[Congressional Record (Bound Edition), Volume 152 (2006), Part 11]
[Senate]
[Pages 15013-15020]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BOND:
  S. 3685. A bill to establish a grant program to provide vision care 
to children, and for other purposes; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. BOND. Mr. President, children endure a lot. They cannot always 
tell us what is wrong. Often they do not know themselves. So it takes a 
special person to work with young people and help identify their 
problems. Every child deserves the opportunity to reach their full 
potential, but it takes more than a bookbag full of pencils, paper, 
books and rulers to equip children with the tools necessary to succeed 
in school.
  The most important tool kids will take to school is their eyes. Good 
vision is critical to learning. Eighty percent of what kids learn in 
their early school years is visual. Unfortunately, we overlook that 
fact sometimes. According to the CDC only one in three children receive 
any form of preventive vision care before entering school. That means 
many kids are in school right now with an undetected vision problem. 
One in four children has a vision problem that can interfere with 
learning. Some children are even labeled ``disruptive'' or thought to 
have a learning disability when the real reason for their difficulty is 
an undetected vision problem.
  Without any vision care, some of our children will continue to fall 
through the cracks. I sympathize with these kids because I suffer from 
permanent vision loss in one eye as a result of

[[Page 15014]]

undiagnosed amblyopia in childhood. Amblyopia is the No. 1 cause of 
vision loss in young Americans. If discovered and treated early, vision 
loss from amblyopia can be largely prevented. Had I been identified and 
treated before I entered school, I could have avoided a lifetime of 
vision loss. Parents are not always aware that their child may suffer 
from a vision problem. By educating parents on the importance of vision 
care and recognizing signs of visual impairment we can help children 
avoid unnecessary vision loss.
  To ensure that children get the vital vision care that they need to 
succeed, today I am introducing the Vision Care for Kids Act of 2006 
which will establish a grant program to complement and encourage 
existing state efforts to improve children's vision care. More 
specifically, grant funds will be used to: (1) provide comprehensive 
eye exams to children that have been previously identified as needing 
such services; (2) provide treatment or services necessary to correct 
vision problems identified in that eye exam; and (3) develop and 
disseminate educational materials to recognize the signs of visual 
impairment in children for parents, teachers, and health care 
practitioners.
  We need to do this. We must improve vision care for children to 
better equip them to succeed in school and in life. The Vision Care for 
Kids Act, endorsed by the American Academy of Ophthalmology, American 
Optometric Association, and Vision Council of America, will make a 
difference in the lives of children across the country.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Graham):
  S. 3688. A bill to preserve the Mount Soledad Veterans Memorial in 
San Diego, California, by providing for the immediate acquisition of 
the memorial by the United States; to the Committee on Energy and 
Natural Resources.
  Mr. McCAIN. Mr President, today I am introducing legislation to 
preserve the Mount Soledad Veterans Memorial in San Diego, CA. I am 
pleased to be joined in this effort by Senator Graham.
  Since 1913, a series of crosses have stood on top of Mount Soledad, 
property owned by the city of San Diego. In April of 1954, the site was 
designated to commemorate the sacrifices made by members of the Armed 
Forces who served in World War II, as well as the Korean war.
  In 1989, one individual filed suit against the city claiming that the 
display of the cross by he city was unconstitutional and, therefore, 
violated his civil rights. In 1991, a Federal judge issued an 
injunction prohibiting the permanent display of the cross on city 
property. Since that time, the city has repeatedly tried to divest 
itself of the property through sale or donation. But the plaintiff 
continued to mount legal challenges to every attempted property 
transfer--revealing that his true objection is not to the city's 
display of the cross, but to the cross itself. The legal wrangling over 
this memorial continues today.
  The Mount Soledad Memorial is a remarkably popular landmark. On two 
different occasions, the voters of San Diego passed, by votes of 76 
percent, ballot measures designed to transfer the property to entities 
that could maintain it.
  I do not believe that the Mount Soledad cross violates the 
Constitution. Consequently, I do not believe there is just cause for 
removing it from its position as the centerpiece of the Soledad 
Veterans Memorial. Therefore, given the many years of legal disputes 
regarding this issue, I believe it is past time it is resolved.
  The bill I am introducing would bring the Mount Soledad cross under 
the control of the Federal Government, and specifically the Department 
of Defense. The process set forth in the bill is consistent with 
analysis provided by the Department of Justice's Office of Legislative 
Affairs in a recent letter to the chairman of the House Armed Services 
Committee. In that letter, the OLA stated, ``we would . . . point out 
that Congress could enact the necessary authority [to acquire the Mount 
Soledad Memorial] through an immediate legislative taking. . .''
  This bill would allow for the just compensation for the property in 
question. It also would address the required maintenance for the 
memorial and the surrounding property through a memorandum of 
understanding between the Secretary of Defense and the Mount Soledad 
Memorial Association. The minimal financial commitment required in this 
legislation will ensure the endurance of this memorial which serves as 
a reminder of the hundreds of thousands of men and women who made 
enormous sacrifices when our country called upon them.
  I encourage my colleagues to join me in supporting this legislation, 
which will ensure the preservation of an important tribute to our men 
and women of the Armed Forces.
                                 ______
                                 
      By Mr. JEFFORDS:
  S. 3689. A bill to establish a national historic country store 
preservation and revitalization program; to the Committee on 
Environment and Public Works.
  Mr. JEFFORDS. Mr. President, I have long been a proponent of measures 
that support historic preservation and economic development. In keeping 
with that tradition, I rise today to introduce the National Historic 
Country Store Preservation and Revitalization Act of 2006.
  This bill establishes a national program to support historic country 
store preservation and will aid in the revitalization of rural villages 
and community centers nationwide.
  For many Americans, the country store brings to mind days that have 
since passed, before much of this country became stamped with shopping 
malls and the ``big-box'' store. But for thousands of people living in 
Vermont and for millions more living in rural communities across the 
United States, a visit to the local country store is a regular part of 
one's daily life.
  In my hometown of Shrewsbury, VT, the Pierce Store was the hub of our 
small community when my wife Liz and I settled there in 1963. Run by 
the four Pierce siblings--Marjorie, Glendon, Marion and Gordon--the 
store was the place to go for a neighborly chat as much as for your 
milk and butter. Unfortunately, the Pierce Store closed its doors some 
years back and Shrewsbury lost a vital part of its identity.
  Yet while some country stores have been forced to close their doors, 
others have shown incredible resiliency.
  They have survived floods and fires, overcome economic downturns, and 
reformulated their inventories to meet modern needs. According to the 
Vermont Grocers' Association, country stores account for an estimated 
$55 million annually in retail sales in Vermont alone.
  But with increased competition and additional costs to maintain aging 
structures, today's remaining country store owners are hard-pressed to 
overcome these unprecedented challenges.
  My legislation authorizes the U.S. Economic Development 
Administration to make grants to national, state and local agencies and 
non-profit organizations to support historic country store preservation 
efforts. In addition, the bill establishes a revolving loan fund. The 
fund will be used for research, restoration work that will improve our 
understanding of existing needs and provide the assistance required to 
address them. The bill promotes the study of best practices for 
preserving structures, improving profitability and promoting 
collaboration among country store owners.
  My legislation unites small business development and historic 
preservation principles to sustain these invaluable community 
institutions. I encourage my colleagues to join me in my efforts to 
protect our rural heritage by preventing the further loss of our 
Nation's historic country stores.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3689

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

[[Page 15015]]



     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Historic Country 
     Store Preservation and Revitalization Act of 2006''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) historic country stores are lasting icons of rural 
     tradition in the United States;
       (2) historic country stores are valuable contributors to 
     the civic and economic vitality of their local communities;
       (3) historic country stores demonstrate innovative 
     approaches to historic preservation and small business 
     practices;
       (4) historic country stores are threatened by larger 
     competitors and the costs associated with maintaining older 
     structures; and
       (5) the United States should--
       (A) collect and disseminate information concerning the 
     number, condition, and variety of historic country stores;
       (B) develop opportunities for cooperation among proprietors 
     of historic country stores; and
       (C) promote the long-term economic viability of historic 
     country stores through the provision of financial assistance 
     to historic country stores.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Country store.--
       (A) In general.--The term ``country store'' means a 
     structure independently owned and formerly or currently 
     operated as a business that--
       (i) sells or sold grocery items and other small retail 
     goods; and
       (ii) is located in--

       (I) an economically distressed area; or
       (II) a nonmetropolitan area, as defined by the Secretary.

       (B) Inclusion.--The term ``country store'' includes a 
     cooperative.
       (2) Economically distressed area.--The term ``economically 
     distressed area'' means an area that meets 1 or more of the 
     criteria described in section 301(a) of the Public Works and 
     Economic Development Act of 1965 (42 U.S.C. 3161(a)).
       (3) Eligible applicant.--The term ``eligible applicant'' 
     means--
       (A) a State department of commerce or economic development;
       (B) a national or State nonprofit organization that--
       (i) is described in section 501(c)(3), and exempt from 
     Federal tax under section 501(a), of the Internal Revenue 
     Code of 1986; and
       (ii)(I) has experience or expertise, as determined by the 
     Secretary, in the identification, evaluation, rehabilitation, 
     or preservation of historic country stores; or
       (II) is undertaking economic and community development 
     activities;
       (C) a national or State nonprofit trade organization that--
       (i) is described in section 501(c)(3), and exempt from 
     Federal tax under section 501(a), of the Internal Revenue 
     Code of 1986; and
       (ii) acts as a cooperative to promote and enhance country 
     stores; and
       (D) a State historic preservation office.
       (4) Fund.--The term ``Fund'' means the Historic Country 
     Store Revolving Loan Fund established under section 5(a).
       (5) Historic country store.--The term ``historic country 
     store'' means a country store that--
       (A) has operated at the same location for at least 50 
     years; and
       (B) retains sufficient integrity of design, materials, and 
     construction to clearly identify the structure as a country 
     store.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce, acting through the Assistant Secretary for 
     Economic Development.

     SEC. 4. HISTORIC COUNTRY STORE PRESERVATION AND 
                   REVITALIZATION PROGRAM.

       (a) Establishment.--The Secretary shall establish a 
     historic country store preservation and revitalization 
     program--
       (1) to collect and disseminate information on historic 
     country stores;
       (2) to promote State and regional partnerships among 
     proprietors of historic country stores; and
       (3) to sponsor and conduct research on--
       (A) the economic impact of historic country stores in rural 
     areas, including the impact on unemployment rates and 
     community vitality;
       (B) best practices to--
       (i) improve the profitability of historic country stores; 
     and
       (ii) protect historic country stores from foreclosure or 
     seizure; and
       (C) best practices for developing cooperative organizations 
     that address the economic and historic preservation needs 
     of--
       (i) historic country stores; and
       (ii) the communities served by the historic country stores.
       (b) Grants.--
       (1) In general.--The Secretary may make grants to, or enter 
     into contracts or cooperative agreements with, eligible 
     applicants to carry out an eligible project under paragraph 
     (2).
       (2) Eligible projects.--A grant under this subsection may 
     be made to an eligible applicant for a project--
       (A)(i) to rehabilitate or repair a historic country store; 
     and
       (ii) to enhance the economic benefit of the historic 
     country store to the communities served by the historic 
     country store;
       (B) to identify, document, and conduct research on historic 
     country stores; and
       (C) to develop and evaluate appropriate techniques or best 
     practices for protecting historic country stores.
       (3) Requirements.--An eligible applicant that receives a 
     grant for an eligible project under paragraph (1) shall 
     comply with all applicable requirements for historic 
     preservation projects under Federal, State, and local law.
       (4) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives a report that--
       (A) identifies the number of grants made under subsection 
     (b);
       (B) describes the type of grants made under subsection (b); 
     and
       (C) includes any other information that the Secretary 
     determines to be appropriate.
       (c) Country Store Alliance Pilot Project.--
       (1) In general.--The Secretary shall carry out a pilot 
     project in the State of Vermont under which the Secretary 
     shall conduct demonstration activities to preserve historic 
     country stores and the communities served by the historic 
     country stores, including--
       (A) the collection and dissemination of information on 
     historic country stores in the State;
       (B) the development of collaborative country store 
     marketing and purchasing techniques; and
       (C) the development of best practices for historic country 
     store proprietors and communities facing transitions involved 
     in the sale or closure of a historic country store.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Environment and Public Works of the Senate and 
     the Committee on Transportation and Infrastructure of the 
     House of Representatives a report that--
       (A) describes the results of the pilot project; and
       (B) includes any recommended changes of the Secretary to 
     the program established under subsection (a), based on the 
     results of the pilot project.

     SEC. 5. HISTORIC COUNTRY STORE REVOLVING LOAN FUND.

       (a) Establishment.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary of the Treasury shall 
     establish in the Treasury of the United States a revolving 
     fund, to be known as the ``Historic Country Store Revolving 
     Loan Fund'', consisting of--
       (1) such amounts as are appropriated to the Fund under 
     subsection (b);
       (2) \1/3\ of the amounts appropriated under section 8(a); 
     and
       (3) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       (b) Transfers to Fund.--There are appropriated to the Fund 
     amounts equivalent to--
       (1) the amounts repaid on loans under section 6; and
       (2) the amounts of the proceeds from the sales of notes, 
     bonds, obligations, liens, mortgages and property delivered 
     or assigned to the Secretary pursuant to loans made under 
     section 6.
       (c) Expenditures From Fund.--
       (1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary such amounts as the Secretary 
     determines are necessary to provide loans under section 6.
       (2) Administrative expenses.--An amount not exceeding 10 
     percent of the amounts in the Fund shall be available for 
     each fiscal year to pay the administrative expenses necessary 
     to carry out this Act.
       (d) Investment of Amounts.--
       (1) In general.--The Secretary of the Treasury shall invest 
     such portion of the Fund as is not, in the judgment of the 
     Secretary of the Treasury, required to meet current 
     withdrawals.
       (2) Interest-bearing obligations.--Investments may be made 
     only in interest-bearing obligations of the United States.
       (3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       (A) on original issue at the issue price; or
       (B) by purchase of outstanding obligations at the market 
     price.
       (4) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (5) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       (e) Transfers of Amounts.--
       (1) In general.--The amounts required to be transferred to 
     the Fund under this section shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       (2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.

[[Page 15016]]



     SEC. 6. LOANS FOR HISTORIC COUNTRY STORE REHABILITATION OR 
                   REPAIR PROJECTS.

       (a) In General.--Using amounts in the Fund, the Secretary 
     may make direct loans to eligible applicants for projects--
       (1) to purchase, rehabilitate, or repair historic country 
     stores; or
       (2) to establish microloan funds to make short-term, fixed-
     interest rate loans to proprietors of historic country 
     stores.
       (b) Applications.--
       (1) In general.--To be eligible for a loan under this 
     section, an eligible applicant shall submit to the Secretary 
     a complete application for a loan that addresses the criteria 
     described in paragraph (2).
       (2) Considerations for approval or disapproval.--In 
     determining whether to approve or disapprove an application 
     for a loan submitted under paragraph (1), the Secretary shall 
     consider--
       (A) the demonstrated need for the purchase, construction, 
     reconstruction, or renovation of the historic country store 
     based on the condition of the historic country store;
       (B) the age of the historic country store;
       (C) the extent to which the project to purchase, 
     rehabilitate, or repair the historic country store includes 
     collaboration among historic country store proprietors and 
     other eligible applicants; and
       (D) any other criteria that the Secretary determines to be 
     appropriate.
       (c) Requirements.--An eligible applicant that receives a 
     loan for a project under this section shall comply with all 
     applicable standards for historic preservation projects under 
     Federal, State, and local law.
       (d) Report.--Not later than 1 year after the date on which 
     the Fund is established under subsection (a), and every 2 
     years thereafter, the Secretary shall submit to the Committee 
     on Environment and Public Works of the Senate and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives a report that--
       (1) identifies--
       (A) the number of loans provided under this section;
       (B) the repayment rate of the loans; and
       (C) the default rate of the loans; and
       (2) includes any other information that the Secretary 
     determines to be appropriate.

     SEC. 7. PERFORMANCE REPORT.

       Any eligible applicant that receives financial assistance 
     under this Act shall, for each fiscal year for which the 
     eligible applicant receives the financial assistance, submit 
     to the Secretary a performance report that--
       (1) describes--
       (A) the allocation of the amount of financial assistance 
     received under this Act;
       (B) the economic benefit of the financial assistance, 
     including a description of--
       (i) the number of jobs retained or created; and
       (ii) the tax revenues generated; and
       (2) addresses any other reporting requirements established 
     by the Secretary.

     SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated to 
     carry out this Act, $50,000,000 for the period of fiscal 
     years 2006 through 2011, to remain available until expended.
       (b) Country Store Alliance Pilot Project.--Of the amount 
     made available under subsection (a), not less than $250,000 
     shall be made available to carry out section 4(c).
                                 ______
                                 
      By Mr. KERRY (for himself, Ms. Snowe, Mr. Akaka, and Mr. Talent):
  S. 3691. A bill to amend the Small Business Act, to reform and 
reauthorize the National Veterans Business Development Corporation, and 
for other purposes; to the Committee on Small Business and 
Entrepreneurship.
  Mr. KERRY. Mr. President, as the ranking member of the Committee on 
Small Business and Entrepreneurship, I am joined today by my colleagues 
Senators Snowe, Akaka, and Talent to introduce the Veterans Corporation 
Reauthorization Act of 2006.
  This legislation is the product of lengthy bipartisan discussions 
about how we might be able to restore and revitalize the mission of The 
Veterans Corporation. Established in 1999 through Public Law 106-50, 
The National Veterans Business Development Corporation, commonly known 
as The Veterans Corporation, TVC, is charged with the task of assisting 
the men and women who have served this country in the military by 
helping them create and expand their own businesses. There are over 5 
million veteran entrepreneurs across the country--over 550,000 in the 
Commonwealth of Massachusetts alone--and approximately 200,000 veterans 
are expected to retire in 2006. Additionally, 2004 data from the Small 
Business Administration, SBA, shows that approximately 22 percent of 
veterans in the U.S. household population purchased or started a new 
business, or were considering doing so. This legislation ensures that 
necessary steps are taken to continue fostering entrepreneurship and 
business ownership among a veterans population that can clearly benefit 
from such assistance nationwide.
  My distinguished colleagues and I feel that TVC is an organization 
worth reinvigorating. In fiscal year 2005, TVC reached out to over 
18,000 current and potential veteran entrepreneurs, and opened three 
Veteran Business Resource Centers in Boston, MA; Flint, MI; and San 
Diego, CA, in addition to the flagship location in St. Louis, MO. In my 
home State of Massachusetts, TVC has close to 100 business owners and 
over 400 registered members.
  Yet, in recent years, TVC has come under criticism for its overall 
performance. Many within the veterans community, and indeed some of my 
colleagues in Congress, do not believe TVC has produced results that 
warrant the millions of dollars in funding the organization has 
received. I understand this sentiment, and share in the desire to 
ensure taxpayer dollars are well-spent. This was among my primary 
concerns as we approached reauthorizing TVC. However, my colleagues and 
I came to the conclusion that by reauthorizing the organization, 
Congress could ensure greater oversight and accountability on the part 
of TVC and its use of Federal dollars--ultimately resulting in better 
service for our veterans. This is exactly what the Veterans Corporation 
Reauthorization Act of 2006 aims to do.
  This legislation builds on the preexisting TVC program in order to 
expand its reach nationwide, so that more veterans can have the tools 
they need to realize their entrepreneurial aspirations. Through a 
series of provisions that target the weaknesses of TVC and develop 
sound policies to strengthen them and clarify the organization's 
mission within the veterans community it serves, this bill makes 
several key improvements to the corporation.
  In its inception, we envisioned that TVC would establish centers 
across the country to help assist veteran entrepreneurs with their 
small business needs. Unfortunately, the organization has shifted its 
primary focus toward the development of online programs in recent 
years. Although it is a good thing that TVC has four centers across the 
country, clearly more needs to be done to build upon these and develop 
a substantial number of new centers and networking opportunities for 
veterans nationwide. That is why this bill clarifies the role TVC 
should have in local communities. In rewriting the purpose of TVC in 
this capacity, our legislation explicitly states that the organization 
should be actively working to form more centers in order to build and 
create a national network linking veterans to the information, 
counseling, and assistance they need in starting and maintaining their 
businesses.
  A recurring frustration that echoes from many veterans nationwide is 
that they are often unable to gain access to the Federal contracting 
and procurement realm. It is downright shameful that so many servicemen 
and women feel as though a government they fought so hard to protect 
all but abandons them--continuing to award myriad contracts to big 
businesses. By law, the Federal Government has a 3-percent contracting 
goal for service-disabled veterans. However, in 2004 only 0.38 percent 
of government contracts were awarded to service-disabled veterans. 
Patterns such as this are all too common--replaying themselves year in 
and year out. Clearly, more ought to be done to help those veterans who 
are looking to gain access to Federal contracts. Given this, our 
legislation directs TVC to assist veterans, particularly service-
disabled veterans, with Federal contracting opportunities.
  We received numerous complaints from veterans about the way the 
administration has chosen to interpret the current law such that it 
severely limits Congress's role in appointing board members. In this, 
TVC had experienced significant staffing changes on its Board of 
Directors since 1999. Our legislation ensures that the President works 
with the chair and ranking members of the Senate Committee on Small 
Business and Entrepreneurship

[[Page 15017]]

and/or the Senate Committee on Veterans Affairs, and their House 
counterparts, to appoint nine members of the board with 4-year terms. 
Additionally, our legislation dictates that in this nomination process, 
the President and Congress consult with veterans groups nationwide. 
Furthermore, the Veterans Corporation Reauthorization Act of 2006 
stipulates that no more than five of the nine board members be from the 
same political party and that all have business experience, knowledge 
of veterans issues, as well as the wherewithal to raise private funds 
for TVC. I firmly believe that this provision will ensure that TVC has 
top-notch board members, who can offer the best service to those who 
have already served our country.
  This legislation authorizes $2 million in Federal funds annually from 
fiscal years 2007 through 2009. Additionally, because TVC was 
originally to become a self-sustaining entity, our bill requires that 
for all Federal dollars received, the organization match those dollar 
amounts with private funds. Since its authorization expired in 2004, 
TVC's original matching requirement vanished, and the organization 
instead received Federal funding without any private fundraising 
requirement. We felt that this matching requirement needed to be 
reinstated to better enable TVC to become fully self-sustaining. Thus, 
our legislation forces TVC to function in a way similar to the SBA's 
Women's Business Centers and Small Business Development Centers. The 
leveraging of Federal dollars enables TVC to expand its donor base so 
that it can achieve the goal of self-sustainability. Additionally, it 
has come to our attention through conversations with the veterans 
community, that servicemen and women are being charged high fees for 
using TVC services. That was never the intention when this program was 
conceptualized, and it is wrong for TVC to earn its private funds on 
the backs of veterans. We fix that in this bill by limiting the amount 
of non-Federal funds that TVC can raise in the form of fees to veterans 
to no more than 33 percent of the organization's total revenue.
  In addition to the matching-fund requirement within our bill, it also 
requires that TVC develop a comprehensive plan for privatization within 
6 months of the enactment of the Veterans Corporation Reauthorization 
Act of 2006. To ensure that TVC is in full compliance with the 
provisions in our bill, and that its self-sustaining plan demonstrates 
a certain degree of feasibility, we have asked the Government 
Accountability Office to conduct an audit of the organization no later 
than one year after date of enactment.
  Finally, this bill extends the SBA's Veterans Advisory Committee, 
which the administration planned on terminating as of this year. 
Originally established through Public Law 106-50, this committee was to 
advise and counsel the SBA Administrator and the agency's Associate 
Administrator for Veterans' Business Development on the entrepreneurial 
needs and concerns of veteran small business owners and to monitor 
public and private plans that have the potential to impact veteran 
entrepreneurs from obtaining capital, credit, and to access markets. 
Additionally, it was to roll into TVC by September 30, 2004. However, 
when this date came around, it was clear that TVC was in no position to 
take on more responsibilities. Thus, Congress reauthorized the Veterans 
Advisory Committee and postponed the transfer date until this year. As 
the deadline closes in, we thought it best to reauthorize Veterans 
Advisory Committee and again postpone the transfer.
  America's veterans and service-disabled veteran communities deserve a 
resource to assist them in bringing their entrepreneurial ideas into 
fruition. Nationwide, more and more veterans are turning to small 
businesses as a means of carving out their piece of the American dream, 
despite the many barriers they face upon reentering civilian life. The 
strengthening and revitalization of TVC that this legislation proposes, 
is one way that Congress can help in this effort and ensure greater 
effectiveness and accountability within the organization in the years 
ahead.
  I urge my colleagues to join in support of this bipartisan Veterans 
Corporation Reauthorization Act of 2006--because in helping TVC 
succeed, we are ultimately helping veterans succeed and prosper.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3691

       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 ``Veterans Corporation 
     Reauthorization Act of 2006''.

     SEC. 2. PURPOSES OF THE CORPORATION.

       (a) Purposes.--Section 33(b) of the Small Business Act (15 
     U.S.C. 657c(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) to establish and maintain a national network of 
     information and assistance centers for use by veterans and 
     the public by--
       ``(A) providing information regarding small business 
     oriented employment or development programs;
       ``(B) providing access to studies and research concerning 
     the management, financing, and operation of small business 
     enterprises, small business participation in international 
     markets, export promotion, and technology transfer;
       ``(C) providing referrals to business analysts who can 
     provide direct counseling to veteran small business owners 
     regarding the subjects described in this section;
       ``(D) serving as an information clearinghouse for business 
     development and entrepreneurial assistance materials, as well 
     as other veteran assistance materials, as deemed necessary, 
     that are provided by Federal, State and local governments; 
     and
       ``(E) providing assistance to veterans and service-disabled 
     veterans in efforts to gain access to Federal prime contracts 
     and subcontracts; and''; and
       (2) in paragraph (2), by striking ``including service-
     disabled veterans'' and inserting ``particularly service-
     disabled veterans''.

     SEC. 3. MANAGEMENT OF THE CORPORATION.

       (a) Appointments to the Board.--Section 33(c)(2) of the 
     Small Business Act (15 U.S.C. 657c(c)(2)) is amended to read 
     as follows:
       ``(2) Appointment of voting members.--
       ``(A) In general.--The President shall, after considering 
     recommendations proposed under subparagraph (B), appoint the 
     9 voting members of the Board, all of whom shall be United 
     States citizens, and not more than 5 of whom shall be members 
     of the same political party.
       ``(B) Recommendations.--Recommendations shall be submitted 
     to the President for appointments under this paragraph by the 
     chairman or ranking member (or both) of the Committee on 
     Small Business and Entrepreneurship or the Committee on 
     Veterans Affairs (or both) of the Senate or the Committee on 
     Small Business or the Committee on Veterans Affairs (or both) 
     of the House of Representatives.
       ``(C) Consultation with veteran organizations.--
     Recommendations under subparagraph (B) shall be made after 
     consultation with such veteran service organizations as are 
     determined appropriate by the member of Congress making the 
     recommendation.
       ``(D) Considerations.--Consideration for eligibility for 
     membership on the Board shall include business experience, 
     knowledge of veterans' issues, and ability to raise funds for 
     the Corporation.
       ``(E) Limitation on internal recommendations.--No member of 
     the Board may recommend an individual for appointment to 
     another position on the Board.''.
       (b) Terms.--Section 33(c)(6) of the Small Business Act (15 
     U.S.C. 657c(c)(6)) is amended to read as follows:
       ``(6) Terms of appointed members.--
       ``(A) In general.--Each member of the Board of Directors 
     appointed under paragraph (2) shall serve for a term of 4 
     years.
       ``(B) Unexpired terms.--Any member of the Board of 
     Directors appointed to fill a vacancy occurring before the 
     expiration of the term for which the member's predecessor was 
     appointed shall be appointed only for the remainder of the 
     term. A member of the Board of Directors may not serve beyond 
     the expiration of the term for which the member is 
     appointed.''.
       (c) Removal of Board Members.--Section 33(c) of the Small 
     Business Act (15 U.S.C. 657c(c)) is amended by adding at the 
     end the following:
       ``(12) Removal of members.--With the approval of a majority 
     of the Board of Directors and the approval of the chairmen 
     and ranking members of the Committee on Small Business and 
     Entrepreneurship and the Committee on Veterans Affairs of the 
     Senate, the Corporation may remove a member of the Board of 
     Directors that is deemed unable to fulfill his or her duties, 
     as established under this section.''.

     SEC. 4. TIMING OF TRANSFER OF ADVISORY COMMITTEE DUTIES.

       Section 33(h) of the Small Business Act (15 U.S.C. 657c(h)) 
     is amended by striking ``October 1, 2006'' and inserting 
     ``October 1, 2009''.

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       Section 33(k) of the Small Business Act (15 U.S.C. 
     657c(k)(1)) is amended--

[[Page 15018]]

       (1) in paragraph (1)--
       (A) by inserting ``, through the Office of Veteran's 
     Business Development of the Administration,'' after ``to the 
     Corporation''; and
       (B) by striking subparagraphs (A) through (D) and inserting 
     the following:
       ``(A) $2,000,000 for fiscal year 2007;
       ``(B) $2,000,000 for fiscal year 2008; and
       ``(C) $2,000,000 for fiscal year 2009.'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Matching requirements.--
       ``(A) In general.--The Administration shall require, as a 
     condition of any grant (or amendment or modification thereto) 
     made to the Corporation under this section, that a matching 
     amount (excluding any fees collected from recipients of such 
     assistance) equal to the amount of such grant be provided 
     from sources other than the Federal Government.
       ``(B) Limitation.--Not more than 33 percent of the total 
     revenue of the Corporation, including the funds raised for 
     use at the Veteran's Business Resource Centers, may be 
     acquired from fee-for-service tools or direct charge to the 
     veteran receiving services, as described in this section, 
     except that the amount of any such fee or charge may not 
     exceed the amount of such fee or charge in effect on the date 
     of enactment of the Veterans Corporation Reauthorization Act 
     of 2006.
       ``(C) Mission-related limitation.--The Corporation may not 
     engage in revenue producing programs, services, or related 
     business ventures that are not intended to carry out the 
     mission and activities described in section (b).
       ``(D) Return to treasury.--Funds appropriated under this 
     section that have not been expended at the end of the fiscal 
     year for which they were appropriated shall revert back to 
     the Treasury.''; and
       (3) by striking paragraph (3).

     SEC. 6. PRIVATIZATION.

       Section 33 of the Small Business Act (15 U.S.C. 657c) is 
     amended--
       (1) by striking subsections (f) and (i); and
       (2) by redesignating subsections (g), (h), (j), and (k) as 
     subsections (f) through (i), respectively; and
       (3) by adding at the end the following:
       ``(j) Privatization.--
       ``(1) Development of plan.--Not later than 6 months after 
     the date of enactment of the Veterans Corporation 
     Reauthorization Act of 2006, the Corporation shall develop, 
     institute, and implement a plan to raise private funds and 
     become a self-sustaining corporation.
       ``(2) GAO audit and report.--
       ``(A) Audit.--The Comptroller General of the United States 
     shall conduct an audit of the Corporation, in accordance with 
     generally accepted accounting principles and generally 
     accepted audit standards.
       ``(B) Inclusions.--The audit required by this paragraph 
     shall include--
       ``(i) an evaluation of the efficacy of the Corporation in 
     carrying out the purposes under section (b); and
       ``(ii) an analysis of the feasibility of the sustainability 
     plan developed by the Corporation.
       ``(C) Report.--Not later than 1 year after the date of 
     enactment of the Veterans Corporation Reauthorization Act of 
     2006, the Comptroller General shall submit a report on the 
     audit conducted under this paragraph to the Committee on 
     Small Business and Entrepreneurship and the Committee on 
     Veterans Affairs of the Senate and to the Committee on Small 
     Business and the Committee on Veterans Affairs of the House 
     of Representatives.''.
                                 ______
                                 
      By Mr. OBAMA (for himself, Mr. Lugar, Mr. Biden, Mr. Smith, Mr. 
        Bingaman, Mr. Harkin, Mr. Coleman, and Mr. Durbin):
  S. 3694. A bill to increase fuel economy standards for automobiles, 
and for other purposes; to the Committee on Finance.
  Mr. OBAMA. Mr. President, 33 years ago, this Nation faced a crisis 
that touched every American. In 1973, in the shadow of a war against 
Israel, the Arab nations of OPEC decided to embargo shipments of crude 
oil to the West.
  The economic effects were devastating. For American drivers, the 
price at the gas pump rose from a national average of 38.5 cents per 
gallon in May 1973 to 55.1 cents per gallon in June 1974. The stock 
market fell, and countries across the world faced terrible cycles of 
inflation and recession that lasted well into the 1980s.
  Lawmakers in Washington reacted by calling for a nationwide daylight 
savings time and a national speed limit. They established a new 
Department of Energy that eventually created a strategic petroleum 
reserve. Perhaps most important, Congress enacted the Corporate Average 
Fuel Economy standards, or CAFE, the first-ever requirements for 
automakers to improve gas mileage on the vehicles we drive.
  At the time, auto executives protested, saying there was no way to 
increase fuel economy without making cars smaller. One company 
predicted that Americans would all be driving sub-compacts as a result 
of CAFE. But CAFE did work, and under the direction of Congress, the 
National Highway Traffic Safety Administration, NHSTA, nearly doubled 
the average gas mileage of cars from 14 miles per gallon in 1976 to 
27.5 mpg for cars in 1985. Today, CAFE standards save us about 3 
million barrels of oil per day, making it the most successful energy-
saving measure ever adopted.
  Now 30 years later, Americans again are feeling the pain at the pump. 
The price of oil has reached $78 a barrel, and Americans are paying 
more than $3.00 a gallon for gas. America's 20-million-barrel-a-day 
habit costs our economy $800 million a day, or $300 billion annually. 
Because we import 60 percent of our oil, much of it from the Middle 
East, our dependence on oil is also a national security issue as well. 
Al-Qaida knows that oil is America's Achilles heel. Osama bin Laden has 
urged his supporters to ``Focus your operations on oil, especially in 
Iraq and the gulf area, since this will cause them to die off.''
  At a time when the energy and security stakes couldn't be higher, 
CAFE standards have been stagnant. In fact, because of a long-standing 
deadlock in Washington, CAFE standards that initially increased so 
quickly have remained stagnant for the last 20 years.
  Since 1985, efforts to raise the CAFE standard have been stymied by 
opponents who have argued that Congress does not possess the expertise 
to set specific benchmarks and that an inflexible congressional mandate 
would result in the production of less safe cars and a loss of American 
jobs. This has been a bureaucratic logjam that has ignored 
technological innovations in the auto industry and crippled our ability 
to increase fuel efficiency.
  To attempt to break this two-decade-long deadlock and start the U.S. 
on the path towards energy independence, I have joined with Senators 
Lugar, Biden, Smith, Bingaman, Harkin, Coleman, and Durbin to introduce 
the Fuel Economy Reform Act of 2006. This bill would set a new course 
by establishing regular, continual, and incremental progress in miles 
per gallon, targeting 4 percent annually, but preserving NHTSA 
expertise and flexibility on how to meet those targets.
  Over the past 20 years, NHTSA's efforts to improve fuel economy have 
been encumbered with loopholes and resistance. With this bill, CAFE 
standards would increase by 4 percent every year unless NHTSA can 
justify a deviation in that rate by proving that the increase is 
technologically unachievable, does not materially reduce the safety of 
automobiles manufactured or sold in the U.S., or can prove it is not 
cost-effective when comparing with the economic and geopolitical value 
of a gallon of gasoline saved. We specifically define the grounds upon 
which NHTSA can determine cost-effectiveness. By flipping the 
presumption that has served as a barrier to action, we replace the 
status quo of continued stagnation with steady, measured progress.
  Under this system, if the 4 percent annualized improvement occurs 
over ten years, this bill would save 1.3 million barrels of oil per 
day--or 20 billion gallons of gasoline per year. If gasoline is just 
$2.50 per gallon, consumers will save $50 billion at the pump in 2018. 
By 2018, we would be cutting global warming pollution by 220 million 
metric tons of carbon dioxide equivalent gases.
  The Fuel Economy Reform Act also would provide fairness and 
flexibility to domestic automakers by establishing different standards 
for different types of cars. Currently, manufacturers have to meet 
broad standards over their whole fleet of cars. This disadvantages 
companies like Ford and General Motors that produce full lines of small 
and large cars and trucks rather than manufacturers that only sell 
small cars.
  In order to enable domestic manufacturers to develop advanced-
technology vehicles, this legislation provides tax incentives to retool 
parts and assembly plants. This will strengthen the U.S.

[[Page 15019]]

auto industry by allowing it to compete with foreign hybrid and other 
fuel efficient vehicles. It is our expectation that NHTSA will use its 
enhanced authority to bring greater market-based flexibility into CAFE 
compliance by allowing the banking and trading of credits among all 
vehicle types and between manufacturers.
  Finally, the bill also would expand the tax incentives that encourage 
consumers to buy advanced technology vehicles. The bill would lift the 
current 60,000-per-manufacturer cap on buyer tax credits to allow more 
Americans to buy ultra-efficient vehicles like hybrids.
  By ending a 20-year stalemate on CAFE, the Fuel Economy Reform Act 
will recapture the innovation that Congress and the auto industry 
launched in response to the OPEC crisis. In the process, we will 
safeguard our national security, protect our economy, reduce consumer 
pain at the pump, and protect our climate, environment, and public 
health. I urge my colleagues to join our bipartisan coalition and 
support the Fuel Economy Reform Act.
                                 ______
                                 
      By Mr. ROCKEFELLER (for himself, Mr. Schumer, and Mr. Leahy):
  S. 3695. A bill to amend the Federal Food, Drug, and Cosmetic Ad to 
prohibit the marketing of authorized generic drugs; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. ROCKEFELLER. Mr. President, I rise today with Senators Schumer 
and Leahy to introduce an important piece of legislation for seniors, 
individual with disabilities, children, and anyone who is taking a 
brand name prescription drug with a generic equivalent. The bill we are 
introducing today would outlaw the latest in a long line of loopholes 
that brand name manufacturers have found to limit generic drug access 
to the market.
  Our legislation would prohibit brand name manufacturers from 
introducing so-called ``authorized generics'' during the 180-day period 
that Congress intended true generics to have exclusive market rights. 
Some of my colleagues may be wondering what an ``authorized generic'' 
is.
  An authorized generic drug is a brand name prescription drug produced 
by the same brand manufacturer on the same manufacturing lines, yet 
repackaged as a generic in order to confuse consumers and shut true 
generics out of the market. This is a huge problem and one that is 
becoming even more prevalent as patents on some of the best-selling 
brand name pharmaceuticals start to expire.
  Pravachol, Zocor and Zoloft have patents that have expired or will 
expire this year. Together, these drugs account for approximately $9 
billion in sales annually. In 2007, another top-selling brand name 
drug, Norvasc, will lose its patent protection, followed by Advair the 
following year.
  When brand name drugs lose patent rights, this opens the door for 
consumers, employers, third-party payers, and other purchasers to save 
billions--between 50 and 80 percent on the costs of prescriptions--by 
using generic versions of these drugs. Brand name drug companies are 
expected to lose as much as $75 billion over the next 5 years as some 
of their best sellers go off-patent and generic competition increases. 
So, not surprisingly, these big pharmaceutical companies are 
desperately trying to protect their market share and prevent consumers 
from cashing in on savings from generic drugs.
  We have addressed this issue before. In 1984, Congress passed the 
Hatch-Waxman legislation to provide consumers greater access to lower 
cost generic drugs. The intent of this law was to improve generic 
competition, while preserving the ability of brand name manufacturers 
to discover and market new and innovative products. As part of this 
law, the first generic company on the market after challenging an 
expiring brand name patent is granted 180-days of exclusive market 
rights, which is just a fraction of the up to 20 years of exclusive 
market rights afforded brand companies.
  This 6-month incentive is crucial to maintaining the balance between 
encouraging brand drug companies to make new drugs and encouraging 
generic drug companies to make existing drugs more affordable. 
Challenging a brand name drug's patent takes time, money, and involves 
absorbing a great deal of risk. Generic drug companies rely on the 
added revenue provided by the l80-day exclusivity period to recoup 
their costs, fund new patent challenges where appropriate, and 
ultimately pass savings onto consumers.
  This latest attempt by big drug companies to protect their profits 
puts billions of dollars in savings for consumers in jeopardy. The bill 
we are introducing today eliminates the authorized generic loophole, 
protects the integrity of the 180 days, and improves consumer access to 
lower-cost generic drugs. I urge my colleagues to support this timely 
and important piece of legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3695

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

     SECTION 1. PROHIBITION OF AUTHORIZED GENERICS.

       Section 505 of the Federal Food, Drug, and Cosmetic Act (21 
     U.S.C. 355) is amended by adding at the end the following:
       ``(o) Prohibition of Authorized Generic Drugs.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, no holder of a new drug application approved under 
     subsection (c) shall manufacture, market, sell, or distribute 
     an authorized generic drug, direct or indirectly, or 
     authorize any other person to manufacture, market, sell, or 
     distribute an authorized generic drug.
       ``(2) Authorized generic drug.--For purposes of this 
     subsection, the term `authorized generic drug'--
       ``(A) means any version of a listed drug (as such term is 
     used in subsection (j)) that the holder of the new drug 
     application approved under subsection (c) for that listed 
     drug seeks to commence marketing, selling, or distributing, 
     directly or indirectly, after receipt of a notice sent 
     pursuant to subsection (j)(2)(B) with respect to that listed 
     drug; and
       ``(B) does not include any drug to be marketed, sold, or 
     distributed--
       ``(i) by an entity eligible for exclusivity with respect to 
     such drug under subsection (j)(5)(B)(iv); or
       ``(ii) after expiration or forfeiture of any exclusivity 
     with respect to such drug under such subsection 
     (j)(5)(B)(iv).''.

  Mr. LEAHY. Mr. President, recently I was pleased to introduce with 
Senators Kohl, Grassley and Schumer, the Preserve Access to Affordable 
Generics Act of 2006, S. 3582. That bill was designed to improve the 
timely and effective introduction of generic pharmaceuticals into the 
marketplace.
  It is no secret that prescription drug prices are rapidly increasing 
and are a source of considerable concern to many Americans, especially 
senior citizens and families. In a marketplace free of manipulation, 
generic drug prices can be as much as 80 percent lower than the 
comparable brand name version. Unfortunately, there are still some 
companies driven by greed that may be keeping low-cost, life-saving 
generic drugs off the marketplace, off pharmacy shelves, and out of the 
hands of consumers by carefully crafted anticompetitive agreements 
between drug manufacturers.
  In 2001, and last Congress, I introduced a related bill, the 
Competition Act. That bill, which is now law, is small in terms of 
length but large in terms of impact. It ensured that law enforcement 
agencies could take quick and decisive action against companies seeking 
to cheat consumers by delaying availability of generic medicines. It 
gave the Federal Trade Commission and the Justice Department access to 
information about secret deals between drug companies that keep generic 
drugs out of the market--a practice that not only hurts American 
families, particularly senior citizens, by denying them access to low-
cost generic drugs, but also contributes to rising medical costs.
  The Drug Competition Act, which was incorporated in the Medicare 
Modernization Act, was a bipartisan effort to protect consumers in need 
of patented medicines who were being forced

[[Page 15020]]

to pay considerably higher costs because of collusive secret deals 
designed. It is regrettable that we must come to the floor again today 
and take additional action to prevent drug companies from continuing to 
find and exploit loopholes.
  The bill I am introducing tonight with Senators Rockefeller and 
Schumer is very important. It will provide incentives for generic 
companies to make the investments needed to introduce low-cost generic 
medicines for all our citizens.
  The bill assures all Americans that the original intent of the Hatch-
Waxman law is carried out. That law was to provide incentives for 
generic companies to challenge the validity of patents on medicines and 
provide incentives for generic companies to manufacture low-cost 
medicines. That incentive was simple.
  Under Hatch-Waxman law, the first generic company, called the first-
filer, which successfully develops a generic version of a patented drug 
and meets certain other requirements, can get a 180-day exclusivity 
period to be the only generic company to have permission to make and 
sell that generic drug.
  That was called an exclusivity period because that is what the 
Congress intended--that generic company would have the exclusive right 
for 180 days to make the generic version of the patented medicine.
  The problem is that recently brand-name companies have been labeling 
their own patented drugs also as a generic version of itself, or 
licensing others to make it, and selling both the brand-name version 
and the so-called generic version. This undercuts the potential profits 
of the ``real'' generic company and denies them what the Hatch-Waxman 
law promised and for a long time delivered--an exclusivity period 
lasting up to 180 days.
  When the brand-name company offers a competing ``fake'' generic 
version of the drug, that can cut the profits of the real generic 
manufacturer greatly--thus making it less likely that a real generic 
company will even want to make the product.
  The Rockefeller bill prevents the brand-name company from doing that 
for the 180-day exclusivity period. I hope my colleagues will join me 
in supporting this effort.

                          ____________________