[Congressional Record (Bound Edition), Volume 151 (2005), Part 4]
[Senate]
[Pages 5645-5662]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BURNS:
  S. 696. A bill to amend the Elementary and Secondary Education Act of 
1965 regarding the transfer of students from certain schools; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. BURNS. Mr. President, I rise today to introduce a bill to amend 
the Elementary and Secondary Education Act with regard to the transfer 
of students from certain schools. The No Child Left Behind Act of 2001 
includes a requirement that schools not meeting adequate yearly 
progress--the AYP--for 2 consecutive years must provide transfer within 
the school district, and if no such schools exist, make efforts to 
provide transfers between school districts to the extent practical. 
This is the school choice provision. However, the current law's 
guidance on school choice does not adequately define practicality or 
feasibility, and where definitions are provided, they are overly broad.
  We have just come off the Easter break. We had an opportunity to talk 
to a lot of educators and students. We return to our work starting 
today to make some significant--maybe not significant changes, but 
little changes to No Child Left Behind to make it more practical and 
make it more common sense in States such as Montana.
  When we start looking at these maps, and as the President pro tempore 
leaves the Chamber, he understands what rural is when he looks at his 
State of Alaska. We are not nearly as big as Alaska. However, when we 
look at the State of Montana--and for those who wonder about distances 
and sizes, from the Yak, which is up in the northwest corner of the 
State, to Alzada in the southeast corner, it is farther than it is from 
Chicago to Washington, DC. So there is a pretty fair chunk of land out 
here, and we have young folks who go to school in just about every part 
of the State.
  These are the elementary schools I am going to talk about as I speak 
on No Child Left Behind and the legislation I am introducing today.
  The bottom line is No Child Left Behind is not a one-size-fits-all 
legislation. We have some of the greatest teachers there are in the 
country, and we have some of the brightest minds to teach. Accordingly, 
it is imperative that Congress continues to hear the needs and concerns 
of America's rural education communities.
  Just to give my colleagues an idea, I had a little bit to do with the 
passage and the shaping of the 1996 Telecommunications Act. In that 
bill, we had a piece included called broadband. Back in those days, 
most folks had not heard of the Internet, broadband, or digital. There 
were not very many of us around here who were even computer literate. 
We are getting better. We are getting a little younger.
  I can remember when we put the broadband section in the bill, 
primarily to do two things in my State: distance learning, allowing 
these smaller schools in rural areas to access the Internet and classes 
to be taught via a two-way interact from another location so that their 
curriculum could be broadened, just like a school, say, located in 
Billings, Great Falls, Missoula. Just because someone was born way out 
here and went to school in Jordan, MT, where we have a county the size 
of Rhode Island--it only has 1,800 folks and only one high school. It 
used to be a boarding school. I do not think it is anymore. But it used 
to be when you took your student to school on Monday morning, you did 
not see them until Friday night after the football game was over. So we 
deal in a little bit different kind of environment and situation.
  The Federal law must recognize the significant differences between 
urban and rural school districts with regard to student transportation, 
school spacing, and, of course, the school-of-choice options. Although 
No Child Left Behind leaves the State of Montana in control of 
determining the feasibility of transfers between different school 
districts, it is much less flexible when it comes to transfers within 
the same school district.
  My legislation would add to existing guidelines on the practicality 
and the feasibility of school choice that a school district would not 
be required to provide a student with a transfer option to another 
school if providing the option is impractical due to the distance to be 
traveled, a geographical barrier or hazard, the duration of the travel, 
or an unusually high cost of travel. However, if choice is not offered 
under the latter circumstances, students in affected schools will still 
receive valuable supplemental education services, and school districts 
will still have the option to provide students school learning choices 
through distance learning programs or virtual schools or several other 
options offered under current law.
  We are pretty sparse in eastern Montana. From Miles City to Jordan is 
about 90 miles. I was talking about Jordan a while ago up on the big 
dry creek. You heard me say I have a lot of dirt between light bulbs 
out there. Well, we have a lot of land between schools out there also, 
and school districts can be quite large. The centers of Billings, Great 
Falls, Missoula, the Flat Head, or even Bozeman are grouped pretty 
closely. In eastern Montana, however, they are far apart. We have 
elementary schools not even on paved roads, still on gravel. I know one 
that is still on a mud road. If it rains real hard or during the spring 
thaw, they cannot get a car in there or a pickup truck or even a four-
wheel drive vehicle, so they all ride horses, which is not a bad idea. 
It saves on gas, and as high as gas is, it probably isn't a bad idea at 
all. This is a map of the elementary schools to give an idea of where 
they are located way out there.
  Now, I want to take a look at the high schools. There are not as many 
of them. What are you going to do if a school in Miles City is in need 
of improvement under the current law? Where are you going to send them? 
To Broadus? I don't think so. That is another 80 or 90 miles. Pretty 
soon the miles start adding up.
  Right now the law requires the schools to pay for students to 
transfer them in the same district unless doing so is too expensive. In 
Montana, as with many rural schools in rural States, there are 
considerations greater than just cost. While the law makes sense in 
Billings, it does not work in districts where the schools are farther 
apart.
  Take the Broadus County School District in southeastern Montana as an 
example. As we can see, there is a lot of distance between schools. 
There are not very many schools out there. These are high schools. 
These are not elementary schools but high schools. Some may take up to 
2 hours one way to drive. It not only hurts the family life of the 
students, but it disrupts what they do and also has an adverse effect 
on their academic performance.
  Sometimes this type of commute may be necessary. My legislation

[[Page 5646]]

makes this decision a matter for rural States to decide instead of the 
politicians here in Washington, DC, or by a rule written into a law 
that just is unworkable in my State.
  I realize No Child Left Behind had some built-in flexibilities, and I 
also realize that some States did not take advantage of some of those 
flexibilities. Now we are locked into a situation where it is almost 
impossible to change unless we change the legislation and reword it. My 
legislation simply clarifies what is feasible and practical for school 
choice transfers within school districts and gives the States, 
especially my State, the ability to treat schools in rural Broadus 
differently than it treats schools in more urbanized Billings, MT.
  I would imagine the Senator from Florida who is new to this body and 
a terrific addition to this body has some rural areas in Florida. We 
think of Florida as more urbanized, but they have some rural areas too, 
just like Montana. That does not mean there are kids out there whose 
needs should not be addressed.
  When we visit schools, we get all kinds of questions from the 
students. I was visiting a sixth-grade class the other day. They came 
up with all kinds of questions. Some of them were pretty good, some 
were not so good. I did have one that was just a little bit different. 
This young man stood up in sixth grade, and he said: Senator, what do 
you want written on your tombstone? My gosh, I never had that question 
before, and I did not know exactly how to handle it, so I just told 
him: He's not here yet. That is the only way I could answer him.
  These young people are very bright. They like their schools in these 
areas with distance learning. And we have telemedicine. We are 
delivering medical care much differently now. We are doing it with 
broadband services. We have 14 counties that do not have a doctor. It 
is done by physician assistants and many other people.
  The other day a student from our part of the country enrolled at 
Montana State University at Billings. He had taken enough courses in 
his senior year in distance learning from MSUB that he has a full 
semester completed. So when he goes away to school, he already has half 
a year done.
  This is why we have the Telecommunications Act. This is why we have 
the No Child Left Behind Act. We have to look at schools and libraries 
and some of the kinks we have to work out in that law so that these 
smaller schools and libraries can get their moneys so they can offer 
this online education. This is just another part of tweaking the No 
Child Left Behind law to make it work in rural areas.
  I urge my Senate colleagues, especially those from rural States, to 
join me in cosponsoring this bill because it is very important. If we 
are really dedicated to the program of No Child Left Behind, we cannot 
leave rural children behind either, and we have to make it work.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 696

       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 ``Rural Schools Geography 
     Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) There are significant differences between urban and 
     rural school districts with regard to student transportation, 
     distances between schools and school districts, and school of 
     choice options. Local educational agencies (LEAs) in rural 
     areas often have only 1 school servicing a particular grade-
     level, and the distance between these schools is often much 
     greater than in urban areas. These differences are not 
     addressed by existing guidelines under the Elementary and 
     Secondary Education Act of 1965.
       (2) In 2000, rural schools (those in communities with 
     populations below 2,500) taught 32 percent of the children in 
     the United States, but rural schools accounted for 
     $5,670,000,000 of the Nation's spending on school 
     transportation, or nearly half of such spending.
       (3) Rural transportation costs, per-pupil, are double that 
     of urban transportation costs. As a percentage of total 
     spending, rural areas spend 77 percent more than urban areas 
     for education transportation.
       (4) Commutes in rural areas are much more likely to be on 
     rougher, unpaved roads. This not only undermines the physical 
     health of the students, but makes transportation during poor 
     weather much more difficult or impossible. Students with 
     longer commutes are more likely to miss school because of 
     inclement weather. School attendance is an important factor 
     in school performance.
       (5) School students who have long commutes actively avoid 
     advanced and high-level courses because they do not have time 
     for the extra homework. This self-imposed restriction retards 
     maximization of educational potential.
       (6) Students with long commutes are less likely to engage 
     in in-home and out-of-home activities, such as family 
     dinners, after-school jobs, and athletic or musical 
     extracurricular activities. Participation in these activities 
     benefits overall educational progress.
       (7) Section 1116(b)(10)(C) of the Elementary and Secondary 
     Education Act of 1965 instructs that the lowest achieving 
     children be given priority for out-of-district 
     transportation. Thus, the negative impacts of long commutes 
     disproportionately affect the very students who need the most 
     help.

     SEC. 3. AMENDMENT TO THE ELEMENTARY AND SECONDARY EDUCATION 
                   ACT OF 1965.

       Section 1116 of the Elementary and Secondary Education Act 
     of 1965 (20 U.S.C. 6316) is amended by adding at the end the 
     following:
       ``(i) Geography Limits.--Notwithstanding subsections (b) 
     and (c), a local educational agency shall not be required to 
     provide a student the option to transfer to another school 
     pursuant to this section if providing the option is 
     impractical due to the distance to be traveled, a 
     geographical barrier or hazard, the duration of the travel, 
     or an unusually high cost of travel.''.

     SEC. 4. ADMINISTRATION.

       The Secretary of Education, not later than 180 days after 
     the date of enactment of this Act, shall promulgate such 
     regulations as the Secretary determines necessary to 
     implement this Act.

     SEC. 5. EFFECTIVE DATE.

       The amendment made by section 3 shall take effect on the 
     first July 1 that occurs after the date of enactment of this 
     Act.
                                 ______
                                 
      By Mr. OBAMA (for himself and Mr. Inouye):
  S. 697. A bill to amend the Higher Education Act of 1965 to improve 
higher education, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. OBAMA. Mr. President, I rise today to introduce the Higher 
Education Opportunity Through Pell Grant Expansion Act of 2005, or HOPE 
Act.
  Right now, in schools, playgrounds, and backyards across America, 
children are dreaming about what they want to be when they grow up. As 
tomorrow's astronauts, doctors, and teachers dream about their futures, 
their parents know that so many of those dreams are dependent on a 
college diploma.
  The families I have met in Illinois are worried that they might not 
be able to give their kids a chance at that diploma. Everywhere I go, I 
hear the same story: we work hard, we pay our bills, we cut corners, 
and we put away savings, but we just don't know if it is going to be 
enough when the tuition bill comes in the mail.
  The facts and statistics are not encouraging. College tuition is 
rising at a stunning rate of almost 10 percent a year, and over the 
last 25 years it is gone up an astounding 519 percent. Because of these 
rising prices, over 200,000 students were priced out of a college 
education last year.
  In a country with so much wealth and opportunity for education, it is 
difficult to imagine there are parents who are forced to say to their 
kids: ``We're sorry. We can't afford to send you to college.'' None of 
us in the Senate should rest until those parents can start saying 
``yes'' to their kids.
  This bill would start us down that path by increasing access to Pell 
grants. Today, these need-based awards are used by 5.3 million 
undergraduate students to fund their education. Unfortunately, the 
awards just haven't kept up with the rising price of tuition or even 
inflation. As a result, the current $4,050 Pell grant maximum is $700 
less in real terms than the maximum grant 30 years ago. Pell grants now 
cover only 23 percent of the total cost of the average 4-year public 
college.
  The HOPE Act would correct this problem by raising the Pell grant 
maximum to $5,100, and it would continue

[[Page 5647]]

to raise this maximum in future years to keep up with inflation. The 
bill also would make sure that no student sees a reduction in Pell 
grant assistance due to recent changes in the eligibility formula.
  Because working families are already burdened with too many taxes, 
this bill would not add to the deficit or raise a dime of taxes. 
Instead, it will close two loopholes that guarantee banks and private 
lenders an additional $2 billion in taxpayer subsidies every year on 
top of the interest that college students and their families are 
already paying on their loans. In a country where 200,000 students were 
priced out of college last year, our tax dollars shouldn't be spent 
subsidizing banks that are already making record profits.
  When our children dream about their future, they need to know those 
dreams are within their reach. A college education forms the foundation 
of the opportunity society that will keep this country strong and 
growing in the 21st century. I know we can work together to get this 
done, and I look forward to doing so.
  I urge my colleagues to support the HOPE Act.
  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. 697

       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 ``Higher Education Opportunity 
     Through Pell Grant Expansion Act''.

     SEC. 2. SENSE OF THE SENATE.

       (a) Findings.--The Senate makes the following findings:
       (1) Federal Pell Grants are need-based and are used by 
     5,300,000 undergraduate students to fund their college 
     educations.
       (2) Over 90 percent of Federal Pell Grant recipients come 
     from a family with a combined income of less than $40,000.
       (3) Because of the rising cost of college tuition, the 
     maximum Federal Pell Grant amount of $4,050 for academic year 
     2004-2005 is $700 less in real terms than the maximum Federal 
     Pell Grant amount for academic year 1975-1976.
       (4) Federal Pell Grants for academic year 2003-2004 cover 
     only 23 percent of the total cost of the average 4-year 
     public college.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that--
       (1) eligible undergraduate students should receive the 
     maximum Federal Pell Grant amount established by the 
     amendment made by section 3(b) of this Act; and
       (2) sufficient funds should be appropriated to allow the 
     awarding of the maximum Federal Pell Grant amount for which 
     students are eligible pursuant to the amendment made by 
     section 3(b) of this Act.

     SEC. 3. FEDERAL PELL GRANTS.

       (a) Appropriation of Funds for Federal Pell Grants.--In 
     addition to any amounts otherwise appropriated to carry out 
     subpart 1 of part A of title IV of the Higher Education Act 
     of 1965 (20 U.S.C. 1070a) for the fiscal year ending 
     September 30, 2006, there are authorized to be appropriated 
     and there are appropriated, out of any money in the Treasury 
     not otherwise appropriated for the fiscal year ending 
     September 30, 2006, for carrying out such subpart 1, an 
     additional $2,000,000,000.
       (b) Authorization Amount and Maximum Federal Pell Grant.--
     Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 
     U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
       ``(2)(A)(i) The amount of a Federal Pell Grant for a 
     student eligible under this part shall be $5,100 for academic 
     year 2005-2006, less an amount equal to the amount determined 
     to be the expected family contribution with respect to that 
     student for that year.
       ``(ii) The Secretary shall cumulatively adjust the amount 
     in clause (i) every 2 academic years beginning with academic 
     year 2006-2007 to account for any percentage increase in the 
     Consumer Price Index for All Urban Consumers published by the 
     Bureau of Labor Statistics of the Department of Labor.''.

     SEC. 4. ALLOWANCE FOR STATE AND OTHER TAXES.

       Notwithstanding any other provision of law, the annual 
     updates to the allowance for State and other taxes in the 
     tables used in the Federal Needs Analysis Methodology to 
     determine a student's expected family contribution for the 
     award year 2005-2006 under part F of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1087kk et seq.), published 
     in the Federal Register on Thursday, December 23, 2004 (69 
     Fed. Reg. 76926), shall not apply to a student to the extent 
     the updates will increase the student's expected family 
     contribution under such part F.

     SEC. 5. TERMINATION OF EXCESSIVE ALLOWANCES.

       Section 438(b)(2)(B) of the Higher Education Act of 1965 
     (20 U.S.C. 1087-1(b)(2)(B)) is amended by striking clause (v) 
     and inserting the following:
       ``(v) This subparagraph shall not apply to--

       ``(I) any loan made or purchased after the date of 
     enactment of the Higher Education Opportunity Through Pell 
     Grant Expansion Act;
       ``(II) any loan that had not qualified before such date of 
     enactment for receipt of a special allowance payment 
     determined under this subparagraph; or
       ``(III) any loan made or purchased before such date of 
     enactment with funds described in the first or second 
     sentence of clause (i) if--

       ``(aa) the obligation described in the first such sentence 
     has, after such date of enactment, matured, or been retired 
     or defeased; or
       ``(bb) the maturity date or the date of retirement of the 
     obligation described in the first such sentence has, after 
     such date of enactment, been extended.''.

     SEC. 6. WINDFALL PROFIT OFFSET.

       Section 438 of the Higher Education Act of 1965 (20 U.S.C. 
     1087-1) is further amended by adding at the end the 
     following:
       ``(g) Windfall Profit Offset.--At the end of every fiscal 
     quarter for which an eligible lender does not receive a 
     special allowance payment under this section, the eligible 
     lender shall pay to the Secretary of the Treasury for deposit 
     into the Treasury as miscellaneous receipts a windfall profit 
     offset payment for the fiscal quarter equal to the amount by 
     which--
       ``(1) the aggregate amount of all payments of interest 
     received by the eligible lender from borrowers on all loans 
     made, insured, or guaranteed under this part during the 
     fiscal quarter; exceeds
       ``(2) interest guaranteed the lender under this section for 
     the fiscal quarter, irrespective of the amount received under 
     subparagraph (A).''.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Bunning, Mr. Johnson, Mr. Talent, 
        and Mr. Craig):
  S. 702. A bill to amend the Internal Revenue Code of 1986 to repeal 
the occupational taxes relating to distilled spirits, wine, and beer; 
to the Committee on Finance.
  Mr. BAUCUS. Mr. President, it is with great pleasure that I join my 
colleagues Senators Bunning, Johnson and Talent today in introducing 
legislation that will repeal the special occupational tax on taxpayers 
who manufacture, distribute, and sell alcoholic beverages.
  The special occupational tax is not a tax on alcoholic products, but 
rather operates as a license fee on businesses. The tax is imposed on 
those engaged in the business of selling alcohol beverages. Believe it 
or not, this tax was originally established to help finance the Civil 
War. That war is over, and this inequitable tax has outlived its 
original purpose. Repealing the SOT will also simplify the tax code for 
thousands of small businesses.
  The SOT on alcohol dramatically increased during the budget process 
in 1988 and has unfairly burdened business owners across the country 
since. From Thompson Falls to Sidney, from Chinook to Billings, small 
businesses are burdened with yet another tax in the form of the SOT. 
According to the Alcohol and Tobacco, Tax and Trade Bureau, there are 
426,193 locations nationwide that pay the SOT every year, including 
399,657 retailers. These retail establishments account for $99 million 
out of $103 million collected in SOT revenues.
  In Montana, there are 2,969 locations which together pay nearly $1 
million in the SOT every year. Seasonal resorts in Whitefish and 
Yellowstone, ``mom and pop'' convenience stores in Butte, and bowling 
alleys, flower shops, and restaurants across Montana, and the United 
States, pay the Federal Government over $100 million per year for the 
privilege of running businesses that sell beer, wine, or alcoholic 
beverages.
  The SOT is extremely regressive. Retailers must annually pay $250 per 
location; wholesalers pay $500; vintners and distillers pay $1,000. 
Because the SOT is levied on a per location basis, a sole 
proprietorship must pay the same amount as one of the nation's largest 
retailers, and locally-owned chains having to pay per location, would 
have to pay as much as, if not more than, the nation's largest single 
site brewery. This is not what Congress had in mind 150 years ago, and 
I don't believe it's a situation we want today.

[[Page 5648]]

  Repealing the SOT on alcohol is supported by a broad-based group of 
business organizations and enjoys wide-spread bipartisan support on 
Capitol Hill. Last year, we made progress in ending this burdensome tax 
on small businesses. We repealed the tax for three years. More can be 
done. Business owners across the United States deserve assurance that 
they won't be hit with this antiquated tax down the line.
  The legislation preserves the TTB's record-keeping requirements, 
while removing the agency's enforcement burden, and will save over $2 
million per year. The GAO examined SOT efficacy several times, and 
found it fundamentally flawed. The Joint Committee on Taxation called 
for the elimination of SOT in its June 2001 simplification study.
  More than 90 percent of all SOT revenue comes from retailers--a great 
majority of those are small businesses. Our small business sector is a 
great strength of our economy. President Bush has said that the best 
way to encourage job growth is to let small businesses keep more of 
their own money, so they can invest in their business and make it 
easier for somebody to find work. Repealing the SOT would provide an 
immediate and visible tax cut to small business owners.
  In recent months, there has been much talk of tax reform inside the 
beltway. President Bush has made tax reform one of his key priorities 
and established a panel that will make recommendations to the 
Department of Treasury for a better tax system. Getting rid of a tax 
that has outlived its original purpose is one small step toward reform 
that makes sense for Montana and our country. We urge our colleagues to 
join us in this endeavor.
  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. 702

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

     SECTION 1. REPEAL OF OCCUPATIONAL TAXES RELATING TO DISTILLED 
                   SPIRITS, WINE, AND BEER.

       (a) Repeal of Occupational Taxes.--
       (1) In general.--The following provisions of part II of 
     subchapter A of chapter 51 of the Internal Revenue Code of 
     1986 (relating to occupational taxes) are hereby repealed:
       (A) Subpart A (relating to proprietors of distilled spirits 
     plants, bonded wine cellars, etc.).
       (B) Subpart B (relating to brewer).
       (C) Subpart D (relating to wholesale dealers) (other than 
     sections 5114 and 5116).
       (D) Subpart E (relating to retail dealers) (other than 
     section 5124).
       (E) Subpart G (relating to general provisions) (other than 
     sections 5142, 5143, 5145, and 5146).
       (2) Nonbeverage domestic drawback.--Section 5131 of such 
     Code is amended by striking ``, on payment of a special tax 
     per annum,''.
       (3) Industrial use of distilled spirits.--Section 5276 of 
     such Code is hereby repealed.
       (b) Conforming Amendments.--
       (1)(A) The heading for part II of subchapter A of chapter 
     51 of the Internal Revenue Code of 1986 and the table of 
     subparts for such part are amended to read as follows:

                  ``PART II--MISCELLANEOUS PROVISIONS

``Subpart A. Manufacturers of stills. 
``Subpart B. Nonbeverage domestic drawback claimants. 
``Subpart C. Recordkeeping and registration by dealers. 
``Subpart D. Other provisions.''.
       (B) The table of parts for such subchapter A is amended by 
     striking the item relating to part II and inserting the 
     following new item:

``Part II. Miscellaneous provisions.''.

       (2) Subpart C of part II of such subchapter (relating to 
     manufacturers of stills) is redesignated as subpart A.
       (3)(A) Subpart F of such part II (relating to nonbeverage 
     domestic drawback claimants) is redesignated as subpart B and 
     sections 5131 through 5134 are redesignated as sections 5111 
     through 5114, respectively.
       (B) The table of sections for such subpart B, as so 
     redesignated, is amended--
       (i) by redesignating the items relating to sections 5131 
     through 5134 as relating to sections 5111 through 5114, 
     respectively, and
       (ii) by striking ``and rate of tax'' in the item relating 
     to section 5111, as so redesignated.
       (C) Section 5111 of such Code, as redesignated by 
     subparagraph (A), is amended--
       (i) by striking ``AND RATE OF TAX'' in the section heading,
       (ii) by striking the subsection heading for subsection (a), 
     and
       (iii) by striking subsection (b).
       (4) Part II of subchapter A of chapter 51 of such Code is 
     amended by adding after subpart B, as redesignated by 
     paragraph (3), the following new subpart:

                 ``Subpart C--Recordkeeping by Dealers

``Sec. 5121. Recordkeeping by wholesale dealers.
``Sec. 5122. Recordkeeping by retail dealers.
``Sec. 5123. Preservation and inspection of records, and entry of 
              premises for inspection.''.

       (5)(A) Section 5114 of such Code (relating to records) is 
     moved to subpart C of such part II and inserted after the 
     table of sections for such subpart.
       (B) Section 5114 of such Code is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5121. RECORDKEEPING BY WHOLESALE DEALERS.'',

     and
       (ii) by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Wholesale Dealers.--For purposes of this part--
       ``(1) Wholesale dealer in liquors.--The term `wholesale 
     dealer in liquors' means any dealer (other than a wholesale 
     dealer in beer) who sells, or offers for sale, distilled 
     spirits, wines, or beer, to another dealer.
       ``(2) Wholesale dealer in beer.--The term `wholesale dealer 
     in beer' means any dealer who sells, or offers for sale, 
     beer, but not distilled spirits or wines, to another dealer.
       ``(3) Dealer.--The term `dealer' means any person who 
     sells, or offers for sale, any distilled spirits, wines, or 
     beer.
       ``(4) Presumption in case of sale of 20 wine gallons or 
     more.--The sale, or offer for sale, of distilled spirits, 
     wines, or beer, in quantities of 20 wine gallons or more to 
     the same person at the same time, shall be presumptive 
     evidence that the person making such sale, or offer for sale, 
     is engaged in or carrying on the business of a wholesale 
     dealer in liquors or a wholesale dealer in beer, as the case 
     may be. Such presumption may be overcome by evidence 
     satisfactorily showing that such sale, or offer for sale, was 
     made to a person other than a dealer.''.
       (C) Paragraph (3) of section 5121(d) of such Code, as so 
     redesignated, is amended by striking ``section 5146'' and 
     inserting ``section 5123''.
       (6)(A) Section 5124 of such Code (relating to records) is 
     moved to subpart C of part II of subchapter A of chapter 51 
     of such Code and inserted after section 5121.
       (B) Section 5124 of such Code is amended--
       (i) by striking the section heading and inserting the 
     following new heading:

     ``SEC. 5122. RECORDKEEPING BY RETAIL DEALERS.'',

       (ii) by striking ``section 5146'' in subsection (c) and 
     inserting ``section 5123'', and
       (iii) by redesignating subsection (c) as subsection (d) and 
     inserting after subsection (b) the following new subsection:
       ``(c) Retail Dealers.--For purposes of this section--
       ``(1) Retail dealer in liquors.--The term `retail dealer in 
     liquors' means any dealer (other than a retail dealer in beer 
     or a limited retail dealer) who sells, or offers for sale, 
     distilled spirits, wines, or beer, to any person other than a 
     dealer.
       ``(2) Retail dealer in beer.--The term `retail dealer in 
     beer' means any dealer (other than a limited retail dealer) 
     who sells, or offers for sale, beer, but not distilled 
     spirits or wines, to any person other than a dealer.
       ``(3) Limited retail dealer.--The term `limited retail 
     dealer' means any fraternal, civic, church, labor, 
     charitable, benevolent, or ex-servicemen's organization 
     making sales of distilled spirits, wine or beer on the 
     occasion of any kind of entertainment, dance, picnic, bazaar, 
     or festival held by it, or any person making sales of 
     distilled spirits, wine or beer to the members, guests, or 
     patrons of bona fide fairs, reunions, picnics, carnivals, or 
     other similar outings, if such organization or person is not 
     otherwise engaged in business as a dealer.
       ``(4) Dealer.--The term `dealer' has the meaning given such 
     term by section 5121(c)(3).''.
       (7) Section 5146 of such Code is moved to subpart C of part 
     II of subchapter A of chapter 51 of such Code, inserted after 
     section 5122, and redesignated as section 5123.
       (8) Subpart C of part II of subchapter A of chapter 51 of 
     such Code, as amended by paragraph (7), is amended by adding 
     at the end the following new section:

     ``SEC. 5124. REGISTRATION BY DEALERS.

       ``Every dealer who is subject to the recordkeeping 
     requirements under section 5121 or 5122 shall register with 
     the Secretary such dealer's name or style, place of 
     residence, trade or business, and the place where such trade 
     or business is to be carried on. In case of a firm or 
     company, the names of the several persons constituting the 
     same, and the places of residence, shall be so registered.''.
       (9) Section 7012 of such Code is amended by redesignating 
     paragraphs (4) and (5) as paragraphs (5) and (6), 
     respectively, and by inserting after paragraph (3) the 
     following new paragraph:

[[Page 5649]]

       ``(4) For provisions relating to registration by dealers in 
     distilled spirits, wines, and beer, see section 5124.''.
       (10) Part II of subchapter A of chapter 51 of such Code is 
     amended by inserting after subpart C the following new 
     subpart:

                     ``Subpart D--Other Provisions

``Sec. 5131. Packaging distilled spirits for industrial uses.
``Sec. 5132. Prohibited purchases by dealers.''.

       (11) Section 5116 of such Code is moved to subpart D of 
     part II of subchapter A of chapter 51 of such Code, inserted 
     after the table of sections, redesignated as section 5131, 
     and amended by inserting ``(as defined in section 5121(c))'' 
     after ``dealer'' in subsection (a).
       (12) Subpart D of part II of subchapter A of chapter 51 of 
     such Code is amended by adding at the end the following new 
     section:

     ``SEC. 5132. PROHIBITED PURCHASES BY DEALERS.

       ``(a) In General.--Except as provided in regulations 
     prescribed by the Secretary, it shall be unlawful for a 
     dealer to purchase distilled spirits for resale from any 
     person other than a wholesale dealer in liquors who is 
     required to keep the records prescribed by section 5121.
       ``(b) Limited Retail Dealers.--A limited retail dealer may 
     lawfully purchase distilled spirits for resale from a retail 
     dealer in liquors.
       ``(c) Penalty and Forfeiture.--

``For penalty and forfeiture provisions applicable to violations of 
              subsection (a), see sections 5687 and 7302.''.

       (13) Subsection (b) of section 5002 of such Code is 
     amended--
       (A) by striking ``section 5112(a)'' and inserting ``section 
     5121(c)(3)'',
       (B) by striking ``section 5112'' and inserting ``section 
     5121(c)'',
       (C) by striking ``section 5122'' and inserting ``section 
     5122(c)''.
       (14) Subparagraph (A) of section 5010(c)(2) of such Code is 
     amended by striking ``section 5134'' and inserting ``section 
     5114''.
       (15) Subsection (d) of section 5052 of such Code is amended 
     to read as follows:
       ``(d) Brewer.--For purposes of this chapter, the term 
     `brewer' means any person who brews beer or produces beer for 
     sale. Such term shall not include any person who produces 
     only beer exempt from tax under section 5053(e).''.
       (16) The text of section 5182 of such Code is amended to 
     read as follows:

``For provisions requiring recordkeeping by wholesale liquor dealers, 
              see section 5112, and by retail liquor dealers, see 
              section 5122.''.

       (17) Subsection (b) of section 5402 of such Code is amended 
     by striking ``section 5092'' and inserting ``section 
     5052(d)''.
       (18) Section 5671 of such Code is amended by striking ``or 
     5091''.
       (19)(A) Part V of subchapter J of chapter 51 of such Code 
     is hereby repealed.
       (B) The table of parts for such subchapter J is amended by 
     striking the item relating to part V.
       (20)(A) Sections 5142, 5143, and 5145 of such Code are 
     moved to subchapter D of chapter 52 of such Code, inserted 
     after section 5731, redesignated as sections 5732, 5733, and 
     5734, respectively, and amended by striking ``this part'' 
     each place it appears and inserting ``this subchapter''.
       (B) Section 5732 of such Code, as redesignated by 
     subparagraph (A), is amended by striking ``(except the tax 
     imposed by section 5131)'' each place it appears.
       (C) Paragraph (2) of section 5733(c) of such Code, as 
     redesignated by subparagraph (A), is amended by striking 
     ``liquors'' both places it appears and inserting ``tobacco 
     products and cigarette papers and tubes''.
       (D) The table of sections for subchapter D of chapter 52 of 
     such Code is amended by adding at the end the following:

``Sec. 5732. Payment of tax.
``Sec. 5733. Provisions relating to liability for occupational taxes.
``Sec. 5734. Application of State laws.''.

       (E) Section 5731 of such Code is amended by striking 
     subsection (c) and by redesignating subsection (d) as 
     subsection (c).
       (21) Subsection (c) of section 6071 of such Code is amended 
     by striking ``section 5142'' and inserting ``section 5732''.
       (22) Paragraph (1) of section 7652(g) of such Code is 
     amended--
       (A) by striking ``subpart F'' and inserting ``subpart B'', 
     and
       (B) by striking ``section 5131(a)'' and inserting ``section 
     5111''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2005, but shall not apply to 
     taxes imposed for periods before such date.
                                 ______
                                 
      By Mr. SARBANES:
  S. 705. A bill to establish the Interagency Council on Meeting the 
Housing and Service Needs of Seniors, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. SARBANES. Mr. President, today I am introducing legislation to 
establish an Interagency Council on Meeting the Housing and Service 
Needs of Seniors, which will help the Federal Government work with its 
partners to meet the growing housing and related needs of senior 
citizens around the country. The Interagency Council will work to 
better coordinate Federal programs so that seniors and their families 
can access the programs and the services necessary to allow them to age 
in place or find suitable housing alternatives.
  It is important that we take note of the needs of this rapidly 
growing senior population. In 2000, the population over 65 years of age 
was 34.7 million. This number is expected to grow to over 50 million by 
2020. By the year 2030, nearly one-fifth of the United States 
population will be above 65 years of age.
  In recognition of the importance of this issue, in 1999 Congress 
established the Commission on Affordable Housing and Health Facility 
Needs for Seniors--``Seniors Commission''--to assess the Federal role 
in senior housing, health and supportive services. The Seniors 
Commission made a number of significant findings. For example, the 
commission found that seniors require a wide array of housing options 
with access to services, including meal preparation, transportation, 
health care, and assistance with daily activities. According to the 
Seniors Commission, over 18 percent of senior citizens--over 5.8 
million seniors--who do not reside in nursing facilities have 
difficulty performing their daily activities without assistance. Over a 
million of these seniors are severely impaired, requiring assistance 
with many of their basic tasks. Many other seniors, those that can 
perform their daily functions, still require access to health care, 
transportation and other services. Without enhanced housing 
opportunities, such as service-enriched housing or assisted living 
facilities, these seniors find it increasingly difficult to remain 
outside of nursing homes or other institutional settings. In fact, the 
Seniors Commission found that ``many seniors across the income spectrum 
are at risk of institutionalization or neglect due to declining health 
and the loss or absence of support and timely interventions.'' For many 
seniors, in-home care, service-enriched housing, retrofitted homes and 
apartments, and assisted living-type facilities are sorely needed so 
that seniors can access necessary services where they live.
  While there are numerous Federal programs that assist seniors and 
their families in meeting these needs, they are fragmented across many 
government agencies, with little or no coordination. In fact, the 
Seniors Commission found that ``the most striking characteristic of 
seniors' housing and health care in this country is the disconnection 
of one field from another.'' For example, housing assistance is 
available from the Department of Housing and Urban Development, the 
Department of Agriculture, and the Department of Veterans Affairs, 
while health care and supportive services are most likely accessed 
through various branches of the Department of Health and Human 
Services, such as the Centers for Medicaid and Medicare Services and 
the Administration on Aging, as well as through the Department of 
Transportation and the Department of Labor.
  The Seniors Commission concluded that ``the time has come for 
coordination among Federal and State agencies and administrators.'' The 
legislation I am introducing today, the ``Meeting the Housing and 
Service Needs of Seniors Act of 2005,'' answers the commission's call 
to action by implementing the recommendation for better federal 
coordination.
  Through a high-level interagency council the Federal Government will 
take a simple, but critical, step in addressing this fragmentation. 
This Council will have a variety of functions. The council will review 
all Federal programs designed to assist seniors, identify gaps in 
services, make recommendations about how to reduce duplication, 
identify best practices for relevant programs and services, and most 
importantly, work to improve the availability of housing and services 
for seniors. The council will also monitor, evaluate, and recommend 
improvements in existing programs and services that assist seniors in 
meeting their housing and service needs at the

[[Page 5650]]

Federal, State, and local level, and will work to more effectively 
coordinate programs at the federal level, as well as at the state 
level, where many of the decisions regarding health and service needs 
are made. In addition, the council will be responsible for collecting 
and disseminating information, through a variety of means, about 
seniors and the programs and services relating to their needs. Through 
collaboration with the Federal Interagency Forum on Aging Statistics 
and the Census Bureau, the council will consolidate data on these needs 
and identify and address unmet data needs.
  With improved collaboration and coordination among the Federal 
agencies and our State partners, we can ensure that seniors are better 
able to access housing and services. To ensure its effectiveness, the 
council will be comprised of top-level officials who oversee the 
programs which assist seniors in this country, including the 
Secretaries of the Department of Housing and Urban Development; the 
Department of Health and Human Services; the Department of Labor; the 
Department of Transportation; and the Department of Veterans Affairs; 
as well as the Commissioner of the Social Security Administration; the 
Administrator of the Centers for Medicare and Medicaid Services; and 
the Administrator of the Administration for the Aging.
  This is a step we must take. It is essential that we make it easier 
for seniors and their families to access housing and supportive 
services together, so that when faced with difficult decisions, they do 
not have to navigate a confusing maze of programs and services, and 
work through multiple bureaucracies. We must also make it simpler for 
developers and providers to link housing and services so that greater 
supportive housing opportunities are available to the senior 
population. Through the Interagency Council, it is my hope that we will 
move toward a model of providing housing and services to seniors around 
the country.
  If we are to successfully address these growing needs, it is clear 
that much work must be done. The establishment of an Interagency 
Council on Meeting the Housing and Service Needs of Seniors is a 
critical first step in this endeavor. I urge my colleagues to support 
this important legislation, and I ask unanimous consent that the text 
of the bill together with letters of support be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 705

       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 ``Meeting the Housing and 
     Service Needs of Seniors Act of 2005''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) The senior population (persons 65 or older) in this 
     country is rapidly growing, and is expected to increase from 
     34,700,000 in 2000 to nearly 40,000,000 by 2010, and then 
     will dramatically increase to over 50,000,000 by 2020.
       (2) By 2020, the population of ``older'' seniors, those 
     over age 85, is expected to double to 7,000,000, and then 
     double again to 14,000,000 by 2040.
       (3) As the senior population increases, so does the need 
     for additional safe, decent, affordable, and suitable housing 
     that meets their unique needs.
       (4) Due to the health care, transportation, and service 
     needs of seniors, issues of providing suitable and affordable 
     housing opportunities differ significantly from the housing 
     needs of other families.
       (5) Seniors need access to a wide array of housing options, 
     such as affordable assisted living, in-home care, supportive 
     or service-enriched housing, and retrofitted homes and 
     apartments to allow seniors to age in place and to avoid 
     premature placement in institutional settings.
       (6) While there are many programs in place to assist 
     seniors in finding and affording suitable housing and 
     accessing needed services, these programs are fragmented and 
     spread across many agencies, making it difficult for seniors 
     to access assistance or to receive comprehensive information.
       (7) Better coordination among Federal agencies is needed, 
     as is better coordination at State and local levels, to 
     ensure that seniors can access government activities, 
     programs, services, and benefits in an effective and 
     efficient manner.
       (8) Up to date, accurate, and accessible statistics on key 
     characteristics of seniors, including conditions, behaviors, 
     and needs, are required to accurately identify the housing 
     and service needs of seniors.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) The term ``housing'' means any form of residence, 
     including rental housing, homeownership, assisted living, 
     group home, supportive housing arrangement, nursing facility, 
     or any other physical location where a person can live.
       (2) The term ``service'' includes transportation, health 
     care, nursing assistance, meal, personal care and chore 
     services, assistance with daily activities, mental health 
     care, physical therapy, case management, and any other 
     services needed by seniors to allow them to stay in their 
     housing or find alternative housing that meets their needs.
       (3) The term ``program'' includes any Federal or State 
     program providing income support, health benefits or other 
     benefits to seniors, housing assistance, mortgages, mortgage 
     or loan insurance or guarantees, housing counseling, 
     supportive services, assistance with daily activities, or 
     other assistance for seniors.
       (4) The term ``Council'' means the Interagency Council on 
     Meeting the Housing and Service Needs of Seniors.
       (5) The term ``senior'' means any individual 65 years of 
     age or older.

     SEC. 4. INTERAGENCY COUNCIL ON MEETING THE HOUSING AND 
                   SERVICE NEEDS OF SENIORS.

       (a) Establishment.--There is established in the executive 
     branch an independent council to be known as the Interagency 
     Council on Meeting the Housing and Service Needs of Seniors.
       (b) Objectives.--The objectives of the Council are as 
     follows:
       (1) To promote coordination and collaboration among the 
     Federal departments and agencies involved with housing, 
     health care, and service needs of seniors in order to better 
     meet the needs of senior citizens.
       (2) To identify the unique housing and service needs faced 
     by seniors around the country and to recommend ways that the 
     Federal Government, States, State and local governments, and 
     others can better meet those needs, including how to ensure 
     that seniors can find and afford housing that allows them to 
     access health care, transportation, nursing assistance, and 
     assistance with daily activities where they live or in their 
     communities.
       (3) To facilitate the aging in place of seniors, by 
     identifying and making available the programs and services 
     necessary to enable seniors to remain in their homes as they 
     age.
       (4) To improve coordination among the housing and service 
     related programs and services of Federal agencies for seniors 
     and to make recommendations about needed changes with an 
     emphasis on--
       (A) maximizing the impact of existing programs and 
     services;
       (B) reducing or eliminating areas of overlap and 
     duplication in the provision and accessibility of such 
     programs and services; and
       (C) making access to programs and services easier for 
     seniors around the country.
       (5) To increase the efficiency and effectiveness of 
     existing housing and service related programs and services 
     which serve seniors.
       (6) To establish an ongoing system of coordination among 
     and within such agencies or organizations so that the housing 
     and service needs of seniors are met in a more efficient 
     manner.
       (c) Membership.--The Council shall be composed of the 
     following:
       (1) The Secretary of Housing and Urban Development or a 
     designee of the Secretary.
       (2) The Secretary of Health and Human Services or a 
     designee of the Secretary.
       (3) The Secretary of Agriculture or a designee of the 
     Secretary.
       (4) The Secretary of Transportation or a designee of the 
     Secretary.
       (5) The Secretary of Labor or a designee of the Secretary.
       (6) The Secretary of Veterans Affairs or a designee of the 
     Secretary.
       (7) The Secretary of the Treasury or a designee of the 
     Secretary.
       (8) The Commissioner of the Social Security Administration 
     or a designee of the Commissioner.
       (9) The Administrator of the Centers for Medicare and 
     Medicaid Services or a designee of the Administrator.
       (10) The Administrator of the Administration on Aging or a 
     designee of the Administrator.
       (11) The head (or designee) of any other Federal agency as 
     the Council considers appropriate.
       (12) State and local representatives knowledgeable about 
     the needs of seniors as chosen by the Council members 
     described in paragraphs (1) through (11).
       (d) Chairperson.--The Chairperson of the Council shall 
     alternate between the Secretary of Housing and Urban 
     Development and the Secretary of Health and Human Services on 
     an annual basis.
       (e) Vice Chair.--Each year, the Council shall elect a Vice 
     Chair from among its members.
       (f) Meetings.--The Council shall meet at the call of its 
     Chairperson or a majority of its members at any time, and no 
     less often

[[Page 5651]]

     than quarterly. The Council shall hold meetings with 
     stakeholders and other interested parties at least twice a 
     year, so that the opinions of such parties can be taken into 
     account and so that outside groups can learn of the Council's 
     activities and plans.

     SEC. 5. FUNCTIONS OF THE COUNCIL.

       (a) Relevant Activities.--In carrying out its objectives, 
     the Council shall--
       (1) review all Federal programs and services that assist 
     seniors in finding, affording, and rehabilitating housing, 
     including those that assist seniors in accessing health care, 
     transportation, supportive services, and assistance with 
     daily activities, where or close to where seniors live;
       (2) monitor, evaluate, and recommend improvements in 
     existing programs and services administered, funded, or 
     financed by Federal, State, and local agencies to assist 
     seniors in meeting their housing and service needs and make 
     any recommendations about how agencies can better work to 
     house and serve seniors; and
       (3) recommend ways--
       (A) to reduce duplication among programs and services by 
     Federal agencies that assist seniors in meeting their housing 
     and service needs;
       (B) to ensure collaboration among and within agencies in 
     the provision and availability of programs and services so 
     that seniors are able to easily access needed programs and 
     services;
       (C) to work with States to better provide housing and 
     services to seniors by--
       (i) holding individual meetings with State representatives;
       (ii) providing ongoing technical assistance to States in 
     better meeting the needs of seniors; and
       (iii) working with States to designate State liaisons to 
     the Council;
       (D) to identify best practices for programs and services 
     that assist seniors in meeting their housing and service 
     needs, including model--
       (i) programs linking housing and services;
       (ii) financing products offered by government, quasi-
     government, and private sector entities;
       (iii) land use, zoning, and regulatory practices; and
       (iv) innovations in technology applications that give 
     seniors access to information on available services;
       (E) to collect and disseminate information about seniors 
     and the programs and services available to them to ensure 
     that seniors can access comprehensive information;
       (F) to hold biannual meetings with stakeholders and other 
     interested parties (or to hold open Council meetings) to 
     receive input and ideas about how to best meet the housing 
     and service needs of seniors;
       (G) to maintain an updated website of policies, meetings, 
     best practices, programs, services, and any other helpful 
     information to keep people informed of the Council's 
     activities; and
       (H) to work with the Federal Interagency Forum on Aging 
     Statistics, the Census Bureau, and member agencies to collect 
     and maintain data relating to the housing and service needs 
     of seniors so that all data can be accessed in one place and 
     to identify and address unmet data needs.
       (b) Reports.--
       (1) By members.--Each year, the head of each agency that is 
     a member of the Council shall prepare and transmit to the 
     Council a report that describes--
       (A) each program and service administered by the agency 
     that serves seniors and the number of seniors served by each 
     program or service, the resources available in each, as well 
     as a breakdown of where each program and service can be 
     accessed;
       (B) the barriers and impediments, including statutory or 
     regulatory, to the access and use of such programs and 
     services by seniors;
       (C) the efforts made by each agency to increase 
     opportunities for seniors to find and afford housing that 
     meet their needs, including how the agency is working with 
     other agencies to better coordinate programs and services; 
     and
       (D) any new data collected by each agency relating to the 
     housing and service needs of seniors.
       (2) By the council.--Each year, the Council shall prepare 
     and transmit to the President, the Senate Committee on 
     Banking, Housing, and Urban Affairs, the Senate Committee on 
     Health, Education, Labor, and Pensions, the House Financial 
     Services Committee, and the House Committee on Education and 
     the Workforce a report that--
       (A) summarizes the reports required in paragraph (1);
       (B) utilizes recent data to assess the nature of the 
     problems faced by seniors in meeting their unique housing and 
     service needs;
       (C) provides a comprehensive and detailed description of 
     the programs and services of the Federal Government in 
     meeting the needs and problems described in subparagraph (B);
       (D) describes the activities and accomplishments of the 
     Council in working with Federal, State, and local 
     governments, and private organizations in coordinating 
     programs and services to meet the needs described in 
     subparagraph (B) and the resources available to meet those 
     needs;
       (E) assesses the level of Federal assistance required to 
     meet the needs described in subparagraph (B); and
       (F) makes recommendations for appropriate legislative and 
     administrative actions to meet the needs described in 
     subparagraph (B) and for coordinating programs and services 
     designed to meet those needs.

     SEC. 6. POWERS OF THE COUNCIL.

       (a) Hearings.--The Council may hold such hearings, sit and 
     act at such times and places, take such testimony, and 
     receive such evidence as the Council considers advisable to 
     carry out the purposes of this Act.
       (b) Information from Agencies.--Agencies which are members 
     of the Council shall provide all requested information and 
     data to the Council as requested.
       (c) Postal Services.--The Council may use the United States 
     mails in the same manner and under the same conditions as 
     other departments and agencies of the Federal Government.
       (d) Gifts.--The Council may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 7. COUNCIL PERSONNEL MATTERS.

       (a) Compensation of Members.--All members of the Council 
     who are officers or employees of the United States shall 
     serve without compensation in addition to that received for 
     their services as officers or employees of the United States.
       (b) Travel expenses.--The members of the Council shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Council.
       (c) Staff.--
       (1) In general.--The Council shall, without regard to civil 
     service laws and regulations, appoint and terminate an 
     Executive Director and such other additional personnel as may 
     be necessary to enable the Council to perform its duties.
       (2) Executive Director.--The Council shall appoint an 
     Executive Director at its initial meeting. The Executive 
     Director shall be compensated at a rate not to exceed the 
     rate of pay payable for level V of the Executive Schedule 
     under section 5316 of title 5, United States Code.
       (3) Compensation.--With the approval of the Council, the 
     Executive Director may appoint and fix the compensation of 
     such additional personnel as necessary to carry out the 
     duties of the Council. The rate of compensation may be set 
     without regard to the provisions of chapter 51 and subchapter 
     II of chapter 53 of title 5, United States Code, relating to 
     classification of positions and General Schedule pay rates, 
     except that the rate of pay may not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     such title.
       (d) Temporary and Intermittent Services.--In carrying out 
     its objectives, the Council may procure temporary and 
     intermittent services of consultants and experts under 
     section 3109(b) of title 5, United States Code, at rates for 
     individuals which do not exceed the daily equivalent of the 
     annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of such title.
       (e) Detail of Government Employees.--Upon request of the 
     Council, any Federal Government employee may be detailed to 
     the Council without reimbursement, and such detail shall be 
     without interruption or loss of civil service status or 
     privilege.
       (f) Administrative Support.--The Secretary of Housing Urban 
     Development and the Secretary of Health and Human Services 
     shall provide the Council with such administrative and 
     supportive services as are necessary to ensure that the 
     Council can carry out its functions.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     Act, $1,500,000 for each of fiscal years 2005 through 2010.

     
                                  ____
                                    Elderly Housing Coalition,

                                     Washington, DC, April 5, 2005
     Re support for Interagency Council on Housing and Service 
         Needs of Seniors.

     Hon. Paul Sarbanes,
     Committee on Banking, Housing and Urban Affairs Committee, 
         U.S. Senate, Washington, DC.
       Dear Senator Sarbanes: The Elderly Housing Coalition (EHC) 
     is comprised of organizations that represent providers of 
     affordable housing and supportive service for the elderly. We 
     are writing in enthusiastic support of your legislation that 
     would establish the Interagency Council on Housing and 
     Service Needs of Seniors. This Council is desperately needed 
     and will help federal, state and local governments better 
     serve the housing and service needs of our elderly 
     population.
       According to the Congressional Commission on Affordable 
     Housing and Health Facility Needs for Seniors in the 21st 
     Century, we must integrate our current fragmented system of 
     programs that seniors rely on to find the housing and 
     services they need. As the number of seniors grows 
     exponentially and will, in fact, have doubled by 2030, we 
     must find a way to use our resources more effectively.

[[Page 5652]]

       Your bill will be a great first step to bringing the key 
     governmental agencies together to identify how they can best 
     work to maximize program efficiency and streamline access. 
     Again, we are pleased to offer our support for this 
     legislation establishing an interagency council and thank you 
     for your leadership on this issue.
       If there is anything that the Elderly Housing Coalition can 
     do to help or if you have any questions about the EHC please 
     contact Nancy Libson or Alayna Waldrum at (202) 783-2242.
           Sincerely,
       Alliance for Retired Americans.
       American Association of Homes and Services for the Aging.
       American Association of Service Coordinators.
       Association of Jewish Aging Services of North America.
       B'nai B'rith International.
       Catholic Charities USA.
       Catholic Health Association of the United States.
       Council of Large Public Housing Authorities.
       Elderly Housing Development and Operations Corporation.
       Kinship Caregiver Resources/Intergenerational Village 
     Project.
       Local Initiatives Support Corporation.
       National Association of Housing, Cooperatives.
       National Association of Housing and Redevelopment 
     Officials.
       National Housing Conference.
       National Low Income Housing Coalition.
       National PACE Association.
       Stewards of Affordable Housing for the Future.
       Volunteers of America.
                                  ____

         American Association of Homes and Services for the Aging,
                                    Washington, DC, April 5, 2005.
     Re Interagency Council on Housing and Service Needs of 
         Seniors Legislation.

     Hon. Paul Sarbanes,
     Committee on Banking, Housing and Urban Affairs Committee, 
         U.S. Senate, Washington, DC.
       Dear Senator Sarbanes: On behalf of AAHSA, I am writing to 
     thank you for introducing legislation to establish an 
     Interagency Council on Housing and Service Needs of Seniors. 
     AAHSA members serve two million people every day through 
     mission-driven, not-for-profit organizations dedicated to 
     providing the services people need, when they need them, in 
     the place they call home. Our members offer the continuum of 
     aging services: assisted living residences, continuing care 
     retirement communities, nursing homes, senior housing 
     facilities, and outreach services. AAHSA's mission is to 
     create the future of aging services through quality the 
     public can trust.
       Half of our members own or operate federally subsidized 
     senior apartment buildings and work collaboratively with home 
     and community based service providers that operate programs 
     governed by a maze of departmental regulations. This unique 
     perspective gives us and our members a bird's eye view of how 
     important it is for the various federal agencies to work 
     together to ensure the best care in the most responsive and 
     efficient manner possible.
       In 2002 the Commission on Affordable Housing and Health 
     Facility Needs for Seniors in the 21st Century reported to 
     Congress that a top priority for the federal government 
     should be integrating the existing fragmented system of 
     programs that seniors rely on to piece together the housing 
     and services they need. Time is precious--the United States 
     is facing exponential growth in our senior population, which 
     will double by 2030. AAHSA members have created a number of 
     successful models for combining services and senior housing. 
     Unfortunately these are limited and difficult to replicate 
     because of the programmatic barriers. Now is the time to get 
     the policymakers to the table to address the barriers and 
     opportunities that exist in our federal programs and how to 
     make them work.
       We know that this can be done. AAHSA strongly supports your 
     bill, which will help the Executive branch and Federal 
     agencies better coordinate the successful aging programs, as 
     an important first step. Thank you for your leadership. If 
     there is anything that AAHSA or my staff can do to support 
     you, please do not hesitate to let me know. I can be reached 
     at (202) 783-2242.
           Sincerely,
                                                     Larry Minnix,
     President and CEO.
                                  ____

                                           American Association of


                                         Service Coordinators,

                                      Columbus, OH, April 5, 2005.
     Hon. Paul Sarbanes,
     U.S. Senator,
     Washington, DC.
       Dear Senator Sarbanes: On behalf of the 1,600 members of 
     the American Association of Service Coordinators (AASC), I 
     want to express our support for your proposed legislation to 
     establish an Interagency Council on Housing and Service Needs 
     of Seniors. AASC believes that this bill is urgently needed 
     to assist service coordinators and others seeking to bring 
     together the various federal and other programs needed by 
     older persons and other special populations.
       In my testimony, before the Commission on Affordable 
     Housing and Health Facility describing the present fragmented 
     system, I stated that ``even for long-time professionals, the 
     current `crazy-quilt' tapestry of services and shelter 
     options makes it difficult to fully grasp their complexities, 
     let alone try to access them. The results are confusion among 
     consumers, duplication of service delivery, government 
     agencies not knowing who supplies what service or that some 
     services even exist, reduction in qualified service workers, 
     regulations that impede dedicated service providers from 
     providing the service they were hired and want to perform.''
       One of AASC recommendations to the Commission was the 
     establishment of a cabinet-level department that would 
     encompass in one entity housing, health care and other 
     federal support programs serving the elderly to better focus 
     federal policy and regulatory efforts, in conjunction with 
     states and communities. AASC believes that your bill is an 
     important step to establish a permanent national platform to 
     address many of the cross-cutting needs and issues 
     confronting increasing numbers of frail and vulnerable older 
     persons.
       As you may know, AASC is a national, nonprofit organization 
     representing professional service coordinators who serve low-
     income older persons and other special populations living in 
     federally assisted and public housing facilities nationwide, 
     their caregivers, and others in their local community. Our 
     dedicated membership consists of service coordinators, case 
     managers and social workers, housing managers and 
     administrators, housing management companies, public housing 
     authorities, state housing finance agencies, state and local 
     area agencies on aging and a broad range of national and 
     state organizations and professionals involved in affordable, 
     service-enhanced housing. Background information on AASC is 
     available on our website: www.servicercoordinators.org.
       We are grateful for your leadership on the vital issue. 
     Please let me know how AASC can assist you to expedite 
     enactment of this important legislation.
           Sincerely,
                                                     Janice Monks,
     President.
                                  ____

                                     Elderly Housing Development &


                                       Operations Corporation,

                               Fort Lauderdale, FL, April 5, 2005.
     Hon. Paul Sarbanes,
     U.S. Senate,
     Washington, DC.
       Dear Senator Sarbanes: I am pleased that Elderly Housing 
     Development and Operations Corporation (EHDOC) representing 
     over 40 senior housing facilities in 14 states, is joining 
     with other non-profit organizations involved with federally 
     assisted senior housing to strongly support your bill to 
     establish an Interagency Council on Housing and Service Needs 
     of Seniors. We believe that the establishment of this 
     Interagency Council will provide a cost-effective and 
     efficient means to promote coordination between the various 
     federal agencies involved with senior housing and services, 
     particularly HUD and HHS.
       EHDOC is well aware of the need to improve collaboration 
     between the various federal agencies based on our efforts to 
     assist low-income, frail elderly in Council House in 
     Suitland, MD. Unfortunately, it is often difficult to link 
     the various services needed to enable many frail elderly to 
     remain in their homes as they age due to the existing 
     fragmentation of federal housing, services and health care 
     policies and programs.
       The difficulty experienced by EHDOC with linking housing 
     and services is repeated by many nonprofit sponsors of 
     federally assisted senior housing throughout the country. As 
     you know, I was I honored to serve as your appointee to the 
     recent Commission on Affordable Housing and Health Care 
     Facilities Needs of Older Persons. We repeatedly heard 
     testimony from public and private agencies involved with 
     senior housing, supportive services and health care, older 
     persons and others, of their difficulties in bringing 
     together these services to meet the needs of older persons.
       As stated in the Senior Commissions' final report, ``the 
     very heart of this Commission's work is the recognition that 
     the housing and service needs of seniors traditionally have 
     been addressed in different `worlds' that often fail to 
     recognize or communicate with each other.'' Findings of the 
     Commission concluded ``while policymakers have struggled to 
     be responsive to the needs of seniors, the very structure of 
     Congressional committees and Federal agencies often makes it 
     difficult to address complex needs in a comprehensive and 
     coordinated fashion. For example: medical needs of seniors 
     are addressed by Medicare and Medicaid; social service needs 
     are addressed by Medicaid, the OAA, and other block grant 
     programs; housing programs are administered by HUD and the 
     Department of Agriculture's RHS; and transportation programs 
     are administered by the U.S. Department of Transportation 
     (DOT).''
       We commend you for your leadership in addressing this 
     critical need to effectively

[[Page 5653]]

     bring together the various federal agencies and others 
     involved with affordable housing and service needs of older 
     persons through the establishment of an Interagency Council 
     on Senior Housing. Please let me if you have any questions or 
     how EHDOC can assist you with the enactment of this important 
     legislation.
           Sincerely,
                                                   Steve Protulis,
     Executive Director.
                                  ____

                                        National PACE Association,
                                                    April 5, 2005.
     Hon. Paul Sarbanes,
     U.S. Senate,
     Washington, DC.
       Dear Senator Sarbanes: On behalf of the National PACE 
     Association (NPA), I want to express our support for your 
     bill to establish an Interagency Council on Housing and 
     Service Needs of Seniors. NPA believes that this legislation 
     is essential to provide effective linkages between housing, 
     health care and services, and that the proposed Interagency 
     Council will facilitate an effective national forum to 
     promote coordination among key federal agencies involved with 
     these programs, particularly HUD, HHS, CMS, and DOT.
       As you may know, NPA represents non-profit organizations in 
     21 states, including Hopkins ElderPlus in Baltimore that are 
     providers of PACE--a Program of All-Inclusive Care for the 
     Elderly. PACE programs coordinate and provide all needed 
     preventive, primary, acute and long term care services so 
     that older persons can continue living in the community. PACE 
     serves individuals who are aged 55 or older, certified by 
     their state to need nursing home care, are able to live 
     safely in the community, and live in a state designated PACE 
     service area. PACE provides a ``one stop shop'' for health 
     and long-term care, and our members clearly understand 
     through their extensive experience with the holistic needs of 
     frail elderly, the interrelationship between housing, 
     services, health and long-term care.
       While housing is not a direct PACE benefit, our members 
     have long recognized the importance of housing as a vital 
     aspect of promoting wellness and quality of life for older 
     persons. In fact, nearly all PACE programs nationwide serve 
     enrollees who reside in public and federally assisted 
     multifamily senior housing, and nearly one third of our 
     members co-locate their PACE health care centers with senior 
     housing or assisted living. Unfortunately, it is often 
     difficult to link housing, services and health care due to 
     conflicting funding streams, licensing, eligibility, and 
     other factors.
       Additional background information on PACE, NPA, and our 
     members are available at our website: www.npaonline.org. Our 
     members strongly support your bill and the prompt 
     establishment of an Interagency Council on Senior Housing and 
     Services. We are grateful for your leadership with this 
     effort. Please let me know if you have any questions or how 
     NPA can assist you with this effort to benefit low-income, 
     frail elderly. I can be reached at 703-535-1567 or 
     shawnbanpaonline.org.
           Sincerely,
                                                      Shawn Bloom,
                                                President and CEO.
                                 ______
                                 
      By Mr. COLEMAN:
  S. 706. A bill to convey all right, title, and interst of the United 
States in and to the land described in this Act to the Secretary of the 
Interior for the Prairie Island Indian Community in Minnestora; to the 
Committee on Indian Affairs.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 706

       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 ``Prairie Island Land 
     Conveyance Act of 2005''.

     SEC. 2. 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 of the Interior, 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 of the Interior to the Secretary of War 
     and the letters of the Secretary of War in response to the 
     Secretary of the Interior dated August 18, 1937, and November 
     27, 1937, under which the Secretary of the Interior 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.
                                 ______
                                 
      By Mr. ALEXANDER (for himself and Mr. Dodd):
  S. 707. A bill to reduce preterm labor and delivery and the risk of 
pregnancy-related deaths and complications due to pregnancy, and to 
reduce infant mortality caused by prematurity; to the Committee on 
Health, Education, Labor and Pensions.
  Mr. ALEXANDER. Mr. President, today I am reintroducing the 
Prematurity Research Expansion and Education for Mothers who deliver 
Infants Early Act, or PREEMIE Act. This bipartisan bill expands 
research into the causes and prevention of prematurity, babies born 3 
weeks or more early, and increases education and support services 
related to prematurity. I am pleased that Senator Dodd is once again my 
partner on this legislation and we hope the Senate will pass the 
PREEMIE Act in this Congress.
  In June 2004, the Subcommittee on Children and Families, which I 
chaired, held a hearing to learn about the problem of premature birth. 
Unfortunately, Tennessee has the fourth highest rate of premature birth 
in the country. Fourteen percent of Tennessee babies are born 
prematurely. In an average week in Tennessee, 210 babies are born 
prematurely. Premature infants are 14 times more likely to die in the 
first year of life. It is the No. 1 cause of infant death in the first 
month of life. Premature babies who survive may suffer lifelong 
consequences including: cerebral palsy, mental retardation, chronic 
lung disease, and vision and hearing loss.

[[Page 5654]]

  In February 2004, the National Center for Health Statistics, NCHS, 
reported the first increase in the U.S. infant mortality rate since 
1958, from 6.8 infant deaths per 1,000 live births in 2001 to 7.0 in 
2000. This increase is extremely disturbing because the infant 
mortality rate is a measure of the health of society. NCHS subsequently 
reported that 61 percent of this increase in infant mortality was due 
to an increase in the birth of premature and low birthweight babies. 
Almost half the cases of premature birth have no known cause--any 
pregnant woman is at risk. We must address this issue.
  Finally, this is a costly problem. In 2002, the estimated charges for 
hospital stays for infants with a diagnosis of preterm birth or low 
birthweight, LBW, were $15.5 billion. The average hospital charge per 
infant stay with a principal diagnosis of prematurity/LBW was $79,000, 
with an average hospital stay of 24.2 days. Hospital charges for 
newborn stays without complications averaged $1,500 in 2002, with an 
average hospital stay of 2.0 days. Employers carry much of the burden. 
Almost half of that $15.5 billion was billed to employers or other 
private insurers, according to the March of Dimes. The other half is 
billed to Medicaid.
  As a nation, we must address this problem. The PREEMIE Act calls for 
expanding Federal research related to preterm labor and delivery and 
increasing public and provider education and support services. It is 
supported by the March of Dimes, the American Academy of Pediatrics, 
the American College of Obstetricians and Gynecologists, the 
Association of Women's Health, Obstetric and Neonatal Nurses, and many 
others.
  I hope my colleagues will join me in the fight to ensure a healthy 
start for all of American's children by cosponsoring and working with 
me for passage of the PREEMIE Act during this Congress.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 707

       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 ``Prematurity Research 
     Expansion and Education for Mothers who deliver Infants Early 
     Act'' or the ``PREEMIE Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) Premature birth is a serious and growing problem. The 
     rate of preterm birth increased 27 percent between 1982 and 
     2002 (from 9.4 percent to 11.9 percent). In 2001, more than 
     480,000 babies were born prematurely in the United States.
       (2) Preterm birth accounts for 24 percent of deaths in the 
     first month of life.
       (3) Premature infants are 14 times more likely to die in 
     the first year of life.
       (4) Premature babies who survive may suffer lifelong 
     consequences, including cerebral palsy, mental retardation, 
     chronic lung disease, and vision and hearing loss.
       (5) Preterm and low birthweight birth is a significant 
     financial burden in health care. The estimated charges for 
     hospital stays for infants with any diagnosis of prematurity/
     low birthweight were $15,500,000,000 in 2002. The average 
     lifetime medical costs of a premature baby are conservatively 
     estimated at $500,000.
       (6) The proportion of preterm infants born to African-
     American mothers (17.3 percent) was significantly higher 
     compared to the rate of infants born to white mothers (10.6 
     percent). Prematurity or low birthweight is the leading cause 
     of death for African-American infants.
       (7) The cause of approximately half of all premature births 
     is unknown.
       (8) Women who smoke during pregnancy are twice as likely as 
     nonsmokers to give birth to a low birthweight baby. Babies 
     born to smokers weigh, on average, 200 grams less than 
     nonsmokers' babies.
       (9) To reduce the rates of preterm labor and delivery more 
     research is needed on the underlying causes of preterm 
     delivery, the development of treatments for prevention of 
     preterm birth, and treatments improving outcomes for infants 
     born preterm.
       (b) Purposes.--It the purpose of this Act to--
       (1) reduce rates of preterm labor and delivery;
       (2) work toward an evidence-based standard of care for 
     pregnant women at risk of preterm labor or other serious 
     complications, and for infants born preterm and at a low 
     birthweight; and
       (3) reduce infant mortality and disabilities caused by 
     prematurity.

     SEC. 3. RESEARCH RELATING TO PRETERM LABOR AND DELIVERY AND 
                   THE CARE, TREATMENT, AND OUTCOMES OF PRETERM 
                   AND LOW BIRTHWEIGHT INFANTS.

       (a) General Expansion of NIH Research.--Part B of title IV 
     of the Public Health Service Act (42 U.S.C. 284 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 409J. EXPANSION AND COORDINATION OF RESEARCH RELATING 
                   TO PRETERM LABOR AND DELIVERY AND INFANT 
                   MORTALITY.

       ``(a) In General.--The Director of NIH shall expand, 
     intensify, and coordinate the activities of the National 
     Institutes of Health with respect to research on the causes 
     of preterm labor and delivery, infant mortality, and 
     improving the care and treatment of preterm and low 
     birthweight infants.
       ``(b) Authorization of Research Networks.--There shall be 
     established within the National Institutes of Health a 
     Maternal-Fetal Medicine Units Network and a Neonatal Research 
     Units Network. In complying with this subsection, the 
     Director of NIH shall utilize existing networks.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, such 
     sums as may be necessary for each of fiscal years 2005 
     through 2009.''.
       (b) General Expansion of CDC Research.--Section 301 of the 
     Public Health Service Act (42 U.S.C. 241 et seq.) is amended 
     by adding at the end the following:
       ``(e) The Director of the Centers for Disease Control and 
     Prevention shall expand, intensify, and coordinate the 
     activities of the Centers for Disease Control and Prevention 
     with respect to preterm labor and delivery and infant 
     mortality.''.
       (c) Study on Assisted Reproduction Technologies.--Section 
     1004(c) of the Children's Health Act of 2000 (Public Law 106-
     310) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(4) consider the impact of assisted reproduction 
     technologies on the mother's and children's health and 
     development.''.
       (d) Study on Relationship Between Prematurity and Birth 
     Defects.--
       (1) In general.--The Director of the Centers for Disease 
     Control and Prevention shall conduct a study on the 
     relationship between prematurity, birth defects, and 
     developmental disabilities.
       (2) Report.--Not later than 2 year after the date of 
     enactment of this Act, the Director of the Centers for 
     Disease Control and Prevention shall submit to the 
     appropriate committees of Congress a report concerning the 
     results of the study conducted under paragraph (1).
       (e) Review of Pregnancy Risk Assessment Monitoring 
     Survey.--The Director of the Centers for Disease Control and 
     Prevention shall conduct a review of the Pregnancy Risk 
     Assessment Monitoring Survey to ensure that the Survey 
     includes information relative to medical care and 
     intervention received, in order to track pregnancy outcomes 
     and reduce instances of preterm birth.
       (f) Study on the Health and Economic Consequences of 
     Preterm Birth.--
       (1) In general.--The Director of the National Institutes of 
     Health in conjunction with the Director of the Centers for 
     Disease Control and Prevention shall enter into a contract 
     with the Institute of Medicine of the National Academy of 
     Sciences for the conduct of a study to define and address the 
     health and economic consequences of preterm birth. In 
     conducting the study, the Institute of Medicine shall--
       (A) review and assess the epidemiology of premature birth 
     and low birthweight, and the associated maternal and child 
     health effects in the United States, with attention paid to 
     categories of gestational age, plurality, maternal age, and 
     racial or ethnic disparities;
       (B) review and describe the spectrum of short and long-term 
     disability and health-related quality of life associated with 
     premature births and the impact on maternal health, health 
     care and quality of life, family employment, caregiver 
     issues, and other social and financial burdens;
       (C) assess the direct and indirect costs associated with 
     premature birth, including morbidity, disability, and 
     mortality;
       (D) identify gaps and provide recommendations for feasible 
     systems of monitoring and assessing associated economic and 
     quality of life burdens associated with prematurity;
       (E) explore the implications of the burden of premature 
     births for national health policy;
       (F) identify community outreach models that are effective 
     in decreasing prematurity rates in communities;
       (G) consider options for addressing, as appropriate, the 
     allocation of public funds to biomedical and behavioral 
     research, the costs and benefits of preventive interventions, 
     public health, and access to health care; and
       (H) provide recommendations on best practices and 
     interventions to prevent premature birth, as well as the most 
     promising areas of research to further prevention efforts.

[[Page 5655]]

       (2) Report.--Not later than 1 year after the date on which 
     the contract is entered into under paragraph (1), the 
     Institute of Medicine shall submit to the Director of the 
     National Institutes of Health, the Director of the Centers 
     for Disease Control and Prevention, and the appropriate 
     committees of Congress a report concerning the results of the 
     study conducted under such paragraph.
       (g) Evaluation of National Core Performance Measures.--
       (1) In general.--The Administrator of the Health Resources 
     and Services Administration shall conduct an assessment of 
     the current national core performance measures and national 
     core outcome measures utilized under the Maternal and Child 
     Health Block Grant under title V of the Social Security Act 
     (42 U.S.C. 701 et seq.) for purposes of expanding such 
     measures to include some of the known risk factors of low 
     birthweight and prematurity, including the percentage of 
     infants born to pregnant women who smoked during pregnancy.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator of the Health 
     Resources and Services Administration shall submit to the 
     appropriate committees of Congress a report concerning the 
     results of the evaluation conducted under paragraph (1).

     SEC. 4. PUBLIC AND HEALTH CARE PROVIDER EDUCATION AND SUPPORT 
                   SERVICES.

       Part P of title III of the Public Health Service Act (42 
     U.S.C. 280g et seq.) is amended by adding at the end the 
     following:

     ``SEC. 399O. PUBLIC AND HEALTH CARE PROVIDER EDUCATION AND 
                   SUPPORT SERVICES.

       ``(a) In General.--The Secretary, directly or through the 
     awarding of grants to public or private nonprofit entities, 
     shall conduct a demonstration project to improve the 
     provision of information on prematurity to health 
     professionals and other health care providers and the public.
       ``(b) Activities.--Activities to be carried out under the 
     demonstration project under subsection (a) shall include the 
     establishment of programs--
       ``(1) to provide information and education to health 
     professionals, other health care providers, and the public 
     concerning--
       ``(A) the signs of preterm labor, updated as new research 
     results become available;
       ``(B) the screening for and the treating of infections;
       ``(C) counseling on optimal weight and good nutrition, 
     including folic acid;
       ``(D) smoking cessation education and counseling; and
       ``(E) stress management; and
       ``(2) to improve the treatment and outcomes for babies born 
     premature, including the use of evidence-based standards of 
     care by health care professionals for pregnant women at risk 
     of preterm labor or other serious complications and for 
     infants born preterm and at a low birthweight.
       ``(c) Requirement.--Any program or activity funded under 
     this section shall be evidence-based.
       ``(d) NICU Family Support Programs.--The Secretary shall 
     conduct, through the awarding of grants to public and 
     nonprofit private entities, projects to respond to the 
     emotional and informational needs of families during the stay 
     of an infant in a neonatal intensive care unit, during the 
     transition of the infant to the home, and in the event of a 
     newborn death. Activities under such projects may include 
     providing books and videos to families that provide 
     information about the neonatal intensive care unit 
     experience, and providing direct services that provide 
     emotional support within the neonatal intensive care unit 
     setting.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, such 
     sums as may be necessary for each of fiscal years 2005 
     through 2009.''.

     SEC. 5. INTERAGENCY COORDINATING COUNCIL ON PREMATURITY AND 
                   LOW BIRTHWEIGHT.

       (a) Purpose.--It is the purpose of this section to 
     stimulate multidisciplinary research, scientific exchange, 
     and collaboration among the agencies of the Department of 
     Health and Human Services and to assist the Department in 
     targeting efforts to achieve the greatest advances toward the 
     goal of reducing prematurity and low birthweight.
       (b) Establishment.--The Secretary of Health and Human 
     Services shall establish an Interagency Coordinating Council 
     on Prematurity and Low Birthweight (referred to in this 
     section as the Council) to carry out the purpose of this 
     section.
       (c) Composition.--The Council shall be composed of members 
     to be appointed by the Secretary, including representatives 
     of--
       (1) the agencies of the Department of Health and Human 
     Services; and
       (2) voluntary health care organizations, including 
     grassroots advocacy organizations, providers of specialty 
     obstetrical and pediatric care, and researcher organizations.
       (d) Activities.--The Council shall--
       (1) annually report to the Secretary of Health and Human 
     Services on current Departmental activities relating to 
     prematurity and low birthweight;
       (2) plan and hold a conference on prematurity and low 
     birthweight under the sponsorship of the Surgeon General;
       (3) establish a consensus research plan for the Department 
     of Health and Human Services on prematurity and low 
     birthweight;
       (4) report to the Secretary of Health and Human Services 
     and the appropriate committees of Congress on recommendations 
     derived from the conference held under paragraph (2) and on 
     the status of Departmental research activities concerning 
     prematurity and low birthweight;
       (5) carry out other activities determined appropriate by 
     the Secretary of Health and Human Services; and
       (6) oversee the coordination of the implementation of this 
     Act.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     Act, such sums as may be necessary for each of fiscal years 
     2005 through 2009.

  Mr. DODD. Mr. President, I rise today to join Senator Alexander in 
reintroducing the Prematurity Research Expansion and Education for 
Mothers Who Deliver Infants Early (PREEMIE) Act--legislation intended 
to address the growing crisis of premature birth in our nation.
  I think when many of us hear about a baby being born early, we don't 
give much thought to what it means. After all, it is not all that 
uncommon--I'm sure that almost all of my colleagues knows someone born 
prematurely. Thanks to modem medicine it is also not uncommon for a 
baby born early to end up healthy and happy.
  But this feeling that prematurity is somehow ``normal'' or to be 
expected masks a growing health crisis. Prematurity has real 
consequences in health and economic terms. We need to bring to light 
this issue that affects some of the most vulnerable members of our 
society: newborn babies.
  As a member of the Health, Education, Labor, and Pensions (HELP) 
Committee I, along with my colleagues, have devoted much time and 
effort to improving the health of our nation's children and infants. 
And yet despite our efforts, the problem of prematurity continues to 
persist and even grow. What is so striking about prematurity is how 
many parents face these enormous emotional and financial burdens. 
Nearly 1 out of every 8 babies in the United States is born 
prematurely--that's 1,300 babies each day, and over 470,000 each year 
(including more than 4,000 in my home state of Connecticut).
  Despite all of the health care advances of the last decades, the 
problem of prematurity is not in any way abating. According to recent 
data released by the National Center for Health Statistics, in 2002 the 
infant mortality rate actually increased for the first time since 1958. 
Much of this increase is attributable to infant death in the first 
month of life--of which prematurity is the leading cause. Since 1981, 
the premature birth rate has increased by 27 percent. This stands in 
stark contrast to some of the breathtaking medical discoveries of the 
past two decades. We can now treat and even cure many types of cancer, 
but we can't prevent babies from being born too soon.
  Mr. President, the consequences of prematurity are devastating. As I 
mentioned earlier, it is the leading cause of neonatal death--a tragedy 
that no family should have to face. For those infants that survive, a 
lifetime of severe health problems is not uncommon. Prematurity has 
been linked to such long-term health problems as cerebral palsy, mental 
retardation, chronic lung disease, and vision and hearing loss. 
Premature babies have the deck stacked against them from the moment 
they are born. And even in the fortunate cases where there are no life-
long health consequences, the experience of a premature birth takes an 
enormous emotional toll on a family.
  Prematurity also carries a significant economic cost. According to a 
recent study conducted by the March of Dimes, hospitalizations due to 
prematurity cost a total of $15.5 billion during the year 2002--
accounting for nearly half of all hospital charges for infants in this 
country. And this number does not even include the cost of care for 
problems later in life resulting from a premature birth. Much of this 
cost falls on employers who are already bearing the weight of 
skyrocketing health care costs.
  Given the emotional and economic toll that prematurity takes on this

[[Page 5656]]

country, we know remarkably little about why it happens, and how it can 
be prevented. Some of the risk factors associated with preterm birth 
are known, including advanced age of the mother, smoking, and certain 
chronic diseases. But nearly 50 percent of all premature births have no 
known cause. And because we know so little about the causes of 
prematurity, we also do not know how to prevent it.
  For such a large (and growing) problem, it is astounding how little 
we know. It is critical that we make a national commitment to solving 
this puzzle. We must do everything we can to expand research--both 
public and private--into the root causes of prematurity.
  Senator Alexander and I are introducing the PREEMIE Act for precisely 
this reason. Our bill would coordinate and expand research related to 
prematurity at the Federal level. It would also educate health care 
providers and the general public about the risks of prematurity, and 
measures that can be taken before and during pregnancy to prevent it. 
Pregnant mothers need to know the warning signs and symptoms of 
premature labor--and they need to know what to do if they begin to 
notice those signs.
  Finally, because we will never eliminate prematurity completely, our 
legislation would provide support services to families impacted by a 
premature birth. As we're investigating the causes of prematurity and 
increasing awareness in expectant parents, we need to reach out to the 
mothers and fathers across our country whose children are born too 
soon. We need to give them emotional support during the difficult days, 
weeks, and months that often follow a premature birth. We need to make 
sure that the doctors, nurses, and other hospital staff who care for 
premature babies are sensitive to the needs of their parents, their 
brothers, and their sisters. And we need to make sure that when the 
time finally comes to bring a premature baby home, parents have all the 
information they need to make that transition.
  It is my hope that this legislation will complement and support some 
of the efforts going on in the private sector--such as the March of 
Dimes ambitious campaign to increase public awareness and reduce the 
rate of preterm birth. I urge all of my colleagues to join us in 
support of this important legislation.
                                 ______
                                 
      By Mr. Wyden (for himself and Mr. Smith):
  S. 708. A bill to amend title XVIII of the Social Security Act to 
provide medicare beneficiaries with access to information concerning 
the quality of care provided by skilled nursing facilities and to 
provide incentives to skilled nursing facilities to improve the quality 
of care provided by those facilities by linking the amount of payment 
under the medicare program to quality reporting and performance 
requirements, and for other purposes; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise today to introduce the Long Term 
Care Quality and Consumer Information Improvement Act of 2005. Medicare 
spending for skilled nursing facilities grew rapidly during the late 
1980s and 1990s increasing from almost $4 billion in 1992 to $12.9 
billion in 1997. While spending has increased under Medicare, there has 
not been an effort to reward skilled nursing facilities that have 
provided exceptional care to seniors.
  The bill I am introducing today with my colleague from Oregon, 
Senator Wyden, will establish a system to reward skilled nursing 
facilities that provide exceptional care. We should take steps to 
ensure that skilled nursing facilities that are providing the best care 
be rewarded. We must also create incentives for other facilities to 
strive to provide excellent care.
  The Long Term Care Quality and Consumer Information Improvement Act 
of 2005 directs the Secretary of Health and Human Services to establish 
10 to 15 quality measures for skilled nursing facilities. While 
establishing these measures, the Secretary must consult with residents 
of skilled nursing facilities, patient advocacy organizations, state 
regulatory representatives, representatives from the skilled nursing 
facility industry and quality measure experts. The quality ratings for 
the facilities will then be published on the Centers for Medicare and 
Medicaid Services' website and published in newspapers with a national 
circulation.
  The quality measures created by this bill will be used as an 
incentive for facilities to provide excellent care. Skilled nursing 
facilities that submit data shall receive a full market basket update 
and starting in fiscal year 2006 skilled nursing facilities that are in 
the top 10 percent of facilities will receive a 2 percent payment 
bonus. Skilled nursing facilities that are below the top 10 percent, 
but within the top 20 percent shall receive a one percent payment 
bonus.
  The increased public disclosure of facility-specific quality data and 
the financial incentives included in this bill will spur competition 
and improved performance in skilled nursing facilities. I believe that 
we need to help the 77 million elderly and disabled Americans who are 
in nursing homes by making sure they receive the highest quality care 
possible.
  Mr. President, I look forward to working with my fellow Senators and 
with the chairman of the Finance Committee on this important bill in 
the upcoming months, and I urge my colleagues to join us in support of 
this legislation.
  Mr. Wyden. Mr. President, I rise to discuss a bill I am introducing 
today, ``The Long Term Care Quality and Consumer Information Act''.
  As we begin discussions on how to assure that we reward quality 
health care, I believe we need to include long term care as part of 
that discussion. Nursing homes sever some of the most vulnerable among 
us, and assuring quality of care is encouraged and rewarded is 
important. I hope that this bill will spark a serious debate about how 
we pay for quality care. This proposal establishes a voluntary system 
under which nursing homes providing better quality of care would 
receive higher payment and in turn would provide more information about 
the quality of care provided. Information would include nurse staffing 
ratios and would be made public to consumers and their families.
  Historically, Americans have been paying the same for quality health 
care as for mediocre care. Efforts have been made by some in the 
private sector to better recognize and provide incentives for those 
providers who consistently provide a higher level of care. The 
Institute of Medicine in its report ``Leading by Example,'' declared 
the government should take the lead in improving health care by giving 
financial rewards to hospitals and doctors who improve care for 
beneficiaries in six Federal programs, including Medicare and Medicaid 
and the Veterans Health Administration. The IOM report also said the 
government should collect and make available to the public data 
comparing the quality of care among poviders. The Centers for Medicare 
and Medicaid Services has begun pilot programs. I think nursing homes 
should also be an area in which we explore payment policies that regard 
those providing a higher quality of care.
  I look forward to continuing the discussion with all stakeholders 
about these concepts so we can assure a high level of care and find 
ways to help providers improve the level of care they provide.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Reed, Mr. Burr, and Mr. Dodd):
  S. 709. A bill to amend the Public Health Service Act to establish a 
grant program to provide supportive services in permanent supportive 
housing for chronically homeless individuals, and for other purposes; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. DeWINE. Mr. President, today I rise with my colleague, Senator 
Jack Reed, to reintroduce the Services for Ending Long-Term 
Homelessness Act. I would like to thank Senator Reed for his support in 
introducing this bill and for his dedication and commitment to this 
issue. I also would like to thank Senator Burr for his work on this 
bill. Senator Burr introduced a similar

[[Page 5657]]

version of this bill when he was a member of the House of 
Representatives. I appreciate his support and the support of Senator 
Dodd, as well. Both are co-sponsors of this legislation.
  The chronically homeless represent about 10 percent of the entire 
homeless population, but consume a majority of the services. There are 
approximately 200,000 to 250,000 people who experience chronic 
homelessness. Those numbers include the heads of families, as well.
  Tragically, for these individuals, the periods of homelessness are 
measured in years--not weeks or months. They tend to have disabling 
health and behavioral health problems: 40 percent have substance abuse 
disorders, 25 percent have a physical disability, and 20 percent have 
serious mental illness. These factors often contribute to a person 
becoming homeless, in the first place, and are certainly an impediment 
to overcoming it.
  The President has set a goal of ending chronic homelessness in 10 
years. The President's New Freedom Commission on Mental Health, chaired 
by the Ohio Department of Mental Health Director, Mike Hogan, 
recommended that a comprehensive program be created to facilitate 
access to permanent supportive housing for individuals and families who 
are chronically homeless. This recommendation is so important because 
affordable housing, alone, is not enough for this hard to reach group. 
And, temporary shelter-housing does not provide the stability and 
services needed to provide long-term positive outcomes. Only supportive 
housing, where the chronically homeless can receive shelter and 
services, such as mental health and substance abuse treatment, has been 
effective in decreasing their chances of returning to the streets and 
increasing their chances for leading productive lives.
  Not only is it right to help this group of hard to reach individuals, 
but it is also fiscally responsible. This group is one of the most 
expensive groups to serve. As I mentioned previously, they represent 10 
percent of the overall homeless population, however, they consume a 
majority of homeless services. They consume the most emergency housing 
and health care services, which are also the most costly to provide. By 
encouraging supportive housing, we are providing the services necessary 
for these individuals and families to really get back on their feet. We 
can either continue to provide expensive emergency services to these 
needy people or we can give them the right kind of help--the type of 
help they need for their long-term well-being and the long-term well-
being of our communities.
  Unfortunately, current programs for funding services in permanent 
supportive housing, other than those administered by the Department of 
Housing and Urban Development, were not designed to be coordinated with 
housing programs. These programs also were not designed to meet the 
challenging needs of this specific subgroup of the homeless. That is 
why the bill we are introducing today would provide the authorization 
to fund services for supportive housing by providing grants which can 
be used with existing programs through HUD and state and local 
communities.
  Our bill also would encourage those who provide services to the 
chronically homeless, such as SAMHSA within the Department of Health 
and Human Services, to work with and coordinate their efforts with 
those who provide the physical housing, such as HUD. Under the current 
administration, these two departments have started to truly coordinate 
their efforts, and this bill would encourage and support that continued 
collaboration.
  This is a good bill, Mr. President, and it could make a real 
difference in the lives of so many individuals in need. I ask my 
colleagues to join us in support.
  I ask unanimous consent that the text of my bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 709

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Services for Ending Long-
     Term Homelessness Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Nationally, there are approximately 200,000 to 250,000 
     people who experience chronic homelessness, including some 
     families with children. Chronically homeless people often 
     live in shelters or on the streets for years at a time, 
     experience repeated episodes of homelessness without 
     achieving housing stability, or cycle between homelessness, 
     jails, mental health facilities, and hospitals.
       (2) The President's New Freedom Commission on Mental Health 
     recommended the development and implementation of a 
     comprehensive plan designed to facilitate access to 150,000 
     units of permanent supportive housing for consumers and 
     families who are chronically homeless. The Commission found 
     that affordable housing alone is insufficient for many people 
     with severe mental illness, and that flexible, mobile, 
     individualized support services are also necessary to support 
     and sustain consumers in their housing.
       (3) Congress and the President have set a goal of ending 
     chronic homelessness in 10 years.
       (4) Permanent supportive housing is a proven and cost 
     effective solution to chronic homelessness. A recent study by 
     the University of Pennsylvania found that each unit of 
     supportive housing for homeless people with mental illness in 
     New York City resulted in public savings of $16,281 per year 
     in systems of care such as mental health, human services, 
     health care, veterans' affairs, and corrections.
       (5) Current programs for funding services in permanent 
     supportive housing, other than those administered by the 
     Department of Housing and Urban Development, were not 
     designed to be closely coordinated with housing resources, 
     nor were they designed to meet the multiple needs of people 
     who are chronically homeless.

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

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

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

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

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

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

       ``(a) In General.--
       ``(1) Grants.--The Secretary shall make grants to entities 
     described in paragraph (2) for the purpose of carrying out 
     projects to provide the services described in subsection (d) 
     to chronically homeless individuals in permanent supportive 
     housing.
       ``(2) Eligible entities.--For purposes of paragraph (1), an 
     entity described in this paragraph is--
       ``(A) a State or political subdivision of a State, an 
     Indian tribe or tribal organization, or a public or nonprofit 
     private entity, including a community-based provider of 
     homelessness services, health care, housing, or other 
     services important to individuals experiencing chronic 
     homelessness; or
       ``(B) a consortium composed of entities described in 
     subparagraph (A), which consortium includes a public or 
     nonprofit private entity that serves as the lead applicant 
     and has responsibility for coordinating the activities of the 
     consortium.
       ``(b) Priorities.--In making grants under subsection (a), 
     the Secretary shall give priority to applicants demonstrating 
     that the applicants--
       ``(1) target funds to individuals or families who--
       ``(A) have been homeless for longer periods of time or have 
     experienced more episodes of homelessness than are required 
     to meet the definition of chronic homelessness under this 
     section;
       ``(B) have high rates of utilization of emergency public 
     systems of care; or
       ``(C) have a history of interactions with law enforcement 
     and the criminal justice system;

[[Page 5658]]

       ``(2) have greater funding commitments from State or local 
     government agencies responsible for overseeing mental health 
     treatment, substance abuse treatment, medical care, and 
     employment (including commitments to provide Federal funds in 
     accordance with subsection (e)(2)(B)(ii));
       ``(3) will provide for an increase in the number of units 
     of permanent supportive housing that would serve chronically 
     homeless individuals in the community as a result of an award 
     of a grant under subsection (a); and
       ``(4) have demonstrated experience providing services to 
     address the mental health and substance abuse problems of 
     chronically homeless individuals living in permanent 
     supportive housing settings.
       ``(c) Geographic Distribution.--The Secretary shall ensure 
     that consideration is given to geographic distribution (such 
     as urban and rural areas) in the awarding of grants under 
     subsection (a).
       ``(d) Services.--The services referred to in subsection (a) 
     are the following:
       ``(1) Services provided by the grantee or by qualified 
     subcontractors that promote recovery and self-sufficiency and 
     address barriers to housing stability, including but not 
     limited to the following:
       ``(A) Mental health services, including treatment and 
     recovery support services.
       ``(B) Substance abuse treatment and recovery support 
     services, including counseling, treatment planning, recovery 
     coaching, and relapse prevention.
       ``(C) Integrated, coordinated treatment and recovery 
     support services for co-occurring disorders.
       ``(D) Health education, including referrals for medical and 
     dental care.
       ``(E) Services designed to help individuals make progress 
     toward self-sufficiency and recovery, including benefits 
     advocacy, money management, life-skills training, self-help 
     programs, and engagement and motivational interventions.
       ``(F) Parental skills and family support.
       ``(G) Case management.
       ``(H) Other supportive services that promote an end to 
     chronic homelessness.
       ``(I) Coordination or partnership with other agencies, 
     programs, or mainstream benefits to maximize the availability 
     of services and resources to meet the needs of chronically 
     homeless persons living in supportive housing using cost-
     effective approaches that avoid duplication.
       ``(J) Data collection and measuring performance outcomes as 
     specified in subsection (k).
       ``(2) Services, as described in paragraph (1), that are 
     delivered to individuals and families who are chronically 
     homeless and who are scheduled to become residents of 
     permanent supportive housing within 90 days pending the 
     location or development of an appropriate unit of housing.
       ``(3) For individuals and families who are otherwise 
     eligible, and who have voluntarily chosen to seek other 
     housing opportunities after a period of tenancy in supportive 
     housing, services, as described in paragraph (1), that are 
     delivered, for a period of 90 days after exiting permanent 
     supportive housing or until the individuals have transitioned 
     to comprehensive services adequate to meet their current 
     needs, provided that the purpose of the services is to 
     support the individuals in their choice to transition into 
     housing that is responsive to their individual needs and 
     preferences.
       ``(e) Matching Funds.--
       ``(1) In general.--A condition for the receipt of a grant 
     under subsection (a) is that, with respect to the cost of the 
     project to be carried out by an applicant pursuant to such 
     subsection, the applicant agree as follows:
       ``(A) In the case of the initial grant pursuant to 
     subsection (j)(1)(A), the applicant will, in accordance with 
     paragraphs (2) and (3), make available contributions toward 
     such costs in an amount that is not less than $1 for each $3 
     of Federal funds provided in the grant.
       ``(B) In the case of a renewal grant pursuant to subsection 
     (j)(1)(B), the applicant will, in accordance with paragraphs 
     (2) and (3), make available contributions toward such costs 
     in an amount that is not less than $1 for each $1 of Federal 
     funds provided in the grant.
       ``(2) Source of contribution.--For purposes of paragraph 
     (1), contributions made by an applicant are in accordance 
     with this paragraph if made as follows:
       ``(A) The contribution is made from funds of the applicant 
     or from donations from public or private entities.
       ``(B) Of the contribution--
       ``(i) not less than 80 percent is from non-Federal funds; 
     and
       ``(ii) not more than 20 percent is from Federal funds 
     provided under programs that--

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

       ``(3) Determination of amount contributed.--Contributions 
     required in paragraph (1) may be in cash or in kind, fairly 
     evaluated, including plant, equipment, or services. Amounts 
     provided by the Federal Government, or services assisted or 
     subsidized to any significant extent by the Federal 
     Government, may not be included in determining the amount of 
     non-Federal contributions required in paragraph (2)(B)(i).
       ``(f) Administrative Expenses.--A condition for the receipt 
     of a grant under subsection (a) is that the applicant 
     involved agree that not more than 10 percent of the grant 
     will be expended for administrative expenses with respect to 
     the grant. Expenses for data collection and measuring 
     performance outcomes as specified in subsection (k) shall not 
     be considered as administrative expenses subject to the 
     limitation in this subsection.
       ``(g) Certain Uses of Funds.--Notwithstanding other 
     provisions of this section, a grantee under subsection (a) 
     may expend not more than 20 percent of the grant to provide 
     the services described in subsection (d) to homeless 
     individuals who are not chronically homeless.
       ``(h) Application for Grant.--A grant may be made under 
     subsection (a) only if an application for the grant is 
     submitted to the Secretary and the application is in such 
     form, is made in such manner, and contains such agreements, 
     assurances, and information as the Secretary determines to be 
     necessary to carry out this section.
       ``(i) Certain Requirements.--A condition for the receipt of 
     a grant under subsection (a) is that the applicant involved 
     demonstrate the following:
       ``(1) The applicant and all direct providers of services 
     have the experience, infrastructure, and expertise needed to 
     ensure the quality and effectiveness of services, which may 
     be demonstrated by any of the following:
       ``(A) Compliance with all local, city, county, or State 
     requirements for licensing, accreditation, or certification 
     (if any) which are applicable to the proposed project.
       ``(B) A minimum of two years experience providing 
     comparable services that do not require licensing, 
     accreditation, or certification.
       ``(C) Certification as a Medicaid service provider, 
     including health care for the homeless programs and community 
     health centers.
       ``(D) An executed agreement with a relevant State or local 
     government agency that will provide oversight over the mental 
     health, substance abuse, or other services that will be 
     delivered by the project.
       ``(2) There is a mechanism for determining whether 
     residents are chronically homeless. Such a mechanism may rely 
     on local data systems or records of shelter admission. If 
     there are no sources of data regarding the duration or number 
     of homeless episodes, or if such data are unreliable for the 
     purposes of this subsection, an applicant must demonstrate 
     that the project will implement appropriate procedures, 
     taking into consideration the capacity of local homeless 
     service providers to document episodes of homelessness and 
     the challenges of engaging persons who have been chronically 
     homeless, to verify that an individual or family meets the 
     definition for being chronically homeless under this section.
       ``(3) The applicant participates in a local, regional, or 
     statewide homeless management information system.
       ``(j) Duration of Initial and Renewal Grants; Additional 
     Provisions Regarding Renewal Grants.--
       ``(1) In general.--Subject to paragraphs (2) and (3), the 
     period during which payments are made to a grantee under 
     subsection (a) shall be in accordance with the following:
       ``(A) In the case of the initial grant, the period of 
     payments shall be not less than three years and not more than 
     five years.
       ``(B) In the case of a subsequent grant (referred to in 
     this subsection as a `renewal grant'), the period of payments 
     shall be not more than five years.
       ``(2) Annual approval; availability of appropriations; 
     number of grants.--The provision of payments under an initial 
     or renewal grant is subject to annual approval by the 
     Secretary of the payments and to the availability of 
     appropriations for the fiscal year involved to make the 
     payments. This subsection may not be construed as 
     establishing a limitation on the number of grants under 
     subsection (a) that may be made to an entity.
       ``(3) Additional provisions regarding renewal grants.--
       ``(A) Compliance with minimum standards.--A renewal grant 
     may be made by the Secretary only if the Secretary determines 
     that the applicant involved has, in the project carried out 
     with the grant, maintained compliance with minimum standards 
     for quality and successful outcomes for housing retention, as 
     determined by the Secretary.
       ``(B) Amount.--The maximum amount of a renewal grant under 
     this subsection shall not exceed an amount equal to--
       ``(i) 75 percent of the amount of Federal funds provided in 
     the final year of the initial grant period; or
       ``(ii) 50 percent of the total costs of sustaining the 
     program funded under the grant at the level provided for in 
     the year preceding the year for which the renewal grant is 
     being awarded;


[[Page 5659]]


     as determined by the Secretary.
       ``(k) Strategic Performance Outcomes and Reports.--
       ``(1) In general.--The Secretary shall, as a condition of 
     the receipt of grants under subsection (a), require grantees 
     to provide data regarding the performance outcomes of the 
     projects carried out under the grants. Consistent with the 
     requirements and procedures established by the Secretary, 
     each grantee shall measure and report specific performance 
     outcomes related to the long-term goals of increasing 
     stability within the community for people who have been 
     chronically homeless, and decreasing the recurrence of 
     periods of homelessness.
       ``(2) Performance outcomes.--The performance outcomes 
     described under paragraph (1) shall include, with respect to 
     individuals who have been chronically homeless--
       ``(A) improvements in housing stability;
       ``(B) improvements in employment and education;
       ``(C) reductions in problems related to substance abuse;
       ``(D) reductions in problems related to mental health 
     disorders; and
       ``(E) other areas as the Secretary determines appropriate.
       ``(3) Coordination and consistency with other homeless 
     assistance programs.--
       ``(A) Procedures.--In establishing strategic performance 
     outcomes and reporting requirements under paragraph (1), the 
     Secretary shall develop and implement procedures that 
     minimize the costs and burdens to grantees and program 
     participants, and that are practical, streamlined, and 
     designed for consistency with the requirements of the 
     homeless assistance programs administered by the Secretary of 
     Housing and Urban Development.
       ``(B) Applicant coordination.--Applicants under this 
     section shall coordinate with community stakeholders, 
     including participants in the local homeless management 
     information system, concerning the development of systems to 
     measure performance outcomes and with the Secretary for 
     assistance with data collection and measurements activities.
       ``(4) Report.--A grantee shall submit an annual report to 
     the Secretary that--
       ``(A) identifies the grantee's progress towards achieving 
     its strategic performance outcomes; and
       ``(B) describes other activities conducted by the grantee 
     to increase the participation, housing stability, and other 
     improvements in outcomes for individuals who have been 
     chronically homeless.
       ``(l) Training and Technical Assistance.--The Secretary, 
     directly or through awards of grants or contracts to public 
     or nonprofit private entities, shall provide training and 
     technical assistance regarding the planning, development, and 
     provision of services in projects under subsection (a).
       ``(m) Biennial Reports to Congress.--Not later than two 
     years after the date of the enactment of the Services for 
     Ending Long-Term Homelessness Act, and biennially thereafter, 
     the Secretary shall submit to the Congress a report on 
     projects under subsection (a) that includes a summary of 
     information received by the Secretary under subsection (k), 
     and that describes the impact of the program under subsection 
     (a) as part of a comprehensive strategy for ending long term 
     homelessness and improving outcomes for individuals with 
     mental illness and substance abuse problems.
       ``(n) Definitions.--For purposes of this section:
       ``(1) The term `chronically homeless' means an individual 
     or family who--
       ``(A) is currently homeless;
       ``(B) has been homeless continuously for at least one year 
     or has been homeless on at least four separate occasions in 
     the last three years; and
       ``(C) has an adult head of household with a disabling 
     condition, defined as a diagnosable substance use disorder, 
     serious mental illness, developmental disability, or chronic 
     physical illness or disability, including the co-occurrence 
     of two or more of these conditions.
       ``(2) The term `disabling condition' means a condition that 
     limits an individual's ability to work or perform one or more 
     activities of daily living.
       ``(3) The term `homeless' means sleeping in a place not 
     meant for human habitation or in an emergency homeless 
     shelter.
       ``(4)(A) The term `permanent supportive housing' means 
     permanent, affordable housing with flexible support services 
     that are available and designed to help the tenants stay 
     housed and build the necessary skills to live as 
     independently as possible. Such term does not include housing 
     that is time-limited. Supportive housing offers residents 
     assistance in reaching their full potential, which may 
     include opportunities to secure other housing that meets 
     their needs and preferences, based on individual choice 
     instead of the requirements of time-limited transitional 
     programs. Under this section, permanent affordable housing 
     includes but is not limited to permanent housing funded or 
     assisted through title IV of the McKinney-Vento Homeless 
     Assistance Act and section (8) of the United States Housing 
     Act of 1937.
       ``(B) For purposes of subparagraph (A), the term 
     `affordable' means within the financial means of individuals 
     who are extremely low income, as defined by the Secretary of 
     Housing and Urban Development.
       ``(o) Funding.--
       ``(1) Authorization of appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2006 through 2010.
       ``(2) Allocation for training and technical assistance.--Of 
     the amount appropriated under paragraph (1) for a fiscal 
     year, the Secretary may reserve not more than 3 percent for 
     carrying out subsection (l).''.

  Mr. REED. Mr. President, I join with my colleagues, Senators DeWine, 
Dodd and Burr to introduce the Services for Ending Long-Term 
Homelessness Act, (SELHA).
  It is estimated that two to three million Americans experience a 
period of homelessness in a given year. While the majority of these 
individuals find themselves homeless for a brief period of time, a 
growing segment are experiencing prolonged periods of homelessness. 
Roughly 200,000 to 250,000 Americans fall under the category of 
chronically homeless.
  In March 2003, former Department of Health and Human Services 
Secretary Tommy Thompson issued a report from a work group and an 
interagency subcommittee that was assembled to define the issues and 
challenges facing the chronically homeless and develop a comprehensive 
approach to bringing the appropriate services and treatments to this 
population of individuals who typically fall outside of mainstream 
support programs.
  Similarly, the President's New Freedom Commission on Mental Health 
recommended the development of a comprehensive plan to facilitate 
access to permanent supportive housing for individuals and families who 
are chronically homeless. However, affordable housing, alone, is not 
enough for many chronically homeless to achieve stability. This 
population also needs flexible, mobile, and individualized support 
services to sustain them in housing.
  The legislation we are introducing today is critical to the 
development and implementation of more effective strategies to combat 
chronic homelessness through improved service delivery and coordination 
across Federal agencies serving this population. It directs the 
Substance Abuse and Mental Health Services Administration to coordinate 
their efforts not only with the Department of Housing and Urban 
Development, but with other Federal departments and the various 
agencies within the Department of Health and Human Services that 
provide supportive services.
  Mr. President, SELHA is an important bipartisan measure which will 
help to ensure that the growing number of Americans experiencing 
chronic homelessness have access to the range of supportive services 
they need to get them back on their feet, living in permanent 
supportive housing and taking the steps necessary to become productive 
and active members of our communities again.
  I look forward to working with my colleagues toward expeditious 
passage of this legislation.
                                 ______
                                 
      By Mr. AKAKA (for himself, Ms. Murkowski, and Mr. Stevens):
  S. 711. A bill to amend the Methane Hydrate Research and Development 
Act of 2000 to reauthorize that Act and to promote the research, 
identification, assessment, exploration, and development of methane 
hydrate resources; to the Committee on Energy and Natural Resources.
  Mr. AKAKA. Mr. President, I rise today to introduce a bill to re-
authorize a critical program for our energy future. It is widely 
believed that the U.S. must diversify its energy portfolio and explore 
new domestic sources and technologies for energy to curb our dependence 
on foreign oil. As a senior member of the Committee on Energy and 
Natural Resources, I know we have been assessing the potential for a 
variety of energy sources for the future including natural gas, clean 
coal technology, nuclear energy, renewable energy, and others. This 
bill, the Methane Hydrate Research and Development Reauthorization Act 
of 2005, will reauthorize a small but important program on methane 
hydrate research and development, a key and abundant non-conventional 
source of energy.

[[Page 5660]]

  I would like to extend my appreciation to my cosponsors, Senators 
Murkowski and Stevens, who share my interest and determination in 
exploring the potential of methane hydrates for energy production. We 
share a common goal to see that we fully understand the prospects for 
this domestic energy resource. This new legislation will foster the 
research and development needed to expand our knowledge to better 
assess both the opportunities and challenges this potential energy 
resource presents. Our legislation provides for a higher level of 
scientific research and partnering between government agencies, 
academic institutions, and industry.
  The United States and the world will require substantially increased 
quantities of natural gas, electricity, and transportation fuels over 
the next 20 years. Global competition for tightening supplies of oil 
and natural gas with emerging economies such as China and India will 
drive energy prices higher, and makes it apparent that the United 
States needs to capitalize upon its domestic energy resources. The 
United States must continue to diversify and expand the Nation's access 
to natural gas supplies through continuing research and development 
efforts in technologies for tapping non-conventional natural gas 
supplies, such as methane hydrates.
  Methane hydrates were discovered in the 1960s and consist of methane 
gas trapped in lattice-like ice. They are found largely in ocean bottom 
sediments lying below 450 meters and in permafrost. There are several 
published estimates of the total amount of methane stored in gas 
hydrates worldwide. These estimates vary. However, it is widely 
believed that there is more energy potentially stored in methane 
hydrates than in all other known fossil fuel reserves, combined. The 
National Commission on Energy Policy's December 2004 report, Ending the 
Energy Stalemate--A Bipartisan Strategy To Meet America's Energy 
Challenges, estimated that the United States could possess one quarter 
of the world's supply of methane hydrates.
  The United States will consume increasing volumes of natural gas well 
into the 21st century. United States natural gas consumption is 
expected to increase from approximately 22 trillion cubic feet in 2003 
to more than 32 trillion cubic feet in 2020--a projected increase of 40 
percent. Natural gas is expected to take on a greater role in power 
generation, largely because of the increasing demand for clean fuels 
and the relatively low capital costs of building new natural gas-fired 
power equipment. The National Commission on Energy Policy reported that 
the United States resource base may contain up to two hundred thousand 
trillion cubic feet of methane, onshore in the Alaskan permafrost, and 
offshore on much of the Nation's deep continental shelf. If even one 
percent of the estimated domestic resource base proves commercially 
viable, it would roughly double the Nation's technically recoverable 
natural gas reserves, according to the Department of Energy's Office of 
Fossil Energy.
  Given the growing demand for natural gas, the development of new, 
cost-effective supplies can play a major role in moderating price 
increases and ensuring consumer confidence in the long-term 
availability of reliable, affordable fuel. Today, the potential to 
extract commercially-relevant quantities of natural gas from hydrates 
is not yet viable. With no incentive to fund its own research and 
development, the private sector is not vigorously pursuing the research 
currently needed that could make methane hydrates technically and 
economically viable. Therefore, cooperation between the federal 
government and private industry remains the best effort in which the 
United States can explore the viability of an energy resource whose 
long-range possibilities might one day dramatically change the world's 
energy portfolio.
  Uncertainties exist regarding the nature of these deposits and, in 
particular, how best to extract the enormous quantity of natural gas 
they contain in an economic and environmentally sensitive manner. 
However, some alternatives are worse. For example, transporting natural 
gas from foreign gas fields to the United States by shipping it in 
liquid form at negative 162 degrees Celsius is an expensive undertaking 
and one that is attractive to terrorists. Methane hydrates, on the 
other hand, can be found domestically, in Alaska and the Gulf of 
Mexico, and with our ally to the north, Canada. Hydrates are likely to 
provide commercially viable natural gas supplies by 2025. Their long 
term potential to meet United States energy demands for natural gas is 
considerable.
  The Methane Hydrate Research Act of 2000 invigorated methane hydrate 
research in the United States. The act also mandated that the National 
Research Council study the program initiated by the act and to make 
recommendations for future research and development needs. Without a 
doubt, the National Research Council concluded in its 2004 report, 
Charting the Future of Methane Hydrate Research in the United States, 
that the U.S. must continue its investment in hydrates research and 
development because of the size of the resource. Furthermore, the 
report commended the program's excellent coordination and cooperation 
between federal agencies, industry, and academia involved in methane 
hydrates research. The legislation I am introducing incorporates the 
recommendations of the National Research Council, and improves upon the 
act by requiring external scientific peer reviews, strengthening the 
advisory panel, broadening the field work proposals to include test 
wells, increasing the appropriations needed to conduct the research, 
and emphasizing the need to promote education and training in the field 
of methane hydrate research and resource development. The bill also 
incorporates comments from the Department of Energy.
  Mr. President, science and technology have and will continue to help 
us learn more about our world, and I believe, help us solve some of our 
toughest problems, not only domestically but globally. These are 
complex and significant problems relating to the impact of human 
activities on our environment, our heavy dependence on finite fossil 
fuels from sources that may not prove reliable, and limited energy 
supplies in the face of growing demands of expanding national economies 
that are increasingly intertwined in a global economic network. I 
believe the Federal Government must continue to foster the needed 
research and development in the field of methane hydrate research.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 711

       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 ``Methane Hydrate Research and 
     Development Reauthorization Act of 2005''.

     SEC. 2. METHANE HYDRATE RESEARCH AND DEVELOPMENT.

       The Methane Hydrate Research and Development Act of 2000 
     (30 U.S.C. 1902 note; Public Law 106-193) is amended to read 
     as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Methane Hydrate Research 
     and Development Act of 2000'.

     ``SEC. 2. FINDINGS.

       ``Congress finds that--
       ``(1) in order to promote energy independence and meet the 
     increasing demand for energy, the United States will require 
     a diversified portfolio of substantially increased quantities 
     of electricity, natural gas, and transportation fuels;
       ``(2) according to the report submitted to Congress by the 
     National Research Council entitled `Charting the Future of 
     Methane Hydrate Research in the United States', the total 
     United States resources of gas hydrates have been estimated 
     to be on the order of 200,000 trillion cubic feet;
       ``(3) according to the report of the National Commission on 
     Energy Policy entitled `Ending the Energy Stalemate - A 
     Bipartisan Strategy to Meet America's Energy Challenge', and 
     dated December 2004, the United States may be endowed with 
     over 1/4 of the methane hydrate deposits in the world;
       ``(4) according to the Energy Information Administration, a 
     shortfall in natural gas

[[Page 5661]]

     supply from conventional and unconventional sources is 
     expected to occur in or about 2020; and
       ``(5) the National Academy of Science states that methane 
     hydrate may have the potential to alleviate the projected 
     shortfall in the natural gas supply.

     ``SEC. 3. DEFINITIONS.

       ``In this Act:
       ``(1) Contract.--The term `contract' means a procurement 
     contract within the meaning of section 6303 of title 31, 
     United States Code.
       ``(2) Cooperative agreement.--The term `cooperative 
     agreement' means a cooperative agreement within the meaning 
     of section 6305 of title 31, United States Code.
       ``(3) Director.--The term `Director' means the Director of 
     the National Science Foundation.
       ``(4) Grant.--The term `grant' means a grant awarded under 
     a grant agreement (within the meaning of section 6304 of 
     title 31, United States Code).
       ``(5) Industrial enterprise.--The term `industrial 
     enterprise' means a private, nongovernmental enterprise that 
     has an expertise or capability that relates to methane 
     hydrate research and development.
       ``(6) Institution of higher education.--The term 
     `institution of higher education' means an institution of 
     higher education (as defined in section 102 of the Higher 
     Education Act of 1965 (20 U.S.C. 1002)).
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Energy, acting through the Assistant Secretary for Fossil 
     Energy.
       ``(8) Secretary of commerce.--The term `Secretary of 
     Commerce' means the Secretary of Commerce, acting through the 
     Administrator of the National Oceanic and Atmospheric 
     Administration.
       ``(9) Secretary of defense.--The term `Secretary of 
     Defense' means the Secretary of Defense, acting through the 
     Secretary of the Navy.
       ``(10) Secretary of the interior.--The term `Secretary of 
     the Interior' means the Secretary of the Interior, acting 
     through the Director of the United States Geological Survey, 
     the Director of the Bureau of Land Management, and the 
     Director of the Minerals Management Service.

     ``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.

       ``(a) In General.--
       ``(1) Commencement of program.--Not later than 90 days 
     after the date of the enactment of the Methane Hydrate 
     Research and Development Reauthorization Act of 2005, the 
     Secretary, in consultation with the Secretary of Commerce, 
     the Secretary of Defense, the Secretary of the Interior, and 
     the Director, shall commence a program of methane hydrate 
     research and development in accordance with this section.
       ``(2) Designations.--The Secretary, the Secretary of 
     Commerce, the Secretary of Defense, the Secretary of the 
     Interior, and the Director shall designate individuals to 
     carry out this section.
       ``(3) Coordination.--The individual designated by the 
     Secretary shall coordinate all activities within the 
     Department of Energy relating to methane hydrate research and 
     development.
       ``(4) Meetings.--The individuals designated under paragraph 
     (2) shall meet not later than 180 days after the date of the 
     enactment of the Methane Hydrate Research and Development 
     Reauthorization Act of 2005 and not less frequently than 
     every 180 days thereafter to--
       ``(A) review the progress of the program under paragraph 
     (1); and
       ``(B) coordinate interagency research and partnership 
     efforts in carrying out the program.
       ``(b) Grants, Contracts, Cooperative Agreements, 
     Interagency Funds Transfer Agreements, and Field Work 
     Proposals.--
       ``(1) Assistance and coordination.--In carrying out the 
     program of methane hydrate research and development 
     authorized by this section, the Secretary may award grants 
     to, or enter into contracts or cooperative agreements with, 
     institutions of higher education and industrial enterprises 
     to--
       ``(A) conduct basic and applied research to identify, 
     explore, assess, and develop methane hydrate as a 
     commercially viable source of energy;
       ``(B) identify methane hydrate resources through remote 
     sensing;
       ``(C) acquire and reprocess seismic data suitable for 
     characterizing methane hydrate accumulations;
       ``(D) assist in developing technologies required for 
     efficient and environmentally sound development of methane 
     hydrate resources;
       ``(E) promote education and training in methane hydrate 
     resource research and resource development through 
     fellowships or other means for graduate education and 
     training;
       ``(F) conduct basic and applied research to assess and 
     mitigate the environmental impact of hydrate degassing 
     (including both natural degassing and degassing associated 
     with commercial development);
       ``(G) develop technologies to reduce the risks of drilling 
     through methane hydrates; and
       ``(H) conduct exploratory drilling, well testing, and 
     production testing operations on permafrost and non-
     permafrost gas hydrates in support of the activities 
     authorized by this paragraph, including drilling of 1 or more 
     full-scale production test wells.
       ``(2) Competitive peer review.--Funds made available under 
     paragraph (1) shall be made available based on a competitive 
     process using external scientific peer review of proposed 
     research.
       ``(c) Methane Hydrates Advisory Panel.--
       ``(1) In general.--The Secretary shall establish an 
     advisory panel (including the hiring of appropriate staff) 
     consisting of representatives of industrial enterprises, 
     institutions of higher education, oceanographic institutions, 
     State agencies, and environmental organizations with 
     knowledge and expertise in the natural gas hydrates field, 
     to--
       ``(A) assist in developing recommendations and broad 
     programmatic priorities for the methane hydrate research and 
     development program carried out under subsection (a)(1);
       ``(B) provide scientific oversight for the methane hydrates 
     program, including assessing progress toward program goals, 
     evaluating program balance, and providing recommendations to 
     enhance the quality of the program over time; and
       ``(C) not later than 2 years after the date of the 
     enactment of the Methane Hydrate Research and Development 
     Reauthorization Act of 2005, and at such later dates as the 
     panel considers advisable, submit to Congress--
       ``(i) an assessment of the methane hydrate research 
     program; and
       ``(ii) an assessment of the 5-year research plan of the 
     Department of Energy.
       ``(2) Conflicts of interest.--In appointing each member of 
     the advisory panel established under paragraph (1), the 
     Secretary shall ensure, to the maximum extent practicable, 
     that the appointment of the member does not pose a conflict 
     of interest with respect to the duties of the member under 
     this Act.
       ``(3) Meetings.--The advisory panel shall--
       ``(A) hold the initial meeting of the advisory panel not 
     later than 180 days after the date of establishment of the 
     advisory panel; and
       ``(B) meet biennially thereafter.
       ``(4) Coordination.--The advisory panel shall coordinate 
     activities of the advisory panel with program managers of the 
     Department of Energy at appropriate national laboratories
       ``(d) Construction Costs.--None of the funds made available 
     to carry out this section may be used for the construction of 
     a new building or the acquisition, expansion, remodeling, or 
     alteration of an existing building (including site grading 
     and improvement and architect fees).
       ``(e) Responsibilities of the Secretary.--In carrying out 
     subsection (b)(1), the Secretary shall--
       ``(1) facilitate and develop partnerships among government, 
     industrial enterprises, and institutions of higher education 
     to research, identify, assess, and explore methane hydrate 
     resources;
       ``(2) undertake programs to develop basic information 
     necessary for promoting long-term interest in methane hydrate 
     resources as an energy source;
       ``(3) ensure that the data and information developed 
     through the program are accessible and widely disseminated as 
     needed and appropriate;
       ``(4) promote cooperation among agencies that are 
     developing technologies that may hold promise for methane 
     hydrate resource development;
       ``(5) report annually to Congress on the results of actions 
     taken to carry out this Act; and
       ``(6) ensure, to the maximum extent practicable, greater 
     participation by the Department of Energy in international 
     cooperative efforts.

     ``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.

       ``(a) Agreement for Study.--The Secretary shall offer to 
     enter into an agreement with the National Research Council 
     under which the National Research Council shall--
       ``(1) conduct a study of the progress made under the 
     methane hydrate research and development program implemented 
     under this Act; and
       ``(2) make recommendations for future methane hydrate 
     research and development needs.
       ``(b) Report.--Not later than September 30, 2009, the 
     Secretary shall submit to Congress a report containing the 
     findings and recommendations of the National Research Council 
     under this section.

     ``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.

       ``The Secretary shall provide to the Committee on Science 
     of the House of Representatives and the Committee on Energy 
     and Natural Resources of the Senate copies of any report or 
     study that the Department of Energy prepares at the direction 
     of any committee of Congress.

     ``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to the Secretary 
     to carry out this Act, to remain available until expended--
       ``(1) $15,000,000 for fiscal year 2006;
       ``(2) $20,000,000 for fiscal year 2007;
       ``(3) $30,000,000 for fiscal year 2008;
       ``(4) $50,000,000 for fiscal year 2009; and
       ``(5) $50,000,000 for fiscal year 2010.''.


[[Page 5662]]

  Ms. MURKOWSKI. Mr. President, I am proud to come to the floor today 
to introduce legislation of vital importance to our Nation. Enactment 
of the Methane Hydrate Research and Development Reauthorization Act of 
2005 will provide the authorizations necessary to unlock a potentially 
huge supply of domestic natural gas, enough gas to supply our Nation 
for generations.
  However, before I introduce this legislation, I would first like to 
thank my good friend and colleague, Senator Akaka, for his dedication 
to helping address our Nation's energy crisis through legislation that 
should dramatically increase our domestic supply of environmentally 
friendly, clean burning natural gas. Without Senator Akaka's hard work 
and focus on this issue we would not be introducing this legislation 
today.
  Mr. President, our Nation is facing an energy crisis. Oil and natural 
gas prices are at historic or near historic high levels. Oil prices are 
over $50 a barrel. Natural gas prices are over $7.00 a MMBtu. Indeed, 
United States natural gas prices have increased by almost 350 percent 
since 1998 and are currently the highest in the world. Despite this 
huge increase in cost, domestic natural gas production has declined by 
almost 5 percent and Canadian imports have declined by almost 25 
percent from 2001 to 2004. Estimates are that during the past 5 years 
United States natural gas consumers have paid nearly $200 billion more 
for natural gas than they paid in the preceding 5 years.
  These extraordinarily high natural gas prices are having a profound 
impact on every segment of our economy. Chairman Greenspan identified 
our current natural gas price and supply situation as a crisis that 
could have a devastating impact on the United States economy. In fact, 
estimates are that the natural gas crisis has significantly contributed 
to the loss of 2.5 million United States manufacturing jobs. Indeed, 
the ongoing ``demand destruction'' caused by current gas prices with 
its devastating impact on United States manufacturing will only 
continue unless we address the current natural gas supply shortage and 
high prices.
  Today, the United States produces about 22 trillion cubic feet of 
natural gas each year. By 2025, the Energy Information Administration 
estimates that United States natural gas consumption will reach 31 
trillion cubic feet. That's an increase of more than 40 percent. Much 
of the new electric generation that will come on line during the next 
two decades will require natural gas according to a study by the 
American Gas Foundation. Indeed, clean burning natural gas remains the 
premium fossil fuel for electric power generation.
  The EIA estimates that by 2025 the United States will produce only 
21.8 trillion cubic feet of natural gas meeting just 70 percent of the 
Nation's expected demand. Thus, absent securing a new domestic supply 
of gas, the United States will have to import 30 percent of its natural 
gas supply. We have already gone down this path with our petroleum 
supplies. We have witnessed the unacceptable national security, balance 
of payments and general economic consequences of this level of reliance 
on foreign sources for our nation's critical supply of oil. We must not 
repeat this reality with natural gas.
  This is why I am proud to introduce the Methane Hydrate Research and 
Development Reauthorization Act of 2005. As stated in the findings 
section of the legislation, the National Research Council has estimated 
the total United States methane hydrate resource base to be on the 
order of 200,000 trillion cubic feet. Alaska alone is thought to have 
potential hydrate resources of 32,000 trillion cubic feet. Indeed, a 
report issued by the National Commission on Energy Policy states that 
the United States may be endowed with over one-fourth of the methane 
hydrate deposits in the world. This is an immense supply of secure, 
domestic energy that could supply our country for many, many years.
  The Methane Hydrate Reauthorization Act of 2005 builds upon the 
success of the original Methane Hydrate Research and Development Act of 
2000. The new act incorporates certain changes to the 2000 legislation 
suggested by the National Research Council of the National Academies 
and the Department of Energy. The 2000 act established an advisory 
panel to advise the Secretary of Energy on potential applications of 
methane hydrate and to assist in developing recommendations and 
priorities for methane hydrate research and development programs. The 
new act strengthens the role of the advisory panel to ensure that the 
research funds are put to their most effective use. The 2005 act also 
increases the use of a scientific peer review process in determining 
which projects will be funded. Further, the new legislation directs the 
funding of fellowships and graduate education and training programs to 
establish a solid, scientific foundation of expertise in the United 
States on methane hydrates. Finally, the 2005 act authorizes increased 
funding for the methane hydrate program. The increased funding is 
critical in order to allow for the transition from a largely research 
oriented program to one that will foster the beginning of the 
commercialization of our Nation's methane hydrate resources.
  Again, I thank Senator Akaka and his staff for their hard work and 
commitment to this legislation that is so important to our nation's 
future.

                          ____________________