the Reservation conducted by Guy 
     Harrington in 1912.
       (2) La Paz land.--The term ``La Paz land'' means the 
     approximately 16,000 acres attributed to the Reservation by 
     the Robbins Survey.
       (3) Map.--The term ``Map'' means the map prepared by the 
     Secretary, acting through the Bureau of Land Management, 
     entitled ``Colorado River Indian Reservation Boundary 
     Correction'' and dated January 4, 2005.
       (4) Reservation.--The term ``Reservation'' means the 
     Colorado River Indian Reservation.
       (5) Robbins Survey.--The term ``Robbins Survey'' means the 
     survey of the Reservation conducted by Chandler Robbins in 
     1875.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (7) Tribe.--The term ``Tribe'' includes any tribe a member 
     of which resides on the Reservation.
       (d) Boundary correction.--
       (1) In general.--The boundaries of the Reservation shall 
     include the boundaries that were delineated by the Robbins 
     Survey, affirmed by the Harrington Survey, including the 
     approximately 15,375 acres of Federal land described as 
     ``Land Identified for Transfer to Colorado River Indian 
     Tribes'' on the Map.
       (2) Review.--The Map shall be available for review at the 
     Bureau of Land Management.
       (3) Resurvey and Marking.--The Secretary shall ensure that 
     the boundary described in paragraph (1) is surveyed and 
     clearly marked in accordance with the public system of 
     surveys extended over the land.
       (e) Restoration of Rights, Title, and Interest.--
       (1) In general.--Subject to paragraph (2) and other 
     provisions of Federal law, all right, title, and interest of 
     the United States to the land in the boundaries described in 
     subsection (d)(1) that were excluded from the Reservation 
     pursuant to Executive Order 2273 (relating to the southern 
     boundary line of the Reservation)--
       (A) are restored to the Reservation; and
       (B) shall be held in trust by the United States on behalf 
     of the Tribe.
       (2) Exclusions.--
       (A) State land.--The 2 parcels of land belonging to the 
     State of Arizona (totaling 320 acres and 520 acres, 
     respectively) that are identified on the Map as ``State 
     Land'' shall be excluded from the land described in paragraph 
     (1).
       (B) Water Rights.--The land described in subsection (d)(1) 
     shall not include any Federal reserve water right to surface 
     water or ground water from any source.
       (C) Public Access.--The public shall have continued access 
     to the land described in subsection (d)(1) for hunting and 
     other recreational purposes in existence on the date of 
     enactment of this Act, in accordance with any rule or 
     regulation promulgated by the Tribe.
       (D) Economic Activity.--
       (i) In General.--The land described in subsection (d)(1) 
     shall be subject to any right-of-way, easement, lease, or 
     mining claim in existence on the date of enactment of this 
     Act.
       (ii) Reclamation projects.--The United States reserves the 
     right to continue any reclamation project relating to the 
     land described in subsection (d)(1) in existence on the date 
     of enactment of this Act, including the right to access and 
     remove mineral materials for maintenance of the Colorado 
     River.
       (iii) Additional Rights-of-Way.--Notwithstanding any other 
     provision of law, the Secretary, in consultation with the 
     Tribe, shall grant any additional right-of-way (including an 
     expansion or renewal of an existing right-of-way) for a road, 
     utility, or another accommodation to an adjoining landowner 
     or holder of a right-of-way (or their successors and assigns) 
     if the Secretary determines that--

       (I) the proposed right-of-way is necessary to the 
     applicant;
       (II) the acquisition of the proposed right-of-way will not 
     cause significant harm to the Tribe; and
       (III) the proposed right-of-way--

       (aa) complies with part 169 of title 25, Code of Federal 
     Regulations; and
       (bb) is consistent with this subsection and other generally 
     applicable Federal laws unrelated to the acquisition of 
     interests on trust land.
       (iv) Exception for roads and utilities.--Section 169.3 of 
     title 25, Code of Federal Regulations, shall not apply to the 
     expansion or renewal of a right-of-way in existence on the 
     date of enactment of this Act for a road or utility.
       (v) Fees.--If the holder of a lease, easement, or right-of-
     way substantially complies with all terms of the lease, 
     easement, or right-of-way, the fees charged for the renewal 
     of the lease, easement, or right-of-way under this section 
     shall be not greater than the applicable Federal rate for 
     such a lease, easement, or right-of-way at the time of the 
     renewal.
       (e) Gaming.--Land taken into trust under this section shall 
     not--
       (1) be considered to have been taken into trust for gaming; 
     or
       (2) be used for gaming (as that term is used in the Indian 
     Gaming Regulatory Act (25 U.S.C. 2701 et seq.)).

     SEC. 113. NATIVE AMERICAN PROGRAMS ACT OF 1974.

       (a) Intra-Departmental Council on Native American 
     Affairs.--Section 803B(d)(1) of the Native American Programs 
     Act of 1974 (42 U.S.C. 2991b-2(d)(1)) is amended by striking 
     ``There'' and all that follows and inserting the following: 
     ``There is established in the Office of the Secretary the 
     Intra-Departmental Council on Native American Affairs. The 
     Commissioner and the Director of the Indian Health Service 
     shall serve as co-chairpersons of the Council. The co-
     chairpersons shall advise the Secretary on all matters 
     affecting Native Americans that involve the Department.''.
       (b) Authorization of Appropriations.--Section 816 of the 
     Native American Programs Act of 1974 (42 U.S.C. 2992d) is 
     amended--
       (1) by striking subsections (a) through (c) and inserting 
     the following:
       ``(a) In General.--There are authorized to be 
     appropriated--
       ``(1) to carry out section 803(d), $8,000,000 for each of 
     fiscal years 2006 through 2010; and
       ``(2) to carry out provisions of this title other than 
     section 803(d) and any other provision having an express 
     authorization of appropriations, such sums as are necessary 
     for each of fiscal years 2006 through 2010.
       ``(b) Limitation.--Not less than 90 percent of the funds 
     made available to carry out this title for a fiscal year 
     (other than funds made available to carry out sections 
     803(d), 803A, 803C, and 804, and any other provision of this 
     title having an express authorization of appropriations) 
     shall be expended to carry out section 803(a).'';
       (2) by redesignating subsection (d) as subsection (c); and
       (3) by striking subsection (e).
       (c) Reports.--Section 811A of the Native American Programs 
     Act of 1974 (42 U.S.C. 2992-1) is amended--
       (1) by striking the section heading and all that follows 
     through ``each year,'' and inserting the following:

     ``SEC. 811A. REPORTS.

       ``Every 5 years, the Secretary shall''; and
       (2) by striking ``an annual report'' and inserting ``a 
     report''.

     SEC. 114. RESEARCH AND EDUCATIONAL ACTIVITIES.

       Section 7205(a)(3) of the Native Hawaiian Education Act (20 
     U.S.C. 7515(a)(3)) is amended--
       (1) by redesignating subparagraphs (K) and (L) as 
     subparagraphs (L) and (M), respectively; and
       (2) by inserting after subparagraph (J) the following:
       ``(K) research and educational activities relating to 
     Native Hawaiian law;''.

                Subtitle B--Indian Education Provisions

     SEC. 121. DEFINITION OF INDIAN STUDENT COUNT.

       Section 117(h) of the Carl D. Perkins Vocational and 
     Technical Education Act of 1998 (20 U.S.C. 2327(h)) is 
     amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Indian student count.--
       ``(A) In general.--The term `Indian student count' means a 
     number equal to the total number of Indian students enrolled 
     in each tribally-controlled postsecondary vocational and 
     technical institution, as determined in accordance with 
     subparagraph (B).

[[Page 3606]]

       ``(B) Determination.--
       ``(i) Enrollment.--For each academic year, the Indian 
     student count shall be determined on the basis of the 
     enrollments of Indian students as in effect at the conclusion 
     of--

       ``(I) in the case of the fall term, the third week of the 
     fall term; and
       ``(II) in the case of the spring term, the third week of 
     the spring term.

       ``(ii) Calculation.--For each academic year, the Indian 
     student count for a tribally-controlled postsecondary 
     vocational and technical institution shall be the quotient 
     obtained by dividing--

       ``(I) the sum of the credit-hours of all Indian students 
     enrolled in the tribally-controlled postsecondary vocational 
     and technical institution (as determined under clause (i)); 
     divided by
       ``(II) 12.

       ``(iii) Summer term.--Any credit earned in a class offered 
     during a summer term shall be counted in the determination of 
     the Indian student count for the succeeding fall term.
       ``(iv) Students without secondary school degrees.--

       ``(I) In general.--A credit earned at a tribally-controlled 
     postsecondary vocational and technical institution by any 
     Indian student that has not obtained a secondary school 
     degree (or the recognized equivalent of such a degree) shall 
     be counted toward the determination of the Indian student 
     count if the institution at which the student is enrolled has 
     established criteria for the admission of the student on the 
     basis of the ability of the student to benefit from the 
     education or training of the institution.
       ``(II) Presumption.--The institution shall be presumed to 
     have established the criteria described in subclause (I) if 
     the admission procedures for the institution include 
     counseling or testing that measures the aptitude of a student 
     to successfully complete a course in which the student is 
     enrolled.
       ``(III) Credits toward secondary school degree.--No credit 
     earned by an Indian student for the purpose of obtaining a 
     secondary school degree (or the recognized equivalent of such 
     a degree) shall be counted toward the determination of the 
     Indian student count under this clause.

       ``(v) Continuing education programs.--Any credit earned by 
     an Indian student in a continuing education program of a 
     tribally-controlled postsecondary vocational and technical 
     institution shall be included in the determination of the sum 
     of all credit hours of the student if the credit is converted 
     to a credit-hour basis in accordance with the system of the 
     institution for providing credit for participation in the 
     program.''.

     SEC. 122. NATIVE NATIONS LEADERSHIP, MANAGEMENT, AND POLICY.

       (a) Findings.--Congress finds that--
       (1) the policy of the United States favors self-
     determination for Indian tribes;
       (2) consistent with the policy described in paragraph (1), 
     Indian tribes are increasingly taking control of the affairs 
     of the tribes in order to realize in practice most of the 
     status afforded the tribes in treaties, court decisions, and 
     legislation;
       (3) as a result of the increasing control of the tribes, 
     tribes require enhanced leadership preparation and greater 
     access to information relating to research and analysis of 
     successful models for tribal government and business 
     operations, similar to the information regularly available to 
     Federal, State, and local government agencies;
       (4) enabling Indian tribes to develop strong leadership and 
     governing policy is consistent with Federal policy supporting 
     tribal self-determination and increases the likelihood that 
     tribal governments will achieve political and economic self-
     determination; and
       (5) during the last 5 years, the Morris K. Udall 
     Scholarship and Excellence in National Environmental Policy 
     Foundation, in cooperation with the Native Nations Institute 
     at the University of Arizona, pursuant to section 6(7) of the 
     Morris K. Udall Scholarship and Excellence in National 
     Environmental and Native American Public Policy Act of 1992 
     (20 U.S.C. 5604(7)), has provided to Indian tribes the 
     leadership and management training, policy analysis, and 
     research of the quality and type required to assist Indian 
     tribes to achieve self-determination.
       (b) Definitions.--Section 4 of the Morris K. Udall 
     Scholarship and Excellence in National Environmental and 
     Native American Public Policy Act of 1992 (20 U.S.C. 5602) is 
     amended--
       (1) by redesignating paragraphs (6) through (9) as 
     paragraphs (7) through (10), respectively; and
       (2) by inserting after paragraph (5) the following:
       ``(6) the terms `Indian tribe' and `tribe' have the meaning 
     given the term `Indian tribe' in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b);''.
       (c) Authority of Foundation.--Section 7(a)(1) of the Morris 
     K. Udall Scholarship and Excellence in National Environmental 
     and Native American Public Policy Act of 1992 (20 U.S.C. 
     5605(a)(1)) is amended by striking subparagraph (C) and 
     inserting the following:
       ``(C) Fields of study.--
       ``(i) In general.--The Foundation may award scholarships, 
     fellowships, internships, and grants to eligible individuals 
     in accordance with this Act for study in fields relating to 
     the environment and Native American and Alaska Native health 
     care and tribal public policy.
       ``(ii) Minimum criteria.--A scholarship, fellowship, 
     internship, or grant awarded under this section shall be 
     awarded to an eligible individual that meets the minimum 
     criteria established by the Foundation.
       ``(iii) State-recognized tribes, bands, nations, and 
     groups.--Notwithstanding the definition of `Indian tribe' 
     under section 4, the Foundation may make an award under this 
     section to an individual that is a member of a Native 
     American tribe, band, nation, or other organized group or 
     community that is recognized by a State.''.
       (d) Authorization of Appropriations.--Section 13 of the 
     Morris K. Udall Scholarship and Excellence in National 
     Environmental and Native American Public Policy Act of 1992 
     (20 U.S.C. 5609) is amended by striking subsection (c) and 
     inserting the following:
       ``(c) Training in Tribal Leadership, Management, and 
     Policy.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out section 6(7)--
       ``(A) $2,500,000 for each of fiscal years 2007 and 2008;
       ``(B) $4,000,000 for each of fiscal years 2009 and 2010; 
     and
       ``(C) $13,500,000 for each of fiscal years 2011 through 
     2016.
       ``(2) Limitations.--An appropriation made pursuant to this 
     subsection shall not be subject to section 7(c).''.

                    Subtitle C--Border Preparedness

     SEC. 132. BORDER PREPAREDNESS ON INDIAN LAND.

       Subtitle D of title IV of the Homeland Security Act of 2002 
     (6 U.S.C. 251 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 447. BORDER PREPAREDNESS PILOT PROGRAM ON INDIAN LAND.

       ``(a) Definitions.--In this section:
       ``(1) Indian land.--The term `Indian land' means--
       ``(A) all land within the boundaries of any Indian 
     reservation; and
       ``(B) any land the title to which is--
       ``(i) held in trust by the United States for the benefit of 
     an Indian tribe or individual; or
       ``(ii) held by any Indian tribe or individual--

       ``(I) subject to a restriction by the United States against 
     alienation; and
       ``(II) over which an Indian tribe exercises governmental 
     authority.

       ``(2) Indian tribe.--The term `Indian tribe' means any 
     Indian tribe, band, nation, or other organized group or 
     community that is recognized by the Secretary as--
       ``(A) eligible for the special programs and services 
     provided by the United States to Indians because of their 
     status as Indians; and
       ``(B) possessing powers of self-government.
       ``(3) Tribal government.--The term `tribal government' 
     means the governing body of an Indian tribe.
       ``(b) Purpose.--The purpose of this section is to require 
     the Secretary, acting through the Under Secretary for Border 
     and Transportation Security, to establish a pilot program for 
     tribal governments on Indian land located on or near the 
     border of the United States with Canada or Mexico in order 
     to--
       ``(1) facilitate the coordination of the response of an 
     Indian tribe to a threat to the security of an international 
     border of the United States with the responses of Federal, 
     State, and local governments;
       ``(2) enhance the capability of an Indian tribe as a first 
     responder to an illegal crossing of an immigrant over an 
     international border of the United States; and
       ``(3) provide assistance to Indian tribes in the use by the 
     tribes of effective aerial and ground surveillance 
     technologies, integrated communication systems and equipment, 
     and personnel training.
       ``(c) Pilot Program.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of this section, the Secretary, acting through 
     the Undersecretary for Border and Transportation Security, 
     shall provide funds and other assistance to tribal 
     governments in accordance with the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 450 et seq.).
       ``(2) Use of funds and assistance.--
       ``(A) In general.--A tribal government shall use any funds 
     or assistance provided under paragraph (1) consistent with 
     the purposes of this section.
       ``(B) Administration by tribal governments.--A tribal 
     government that receives any funds or assistance under 
     paragraph (1) shall administer the funds or assistance in 
     accordance with the Indian Self-Determination and Education 
     Assistance Act (25 U.S.C. 450 et seq.).
       ``(3) Selection criteria.--In selecting a tribal government 
     to receive funds or assistance under paragraph (1), the 
     Secretary may take into consideration--
       ``(A) the distance between the Indian land in the 
     jurisdiction of the tribal government and an international 
     border of the United States;
       ``(B) the extent to which a border enforcement effort 
     effects the resources of the Indian tribe; and
       ``(C) the interests of the Indian tribe.
       ``(d) Reports.--
       ``(1) Tribal governments.--

[[Page 3607]]

       ``(A) In general.--Not later than 1 year after receiving 
     funds or assistance under subsection (c), a tribal government 
     shall submit to the Secretary a report in such a manner and 
     containing such information as the Secretary may require.
       ``(B) Inclusion.--A report under subparagraph (A) shall 
     include a description of--
       ``(i) any funds or assistance received by the tribal 
     government under this section;
       ``(ii) the use of the funds or assistance by the tribal 
     government; and
       ``(iii) any obstacle encountered by the tribal government 
     in administering the funds or assistance.
       ``(2) Secretary.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report describing--
       ``(A) the information contained in the reports under 
     paragraph (1);
       ``(B) the degree of success of the Secretary in 
     implementing the pilot program; and
       ``(C) any recommendation, including a legislative 
     recommendation, of the Secretary relating to the pilot 
     program.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2006 through 
     2008.''.

    TITLE II--OTHER AMENDMENTS TO LAWS RELATING TO NATIVE AMERICANS

                    Subtitle A--Indian Land Leasing

     SEC. 201. AUTHORIZATION OF 99-YEAR LEASES.

       (a) In General.--Subsection (a) of the first section of the 
     Act of August 9, 1955 (25 U.S.C. 415(a)), is amended in the 
     second sentence--
       (1) by striking ``Moapa Indian reservation'' and inserting 
     ``Moapa Indian Reservation,'';
       (2) by inserting ``the reservation of the Confederated 
     Tribes of the Umatilla Indian Reservation,'' before ``the 
     Burns Paiute Reservation,'';
       (3) by inserting ``the'' before ``Yavapai-Prescott'';
       (4) by inserting ``the Muckleshoot Indian Reservation and 
     land held in trust for the Muckleshoot Indian Tribe,'' after 
     ``the Cabazon Indian reservation,'';
       (5) by striking ``Washington,,'' and inserting 
     ``Washington,'';
       (6) by inserting ``land held in trust for the Prairie Band 
     Potawatomi Nation,'' before ``land held in trust for the 
     Cherokee Nation of Oklahoma'';
       (7) by inserting ``land held in trust for the Fallon Paiute 
     Shoshone Tribes,'' before ``land held in trust for the Pueblo 
     of Santa Clara''; and
       (8) by inserting ``land held in trust for the Yurok Tribe, 
     land held in trust for the Hopland Band of Pomo Indians of 
     the Hopland Rancheria,'' after ``Pueblo of Santa Clara,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to any lease entered into or renewed after the 
     date of enactment of this Act.

     SEC. 202. CERTIFICATION OF RENTAL PROCEEDS.

       Notwithstanding any other provision of law, any actual 
     rental proceeds from the lease of land acquired under section 
     1 of Public Law 91-229 (25 U.S.C. 488) certified by the 
     Secretary of the Interior shall be deemed--
       (1) to constitute the rental value of that land; and
       (2) to satisfy the requirement for appraisal of that land.

                 Subtitle B--Navajo Health Contracting

     SEC. 211. NAVAJO HEALTH CONTRACTING.

       The Navajo Health Foundation/Sage Memorial Hospital in 
     Ganado, Arizona, shall be considered to be a tribal 
     contractor under the Indian Self-Determination and Education 
     Assistance Act for the purposes of section 102(d) and 
     subsections (k) and (o) of section 105 of that Act (25 U.S.C. 
     450f(d), 450j) provided that the Hospital remains the 
     authorized tribal organization (as defined in section 4 of 
     that Act (25 U.S.C. 450b)) of the Navajo Nation.

                Subtitle C--Probate Technical Correction

     SEC. 221. PROBATE REFORM.

       (a) Nontestamentary Disposition.--Subsection 
     (a)(2)(D)(iv)(I)(aa) of section 207 of the Indian Land 
     Consolidation Act (25 U.S.C. 2206) (as amended by section 
     3(a) of the American Indian Probate Reform Act of 2004 
     (Public Law 108-374)) is amended--
       (1) by striking ``clause (iii)'' and inserting ``this 
     subparagraph''; and
       (2) in subitem (BB), by striking ``any co-owner'' and 
     inserting ``not more than 1 co-owner''.
       (b) Applicable Federal Law.--Subsection (h)(2) of section 
     207 of the Indian Land Consolidation Act (25 U.S.C. 2206) (as 
     amended by section 3(d) of the American Indian Probate Reform 
     Act of 2004 (Public Law 108-374)) is amended--
       (1) by inserting ``specifically'' after ``pertains''; and
       (2) in subparagraph (B), by striking ``allotted lands'' and 
     inserting ``trust or restricted allotments''.
       (c) Partition of Highly Fractionated Indian Land.--
     Subsection (d) of section 205 of the Indian Land 
     Consolidation Act (25 U.S.C. 2204) (as amended by section 4 
     of the American Indian Probate Reform Act of 2004 (Public Law 
     108-374)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (G)(ii)(I), by striking ``a higher 
     value of the land'' and inserting ``a value of the land that 
     is equal to or greater than that of the earlier appraisal''; 
     and
       (B) in subparagraph (I)(iii)--
       (i) in subclause (III), by inserting ``(if any)'' after 
     ``this section''; and
       (ii) in subclause (IV)(bb), by striking ``to implement this 
     section'' and inserting ``under paragraph (5)''; and
       (2) in the second sentence of paragraph (5), by striking 
     ``shall'' and inserting ``may''.
       (d) Purchase Option at Probate.--Subsection (p)(6) of 
     section 207 of the Indian Land Consolidation Act (25 U.S.C. 
     2206) (as added by section 6(a)(2) of the American Indian 
     Probate Reform Act of 2004 (Public Law 108-374)) is amended--
       (1) in the first sentence, by striking ``Proceeds'' and 
     inserting the following:
       ``(A) In general.--Proceeds''; and
       (2) by striking the second sentence and inserting the 
     following:
       ``(B) Holding in trust.--Proceeds described in subparagraph 
     (A) shall be deposited and held in an account as trust 
     personalty if the interest sold would otherwise pass to--
       ``(i) the heir, by intestate succession under subsection 
     (a); or
       ``(ii) the devisee in trust or restricted status under 
     subsection (b)(1).''.
       (e) Tribal Probate Codes.--Section 206 of the Indian Land 
     Consolidation Act (25 U.S.C. 2205) is amended--
       (1) in subsection (b)(3), by striking subparagraph (A) and 
     inserting the following:
       ``(A) the date that is 1 year after the date on which the 
     Secretary makes the certification required under section 
     8(a)(4) of the American Indian Probate Reform Act of 2004; 
     or''; and
       (2) in paragraph (2)(A)(i)(II)(bb) of subsection (c) (as 
     amended by section 6(a)(3) of the American Indian Probate 
     Reform Act of 2004 (Public Law 108-374)), by inserting ``in 
     writing'' after ``agrees''.
       (f) Effective Date.--The amendments made by this section 
     take effect as if included in the American Indian Probate 
     Reform Act of 2004 (Public Law 108-374).
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 537. A bill to increase the number of well-trained mental health 
service professionals (including those based in schools) providing 
clinical mental health care to children and adolescents, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. BINGAMAN. Mr. President, the landmark report Mental Health: A 
Report of the Surgeon General brought the hidden mental health crisis 
to the attention of the U.S. public. According to that report, 13.7 
million of the Nation's children and adolescents, twenty percent, have 
a diagnosable mental disorder, the most common of which include Anxiety 
Disorder, Attention Deficit/Hyperactivity Disorder (ADHD) and 
Depression. Unfortunately, only one out of five of those in need will 
receive mental health care. One of the primary reasons for this across 
the Nation is that mental health services to help treat children are in 
short supply. Long waiting lists for children seeking care, even those 
in crisis, are not uncommon. In New Mexico, it's estimated that 56,000 
children and adolescents have a mental or emotional disorder. Of these, 
almost 20,000 have serious emotional disorders. As of June 2003, there 
were only 13 licensed child and adolescent psychiatrists to serve the 
entire State of New Mexico. In addition, there are fewer trained 
psychologists and social workers per 100,000 population in New Mexico 
than the country as a whole. Children with untreated mental disorders 
are at a higher risk for school failure and dropping out, violence, 
drug abuse, suicide, and criminal activity. A 2002 report documented 
that approximately one in seven youth in New Mexico detention centers 
incarcerated because mental health care is not available. From January 
to December 2001, 718 New Mexico youth were collectively incarcerated 
for 31.3 years just to wait for a mental health treatment opening. 
Clearly, something needs to be done to address this growing shortage of 
these important health professionals.
  The Surgeon General states that there is a dearth of child 
psychiatrists, appropriately trained clinical child psychologists, or 
social workers. Nationwide, 3,543 urban, suburban, and rural localities 
have been designated Mental Health Professional Shortage Areas by the 
Federal Government due to their severe lack of psychiatrists, 
psychologists, social workers and other professionals to serve children 
and adults. According to the U.S. Bureau of Health Professions, the 
demand for the

[[Page 3608]]

services of child and adolescent psychiatrists is projected to increase 
by 100 percent by 2020, while the number of these professionals is 
expected to increase by only 30 percent resulting in a shortage of over 
4,000 child and adolescent psychiatrists by that year. The National 
Center for Education Statistics within the U.S. Department of Education 
reports that the national average student-to-school counselor ratio in 
U.S. schools is 513:1, more than double the recommended ratio of 250:1.
  In the United States, there are approximately 7,000 child and 
adolescent psychiatrists and only 300 new child and adolescent 
psychiatrists are trained each year. In 2000, the Bureau of Health 
Professions projected that between 1995 and 2020, the use of child and 
adolescent psychiatrists will increase by 100 percent.
  While the Nation as a whole is experiencing a shortage of mental 
health professionals, the problem is most acute in the rural areas. In 
NM for example, 4/5 of the psychiatrists in NM are located in 
Bernalillo and Santa Fe Counties. This area is also home to 70 percent 
of the psychologists, 53 percent of counselors and 47 percent of the 
social workers--leaving the rest of the State at a severe disadvantage.
  It is in response to the mental health workforce crisis that I rise 
with my colleagues Senator Collins of Maine, Senator Harkin of Iowa, 
Senator Dodd of Connecticut, Senator Kennedy from Massachusetts, 
Senator Reed from Rhode Island and Senator Sarbanes of Maryland, to 
offer The Child Healthcare Crisis Relief Act. This bill creates 
incentives to help recruit and retain child mental health professionals 
providing direct clinical care, and to improve, expand, or help create 
programs to train child mental health professionals. It provides loan 
repayment and scholarships for child mental health and school-based 
service professionals as well as internships and field placements in 
child mental health services and training for paraprofessionals who 
work in children's mental health clinical settings. This bill also 
provides grants to graduate schools to help develop and expand child 
and adolescent mental health programs. It allows for an increase in the 
number of Child and Adolescent Psychiatrists permitted under the 
Medicare Graduate Medical Education Program and, extends the Board 
Eligibility period for residents and fellows from four years to six 
years.
  Finally, this bill asks the Secretary to prepare a report on the 
distribution and need for child mental health and school-based 
professionals with respect to specialty certifications, practice 
characteristics, professional licensure, practice types, locations, 
education, and training, broken down by State so that we may better 
comprehend the mental health workforce needs that are facing our 
Nation.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 537

       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 ``Child Health Care Crisis 
     Relief Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The Center for Mental Health Services estimates that 20 
     percent or 13,700,000 of the Nation's children and 
     adolescents have a diagnosable mental health disorder, and 
     about \2/3\ of these children and adolescents do not receive 
     mental health care.
       (2) According to ``Mental Health: A Report of the Surgeon 
     General'' in 1999, there are approximately 6,000,000 to 
     9,000,000 children and adolescents in the United States 
     (accounting for 9 to 13 percent of all children and 
     adolescents in the United States) who meet the definition for 
     having a serious emotional disturbance.
       (3) According to the Center for Mental Health Services, 
     approximately 5 to 9 percent of children and adolescents in 
     the United States meet the definition for extreme functional 
     impairment.
       (4) According to the Surgeon General's Report, there are 
     particularly acute shortages in the numbers of mental health 
     service professionals serving children and adolescents with 
     serious emotional disorders.
       (5) According to the National Center for Education 
     Statistics in the Department of Education, there are 
     approximately 513 students for each school counselor in 
     United States schools, which ratio is more than double the 
     recommended ratio of 250 students for each school counselor.
       (6) According to a year 2000 estimate of the Bureau of 
     Health Professions, the demand for the services of child and 
     adolescent psychiatry is projected to increase by 100 percent 
     by 2020.
       (7) The development and application of knowledge about the 
     impact of disasters on children, adolescents, and their 
     families has been impeded by critical shortages of qualified 
     researchers and practitioners specializing in this work.
       (8) According to the Bureau of the Census, the population 
     of children and adolescents in the United States under the 
     age of 18 is projected to grow by more than 40 percent, from 
     70,000,000 to more than 100,000,000 by 2050.

     SEC. 3. LOAN REPAYMENTS, SCHOLARSHIPS, AND GRANTS TO IMPROVE 
                   CHILD AND ADOLESCENT MENTAL HEALTH CARE.

       Subpart 2 of part E of title VII of the Public Health 
     Service Act (42 U.S.C. 295 et seq.) is amended by adding at 
     the end the following:

     ``SEC. 771. LOAN REPAYMENTS, SCHOLARSHIPS, AND GRANTS TO 
                   IMPROVE CHILD AND ADOLESCENT MENTAL HEALTH 
                   CARE.

       ``(a) Loan Repayments for Child and Adolescent Mental 
     Health Service Professionals.--
       ``(1) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, may establish a program of entering into 
     contracts on a competitive basis with eligible individuals 
     (as defined in paragraph (2)) under which--
       ``(A) the eligible individual agrees to be employed full-
     time for a specified period of at least 2 years in providing 
     mental health services to children and adolescents; and
       ``(B) the Secretary agrees to make, during the period of 
     employment described in subparagraph (A), partial or total 
     payments on behalf of the individual on the principal and 
     interest due on the undergraduate and graduate educational 
     loans of the eligible individual.
       ``(2) Eligible individual.--For purposes of this section, 
     the term `eligible individual' means an individual who--
       ``(A) is receiving specialized training or clinical 
     experience in child and adolescent mental health in 
     psychiatry, psychology, school psychology, psychiatric 
     nursing, social work, school social work, marriage and family 
     therapy, school counseling, or professional counseling and 
     has less than 1 year remaining before completion of such 
     training or clinical experience; or
       ``(B)(i) has a license in a State to practice allopathic 
     medicine, osteopathic medicine, psychology, school 
     psychology, psychiatric nursing, social work, school social 
     work, marriage and family therapy, school counseling, or 
     professional counseling; and
       ``(ii)(I) is a mental health service professional who 
     completed (but not before the end of the calendar year in 
     which this section is enacted) specialized training or 
     clinical experience in child and adolescent mental health 
     services described in subparagraph (A); or
       ``(II) is a physician who graduated from (but not before 
     the end of the calendar year in which this section is 
     enacted) an accredited child and adolescent psychiatry 
     residency or fellowship program in the United States.
       ``(3) Additional eligibility requirements.--The Secretary 
     may not enter into a contract under this subsection with an 
     eligible individual unless the individual--
       ``(A) is a United States citizen or a permanent legal 
     United States resident; and
       ``(B) if enrolled in a graduate program (including a 
     medical residency or fellowship), has an acceptable level of 
     academic standing as determined by the Secretary.
       ``(4) Priority.--In entering into contracts under this 
     subsection, the Secretary shall give priority to applicants 
     who--
       ``(A) are or will be working with high priority 
     populations;
       ``(B) have familiarity with evidence-based methods in child 
     and adolescent mental health services;
       ``(C) demonstrate financial need; and
       ``(D) are or will be--
       ``(i) working in the publicly funded sector;
       ``(ii) working in organizations that serve underserved 
     populations; or
       ``(iii) willing to provide patient services--

       ``(I) regardless of the ability of a patient to pay for 
     such services; or
       ``(II) on a sliding payment scale if a patient is unable to 
     pay the total cost of such services.

       ``(5) Meaningful loan repayment.--If the Secretary 
     determines that funds appropriated for a fiscal year to carry 
     out this subsection are not sufficient to allow a meaningful 
     loan repayment to all expected applicants, the Secretary 
     shall limit the number of contracts entered into under 
     paragraph (1) to ensure that each such contract provides for 
     a meaningful loan repayment.
       ``(6) Amount.--
       ``(A) Maximum.--For each year of the employment period 
     described in paragraph

[[Page 3609]]

     (1)(A), the Secretary shall not, under a contract described 
     in paragraph (1), pay more than $35,000 on behalf of an 
     individual.
       ``(B) Consideration.--In determining the amount of payments 
     to be made on behalf of an eligible individual under a 
     contract described in paragraph (1), the Secretary shall 
     consider the income and debt load of the eligible individual.
       ``(7) Applicability of certain provisions.--The provisions 
     of sections 338E and 338F shall apply to the program 
     established under paragraph (1) to the same extent and in the 
     same manner as such provisions apply to the National Health 
     Service Corps Loan Repayment Program established in subpart 
     III of part D of title III.
       ``(8) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2006 through 2010.
       ``(b) Scholarships for Students Studying to Become Child 
     and Adolescent Mental Health Service Professionals.--
       ``(1) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, may establish a program to award scholarships 
     on a competitive basis to eligible students who agree to 
     enter into full-time employment (as described in paragraph 
     (4)(C)) as a child and adolescent mental health service 
     professional after graduation or completion of a residency or 
     fellowship.
       ``(2) Eligible student.--For purposes of this subsection, 
     the term `eligible student' means a United States citizen or 
     a permanent legal United States resident who--
       ``(A) is enrolled or accepted to be enrolled in a graduate 
     program that includes specialized training or clinical 
     experience in child and adolescent mental health in 
     psychology, school psychology, psychiatric nursing, social 
     work, school social work, marriage and family therapy, school 
     counseling, or professional counseling; or
       ``(B) is enrolled or accepted to be enrolled in an 
     accredited graduate training program of allopathic or 
     osteopathic medicine in the United States and intends to 
     complete an accredited residency or fellowship in child and 
     adolescent psychiatry.
       ``(3) Priority.--In awarding scholarships under this 
     subsection, the Secretary shall give--
       ``(A) highest priority to applicants who previously 
     received a scholarship under this subsection and satisfy the 
     criteria described in subparagraph (B); and
       ``(B) second highest priority to applicants who--
       ``(i) demonstrate a commitment to working with high 
     priority populations;
       ``(ii) have familiarity with evidence-based methods in 
     child and adolescent mental health services;
       ``(iii) demonstrate financial need; and
       ``(iv) are or will be--

       ``(I) working in the publicly funded sector;
       ``(II) working in organizations that serve underserved 
     populations; or
       ``(III) willing to provide patient services--

       ``(aa) regardless of the ability of a patient to pay for 
     such services; or
       ``(bb) on a sliding payment scale if a patient is unable to 
     pay the total cost of such services.
       ``(4) Requirements.--The Secretary may award a scholarship 
     to an eligible student under this subsection only if the 
     eligible student agrees--
       ``(A) to complete any graduate training program, 
     internship, residency, or fellowship applicable to that 
     eligible student under paragraph (2);
       ``(B) to maintain an acceptable level of academic standing 
     (as determined by the Secretary) during the completion of 
     such graduate training program, internship, residency, or 
     fellowship; and
       ``(C) to be employed full-time after graduation or 
     completion of a residency or fellowship, for at least the 
     number of years for which a scholarship is received by the 
     eligible student under this subsection, in providing mental 
     health services to children and adolescents.
       ``(5) Use of scholarship funds.--A scholarship awarded to 
     an eligible student for a school year under this subsection 
     may be used to pay for only tuition expenses of the school 
     year, other reasonable educational expenses (including fees, 
     books, and laboratory expenses incurred by the eligible 
     student in the school year), and reasonable living expenses, 
     as such tuition expenses, reasonable educational expenses, 
     and reasonable living expenses are determined by the 
     Secretary.
       ``(6) Amount.--The amount of a scholarship under this 
     subsection shall not exceed the total amount of the tuition 
     expenses, reasonable educational expenses, and reasonable 
     living expenses described in paragraph (5).
       ``(7) Applicability of certain provisions.--The provisions 
     of sections 338E and 338F shall apply to the program 
     established under paragraph (1) to the same extent and in the 
     same manner as such provisions apply to the National Health 
     Service Corps Scholarship Program established in subpart III 
     of part D of title III.
       ``(8) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2006 through 2010.
       ``(c) Clinical Training Grants for Professionals.--
       ``(1) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, and in cooperation with the Administrator of 
     the Substance Abuse and Mental Health Services 
     Administration, may establish a program to award grants on a 
     competitive basis to accredited institutions of higher 
     education to establish or expand internships or other field 
     placement programs for students receiving specialized 
     training or clinical experience in child and adolescent 
     mental health in the fields of psychiatry, psychology, school 
     psychology, psychiatric nursing, social work, school social 
     work, marriage and family therapy, school counseling, or 
     professional counseling.
       ``(2) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority to applicants that--
       ``(A) have demonstrated the ability to collect data on the 
     number of students trained in child and adolescent mental 
     health and the populations served by such students after 
     graduation;
       ``(B) have demonstrated familiarity with evidence-based 
     methods in child and adolescent mental health services; and
       ``(C) have programs designed to increase the number of 
     professionals serving high priority populations.
       ``(3) Requirements.--The Secretary may award a grant to an 
     applicant under this subsection only if the applicant agrees 
     that--
       ``(A) any internship or other field placement program 
     assisted under the grant will prioritize cultural competency;
       ``(B) students benefitting from any assistance under this 
     subsection will be United States citizens or permanent legal 
     United States residents;
       ``(C) the institution will provide to the Secretary such 
     data, assurances, and information as the Secretary may 
     require; and
       ``(D) with respect to any violation of the agreement 
     between the Secretary and the institution, the institution 
     will pay such liquidated damages as prescribed by the 
     Secretary by regulation.
       ``(4) Application.--Each institution of higher education 
     desiring a grant under this section shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require 
     including a description of the experience of such institution 
     in working with child and adolescent mental health issues.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $10,000,000 
     for each of fiscal years 2006 through 2010.
       ``(d) Progressive Education Grants for Paraprofessionals.--
       ``(1) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, and in cooperation with the Administrator of 
     the Substance Abuse and Mental Health Services 
     Administration, may establish a program to award grants on a 
     competitive basis to State-licensed mental health nonprofit 
     and for-profit organizations, including accredited 
     institutions of higher education, (in this subsection 
     referred to as `organizations') to enable such organizations 
     to pay for programs for preservice or in-service training of 
     paraprofessional child and adolescent mental health workers.
       ``(2) Definition.--For purposes of this subsection, the 
     term `paraprofessional child and adolescent mental health 
     worker' means an individual who is not a mental health 
     service professional, but who works at the first stage of 
     contact with children and families who are seeking mental 
     health services.
       ``(3) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority to organizations that--
       ``(A) have demonstrated the ability to collect data on the 
     number of paraprofessional child and adolescent mental health 
     workers trained by the applicant and the populations served 
     by these workers after the completion of the training;
       ``(B) have familiarity with evidence-based methods in child 
     and adolescent mental health services; and
       ``(C) have programs designed to increase the number of 
     paraprofessional child and adolescent mental health workers 
     serving high priority populations.
       ``(4) Requirements.--The Secretary may award a grant to an 
     organization under this subsection only if the organization 
     agrees that--
       ``(A) any training program assisted under the grant will 
     prioritize cultural competency;
       ``(B) the organization will provide to the Secretary such 
     data, assurances, and information as the Secretary may 
     require; and
       ``(C) with respect to any violation of the agreement 
     between the Secretary and the organization, the organization 
     will pay such liquidated damages as prescribed by the 
     Secretary by regulation.
       ``(5) Application.--Each organization desiring a grant 
     under this subsection shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require including a 
     description of the experience of the organization in working 
     with paraprofessional child and adolescent mental health 
     workers.

[[Page 3610]]

       ``(6) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $5,000,000 
     for each of fiscal years 2006 through 2010.
       ``(e) Child and Adolescent Mental Health Program 
     Development Grants.--
       ``(1) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, may establish a program to increase the 
     number of well-trained child and adolescent mental health 
     service professionals in the United States by awarding grants 
     on a competitive basis to accredited institutions of higher 
     education to enable such institutions to establish or expand 
     accredited graduate child and adolescent mental health 
     programs.
       ``(2) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority to applicants that--
       ``(A) demonstrate familiarity with the use of evidence-
     based methods in child and adolescent mental health services;
       ``(B) provide experience in and collaboration with 
     community-based child and adolescent mental health services;
       ``(C) have included normal child development education in 
     their curricula; and
       ``(D) demonstrate commitment to working with high priority 
     populations.
       ``(3) Use of funds.--Funds awarded under this subsection 
     may be used to establish or expand any accredited graduate 
     child and adolescent mental health program in any manner 
     deemed appropriate by the Secretary, including improving the 
     coursework, related field placements, or faculty of such 
     program.
       ``(4) Requirements.--The Secretary may award a grant to an 
     accredited institution of higher education under this 
     subsection only if the institution agrees that--
       ``(A) any child and adolescent mental health program 
     assisted under the grant will prioritize cultural competency;
       ``(B) the institution will provide to the Secretary such 
     data, assurances, and information as the Secretary may 
     require; and
       ``(C) with respect to any violation of the agreement 
     between the Secretary and the institution, the institution 
     will pay such liquidated damages as prescribed by the 
     Secretary by regulation.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $15,000,000 
     for each of fiscal years 2006 through 2010.
       ``(f) Definitions.--In this section:
       ``(1) High priority population.--The term `high priority 
     population' means a population that has a significantly 
     greater incidence than the national average of children who 
     have serious emotional disturbances, children who are racial 
     and ethnic minorities, or children who live in underserved 
     urban or rural areas.
       ``(2) Mental health service professional.--The term `mental 
     health service professional' means an individual with a 
     graduate or postgraduate degree from an accredited 
     institution of higher education in psychiatry, psychology, 
     school psychology, psychiatric nursing, social work, school 
     social work, marriage and family counseling, school 
     counseling, or professional counseling.
       ``(3) Specialized training or clinical experience in child 
     and adolescent mental health.--The term `specialized training 
     or clinical experience in child and adolescent mental health' 
     means training and clinical experience that--
       ``(A) is part of or occurs after completion of an 
     accredited graduate program in the United States for training 
     mental health service professionals;
       ``(B) consists of at least 500 hours of training or 
     clinical experience in treating children and adolescents; and
       ``(C) is comprehensive, coordinated, developmentally 
     appropriate, and of high quality to address the unique ethnic 
     and cultural diversity of the United States population.''.

     SEC. 4. AMENDMENTS TO SOCIAL SECURITY ACT TO IMPROVE CHILD 
                   AND ADOLESCENT MENTAL HEALTH CARE.

       (a) Increasing Number of Child and Adolescent Psychiatry 
     Residents Permitted to Be Paid Under the Medicare Graduate 
     Medical Education Program.--Section 1886(h)(4)(F) of the 
     Social Security Act (42 U.S.C. 1395ww(h)(4)(F)) is amended by 
     adding at the end the following:
       ``(iii) Increase allowed for training in child and 
     adolescent psychiatry.--In applying clause (i), there shall 
     not be taken into account such additional number of full-time 
     equivalent residents in the field of allopathic or 
     osteopathic medicine who are residents or fellows in child 
     and adolescent psychiatry as the Secretary determines 
     reasonable to meet the need for such physicians as 
     demonstrated by the 1999 report of the Department of Health 
     and Human Services entitled `Mental Health: A Report of the 
     Surgeon General'.''.
       (b) Extension of Medicare Board Eligibility Period for 
     Residents and Fellows in Child and Adolescent Psychiatry.--
       (1) In general.--Section 1886(h)(5)(G) of the Social 
     Security Act (42 U.S.C. 1395ww(h)(5)(G)) is amended--
       (A) in clause (i), by striking ``and (v)'' and inserting 
     ``(v), and (vi)''; and
       (B) by adding at the end the following:
       ``(vi) Child and adolescent psychiatry training programs.--
     In the case of an individual enrolled in a child and 
     adolescent psychiatry residency or fellowship program 
     approved by the Secretary, the period of board eligibility 
     and the initial residency period shall be the period of board 
     eligibility for the specialty of general psychiatry, plus 2 
     years for the subspecialty of child and adolescent 
     psychiatry.''.
       (2) Conforming amendment.--Section 1886(h)(5)(F) of the 
     Social Security Act (42 U.S.C. 1395ww(h)(5)(F)) is amended by 
     striking ``subparagraph (G)(v)'' and inserting ``clauses (v) 
     and (vi) of subparagraph (G)''.
       (3) Effective date.--The amendments made by paragraph (1) 
     shall apply to residency training years beginning on or after 
     July 1, 2006.

     SEC. 5. CHILD MENTAL HEALTH PROFESSIONAL REPORT.

       (a) Study.--The Administrator of the Health Resources and 
     Services Administration (in this section referred to as the 
     ``Administrator'') shall study and make findings and 
     recommendations on the distribution and need for child mental 
     health service professionals, including--
       (1) the need for specialty certifications;
       (2) the breadth of practice types;
       (3) the adequacy of locations;
       (4) the adequacy of education and training; and
       (5) an evaluation of best practice characteristics.
       (b) Disaggregation.--The results of the study required by 
     subsection (a) shall be disaggregated by State.
       (c) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Administrator shall submit to the 
     appropriate committees of Congress and make publicly 
     available a report on the study, findings, and 
     recommendations required by subsection (a).

     SEC. 6. REPORTS.

       (a) Transmission.--The Secretary of Health and Human 
     Services shall transmit a report described in subsection (b) 
     to Congress--
       (1) not later than 3 years after the date of the enactment 
     of this Act; and
       (2) not later than 5 years after the date of the enactment 
     of this Act.
       (b) Contents.--The reports transmitted to Congress under 
     subsection (a) shall address each of the following:
       (1) The effectiveness of the amendments made by, and the 
     programs carried out under, this Act in increasing the number 
     of child and adolescent mental health service professionals 
     and paraprofessional child and adolescent mental health 
     workers.
       (2) The demographics of the individuals served by such 
     increased number of child and adolescent mental health 
     service professionals and paraprofessional child and 
     adolescent mental health workers.
                                 ______
                                 
      By Mr. BIDEN:
  S. 538. A bill to educate health professionals concerning substance 
use disorders and addiction; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. BIDEN. Mr. President, I rise today to introduce legislation to 
address the problem of substance abuse in our country.
  The Robert Wood Johnson Foundation has called substance abuse 
America's No. 1 health problem. I don't think that overstates it.
  Most of us knows someone--a family member, maybe a neighbor, a 
colleague, or a friend--who is addicted to drugs or alcohol. In fact, 
nearly 15 million people in this country abuse alcohol or are 
alcoholics. More than 19 million use drugs, and an estimated 4 million 
are in need of treatment but not receiving it.
  Drug and alcohol abuse has far-reaching consequences. It exacerbates 
social ills. It is a public safety problem. It is a public health 
problem. It is a public expenditure problem. There is an undeniable 
correlation between substance abuse and crime. Eighty percent of the 2 
million men and women behind bars today have a history of drug and 
alcohol abuse or addiction or were arrested for a drug-related crime. 
Illegal drugs are responsible for thousands of deaths each year. They 
fuel the spread of AIDS and hepatitis C. They contribute to child 
abuse, domestic violence, and sexual assault. And we all pay the price.
  It costs this Nation almost $275 billion in law enforcement, criminal 
justice expenses, medical bills, and lost earnings each year. That 
means that preventing and treating substance abuse makes sense. It 
makes good criminal justice sense. It makes public health sense. It 
makes budgetary sense. Not to mention the fact that it is the right 
thing to do.
  Yet there remains a reluctance to recognize substance abuse as a 
health issue. There is a reluctance to accept addiction as a disease. 
It is a reluctance that has kept public policy from

[[Page 3611]]

asserting that addicts should be in treatment. Whether addicts are in 
prison or out, it seems to me, treatment is the only legitimate choice.
  But it is not only about increasing access to treatment. It is also 
about moving treatment into the medical mainstream. Unless family 
doctors, nurses, physician assistants, and social workers can identify 
addiction when they see it, unless they know how to intervene, we will 
never make any real progress.
  That aspect of the challenge came into sharp focus for me when I read 
a report a few years ago by the National Center on Addiction and 
Substance Abuse at Columbia University, CASA.
  That report said that fewer than 1 percent of doctors presented with 
the classic profile of an alcoholic older woman could diagnose it 
properly. Eighty-two percent misdiagnosed it as depression, some 
treatments for which are dangerous when taken with alcohol. A follow-up 
study showed that 94 percent of primary care physicians fail to 
diagnose substance abuse when presented with the classic symptoms, and 
41 percent of pediatricians fail to diagnose illegal drug use in 
teenage patients.
  No one recognizes this problem better than the doctors themselves. 
Fewer than one in five--only 19 percent--feel confident about 
diagnosing alcoholism. And only 17 percent feel qualified to identify 
illegal drug use. Having said that, even if they diagnose it, most 
doctors don't believe that treatment works.
  Among practitioners, as well as policymakers, we need to get the 
message out loud and clear: Addiction is a chronic relapsing disease, 
and as with other such diseases, while there may not be a cure, medical 
treatment can help control it.
  The medical professionals have to be educated to recognize the signs 
of substance abuse and to pursue the effective therapies that are 
available. That is why I am introducing legislation to help train 
medical professionals to prevent and recognize addiction and refer 
patients to treatment if they need it. Representative Patrick Kennedy 
will introduce companion legislation in the House of Representatives.
  Like treatment, training works. According to a study published in the 
Brown University Digest of Addiction Theory and Application, 91 percent 
of health professionals who took part in training on addiction at 
Boston University were using the techniques they learned 1 to 5 years 
later.
  Every family doctor does not need to be an addiction specialist, but 
they do need to be able to recognize the signs. And they need to know 
what help is available.
  My legislation does the following three things: authorizes $9 million 
in grants to train medical generalists to recognize substance abuse in 
their patients and their families and know how to properly refer them 
for treatment; authorizes $6 million to fund substance abuse faculty 
fellows at educational institutions to teach courses on substance 
abuse, incorporate substance abuse issues into to required courses at 
the institution, and educate health professionals about issues related 
to non-therapeutic uses of prescription medications; and establishes 
centers of excellence at medical centers or universities across the 
United States to (1) initiate, promote and implement training, research 
and clinical activities related to special areas of substance abuse and 
(2) provide opportunities for interdisciplinary collaboration in 
curriculum development, clinical practice, research and policy 
analysis. The bill authorizes $6 million for this purpose.
  These are additional steps--and, in my view, crucial ones to help 
bridge the divide between research and practice. They will help chip 
away at the incredible substance abuse-related costs we face each year 
in human as well as monetary terms.
  I hope my colleagues will join me to support this important 
legislation.
  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. 538

       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 ``Health Professionals 
     Substance Abuse Education Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Illegal drugs and alcohol are responsible for thousands 
     of deaths each year, and they fuel the spread of a number of 
     communicable diseases, including AIDS and Hepatitis C, as 
     well as some of the worst social problems in the United 
     States, including child abuse, domestic violence, and sexual 
     assault.
       (2) There are an estimated 19,500,000 current drug users in 
     America, nearly 4,000,000 of whom are addicts. An estimated 
     14,800,000 Americans abuse alcohol or are alcoholic.
       (3) There are nearly 27,000,000 children of alcoholics in 
     America, almost 11,000,000 of whom are under 18 years of age. 
     Countless other children are affected by substance abusing 
     parents or other caretakers. Health professionals are 
     uniquely positioned to help reduce or prevent alcohol and 
     other drug-related impairment by identifying affected 
     families and youth and by providing early intervention.
       (5) Drug addiction is a chronic relapsing disease. As with 
     other chronic relapsing diseases (such as diabetes, 
     hypertension and asthma), there is no cure, although a number 
     of treatments can effectively control the disease. According 
     to an article published in the Journal of the American 
     Medical Association, treatment for addiction works as well as 
     treatment for other chronic relapsing diseases.
       (6) Drug treatment is cost effective, even when compared 
     with residential treatment, the most expensive type of 
     treatment. Residential treatment for cocaine addiction costs 
     between $15,000 and $20,000 a year, a substantial savings 
     compared to incarceration (costing nearly $40,000 a year), or 
     untreated addiction (costing more than $43,000 a year). Also, 
     in 1998, substance abuse and addiction accounted for 
     approximately $10,000,000,000 in Federal, State, and local 
     government spending simply to maintain the child welfare 
     system. The economic costs associated with fetal alcohol 
     syndrome were estimated at $54,000,000,000 in 2003.
       (7) Many doctors and other health professionals are 
     unprepared to recognize substance abuse in their patients or 
     their families and intervene in an appropriate manner. Only 
     56 percent of residency programs have a required curriculum 
     in preventing or treating substance abuse.
       (8) Fewer than 1 in 5 doctors (only 19 percent) feel 
     confident about diagnosing alcoholism, and only 17 percent 
     feel qualified to identify illegal drug use.
       (9) Most doctors who are in a position to make a diagnosis 
     of alcoholism or drug addiction do not believe that treatment 
     works (less than 4 percent for alcoholism and only 2 percent 
     for drugs).
       (10) According to a survey by the National Center on 
     Addiction and Substance Abuse at Columbia University 
     (referred to in this section as ``CASA''), 94 percent of 
     primary care physicians and 40 percent of pediatricians 
     presented with a classic description of an alcoholic or drug 
     addict, respectively, failed to properly recognize the 
     problem.
       (11) Another CASA report revealed that fewer than 1 percent 
     of doctors presented with the classic profile of an alcoholic 
     older woman could diagnose it properly. Eighty-two percent 
     misdiagnosed it as depression, some treatments for which are 
     dangerous when taken with alcohol.
       (12) Training can greatly increase the degree to which 
     medical and other health professionals screen patients for 
     substance abuse. It can also increase the manner by which 
     such professionals screen children and youth who may be 
     impacted by the addiction of a parent or other primary 
     caretaker. Boston University Medical School researchers 
     designed and conducted a seminar on detection and brief 
     intervention of substance abuse for doctors, nurses, 
     physician's assistants, social workers and psychologists. 
     Follow-up studies reveal that 91 percent of those who 
     participated in the seminar report that they are still using 
     the techniques up to 5 years later.
       (13) The total economic costs of untreated addiction is 
     estimated to be $274,800,000,000. Arming health care 
     professionals with the information they need in order to 
     intervene and prevent further substance abuse could lead to a 
     significant cost savings.
       (14) A study conducted by doctors at the University of 
     Wisconsin found a $947 net savings per patient in health 
     care, accident, and criminal justice costs for each 
     individual screened and, if appropriate, for whom 
     intervention was made, with respect to alcohol problems.
       (b) Purpose.--It is the purpose of this Act to--
       (1) improve the ability of health care professionals to 
     identify and assist their patients in obtaining appropriate 
     treatment for substance abuse;
       (2) improve the ability of health care professionals to 
     identify and refer children and youth affected by substance 
     abuse in their families for effective treatment; and

[[Page 3612]]

       (3) help establish an infrastructure to train health care 
     professionals about substance abuse issues and the impact on 
     families.

     SEC. 3. HEALTH PROFESSIONALS SUBSTANCE ABUSE EDUCATION.

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

     ``SEC. 544. SUBSTANCE ABUSE EDUCATION FOR GENERALIST HEALTH 
                   PROFESSIONALS.

       ``(a) Secretary of Health and Human Services.--The 
     Secretary shall carry out activities to train health 
     professionals (who are generalists and not already 
     specialists in substance abuse) so that they are competent 
     to--
       ``(1) recognize substance abuse in their patients or the 
     family members of their patients;
       ``(2) intervene, treat, or refer for treatment those 
     individuals who are affected by substance abuse;
       ``(3) identify and assist children of substance abusing 
     parents;
       ``(4) serve as advocates and resources for community-based 
     substance abuse prevention programs; and
       ``(5) appropriately address the non-therapeutic use of 
     prescription medications.
       ``(b) Use of Funds.--Amounts received under this section 
     shall be used--
       ``(1) to continue grant support through cooperative 
     agreements to the Association for Medical Education and 
     Research in Substance Abuse (AMERSA) Interdisciplinary 
     Faculty Development Project;
       ``(2) to continue grants to the Association for Medical 
     Education and Research in Substance Abuse (AMERSA) 
     Interdisciplinary Faculty Development Project; and
       ``(3) to support the Addiction Technology Transfer Centers 
     counselor training programs to train substance abuse 
     counselors and other health professionals such as dental 
     assistants, allied health professionals including dietitians 
     and nutritionists, occupational therapists, physical 
     therapists, respiratory therapists, speech-language 
     pathologists and audiologists, and therapeutic recreation 
     specialists.
       ``(c) Collaboration.--The Secretary shall participate in 
     interdisciplinary collaboration and collaborate with other 
     nongovernmental organizations with respect to activities 
     carried out under this section.
       ``(d) Academic Credits.--The Secretary shall encourage 
     community colleges and other academic institutions determined 
     appropriate by the Secretary to recognize classes offered by 
     the Addiction Technology Transfer Centers for purposes of 
     academic credit.
       ``(e) Evaluations.--The Secretary shall conduct a process 
     and outcome evaluation of the programs and activities carried 
     out with funds received under this section, and shall provide 
     annual reports to the Secretary and the Director of the 
     Office of National Drug Control Policy.
       ``(f) Definitions.--In this section--
       ``(1) the term `health professional' means a allopathic or 
     osteopathic physician, advanced practice nurse, physician 
     assistant, social worker, psychologist, pharmacist, dental 
     health professional, psychiatrist, allied health 
     professional, drug and alcohol counselor, or other individual 
     who is licensed, accredited, or certified under State law to 
     provide specified health care services and who is operating 
     within the scope of such licensure, accreditation, or 
     certification; and
       ``(2) the terms `allopathic or osteopathic physician', 
     `nurse', `physician assistant', `advanced practice nurse', 
     `social worker', `psychologist', `pharmacist', `dental health 
     professional', and `allied health professional' shall have 
     the meanings given such terms for purposes of titles VII and 
     VIII of the Public Health Service Act (42 U.S.C. 292 et seq 
     and 296 et seq.).
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $9,000,000 for 
     each of fiscal years 2006 through 2010. Amounts made 
     available under this subsection shall be used to supplement 
     and not supplant amounts being used on the date of enactment 
     of this section for activities of the types described in this 
     section.

     ``SEC. 545. SUBSTANCE ABUSE INTERDISCIPLINARY EXPERT 
                   EDUCATOR.

       ``(a) Establishment.--The Secretary shall establish and 
     administer a substance abuse faculty fellowship program 
     through grants and contacts under which the Secretary shall 
     provide assistance to eligible institutions to enable such 
     institutions to employ interdisciplinary faculty who will 
     serve as advanced level expert educators (referred to in this 
     section as `expert educators').
       ``(b) Eligibility.--
       ``(1) Institutions.--To be eligible to receive assistance 
     under this section, an institution shall--
       ``(A) be an accredited medical school or undergraduate or 
     graduate nursing school, or be an institution of higher 
     education that offers one or more of the following--
       ``(i) an accredited physician assistant program;
       ``(ii) an accredited dental health professional program;
       ``(iii) a graduate program in pharmacy;
       ``(iv) a graduate program in public health;
       ``(v) a graduate program in social work;
       ``(vi) a graduate program in psychology;
       ``(vii) a graduate program in marriage and family therapy; 
     or
       ``(viii) a graduate program in counseling; and
       ``(B) prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.
       ``(2) Qualifications for expert educators.--To be eligible 
     to receive an advanced level expert educator faculty 
     appointment from an eligible institution under this section, 
     an individual shall prepare and submit to the institution an 
     application at such time, in such manner, and containing such 
     information as the institution may require. Expert educators 
     should have advanced level training in education about 
     substance use disorders and expertise in such areas as 
     culturally competent and gender specific prevention and 
     treatment strategies for vulnerable populations (such as 
     adults and adolescents with dual diagnosis, older 
     individuals, children in families affected by substance 
     abuse, and individuals and families involved in the criminal 
     justice system) and will serve as resources and advisors for 
     health professional training institutions.
       ``(c) Use of Funds.--
       ``(1) In general.--An eligible institution shall utilize 
     assistance received under this section to provide one or more 
     fellowships to eligible individuals. Such assistance shall be 
     used to pay a sum of not to exceed 50 percent of the annual 
     salary of the individual under such a fellowship for a 5-year 
     period.
       ``(2) Fellowships.--Under a fellowship under paragraph (1), 
     an individual shall--
       ``(A) devote a substantial number of teaching hours to 
     substance abuse issues (as part of both required and elective 
     courses) at the institution involved during the period of the 
     fellowship;
       ``(B) incorporate substance abuse issues, including the 
     impact on children and families, into the required curriculum 
     of the institution in a manner that is likely to be sustained 
     after the period of the fellowship ends (courses described in 
     this subparagraph should be provided as part of several 
     different health care training programs at the institution 
     involved); and
       ``(C) educate health professionals about issues related to 
     the nontherapeutic use of prescription medications.
       ``(3) Evaluations.--The Secretary shall conduct a process 
     and outcome evaluation of the programs and activities carried 
     out with amounts appropriated under this section and shall 
     provide annual reports to the Director of the Office of 
     National Drug Control Policy and the appropriate committees 
     of Congress.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $6,000,000 for 
     each of the fiscal years 2006 through 2010. Amounts made 
     available under this subsection shall be used to supplement 
     and not supplant amounts being used on the date of enactment 
     of this section for activities of the types described in this 
     section.

     ``SEC. 546. CENTER OF EXCELLENCE.

       ``(a) In General.--The Secretary shall establish centers of 
     excellence at medical centers or universities throughout the 
     United States to--
       ``(1) initiate, promote, and implement training, research, 
     and clinical activities related to targeted issues or special 
     areas of focus such as brief intervention in general health 
     settings, children and families affected by substance abuse, 
     older individuals, maternal and child health issues, 
     individuals with dual diagnosis, prevention in the general 
     health setting, and clinical practice standards for primary 
     care providers; and
       ``(2) provide opportunities for interdisciplinary 
     collaboration in curriculum development, course development, 
     clinical practice, research and translation of research into 
     practice, and policy analysis and formulation.
       ``(b) Use of Funds.--Centers of excellence established 
     under subsection (a) shall use funds provided under this 
     section to--
       ``(1) disseminate information on evidence-based approaches 
     concerning the prevention and treatment of substance use 
     disorders; and
       ``(2) assist health professionals and alcohol and drug 
     treatment counselors to incorporate the latest research into 
     their treatment practices.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $6,000,000 for 
     each of the fiscal years 2006 through 2010.''.
                                 ______
                                 
      By Mr. HAGEL:
  S. 540. A bill to strengthen and permanently preserve social 
security; to the Committee on Finance.
  Mr. HAGEL. Mr. President, when I began my first campaign for the U.S. 
Senate in 1995, I published a booklet entitled ``Where I Stand.'' I 
wrote it because the first obligation of a candidate is to tell voters 
what you believe. In that booklet, I wrote:

       The Social Security system must be preserved, protected, 
     and improved. We have made this covenant with our senior 
     citizens. However, the long-term future of the Social 
     Security system is in peril. If we do not get

[[Page 3613]]

     this issue resolved soon, this Nation faces an entitlement 
     disaster, eroding the trust between grandchildren and 
     grandparents. We must explore every option in order to fix 
     and strengthen our Social Security system. This will require 
     bold leadership.

  A decade later, those words still define my position on Social 
Security. Social Security has been one of the most important and 
successful Government programs in the history of America. Almost every 
American family over the last 70 years has been touched by Social 
Security. In signing the Social Security Act of 1935, Franklin 
Roosevelt said:

       None of the sums of money paid out to individuals in 
     assistance or insurance will spell anything approaching 
     abundance. But they will furnish that minimum necessity to 
     keep a foothold, and that is the kind of protection Americans 
     want.

  A fundamental point that President Roosevelt made was that Social 
Security was not intended to replace the personal responsibility of 
individuals saving for and preparing for their own retirements. Social 
Security was never intended to be a substitute for a retirement or 
savings plan. It is a safety net for people. Social Security is an 
insurance contract that protects the most vulnerable in our society 
from falling into poverty. But Social Security is actuarially 
unsustainable with its present commitments to future generations.
  Today, I am introducing comprehensive Social Security reform 
legislation. I began my day in Nebraska this morning with some of the 
people who would be most affected by my bill--America's next 
generation. It is their generation that will be asked to sustain the 
future of Social Security.
  My generation, the baby boom generation, has been the largest and 
most productive workforce in the history of man. The impending 
retirement of the 77 million-strong baby boom generation will impact 
every aspect of our economy, Government, and society--Medicare and 
Medicaid, health care, our workforce, and our competitive position in a 
world filled with countries much younger than ours. The next generation 
of Americans will respond to these challenges as every generation of 
Americans has responded to challenges--with innovation and hard work.
  However, my generation has a moral obligation to ensure that future 
generations do not have to bear an increasingly heavy burden of 
providing retirement resources for future generations. That is why we 
must reform Social Security. It is a 1935 model trying to operate in a 
21st century world. It will soon be incapable of delivering the 
promises and resources that it was built to provide 70 years ago.
  Last week, in testimony before the House Budget Committee, Federal 
Reserve Chairman Alan Greenspan urged Congress to act on modernizing 
entitlement programs sooner rather than later. He warned that, unless 
we act now to meet the huge unfunded liabilities facing our entitlement 
programs, there will be severe economic consequences for our Nation. 
Chairman Greenspan is right.
  America's largest entitlement programs--Social Security, Medicare, 
and Medicaid--are on a trajectory that cannot be sustained. For fiscal 
year 2006, the Congressional Budget Office tells us that 64 percent of 
the $2.5 trillion Federal budget will be obligated to mandatory 
spending, of which 42 percent is for Medicare, Medicaid, and Social 
Security. Those are tax dollars that are committed--money that cannot 
be used for anything else.
  Each year, the percentage of the Federal budget obligated to funding 
entitlement programs grows larger and larger. The current unfunded 
liability for Social Security over the next 75 years--this is the 
horizon that the Social Security Administration uses to calculate 
benefits and expenditures--is $3.7 trillion. That means over the next 
75 years, we are obligated to make the commitments of the retiree 
benefits a reality. Yet we have $3.7 trillion of debt. We don't know 
where and how we are going to get that $3.7 trillion. We are now $3.7 
trillion in debt in the current obligations over the next 75 years for 
Social Security. Medicare's unfunded liability is nearly $28 trillion. 
These liabilities are in addition to America's current national debt of 
$7.5 trillion.
  Medicare costs are growing faster than any other Government or 
entitlement program. As we see health care costs continue to rise, 
coupled with the growing number of retirees, it will only continue to 
put more and more pressure on our Federal budget and squeeze out money 
for important discretionary Government programs such as education, 
roads, parks, and housing.
  Last Congress, we passed an enormous expansion of Medicare. I voted 
against it. I thought it was bad policy and would add hundreds of 
billions of dollars to an already unsustainable program. I am 
supportive of efforts to reopen the Medicare reform bill and fix it. 
But for political reasons, I doubt that will happen soon, although we 
will be forced to deal with it in the future.
  The Social Security system is not in crisis today, but there is 
clearly a crisis on the horizon. In 2018, more money will be paid out 
of Social Security than comes in. In 2042, the Social Security trust 
fund will be insolvent. Beyond the next 75 years, there is only a black 
hole of unfunded liability for future generations. The longer we do 
nothing, the more difficult it will be to protect Social Security and 
the promise our Government made to future generations of Americans.
  This reality is daunting, but there is good news in all of this. The 
system can be fixed. It is within our power to preserve the Social 
Security net for this Nation. It has been done before. In 1983, 
President Reagan worked with congressional Democrats and Republicans to 
make tough choices and extend the life of Social Security. Dealing with 
this problem now means less dramatic and difficult choices later. The 
earlier we confront the reality of the coming crisis, the more options 
we will have to come up with a wise and sustainable course of action.
  Allow me to now lay out the main points of the Social Security reform 
bill that I will introduce today.
  My bill would ensure the vitality of Social Security for future 
generations. There are no easy choices to fix the demographic 
challenges and realities facing Social Security. Understanding this, we 
must make choices that address the problem responsibly and fairly.
  My bill would make changes to Social Security only--only--for those 
Americans under the age of 45. No American age 45 or older will see a 
change in Social Security or their benefits. For Americans under 45, my 
bill would provide the option of voluntary personal accounts. Providing 
personal accounts is good policy for both the long-term viability of 
Social Security and for individuals. Government should be about 
empowering individuals and enhancing personal freedoms and their 
futures. Personal accounts help do this for those under 45.
  My bill would continue to provide a guaranteed Social Security 
benefit from the Social Security trust fund. Under my plan--under any 
plan--Americans still need the security of knowing that the portion of 
their Social Security benefits that comes from the traditional Social 
Security system will be guaranteed. My bill will continue to guarantee 
survivor and disability benefits as they currently are.
  Social Security provides benefits for more than 6 million spouses and 
children of breadwinners who have died prematurely or have become 
disabled. For these families, their benefits should not be touched.
  I know something about this. When I was 16 years old, my father died. 
The Social Security benefits my mother received were critical in 
helping her raise four young boys in Nebraska. I well remember my 
mother's relief when that Social Security check arrived each month.
  We must remember that the first obligation of Social Security is to 
the most needy Americans. My bill does not raise taxes. I believe we 
can fix Social Security without raising taxes. We need to begin 
reforming Government programs so they do not become so large and so 
expensive that future taxpayers will be unable to pay for them. Young 
wage earners and small businesses are the most vulnerable to tax

[[Page 3614]]

increases, and they would be the ones most adversely affected by higher 
taxes to save Social Security.
  Additionally, whenever we increase the cost of labor, we hurt our 
competitive position in the world and make job creation more difficult. 
This is not abstract economic theory; it is reality that has an impact 
on every future American.
  Those are the principles that form the foundation of the bill I will 
introduce today. Here is how it would work.
  Upon passage of the bill, Americans 44 and younger would be given two 
voluntary options. One, they can invest 4 percent of their payroll tax 
into a personal investment account modeled on the same accounts now 
offered to all Federal Government employees. I participate and my staff 
participates in this program. The remainder of their payroll tax 
contribution would continue to go into the traditional Social Security 
system. Option 2, individuals can continue to invest their entire 
payroll tax in the traditional Social Security system.
  If they choose the personal account option, then individuals will be 
able to invest in the same five funds that collectively make up the 
current Federal Thrift Savings Plan--again, the program that I am in, 
Members of Congress are in, and Federal Government employees are in.
  The first is the common stock index fund. Over the last 10 years, 
this fund has earned an average annual rate of return of 11.99 percent.
  The second fund is the fixed income index investment fund. Over the 
last 10 years, this fund has earned an average annual rate of return of 
7.72 percent.
  The third is the Government securities investment fund, and over the 
last 10 years, it has earned an average annual rate of return of 5.75 
percent.
  The fourth is the small capitalization index. Over the last 10 years, 
it has earned an average annual rate of return of 11.84 percent.
  Fifth is the international stock index fund. Over the last 10 years, 
it has earned an average annual rate of return of 5.45 percent.
  These five funds provide a range of excellent investment options.
  My bill would also provide a default account for those Americans who, 
for whatever reason, do not want to deal with choosing a fund or funds 
for their accounts. This fund would invest differently in an 
individual's early working years than in their later working years.
  The Thrift Savings Plan has been a success for Government employees. 
Last year, returns on the different accounts ranged from just over 4 
percent to 20 percent, and in the last 10 years, the returns have been 
between 5.5 and 12 percent. Compare this with the 3-percent return 
provided by Treasury bonds that Social Security now invests in today.
  These private accounts are in addition to the guaranteed Social 
Security benefits and personal savings pensions and retirement account 
programs individuals build up during their working years.
  Under my bill, personal accounts would be administered by a board 
within the Social Security Administration called the Social Security 
investment board. The board would be composed of the Secretary of the 
Treasury, the Chairman of the Federal Reserve Board, the Chairman of 
the Securities and Exchange Commission, and two Senate-confirmed 
appointments nominated by the President. One of the President's 
appointments would serve as chairman of the board.
  Upon retirement, those who choose to enroll in a personal account 
will have two accounts: their personal account and their traditional 
Social Security benefits account. They will be required to convert a 
portion of their personal account to an annuity which, when added to 
their guaranteed Social Security, would be at least 135 percent of 
poverty. There is no such guarantee in our Social Security system 
today. The remainder of the personal account will be theirs to spend as 
they wish. It could be used to help with health care costs and 
retirement living costs, or it could even help an account holder's 
children or grandchildren put a downpayment on a home or pay college 
tuition.
  There are those who say that allowing individuals to invest through 
personal accounts is too risky. Their concerns are serious, and they 
deserve a serious response. Under my plan, no person is required to 
have a personal account. An individual who does not want to invest can 
keep all of their money in the traditional Social Security system.
  I believe the policies which enhance personal freedom and 
responsibility encourage the ethic of saving and limit the role of 
Government in their lives. These are the policies which will be more 
flexible and successful for America's future.
  It is true that there is no guarantee with market-based investments; 
however, the historic success of markets is not a theory, it is a fact. 
Columnist George Will pointed out in a recent Washington Post column 
that in no 15-year period over the past eight decades has the growth of 
stocks ever been negative. In no 20-year period has the average growth 
been less than 3 percent, which exceeds the rate of return on Social 
Security assets today. This includes down times, significant down 
periods in the stock market.
  We are blessed in America. We are blessed in America because the vast 
majority of Americans live healthier, longer lives than they did a few 
decades ago. Continued advances in medicine, education, and personal 
health will continue to increase not only the length of our lives, but 
also the quality of our lives, providing opportunities for older 
Americans to remain healthy, vital, and productive members of the 
workforce.
  When Social Security was created in 1935, there were too many workers 
and not enough jobs. According to the Social Security Administration, 
in 1950, there were 16.5 workers per retiree. Incentives were created 
to move people out of the workforce. This dynamic is changing. Today 
there are 3.3 workers for every retiree. In 25 years, there will be 
about 2 workers for each retiree.
  Why is this important? This is important because Social Security is a 
transfer program. The money comes in and the payroll taxes from the 
workers go out at the end of the month to the retirees.
  So when there are less workers, there is less money coming into the 
system. My bill makes three adjustments to Social Security that will 
make it solvent for future generations. First, my bill would raise the 
current full benefit retirement age by 1 year from 67 to 68. Second, my 
bill would maintain the current earlier retirement age at 62 but would 
adjust benefits for those who choose to retire early.
  Currently, workers who retire early today receive 70 percent of their 
full retirement benefits. My bill will provide these early retirees 
with 63 percent of the traditional benefits.
  Third, currently an individual's base Social Security benefit is 
determined by two factors: their average income over 35 years and the 
wage index. My bill adds a third component, life expectancy. We are 
living longer. That means as we live longer, we will draw more from the 
Social Security fund.
  Over the life of the program Social Security benefit calculations 
have never been adjusted to reflect increased life expectancy. By 
factoring increased life expectancy into the base benefit calculation, 
the rate of increase in benefit payments will be slow. No other changes 
will be made to the annual consumer price indexing of benefit 
increases.
  In addition to making Social Security solvent, these adjustments can 
help confront the challenges of increasing Medicare costs and shortages 
in the workforce. It is important to protect the option of early 
retirement, but our laws need to encourage individuals to stay in the 
workforce, not leave it.
  Medicare costs, Medicaid costs, and labor shortages can be 
significantly reduced by keeping people healthy, vital, happy, and 
productive in the workforce. My bill pays for these changes in Social 
Security by using the existing $3.7 trillion unfunded liability to 
ensure the long-term health of the Social Security system. Doing 
nothing will mean at the end of 75 years, Social Security will have 
chewed up $3.7 trillion

[[Page 3615]]

in taxpayer money to help keep Social Security solvent, but it will 
not, and we will still have an insolvent program with trillions of 
dollars more of unfunded liabilities staring us in the face.
  In recent testimony before the Senate, Alan Greenspan said Social 
Security's total unfunded liability could be as high as $10 trillion 
over the life of the program. I have introduced this bill because I 
believe that leaders have a responsibility to deal with the great 
challenges of their time, not defer them, not make excuses for them, 
but to try to fix them and come up with solutions.
  I do not hold my bill up as the only way to address the solvency of 
Social Security. It is one way. There may be better ways. No 
comprehensive bill will be immune from critical evaluation, nor should 
it be. However, I think my bill is a commonsense, responsible, and 
fiscally accountable place to start.
  All Americans need to ask tough questions about the future of Social 
Security. We need to begin the process of refining ideas to forge the 
best, most responsible policy for the future of Social Security.
  President Bush deserves great credit for making the modernization of 
Social Security a central part of his second-term agenda. There is no 
possibility for success in modernizing Social Security without strong 
Presidential leadership.
  As I said at the beginning of my speech, Social Security is one of 
the most important and successful Government programs in American 
history. Since 1935, it has provided a safety net for our society's 
most vulnerable. We have a high moral obligation to ensure that future 
generations continue to benefit from this safety net and social 
contract we have with our citizens. But in order to do this, we must 
fix the system.
  This is a personal issue for me. Forty years from now a young mother 
in Columbus, NE, may be left to raise four children on her own. I want 
her family to have the same access to the same safety net that my 
family had, and the promise that no matter where one starts in life, 
with a little help they can finish where they want.
  I am 58 years old. I am at the front of the baby boom generation. My 
daughter is 14 years old. My son is 12 years old. I do not want to fail 
their generation. That means addressing these entitlement program 
issues now, while we have time to do it in a wise, careful, and 
responsible way. This is a defining debate for today's leaders. Doing 
nothing is irresponsible and cowardly. It is in America's interest to 
deal with our challenge today. We have it in us to do what needs to be 
done. We can preserve, protect, and improve Social Security for all 
future generations of Americans.
  I send my bill to the desk and ask that it be assigned to the 
appropriate committee.
  I yield the floor.
  The PRESIDING OFFICER. The bill will be received and appropriately 
dealt with.
  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. 540

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Saving 
     Social Security Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

               TITLE I--INVESTMENT-BASED SOCIAL SECURITY

Sec. 101. Establishment of an investment-based option for social 
              security benefits.

               ``Part B--Investment-Based Social Security

``Sec. 250. Definitions.
``Sec. 251. Election to waive eligibility.
``Sec. 252. Social security savings accounts for employees (SAFE 
              accounts).
``Sec. 253. SAFE Investment Fund.
``Sec. 254. Distributions.
``Sec. 255. Social Security Investment Board.
Sec. 102. Adjustments to primary insurance amounts under part A of 
              title II of the Social Security Act for investing workers 
              with SAFE accounts.
Sec. 103. Tax treatment of investment-based social security.
Sec. 104. Study on use of private annuities for SAFE account 
              distributions.
Sec. 105. Study regarding financial literacy.

                  TITLE II--DEBT-BASED SOCIAL SECURITY

                        Subtitle A--Adjustments

Sec. 201. Modification to retirement age.
Sec. 202. Modification of PIA factors to reflect changes in life 
              expectancy.
Sec. 203. Actuarial adjustment for retirements.

         Subtitle B--Maintenance of Social Security Trust Funds

Sec. 211. Maintenance of adequate balances in the social security trust 
              funds.

               TITLE I--INVESTMENT-BASED SOCIAL SECURITY

     SEC. 101. ESTABLISHMENT OF AN INVESTMENT-BASED OPTION FOR 
                   SOCIAL SECURITY BENEFITS.

       (a) In General.--Title II of the Social Security Act (42 
     U.S.C. 401 et seq.) is amended--
       (1) by inserting before section 201 the following:

                ``PART A--DEBT-BASED SOCIAL SECURITY'';

        and
       (2) by adding at the end the following:

               ``PART B--INVESTMENT-BASED SOCIAL SECURITY

     ``SEC. 250. DEFINITIONS.

       ``For purposes of this part--
       ``(1) Investing worker.--The term `investing worker' means 
     any individual--
       ``(A) who after the date of enactment of this part--
       ``(i) receives wages on which there is imposed a tax under 
     section 3101(a) of the Internal Revenue Code of 1986; or
       ``(ii) derives self-employment income on which there is 
     imposed a tax under section 1401(a) of the Internal Revenue 
     Code of 1986; and
       ``(B) who was born on or after January 1, 1961, and does 
     not make an election to waive investment-based social 
     security under this part as provided under section 251(a).
       ``(2) Social security savings accounts for employees (safe 
     account).--The term `social security savings accounts for 
     employees' or `SAFE Account' means an account established for 
     an investing worker within the SAFE Investment Fund under 
     section 252.
       ``(3) SAFE investment fund.--The term `SAFE Investment 
     Fund' or `Fund' means the fund established under section 253.
       ``(4) Social security investment board.--The term `Social 
     Security Investment Board' or `Board' means the board 
     established under section 254.
       ``(5) Commissioner.--The term `Commissioner' means the 
     Commissioner of Social Security.

     ``SEC. 251. ELECTION TO WAIVE ELIGIBILITY.

       ``(a) Election to Waive Eligibility for SAFE Accounts.--
       ``(1) In general.--Any individual may elect to waive 
     eligibility under this part in such form and manner as 
     prescribed by the Board at any time after such individual 
     attains the age of 18 and before such individual attains the 
     age of 25. Such election shall be irrevocable.
       ``(2) Individual born before january 1, 1981.--
     Notwithstanding paragraph (1), in the case of any individual 
     born after December 31, 1960, and before January 1, 1981, 
     such individual may elect to waive eligibility under this 
     part in such form and manner as prescribed by the Board at 
     any time before January 1, 2007. Such election shall be 
     irrevocable.
       ``(b) Disposition of SAFE Account.--In the case of any 
     individual who makes an election under paragraph (1), any 
     assets in such individual's SAFE Account shall be paid to the 
     Federal Old-Age and Survivors Insurance Trust Fund, and such 
     individual's eligibility for benefits under part A shall be 
     determined as if such Account had never been established.

     ``SEC. 252. SOCIAL SECURITY SAVINGS ACCOUNTS FOR EMPLOYEES 
                   (SAFE ACCOUNTS).

       ``(a) Establishment of SAFE Accounts.--Not later than 30 
     days after the date on which an individual first becomes an 
     investing worker, the Social Security Investment Board shall 
     establish a SAFE Account for such individual in the SAFE 
     Investment Fund.
       ``(b) Contributions.--
       ``(1) In general.--The Secretary of the Treasury shall 
     transfer from the Federal Old-Age and Survivors Insurance 
     Trust Fund to the SAFE Investment Fund, for crediting by the 
     Social Security Investment Board to the SAFE Account of an 
     investing worker, an amount equal to the SAFE Account 
     contribution amount with respect to each investing worker.
       ``(2) SAFE account contribution amount.--For purposes of 
     paragraph (1), the term `SAFE Account contribution amount' 
     means, with respect to an investing worker for a calendar 
     year, the product derived by multiplying--

[[Page 3616]]

       ``(A) the sum of the total wages paid to, and self-
     employment income derived by, such individual during such 
     calendar year; by
       ``(B) 4 percent.
       ``(c) Designation of Investments.--
       ``(1) Initial designation.--
       ``(A) In general.--Not later than 10 days after an account 
     is established for an investing worker under subsection (a), 
     the investing worker shall designate to which investment 
     funds within the SAFE Investment Fund contributions to such 
     account under subsection (b) shall be allocated.
       ``(B) Default allocation.--
       ``(i) In general.--If no designation is made pursuant to 
     paragraph (1), the Board shall allocate such contributions in 
     accordance with the life-span investment option.
       ``(ii) Life-span investment option.--For purposes of this 
     section, the life-span investment option shall provide for 
     the management and investment of funds within an investing 
     worker's SAFE account on the basis of the age of the 
     investing worker in accordance with regulations established 
     by the Board. In establishing regulations with respect to the 
     life-span investment option under this subparagraph, the 
     Board shall consider--

       ``(I) with respect to the youngest investing workers, 
     investing 80 percent of such funds in stocks and 20 percent 
     of such funds in bonds; and
       ``(II) with respect to the oldest investing workers, 
     investing 35 percent of such funds in stocks and 65 percent 
     of such funds in bonds.

       ``(2) Subsequent designations.--At least twice each year, 
     an investing worker may redesignate the allocation of 
     investments funds within the SAFE Investment Fund to which 
     contributions with respect to such investing worker are 
     allocated.
       ``(d) Time Designation Takes Effect.--A designation under 
     subsection (c) shall take effect with respect to 
     contributions made beginning more than 14 days after the date 
     of the designation.
       ``(e) Investing Worker's Property Right in the SAFE 
     Account.--Each SAFE Account designated by an investing worker 
     is the sole property of the worker.
       ``(f) Form of Designations.--Designations under this 
     section shall be made--
       ``(1) on W-4 forms (or any successor forms); or
       ``(2) in such other manner as the Social Security 
     Investment Board may prescribe in order to ensure ease of 
     administration.

     ``SEC. 253. SAFE INVESTMENT FUND.

       ``(a) In General.--There shall be established and 
     maintained in the Treasury of the United States a SAFE 
     Investment Fund in the same manner as the Thrift Savings Fund 
     under sections 8437 (excluding paragraphs (4) and (5) of 
     subsection (c) thereof), 8438, and 8439 of title 5, United 
     States Code, insofar as such sections are not inconsistent 
     with the provisions of this part.
       ``(b) Investment Earnings Report.--
       ``(1) In general.--At least annually, the SAFE Investment 
     Fund shall provide to each investing worker a SAFE Investment 
     Status Report. Such report may be transmitted electronically 
     upon the agreement of the investing worker under the terms 
     and conditions established by the Social Security Investment 
     Board.
       ``(2) Contents of report.--The SAFE Investment Status 
     Report, with respect to a SAFE Account, shall provide the 
     following information:
       ``(A) The total SAFE Account contributions made in the last 
     quarter, the last year, and since the Account was 
     established.
       ``(B) The amount and rate of return earned for each period 
     described in subparagraph (A).
       ``(C) A projection of how much the investing worker will 
     have available on the date the worker attains normal 
     retirement age if such contributions and earnings continue at 
     the same rate during the remaining period ending with such 
     date.
       ``(c) Maximum Administrative Fee.--The SAFE Investment Fund 
     shall charge each investing worker in the Fund a single, 
     uniform annual administrative fee not to exceed 0.57 percent 
     of the value of the assets invested in the worker's SAFE 
     Account.

     ``SEC. 254. DISTRIBUTIONS.

       ``(a) Date of Initial Distribution.--Except as provided in 
     subsection (b)(4), distributions may only be made from a SAFE 
     Account of an investing worker on and after the earliest of--
       ``(1) the date the investing worker attains normal 
     retirement age, as determined under section 216; or
       ``(2) the date on which funds in the investing worker's 
     SAFE Account are sufficient to transfer to the Federal Old-
     Age and Survivors Insurance Trust Fund--
       ``(A) an amount equal to the old-age insurance amount (as 
     calculated under subsection (b)(1)(B)); and
       ``(B) an amount equal to the survivor's insurance amount 
     (as calculated under subsection (b)(2)(B)).
       ``(b) Form of Distribution.--
       ``(1) Federal annuity payment.--
       ``(A) In general.--On the date determined under subsection 
     (a), so much of the balance in an investing worker's SAFE 
     Account as does not exceed the old-age insurance amount shall 
     be transferred to the Federal Old-Age and Survivors Insurance 
     Trust Fund and the investing worker shall be entitled to a 
     Federal annuity payment.
       ``(B) Old-age insurance amount.--For purposes of this 
     section, the old-age insurance amount is an amount which is 
     sufficient to provide a Federal annuity payment which, when 
     added to the investing worker's monthly benefit under part A, 
     is equal to one-twelfth of 135 percent of the poverty line 
     (as defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2))).
       ``(C) Federal annuity payment.--For purposes of this 
     section, the term `Federal annuity payment' means a monthly 
     payment from the Federal Old-Age and Survivors Insurance 
     Trust Fund in an amount determined by the Social Security 
     Investment Board based on the amount transferred to the 
     Federal Old-Age and Survivors Insurance Trust Fund under 
     subparagraph (A) and the life expectancy of the investing 
     worker (determined under reasonable actuarial assumptions).
       ``(2) Family or survivor benefits for related 
     individuals.--
       ``(A) In general.--On the date determined under subsection 
     (a), in the case of an investing worker whose SAFE Account 
     has funds in excess of the amount required to be transferred 
     under paragraph (1)(A), so much of such excess funds as does 
     not exceed the survivor's insurance amount shall be 
     transferred to the Federal Old-Age and Survivors Insurance 
     Trust Fund and any related individual shall be entitled to a 
     survivor's payment at the time such related individual meets 
     the applicable requirements for a monthly payment under 
     section 202.
       ``(B) Survivor's insurance amount.--For purposes of this 
     section, the survivor's insurance amount is an amount, 
     determined by the Social Security Investment Board under 
     rules established by such Board, which is sufficient to 
     provide survivor's payments to all related individuals.
       ``(C) Survivor's payment.--For purposes of this section, 
     the term `survivor's payment' means a monthly payment from 
     the Federal Old-Age and Survivors Insurance Trust Fund in an 
     amount which, when added to such related individual's monthly 
     benefit (or projected monthly benefit) under this title, is 
     equal to the benefit such related individual would be 
     entitled to under section 202 if the investing worker had 
     waived the application of this part.
       ``(D) Related individual.--For purposes of this section, 
     the term `related individual' means, with respect to an 
     investing worker, any individual entitled to benefits under 
     section 202 based on the wages or self-employment income of 
     such worker.
       ``(3) Payment of excess safe account funds.--To the extent 
     funds remain in an investing worker's SAFE Account after the 
     transfer required under paragraphs (1) and (2), such excess 
     assets shall be payable to the worker in such manner and in 
     such amounts as determined by the worker.
       ``(4) Distribution in the event of death.--If the investing 
     worker dies before the date determined under subsection (a), 
     the balance in the worker's SAFE Account shall be distributed 
     in the following manner:
       ``(A) Not more than an amount equal to the survivor's 
     insurance amount shall be transferred to the Federal Old-Age 
     and Survivors Insurance Trust Fund.
       ``(B) The remainder (if any) shall be distributed in a lump 
     sum, under rules established by the Social Security 
     Investment Board, to the investing worker's estate, subject 
     to applicable State laws.

     ``SEC. 255. SOCIAL SECURITY INVESTMENT BOARD.

       ``(a) Establishment.--There is established within the 
     Social Security Administration a Social Security Investment 
     Board (in this Act referred to as the `Board').
       ``(b) Composition.--The Board shall be composed of--
       ``(1) 2 members from the private sector appointed by the 
     President, of whom 1 shall be designated by the President as 
     Chairman;
       ``(2) the Secretary of the Treasury;
       ``(3) the Chairman of the Federal Reserve Board; and
       ``(4) the Chairman of the Securities and Exchange 
     Commission.
       ``(c) Advice and Consent.--Appointments under subsection 
     (b)(1) shall be made by and with the advice and consent of 
     the Senate.
       ``(d) Membership Requirements.--Members of the Board 
     appointed under subsection (b)(1) shall have substantial 
     experience, training, and expertise in finance, investments, 
     or insurance.
       ``(e) Length of Appointments.--
       ``(1) Terms.--A member of the Board appointed under 
     subsection (b)(1) shall be appointed for a term of 6 years, 
     except that of the members first appointed under subsection 
     (b)(1)--
       ``(A) the Chairman shall be appointed for a term of 6 
     years; and
       ``(B) the remaining member shall be appointed for a term of 
     3 years.
       ``(2) Vacancies.--
       ``(A) In general.--A vacancy on the Board shall be filled 
     in the manner in which the original appointment was made and 
     shall be subject to any conditions that applied with respect 
     to the original appointment.
       ``(B) Completion of term.--An individual chosen to fill a 
     vacancy shall be appointed

[[Page 3617]]

     for the unexpired term of the member replaced.
       ``(3) Expiration.--The term of any member shall not expire 
     before the earlier of--
       ``(A) the date on which the member's successor takes 
     office; or
       ``(B) 1 year after the member's term is scheduled to 
     expire.
       ``(f) Duties.--The Board shall--
       ``(1) maintain SAFE Accounts and the SAFE Investment Fund 
     in the same manner as the Thrift Savings Accounts and the 
     Thrift Savings Fund are maintained by the Thrift Savings 
     Board;
       ``(2) review and approve the budget of the Board;
       ``(3) establish policies for the administration of this 
     part; and
       ``(4) carry out any other duties specified under this part.
       ``(g) Administrative Provisions.--
       ``(1) In general.--The Board may--
       ``(A) adopt, alter, and use a seal;
       ``(B) direct the Executive Director to take such action as 
     the Board considers appropriate to carry out the provisions 
     of this part and the policies of the Board;
       ``(C) upon the concurring votes of 4 members, remove the 
     Executive Director from office for good cause shown; and
       ``(D) take such other actions as may be necessary to carry 
     out the functions of the Board.
       ``(2) Meetings.--The Board shall meet--
       ``(A) not less than once each month; and
       ``(B) at additional times at the call of the Chairman.
       ``(3) Exercise of powers.--
       ``(A) In general.--Except as provided in paragraph (1)(C), 
     the Board shall perform the functions and exercise the powers 
     of the Board on a majority vote of a quorum of the Board. 
     Three members of the Board shall constitute a quorum for the 
     transaction of business.
       ``(B) Vacancies.--A vacancy on the Board shall not impair 
     the authority of a quorum of the Board to perform the 
     functions and exercise the powers of the Board.
       ``(h) Compensation.--
       ``(1) In general.--Each member of the Board who is not an 
     officer or employee of the Federal Government shall be 
     compensated at the daily rate of basic pay for level IV of 
     the Executive Schedule for each day during which such member 
     is engaged in performing a function of the Board.
       ``(2) Expenses.--A member of the Board shall be paid 
     travel, per diem, and other necessary expenses under 
     subchapter I of chapter 57 of title 5, United States Code, 
     while traveling away from such member's home or regular place 
     of business in the performance of the duties of the Board.
       ``(i) Appointment of Executive Director.--
       ``(1) In general.--The Board shall appoint, without regard 
     to the provisions of law governing appointments in the 
     competitive service, an Executive Director by action agreed 
     to by a majority of the members of the Board.
       ``(2) Requirements.--The Executive Director shall have 
     substantial experience, training, and expertise in finance, 
     investments, and insurance.
       ``(3) Duties.--The Executive Director shall--
       ``(A) carry out the policies established by the Board;
       ``(B) invest and manage the SAFE Investment Fund in 
     accordance with the investment policies established by the 
     Board;
       ``(C) administer the provisions this part; and
       ``(D) prescribe such regulations (other than regulations 
     relating to fiduciary responsibilities) as may be necessary 
     for the administration of this part.
       ``(4) Administrative authority.--The Executive Director 
     may--
       ``(A) appoint such personnel as may be necessary to carry 
     out the provisions of this part;
       ``(B) subject to approval by the Board, procure the 
     services of experts and consultants under section 3109 of 
     title 5, United States Code;
       ``(C) secure directly from an executive agency, the United 
     States Postal Service, or the Postal Rate Commission any 
     information necessary to carry out the provisions of such 
     part and the policies of the Board;
       ``(D) make such payments out of sums described in 
     subsection (l) as the Executive Director determines are 
     necessary to carry out the provisions of such part and the 
     policies of the Board;
       ``(E) accept and use the services of individuals employed 
     intermittently in the Government service and reimburse such 
     individuals for travel expenses, as authorized by section 
     5703 of title 5, United States Code, including per diem as 
     authorized by section 5702 of such title;
       ``(F) except as otherwise expressly prohibited by law or 
     the policies of the Board, delegate any of the Executive 
     Director's functions to such employees under the Board as the 
     Executive Director may designate and authorize such 
     successive redelegations of such functions to such employees 
     under the Board as the Executive Director may consider to be 
     necessary or appropriate; and
       ``(G) take such other actions as are appropriate to carry 
     out the functions of the Executive Director.
       ``(j) Discharge of Responsibilities.--The members of the 
     Board shall discharge their responsibilities solely in the 
     interest of SAFE Account holders and beneficiaries under this 
     part.
       ``(k) Annual Independent Audit.--The Board shall annually 
     engage an independent qualified public accountant to audit 
     the activities of the Board.
       ``(l) Source of Funds.--Payments authorized under this 
     section shall be paid from administrative fees charged in 
     accordance with section 253(c).
       ``(m) Submission of Budget to Congress.--The Board shall 
     prepare and submit to the President, and, at the same time, 
     to the appropriate committees of Congress, an annual budget 
     of the expenses and other items relating to the Board which 
     shall be included as a separate item in the budget required 
     to be transmitted to Congress under section 1105 of title 31, 
     United States Code.
       ``(n) Submission of Legislative Recommendations.--The Board 
     may submit to the President, and, at the same time, shall 
     submit to each House of Congress, any legislative 
     recommendations of the Board relating to any of its functions 
     under this part or any other provision of law.''.
       (b) Effective Date and Notice Requirements.--
       (1) Effective date.--The amendments made by this section 
     shall apply to designations of accounts made with respect to 
     payroll periods beginning on or after January 1, 2007.
       (2) Notice requirements.--
       (A) In general.--Not later than January 1, 2007, the 
     Commissioner of Social Security shall--
       (i) send to the last known address of each eligible 
     individual a description of the program established by the 
     amendments made by this section, that shall be written in the 
     form of a pamphlet in language that may be readily understood 
     by the average worker;
       (ii) provide for toll-free access by telephone from all 
     localities in the United States and access by the Internet to 
     the Social Security Administration through which individuals 
     may obtain information and answers to questions regarding 
     such program; and
       (iii) provide information to the media in all localities of 
     the United States about such program and such toll-free 
     access by telephone and access by Internet.
       (B) Eligible individual.--For purposes of this paragraph, 
     the term ``eligible individual'' means an individual who, as 
     of the date of the pamphlet sent pursuant to subparagraph 
     (A), is indicated within the records of the Social Security 
     Administration as being credited with 1 or more quarters of 
     coverage under section 213 of the Social Security Act (42 
     U.S.C. 413).
       (C) Matters to be included.--The Commissioner of Social 
     Security shall include with the pamphlet sent to each 
     eligible individual pursuant to subparagraph (A)--
       (i) a statement of the number of quarters of coverage 
     indicated in the records of the Social Security 
     Administration as of the date of the description as credited 
     to such individual under section 213 of such Act and the date 
     as of which such records may be considered accurate; and
       (ii) the number for toll-free access by telephone 
     established by the Commissioner pursuant to subparagraph 
     (A)(ii).

     SEC. 102. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNTS UNDER PART 
                   A OF TITLE II OF THE SOCIAL SECURITY ACT FOR 
                   INVESTING WORKERS WITH SAFE ACCOUNTS.

       (a) In General.--Section 215 of the Social Security Act (42 
     U.S.C. 415) is amended by adding at the end the following:

 ``Adjustment of Primary Insurance Amount in Relation to Deposits Made 
                            to SAFE Accounts

       ``(j)(1) Except as provided in paragraph (2), an 
     individual's primary insurance amount as determined in 
     accordance with this section (before adjustments made under 
     subsection (i)) shall be equal to--
       ``(A) the amount which would be so determined without the 
     application of this subsection, multiplied by
       ``(B) 1 minus the ratio of--
       ``(i) the sum of--
       ``(I) the total of all amounts which have been credited 
     pursuant to section 252(b) to the SAFE Account held by such 
     individual; plus
       ``(II) accrued interest on such amounts compounded annually 
     up to the date of initial benefit entitlement based on the 
     earning of the individual's SAFE Account, assuming an 
     interest rate equal to the projected interest rate of the 
     Federal Old-Age and Survivors Trust Fund; to
       ``(ii) the expected present value of all future benefits 
     paid based on the individual's earnings, as of the date of 
     initial benefit entitlement based on such earnings, assuming 
     future mortality and interest rates for the Federal Old-Age 
     and Survivors Trust Fund used in the intermediate projections 
     of the most recent Board of Trustees report under section 
     201.
       ``(2) In the case of an individual who becomes entitled to 
     disability insurance benefits under section 223, such 
     individual's primary insurance amount shall be determined 
     without regard to paragraph (1).''.

[[Page 3618]]

       (b) Conforming Amendment to Railroad Retirement Act of 
     1974.--Section 1 of the Railroad Retirement Act of 1974 (45 
     U.S.C. 231) is amended by adding at the end the following:
       ``(s) In applying applicable provisions of the Social 
     Security Act for purposes of determining the amount of the 
     annuity to which an individual is entitled under this Act, 
     section 215(j) of the Social Security Act and part B of title 
     II of such Act shall be disregarded.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to computations and recomputations 
     of primary insurance amounts occurring after December 31, 
     2006.

     SEC. 103. TAX TREATMENT OF INVESTMENT-BASED SOCIAL SECURITY.

       (a) In General.--
       (1) In general.--Subchapter F of chapter 1 of the Internal 
     Revenue Code of 1986 (relating to exempt organizations) is 
     amended by adding at the end the following new part:

              ``PART IX--INVESTMENT-BASED SOCIAL SECURITY

``Sec. 530A. Investment-based social security.

     ``SEC. 530A. INVESTMENT-BASED SOCIAL SECURITY.

       ``(a) General Rule.--The SAFE Investment Fund and each SAFE 
     Account are exempt from taxation under this subtitle. 
     Notwithstanding the preceding sentence, a personal social 
     security savings account is subject to the taxes imposed by 
     section 511 (relating to imposition of tax on unrelated 
     business income of charitable, etc. organizations).
       ``(b) Distributions.--
       ``(1) Federal annuity payment.--Any Federal annuity payment 
     (as defined under section 254(b)(1) of the Social Security 
     Act) shall be treated as a social security benefit for 
     purposes of section 86.
       ``(2) Distribution of excess assets.--Any distribution from 
     a SAFE Account under section 254(b)(3) of the Social Security 
     Act shall be includible in gross income under rules under 
     section 72.
       ``(c) Definitions.--For purposes of this section--
       ``(1) SAFE account.--The term `SAFE Account' means an 
     account established under section 252(a) of the Social 
     Security Act.
       ``(2) SAFE investment fund.--The term `SAFE Investment 
     Fund' means the fund established under section 253 of the 
     Social Security Act.''.
       (2) Clerical amendment.--The table of parts for subchapter 
     F of chapter 1 of such Code is amended by adding after the 
     item relating to part VIII the following new item:

            ``Part IX. Investment-Based Social Security.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006

     SEC. 104. STUDY ON USE OF PRIVATE ANNUITIES FOR SAFE ACCOUNT 
                   DISTRIBUTIONS.

       (a) In General.--The Social Security Investment Board shall 
     conduct a study on the use of annuities provided by private-
     sector financial institutions for the distribution of SAFE 
     account funds under section 254 of the Social Security Act.
       (b) Report.--Not later than 3 years after the date of the 
     enactment of this Act, the Social Security Investment Board 
     shall submit to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives a report describing the results of the study 
     under subsection (a).

     SEC. 105. STUDY REGARDING FINANCIAL LITERACY.

       (a) Study.--
       (1) In general.--The Social Security Investment Board shall 
     conduct a thorough study of all matters relating to programs 
     to increase the financial literacy of Americans.
       (2) Matters studied.--The matters studied by the Social 
     Security Investment Board shall include--
       (A) existing Federal and non-Federal financial literacy 
     programs, including a review and performance evaluation of 
     such programs;
       (B) the coordination of existing Federal and non-Federal 
     financial education efforts; and
       (C) ideas for new public initiatives to increase the 
     financial literacy of all Americans.
       (b) Recommendations.--The Social Security Investment Board 
     shall develop recommendations on--
       (1) streamlining existing financial literacy programs;
       (2) increasing financial literacy for all Americans; and
       (3) new avenues for public-private partnerships in 
     financial literacy.
       (c) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Social Security Investment Board 
     shall submit a report to the President and to Congress which 
     shall contain a detailed statement of the findings and 
     conclusions of the Social Security Investment Board, together 
     with its recommendations for such legislation and 
     administrative actions as it considers appropriate.

                  TITLE II--DEBT-BASED SOCIAL SECURITY

                        Subtitle A--Adjustments

     SEC. 201. MODIFICATION TO RETIREMENT AGE.

       Section 215(l)(1) of the Social Security Act (42 U.S.C. 
     416(l)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (D);
       (2) by inserting ``and before January 1, 2023,'' after 
     ``December 31, 2021,'' in subparagraph (E);
       (3) by striking the period at the end of subparagraph (E) 
     and by inserting ``; and''; and
       (4) by adding at the end the following:
       ``(F) with respect to an individual who attains early 
     retirement age after December 31, 2022, 68 years of age.''.

     SEC. 202. MODIFICATION OF PIA FACTORS TO REFLECT CHANGES IN 
                   LIFE EXPECTANCY.

       Section 215(a)(1) of the Social Security Act (42 U.S.C. 
     415(a)(1)(B)) is amended by redesignating subparagraph (D) as 
     subparagraph (F) and by inserting after subparagraph (C) the 
     following:
       ``(D)(i) For individuals who initially become eligible for 
     old-age insurance benefits in any calendar year after 2023, 
     each of the percentages under clauses (i), (ii), and (iii) of 
     subparagraph (A) shall be multiplied by the applicable factor 
     for such year with respect to each year after 2023 and before 
     the year following the year of initial eligibility.
       ``(ii) For purposes of clause (i), the term `applicable 
     factor' means the actuarial number, expressed as a percentage 
     and determined by the Commissioner of Social Security after 
     taking into account the actuarial reduction under section 
     202(q) (without regard to the amendments made by section 203 
     of the Saving Social Security Act of 2005), representing the 
     historical increase in longevity of life for the most recent 
     year .
       ``(E) For any individual who initially becomes eligible for 
     disability insurance benefits in any calendar year after 
     2023, the primary insurance amount for such individual shall 
     be equal to the greater of--
       ``(i) such amount as determined under this paragraph, or
       ``(ii) such amount as determined under this paragraph 
     without regard to subparagraph (D) thereof.''.

     SEC. 203. ACTUARIAL ADJUSTMENT FOR RETIREMENTS.

       (a) In General.--Section 202(q) of the Social Security Act 
     (42 U.S.C. 402(q)) is amended--
       (1) in paragraph (1)(A), by striking ``\5/9\'' and 
     inserting ``the applicable old-age benefit fraction 
     (determined under paragraph (12)(A))'', and by striking 
     ``\25/36\'' and inserting ``the applicable spousal benefit 
     fraction (determined under paragraph (12)(B))''; and
       (2) by adding at the end the following:
       ``(12) For purposes of paragraph (1)(A)--
       ``(A) the `applicable old-age benefit fraction' for an 
     individual who attains the age of 62 in--
       ``(i) any year before 2024, is \5/9\;
       ``(ii) 2024, is \7/12\;
       ``(iii) 2025, is \11/18\;
       ``(iv) 2026, is \23/36\;
       ``(v) 2027, is \2/3\; and
       ``(vi) 2028 or any succeeding year, is \25/36\; and
       ``(B) the `applicable spousal benefit fraction' for an 
     individual who becomes eligible for wife's or husband's 
     insurance benefits in--
       ``(i) any year before 2024, is \25/36\;
       ``(ii) 2024, is \13/18\;
       ``(iii) 2025, is \27/36\;
       ``(iv) 2026, is \7/9\;
       ``(v) 2027, is \29/36\; and
       ``(vi) 2028 or any succeeding year, is \5/6\.''.
       (b) Months Beyond First 36 Months.--Section 202(q) of such 
     Act (42 U.S.C. 402(q)) (as amended by subsection (a)) is 
     amended--
       (1) in paragraph (9)(A), by striking ``five-twelfths'' and 
     inserting ``the applicable fraction (determined under 
     paragraph (13))''; and
       (2) by adding at the end the following:
       ``(13) For purposes of paragraph (9)(A), the `applicable 
     fraction' for an individual who becomes eligible for old-age, 
     wife's, or husband's insurance benefits in--
       ``(A) any year before 2024, is \5/12\;
       ``(B) 2024, is \16/36\;
       ``(C) 2025, is \16/36\;
       ``(D) 2026, is \17/36\;
       ``(E) 2027, is \17/36\; and
       ``(F) 2028 or any succeeding year, is \1/2\.''.
       (c) Eligibility.--Section 202(q) of such Act (as amended by 
     the preceding provisions of this section) is amended further 
     by adding at the end the following new paragraph:
       ``(14) For purposes of this subsection, an individual shall 
     be deemed eligible for a benefit for a month if, upon filing 
     application therefor in such month, such individual would be 
     entitled to such benefit for such month.''.
       (d) Effective Date.--The amendments made by this subsection 
     shall apply to individuals who, in connection with old-age, 
     wife's, and husband's insurance benefits under title II of 
     the Social Security Act, become eligible for such benefits 
     (within the meaning of section 202(q)(14) of such Act (as 
     amended by this subsection)) in years after 2023.

[[Page 3619]]



         Subtitle B--Maintenance of Social Security Trust Funds

     SEC. 211. MAINTENANCE OF ADEQUATE BALANCES IN THE SOCIAL 
                   SECURITY TRUST FUNDS.

       (a) In General.--Section 201 of the Social Security Act (42 
     U.S.C. 401) is amended by adding at the end the following new 
     subsection:
       ``(o) In addition to amounts otherwise appropriated under 
     the preceding provisions of this section to the Trust Funds 
     established under this section, there is hereby appropriated 
     for each fiscal year to each of such Trust Funds, from 
     amounts in the general fund of the Treasury not otherwise 
     appropriated, such sums as may be necessary from time to time 
     to maintain the balance ratio (as defined in section 709(b)) 
     of such Trust Fund, for the calendar year commencing during 
     such fiscal year, at not less than 100 percent. The sums to 
     be appropriated under the preceding sentence shall be 
     determined by the Commissioner of Social Security and 
     certified by the Commissioner to each House of the Congress 
     not later than October 1 of such fiscal year. In making such 
     determination and certification, the Commissioner shall use 
     the intermediate actuarial assumptions used by the Board of 
     Trustees of the Trust Funds in its most recent annual report 
     to the Congress prepared pursuant to subsection (c)(2). The 
     Commissioner shall also transmit a copy of any such 
     certification to the Secretary of the Treasury, and upon 
     receipt thereof, such Secretary shall promptly take 
     appropriate actions in accordance with the certification.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to fiscal years beginning after the 
     date of the enactment of this Act.
                                 ______
                                 
      By Mr. DORGAN (for himself, Mr. Smith, Mrs. Murray, Ms. Cantwell, 
        Mr. Johnson, and Mr. Harkin):
  S. 542. A bill to amend the Internal Revenue code of 1986 to extend 
for 5 years the credit for electricity produced from certain renewable 
resources, and for other purposes; to the Committee on Finance.
  Mr. DORGAN. Mr. President, today I am joined by Senator Smith of 
Oregon and several of our colleagues in introducing legislation to 
extend the soon-to-expire tax credits in Federal law that incentivize 
the development and use of renewable energy.
  Mr. President, as you know, Federal policymakers have been working 
over the past couple of years to pass comprehensive energy reforms that 
will encourage greater domestic energy production, increase energy 
efficiency and improve the nation's overall energy security by reducing 
our dependence on imported sources of energy.
  This country imports more than 60 percent of its oil from abroad, and 
Americans have watched as oil and gas prices--and their energy bills--
have skyrocketed, in large part due to the threat of disruptions to 
energy supplies in volatile regions of the Middle East. The evidence 
also suggests that the United States is ramping up its demand for 
imported natural gas. At a recent Senate Energy Subcommittee hearing, 
for example, we heard about plans to build thirty-one new liquefied 
natural gas terminals in this country. The reason for this activity is 
that the United States is projected to import about 28 percent of our 
natural gas supply by the year 2025. Clearly, something must be done to 
reduce our reliance on energy imports. I hope that we will complete 
work on a comprehensive energy bill in this Congress that will help us 
do so.
  However, there are some fiscal policies already in place that will 
help us move toward greater energy independence and diversity. Current 
law's Federal income tax credit for facilities producing electricity 
from wind and other renewable energy sources is among the most 
important of these polices. In fact, we are told by energy developers 
year after year that the renewable energy production tax credit, PTC, 
is absolutely essential for bringing renewable energy-generated 
electricity to the marketplace at a competitive rate. Today, for 
example, our country has over 6,700 megawatts of wind energy capacity, 
or enough electric capacity to serve about 1.6 million homes. And all 
that electricity is generated on U.S. soil, producing U.S. jobs.
  Last year, Congress extended the availability of the PTC and expanded 
it to cover other forms of renewable energy--including geothermal and 
solar. I supported this effort. However, I am frustrated that Congress 
continues to undermine its own effort to develop domestic renewable 
energy resources by failing to ensure that the PTC is available for a 
longer term.
  In North Dakota, we have abundant renewable energy resources 
including wind. In fact, North Dakota's wind development potential is 
so great that many energy experts call North Dakota the ``Saudi 
Arabia'' of wind energy. And the PTC is critical for the continued 
growth of this industry in North Dakota, Oregon, and elsewhere. But the 
PTC, which is found in Section 45 of the Tax Code, is also scheduled to 
expire at the end of this year.
  That is why Senator Smith and I are introducing a bipartisan bill 
today to extend the Section 45 tax credits for producers who place new 
renewable energy facilities in service before January 1, 2011. Our 
five-year extension bill also continues the indexing of the credits for 
inflation and extends alternative minimum tax relief as provided under 
current law. Finally, the bill includes provisions to ensure that tax-
exempt cooperatives, municipal utilities and Indian tribes can receive 
the benefit of the tax credits for their investments in renewable 
energy.
  Billions of dollars of expected investments by the renewable energy 
industry will, once again, be put on hold if we fail to extend the 
credit. Inexplicably, Congress has allowed the PTC to expire three 
times since its inception in 1992. When this happens, the industry 
suffers a huge drop in investment and many good-paying jobs are lost. 
Failing to promptly extend the credit this year will prevent new 
renewable energy facilities from coming on line and lead to layoffs by 
the businesses that support this industry, including wind tower and 
turbine blade manufacturers.
  The bottom line is that short-term extensions of the renewable energy 
tax credit creates a boom and bust cycle of short-term planning, 
painful layoffs and higher than necessary project costs. Financial 
lenders stop providing the capital needed for wind energy projects 
about 4 to 6 months before the credit is scheduled to expire because of 
the uncertainty surrounding the future availability of the credit. This 
uncertainty inevitably leads to a rush to complete projects at higher 
costs, and those costs are passed along to consumers.
  In conclusion, I will be working hard with Senator Smith and others 
to get this legislation passed by the Senate as soon as possible. 
Unless we act quickly, renewable energy developers will, once again, be 
forced to suspend or cancel new projects that move us toward energy 
independence and create significant economic opportunities for a rural 
state like North Dakota.
  Mr. President, I am pleased that this legislation has already been 
endorsed by the American Wind Energy Association, the American Corn 
Growers Association and others interested in renewable energy 
development. I urge my colleagues to work with us to get this measure 
enacted into law early in this session of the 109th Congress.
                                 ______
                                 
      By Ms. SNOWE:
  S. 543. A bill to amend the Internal Revenue Code of 1986 to expand 
the availability of the cash method of accounting for small businesses, 
and for other purposes; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to re-introduce a bill that I 
offered last year that I hope will be the first in a series of 
proposals to simplify the Tax Code for small business owners. Once 
enacted, these provisions will reduce not only the amount of taxes that 
small businesses pay, but I believe they also will reduce the 
administrative burden that saddles small companies in trying to satisfy 
their tax obligation.
  Let me begin by saying how pleased I am that the President has made 
simplifying the Tax Code one of his top priorities for his second term. 
Clearly, a world-class economy such as that of the United States 
requires a world-class revenue collection system, meaning we need a Tax 
Code that is simple, consistent, and fair. For that reason, I look 
forward to seeing the recommendations that the President's tax

[[Page 3620]]

reform panel will offer on how best we can reform the current Tax Code 
to improve its efficiency and strengthen our overall economy.
  In the interim, the proposal that I am re-introducing today will 
simplify the code by permitting small business owners to use the cash 
method of accounting for reporting their income if they generally earn 
fewer than $10 million during the tax year. Currently, only those 
taxpayers that earn less than $5 million per year are able to use the 
cash method. By increasing this threshold to $10 million, more small 
businesses will be relieved of the burdensome record-keeping 
requirements that they must deal with currently in paying their income 
taxes.
  Before I talk about the specifics of this particular provision, let 
me first explain why it is so critical that we simplify the Tax Code. 
As you know, Mr. President, small businesses are the backbone of our 
nation's economy. According to the Small Business Administration, small 
businesses represent 99 percent of all employers, employ 51 percent of 
the private-sector workforce, and contribute 51 percent of the private-
sector output.
  Yet, the despite the fact that small businesses are the engine that 
drives our improving economy, the current tax system imposes entirely 
unreasonable burdens on them when they try to satisfy their tax 
obligations. As you know, the current tax code imposes a large, and 
expensive, burden on all taxpayers in terms of satisfying their 
reporting and recordkeeping obligations. The problem, though, is that 
small companies are disadvantaged most in terms of the money and time 
spent in satisfying their tax obligation vis-a-vis larger firms.
  For example, according to the Small Business Administration's Office 
of Advocacy, small businesses spend more than 8 billion hours each year 
filling-out government reports, and they spend more than 80 percent of 
this time on completing tax forms. What's even more troubling is that 
companies that employ fewer than 20 employees spend nearly $6,975 per 
employee in tax compliance costs, and this amount is nearly 60 percent 
more than companies spend with more than 500 employees.
  These statistics are disconcerting for several reasons. First, the 
fact that small businesses are being required to spend so much money on 
compliance costs means they have fewer earnings to reinvest into their 
business. This, in turn, means that they have less money to spend on 
new equipment or on worker training, which unfortunately has an adverse 
effect on their overall production and the economy as a whole.
  Second, the fact that small business owners are required to make such 
a sizeable investment of their time into completing paperwork means 
they have less time to spend on doing what they do best--namely running 
their business and creating jobs.
  Let me be clear, however, that I am in no way suggesting that small 
business owners are unique in having to pay income taxes, and I am 
certainly not expecting them to receive a free pass. In order to 
benefit from the freedoms and protections that our great country 
provides, individuals and businesses alike are required to pay taxes, 
and this duty inevitably imposes some minimum administrative and 
opportunity cost. What I am asking for, though, is a fairer, simpler 
Tax Code that allows small companies to satisfy this obligation without 
having to expend the amount of resources that they do currently.
  For that reason, the package of proposals that I hope to introduce 
will provide not only targeted, affordable tax relief to small business 
owners, but they also will simplify the rules that exist currently. By 
simplifying the Tax Code, small business owners will be able to satisfy 
their tax obligation in a cheaper, more efficient manner, and they 
consequently will be able to invest more time and resources into their 
business.
  As I mentioned earlier, the provision that I am introducing today 
will permit more taxpayers to use the cash method of accounting rather 
than the accrual method. Generally, current law permits only those 
taxpayers that earn fewer than $5 million in gross receipts during the 
tax year to use the cash method in reporting their income. In addition, 
current law precludes taxpayers that have inventory from using the cash 
method. This means that thousands of small businesses that should be 
entitled to report their income and expenses under the cash method of 
accounting are required to follow the accrual method, which tends to 
impose additional financial and administrative costs that should be 
eliminated.
  My bill changes these existing rules so that more small businesses 
will be able to use the cash method. In short, my bill increases the 
gross receipts test under current law to $10 million and indexes this 
higher threshold to account for inflation. As the current $5 million 
threshold is clearly outdated, it makes little sense to have such an 
obsolete standard for this most important provision.
  My bill also changes current law to permit those taxpayers with 
inventory to qualify for the cash method of accounting. Notably, 
however, my bill will not give these taxpayers an opportunity to simply 
recover costs associated with these otherwise inventoriable assets in 
the year of purchase. Rather, my bill will require these taxpayers to 
account for such costs as if they are a material or supply that is not 
incidental. This standard already exists under current law, and it is 
one with which many small businesses are already familiar. As such, 
this less-burdensome standard should ease the existing compliance 
burden for eligible taxpayers and allow them to devote more time and 
resources to their business.
  Importantly, these changes will not reduce the amount of taxes a 
small business pays by even one dollar. Indeed, the overall amount of 
taxes a qualifying small business pays will remain the same. Rather, 
this bill simply permits more taxpayers to report income and account 
for costs in the year of the receipt or expenditure. Clearly, this 
method is much easier and simpler for small taxpayers, and it will 
reduce both their time and monetary expenditures spent on complying 
with the Tax Code.

                          ____________________