[Congressional Record (Bound Edition), Volume 152 (2006), Part 11]
[Senate]
[Pages 14387-14398]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MIKULSKI (for herself and Mr. Sarbanes):
  S. 3652. A bill to amend the definition of a law enforcement officer 
under subchapter III of chapter 83 and chapter 84 of title 5, United 
States Code, respectively, to ensure the inclusion of certain 
positions; to the Committee on Homeland Security and Governmental 
Affairs.
  Ms. MIKULSKI. Mr. President, today I am reintroducing the Law 
Enforcement Officers Retirement Equity Act. I am proud to be joined on 
this bill by my colleague and friend, Senator Sarbanes. This 
legislation will ensure that all Federal law enforcement officers have 
the same retirement options and that their pay and benefits conform to 
the federal law enforcement retirement system.
  Under current law, most Federal law enforcement officers and 
firefighters are eligible to retire at age 50 with 20 years of Federal 
service. But some Federal law enforcement personnel, such as customs 
and immigration inspectors at the Department of Homeland Security or 
police officers at Veterans Affairs, are not eligible for these same 
benefits. This legislation will amend current law and grant the same 
pay and 20-year retirement to all law enforcement officers.
  We must honor our Federal law enforcement personnel. The names of 
Federal law enforcement officials who have died in the line of duty are 
engraved on the Law Enforcement Memorial. We include the names of the 
officers from Homeland Security and Veterans Affairs. We honor them 
when they die, but we don't recognize them when they are living.
  We need to make sure that all Federal law enforcement officers earn 
the pay and benefits that they deserve. These brave men and women are 
the country's first line of defense against terrorism and the smuggling 
of illegal drugs at our borders. They have the same law enforcement 
training as all other law enforcement personnel, and face the same 
risks and challenges.
  For example, U.S. Customs inspectors are responsible for the most 
arrests performed by Customs Service employees. Yet they do not qualify 
for law enforcement officer status. Along with U.S. Customs agents, 
uniformed U.S. Customs inspectors are helping to provide additional 
security at the nation's airports and help enforce U.S. Customs laws. 
They were among the first to respond to the tragedy at the World Trade 
Center. After September 11, Customs inspectors are playing a critical 
role in ensuring that terrorists don't get their hands on weapons of 
mass destruction and smuggle them into the country.
  Like customs inspectors, immigration inspectors at the Department of 
Homeland Security are also on the front lines of defense against 
terrorism. Immigration inspectors enforce the Nation's immigration laws 
at more than 300 ports of entry. In the normal course of their duties, 
they enforce criminal law, make arrests, interrogate applicants for 
entry, search persons and effects, and seize evidence. Inspectors' 
responsibilities have become increasing complex as political, economic 
and social unrest has increased globally. The threat of terrorism only 
increases these responsibilities.
  This legislation is cost effective. Any cost that is created by this 
act is more than offset by savings in training costs and increased 
revenue collection. A 20-year retirement bill for these critical 
employees will reduce turnover, increase productivity, decrease 
employee recruitment and development costs, and enhance the retention 
of a well-trained and experienced work force. These vital Federal 
employees bear the same risks and work under similar conditions to 
other law enforcement officials and deserve to receive the same level 
of benefits.
  This bill will improve the effectiveness of our Federal workforce to 
ensure the integrity of our borders and proper collection of the taxes 
and duties owed to the Federal Government. This bill is strongly 
supported by the National Treasury Employees Union. I urge my 
colleagues to join me again in this Congress in expressing support for 
this bill and finally getting it enacted.
                                 ______
                                 
      By Mr. JEFFORDS (for himself and Mr. Carper):
  S. 3654. A bill to amend the Internal Revenue Code to allow a credit 
against income tax, or, in the alternative, a special depreciation 
allowance, for reuse and recycling property, to provide for tax-exempt 
financing of recycling equipment, and for other purposes; to the 
Committee on Finance.
  Mr. JEFFORDS. Mr. President, today I am introducing the Recycling 
Investment Saves Energy--RISE--Act of 2006 with my colleague Senator 
Carper. The RISE tax incentives will create jobs, increase 
productivity, conserve energy and expand America's recycling 
infrastructure.
  I offer this bill to capture the significant energy savings available 
through greater recycling. For example, recycling aluminum cans saves 
95 percent of the energy required to make the same amount of aluminum 
from its virgin source. The amount of lost energy from throwing away 
aluminum and steel cans, plastic PET and glass containers, newsprint 
and corrugated packaging was equivalent to the annual output of 15 
medium sized coal powerplants. Increasing the recycling rate of these 
commodities by 10 percent would save enough energy annually to heat 
74,350 million American homes, provide the required electricity for 2.5 
million Americans, and save about $771 million in avoid costs for 
barrels of crude oil. As a result, recycling should be an integral 
component of our nation's energy efficiency strategy.
  The RISE Act would also help create quality jobs. Due to the 
diminishing quantity and quality of available recyclable materials, 
many companies currently are not able to obtain the volume of quality 
recycled feedstock needed to meet demand. This new economic challenge 
makes it even harder for recycled products to compete in the 
marketplace. In some cases, recyclers have been forced to shut down 
their operations in the United States and relocate to other countries 
due in part to insufficient or poor quality recycled feedstocks. This 
is particularly unfortunate as, on a per-ton basis, sorting and 
processing recyclables are estimated to sustain 10 times more jobs than 
landfilling or incineration.
  A national investment in our recycling infrastructure is necessary to 
reverse the stagnant or declining recycling rate of many consumer 
commodities, including aluminum, glass and plastic. For example, 55 
billion aluminum cans were wasted by not being recycled in 2004, which 
represents approximately $1 billion of aluminum lost to industry. The 
recycling rate of paper is estimated to be roughly 51 percent, glass 
containers 35 percent, and PET plastic bottles less than 20 percent.
  The RISE Act will save energy and improve the quantity and quality of 
recycled materials by allowing companies to claim either a 15-percent 
tax credit or a 50 percent accelerated depreciation deduction for the 
purchase of machinery and other equipment used exclusively to collect, 
distribute or recyclable material. Recyclable material is defined 
broadly to capture a wide variety of commodities, including plastic, 
scrap textiles, scrap rubber, scrap packaging, recovered fiber, scrap 
ferrous and nonferrous metals, or electronic waste generated by an 
individual or business. It does not include buildings, real estate or 
rolling stock used to transport reuse and recyclable materials.
  The RISE Act aims to reverse the trend in recycling rates and 
resulting energy loss by incentivizing greater collection, distribution 
and recycling of quality recyclable materials. The bill will address 
quality concerns by reducing the barriers hindering investment in 
optical sorting and other state-of-the-art equipment needed at material 
recovery and manufacturing facilities. It will make innovative 
technology more affordable, such as reversible vending machines that 
collect and process empty containers. An earlier

[[Page 14388]]

version of RISE was incorporated as section 1545 of the Senate Energy 
Policy Act of 2005, but did not survive the conference committee.
  The Rise Act will amend section 142 of the Internal Revenue Code of 
1986 by redefining ``solid waste facilities'' to ensure that recycling 
facilities are eligible for tax-exempt bond financing under this 
section. This latter provision was created to resolve an ongoing glitch 
in the law that prevents these facilities from being eligible for tax-
exempt financing.
  The following organizations support the RISE Act: American Beverage 
Association, American Forest & Paper Association, Association of 
Postconsumer Plastic Recyclers, Ball Corporation, Carolina Recycling 
Association, Glass Packaging Institute, Institute of Scrap Recycling 
Industries, Inc., ISRI, National Association for PET Container 
Resources, NAPCOR, National Recycling Coalition, National Solid Wastes 
Management Association, Solid Waste Association of North America, Steel 
Recycling Institute, US Conference of Mayors/Municipal Waste Management 
Association, Waste Technology Equipment Association, WASTEC, Envision 
Plastics, EvCo Research, LLC, Florikan ESA Corporation, L B. Schmidt 
and Associates, Mid America Recycling Companies, MSS, Inc., Novelis, 
Inc., formerly Alcan, NRT, Inc., O-I, formerly Owens-Illinois, Orwak 
Group, Reynolds Recycling, Saint-Gobain Containers, Inc., Strategic 
Materials, Inc., The Coca Cola Company, TiTech Visionsort, Tomra, 
UltrePET, United Resource Recovery Corporation, Van Dyke Bailer Corp/
Lubo USA, wTe Corporation, Paper Recycling Coalition, and Yemm and 
Hart, Ltd. Mr. President, most of these organizations have submitted a 
joint letter in support of the RISE Act, and I will ask to have the 
letter printed in the Record following the statement.
  Reducing the barriers to recycling also serves a number of 
environmental goals, including lessening the need for new landfills, 
preventing emissions of many air and water pollutants, reducing 
greenhouse gas emissions, and stimulating the development of green 
technology. But most importantly, recycling helps preserve resources of 
our children's future.
  For these reasons, I urge my colleagues to support this bill.
  Mr. President, I ask unanimous consent to have the letter I referred 
to be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 3654

       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 ``Recycling Investment Saves 
     Energy'' or the ``RISE Act''.

     SEC. 2. FINDINGS.

       The Senate finds the following:
       (1) Recycling means business in the United States, with 
     more than 56,000 reuse and recycling establishments that 
     employ over 1.1 million people, generating an annual payroll 
     of nearly $37 billion, and grossing over $236 billion in 
     annual revenues. On a per-ton basis, sorting and processing 
     recyclables alone sustain 10 times more jobs than landfilling 
     or incineration.
       (2) By reducing the need to extract and process virgin raw 
     materials into manufacturing feedstock, reuse and recycling 
     helps achieve significant energy savings. For example:
       (A) Taken together, the amount of energy wasted from not 
     recycling aluminum and steel cans, paper, printed materials, 
     glass, and plastic equals the annual output of 15 medium 
     sized power plants.
       (B) The reuse of 500 steel drums per week yields 6 trillion 
     Btu's per year, which is enough energy savings to power a 
     city the size of Colorado Springs, Colorado, for 1 year.
       (3) Unfortunately, the United States recycling rate of many 
     consumer commodities, including aluminum, glass, and plastic, 
     are stagnant or declining, and businesses that rely on 
     recycled feedstock are finding it difficult to obtain the 
     quantity and quality of recycled materials needed. 
     Increasingly, United States manufacturing facilities that 
     rely on recycled feedstock are closing or forced to re-tool 
     to use virgin materials.
       (4) The environmental impacts from reuse and recycling are 
     significant. Increased reuse and recycling would produce 
     significant environmental benefits, such as cleaner air, 
     safer water, and reduced production costs. For example:
       (A) Between 2 and 5 percent of the waste stream is 
     reusable. Reuse prevents waste creation and adverse impacts 
     from disposal.
       (B) On a per-ton basis, recycling of: office paper prevents 
     60 pounds of air pollutants from being released, saves 7,000 
     gallons of water, and 3.3 cubic yards of landfill space; 
     aluminum saves 10 cubic yards of landfill space; plastic 
     saves 30 cubic yards of landfill space; glass prevents 7.5 
     pounds of air pollutants from being released and saves 2 
     cubic yards of landfill space; and steel saves 4 cubic yards 
     of landfill space.
       (5) A national investment in the reuse and recycling 
     industries is needed to preserve and expand America's reuse 
     and recycling infrastructure.

     SEC. 3. CREDIT FOR REUSE AND RECYCLING PROPERTY.

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

     ``SEC. 45N. CREDIT FOR QUALIFIED REUSE AND RECYCLING 
                   PROPERTY.

       ``(a) Allowance of Credit.--For purposes of section 38, the 
     qualified reuse and recycling property credit determined 
     under this section for the taxable year is an amount equal to 
     15 percent of the amount paid or incurred during the taxable 
     year for the cost of qualified reuse and recycling property 
     placed in service or leased by the taxpayer.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Qualified reuse and recycling property.--
       ``(A) In general.--The term `qualified reuse and recycling 
     property' means any machinery and equipment (not including 
     buildings or real estate), along with all appurtenances 
     thereto, including software necessary to operate such 
     equipment, which is used exclusively to collect, distribute, 
     or recycle qualified reuse and recyclable materials.
       ``(B) Exclusion.--Such term does not include rolling stock 
     or other equipment used to transport reuse and recyclable 
     materials.
       ``(2) Qualified reuse and recyclable materials.--
       ``(A) In general.--The term `qualified reuse and recyclable 
     materials' means scrap plastic, scrap textiles, scrap rubber, 
     scrap packaging, recovered fiber, scrap ferrous and 
     nonferrous metals, or electronic waste generated by an 
     individual or business.
       ``(B) Electronic waste.--For purposes of subparagraph (A), 
     the term `electronic waste' means--
       ``(i) any cathode ray tube, flat panel screen, or similar 
     video display device with a screen size greater than 4 inches 
     measured diagonally, or
       ``(ii) any central processing unit.
       ``(3) Recycling or recycle.--The term `recycling' or 
     `recycle' means that process (including sorting) by which 
     worn or superfluous materials are manufactured or processed 
     into specification grade commodities that are suitable for 
     use as a replacement or substitute for virgin materials in 
     manufacturing tangible consumer and commercial products, 
     including packaging.
       ``(c) Amount Paid or Incurred.--For purposes of this 
     section--
       ``(1) In general.--The term `amount paid or incurred' 
     includes installation costs.
       ``(2) Lease payments.--In the case of the leasing of 
     qualified reuse and recycling property by the taxpayer, the 
     term `amount paid or incurred' means the amount of the lease 
     payments due to be paid during the term of the lease 
     occurring during the taxable year other than such portion of 
     such lease payments attributable to interest, insurance, and 
     taxes.
       ``(3) Grants, etc. excluded.--The term `amount paid or 
     incurred' shall not include any amount to the extent such 
     amount is funded by any grant, contract, or otherwise by 
     another person (or any governmental entity).
       ``(d) Election to Have Section Not Apply.--A taxpayer may 
     elect for any taxable year to have this section not apply 
     with respect to any qualified recycling property specified by 
     the taxpayer.
       ``(e) Other Tax Deductions and Credits Available for 
     Portion of Cost Not Taken Into Account for Credit Under This 
     Section.--No deduction or other credit under this chapter 
     shall be allowed with respect to the amount of the credit 
     determined under this section.
       ``(f) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section for any amount paid or 
     incurred with respect to any property, the increase in the 
     basis of such property which would (but for this subsection) 
     result from such expenditure shall be reduced by the amount 
     of the credit so allowed.''.
       (b) Conforming Amendments.--
       (1) Credit made part of general business credit.--
     Subsection (b) of section 38 of the Internal Revenue Code of 
     1986 is amended by striking ``and'' at the end of paragraph 
     (29), by striking the period at the end of paragraph (30) and 
     inserting ``, plus'', and by adding at the end the following 
     new paragraph:
       ``(31) the qualified reuse and recycling property credit 
     determined under section 45N(a).''.
       (2) Subsection (a) of section 1016 of such Code is amended 
     by striking ``and'' at the

[[Page 14389]]

     end of paragraph (36), by striking the period at the end of 
     paragraph (37) and inserting ``; and'', and by adding at the 
     end the following new paragraph:
       ``(38) to the extent provided in section 45N(f), in the 
     case of amounts with respect to which a credit has been 
     allowed under section 45N.''.
       (3) Section 6501(m) of such Code is amended by inserting 
     ``45N(d),'' after ``45C(d)(4),''.
       (4) The table of sections for subpart D of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 45M the 
     following new item:

``Sec. 45N. Credit for qualified reuse and recycling property.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

     SEC. 4. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN REUSE AND 
                   RECYCLING PROPERTY.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (relating to accelerated cost recovery system) is 
     amended by adding at the end the following new subsection:
       ``(l) Special Allowance for Certain Reuse and Recycling 
     Property.--
       ``(1) In general.--In the case of any qualified reuse and 
     recycling property--
       ``(A) the depreciation deduction provided by section 167(a) 
     for the taxable year in which such property is placed in 
     service shall include an allowance equal to 50 percent of the 
     adjusted basis of the qualified reuse and recycling property, 
     and
       ``(B) the adjusted basis of the qualified reuse and 
     recycling property shall be reduced by the amount of such 
     deduction before computing the amount otherwise allowable as 
     a depreciation deduction under this chapter for such taxable 
     year and any subsequent taxable year.
       ``(2) Qualified reuse and recycling property.--For purposes 
     of this subsection--
       ``(A) In general.--The term `qualified reuse and recycling 
     property' means any qualified reuse and recycling property 
     (as defined in section 45N(b)(1))--
       ``(i) to which this section applies,
       ``(ii) which has a useful life of at least 5 years,
       ``(iii) the original use of which commences with the 
     taxpayer after December 31, 2005,
       ``(iv) which is--

       ``(I) acquired by purchase (as defined in section 
     179(d)(2)) by an eligible taxpayer after December 31, 2005, 
     but only if no written binding contract for the acquisition 
     was in effect before December 31, 2005, or
       ``(II) acquired by the eligible taxpayer pursuant to a 
     written binding contract which was entered into after 
     December 31, 2005.

       ``(B) Exceptions.--
       ``(i) Alternative depreciation property.--The term 
     `qualified property' shall not include any property to which 
     the alternative depreciation system under subsection (g) 
     applies, determined without regard to paragraph (7) of 
     subsection (g) (relating to election to have system apply).
       ``(ii) Election out.--If a taxpayer makes an election under 
     this clause with respect to any class of property for any 
     taxable year, this subsection shall not apply to all property 
     in such class placed in service during such taxable year.
       ``(C) Special rules.--
       ``(i) Self-constructed property.--In the case of an 
     eligible taxpayer manufacturing, constructing, or producing 
     property for the eligible taxpayer's own use, the 
     requirements of clause (iv) of subparagraph (A) shall be 
     treated as met if the eligible taxpayer begins manufacturing, 
     constructing, or producing the property after December 31, 
     2005.
       ``(ii) Sale-leasebacks.--For purposes of subparagraph 
     (A)(iii), if property--

       ``(I) is originally placed in service after December 31, 
     2005, by a person, and
       ``(II) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in subclause (II).
       ``(D) Deduction allowed in computing minimum tax.--For 
     purposes of determining alternative minimum taxable income 
     under section 55, the deduction under subsection (a) for 
     qualified reuse and recycling property shall be determined 
     under this section without regard to any adjustment under 
     section 56.
       ``(3) Eligible taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' means, with respect to any 
     qualified reuse and recycling property, any taxpayer which 
     elects not to have section 45N apply with respect to such 
     property.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2005.

     SEC. 5. TAX-EXEMPT BOND FINANCING OF RECYCLING FACILITIES.

       (a) In General.--Section 142 of the Internal Revenue Code 
     of 1986 (defining exempt facility bond) is amended by adding 
     at the end the following new subsection:
       ``(n) Solid Waste Disposal Facilities.--
       ``(1) In general.--For purposes of subsection (a)(6) only, 
     the term `solid waste disposal facilities' means any facility 
     used to perform a solid waste disposal function.
       ``(2) Solid waste disposal function.--
       ``(A) In general.--For purposes of this subsection only, 
     the term `solid waste disposal function' means the 
     collection, separation, sorting, storage, treatment, 
     disassembly, handling, or processing of solid waste in any 
     manner designed to dispose of the solid waste, including 
     processing the solid waste into a useful energy source or 
     product.
       ``(B) Extent of function.--For purposes of this subsection 
     only, the solid waste disposal function ends at the later 
     of--
       ``(i) the point of final disposal of the solid waste,
       ``(ii) immediately after the solid waste is incinerated to 
     produce energy, or
       ``(iii) the point at which the solid waste has been 
     converted into a material or product that can be sold in the 
     same manner as comparable material or product produced from 
     virgin material.
       ``(C) Functionally related and subordinate facilities.--For 
     purposes of this subsection only, in the case of a facility 
     used to perform both a solid waste disposal function and 
     another function--
       ``(i) the costs of the facility allocable to the solid 
     waste disposal function are determined using any reasonable 
     method based upon facts and circumstances, and
       ``(ii) if during the period that bonds issued as part of an 
     issue described in subsection (a)(6) are outstanding with 
     respect to any facility at least 65 percent of the materials 
     processed in such facility are solid waste materials as 
     measured by weight or volume, then all of the costs of the 
     property used to perform such process are allocable to a 
     solid waste disposal function.
       ``(3) Solid waste.--For purposes of this subsection only--
       ``(A) In general.--The term `solid waste' means garbage, 
     refuse, or discarded solid materials, including waste 
     materials resulting from industrial, commercial, 
     agricultural, or community activities.
       ``(B) Garbage, refuse or discarded solid materials.--For 
     purposes of subparagraph (A), the term `garbage, refuse, or 
     discarded solid materials' means materials that are useless, 
     unused, unwanted, or discarded.
       ``(C) Exclusion.--The term `solid waste' does not include 
     materials in domestic sewage, pollutants in industrial or 
     other water resources, or other liquid or gaseous waste 
     materials.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued before, on, or after the date of 
     the enactment of this Act.
                                  ____

     Hon. Jim Jeffords,
     U.S. Senate,
     Washington, DC.
       Dear Senator Jeffords: On behalf of the undersigned 
     recycling industry organizations, companies and other groups 
     that support recycling efforts, we write to support the 
     ``Recycling Investment Saves Energy'' (RISE) bill. An earlier 
     version of RISE was incorporated as Section 1545 of the 
     Senate Energy Bill last year, but did not survive conference 
     committee. RISE would save energy and improve the quantity 
     and quality of recycled materials by allowing companies to 
     claim either a tax credit or accelerated depreciation for the 
     purchase of equipment used to collect, distribute or recycle 
     a variety of commodities.
       Your support will be greatly appreciated by businesses that 
     are facing serious problems trying to secure a steady stream 
     of quality recycled materials including glass, paper, 
     plastic, steel and aluminum. This provision will create jobs, 
     increase productivity and conserve energy by encouraging 
     companies to invest in state-of-the-art recycling 
     infrastructure. With recycling levels for individual 
     materials either stalled or declining, we need to act now to 
     improve usable recovered material and to enhance the quality 
     of materials that are collected through curbside and other 
     recycling programs.
       Every industry that uses recycled materials as a feedstock 
     realizes significant energy savings compared to production 
     using virgin materials. By providing tax incentives to 
     increase the quality and quantity of usable recycled 
     materials available, the RISE provision will enable these 
     industry segments to significantly reduce energy consumption.
       Recycling associations and industries support this bill.
           Sincerely,
         American Beverage Association; American Forest & Paper 
           Association; Association of Postconsumer Plastic 
           Recyclers; Carolina Recycling Association; Glass 
           Packaging Institute; National Association for PET 
           Container Resources (NAPCOR); National Recycling 
           Coalition; National Solid Wastes Management 
           Association; Paper Recycling Coalition; Solid Waste 
           Association of North America; Steel Recycling 
           Institute; U.S. Conference of Mayors/Municipal Waste 
           Management Association; Waste Technology Equipment 
           Association (WASTEC); Ball Corporation; Envision 
           Plastics; EvCo Research, LLC; Florikan ESA Corporation; 
           L B. Schmidt and Associates; Mid America Recycling 
           Companies; MSS, Inc; Novelis, Inc (formerly Alcan); 
           NRT,

[[Page 14390]]

           Inc.; O-I (formerly Owens-Illinois); Orwak Group; 
           Reynolds Recycling; Saint-Gobain Containers, Inc; 
           Strategic Materials, Inc; The Coca Cola Company; TiTech 
           Visionsort; Tomra; UltrePET; United Resource Recovery 
           Corporation; Van Dyke Bailer Corp/Lubo USA; wTe 
           Corporation; Yemm and Hart, Ltd.
                                 ______
                                 
      By Mr. CRAIG (for himself and Mr. Coburn):
  S. 3655. A bill to amend the Internal Revenue Code of 1986 to allow 
individuals eligible for veterans health benefits to contribute to 
health savings accounts; to the Committee on Finance.
  Mr. CRAIG. Mr. President, I seek recognition today to introduce 
legislation to allow veterans who use the VA health care system to 
establish health savings accounts, HSAs. This legislation will increase 
health insurance options for veterans and their families, provide 
future options in the choice of health care providers for veterans, and 
could ultimately allow veterans who are forced to rely on the VA health 
care system today to choose to receive care from the private health 
care system in the future.
  As my colleagues are aware, current law allows individuals who 
purchase a high deductible health insurance plan to contribute funds, 
on behalf of themselves and their family, to a health savings account. 
Funds are contributed to the HSA on a pretax basis and then can be 
withdrawn for qualified health care expenses without any tax 
consequence.
  In order for a person's HSA to be in ``good standing'' with the IRS, 
the individual cannot carry health insurance that provides coverage for 
any health services prior to reaching the deductible amount of the high 
deductible plan. Of course, like many government programs, there are 
exceptions to the rules for certain circumstance. Most notably, a 
person does not jeopardize an HSA by purchasing long-term care or 
accident insurance nor is the receipt of workman's compensation 
coverage disqualified from contributing to an account. Yet the IRS has 
advised the health insurance industry that VA health care would count 
as a health insurance plan that provides coverage for health care 
services prior to reaching the high deductible limit. Therefore, 
veterans who use VA are not eligible to establish health savings 
accounts.
  At the time this issue was brought to my attention, the argument was 
limited to the narrow issue of service-connected veterans being denied 
an opportunity to avail themselves of the tax advantages of an HSA 
simply because they suffered an injury related to their service in the 
military and the government was providing care for that injury. Of 
course, that seemed outrageous to me. Like any employer, the Government 
has an obligation to provide treatment for injuries sustained while 
military personal are serving our country. And if workman's comp is a 
current exemption, why not VA care?
  So, I set out to draft a bill to allow service-connected veterans who 
use VA for service-connected treatment to establish HSAs. But, the more 
I considered the arguments for allowing those who use VA for service-
connected conditions to have HSAs, the more I realized that the 
arguments applied just as strongly to all VA patients. I would like to 
take a moment to explain my arguments.
  First, the current law unfairly affects families of veterans when the 
veteran is the sole provider of income for the family. As everyone 
knows, VA is not a family health care provider except in the extreme 
case of a permanently disabled service-connected veteran. Therefore if 
a veteran--even a service-connected veteran--uses the VA health care 
system, current law does not even allow that veteran to contribute 
money on behalf of his family to an HSA. What good does that do? Why 
would we prohibit a veteran from providing health coverage to his or 
her family? In my opinion, that does neither the veteran nor his or her 
family any good. It is simply a well-intention policy when applied to 
HSAs, with a harmful, unintended consequence as applied to veterans.
  Second, under current law VA is permitted to bill insurance carriers 
for the treatment of nonservice connected conditions. Further, many 
veterans are required to pay copayments to VA in order to receive that 
same care. So, veterans have out-of-pocket medical expenses and VA can 
bill their insurance provider. Yet we have a policy that disallows the 
establishment of a tax free account to pay for those medical expenses 
and--even worse--provides a disincentive for the veterans to buy an 
insurance policy that VA could one day bill. Again, I understand the 
genesis of the policy. However, it is having unintended consequences 
when applied to our veterans.
  Finally, while it is true that more and more veterans are choosing to 
use VA as their provider of choice as a result of the excellent care 
provided by the system, there are still hundreds of thousands of 
veterans who use VA because they are financially unable to afford the 
private health system. I am proud that this Nation stands by those 
veterans who cannot provide for their own care in the private system. 
However, I do not think we should statutorily preclude them from even 
trying to take control of their own health care finances.
  What harm would come if a veteran, who uses VA today because he or 
she has no other option, was suddenly allowed to purchase a low 
premium, high deductible plan and then begin to contribute to a savings 
account that he or she would now own. I say no harm at all. The only 
thing that could come of this is that the veteran may one day say to 
his government: I was there for you when you needed me. You were there 
for me when I needed you. Now, I no longer need you.
  Again, I am not saying that veterans should feel as though I am 
trying to get them to leave the VA system. I am not. But, I certainly 
do not want to stop a veteran from choosing to buy insurance, start 
saving in an HSA, and one day leaving the system. I think one of the 
things government can do for its citizens is provide the tools and 
assistance that will allow Americans to provide for themselves. That is 
what this legislation is about.
  I am confident that many of you will agree with the premise that it 
is a basic issue of fairness to support allowing service-connected 
veterans to establish HSAs. But, I also hope that I have demonstrated 
here today that it is sound public policy to extend the HSA option to 
all veterans who use VA's health care system.
  I urge my colleagues to be cosponsors of this legislation and I urge 
passage of the bill as soon as possible.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Ms. Snowe:)
  S. 3656. A bill to provide additional assistance to combat HIV/AIDS 
among young people, and for other purposes; to the Committee on Foreign 
Relations.
  Mrs. FEINSTEIN. Mr. President, I rise today with Senator Snowe to 
introduce legislation to strengthen our international HIV prevention 
efforts for youth and empower the people on the ground who are fighting 
this disease to design the most effective and appropriate HIV 
prevention program.
  Our legislation does three things. First, it expresses the sense of 
the Senate that sexually active youth who live in a country where HIV 
infection is spreading through the general population should be 
considered at high risk of contracting HIV and provided with 
information on the complete range of tools to prevent the spread of 
HIV.
  To date, the Office of the Global AIDS Coordinator has focused 
prevention programs for youth on abstinence only and ignored other 
prevention techniques such as the use of condoms.
  Second, it defines ``abstinence-until-marriage'' programs as those 
programs that place the highest, rather than exclusive, priority on 
encouraging individuals who have not yet married to abstain from sexual 
activity.
  And finally, it reserves at least one-third of funds for prevention 
of the sexual transmission of HIV--rather than one-third of all 
prevention programs--for abstinence-until marriage programs. This 
recognizes that HIV prevention includes many types of activities and 
those that target the sexual transmission of HIV/AIDS, such as 
abstinence-until-marriage programs, are only a subset.

[[Page 14391]]

  In 2003, I was proud to join my colleagues in passing the United 
States Leadership Against HIV/AIDS, Tuberculosis and Malaria Act of 
2003, a historic piece of legislation that expressed our resolve to see 
the United States take a leadership role in the fight against the 
global HIV/AIDS pandemic.
  The bill recognized that prevention--along with care and treatment--
is an essential component of that fight and demands a multipronged 
approach. It endorsed the ``ABC'' model for prevention of the sexual 
transmission of HIV: Abstain, Be Faithful, use Condoms.
  That bill also contained a provision that mandated that at least one-
third of global HIV/AIDS prevention funds be set aside for 
``abstinence-until-marriage programs.''
  Three years later, we still face an uphill battle against the HIV/
AIDS pandemic. Worldwide, 40 million people are infected with HIV. Each 
day, approximately 13,400 people are newly infected with HIV. In 2005, 
there were 5 million new HIV infections around the world, 3.2 million 
in Sub-Saharan Africa alone. Sub-Saharan Africa is home to almost two-
thirds of the estimated 40 million people currently living with HIV.
  Across sub-Saharan Africa, the prevalence rate for the general 
population is 8 percent; 2.4 million adults and children died of AIDS 
in 2005.
  Despite these devastating numbers, according to UNAIDS, less than one 
in five people at risk for infection of HIV have access to basic 
prevention services. Studies have shown that two-thirds of new HIV 
infections could be averted with effective prevention programs.
  Clearly, we still have a long ways to go to rein in this disease.
  During the debate on the global HIV/AIDS bill, I expressed concern 
that we were placing politics over science by requiring that at least 
one-third of prevention funds go to ``abstinence only'' programs.
  I argued that such an artificial earmark--which, by the way, was not 
based on any scientific study or conclusive evidence--would tie the 
hands of HIV/AIDS workers and doctors on the ground and severely 
inhibit the ability of the administration to fund the most effective 
HIV prevention programs.
  It would mean less money for funds to prevent mother-to-child 
transmission; less money to promote a comprehensive prevention message 
to high risk groups such as sexually active youth; and fewer funds to 
protect the blood supply.
  Unfortunately, the evidence clearly shows that the one-third earmark 
has had a negative impact on our prevention efforts and inhibited the 
ability of local communities to design a multipronged HIV prevention 
program that works best for them.
  Last month, the Government Accountability Office, GAO, issued a 
report that found ``significant challenges'' associated with meeting 
the abstinence-until-marriage programs. The report concluded that:
  The 33 percent abstinence spending requirement is squeezing out 
available funding for other key HIV prevention programs such as mother-
to-child transmission and maintaining a healthy blood supply. Country 
teams that are not exempted from the one-third earmark have to spend 
more than 33 percent of prevention funds on abstinence-until-marriage 
activities, sometimes at the expense of other programs. The spending 
requirement limited or reduced funding for programs directed to high-
risk groups, such as sexually active youth and; the majority of country 
teams on the ground reported that meeting the spending requirement 
``challenges their ability to develop interventions that are responsive 
to local epidemiology and social norms.''
  Clearly, we are placing constraints on our ability to protect high-
risk populations around the world from HIV transmission and fund the 
wide range of prevention programs, such as mother-to-child 
transmission.
  Our bill seeks to address the problems highlighted in the GAO report 
and provide local communities the necessary flexibility to achieve the 
goal we all share: stopping the spread of HIV, especially among young 
people.
  Let me be clear: our bill does not strike the 33 percent earmark for 
``abstinence-until-marriage'' programs.
  In fact, our legislation is pro-abstinence. It maintains abstinence 
as a critical part our prevention efforts and places no limits on 
programs that lead to this result. It even allows the administration to 
spend more than one third of funds for the prevention of HIV on 
``abstinence-until-marriage'' programs if the administration decides 
that is the best use of those funds.
  Simply put, our bill balances congressional priorities with public 
health needs. Under our legislation, country teams can take into 
account country needs including cultural differences, epidemiology, 
population age groups and the stage of the epidemic in designing the 
most effective prevention program.
  One size does not fit all. A prevention program in one country may 
look a lot different than a prevention program in another country.
  A May 2003 report from the Bill and Melinda Gates Foundation and 
Henry J. Kaiser Foundation highlights that proven prevention programs 
include: behavior change programs, including delay in the initiation of 
sexual activity, faithfulness and correct and consistent condom use; 
testing and treatment for sexually transmitted diseases; promoting 
voluntary counseling and testing; harm reduction programs for IV drug 
users; preventing the transmission of HIV from mother to child; 
increasing blood safety; empowering women and girls; controlling 
infection in health care settings, and; devising programs geared 
towards people living with HIV.
  For example, studies have shown that combining drugs with counseling 
and instruction on use of such drugs reduces mother-to-child 
transmission by 50 percent.
  Such cost effective programs are not related to abstinence and should 
not be constrained by the 33 percent earmark on funds for prevention.
  I understand the importance of teaching abstinence. It is and will 
remain a key part of our strategy in preventing the spread of HIV.
  But let us listen to the words of someone with first hand experience 
about the challenges sub-Saharan African countries face in combating 
HIV/AIDS and the constraints the ``abstinence-until-marriage'' earmark 
places on those efforts.
  In an August 19, 2005 op-ed in the New York Times, Babatunde 
Osotimehin, chairman of the National Action Committee on AIDS in 
Nigeria, wrote:

       Abstinence is one critical prevention strategy, but it 
     cannot be the only one. Focusing on abstinence assumes young 
     people can choose whether to have sex. For adolescent girls 
     in Nigeria and in many other countries, this is an inaccurate 
     assumption. Many girls fall prey to sexual violence and 
     coercion ..When dealing with AIDS, we must address the 
     realities and use a multipronged approach to improving 
     education and health systems, one that can reach all of our 
     people.

  He concludes:

       National governments must have the freedom to employ the 
     very best strategies at our disposal to help our people.

  I could not agree more.
  If we want to help the girls of Nigeria and the youth of sub-Saharan 
Africa, we cannot limit the information they receive about keeping them 
safe from acquiring HIV.
  Mr. President, I have been heartened to witness Republicans and 
Democrats coming together to support a robust U.S. assistance package 
to fight the HIV/AIDS pandemic. We all share the same goal of the 
President's Emergency Plan for AIDS Relief to prevent 7 million new HIV 
infections by 2010.
  This bill is about helping us achieve that goal. When we put our 
faith in the people on the front lines of this fight and allow them to 
use all the tools and strategies at their disposal, we are one step 
closer to making that goal a reality.
  We do not have time to lose. I urge my colleagues to support our 
legislation and support a pro-abstinence, multi-pronged approach to 
preventing the spread of HIV.
  I ask unanimous consent that the full text of the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

[[Page 14392]]



                                S. 3656

       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 ``HIV Prevention for Youth 
     Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The President's Emergency Plan for AIDS Relief (in this 
     Act referred to as ``PEPFAR'') is an unprecedented effort to 
     combat the global AIDS epidemic, with $9,000,000,000 targeted 
     for initiatives in 15 focus countries.
       (2) The PEPFAR prevention goal is to avert 7,000,000 HIV 
     infections in the 15 focus countries--most in sub-Saharan 
     Africa where heterosexual intercourse is by far the 
     predominant mode of HIV transmission.
       (3) The PEPFAR strategy for prevention of sexual 
     transmission of HIV is shaped by 3 elements: the ABC model, 
     defined as ``Abstain, Be faithful, use Condoms'', the 
     promotion of ``abstinence-until-marriage'', and deference to 
     local prevention needs.
       (4) The United States Leadership Against HIV/AIDS, 
     Tuberculosis, and Malaria Act of 2003 requires that at least 
     one-third of all prevention funds be reserved for abstinence-
     until-marriage programs. In implementing this requirement, 
     the U.S. Global AIDS Coordinator has required that 50 percent 
     of prevention funding be dedicated to sexual transmission 
     prevention activities. This requirement severely limits 
     countries from employing strategies for the prevention of 
     sexual transmission other than abstinence, because the other 
     sexual transmission prevention programs under PEPFAR (such as 
     the purchase of condoms and management of sexually 
     transmitted infections) cannot exceed one-sixth of the total 
     prevention funds.
       (5) The Government Accountability Office (GAO) issued a 
     report in April, 2006, ``Spending Requirement Presents 
     Challenges For Allocating Funding under the President's 
     Emergency Plan for AIDS Relief'', that found ``significant 
     challenges'' associated with meeting the earmark for 
     abstinence-until-marriage programs.
       (6) GAO found that a majority of country teams report that 
     fulfilling the requirement presents challenges to their 
     ability to respond to local epidemiology and cultural and 
     social norms.
       (7) GAO found that, although some country teams may be 
     exempted from the abstinence-until-marriage spending 
     requirement, country teams that are not exempted have to 
     spend more than the 33 percent of prevention funds on 
     abstinence-until-marriage activities--sometimes at the 
     expense of other programs.
       (8) Indeed, according to GAO, the proportion of HIV 
     prevention funds dedicated to ``other prevention'' activities 
     (i.e. the purchase and promotion of condoms, management of 
     sexually transmitted infections other than HIV, and messages 
     or programs to reduce injection drug use) declined from 23 
     percent in fiscal year 2005 to 18 percent in fiscal year 2006 
     for country teams that did not receive exemptions.
       (9) GAO found that, as a result of the abstinence-until-
     marriage spending requirement, some countries have had to 
     reduce planned funding for Prevention of Mother-to-Child 
     Transmission programs, thereby limiting services for pregnant 
     women and their children.
       (10) GAO found that the abstinence-until-marriage spending 
     requirement limited or reduced funding for programs directed 
     to high-risk groups, such as services for married discordant 
     couples, sexually active youth, and commercial sex workers.
       (11) GAO found that the abstinence-until-marriage spending 
     requirement made it difficult for countries to fund medical 
     and blood safety activities.
       (12) GAO found that, because of the abstinence-until-
     marriage spending requirement, some countries would likely 
     have to reduce funding for condom procurement and condom 
     social marketing.
       (13) In addition, GAO found that two-thirds of focus 
     country teams reported that the policy for implementing the 
     ABC model is unclear and open to varying interpretations, 
     causing confusion about which groups may be targeted and 
     whether youth may receive the ABC message.
       (14) GAO found that the ABC guidance does not clearly 
     delineate permissible C activities under the ABC model. 
     Program staff reported that they feel ``constrained'' by 
     restrictions on promoting or marketing condoms to youth. 
     Other country teams reported confusion about whether PEPFAR 
     funds may be used for broad condom social marketing, even to 
     adults in a generalized epidemic.
       (15) Each day, an estimated 13,400 people worldwide are 
     newly infected with HIV.
       (16) Sub-Saharan Africa is home to almost two-thirds of the 
     estimated 40,000,000 people currently living with HIV.
       (17) In many African countries, the epidemic has spread 
     among the general population. The HIV prevalence rate for the 
     general population is 8 percent across sub-Saharan Africa. 
     Among the United States focus countries in sub-Saharan 
     Africa, the HIV prevalence rate ranges from 4 percent in 
     Uganda to 37 percent in Botswana.
       (18) According to the Joint United Nations Programme on 
     HIV/AIDS, young people between the ages of 15 and 24 are 
     ``the most threatened by AIDS'' and ``are at the centre of 
     HIV vulnerability''. Globally, this age group accounts for 
     half of all new HIV cases each year. More than 7,000 young 
     people contract the virus every day.
       (19) Most young people in sub-Saharan Africa have sex 
     before marriage during their adolescent years. In many 
     countries, at least half of all women have sex before age 20 
     and before marriage. Among young men, more than 70 percent 
     have premarital sex before age 20.
       (20) Many adolescents, who are sexually active and not yet 
     married, have inadequate information on how to protect 
     themselves against HIV. Fewer than half of young people in 
     sub-Saharan Africa mention abstinence, monogamy, or condom 
     use as a way of avoiding HIV.
       (21) Young people who have sex are at greater risk of 
     acquiring HIV than adults, partly because of their lack of 
     knowledge. They are apt to change partners frequently, have 
     more than 1 partner in the same time period, or engage in 
     unprotected sex.
       (22) Coercion and sexual violence undercut the ability of 
     young people--women in particular--to prevent HIV and 
     contribute to the vulnerability to infection. In addition, 
     gender inequality makes it much more difficult for young 
     women to negotiate abstinence from sex or to insist that 
     their partners remain faithful or use condoms.
       (23) Marriage does not protect young women from HIV, even 
     when they are faithful to their husbands. In some settings, 
     it appears marriage actually increases a woman's HIV risk. In 
     some African countries, married women aged 15-19 have higher 
     HIV infection levels than nonmarried sexually active women of 
     the same age.
       (24) A recent USAID-funded review found that sex and HIV 
     education programs that encourage abstinence but also discuss 
     the use of condoms do not increase sexual activity as critics 
     of sex education have long alleged. Sex education can help 
     delay the initiation of intercourse, reduce the frequency of 
     sex and the number of sexual partners, and also increase 
     condom use.
       (25) Young people are our greatest hope for changing the 
     course of the AIDS epidemic. According to the World Health 
     Organization, ``Focusing on young people is likely to be the 
     most effective approach to confronting the epidemic, 
     particularly in high prevalence countries.''.

     SEC. 3. SENSE OF CONGRESS.

       It is the sense of Congress that sexually active young 
     people, both unmarried and married, who live in a country 
     where HIV infection is spreading through the general 
     population, rather than being confined to specific 
     populations, such as sex workers and their clients, injecting 
     drug users, and men who have sex with men, and the rate of 
     HIV infection among people between the ages of 15 and 49 
     exceeds 1 percent should be--
       (1) considered at high risk of contracting HIV infection; 
     and
       (2) provided with the knowledge, skill-building programs, 
     and tools to protect themselves from HIV infection, 
     including--
       (A) medically accurate information on public health 
     benefits and failure rates of multiple strategies for 
     eliminating or reducing the risks of contracting HIV and 
     other sexually transmitted infections; and
       (B) information about correct and consistent use of condoms 
     as well as abstinence and the importance of reducing casual 
     sexual partnering.

     SEC. 4. ALLOCATION OF FUNDS.

       Section 403 of the United States Leadership Against HIV/
     AIDS, Tuberculosis, and Malaria Act of 2003 (22 U.S.C. 7673) 
     is amended--
       (1) in subsection (a), in the second sentence, by striking 
     ``HIV/AIDS prevention'' and inserting ``prevention of the 
     sexual transmission of HIV''; and
       (2) by adding at the end the following new subsection:
       ``(c) Abstinence-Until-Marriage Programs.--The term 
     `abstinence-until-marriage programs' means programs that 
     place the highest priority on encouraging individuals who 
     have not yet married to abstain from sexual activity, which 
     if practiced 100 percent correctly and consistently is the 
     only certain way to protect against exposure to HIV and other 
     sexually transmitted infections. The programs include 
     information on the health benefits of delayed sexual debut in 
     reducing the transmission of HIV and may be used to support 
     the wide range of approaches that promote skill-building 
     strategies for practicing abstinence.''.

     SEC. 5. ASSISTANCE TO YOUNG PEOPLE.

       Section 104A(d)(3) of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2151b-2(d)(3)) is amended--
       (1) in subparagraph (A), by inserting ``sexually active 
     young people, both unmarried and married, who live in a 
     country experiencing a generalized HIV epidemic,'' after 
     ``infected with HIV/AIDS,''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) In subparagraph (A), the term `generalized epidemic' 
     means, with respect to a country, that--
       ``(i) HIV infection is spreading through the general 
     population of such country, rather

[[Page 14393]]

     than being confined to specific populations, such as sex 
     workers and their clients, injecting drug users, and men who 
     have sex with men; and
       ``(ii) the rate of HIV infection among people between the 
     ages of 15 and 49 exceeds 1 percent.''.

  Ms. SNOWE. Mr. President, today I join with my dear colleague, 
Senator Feinstein, to address a critical problem--the prevention of HIV 
infection. HIV/AIDS affects people of all walks of life and all corners 
of the globe. Today over 40 million are infected with HIV. In the 
United States today, we have seen HIV infection become a much more 
manageable disease as modern medications have enabled so many to lead 
productive lives. That was certainly not so ten years ago.
  Today the President's Emergency Plan for AIDS Relief, PEPFAR, is 
intended to extend the progress we have made to countries where 
resources are so limited that HIV infection has inevitably led to AIDS 
and death. PEPFAR is intended to prevent 7 million new infections, to 
bring 2 million into treatment, and to provide care for approximately 
10 million with HIV/AIDS.
  Prevention is clearly key to stopping this global epidemic. In Uganda 
we have seen remarkable progress made in preventing infection when a 
combined strategy was employed which promoted abstinence, faithfulness 
in marriage, and condom use--the ``ABC'' approach.
  The Congress saw this strategy could be effective, and many sought to 
ensure that abstinence would be supported in PEPFAR. In fact, a 
statutory requirement mandates that one-third of all PEPFAR prevention 
monies are dedicated to the exclusive use of abstinence and 
faithfulness in marriage to prevent HIV infection.
  It is critical to recognize that abstinence, and even marital 
faithfulness, is not enough to stem the tide of this epidemic. 
Abstinence is not a relevant means of protection if you are, for 
example, a married woman who has an HIV-positive husband. That woman 
needs protection, whether that be a condom, a microbicide, or other 
means to protect herself.
  We also recognize that sexual transmission is certainly not the only 
means of transmitting HIV. We have seen newborns and infants infected 
during delivery and nursing. We have seen failures of hygiene in 
hospital settings cause HIV/AIDS. We have seen HIV spread by drug 
abuse. Each of these must be addressed to reduce the spread the HIV 
virus.
  So we can see that while devoting funds for abstinence programs to 
prevent sexual transmission of HIV may be justified, one certainly 
could harm other efforts with a mandate that one-third of all funds be 
so dedicated.
  That is indeed what has transpired. In April the GAO reported that 
countries are encountering difficulty in meeting their prevention needs 
because they must spend one-third of all their prevention funds on 
abstinence and faithfulness programs. They know they should not ignore 
other prevention strategies. Sometimes they end up spending more than 
needed on prevention as a result, while in other cases essential 
prevention programs are sacrificed.
  Consider the actual impact of such a rigid funding requirement today. 
The Elizabeth Glaser Pediatric AIDS Foundation has reported that in 
Swaziland, nearly half of the women visiting their health clinics are 
HIV-infected. Abstinence education is not germane to these women--nor 
is faithfulness. They wish to avoid infecting their children. So the 
needs of a given country, and even of a local community, must take 
precedence. A one-size-fits-all approach certainly does not work.
  That is why I have joined Senator Feinstein today in introducing 
legislation to address the problems which the GAO described. It does 
this quite simply. First, it acknowledges that abstinence can play a 
role in preventing HIV infection. As such, the bill maintains a 
requirement for abstinence--so that at least one-third of funds used 
for preventing sexual transmission will be dedicated to such programs. 
Yet with two-thirds available for other means, we know countries can 
respond with all appropriate prevention strategies.
  By setting the abstinence funding requirement so it applies only to 
sexual transmission, we will avoid impacting those programs which 
prevent nonsexual transmission of HIV. We cannot forget that these 
other strategies--such as reducing mother-to-child transmission--are 
major needs in some localities.
  Our legislation does a second critical thing. The current statute 
requires exclusivity in funded abstinence programs. If, for example, 
your program desired to dispense condoms, you could not do so, even if 
this was a very minor part of your program's prevention efforts. Now 
consider again the ``discordant'' couple--where only one spouse is 
infected. Would anyone propose that in that marriage, one should not 
help the uninfected partner remain so? Our legislation provides a bit 
of flexibility and allows funded abstinence programs to utilize other 
strategies such as condoms as a minor part of their prevention program. 
That is simply commonsense. It follows what we have seen to work--the 
``ABC'' approach.
  Finally, this legislation does a third thing, and that is to simply 
recognize that sexually active youth who live in a country where HIV 
infection is spreading through the general population should be 
considered at high risk of contracting HIV and provided with 
information on the complete range of tools to prevent the spread of 
HIV. We simply must not lose a generation to AIDS prevention can be so 
effective.
  I thank the President for his leadership in bringing the PEPFAR 
effort forward to help millions realize the promise of a future in 
which HIV will no longer threaten their future. Today, I ask my 
colleagues to join with Senator Feinstein and me in seeing this 
legislation is enacted to ensure that we address the funding problems 
identified by the GAO and effectively employ HIV/AIDS prevention to 
stem this global epidemic.
                                 ______
                                 
      By Mr. SANTORUM:
  S. 3657. A bill to amend the Internal Revenue Code of 1986 to allow 
bonds guaranteed by the Federal Home Loan Banks to be treated as tax-
exempt bonds; to the Committee on Finance.
  Mr. SANTORUM. Mr. President, as a member of the Senate, I have 
devoted much of my time at looking for innovative ways to develop local 
communities in which our families can prosper. It is in that spirit 
that I am introducing legislation today that will help local 
governments across the country meet economic development needs in a 
manner that partners with the private sector and saves local taxpayers 
money. Specifically, I rise today to introduce legislation that would 
allow community bank members of Federal Home Loan Banks to provide 
credit support to tax-exempt municipal development bonds, including 
letters of credit, LOCs.
  Under current law, State and local governments are able to issue tax-
exempt bonds to help fund community and economic projects. To ensure 
that bond investors will be paid in full, Federal Home Loan Banks 
provide a LOC. Unfortunately, the Internal Revenue Service, IRS, has 
classified Federal Home Loan Bank LOCs as a Federal guarantee, a 
decision that triggers the loss of a bond's tax-exempt status. By 
allowing community banks to partner with the Federal Home Loan Banks to 
offer credit support on municipal tax-exempt bonds, local communities 
will be able to reduce the cost to local taxpayers for bonds issued for 
such projects as wastewater treatment facilities, fire stations, 
medical clinics, school buses, long-term care facilities, and 
infrastructure improvements.
  Through their community bank owners, Federal Home Loan Banks have 
offered letters of credit for over 10 years. They can provide letters 
of credit for taxable municipal bonds and tax-exempt housing bonds; 
however, due to a quirk in the law, they cannot do so for tax-exempt 
economic development bonds. My legislation would fix this inconsistency 
in the Tax Code.
  Congress has already determined that credit support issued by other 
government-sponsored enterprises, GSEs, can support nonhousing 
municipal bond issues without losing tax-exempt treatment. The other 
GSEs mentioned in the code--Fannie Mae,

[[Page 14394]]

Freddie Mac, Ginnie Mae, the Farm Credit System, and the Tennessee 
Valley Administration--are privately owned corporations--Federal Home 
Loan Banks--whose obligations are also not guaranteed by the U.S. 
Government. Therefore, granting the Federal Home Loan Bank letters of 
credit the same recognition is simply an equitable proposition.
  This legislation will have a positive economic impact for local 
communities. Allowing Federal Home Loan Banks to provide credit support 
for tax-exempt municipal bonds will increase access to capital for 
municipalities which will spur economic growth and stimulate job 
creation. Municipal bonds raise money for public purposes to build and 
strengthen their communities. This is why groups like the Pennsylvania 
School Board Association supports this provision. They agree that this 
bill can ``potentially help school districts lower the costs for 
expensive school projects, such as bus purchasing and building 
construction.'' Hospitals can gain the resources necessary to utilize 
the most up-to-date technology to provide our children with the best 
health care possible. Municipal bonds help local officials finance 
renovations of sewer systems, roads and highways to improve the quality 
of life for families.
  This legislation is important because it gives local officials an 
additional option as they strive to do more for their communities with 
tighter budget constraints. This bill is supported by the National 
League of Cities, the U.S. Conference of Mayors, the Independent 
Community Bankers of America, the Council of Federal Home Loan Banks, 
the National Association of Homebuilders, and the American Bankers 
Association, the National Association of Higher Educational Facilities 
Authorities, and the National Council of Health Facilities Finance 
Authorities. In my state of Pennsylvania, this effort is supported by 
the Pennsylvania Housing Finance Agency, the Pennsylvania Association 
of Community Bankers, the Pennsylvania Bankers Association, the 
Pennsylvania School Boards Association, and the Pennsylvania League of 
Municipalities. These groups have a strong reputation of supporting 
economic development on the state and local level.
  This bill will simply provide consistency in the Tax Code, but more 
importantly, the benefits to our families and communities will be 
substantial.
  Congress must continue to look for ways to spur economic development 
for America's communities. This bill will help do just that, and I urge 
my colleagues to support this legislation.
                                 ______
                                 
      By Ms. SNOWE (for herself and Mr. Kerry):
  S. 3659. A bill to reauthorize and improve the women's small business 
ownership programs of the Small Business Administration, and for other 
purposes; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, as the ranking member on the Committee on 
Small Business and Entrepreneurship, I rise today to join my colleague 
and chair, Senator Snowe, in introducing the Women's Small Business 
Ownership Programs Act of 2006. This legislation reauthorizes and 
strengthens vital small business programs for women entrepreneurs 
nationwide.
  Small businesses are the driving force behind innovation and national 
economic prosperity in the United States. Employing over 19 million 
workers, while pumping some $2 trillion into the economy, America's 
10.6 million women-owned businesses play an integral role in this 
endeavor. However, despite their critical contributions to our Nation, 
women entrepreneurs still face many obstacles in the business world. 
Without the support and guidance of Women's Business Centers and other 
women small business ownership programs, which provide necessary tools 
to ensure the long term success of women-owned firms, many female 
entrepreneurs would not be able to open their doors and stay in 
business. Given women-owned businesses' contributions to our society, 
it is imperative that we continue to advocate on their behalf, and this 
legislation does just that.
  In recent years, the Small Business Administration, SBA, has seen its 
annual budget repeatedly slashed by the Bush administration--the most 
out of any other Federal agency. The fiscal year 2007 proposal was no 
different. Among the various programmatic cuts within the President's 
fiscal year 2007 budget, technical assistance funding was set at just 
$104 million--down from his proposals of $108 million in fiscal year 
2006 and $111 million in fiscal year 2005. This funding plays a crucial 
role in the development and sustainability of Women's Business Centers 
in states across the country. The SBA provides grants from technical 
assistance funding to help support over 80 Women's Business Centers 
Nationwide. One such example is the Center for Women and Enterprise, 
which has served the greater Boston, Worcester, and Providence areas 
since 1995. In that time, the center has certified over 150 women-owned 
businesses and served as a catalyst in helping entrepreneurs create 
over 15,000 new jobs.
  More centers such as this ought to be in place in areas spanning the 
Nation. That is why I made it a priority to author and pass the Women's 
Business Center Sustainability Act of 1999, to help successful centers 
remain open and viable in the areas they serve. This bill was signed 
into law as a means of safeguarding successful centers with proven 
results by authorizing continued funding for a set time period under 
sustainability grants. The theory behind this bipartisan legislation 
was to continue to allow for new centers, but to also ensure that those 
with a proven track record would continue to be helped. And yet, since 
its enactment, Senator Snowe and I have had to fight each year to 
ensure that there is sustainability funding through the passage of 
numerous temporary extensions and a series of exchanges with the SBA. 
These centers are vital in equipping women entrepreneurs with the tools 
they need to succeed in business, and it is unfortunate that this 
administration has attempted to eliminate sustainability funding since 
President Bush took office. It is high time that all centers 
demonstrating proven results year in and year out receive this 
sustainability funding.
  The legislation I am introducing today, guarantees the future of the 
Women's Business Center Program and bridges it with other SBA-related 
women's initiatives to ensure there exists a unified and cohesive 
mission driving the programs forward for women entrepreneurs across the 
country. In this, the bill not only makes permanent the Women's 
Business Center Sustainability Pilot Program--through the creation of 
3-year ``renewal'' grants for centers with sustainability grants, and 
4-year ``initial'' grants for new centers across the country--but it 
also increases the program's authorization levels. Furthermore, our 
legislation calls for the Office of Women's Business Ownership to make 
all Women's Business Center grants at $150,000 and to work in 
consultation with Women's Business Centers whenever making improvements 
to the program.
  Additionally, this legislation calls for a more streamlined approach 
for the Women's Business Center Program's data collection, grant 
application, and selection criteria, in an effort to ensure a smooth 
transition from sustainability to the newly established program. The 
Women's Small Business Ownership Programs Act of 2006 also contains 
privacy protections for the Women's Business Council, Women's Business 
Centers, and their small business clients.
  The bill's provisions make several minor, yet significant, changes to 
both the Interagency Committee on Women's Business Enterprise, as well 
as the National Women's Business Council--enabling both entities to 
serve as a better resource for not only the administration and 
Congress, but the larger small business community as well. In order to 
increase and strengthen women business owners' representation in the 
Federal Government, the bill reestablishes the Interagency Committee on 
Women's Business Enterprise, and creates a Policy Advisory Group to 
aide the committee's chairperson in the development of policies and 
programs under this act. It also creates

[[Page 14395]]

three subcommittees similar to those created under the National Women's 
Business Council. Additionally, in order to afford the National Women's 
Business Council more flexibility in its use of funds, the bill gives 
it cosponsorship authority, and directs it to act as a clearinghouse 
for historical data.
  I would like to remind my colleagues that similar legislation drew 
wide bipartisan support in the 108th Congress. Despite arriving at a 
bipartisan Women's Business Center compromise on the Senate Small 
Business and Entrepreneurship Committee, the Republican majority failed 
to include this compromise in the last SBA reauthorization package. I 
would like to thank Chair Snowe for her work in addressing the needs of 
America's female entrepreneurs, and for her steadfast support for this 
legislation. She is a true advocate for women-owned small businesses.
  Mr. President, I urge my colleagues on both sides of the aisle to 
support the Women's Small Business Ownership Programs Act of 2006.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3659

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Women's 
     Small Business Ownership Programs Act of 2006''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Office of Women's Business Ownership.
Sec. 3. Women's Business Center Program.
Sec. 4. National Women's Business Council.
Sec. 5. Interagency Committee on Women's Business Enterprise.
Sec. 6. Preserving the independence of the National Women's Business 
              Council.

     SEC. 2. OFFICE OF WOMEN'S BUSINESS OWNERSHIP.

       Section 29(g) of the Small Business Act (15 U.S.C. 656(g)) 
     is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B)(i), by striking ``in the areas'' 
     and all that follows through the end of subclause (I), and 
     inserting the following: ``to address issues concerning 
     management, operations, manufacturing, technology, finance, 
     retail and product sales, international trade, and other 
     disciplines required for--

       ``(I) starting, operating, and growing a small business 
     concern;''; and

       (B) in subparagraph (C), by inserting before the period at 
     the end the following: ``, the National Women's Business 
     Council, and any association of women's business centers''; 
     and
       (2) by adding at the end the following:
       ``(3) Programs and services for women-owned small 
     businesses.--The Assistant Administrator, in consultation 
     with the National Women's Business Council, the Interagency 
     Committee on Women's Business Enterprise, and 1 or more 
     associations of women's business centers, shall develop 
     programs and services for women-owned businesses (as defined 
     in section 408 of the Women's Business Ownership Act of 1988 
     (15 U.S.C. 631 note)) in business areas, which may include--
       ``(A) manufacturing;
       ``(B) technology;
       ``(C) professional services;
       ``(D) retail and product sales;
       ``(E) travel and tourism;
       ``(F) international trade; and
       ``(G) Federal Government contract business development.
       ``(4) Training.--The Administrator shall provide annual 
     programmatic and financial oversight training for women's 
     business ownership representatives and district office 
     technical representatives of the Administration to enable 
     representatives to carry out their responsibilities under 
     this section.
       ``(5) Grant program improvement.--The Administrator shall 
     improve the women's business center grant proposal process 
     and the programmatic and financial oversight process by--
       ``(A) providing notice to the public of each women's 
     business center grant announcement for an initial and renewal 
     grant, not later than 6 months before awarding such grant;
       ``(B) providing notice to grant applicants and recipients 
     of program evaluation criteria, not later than 12 months 
     before any such evaluation;
       ``(C) reducing paperwork and reporting requirements for 
     grant applicants and recipients;
       ``(D) standardizing the oversight and review process of the 
     Administration; and
       ``(E) providing to each women's business center, not later 
     than 30 days after the completion of a site visit at that 
     center, a copy of site visit reports and evaluation reports 
     prepared by district office technical representatives or 
     Administration officials.''.

     SEC. 3. WOMEN'S BUSINESS CENTER PROGRAM.

       (a) Women's Business Center Grants Program.--Section 29 of 
     the Small Business Act (15 U.S.C. 656) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (2), (3), and (4), as 
     paragraphs (3), (4), and (5), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) the term `association of women's business centers' 
     means an organization that represents not fewer than 30 
     percent of the women's business centers that are 
     participating in a program under this section, and whose 
     primary purpose is to represent women's business centers;''; 
     and
       (2) by striking subsections (b) through (f) and inserting 
     the following:
       ``(b) Grants Authorized.--
       ``(1) In general.--
       ``(A) Issuance.--The Administrator may award initial and 
     renewal grants of not more than $150,000 per year, which 
     shall be known as `women's business center grants', to 
     private nonprofit organizations to conduct projects for the 
     benefit of small business concerns owned and controlled by 
     women.
       ``(B) Renewals.--At the end of the initial 4-year grant 
     period, and every 3 years thereafter, the grant recipient may 
     apply to renew the grant in accordance with this subsection 
     and subsection (e)(2).
       ``(C) Equal allocations.--In the event that the 
     Administration has insufficient funds to provide grants of 
     $150,000 for each eligible women's business center, available 
     funds shall be allocated equally to eligible centers, unless 
     any center requests a lower amount than the allocable amount.
       ``(2) Cooperative agreement authority.--
       ``(A) In general.--The Administrator may enter into Federal 
     cooperative agreements with grant recipients under this 
     subsection to perform the services described under paragraph 
     (3), only to the extent and in the amount provided by 
     appropriated funds.
       ``(B) Termination.--
       ``(i) In general.--If any grant recipient under this 
     subsection does not fulfill its grant obligations, after 
     advanced notification, during the period of the grant, the 
     Administrator may terminate the grant.
       ``(ii) Exception.--Notwithstanding a violation by a grant 
     recipient of a grant obligation under this subsection, the 
     Administrator may continue to fund the grant, if the grant 
     recipient is making a good faith effort to comply with such 
     obligation.
       ``(3) Use of funds.--Grants awarded under this subsection 
     may be used to provide training and counseling in the areas 
     of--
       ``(A) pre-business, business startup, and business 
     operations;
       ``(B) financial planning assistance;
       ``(C) procurement assistance;
       ``(D) management assistance;
       ``(E) marketing assistance; and
       ``(F) international trade.
       ``(4) Matching requirement.--
       ``(A) Women's business center grants.--As a condition of 
     receiving financial assistance under this subsection, the 
     grant recipient shall agree to obtain, after its application 
     has been approved and notice of award has been issued, cash 
     contributions from non-Federal sources as follows:
       ``(i) In the first and second years, 1 non-Federal dollar 
     for each 2 Federal dollars provided under the 4-year grant.
       ``(ii) In the third and fourth years, 1 non-Federal dollar 
     for each Federal dollar provided under the 4-year grant.
       ``(iii) In each renewal period, 1 non-Federal dollar for 
     each Federal dollar provided under the 3-year grant.
       ``(B) Form of non-federal contributions.--Not more than \1/
     2\ of the non-Federal sector matching assistance may be in 
     the form of in-kind contributions that are budget line items 
     only, including office equipment and office space.
       ``(C) Failure to obtain non-federal funding.--
       ``(i) Advance disbursements.--If any grant recipient fails 
     to obtain the required non-Federal contribution during any 
     project year, it shall not be eligible for advance 
     disbursements under subparagraph (D) during the remainder of 
     that project year.
       ``(ii) Ability to obtain non-federal funding.--Before 
     approving assistance to a grant recipient that has failed to 
     obtain the required non-Federal contribution for any other 
     projects under this Act, the Administrator shall require the 
     grant recipient to certify that it will be able to obtain the 
     requisite non-Federal funding and enter a written finding 
     setting forth the reasons for making such determination.
       ``(D) Form of federal contributions.--The financial 
     assistance authorized under this subsection may be made by 
     grant or cooperative agreement and may contain such 
     provisions, as necessary, to provide for payments in lump sum 
     or installments, and in advance or by way of reimbursement. 
     The Administrator may disburse not more than 25 percent of 
     the Federal share awarded to a grant recipient for each year 
     after notice of the award has been issued and before the non-
     Federal sector matching funds are obtained.
       ``(5) Application for an initial grant.--Each organization 
     desiring an initial grant

[[Page 14396]]

     under this subsection, shall submit to the Administrator an 
     application that contains--
       ``(A) a certification that the applicant--
       ``(i) is a private nonprofit organization;
       ``(ii) has designated an executive director or program 
     manager, who may be compensated from grant funds or other 
     sources, to manage the center; and
       ``(iii) as a condition of receiving a grant under this 
     subsection, agrees--

       ``(I) to receive a site visit as part of the final 
     selection process;
       ``(II) to undergo an annual programmatic and financial 
     examination; and
       ``(III) to the maximum extent practicable, to remedy any 
     problems identified pursuant to the site visit or examination 
     under subclauses (I) and (II);

       ``(B) information demonstrating that the applicant has the 
     ability and resources to meet the needs of the market to be 
     served by the women's business center site for which an 
     initial grant is sought, including the ability to comply with 
     the matching requirement under paragraph (4);
       ``(C) information relating to assistance to be provided by 
     the women's business center site for which an initial grant 
     is sought in the area in which the site is located;
       ``(D) information demonstrating the effective experience of 
     the applicant in--
       ``(i) conducting financial, management, and marketing 
     assistance programs, as described under paragraph (3), which 
     are designed to teach or upgrade the business skills of women 
     who are business owners or potential business owners;
       ``(ii) providing training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged; and
       ``(iii) using resource partners of the Administration and 
     other entities, such as universities;
       ``(E) a 4-year plan that projects the ability of the 
     women's business center site for which an initial grant is 
     sought--
       ``(i) to serve women who are business owners or potential 
     owners in the future by improving training and counseling 
     activities; and
       ``(ii) to provide training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged; and
       ``(F) any additional information that the Administrator may 
     reasonably require.
       ``(6) Review and approval of applications for an initial 
     grant.--
       ``(A) In general.--The Administrator shall--
       ``(i) review each application submitted under paragraph 
     (5), based on the information described in such paragraph and 
     the criteria set forth under subparagraph (B) of this 
     paragraph; and
       ``(ii) as part of the final selection process, conduct a 
     site visit at each women's business center for which an 
     initial grant is sought.
       ``(B) Selection criteria.--
       ``(i) In general.--The Administrator shall evaluate 
     applicants in accordance with predetermined selection 
     criteria that shall be stated in terms of relative 
     importance. Such criteria and their relative importance shall 
     be made publicly available and stated in each solicitation 
     for applications made by the Administrator.
       ``(ii) Required criteria.--The selection criteria for an 
     initial grant under clause (i) shall include--

       ``(I) the experience of the applicant in conducting 
     programs or ongoing efforts designed to teach or upgrade the 
     business skills of women who are business owners or potential 
     owners;
       ``(II) the ability of the applicant to commence a project 
     within a minimum amount of time;
       ``(III) the ability of the applicant to provide training 
     and services to a representative number of women who are both 
     socially and economically disadvantaged; and
       ``(IV) the location for the women's business center site 
     proposed by the applicant.

       ``(C) Record retention.--The Administrator shall maintain a 
     copy of each application submitted under this paragraph for 
     not less than 7 years.
       ``(7) Application for a renewal grant.--Each organization 
     desiring a renewal grant under this subsection, shall submit 
     to the Administrator, not later than 3 months before the 
     expiration of an existing grant under this subsection, an 
     application that contains--
       ``(A) a certification that the applicant--
       ``(i) is a private nonprofit organization;
       ``(ii) has designated an executive director or program 
     manager to manage the center; and
       ``(iii) as a condition of receiving a grant under this 
     subsection, agrees--

       ``(I) to receive a site visit as part of the final 
     selection process;
       ``(II) to submit, for the preceding 2 years, annual 
     programmatic and financial examination reports or certified 
     copies of the applicant's compliance supplemental audits 
     under OMB Circular A-133; and
       ``(III) to the maximum extent practicable, to remedy any 
     problems identified pursuant to the site visit or examination 
     under subclauses (I) and (II);

       ``(B) information demonstrating that the applicant has the 
     ability and resources to meet the needs of the market to be 
     served by the women's business center site for which a 
     renewal grant is sought, including the ability to comply with 
     the matching requirement under paragraph (4);
       ``(C) information relating to assistance to be provided by 
     the women's business center site for which a renewal grant is 
     sought in the area in which the site is located;
       ``(D) information demonstrating the utilization of resource 
     partners of the Administration and other entities;
       ``(E) a 3-year plan that projects the ability of the 
     women's business center site for which a renewal grant is 
     sought--
       ``(i) to serve women who are business owners or potential 
     owners in the future by improving training and counseling 
     activities; and
       ``(ii) to provide training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged; and
       ``(F) any additional information that the Administrator may 
     reasonably require.
       ``(8) Review and approval of applications for a renewal 
     grant.--
       ``(A) In general.--The Administrator shall--
       ``(i) review each application submitted under paragraph 
     (7), based on the information described in such paragraph and 
     the criteria set forth under subparagraph (B) of this 
     paragraph; and
       ``(ii) as part of the final selection process, conduct a 
     site visit at each women's business center for which a 
     renewal grant is sought.
       ``(B) Selection criteria.--The Administrator shall evaluate 
     applicants in accordance with predetermined selection 
     criteria that shall be stated in terms of relative 
     importance. Such criteria and their relative importance shall 
     be made publicly available and stated in each solicitation 
     for applications made by the Administrator.
       ``(C) Conditions for continued funding.--In determining 
     whether to renew a grant or cooperative agreement with a 
     women's business center, the Administrator--
       ``(i) shall consider the results of the most recent 
     evaluation of the center, and, to a lesser extent, previous 
     evaluations; and
       ``(ii) may withhold such renewal, if the Administrator 
     determines that the center has failed to provide the 
     information required to be provided under this subsection, or 
     the information provided by the center is inadequate.
       ``(D) Continuing grant and cooperative agreement 
     authority.--
       ``(i) In general.--The authority of the Administrator to 
     enter into grants or cooperative agreements under this 
     subsection shall be in effect for each fiscal year only to 
     the extent and in the amounts as are provided in advance in 
     appropriations Acts.
       ``(ii) Renewal.--After the Administrator has entered into a 
     grant or cooperative agreement with any women's business 
     center under this subsection, the Administrator shall not 
     suspend, terminate, or fail to renew or extend any such grant 
     or cooperative agreement, unless the Administrator provides 
     the center with written notification setting forth the 
     reasons therefore and affords the center an opportunity for a 
     hearing, appeal, or other administrative proceeding under 
     chapter 5 of title 5, United States Code.
       ``(E) Record retention.--The Administrator shall maintain a 
     copy of each application submitted under this paragraph for 
     not less than 7 years.
       ``(9) Data collection.--Consistent with the annual report 
     to Congress under subsection (g), each women's business 
     center site that is awarded an initial or renewal grant under 
     this subsection shall collect information relating to--
       ``(A) the number of individuals counseled or trained;
       ``(B) the number of hours of counseling provided;
       ``(C) the number of workshops conducted;
       ``(D) the number of startup small business concerns formed; 
     and
       ``(E) the number of jobs created or maintained at assisted 
     small business concerns.
       ``(10) Privacy requirements.--
       ``(A) In general.--A women's business center may not 
     disclose the name, address, or telephone number of any 
     individual or small business concern receiving assistance 
     under this subsection without the consent of such individual 
     or small business concern, unless--
       ``(i) the Administrator is ordered to make such a 
     disclosure by a court in any civil or criminal enforcement 
     action initiated by a Federal or State agency; or
       ``(ii) the Administrator considers such a disclosure to be 
     necessary for the purpose of conducting a financial audit of 
     a women's business center, but a disclosure under this clause 
     shall be limited to the information necessary for such audit.
       ``(B) Administration use of information.--This subsection 
     shall not--
       ``(i) restrict Administration access to program activity 
     data; or
       ``(ii) prevent the Administration from using client 
     information (other than the information described in 
     subparagraph (A)) to conduct client surveys.
       ``(C) Regulations.--The Administrator shall issue 
     regulations to establish standards

[[Page 14397]]

     for requiring disclosures during a financial audit under 
     subparagraph (A)(ii).
       ``(11) Transition rules.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, a grant or cooperative agreement that was awarded as an 
     eligible sustainability grant, from amounts appropriated for 
     fiscal year 2006, to operate a women's business center, shall 
     remain in full force and effect under the terms, and for the 
     duration, of such agreement, subject to the grant limitation 
     in paragraph (1).
       ``(B) Extension.--If the sustainability grant under 
     subparagraph (A) is scheduled to expire not later than June 
     30, 2007, a 1-year extension shall be granted without any 
     interruption of funding, subject to the grant limitation in 
     paragraph (1).
       ``(C) Effect on certain existing projects and renewal 
     authority.--A project being conducted by a women's business 
     center under this subsection on the day before the date of 
     enactment of the Women's Small Business Ownership Programs 
     Act of 2006--
       ``(i) as a 5-year project, shall remain in full force and 
     effect under the terms and for the duration of that 
     agreement; and
       ``(ii) shall be eligible to apply for a 3-year renewal 
     grant funded at a level equal to not more than $150,000 per 
     year.
       ``(12) Coordination of services.--Small business 
     development centers and women's business centers shall, to 
     the extent possible, coordinate services to avoid duplication 
     of programmatic efforts.
       ``(c) Associations of Women's Business Centers.--
       ``(1) Recognition.--The Administrator shall recognize the 
     existence and activities of any association of women's 
     business centers established to address matters of common 
     concern.
       ``(2) Consultation.--The Administrator shall consult with 
     each association of women's business centers to develop--
       ``(A) a training program for the staff of the women's 
     business centers and the Administration; and
       ``(B) recommendations to improve the policies and 
     procedures for governing the general operations and 
     administration of the Women's Business Center Program, 
     including grant program improvements under subsection 
     (e)(5).''.
       (b) Conforming Amendments.--Section 29 of the Small 
     Business Act (15 U.S.C. 656) is amended--
       (1) by redesignating subsections (g), (h), (i), (j), and 
     (k) as subsections (d), (e), (f), (g), and (h), respectively;
       (2) in subsection (e)(2), as redesignated by paragraph (1) 
     of this subsection, by striking ``to award a contract (as a 
     sustainability grant) under subsection (l) or'';
       (3) in subsection (g)(1), as redesignated by paragraph (1) 
     of this subsection, by striking ``The Administration'' and 
     inserting ``Not later than November 1st of each year, the 
     Administrator'';
       (4) in subsection (h), as redesignated by paragraph (1) of 
     this subsection--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) In general.--There are authorized to be appropriated 
     to the Administration to carry out this section, to remain 
     available until expended--
       ``(A) $16,500,000 for fiscal year 2007, of which $500,000 
     may be used to provide supplemental sustainability grants to 
     women's business centers, except that no such center may 
     receive more than a total of $125,000 in grant funding for 
     the grant period beginning on July 1, 2006 and ending on June 
     30, 2007;
       ``(B) $17,000,000 for fiscal year 2008; and
       ``(C) $17,500,000 for fiscal year 2009.
       ``(2) Use of amounts.--Amounts made available under this 
     subsection may only be used for grant awards and may not be 
     used for costs incurred by the Administration in connection 
     with the management and administration of the program under 
     this section.''; and
       (B) by striking paragraph (4); and
       (5) by striking subsection (l).

     SEC. 4. NATIONAL WOMEN'S BUSINESS COUNCIL.

       (a) Cosponsorship Authority.--Section 406 of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 7106) is amended by 
     adding at the end the following:
       ``(f) Cosponsorship Authority.--The Council is authorized 
     to enter into agreements as a cosponsor with public and 
     private entities, in the same manner as is provided in 
     section 8(b)(1)(A) of the Small Business Act (15 U.S.C. 
     637(b)(1)(A)), to carry out its duties under this section.''.
       (b) Membership.--Section 407(f) of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 7107(f)) is amended by 
     adding at the end the following:
       ``(3) Representation of member organizations.--
     Notwithstanding subsection (b), a national women's business 
     organization or small business concern that is represented on 
     the Council may, in consultation with the chairperson of the 
     Council, replace its representative member on the Council at 
     any time during the service term to which that member was 
     appointed.''.
       (c) Establishment of Committees.--Title IV of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 7101 et seq.) is 
     amended by inserting after section 410, the following new 
     section:

     ``SEC. 411. COMMITTEES.

       ``(a) Establishment.--There are established within the 
     Council--
       ``(1) the Committee on Manufacturing, Technology, and 
     Training and Professional Services;
       ``(2) the Committee on Travel, Tourism, Product and Retail 
     Sales, and International Trade; and
       ``(3) the Committee on Federal Procurement and Contracting.
       ``(b) Duties.--The Committees established under subsection 
     (a) shall perform such duties as the chairperson shall 
     direct.''.
       (d) Clearinghouse for Historical Documents.--Section 409 of 
     the Women's Business Ownership Act of 1988 (15 U.S.C. 7109) 
     is amended by adding at the end the following:
       ``(c) Clearinghouse for Historical Documents.--The Council 
     shall serve as a clearinghouse for information on small 
     businesses owned and controlled by women, including research 
     conducted by other organizations and individuals relating to 
     ownership by women of small business concerns in the United 
     States.''.
       (e) Authorization of Appropriations.--Section 410(a) of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 7110(a)) is 
     amended by striking ``2001 through 2003, of which $550,000'' 
     and inserting ``2007 through 2009, of which not less than 30 
     percent''.

     SEC. 5. INTERAGENCY COMMITTEE ON WOMEN'S BUSINESS ENTERPRISE.

       (a) Chairperson.--Section 403(b) of the Women's Business 
     Ownership Act of 1988 (15 U.S.C. 7103(b)) is amended--
       (1) by striking ``Not later'' and inserting the following:
       ``(1) In general.--Not later''; and
       (2) by adding at the end the following:
       ``(2) Vacancy.--In the event that a chairperson is not 
     appointed under paragraph (1), the Deputy Administrator of 
     the Small Business Administration shall serve as acting 
     chairperson of the Interagency Committee until a chairperson 
     is appointed under paragraph (1).''.
       (b) Policy Advisory Group.--Section 401 of the Women's 
     Business Ownership Act of 1988 (15 U.S.C. 7101) is amended--
       (1) by striking ``There'' and inserting the following:
       ``(a) In General.--There''; and
       (2) by adding at the end the following:
       ``(b) Policy Advisory Group.--
       ``(1) Establishment.--There is established a Policy 
     Advisory Group to assist the chairperson in developing 
     policies and programs under this Act.
       ``(2) Membership.--The Policy Advisory Group shall be 
     composed of 7 policy making officials, of whom--
       ``(A) 1 shall be a representative of the Small Business 
     Administration;
       ``(B) 1 shall be a representative of the Department of 
     Commerce;
       ``(C) 1 shall be a representative of the Department of 
     Labor;
       ``(D) 1 shall be a representative of the Department of 
     Defense;
       ``(E) 1 shall be a representative of the Department of the 
     Treasury; and
       ``(F) 2 shall be representatives of the Council.''.
       (c) Establishment of Subcommittees.--Section 401 of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 7101), as 
     amended by subsection (b), is amended by adding at the end 
     the following:
       ``(c) Subcommittees.--
       ``(1) Establishment.--There are established--
       ``(A) the Subcommittee on Manufacturing, Technology, and 
     Training and Professional Services;
       ``(B) the Subcommittee on Travel, Tourism, Product and 
     Retail Sales, and International Trade; and
       ``(C) the Subcommittee on Federal Procurement and 
     Contracting.
       ``(2) Duties.--The Subcommittees established under 
     paragraph (1) shall perform such duties as the chairperson 
     shall direct.
       ``(3) Meetings.--The Subcommittees established under 
     paragraph (1) shall meet not less frequently than 3 times 
     each year to--
       ``(A) plan activities for the new fiscal year;
       ``(B) track year-to-date agency contracting goals; and
       ``(C) evaluate the progress during the fiscal year and 
     prepare an annual report.''.

     SEC. 6. PRESERVING THE INDEPENDENCE OF THE NATIONAL WOMEN'S 
                   BUSINESS COUNCIL.

       (a) Findings.--Congress finds the following:
       (1) The National Women's Business Council provides an 
     independent source of advice and policy recommendations 
     regarding women's business development and the needs of women 
     entrepreneurs in the United States to--
       (A) the President;
       (B) Congress;
       (C) the Interagency Committee on Women's Business 
     Enterprise; and
       (D) the Administrator.
       (2) The members of the National Women's Business Council 
     are small business owners, representatives of business 
     organizations, and representatives of women's business 
     centers.
       (3) The chair and ranking member of the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee

[[Page 14398]]

     on Small Business of the House of Representatives make 
     recommendations to the Administrator to fill 8 of the 
     positions on the National Women's Business Council. Four of 
     the positions are reserved for small business owners who are 
     affiliated with the political party of the President and 4 of 
     the positions are reserved for small business owners who are 
     not affiliated with the political party of the President. 
     This method of appointment ensures that the National Women's 
     Business Council will provide Congress with nonpartisan, 
     balanced, and independent advice.
       (4) In order to maintain the independence of the National 
     Women's Business Council and to ensure that the Council 
     continues to provide Congress with advice on a nonpartisan 
     basis, it is essential that the Council maintain the 
     bipartisan balance established under section 407 of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 7107).
       (b) Maintenance of Partisan Balance.--Section 407(f) of the 
     Women's Business Ownership Act of 1988 (15 U.S.C. 7107(f)), 
     as amended by this Act, is amended by adding at the end the 
     following:
       ``(4) Partisan balance.--When filling vacancies under 
     paragraph (1), the Administrator shall, to the extent 
     practicable, ensure that there are an equal number of members 
     on the Council from each of the 2 major political parties.
       ``(5) Accountability.--If a vacancy is not filled within 
     the 30-day period required under paragraph (1), or if there 
     exists an imbalance of party-affiliated members on the 
     Council for a period exceeding 30 days, the Administrator 
     shall submit a report, not later than 10 days after the 
     expiration of either such 30-day deadline, to the Committee 
     on Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives, 
     that explains why the respective deadline was not met and 
     provides an estimated date on which any vacancies will be 
     filled, as applicable.''.

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