[Congressional Record (Bound Edition), Volume 152 (2006), Part 16]
[Senate]
[Pages 21564-21632]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. REID:
  S. 3994. A bill to extend the Iran and Libya Sanctions Act of 1996; 
read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3994

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
       Section 13(b) of the Iran and Libya Sanctions Act of 1996 
     (50 U.S.C. 1701 note) is amended by striking ``on September 
     29, 2006'' and inserting ``on November 17, 2006''.
                                 ______
                                 
      By Mr. DeMINT (for himself and Mr. Obama):
  S. 3995. A bill to provide education opportunity grants to low-income 
secondary school students; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. DeMINT. Mr. President, I rise to speak about legislation that I 
am introducing today along with the Senator from Illinois, Mr. Obama. 
At this time of year, with much bitter partisanship, I really am 
pleased to work with Senator Obama for something that we think is 
important to the country.
  The Education Opportunity Act is a bill that would significantly 
expand college-level opportunities for low-income high school students 
and teach these students that success in school can mean success in 
life.
  In the fast-paced, technologically advanced global economy of the 
21st century, old distinctions between high school and college are 
becoming obsolete. For our students to succeed in tomorrow's workplace, 
we must be innovative and allow more choices of study today.
  As we look toward reauthorizing No Child Left Behind, I believe it is 
important to examine what has worked and where students are still 
falling between the cracks. While we have expanded advanced placement 
classes, what we call AP classes, through the President's Advanced 
Placement Incentives Program, I believe we are missing another vital 
avenue to increase college-level opportunities for low-income students. 
That is why I am proud to work together with Senator Obama to establish 
education opportunity grants for high school students.
  Our bill is similar to the Federal Pell grant program, which funds 
need-based aid that does not have to be repaid by the students. These 
grants could be made available for classes at community colleges or 
universities that would admit a high school student to enroll in 
classes. These grant scholarships will help keep our high school 
students in school by raising their expectations and showing them that 
they can do college-level work. They could also accumulate college-
level credits while still in high school.
  Our national dropout rate is at record highs, and it is on the rise. 
In my own home State of South Carolina, high school students are 
dropping out at an alarming rate, with half of all students failing to 
complete high school in 4 years. It is no secret that most of these at-
risk students are from low-income families.
  Currently, there are only two ways high school students can gain 
college credit. They either take the AP classes at high school or 
participate in dual enrollment programs. Some high schools, 
particularly those with a high percentage of low-income students, are 
not able to offer advanced placement classes, and students are required 
to forgo college classes that they might want to take because their 
families can't afford to foot the bill. The result is that students 
with great promise who happen to come from disadvantaged families lose 
interest in a school that does not offer classes tailored to their 
talents and interests.
  Senator Obama and I believe if we expose students to the hundreds of 
classes available at their local colleges, some of which are listed on 
the chart behind me, many students who are not excited about high 
school world history classes will, instead, discover that they are 
interested in computer science or marketing and can learn a skill that 
they can see will directly apply to a future job.
  Make no mistake, traditional classes in biology, English, and history 
are important. But if a student drops out because they don't have the 
flexibility to also pursue more nontraditional avenues, those classes 
do not do them any good.
  Education opportunity grants are a cost-effective way to educate 
students by utilizing the preexisting infrastructure already available 
at local colleges. I believe this will show many students that a 
college degree is attainable and that they will be better prepared to 
start college or enter the workforce with marketable skills as a high 
school graduate.
  As I mentioned before, I believe it is critical that we do a better 
job accommodating the needs of all our students and continue to create 
opportunities for each young person to learn in ways that make sense to 
them and have direct application to their goals in life.
  This legislation is one more valuable option for our educational 
system to empower students and parents with choices and the ability to 
follow an educational path that meets their individual needs.
  It is time we stopped forcing our kids to fit our educational system 
and, instead, force our educational system to fit our kids. That is the 
only way that success in school will mean success in life.
  I thank Senator Obama and his great staff for working with my office 
on this important legislation, and I look forward to working with the 
Senator from Wyoming, Mr. Enzi, and the Senator from Massachusetts, 
Ranking Member Kennedy, to make this legislation a reality.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. ENZI. Mr. President, I ask unanimous consent the order for the 
quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. OBAMA. Mr. President, I rise today to join my colleague from 
South Carolina, Senator Jim DeMint, in introducing the Education 
Opportunity Act.
  We often hear that many students who graduate from high school are 
not ready for the academic rigors of college. This is especially 
problematic for students from low-income families. For these students 
to succeed in the transition to college, they must have opportunity, 
and a continuity of classroom

[[Page 21565]]

experiences that prepare them for success. Academic rigor in a high 
school curriculum is essential in establishing the momentum necessary 
for a student to progress toward a bachelor's degree.
  The unfortunate fact is that not all students have access to a 
challenging high school curriculum. Low-income students are often 
disadvantaged by a lack of rigorous courses in their high school, 
especially in subjects such as the advanced mathematics courses that 
are so important for college success. Universities and community 
colleges have increasingly provided such courses to high school 
students. But the cost of such classes can be a barrier to low-income 
students, who are the very students most likely to be enrolled in high 
schools that provide the most limited access to challenging college 
preparatory curricula.
  This legislation will provide a program for grant support to allow 
thousands of students with limited exposure to college-level programs 
in their high schools to earn college credit at their local university 
or community college. I urge my colleagues to join us in extending 
opportunities for college success to deserving low-income high school 
students.
                                 ______
                                 
      By Mr. FEINGOLD:
  S. 3998. A bill to amend the Servicemembers Civil Relief Act to 
provide relief for servicemembers with respect to contracts for 
cellular phone service, and for other purposes; to the Committee on 
Veterans' Affairs.
  Mr. FEINGOLD. Mr. President, today I introduce a bill that seeks to 
make life a little easier for our servicemembers and their families 
when they are called up to duty or transferred. We all recognize the 
heroic service the men and women in our armed services provide the 
Nation each day. So when I heard stories about servicemembers and their 
families in Wisconsin having trouble canceling their cell phone 
contracts after being called up, I looked for a way to help. With the 
prospect of a combat assignment, the last thing our men and women in 
uniform should have to worry about are early termination fees or being 
forced to pay for a service they cannot use. I tried to have this 
provision adopted as an amendment to the Defense authorization bill in 
June and, while I was unsuccessful, I will continue to push for the 
adoption of this commonsense measure.
  These problems with canceling cellular phone service have not been 
just isolated incidents. In fact, the issue has been raised by the 
Wisconsin National Guard. I ask unanimous consent that the full 
testimony of First Lieutenant Melissa Inlow of the Wisconsin Army 
National Guard made at a hearing on a Wisconsin State assembly bill in 
April be printed in the Record.
  I just want to highlight one part of that testimony that makes the 
point that this is a real issue facing our servicemembers: ``It's 
becoming increasingly difficult to get cell phone service providers to 
suspend the contract. Even with suspension the soldiers are still 
paying up to $25 a month for a service they cannot reap the benefits 
of. These fees can accumulate to more than the termination fee which on 
average is $200.'' First Lieutenant Inlow went on to specifically 
recommend that the Servicemembers' Civil Relief Act be amended to 
include a section on cellular phones.
  First Lieutenant Inlow and the Wisconsin National Guard are not alone 
in this opinion either. The National Guard Association of the United 
States, the Enlisted Association of the National Guard of the United 
States, and the Military Officers Association of America have all 
expressed support for my amendment--which is virtually identical to the 
legislation I introduce today.
  It is common now for cellular phone contracts to require a contract 
term of up to two years. Along with these long contracts, there are 
often early termination fees of several hundred dollars. When a 
National Guard member is called up to active duty or a soldier is 
transferred overseas or to a base that isn't covered by their current 
provider, they often face the prospect of either paying these 
significant fees or paying monthly fees for the remainder of the 
contract for a service they cannot use. While many servicemembers and 
their families have been able to work with telecommunications companies 
to eventually get the early termination fee canceled, the account 
suspended, or the fees reduced, they have enough to deal with after 
being called up that they should not have this added burden as well.
  My legislation proposes that we bring these cellular phone contracts 
in line with what we have already done for residential and automotive 
leases in the Servicemembers' Civil Relief Act--let the servicemembers 
cancel the contract. Under my proposal, if servicemembers are called up 
for more than 90 days, transferred overseas, or transferred to a U.S. 
duty station where they could not continue their service at the same 
rate, they could cancel their contract without a termination fee.
  While my legislation helps to prevent servicemembers from being 
financially punished for volunteering to protect this country, I have 
also tried to make sure that the telecommunications providers are 
treated fairly as well. That is why I have included a provision that 
would allow the providers to request the return of cell phones provided 
as part of the contract. If the company requests the return under this 
provision, it would also have to give the servicemember the option of 
paying a pro-rated amount for the cell phone should he or she wish to 
keep it. Moreover, if the provider and servicemember mutually agree to 
suspend instead of terminate the contract, the bill makes sure that the 
reactivation fee is waived.
  While this is a modest addition to the rights of servicemembers, it 
is important that we remove as many unfair burdens facing this 
country's men and women in uniform as we can. I hope my colleagues will 
share this view and quickly adopt this nonpartisan proposal.

Testimony for the Record of First Lieutenant Melissa Inlow at a Hearing 
           on Wisconsin Assembly Bill 1174 on April 17, 2006

       Thank you, chairman and members of the committee, for the 
     opportunity to speak. The Department of Military Affairs and 
     the Wisconsin National Guard is in support of senate bill 
     1174. I am First Lieutenant Melissa Inlow, a Judge Advocate 
     General Officer with the Wisconsin Army National Guard. By 
     granting servicemembers the right to terminate their cell 
     phone contracts upon mobilization, you are ensuring further 
     protections and peace of mind for our servicemembers. In 
     August of 2005, I was brought on to provide legal assistance 
     to our deployed servicemembers and their families. Since that 
     time, about 3-5 percent of my time has been dedicated to 
     assisting servicemembers in resolving issues with their cell 
     phone service contracts. It's becoming increasingly difficult 
     to get cell phone service providers to suspend the contract. 
     Even with suspension the soldiers are still paying up to $25 
     a month for service they cannot reap the benefits of. These 
     fees can accumulate to more than the termination fee which on 
     average is $200. I've found it very difficult and sometimes 
     impossible to reach a live person and very difficult to reach 
     a person with decision making authority. Each time I have had 
     to call a cellular phone service provider, I have talked to a 
     different customer service representative, and each has given 
     me a different resolution to the cell phone issue. The 
     companies are lacking significantly in internal consistency 
     when it comes to resolving cell phone contract issues. It has 
     been my experience that the customer service representatives 
     of cell phone companies experience high turn over rate and 
     are not aware of the wireless provider's policy on military 
     suspension. It is extremely frustrating for me; I can only 
     imagine the undue stress and strain it causes our deploying 
     servicemembers and their families that are left behind to 
     deal with these issues. This change will likely help ease the 
     stress deployment places on our servicemembers allowing them 
     to focus on their mission. I hope that the Federal Government 
     will follow suit and amend the Servicemember's Civil Relief 
     Act to incorporate a section on cell phone contracts.
                                 ______
                                 
      By Mr. LUGAR:
  S. 4000. A bill to amend the Internal Revenue Code of 1986 to modify 
the alcohol credit and the alternative fuel credit, to amend the Clean 
Air Act to promote the installation of fuel pumps for E-85 fuel, to 
amend title 49 of the United States Code to require the manufacture of 
dual fueled automobiles, and for other purposes; to the Committee on 
Finance.
  Mr. LUGAR. Mr. President, I rise to introduce the National Fuels 
Initiative

[[Page 21566]]

of 2006. This act presents to this Congress a plan to bring meaningful 
reductions in the amount of oil we consume in the United States and 
reduce our dependency on oil imports. Dependence on imported oil has 
put the United States in a position that no great power should 
tolerate. Our economic health is subject to forces far beyond our 
control, including the decisions of hostile countries. We maintain a 
massive military presence overseas, partly to preserve our oil 
lifeline. We have lost leverage on the international stage and are 
daily exacerbating the problem by participating in an enormous wealth 
transfer to authoritarian nations that happen to possess the commodity 
that our economy can least do without. The hundreds of billions of 
dollars we spend on oil imports each year weakens our economy, enriches 
hostile regimes, and is used by some to support terrorism.
  In the absence of revolutionary changes in energy policy, we are 
risking multiple disasters for our country that will constrain living 
standards, undermine our foreign policy goals, and leave us highly 
vulnerable to the machinations of rogue states. There are at least six 
threats posed by oil dependence. First oil is vulnerable to supply 
disruption as a result of natural disasters, wars, and terrorist 
attacks. Price shocks resulting from a major supply loss can put the 
U.S. economy into recession. Second, global oil reserves are becoming 
more limited as easy supply is depleted, global demand rapidly 
increases, and governments exert more control over reserves. This makes 
oil more expensive in the short term, and creates the prospect that 
supplies may not be accessible in the future. Third, some oil-rich 
nations are using energy as an overt weapon. Adversarial regimes from 
Venezuela, to Iran, to Russia are using energy supplies as leverage 
against their neighbors. Fourth, hundreds of billions of dollars in oil 
export revenues flowing to authoritarian regimes increase corruption 
and hurt democratic reform. Some oil-rich nations are using this money 
to invest in terrorism, instability, or demagogic appeals to populism. 
Fifth, the threat of global climate change has been made worse by 
inefficient and unclean use of non-renewable energy like oil. This 
could bring about drought, famine, disease, and mass migration. And 
finally, dependence on oil increases instability and undermines 
development in much of the developing world. Rising energy costs can 
undermine our foreign assistance and hurt stability, development, 
disease eradication, and efforts to combat the root causes of 
terrorism.
  The new geo-political reality emerging from the global energy 
situation and United States dependence on oil imports demand that we 
dramatically decrease the amount of oil we consume. In March 2006, I 
delivered an address at the Brookings Institution in which I described 
``a shifting balance of realism'' from those who believe in the 
immutability of oil's domination of our economy and a laissez faire 
approach to energy policy to those who recognize that our Nation has no 
choice but to seek a major reorientation in the way we get our energy. 
Marginally reducing our reliance on imported oil over the course of the 
next few decades via the slow progress of market forces will be 
welcome, but by the time a sustained energy crisis fully motivates 
market forces, we are likely to be well past the point where we can 
save ourselves from extensive suffering. We must respond to our energy 
vulnerability as a crisis. This is the very essence of a problem 
requiring Congressional action.
  The heart of America's geostrategic problem is reliance on imported 
oil in a market that is dominated by volatile and hostile governments. 
We can start to break petroleum's grip right now. The key is to replace 
oil used in transportation with renewable fuels and to improve the fuel 
efficiency of our cars and trucks.
  I outlined the 5 central components of this energy plan at the 
Richard G. Lugar--Purdue University Summit on Energy Security on August 
29th, 2006. First, this bill sets a goal for the United States to 
expand production of renewable fuels to at least 100 billion gallons a 
year by 2025. Some of this added production will come from current 
corn-based ethanol and biodiesel, but a great majority will be from 
emerging cellulosic technology allowing ethanol from diverse sources of 
renewable biomass. Second, virtually all new cars sold in America 
should be flex-fuel capable. These vehicles give Americans the choice 
to use E-85, a blend of 85 percent ethanol and 15 percent gasoline, or 
regular gasoline. This bill would require that virtually all vehicles 
would be manufactured as flexible fuel vehicles within ten years. This 
provision was also part of the Biomass Security Act of 2006 which I 
joined Senator Harkin in introducing earlier this year. Third, roughly 
25 percent of our nation's fueling stations should offer E-85 within 
the next ten years. This provision was also part of the Biomass 
Security Act of 2006. This will give consumers choice and help spur 
investment in renewable fuel production. Fourth, the bill would enact 
increased mileage standards that set a target of steadily improving 
fuel economy every year, as well as encourage research into new 
advanced technology vehicles such as hybrids and coal-based 
transportation fuels. I joined Senator Obama in introducing this 
provision earlier this year as the Fuel Economy Reform Act of 2006. 
Finally, the bill would establish a revolutionary variable alternative 
fuel tax credit to support growth of alternative fuel production. While 
this novel portion of the bill should be further debated and improved, 
its aim is to increase investment in cellulosic ethanol, coals to 
liquid, and other non-petroleum based fuels by reducing risks posed by 
oil price manipulation of foreign regimes.
  We must move now to address our energy vulnerability because 
sufficient investment cannot happen overnight, and it will take years 
to build supporting infrastructure and to change behavior. Americans 
need to know exactly what the plan is and how we will achieve it. We 
not only must understand how to bring alternatives to the market, we 
must establish what degree of change would improve our national 
security situation, then tailor national policy to achieve that goal. 
The energy plan presented in this bill is a package of proposals that 
would dramatically improve America's security posture. The plan would 
achieve the replacement of 6.5 million barrels of oil per day by 
volume--the rough equivalent of one third of the oil used in America 
and one half of our oil imports. It would provide more jobs for 
Americans instead of sending a deluge of money to hostile countries, 
support our farmers instead of foreign terrorists, and promote green 
fuels over fossil fuels.
  I ask unanimous consent that the full text of this 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. 4000

       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 ``National 
     Fuels Initiative''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Declaration of United States policy on the development and use 
              of renewable alternative fuels.
Sec. 4. Modification to alcohol credit and alternative fuel credit.
Sec. 5. Installation of E-85 fuel pumps by major oil companies at owned 
              stations and branded stations.
Sec. 6. Requirement to manufacture dual fueled automobiles.
Sec. 7. Definition of automobile.
Sec. 8. Average fuel economy standards.
Sec. 9. Credit trading and compliance.
Sec. 10. Consumer tax credit.
Sec. 11. Advanced technology motor vehicles manufacturing credit.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The national security and economic prosperity of the 
     United States is threatened by our oil dependence, and the 
     reliance of the United States on oil imports impinges on our 
     foreign policy. Adversarial regimes rich in oil and natural 
     gas are using their energy supplies as leverage against 
     import-dependent countries and are using increased revenues 
     from oil and gas exports to gain international influence, 
     fund anti-American appeals, entrench authoritarianism, and 
     support terrorism.

[[Page 21567]]

       (2) Global competition for oil reserves is increasing as 
     supply is depleted, demand increases, and foreign governments 
     attempt to exert more control over reserves. Supplies of oil 
     are vulnerable to disruption resulting from war, political 
     manipulation, natural disasters, and terrorist attacks. A 
     major loss in oil supply could result in a price shock 
     extremely damaging to the economy of the United States and 
     our way of life, and competition over scarce resources could 
     create conflict.
       (3) Inefficient and unclean use of oil damages the 
     environment and worsens the threat of global climate change.

     SEC. 3. DECLARATION OF UNITED STATES POLICY ON THE 
                   DEVELOPMENT AND USE OF RENEWABLE ALTERNATIVE 
                   FUELS.

       Congress declares that:
       (1) It is the policy of the United States to reduce 
     dependence on imported oil through increased efficiency and 
     diversification of fuel sources through dramatically expanded 
     use of clean alternative fuels. Such a reduction will 
     increase the foreign policy flexibility of the United States, 
     make the United States less vulnerable to oil supply 
     disruption, and promote economic growth. The United States 
     will continue to promote research and development of a range 
     of alternatives fuels, and it will implement policies to 
     accelerate the deployment and commercialization of existing 
     efficiency and alternative fuels technologies.
       (2) It is the policy goal of the United States to produce 
     and utilize the equivalent of at least 100,000,000,000 
     gallons of renewable fuel per year by 2025. This amount of 
     renewable fuel, along with innovation in fuel efficiency, 
     will substantially reduce the need for oil imports in the 
     United States.
       (3) It is the policy of the United States to promote the 
     development of a global biofuels market through partnerships 
     with other nations and to reduce trade barriers for renewable 
     fuels.

     SEC. 4. MODIFICATION TO ALCOHOL CREDIT AND ALTERNATIVE FUEL 
                   CREDIT.

       (a) Income Tax Credit for Alcohol.--
       (1) Rate based on price of oil.--Section 40 of the Internal 
     Revenue Code of 1986 (relating to alcohol used as fuel) is 
     amended by striking ``60 cents'' each place it appears and 
     inserting ``the applicable amount''.
       (2) Applicable amount.--Subsection (h) of section 40 of 
     such Code is amended to read as follows:
       ``(h) Applicable Amount.--
       ``(1) In general.--For purposes of this section, the term 
     `applicable amount' means, with respect to any quarter--
       ``(A) $.05 for each $1 (or any fraction thereof) by which 
     $45 exceeds--
       ``(i) in the case of the alcohol mixture credit, the 
     average price of a barrel of oil for the quarter during which 
     the qualified mixture in which the alcohol was used is sold 
     or used, and
       ``(ii) in the case of the alcohol credit, the average price 
     of a barrel of oil for the quarter during which the alcohol 
     was sold or used, and
       ``(B) $0 for any quarter in which the price of a barrel of 
     oil is greater than $45.
       ``(2) Determination of average price.--The average price of 
     a barrel of oil shall be determined under regulations 
     prescribed by the Secretary.
       ``(3) Barrel.--For purposes of this subsection, the term 
     `barrel' means 42 United States gallons.''.
       (3) Elimination of small ethanol producer credit.--
       (A) Section 40(a) of such Code is amended--
       (i) by striking ``, plus'' at the end of paragraph (2) and 
     inserting a period, and
       (ii) by striking paragraph (3).
       (B) Section 40(b) of such Code is amended by striking 
     paragraph (4) and by redesignating paragraph (5) as paragraph 
     (4).
       (C)(i) Section 40(d)(3) of such Code is amended by striking 
     subparagraph (C) and redesignating subparagraph (D) as 
     subparagraph (C).
       (ii) Section 40(d)(3)(C) of such Code, as redesignated by 
     clause (i), is amended by striking ``subparagraph (A), (B), 
     or (C)'' and inserting ``subparagraph (A) or (C)''.
       (D) Section 40 of such Code is amended by striking 
     subsection (g) and by redesignating subsection (h), as 
     amended by paragraph (2), as subsection (g).
       (4) Extension of credit.--Paragraph (1) of section 40(e) of 
     such Code is amended--
       (A) in subparagraph (A), by striking ``2010'' and inserting 
     ``2020'', and
       (B) in subparagraph (B), by striking ``2011'' and inserting 
     ``2021''.
       (5) Conforming amendment.--Section 40(b) of such Code, as 
     amended by subsection (a), is amended by striking paragraph 
     (3) and by redesignating paragraph (4) as paragraph (3).
       (b) Modifications to Excise Tax Credit and Payments for 
     Alcohol.--
       (1) In general.--Paragraph (2) of section 6426(b) of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount shall be the amount determined under 
     section 40(g).''.
       (2) Extension.--
       (A) Alcohol fuel mixture credit.--Paragraph (5) of section 
     6426(b) of such Code is amended by striking ``2010'' and 
     inserting ``2020''.
       (B) Payments.--Subparagraph (A) of section 6427(e)(5) of 
     such Code is amended by striking ``2010'' and inserting 
     ``2020''.
       (c) Modifications to Excise Tax and Payments for 
     Alternative Fuel.--
       (1) Alternative fuel credit.--
       (A) Rate.--
       (i) In general.--Paragraph (1) of section 6426(d) of the 
     Internal Revenue Code of 1986 is amended by striking ``50 
     cents'' and inserting ``the applicable amount''.
       (ii) Applicable amount.--Subsection (d) of section 6426 of 
     such Code is amended by redesignating paragraphs (2), (3), 
     and (4) as paragraphs (3), (4), and (5), respectively, and by 
     inserting after paragraph (1) the following new paragraph:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount shall be the amount determined under 
     section 40(g).''.
       (B) Extension.--Paragraph (5) of section 6426(d) of such 
     Code, as redesignated by paragraph (1), is amended by 
     striking ``2009 (September 30, 2014, in the case of any sale 
     or use involving liquified hydrogen)'' and inserting 
     ``2020''.
       (2) Alternative fuel mixture credit.--
       (A) Rate.--
       (i) In general.--Paragraph (1) of section 6426(e) of the 
     Internal Revenue Code of 1986 is amended by striking ``50 
     cents'' and inserting ``the applicable amount''.
       (ii) Applicable amount.--Subsection (e) of section 6426 of 
     such Code is amended by redesignating paragraphs (2) and (3) 
     as paragraphs (3) and (4), respectively, and by inserting 
     after paragraph (1) the following new paragraph:
       ``(2) Applicable amount.--For purposes of this subsection, 
     the applicable amount shall be the amount determined under 
     section 40(g).''.
       (B) Extension.--Paragraph (4) of section 6426(e) of such 
     Code, as redesignated by paragraph (1), is amended by 
     striking ``2009 (September 30, 2014, in the case of any sal 
     or use involving liquified hydrogen)'' and inserting 
     ``2020''.
       (3) Payments.--Paragraph (5) of section 6427(e) is amended 
     by inserting ``and'' at the end of subparagraph (B), by 
     striking subparagraphs (C) and (D), and by inserting after 
     subparagraph (B) the following:
       ``(C) any alternative fuel or alternative fuel mixture (as 
     defined in subsection (d)(3) or (e)(3) of section 6426) sold 
     or used after September 30, 2020.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel used or sold in quarters beginning after 
     the date of the enactment of this Act.

     SEC. 5. INSTALLATION OF E-85 FUEL PUMPS BY MAJOR OIL 
                   COMPANIES AT OWNED STATIONS AND BRANDED 
                   STATIONS.

       Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is 
     amended by adding at the end the following:
       ``(11) Installation of e-85 fuel pumps by major oil 
     companies at owned stations and branded stations.--
       ``(A) Definitions.--In this paragraph:
       ``(i) E-85 fuel.--The term `E-85 fuel' means a blend of 
     gasoline approximately 85 percent of the content of which is 
     derived from ethanol produced in the United States.
       ``(ii) Major oil company.--The term `major oil company' 
     means any person that, individually or together with any 
     other person with respect to which the person has an 
     affiliate relationship or significant ownership interest, has 
     not less than 4,500 retail station outlets according to the 
     latest publication of the Petroleum News Annual Factbook.
       ``(iii) Secretary.--The term `Secretary' means the 
     Secretary of Energy, acting in consultation with the 
     Administrator of the Environmental Protection Agency and the 
     Secretary of Agriculture.
       ``(B) Regulations.--The Secretary shall promulgate 
     regulations to ensure that each major oil company that sells 
     or introduces gasoline into commerce in the United States 
     through wholly-owned stations or branded stations installs or 
     otherwise makes available 1 or more pumps that dispense E-85 
     fuel (including any other equipment necessary, such as 
     including tanks, to ensure that the pumps function properly) 
     at not less than the applicable percentage of the wholly-
     owned stations and the branded stations of the major oil 
     company specified in subparagraph (C).
       ``(C) Applicable percentage.--For the purpose of 
     subparagraph (B), the applicable percentage of the wholly-
     owned stations and the branded stations shall be determined 
     in accordance with the following table:

  ``Applicable percentage of wholly-owned stations and branded stations
Calendar year:                                              (percent): 
  2008...........................................................5 ....

  2009..........................................................10 ....

  2010..........................................................15 ....

  2011..........................................................20 ....

  2012..........................................................25 ....

  2013..........................................................30 ....

  2014..........................................................35 ....

  2015..........................................................40 ....

  2016..........................................................45 ....

  2017 and each calendar year thereafter...............................

                                                                50.

[[Page 21568]]


       ``(D) Geographic distribution.--
       ``(i) In general.--Subject to clause (ii), in promulgating 
     regulations under subparagraph (B), the Secretary shall 
     ensure that each major oil company described in subparagraph 
     (B) installs or otherwise makes available 1 or more pumps 
     that dispense E-85 fuel at not less than a minimum percentage 
     (specified in the regulations) of the wholly-owned stations 
     and the branded stations of the major oil company in each 
     State.
       ``(ii) Requirement.--In specifying the minimum percentage 
     under clause (i), the Secretary shall ensure that each major 
     oil company installs or otherwise makes available 1 or more 
     pumps described in that clause in each State in which the 
     major oil company operates.
       ``(E) Financial responsibility.--In promulgating 
     regulations under subparagraph (B), the Secretary shall 
     ensure that each major oil company described in that 
     subparagraph assumes full financial responsibility for the 
     costs of installing or otherwise making available the pumps 
     described in that subparagraph and any other equipment 
     necessary (including tanks) to ensure that the pumps function 
     properly.
       ``(F) Production credits for exceeding e-85 fuel pumps 
     installation requirement.--
       ``(i) Earning and period for applying credits.--If the 
     percentage of the wholly-owned stations and the branded 
     stations of a major oil company at which the major oil 
     company installs E-85 fuel pumps in a particular calendar 
     year exceeds the percentage required under subparagraph (C), 
     the major oil company earns credits under this paragraph, 
     which may be applied to any of the 3 consecutive calendar 
     years immediately after the calendar year for which the 
     credits are earned.
       ``(ii) Trading credits.--Subject to clause (iii), a major 
     oil company that has earned credits under clause (i) may sell 
     credits to another major oil company to enable the purchaser 
     to meet the requirement under subparagraph (C).
       ``(iii) Exception.--A major oil company may not use credits 
     purchased under clause (ii) to fulfill the geographic 
     distribution requirement in subparagraph (D).''.

     SEC. 6. REQUIREMENT TO MANUFACTURE DUAL FUELED AUTOMOBILES.

       (a) Requirement.--
       (1) In general.--Chapter 329 of title 49, United States 
     Code, is amended by inserting after section 32902 the 
     following:

     ``Sec. 32902A. Requirement to manufacture dual fueled 
       automobiles

       ``(a) Requirement.--Each manufacturer of new automobiles 
     that are capable of operating on gasoline or diesel fuel 
     shall ensure that the percentage of such automobiles, 
     manufactured in any model year after model year 2007 and 
     distributed in commerce for sale in the United States, which 
     are dual fueled automobiles is equal to not less than the 
     applicable percentage set forth in the following table:
           The percentage of dual fueled automobiles manufactured shall
``For the model year:                                 be not less than:
  2008.......................................................10 percent
  2009.......................................................20 percent
  2010.......................................................30 percent
  2011.......................................................40 percent
  2012.......................................................50 percent
  2013.......................................................60 percent
  2014.......................................................70 percent
  2015.......................................................80 percent
  2016.......................................................90 percent
  2017 and beyond...........................................100 percent

       ``(b) Production Credits for Exceeding Flexible Fuel 
     Automobile Production Requirement.--
       ``(1) Earning and period for applying credits.--If the 
     number of dual fueled automobiles manufactured by a 
     manufacturer in a particular model year exceeds the number 
     required under subsection (a), the manufacturer earns credits 
     under this section, which may be applied to any of the 3 
     consecutive model years immediately after the model year for 
     which such credits are earned.
       ``(2) Trading credits.--A manufacturer that has earned 
     credits under paragraph (1) may sell credits to another 
     manufacturer to enable the purchaser to meet the requirement 
     under subsection (a).''.
       (2) Technical amendment.--The table of sections for chapter 
     329 of title 49, United States Code, is amended by inserting 
     after the item relating to section 32902 the following:

``32902A. Requirement to manufacture dual fueled automobiles.''.

       (b) Activities to Promote the Use of Certain Alternative 
     Fuels.--The Secretary of Transportation shall carry out 
     activities to promote the use of fuel mixtures containing 
     gasoline or diesel fuel and 1 or more alternative fuels, 
     including a mixture containing at least 85 percent of 
     methanol, denatured ethanol, and other alcohols by volume 
     with gasoline or other fuels, to power automobiles in the 
     United States.

     SEC. 7. DEFINITION OF AUTOMOBILE.

       (a) In General.--Section 32901(a)(3) of title 49, United 
     States Code, is amended by striking ``rated at--'' and all 
     that follows through the period at the end and inserting 
     ``rated at not more than 10,000 pounds gross vehicle 
     weight.''.
       (b) Fuel Economy Information.--Section 32908(a) of title 
     49, United States Code, is amended, by striking ``section--'' 
     and all that follows through ``(2)'' and inserting ``section, 
     the term''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to model year 2009 and each subsequent model 
     year.

     SEC. 8. AVERAGE FUEL ECONOMY STANDARDS.

       (a) Standards.--Section 32902 of title 49, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in the header, by inserting ``Manufactured Before Model 
     Year 2012'' after ``Non-Passenger Automobiles''; and
       (B) by adding at the end the following: ``This subsection 
     shall not apply to automobiles manufactured after model year 
     2011.'';
       (2) in subsection (b)--
       (A) in the header, by inserting ``Manufactured Before Model 
     Year 2012'' after ``Passenger Automobiles'';
       (B) by inserting ``and before model year 2009'' after 
     ``1984''; and
       (C) by adding at the end the following: ``Such standard 
     shall be increased by 4 percent per year for model years 2009 
     through 2011 (rounded to the nearest 1/10 mile per gallon)'';
       (3) by amending subsection (c) to read as follows:
       ``(c) Automobiles Manufactured After Model Year 2011.--(1) 
     Not later than 18 months before the beginning of each model 
     year after model year 2011, the Secretary of Transportation 
     shall prescribe, by regulation--
       ``(A) an average fuel economy standard for automobiles 
     manufactured by a manufacturer in that model year; or
       ``(B) based on 1 or more vehicle attributes that relate to 
     fuel economy--
       ``(i) separate standards for different classes of 
     automobiles; or
       ``(ii) standards expressed in the form of a mathematical 
     function.
       ``(2)(A) Except as provided under paragraphs (3) and (4) 
     and subsection (d), standards under paragraph (1) shall 
     attain a projected aggregate level of average fuel economy of 
     27.5 miles per gallon for all automobiles manufactured by all 
     manufacturers for model year 2012.
       ``(B) The projected aggregate level of average fuel economy 
     for model year 2013 and each succeeding model year shall be 
     increased by 4 percent from the level for the prior model 
     year (rounded to the nearest 1/10 mile per gallon).
       ``(C) Notwithstanding subparagraphs (A) and (B), the 
     fleetwide average fuel economy standard for passenger 
     automobiles manufactured by a manufacturer in a model year 
     for that manufacturer's domestic fleet and for its foreign 
     fleet as calculated under section 32904 as in effect before 
     the date of enactment of the National Fuels Initiative shall 
     not be less than 92 percent of the average fuel economy 
     projected by the Secretary for the combined domestic and 
     foreign fleets manufactured by all manufacturers in that 
     model year.
       ``(3) If the actual aggregate level of average fuel economy 
     achieved by manufacturers for each of 3 consecutive model 
     years is at least 5 percent less than the projected aggregate 
     level of average fuel economy for such model year, the 
     Secretary shall make appropriate adjustments to the standards 
     prescribed under this subsection.
       ``(4)(A) Notwithstanding paragraphs (1) through (3) and 
     subsection (b), the Secretary of Transportation may prescribe 
     a lower average fuel economy standard for 1 or more model 
     years if the Secretary of Transportation, in consultation 
     with the Secretary of Energy, determines that the minimum 
     standards prescribed under paragraph (2) or (3) or subsection 
     (b) for each model year--
       ``(i) are technologically unachievable;
       ``(ii) cannot be achieved without materially reducing the 
     overall safety of automobiles manufactured or sold in the 
     United States; or
       ``(iii) is shown, by clear and convincing evidence, not to 
     be cost effective.
       ``(B) If a lower standard is prescribed for a model year 
     under subparagraph (A), such standard shall be the maximum 
     standard that--
       ``(i) is technologically achievable;
       ``(ii) can be achieved without materially reducing the 
     overall safety of automobiles manufactured or sold in the 
     United States; and
       ``(iii) is cost effective.
       ``(5) In determining cost effectiveness under paragraph 
     (4)(A)(iii), the Secretary of Transportation shall take into 
     account the total value to the Nation of reduced petroleum 
     use, including the value of reducing external costs of 
     petroleum use, using a value for such costs equal to 50 
     percent of the value of a gallon of gasoline saved or the 
     amount determined in an analysis of the external costs of 
     petroleum use that considers--
       ``(A) value to consumers;
       ``(B) economic security;

[[Page 21569]]

       ``(C) national security;
       ``(D) foreign policy;
       ``(E) the impact of oil use--
       ``(i) on sustained cartel rents paid to foreign suppliers;
       ``(ii) on long-run potential gross domestic product due to 
     higher normal-market oil price levels, including inflationary 
     impacts;
       ``(iii) on import costs, wealth transfers, and potential 
     gross domestic product due to increased trade imbalances;
       ``(iv) on import costs and wealth transfers during oil 
     shocks;
       ``(v) on macroeconomic dislocation and adjustment costs 
     during oil shocks;
       ``(vi) on the cost of existing energy security policies, 
     including the management of the Strategic Petroleum Reserve;
       ``(vii) on the timing and severity of the oil peaking 
     problem;
       ``(viii) on the risk, probability, size, and duration of 
     oil supply disruptions;
       ``(ix) on OPEC strategic behavior and long-run oil pricing;
       ``(x) on the short term elasticity of energy demand and the 
     magnitude of price increases resulting from a supply shock;
       ``(xi) on oil imports, military costs, and related security 
     costs, including intelligence, homeland security, sea lane 
     security and infrastructure, and other military activities;
       ``(xii) on oil imports, diplomatic and foreign policy 
     flexibility, and connections to geopolitical strife, 
     terrorism, and international development activities;
       ``(xiii) all relevant environmental hazards under the 
     jurisdiction of the Environmental Protection Agency; and
       ``(xiv) on well-to-wheels urban and local air emissions of 
     `pollutants' and their uninternalized costs;
       ``(F) the impact of the oil or energy intensity of the 
     United States economy on the sensitivity of the economy to 
     oil price changes, including the magnitude of gross domestic 
     product losses in response to short term price shocks or long 
     term price increases;
       ``(G) the impact of United States payments for oil imports 
     on political, economic, and military developments in unstable 
     or unfriendly oil exporting countries;
       ``(H) the uninternalized costs of pipeline and storage oil 
     seepage, and for risk of oil spills from production, 
     handling, and transport, and related landscape damage; and
       ``(I) additional relevant factors, as determined by the 
     Secretary.
       ``(6) When considering the value to consumers of a gallon 
     of gasoline saved, the Secretary of Transportation may not 
     use a value less than the greatest of--
       ``(A) the average national cost of a gallon of gasoline 
     sold in the United States during the 12-month period ending 
     on the date on which the new fuel economy standard is 
     proposed;
       ``(B) the most recent weekly estimate by the Energy 
     Information Administration of the Department of Energy of the 
     average national cost of a gallon of gasoline (all grades) 
     sold in the United States; or
       ``(C) the gasoline prices projected by the Energy 
     Information Administration for the 20-year period beginning 
     in the year following the year in which the standards are 
     established.
       ``(7) In prescribing standards under this subsection, the 
     Secretary may prescribe standards for 1 or more model years.
       ``(8)(A) Not later than December 31, 2016, the Secretary of 
     Transportation, the Secretary of Energy, and the 
     Administrator of the Environmental Protection Agency shall 
     submit a joint report to Congress on the state of global 
     automotive efficiency technology development, and on the 
     accuracy of tests used to measure fuel economy of automobiles 
     under section 32904(c), utilizing the study and assessment of 
     the National Academy of Sciences referred to in subparagraph 
     (B).
       ``(B) The Secretary shall enter into appropriate 
     arrangements with the National Academy of Sciences to conduct 
     a comprehensive study of the technological opportunities to 
     enhance fuel economy and an analysis and assessment of the 
     accuracy of fuel economy tests used by the Administrator of 
     the Environmental Protection Agency to measure fuel economy 
     for each model under section 32904(c). Such analysis and 
     assessment shall identify any additional factors or methods 
     that should be included in tests to measure fuel economy for 
     each model to more accurately reflect actual fuel economy of 
     automobiles. The Secretary and the Administrator of the 
     Environmental Protection Agency shall furnish, at the request 
     of the Academy, any information which the Academy determines 
     to be necessary to conduct the study, analysis, and 
     assessment under this subparagraph.
       ``(C) The report submitted under subparagraph (A) shall 
     include--
       ``(i) the study of the National Academy of Sciences 
     referred to in subparagraph (B); and
       ``(ii) an assessment by the Secretary of technological 
     opportunities to enhance fuel economy and opportunities to 
     increase overall fleet safety.
       ``(D) The report submitted under subparagraph (A) shall 
     identify and examine additional opportunities to reform the 
     regulatory structure under this chapter, including approaches 
     that seek to merge vehicle and fuel requirements into a 
     single system that achieves equal or greater reduction in 
     petroleum use and environmental benefits.
       ``(E) The report submitted under subparagraph (A) shall--
       ``(i) include conclusions reached by the Administrator of 
     the Environmental Protection Agency, as a result of detailed 
     analysis and public comment, on the accuracy of current fuel 
     economy tests;
       ``(ii) identify any additional factors that the 
     Administrator determines should be included in tests to 
     measure fuel economy for each model to more accurately 
     reflect actual fuel economy of automobiles; and
       ``(iii) include a description of options, formulated by the 
     Secretary and the Administrator, to incorporate such 
     additional factors in fuel economy tests in a manner that 
     will not effectively increase or decrease average fuel 
     economy for any automobile manufacturer.
       ``(F) There is authorized to be appropriated to the 
     Secretary such amounts as are required to carry out the 
     study, analysis, and assessment required by subparagraph 
     (B).''; and
       (4) in subsection (g)(2), by striking ``(and submit the 
     amendment to Congress when required under subsection (c)(2) 
     of this section)''.
       (b) Conforming Amendments.--
       (1) In general.--Chapter 329 of title 49, United States 
     Code, is amended--
       (A) in section 32903--
       (i) by striking ``passenger'' each place it appears;
       (ii) by striking ``section 32902(b)-(d) of this title'' 
     each place it appears and inserting ``subsection (c) or (d) 
     of section 32902'';
       (iii) by striking subsection (e); and
       (iv) by redesignating subsection (f) as subsection (e); and
       (B) in section 32904(a)--
       (i) by striking ``passenger'' each place it appears; and
       (ii) in paragraph (1), by striking ``subject to'' and all 
     that follows through ``section 32902(b)-(d) of this title'' 
     and inserting ``subsection (c) or (d) of section 32902''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to automobiles manufactured after model year 
     2011.

     SEC. 9. CREDIT TRADING AND COMPLIANCE.

       (a) Credit Trading.--Section 32903(a) of title 49, United 
     States Code, is amended--
       (1) by inserting ``Credits earned by a manufacturer under 
     this section may be sold to any other manufacturer and used 
     as if earned by that manufacturer; except that credits earned 
     by a manufacturer described in section 32904(b)(1)(A)(i) may 
     not be sold to or purchased by a manufacturer described in 
     32904(b)(1)(A)(ii),'' after ``earns credits.''; and
       (2) by striking ``3 consecutive model years immediately'' 
     each place it appears and inserting ``model years''.
       (b) Treatment of Imports.--
       (1) Conforming amendment.--Section 32904(b) is amended by 
     striking ``passenger'' each place it appears.
       (2) Applicability.--The amendments made by paragraph (1) 
     shall apply to automobiles manufactured after model year 
     2011.
       (c) Multi-Year Compliance Period.--Section 32904(c) of such 
     title is amended--
       (1) by inserting ``(1)'' before ``The Administrator''; and
       (2) by adding at the end the following:
       ``(2) The Secretary, by rule, may allow a manufacturer to 
     elect a multi-year compliance period of not more than 4 
     consecutive model years in lieu of the single model year 
     compliance period otherwise applicable under this chapter.''.

     SEC. 10. CONSUMER TAX CREDIT.

       (a) Elimination on Number of New Qualified Hybrid and 
     Advanced Lean Burn Technology Vehicles Eligible for 
     Alternative Motor Vehicle Credit.--
       (1) In general.--Section 30B of the Internal Revenue Code 
     of 1986 is amended--
       (A) by striking subsection (f); and
       (B) by redesignating subsections (g) through (j) as 
     subsections (f) through (i), respectively.
       (2) Conforming amendments.--
       (A) Paragraphs (4) and (6) of section 30B(h) of such Code 
     are each amended by striking ``(determined without regard to 
     subsection (g))'' and inserting ``determined without regard 
     to subsection (f))''.
       (B) Section 38(b)(25) of such Code is amended by striking 
     ``section 30B(g)(1)'' and inserting ``section 30B(f)(1)''.
       (C) Section 55(c)(2) of such Code is amended by striking 
     ``section 30B(g)(2)'' and inserting ``section 30B(f)(2)''.
       (D) Section 1016(a)(36) of such Code is amended by striking 
     ``section 30B(h)(4)'' and inserting ``section 30B(g)(4)''.
       (E) Section 6501(m) of such Code is amended by striking 
     ``section 30B(h)(9)'' and inserting ``section 30B(g)(9)''.
       (b) Extension of Alternative Vehicle Credit for New 
     Qualified Hybrid Motor Vehicles.--Paragraph (3) of section 
     30B(i) of such Code (as redesignated by subsection (a)) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2005, in taxable years ending after such date.

     SEC. 11. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal

[[Page 21570]]

     Revenue Code of 1986 (relating to foreign tax credit, etc.) 
     is amended by adding at the end the following new section:

     ``SEC. 30D. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING 
                   CREDIT.

       ``(a) Credit Allowed.--There shall be allowed as a credit 
     against the tax imposed by this chapter for the taxable year 
     an amount equal to 35 percent of the qualified investment of 
     an eligible taxpayer for such taxable year.
       ``(b) Qualified Investment.--For purposes of this section--
       ``(1) In general.--The qualified investment for any taxable 
     year is equal to the incremental costs incurred during such 
     taxable year--
       ``(A) to re-equip, expand, or establish any manufacturing 
     facility in the United States of the eligible taxpayer to 
     produce advanced technology motor vehicles or to produce 
     eligible components,
       ``(B) for engineering integration performed in the United 
     States of such vehicles and components as described in 
     subsection (d),
       ``(C) for research and development performed in the United 
     States related to advanced technology motor vehicles and 
     eligible components, and
       ``(D) for employee retraining with respect to the 
     manufacturing of such vehicles or components (determined 
     without regard to wages or salaries of such retrained 
     employees).
       ``(2) Attribution rules.--In the event a facility of the 
     eligible taxpayer produces both advanced technology motor 
     vehicles and conventional motor vehicles, or eligible and 
     non-eligible components, only the qualified investment 
     attributable to production of advanced technology motor 
     vehicles and eligible components shall be taken into account.
       ``(c) Definitions.--In this section:
       ``(1) Advanced technology motor vehicle.--The term 
     `advanced technology motor vehicle' means--
       ``(A) any qualified electric vehicle (as defined in section 
     30(c)(1)),
       ``(B) any new qualified fuel cell motor vehicle (as defined 
     in section 30B(b)(3)),
       ``(C) any new advanced lean burn technology motor vehicle 
     (as defined in section 30B(c)(3)),
       ``(D) any new qualified hybrid motor vehicle (as defined in 
     section 30B(d)(2)(A) and determined without regard to any 
     gross vehicle weight rating),
       ``(E) any new qualified alternative fuel motor vehicle (as 
     defined in section 30B(e)(4), including any mixed-fuel 
     vehicle (as defined in section 30B(e)(5)(B)), and
       ``(F) any other motor vehicle using electric drive 
     transportation technology (as defined in paragraph (3)).
       ``(2) Electric drive transportation technology.--The term 
     `electric drive transportation technology' means technology 
     used by vehicles that use an electric motor for all or part 
     of their motive power and that may or may not use off-board 
     electricity, such as battery electric vehicles, fuel cell 
     vehicles, engine dominant hybrid electric vehicles, plug-in 
     hybrid electric vehicles, and plug-in hybrid fuel cell 
     vehicles.
       ``(3) Eligible components.--The term `eligible component' 
     means any component inherent to any advanced technology motor 
     vehicle, including--
       ``(A) with respect to any gasoline or diesel-electric new 
     qualified hybrid motor vehicle--
       ``(i) electric motor or generator;
       ``(ii) power split device;
       ``(iii) power control unit;
       ``(iv) power controls;
       ``(v) integrated starter generator; or
       ``(vi) battery;
       ``(B) with respect to any hydraulic new qualified hybrid 
     motor vehicle--
       ``(i) accumulator or other energy storage device;
       ``(ii) hydraulic pump;
       ``(iii) hydraulic pump-motor assembly;
       ``(iv) power control unit; and
       ``(v) power controls;
       ``(C) with respect to any new advanced lean burn technology 
     motor vehicle--
       ``(i) diesel engine;
       ``(ii) turbo charger;
       ``(iii) fuel injection system; or
       ``(iv) after-treatment system, such as a particle filter or 
     NOx absorber; and
       ``(D) with respect to any advanced technology motor 
     vehicle, any other component submitted for approval by the 
     Secretary.
       ``(4) Eligible taxpayer.--The term `eligible taxpayer' 
     means any taxpayer if more than 20 percent of the taxpayer's 
     gross receipts for the taxable year is derived from the 
     manufacture of motor vehicles or any component parts of such 
     vehicles.
       ``(d) Engineering Integration Costs.--For purposes of 
     subsection (b)(1)(B), costs for engineering integration are 
     costs incurred prior to the market introduction of advanced 
     technology vehicles for engineering tasks related to--
       ``(1) establishing functional, structural, and performance 
     requirements for component and subsystems to meet overall 
     vehicle objectives for a specific application,
       ``(2) designing interfaces for components and subsystems 
     with mating systems within a specific vehicle application,
       ``(3) designing cost effective, efficient, and reliable 
     manufacturing processes to produce components and subsystems 
     for a specific vehicle application, and
       ``(4) validating functionality and performance of 
     components and subsystems for a specific vehicle application.
       ``(e) Limitation Based on Amount of Tax.--The credit 
     allowed under subsection (a) for the taxable year shall not 
     exceed the excess of--
       ``(1) the sum of--
       ``(A) the regular tax liability (as defined in section 
     26(b)) for such taxable year, plus
       ``(B) the tax imposed by section 55 for such taxable year 
     and any prior taxable year beginning after 1986 and not taken 
     into account under section 53 for any prior taxable year, 
     over
       ``(2) the sum of the credits allowable under subpart A and 
     sections 27, 30, and 30B for the taxable year.
       ``(f) Reduction in Basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(g) No Double Benefit.--
       ``(1) Coordination with other deductions and credits.--
     Except as provided in paragraph (2), the amount of any 
     deduction or other credit allowable under this chapter for 
     any cost taken into account in determining the amount of the 
     credit under subsection (a) shall be reduced by the amount of 
     such credit attributable to such cost.
       ``(2) Research and development costs.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any amount described in subsection (b)(1)(C) taken into 
     account in determining the amount of the credit under 
     subsection (a) for any taxable year shall not be taken into 
     account for purposes of determining the credit under section 
     41 for such taxable year.
       ``(B) Costs taken into account in determining base period 
     research expenses.--Any amounts described in subsection 
     (b)(1)(C) taken into account in determining the amount of the 
     credit under subsection (a) for any taxable year which are 
     qualified research expenses (within the meaning of section 
     41(b)) shall be taken into account in determining base period 
     research expenses for purposes of applying section 41 to 
     subsequent taxable years.
       ``(h) Business Carryovers Allowed.--If the credit allowable 
     under subsection (a) for a taxable year exceeds the 
     limitation under subsection (e) for such taxable year, such 
     excess (to the extent of the credit allowable with respect to 
     property subject to the allowance for depreciation) shall be 
     allowed as a credit carryback to each of the 15 taxable years 
     immediately preceding the unused credit year and as a 
     carryforward to each of the 20 taxable years immediately 
     following the unused credit year.
       ``(i) Special Rules.--For purposes of this section, rules 
     similar to the rules of section 179A(e)(4) and paragraphs (1) 
     and (2) of section 41(f) shall apply
       ``(j) Election Not to Take Credit.--No credit shall be 
     allowed under subsection (a) for any property if the taxpayer 
     elects not to have this section apply to such property.
       ``(k) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out the provisions of this 
     section.
       ``(l) Termination.--This section shall not apply to any 
     qualified investment after December 31, 2010.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the 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 30D(g).''.
       (2) Section 6501(m) of such Code is amended by inserting 
     ``30D(k),'' after ``30C(e)(5),''.
       (3) The table of sections for subpart B of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 30C the 
     following new item:

``Sec. 30D. Advanced technology motor vehicles manufacturing credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts incurred in taxable years beginning 
     after December 31, 1999.
                                 ______
                                 
      By Mr. HARKIN (for himself and Mr. Lugar):
  S. 4003. A bill to require the Secretary of Energy to award funds to 
study the feasibility of constructing 1 or more dedicated ethanol 
pipelines to increase the energy, economic, and environmental security 
of the United States, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. HARKIN. Mr. President, today I am introducing the Ethanol 
Infrastructure Expansion Act of 2006. This bill directs the Department 
of Energy, DOE, to study and evaluate the feasibility of transporting 
ethanol by pipeline. I am pleased that my colleague, Senator Lugar of 
Indiana, is joining me as a cosponsor of this bill.

[[Page 21571]]

  There is broad recognition that we need to reduce our almost-complete 
dependence on oil for energy in our transportation sector. We also 
understand that there is not a single, simple solution to this 
dependence. I believe that we need to use energy more efficiently and 
promote alternatives to oil-based fuels in transportation.
  The most promising liquid fuel alternative to conventional gasoline 
today is ethanol. Use of ethanol as an additive in gasoline and in the 
form of E85 is expanding rapidly, and for good reasons. First of all, 
as a domestically- produced fuel, ethanol contributes to our national 
energy security. As a gasoline additive, ethanol provides air quality 
benefits by reducing auto tailpipe emissions of air pollutants. Because 
ethanol is biodegradable, its use poses no threat to surface water or 
groundwater. Finally, the production of ethanol provides national and 
regional economic and job-growth benefits by using local resources and 
labor to contribute to critical national transportation energy needs,
  My Congressional colleagues and I have recognized the benefits and 
potential of ethanol and have promoted its expanded production and use 
in numerous bills, including most recently in the 2005 energy bill. A 
key provision in that legislation is the renewable fuels standard under 
which motor vehicle fuel sold in the United States is required to 
contain increasing levels of renewable fuels. Several other provisions 
promote the production and use of ethanol from cellulose, which is an 
especially attractive approach because it enables the use of a broad 
variety of plentiful and low-cost feedstocks including corn stover, 
wheat straw, forest industry wastes and woody municipal wastes.
  The benefits of ethanol are reflected in the rapid expansion of its 
production and use, which has increased by more than 20 percent 
annually for the past several years. Moreover, ethanol's longer-term 
potential to become a very significant energy source for transportation 
also is gaining attention. A number of studies have concluded that 
ethanol can contribute 20 to 30 percent or more of our transportation 
fuel in the future. Several of my Senate colleagues joined me to 
introduce S. 2817, the Biofuels Security Act of 2006 which calls for 
domestic production and use of renewable fuels to reach 60 billion 
gallons a year by 2030. I am especially proud of the leadership role 
that my State of Iowa and the neighboring states of the Midwest are 
going to play in this expansion.
  Given this outlook, it is time for us to consider the full 
implications of such a transition. One issue that deserves prompt 
attention is that of ethanol transport. The volumes of ethanol to be 
shipped in the future strongly suggest that pipeline transport should 
be evaluated because of the potential economic and environmental 
advantages that alternative might offer as compared to shipment by 
highway, rail tanker or barge. As production volumes increase, 
especially in the Midwest, it is likely to be more economical to pump 
ethanol through pipelines than to ship it in containers across the 
country. Pipeline shipping also would reduce the vehicle emissions 
associated with rail or tanker shipment, as well as being more energy 
efficient.
  For all of these reasons, we should begin to consider development of 
an ethanol pipeline network. Given the pace of ethanol's growth, it is 
likely that our Nation could begin to benefit from pipeline transport 
of ethanol as early as the 2015 to 2020 timeframe. The current state of 
knowledge regarding transport of ethanol by pipeline is limited. 
However, it is being done in Brazil, a world leader in the production 
and use of ethanol. Still, it is also known that the water solubility 
of ethanol introduces technical and operational issues bearing on 
shipment of ethanol in multi-product pipelines. Thus, the planning, 
siting, design, financing, permitting and construction of the first 
ethanol pipelines may well take as long as a decade, perhaps longer. 
For that reason, we need to begin now to develop a better understanding 
of this ethanol transport option.
  This bill initiates that process by directing the Department of 
Energy to conduct ethanol pipeline feasibility studies. It calls for 
analyses of the technological, economic, regulatory, financial and 
siting issues related to transporting ethanol via pipelines. A 
systematic analysis of these ethanol pipeline issues will provide the 
substantive information necessary for assessing the costs and benefits 
of this transport alternative. DOE would either fund private sector 
studies or conduct the studies on its own. The results of these studies 
will provide a clearer picture of the benefits and challenges of 
pipeline transport of ethanol. They will provide critical information, 
both for the ethanol industry as it contemplates ethanol transport 
alternatives, and for policy-makers seeking to understand what federal 
policies or programs might be appropriate to promote the most cost-
effective and environmentally sound ethanol transportation in the 
future.
  We have broad agreement on the need to do all that we can to reduce 
our dependence on oil. We are promoting expanding production and use of 
renewable fuels in many ways, but we need to consider the full range of 
infrastructure issues that broader ethanol use entails. Because of the 
rapid growth of ethanol production and use, these studies of pipeline 
transport of ethanol should be undertaken in the very near future. I 
urge my Senate colleagues to join me in passing this important and 
timely legislation.
                                 ______
                                 
      By Mr. DeWINE (for himself and Mr. Voinovich):
  S. 4004. A bill to suspend temporarily in the duty on certain 
structures, parts, and components for use in an isotopic separation 
facility in southern Ohio; to the Committee on Finance.
  Mr. DeWINE. 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. 4004

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

     SECTION 1. CERTAIN STRUCTURES, PARTS, AND COMPONENTS FOR USE 
                   IN AN ISOTOPIC SEPARATION FACILITY IN SOUTHERN 
                   OHIO.

       (a) In General.--Subchapter II of chapter 99 of the 
     Harmonized Tariff Schedule of the United States is amended by 
     inserting in numerical sequence the following new heading:


``   9902.13.75     Certain           Free           No change      No change      On or before 12/31/2009
                     structures,                                                                              ''
                     parts, and                                                                                .
                     components for
                     use in an
                     isotopic
                     separation
                     facility
                     (isotopic
                     separation
                     equipment)
                     consisting of
                     cold boxes,
                     feed ovens, and
                     feed
                     purification
                     systems,
                     including their
                     associated
                     cooling
                     systems,
                     control
                     systems,
                     weighing
                     systems, and
                     cylinder
                     handling
                     systems, for
                     the
                     construction of
                     an isotopic
                     separation
                     facility in
                     southern Ohio
                     known as the
                     ``American
                     Centrifuge
                     Plant''
                     (provided for
                     in subheading
                     8401.20.00).
----------------------------------------------------------------------------------------------------------------

       (b) Effective Date.--The amendment made by subsection (a) 
     applies to goods entered, or withdrawn from warehouse for 
     consumption, on or after the 15th day after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. DOMENICI:
  S. 4007. A bill to authorize the Secretary of the Interior to conduct 
feasibility studies to identify opportunities to increase the surface 
flows of the Rio Grande, Canadian, and Pecos Rivers in the State of New 
Mexico, and for other purposes; to the Committee on Energy and Natural 
Resources.
  Mr. DOMENICI. Mr. President, monsoons this summer provided New Mexico 
with a brief reprieve from drought conditions that have persisted in 
some areas of New Mexico since 2000. We would be remiss to let our 
recent good fortune influence our long-term water planning. July and 
August this year were the wettest July and August in the past 112 
years. Clearly, we cannot

[[Page 21572]]

assume these events will become commonplace. For this reason, we must 
take steps to ensure we are prepared for future droughts and increasing 
competition for limited water supplies.
  Despite summer rains, many reservoirs are still far below historical 
averages. According to recent reservoir data, Heron and El Vado 
Reservoirs on the Chama River are 71 percent and 56 percent of average, 
respectively; Conchas Reservoir on the Canadian River is 50 percent of 
average; and Elephant Butte Reservoir on the Rio Grande is 27 percent 
of average. Moreover, because storage in Elephant Butte Reservoir has 
not reached 400,000 acre feet, the Rio Grande Compact imposes 
restrictions on New Mexico's ability to store water in reservoirs on 
the Rio Grande and Chama Rivers. As such, recent rains have not 
contributed significantly to storage on those rivers.
  The water crisis we were facing prior to the summer rains led many to 
question how we will allocate this finite resource among numerous and 
competing needs. As witnessed on the Klamath River and the Rio Grande 
in New Mexico, water shortages often result in litigation that pits 
municipalities, agricultural producers, industry, Indians, and the 
environmental community against one another. In order to avoid such 
crises in New Mexico, the United States Congress has appropriated 
enormous sums in order to ensure that existing uses are not curtailed. 
However, unless new sources of water are found, future conflict over 
water is inevitable.
  Recent conditions illustrate the need for us to look for ways to 
supplement flows of the most severely impacted regions in order to 
stave off the hardships and conflict that result from lean water years. 
It is my sincere hope that record-breaking rains this summer will not 
breed complacency. The bill I introduce today would authorize the 
United States Bureau of Reclamation to investigate ways to increase the 
flows of the Rio Grande, Pecos and Canadian Rivers, the three rivers 
that have been most devastated by long-term drought. While little can 
be done to increase rainfall, it is my belief that this bill will help 
us begin to better understand ways to increase the flows of these 
rivers to help mitigate the damaging effects that drought imposes on 
the municipalities, agricultural producers, industries and endangered 
species that depend on the water these rivers provide.
  I thank Representative Heather Wilson for introducing a companion 
measure in the House of Representatives.
  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. 4007

       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 ``New Mexico Rivers 
     Feasibility Studies Act of 2006''.

     SEC. 2. RIO GRANDE, CANADIAN, AND PECOS RIVERS FEASIBILITY 
                   STUDY.

       (a) In General.--The Secretary of the Interior, acting 
     through the Commissioner of Reclamation (referred to in this 
     Act as the ``Secretary''), in coordination with the State of 
     New Mexico, shall, in accordance with this Act and any other 
     applicable law, conduct feasibility studies to identify 
     opportunities to increase the surface flows of the Rio 
     Grande, Canadian, and Pecos Rivers in the State of New 
     Mexico.
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Energy and Natural Resources of the Senate and 
     the Committee on Resources of the House of Representatives a 
     report that describes the results of the feasibility studies 
     conducted under subsection (a).
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary to carry out this Act 
     $3,000,000.
                                 ______
                                 
      By Mr. DOMENICI (for himself and Mr. Bingaman):
  S. 4008. A bill to authorize the Secretary of the Interior to provide 
financial assistance to the Eastern New Mexico Rural Water Authority 
for the planning, design, and construction of the Eastern New Mexico 
Rural Water System, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. DOMENICI. Mr. President. I would like to bring to the attention 
of the Senate a problem faced by communities in eastern New Mexico 
illustrative of a greater problem that will ultimately be encountered 
by all who depend on the Ogallala Aquifer for their water. This 
includes communities in New Mexico, Texas, Oklahoma, Kansas, Colorado, 
Nebraska, Wyoming and South Dakota. At one time, the Aquifer contained 
roughly the same amount of water as Lake Huron. After 65 years of 
mining, we are now faced with the reality that the water contained in 
the Ogallala Aquifer has been significantly depleted and continues to 
be drawn down at an alarming rate.
  Many on the periphery of the Aquifer, including much of eastern New 
Mexico, parts of Kansas and Oklahoma have been forced to drill new 
wells in order to supplement existing wells that are producing water at 
a fraction of the volume of several decades ago. This problem is not 
limited to those communities overlying the Ogallala. Many other regions 
entirely reliant on groundwater face a similar problem. As is the case 
with the communities in eastern New Mexico, when the wells run dry, the 
only alternative for many is to ship water from long distances. In many 
instances, this is a very expensive proposition that exceeds the 
capacity of rural communities' ability to pay.
  In order to address the want of a sustainable water supply in eastern 
New Mexico, I introduce today the Eastern New Mexico Rural Water System 
Act of 2006. The bill would authorize the United States Bureau of 
Reclamation to provide financial assistance to the Eastern New Mexico 
Rural Water Authority, at a 75 percent Federal cost-share, to construct 
a pipeline from Ute Reservoir to communities in eastern New Mexico. 
This project would provide them with a renewable source of water for 
years to come. Presently, it is unclear how many years the groundwater 
resources on which they rely will be available.
  The communities which make up the Eastern New Mexico Rural Water 
Authority are due a great deal of credit for initiating engineering 
studies, project financing studies, and seeking support for the project 
from local, Federal and State governments. However, it would be 
misleading to suggest that securing appropriations for this or similar 
pipelines would be easy or that the funds will be available any time 
soon. The current budget of the United States Bureau of Reclamation 
simply cannot accommodate the large sums of money that this or other 
water supply projects would require. As Chairman of the Energy and 
Water Development Appropriations Subcommittee, I am acutely aware of 
this fact and I have made this clear to the communities that would 
benefit from the pipeline authorized by the bill that I introduce 
today. However, I remain committed to advocate for the need to dedicate 
substantially more of the national budget to this and other western 
water issues with Congress and the Administration. In the interim, it 
is my hope that we can begin the long and difficult process of moving 
this bill through the Federal legislature. The members of the Eastern 
New Mexico Rural Water Authority fully appreciate the difficulties that 
lie ahead.
  The problem faced by eastern New Mexico communities will become 
commonplace as groundwater supplies are exhausted. Approximately half 
of the population of the United States depends on aquifers for their 
domestic water needs. In the coming years, the United States Congress 
will have to provide succor to similar communities who have no 
alternative than to seek assistance from the Federal Government. 
Commensurate with this need for assistance, Congress will also have to 
make budgetary decisions that take into account this widespread 
problem. We would be remiss in our duties to let these communities 
simply dryup.
  I thank Senator Bingaman, my friend and colleague for the past 23 
years and ranking member of the Energy and Natural Resources Committee 
for co-sponsoring this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.

[[Page 21573]]

  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4008

       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 ``Eastern New Mexico Rural 
     Water System Act of 2006''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Authority.--The term ``Authority'' means the Eastern 
     New Mexico Rural Water Authority, an entity formed under 
     State law for the purposes of planning, financing, 
     developing, and operating the System.
       (2) Plan.--The term ``plan'' means the operation, 
     maintenance, and replacement plan required by section 4(b).
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) State.--The term ``State'' means the State of New 
     Mexico.
       (5) System.--
       (A) In general.--The term ``System'' means the Eastern New 
     Mexico Rural Water System, a water delivery project designed 
     to deliver approximately 16,500 acre-feet of water per year 
     from the Ute Reservoir to the cities of Clovis, Elida, Grady, 
     Melrose, Portales, and Texico and other locations in Curry 
     and Roosevelt Counties in the State.
       (B) Inclusions.--The term ``System'' includes--
       (i) the intake structure at Ute Reservoir;
       (ii) a water treatment, administration, and maintenance 
     facility with--

       (I) a 30,000,000 gallon per day average peak capacity; and
       (II) a 15,000,000 gallon per day average capacity;

       (iii) approximately 155 miles of transmission and lateral 
     pipelines and tunnels that range in size from 4 to 60 inches 
     in diameter;
       (iv) 3 pumping stations, including--

       (I) a raw water pump station at Ute Reservoir;
       (II) a booster pump station at the ``Caprock'' escarpment; 
     and
       (III) a booster pump station to Elida; and

       (v) any associated appurtenances.
       (6) Ute reservoir.--The term ``Ute Reservoir'' means the 
     impoundment of water created in 1962 by the construction of 
     the Ute Dam on the Canadian River, located approximately 32 
     miles upstream of the border between New Mexico and Texas.

     SEC. 3. EASTERN NEW MEXICO RURAL WATER SYSTEM.

       (a) Financial Assistance.--
       (1) In general.--The Secretary may provide financial and 
     technical assistance to the Authority to assist in planning, 
     designing, conducting related preconstruction activities for, 
     and constructing the System.
       (2) Use.--
       (A) In general.--Any financial assistance provided under 
     paragraph (1) shall be obligated and expended only in 
     accordance with a cooperative agreement entered into under 
     section 5(a)(2).
       (B) Limitations.--Financial assistance provided under 
     paragraph (1) shall not be used--
       (i) for any activity that is inconsistent with constructing 
     the System; or
       (ii) to plan or construct facilities used to supply 
     irrigation water for agricultural purposes.
       (b) Cost-Sharing Requirement.--
       (1) In general.--The Federal share of the total cost of any 
     activity or construction carried out using amounts made 
     available under this Act shall be not more than 75 percent of 
     the total cost of the System.
       (2) System development costs.--For purposes of paragraph 
     (1), the total cost of the System shall include any costs 
     incurred by the Authority on or after October 1, 2003, for 
     the development of the System.
       (c) Limitation.--No amounts made available under this Act 
     may be used for the construction of the System until--
       (1) a plan is developed under section 4(b); and
       (2) the Secretary and the Authority have complied with any 
     requirements of the National Environmental Policy Act of 1969 
     (42 U.S.C. 4321 et seq.) applicable to the System.
       (d) Title to Project Works.--Title to the infrastructure of 
     the System shall be held by the Authority or as may otherwise 
     be specified under State law.

     SEC. 4. OPERATION, MAINTENANCE, AND REPLACEMENT COSTS.

       (a) In General.--The Authority shall be responsible for the 
     annual operation, maintenance, and replacement costs 
     associated with the System.
       (b) Operation, Maintenance, and Replacement Plan.--The 
     Authority, in consultation with the Secretary, shall develop 
     an operation, maintenance, and replacement plan that 
     establishes the rates and fees for beneficiaries of the 
     System in the amount necessary to ensure that the System is 
     properly maintained and capable of delivering approximately 
     16,500 acre-feet of water per year.

     SEC. 5. ADMINISTRATIVE PROVISIONS.

       (a) Cooperative Agreements.--
       (1) In general.--The Secretary may enter into any contract, 
     grant, cooperative agreement, or other agreement that is 
     necessary to carry out this Act.
       (2) Cooperative agreement for provision of financial 
     assistance.--
       (A) In general.--The Secretary shall enter into a 
     cooperative agreement with the Authority to provide financial 
     assistance or any other assistance requested by the Authority 
     for planning, design, related preconstruction activities, and 
     construction of the System.
       (B) Requirements.--The cooperative agreement entered into 
     under subparagraph (A) shall, at a minimum, specify the 
     responsibilities of the Secretary and the Authority with 
     respect to--
       (i) ensuring that the cost-share requirements established 
     by section 3(b) are met;
       (ii) completing the planning and final design of the 
     System;
       (iii) any environmental and cultural resource compliance 
     activities required for the System; and
       (iv) the construction of the System.
       (b) Technical Assistance.--At the request of the Authority, 
     the Secretary may provide to the Authority any technical 
     assistance that is necessary to assist the Authority in 
     planning, designing, constructing, and operating the System.
       (c) Biological Assessment.--The Secretary shall consult 
     with the New Mexico Interstate Stream Commission and the 
     Authority in preparing any biological assessment under the 
     Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) that 
     may be required for planning and constructing the System.
       (d) Effect.--Nothing in this Act---
       (1) affects or preempts--
       (A) State water law; or
       (B) an interstate compact relating to the allocation of 
     water; or
       (2) confers on any non-Federal entity the ability to 
     exercise any Federal rights to--
       (A) the water of a stream; or
       (B) any groundwater resource.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary such sums as are necessary to carry out this 
     Act.
       (b) Nonreimbursable Amounts.--Amounts made available to the 
     Authority in accordance with the cost-sharing requirement 
     under section 3(b) shall be nonreimbursable and nonreturnable 
     to the United States.
       (c) Availability of Funds.--At the end of each fiscal year, 
     any unexpended funds appropriated pursuant to this Act shall 
     be retained for use in future fiscal years consistent with 
     this Act.

  Mr. BINGAMAN. Mr. President, I am pleased to be co-sponsoring a bill 
which Senator Domenici and I are introducing today, that would 
authorize the Bureau of Reclamation to help communities in eastern New 
Mexico develop the Eastern New Mexico Rural Water System (ENMRWS). The 
water supply and long-term security to be made available by this 
project is absolutely critical to the region's future. I look forward 
to working with my colleagues here in the Senate to help make this 
project a reality.
  This bill is very similar to a bill I introduced in June 2004 which 
was the subject of a hearing before the Water & Power Subcommittee of 
the Energy & Natural Resources Committee. At that hearing, the Bureau 
of Reclamation raised a number of issues that needed to be addressed by 
the Project sponsors prior to securing Reclamation's support. I'm happy 
to say that the sponsors have worked diligently to address those 
issues, and it is time, once again, to move this project towards 
authorization. I realize that there is little time left in the 109th 
Congress. Nonetheless, introduction of this bill now is important to 
ensure an ongoing dialogue with the Bureau of Reclamation and maintain 
progress as we head towards the 110th Congress.
  The source of water for the ENMRWS is Ute Reservoir, a facility 
constructed by the State of New Mexico in the early 1960s. In 1966, 
Congress authorized Reclamation to study the feasibility of a project 
that would utilize Ute Reservoir to supply water to communities in 
eastern New Mexico (P.L. 89-561). Numerous studies were subsequently 
completed, but it was not until the late 1990s that several 
communities, concerned about their reliance on declining and degraded 
groundwater supplies in the area, began to plan seriously for the 
development of a regional water system that would make use of the 
renewable supply available from Ute Reservoir.
  As part of that process, the Eastern New Mexico Rural Water Authority 
was formed to carry out the development of the ENMRWS. The Authority 
consists of 6 communities and 2 counties in eastern New Mexico, and has 
been very effective in securing local

[[Page 21574]]

funds and State funding to support the studies and planning necessary 
to move the project forward. To date, the State of New Mexico has 
provided over $4 million to help develop the ENMRWS.
  This is a very important bill to the citizens of New Mexico. It has 
the broad support of the communities in the region as well as financial 
support from the State of New Mexico. There is no question that 
completion of the ENMRWS will provide communities in Curry and 
Roosevelt counties with a long-term renewable source of water that is 
needed to sustain current economic activity and support future growth 
and development in the region. I hope my colleagues will support this 
legislation, thereby helping to address pressing water needs in the 
rural West.
                                 ______
                                 
      By Mr. MENENDEZ:
  S. 4009. A bill to restore, reaffirm, and reconcile legal rights and 
remedies under civil rights statutes; to the Committee on the 
Judiciary.
  Mr. MENENDEZ. Mr. President, I rise today to introduce legislation 
designed to protect the most vulnerable members of our society, our 
children, from environmental pollution. We are well aware that children 
are especially susceptible to toxins in the environment--they spend a 
good deal of time playing outside, and frequently put foreign objects 
into their mouths. In proportion to their body weight, they eat, drink, 
and breathe more than adults, meaning concentrations of pollutants that 
might not affect adults could have serious consequences for children. 
Furthermore, many of their physiological systems are still developing, 
making them particularly sensitive to pollutants.
  I believe that our environmental laws need to first and foremost 
protect the most vulnerable members of our society. Unfortunately, many 
of our statutes are designed with adults in mind, and may not 
adequately protect children. In addition, there have been a number of 
recent reports in New Jersey about schools and day care centers being 
built on contaminated sites. One site in particular, the Kiddie Kollege 
day care center in Franklin Township, NJ, was operating at the site of 
a former thermometer factory, exposing the children and employees to 
dangerous levels of mercury. Sadly, there was no requirement for the 
property to be tested for environmental contamination prior to opening 
as a day care center. Subsequently, we have learned about a number of 
day care centers either built on or adjacent to sites contaminated with 
volatile organic chemicals and other toxins.
  That is why I am introducing this legislation today. The 
Environmental Protection for Children Act would create a grant program 
that encourages States to enact laws ensuring that properties are 
tested for pollution before a new day care center or school is allowed 
to open. The grants could be used for the testing and cleanup of 
existing schools and day care centers as well. Furthermore, this bill 
tightens the Federal programs that regulate hazardous chemicals and 
environmental pollutants--the Toxic Substances Control Act, Superfund 
law, Toxic Release Inventory, and Federal Hazardous Substances Act--so 
that the vulnerability of children to toxins and pollutants is taken 
into account when public health standards are being developed. It also 
provides for more research into the specific vulnerabilities of 
children to environmental pollutants, since in many cases we don't know 
how much additional risk children are under.
  We as a Nation have assiduously acted to protect our children from 
many of the dangers that they face every day, but we have dropped the 
ball when it comes to making sure that the places where they spend 
their days are free from contamination. The Environmental Protection 
for Children Act will help fix that, and I urge my colleagues to join 
me in support of this important piece of legislation.
                                 ______
                                 
      By Mr. SMITH (for himself and Mr. Wyden):
  S. 4013. A bill to amend the Internal Revenue Code of 1986 to expand 
the resources eligible for the renewable energy credit to kinetic 
hydropower, and for other purposes; to the Committee on Finance.
  Mr. SMITH. Mr. President, I rise to introduce a bill that will 
further our Nation's energy independence, and provide for sustainable 
electricity generation. This bill, which is cosponsored by my colleague 
from Oregon Senator Wyden, will make facilities that generate 
electricity using kinetic hydropower eligible for a production tax 
credit.
  Under this bill, kinetic hydropower is defined as: ocean free flowing 
water derived from flows from tidal currents, ocean currents, waves, or 
estuary currents; ocean thermal energy; or free flowing water in 
rivers, lakes, man-made channels, or streams.
  These innovative technologies are renewable, non-emitting resources 
that can help meet our Nation's growing demand for electricity. In 
Oregon, it would be possible to produce and transmit over two hundred 
megawatts of wave energy without any upgrades to the existing 
transmission system on the coast. Already a number of preliminary 
permits have been filed at the Federal Energy Regulatory Commission for 
wave energy facilities off the Oregon coast.
  These facilities would be virtually invisible from shore, and could 
provide predictable generation that could be easily integrated with 
other electricity resources. In addition, according to a January 2005 
report issued by the Electric Power Research Institute, ``with proper 
siting, converting ocean wave energy to electricity is believed to be 
one of the most environmentally benign ways to generate electricity.''
  As with many emerging renewable technologies, wave and tidal energy 
are more costly than traditional generation using fossil fuels. Yet, 
for our environment and our energy security, we must provide incentives 
that will encourage the development and commercialization of these 
resources.
  I urge my colleagues to support this important legislation, and to 
provide this production tax credit.
                                 ______
                                 
      By Mr. LUGAR (for himself, Mr. Frist, Mr. Biden, Mr. Smith, and 
        Mr. McCain):
  S. 4014. A bill to endorse further enlargement of the North Atlantic 
Treaty Organization (NATO) and to facilitate the timely admission of 
Albania, Croatia, Georgia, and Macedonia to NATO, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, I rise today to introduce the ``NATO 
Freedom Consolidation Act of 2006. I am pleased that the Majority 
Leader, Senator Frist, Senator Biden, and Senator Smith have joined me 
in proposing this important legislation.
  The goal of this bill is to reaffirm United States support for 
continued enlargement of NATO to democracies that are able and willing 
to meet the responsibilities of membership. In particular, the 
legislation calls for the timely admission of Albania, Croatia, 
Georgia, and Macedonia to NATO and authorizes security assistance for 
these countries in Fiscal Year 2007. Each of these countries has 
clearly stated its desire to join NATO and is working hard to meet the 
specified requirements for membership. The bill also affirms that the 
United States stands ready to consider, and if all applicable criteria 
are satisfied, to support efforts by Ukraine to join NATO, should 
Ukraine decide that it wishes to meet the responsibilities of 
membership in the Alliance.
  I believe that eventual NATO membership for these four countries 
would be a success for Europe, NATO, and the United States by 
continuing to extend the zone of peace and security. Albania, Croatia, 
and Macedonia have been making progress on reforms through their 
participation in the NATO Membership Action Plan since 2002. 
Unfortunately, Georgia has not yet been granted a Membership Action 
Plan but nevertheless has made remarkable progress. This legislation 
will provide important incentives and assistance to the countries to 
continue the implementation of democratic, defense, and economic 
reforms.
  Since the end of the Cold War, NATO has been evolving to meet the new 
security needs of the 21st century. In this

[[Page 21575]]

era, the threats to NATO members are transnational and far from its 
geographic borders. There is strong support among members for NATO's 
operation in Afghanistan, and for its training mission in Iraq. NATO's 
viability as an effective defense and security alliance depends on 
flexible, creative leadership, as well as the willingness of members to 
improve capabilities and address common threats.
  If NATO is to continue to be the preeminent security Alliance and 
serve the defense interests of its membership, it must continue to 
evolve and that evolution must include enlargement. Potential NATO 
membership motivates emerging democracies to make important advances in 
areas such as the rule of law and civil society. A closer relationship 
with NATO will promote these values and contribute to our mutual 
security. Georgia is a young democracy that has made tremendous 
progress since the ``Rose Revolution.'' It is situated in a critical 
geostrategic location and his host to a large portion of the Baku-
Tbilisi-Ceyhan pipeline that carries important energy resources to the 
West from Azerbaijan and, in the future, Kazakhstan. Georgia is 
resisting pressure from breakaway republics backed by Moscow. In the 
past, border disputes have been identified as reasons a country may not 
be invited to join NATO. But in this case, Russia's action, not 
Georgia's, is frustrating Tbilisi's NATO aspirations.
  Three years ago, the United States Senate unanimously voted to invite 
seven countries to join NATO. Today, Bulgaria, Estonia, Latvia, 
Lithuania, Romania, Slovakia, and Slovenia are making significant 
contributions to NATO and are among our closest allies in the global 
war on terrorism. It is time again for the United States to take the 
lead in urging its allies to bring in new members, and to offer timely 
admission of Albania, Croatia, Georgia, and Macedonia to NATO.
                                 ______
                                 
      By Mr. SPECTER (for himself and Mr. Santorum):
  S. 4017. A bill to provide for an appeals process for hospital wage 
index classification under the Medicare program, and for other 
purposes; to the Committee on Finance.
  Mr. SPECTER. Mr. President, I have sought recognition today to 
introduce with Senator Santorum the Hospital Payment Improvement and 
Equity Act, which will provide an increased reimbursement for acute 
care hospitals and inpatient rehabilitation facilities that are 
disadvantaged by Medicare payments under the Medicare area wage index 
reclassification system.
  For a considerable period of time, there have been a number of 
counties in Pennsylvania that have been suffering from low Medicare 
reimbursements, which has caused them great disadvantage because their 
nurses, and other medical personnel are moving to surrounding areas. I 
refer specifically to Luzerne County, Lackawanna County, Wyoming 
County, Lycoming County, and Columbia County in northeastern 
Pennsylvania. Those counties are surrounded by MSAs, metropolitan 
statistical areas, in Newport, NY, to the north; in Allentown to the 
southeast; and the Harrisburg MSA to the southwest. As these counties 
are surrounded by MSAs with higher Medicare reimbursements, a flight of 
very necessary medical personnel has occurred. More recently, western 
Pennsylvania has been faced with Medicare reimbursement that has not 
kept pace with the rising cost of healthcare placing a tremendous 
burden on these facilities to provide good jobs at competitive wages.
  It has also come to my attention that inpatient rehabilitation 
facilities are not provided an opportunity to obtain equitable Medicare 
reimbursement. Inpatient rehabilitation facilities receive adjustments 
in their Medicare reimbursement due to geographic disadvantages within 
the Medicare inpatient prospective payment system. This is based on 
information gathered from other acute care facilities in the MSA, not 
from their own wage information. Inpatient Rehabilitation Facilities, 
further, cannot apply for reclassification to another MSA that reflects 
their labor costs. This has prevented those facilities from being 
eligible for increased funding to assist with wages like acute care 
facilities, while being forced to compete for employees with those 
facilities that have had access to increased funding.
  I have worked to find a solution to this problem for a number of 
years. During the conference for the fiscal year 2002 Labor, Health and 
Human Services, and Education Appropriations bill, the conferees agreed 
that there should be relief for these areas in Pennsylvania that were 
surrounded by areas that had higher MSA ratings. However, at the last 
minute, there was an objection to including language in the conference 
report.
  To correct this problem I, with Representatives Sherwood and English, 
brought the matter forward in the Fiscal Year 2002 Supplemental 
Appropriations bill. They worked to include language in the House 
version of the bill and I filed an amendment to the Senate bill. During 
conference negotiations my amendment was defeated and the provisions 
were not included.
  As part the Fiscal Year 2004 Labor, Health and Human Services, and 
Education Appropriations, I provided $7 million for hospitals in 
Northeast Pennsylvania that continued to be disadvantaged by the 
Medicare area wage index reclassification. This was provided as 
temporary assistance for those facilities.
  During the consideration of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003, I met with Finance Chairman 
Grassley and Ranking Member Baucus about the bill provisions, including 
the need for a solution to the Medicare area wage index 
reclassification problem in Pennsylvania. As a result, Section 508 was 
included in the bill, which provides increased funding for hospitals 
nationally to be reclassified to locations with higher Medicare 
reimbursement rates for three years at $300 million per year. The 
temporary program, which began in April 2004 and will expire April 
2007, has and will provide Pennsylvania hospitals $69 million over that 
time, $23 million per year.
  Most recently, as part of the Senate Fiscal Year 2007 Labor, Health 
and Human Services, and Education Appropriations bill, I provided $4.3 
million for hospitals in the Scranton/Wilkes-Barre and Williamsport 
areas that have been harmed by the ongoing wage index problem. Further, 
on June 14, 2006, 20 other Senators joined me in sending a letter to 
Finance Chairman Grassley and Ranking Member Baucus in support of 
Senate action to extend Section 508.
  As the Section 508 program is scheduled to expire on March 31, 2007, 
and the low Medicare area wage index reimbursement is still being 
unfairly placed on many Pennsylvania hospitals, the legislation I am 
introducing would extend the current Section 508 benefit to those who 
are currently receiving funding and to those who deserved funds under 
the previous competition for this funding.
  The legislation builds on the Section 508 Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003, by providing hospitals who 
continue to be disadvantaged by low Medicare reimbursement an increase 
in funding. The bill would allow both acute care hospitals and not-for-
profit inpatient rehabilitation facilities apply for funding in a 
similar manner as set up under Section 508. Facilities that meet 
specific wage and geographic criteria will receive a three year 
reclassification.
  Under the Section 508, program a number of hospitals meet the 
necessary criteria to receive reclassification, however, inadequate 
funding of $300 million per year for the program was provided. As a 
result, 154 additional hospitals did not receive this vital funding. 
Under this legislation, sufficient funds would be provided to allow all 
facilities that meet wage and geographic criteria to receive 
reclassification funding.
  To remedy the under-funding of impatient rehabilitation facilities, 
not for profit facilities will be eligible for funding through this 
program. If all acute care hospitals in an MSA apply for and receive 
funding through this

[[Page 21576]]

program, or have sole community hospital status, or have reclassified 
to another MSA through another mechanism, then non-profit inpatient 
rehabilitation facilities in that MSA are eligible. Those 
rehabilitation facilities will be reclassified to the MSA where a 
majority of other hospitals from the same MSA have been reclassified.
  For those hospitals who received funding under the current Section 
508; they will have received the benefit of a higher wage index for 
three years, April 1 , 2004-March 1, 2007. These higher wages will be 
included in the hospitals' cost reports and be reflected in the data 
used to calculate a future wage index. It has always been the hope that 
this increased funding would enable these hospitals to pay higher wages 
and subsequently see an increase in the area wage index.
  The problem with the wage index system is the use of three year-old 
audited cost report data for the calculation of the wage index. 
Therefore, a full year of Section 508 money from fiscal year 2004 will 
first be seen in the fiscal year 2008 wage index calculation. For 
hospitals that end their fiscal year on June 30, that wage data will 
not be included in their wage index calculation until fiscal year 2009. 
To reclassify, three years of data is needed to show the proper 
evidence for eligibility. Thus, the full effect of the Section 508 
funding will flow through the wage index system by fiscal year 2011. 
For this reason, additional funding is needed for the next three years 
in order for these disadvantaged hospitals to continue paying 
competitive salaries to their employees.
  Under Section 508, 121 hospitals have and will receive $900 million 
in assistance, while this is a significant amount of funding, it did 
not fix the problem of low Medicare wage reimbursement. A long term 
solution to this problem is needed, however the current Section 508 
funding will expire on March 31, 2007 and additional funding is needed 
for these facilities while we work to find that solution. The loss of 
hospitals and jobs due to unfair CMS reimbursement is unacceptable.
  The hospitals which face this low Medicare reimbursement are in great 
financial distress. These are hospitals which are serving an aging 
population in northeastern Pennsylvania and across the nation. This 
legislation provides Medicare reimbursement assistance for those 
facilities and ensures Medicare beneficiaries' access to care. I 
encourage my colleagues to work with Senator Santorum and me to move 
this legislation forward promptly.
                                 ______
                                 
      By Mr. WYDEN (for himself, Mr. Kerry, and Mr. Obama):
   S. 4018. A bill to establish a Vote by Mail grant program; to the 
Committee on Rules and Administration.
  Mr. WYDEN. Mr. President, when many Americans think of voting, they 
think of long lines, malfunctioning equipment, closed polls, or even 
worse, fraud. That's why so many Americans don't bother to vote. But in 
my home State of Oregon, folks vote by mail and these sorts of problems 
are a thing of the past.
  So today I come to the floor to talk about the sorry state of the 
Nation's election system and discuss my bill, the Vote by Mail Act of 
2006.
  There is nothing more fundamental than the right to vote. It is the 
foundation on which our democracy rests. Weaken the right to vote and 
you weaken America.
  It's been almost 6 years since the 2000 Florida hanging chad debacle. 
And yet, problems with America's election system--and waning confidence 
in that system--persist.
  This year's primary elections were no exception to the rule:
  In Montgomery County, MD, polling places opened late because election 
officials forgot to distribute the access cards necessary to run the 
voting machines. Voters resorted to filling out provisional ballots and 
when those ran out, they used photocopied ballots and even scraps of 
paper.
  Next door, in Prince George's County, MD, a handful of errors--
computers incorrectly identifying voters' party affiliation, electronic 
voter registration lists freezing up, and voting machines failing to 
transmit data--delayed results of a hotly contested election and may 
result in a lawsuit.
  Long lines, a lack of machines at certain polling places, and other 
irregularities cast a black mark on Ohio's 2004 Presidential election 
results. Unfortunately, this year's primary elections were also plagued 
by problems. In Cuyahoga County, Ohio's largest county, thousands of 
absentee ballots were incorrectly formatted for electronic scanners and 
had to be counted by hand. And problems with about 10 percent of the 
paper ballots cast meant that they couldn't be counted at all.
  In Cook County, IL, new voting technology created headaches at 
hundreds of voting sites around the county, which delayed results in a 
decisive county board race.
  And in Tarrant County, TX, voting machines counted ballots as many as 
six times, which meant that 100,000 more votes were recorded than were 
actually cast.
  These are just a few recent examples of election system snafus that 
have raised concerns about voting system accuracy and reliability, 
concerns that have led some states to reconsider their election plans.
  Last week, Maryland Governor Robert Ehrlich suggested that the state 
scrap its new electronic voting system and return to paper ballots. 
Earlier this year, Governor Bill Richardson of New Mexico got rid of 
his touch-screen voting machines. Connecticut's Secretary of State did 
the same. Both states have decided to use paper ballots and optical 
scanners instead of electronic machines.
  But as Florida reminds us, paper isn't perfect either and right now--
electronic or paper--you can expect there to be lot of problems come 
November 7th.
  Hopefully, these problems won't affect the outcome of any election. I 
sure hope they don't. But whether they do or not, the Election Day 
problems that I expect will plague states and counties around the 
nation will push voter confidence in our election system further into 
the basement.
  It's too late for Congress to do much of anything to fix the problem 
before the 2006 elections. But we can do something to make sure these 
problems don't arise ever again.
  So today, along with my esteemed colleagues, Senator John Kerry of 
Massachusetts and Senator Barack Obama of Illinois, I am introducing 
the Vote by Mail Act of 2006, a bill that will make Election Day 
problems a thing of the past and quickly and effectively reinvigorate 
Americans' confidence in their election system and in their democracy.
  The bill creates a three year, $110 million grant program to help 
interested states adopt vote by mail election systems like the one that 
Oregon voters have been successfully using for some time now.
  It's a pretty simple system. Voters get their ballots in the mail. 
Wherever and whenever they would like, right up to Election Day, voters 
complete their ballots and return them.
  With vote by mail, polls don't open late.
  With vote by mail, there aren't any long lines at the polls.
  With vote by mail, there's no more confusion about where you are 
supposed to vote.
  There's no more debate about whether you are on the voting rolls--
either you get the ballot in the mail, or you don't. If you don't, you 
have time to contact your election officials to sort it out.
  Vote by mail means almost no chance of voter fraud because trained 
election officials match the signature on each ballot against the 
signature on each voter's registration card.
  No ballot is processed or counted until everyone is satisfied that 
the two signatures match.
  With vote by mail, you've got a paper trail. Each voter marks up his 
ballot and sends it in. That ballot is counted and then becomes the 
paper record used in the event of a recount.
  With vote by mail, there's much less risk of voter intimidation. 
That's why a 2003 study of Oregon voters showed that those groups that 
would likely be most vulnerable to coercion actually prefer vote by 
mail.

[[Page 21577]]

  Vote by mail results in more informed voters. Because folks get their 
ballots weeks before the election, they have the time they need to get 
educated about the candidates and the issues, and deliberate in a way 
not possible at a polling place.
  Vote by mail leads to huge election costs savings because it gets rid 
of the need to transport equipment to polling stations and to hire and 
train poll workers. Oregon has reduced its election-related costs by 30 
percent since implementing vote by mail. I expect that other states 
that adopt vote by mail will see the same results.
  Vote by mail can help make the problems of recent elections a thing 
of the past. In doing so, it will make our elections fairer and help 
reinstill faith in our democracy.
  Vote by mail works. And that's why Senator Kerry and Senator Obama 
and I are introducing the Vote by Mail Act of 2006 today.
  It gives States funds that they can use to make the transition away 
from the traditional voting methods that have led to so many problems, 
so many concerns, and so little confidence in the American election 
system.
  It gives States funds that they can use to adopt Oregon-style vote by 
mail with the technical assistance and the guidance of the Election 
Assistance Commission.
  I believe that the Vote by Mail Act of 2006 can fix our election 
system once and for all.
  One final point: the Help Americans Vote Act, also know as HAVA, 
takes important steps to ensure equal access to voting for all 
Americans. HAVA's protections are particularly important to voters with 
disabilities, and it is our responsibility to keep building on that 
foundation. Nothing in this bill undermines or changes those aspects of 
HAVA that require vote by mail systems to be just as accessible as any 
other voting method.
  While I think Oregon has proven that people with disabilities can 
benefit from vote by mail, it is important to keep working with the 
people who know these issues best to make sure the right to vote is 
protected. And Senator Kerry, Senator Obama, and I look forward to 
working with disabled and other civil rights organizations, election 
reform groups, community organizations and the voters themselves to 
ensure that the Vote by Mail Act of 2006 further promotes access to the 
polls for individuals with disabilities.
  So I urge my colleagues to seriously consider this bill and urge them 
to support it. Vote by mail has been an enormous success in Oregon. I 
am sure that other States that adopt it will see the same benefits. 
This bill helps ensure that States have that opportunity.
  I asked for unanimous consent that my statement be printed into the 
Record and I ask for unanimous consent that the text of the Vote by 
Mail Act of 2006 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. 4018

       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 ``Vote by Mail Act of 2006''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The Supreme Court declared in Reynolds v. Sims that 
     ``[i]t has been repeatedly recognized that all qualified 
     voters have a constitutionally protected right to vote . . . 
     and to have their votes counted.''.
       (2) In the 2000 and 2004 presidential elections, voting 
     technology failures and procedural irregularities deprived 
     some Americans of their fundamental right to vote.
       (3) In 2000, faulty punch card ballots and other equipment 
     failures prevented accurate vote counts nationwide. A report 
     by the Caltech/MIT Voting Technology Project estimates that 
     approximately 1,500,000 votes for president were intended to 
     be cast but not counted in the 2000 election because of 
     equipment failures.
       (4) In 2004, software errors, malfunctioning electronic 
     voting systems, and long lines at the polls prevented 
     accurate vote counts and prevented some people from voting. 
     For instance, voters at Kenyon College in Gambier, Ohio 
     waited in line for up to 12 hours because there were only 2 
     machines available for 1,300 voters.
       (5) Under the Oregon Vote by Mail system, election 
     officials mail ballots to all registered voters at least 2 
     weeks before election day. Voters mark their ballots, seal 
     the ballots in both unmarked secrecy envelopes and signed 
     return envelopes, and return the ballots by mail or to secure 
     drop boxes. Once a ballot is received, election officials 
     scan the bar code on the ballot envelope, which brings up the 
     voter's signature on a computer screen. The election official 
     compares the signature on the screen and the signature on the 
     ballot envelope. Only if the signature on the ballot envelope 
     is determined to be authentic is the ballot forwarded on to 
     be counted.
       (6) Oregon's Vote by Mail system has resulted in an 
     extremely low rate of voter fraud because the system includes 
     numerous security measures such as the signature 
     authentication system. Potential misconduct is also deterred 
     by the power of the State to punish those who engage in voter 
     fraud with up to five years in prison, $100,000 in fines, and 
     the loss of their vote.
       (7) Vote by Mail is one factor making voter turnout in 
     Oregon consistently higher than the average national voter 
     turnout. For example, Oregon experienced a record voting-age-
     eligible population turnout of 70.6 percent in the 2004 
     presidential election, compared to 58.4 percent nationally. 
     Oregon's turnout of registered voters for that election was 
     86.48 percent.
       (8) Women, younger voters, and homemakers also report that 
     they vote more often using Vote by Mail.
       (9) Vote by Mail reduces election costs by eliminating the 
     need to transport equipment to polling stations and to hire 
     and train poll workers. Oregon has reduced its election-
     related costs by 30 percent since implementing Vote by Mail.
       (10) Vote by Mail allows voters to educate themselves 
     because they receive ballots well before election day, which 
     provides them with ample time to research issues, study 
     ballots, and deliberate in a way that is not possible at a 
     polling place.
       (11) Vote by Mail is accurate--at least 2 studies comparing 
     voting technologies show that absentee voting methods, 
     including Vote by Mail systems, result in a more accurate 
     vote count.
       (12) Vote by Mail results in more up-to-date voter rolls, 
     since election officials use forwarding information from the 
     post office to update voter registration.
       (13) Vote by Mail allows voters to visually verify that 
     their votes were cast correctly and produces a paper trail 
     for recounts.
       (14) In a survey taken 5 years after Oregon implemented the 
     Vote by Mail system, more than 8 in 10 Oregon voters said 
     they preferred voting by mail to traditional voting.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Election.--The term ``election'' means any general, 
     special, primary, or runoff election.
       (2) Participating state.--The term ``participating State'' 
     means a State receiving a grant under the Vote by Mail grant 
     program under section 4.
       (3) State.--The term ``State'' means a State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, or a territory or possession of the United States.
       (4) Voting system.--The term ``voting system'' has the 
     meaning given such term under section 301(b) of the Help 
     America Vote Act of 2002 (42 U.S.C. 15481(b)).

     SEC. 4. VOTE BY MAIL GRANT PROGRAM.

       (a) Establishment.--Not later than 270 days after the date 
     of enactment of this Act, the Election Assistance Commission 
     shall establish a Vote by Mail grant program (in this section 
     referred to as the ``program'').
       (b) Purpose.--The purpose of the program is to make 
     implementation grants to participating States solely for the 
     implementation of procedures for the conduct of all elections 
     by mail at the State or local government level.
       (c) Limitation on Use of Funds.--In no case may grants made 
     under this section be used to reimburse a State for costs 
     incurred in implementing mail-in voting for elections at the 
     State or local government level if such costs were incurred 
     prior to the date of enactment of this Act.
       (d) Application.--A State seeking to participate in the 
     program under this section shall submit an application to the 
     Election Assistance Commission containing such information, 
     and at such time as, the Election Assistance Commission may 
     specify.
       (e) Amount and Number of Implementation Grants; Duration of 
     Program.--
       (1) Amount of grants.--
       (A) In general.--Subject to subparagraph (B), the amount of 
     an implementation grant made to a participating State shall 
     be, in the case of a State that certifies that it will 
     implement all elections by mail in accordance with the 
     requirements of subsection (f), with respect to--
       (i) the entire State, $2,000,000; or
       (ii) any single unit or multiple units of local government 
     within the State, $1,000,000.
       (B) Excess funds.--
       (i) In general.--The Election Assistance Commission shall 
     establish a process to distribute excess funds to 
     participating States. The process shall ensure that such 
     funds are allocated among participating States in an 
     equitable manner, based on the number of registered voters in 
     the area in which the

[[Page 21578]]

     State certifies that it will implement all of its elections 
     by mail under subparagraph (A).
       (ii) Excess funds defined.--For purposes of clause (i), the 
     term ``excess funds'' means any amounts appropriated pursuant 
     to the authorization under subsection (h)(1) with respect to 
     a fiscal year that are not awarded to a participating State 
     under an implementation grant during such fiscal year.
       (C) Continuing availability of funds after appropriation.--
     An implementation grant made to a participating State under 
     this section shall be available to the State without fiscal 
     year limitation.
       (2) Number of implementation grants.--
       (A) In general.--The Election Assistance Commission shall 
     award an implementation grant to up to 18 participating 
     States under this section during each year in which the 
     program is conducted.
       (B) One grant per state.--The Election Assistance 
     Commission shall not award more than 1 implementation grant 
     to any participating State under this section over the 
     duration of the program.
       (3) Duration.--The program shall be conducted for a period 
     of 3 years.
       (f) Requirements.--
       (1) Required procedures.--A participating State shall 
     establish and implement procedures for conducting all 
     elections by mail in the area with respect to which it 
     receives an implementation grant to conduct such elections, 
     including the following:
       (A) A process for recording electronically each voter's 
     registration information and signature.
       (B) A process for mailing ballots to all eligible voters.
       (C) The designation of places for the deposit of ballots 
     cast in an election.
       (D) A process for ensuring the secrecy and integrity of 
     ballots cast in the election.
       (E) Procedures and penalties for preventing election fraud 
     and ballot tampering, including procedures for the 
     verification of the signature of the voter accompanying the 
     ballot through comparison of such signature with the 
     signature of the voter maintained by the State in accordance 
     with subparagraph (A).
       (F) Procedures for verifying that a ballot has been 
     received by the appropriate authority.
       (G) Procedures for obtaining a replacement ballot in the 
     case of a ballot which is destroyed, spoiled, lost, or not 
     received by the voter.
       (H) A plan for training election workers in signature 
     verification techniques.
       (I) Plans and procedures to ensure that voters who are 
     blind, visually-impaired, or otherwise disabled have the 
     opportunity to participate in elections conducted by mail and 
     to ensure compliance with the Help America Vote Act of 2002. 
     Such plans and procedures shall be developed in consultation 
     with disabled and other civil rights organizations, voting 
     rights groups, State election officials, voter protection 
     groups, and other interested community organizations.
       (g) Best Practices, Technical Assistance, and Reports.--The 
     Election Assistance Commission shall--
       (1) develop, periodically issue, and, as appropriate, 
     update best practices for conducting elections by mail;
       (2) provide technical assistance to participating States 
     for the purpose of implementing procedures for conducting 
     elections by mail; and
       (3) submit to the appropriate committees of Congress--
       (A) annual reports on the implementation of such procedures 
     by participating States during each year in which the program 
     is conducted; and
       (B) upon completion of the program conducted under this 
     section, a final report on the program, together with 
     recommendations for such legislation or administrative action 
     as the Election Assistance Commission determines to be 
     appropriate.
       (h) Authorization of Appropriations.--
       (1) Grants.--There are authorized to be appropriated to 
     award grants under this section, for each of fiscal years 
     2007 through 2009, $36,000,000, to remain available without 
     fiscal year limitation until expended.
       (2) Administration.--There are authorized to be 
     appropriated to administer the program under this section, 
     $2,000,000 for the period of fiscal years 2007 through 2009, 
     to remain available without fiscal year limitation until 
     expended.
       (i) Rule of Construction.--In no case shall any provision 
     of this section be construed as affecting or replacing any 
     provisions or requirements under the Help America Vote Act of 
     2002, or any other laws relating to the conduct of Federal 
     elections.

     SEC. 5. STUDY ON IMPLEMENTATION OF MAIL-IN VOTING FOR 
                   ELECTIONS.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States (in this section referred to as the ``Comptroller 
     General'') shall conduct a study evaluating the benefits of 
     nationwide implementation of mail-in voting in elections, 
     taking into consideration the annual reports submitted by the 
     Election Assistance Commission under section 4(f)(3)(A) 
     before November 1, 2009.
       (2) Specific issues studied.--The study conducted under 
     paragraph (1) shall include a comparison of traditional 
     voting methods and mail-in voting with respect to--
       (A) the likelihood of voter fraud and misconduct;
       (B) accuracy of voter rolls;
       (C) accuracy of election results;
       (D) voter participation in urban and rural communities and 
     by minorities, language minorities (as defined in section 203 
     of the Voting Rights Act of 1965 (42 U.S.C. 1973aa-1a)), and 
     individuals with disabilities; and
       (E) public confidence in the election system.
       (b) Report.--Not later than November 1, 2009, the 
     Comptroller General shall prepare and submit to the 
     appropriate committees of Congress a report on the study 
     conducted under subsection (a), together with such 
     recommendations for legislation or administrative action as 
     the Comptroller General determines to be appropriate.
                                 ______
                                 
      By Mr. INHOFE:
  S. 4023. A bill to authorize the Secretary of the Interior to convey 
to the McGee Creek Authority certain facilities of the McGee Creek 
Project, Oklahoma, and for other purposes; to the Committee on Energy 
and Natural Resources.
  Mr. INHOFE. Mr. President, today I introduce legislation to authorize 
the title transfer of the McGee Creek Reservoir dam and its associated 
facilities, which are located approximately 20 miles southeast of 
Atoka, OK.
  My bill transfers title from the Bureau of Reclamation to the McGee 
Creek Authority.
  The McGee Creek Authority is a trust of the State of Oklahoma. This 
Oklahoma entity was established to develop, finance, operate, and 
maintain the water supply in the McGee Creek Reservoir. Thus, the 
primary purpose is to provide a dependable ``municipal and industrial'' 
water supply for Oklahoma City, the City of Atoka, Atoka County, and 
the area represented by the Southern Oklahoma Development Trust. The 
McGee Creek Authority currently operates the dam and associated 
facilities.
  This title transfer under this bill will allow Oklahoma City to make 
the necessary capital improvements and upgrades needed to assure the 
continued efficient operation of the Reservoir.
  This bill is responsible legislation that will end requests for 
federal funds and will protect the federal government from legal 
liabilities that could be incurred in their operation.
  This legislation is the result of cooperation and coordination 
between Oklahoma City, the McGee Creek Authority, and the Bureau of 
Reclamation. I thank the Bureau of Reclamation for their drafting 
service in preparing the legislation, as well as of course the Senate 
Legislative Counsel. This legislation was requested by Mayor Mick 
Cornett of Oklahoma City, and I am happy to assist in this worthy 
cause.
  I ask unanimous consent to print in the Record the letter of request 
from Mayor Cornett.
  I encourage my colleagues to join me in support of the bill.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:
                                                February 13, 2006.
     Hon. James Inhofe,
     U.S. Senate,
     Washington, DC.
       Dear Chairman Inhofe: The purpose of this letter is to 
     request your assistance in obtaining a federal legislative 
     authorization for the title transfer of the McGee Creek 
     Reservoir dam and associated facilities from the Bureau of 
     Reclamation to the McGee Creek Authority. The McGee Creek 
     Authority is a trust of the State of Oklahoma and also 
     currently operates the dam and associated facilities.
       This title and transfer is supported by the Bureau of 
     Reclamation and will allow Oklahoma City to make capital 
     improvements and upgrades needed to assure the continued 
     efficient operation of the Reservoir.
       Attached is a copy of the background of the Authority's 
     responsibility and the description of the property to be 
     transferred.
           Sincerely,
                                                     Mick Cornett,
                                                            Mayor.
                                 ______
                                 
      By Mr. FRIST (for himself, Mr. Kennedy, Mr. Obama, and Mr. 
        Bingaman):
  S. 4024. A bill to amend the Public Health Service Act to improve the 
health and healthcare of racial and ethnic minority and other health 
disparity populations; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. FRIST. Mr. President, I rise today to discuss a bill that has 
been

[[Page 21579]]

very close to my heart for some time. And that is a bill that will help 
us better understand, and one day eliminate, the health disparities 
that plague this country.
  Many Americans don't realize that a problem exists. But traveling 
through rural Tennessee and spending 20 years in medicine, I know that 
it does.
  The fact of the matter is African-Americans have higher overall rates 
of death and are more likely to report poor health than white or other 
minorities. The death rate for all kinds of cancers is a third higher 
for African-Americans than it is for whites. And there are 8 times as 
many blacks as whites in the United States with HIV-AIDS.
  In Tennessee, African-Americans are 32 percent more likely to die 
from heart disease. The stroke rate for black Tennesseans is 43 percent 
higher than for whites. The infant mortality rate among African-
Americans in Tennessee is almost 3 times as high as it is for whites. 
In a State that ranks 3rd in the Nation for infant mortality--it's a 
hard statistic to swallow.
  Which is why we must change it.
  And that is the goal of the bill before us.
  The intent of this bi-partisan bill is two-fold: to understand the 
root causes of health disparities, and through better understanding 
them, wipe them away.
  To help foster that fuller comprehension of the challenge we face, 
this legislation will direct the Secretary of Health and Human Services 
to collect and report healthcare data by race and ethnicity, as well as 
geographic location, socioeconomic status and health literacy to 
identify and address health care disparities.
  The legislation outlines mechanisms to research the problem, to 
conduct educational outreach to minorities, to increase diversity among 
healthcare professionals, to enhance communication between patients and 
doctors, and to improve the delivery of health care to minorities.
  Through educational outreach we can work to change patient behavior.
  The top 3 causes of death among African-Americans are heart disease, 
cancer, and stroke. Thirteen percent of the adult African-American 
population has diabetes. And the risks of each of these can be 
minimized through healthier diet and tobacco cessation.
  The bill before us establishes grants for programs that will reach 
out to health disparity populations, and teach healthier habits. 
Emphasizing the importance of preventative care is a fundamental step 
in the road to reducing disparities.
  Fostering better communication between healthcare providers and 
health disparity populations can be achieved in part by encouraging 
more minorities to enter the healthcare profession. To that end, the 
bill before us reauthorizes several programs to support educational 
opportunities for minorities in healthcare.
  We have a long history in this country of working to eliminate the 
inequities driven by race, ethnicity, and socioeconomic status. I 
believe that the bill before us today will go a long way in helping us 
realize a day when we are truly a Nation of equals.
  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. 4024

       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 ``Minority 
     Health Improvement and Health Disparity Elimination Act''.
       (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                    TITLE I--EDUCATION AND TRAINING

Sec. 101. Cultural competency and communication for providers.
Sec. 102. Healthcare workforce, education, and training.
Sec. 103. Workforce training to achieve diversity.
Sec. 104. Mid-career health professions scholarship program.
Sec. 105. Cultural competency training.
Sec. 106. Authorization of appropriations; reauthorizations.

                       TITLE II--CARE AND ACCESS

Sec. 201. Care and access.
Sec. 202. Authorization of appropriations.

                          TITLE III--RESEARCH

Sec. 301. Agency for healthcare research and quality.
Sec. 302. Genetic variation and health.
Sec. 303. Evaluations by the Institute of Medicine.
Sec. 304. National Center for Minority Health and Health Disparities 
              reauthorization.
Sec. 305. Authorization of appropriations.

            TITLE IV--DATA COLLECTION, ANALYSIS, AND QUALITY

Sec. 401. Data collection, analysis, and quality.

      TITLE V--LEADERSHIP, COLLABORATION, AND NATIONAL ACTION PLAN

Sec. 501. Office of Minority Health and Health Disparity Elimination.

     SEC. 2. DEFINITIONS.

       In this Act and the amendments made by this Act:
       (1) Cultural competency.--The term ``culturally 
     competent''--
       (A) when used to describe health-related services, means 
     providing healthcare tailored to meet the social, cultural, 
     and linguistic needs of patients from diverse backgrounds; 
     and
       (B) when used to describe education or training, means 
     education or training designed to prepare those receiving the 
     education or training to provide health-related services 
     tailored to meet the social, cultural, and linguistic needs 
     of patients from diverse backgrounds.
       (2) Health disparity population.--The term ``health 
     disparity population'' has the meaning given such term in 
     section 903(d)(1) of the Public Health Service Act (42 U.S.C. 
     299a-1(d)(1)).
       (3) Health literacy.--The term ``health literacy'' means 
     the degree to which an individual has the capacity to obtain, 
     communicate, process, and understand health information 
     (including the language in which the information is provided) 
     and services in order to make appropriate health decisions.
       (4) Minority group.--The term ``minority group'' has the 
     meaning given the term ``racial and ethnic minority group'' 
     in section 1707 of the Public Health Service Act (42 U.S.C. 
     300u-6) (as amended by section 501).
       (5) Practice-based research networks.--The term ``practice-
     based research network'' means a group of ambulatory 
     practices devoted principally to the primary care of 
     patients, and affiliated in their mission to investigate 
     questions related to community-based practice and to improve 
     the quality of primary care
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

                    TITLE I--EDUCATION AND TRAINING

     SEC. 101. CULTURAL COMPETENCY AND COMMUNICATION FOR 
                   PROVIDERS.

       Title II of the Public Health Service Act (42 U.S.C. 202 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 270. INTERNET CLEARINGHOUSE TO IMPROVE CULTURAL 
                   COMPETENCY AND COMMUNICATION BY HEALTHCARE 
                   PROVIDERS.

       ``(a) Establishment.--Not later than 1 year after the date 
     of enactment of the Minority Health Improvement and Health 
     Disparity Elimination Act, the Secretary, acting through the 
     Deputy Assistant Secretary for Minority Health and Health 
     Disparity Elimination, shall assist providers to improve the 
     health and healthcare of racial and ethnic minority and other 
     health disparity populations by developing and maintaining an 
     Internet Clearinghouse within the Office of Minority Health 
     and Health Disparity Elimination that--
       ``(1) increases cultural competency;
       ``(2) improves communication between healthcare providers, 
     staff, and their patients, including those patients with low 
     functional health literacy;
       ``(3) improves healthcare quality and patient satisfaction;
       ``(4) reduces medical errors and healthcare costs; and
       ``(5) reduces duplication of effort regarding translation 
     of materials.
       ``(b) Internet Clearinghouse.--Not later than 12 months 
     after the date of enactment of this section the Secretary, 
     acting through the Deputy Assistant Secretary for Minority 
     Health and Health Disparity Elimination, and in consultation 
     with the Director of the Office for Civil Rights, shall carry 
     out subsection (a) by--
       ``(1) developing and maintaining, through the Office of 
     Minority Health and Health Disparity Elimination, an 
     accessible library and database on the Internet with easily 
     searchable, clinically-relevant information regarding 
     culturally competent healthcare for racial and ethnic 
     minority and other health disparity populations, including 
     Internet links to additional resources that fulfill the 
     purpose of this section;
       ``(2) developing and making templates for visual aids and 
     standard documents with clear explanations that can help 
     patients and consumers access and make informed decisions 
     about healthcare, including--

[[Page 21580]]

       ``(A) administrative and legal documents, including 
     informed consent and advanced directives;
       ``(B) clinical information, including information 
     pertaining to treatment adherence, self-management training 
     for chronic conditions, preventing transmission of disease, 
     and discharge instructions;
       ``(C) patient education and outreach materials, including 
     immunization or screening notices and health warnings; and
       ``(D) Federal health forms and notices;
       ``(3) ensuring that documents described in paragraph (2) 
     are posted in English and non-English languages and are 
     culturally appropriate;
       ``(4) encouraging healthcare providers to customize such 
     documents for their use;
       ``(5) facilitating access to such documents, including 
     distribution in both paper and electronic formats;
       ``(6) providing technical assistance to healthcare 
     providers with respect to the access and use of information 
     described in paragraph (1) including information to help 
     healthcare providers--
       ``(A) understand the concept of cultural competence;
       ``(B) implement culturally competent practices;
       ``(C) care for patients with low functional health 
     literacy, including helping such patients understand and 
     participate in healthcare decisions;
       ``(D) understand and apply Federal guidance and directives 
     regarding healthcare for racial and ethnic minority and other 
     health disparity populations;
       ``(E) obtain reimbursement for provision of culturally 
     competent services;
       ``(F) understand and implement bioinformatics and health 
     information technology in order to improve healthcare for 
     racial and ethnic minority and other health disparity 
     populations; and
       ``(G) conduct other activities determined appropriate by 
     the Secretary;
       ``(7) providing educational materials to patients, 
     representatives of community-based organizations, and the 
     public with respect to the access and use of information 
     described in paragraph (1), including--
       ``(A) information to help such individuals--
       ``(i) understand the concept of cultural competence, and 
     the role of cultural competence in the delivery of 
     healthcare;
       ``(ii) work with healthcare providers to implement 
     culturally competent practices; and
       ``(iii) understand the concept of low functional health 
     literacy, and the barriers it presents to care; and
       ``(B) other material determined appropriate by the 
     Secretary; and
       ``(8) supporting initiatives that the Secretary determines 
     to be useful to fulfill the purposes of the Internet 
     Clearinghouse.
       ``(c) Definitions.--The definitions contained in section 2 
     of the Minority Health Improvement and Health Disparity 
     Elimination Act shall apply for purposes of this section.''.

     SEC. 102. HEALTHCARE WORKFORCE, EDUCATION, AND TRAINING.

       (a) In General.--Part F of title VII of the Public Health 
     Service Act (42 U.S.C. 295j et seq.) is amended by inserting 
     after section 792 the following:

     ``SEC. 793. HEALTHCARE WORKFORCE, EDUCATION, AND TRAINING.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration and the Deputy Assistant Secretary for 
     Minority Health and Health Disparity Elimination, shall 
     establish an aggregated and disaggregated database on health 
     professional students, including applicants, matriculates, 
     and graduates.
       ``(b) Requirement to Collect Data.--
       ``(1) In general.--Each health professions school described 
     in paragraph (2) that receives Federal funds, shall collect 
     race and ethnicity data, primary language data, and other 
     health disparity data, as feasible and pursuant to subsection 
     (d), concerning the students described in subsection (a), as 
     well as intended geographical site of practice and intended 
     discipline of practice for graduates. In collecting such 
     data, a school shall--
       ``(A) at a minimum, use the categories for race and 
     ethnicity established by the Director of the Office of 
     Management and Budget in effect on the date of enactment of 
     the Minority Health Improvement and Health Disparity 
     Elimination Act; and
       ``(B) if practicable, collect data on additional population 
     groups if such data can be aggregated into the minimum race 
     and ethnicity data categories.
       ``(2) Health professions school.--A health professions 
     school described under this paragraph is a school of medicine 
     or osteopathic medicine, public health, nursing, dentistry, 
     optometry, pharmacy, allied health, podiatric medicine, or 
     veterinary medicine, or a graduate program in mental health 
     practice.
       ``(c) Reporting.--Each school or program described under 
     subsection (b), shall, on an annual basis, report to the 
     Secretary data on race and ethnicity and primary language 
     collected under this section for inclusion in the database 
     established under subsection (a). The Secretary shall ensure 
     that such disparity data is reported to Congress and made 
     available to the public.
       ``(d) Health Disparity Measures.--The Secretary shall 
     develop, report, and disseminate measures of the other health 
     data referenced in section 793(b)(1), to ensure uniform and 
     consistent collection and reporting of these measures by 
     health professions schools. In developing such measures, the 
     Secretary shall take into consideration health disparity 
     indicators developed pursuant to section 2901(c).
       ``(e) Use of Data.--Data reported pursuant to subsection 
     (c) shall be used by the Secretary to conduct ongoing short- 
     and long-term analyses of diversity within health professions 
     schools and the health professions. The Secretary shall 
     ensure that such analyses are reported to Congress and made 
     available to the public.
       ``(f) Cultural Competency Training.--The Secretary shall 
     collect and report data from health professions schools 
     regarding the extent to which cultural competency training is 
     provided to health professions students, and conduct periodic 
     assessments regarding the preparedness of such students to 
     care for patients from racial and ethnic minority and other 
     health disparity populations.
       ``(g) Privacy.--The Secretary shall ensure that all data 
     collected under this section is protected from inappropriate 
     internal and external use by any entity that collects, 
     stores, or receives the data and that such data is collected 
     without personally identifiable information.
       ``(h) Partnership.--The Secretary may contract with 
     external entities to fulfill the requirements under this 
     section if such entities have demonstrated expertise and 
     experience collecting, analyzing, and reporting data required 
     under this section for health professional students.''.
       (b) National Health Service Corps Program.--
       (1) Assignment of corps personnel.--Section 333(a)(3) of 
     the Public Health Service Corps (42 U.S.C. 254f(a)(3)) is 
     amended to read as follows:
       ``(3)(A) In approving applications for assignment of 
     members of the Corps the Secretary shall not discriminate 
     against application from entities which are not receiving 
     Federal financial assistance under this Act.
       ``(B) In approving such applications, the Secretary shall--
       ``(i) give preference to applications in which a nonprofit 
     entity or public entity shall provide a site to which Corps 
     members may be assigned; and
       ``(ii) give highest preference to applications--
       ``(I) from entities described in clause (i) that are 
     federally qualified health centers as defined in section 
     1905(l)(2)(B) of the Social Security Act; and
       ``(II) from entities described in clause (i) that primarily 
     serve racial and ethnic minority and other health disparity 
     populations with annual incomes at or below twice those set 
     forth in the most recent poverty guidelines issued by the 
     Secretary pursuant to section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)).''.
       (2) Priorities in assignment of corps personnel.--Section 
     333A of the Public Health Service Act (42 U.S.C. 254f-1) is 
     amended--
       (A) in subsection (a)--
       (i) by redesignating paragraphs (1), (2), and (3) as 
     paragraphs (2), (3), and (4), respectively; and
       (ii) by striking ``shall--'' and inserting ``shall--
       ``(1) give preference to applications as set forth in 
     subsection (a)(3) of section 333;''; and
       (B) by striking ``subsection (a)(1)'' each place it appears 
     and inserting ``subsection (a)(2)''.
       (3) Conforming amendment.--Section 338I(c)(3)(B)(ii) of the 
     Public Health Service Act (42 U.S.C. 254q-1(c)(3)(B)(ii)) is 
     amended by striking ``section 333A(a)(1)'' and inserting 
     ``section 333A(a)(2)''.

     SEC. 103. WORKFORCE TRAINING TO ACHIEVE DIVERSITY.

       (a) Centers of Excellence.--Section 736 of the Public 
     Health Service Act (42 U.S.C. 293) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) In General.--The Secretary shall make grants to, and 
     enter into contracts with, public and nonprofit private 
     health or educational entities, including designated health 
     professions schools described in subsection (c), for the 
     purpose of assisting the entities in supporting programs of 
     excellence in health professions education for 
     underrepresented minorities in health professions.'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Required Use of Funds.--The Secretary may not make a 
     grant under subsection (a) unless the designated health 
     professions school involved agrees, subject to subsection 
     (c)(1)(C), to use the funds awarded under the grant to--
       ``(1) develop a large competitive applicant pool through 
     linkages with institutions of higher education, local school 
     districts, and other community-based entities and establish 
     an education pipeline for health professions careers;
       ``(2) establish, strengthen, or expand programs to enhance 
     the academic performance of underrepresented minority in 
     health professions students attending the school;
       ``(3) improve the capacity of such school to train, 
     recruit, and retain underrepresented

[[Page 21581]]

     minority faculty members including the payment of such 
     stipends and fellowships as the Secretary may determine 
     appropriate;
       ``(4) carry out activities to improve the information 
     resources, clinical education, curricula, and cultural and 
     linguistic competence of the graduates of the school, as it 
     relates to minority health and other health disparity issues;
       ``(5) facilitate faculty and student research on health 
     issues particularly affecting racial and ethnic minority and 
     other health disparity populations, including research on 
     issues relating to the delivery of culturally competent 
     healthcare (as defined in section 270);
       ``(6) carry out a program to train students of the school 
     in providing health services to racial and ethnic minority 
     and other health disparity populations (as defined in section 
     903(d)(1)) through training provided to such students at 
     community-based health facilities that--
       ``(A) provide such health services; and
       ``(B) are located at a site remote from the main site of 
     the teaching facilities of the school;
       ``(7) provide stipends as the Secretary determines 
     appropriate, in amounts as the Secretary determines 
     appropriate; and
       ``(8) conduct accountability and other reporting 
     activities, as required by the Secretary in subsection 
     (i).'';
       (3) in subsection (c)--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Designated schools.--
       ``(A) In general.--The designated health professions 
     schools referred to in subsection (a) are such schools that 
     meet each of the conditions specified in subparagraphs (B) 
     and (C), and that--
       ``(i) meet each of the conditions specified in paragraph 
     (2)(A);
       ``(ii) meet each of the conditions specified in paragraph 
     (3);
       ``(iii) meet each of the conditions specified in paragraph 
     (4); or
       ``(iv) meet each of the conditions specified in paragraph 
     (5).
       ``(B) General conditions.--The conditions specified in this 
     subparagraph are that a designated health professions 
     school--
       ``(i) has a significant number of underrepresented minority 
     in health professions students enrolled in the school, 
     including individuals accepted for enrollment in the school;
       ``(ii) has been effective in assisting such students of the 
     school to complete the program of education and receive the 
     degree involved;
       ``(iii) has been effective in recruiting such students to 
     enroll in and graduate from the school, including providing 
     scholarships and other financial assistance to such students 
     and encouraging such students from all levels of the 
     educational pipeline to pursue health professions careers; 
     and
       ``(iv) has made significant recruitment efforts to increase 
     the number of underrepresented minority in health professions 
     individuals serving in faculty or administrative positions at 
     the school.
       ``(C) Consortium.--The condition specified in this 
     subparagraph is that, in accordance with subsection (e)(1), 
     the designated health profession school involved has with 
     other health profession schools (designated or otherwise) 
     formed a consortium to carry out the purposes described in 
     subsection (b) at the schools of the consortium.
       ``(D) Application of criteria to other programs.--In the 
     case of any criteria established by the Secretary for 
     purposes of determining whether schools meet the conditions 
     described in subparagraph (B), this section may not, with 
     respect to racial and ethnic minorities, be construed to 
     authorize, require, or prohibit the use of such criteria in 
     any program other than the program established in this 
     section.'';
       (B) by amending paragraph (2) to read as follows:
       ``(2) Centers of excellence at certain historically black 
     colleges and universities.--
       ``(A) Conditions.--The conditions specified in this 
     subparagraph are that a designated health professions school 
     is a school described in section 799B(1).
       ``(B) Use of grant.--In addition to the purposes described 
     in subsection (b), a grant under subsection (a) to a 
     designated health professions school meeting the conditions 
     described in subparagraph (A) may be expended--
       ``(i) to develop a plan to achieve institutional 
     improvements, including financial independence, to enable the 
     school to support programs of excellence in health 
     professions education for underrepresented minority 
     individuals; and
       ``(ii) to provide improved access to the library and 
     informational resources of the school.
       ``(C) Exception.--The requirements of paragraph (1)(C) 
     shall not apply to a historically black college or university 
     that receives funding under this paragraph or paragraph 
     (5).''; and
       (C) by amending paragraphs (3) through (5) to read as 
     follows:
       ``(3) Hispanic centers of excellence.--The conditions 
     specified in this paragraph are that--
       ``(A) with respect to Hispanic individuals, each of clauses 
     (i) through (iv) of paragraph (1)(B) applies to the 
     designated health professions school involved;
       ``(B) the school agrees, as a condition of receiving a 
     grant under subsection (a) of this section, that the school 
     will, in carrying out the duties described in subsection (b) 
     of this section, give priority to carrying out the duties 
     with respect to Hispanic individuals; and
       ``(C) the school agrees, as a condition of receiving a 
     grant under subsection (a) of this section, that--
       ``(i) the school will establish an arrangement with 1 or 
     more public or nonprofit community-based Hispanic serving 
     organizations, or public or nonprofit private institutions of 
     higher education, including schools of nursing, whose 
     enrollment of students has traditionally included a 
     significant number of Hispanic individuals, the purposes of 
     which will be to cary out a program--

       ``(I) to identify Hispanic students who are interested in a 
     career in the health profession involved; and
       ``(II) to facilitate the educational preparation of such 
     students to enter the health professions school; and

       ``(ii) the school will make efforts to recruit Hispanic 
     students, including students who have participated in the 
     undergraduate or other matriculation program carried out 
     under arrangements established by the school pursuant to 
     clause (i)(II) and will assist Hispanic students regarding 
     the completion of the educational requirements for a degree 
     from the school.
       ``(4) Native american centers of excellence.--Subject to 
     subsection (e), the conditions specified in this paragraph 
     are that--
       ``(A) with respect to Native Americans, each of clauses (i) 
     through (iv) of paragraph (1)(B) applies to the designated 
     health professions school involved;
       ``(B) the school agrees, as a condition of receiving a 
     grant under subsection (a) of this section, that the school 
     will, in carrying out the duties described in subsection (b) 
     of this section, give priority to carrying out the duties 
     with respect to Native Americans; and
       ``(C) the school agrees, as a condition of receiving a 
     grant under subsection (a) of this section, that--
       ``(i) the school will establish an arrangement with 1 or 
     more public or nonprofit private institutions of higher 
     education, including schools of nursing, whose enrollment of 
     students has traditionally included a significant number of 
     Native Americans, the purpose of which arrangement will be to 
     carry out a program--

       ``(I) to identify Native American students, from the 
     institutions of higher education referred to in clause (i), 
     who are interested in health professions careers; and
       ``(II) to facilitate the educational preparation of such 
     students to enter the designated health professions school; 
     and

       ``(ii) the designated health professions school will make 
     efforts to recruit Native American students, including 
     students who have participated in the undergraduate program 
     carried out under arrangements established by the school 
     pursuant to clause (i) and will assist Native American 
     students regarding the completion of the educational 
     requirements for a degree from the designated health 
     professions school.
       ``(5) Other centers of excellence.--The conditions 
     specified in this paragraph are--
       ``(A) with respect to other centers of excellence, the 
     conditions described in clauses (i) through (iv) of paragraph 
     (1)(B); and
       ``(B) that the health professions school involved has an 
     enrollment of underrepresented minorities in health 
     professions significantly above the national average for such 
     enrollments of health professions schools.''; and
       (4) by striking subsection (h) and inserting the following:
       ``(h) Formula for Allocations.--
       ``(1) Allocations.--Based on the amount appropriated under 
     section 106(a) of the Minority Health Improvement and Health 
     Disparity Elimination Act for a fiscal year, the following 
     subparagraphs shall apply as appropriate:
       ``(A) In general.--If the amounts appropriated under 
     section 106(a) of the Minority Health Improvement and Health 
     Disparity Elimination Act for a fiscal year are $24,000,000 
     or less--
       ``(i) the Secretary shall make available $12,000,000 for 
     grants under subsection (a) to health professions schools 
     that meet the conditions described in subsection (c)(2)(A); 
     and
       ``(ii) and available after grants are made with funds under 
     clause (i), the Secretary shall make available--

       ``(I) 60 percent of such amount for grants under subsection 
     (a) to health professions schools that meet the conditions 
     described in paragraph (3) or (4) of subsection (c) 
     (including meeting the conditions under subsection (e)); and
       ``(II) 40 percent of such amount for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in subsection (c)(5).

       ``(B) Funding in excess of $24,000,000.--If amounts 
     appropriated under section 106(a) of the Minority Health 
     Improvement and Health Disparity Elimination Act for a fiscal 
     year exceed $24,000,000 but are less than $30,000,000--

[[Page 21582]]

       ``(i) 80 percent of such excess amounts shall be made 
     available for grants under subsection (a) to health 
     professions schools that meet the requirements described in 
     paragraph (3) or (4) of subsection (c) (including meeting 
     conditions pursuant to subsection (e)); and
       ``(ii) 20 percent of such excess amount shall be made 
     available for grants under subsection (a) to health 
     professions schools that meet the conditions described in 
     subsection (c)(5).
       ``(C) Funding in excess of $30,000,000.--If amounts 
     appropriated under section 106(a) of the Minority Health 
     Improvement and Health Disparity Elimination Act for a fiscal 
     year exceed $30,000,000 but are less than $40,000,000, the 
     Secretary shall make available--
       ``(i) not less than $12,000,000 for grants under subsection 
     (a) to health professions schools that meet the conditions 
     described in subsection (c)(2)(A);
       ``(ii) not less than $12,000,000 for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in paragraph (3) or (4) of subsection 
     (c) (including meeting conditions pursuant to subsection 
     (e));
       ``(iii) not less than $6,000,000 for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in subsection (c)(5); and
       ``(iv) after grants are made with funds under clauses (i) 
     through (iii), any remaining excess amount for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in paragraph (2)(A), (3), (4), or (5) of 
     subsection (c).
       ``(D) Funding in excess of $40,000,000.--If amounts 
     appropriated under section 106(a) of the Minority Health 
     Improvement and Health Disparity Elimination Act for a fiscal 
     year are $40,000,000 or more, the Secretary shall make 
     available--
       ``(i) not less than $16,000,000 for grants under subsection 
     (a) to health professions schools that meet the conditions 
     described in subsection (c)(2)(A);
       ``(ii) not less than $16,000,000 for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in paragraph (3) or (4) of subsection 
     (c) (including meeting conditions pursuant to subsection 
     (e));
       ``(iii) not less than $8,000,000 for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in subsection (c)(5); and
       ``(iv) after grants are made with funds under clauses (i) 
     through (iii), any remaining funds for grants under 
     subsection (a) to health professions schools that meet the 
     conditions described in paragraph (2)(A), (3), (4), or (5) of 
     subsection (c).
       ``(2) No limitation.--Nothing in this subsection shall be 
     construed as limiting the centers of excellence referred to 
     in this section to the designated amount, or to preclude such 
     entities from competing for grants under this section.
       ``(3) Maintenance of effort.--
       ``(A) In general.--With respect to activities for which a 
     grant made under this part are authorized to be expended, the 
     Secretary may not make such a grant to a center of excellence 
     for any fiscal year unless the center agrees to maintain 
     expenditures of non-Federal amounts for such activities at a 
     level that is not less than the level of such expenditures 
     maintained by the center for the fiscal year preceding the 
     fiscal year for which the school receives such a grant.
       ``(B) Use of federal funds.--With respect to any Federal 
     amounts received by a center of excellence and available for 
     carrying out activities for which a grant under this part is 
     authorized to be expended, the center shall, before expending 
     the grant, expend the Federal amounts obtained from sources 
     other than the grant, unless given prior approval from the 
     Secretary.
       ``(i) Evaluations.--
       ``(1) Advisory committee.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of the Minority Health Improvement and Health 
     Disparity Elimination Act, the Secretary shall establish and 
     appoint the members of an advisory committee composed of 
     representatives of government agencies, including the Health 
     Resources and Services Administration, the Office of Minority 
     Health and Health Disparity Elimination, and the Indian 
     Health Service, community stakeholders and experts in 
     identifying and addressing the health concerns of racial and 
     ethnic minority and other health disparity populations, and 
     designees from health professions schools described in 
     subsection (b).
       ``(B) Duties.--The advisory committee shall develop and 
     recommend performance measures with which to assess, based on 
     data to be compiled by recipients of grants or contracts 
     under this section or section 736, 737, 738, or 739, the 
     extent to which the program described in this section and 
     sections 736, 737, 738, and 739 has met the purpose of this 
     part. The advisory committee shall submit such 
     recommendations to the Administrator of the Health Resources 
     and Services Administration not later than 6 months after the 
     appointment of the advisory committee.
       ``(C) Notification.--Not later than 30 days after the 
     submission of the recommendations, the Administrator of the 
     Health Resources and Services Administration shall review the 
     recommendations and establish performance measures described 
     in subparagraph (B), and the Administrator shall notify 
     recipients of grants or contracts under this section or 
     section 736, 737, 738, or 739 of the new performance measures 
     and make requirements related to the performance measures 
     publicly available both on the website of the Administration 
     and as part of any notifications of awards released to 
     entities receiving the grants or contracts.
       ``(2) Data collection and annual evaluations.--
       ``(A) In general.--The Administrator of the Health 
     Resources and Services Administration shall collect annual 
     data from recipients of grants or contracts under this 
     section or section 736, 737, 738, or 739 on the performance 
     measures established under paragraph (1).
       ``(B) Biannual meeting.--The Administrator of the Health 
     Resources and Services Administration shall convene a meeting 
     of the advisory committee established under paragraph (1) not 
     less than twice per year. At the meeting, the advisory 
     committee shall recommend any necessary changes to such 
     performance measures to improve data collection and short-
     term evaluation with respect to the programs carried out 
     under this section or section 736, 737, 738, or 739, and 
     provide technical assistance as necessary.
       ``(3) Updates.--The Administrator of the Health Resources 
     and Services Administration shall determine whether to 
     incorporate the recommended changes as described in paragraph 
     (2)(B) and provide technical assistance as necessary. The 
     Administrator shall not penalize a current recipient of a 
     grant or contract under this section or section 736, 737, 
     738, or 739 for failing to comply with the revised data 
     collection or performance measure requirements if the 
     recipient demonstrates an inability to provide additional 
     data mandated under the requirements.
       ``(4) Accountability.--The Administrator shall review and 
     take into consideration performance measurement data 
     previously collected from recipients of grants or contracts 
     under this section or section 736, 737, 738, or 739 when 
     deciding to renew the grants or contracts of such 
     recipients.''.
       (b) Cooperative Agreements for Online Degree Programs at 
     Schools of Public Health and Schools of Allied Health.--Part 
     B of title VII of the Public Health Service Act (42 U.S.C. 
     293 et seq.) is amended by adding at the end the following:

     ``SEC. 742. COOPERATIVE AGREEMENTS FOR ONLINE DEGREE 
                   PROGRAMS.

       ``(a) Cooperative Agreements.--The Secretary shall award 
     cooperative agreements to accredited schools of public 
     health, schools of allied health, and public health programs 
     to design and implement a degree program over the Internet 
     (referred to in this section as an `online degree program').
       ``(b) Application.--To be eligible to receive a cooperative 
     agreement under subsection (a), an accredited school of 
     public health, school of allied health, or public health 
     program shall submit an application at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       ``(c) Priority.--In awarding cooperative agreements under 
     this section, the Secretary shall give priority to any 
     accredited school of public health, school of allied health, 
     or public health program that serves a disproportionate 
     number of individuals from racial and ethnic minority and 
     other health disparity populations.
       ``(d) Requirements.--Awardees shall use an award under 
     subsection (a) to design and implement an online degree 
     program that meets the following conditions:
       ``(1) Limiting enrollment to individuals who have obtained 
     a secondary school diploma or a recognized equivalent.
       ``(2) Maintaining significant enrollment and graduation of 
     underrepresented minorities in health professions.''.
       (c) Definition.--Part B of title VII of the Public Health 
     Service Act (42 U.S.C. 293 et seq.) is amended by inserting 
     after the part heading the following:

     ``SEC. 735A. APPLICATION OF DEFINITION.

       ``The definition contained in section 738(b)(5) shall apply 
     for purposes of this part, except that such definition shall 
     also apply in the case of references to `underrepresented 
     minority students', `underrepresented minority faculty 
     members', `underrepresented minority faculty administrators', 
     and `underrepresented minorities in health professions'.''.

     SEC. 104. MID-CAREER HEALTH PROFESSIONS SCHOLARSHIP PROGRAM.

       Subpart 2 of part E of title VII of the Public Health 
     Service Act (42 U.S.C. 295 et seq.) is amended--
       (1) in section 770, by inserting ``(other than section 
     771)'' after ``this subpart'';
       (2) by redesignating section 770 as section 771; and
       (3) by inserting after section 769 the following:

     ``SEC. 770. MID-CAREER HEALTH PROFESSIONS SCHOLARSHIP 
                   PROGRAM.

       ``(a) In General.--The Secretary may make grants to 
     eligible schools to award scholarships to eligible 
     individuals to attend the school involved, for the purpose of 
     enabling the individuals to make a career

[[Page 21583]]

     change from a non-health profession to a health profession.
       ``(b) Application.--To receive a grant under this section, 
     an eligible school shall submit to the Secretary an 
     application at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(c) Use of Funds.--Amounts awarded as a scholarship under 
     this section may be expended only for tuition expenses, other 
     reasonable educational expenses, and reasonable living 
     expenses incurred in the attendance of the school involved.
       ``(d) Definitions.--In this section:
       ``(1) Eligible school.--The term `eligible school' means an 
     accredited school of medicine, osteopathic medicine, 
     dentistry, nursing, pharmacy, podiatric medicine, optometry, 
     veterinary medicine, public health, chiropractic, allied 
     health, a school offering a graduate program in behavioral 
     and mental health practice, or an entity providing programs 
     for the training of physician assistants.
       ``(2) Eligible individual.--The term `eligible individual' 
     means an individual who is an underrepresented minority 
     individual who has obtained a secondary school diploma or its 
     recognized equivalent.''.

     SEC. 105. CULTURAL COMPETENCY TRAINING.

       Part B of title VII of the Public Health Service Act (42 
     U.S.C. 293 et seq.), as amended by section 104, is amended by 
     adding at the end the following:

     ``SEC. 743. CULTURAL COMPETENCY TRAINING.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration and in collaboration with the Office of 
     Minority Health and Health Disparity Elimination and Agency 
     for Healthcare Research and Quality, shall support the 
     development, evaluation, and dissemination of model curricula 
     for cultural competency training for use in health 
     professions schools and continuing education programs, and 
     other purposes determined appropriate by the Secretary.
       ``(b) Curricula.--In carrying out subsection (a), the 
     Secretary shall collaborate with health professional 
     societies, licensing and accreditation entities, health 
     professions schools, and experts in minority health and 
     cultural competency, and other organizations as determined 
     appropriate by the Secretary. Such curricula shall include a 
     focus on cultural competency measures and cultural competency 
     self-assessment methodology for health providers, systems and 
     institutions.
       ``(c) Dissemination.--
       ``(1) In general.--Such model curricula should be 
     disseminated through the Internet Clearinghouse under section 
     270 and other means as determined appropriate by the 
     Secretary.
       ``(2) Evaluation.--The Secretary shall evaluate adoption 
     and the implementation of cultural competency training 
     curricula, and facilitate inclusion of cultural competency 
     measures in quality measurement systems as appropriate.''.

     SEC. 106. AUTHORIZATION OF APPROPRIATIONS; REAUTHORIZATIONS.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated--
       (1) such sums as may be necessary for each of fiscal years 
     2007 through 2011, to carry out the amendments made by 
     sections 101 and 102 of this title (adding sections 270 and 
     793 to the Public Health Service Act);
       (2) $45,000,000 for fiscal year 2007, and such sums as may 
     be necessary for each of fiscal years 2008 through 2011, to 
     carry out the amendments made by section 103(a) (relating to 
     centers of excellence in section 736 of the Public Health 
     Service Act);
       (3) such sums as may be necessary for each of fiscal years 
     2007 through 2011, to carry out the amendments made by 
     section 103(b) (adding section 742 to the Public Health 
     Service Act);
       (4) such sums as may be necessary for each of fiscal years 
     2007 through 2011, to carry out the amendments made by 
     section 104(b) (adding section 770 to the Public Health 
     Service Act); and
       (5) such sums as may be necessary for each of fiscal years 
     2007 through 2011, to carry out the amendment made by section 
     105 (adding section 743 to the Public Health Service Act).
       (b) Reauthorizations.--The following programs are 
     reauthorized as follows:
       (1) Educational assistance in the health professions 
     regarding individuals from disadvantaged background.--Section 
     740(c) of the Public Health Service Act (42 U.S.C. 293a(c)) 
     is amended by striking the first sentence and inserting the 
     following: ``For the purpose of grants and contracts under 
     section 739(a)(1), there is authorized to be appropriated 
     $60,000,000 for fiscal year 2007 and such sums as may be 
     necessary for each of fiscal years 2008 through 2011.''.
       (2) Scholarships for disadvantaged students.--Section 
     740(a) of the Public Health Service Act (42 U.S.C. 293a(a)) 
     is amended by striking ``$37,000,000'' and all that follows 
     through ``through 2002'' and inserting ``$51,000,000 for 
     fiscal year 2007, and such sums as may be necessary for each 
     of fiscal years 2008 through 2011''.
       (3) Loan repayments and fellowships.--Section 740(b) of the 
     Public Health Service Act (42 U.S.C. 293a(b)) is amended by 
     striking ``$1,100,000'' and all that follows through 
     ``through 2002'' and inserting ``$1,700,000 for fiscal year 
     2007, and such sums as may be necessary for each of fiscal 
     years 2008 through 2011''.
       (4) Grants for health professions education.--Section 741 
     of the Public Health Service Act (42 U.S.C. 293e) is amended 
     in subsection (b), by striking ``$3,500,000'' and all that 
     follows through the period and inserting ``such sums as may 
     be necessary for each of fiscal years 2007 through 2011.''.

                       TITLE II--CARE AND ACCESS

     SEC. 201. CARE AND ACCESS.

       Part P of title III of the Public Health Service Act (42 
     U.S.C. 280g et seq.) is amended by--
       (1) redesignating the second section 339O (as added by 
     section 504 of the Violence Against Women and Department of 
     Justice Reauthorization Act of 2005) as section 399P; and
       (2) adding at the end the following:

     ``SEC. 399Q. ACCESS, AWARENESS, AND OUTREACH ACTIVITIES.

       ``(a) Demonstration Projects.--The Secretary shall award 
     multiyear contracts or competitive grants to eligible 
     entities to support demonstration projects designed to 
     improve the health and healthcare of racial and ethnic 
     minority and other health disparity populations through 
     improved access to healthcare, patient navigators, and health 
     literacy education and services.
       ``(b) Eligibility.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means an 
     organization or a community-based consortium.
       ``(2) Organization.--The term `organization' means--
       ``(A) a hospital, health plan, or clinic;
       ``(B) an academic institution;
       ``(C) a State health agency;
       ``(D) an Indian Health Service hospital or clinic, Indian 
     tribal health facility, or urban Indian facility;
       ``(E) a nonprofit organization, including a faith-based 
     organization or consortium, to the extent that a contract or 
     grant awarded to such an entity is consistent with the 
     requirements of section 1955;
       ``(F) a primary care practice-based research network; and
       ``(G) any other similar entity determined to be appropriate 
     by the Secretary.
       ``(3) Community-based consortium.--The term `community-
     based consortium' means a partnership that--
       ``(A) includes--
       ``(i) individuals who are representatives of organizations 
     of racial and ethnic minority and other health disparity 
     populations;
       ``(ii) community leaders and leaders of community-based 
     organizations;
       ``(iii) healthcare providers, including providers who treat 
     racial and ethnic minority and other health disparity 
     populations; and
       ``(iv) experts in the area of social and behavioral 
     science, who have knowledge, training, or practical 
     experience in health policy, advocacy, cultural or linguistic 
     competency, or other relevant areas as determined by the 
     Secretary; and
       ``(B) is located within a federally- or State-designated 
     medically underserved area, a federally designated health 
     provider shortage area, or an area with a significant 
     population of racial and ethnic minorities.
       ``(c) Application.--An eligible entity seeking a contract 
     or grant under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require, including 
     assurances that the eligible entity will--
       ``(1) target populations that are members of racial and 
     ethnic minority groups and health disparity populations 
     through specific outreach activities;
       ``(2) collaborate with appropriate community organizations 
     and include meaningful community participation in planning, 
     implementation, and evaluation of activities;
       ``(3) demonstrate capacity to promote culturally competent 
     and appropriate care for target populations with 
     consideration for health literacy;
       ``(4) develop a plan for long-term sustainability;
       ``(5) evaluate the effectiveness of activities under this 
     section, within an appropriate timeframe, which shall include 
     a focus on quality and outcomes performance measures to 
     ensure that the activities are meeting the intended goals, 
     and that the entity is able to disseminate findings from such 
     evaluations;
       ``(6) provide ongoing outreach and education to the health 
     disparity populations served;
       ``(7) demonstrate coordination between public and private 
     entities; and
       ``(8) assist individuals and groups in accessing public and 
     private programs that will help eliminate disparities in 
     health and healthcare.
       ``(d) Priorities.--In awarding contracts and grants under 
     this section, the Secretary shall give priority to applicants 
     that are--
       ``(1) safety-net hospitals, defined as hospitals with a low 
     income utilization rate (as defined in Section 1923(b)(3) of 
     the Social Security Act (42 U.S.C 1396r-4(b)(3))) greater 
     than 25 percent;
       ``(2) community health centers, as defined in section 
     1905(l)(2)(B) of the Social Security Act (42 U.S.C. 
     1396d(l)(2)(B)); and
       ``(3) other health systems that--

[[Page 21584]]

       ``(A) by legal mandate or explicitly adopted mission, 
     provide patients with access to services regardless of their 
     ability to pay;
       ``(B) provide care or treatment for a substantial number of 
     patients who are uninsured, are receiving assistance under a 
     State program under title XIX of the Social Security Act, or 
     are members of vulnerable populations, as determined by the 
     Secretary;
       ``(C) serve a disproportionate percentage of patients from 
     racial and ethnic minority and other health disparity 
     populations;
       ``(D) provide an assurance that amounts received under the 
     grant or contract will be used to implement strategies that 
     address patients' linguistic needs, where necessary, and 
     recruit and maintain diverse staff and leadership; and
       ``(E) provide an assurance that amounts received under the 
     grant or contract will be used to support quality improvement 
     activities for patients from racial and ethnic minority and 
     other health disparity populations.
       ``(e) Use of Funds.--An eligible entity shall use such 
     amounts received under this section for demonstration 
     projects to--
       ``(1) address health disparities in the United States-
     Mexico Border Area, as defined in section 8 of the United 
     States-Mexico Border Health Commission Act (22 U.S.C. 290n-
     6), relating to health disparities in the areas of--
       ``(A) maternal and child health;
       ``(B) primary care and preventive health, including health 
     education and promotion;
       ``(C) public health and public infrastructure;
       ``(D) oral health;
       ``(E) behavioral and mental health and substance abuse;
       ``(F) health conditions that have a disproportionate impact 
     on racial and ethnic minorities and a high prevalence in the 
     Border Area;
       ``(G) health services research;
       ``(H) the health impacts of exposure to environmental 
     hazards;
       ``(I) workforce training and development; or
       ``(J) other areas determined appropriate by the Secretary;
       ``(2) implement the best practices in disease management, 
     including those that address co-occurring chronic conditions, 
     as defined by the public- private partnership established 
     under section 918(b), target patients with low functional 
     health literacy, and, as feasible, incorporate health 
     information technology;
       ``(3) evaluate methods for strengthening the health 
     coverage of, and continuity of coverage of, migratory 
     agricultural workers and seasonal agricultural workers, as 
     such terms are defined in section 330(g), and workers in 
     other industries with traditionally low rates of employer-
     sponsored health insurance;
       ``(4) train community health workers to educate, guide, and 
     provide outreach in a community setting regarding problems 
     prevalent among medically underserved populations (as defined 
     in section 330(b)); or
       ``(5) identify, educate, and enroll eligible patients from 
     racial and ethnic minorities and other health disparity 
     populations into clinical trials.
       ``(f) Report.--Not later than 3 years after the date an 
     entity receives a contract or grant under this section and 
     annually thereafter, the entity shall provide to the 
     Secretary a report containing the results of any evaluation 
     conducted pursuant to subsection (c)(5).
       ``(g) Dissemination of Findings.--The Secretary shall, as 
     appropriate, disseminate to public and private entities, 
     including Congress, the findings made in evaluations 
     described under subsection (f).

     ``SEC. 399R. GRANTS FOR RACIAL AND ETHNIC APPROACHES TO 
                   COMMUNITY HEALTH.

       ``(a) Purpose.--It is the purpose of this section to 
     provide for the awarding of grants to assist communities in 
     mobilizing and organizing resources in support of effective 
     and sustainable programs that will reduce or eliminate 
     disparities in health and healthcare experienced by racial 
     and ethnic minority individuals.
       ``(b) Authority to Award Grants.--The Secretary, acting 
     through the Centers for Disease Control and Prevention and 
     the Office of Minority Health and Health Disparity 
     Elimination, shall award planning, implementation, and 
     evaluation grants to eligible entities to assist in 
     designing, implementing, and evaluating culturally and 
     linguistically appropriate, science-based and community-
     driven sustainable strategies to eliminate racial and ethnic 
     health and healthcare disparities.
       ``(c) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall--
       ``(1) represent a coalition--
       ``(A) whose principal purpose is to develop and implement 
     interventions to reduce or eliminate a health or healthcare 
     disparity in a targeted racial or ethnic minority group in 
     the community served by the coalition; and
       ``(B) that includes--
       ``(i) at least 3 members selected from among--

       ``(I) public health departments;
       ``(II) community-based organizations;
       ``(III) university and research organizations;
       ``(IV) American Indian tribal organizations, national 
     American Indian organizations, Indian Health Service, or 
     organizations serving Alaska Natives;
       ``(V) organizations serving Native Hawaiians;
       ``(VI) organizations serving Pacific Islanders; and
       ``(VII) interested public or private healthcare providers 
     or organizations as deemed appropriate by the Secretary; and

       ``(ii) at least 1 member from a community-based 
     organization that represents the targeted racial or ethnic 
     minority group; and
       ``(2) submit to the Secretary an application at such time, 
     in such manner, and containing such information as the 
     Secretary may require, which shall include--
       ``(A) a description of the targeted racial or ethnic 
     population in the community to be served under the grant;
       ``(B) a description of at least 1 health disparity that 
     exists in the racial or ethnic targeted population, including 
     infant mortality, breast and cervical cancer screening and 
     management, cardiovascular disease, diabetes, child and adult 
     immunization levels, or HIV/AIDS; and
       ``(C) a demonstration of a proven record of accomplishment 
     of the coalition members in serving and working with the 
     targeted community.
       ``(d) Planning Grants.--
       ``(1) In general.--The Secretary shall award one-time 
     grants to eligible entities described in subsection (c) to 
     support the planning and development of culturally and 
     linguistically appropriate programs that utilize science-
     based and community-driven strategies to reduce or eliminate 
     a health or healthcare disparity in the targeted population. 
     Such grants may be used to--
       ``(A) expand the coalition that is represented by the 
     eligible entity through the identification of additional 
     partners, particularly among the targeted community, and 
     establish linkages with national, State, tribal, or local 
     public and private partners which may include community 
     health workers, advocacy, and policy organizations;
       ``(B) establish community working groups;
       ``(C) conduct a needs assessment of the community and 
     targeted population to determine a health disparity and the 
     factors contributing to that disparity, using input from the 
     targeted community;
       ``(D) participate in workshops sponsored by the Office of 
     Minority Health and Health Disparity Elimination or the 
     Centers for Disease Control and Prevention for technical 
     assistance, planning, evaluation, and other programmatic 
     issues;
       ``(E) identify promising intervention strategies; and
       ``(F) develop a plan with the input of the targeted 
     community that includes strategies for--
       ``(i) implementing intervention strategies that have the 
     greatest potential for reducing the health disparity in the 
     target population;
       ``(ii) identifying other sources of revenue and integrating 
     current and proposed funding sources to ensure long-term 
     sustainability of the program; and
       ``(iii) evaluating the program, including collecting data 
     and measuring progress toward reducing or eliminating the 
     health disparity in the targeted population that takes into 
     account the evaluation model developed by the Centers for 
     Disease Control and Prevention in collaboration with the 
     Office of Minority Health and Health Disparity Elimination.
       ``(2) Duration.--The period during which payments may be 
     made under a grant under paragraph (1) shall not exceed 1 
     year, except where the Secretary determines that 
     extraordinary circumstances exist as described in section 
     340(c)(3).
       ``(e) Implementation Grants.--
       ``(1) In general.--The Secretary shall award grants to 
     eligible entities that have received a planning grant under 
     subsection (d) to enable such entity to--
       ``(A) implement a plan to address the selected health 
     disparity for the target population, in an effective and 
     timely manner;
       ``(B) collect data appropriate for monitoring and 
     evaluating the program carried out under the grant;
       ``(C) analyze and interpret data, or collaborate with 
     academic or other appropriate institutions, for such analysis 
     and collection;
       ``(D) participate in conferences and workshops for the 
     purpose of informing and educating others regarding the 
     experiences and lessons learned from the project;
       ``(E) collaborate with appropriate partners to publish the 
     results of the project for the benefit of the public health 
     community;
       ``(F) establish mechanisms with other public or private 
     groups to maintain financial support for the program after 
     the grant terminates; and
       ``(G) maintain relationships with local partners and 
     continue to develop new relationships with national and State 
     partners.
       ``(2) Duration.--The period during which payments may be 
     made under a grant under paragraph (1) shall not exceed 4 
     years. Such payments shall be subject to annual approval by 
     the Secretary and to the availability of appropriations for 
     the fiscal year involved.

[[Page 21585]]

       ``(f) Evaluation Grants.--
       ``(1) In general.--The Secretary may award grants to 
     eligible entities that have received an implementation grant 
     under subsection (e) that require additional assistance for 
     the purpose of rigorous data analysis, program evaluation 
     (including process and outcome measures), or dissemination of 
     findings.
       ``(2) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority to--
       ``(A) entities that in previous funding cycles--
       ``(i) have received a planning grant under subsection (d); 
     or
       ``(ii) implemented activities of the type described in 
     subsection (e)(1); and
       ``(B) entities that incorporate best practices or build on 
     successful models in their action plan, including the use of 
     community health workers.
       ``(g) Sustainability.--The Secretary shall give priority to 
     an eligible entity under this section if the entity agrees 
     that, with respect to the costs to be incurred by the entity 
     in carrying out the activities for which the grant was 
     awarded, the entity (and each of the participating partners 
     in the coalition represented by the entity) will maintain its 
     expenditures of non-Federal funds for such activities at a 
     level that is not less than the level of such expenditures 
     during the fiscal year immediately preceding the first fiscal 
     year for which the grant is awarded.
       ``(h) Nonduplication.--Funds provided through this grant 
     program should supplement, not supplant, existing Federal 
     funding, and the funds should not be used to duplicate the 
     activities of the other health disparity grant programs in 
     this Act.
       ``(i) Technical Assistance.--The Secretary may, either 
     directly or by grant or contract, provide any entity that 
     receives a grant under this section with technical and other 
     nonfinancial assistance necessary to meet the requirements of 
     this section.
       ``(j) Dissemination.--The Secretary shall enable grantees 
     to share best practices, evaluation results, and reports 
     using the Internet, conferences, and other pertinent 
     information regarding the projects funded by this section, 
     including the outreach efforts of the Office of Minority 
     Health and Health Disparity Elimination.
       ``(k) Administrative Burdens.--The Secretary shall make 
     every effort to minimize duplicative or unnecessary 
     administrative burdens on grantees.

     ``SEC. 399S. GRANTS FOR HEALTH DISPARITY COLLABORATIVES.

       ``(a) Purpose.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, shall award grants to eligible entities to 
     assist in implementing systems of primary care practices 
     through which to eliminate disparities in the delivery of 
     healthcare and improve the healthcare provided to all 
     patients.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under this section, an entity shall--
       ``(1) be a federally qualified health center as defined in 
     section 1905(l)(2)(B) of the Social Security Act with the 
     ability to establish and lead a collaborative partnership; 
     and
       ``(2) submit to the Secretary an application, at such time, 
     in such manner, and containing such information as the 
     Secretary may require, which shall include plans to implement 
     collaboratives in one or more of the following areas:
       ``(A) Diabetes.
       ``(B) Asthma.
       ``(C) Depression.
       ``(D) Cardiovascular disease.
       ``(E) Cancer.
       ``(F) Preventive health, including screenings.
       ``(G) Perinatal health.
       ``(H) Patient safety.
       ``(I) Other areas as designated by the Secretary.
       ``(c) Nonduplication.--Funds provided through this grant 
     program should supplement, not supplant, existing Federal 
     funding, and the funds should not be used to duplicate the 
     activities of the other health disparity grant programs in 
     this Act.
       ``(d) Technical Assistance.--The Secretary may, either 
     directly or by grant or contract, provide any entity that 
     receives a grant under this section with technical and other 
     nonfinancial assistance necessary to meet the requirements of 
     this section.
       ``(e) Administrative Burdens.--The Secretary shall make 
     every effort to minimize duplicative or unnecessary 
     administrative burdens on grantees.

     ``SEC. 399T. COMMUNITY HEALTH INITIATIVES.

       ``(a) Purpose.--The Secretary shall establish the Community 
     Health Initiative demonstration program to support 
     comprehensive State, tribal, or local initiatives to improve 
     the health of racial and ethnic minority and other health 
     disparity populations.
       ``(b) Community Health Initiative Program.--
       ``(1) In general.--The Secretary shall award Community 
     Health Initiative Program grants to State and local public 
     health agencies of eligible communities. Each grant shall be 
     funded for 5 years.
       ``(2) Eligible communities.--
       ``(A) Identification.--The Secretary shall develop, after 
     opportunity for public review and comment, and implement a 
     metric for identifying and notifying eligible communities 
     pursuant to subparagraph (B), and report such findings to 
     Congress and the public.
       ``(B) Eligibility.--Eligible communities shall be 
     communities that are most at risk, or at greatest 
     disproportionate risk, for adverse health outcomes, as 
     measured by--
       ``(i) overall burden of disease and health conditions;
       ``(ii) accessibility to and availability of health and 
     economic resources;
       ``(iii) proportion of individuals from racial and ethnic 
     minority and other health disparity populations; and
       ``(iv) other factors as determined appropriate by the 
     Secretary.
       ``(3) Agency collaboration.--The Secretary, in 
     collaboration with the Deputy Assistant Secretary for 
     Minority Health and Health Disparity Elimination, the 
     Director of the Centers for Disease Control and Prevention, 
     the Administrator of the Health Resources and Services 
     Administration, the Director of the Indian Health Service, 
     and heads of other Federal agencies as appropriate, shall 
     determine, with respect to the Community Health Initiative 
     Program--
       ``(A) core goals, objectives and reasonable timelines for 
     implementing, evaluating and sustaining comprehensive and 
     effective health and healthcare improvement activities in 
     eligible communities;
       ``(B) current programmatic and research initiatives in 
     which eligible communities may participate;
       ``(C) existing agency resources that can be targeted to 
     eligible communities; and
       ``(D) mechanisms to facilitate joint application, or 
     establish a common application, to multiple grant programs, 
     as appropriate.
       ``(4) Applications.--
       ``(A) In general.--The State and local public health 
     agencies of eligible communities shall jointly submit an 
     application to the Secretary at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require, including a strategic plan that shall--
       ``(i) describe the proposed activities pursuant to 
     paragraph (5);
       ``(ii) report the extent to which local institutions and 
     organizations and community residents have participated in 
     the strategic plan development;
       ``(iii) identify established public-private partnerships, 
     and State, local, and private resources that will be 
     available;
       ``(iv) identify Federal funding needed to support the 
     proposed activities; and
       ``(v) report the baselines, methods, and benchmarks for 
     measuring the success of activities proposed in the strategic 
     plan.
       ``(B) Community advisory board.--
       ``(i) In general.--In order to receive a Community Health 
     Initiative Program grant under this section, an eligible 
     community shall have a community advisory board.
       ``(ii) Members.--

       ``(I) Community.--The majority of the members of a 
     community advisory board under clause (i) shall be 
     individuals that will benefit from the activities or services 
     provided by the grants under this section.
       ``(II) Representatives.--A community advisory board shall 
     include representatives from the State health department and 
     county or local health department, community-based 
     organizations, environmental and public health experts, 
     healthcare professionals and providers, nonprofit leaders, 
     community organizers, elected officials, private payers, 
     employers, and consumers.

       ``(iii) Duties.--A community advisory board shall--

       ``(I) oversee the functions and operations of Community 
     Health Initiative Program grant activities;
       ``(II) assist in the evaluation of such activities; and
       ``(III) prepare an annual report that describes the 
     progress made towards achieving stated goals and recommends 
     future courses of action.

       ``(5) Use of funds.--An eligible community that receives a 
     grant under this section shall use the funding to support 
     activities to achieve stated core goals and objectives, 
     pursuant to paragraph (3), which may include initiatives 
     that--
       ``(A) promote disease prevention and health promotion, 
     particularly for racial and ethnic minority and other health 
     disparity populations;
       ``(B) facilitate partnerships between healthcare providers, 
     public and health agencies, academic institutions, community 
     based or advocacy organizations, elected officials, 
     professional societies, and other stakeholder groups;
       ``(C) enhance the local capacity for aggregated and 
     disaggregated health data collection and reporting;
       ``(D) coordinate and integrate community-based activities 
     including education, city planning, transportation 
     initiatives, environmental changes, and other related 
     activities at the local level that help improve public health 
     and address health concerns;
       ``(E) mobilize financial and other resources from the 
     public and private sector to increase local capacity to 
     address health issues;

[[Page 21586]]

       ``(F) support the training of staff in communication and 
     outreach to the general public, particularly those at 
     disproportionate risk for health and healthcare disparities;
       ``(G) assist eligible communities in meeting Healthy People 
     2010 objectives; and
       ``(H) aid eligible communities in providing employment, and 
     cultural and recreational resources that enable healthy 
     lifestyles.
       ``(6) Evaluation.--The Secretary, directly or through 
     contract, shall conduct and report an evaluation of the 
     Community Health Initiative Program that shall be available 
     to the public.
       ``(7) Supplement not supplant.--Grant funds received under 
     this section shall be used to supplement, and not supplant, 
     funding that would otherwise be used for activities described 
     under this section.

     ``SEC. 399U. OUTREACH.

       ``(a) In General.--The Secretary, in collaboration with the 
     Office for Minority Health and Health Disparity Elimination, 
     the Centers for Medicare and Medicaid Services, and the 
     Health Resources and Services Administration, shall establish 
     a grant program to improve outreach, participation, and 
     enrollment by eligible entities with respect to available 
     healthcare programs.
       ``(b) Eligibility.--In this section, the term `eligible 
     entity' means any of the following:
       ``(1) A State or local government.
       ``(2) A Federal health safety net organization.
       ``(3) A national, local, or community-based public or 
     nonprofit private organization.
       ``(4) A faith-based organization or consortia, to the 
     extent that a grant awarded to such an entity is consistent 
     with the requirements of section 1955 relating to a grant 
     award to nongovernmental entities.
       ``(5) An elementary or secondary school.
       ``(c) Definition.--In this section:
       ``(1) Federal health safety net organization.--The term 
     `Federal health safety net organization' means--
       ``(A) an Indian tribe, tribal organization, or an urban 
     Indian organization receiving funds under title V of the 
     Indian Health Care Improvement Act (25 U.S.C. 1651 et seq.), 
     or an Indian Health Service provider;
       ``(B) a Federally-qualified health center (as defined in 
     section 330);
       ``(C) a hospital defined as a disproportionate share 
     hospital;
       ``(D) a covered entity described in section 340B(a)(4); and
       ``(E) any other entity or a consortium that serves children 
     under a federally funded program, including the special 
     supplemental nutrition program for women, infants, and 
     children (WIC) established under section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786), the head start and 
     early head start programs under the Head Start Act (42 U.S.C. 
     9831 et seq.), the school lunch program established under the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1751 
     et seq.), and an elementary or secondary school.
       ``(2) Indians; indian tribe; tribal organization; urban 
     indian organization.--The terms `Indian', `Indian tribe', 
     `tribal organization', and `urban Indian organization' have 
     the meanings given such terms in section 4 of the Indian 
     Health Care Improvement Act (25 U.S.C. 1603).
       ``(d) Priority for Award of Grants.--
       ``(1) In general.--In making grants under subsection (a), 
     the Secretary shall give priority to--
       ``(A) eligible entities that propose to target geographic 
     areas with high rates of--
       ``(i) eligible but unenrolled children, including such 
     children who reside in rural areas; or
       ``(ii) racial and ethnic minorities and health disparity 
     populations, including those proposals that address cultural 
     and linguistic barriers to enrollment; and
       ``(B) eligible entities that plan to engage in outreach 
     efforts with respect to individuals described in subparagraph 
     (A) and that are--
       ``(i) Federal health safety net organizations; or
       ``(ii) faith-based organizations or consortia.
       ``(2) Ten percent set aside for outreach to indian 
     children.--An amount equal to 10 percent of the funds 
     appropriated under section 202(3) of the Minority Health 
     Improvement and Health Disparity Elimination Act to carry out 
     this section for a fiscal year shall be used by the Secretary 
     to award grants to Indian Health Service providers and urban 
     Indian organizations receiving funds under title V of the 
     Indian Health Care Improvement Act (25 U.S.C. 1651 et seq.) 
     for outreach to, and enrollment of, children who are 
     Indians.''.

     SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated--
       (1) such sums as may be necessary for each of fiscal years 
     2007 through 2011, to carry out section 399Q of the Public 
     Health Service Act (as added by section 201);
       (2) $52,000,000 for fiscal year 2007, and such sums as may 
     be necessary for each of fiscal years 2008 through 2011, to 
     carry out section 399R of the Public Health Service Act (as 
     added by section 201); and
       (3) such sums as necessary for each of fiscal years 2007 
     through 2011, to carry out sections 399S, 399T, and 399U of 
     the Public Health Service Act (as added by section 201).

                          TITLE III--RESEARCH

     SEC. 301. AGENCY FOR HEALTHCARE RESEARCH AND QUALITY.

       Part B of title IX of the Public Health Service Act (42 
     U.S.C. 299b et seq.) is amended by adding at the end the 
     following:

     ``SEC. 918. ENHANCED RESEARCH WITH RESPECT TO HEALTHCARE 
                   DISPARITIES.

       ``(a) Accelerating the Elimination of Disparities.--
       ``(1) Strategic plan.--The Secretary, acting through the 
     Director, and in collaboration with the Deputy Assistant 
     Secretary for Minority Health and Health Disparity 
     Elimination, shall develop a strategic plan regarding 
     research supported by the agency to improve healthcare and 
     eliminate healthcare disparities among racial and ethnic 
     minority and other health disparity populations. In 
     developing such plan, the Secretary shall--
       ``(A) determine which areas of research focus would have 
     the greatest impact on healthcare improvement and elimination 
     of disparities, taking into consideration the overall health 
     status of various populations, disproportionate burden of 
     diseases or health conditions, and types of interventions for 
     which data on effectiveness is limited;
       ``(B) establish measurable goals and objectives which will 
     allow assessment of progress;
       ``(C) solicit public review and comment from experts in 
     healthcare, minority health and health disparities, health 
     services research, and other areas as determined appropriate 
     by the Secretary;
       ``(D) incorporate recommendations from the Institute of 
     Medicine, pursuant to section 303 of the Minority Health 
     Improvement and Health Disparity Elimination Act, as 
     appropriate;
       ``(E) complete such plan within 12 months of enactment of 
     the Minority Health Improvement and Health Disparity 
     Elimination Act, and update such plan and report on progress 
     meeting established goals and objectives not less than every 
     2 years;
       ``(F) include progress meeting plan goals and objectives in 
     annual performance budget submissions;
       ``(G) ensure coordination and integration with the National 
     Plan to Improve Minority Health and Eliminate Health 
     Disparities, as described in section 1707(c) and other 
     Department-wide initiatives, as feasible; and
       ``(H) report the plan to the Congress and make available to 
     the public in print and electronic format.
       ``(2) Establishment of grants.--The Secretary, acting 
     through the Director, and in collaboration with the Deputy 
     Assistant Secretary for Minority Health and Health Disparity 
     Elimination, may award grants or contracts to eligible 
     entities for research to improve the health of racial and 
     ethnic minority and other health disparity populations (as 
     defined in section 903(d)).
       ``(3) Application; eligible entities.--
       ``(A) Application.--To receive a grant or contract under 
     this section, an eligible entity shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       ``(B) Eligible entities.--To be eligible to receive a grant 
     or contract under this section, an entity shall be a health 
     center, hospital, health plan, health system, community 
     clinic, or other health entity determined appropriate by the 
     Secretary, that--
       ``(i) by legal mandate or explicitly adopted mission, 
     provides patients with access to services regardless of their 
     ability to pay;
       ``(ii) provides care or treatment for a substantial number 
     of patients who are uninsured, are receiving assistance under 
     a State program under title XIX of the Social Security Act, 
     or are members of vulnerable populations, as determined by 
     the Secretary;
       ``(iii) serves a disproportionate percentage of patients 
     from racial and ethnic minority and other health disparity 
     populations;
       ``(iv) provides an assurance that amounts received under 
     the grant or contract will be used to implement strategies 
     that address patients' linguistic needs, where necessary, and 
     recruit and maintain diverse staff and leadership; and
       ``(v) provides an assurance that amounts received under the 
     grant or contract will be used to support quality improvement 
     activities for patients from racial and ethnic minority and 
     other health disparity populations.
       ``(C) Preference.--Consortia of 3 or more eligible entities 
     shall be given a preference for grant or contract funding.
       ``(4) Research.--The research funded under paragraph (2), 
     with respect to racial and ethnic minority and other health 
     disparity populations, shall--
       ``(A) prioritize the translation of existing research into 
     practical interventions for improving health and healthcare 
     and reducing disparities;
       ``(B) target areas of need as identified in the strategic 
     plan pursuant to subsection (a)(1), the National Healthcare 
     Disparities Report published by the Agency for Healthcare 
     Research and Quality, relevant reports by the Institute of 
     Medicine, and other reports issued by Federal health 
     agencies;
       ``(C) include a focus on community-based solutions and 
     partnerships as appropriate;
       ``(D) expand practice-based research networks (primary care 
     and larger delivery systems) to include networks of delivery 
     sites serving large numbers of minority and health disparity 
     populations including--

[[Page 21587]]

       ``(i) public hospitals and private non-profit hospitals;
       ``(ii) health centers;
       ``(iii) health plans; and
       ``(iv) other sites as determined appropriate by the 
     Director.
       ``(5) Dissemination of research findings.--To ensure that 
     findings from the research described in paragraph (4) are 
     disseminated and applied promptly, the Director shall--
       ``(A) develop outreach and training programs for healthcare 
     providers with respect to the practical and effective 
     interventions that result from research programs carried out 
     with grants or contracts awarded under this section; and
       ``(B) provide technical assistance for the implementation 
     of evidence-based practices that will improve health and 
     healthcare and reduce disparities.
       ``(b) Realizing the Potential of Disease Management.--
       ``(1) Public-private sector partnership to assess 
     effectiveness of existing disease management strategies.--
       ``(A) In general.--The Secretary shall establish a public-
     private partnership to identify, evaluate, and disseminate 
     effective disease management strategies, tailored to improve 
     healthcare and health outcomes for patients from racial and 
     ethnic minority and other health disparity populations. Such 
     strategies shall reflect established healthcare quality 
     standards and benchmarks and other evidence-based 
     recommendations.
       ``(B) Partnership composition.--The partnership's members 
     shall include the following:
       ``(i) Representatives from the following:

       ``(I) The Office of Minority Health and Health Disparity 
     Elimination.
       ``(II) The Centers for Disease Control and Prevention.
       ``(III) The Agency for Healthcare Research and Quality.
       ``(IV) The Centers for Medicare and Medicaid Services.
       ``(V) The Health Resources and Services Administration.
       ``(VI) The Indian Health Service.
       ``(VII) Other agencies as designated by the Secretary.

       ``(ii) Representatives of health plans, employers, or other 
     private entities that have implemented disease management 
     programs.
       ``(iii) Representatives of hospitals, community health 
     centers, large, small, or solo provider groups, or other 
     organizations that provide healthcare and have implemented 
     disease management programs.
       ``(iv) Community-based representatives who have been 
     involved with establishing, implementing, or evaluating 
     disease management programs.
       ``(v) Other individuals as designated by the Secretary.
       ``(C) Partnership duties.--
       ``(i) In general.--Not later than 18 months after the date 
     of enactment of the Minority Health Improvement and Health 
     Disparity Elimination Act, the partnership shall release a 
     best practices report, with a particular focus on the 
     following:

       ``(I) Self-management training.
       ``(II) Increasing patient participation in and satisfaction 
     with healthcare encounters.
       ``(III) Helping patients use quality performance and cost 
     information to choose appropriate healthcare providers for 
     their care.
       ``(IV) Interventions outside of a traditional healthcare 
     environment, including the workplace, school, community, or 
     home.
       ``(V) Interventions utilizing community health workers and 
     case managers.
       ``(VI) Interventions that implement integrated disease 
     management and treatment strategies to address multiple 
     chronic co-occurring conditions.
       ``(VII) Other interventions as identified by the Secretary.

       ``(2) Report.--
       ``(A) In general.--Not later than September 30, 2010, the 
     partnership shall submit to the Secretary and the relevant 
     committees of Congress a report that describes the extent to 
     which the activities and research funded under this section 
     have been successful in reducing and eliminating disparities 
     in health and healthcare in targeted populations.
       ``(B) Availability.--The Secretary shall ensure that the 
     report is made available on the Internet websites of the 
     Office of Minority Health and Health Disparity Elimination, 
     the Agency for Healthcare Research and Quality, and other 
     agencies as appropriate.''.

     SEC. 302. GENETIC VARIATION AND HEALTH.

       (a) In General.--The Secretary shall ensure that any 
     current, proposed, or future research and programmatic 
     activities regarding genomics include focus on genetic 
     variation within and between populations, with a focus on 
     racial and ethnic minority populations, that may affect risk 
     of disease or response to drug therapy and other treatments, 
     in order to ensure that all populations are able to derive 
     full benefit from genomic tests and treatments that may 
     improve their health and healthcare. The Secretary shall 
     encourage, with respect to racial and ethnic minority 
     populations, efforts to--
       (1) increase access, availability, and utilization of 
     genomic tests and treatments;
       (2) determine and monitor appropriateness of use of genomic 
     tests and treatments;
       (3) increase awareness of the importance of knowing one's 
     family history and the relationships between genes, the 
     social and physical environment, and health; and
       (4) expand genomics research that would help to--
       (A) improve tests to facilitate earlier and more accurate 
     diagnoses;
       (B) enhance the safety of drugs, particularly for drugs 
     that pose an elevated risk for adverse drug events in such 
     populations;
       (C) increase the effectiveness of drugs, particularly for 
     diseases and conditions that disproportionately affect such 
     populations; and
       (D) augment the current understanding of the interactions 
     between genomic, social and physical environmental factors 
     and their influence on the causality, prevention, and 
     treatment of diseases common in such populations.
       (b) Genetic Variation, Environment, and Health Summit.--
       (1) Summit.--Not later than 1 year after the date of 
     enactment of this Act, the Director of the National Human 
     Genome Research Institute, in collaboration with the Director 
     of the Office of Genomics and Disease Prevention at the 
     Centers for Disease Control and Prevention, the Director of 
     the Office of Behavioral and Social Science Research at the 
     National Institutes of Health, and the Deputy Assistant 
     Secretary of the Office of Minority Health and Health 
     Disparity Elimination, shall convene a Summit for the purpose 
     of providing leadership and guidance to Secretary, Congress, 
     and other public and private entities on current and future 
     areas of focus for genomics research, including translation 
     of findings from such research, relating to improving the 
     health of racial and ethnic minority populations and reducing 
     health disparities.
       (2) Participation.--The Summit shall include--
       (A) representatives from the Federal health agencies, 
     including the National Institutes of Health, the Centers for 
     Disease Control and Prevention, the Food and Drug 
     Administration, the Health Resources and Services 
     Administration, and additional agencies and departments as 
     determined appropriate by the Secretary;
       (B) independent experts and stakeholders from relevant 
     industry and academic institutions, particularly those that 
     have demonstrated expertise in both genomics and minority 
     health and serve a disproportionate number of racial and 
     ethnic minority patients; and
       (C) leaders of community organizations that work to reduce 
     and eliminate health disparities.
       (3) Report.--Not later than 90 days after the conclusion of 
     the Summit, the Director of the National Human Genome 
     Research Institute shall submit to Congress and make 
     available to the public a report detailing recommendations 
     on--
       (A) an appropriate description of human diversity, 
     incorporating available information on genetics, for use in 
     genomic research and programs operated or supported by the 
     Federal Government;
       (B) guiding ethics, principles, and protocols for the 
     inclusion and designation of racial and ethnic minority 
     populations in genomics research, particularly clinical 
     trials programs operated or supported by the Federal 
     Government;
       (C) ways to increase access to and utilization of effective 
     pharmacogenomic and other genetic screening and services for 
     racial and ethnic minority populations;
       (D) research opportunities and funding support in the area 
     of genomic variation that may improve the health and 
     healthcare of minority populations;
       (E) ways to enhance integration of Federal Government-wide 
     efforts and activities pertaining to race, genomics, and 
     health; and
       (F) need for additional privacy protections in preventing 
     stigmatization and inappropriate use of genetic information.
       (c) Pharmacogenomics and Emerging Issues Advisory 
     Committee.--
       (1) In general.--The Secretary, under section 222 of the 
     Public Health Service Act (42 U.S.C. 217a), shall convene and 
     consult an advisory committee on issues relating to 
     pharmacogenomics (referred to in this subsection as the 
     ``Advisory Committee'').
       (2) Duties.--
       (A) In general.--The Advisory Committee shall advise and 
     make recommendations to the Secretary, through the 
     Commissioner of Food and Drugs and in consultation with the 
     Director of the National Institutes of Health, on the 
     evolving science of pharmacogenomics and interindividual 
     variability in drug response, as it relates to the health of 
     racial and ethnic minorities.
       (B) Matters considered.--The recommendations under 
     subparagraph (A) shall include recommendations on--
       (i) the ethics, design, and analysis of clinical trials 
     involving racial and ethnic minorities conducted under 
     section 351, 409I, or 499 of the Public Health Service Act or 
     section 505(i), 505A, 505B, or 515(g) of the Federal Food, 
     Drug, and Cosmetic Act;
       (ii) general policy and guidance with respect to the 
     development, approval or clearance, and labeling of medical 
     products for racial and ethnic minorities;
       (iii) the role of pharmacogenomics during the development 
     of drugs, biological products, and diagnostics;

[[Page 21588]]

       (iv) the understanding of interindividual variability in 
     drug response;
       (v) diagnostics or treatments for diseases or conditions 
     common in racial and ethnic minorities; and
       (vi) the identification of other areas of unmet medical 
     need.
       (3) Composition.--The Advisory Committee shall include--
       (A) experts in the fields of--
       (i) minority health and health disparities;
       (ii) genomics;
       (iii) pharmaceutical and diagnostic research and 
     development;
       (iv) ethical, legal, and social issues relating to clinical 
     trials; and
       (v) bioinformatics and information technology;
       (B) representatives from minority health organizations and 
     relevant patient organizations; and
       (C) other experts as deemed appropriate by the Secretary.
       (4) Coordination with other advisory committees.--The 
     Advisory Committee may consult and coordinate with other 
     advisory committees of the Department of Health and Human 
     Services as determined appropriate by the Secretary.
       (5) Recommendations.--The Advisory Committee shall submit 
     recommendations to the Secretary with respect to each of the 
     matters described under paragraph (2)(B) prior to the 
     development by the Secretary of the report described under 
     paragraph (6).
       (6) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary--
       (A) shall, acting through the Commissioner of Food and 
     Drugs and in consultation with the Director of the National 
     Institutes of Health, and taking into consideration the 
     recommendations of the Advisory Committee submitted under 
     paragraph (5), submit to the Committee on Health, Education, 
     Labor, and Pensions of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives, a report on the 
     evolving science of pharmacogenomics as it relates to racial 
     and ethnic minorities, including a review of the guidance of 
     the Food and Drug Administration on the participation of 
     racial and ethnic minorities in clinical trials; and
       (B) shall ensure that such report is made publicly 
     available.

     SEC. 303. EVALUATIONS BY THE INSTITUTE OF MEDICINE.

       (a) Health Disparities Summit.--
       (1) In general.--Not later than 270 days after the date of 
     enactment of this Act, the Institute of Medicine shall 
     convene a summit on health disparities (referred to this 
     section as the ``Summit'').
       (2) Purpose.--The purposes of the Summit include--
       (A) reviewing current activities of the Federal Government 
     in addressing health and healthcare disparities as 
     experienced by racial and ethnic minority populations, and 
     other health disparity populations as practicable; and
       (B) assessing progress made since the 2002 Institute of 
     Medicine National Healthcare Disparities Report.
       (3) Areas of focus.--The Summit shall examine the 
     activities of the Federal Government to reduce and eliminate 
     health disparities, with a focus on--
       (A) education and training, including health professions 
     programs that increase minority representation in medicine 
     and the health professions;
       (B) data collection and analysis;
       (C) coordination among agencies and departments in 
     addressing healthcare disparities;
       (D) research into the causes of and strategies to eliminate 
     health disparities; and
       (E) programs that increase access to care and improve 
     health outcomes for health disparity populations.
       (4) Participation.--Summit participants shall include--
       (A) representatives of the Federal Government;
       (B) experts with research experience in identifying and 
     addressing healthcare disparities among racial and ethnic 
     minority and other health disparity populations; and
       (C) representatives from community-based organizations and 
     nonprofit groups that address the issues of racial and ethnic 
     minority and other health disparity populations.
       (5) Summit proceedings.--Not later than 180 days after the 
     conclusion of the Summit, the Secretary shall offer to enter 
     into a contract with the Institute of Medicine to publish a 
     report summarizing the discussions of the Summit and review 
     of current Federal activities to address healthcare 
     disparities for racial and ethnic minority and other health 
     disparity populations.
       (b) National Plan to Eliminate Disparities.--
       (1) Plan.--Not later than 2 years after the date of 
     enactment of this Act, the Institute of Medicine shall 
     develop an evidence-based, strategic, national plan to 
     eliminate disparities which shall--
       (A) include goals, interventions, and resources needed to 
     eliminate disparities;
       (B) establish a reasonable timetable to reach selected 
     priorities;
       (C) inform and complement the National Plan to Improve 
     Minority Health and Eliminate Health Disparities, pursuant to 
     section 1707(c)(2) of the Public Health Service Act (as added 
     by section 501 of this Act); and
       (D) inform the development of criteria for evaluation of 
     the effectiveness of programs authorized under this Act (and 
     the amendments made by this Act), pursuant to subsection (c).
       (2) Report.--The Secretary shall offer to enter into a 
     contract with the Institute of Medicine to publish the 
     National Plan to Eliminate Disparities.
       (c) Institute of Medicine Evaluation.--
       (1) In general.--Not later than 3 years after the date of 
     enactment of this Act, the Secretary shall offer to enter 
     into a contract with the Institute of Medicine to evaluate 
     the effectiveness of the programs authorized under this Act 
     (and the amendments made by this Act) in addressing and 
     reducing health disparities experienced by racial and ethnic 
     minority and other health disparity populations. In making 
     such an evaluation, the Institute of Medicine shall consult--
       (A) representatives of the Federal Government;
       (B) experts with research and policy experience in 
     identifying and addressing healthcare disparities among 
     racial and ethnic minority and other health disparity 
     populations; and
       (C) representatives from community-based organizations and 
     nonprofit groups that address health disparity issues.
       (2) Report.--Not later than 2 years after the Secretary 
     enters into the contract under paragraph (1), the Institute 
     of Medicine shall submit to the Secretary and relevant 
     committees of Congress a report that contains the results of 
     the evaluation described under such subparagraph, and any 
     recommendations of such Institute.
       (3) Response.--Not later than 180 days after the date the 
     Institute of Medicine submits the report under this 
     subsection, the Secretary shall publish a response to such 
     recommendations, which shall be provided to the relevant 
     committees of Congress and made publicly available through 
     the Internet Clearinghouse under section 270 of the Public 
     Health Service Act (as added by section 101).
       (d) Health Information Technology.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary, acting through the 
     Director of the National Library of Medicine, shall offer to 
     enter into a contract with the Institute of Medicine to study 
     and make recommendations regarding the use of health 
     information technology and bioinformatics to improve the 
     health and healthcare of racial and ethnic minority and other 
     health disparity populations.
       (2) Study.--The study under paragraph (1), with respect to 
     increasing access and quality of healthcare for racial and 
     ethnic minority and other health disparity populations, shall 
     assess and make recommendations regarding--
       (A) effective applications of health information 
     technology, including telemedicine and telepsychiatry;
       (B) status of development of health information technology 
     standards that will permit healthcare information of the type 
     required to support patient care;
       (C) inclusion of organizations with expertise in minority 
     health and health disparities in the development of health 
     information technology standards and applications;
       (D) priority areas for research to improve the 
     dissemination, management, and use of biomedical knowledge 
     that address identified and unmet needs;
       (E) educational and training needs and opportunities to 
     assist health professionals understand and apply health 
     information technology; and
       (F) ways to increase recruitment and retention of racial 
     and ethnic minorities into the field of medical informatics.
       (3) Report.--Not later than 2 years after the Secretary 
     enters into the contract under paragraph (1), the Institute 
     of Medicine shall submit to the Secretary and relevant 
     committees of Congress a report that contains the findings 
     and recommendations of this study.

     SEC. 304. NATIONAL CENTER FOR MINORITY HEALTH AND HEALTH 
                   DISPARITIES REAUTHORIZATION.

       Section 485E of the Public Health Service Act (42 U.S.C. 
     287c-31) is amended--
       (1) by striking subsection (e) and inserting the following:
       ``(e) Duties of the Director.--
       ``(1) Interagency coordination of minority health and 
     health disparities activities.--With respect to minority 
     health and health disparities, the Director of the Center 
     shall plan, coordinate, and evaluate research and other 
     activities conducted or supported by the agencies of the 
     National Institutes of Health. In carrying out the preceding 
     sentence, the Director of the Center shall evaluate the 
     minority health and health disparity activities of each of 
     such agencies and shall provide for the periodic reevaluation 
     of such activities.
       ``(2) Consultations.--The Director of the Center shall 
     carry out this subpart (including developing and revising the 
     plan and budget required in subsection (f)) in consultation 
     with the Directors of the agencies (or a designee of the 
     Directors) of the National Institutes of Health, with the 
     advisory

[[Page 21589]]

     councils of the agencies, and with the advisory council 
     established under section (j).
       ``(3) Coordination of activities.--The Director of the 
     Center shall act as the primary Federal official with 
     responsibility for coordinating all minority health 
     disparities research and other health disparities research 
     conducted or supported by the National Institutes of Health 
     and shall--
       ``(A) represent the health disparities research program of 
     the National Institutes of Health including the minority 
     health disparities research program at all relevant executive 
     branch task forces, committees, and planning activities;
       ``(B) maintain communications with all relevant Public 
     Health Service agencies, including the Indian Health Service 
     and various other departments of the Federal Government, to 
     ensure the timely transmission of information concerning 
     advances in minority health disparities research and other 
     health disparities research between these various agencies 
     for dissemination to affected communities and healthcare 
     providers; and
       ``(C) engage with community-based organizations and health 
     provider groups to--
       ``(i) increase education and awareness about the Center's 
     activities and areas of research focus; and
       ``(ii) accelerate the translation of research findings into 
     programs including those carried out by community-based 
     organizations.'';
       (2) in subsection (f)--
       (A) by striking the subsection heading and inserting the 
     following:
       ``(f) Comprehensive Plan for Research; Budget Estimate; 
     Allocation of Appropriations.--'';
       (B) in paragraph (1)--
       (i) by striking the matter preceding subparagraph (A) and 
     subparagraph (A) and inserting the following:
       ``(1) In general.--Subject to the provisions of this 
     section and other applicable law, the Director of the Center, 
     in consultation with the Director of NIH, the Directors of 
     the other agencies of the National Institutes of Health, and 
     the advisory council established under subsection (j) shall--
       ``(A) annually review and revise a comprehensive plan 
     (referred to in this section as `the Plan') and budget for 
     the conduct and support of all minority health and health 
     disparities research and other health disparities research 
     activities of the agencies of the National Institutes of 
     Health;'';
       (ii) in subparagraph (D), by striking ``, with respect to 
     amounts appropriated for activities of the Center,'';
       (iii) by striking subparagraph (F) and inserting the 
     following:
       ``(F) ensure that the Plan and budget are presented to and 
     considered by the Director during the formulation of the 
     overall annual budget for the National Institutes of 
     Health;'';
       (iv) by redesignating subparagraphs (G) and (H) as 
     subparagraphs (I) and (J), respectively; and
       (v) by inserting after subparagraph (F), the following:
       ``(G) annually submit to Congress a report on the progress 
     made with respect to the Plan;
       ``(H) creating and implementing a plan for the systematic 
     review of research activities supported by the National 
     Institutes of Health that are within the mission of both the 
     Center and other agencies of the National Institutes of 
     Health, by establishing mechanisms for--
       ``(i) tracking minority health and health disparity 
     research conducted within the agencies;
       ``(ii) the early identification of applications and 
     proposals for grants, contracts, and cooperative agreements 
     supporting extramural training, research, and development, 
     that are submitted to the agencies and that are within the 
     mission of the Center;
       ``(iii) providing the Center with the written descriptions 
     and scientific peer review results of such applications and 
     proposals;
       ``(iv) enabling the agencies to consult with the Director 
     of the Center prior to final approval of such applications 
     and proposals; and
       ``(v) reporting to the Director of the Center all such 
     applications and proposals that are approved for funding by 
     the agencies;''; and
       (C) in paragraph (2)--
       (i) in subparagraph (D), by striking ``and'' at the end;
       (ii) in subparagraph (E), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(F) the number and type of personnel needs of the 
     Center.'';
       (3) in subsection (h)--
       (A) in paragraph (1), by striking ``endowments at centers 
     of excellence under section 736.'' and inserting the 
     following: ``endowments at--
       ``(A) centers of excellence under section 736; and
       ``(B) centers of excellence under section 485F.''; and
       (B) in paragraph (2)(A), by striking ``average'' and 
     inserting ``median'';
       (4) by redesignating subsections (k) and (l) as subsections 
     (m) and (n), respectively;
       (5) by inserting after subsection (j), the following:
       ``(k) Representation of Minorities Among Researchers.--The 
     Secretary, in collaboration with the Director of the Center, 
     shall determine the extent to which racial and ethnic 
     minority and other health disparity populations are 
     represented among senior physicians and scientists of the 
     national research institutes and among physicians and 
     scientists conducting research with funds provided by such 
     institutes, and as appropriate, carry out activities to 
     increase the extent of such representation.
       ``(l) Cancer Research.--The Secretary, in collaboration 
     with the Director of the Center, shall designate and support 
     a cancer prevention, control, and population science center 
     to address the significantly elevated rate of morbidity and 
     mortality from cancer in racial and ethnic minority 
     populations. Such designated center shall be housed within an 
     existing, stand-alone cancer center at a historically black 
     college and university that has a demonstrable commitment to 
     and expertise in cancer research in the basic, clinical, and 
     population sciences.'';
       (6) in subsection (l)(1) (as so redesignated), by inserting 
     before the semicolon the following: ``, with a particular 
     focus on evaluation of progress made toward fulfillment of 
     the goals of the Plan''; and
       (7) by striking subsection (m) (as so redesignated).

     SEC. 305. AUTHORIZATION OF APPROPRIATIONS.

       (a) Sections 301, 302, and 303.--There are authorized to be 
     appropriated such sums as may be necessary for each of fiscal 
     years 2007 through 2011, to carry out sections 301, 302, and 
     303 (and the amendments made by such sections).
       (b) Section 304.--
       (1) In general.--There are authorized to be appropriated 
     $240,000,000 for fiscal year 2007, such sums as may be 
     necessary for each of fiscal years 2008 through 2011, to 
     carry out section 304.
       (2) Allocation of funds.--Subject to section 485E of the 
     Public Health Service Act (as amended by section 304) and 
     other applicable law, the Director of the Center under such 
     section 485E shall direct all amounts appropriated for 
     activities under such section and in collaboration with the 
     Director of National Institutes of Health and the directors 
     of other institutes and centers of the National Institutes of 
     Health.
       (3) Management of allocations.--All amounts allocated or 
     expended for minority health and health disparities research 
     activities under this subsection shall be reported 
     programmatically to and approved by the Director of the 
     Center under such section 485E, in accordance with the Plan 
     described under such section 485E.

            TITLE IV--DATA COLLECTION, ANALYSIS, AND QUALITY

     SEC. 401. DATA COLLECTION, ANALYSIS, AND QUALITY.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is 
     amended by adding at the end the following:

          ``TITLE XXIX--DATA COLLECTION, ANALYSIS, AND QUALITY

     ``SEC. 2901. DATA COLLECTION, ANALYSIS, AND QUALITY.

       ``(a) Data Collection and Reporting.--The Secretary shall 
     ensure that not later than 3 years after the date of 
     enactment of the Minority Health Improvement and Health 
     Disparity Elimination Act any ongoing or new federally 
     conducted or supported health programs (including surveys) 
     result in the--
       ``(1) collection and reporting of data by race and 
     ethnicity using, at a minimum, Office of Budget and 
     Management standards in effect on the date of enactment of 
     the Minority Health Improvement and Health Disparity 
     Elimination Act;
       ``(2) collection and reporting of data by geographic 
     location, socioeconomic position (such as employment, income, 
     and education), primary language, and, when determined 
     practicable by the Secretary, health literacy; and
       ``(3) if practicable, collection and reporting of data on 
     additional population groups if such data can be aggregated 
     into the minimum race and ethnicity data categories.
       ``(b) Data Analysis and Dissemination.--
       ``(1) Data analysis.--
       ``(A) In general.--The Secretary shall analyze data 
     collected under subsection (a) to detect and monitor trends 
     in disparities in health and healthcare for racial and ethnic 
     minority and other health disparity populations, and examine 
     the interaction between various disparity indicators.
       ``(B) Quality analysis.--The Secretary shall ensure that 
     the analyses under subparagraph (A) incorporate data reported 
     according to quality measurement systems.
       ``(2) Quality measures.--When the Secretary, by statutory 
     or regulatory authority, adopts and implements any quality 
     measures or any quality measurement system, the Secretary 
     shall ensure the quality measures or quality measurement 
     system comply with the following:
       ``(A) Measures.--Measures selected shall, to the extent 
     practicable--
       ``(i) assess the effectiveness, timeliness, patient self-
     management, patient centeredness, equity, and efficiency of 
     care received by patients, including patients from racial and 
     ethnic minority and other health disparity populations;

[[Page 21590]]

       ``(ii) are evidence based, reliable, and valid; and
       ``(iii) include measures of clinical processes and 
     outcomes, patient experience and efficiency.
       ``(B) Consultation.--In selecting quality measures or a 
     quality measurement system or systems for adoption and 
     implementation, the Secretary shall consult with--
       ``(i) individuals from racial and ethnic minority and other 
     health disparity populations; and
       ``(ii) experts in the identification and elimination of 
     disparities in health and healthcare among racial and ethnic 
     minority and other health disparity populations.
       ``(3) Dissemination.--
       ``(A) In general.--The Secretary shall make the measures, 
     data, and analyses described in paragraph (1) and (2) 
     available to--
       ``(i) the Office of Minority Health and Health Disparity 
     Elimination;
       ``(ii) the National Center on Minority Health and Health 
     Disparities;
       ``(iii) the Agency for Healthcare Research and Quality for 
     inclusion in the Agency's reports;
       ``(iv) the Centers for Disease Control and Prevention;
       ``(v) the Centers for Medicare and Medicaid Services;
       ``(vi) the Indian Health Service;
       ``(vii) other agencies within the Department of Health and 
     Human Services; and
       ``(viii) other entities as determined appropriate by the 
     Secretary.
       ``(B) Additional research.--The Secretary may, as the 
     Secretary determines appropriate, make the measures, data, 
     and analysis described in paragraphs (1) and (2) available 
     for additional research, analysis, and dissemination to 
     nongovernmental entities and the public.
       ``(c) Research.--
       ``(1) Disparity indicators.--
       ``(A) In general.--The Secretary shall award grants or 
     contracts for research to develop appropriate methods, 
     indicators, and measures that will enable the detection and 
     assessment of disparities in healthcare. Such research shall 
     prioritize research with respect to the following:
       ``(i) Race and ethnicity.
       ``(ii) Geographic location (such as geocoding).
       ``(iii) Socioeconomic position (such as income or education 
     level).
       ``(iv) Health literacy.
       ``(v) Cultural competency.
       ``(vi) Additional measures as determined appropriate by the 
     Secretary.
       ``(B) Applied research.--The Secretary shall use the 
     results of the research from grants awarded under 
     subparagraph (A) to improve the data collection described 
     under subsection (a).
       ``(2) Strategic partnerships to encourage and improve data 
     collection.--
       ``(A) In general.--The Secretary may award not more than 20 
     grants to eligible entities for the purposes of--
       ``(i) enhancing and improving methods for the collection, 
     reporting, analysis, and dissemination of data, as required 
     under the Minority Health Improvement and Health Disparity 
     Elimination Act; and
       ``(ii) encouraging the collection, reporting, analysis, and 
     dissemination of data to identify and address disparities in 
     health and healthcare.
       ``(B) Definition of eligible entity.--In this paragraph, 
     the term `eligible entity' means a health plan, federally 
     qualified health center, hospital, rural health clinic, 
     academic institution, policy research organization, or other 
     entity, including an Indian Health Service hospital or 
     clinic, Indian tribal health facility, or urban Indian 
     facility, that the Secretary determines to be appropriate.
       ``(C) Application.--An eligible entity desiring a grant 
     under this paragraph shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(D) Priority in awarding grants.--In awarding grants 
     under this paragraph, the Secretary shall give priority to 
     eligible entities that represent collaboratives with--
       ``(i) hospitals, health plans, or health centers; and
       ``(ii) at least 1 community-based organization or patient 
     advocacy group.
       ``(E) Use of funds.--An eligible entity that receives a 
     grant under this paragraph shall use grant funds to--
       ``(i) collect, analyze, or report data by race, ethnicity, 
     geographic location, socioeconomic position, health literacy, 
     or other health disparity indicator;
       ``(ii) conduct and report analyses of quality of healthcare 
     and disparities in health and healthcare for racial and 
     ethnic minority and other health disparity populations, 
     including disparities in diagnosis, management and treatment, 
     and health outcomes for acute and chronic disease;
       ``(iii) improve health data collection, analysis, and 
     reporting for subpopulations and categories;
       ``(iv) modify, implement, and evaluate use of health 
     information technology systems that facilitate data 
     collection, analysis and reporting for racial and ethnic 
     minority and other health disparity populations, and support 
     healthcare interventions;
       ``(v) develop educational programs to inform patients, 
     providers, purchasers, and other individuals served about the 
     legality and importance of the collection, analysis, and 
     reporting of data by race, ethnicity, socioeconomic position, 
     geographic location, and health literacy, for eliminating 
     disparities in health; and
       ``(vi) evaluate the activities conducted under this 
     paragraph.
       ``(d) Technical Assistance.--The Secretary may provide 
     technical assistance to promote compliance with the data 
     collection and reporting requirements of the Minority Health 
     Improvement and Health Disparity Elimination Act.
       ``(e) Privacy and Security.--The Secretary shall ensure all 
     appropriate privacy and security protections for health data 
     collected, reported, analyzed, and disseminated pursuant to 
     the Minority Health Improvement and Health Disparity 
     Elimination Act.
       ``(f) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of fiscal 
     years 2007 through 2011.''.

      TITLE V--LEADERSHIP, COLLABORATION, AND NATIONAL ACTION PLAN

     SEC. 501. OFFICE OF MINORITY HEALTH AND HEALTH DISPARITY 
                   ELIMINATION.

       (a) In General.--Section 1707 of the Public Health Service 
     Act (42 U.S.C. 300u-6) is amended to read as follows:

     ``SEC. 1707. OFFICE OF MINORITY HEALTH AND HEALTH DISPARITY 
                   ELIMINATION.

       ``(a) Establishment.--For the purpose of improving the 
     health of racial and ethnic minority populations and other 
     health disparity populations, as described in subsection (b), 
     there is established an Office of Minority Health and Health 
     Disparity Elimination within the Office of Public Health and 
     Science. There shall be in the Department of Health and Human 
     Services a Deputy Assistant Secretary for Minority Health and 
     Health Disparity Elimination, who shall be the head of the 
     Office of Minority Health and Health Disparity Elimination. 
     The Secretary, acting through such Deputy Assistant 
     Secretary, shall carry out this section.
       ``(b) Populations to Be Served.--The Secretary shall ensure 
     that services provided under this section are prioritized to 
     improve the health of racial and ethnic minority groups. To 
     the extent that services are provided to other health 
     disparity populations, such populations, as compared to the 
     general population, must experience a--
       ``(1) disproportionate burden of disease, particularly 
     chronic conditions such as hepatitis B, diabetes, heart 
     disease, stroke, high blood pressure, mental illness, asthma, 
     obesity, HIV/AIDS, and cancer;
       ``(2) significantly elevated risk for poor health outcomes, 
     including disability and premature mortality;
       ``(3) disproportionate lack of access to local health 
     resources, including hospitals, clinics, and health 
     professionals; and
       ``(4) lower socioeconomic position.
       ``(c) Duties.--With respect to racial and ethnic minority 
     groups, and other health disparity groups, the Secretary, 
     acting through the Deputy Assistant Secretary, shall carry 
     out the following:
       ``(1) Coordinate and provide input on activities within the 
     Public Health Service that relate to disease prevention, 
     health promotion, health service delivery, health workforce, 
     and research concerning racial and ethnic minority 
     populations, and other health disparity populations. The 
     Secretary shall ensure that the heads of each of the agencies 
     of the Service collaborate with the Deputy Assistant 
     Secretary on the development and conduct of such activities.
       ``(2) Not later than 1 year after the date of enactment of 
     the Minority Health Improvement and Health Disparity 
     Elimination Act, develop and implement a comprehensive 
     Department-wide plan to improve minority health and eliminate 
     health disparities in the United States, to be known as the 
     National Plan to Improve Minority Health and Eliminate Health 
     Disparities, (referred to in this section as the `National 
     Plan'). With respect to development and implementation of the 
     National Plan, the Secretary shall carry out the following:
       ``(A) Consult with the following:
       ``(i) The Director of the Centers for Disease Control and 
     Prevention.
       ``(ii) The Director of the National Institutes of Health.
       ``(iii) The Director of the National Center on Minority 
     Health and Health Disparities of the National Institutes of 
     Health.
       ``(iv) The Director of the Agency for Healthcare Research 
     and Quality.
       ``(v) The National Coordinator for Health Information 
     Technology.
       ``(vi) The Administrator of the Health Resources and 
     Services Administration.
       ``(vii) The Administrator of the Centers for Medicare & 
     Medicaid Services.
       ``(viii) The Director of the Office for Civil Rights.
       ``(ix) The Secretary of Veterans Affairs.
       ``(x) The Administrator of the Substance Abuse and Mental 
     Health Services Administration.
       ``(xi) The Secretary of Defense.
       ``(xii) The Commissioner of the Food and Drug 
     Administration.

[[Page 21591]]

       ``(xiii) The Director of the Indian Health Service.
       ``(xiv) The Secretary of Education.
       ``(xv) The Secretary of Labor.
       ``(xvi) The heads of other public and private entities, as 
     determined appropriate by the Secretary.
       ``(B) Review and integrate existing information and 
     recommendations as appropriate, such as Healthy People 2010, 
     Institute of Medicine studies, and Surgeon General Reports.
       ``(C) Ensure inclusion of measurable short-range and long-
     range goals and objectives, a description of the means for 
     achieving such goals and objectives, and a designated date by 
     which such goals and objectives are expected to be achieved.
       ``(D) Ensure that all amounts appropriated for such 
     activities are expended in accordance with the National Plan.
       ``(E) Review the National Plan on at least an annual basis, 
     and report to the public and appropriate committees of 
     Congress on progress.
       ``(F) Revise such Plan as appropriate.
       ``(G) Ensure that the National Plan will serve as a binding 
     statement of policy with respect to the agencies' activities 
     related to improving health and eliminating disparities in 
     health and healthcare.
       ``(3) Work with Federal agencies and departments outside of 
     the Department of Health and Human Services as appropriate to 
     maximize resources available to increase understanding about 
     why disparities exist, and effective ways to improve health 
     and eliminate health disparities.
       ``(4) In cooperation with the appropriate agencies, support 
     research, demonstrations, and evaluations to test new and 
     innovative models for--
       ``(A) expanding healthcare access;
       ``(B) improving healthcare quality; and
       ``(C) increasing healthcare educational opportunity.
       ``(5) Develop mechanisms that support better information 
     dissemination, education, prevention, and service delivery to 
     individuals from disadvantaged backgrounds, including 
     individuals who are members of racial or ethnic minority 
     groups or health disparity populations.
       ``(6) Increase awareness of disparities in healthcare, and 
     knowledge and understanding of health risk factors, among 
     healthcare providers, health plans, and the public.
       ``(7) Advise in matters related to the development, 
     implementation, and evaluation of health professions 
     education on improving healthcare outcomes and decreasing 
     disparities in healthcare outcomes, with focus on cultural 
     competence.
       ``(8) Assist healthcare professionals, community and 
     advocacy organizations, academic medical centers and other 
     health entities and public health departments in the design 
     and implementation of programs that will improve health 
     outcomes by strengthening the patient-provider relationship.
       ``(9) Carry out programs to improve access to healthcare 
     services and to improve the quality of healthcare services 
     for individuals with low functional health literacy.
       ``(10) Facilitate the classification and collection of 
     healthcare data to allow for ongoing analysis to identify and 
     determine the causes of disparities and monitoring of 
     progress toward improving health and eliminating health 
     disparities.
       ``(11) Ensure that the National Center for Health 
     Statistics collects data on the health status of each racial 
     or ethnic minority group or health disparity population 
     pursuant to section 2901.
       ``(12) Support a national minority health resource center 
     to carry out the following:
       ``(A) Facilitate the exchange of information regarding 
     matters relating to health information and health promotion, 
     preventive health services, and education in the appropriate 
     use of healthcare.
       ``(B) Facilitate access to such information.
       ``(C) Assist in the analysis of issues and problems 
     relating to such matters.
       ``(D) Provide technical assistance with respect to the 
     exchange of such information (including facilitating the 
     development of materials for such technical assistance).
       ``(13) Support a center for linguistic and cultural 
     competence to carry out the following:
       ``(A) With respect to individuals who lack proficiency in 
     speaking the English language, enter into contracts with 
     public and nonprofit private providers of primary health 
     services for the purpose of increasing the access of such 
     individuals to such services by developing and carrying out 
     programs to improve health literacy and cultural competency.
       ``(B) Carry out programs to improve access to healthcare 
     services for individuals with limited proficiency in speaking 
     the English language. Activities under this subparagraph 
     shall include developing and evaluating model projects.
       ``(14) Enter into interagency agreements with other 
     agencies of the Public Health Service, as appropriate.
       ``(15) Collaborate with the Office for Civil Rights to--
       ``(A) assist healthcare providers with application of 
     guidance and directives regarding healthcare for racial and 
     ethnic minority and other health disparity populations, 
     including--
       ``(i) reviewing cases with the Office of Inspector General 
     and the Office for Civil Rights which have been closed 
     without a finding of discrimination to determine if a pattern 
     or practice of activities that could lead to discrimination 
     exists, and if such a pattern or practice is identified, 
     provide technical assistance or education, as applicable, to 
     the relevant provider or to a group of providers located 
     within a particular geographic area;
       ``(ii) biannually publishing information on cases filed 
     with the Office for Civil Rights which have resulted in a 
     finding of discrimination, including the name and location of 
     the entity found to have discriminated, and any findings and 
     agreements entered into between the Office for Civil Rights 
     and the entity; and
       ``(iii) monitoring and analysis of trends in cases reported 
     to the Office for Civil Rights to ensure that the Office of 
     Minority Health and Health Disparity Elimination acts to 
     educate and assist healthcare providers as necessary; and
       ``(B) provide technical assistance or education, as 
     applicable, to the relevant provider or to a group of 
     providers located within a particular geographic area.
       ``(16) Promote and expand efforts to increase racial and 
     ethnic minority enrollment in clinical trials.
       ``(17) Establish working groups--
       ``(A) to examine and report recommendations to the 
     Secretary regarding--
       ``(i) emergency preparedness and response for underserved 
     populations;
       ``(ii) development and implementation of health information 
     technology that can assist providers to deliver culturally 
     competent healthcare;
       ``(iii) outreach and education of health disparity groups 
     about new Federal health programs, as appropriate, including 
     the programs under Part D of title XVIII of the Social 
     Security Act and chronic care management programs under the 
     Medicare Prescription Drug, Improvement, and Modernization 
     Act of 2003 (and the amendments made by such Act);
       ``(iv) leadership development in public health; and
       ``(v) other emerging health issues at the discretion of the 
     Secretary; and
       ``(B) that include representation from the relevant health 
     agencies, centers and offices, as well as public and private 
     entities as appropriate.
       ``(d) Advisory Committee.--
       ``(1) In general.--The Secretary shall establish an 
     advisory committee to be known as the Advisory Committee on 
     Minority Health and Health Disparities (in this subsection 
     referred to as the `Committee').
       ``(2) Duties.--The Committee shall provide advice to the 
     Deputy Assistant Secretary carrying out this section, 
     including advice on the development of goals and specific 
     program activities under subsection (c) for racial and ethnic 
     minority groups and health disparity population.
       ``(3) Chair.--The chairperson of the Committee shall be 
     selected by the Secretary from among the members of the 
     voting members of the Committee. The term of office of the 
     chairperson shall be 2 years.
       ``(4) Composition.--
       ``(A) The Committee shall be composed of 12 voting members 
     appointed in accordance with subparagraph (B), and nonvoting, 
     ex- officio members designated in subparagraph (C).
       ``(B) The voting members of the Committee shall be 
     appointed by the Secretary from among individuals who are not 
     officers or employees of the Federal Government and who have 
     expertise regarding issues of minority health and health 
     disparities. Racial and ethnic minority groups and health 
     disparity populations shall be appropriately represented 
     among such members.
       ``(C) The nonvoting, ex officio members of the Committee 
     shall be such officials of the Department of Health and Human 
     Services, including the Director of the Office of Minority 
     Health and Health Disparity Elimination and the Office for 
     Civil Rights, and other officials as the Secretary determines 
     to be appropriate.
       ``(D) The Secretary shall provide an opportunity for the 
     Chairman and Ranking Member of the Committee on Health, 
     Education, Labor, and Pensions of the Senate to submit to the 
     Secretary names of potential Committee members under this 
     section for consideration.
       ``(5) Terms.--Each member of the Committee shall serve for 
     a term of 4 years, except that the Secretary shall initially 
     appoint a portion of the members to terms of 1 year, 2 years, 
     and 3 years.
       ``(6) Vacancies.--If a vacancy occurs on the Committee, a 
     new member shall be appointed by the Secretary within 90 days 
     from the date that the vacancy occurs, and serve for the 
     remainder of the term for which the predecessor of such 
     member was appointed. The vacancy shall not affect the power 
     of the remaining members to execute the duties of the 
     Committee.
       ``(7) Compensation.--Members of the Committee who are 
     officers or employees of the United States shall serve 
     without additional compensation. Members of the Committee who 
     are not officers or employees of the

[[Page 21592]]

     United States shall receive compensation, for each day 
     (including travel time) they are engaged in the performance 
     of the functions of the Committee. Such compensation may not 
     be in an amount in excess of the daily equivalent of the 
     annual maximum rate of basic pay payable under the General 
     Schedule for positions above GS-15 under title 5, United 
     States Code.
       ``(e) Certain Requirements Regarding Duties.--
       ``(1) Recommendations regarding language.--
       ``(A) Proficiency in speaking english.--The Deputy 
     Assistant Secretary shall consult with the Director of the 
     Office of International and Refugee Health, the Director of 
     the Office for Civil Rights, and the Directors of other 
     appropriate departmental entities regarding recommendations 
     for carrying out activities under subsection (c)(9).
       ``(B) Health professions education regarding health 
     disparities.--The Deputy Assistant Secretary shall carry out 
     the duties under subsection (c)(7) in collaboration with 
     appropriate personnel of the Department of Health and Human 
     Services, other Federal agencies, and other offices, centers, 
     and institutions, as appropriate, that have responsibilities 
     under the Minority Health and Health Disparities Research and 
     Education Act of 2000.
       ``(2) Resource allocation.--
       ``(A) Funding.--In carrying out subsection (c), the 
     Secretary shall ensure that such funding and other resources 
     directed to health disparity populations that are not racial 
     and ethnic minority populations are used to supplement, not 
     supplant, funding and other resources currently or 
     historically allocated for services provided to such 
     populations.
       ``(B) Activities.--When carrying out activities for health 
     disparity populations that are not racial and ethnic minority 
     populations, the Secretary shall ensure that such activities 
     carried out by the Office of Minority Health and Health 
     Disparity Elimination supplement, not supplant, the 
     activities of other offices or agencies whose primary mission 
     by established mandate, or current or historical practice is 
     to serve such populations.
       ``(3) Cultural competency of services.--The Secretary shall 
     ensure that information and services provided pursuant to 
     subsection (c) consider the unique cultural or linguistic 
     issues facing such populations and are provided in the 
     language, educational, and cultural context that is most 
     appropriate for the individuals for whom the information and 
     services are intended.
       ``(4) Agency coordination.--In carrying out subsection (c), 
     the Secretary shall ensure that new or existing agency 
     offices of minority health, or other health disparity 
     offices, report current and proposed activities to the Deputy 
     Assistant Secretary, and provide, to the extent practicable, 
     an opportunity for input in the development of such 
     activities by the Deputy Assistant Secretary.
       ``(f) Grants and Contracts Regarding Duties.--
       ``(1) In general.--In carrying out subsection (c), the 
     Secretary acting through the Deputy Assistant Secretary, may 
     make awards of grants, cooperative agreements, and contracts 
     to public and nonprofit private entities.
       ``(2) Process for making awards.--The Deputy Assistant 
     Secretary shall ensure that awards under paragraph (1) are 
     made, to the extent practical, only on a competitive basis, 
     and that a grant is awarded for a proposal only if the 
     proposal has been recommended for such an award through a 
     process of peer review.
       ``(3) Evaluation and dissemination.--The Deputy Assistant 
     Secretary, directly or through contracts with public and 
     private entities, shall provide for evaluations of projects 
     carried out with awards made under paragraph (1) during the 
     preceding 2 fiscal years. The report shall be included in the 
     report required under subsection (g) for the fiscal year 
     involved.
       ``(g) State Offices of Minority Health.--The Deputy 
     Assistant Secretary shall assist the voluntary establishment 
     and functions of State offices of minority health in order to 
     expand and coordinate State efforts to improve the health of 
     minority and other health disparity populations.
       ``(1) Priorities.--The Deputy Assistant Secretary may 
     facilitate, with respect to minority and health disparity 
     populations--
       ``(A) integration and coordination of State and national 
     efforts, including those pertaining to the National Plan 
     pursuant to subsection (b);
       ``(B) strategic plan development within States to assess 
     and respond to local health concerns;
       ``(C) education and engagement of key stakeholders within 
     States, including representatives from public health 
     agencies, hospitals, clinics, provider groups, elected 
     officials, community-based organizations, advocacy groups, 
     media, and the private sector;
       ``(D) development and implementation of accepted standards, 
     core competencies, and minimum infrastructure requirements 
     for State offices;
       ``(E) access to State level health data for minority and 
     health disparity populations, which may include State data 
     collection and analysis;
       ``(F) development, implementation, and evaluation of State 
     programs and policies, as appropriate;
       ``(G) communication and networking among States to share 
     effective policies, programs and practices with respect to 
     increasing access and quality of care;
       ``(H) recognition and reporting of State successes and 
     challenges; and
       ``(I) identification of Federal grant programs and other 
     funding for which States could apply to carry out health 
     improvement activities.
       ``(2) Resources.--The Deputy Assistant Secretary may 
     provide grants and technical assistance for the voluntary 
     establishment or capacity development of State offices of 
     minority health.
       ``(3) Collaboration.--To the extent practicable, the Deputy 
     Assistant Secretary may encourage and facilitate 
     collaboration between State offices of minority health and 
     State offices addressing the needs of other health disparity 
     or disadvantaged populations, including offices of rural 
     health.
       ``(4) Definition.--For the purpose of this subsection, 
     `State offices of minority health' include offices, councils, 
     commissions, or advisory panels designated by States or 
     territories to address the health of minority populations.
       ``(h) Reports.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of the Minority Health Improvement and Health 
     Disparity Elimination Act, the Secretary shall submit to the 
     appropriate committees of Congress, a report on the National 
     Plan developed under subsection (c).
       ``(2) Report on activities.--Not later than February 1 of 
     fiscal year 2008 and of each second year thereafter, the 
     Secretary shall submit to the appropriate committees of 
     Congress, a report describing the activities carried out 
     under this section during the preceding 2 fiscal years and 
     evaluating the extent to which such activities have been 
     effective in improving the health of racial and ethnic 
     minority groups and health disparity populations. Each such 
     report shall include the biennial reports submitted under 
     subsection (f)(3) for such years by the heads of the Public 
     Health Service agencies.
       ``(3) Agency reports.--Not later than February 1, 2007, and 
     on a biannual basis thereafter, the heads of the Public 
     Health Service shall submit to the Deputy Assistant Secretary 
     a report that summarizes the minority health and health 
     disparity activities of each of the respective agencies.
       ``(i) Definitions.--In this section:
       ``(1) The term `health disparity population' has the 
     meaning given the term in section 903(d)(1).
       ``(2) The term `racial and ethnic minority group' means 
     American Indians (including Alaska Natives, Eskimos, and 
     Aleuts), Asian Americans, Native Hawaiians and other Pacific 
     Islanders, Blacks, and Hispanics.
       ``(3) The term `Hispanic' means individuals whose origin is 
     Mexican, Puerto Rican, Cuban, Central or South American, or 
     of any other Spanish-speaking country.
       ``(j) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated $110,000,000 for fiscal year 2007, such sums as 
     may be necessary for each of fiscal years 2008 through 
     2011.''.
       (b) Transfer of Functions; References.--
       (1) Transfer of functions.--
       (A) Office of minority health and health disparity 
     elimination.--The functions of the Office of Minority Health 
     under section 1707 of the Public Health Service Act (42 
     U.S.C. 300u-6) as in effect the day before the date of 
     enactment of this Act are transferred to the Office of 
     Minority Health and Health Disparity Elimination under such 
     section 1707 (as amended by subsection (a)).
       (B) Deputy assistant secretary for minority health and 
     health disparity elimination.--The functions of the Deputy 
     Assistant Secretary for Minority Health of the Office of 
     Minority Health under section 1707 of the Public Health 
     Service Act (42 U.S.C. 300u-6) as in effect the day before 
     the date of enactment of this Act are transferred to the 
     Deputy Assistant Secretary for Minority Health and Health 
     Disparity Elimination of the Office of Minority Health and 
     Health Disparity Elimination under such section 1707 (as 
     amended by subsection (a)).
       (2) References.--
       (A) Office of minority health and health disparity 
     elimination.--Any reference in any Federal law, Executive 
     order, rule, regulation, or delegation of authority, or any 
     document of or pertaining to the Office of Minority Health 
     under section 1707 of the Public Health Service Act (42 
     U.S.C. 300u-6) as in effect the day before the enactment of 
     this Act is deemed to be a reference to the Office of 
     Minority Health and Health Disparity Elimination under such 
     section 1707 (as amended by subsection (a)).
       (B) Deputy assistant secretary for minority health and 
     health disparity elimination.--Any reference in any Federal 
     law, Executive order, rule, regulation, or delegation of 
     authority, or any document of or pertaining to the Deputy 
     Assistant Secretary for Minority Health of the Office of 
     Minority Health under section 1707 of the Public Health 
     Service Act (42 U.S.C. 300u-6) as in effect the day before 
     the enactment of this Act

[[Page 21593]]

     is deemed to be a reference to the Deputy Assistant Secretary 
     for Minority Health and Health Disparity Elimination of the 
     Office of Minority Health and Health Disparity Elimination 
     under such section 1707 (as amended by subsection (a)).

  Mr. KENNEDY. Mr. President, unfortunately, serious and unjustified 
health disparities continue to exist in our Nation today. Over 45 
million Americans have no health insurance and often don't get the 
health care they need, or else they receive it too late. We know that 
persons who are uninsured are more likely to delay doctor visits and 
needed screenings like mammograms and other early detection tests, 
which can help prevent serious illness and death. The Institute of 
Medicine estimates that at least 18,000 Americans die prematurely each 
year solely because they lack health coverage.
  Some of the most shameful health disparities involve racial and 
ethnic minorities, and typically they are more likely to be uninsured. 
African Americans have a lower life expectancy than whites, and are 
much more likely to die from stroke, and their uninsurance rates are 
much higher than for their white counterparts.
  Many Americans--even physicians--want to believe such disparities 
don't exist, but ignoring them only contributes more to the widening 
gap between the haves and have-nots. It's a scandal that people of 
color have greater difficulty obtaining good health care than other 
Americans. Your health should not depend on the color of your skin, the 
size of your bank account, or where you live. In a Nation as advanced 
as ours and with its state-of-the-art medical technology for preventing 
illness and caring for the sick, it's appalling that so many health 
disparities continue to exist.
  That's the reason why I am introducing the Minority Health and Health 
Disparity Elimination Act as part of our effort to eliminate these 
unacceptable disparities.
  The bill provides grants to communities to increase public awareness 
about access to health care and disease prevention. It writes the 
Centers for Disease Control's Racial and Ethnic Approaches to Community 
Health program into law, so that this successful program can involve 
all communities in closing the health care gap.
  Greater diversity in the health care workforce is also a key part of 
ending these disparities. African Americans, Hispanic Americans, and 
other minorities account for only 6 percent of the nation's doctors and 
7 percent of nurses and dentists, even though they are almost one-third 
of the U.S. population. The disparity in the health workforce must be 
closed, not just to fulfill our commitment to equality of opportunity, 
but because of the impact it has on health care. Studies demonstrate 
that minority health professionals are more likely to care for minority 
patients, including those who are low-income and uninsured.
  The Minority Health and Health Disparity Elimination Act reauthorizes 
the Title VII healthcare workforce diversity programs, and supports the 
Centers of Excellence at Historically Black Colleges and Universities 
and institutions that educate Hispanic and Native American students.
  A diverse health care workforce is essential for a healthy country. 
Emphasizing workforce diversity does not mean that health care workers 
of all races should not be prepared to work with diverse patients. We 
must also make a more serious effort to train culturally competent 
health care professionals and work towards creating a health care 
system that is accessible for the more than 46 million Americans who 
speak a language other than English at home. The bill creates an 
Internet clearinghouse to help increase cultural competency and improve 
communication between health care providers and patients. It also 
supports the development of curricula on cultural competence in health 
professions schools.
  Language barriers in health care obviously contribute to reduced 
access and poorer care for those who have limited English proficiency 
or low health literacy. The legislation recognizes the importance of 
this issue for the quality of our health care system and provides funds 
for activities to improve and encourage services for such patients.
  The Minority Health and Health Disparities Research and Education Act 
enacted into law in 2000 created the National Center for Minority 
Health and Health Disparities. The legislation I am introducing today 
reauthorizes this important Center and strengthens its role in 
coordinating and planning research that focuses on minority health and 
health disparities. It further strengthens research in health care 
quality by establishing a grant program for healthcare delivery sites 
and public-private partnerships to evaluate and identify best practices 
in disease management strategies and interventions.
  In addition, the bill promotes the participation of racial and ethnic 
minorities and other health disparity populations in clinical trials 
and intensifies efforts throughout the Department of Health and Human 
Services to increase and apply knowledge about the interaction of 
racial, genetic, and environmental factors that affect people's health.
  Finally, the bill reinforces and clarifies the duties of the Office 
of Minority Health and Health Disparity Elimination and encourages 
greater cooperation among federal agencies and departments in meeting 
these serious challenges.
  I look forward to working with my colleagues to enact this needed 
legislation when we return to session after the election recess.
  Mr. OBAMA. Mr. President, for forty years the civil rights activist 
Fannie Lou Hamer rallied the Nation with her statement ``I am sick and 
tired, of being sick and tired.'' She would be disheartened to know the 
extent to which her words are still resonating with millions of 
Americans today. Whether we are talking about African Americans, 
Latinos, Asians or American Indians, the fact is that minorities 
continue to suffer a greater burden of disease and die prematurely. 
African Americans are one-third more likely than all other Americans to 
die from cancer, and have the highest rate of new HIV infection. One in 
3 Latinos has no insurance coverage. Fifty percent of Americans 
suffering from chronic hepatitis B are Asian. And among many American 
Indian tribes, the rate of diabetes has hit epidemic proportions, with 
rates near 50 percent in certain tribes. The state of minority health 
in this Nation is deplorable, and by many measures, is getting worse.
  Researchers have contributed a substantial body of work that has 
increased our understanding of the factors contributing to poor health. 
Higher rates of uninsurance are one such factor. Racial and ethnic 
minorities, particularly African Americans and Latinos, are 
significantly more likely to be uninsured. This lack of access to care 
leads to delayed or foregone care, and according to the Institute of 
Medicine, is the 6th leading cause of death in this Nation for adults 
aged 25-64. But equally disturbing, an overwhelming number of studies 
have shown that regardless of insurance status, minorities are more 
likely to receive low quality health care, and as a consequence, suffer 
worse health outcomes.
  The Institute of Medicine's 2002 historic report, Unequal Treatment: 
Confronting Racial and Ethnic Disparities in Healthcare, documented 
persistent and pervasive disparities in health care for minority 
groups, even after adjusting for differences in insurance status and 
socioeconomic factors. The American Journal of Public Health has 
reported that more than 886,000 deaths could have been prevented from 
1991 to 2000 if African Americans had received the same level of health 
care as whites. In contrast, the same study estimates that 
technological improvements in medicine--including better drugs, devices 
and procedures--prevented only 176,633 deaths during the same period.
  African Americans are not the only minorities getting worse care. 
Data has shown, for example, that compared to white Americans, Mexican 
Americans receive 38 percent fewer heart medications, and American 
Indians get recommended care for only 40 percent of quality measures. 
The bottom line is that although the level of health care

[[Page 21594]]

quality is mediocre at best for all Americans, it is much worse for 
minority groups. And this is unacceptable.
  For these reasons, I am joining my colleagues Senator Frist and 
Senator Kennedy in introducing the Minority Health Improvement and 
Health Disparity Elimination Act. This critical legislation has a 
number of important provisions to help address the dismal health status 
of minority and other underserved populations. First, this bill 
strengthens education and training in cultural competence and 
communication, which is the cornerstone of quality health care for all 
patients. It also reauthorizes the pipeline programs in Title VII of 
the Public Health Service Act, which seek to increase diversity in the 
health professions. We all know that the door to opportunity is only 
half open for minority students in the health professions. The 
percentage of minority health professionals is shockingly low--African 
Americans, Hispanics and American Indians account for one-third of the 
Nation's population but less than 10 percent of the Nation's doctors, 
less than 5 percent of dentists and only 12 percent of nurses. We can 
do better, and we must.
  Lack of workforce diversity has serious implications for both access 
and quality of health care. Minority physicians are significantly more 
likely to treat low-income patients, and their patients are 
disproportionately minority. Studies have also shown that minority 
physicians provide higher quality of care to minority patients, who are 
more satisfied with their care and more likely to follow their doctor's 
recommendations.
  Second, this bill expands and supports a number of initiatives to 
increase access to quality care. Specifically, the legislation 
authorizes demonstration projects to help address health disparities in 
the U.S.-Mexico border region, increase health coverage and continuity 
of coverage, identify and implement effective disease management 
strategies, train community health workers, and increase enrollment of 
minorities in clinical trials. The REACH program at the Centers for 
Disease Control and Prevention, and the Health Disparity Collaboratives 
at the Bureau of Primary Health Care are authorized in statute. And I 
am pleased that the Community Health Initiative has also been 
authorized. This new environmental public health program is modeled 
after the Health Action Zones in the Healthy Communities Act, S. 2047, 
that I introduced a year ago, and guides and strengthens community 
efforts to improve health in comprehensive and sustained fashion.
  A third area of focus is expansion and acceleration of data 
collection and research across the agencies, including the Agency for 
Healthcare Research and Quality and the National Institutes of Health, 
with special emphasis on translational research. The tremendous 
advances in medical science and health technology, which have benefited 
millions of Americans, have remained out of reach for too many 
minorities, and translational research will help to remedy this 
problem. The National Center on Minority Health and Health Disparities, 
which has a leadership role in establishing the disparities research 
strategic plan at the National Institutes of Health, is reauthorized, 
and a new advisory committee has been established at the Food and Drug 
Administration, to focus on pharmacogenomics and its safe and 
appropriate application in minority populations.
  Last but not least, I want to highlight that the bill reauthorizes 
the Office of Minority Health and Health Disparity Elimination. This 
Office has been critical in providing the leadership, expertise and 
guidance for health improvement activities within the agencies of the 
Department of Health and Human Services, and has helped to ensure 
coordination, collaboration and integration of such efforts as well.
  In conclusion, I want to note that this is the first bipartisan 
effort on minority health and health disparities since 2000, when the 
Congress passed the last minority health bill. That bill accelerated 
the research that documented the full scope and magnitude of 
disparities in health and health care in this Nation, and more 
importantly, helped us understand why these disparities occur. But it 
is time for the next step. We've got to translate the knowledge we have 
gained into practical and effective interventions that will improve 
minority health and eliminate disparities, and this bill will help us 
do just that.
  I urge my colleagues to join me in cosponsoring and passing this 
critical legislation. Regardless of how you measure it--whether by 
needless suffering, lost productivity, financial costs, or lives lost--
disparities in health and health care are a tremendous problem and 
moral imperative for our Nation, and one that is within our power to 
address right now. On behalf of the millions of Americans who continue 
to be sick and tired of being sick and tired, I ask you to join me in 
voting yes to pass this bill.
                                 ______
                                 
      By Mr. SPECTER (for himself, Mr. Lott, Mr. Leahy, and Ms. 
        Landrieu):
  S. 4025. A bill to strengthen antitrust enforcement in the insurance 
industry; to the Committee on the Judiciary.
  Mr. SPECTER. Mr. President, I seek recognition today to introduce the 
Insurance Industry Antitrust Enforcement Act of 2006. This legislation 
would subject the insurance industry to the antitrust laws, which apply 
to almost every other industry in America.
  Congress enacted the McCarran-Ferguson Act in 1945. It did so in 
response to a controversial Supreme Court case in which the Court held 
that the business of insurance constituted interstate commerce. The 
ruling opened the door to federal regulation of insurance, a business 
that had historically been regulated by the States. Reacting to concern 
from the states that they would no longer have authority to collect 
taxes on insurance premiums, Congress passed McCarran-Ferguson, which 
reaffirmed the power of the States to regulate insurance and collect 
taxes.
  In doing so, Congress exempted insurance industry practices from the 
antitrust laws to the extent that such practices are ``regulated by 
state law.'' Since then, the courts have liberally interpreted the 
phrase ``regulated by state law.'' They have held that insurance 
industry practices are exempt from the antitrust laws so long as 
regulators have been given jurisdiction over the challenged practices--
regardless of whether the regulators ever exercise that jurisdiction.
  Over the years, State regulators have either chosen not to regulate, 
or failed to regulate, practices that would have violated the antitrust 
laws absent McCarran-Ferguson. With McCarran-Ferguson, such practices 
escape both regulatory and federal antitrust oversight. The most 
notorious practices to come to light involved bid-rigging and customer 
allocation by insurance broker, Marsh & McClennan, and several of the 
nation's largest insurers, including AIG and Zurich American Insurance 
Company. Under the scheme, Marsh steered unsuspecting clients to 
insurers with which it had lucrative payoff agreements. To make the 
scheme work, Marsh solicited fictitious bids from other complicit 
insurers to make the bid submitted by the selected insurer--the one 
that offered Marsh the highest payoff--seem competitive.
  Even though the scheme eliminated competition among the insurance 
companies that were involved, those companies could not be prosecuted 
under Federal antitrust law. Several States prosecuted the insurance 
companies under a variety of State laws, including antitrust laws, but 
federal prosecutors could not bring their significant resources to 
bear. There simply is no justification for that. Federal law 
enforcement should have the power to prosecute such blatant violations 
of the antitrust laws.
  This is not the first attempt to subject the insurance industry to 
Federal antitrust law. In the wake of numerous insolvencies, 
mismanagement and other misconduct by insurers in the late 1980s, 
legislation was introduced repealing the exemption. That legislation, 
introduced by Congressman Brooks, faced opposition from insurers who 
claimed that many industry practices engaged in jointly by insurance

[[Page 21595]]

companies were pro-competitive and necessary for smaller insurers. The 
legislation provided a safe harbor, specifically listing the practices 
of insurance companies that would be exempt from the antitrust laws. 
However, it proved impossible to craft a list of safe harbors for all 
the information that competing insurers claimed they needed to share 
with one another. This bill has avoided that problem.
  More recently, some have argued that the answer to insurance industry 
ills is full federal regulation. I do not necessarily believe that 
stripping the States of their authority to regulate the insurance 
industry is the answer. This bill does not do that. It allows states to 
continue to regulate their insurance industries. However, the existence 
of state regulation is no reason to prevent the Federal Government from 
prosecuting violators of antitrust laws. And, there is no reason to 
prevent Federal prosecutors from going after those violators just 
because they happen to work for insurance companies.
  As I've said, allowing Federal prosecutors to go after those who 
violate the antitrust laws will not prevent states from regulating the 
insurance industry. If a state is actively supervising practices by its 
insurance industry that might otherwise violate the antitrust laws, 
this legislation would exempt that practice from the antitrust laws. 
Antitrust law does not generally apply where a state is actively 
regulating an industry. This is as it should be and the legislation I 
introduce today, the Insurance Industry Antitrust Act of 2006, 
incorporates that standard.
  The Judiciary Committee held a hearing on this issue in May.
  During the hearing, Marc Racicot, the President of the American 
Insurance Association, a trade association composed of the nation's 
largest insurers, acknowledged that ``every State provides some form of 
antitrust regulation of insurers.'' In other words, many States already 
enforce their State antitrust laws with respect to insurers. So, I have 
to ask, why have we tied the hands of federal antitrust enforcers?
  The insurers will argue that repealing the antitrust exemption for 
insurers will create uncertainty by throwing into question the legality 
of every joint practice engaged in by insurers. They will argue that 
the legality of each joint practice will have to be litigated in court. 
However, this bill has been drafted to avoid such litigation. Rather 
than incorporating a laundry list of safe harbors, an approach that was 
taken in the past, the bill would allow the Federal Trade Commission to 
issue guidelines identifying joint practices that do not raise 
antitrust concerns and would therefore not face scrutiny from antitrust 
enforcers.
  This is a job for which the Commission is well equipped. In the past, 
the Commission along with the Justice Department issued ``Statements of 
Antitrust Enforcement Policy in Health Care.'' The Health Care 
Statements identified joint conduct by health care providers that did 
not raise antitrust concerns and therefore would likely escape scrutiny 
by antitrust enforcers. The Health Care Statements were designed to 
give health care providers certainty about the legality of their joint 
conduct under the antitrust laws. Similar guidelines for the insurance 
industry would provide insurers with certainty, but at the same time, 
would ensure that joint practices that are anticompetitive receive 
scrutiny from the antitrust enforcement agencies.
  Although insurers oppose repeal of their antitrust exemption, others 
support a repeal. In particular, the Antitrust Section of the American 
Bar Association has long supported repeal. During the Judiciary 
Committee's hearing, the current head of the Antitrust Section, Donald 
Klawiter noted the Section's nearly 20-year history of supporting 
repeal. Klawiter testified that ``the benefits of antitrust exemptions 
almost never outweigh the potential harm imposed on society by the loss 
of competition.'' At the same hearing, Robert Hunter, testifying on 
behalf of the Consumer Federation of America, concluded that 
``application of the antitrust laws to the insurance industry could 
result in double-digit savings for America's insurance consumers.''
  It is my hope that this legislation will bring the benefits of 
competition to the insurance industry and to consumers. Too many 
consumers are paying too much for insurance due to the collusive 
atmosphere that exists in the insurance industry. This has become a 
particular problem along the Gulf Coast, where insurers have shared 
hurricane loss projections, which may result in double-digit premium 
increases for Gulf Coast homeowners.
  I strongly urge members who are concerned about industry exemption 
from the antitrust laws and collusive insurance industry practices to 
support this 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. 4025

       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 ``Insurance Industry Antitrust 
     Enforcement Act of 2006''.

     SEC. 2. AMENDMENTS.

       Section 2(b) of the Act of March 9, 1945 (15 U.S.C. 
     1012(b)), commonly known as the McCarran-Ferguson Act, is 
     amended by--
       (1) inserting ``section 5 of'' after ``Clayton Act, and'';
       (2) inserting ``as section 5 relates to unfair methods of 
     competition,'' after ``Commission Act, as amended,'';
       (3) striking ``to the extent that'' and all that follows 
     through ``law.'' and inserting the following: ``except to the 
     extent--
       ``(1) the conduct of a person engaged in the business of 
     insurance is undertaken pursuant to a clearly articulated 
     policy of a State that is actively supervised by that State; 
     or
       ``(2) the conduct involves a third party not engaged in the 
     business of insurance--
       ``(A) that collects, compiles or disseminates aggregated 
     historical loss data;
       ``(B) that develops and disseminates standardized insurance 
     policy forms, contracts addendums or language; or
       ``(C) that--
       ``(i) facilitates other joint conduct pursuant to 
     guidelines issued by the Federal Trade Commission or existing 
     law; and
       ``(ii) does not include--

       ``(I) exchanging information among competitors relating to 
     sales, profitability, prices, marketing, or distribution of 
     any product, process, or service that is not reasonably 
     required for the purposes enumerated in subparagraph (A) or 
     (B);
       ``(II) entering into any agreement or engaging in any other 
     conduct that would allocate a market with a competitor; or
       ``(III) entering into any agreement or conspiracy that 
     would set or restrain prices of any good or service.''; and

       (4) adding at the end the following:

     ``Except as it relates to unfair methods of competition, the 
     Federal Trade Commission Act shall be applicable to the 
     business of insurance to the extent that such business is not 
     regulated by State law.'' .

  Mr. LEAHY. Mr. President, I am pleased to join Senator Specter, along 
with Senators Landrieu and Lott, in introducing the ``Insurance 
Industry Antitrust Enforcement Act of 2006.''
  In 1945, Congress passed the McCarran-Ferguson Act, giving the 
insurance industry almost complete immunity from Federal antitrust 
laws. The Act acknowledges the significant role States have in the 
regulation of the business of insurance, and implements this policy by 
preempting Federal antitrust laws which would intrude upon State 
authority in the area.
  Industry specific statutory exemptions from antitrust laws are rare, 
and when they are enacted, it is important that we periodically revisit 
them to ensure that the benefits of the exemption are not outweighed by 
the potential harms that could be imposed on consumers from the loss of 
competition. The McCarran-Ferguson Act is no exception and, for good 
reason, has recently been revisited by the Senate Judiciary Committee.
  At a recent hearing before the Committee, it became abundantly clear 
that the McCarran-Ferguson Act is no longer a justified or practical 
law; it is overly complex and stifles competition. Recognizing that the 
insurance industry has unique characteristics, including the dependence 
on collective claim and loss data, Senator Specter and I drafted a bill 
to accommodate those legitimate needs while still providing Federal 
regulators with the tools to investigate and prevent collusion and 
other anticompetitive behaviors. More specifically, our bill authorizes 
Federal

[[Page 21596]]

enforcement agencies to police violations of antitrust laws, without 
weakening the States' comprehensive regulatory power.
  American consumers, from sophisticated multi-national businesses to 
Vermonters shopping for personal insurance, have the right to be 
confident that the cost of their insurance reflects competitive market 
conditions and not collusive behavior. Yet, when consumers are 
continually faced with higher prices, fewer options, and declining 
quality of service from their insurance providers, there are no such 
assurances.
  There is little disagreement that consumers are increasingly 
frustrated with the cost and quality of their insurance policies. This 
bill is an important step towards restoring integrity in our insurance 
markets. I hope it will act as a catalyst for action to ensure market 
forces are at work in the insurance industry.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Baucus):
  S. 4026. A bill to amend the Internal Revenue Code of 1986 to make 
technical corrections, and for other purposes; to the Committee on 
Finance.
  Mr. GRASSLEY. Mr. President, today Senator Baucus and I are pleased 
to introduce the Tax Technical Corrections Act of 2006.
  Technical Corrections measures are routine for major tax acts, and 
are necessary to ensure that the provisions of the acts are working 
consistently with Congressional intent, or to provide clerical 
corrections. Because these measures carry out Congressional intent, no 
revenue gain or loss is scored from them.
  Technical corrections are derived from a deliberative and 
consultative process among the Congressional and Administration tax 
staffs. That means the Republican and Democratic staffs of the House 
Ways and Means and Senate Finance Committees are involved, as is the 
staff of the Treasury Department. All of this work is performed with 
the participation and guidance of the non-partisan staff of the Joint 
Committee on Taxation. A technical enters the list only if all staffs 
agree it is appropriate.
  By filing this bill, we hope interested parties and practitioners 
will comment and provide direction on further edits, additions, or 
deletions. These comments should be submitted in a timely manner, by 
the end of October. It is our hope that we may move this package of 
technicals in November if possible.
  We ask unanimous consent that the text of the bill print in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4026

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tax 
     Technical Corrections Act of 2006''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Amendments related to the Tax Increase Prevention and 
              Reconciliation Act of 2005.
Sec. 3. Amendment related to the Gulf Opportunity Zone Act of 2005.
Sec. 4. Amendments related to the Safe, Accountable, Flexible, 
              Efficient Transportation Equity Act: A Legacy for Users.
Sec. 5. Amendments related to the Energy Policy Act of 2005.
Sec. 6. Amendments related to the American Jobs Creation Act of 2004.
Sec. 7. Amendment related to the Jobs and Growth Tax Relief 
              Reconciliation Act of 2003.
Sec. 8. Amendments related to the Economic Growth and Tax Relief 
              Reconciliation Act of 2001.
Sec. 9. Amendment related to the Tax Relief Extension Act of 1999.
Sec. 10. Amendment related to the Internal Revenue Service 
              Restructuring and Reform Act of 1998.
Sec. 11. Clerical corrections.

     SEC. 2. AMENDMENTS RELATED TO THE TAX INCREASE PREVENTION AND 
                   RECONCILIATION ACT OF 2005.

       (a) Amendments Related to Section 103 of the Act.--
       (1) Subparagraph (A) of section 954(c)(6) is amended--
       (A) in the first sentence, by striking ``which is not 
     subpart F income'' and inserting ``which is neither subpart F 
     income nor income treated as effectively connected with the 
     conduct of a trade or business in the United States'', and
       (B) by striking the last sentence and inserting the 
     following: ``The Secretary shall prescribe such regulations 
     as may be necessary or appropriate to carry out this 
     paragraph, including such regulations as may be necessary or 
     appropriate to prevent the abuse of the purposes of this 
     paragraph.''.
       (2) Paragraph (6) of section 954(c) is amended by 
     redesignating subparagraph (B) as subparagraph (C) and 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Exception.--Subparagraph (A) shall not apply in the 
     case of any interest, rent, or royalty to the extent such 
     interest, rent, or royalty creates (or increases) a deficit 
     which under section 952(c) may reduce the subpart F income of 
     the payor or another controlled foreign corporation.''.
       (b) Amendments Related to Section 202 of the Act.--
       (1) Subparagraph (B) of section 355(b)(3) is amended to 
     read as follows:
       ``(B) Affiliated group rule.--
       ``(i) In general.--For purposes of subparagraph (A), all 
     members of such corporation's separate affiliated group shall 
     be treated as one corporation.
       ``(ii) Separate affiliated group.--For purposes of clause 
     (i), the term `separate affiliated group' means, with respect 
     to any corporation, the affiliated group which would be 
     determined under section 1504(a) if such corporation were the 
     common parent and section 1504(b) did not apply. Such term 
     shall not include any corporation which became a member of--

       ``(I) such separate affiliated group (determined without 
     regard to this sentence), or
       ``(II) any other separate affiliated group (determined 
     without regard to this sentence) which includes any other 
     corporation to which subparagraph (A) applies with respect to 
     the same distribution,

     during the 5-year period described in paragraph (2)(B) by 
     reason of one or more transactions in which gain or loss was 
     recognized in whole or in part (and shall not include any 
     trade or business conducted by such corporation at the time 
     it became such a member).''.
       (2) Paragraph (3) of section 355(b) is amended by adding at 
     the end the following new subparagraph:
       ``(E) Regulations.--The Secretary shall prescribe 
     regulations which provide for the proper application of 
     subparagraphs (B), (C), and (D) of paragraph (2) with respect 
     to distributions to which this paragraph applies.''.
       (c) Amendments Related to Section 515 of the Act.--
     Paragraph (2) of section 911(f) is amended--
       (1) by striking ``the tentative minimum tax under section 
     55'' in the matter preceding subparagraph (A) and inserting 
     ``the amount determined under the first sentence of section 
     55(b)(1)(A)(i)'', and
       (2) by striking ``the amount which would be such tentative 
     minimum tax'' each place it appears in subparagraphs (A) and 
     (B) and inserting ``the amount which would be determined 
     under such sentence''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the Tax 
     Increase Prevention and Reconciliation Act of 2005 to which 
     they relate.

     SEC. 3. AMENDMENT RELATED TO THE GULF OPPORTUNITY ZONE ACT OF 
                   2005.

       (a) Amendment Related to Section 303 of the Act.--Clause 
     (iii) of section 903(d)(2)(B) of the American Jobs Creation 
     Act of 2004, as amended by section 303 of the Gulf 
     Opportunity Zone Act of 2005, is amended by inserting ``or 
     the Secretary's delegate'' after ``The Secretary of the 
     Treasury''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 303 of the Gulf 
     Opportunity Zone Act of 2005.

     SEC. 4. AMENDMENTS RELATED TO THE SAFE, ACCOUNTABLE, 
                   FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: 
                   A LEGACY FOR USERS.

       (a) Amendments Related to Section 11113 of the Act.--
     Paragraph (3) of section 6427(i) is amended--
       (1) by inserting ``or under subsection (e)(2) by any person 
     with respect to an alternative fuel (as defined in section 
     6426(d)(2))'' after ``section 6426'' in subparagraph (A),
       (2) by inserting ``or (e)(2)'' after ``subsection (e)(1)'' 
     in subparagraphs (A)(i) and (B), and
       (3) by inserting ``and alternative fuel credit'' after 
     ``mixture credit'' in the heading thereof.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     SAFETEA-LU to which they relate.

     SEC. 5. AMENDMENTS RELATED TO THE ENERGY POLICY ACT OF 2005.

       (a) Amendment Related to Section 1306 of the Act.--
     Paragraph (2) of section 45J(b) is amended to read as 
     follows:

[[Page 21597]]

       ``(2) Amount of national limitation.--The aggregate amount 
     of national megawatt capacity limitation allocated by the 
     Secretary under paragraph (3) shall not exceed 6,000 
     megawatts.''.
       (b) Amendment Related to Section 1342 of the Act.--So much 
     of subsection (b) of section 30C as precedes paragraph (1) 
     thereof is amended to read as follows:
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to all alternative fuel vehicle refueling 
     property placed in service by the taxpayer during the taxable 
     year at a location shall not exceed--''.
       (c) Amendments Related to Section 1351 of the Act.--
       (1) Paragraph (3) of section 41(a) is amended by inserting 
     ``for energy research'' before the period at the end.
       (2) Paragraph (6) of section 41(f) is amended by adding at 
     the end the following new subparagraph:
       ``(E) Energy research.--The term `energy research' does not 
     include any research which is not qualified research.''.
       (d) Amendments Related to Section 1362 of the Act.--
       (1)(A) Paragraph (1) of section 4041(d) is amended by 
     adding at the end the following new sentence: ``No tax shall 
     be imposed under the preceding sentence on the sale or use of 
     any liquid if tax was imposed with respect to such liquid 
     under section 4081 at the Leaking Underground Storage Tank 
     Trust Fund financing rate.''.
       (B) Paragraph (3) of section 4042(b) is amended to read as 
     follows:
       ``(3) Exception for fuel on which leaking underground 
     storage tank trust fund financing rate separately imposed.--
     The Leaking Underground Storage Tank Trust Fund financing 
     rate under paragraph (2)(B) shall not apply to the use of any 
     fuel if tax was imposed with respect to such fuel under 
     section 4041(d) or 4081 at the Leaking Underground Storage 
     Tank Trust Fund financing rate.''.
       (C) Notwithstanding section 6430 of the Internal Revenue 
     Code of 1986, a refund, credit, or payment may be made under 
     subchapter B of chapter 65 of such Code for taxes imposed 
     with respect to any liquid after September 30, 2005, and 
     before the date of the enactment of this Act under section 
     4041(d)(1) or 4042 of such Code at the Leaking Underground 
     Storage Tank Trust Fund financing rate to the extent that tax 
     was imposed with respect to such liquid under section 4081 at 
     the Leaking Underground Storage Tank Trust Fund financing 
     rate.
       (2)(A) Paragraph (5) of section 4041(d) is amended--
       (i) by striking ``(other than with respect to any sale for 
     export under paragraph (3) thereof)'', and
       (ii) by adding at the end the following new sentence: ``The 
     preceding sentence shall not apply with respect to subsection 
     (g)(3) and so much of subsection (g)(1) as relates to vessels 
     (within the meaning of section 4221(d)(3)) employed in 
     foreign trade or trade between the United States and any of 
     its possessions.''
       (B) Section 4082 is amended--
       (i) by striking ``(other than such tax at the Leaking 
     Underground Storage Tank Trust Fund financing rate imposed in 
     all cases other than for export)'' in subsection (a), and
       (ii) by redesignating subsections (f) and (g) as 
     subsections (g) and (h) and by inserting after subsection (e) 
     the following new subsection:
       ``(f) Exception for Leaking Underground Storage Tank Trust 
     Fund Financing Rate.--
       ``(1) In general.--Subsection (a) shall not apply to the 
     tax imposed under section 4081 at the Leaking Underground 
     Storage Tank Trust Fund financing rate.
       ``(2) Exception for export, etc.--Paragraph (1) shall not 
     apply with respect to any fuel if the Secretary determines 
     that such fuel is destined for export or for use by the 
     purchaser as supplies for vessels (within the meaning of 
     section 4221(d)(3)) employed in foreign trade or trade 
     between the United States and any of its possessions.''.
       (C) Subsection (e) of section 4082 is amended--
       (i) by striking ``an aircraft, the rate of tax under 
     section 4081(a)(2)(A)(iii) shall be zero.'' and inserting 
     ``an aircraft--
       ``(1) the rate of tax under section 4081(a)(2)(A)(iii) 
     shall be zero, and
       ``(2) if such aircraft is employed in foreign trade or 
     trade between the United States and any of its possessions, 
     the increase in such rate under section 4081(a)(2)(B) shall 
     be zero.''; and
       (ii) by moving the last sentence flush with the margin of 
     such subsection (following the paragraph (2) added by clause 
     (i)).
       (D) Section 6430 is amended to read as follows:

     ``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND 
                   STORAGE TANK TRUST FUND FINANCING RATE.

       ``No refunds, credits, or payments shall be made under this 
     subchapter for any tax imposed at the Leaking Underground 
     Storage Tank Trust Fund financing rate, except in the case of 
     fuels--
       ``(1) which are exempt from tax under section 4081(a) by 
     reason of section 4081(f)(2),
       ``(2) which are exempt from tax under section 4041(d) by 
     reason of the last sentence of paragraph (5) thereof, or
       ``(3) with respect to which the rate increase under section 
     4081(a)(2)(B) is zero by reason of section 4082(e)(2).''.
       (3) Paragraph (5) of section 4041(d) is amended by 
     inserting ``(b)(1)(A)'' after ``subsections''.
       (e) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall take 
     effect as if included in the provisions of the Energy Policy 
     Act of 2005 to which they relate.
       (2) Nonapplication of exemption for off-highway business 
     use.--The amendment made by subsection (d)(3) shall apply to 
     fuel sold for use or used after the date of the enactment of 
     this Act.
       (3) Amendment made by the safetea-lu.--The amendment made 
     by subsection (d)(2)(C)(ii) shall take effect as if included 
     in section 11161 of the SAFETEA-LU.

     SEC. 6. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT 
                   OF 2004.

       (a) Amendments Related to Section 710 of the Act.--
       (1) Clause (ii) of section 45(c)(3)(A) is amended by 
     striking ``which is segregated from other waste materials 
     and''.
       (2) Subparagraph (B) of section 45(d)(2) is amended by 
     inserting ``and'' at the end of clause (i), by striking 
     clause (ii), and by redesignating clause (iii) as clause 
     (ii).
       (b) Amendments Related to Section 848 of the Act.--
       (1) Section 470 is amended by redesignating subsections 
     (e), (f), and (g) as subsections (f), (g), and (h) and by 
     inserting after subsection (d) the following new subsection:
       ``(e) Exception for Certain Partnerships.--
       ``(1) In general.--In the case of any property which would 
     (but for this subsection) be tax-exempt use property solely 
     by reason of section 168(h)(6), such property shall not be 
     treated as tax-exempt use property for purposes of this 
     section for any taxable year of the partnership if--
       ``(A) such property is not property of a character subject 
     to the allowance for depreciation,
       ``(B) any credit is allowable under section 42 or 47 with 
     respect to such property, or
       ``(C) except as provided in regulations prescribed by the 
     Secretary under subsection (h)(4), the requirements of 
     paragraphs (2) and (3) are met with respect to such property 
     for such taxable year.
       ``(2) Availability of funds.--
       ``(A) In general.--The requirement of this paragraph is met 
     for any taxable year with respect to any property owned by 
     the partnership if (at all times during the taxable year) not 
     more than the allowable partnership amount of funds are--
       ``(i) subject to any arrangement referred to in 
     subparagraph (C), or
       ``(ii) set aside or expected to be set aside,

     to or for the benefit of any taxable partner of the 
     partnership or any lender, or to or for the benefit of any 
     tax-exempt partner of the partnership to satisfy any 
     obligation of such tax-exempt partners to the partnership, 
     any taxable partner of the partnership, or any lender.
       ``(B) Allowable partnership amount.--For purposes of this 
     subsection, the term `allowable partnership amount' means, as 
     of any date, the greater of--
       ``(i) the sum of--

       ``(I) 20 percent of the sum of the taxable partners' 
     capital accounts determined as of such date under the rules 
     of section 704(b), plus
       ``(II) 20 percent of the sum of the taxable partners' share 
     of the recourse liabilities of the partnership as determined 
     under section 752, or

       ``(ii) 20 percent of the aggregate debt of the partnership 
     as of such date.
       ``(iii) No allowable partnership amount for arrangements 
     outside the partnership.--The allowable partnership amount 
     shall be zero with respect to any set aside or arrangement 
     under which any of the funds referred to in subparagraph (A) 
     are not partnership property.
       ``(C) Arrangements.--The arrangements referred to in this 
     subparagraph include a loan by a tax-exempt partner or the 
     partnership to any taxable partner, the partnership, or any 
     lender and any arrangement referred to in subsection 
     (d)(1)(B).
       ``(D) Special rules.--
       ``(i) Exception for short-term funds.--Funds which are set 
     aside, or subject to any arrangement, for a period of less 
     than 12 months shall not be taken into account under 
     subparagraph (A). Except as provided by the Secretary, all 
     related set asides and arrangements shall be treated as 1 
     arrangement for purposes of this clause.
       ``(ii) Economic relationship test.--Funds shall not be 
     taken into account under subparagraph (A) if such funds--

       ``(I) bear no connection to the economic relationships 
     among the partners, and
       ``(II) bear no connection to the economic relationships 
     among the partners and the partnership.

       ``(iii) Reasonable person standard.--For purpose of 
     subparagraph (A)(ii), funds shall be treated as set aside or 
     expected to be set aside only if a reasonable person would 
     conclude, based on the facts and circumstances, that such 
     funds are set aside or expected to be set aside.

[[Page 21598]]

       ``(3) Option to purchase.--
       ``(A) In general.--The requirement of this paragraph is met 
     for any taxable year with respect to any property owned by 
     the partnership if (at all times during such taxable year)--
       ``(i) each tax-exempt partner does not have an option to 
     purchase (or compel distribution of) such property or any 
     direct or indirect interest in the partnership at any time 
     other than at the fair market value of such property or 
     interest at the time of such purchase or distribution, and
       ``(ii) the partnership and each taxable partner does not 
     have an option to sell (or compel distribution of) such 
     property or any direct or indirect interest in the 
     partnership to a tax-exempt partner at any time other than at 
     the fair market value of such property or interest at the 
     time of such sale or distribution.
       ``(B) Option for determination of fair market value.--Under 
     regulations prescribed by the Secretary, a value of property 
     determined on the basis of a formula shall be treated for 
     purposes of subparagraph (A) as the fair market value of such 
     property if such value is determined on the basis of 
     objective criteria that are reasonably designed to 
     approximate the fair market value of such property at the 
     time of the purchase, sale, or distribution, as the case may 
     be.''.
       (2) Subsection (g) of section 470, as redesignated by 
     paragraph (1), is amended by adding at the end the following 
     new paragraphs:
       ``(5) Tax-exempt partner.--The term `tax-exempt partner' 
     means, with respect to any partnership, any partner of such 
     partnership which is a tax-exempt entity within the meaning 
     of section 168(h)(6).
       ``(6) Taxable partner.--The term `taxable partner' means, 
     with respect to any partnership, any partner of such 
     partnership which is not a tax-exempt partner.''.
       (3) Subsection (h) of section 470, as redesignated by 
     paragraph (1), is amended--
       (A) by striking ``, and'' at the end of paragraph (1) and 
     inserting ``or owned by the same partnership,'',
       (B) by striking the period at the end of paragraph (2) and 
     inserting a comma, and
       (C) by adding at the end the following new paragraphs:
       ``(3) provide for the application of this section to tiered 
     and other related partnerships, and
       ``(4) provide for the treatment of partnership property 
     (other than property described in subsection (e)(1)(A)) as 
     tax-exempt use property if such property is used in an 
     arrangement which is inconsistent with the purposes of this 
     section determined by taking into account one or more of the 
     following factors:
       ``(A) A tax-exempt partner maintains physical possession or 
     control or holds the benefits and burdens of ownership with 
     respect to such property.
       ``(B) There is insignificant equity investment in such 
     property by any taxable partner.
       ``(C) The transfer of such property to the partnership does 
     not result in a change in use of such property.
       ``(D) Such property is necessary for the provision of 
     government services.
       ``(E) The deductions for depreciation with respect to such 
     property are allocated disproportionately to one or more 
     taxable partners relative to such partner's risk of loss with 
     respect to such property or to such partner's allocation of 
     other partnership items.
       ``(F) Such other factors as the Secretary may determine.''.
       (4) Paragraph (2) of section 470(c) is amended--
       (A) by striking ``and'' at the end of subparagraph (A), by 
     redesignating subparagraph (B) as subparagraph (C), and by 
     inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) by treating the entire property as tax-exempt use 
     property if any portion of such property is treated as tax-
     exempt use property by reason of paragraph (6) thereof.'', 
     and
       (B) by striking the flush sentence at the end.
       (5) Subparagraph (A) of section 470(d)(1) is amended by 
     striking ``(at any time during the lease term)'' and 
     inserting ``(at all times during the lease term)''.
       (c) Amendments Related to Section 888 of the Act.--
       (1) Subparagraph (A) of section 1092(a)(2) is amended by 
     striking ``and'' at the end of clause (ii), by redesignating 
     clause (iii) as clause (iv), and by inserting after clause 
     (ii) the following new clause:
       ``(iii) if the application of clause (ii) does not result 
     in an increase in the basis of any offsetting position in the 
     identified straddle, the basis of each of the offsetting 
     positions in the identified straddle shall be increased in a 
     manner which--

       ``(I) is reasonable, consistent with the purposes of this 
     paragraph, and consistently applied by the taxpayer, and
       ``(II) results in an aggregate increase in the basis of 
     such offsetting positions which is equal to the loss 
     described in clause (ii), and''.

       (2)(A) Subparagraph (B) of section 1092(a)(2) is amended by 
     adding at the end the following flush sentence:
     ``A straddle shall be treated as clearly identified for 
     purposes of clause (i) only if such identification includes 
     an identification of the positions in the straddle which are 
     offsetting with respect other positions in the straddle.''.
       (B) Subparagraph (A) of section 1092(a)(2) is amended--
       (i) by striking ``identified positions'' in clause (i) and 
     inserting ``positions'',
       (ii) by striking ``identified position'' in clause (ii) and 
     inserting ``position'', and
       (iii) by striking ``identified offsetting positions'' in 
     clause (ii) and inserting ``offsetting positions''.
       (C) Subparagraph (B) of section 1092(a)(3) is amended by 
     striking ``identified offsetting position'' and inserting 
     ``offsetting position''.
       (3) Paragraph (2) of section 1092(a) is amended by 
     redesignating subparagraph (C) as subparagraph (D) and 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) Application to liabilities and obligations.--Except 
     as otherwise provided by the Secretary, rules similar to the 
     rules of clauses (ii) and (iii) of subparagraph (A) shall 
     apply for purposes of this paragraph with respect to any 
     position which is, or has been, a liability or obligation.''.
       (4) Subparagraph (D) of section 1092(a)(2), as redesignated 
     by paragraph (3), is amended by inserting ``the rules for the 
     application of this section to a position which is or has 
     been a liability or obligation, methods of loss allocation 
     which satisfy the requirements of subparagraph (A)(iii),'' 
     before ``and the ordering rules''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     American Jobs Creation Act of 2004 to which they relate.

     SEC. 7. AMENDMENT RELATED TO THE JOBS AND GROWTH TAX RELIEF 
                   RECONCILIATION ACT OF 2003.

       (a) Amendment Related to Section 302 of the Act.--Clause 
     (ii) of section 1(h)(11)(B) is amended by striking ``and'' at 
     the end of subclause (II), by striking the period at the end 
     of subclause (III) and inserting ``, and'', and by adding at 
     the end the following new subclause:

       ``(IV) any dividend received from a corporation which is a 
     DISC or former DISC (as defined in section 992(a)) to the 
     extent such dividend is paid out of the corporation's 
     accumulated DISC income or is a deemed distribution pursuant 
     to section 995(b)(1).''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to dividends received on or after September 29, 
     2006, in taxable years ending after such date.

     SEC. 8. AMENDMENTS RELATED TO THE ECONOMIC GROWTH AND TAX 
                   RELIEF RECONCILIATION ACT OF 2001.

       (a) Amendments Related to Section 617 of the Act.--
       (1) Subclause (II) of section 402(g)(7)(A)(ii) is amended 
     by striking ``for prior taxable years'' and inserting 
     ``permitted for prior taxable years by reason of this 
     paragraph''.
       (2) Subparagraph (A) of section 3121(v)(1) is amended by 
     inserting ``or consisting of designated Roth contributions 
     (as defined in section 402A(c))'' before the comma at the 
     end.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the provisions of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 to 
     which they relate.

     SEC. 9. AMENDMENT RELATED TO THE TAX RELIEF EXTENSION ACT OF 
                   1999.

       (a) Amendment Related to Section 507 of the Act.--Clause 
     (i) of section 45(e)(7)(A) is amended by striking ``placed in 
     service by the taxpayer'' and inserting ``originally placed 
     in service''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in section 507 of the Tax 
     Relief Extension Act of 1999.

     SEC. 10. AMENDMENT RELATED TO THE INTERNAL REVENUE SERVICE 
                   RESTRUCTURING AND REFORM ACT OF 1998.

       (a) Amendment Related to Section 3509 of the Act.--
     Paragraph (3) of section 6110(i) is amended by inserting 
     ``and related background file documents'' after ``Chief 
     Counsel advice'' in the matter preceding subparagraph (A).
       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the provision of the 
     Internal Revenue Service Restructuring and Reform Act of 1998 
     to which it relates.

     SEC. 11. CLERICAL CORRECTIONS.

       (a) In General.--
       (1) Paragraph (5) of section 21(e) is amended by striking 
     ``section 152(e)(3)(A)'' in the flush matter after 
     subparagraph (B) and inserting ``section 152(e)(4)(A)''.
       (2) Paragraph (3) of section 25C(c) is amended by striking 
     ``section 3280'' and inserting ``part 3280''.
       (3) Subsection (a) of section 34 is amended--
       (A) in paragraph (1), by striking ``with respect to 
     gasoline used during the taxable year on a farm for farming 
     purposes'',
       (B) in paragraph (2), by striking ``with respect to 
     gasoline used during the taxable year (A) otherwise than as a 
     fuel in a highway vehicle or (B) in vehicles while engaged in 
     furnishing certain public passenger land transportation 
     service'', and

[[Page 21599]]

       (C) in paragraph (3), by striking ``with respect to fuels 
     used for nontaxable purposes or resold during the taxable 
     year''.
       (4) Paragraph (2) of section 35(d) is amended--
       (A) by striking ``paragraph (2) or (4) of'', and
       (B) by striking ``(within the meaning of section 
     152(e)(1))'' and inserting ``(as defined in section 
     152(e)(4)(A))''.
       (5) Paragraph (24) of section 38(b) is amended by striking 
     ``and'' at the end.
       (6) Paragraphs (2) and (3) of section 45L(c) are each 
     amended by striking ``section 3280'' and inserting ``part 
     3280''.
       (7) Clause (ii) of section 48A(d)(4)(B) is amended by 
     striking ``subsection'' both places it appears.
       (8) The last sentence of section 125(b)(2) is amended by 
     striking ``last sentence'' and inserting ``second sentence''.
       (9) Subclause (II) of section 167(g)(8)(C)(ii) is amended 
     by striking ``section 263A(j)(2)'' and inserting ``section 
     263A(i)(2)''.
       (10) Subparagraph (G) of section 1260(c)(2) is amended by 
     adding ``and'' at the end.
       (11) Paragraph (2) of section 1297(a) is amended by 
     striking ``subsection (e)'' and inserting ``subsection (f)''.
       (12) Paragraph (2) of section 1400O is amended by striking 
     ``under of'' and inserting ``under''.
       (13) The table of sections for part II of subchapter Y of 
     chapter 1 is amended by adding at the end the following new 
     item:

``Sec. 1400T. Special rules for mortgage revenue bonds.''.

       (14) Subsection (b) of section 4082 is amended to read as 
     follows:
       ``(b) Nontaxable Use.--For purposes of this section, the 
     term `nontaxable use' means--
       ``(1) any use which is exempt from the tax imposed by 
     section 4041(a)(1) other than by reason of a prior imposition 
     of tax,
       ``(2) any use in a train, and
       ``(3) any use described in section 4041(a)(1)(C)(iii)(II).
     The term `nontaxable use' does not include the use of 
     kerosene in an aircraft and such term shall not include any 
     use described in section 6421(e)(2)(C).''.
       (15) Paragraph (4) of section 4101(a) (relating to 
     registration in event of change of ownership) is redesignated 
     as paragraph (5).
       (16) Paragraph (6) of section 4965(c) is amended by 
     striking ``section 4457(e)(1)(A)'' and inserting ``section 
     457(e)(1)(A)''.
       (17) Subpart C of part II of subchapter A of chapter 51 is 
     amended by redesignating section 5432 (relating to 
     recordkeeping by wholesale dealers) as section 5121.
       (18) Paragraph (2) of section 5732(c), as redesignated by 
     section 11125(b)(20)(A) of the SAFETEA-LU, is amended by 
     striking ``this subpart'' and inserting ``this subchapter''.
       (19) Paragraph (3) of section 6427(e) (relating to 
     termination), as added by section 11113 of the SAFETEA-LU, is 
     redesignated as paragraph (5) and moved after paragraph (4).
       (20) Clause (ii) of section 6427(l)(4)(A) is amended by 
     striking ``section 4081(a)(2)(iii)'' and inserting ``section 
     4081(a)(2)(A)(iii)''.
       (21)(A) Section 6427, as amended by section 1343(b)(1) of 
     the Energy Policy Act of 2005, is amended by striking 
     subsection (p) and redesignating subsection (q) as subsection 
     (p).
       (B) The Internal Revenue Code of 1986 shall be applied and 
     administered as if the amendments made by paragraph (2) of 
     section 11151(a) of the SAFETEA-LU had never been enacted.
       (22)(A) Paragraph (3) of section 9002 is amended by 
     striking ``section 309(a)(1)'' and inserting ``section 
     306(a)(1)''.
       (B) Paragraph (1) of section 9004(a) is amended by striking 
     ``section 320(b)(1)(B)'' and inserting ``section 
     315(b)(1)(B)''.
       (C) Paragraph (3) of section 9032 is amended by striking 
     ``section 309(a)(1)'' and inserting ``section 306(a)(1)''.
       (D) Subsection (b) of section 9034 is amended by striking 
     ``section 320(b)(1)(A)'' and inserting ``section 
     315(b)(1)(A)''.
       (23) Section 9006 is amended by striking ``Comptroller 
     General'' each place it appears and inserting ``Commission''.
       (24) Subsection (c) of section 9503 is amended by 
     redesignating paragraph (7) (relating to transfers from the 
     trust fund for certain aviation fuels taxes) as paragraph 
     (6).
       (25) Paragraph (1) of section 1301(g) of the Energy Policy 
     Act of 2005 is amended by striking ``shall take effect of the 
     date of the enactment'' and inserting ``shall take effect on 
     the date of the enactment''.
       (b) Clerical Amendments Related to the Gulf Opportunity 
     Zone Act of 2005.--
       (1) Amendments related to section 402 of the act.--
     Subparagraph (B) of section 24(d)(1) is amended--
       (A) by striking ``the excess (if any) of'' in the matter 
     preceding clause (i) and inserting ``the greater of'', and
       (B) by striking ``section'' in clause (ii)(II) and 
     inserting ``section 32''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the provisions of the 
     Gulf Opportunity Zone Act of 2005 to which they relate.
       (c) Clerical Amendments Related to the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users.--
       (1) Amendments related to section 11163 of the act.--
     Subparagraph (C) of section 6416(a)(4) is amended--
       (A) by striking ``ultimate vendor'' and all that follows 
     through ``has certified'' and inserting ``ultimate vendor or 
     credit card issuer has certified'', and
       (B) by striking ``all ultimate purchasers of the vendor'' 
     and all that follows through ``are certified'' and inserting 
     ``all ultimate purchasers of the vendor or credit card issuer 
     are certified''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the provisions of the 
     Safe, Accountable, Flexible, Efficient Transportation Equity 
     Act: A Legacy for Users to which they relate.
       (d) Clerical Amendments Related to the Energy Policy Act of 
     2005.--
       (1) Amendment related to section 1344 of the act.--
     Subparagraph (B) of section 6427(e)(5), as redesignated by 
     subsection (a)(19), is amended by striking ``2006'' and 
     inserting ``2008''.
       (2) Amendments related to section 1351 of the act.--
     Subparagraphs (A)(ii) and (B)(ii) of section 41(f)(1) are 
     each amended by striking ``qualified research expenses and 
     basic research payments'' and inserting ``qualified research 
     expenses, basic research payments, and amounts paid or 
     incurred to energy research consortiums,''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the provisions of the 
     Energy Policy Act of 2005 to which they relate.
                                 ______
                                 
      By Mr. HATCH.
  S. 4027. A bill to amend the Internal Revenue Code of 1986 to allow 
an above-the-line deduction for certain professional development and 
other expenses of elementary and secondary school teachers and for 
certain certification expenses of individuals becoming science, 
technology engineering, or math teachers; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce legislation 
designed to make the tax laws more fair for America's primary and 
secondary school teachers.
  Our public school teachers are some of the unheralded heroes of our 
society.
  These women and men dedicate their careers to educating the young 
people of America.
  School teachers labor in often difficult and even dangerous 
circumstances. In most places, including in my home State of Utah, the 
salary of the average public school teacher is significantly below the 
national average.
  A historic turnover is taking place in the teaching profession. While 
student enrollments are rising rapidly, more than a million veteran 
teachers are nearing retirement.
  Experts predict that overall we will need more than two million new 
teachers in the next decade.
  This teacher recruitment problem has reached crisis proportions in 
some urban and rural areas. The shortage is most acute in high-need 
subject areas such as math, science, and technology.
  Retaining qualified teachers in the schools is only part of the 
puzzle. Attracting new teachers in math, science, and technology is 
another. It is clear that our teacher recruitment problem represents 
one the biggest challenges America faces as we contemplate how we are 
going to prepare the next generation to take their places in our 
society and in our economy.
  Unfortunately, these problems of retention and recruitment of public 
school teachers are exacerbated by the unfair tax treatment these 
professionals currently receive under our tax law. Specifically, 
teachers find themselves greatly disadvantaged by the lack of 
deductibility of professional development expenses and of the out-of-
pocket costs of classroom materials that practically all teachers find 
themselves supplying. Let me explain.
  As many other professionals, most elementary and secondary school 
teachers regularly incur expenses to keep themselves current in their 
field of knowledge. These include subscriptions to journals and other 
periodicals as well as the cost of courses and seminars designed to 
improve their knowledge or teaching skills. These expenditures are 
necessary to keep our teachers up to date on the latest ideas, 
techniques, and trends so that they can provide our children with the 
best education possible.

[[Page 21600]]

  Furthermore, almost all teachers find themselves providing basic 
classroom materials for their students. Because of tight education 
budgets, most schools do not provide 100 percent of the material 
teachers need to adequately present their lessons. As a result, 
dedicated teachers incur personal expenses for copies, art supplies, 
books, puzzles and games, paper, pencils, and countless other needs. If 
not for the willingness of teachers to purchase these supplies 
themselves, many students would simply go without needed materials.
  I realize that employees in many fields of endeavor incur expenses 
for professional development and out-of-pocket expenses. In many cases, 
however, these costs are fully reimbursed by the employer. This is 
seldom the case with school teachers. Other professionals who are self-
employed are able to fully deduct these types of expenses.
  Under the current tax law, unreimbursed employee expenses are 
deductible generally, but only as miscellaneous itemized deductions. 
However, there are two practical hurdles that effectively make these 
expenses non-deductible for most teachers.
  The first hurdle is that the total amount of a taxpayer's deductible 
miscellaneous deductions must exceed two percent of adjusted gross 
income before they begin to be deductible.
  The second hurdle is that the amount in excess of the two percent 
floor, if any, combined with all other deductions of the taxpayer, must 
exceed the standard deduction before the teacher can itemize. Only 
about a third of taxpayers have enough deductions to itemize.
  The unfortunate effect of these two limitations is that, as a 
practical matter, only a small proportion of teachers are able to 
deduct their professional development and out-of-pocket supplies 
expenses.
  Let me illustrate this unfair situation with an example.
  Let us consider the case of a fifth-year high school English teacher 
in Utah whom I will call Alice White Head. Alice is single and earns 
$48,000 per year. Last year she incurred $1,050 for a course she took 
over the summer to increase her knowledge of English literature. She 
also spent $450 for classroom supplies out of her own pocket. She was 
not reimbursed for either of these expenses, which totaled $1,500, by 
her school district. Under current law, Alice's expenditures are 
deductible, subject to the limitations I mentioned. The first 
limitation is that her expenses must exceed two percent of her income 
before they begin to be deductible. Two percent of $48,000 is $960. 
Thus, only $540 of her $1,500 total expenses is deductible, that 
portion that exceeds $960.
  As a single taxpayer, Alice's standard deduction for 2006 is $5,150. 
Her total itemized deductions, including the $540 in miscellaneous 
deductions for her professional expenses and out-of-pocket classroom 
supplies, fall short of the standard deduction threshold. Therefore, 
not even the $540 of the original $1,500 in professional development 
expenses and out-of-pocket costs are deductible for Alice. What the 
first limitation did not block, the second one did, and Alice gets no 
deduction at all under the current law.
  The way I see it, this situation is just not fair. Also, the tax 
treatment of teacher's expenses certainly does not help solve our 
teacher retention and recruitment problems.
  To help alleviate this long-standing problem, five years ago I 
introduced the Teacher Equity for School Teachers Act of 2001. This 
legislation would have provided an unlimited tax deduction for the out-
of-pocket expenses of school teachers for classroom supplies and other 
needed materials to help a teacher do his or her job. The bill would 
have also allowed teachers to take a deduction for their professional 
development expenses.
  Rather than being available only for those who are able to itemize 
their deductions, this bill would have made these expenses ``above-the-
line'' deductions, meaning they would be deductible whether or not the 
teacher itemized on their tax return.
  Unfortunately, only a part of this bill was enacted. The 2001 tax 
bill included an above-the-line deduction for $250 for the costs of 
classroom expenses. While this was a great step in the right direction, 
it did not go nearly far enough. Moreover, the provision has now 
expired, and it is not clear when Congress is going to extend it.
  The bill I am introducing today would do three things. First, it 
would reinstate the above-the-line deduction for teachers' out-of-
pocket expenses for classroom supplies, make it permanent, and remove 
the $250 cap. Second, it would provide an unlimited deduction for the 
professional development expenses for school teachers. Finally, to 
assist in the recruitment of teachers in the most needed fields, it 
would provide an unlimited deduction for the cost of professionals in 
the fields of math, science, and technology to certify to become public 
school teachers.
  Under my bill, the Alice of my example would be allowed to deduct all 
$1,500 of her professional development and classroom supplies expenses, 
whether she itemized or not. This would help provide tax equity, and a 
measure of much-needed tax relief for an underpaid professional. It 
would also help retain current public school teachers and attract new 
ones to this vital field.
  Some might argue that such a generous deduction would be giving 
teachers preferential treatment. I disagree.
  Most organizations provide training for their employees that is fully 
deductible to the organization and non-taxable to the employee. Yet 
public teachers, who are some of the most important professionals in 
our society, are left to foot the bill for these needed costs on their 
own. Also, office supplies and instructional materials are fully 
deductible to businesses. Should not teachers who provide these similar 
materials for their classrooms be afforded the same tax treatment?
  Others may question the wisdom of my bill granting an unlimited tax 
deduction. ``Why not place a limit or a cap on the amount that may be 
deducted?'' some might ask. Again, I respectfully disagree with such 
critics. It is important to keep in mind the differences between a tax 
deduction and a tax credit. My bill calls for tax deductions, which 
reduce the amount of income that is subject to tax, and not for a 
credit, which is a dollar-for-dollar reduction in the amount of tax 
that is due.
  With a tax deduction, a public school teacher is not receiving a cash 
subsidy or reimbursement for his or her expenses. Rather, he or she is 
merely obtaining a reduction in the amount of income that is taxed. 
Thus, the most benefit the teacher would receive under my bill would be 
a 35 percent reduction in the cost of the professional development, 
supplies, or certification expenses. This means that the teacher is 
still responsible for paying for the biggest portion of these costs. I 
do not believe that our public school teachers will abuse such an 
unlimited deduction. They will use their common sense and they will 
spend the appropriate amounts for their expenses.
  Support for mathematics and science education at all levels is 
necessary to improve the global competitiveness of the United States in 
science and energy technology.
  I endorse the efforts of my some of my colleagues to encourage more 
of our best and brightest students choose these fields of study. 
Support for qualified STEM teachers (Science, Technology, Engineering, 
and Mathematics) is equally important. If we are successful in 
increasing the supply for STEM students, we will need to increase the 
supply of STEM teachers.
  This bill will provide incentives for these professionals to enter 
the teaching profession by allowing expenses in connection with teacher 
certification to be fully deductible, above-the-line, the same as the 
professional development and supplies expenses of teaching 
professionals.
  Mr. President, this bill would provide modest tax equity for teachers 
who, for too long, have been footing the bill for improving the quality 
of teaching by themselves. It is time that Congress recognized this 
unfairness and corrected it.
  I thank the Senate for the opportunity to address this issue today, 
and

[[Page 21601]]

I urge my colleagues to support this 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. 4027

       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 ``Tax Equity for School 
     Teachers Act of 2006''.

     SEC. 2. DEDUCTION FOR CERTAIN PROFESSIONAL DEVELOPMENT 
                   EXPENSES AND CLASSROOM SUPPLIES OF ELEMENTARY 
                   AND SECONDARY SCHOOL TEACHERS AND FOR CERTAIN 
                   CERTIFICATION EXPENSES OF SCIENCE, TECHNOLOGY, 
                   ENGINEERING, OR MATH TEACHERS.

       (a) Deduction Allowed Whether or Not Taxpayer Itemizes 
     Other Deductions.--Subparagraph (D) of section 62(a)(2) of 
     the Internal Revenue Code of 1986 (relating to certain 
     expenses of elementary and secondary school teachers) is 
     amended to read as follows:
       ``(D) Certain professional development expenses, classroom 
     supplies, and other expenses for elementary and secondary 
     teachers.--The sum of the deductions allowed by section 162 
     with respect to the following expenses:
       ``(i) Expenses paid or incurred by an eligible educator in 
     connection with books, supplies (other than nonathletic 
     supplies for courses of instruction in health or physical 
     education), computer equipment (including related software 
     and services) and other equipment, and supplementary 
     materials used by the eligible educator in the classroom.
       ``(ii) Expenses paid or incurred by an eligible educator 
     which constitute qualified professional development expenses.
       ``(iii) Expenses which are related to the initial 
     certification of an individual (in the individual's State 
     licensing system) as a qualified science, technology, 
     engineering or math teacher.''.
       (b) Definitions and Special Rules.--Section 62(d) of the 
     Internal Revenue Code of 1986 (relating to definitions and 
     special rules is amended by redesignating paragraph (2) as 
     paragraph (5) and by adding after paragraph (1) the following 
     new paragraphs:
       ``(2) Qualified professional development expenses.--For 
     purposes of subsection (a)(2)(D)--
       ``(A) In general.--The term `qualified professional 
     development expenses' means expenses for tuition, fees, 
     books, supplies, equipment, and transportation required for 
     the enrollment or attendance of an individual in a qualified 
     course of instruction.
       ``(B) Qualified course of instruction.--The term `qualified 
     course of instruction' means a course of instruction which--
       ``(i) is--

       ``(I) directly related to the curriculum and academic 
     subjects in which an eligible educator provides instruction,
       ``(II) designed to enhance the ability of an eligible 
     educator to understand and use State standards for the 
     academic subjects in which such teacher provides instruction, 
     or
       ``(III) designed to enable an eligible educator to meet the 
     highly qualified teacher requirements under the No Child Left 
     Behind Act of 2001,

       ``(ii) may provide instruction to an eligible educator--

       ``(I) in how to teach children with different learning 
     styles, particularly children with disabilities and children 
     with special learning needs (including children who are 
     gifted and talented), or
       ``(II) in how best to discipline children in the classroom 
     and identify early and appropriate interventions to help 
     children described in subclause (I) to learn,

       ``(iii) is tied to the ability of an eligible educator to 
     enable students to meet challenging State or local content 
     standards and student performance standards,
       ``(iv) is tied to strategies and programs that demonstrate 
     effectiveness in assisting an eligible educator in increasing 
     student academic achievement and student performance, or 
     substantially increasing the knowledge and teaching skills of 
     an eligible educator, and
       ``(v) is part of a program of professional development for 
     eligible educators which is approved and certified by the 
     appropriate local educational agency as furthering the goals 
     of the preceding clauses.
       ``(C) Local educational agency.--The term `local 
     educational agency' has the meaning given such term by 
     section 14101 of the Elementary and Secondary Education Act 
     of 1965, as in effect on the date of the enactment of this 
     subsection.
       ``(3) Qualified science, technology, engineering, or math 
     teacher.--For purposes of subsection (a)(2)(D), the term 
     `qualified science, technology, engineering, or math teacher' 
     means, with respect to a taxable year, an individual who--
       ``(A) has a bachelor's degree or other advanced degree in a 
     field related to science, technology, engineering, or math,
       ``(B) was employed as a nonteaching professional in a field 
     related to science, technology, engineering, or math for not 
     less than 3 taxable years during the 10-taxable-year period 
     ending with the taxable year,
       ``(C) is certified as a teacher of science, technology, 
     engineering, or math in the individual's State licensing 
     system for the first time during such taxable year, and
       ``(D) is employed at least part-time as a teacher of 
     science, technology, engineering, or math in an elementary or 
     secondary school during such taxable year.
       ``(4) Exemption from minimum education or new trade or 
     business exception.--For purposes of applying subsection 
     (a)(2)(D) and this subsection, the determination as to 
     whether qualified professional development expenses, or 
     expenses for the initial certification described in 
     subsection (a)(2)(D)(iii), are deductible under section 162 
     shall be made without regard to any disallowance of such a 
     deduction under such section for such expenses because such 
     expenses are necessary to meet the minimum educational 
     requirements for qualification for employment or qualify the 
     individual for a new trade or business.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.
                                 ______
                                 
      By Mr. MENENDEZ:
  S. 4028. A bill to fight criminal gangs; to the Committee on the 
Judiciary.
  Mr. MENENDEZ. Mr. President, today, all across America, organized 
criminal gangs plague our communities, destroying the lives of 
thousands of young children each and every year. Unfortunately, this 
plague is currently not being treated effectively, and as a result has 
grown in size and power in almost every State in the Nation. Indeed, 
gang violence is no longer a State and local issue that predominantly 
occurs in highly urbanized areas, but has escalated into a national 
issue that affects our country as a whole.
  In light of this, it is clear that we must recalibrate our efforts--
and in addition to our local initiatives--to comprehensively confront 
gang violence at the national level. That is why I rise today to 
introduce the Fighting Gangs and Empowering Youth Act of 2006. 
Addressing the efforts of Federal, State, and local agencies, this 
legislation would comprehensively deal with all aspects of gang 
violence, from rigorously enforcing and appropriately sentencing 
criminal acts, to preventing future gang members from being recruited 
and such crimes from occurring.
  To reduce the number of young potential recruits gangs prey upon, 
this bill would authorize funds for after-school and community-based 
programs designed to economically empower young people. Disadvantaged 
students will be given the opportunity to realize their potential, 
through tutoring, mentoring, and job training programs as well as 
college preparation classes and tuition assistance. Additionally, 
millions of dollars would be authorized to enhance and expand anti-gang 
and anti-violence programs in elementary and secondary schools, 
ensuring that students can focus solely on learning, without having to 
be concerned for their personal safety. By providing ``at-risk'' youth 
with such resources and opportunities necessary to succeed in life, 
they will be far less susceptible to join a criminal gang.
  The legislation would also expand adult and juvenile offender reentry 
demonstration projects to help with post-release and transitional 
housing, while promoting programs that hire former prisoners, and 
establish reentry planning procedures within communities. Prisoners 
with drug addictions would be forced to participate in treatment 
programs to be eligible for early release, which would be continued in 
their transition period back into society. All offenders would be 
encouraged to participate in educational initiatives such as, job 
training, GED preparation, along with a myriad of other programs. These 
initiatives are designed to provide offenders with the skills necessary 
to become legally employed when they are released from prison, which 
will reduce, hopefully significantly, their recidivism rates.
  In addition to programs focused on gang violence prevention, my 
proposal would provide law enforcement officials on every level of 
government with the resources and information they

[[Page 21602]]

need to accurately track and effectively neutralize criminal gangs. 
Specifically, this legislation would establish a program similar to the 
current Community Oriented Policing Services (COPS) program, to augment 
the number of police officers patrolling the streets of our local 
communities, and would authorize $700 million annually for it. 
Additional funds would be used not only to increase the number of 
officers combating gangs, but also to provide additional forensic 
examiners to investigate, and more attorneys to prosecute, gang crimes.
  As is true with almost all problems, a better understanding of how 
gangs operate translates into a better understanding of how best to 
counter them. That is why this legislation would authorize increased 
funding for the National Youth Gang Survey to increase the number of 
law enforcement agencies whose data is collected and included in the 
annual survey and provide up to $8 million per year to upgrade 
technology to better identify gang members and include them in the 
National Gang Database. Additionally, this legislation would expand the 
Uniform Crime Reports (UCRs) to include local gang and other crime 
statistics from the municipal level, while also requiring the Attorney 
General to distinguish those crimes committed by juveniles. The bill 
also requires consolidation and standardization of all criminal 
databases, enabling law enforcement all across this country to better 
share information.
  For those who still choose a life a crime, this proposal would 
increase the penalties proscribed for crimes committed in the 
furtherance of a gang. Gangs are dependent on committing crimes such as 
witness intimidation, illegal firearm possession, and drug trafficking, 
implementing these instruments to augment their power. Subsequently, 
when these crimes are committed in the furtherance of gang activity, 
they can be more detrimental to society than if they were committed in 
isolation. Thus, these tougher sentencing requirements for crimes 
committed in the furtherance of a gang are not only appropriate, but 
necessary to deter gang violence and shield society from its most 
dangerous and unremorseful criminals.
  This legislation would also attack one of the roots of gang 
violence--gang recruiters, who seek out young, economically 
disadvantaged, at-risk youth and pressure them to join. Currently, 
there is no law specifically forbidding gang recruitment. This 
legislation would change that--making it illegal to do so--and would 
incarcerate an offender for up to 5 years if the person being recruited 
was over the age of 18, or up to 10 years if the individual was under 
the age of 18.
  Taken together, the provisions of this bill develop a comprehensive 
approach to gang violence by focusing on prevention, deterrence, and 
enforcement. To not address all of these gang violence catalysts in 
their entirety would leave us with an incomprehensive approach that 
would do little to quell the scourge of gang violence. Therefore, I 
urge my colleagues to cosponsor the Fighting Gangs and Empowering Youth 
Act, and by doing so, give law enforcement and our communities the 
means to thoroughly and comprehensively counter the growing specter of 
gang violence that afflicts our great Nation.
  I ask unanimous consent 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. 4028

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fighting 
     Gangs and Empowering Youth Act of 2006''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

              TITLE I--PREVENTION AND ECONOMIC EMPOWERMENT

Sec. 101. Reauthorization of certain after-school programs.
Sec. 102. Reauthorization of Safe and Drug-Free Schools and Communities 
              Act.
Sec. 103. Public and assisted housing gang elimination.
Sec. 104. Demonstration grants to encourage creative approaches to gang 
              activity and after-school programs.
Sec. 105. Reauthorization of adult and juvenile offender State and 
              local reentry demonstration projects.
Sec. 106. Children of incarcerated parents and families.
Sec. 107. Encouragement of employment of former prisoners.
Sec. 108. Federal resource center for children of prisoners.
Sec. 109. Use of violent offender truth-in-sentencing grant funding for 
              demonstration project activities.
Sec. 110. Grants to study parole or post-incarceration supervision 
              violations and revocations.
Sec. 111. Improvement of the residential substance abuse treatment for 
              State prisoners program.
Sec. 112. Residential drug abuse program in Federal prisons.
Sec. 113. Removal of limitation on amount of funds available for 
              corrections education programs under the Adult Education 
              and Family Literacy Act.
Sec. 114. Technical amendment to drug-free student loans provision to 
              ensure that it applies only to offenses committed while 
              receiving Federal aid.
Sec. 115. Mentoring grants to nonprofit organizations.
Sec. 116. Clarification of authority to place prisoner in community 
              corrections.
Sec. 117. Grants to States for improved workplace and community 
              transition training for incarcerated youth offenders.
Sec. 118. Improved reentry procedures for Federal prisoners.
Sec. 119. Reauthorization of Learn and Serve America.
Sec. 120. Job Corps.
Sec. 121. Workforce Investment Act youth activities.
Sec. 122. Expansion and reauthorization of the mentoring initiative for 
              system involved youth.
Sec. 123. Strategic community planning program.
Sec. 124. Reauthorization of the Gang Resistance Education and Training 
              Projects Program and increase funding for the national 
              youth gang survey.

       TITLE II--SUPPRESSION AND COMMUNITY ANTI-GANG INITIATIVES

               Subtitle A--Gang Activity Policing Program

Sec. 201. Authority to make gang activity policing grants.
Sec. 202. Eligible activities.
Sec. 203. Preferential consideration of applications for certain 
              grants.
Sec. 204. Utilization of components.
Sec. 205. Minimum amount.
Sec. 206. Matching funds.
Sec. 207. Authorization of appropriations.

       Subtitle B--High Intensity Interstate Gang Activity Areas

Sec. 211. Designation of and assistance for ``high intensity'' 
              interstate gang activity areas.

                     Subtitle C--Additional Funding

Sec. 221. Additional resources needed by the Federal Bureau of 
              Investigation to investigate and prosecute violent 
              criminal street gangs.
Sec. 222. Grants to prosecutors and law enforcement to combat violent 
              crime and to protect witnesses and victims of crimes.
Sec. 223. Enhancement of Project Safe Neighborhoods initiative to 
              improve enforcement of criminal laws against violent 
              gangs.

             TITLE III--PUNISHMENT AND IMPROVED CRIME DATA

Sec. 301. Criminal street gangs.
Sec. 302. Violent crimes in furtherance or in aid of criminal street 
              gangs.
Sec. 303. Interstate and foreign travel or transportation in aid of 
              racketeering enterprises and criminal street gangs.
Sec. 304. Amendments relating to violent crime in areas of exclusive 
              Federal jurisdiction.
Sec. 305. Increased penalties for use of interstate commerce facilities 
              in the commission of murder-for-hire and other felony 
              crimes of violence.
Sec. 306. Increased penalties for violent crimes in aid of racketeering 
              activity.
Sec. 307. Violent crimes committed during and in relation to a drug 
              trafficking crime.
Sec. 308. Expansion of rebuttable presumption against release of 
              persons charged with firearms offenses.
Sec. 309. Statute of limitations for violent crime.
Sec. 310. Predicate crimes for authorization of interception of wire, 
              oral, and electronic communications.

[[Page 21603]]

Sec. 311. Clarification to hearsay exception for forfeiture by 
              wrongdoing.
Sec. 312. Clarification of venue for retaliation against a witness.
Sec. 313. Amendment of sentencing guidelines relating to certain gang 
              and violent crimes.
Sec. 314. Solicitation or recruitment of persons in criminal street 
              gang activity.
Sec. 315. Increased penalties for criminal use of firearms in crimes of 
              violence and drug trafficking.
Sec. 316. Possession of firearms by dangerous felons.
Sec. 317. Standardization of crime reporting.
Sec. 318. Providing additional forensic examiners.
Sec. 319. Study on expanding Federal authority for juvenile offenders.

              TITLE I--PREVENTION AND ECONOMIC EMPOWERMENT

     SEC. 101. REAUTHORIZATION OF CERTAIN AFTER-SCHOOL PROGRAMS.

       (a) 21st Century Community Learning Centers.--Section 4206 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7176) is amended--
       (1) in paragraph (5), by striking ``$2,250,000,000'' and 
     inserting ``$2,500,000,000''; and
       (2) in paragraph (6), by striking ``$2,500,000,000'' and 
     inserting ``$2,750,000,000''.
       (b) Carol M. White Physical Education Program.--Section 
     5401 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7241) is amended--
       (1) by striking ``There are'' and inserting ``(a) In 
     General.--There are''; and
       (2) by adding at the end the following:
       ``(b) Physical Education.--In addition to the amounts 
     authorized to be appropriated by subsection (a), there are 
     authorized to be appropriated $73,000,000 for each of fiscal 
     years 2007 and 2008 to carry out subpart 10.''.
       (c) Federal TRIO Programs.--Section 402A(f) of the Higher 
     Education Act of 1965 (20 U.S.C. 1070a-11(f)) is amended by 
     striking ``$700,000,000 for fiscal year 1999, and such sums 
     as may be necessary for each of the 4 succeeding fiscal 
     years'' and inserting ``$883,000,000 for fiscal year 2007 and 
     such sums as may be necessary for each of the 5 succeeding 
     fiscal years''.
       (d) GEARUP.--Section 404H of the Higher Education Act of 
     1965 (20 U.S.C. 1070a-28) is amended by striking 
     ``$200,000,000 for fiscal year 1999 and such sums as may be 
     necessary for each of the 4 succeeding fiscal years'' and 
     inserting ``$325,000,000 for fiscal year 2007 and such sums 
     as may be necessary for each of the 5 succeeding fiscal 
     years''.

     SEC. 102. REAUTHORIZATION OF SAFE AND DRUG-FREE SCHOOLS AND 
                   COMMUNITIES ACT.

       (a) Safe and Drug-Free Schools and Communities.--Section 
     4003 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7103) is amended--
       (1) in paragraph (1), by striking ``$650,000,000 for fiscal 
     year 2002'' and inserting ``$700,000,000 for fiscal year 
     2007''; and
       (2) in paragraph (2), by striking ``such sums for fiscal 
     year 2002, and'' and inserting ``$400,000,000 for fiscal year 
     2007''.
       (b) National Coordinator Initiative.--Section 4125 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7135(a)) is amended--
       (1) in subsection (a)--
       (A) by striking ``From funds made available to carry out 
     this subpart under section 4003(2), the Secretary may 
     provide'' and inserting ``From amounts made available to 
     carry out this subpart under section 4003(2) for each fiscal 
     year, the Secretary shall reserve not less than $40,000,000 
     to provide''; and
       (B) by inserting ``, gang prevention,'' after ``drug 
     prevention''; and
       (2) in subsection (b)--
       (A) in the first sentence--
       (i) by inserting ``, gang prevention,'' after ``serve as 
     drug prevention''; and
       (ii) by inserting ``, gang,'' after ``significant drug''; 
     and
       (B) in the second sentence, by inserting ``, gang,'' after 
     ``analyzing assessments of drug''.
       (c) Mentoring Program.--Section 4130(b) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7140(b)) is 
     amended--
       (1) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``The Secretary may award grants from funds 
     made available to carry out this subpart under section 
     4003(2)'' and inserting ``From amounts made available to 
     carry out this subpart under section 4003(2) for each fiscal 
     year, the Secretary shall reserve not less than $50,000,000 
     to award grants'';
       (2) in paragraph (5)(B)(i), by inserting ``elementary 
     school and middle school'' after ``serves''; and
       (3) in paragraph (5)(C)(ii)(IV), by striking ``4th'' and 
     inserting ``kindergarten''.
       (d) Anti-Gang Discretionary Grants.--Subpart 2 of part A of 
     title IV of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7131 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 4131. ANTI-GANG DISCRETIONARY GRANTS.

       ``(a) Authority To Make Grants.--From amounts made 
     available to carry out this subpart under section 4003(2) for 
     each fiscal year, the Secretary shall reserve not less than 
     $50,000,000 to award grants, on a competitive basis, to 
     nonprofit organizations to enable the nonprofit organizations 
     to establish programs to assist a public elementary school or 
     middle school in providing an innovative approach--
       ``(1) to combat gang activity in the school and the 
     community surrounding the school; and
       ``(2) to heighten awareness of, and provide tools to 
     reduce, gang violence in the school and the community 
     surrounding the school.
       ``(b) Application.--To be eligible to receive a grant under 
     this section, a nonprofit organization shall submit an 
     application to the Secretary.
       ``(c) Priority Consideration.--In awarding grants under 
     this section, the Secretary shall give priority consideration 
     to applications describing programs that target youth living 
     in a community with a crime level above the average crime 
     level of the State in which the community is located.''.

     SEC. 103. PUBLIC AND ASSISTED HOUSING GANG ELIMINATION.

       (a) Short Title.--This section may be cited as the ``Public 
     and Assisted Housing Gang Elimination Act of 2006''.
       (b) Public and Assisted Housing.--Title V of Public Law 
     100-690 is amended by adding at the end the following:

       ``Subtitle H--Public and Assisted Housing Drug Elimination

     ``SEC. 5401. AUTHORITY TO MAKE GRANTS.

       ``The Secretary of Housing and Urban Development, in 
     accordance with the provisions of this subtitle, may make 
     grants to public housing agencies (including Indian Housing 
     Authorities) and private, for-profit and nonprofit owners of 
     federally assisted low-income housing for use in eliminating 
     gang related crime.

     ``SEC. 5402. ELIGIBLE ACTIVITIES.

       ``Grants under this subtitle may be used in public housing 
     or other federally assisted low-income housing projects for--
       ``(1) the employment of security personnel;
       ``(2) reimbursement of local law enforcement agencies for 
     additional security and protective services;
       ``(3) physical improvements which are specifically designed 
     to enhance security;
       ``(4) the employment of 1 or more individuals--
       ``(A) to investigate gang related crime on or about the 
     real property comprising any public or other federally 
     assisted low-income housing project; and
       ``(B) to provide evidence relating to such crime in any 
     administrative or judicial proceeding;
       ``(5) the provision of training, communications equipment, 
     and other related equipment for use by voluntary tenant 
     patrols acting in cooperation with local law enforcement 
     officials;
       ``(6) programs designed to reduce gang activity in and 
     around public or other federally assisted low-income housing 
     projects, including encouraging teen-driven approaches to 
     gang activity prevention;
       ``(7) providing funding to nonprofit public housing 
     resident management corporations and resident councils to 
     develop security and gang prevention programs involving site 
     residents.

     ``SEC. 5403. APPLICATIONS.

       ``(a) In General.--To receive a grant under this subtitle, 
     a public housing agency or an owner of federally assisted 
     low-income housing shall submit an application to the 
     Secretary, at such time, in such manner, and accompanied by 
     such additional information as the Secretary may reasonably 
     require. Such application shall include a plan for addressing 
     the problem of gang related crime on the premises of the 
     housing administered or owned by the applicant for which the 
     application is being submitted.
       ``(b) Criteria.--Except as provided by subsections (c) and 
     (d) the Secretary shall approve applications under this 
     subtitle based exclusively on--
       ``(1) the extent of the gang related crime problem in the 
     public or federally assisted low-income housing project or 
     projects proposed for assistance;
       ``(2) the quality of the plan to address the crime problem 
     in the public or federally assisted low-income housing 
     project or projects proposed for assistance, including the 
     extent to which the plan includes initiatives that can be 
     sustained over a period of several years;
       ``(3) the capability of the applicant to carry out the 
     plan; and
       ``(4) the extent to which tenants, the local government, 
     and the local community support and participate in the design 
     and implementation of the activities proposed to be funded 
     under the application.
       ``(c) Federally Assisted Low-Income Housing.--In addition 
     to the selection criteria specified in subsection (b), the 
     Secretary may establish other criteria for the evaluation of 
     applications submitted by owners of federally assisted low-
     income housing, except that such additional criteria shall be 
     designed only to reflect--
       ``(1) relevant differences between the financial resources 
     and other characteristics of public housing authorities and 
     owners of federally assisted low-income housing; or
       ``(2) relevant differences between the problem of gang 
     related crime in public housing and the problem of gang 
     related crime in federally assisted low-income housing.

[[Page 21604]]

       ``(d) High Intensity Interstate Gang Activity Areas.--In 
     evaluating the extent of the gang related crime problem 
     pursuant to subsection (b), the Secretary may consider 
     whether housing projects proposed for assistance are located 
     in a high intensity interstate gang activity area designated 
     pursuant to section 211 of the Fighting Gangs and Empowering 
     Youth Act of 2006.

     ``SEC. 5404. DEFINITIONS.

       ``For the purposes of this subtitle, the following 
     definitions shall apply:
       ``(1) Secretary.--The term ```Secretary''' means the 
     Secretary of Housing and Urban Development.
       ``(2) Federally assisted low-income housing.--The term 
     `federally assisted low-income housing' means housing 
     assisted under--
       ``(A) section 221(d)(3), section 221(d)(4), or 236 of the 
     National Housing Act;
       ``(B) section 101 of the Housing and Urban Development Act 
     of 1965; or
       ``(C) section 8 of the United States Housing Act of 1937.

     ``SEC. 5405. IMPLEMENTATION.

       ``The Secretary shall issue regulations to implement this 
     subtitle within 180 days after the date of enactment of the 
     Fighting Gangs and Empowering Youth Act of 2006.

     ``SEC. 5406. REPORTS.

       ``The Secretary shall require grantees to provide periodic 
     reports that include the obligation and expenditure of grant 
     funds, the progress made by the grantee in implementing the 
     plan described in section 5403(a), and any change in the 
     incidence of gang related crime in projects assisted under 
     this chapter.

     ``SEC. 5407. MONITORING.

       ``The Secretary shall audit and monitor the programs funded 
     under this subtitle to ensure that assistance provided under 
     this subtitle is administered in accordance with the 
     provisions of this subtitle.

     ``SEC. 5408. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There is authorized to be appropriated 
     to carry out this subtitle $200,000,000 for each of the 
     fiscal years 2007 through 2011. Any amount appropriated under 
     this section shall remain available until expended.
       ``(b) Set-Aside for Assisted Housing.--Of any amount made 
     available in any fiscal year to carry out this subtitle, not 
     more than 6.25 percent of such amount shall be available for 
     grants for federally assisted low-income housing.''.
       (c) Conforming Amendments.--The table of contents for title 
     V of Public Law 100-690 is amended by inserting the following 
     new items:

       ``Subtitle H--Public and Assisted Housing Drug Elimination

``Sec. 5401. Authority to make grants.
``Sec. 5402. Eligible activities.
``Sec. 5403. Applications.
``Sec. 5404. Definitions.
``Sec. 5405. Implementation.
``Sec. 5406. Reports.
``Sec. 5407. Monitoring.
``Sec. 5408. Authorization of appropriations.''.

     SEC. 104. DEMONSTRATION GRANTS TO ENCOURAGE CREATIVE 
                   APPROACHES TO GANG ACTIVITY AND AFTER-SCHOOL 
                   PROGRAMS.

       (a) In General.--The Attorney General may make grants to 
     public or nonprofit private entities (including faith-based 
     organizations) for the purpose of assisting the entities in 
     demonstrating innovative approaches to combat gang activity.
       (b) Certain Approaches.--Approaches under subsection (a) 
     may include the following:
       (1) Encouraging teen-driven approaches to gang activity 
     prevention.
       (2) Educating parents to recognize signs of problems and 
     potential gang involvement in their children.
       (3) Teaching parents the importance of a nurturing family 
     and home environment to keep children out of gangs.
       (4) Facilitating communication between parents and 
     children, especially programs that have been evaluated and 
     proven effective.
       (c) Matching Funds.--
       (1) In general.--With respect to the costs of the project 
     to be carried out under subsection (a) by an applicant, a 
     grant may be made under such subsection only if the applicant 
     agrees to make available (directly or through donations from 
     public or private entities) non-Federal contributions toward 
     such costs in an amount that is not less than 25 percent of 
     such costs ($1 for each $3 of Federal funds provided in the 
     grant).
       (2) Determination of amount contributed.--Non-Federal 
     contributions required in paragraph (1) may be in cash or in 
     kind, fairly evaluated, including plant, equipment, or 
     services. Amounts provided by the Federal Government, or 
     services assisted or subsidized to any significant extent by 
     the Federal Government, may not be included in determining 
     the amount of such non-Federal contributions.
       (d) Evaluation of Projects.--The Attorney General shall 
     establish criteria for the evaluation of projects under 
     subsection (a). A grant may be made under such subsection 
     only if the applicant involved--
       (1) agrees to conduct evaluations of the project in 
     accordance with such criteria;
       (2) agrees to submit to the Attorney General such reports 
     describing the results of the evaluations as the Attorney 
     General determines to be appropriate; and
       (3) submits to the Attorney General, in the application 
     under subsection (e), a plan for conducting the evaluations.
       (e) Application for Grant.--A grant may be made under 
     subsection (a) only if an application for the grant is 
     submitted to the Attorney General and the application is in 
     such form, is made in such manner, and contains such 
     agreements, assurances, and information, including the 
     agreements under subsections (c) and (d) and the plan under 
     subsection (d)(3), as the Attorney General determines to be 
     necessary to carry out this section.
       (f) Report to Congress.--Not later than October 1, 2011, 
     the Attorney General shall submit to Congress a report 
     describing the extent to which projects under subsection (a) 
     have been successful in reducing the rate of gang activity in 
     the communities in which the projects have been carried out. 
     Such reports shall describe the various approaches used under 
     subsection (a) and the effectiveness of each of the 
     approaches.
       (g) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated $5,000,000 for each of the fiscal years 2007 
     through 2011.

     SEC. 105. REAUTHORIZATION OF ADULT AND JUVENILE OFFENDER 
                   STATE AND LOCAL REENTRY DEMONSTRATION PROJECTS.

       (a) Adult and Juvenile Offender Demonstration Projects 
     Authorized.--Section 2976(b) of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3797w(b)) is amended by 
     striking paragraphs (1) through (4) and inserting the 
     following:
       ``(1) establishing or improving the system or systems under 
     which--
       ``(A) the correctional agency of the State or local 
     government develops and carries out plans to facilitate the 
     reentry into the community of each offender in State or local 
     custody;
       ``(B) the supervision and services provided to offenders in 
     State or local custody are coordinated with the supervision 
     and services provided to offenders after reentry into the 
     community;
       ``(C) the efforts of various public and private entities to 
     provide supervision and services to offenders after reentry 
     into the community, and to family members of such offenders, 
     are coordinated; and
       ``(D) offenders awaiting reentry into the community are 
     provided with documents (such as identification papers, 
     referrals to services, medical prescriptions, job training 
     certificates, apprenticeship papers, and information on 
     obtaining public assistance) useful in achieving a successful 
     transition from prison, jail, or detention;
       ``(2) carrying out programs and initiatives by units of 
     local government to strengthen reentry services for 
     individuals released from local jails;
       ``(3) enabling jail or prison mentors of offenders to 
     remain in contact with those offenders, including through the 
     use of such technology as videoconferencing, during 
     incarceration and after reentry into the community and 
     encouraging the involvement of prison or jail mentors in the 
     reentry process;
       ``(4) providing structured post-release housing and 
     transitional housing, including group homes for recovering 
     substance abusers, through which offenders are provided 
     supervision and services immediately following reentry into 
     the community;
       ``(5) assisting offenders in securing permanent housing 
     upon release or following a stay in transitional housing;
       ``(6) providing continuity of health services (including 
     screening, assessment, and aftercare for mental health 
     services, substance abuse treatment and aftercare, and 
     treatment for contagious diseases) to offenders in custody 
     and after reentry into the community;
       ``(7) providing offenders with education, job training, 
     responsible parenting and healthy relationship skills 
     training designed specifically for addressing the needs of 
     incarcerated and transitioning fathers and mothers, English 
     as a second language programs, work experience programs, 
     self-respect and life skills training, and other skills 
     useful in achieving a successful transition from prison;
       ``(8) facilitating collaboration among corrections and 
     community corrections, technical schools, community colleges, 
     and the workforce development and employment service sectors 
     to--
       ``(A) promote, where appropriate, the employment of people 
     released from prison and jail, through efforts such as 
     educating employers about existing financial incentives, and 
     facilitate the creation of job opportunities, including 
     transitional jobs and time limited subsidized work experience 
     (where appropriate), for this population that will benefit 
     communities;
       ``(B) connect inmates to employment, including supportive 
     employment and employment services, before their release to 
     the community, to provide work supports, including 
     transportation and retention services, as appropriate, and 
     identify labor market needs to ensure that education and 
     training are appropriate; and

[[Page 21605]]

       ``(C) address barriers to employment, including licensing 
     that are not directly connected to the crime committed and 
     the risk that the ex-offender presents to the community, and 
     provide case management services as necessary to prepare 
     offenders for jobs that offer the potential for advancement 
     and growth;
       ``(9) assessing the literacy and educational needs of 
     offenders in custody and identifying and providing services 
     appropriate to meet those needs, including follow-up 
     assessments and long-term services;
       ``(10) systems under which family members of offenders are 
     involved in facilitating the successful reentry of those 
     offenders into the community, including removing obstacles to 
     the maintenance of family relationships while the offender is 
     in custody, strengthening the family's capacity to function 
     as a stable living situation during reentry where 
     appropriate, and involving family members in the planning and 
     implementation of the reentry process;
       ``(11) programs under which victims are included, on a 
     voluntary basis, in the reentry process;
       ``(12) identifying and addressing barriers to collaborating 
     with child welfare agencies in the provision of services 
     jointly to offenders in custody and to the children of such 
     offenders;
       ``(13) carrying out programs that support children of 
     incarcerated parents, including those in foster care and 
     those cared for by grandparents or other relatives, commonly 
     referred to as kinship care, including mentoring children of 
     prisoners programs;
       ``(14) carrying out programs for the entire family unit, 
     including the coordination of service delivery across 
     agencies;
       ``(15) implementing programs in correctional agencies to 
     include the collection of information regarding any dependent 
     children of an incarcerated person as part of intake 
     procedures, including the number of children, age, and 
     location or jurisdiction, and connect identified children 
     with services as appropriate and needed;
       ``(16) addressing barriers to the visitation of children 
     with an incarcerated parent, and maintenance of the parent-
     child relationship as appropriate to the safety and well-
     being of the children, such as the location of facilities in 
     remote areas, telephone costs, mail restrictions, and 
     visitation policies;
       ``(17) creating, developing, or enhancing prisoner and 
     family assessments curricula, policies, procedures, or 
     programs (including mentoring programs) to help prisoners 
     with a history or identified risk of domestic violence, 
     dating violence, sexual assault, or stalking reconnect with 
     their families and communities, as appropriate (or when it is 
     safe to do so), and become mutually respectful, nonabusive 
     parents or partners, under which particular attention is paid 
     to the safety of children affected and the confidentiality 
     concerns of victims, and efforts are coordinated with 
     existing victim service providers;
       ``(18) developing programs and activities that support 
     parent-child relationships, such as--
       ``(A) using telephone conferencing to permit incarcerated 
     parents to participate in parent-teacher conferences;
       ``(B) using videoconferencing to allow virtual visitation 
     when incarcerated persons are more than 100 miles from their 
     families;
       ``(C) the development of books on tape programs, through 
     which incarcerated parents read a book into a tape to be sent 
     to their children;
       ``(D) the establishment of family days, which provide for 
     longer visitation hours or family activities;
       ``(E) the creation of children's areas in visitation rooms 
     with parent-child activities;
       ``(F) the implementation of programs to help incarcerated 
     fathers and mothers stay connected to their children and 
     learn responsible parenting and healthy relationship skills; 
     or
       ``(G) mentoring children of prisoners program;
       ``(19) expanding family-based treatment centers that offer 
     family-based comprehensive treatment services for parents and 
     their children as a complete family unit;
       ``(20) conducting studies to determine who is returning to 
     prison or jail and which of those returning prisoners 
     represent the greatest risk to community safety;
       ``(21) developing or adopting procedures to ensure that 
     dangerous felons are not released from prison prematurely;
       ``(22) developing and implementing procedures to assist 
     relevant authorities in determining when release is 
     appropriate and in the use of data to inform the release 
     decision;
       ``(23) developing and implementing procedures to identify 
     efficiently and effectively those violators of probation, 
     parole, or post incarceration supervision who should be 
     returned to prison or jail;
       ``(24) utilizing validated assessment tools to assess the 
     risk factors of returning inmates and prioritizing services 
     based on risk;
       ``(25) facilitating and encouraging timely and complete 
     payment of restitution and fines by ex-offenders to victims 
     and the community;
       ``(26) establishing or expanding the use of reentry courts 
     and other programs to--
       ``(A) monitor offenders returning to the community;
       ``(B) provide returning offenders with--
       ``(i) drug and alcohol testing and treatment; and
       ``(ii) mental and medical health assessment and services;
       ``(C) facilitate restorative justice practices and convene 
     family or community impact panels, family impact educational 
     classes, victim impact panels, or victim impact educational 
     classes;
       ``(D) provide and coordinate the delivery of other 
     community services to offenders, including--
       ``(i) housing assistance;
       ``(ii) education;
       ``(iii) employment training;
       ``(iv) children and family support to include responsible 
     parenting and healthy relationship skill training designed 
     specifically to address the needs of incarcerated and 
     transitioning fathers and mothers;
       ``(v) conflict resolution skills training;
       ``(vi) family violence intervention programs;
       ``(vii) culturally and linguistically competent services, 
     as appropriate; and
       ``(viii) other appropriate services; and
       ``(E) establish and implement graduated sanctions and 
     incentives; and
       ``(27) providing technology and other tools to advance post 
     release supervision.''.
       (b) Juvenile Offender Demonstration Projects 
     Reauthorized.--Section 2976(c) of the Omnibus Crime Control 
     and Safe Streets Act of 1968 (42 U.S.C. 3797w(c)) is amended 
     by striking ``may be expended for'' and all that follows 
     through the period at the end and inserting ``may be expended 
     for any activity referred to in subsection (b).''.
       (c) Applications; Requirements; Priorities; Performance 
     Measurements.--Section 2976 of the Omnibus Crime Control and 
     Safe Streets Act of 1968 (42 U.S.C. 3797w) is amended--
       (1) by redesignating subsection (h) as subsection (o); and
       (2) by striking subsections (d) through (g) and inserting 
     the following:
       ``(d) Applications.--A State, unit of local government, 
     territory, or Indian tribe, or combination thereof desiring a 
     grant under this section shall submit an application to the 
     Attorney General that--
       ``(1) contains a reentry strategic plan, as referenced in 
     subsection (h), which describes the long-term strategy, and a 
     detailed implementation schedule, including the 
     jurisdiction's plans to pay for the program after the Federal 
     funding is discontinued;
       ``(2) identifies the local government role and the role of 
     governmental agencies and nonprofit organizations that will 
     be coordinated by, and that will collaborate on, the 
     applicant's prisoner reentry strategy and certifies their 
     involvement; and
       ``(3) describes the methodology and outcome measures that 
     will be used in evaluating the program.
       ``(e) Requirements.--The Attorney General may make a grant 
     to an applicant under this section only if the application--
       ``(1) reflects explicit support of the chief executive 
     officer of the State, unit of local government, territory, or 
     Indian tribe applying for a grant under this section;
       ``(2) provides extensive discussion of the role of State 
     corrections departments, community corrections agencies, 
     juvenile justice systems, or local jail systems in ensuring 
     successful reentry of ex-offenders into their communities;
       ``(3) provides extensive evidence of collaboration with 
     State and local government agencies overseeing health, 
     housing, child welfare, education, substance abuse, and 
     employment services, and local law enforcement;
       ``(4) provides a plan for analysis of the applicant's 
     existing statutory, regulatory, rules-based, and practice-
     based hurdles to a prisoner's reintegration into the 
     community that--
       ``(A) takes particular note and makes recommendations with 
     respect to laws, regulations, rules, and practices that 
     disqualify former prisoners from obtaining professional 
     licenses or other requirements necessary for certain types of 
     employment, and that hinder full civic participation;
       ``(B) identifies and makes recommendations with respect to 
     those laws, regulations, rules, or practices that are not 
     directly connected to the crime committed and the risk that 
     the ex-offender presents to the community; and
       ``(C) affords members of the public an opportunity to 
     participate in the process described in this subsection; and
       ``(5) includes the use of a State, local, territorial, or 
     tribal task force, as referenced in subsection (i), to carry 
     out the activities funded under the grant.
       ``(f) Priority Consideration.--The Attorney General shall 
     give priority to grant applications under this section that 
     best--
       ``(1) focus initiative on geographic areas with a high 
     population of ex-offenders;
       ``(2) include partnerships with nonprofit organizations;
       ``(3) provide consultations with crime victims and former 
     incarcerated prisoners and their families;
       ``(4) review the process by which the State and local 
     governments adjudicate violations of parole, probation, or 
     post incarceration

[[Page 21606]]

     supervision and consider reforms to maximize the use of 
     graduated, community-based sanctions for minor and technical 
     violations of parole, probation, or post incarceration 
     supervision;
       ``(5) establish prerelease planning procedures for 
     prisoners to ensure that a prisoner's eligibility for Federal 
     or State benefits (including Medicaid, Medicare, Social 
     Security, and Veterans benefits) upon release is established 
     prior to release, subject to any limitations in law, and to 
     ensure that prisoners are provided with referrals to 
     appropriate social and health services or are linked to 
     appropriate nonprofit organizations;
       ``(6) include an agreement that the applicant, in 
     consultation with the National Institute of Justice, will 
     modify the project design, initially and during the project, 
     in order to facilitate the evaluation of outcomes by means, 
     including (to the maximum extent feasible) random assignment 
     of offenders and ex-offenders (or entities working with such 
     persons) to program delivery and control groups; and
       ``(7) target high-risk offenders for reentry programs 
     through validated assessment tools.
       ``(g) Uses of Grant Funds.--
       ``(1) Federal share.--The Federal share of a grant received 
     under this section may not exceed 75 percent of the project 
     funded under the grant, unless the Attorney General--
       ``(A) waives, in whole or in part, the requirement of this 
     paragraph; and
       ``(B) publicly delineates the rationale for the waiver.
       ``(2) Supplement not supplant.--Federal funds received 
     under this section shall be used to supplement, not supplant, 
     non-Federal funds that would otherwise be available for the 
     activities funded under this section.
       ``(h) Reentry Strategic Plan.--
       ``(1) In general.--As a condition of receiving financial 
     assistance under this section, each applicant shall develop a 
     comprehensive strategic reentry plan that contains measurable 
     annual and 5 year performance outcomes. The plan shall have 
     as a goal to reduce the rate of recidivism of incarcerated 
     persons served with funds from this section by 50 percent 
     over a period of 5 years.
       ``(2) Coordination.--In developing reentry plans under this 
     subsection, applicants shall coordinate with communities and 
     stakeholders, including persons in the fields of public 
     safety, corrections, housing, health, education, substance 
     abuse, children and families, employment, business and 
     members of nonprofit organizations that provide reentry 
     services.
       ``(3) Measurements of progress.--Each reentry plan 
     developed under this subsection shall measure the applicant's 
     progress toward increasing public safety by reducing rates of 
     recidivism and enabling released offenders to transition 
     successfully back into their communities.
       ``(i) Reentry Task Force.--
       ``(1) In general.--As a condition of receiving financial 
     assistance under this section, each applicant shall establish 
     or empower a Reentry Task Force, or other relevant convening 
     authority, to examine ways to pool existing resources and 
     funding streams to promote lower recidivism rates for 
     returning ex-offenders and to minimize the harmful effects of 
     incarceration on families and communities by collecting data 
     and best practices in offender reentry from demonstration 
     grantees and other agencies and organizations, and to provide 
     a plan, as described in subsection (e)(4).
       ``(2) Membership.--The task force or other authority shall 
     be comprised of relevant--
       ``(A) State, tribal, territorial, or local leaders;
       ``(B) agencies;
       ``(C) service providers;
       ``(D) nonprofit organizations; and
       ``(E) stakeholders.
       ``(j) Strategic Performance Outcomes.--
       ``(1) In general.--Each applicant shall identify in their 
     reentry strategic plan, as referenced in subsection (h), 
     specific performance outcomes related to the long-term goals 
     of increasing public safety and reducing recidivism.
       ``(2) Performance outcomes.--The performance outcomes 
     identified under paragraph (1) shall include, with respect to 
     offenders released back into the community--
       ``(A) reduction in recommitment rates;
       ``(B) reduction in crime;
       ``(C) increased employment and education opportunities;
       ``(D) reduction in violations of conditions of supervised 
     release;
       ``(E) increased child support;
       ``(F) increased housing opportunities;
       ``(G) reduction in drug and alcohol abuse; and
       ``(H) increased participation in substance abuse and mental 
     health services.
       ``(3) Other outcomes.--States may include in their reentry 
     strategic plan other performance outcomes that increase the 
     success rates of offenders who transition from prison.
       ``(4) Coordination.--Applicants should coordinate with 
     communities and stakeholders about the selection of 
     performance outcomes identified by the applicant, and should 
     consult with the Department of Justice for assistance with 
     data collection and measurement activities.
       ``(5) Report.--Each grantee under this section shall submit 
     an annual report to the Department of Justice that--
       ``(A) identifies the grantee's progress toward achieving 
     its strategic performance outcomes; and
       ``(B) describes other activities conducted by the grantee 
     to increase the success rates of the reentry population, such 
     as programs that foster effective risk management and 
     treatment programming, offender accountability, and community 
     and victim participation.
       ``(k) Performance Measurement.--
       ``(1) In general.--The Department of Justice, in 
     consultation with the grantees, shall--
       ``(A) identify primary and secondary sources of information 
     to support the measurement of the performance indicators 
     identified under this section;
       ``(B) identify sources and methods of data collection in 
     support of performance measurement required under this 
     section;
       ``(C) provide to all grantees technical assistance and 
     training on performance measures and data collection for 
     purposes of this section; and
       ``(D) coordinate with the Substance Abuse and Mental Health 
     Services Administration on strategic performance outcome 
     measures and data collection for purposes of this section 
     relating to substance abuse and mental health.
       ``(2) Coordination.--The Department of Justice shall 
     coordinate with other Federal agencies to identify national 
     and other sources of information to support grantee's 
     performance measurement.
       ``(3) Standards for analysis.--Any statistical analysis of 
     population data conducted pursuant to this section shall be 
     conducted in accordance with the Federal Register Notice 
     dated October 30, 1997, relating to classification standards.
       ``(l) Future Eligibility.--To be eligible to receive a 
     grant under this section for fiscal years after the first 
     receipt of such a grant, a grantee shall submit to the 
     Attorney General such information as is necessary to 
     demonstrate that--
       ``(1) the grantee has adopted a reentry plan that reflects 
     input from nonprofit organizations;
       ``(2) the grantee's reentry plan includes performance 
     measures to assess the grantee's progress toward increasing 
     public safety by reducing by 10 percent over the 2-year 
     period the rate at which individuals released from prison who 
     participate in the reentry system supported by Federal funds 
     are recommitted to prison; and
       ``(3) the grantee will coordinate with the Department of 
     Justice, nonprofit organizations, and other experts regarding 
     the selection and implementation of the performance measures 
     described in subsection (k).
       ``(m) National Adult and Juvenile Offender Reentry Resource 
     Center.--
       ``(1) Authority.--The Attorney General may, using amounts 
     made available to carry out this subsection, make a grant to 
     an eligible organization to provide for the establishment of 
     a National Adult and Juvenile Offender Reentry Resource 
     Center.
       ``(2) Eligible organization.--An organization eligible for 
     the grant under paragraph (1) is any national nonprofit 
     organization approved by the Federal task force established 
     under subsection (o) that provides technical assistance and 
     training to, and has special expertise and broad, national-
     level experience in offender reentry programs, training, and 
     research.
       ``(3) Use of funds.--The organization receiving the grant 
     shall establish a National Adult and Juvenile Offender 
     Reentry Resource Center to--
       ``(A) provide education, training, and technical assistance 
     for States, tribes, territories, local governments, service 
     providers, nonprofit organizations, and corrections 
     institutions;
       ``(B) collect data and best practices in offender reentry 
     from demonstration grantees and others agencies and 
     organizations;
       ``(C) develop and disseminate evaluation tools, mechanisms, 
     and measures to better assess and document coalition 
     performance measures and outcomes;
       ``(D) disseminate knowledge to States and other relevant 
     entities about best practices, policy standards, and research 
     findings;
       ``(E) develop and implement procedures to assist relevant 
     authorities in determining when release is appropriate and in 
     the use of data to inform the release decision;
       ``(F) develop and implement procedures to identify 
     efficiently and effectively those violators of probation, 
     parole, or post incarceration supervision who should be 
     returned to prison and those who should receive other 
     penalties based on defined, graduated sanctions;
       ``(G) collaborate with the Federal task force established 
     under subsection (o) and the Federal Resource Center for 
     Children of Prisoners;
       ``(H) develop a national research agenda; and
       ``(I) bridge the gap between research and practice by 
     translating knowledge from research into practical 
     information.

[[Page 21607]]

       ``(4) Limit.--Of amounts made available to carry out this 
     section, not more than 4 percent shall be available to carry 
     out this subsection.
       ``(n) Administration.--Of amounts made available to carry 
     out this section--
       ``(1) not more than 2 percent shall be available for 
     administrative expenses in carrying out this section; and
       ``(2) not more than 2 percent shall be made available to 
     the National Institute of Justice to evaluate the 
     effectiveness of the demonstration projects funded under 
     section 2976 of the Omnibus Crime and Control and Safe 
     Streets Act of 1968 (42 U.S.C. 3797w) as amended by this 
     section, using a methodology that--
       ``(A) includes, to the maximum extent feasible, random 
     assignment of offenders or ex-offenders (or entities working 
     with such persons) to program delivery and control groups; 
     and
       ``(B) generates evidence on which reentry approaches and 
     strategies are most effective.
       ``(o) Task Force on Federal Programs and Activities 
     Relating to Reentry of Offenders.--
       ``(1) Task force required.--The Attorney General, in 
     consultation with the Secretary of Housing and Urban 
     Development, the Secretary of Labor, the Secretary of 
     Education, the Secretary of Health and Human Services, the 
     Secretary of Veterans Affairs, the Secretary of Agriculture, 
     and the heads of such other elements of the Federal 
     Government as the Attorney General considers appropriate, and 
     in collaboration with stakeholders, service providers, 
     nonprofit organizations, States, tribes, territories, and 
     local governments, shall establish an interagency task force 
     on Federal programs and activities relating to the reentry of 
     offenders into the community.
       ``(2) Duties.--The task force required by paragraph (1) 
     shall--
       ``(A) identify such programs and activities that may be 
     resulting in overlapping or duplication of services, the 
     scope of such overlapping or duplication, and the 
     relationship of such overlapping and duplication to public 
     safety, public health, and effectiveness and efficiency;
       ``(B) identify methods to improve collaboration and 
     coordination of such programs and activities;
       ``(C) identify areas of responsibility in which improved 
     collaboration and coordination of such programs and 
     activities would result in increased effectiveness or 
     efficiency;
       ``(D) develop innovative interagency or intergovernmental 
     programs, activities, or procedures that would improve 
     outcomes of reentering offenders and children of offenders;
       ``(E) develop methods for increasing regular communication 
     that would increase interagency program effectiveness;
       ``(F) identify areas of research that can be coordinated 
     across agencies with an emphasis on applying science-based 
     practices to support, treatment, and intervention programs 
     for reentering offenders;
       ``(G) identify funding areas that should be coordinated 
     across agencies and any gaps in funding; and
       ``(H) in collaboration with the National Adult and Juvenile 
     Offender Reentry Resources Center identify successful 
     programs currently operating and collect best practices in 
     offender reentry from demonstration grantees and other 
     agencies and organizations, determine the extent to which 
     such programs and practices can be replicated, and make 
     information on such programs and practices available to 
     States, localities, nonprofit organizations, and others.
       ``(3) Report.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this Act, the task force established under 
     paragraph (1) shall submit a report, including 
     recommendations, to Congress on barriers to reentry. The task 
     force shall provide for public input in preparing the report.
       ``(B) Contents.--The report required by subparagraph (A) 
     shall identify Federal and other barriers to successful 
     reentry of offenders into the community and analyze the 
     effects of such barriers on offenders and on children and 
     other family members of offenders, including barriers 
     relating to--
       ``(i) child support obligations and procedures;
       ``(ii) Social Security benefits, including barriers in 
     timely restoration of suspended disability benefits 
     immediately upon release, Veterans benefits, food stamps, and 
     other forms of Federal public assistance;
       ``(iii) Medicaid and Medicare laws, regulations, guidelines 
     or procedures, including barriers in timely restoration of 
     benefits caused by delay in reinstatement of suspended Social 
     Security disability benefits;
       ``(iv) education programs, financial assistance, and full 
     civic participation;
       ``(v) TANF program funding criteria and other welfare 
     benefits;
       ``(vi) sustainable employment and career advancement, that 
     are not directly connected to the crime committed and the 
     risk that the ex-offender presents to the community;
       ``(vii) laws, regulations, rules, and practices that 
     restrict Federal employment licensure and participation in 
     Federal contracting programs;
       ``(viii) admissions to and evictions from Federal housing 
     programs, including--

       ``(I) examining the number and characteristics of ex-
     offenders who are evicted from or denied eligibility for 
     Federal housing programs;
       ``(II) the effect of eligibility denials and evictions on 
     homelessness, family stability and family reunification;
       ``(III) the extent to which arrest records are the basis 
     for denying applications;
       ``(IV) the implications of considering misdemeanors 5 or 
     more years old and felonies 10 or more years old and the 
     appropriateness of taking into account rehabilitation and 
     other mitigating factors; and
       ``(V) the feasibility of using probationary or conditional 
     eligibility based on participation in a supervised 
     rehabilitation program or other appropriate social services;

       ``(ix) reentry procedures, case planning, and transitions 
     of persons from the custody of the Federal Bureau of Prisons 
     to a Federal parole or probation program or community 
     corrections;
       ``(x) laws, regulations, rules, and practices that may 
     require a parolee to return to the same county that the 
     parolee was living in prior to his or her arrest, and the 
     potential for changing such laws, regulations, rules, and 
     practices so that the parolee may change his or her location 
     upon release, and not settle in the same location with 
     persons who may be a negative influence; and
       ``(xi) prerelease planning procedures for prisoners to 
     ensure that a prisoner's eligibility for Federal or State 
     benefits (including Medicaid, Medicare, Social Security and 
     Veterans benefits) upon release is established prior to 
     release, subject to any limitations in law; and to ensure 
     that prisoners are provided with referrals to appropriate 
     social and health services or are linked to appropriate 
     nonprofit organizations.
       ``(4) Annual reports.--On an annual basis, the task force 
     required by paragraph (1) shall submit to Congress a report 
     on the activities of the task force, including specific 
     recommendations of the task force on matters referred to in 
     paragraph (2). Any statistical analysis of population data 
     pursuant to this section shall be conducted in accordance 
     with the Federal Register Notice dated October 30, 1997, 
     relating to classification standards.''.
       (d) Authorization of Appropriations.--Section 2976 of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3797w) is amended in subsection (o)(1), as so redesignated by 
     subsection (c) of this section, by striking ``and $16,000,000 
     for fiscal year 2005'' and inserting ``$100,000,000 for 
     fiscal year 2007, and $100,000,000 for fiscal year 2008''.
       (e) Grant Authorization.--Section 2976(a) of the Omnibus 
     Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3797w(a)) is amended by striking ``States, Territories'' and 
     all that follows through the period at the end and inserting 
     ``States, local governments, territories, or Indian tribes, 
     or any combination thereof, in partnership with stakeholders, 
     service providers, and nonprofit organizations, for purpose 
     of establishing adult and juvenile offender reentry 
     demonstration projects.''.

     SEC. 106. CHILDREN OF INCARCERATED PARENTS AND FAMILIES.

       The Secretary of Health and Human Services may--
       (1) review, and make available to States, a report on any 
     recommendations regarding the role of State child protective 
     services at the time of the arrest of a person; and
       (2) by regulation, establish such services as the Secretary 
     determines necessary for the preservation of families that 
     have been impacted by the incarceration of a family member 
     with special attention given to the impact on children.

     SEC. 107. ENCOURAGEMENT OF EMPLOYMENT OF FORMER PRISONERS.

       The Secretary of Labor shall take such steps as are 
     necessary to implement a program, including the Employment 
     and Training Administration, to educate employers and 1-stop 
     center workforce development providers about existing 
     incentives, including the Federal bonding program and tax 
     credits for hiring former Federal, State, or local prisoners.

     SEC. 108. FEDERAL RESOURCE CENTER FOR CHILDREN OF PRISONERS.

       There are authorized to be appropriated to the Secretary of 
     Health and Human Services for fiscal years 2007 and 2008, 
     such sums as may be necessary for the continuing activities 
     of the Federal Resource Center for Children of Prisoners, 
     including conducting a review of the policies and practices 
     of State and Federal corrections agencies to support parent-
     child relationships.

     SEC. 109. USE OF VIOLENT OFFENDER TRUTH-IN-SENTENCING GRANT 
                   FUNDING FOR DEMONSTRATION PROJECT ACTIVITIES.

       Section 20102(a) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 13702(a)) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(4) to carry out any activity referred to in subsections 
     (b) and (c) of section 2976 of the

[[Page 21608]]

     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3797w (b), (c)).''.

     SEC. 110. GRANTS TO STUDY PAROLE OR POST-INCARCERATION 
                   SUPERVISION VIOLATIONS AND REVOCATIONS.

       (a) Grants Authorized.--From amounts made available to 
     carry out this section, the Attorney General may award grants 
     to States to study and to improve the collection of data with 
     respect to individuals whose parole or post incarceration 
     supervision is revoked and which such individuals represent 
     the greatest risk to community safety.
       (b) Application.--As a condition of receiving a grant under 
     this section, a State shall--
       (1) certify that the State has, or intends to establish, a 
     program that collects comprehensive and reliable data with 
     respect to individuals described in subsection (a), including 
     data on--
       (A) the number and type of parole or post incarceration 
     supervision violations that occur with the State;
       (B) the reasons for parole or post-incarceration 
     supervision revocation;
       (C) the underlying behavior that led to the revocation; and
       (D) the term of imprisonment or other penalty that is 
     imposed for the violation; and
       (2) provide the data described in paragraph (1) to the 
     Bureau of Justice Statistics, in a form prescribed by the 
     Bureau. Any statistical analysis of population data pursuant 
     to this section shall be conducted in accordance with the 
     Federal Register Notice dated October 30, 1997, relating to 
     classification standards.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each fiscal years 2007 and 2008.

     SEC. 111. IMPROVEMENT OF THE RESIDENTIAL SUBSTANCE ABUSE 
                   TREATMENT FOR STATE PRISONERS PROGRAM.

       (a) Definition.--Section 1902 of the Omnibus Crime Control 
     and Safe Streets Act of 1968 (42 U.S.C. 3796ff-1) is amended 
     by--
       (1) redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (2) inserting after subsection (b) the following:
       ``(c) Residential Substance Abuse Treatment.--In this 
     section, the term `residential substance abuse treatment'--
       ``(1) means a course of individual and group activities and 
     treatment, lasting at least 6 months, in residential 
     treatment facilities set apart from the general prison 
     population; and
       ``(2) can include the use of pharmacotherapies where 
     appropriate, that may extend beyond the 6-month period.''.
       (b) Requirement for After Care Component.--Subsection (d) 
     of section 1902 of the Omnibus Crime Control and Safe Streets 
     Act of 1968 (42 U.S.C. 3796ff-1), as so redesignated by 
     subsection (a) of this section, is amended--
       (1) in the subsection heading, by striking ``Eligibility 
     for Preference With After Care Component'' and inserting 
     ``Requirement for After Care Component'';
       (2) by amending paragraph (1) to read as follows:
       ``(1) To be eligible for funding under this part, a State 
     shall ensure that individuals who participate in the 
     substance abuse treatment program established or implemented 
     with assistance provided under this part will be provided 
     with after care services.''; and
       (3) by adding at the end the following new paragraph:
       ``(4) After care services required by this subsection shall 
     be funded by the funding provided in this part.''.

     SEC. 112. RESIDENTIAL DRUG ABUSE PROGRAM IN FEDERAL PRISONS.

       Section 3621(e)(5)(A) of title 18, United States Code, is 
     amended by striking ``means a course of'' and all that 
     follows through the semicolon at the end and inserting the 
     following: ``means a course of individual and group 
     activities and treatment, lasting at least 6 months, in 
     residential treatment facilities set apart from the general 
     prison population, which may include the use of 
     pharmacotherapies, where appropriate, that may extend beyond 
     the 6-month period;''.

     SEC. 113. REMOVAL OF LIMITATION ON AMOUNT OF FUNDS AVAILABLE 
                   FOR CORRECTIONS EDUCATION PROGRAMS UNDER THE 
                   ADULT EDUCATION AND FAMILY LITERACY ACT.

       (a) In General.--Section 222(a)(1) of the Adult Education 
     and Family Literacy Act (20 U.S.C. 9222(a)(1)) is amended by 
     striking ``, of which not more than 10 percent of the 82.5 
     percent shall be available to carry out section 225''.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Education shall 
     submit to Congress a report--
       (1) on the use of literacy funds to correctional 
     institutions as defined in section 225(d)(2) of the Adult 
     Education and Family Literacy Act (20 U.S.C. 9224); and
       (2) that specifies the amount of literacy funds that are 
     provided to each category of correctional institution in each 
     State, and identify whether funds are being sufficiently 
     allocated among the various types of institutions.

     SEC. 114. TECHNICAL AMENDMENT TO DRUG-FREE STUDENT LOANS 
                   PROVISION TO ENSURE THAT IT APPLIES ONLY TO 
                   OFFENSES COMMITTED WHILE RECEIVING FEDERAL AID.

       Section 484(r)(1) of the Higher Education Act of 1965 (20 
     U.S.C. 1091(r)(1)) is amended by striking ``A student'' and 
     all that follows through ``table:'' and inserting the 
     following: ``A student who is convicted of any offense under 
     any Federal or State law involving the possession or sale of 
     a controlled substance for conduct that occurred during a 
     period of enrollment for which the student was receiving any 
     grant, loan, or work assistance under this title shall not be 
     eligible to receive any grant, loan, or work assistance under 
     this title from the date of that conviction for the period of 
     time specified in the following table:''.

     SEC. 115. MENTORING GRANTS TO NONPROFIT ORGANIZATIONS.

       (a) Authority to Make Grants.--From amounts made available 
     to carry out this section, the Attorney General of the United 
     States, in collaboration with the Secretary of Labor and the 
     Secretary of Housing and Urban Development, shall make grants 
     to nonprofit organizations for the purpose of providing 
     mentoring and other transitional services essential to 
     reintegrating ex-offenders.
       (b) Use of Funds.--Grant funds awarded under subsection (a) 
     may be used for--
       (1) mentoring adult and juvenile offenders during 
     incarceration, through transition back to the community, and 
     post release; and
       (2) transitional services to assist in the reintegration of 
     ex-offenders into the community.
       (c) Application; Priority Consideration.--To be eligible to 
     receive a grant under this section, a nonprofit organization 
     shall submit an application to the Attorney General based on 
     criteria developed by the Attorney General in consultation 
     with the Secretary of Labor and the Secretary of Housing and 
     Urban Development. Applicants will be given priority 
     consideration if the application--
       (1) includes a plan to implement activities that have been 
     demonstrated effective in facilitating the successful reentry 
     of offenders; and
       (2) provides for an independent evaluation that includes, 
     to the maximum extent feasible, random assignment of 
     offenders or ex-offenders to program delivery and control 
     groups.
       (d) Strategic Performance Outcomes.--The Attorney General 
     shall require each applicant under this section to identify 
     specific performance outcomes related to the long-term goal 
     of stabilizing communities by reducing recidivism and re-
     integrating ex-offenders into society.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Department of Justice to carry out 
     this section $25,000,000 for each of fiscal years 2007 and 
     2008.

     SEC. 116. CLARIFICATION OF AUTHORITY TO PLACE PRISONER IN 
                   COMMUNITY CORRECTIONS.

       Section 3624(c) of title 18, United States Code, is amended 
     to read as follows:
       ``(c) Prerelease Custody.--
       ``(1) In general.--The Bureau of Prisons shall, to the 
     extent practicable, assure that a prisoner serving a term of 
     imprisonment spends 20 percent of the final portion of the 
     term, not to exceed 12 months, to be served under conditions 
     that will afford the prisoner a reasonable opportunity to 
     adjust to and prepare for the prisoner's reentry into the 
     community. Such conditions may include a community 
     correctional facility.
       ``(2) Authority.--This subsection authorizes the Bureau of 
     Prisons to place a prisoner in home confinement for the last 
     10 percent of the term to be served, not to exceed 6 months.
       ``(3) Assistance.--The United States Probation System 
     shall, to the extent practicable, offer assistance to a 
     prisoner during such prerelease custody.
       ``(4) No limitations.--Nothing in this subsection shall be 
     construed to limit or restrict the authority of the Bureau of 
     Prisons granted under section 3621 of this title.''.

     SEC. 117. GRANTS TO STATES FOR IMPROVED WORKPLACE AND 
                   COMMUNITY TRANSITION TRAINING FOR INCARCERATED 
                   YOUTH OFFENDERS.

       Section 821 of the Higher Education Amendments of 1998 (20 
     U.S.C. 1151) is amended to read as follows:

     ``SEC. 821. GRANTS TO STATES FOR IMPROVED WORKPLACE AND 
                   COMMUNITY TRANSITION TRAINING FOR INCARCERATED 
                   YOUTH OFFENDERS.

       ``(a) Definition.--For purposes of this section, the term 
     `youth offender' means a male or female offender under the 
     age of 35, who is incarcerated in a State prison, including a 
     prerelease facility.
       ``(b) Grant Program.--The Secretary of Education (in this 
     section referred to as the `Secretary')--
       ``(1) shall establish a program in accordance with this 
     section to provide grants to the State correctional education 
     agencies in the States, from allocations for the States under 
     subsection (h), to assist and encourage youth offenders to 
     acquire functional literacy, life, and job skills, through--
       ``(A) the pursuit of a postsecondary education certificate, 
     or an associate or bachelor's degree while in prison; and

[[Page 21609]]

       ``(B) employment counseling and other related services 
     which start during incarceration and end not later than 1 
     year after release from confinement; and
       ``(2) may establish such performance objectives and 
     reporting requirements for State correctional education 
     agencies receiving grants under this section as the Secretary 
     determines are necessary to assess the effectiveness of the 
     program under this section.
       ``(c) Application.--To be eligible for a grant under this 
     section, a State correctional education agency shall submit 
     to the Secretary a proposal for a youth offender program 
     that--
       ``(1) identifies the scope of the problem, including the 
     number of youth offenders in need of postsecondary education 
     and vocational training;
       ``(2) lists the accredited public or private educational 
     institution or institutions that will provide postsecondary 
     educational services;
       ``(3) lists the cooperating agencies, public and private, 
     or businesses that will provide related services, such as 
     counseling in the areas of career development, substance 
     abuse, health, and parenting skills;
       ``(4) describes specific performance objectives and 
     evaluation methods (in addition to, and consistent with, any 
     objectives established by the Secretary under subsection 
     (b)(2)) that the State correctional education agency will use 
     in carrying out its proposal, including--
       ``(A) specific and quantified student outcome measures that 
     are referenced to outcomes for non-program participants with 
     similar demographic characteristics; and
       ``(B) measures, consistent with the data elements and 
     definitions described in subsection (d)(1)(A), of--
       ``(i) program completion, including an explicit definition 
     of what constitutes a program completion within the proposal;
       ``(ii) knowledge and skill attainment, including 
     specification of instruments that will measure knowledge and 
     skill attainment;
       ``(iii) attainment of employment both prior to and 
     subsequent to release;
       ``(iv) success in employment indicated by job retention and 
     advancement; and
       ``(v) recidivism, including such subindicators as time 
     before subsequent offense and severity of offense;
       ``(5) describes how the proposed programs are to be 
     integrated with existing State correctional education 
     programs (such as adult education, graduate education degree 
     programs, and vocational training) and State industry 
     programs;
       ``(6) describes how the proposed programs will have 
     considered or will utilize technology to deliver the services 
     under this section; and
       ``(7) describes how students will be selected so that only 
     youth offenders eligible under subsection (e) will be 
     enrolled in postsecondary programs.
       ``(d) Program Requirements.--Each State correctional 
     education agency receiving a grant under this section shall--
       ``(1) annually report to the Secretary regarding--
       ``(A) the results of the evaluations conducted using data 
     elements and definitions provided by the Secretary for the 
     use of State correctional education programs;
       ``(B) any objectives or requirements established by the 
     Secretary pursuant to subsection (b)(2); and
       ``(C) the additional performance objectives and evaluation 
     methods contained in the proposal described in subsection 
     (c)(4), as necessary to document the attainment of project 
     performance objectives; and
       ``(2) expend on each participating eligible student for an 
     academic year, not more than the maximum Federal Pell Grant 
     funded under section 401 of the Higher Education Act of 1965 
     for such academic year, which shall be used for--
       ``(A) tuition, books, and essential materials; and
       ``(B) related services such as career development, 
     substance abuse counseling, parenting skills training, and 
     health education.
       ``(e) Student Eligibility.--A youth offender shall be 
     eligible for participation in a program receiving a grant 
     under this section if the youth offender--
       ``(1) is eligible to be released within 5 years (including 
     a youth offender who is eligible for parole within such 
     time); and
       ``(2) is 35 years of age or younger.
       ``(f) Length of Participation.--A State correctional 
     education agency receiving a grant under this section shall 
     provide educational and related services to each 
     participating youth offender for a period not to exceed 5 
     years, 1 year of which may be devoted to study in a graduate 
     education degree program or to remedial education services 
     for students who have obtained a secondary school diploma or 
     its recognized equivalent. Educational and related services 
     shall start during the period of incarceration in prison or 
     prerelease, and the related services may continue for not 
     more than 1 year after release from confinement.
       ``(g) Education Delivery Systems.--State correctional 
     education agencies and cooperating institutions shall, to the 
     extent practicable, use high-tech applications in developing 
     programs to meet the requirements and goals of this section.
       ``(h) Allocation of Funds.--From the funds appropriated 
     pursuant to subsection (i) for each fiscal year, the 
     Secretary shall allot to each State an amount that bears the 
     same relationship to such funds as the total number of 
     students eligible under subsection (e) in such State bears to 
     the total number of such students in all States.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $30,000,000 for fiscal years 2007 and 2008.''.

     SEC. 118. IMPROVED REENTRY PROCEDURES FOR FEDERAL PRISONERS.

       (a) General Reentry Procedures.--The Department of Justice 
     shall take such steps as are necessary to modify existing 
     procedures and policies to enhance case planning and to 
     improve the transition of persons from the custody of the 
     Bureau of Prisons to the community, including placement of 
     such individuals in community corrections facilities.
       (b) Procedures Regarding Benefits.--
       (1) In general.--The Bureau of Prisons shall establish 
     reentry planning procedures within the Release Preparation 
     Program that include providing Federal inmates with 
     information in the following areas:
       (A) Health and nutrition.
       (B) Employment.
       (C) Personal finance and consumer skills.
       (D) Information and community resources.
       (E) Release requirements and procedures.
       (F) Personal growth and development.
       (2) Format.--Any written information that the Bureau of 
     Prisons provides to inmates for reentry planning purposes 
     shall use common terminology and language. The Bureau of 
     Prisons shall provide the United States Probation and 
     Pretrial Services System with relevant information on the 
     medical care needs and the mental health treatment needs of 
     releasing inmates. The United States Probation and Pretrial 
     Services System shall take this information into account when 
     developing supervision plans in an effort to address the 
     medical care and mental health care needs of these 
     individuals. The Bureau of Prisons shall provide inmates with 
     a sufficient amount of all necessary medications upon release 
     from custody.

     SEC. 119. REAUTHORIZATION OF LEARN AND SERVE AMERICA.

       Section 501(a)(1)(A) of the National and Community Service 
     Act of 1990 (42 U.S.C. 12681(a)(1)(A)) is amended by striking 
     ``fiscal year 1994 and such sums as may be necessary for each 
     of the fiscal years 1995 through 1996'' and inserting 
     ``fiscal year 2007 and each of the 5 succeeding fiscal 
     years''.

     SEC. 120. JOB CORPS.

       Section 161 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2901) is amended by striking ``such sums as may be 
     necessary'' and inserting ``$1,800,000,000 (of which 
     $300,000,000 shall be designated to create additional Job 
     Corps centers, especially in high gang activity areas)''.

     SEC. 121. WORKFORCE INVESTMENT ACT YOUTH ACTIVITIES.

       Section 137(a) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2872(a)) is amended by striking ``such sums as may be 
     necessary'' and inserting ``$1,000,000''.

     SEC. 122. EXPANSION AND REAUTHORIZATION OF THE MENTORING 
                   INITIATIVE FOR SYSTEM INVOLVED YOUTH.

       (a) Expansion.--Section 261(a) of the Juvenile Justice and 
     Delinquency Prevention Act of 2002 (42 U.S.C. 5665) is 
     amended by inserting at the end the following: ``The 
     Administrator shall expand the number of sites receiving such 
     grants from 4 to 12.''.
       (b) Reauthorization.--Section 12213(c) of the Juvenile 
     Justice and Delinquency Prevention Act of 2002 (42 U.S.C. 
     5671) is amended by striking subsection (c) and inserting the 
     following:
       ``(c) Authorization of Appropriations for Part E.--There 
     are authorized to be appropriated to carry out part E, and 
     authorized to remain available until expended, $4,800,000 for 
     fiscal years 2007, 2008, 2009, 2010, and 2011.''.

     SEC. 123. STRATEGIC COMMUNITY PLANNING PROGRAM.

       Section 30701 of the Violent Crime Control Act of 1994 (42 
     U.S.C. 13801) is amended by inserting the following:

     ``SEC. 30701. GRANT AUTHORITY.

       ``(a) Grants.--
       ``(1) In general.--In order to prevent gang activity by 
     juveniles, the Attorney General may award grants on a 
     competitive basis to eligible local entities to pay for the 
     Federal share of assisting eligible communities to develop 
     and carry out programs that target at-risk youth and juvenile 
     offenders aged 11 to 19, who--
       ``(A) have dropped out of school;
       ``(B) have come into contact with the juvenile justice 
     system; or
       ``(C) are at risk of dropping out of school or coming into 
     contact with the juvenile justice system.
       ``(2) Limitation.--No local entity shall receive a grant of 
     less than $250,000 in a fiscal year. Amounts made available 
     through such grants shall remain available until expended.
       ``(b) Program Requirements.--
       ``(1) Programs.--A local entity that receives funds under 
     this section shall develop or expand community programs in 
     eligible communities that are designed to target at-

[[Page 21610]]

     risk youths and juvenile offenders through prevention, early 
     intervention, and graduated sanctions.
       ``(2) Optional activities.--A local entity that receives 
     funds under this section may develop a variety of programs to 
     serve the comprehensive needs of at-risk youth and juvenile 
     offenders, including--
       ``(A) homework assistance and after-school programs, 
     including educational, social, and athletic activities;
       ``(B) mentoring programs;
       ``(C) family counseling; and
       ``(D) parental training programs.
       ``(c) Eligible Community Identification.--The Attorney 
     General through regulation shall define the criteria 
     necessary to qualify as an eligible community as defined in 
     subsection (g)(3).
       ``(d) Grant Eligibility.--To be eligible to receive a grant 
     under this section, a local entity shall--
       ``(1) identify an eligible community to be assisted;
       ``(2) develop a community planning process that includes--
       ``(A) parents and family members;
       ``(B) local school officials;
       ``(C) teachers employed at schools within the eligible 
     community;
       ``(D) local public officials;
       ``(E) law enforcement officers and officials;
       ``(F) ministers and faith-based organizations;
       ``(G) public housing authorities;
       ``(H) public housing resident organization members, where 
     applicable; and
       ``(I) public and private nonprofit organizations that 
     provide education, child protective services, or other human 
     services to low-income, at-risk youth and juvenile offenders, 
     and their families; and
       ``(3) develop a concentrated strategy for implementation of 
     the community planning process developed under paragraph (2) 
     that targets clusters of at-risk youth and juvenile offenders 
     in the eligible community.
       ``(e) Applications.--
       ``(1) Application required.--To be eligible to receive a 
     grant under this section, a local entity shall submit an 
     application to the Attorney General at such time, in such 
     manner, and accompanied by such information, as the Attorney 
     General may reasonably require, and obtain approval of such 
     application.
       ``(2) Contents of application.--Each application submitted 
     under paragraph (1) shall--
       ``(A) contain a comprehensive plan for the program that is 
     designed to improve the academic and social development of 
     at-risk youths and juvenile offenders in the eligible 
     community;
       ``(B) provide evidence of support for accomplishing the 
     objectives of such plan from--
       ``(i) community leaders;
       ``(ii) a school district;
       ``(iii) local officials; and
       ``(iv) other organizations that the local entity determines 
     to be appropriate;
       ``(C) provide an assurance that the local entity will use 
     grant funds received under this subsection to implement the 
     program requirements listed in subsection (b);
       ``(D) include an estimate of the number of children in the 
     eligible community expected to be served under the program;
       ``(E) provide an assurance that the local entity shall 
     prepare and submit to the Attorney General an annual report 
     regarding any program conducted under this section; and
       ``(F) provide an assurance that the local entity will 
     maintain separate accounting records for the program.
       ``(3) Priority.--In awarding grants to carry out programs 
     under this section, the Attorney General shall give priority 
     to local entities which submit applications that demonstrate 
     the greatest effort in generating local support for the 
     programs.
       ``(f) Federal Share.--
       ``(1) Payments.--The Attorney General shall, subject to the 
     availability of appropriations, pay to each local entity 
     having an application approved under subsection (e) the 
     Federal share of the costs of developing and carrying out 
     programs referred to in subsection (b).
       ``(2) Federal share.--The Federal share of such costs shall 
     be 70 percent.
       ``(3) Non-federal share.--The non-Federal share of such 
     costs may be in cash or in kind, fairly evaluated, including 
     personnel, plant, equipment, and services.
       ``(g) Definitions.--For purposes of this section--
       ``(1) the term `Attorney General' means the Attorney 
     General of the United States;
       ``(2) the term `local entity' means--
       ``(A) a local educational agency, or
       ``(B) a community-based organization as defined in section 
     1471(3) of the Elementary and Secondary Education Act of 
     1965;
       ``(3) the term `eligible community' means an area which 
     meets criteria with respect to significant poverty and 
     significant violent crime, and such additional criteria, as 
     the Attorney General may by regulation require.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this section--
       ``(1) $10,000,000 for fiscal year 2007;
       ``(2) $11,000,000 for fiscal year 2008;
       ``(3) $12,000,000 for fiscal year 2009;
       ``(4) $13,000,000 for fiscal year 2010; and
       ``(5) $14,000,000 for fiscal year 2011.''.

     SEC. 124. REAUTHORIZATION OF THE GANG RESISTANCE EDUCATION 
                   AND TRAINING PROJECTS PROGRAM AND INCREASE 
                   FUNDING FOR THE NATIONAL YOUTH GANG SURVEY.

       Section 32401 of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 13921) is amended--
       (1) in subsection (b), by striking paragraphs (1) through 
     (6) and inserting the following:
       ``(A) $21,000,000 for fiscal year 2007;
       ``(B) $21,000,000 for fiscal year 2008;
       ``(C) $21,000,000 for fiscal year 2009;
       ``(D) $21,000,000 for fiscal year 2010; and
       ``(E) $21,000,000 for fiscal year 2011;''; and
       (2) adding at the end the following:
       ``(c) Use of Funds.--Up to $1,000,000 annually of such 
     funds authorized under this Section shall be used to increase 
     the number of samples collected by the National Youth Gang 
     Center for its annual National Youth Gang Survey.''.

       TITLE II--SUPPRESSION AND COMMUNITY ANTI-GANG INITIATIVES

               Subtitle A--Gang Activity Policing Program

     SEC. 201. AUTHORITY TO MAKE GANG ACTIVITY POLICING GRANTS.

       The Attorney General may make grants to States, units of 
     local government, Indian tribal governments, other public and 
     private entities, and multi-jurisdictional or regional 
     consortia thereof to increase police presence, to expand and 
     improve cooperative efforts between law enforcement agencies 
     and members of the community to address gang activity 
     problems, and otherwise to enhance public safety.

     SEC. 202. ELIGIBLE ACTIVITIES.

       Grants made under this subtitle may include programs, 
     projects, and other activities to--
       (1) rehire law enforcement officers who have been laid off 
     as a result of State and local budget reductions for 
     deployment to reduce gang activity;
       (2) hire and train new, additional career law enforcement 
     officers for deployment to reduce gang activity across the 
     Nation;
       (3) procure equipment, technology, or support systems, or 
     pay overtime, to increase the number of officers deployed in 
     gang activity policing;
       (4) award grants to pay for officers hired to perform 
     intelligence in reducing gang activity;
       (5) increase the number of law enforcement officers 
     involved in activities that are focused on interaction with 
     members of the community on proactive gang control and 
     prevention by redeploying officers to such activities;
       (6) establish and implement innovative programs to increase 
     and enhance proactive crime control and gang prevention 
     programs involving law enforcement officers and young persons 
     in the community;
       (7) establish school-based partnerships between local law 
     enforcement agencies and local school systems by using school 
     resource officers who operate in and around elementary and 
     secondary schools to combat gangs;
       (8) develop new technologies, including interoperable 
     communications technologies, modernized criminal record 
     technology, and forensic technology, to assist State and 
     local law enforcement agencies in reducing gang activity and 
     to train law enforcement officers to use such technologies; 
     and
       (9) support the purchase by a law enforcement agency of no 
     more than 1 service weapon per officer, upon hiring for 
     deployment in gang activity policing or, if necessary, upon 
     existing officers' initial redeployment to gang activity 
     policing.

     SEC. 203. PREFERENTIAL CONSIDERATION OF APPLICATIONS FOR 
                   CERTAIN GRANTS.

       In awarding grants under this subtitle, the Attorney 
     General may give preferential consideration, where feasible, 
     to applications--
       (1) for hiring and rehiring additional career law 
     enforcement officers that involve a non-Federal contribution 
     exceeding the 25 percent minimum under this subtitle; and
       (2) that are located in a high intensity interstate gang 
     activity area designated pursuant to section 211.

     SEC. 204. UTILIZATION OF COMPONENTS.

       The Attorney General may utilize any component or 
     components of the Department of Justice in carrying out this 
     subtitle.

     SEC. 205. MINIMUM AMOUNT.

       Unless all applications submitted by any State and grantee 
     within the State pursuant to this subtitle have been funded, 
     each qualifying State, together with grantees within the 
     State, shall receive in each fiscal year pursuant to this 
     subtitle not less than 0.5 percent of the total amount 
     appropriated in the fiscal year for grants pursuant to that 
     section. In this section, ``qualifying State'' means any 
     State which has submitted an application for a grant, or in 
     which an eligible entity has submitted an application for a 
     grant, which meets the requirements prescribed by the 
     Attorney General and the conditions set out in this subtitle.

     SEC. 206. MATCHING FUNDS.

       The portion of the costs of a program, project, or activity 
     provided by this subtitle may not exceed 75 percent, unless 
     the Attorney General waives, wholly or in part, the 
     requirement under this section of a non-Federal contribution 
     to the costs of a program, project, or activity. In relation 
     to a grant for

[[Page 21611]]

     a period exceeding 1 year for hiring or rehiring career law 
     enforcement officers, the Federal share shall decrease from 
     year to year for up to 5 years, looking toward the 
     continuation of the increased hiring level using State or 
     local sources of funding following the conclusion of Federal 
     support.

     SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     subtitle $700,000,000 for each of the fiscal years 2007 
     through 2011. Any amount appropriated under this section 
     shall remain available until expended.

       Subtitle B--High Intensity Interstate Gang Activity Areas

     SEC. 211. DESIGNATION OF AND ASSISTANCE FOR ``HIGH 
                   INTENSITY'' INTERSTATE GANG ACTIVITY AREAS.

       (a) Definitions.--In this section the following definitions 
     shall apply:
       (1) Governor.--The term ``Governor'' means a Governor of a 
     State or the Mayor of the District of Columbia.
       (2) High intensity interstate gang activity area.--The term 
     ``high intensity interstate gang activity area'' means an 
     area within a State that is designated as a high intensity 
     interstate gang activity area under subsection (b)(1).
       (3) State.--The term ``State'' means a State of the United 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States. The term 
     ``State'' shall include an ``Indian tribe'', as defined by 
     section 102 of the Federally Recognized Indian Tribe List Act 
     of 1994 (25 U.S.C. 479a).
       (b) High Intensity Interstate Gang Activity Areas.--
       (1) Designation.--The Attorney General, after consultation 
     with the Governors of appropriate States, may designate as 
     high intensity interstate gang activity areas, specific areas 
     that are located within 1 or more States. To the extent that 
     the goals of a high intensity interstate gang activity area 
     (HIIGAA) overlap with the goals of a high intensity drug 
     trafficking area (HIDTA), the Attorney General may merge the 
     2 areas to serve as a dual-purpose entity. The Attorney 
     General may not make the final designation of a high 
     intensity interstate gang activity area without first 
     consulting with and receiving comment from local elected 
     officials representing communities within the State of the 
     proposed designation.
       (2) Assistance.--In order to provide Federal assistance to 
     high intensity interstate gang activity areas, the Attorney 
     General shall--
       (A) establish criminal street gang enforcement teams, 
     consisting of Federal, State, and local law enforcement 
     authorities, for the coordinated investigation, disruption, 
     apprehension, and prosecution of criminal street gangs and 
     offenders in each high intensity interstate gang activity 
     area;
       (B) direct the reassignment or detailing from any Federal 
     department or agency (subject to the approval of the head of 
     that department or agency, in the case of a department or 
     agency other than the Department of Justice) of personnel to 
     each criminal street gang enforcement team; and
       (C) provide all necessary funding for the operation of the 
     criminal street gang enforcement team in each high intensity 
     interstate gang activity area.
       (3) Composition of criminal street gang enforcement team.--
     The team established pursuant to paragraph (2)(A) shall 
     consist of agents and officers, where feasible, from--
       (A) the Bureau of Alcohol, Tobacco, Firearms, and 
     Explosives;
       (B) the Department of Homeland Security;
       (C) the Department of Housing and Urban Development;
       (D) the Drug Enforcement Administration;
       (E) the Internal Revenue Service;
       (F) the Federal Bureau of Investigation;
       (G) the United States Marshal's Service;
       (H) the United States Postal Service;
       (I) State and local law enforcement; and
       (J) Federal, State and local prosecutors.
       (4) Criteria for designation.--In considering an area for 
     designation as a high intensity interstate gang activity area 
     under this section, the Attorney General shall consider--
       (A) the current and predicted levels of gang crime activity 
     in the area;
       (B) the extent to which violent crime in the area appears 
     to be related to criminal street gang activity, such as drug 
     trafficking, murder, robbery, assaults, carjacking, arson, 
     kidnapping, extortion, and other criminal activity;
       (C) the extent to which State and local law enforcement 
     agencies have committed resources to--
       (i) respond to the gang crime problem; and
       (ii) participate in a gang enforcement team;
       (D) the extent to which a significant increase in the 
     allocation of Federal resources would enhance local response 
     to the gang crime activities in the area; and
       (E) any other criteria that the Attorney General considers 
     to be appropriate.
       (c) Authorization of Appropriations.--
       (1) In general.--There are authorized to be appropriated 
     $100,000,000 for each of the fiscal years 2007 to 2011 to 
     carry out this section.
       (2) Use of funds.--Of amounts made available under 
     paragraph (1) in each fiscal year--
       (A) 50 percent shall be used to carry out subsection 
     (b)(2); and
       (B) 50 percent shall be used to make grants available for 
     community-based programs to provide crime prevention, 
     research, and intervention services that are designed for 
     gang members and at-risk youth in areas designated pursuant 
     to this section as high intensity interstate gang activity 
     areas.
       (3) Reporting requirements.--By February 1st of each year, 
     the Attorney General shall provide a report to Congress which 
     describes, for each designated high intensity interstate gang 
     activity area--
       (A) the specific long-term and short-term goals and 
     objectives;
       (B) the measurements used to evaluate the performance of 
     the high intensity interstate gang activity area in achieving 
     the long-term and short-term goals;
       (C) the age, composition, and membership of ``gangs'';
       (D) the number and nature of crimes committed by ``gangs''; 
     and
       (E) the definition of the term ``gang'' used to compile 
     this report.

                     Subtitle C--Additional Funding

     SEC. 221. ADDITIONAL RESOURCES NEEDED BY THE FEDERAL BUREAU 
                   OF INVESTIGATION TO INVESTIGATE AND PROSECUTE 
                   VIOLENT CRIMINAL STREET GANGS.

       (a) Responsibilities of Attorney General.--The Attorney 
     General is authorized to require the Federal Bureau of 
     Investigation to--
       (1) increase funding for the Safe Streets Program; and
       (2) support the criminal street gang enforcement teams, 
     established under section 211(b), in designated high 
     intensity interstate gang activity areas.
       (b) Authorization of Appropriations.--
       (1) In general.--In addition to amounts otherwise 
     authorized, there are authorized to be appropriated to the 
     Attorney General $5,000,000 for each of the fiscal years 2007 
     through 2011 to carry out the Safe Streets Program.
       (2) Availability.--Any amounts appropriated pursuant to 
     paragraph (1) shall remain available until expended.

     SEC. 222. GRANTS TO PROSECUTORS AND LAW ENFORCEMENT TO COMBAT 
                   VIOLENT CRIME AND TO PROTECT WITNESSES AND 
                   VICTIMS OF CRIMES.

       (a) In General.--Section 31702 of the Violent Crime Control 
     and Law Enforcement Act of 1994 (42 U.S.C. 13862) is 
     amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(5) to hire additional prosecutors to--
       ``(A) allow more cases to be prosecuted; and
       ``(B) reduce backlogs;
       ``(6) to fund technology, equipment, and training for 
     prosecutors and law enforcement in order to increase accurate 
     identification of gang members and violent offenders, and to 
     maintain databases with such information to facilitate 
     coordination among law enforcement and prosecutors; and
       ``(7) to create and expand witness and victim protection 
     programs to prevent threats, intimidation, and retaliation 
     against victims of, and witnesses to, violent crimes.''.
       (b) Authorization of Appropriations.--Section 31707 of the 
     Violent Crime Control and Law Enforcement Act of 1994 (42 
     U.S.C. 13867) is amended to read as follows:

     ``SEC. 31707. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     $20,000,000 for each of the fiscal years 2007 through 2011 to 
     carry out this subtitle.
       ``(b) Use of Funds.--Of the amounts made available under 
     subsection (a), in each fiscal year 60 percent shall be used 
     to carry out section 31702(7) to create and expand witness 
     and victim protection programs to prevent threats, 
     intimidation, and retaliation against victims of, and 
     witnesses to, violent crimes.''.

     SEC. 223. ENHANCEMENT OF PROJECT SAFE NEIGHBORHOODS 
                   INITIATIVE TO IMPROVE ENFORCEMENT OF CRIMINAL 
                   LAWS AGAINST VIOLENT GANGS.

       (a) In General.--While maintaining the focus of Project 
     Safe Neighborhoods as a comprehensive, strategic approach to 
     reducing gun violence in America, the Attorney General is 
     authorized to expand the Project Safe Neighborhoods program 
     to require each United States attorney to--
       (1) identify, investigate, and prosecute significant 
     criminal street gangs operating within their district;
       (2) coordinate the identification, investigation, and 
     prosecution of criminal street gangs among Federal, State, 
     and local law enforcement agencies; and
       (3) coordinate and establish criminal street gang 
     enforcement teams, established under section 110(b), in high 
     intensity interstate gang activity areas within a United 
     States attorney's district.
       (b) Additional Staff for Project Safe Neighborhoods.--
       (1) In general.--The Attorney General may hire Assistant 
     United States attorneys, non-attorney coordinators, or 
     paralegals to carry out the provisions of this section.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated

[[Page 21612]]

     $7,500,000 for each of the fiscal years 2007 through 2011 to 
     carry out this section.

             TITLE III--PUNISHMENT AND IMPROVED CRIME DATA

     SEC. 301. CRIMINAL STREET GANGS.

       (a) Criminal Street Gang Prosecutions.--Section 521 of 
     title 18, United States Code, is amended to read as follows:

     ``Sec. 521. Criminal street gang prosecutions

       ``(a) Definitions.--As used in this chapter:
       ``(1) Criminal street gang.--The term `criminal street 
     gang' means a formal or informal group, club, organization, 
     or association of 3 or more individuals, who individually, 
     jointly, or in combination, have committed or attempted to 
     commit for the direct or indirect benefit of, at the 
     direction of, in furtherance of, or in association with the 
     group, club organization, or association at least 2 separate 
     acts, each of which is a predicate gang crime, 1 of which 
     occurs after the date of enactment of the Gang Prevention and 
     Effective Deterrence Act of 2004 and the last of which occurs 
     not later than 10 years (excluding any period of 
     imprisonment) after the commission of a prior predicate gang 
     crime, and 1 predicate gang crime is a crime of violence or 
     involves manufacturing, importing, distributing, possessing 
     with intent to distribute, or otherwise dealing in a 
     controlled substance or listed chemicals (as those terms are 
     defined in section 102 of the Controlled Substances Act (21 
     U.S.C. 802)) provided that the activities of the criminal 
     street gang affect interstate or foreign commerce, or involve 
     the use of any facility of, or travel in, interstate or 
     foreign commerce.
       ``(2) Predicate gang crime.--The term `predicate gang 
     crime' means--
       ``(A) any act, threat, conspiracy, or attempted act, which 
     is chargeable under Federal or State law and punishable by 
     imprisonment for more than 1 year involving--
       ``(i) murder;
       ``(ii) manslaughter;
       ``(iii) maiming;
       ``(iv) assault with a dangerous weapon;
       ``(v) assault resulting in serious bodily injury;
       ``(vi) gambling;
       ``(vii) kidnapping;
       ``(viii) robbery;
       ``(ix) extortion;
       ``(x) arson;
       ``(xi) obstruction of justice;
       ``(xii) tampering with or retaliating against a witness, 
     victim, or informant;
       ``(xiii) burglary;
       ``(xiv) sexual assault (which means any offense that 
     involves conduct that would violate chapter 109A if the 
     conduct occurred in the special maritime and territorial 
     jurisdiction);
       ``(xv) carjacking; or
       ``(xvi) manufacturing, importing, distributing, possessing 
     with intent to distribute, or otherwise dealing in a 
     controlled substance or listed chemicals (as those terms are 
     defined in section 102 of the Controlled Substances Act (21 
     U.S.C. 802));
       ``(B) any act punishable by imprisonment for more than 1 
     year under--
       ``(i) section 844 (relating to explosive materials);
       ``(ii) section 922(g)(1) (where the underlying conviction 
     is a violent felony (as defined in section 924(e)(2)(B) of 
     this title) or is a serious drug offense (as defined in 
     section 924(e)(2)(A) of this title));
       ``(iii) subsection (a)(2), (b), (c), (g), or (h) of section 
     924 (relating to receipt, possession, and transfer of 
     firearms);
       ``(iv) sections 1028 and 1029 (relating to fraud and 
     related activity in connection with identification documents 
     or access devices);
       ``(v) section 1503 (relating to obstruction of justice);
       ``(vi) section 1510 (relating to obstruction of criminal 
     investigations);
       ``(vii) section 1512 (relating to tampering with a witness, 
     victim, or informant), or section 1513 (relating to 
     retaliating against a witness, victim, or informant);
       ``(viii) section 1708 (relating to theft of stolen mail 
     matter);
       ``(ix) section 1951 (relating to interference with 
     commerce, robbery or extortion);
       ``(x) section 1952 (relating to racketeering);
       ``(xi) section 1956 (relating to the laundering of monetary 
     instruments);
       ``(xii) section 1957 (relating to engaging in monetary 
     transactions in property derived from specified unlawful 
     activity);
       ``(xiii) section 1958 (relating to use of interstate 
     commerce facilities in the commission of murder-for-hire); or
       ``(xiv) sections 2312 through 2315 (relating to interstate 
     transportation of stolen motor vehicles or stolen property); 
     or
       ``(C) any act involving the Immigration and Nationality 
     Act, section 274 (relating to bringing in and harboring 
     certain aliens), section 277 (relating to aiding or assisting 
     certain aliens to enter the United States), or section 278 
     (relating to importation of alien for immoral purpose).
       ``(3) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     any commonwealth, territory, or possession of the United 
     States.
       ``(b) Participation in Criminal Street Gangs.--It shall be 
     unlawful--
       ``(1) to commit, or conspire or attempt to commit a 
     predicate crime--
       ``(A) in furtherance or in aid of the activities of a 
     criminal street gang;
       ``(B) for the purpose of gaining entrance to or maintaining 
     or increasing position in such a gang; or
       ``(C) for the direct or indirect benefit of the criminal 
     street gang, or in association with the criminal street gang; 
     or
       ``(2) to employ, use, command, counsel, persuade, induce, 
     entice, or coerce any individual to commit, cause to commit, 
     or facilitate the commission of, a predicate gang crime--
       ``(A) in furtherance or in aid of the activities of a 
     criminal street gang;
       ``(B) for the purpose of gaining entrance to or maintaining 
     or increasing position in such a gang; or
       ``(C) for the direct or indirect benefit or the criminal 
     street gang, or in association with the criminal street gang.
       ``(c) Penalties.--Whoever violates paragraph (1) or (2) of 
     subsection (b)--
       ``(1) shall be fined under this title, imprisoned for not 
     more than 30 years, or both; and
       ``(2) if the violation is based on a predicate gang crime 
     for which the maximum penalty includes life imprisonment, 
     shall be fined under this title, imprisoned for any term of 
     years or for life, or both.
       ``(d) Forfeiture.--
       ``(1) In general.--The court, in imposing sentence on a 
     person who is convicted of an offense under this section, 
     shall order that the defendant forfeit to the United States--
       ``(A) any property, real or personal, constituting or 
     traceable to gross proceeds obtained from such offense; and
       ``(B) any property used or intended to be used, in any 
     manner or part, to commit or to facilitate the commission of 
     such violation.
       ``(2) Criminal procedures.--The procedures set forth in 
     section 413 of the Controlled Substances Act (21 U.S.C. 853), 
     other than subsection (d) of that section, and in rule 32.2 
     of the Federal Rules of Criminal Procedure, shall apply to 
     all stages of a criminal forfeiture proceeding under this 
     section.
       ``(3) Civil procedures.--Property subject to forfeiture 
     under paragraph (1) may be forfeited in a civil case pursuant 
     to the procedures set forth in chapter 46 of this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 26 of title 18, United States Code, is 
     amended to read as follows:

``521. Criminal street gang prosecutions.''.

     SEC. 302. VIOLENT CRIMES IN FURTHERANCE OR IN AID OF CRIMINAL 
                   STREET GANGS.

       (a) Violent Crimes and Criminal Street Gang Recruitment.--
     Chapter 26 of title 18, United States Code, as amended by 
     section 301, is amended by adding at the end the following:

     ``Sec. 523. Violent crimes in furtherance or in aid of a 
       criminal street gang

       ``(a) Any person who, for the purpose of gaining entrance 
     to or maintaining or increasing position in, or in 
     furtherance or in aid of, or for the direct or indirect 
     benefit of, or in association with a criminal street gang, or 
     as consideration for the receipt of, or as consideration for 
     a promise or agreement to pay, anything of pecuniary value to 
     or from a criminal street gang, murders, kidnaps, sexually 
     assaults (which means any offense that involved conduct that 
     would violate chapter 109A if the conduct occurred in the 
     special maritime and territorial jurisdiction), maims, 
     assaults with a dangerous weapon, commits assault resulting 
     in serious bodily injury upon, commits any other crime of 
     violence or threatens to commit a crime of violence against 
     any individual, or attempts or conspires to do so, shall be 
     punished, in addition and consecutive to the punishment 
     provided for any other violation of this chapter--
       ``(1) for murder, by imprisonment for any term of years or 
     for life, a fine under this title, or both;
       ``(2) for kidnapping or sexual assault, by imprisonment for 
     any term of years or for life, a fine under this title, or 
     both;
       ``(3) for maiming, by imprisonment for any term of years or 
     for life, a fine under this title, or both;
       ``(4) for assault with a dangerous weapon or assault 
     resulting in serious bodily injury, by imprisonment for not 
     more than 30 years, a fine under this title, or both;
       ``(5) for any other crime of violence, by imprisonment for 
     not more than 20 years, a fine under this title, or both;
       ``(6) for threatening to commit a crime of violence 
     specified in paragraphs (1) through (4), by imprisonment for 
     not more than 10 years, a fine under this title, or both;
       ``(7) for attempting or conspiring to commit murder, 
     kidnapping, maiming, or sexual assault, by imprisonment for 
     not more than 30 years, a fine under this title, or both; and
       ``(8) for attempting or conspiring to commit a crime 
     involving assault with a dangerous weapon or assault 
     resulting in serious bodily injury, by imprisonment for not 
     more than 20 years, a fine under this title, or both.
       ``(b) Definition.--In this section, the term `criminal 
     street gang' has the same meaning as in section 521 of this 
     title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 26 of title 18, United States Code, is 
     amended by adding at the end the following:


[[Page 21613]]


``522. Recruitment of persons to participate in a criminal street gang.
``523. Violent crimes in furtherance of a criminal street gang.''.

     SEC. 303. INTERSTATE AND FOREIGN TRAVEL OR TRANSPORTATION IN 
                   AID OF RACKETEERING ENTERPRISES AND CRIMINAL 
                   STREET GANGS.

       Section 1952 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``and thereafter performs or attempts to 
     perform'' and inserting ``and thereafter performs, or 
     attempts or conspires to perform''; and
       (B) by striking ``5 years'' and inserting ``10 years'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Whoever travels in interstate or foreign commerce or 
     uses the mail or any facility in interstate or foreign 
     commerce, with the intent to kill, assault, bribe, force, 
     intimidate, or threaten any person, to delay or influence the 
     testimony of, or prevent from testifying, a witness in a 
     State criminal proceeding and thereafter performs, or 
     attempts or conspires to perform, an act described in this 
     subsection, shall--
       ``(1) be fined under this title, imprisoned for any term of 
     years, or both; and
       ``(2) if death results, imprisoned for any term of years or 
     for life.''; and
       (4) in subsection (c)(2), as redesignated under 
     subparagraph (B), by inserting ``intimidation of, or 
     retaliation against, a witness, victim, juror, or 
     informant,'' after ``extortion, bribery,''.

     SEC. 304. AMENDMENTS RELATING TO VIOLENT CRIME IN AREAS OF 
                   EXCLUSIVE FEDERAL JURISDICTION.

       (a) Assault Within Maritime and Territorial Jurisdiction of 
     United States.--Section 113(a)(3) of title 18, United States 
     Code, is amended by striking ``with intent to do bodily harm, 
     and without just cause or excuse,''.
       (b) Manslaughter.--Section 1112(b) of title 18, United 
     States Code, is amended by--
       (1) striking ``ten years'' and inserting ``20 years''; and
       (2) striking ``six years'' and inserting ``10 years''.
       (c) Offenses Committed Within Indian Country.--Section 
     1153(a) of title 18, United States Code, is amended by 
     inserting ``an offense for which the maximum statutory term 
     of imprisonment under section 1363 is greater than 5 years,'' 
     after ``a felony under chapter 109A,''.
       (d) Racketeer Influenced and Corrupt Organizations.--
     Section 1961(1) of title 18, United States Code, is amended--
       (1) in subparagraph (A), by inserting ``, or would have 
     been so chargeable if the act or threat (other than lawful 
     forms of gambling) had not been committed in Indian country 
     (as defined in section 1151) or in any other area of 
     exclusive Federal jurisdiction,'' after ``chargeable under 
     State law''; and
       (2) in subparagraph (B), by inserting ``section 1123 
     (relating to multiple interstate murder),'' after ``section 
     1084 (relating to the transmission of wagering 
     information),''.
       (e) Carjacking.--Section 2119 of title 18, United States 
     Code, is amended by striking ``, with the intent to cause 
     death or serious bodily harm''.
       (f) Clarification of Illegal Gun Transfers To Commit Drug 
     Trafficking Crime or Crimes of Violence.--Section 924(h) of 
     title 18, United States Code, is amended to read as follows:
       ``(h) Illegal Transfers.--Whoever knowingly transfers a 
     firearm, knowing that the firearm will be used to commit, or 
     possessed in furtherance of, a crime of violence (as defined 
     in subsection (c)(3)) or drug trafficking crime (as defined 
     in subsection (c)(2)), shall be imprisoned for not more than 
     10 years, fined under this title, or both.''.
       (g) Amendment of Special Sentencing Provision.--Section 
     3582(d) of title 18, United States Code, is amended--
       (1) by striking ``chapter 95 (racketeering) or 96 
     (racketeer influenced and corrupt organizations) of this 
     title'' and inserting ``section 521 (criminal street gangs) 
     or 522 (violent crimes in furtherance or in aid of criminal 
     street gangs), in chapter 95 (racketeering) or 96 (racketeer 
     influenced and corrupt organizations),''; and
       (2) by inserting ``a criminal street gang or'' before ``an 
     illegal enterprise''.
       (h) Conforming Amendment Relating to Orders for 
     Restitution.--Section 3663(c)(4) of title 18, United States 
     Code, is amended by striking ``chapter 46 or chapter 96 of 
     this title'' and inserting ``section 521, under chapter 46 or 
     96,''.
       (i) Special Provision for Indian Country.--No person 
     subject to the criminal jurisdiction of an Indian tribal 
     government shall be subject to section 3559(e) of title 18, 
     United States Code, for any offense for which Federal 
     jurisdiction is solely predicated on Indian country (as 
     defined in section 1151 of such title 18) and which occurs 
     within the boundaries of such Indian country unless the 
     governing body of such Indian tribe elects to subject the 
     persons under the criminal jurisdiction of the tribe to 
     section 3559(e) of such title 18.

     SEC. 305. INCREASED PENALTIES FOR USE OF INTERSTATE COMMERCE 
                   FACILITIES IN THE COMMISSION OF MURDER-FOR-HIRE 
                   AND OTHER FELONY CRIMES OF VIOLENCE.

       Section 1958 of title 18, United States Code, is amended--
       (1) by striking the header and inserting the following:

     ``Sec. 1958. Use of interstate commerce facilities in the 
       commission of murder-for-hire and other felony crimes of 
       violence'';

       (2) in subsection (a), by striking ``Whoever'' through 
     ``conspires to do so'' and inserting the following:
       ``(a) Any person who travels in or causes another 
     (including the intended victim) to travel in interstate or 
     foreign commerce, or uses or causes another (including the 
     intended victim) to use the mail or any facility in 
     interstate or foreign commerce, with intent that a murder or 
     other felony crime of violence be committed in violation of 
     the laws of any State or the United States as consideration 
     for the receipt of, or as consideration for a promise or 
     agreement to pay, anything of pecuniary value, or who 
     conspires to do so--''.
       (3) striking ``ten'' and inserting ``20''; and
       (4) by striking ``twenty'' and inserting ``30''.

     SEC. 306. INCREASED PENALTIES FOR VIOLENT CRIMES IN AID OF 
                   RACKETEERING ACTIVITY.

       Section 1959(a) of title 18, United States Code, is 
     amended--
       (1) by striking ``Whoever'' through ``punished'' and 
     inserting the following:
       ``(a) Any person who, as consideration for the receipt of, 
     or as consideration for a promise or agreement to pay, 
     anything of pecuniary value from an enterprise engaged in 
     racketeering activity, or for the purpose of gaining entrance 
     to or maintaining or increasing position in an enterprise 
     engaged in racketeering activity, or in furtherance or in aid 
     of an enterprise engaged in racketeering activity, murders, 
     kidnaps, sexually assaults (which means any offense that 
     involved conduct that would violate chapter 109A if the 
     conduct occurred in the special maritime and territorial 
     jurisdiction), maims, assaults with a dangerous weapon, 
     commits assault resulting in serious bodily injury upon, or 
     threatens to commit a crime of violence against any 
     individual in violation of the laws of any State or the 
     United States, or attempts or conspires to do so, shall be 
     punished, in addition and consecutive to the punishment 
     provided for any other violation of this chapter--''; and
       (2) by striking paragraphs (2) through (6) and inserting 
     the following:
       ``(2) for kidnapping or sexual assault, by imprisonment for 
     any term of years or for life, a fine under this title, or 
     both;
       ``(3) for maiming, by imprisonment for any term of years or 
     for life, a fine under this title, or both;
       ``(4) for assault with a dangerous weapon or assault 
     resulting in serious bodily injury, by imprisonment for not 
     more than 30 years, a fine under this title, or both;
       ``(5) for threatening to commit a crime of violence, by 
     imprisonment for not more than 10 years, a fine under this 
     title, or both;
       ``(6) for attempting or conspiring to commit murder, 
     kidnapping, maiming, or sexual assault, by imprisonment for 
     not more than 30 years, a fine under this title, or both; and
       ``(7) for attempting or conspiring to commit assault with a 
     dangerous weapon or assault which would result in serious 
     bodily injury, by imprisonment for not more than 20 years, a 
     fine under this title, or both.''.

     SEC. 307. VIOLENT CRIMES COMMITTED DURING AND IN RELATION TO 
                   A DRUG TRAFFICKING CRIME.

       (a) In General.--Part D of the Controlled Substances Act 
     (21 U.S.C. 841 et seq.) is amended by adding at the end the 
     following:


``VIOLENT CRIMES COMMITTED DURING AND IN RELATION TO A DRUG TRAFFICKING 
                                 CRIME

       ``Sec. 424.  (a) In General.--Any person who, during and in 
     relation to any drug trafficking crime, murders, kidnaps, 
     sexually assaults (which means any offense that involved 
     conduct that would violate chapter 109A if the conduct 
     occurred in the special maritime and territorial 
     jurisdiction), maims, assaults with a dangerous weapon, 
     commits assault resulting in serious bodily injury upon, 
     commits any other crime of violence or threatens to commit a 
     crime of violence against, any individual, or attempts or 
     conspires to do so, shall be punished, in addition and 
     consecutive to the punishment provided for the drug 
     trafficking crime--
       ``(1) in the case of murder, by imprisonment for any term 
     of years or for life, a fine under title 18, United States 
     Code, or both;
       ``(2) in the case of kidnapping or sexual assault by 
     imprisonment for any term of years or for life, a fine under 
     such title 18, or both;
       ``(3) in the case of maiming, by imprisonment for any term 
     of years or for life, a fine under such title 18, or both;
       ``(4) in the case of assault with a dangerous weapon or 
     assault resulting in serious bodily injury, by imprisonment 
     not more than 30 years, a fine under such title 18, or both;
       ``(5) in the case of committing any other crime of 
     violence, by imprisonment for not more than 20 years, a fine 
     under this title, or both;
       ``(6) in the case of threatening to commit a crime of 
     violence specified in paragraphs (1) through (4), by 
     imprisonment for not more

[[Page 21614]]

     than 10 years, a fine under such title 18, or both;
       ``(7) in the case of attempting or conspiring to commit 
     murder, kidnapping, maiming, or sexual assault, by 
     imprisonment for not more than 30 years, a fine under such 
     title 18, or both; and
       ``(8) in the case of attempting or conspiring to commit a 
     crime involving assault with a dangerous weapon or assault 
     resulting in serious bodily injury, by imprisonment for not 
     more than 20 years, a fine under such title 18, or both.
       ``(b) Venue.--A prosecution for a violation of this section 
     may be brought in--
       ``(1) the judicial district in which the murder or other 
     crime of violence occurred; or
       ``(2) any judicial district in which the drug trafficking 
     crime may be prosecuted.
       ``(c) Definitions.--As used in this section--
       ``(1) the term `crime of violence' has the meaning given 
     that term in section 16 of title 18, United States Code; and
       ``(2) the term `drug trafficking crime' has the meaning 
     given that term in section 924(c)(2) of title 18, United 
     States Code.''.
       (b) Clerical Amendment.--The table of contents for the 
     Controlled Substances Act is amended by inserting after the 
     item relating to section 423, the following:

``Sec. 424. Violent crimes committed during and in relation to a drug 
              trafficking crime.''.

     SEC. 308. EXPANSION OF REBUTTABLE PRESUMPTION AGAINST RELEASE 
                   OF PERSONS CHARGED WITH FIREARMS OFFENSES.

       Section 3142 of title 18, United States Code, is amended--
       (1) in subsection (e), in the matter following paragraph 
     (3)--
       (A) by inserting ``an offense under section 922(g)(1) where 
     the underlying conviction is a serious drug offense as 
     defined in section 924(e)(2)(A) of title 18, United States 
     Code, for which a period of not more than 10 years has 
     elapsed since the date of the conviction or the release of 
     the person from imprisonment, whichever is later, or is a 
     serious violent felony as defined in section 3559(c)(2)(F) of 
     title 18, United States Code,'' after ``that the person 
     committed''; and
       (B) by inserting ``or'' before ``the Maritime'';
       (2) in subsection (f)(1)--
       (A) in subparagraph (C), by striking ``or'' at the end; and
       (B) by adding at the end the following:
       ``(E) an offense under section 922(g); or''; and
       (3) in subsection (g), by amending paragraph (1) to read as 
     follows:
       ``(1) the nature and circumstances of the offense charged, 
     including whether the offense is a crime of violence, or 
     involves a drug, firearm, explosive, or destructive 
     devise;''.

     SEC. 309. STATUTE OF LIMITATIONS FOR VIOLENT CRIME.

       (a) In General.--Chapter 214 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3297. Violent crime offenses

       ``Except as otherwise expressly provided by law, no person 
     shall be prosecuted, tried, or punished for any noncapital 
     felony, crime of violence (as defined in section 16), 
     including any racketeering activity or gang crime which 
     involves any violent crime, unless the indictment is found or 
     the information is instituted by the later of--
       ``(1) 10 years after the date on which the alleged 
     violation occurred;
       ``(2) 10 years after the date on which the continuing 
     offense was completed; or
       ``(3) 8 years after the date on which the alleged violation 
     was first discovered.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 214 of title 18, United States Code, is 
     amended by adding at the end the following:

``3296. Violent crime offenses.''.

     SEC. 310. PREDICATE CRIMES FOR AUTHORIZATION OF INTERCEPTION 
                   OF WIRE, ORAL, AND ELECTRONIC COMMUNICATIONS.

       Section 2516(1) of title 18, United States Code, is 
     amended--
       (1) in paragraph (q), by striking ``or'.'';
       (2) by redesignating paragraph (r) as paragraph (u); and
       (3) by inserting after paragraph (q) the following:
       ``(r) any violation of section 424 of the Controlled 
     Substances Act (relating to murder and other violent crimes 
     in furtherance of a drug trafficking crime);
       ``(s) any violation of 1123 of title 18, United States Code 
     (relating to multiple interstate murder);
       ``(t) any violation of section 521, 522, or 523 (relating 
     to criminal street gangs); or''.

     SEC. 311. CLARIFICATION TO HEARSAY EXCEPTION FOR FORFEITURE 
                   BY WRONGDOING.

       Rule 804(b)(6) of the Federal Rules of Evidence is amended 
     to read as follows:
       ``(6) Forfeiture by wrongdoing. A statement offered against 
     a party that has engaged, acquiesced, or conspired, in 
     wrongdoing that was intended to, and did, procure the 
     unavailability of the declarant as a witness.''.

     SEC. 312. CLARIFICATION OF VENUE FOR RETALIATION AGAINST A 
                   WITNESS.

       Section 1513 of title 18, United States Code, is amended 
     by--
       (1) redesignating subsection (e) beginning with ``Whoever 
     conspires'' as subsection (f); and
       (2) adding at the end the following:
       ``(g) A prosecution under this section may be brought in 
     the district in which the official proceeding (whether or not 
     pending, about to be instituted or was completed) was 
     intended to be affected or was completed, or in which the 
     conduct constituting the alleged offense occurred.''.

     SEC. 313. AMENDMENT OF SENTENCING GUIDELINES RELATING TO 
                   CERTAIN GANG AND VIOLENT CRIMES.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994(p) of title 28, 
     United States Code, and in accordance with this section, the 
     United States Sentencing Commission shall review and, if 
     appropriate, amend its guidelines and its policy statements 
     to conform to the provisions of title I and this title.
       (b) Requirements.--In carrying out this section, the 
     Sentencing Commission shall--
       (1) establish new guidelines and policy statements, as 
     warranted, in order to implement new or revised criminal 
     offenses created under this title;
       (2) ensure that the sentencing guidelines and policy 
     statements reflect the serious nature of the offenses and the 
     penalties set forth in this title, the growing incidence of 
     serious gang and violent crimes, and the need to modify the 
     sentencing guidelines and policy statements to deter, 
     prevent, and punish such offenses;
       (3) consider the extent to which the guidelines and policy 
     statements adequately address--
       (A) whether the guideline offense levels and enhancements 
     for gang and violent crimes--
       (i) are sufficient to deter and punish such offenses; and
       (ii) are adequate in view of the statutory increases in 
     penalties contained in the Act; and
       (B) whether any existing or new specific offense 
     characteristics should be added to reflect congressional 
     intent to increase gang and violent crime penalties, punish 
     offenders, and deter gang and violent crime;
       (4) assure reasonable consistency with other relevant 
     directives and with other sentencing guidelines;
       (5) account for any additional aggravating or mitigating 
     circumstances that might justify exceptions to the generally 
     applicable sentencing ranges;
       (6) make any necessary conforming changes to the sentencing 
     guidelines; and
       (7) assure that the guidelines adequately meet the purposes 
     of sentencing under section 3553(a)(2) of title 18, United 
     States Code.

     SEC. 314. SOLICITATION OR RECRUITMENT OF PERSONS IN CRIMINAL 
                   STREET GANG ACTIVITY.

       Chapter 26 of title 18, United States Code, is amended by 
     adding at the end the following:

     ``Sec. 522. Recruitment of persons to participate in a 
       criminal street gang

       ``(a) Prohibited Acts.--It shall be unlawful for any person 
     to recruit, employ, solicit, induce, command, or cause 
     another person to be or remain as a member of a criminal 
     street gang, or conspire to do so, with the intent to cause 
     that person to participate in an offense described in section 
     521(a).
       ``(b) Definition.--In this section:
       ``(1) Criminal street gang.--The term `criminal street 
     gang' shall have the same meaning as in section 521(a) of 
     this title.
       ``(2) Minor.--The term `minor' means a person who is less 
     than 18 years of age.
       ``(c) Penalties.--Any person who violates subsection (a) 
     shall--
       ``(1) be imprisoned not more than 5 years, fined under this 
     title, or both; or
       ``(2) if the person recruited, solicited, induced, 
     commanded, or caused to participate or remain in a criminal 
     street gang is under the age of 18--
       ``(A) be imprisoned for not more than 10 years, fined under 
     this title, or both; and
       ``(B) at the discretion of the sentencing judge, be liable 
     for any costs incurred by the Federal Government, or by any 
     State or local government, for housing, maintaining, and 
     treating the person until the person attains the age of 18 
     years.''.

     SEC. 315. INCREASED PENALTIES FOR CRIMINAL USE OF FIREARMS IN 
                   CRIMES OF VIOLENCE AND DRUG TRAFFICKING.

       (a) In General.--Section 924(c)(1)(A) of title 18, United 
     States Code, is amended--
       (1) by striking ``shall'' and inserting ``or conspires to 
     commit any of the above acts, shall, for each instance in 
     which the firearm is used, carried, or possessed'';
       (2) in clause (i), by striking ``5 years'' and inserting 
     ``7 years''; and
       (3) by striking clause (ii).
       (b) Conforming Amendments.--Section 924 of title 18, United 
     States Code, is amended--
       (1) in subsection (c), by striking paragraph (4); and
       (2) by striking subsection (o).

     SEC. 316. POSSESSION OF FIREARMS BY DANGEROUS FELONS.

       (a) In General.--Section 924(e) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1), by inserting after ``violates section 
     922(g) of this title'' and before ``and has three previous 
     convictions'' the following: ``and has previously been 
     convicted

[[Page 21615]]

     by any court referred to in section 922(g)(1) for a violent 
     felony or a serious drug offense shall, in the case of 1 such 
     prior conviction, where a period of not more than 10 years 
     has elapsed since the date of the conviction or release of 
     the person from imprisonment for that conviction, be subject 
     to imprisonment for not more than 15 years a fine under this 
     title, or both; in the case of 2 such prior convictions, 
     committed on occasions different from one another, and where 
     a period of not more than 10 years has elapsed since the date 
     of the conviction or release of the person from imprisonment 
     for that conviction, be subject to imprisonment for not more 
     than 20 years a fine under this title, or both; and in the 
     case of an individual who''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) As used in this subsection--
       ``(A) the term `serious drug offense' means--
       ``(i) an offense under the Controlled Substances Act (21 
     U.S.C. 801 et seq.), the Controlled Substances Import and 
     Export Act (21 U.S.C. 951 et seq.), or the Maritime Drug Law 
     Enforcement Act (46 U.S.C. App. 1901 et seq.), punishable by 
     a maximum term of imprisonment of not less than 10 years; or
       ``(ii) an offense under State law, involving manufacturing, 
     distributing, or possessing with intent to manufacture or 
     distribute, a controlled substance (as defined in section 102 
     of the Controlled Substances Act (21 U.S.C. 802)), punishable 
     by a maximum term of imprisonment of not less than 10 years;
       ``(B) the term `violent felony' means any crime punishable 
     by a term of imprisonment exceeding 1 year, or any act of 
     juvenile delinquency involving the use or carrying of a 
     firearm, knife, or destructive device that would be 
     punishable by a maximum term of imprisonment for such term if 
     committed by an adult, that--
       ``(i) has, as an element of the crime or act, the use, 
     attempted use, or threatened use of physical force against 
     the person of another; or
       ``(ii) is burglary, arson, or extortion, involves the use 
     of explosives, or otherwise involves conduct that presents a 
     serious potential risk of physical injury to another; and
       ``(C) the term `conviction' includes a finding that a 
     person has committed an act of juvenile delinquency involving 
     a violent felony.''.
       (b) Amendment to Sentencing Guidelines.--Pursuant to its 
     authority under section 994(p) of title 28, United States 
     Code, the United States Sentencing Commission shall amend the 
     Federal Sentencing Guidelines to provide for an appropriate 
     increase in the offense level for violations of section 
     922(g) of title 18, United States Code, in accordance with 
     section 924(e) of such title 18, as amended by subsection 
     (a).
       (c) Conforming Amendment.--The matter before paragraph (1) 
     in section 922(d) of title 18, United States Code, is amended 
     by inserting ``, transfer,'' after ``sell''.

     SEC. 317. STANDARDIZATION OF CRIME REPORTING.

       (a) Expanding Uniform Crime Reporting.--Section 7332(c) of 
     the Uniform Federal Crime Reporting Act of 1988 (28 U.S.C. 
     534 note) is amended by--
       (1) in paragraph (2), by--
       (A) inserting ``along with all municipality police 
     departments'' after ``which routinely investigate complaints 
     of criminal activity,''; and
       (B) adding at the end the following: ``The Attorney General 
     shall create a separate category in the Uniform Crime Reports 
     to distinguish crimes committed by juveniles.''; and
       (2) in paragraph (3), by inserting ``, officials of 
     municipalities,'' after ``State governments''.
       (b) Consolidating and Standardizing All Crime Data.--
     Section 150008 of the Violent Crime Control and law 
     Enforcement Act of 1994 (42 U.S.C. 14062) is amended--
       (1) in subsection (a), by--
       (A) inserting ``, consolidate, and standardize all'' after 
     ``strategy to coordinate'';
       (B) inserting ``and crime (that would be included in the 
     Uniform Crime Reports) related'' after ``gang-related'';
       (C) striking ``and'' after ``shall acquire'' and inserting 
     ``, consolidate, and standardize all'' after ``shall acquire, 
     collect''; and
       (D) inserting ``and other crimes that would be included in 
     the Uniform Crime Reports'' after ``incidents of gang 
     violence'';
       (2) in subsection (c), by--
       (A) inserting ``the efforts and strategy of the Department 
     of Justice in consolidating and standardizing data on all 
     crime and'' after ``prepare a report on'';
       (B) striking ``violence'' after ``national gang'' and 
     inserting ``offenses''; and
       (C) striking ``1996'' after ``January 1,'' and inserting 
     ``2008''; and
       (3) in subsection (d), by--
       (A) striking ``$1,000,000'' after ``carry out this 
     section'' and substituting ``$2,000,000''; and
       (B) striking ``1996'' after ``fiscal year,'' and inserting 
     ``2007''.

     SEC. 318. PROVIDING ADDITIONAL FORENSIC EXAMINERS.

       Section 816 of the Uniting and Strengthening America by 
     Providing Appropriate Tools Required to Intercept and 
     Obstruct Terrorism Act of 2001 (28 U.S.C. 509) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraph (5) as (6) and inserting 
     after paragraph (4) the following:
       ``(5) to hire additional forensic examiners to help with 
     forensic work and to fight gang activity; and''; and
       (2) in subsection (b), by striking paragraph (1) and 
     inserting the following:
       ``(1) Authorization.--There is hereby authorized to be 
     appropriated in each fiscal year $55,000,000 for purposes of 
     carrying out this section.''

     SEC. 319. STUDY ON EXPANDING FEDERAL AUTHORITY FOR JUVENILE 
                   OFFENDERS.

       (a) In General.--Not later than 9 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Committees on the Judiciary of the 
     Senate and the House of Representatives a report on the costs 
     and benefits associated with expanding Federal authority to 
     prosecute offenders under the age of 18 who are gang members 
     who commit criminal offenses.
       (b) Contents.--The report submitted under subsection (a) 
     shall--
       (1) examine the ability of the judicial systems of the 
     States to respond effectively to juveniles who are members of 
     `criminal street gangs', as defined under section 521 of 
     title 18, United States Code;
       (2) examine the extent to which offenders who are 16 and 17 
     years old are members of criminal street gangs, and are 
     accused of committing violent crimes and prosecuted in the 
     adult criminal justice systems of the individual States;
       (3) determine the percentage of crimes committed by members 
     of `criminal street gangs' that are committed by offenders 
     who are 16 and 17 years old;
       (4) examine the extent to which United States attorneys 
     currently bring criminal indictments and prosecute offenders 
     under the age of 18, and the extent to which United States 
     attorneys' offices include prosecutors with experience 
     prosecuting juveniles for adult criminal violations;
       (5) examine the extent to which the Bureau of Prisons 
     houses offenders under the age of 18, and has the ability and 
     experience to meet the needs of young offenders;
       (6) estimate the cost to the Federal Government of 
     prosecuting and incarcerating 16 and 17 year olds who are 
     members of criminal street gangs and are accused of violent 
     crimes; and
       (7) detail any benefits for Federal prosecutions that would 
     be realized by expanding Federal authority to bring charges 
     against 16 and 17 year olds who are members of criminal 
     street gangs and are accused of violent crimes.
                                 ______
                                 
      By Mrs. CLINTON:
  S. 4029. A bill to increase the number of well-educated nurses, and 
for other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mrs. CLINTON. Mr. President, I rise today to introduce the Nursing 
Education and Quality of Health Care Act of 2006. This legislation is 
essential for addressing our current and future nursing shortages.
  I have been hearing from nurses and health care providers from every 
part of New York that we are facing an impending nursing crisis and 
their stories echo what is heard from nurses across the Nation.
  By 2014, the Bureau of Labor Statistics forecasts that there will be 
over 1 million job openings for registered nurses. In New York alone, 
we will need to produce over 80,000 new RNs to meet these projections. 
One of our greatest needs will be in rural areas where the pool of 
nurses is small and the loss of just one nurse from the workforce can 
have a profound impact on the health of the community.
  I can proudly say we have made good progress in New York on one 
front. In 2006, 30 percent more registered nurses graduated than in 
2004. I believe that we can credit this increase to the Nurse 
Reinvestment Act that was signed into law in 2002. Through this 
bipartisan legislation, we were able to make great strides in 
strengthening our nation's nursing workforce.
  The Nurse Reinvestment Act includes a number of critical initiatives 
including one from the bipartisan bill I introduced with Senator Gordon 
Smith to retain nurses who are already in the profession. The Clinton-
Smith provision provides grants to health care organizations that 
develop and implement models based on magnet hospitals. Hospitals that 
have achieved magnet status report lower mortality rates, higher 
patient satisfaction, greater cost-efficiency, and patients 
experiencing shorter stays in hospitals and intensive care units.

[[Page 21616]]

  But I am here today because nurses are still facing an urgent 
situation that requires action. Even though we are making strides to 
graduate more nurses, in 2005 over 37,000 qualified applicants were 
turned away from nursing schools in United States. In New York, it is 
estimated that nearly 3,000 nursing school applicants were denied 
entry. Put simply, we don't have the capacity in our nursing schools to 
train qualified potential students.
  Not only are we facing a nursing shortage, we are setting ourselves 
up for a potential nursing crisis if we don't address the impending 
faculty shortage. This situation will become dire if we lose potential 
nurses due to the retirement of nurse faculty as that the aging 
population increases.
  We need to pave the way and recruit more people into the nursing 
profession. This shortage crisis impacts not only the nurses, but also 
patients since we know that the quality of care increases when nurses 
are not working too many hours, are not treating too many patients, and 
are satisfied with their jobs.
  Today I am here to support recruitment, education, and training to 
help alleviate this crisis in New York and in the rest of the nation 
through introduction of the Nursing Education and Quality of Health 
Care Act of 2006. This act will establish distance learning 
opportunities for people in rural communities who wish to pursue the 
nursing profession without leaving their home town. This legislation 
will also provide tuition assistance and loan forgiveness for those who 
choose to practice in rural communities.
  To increase the number of nurses in the workforce we need to expand 
the nursing faculty so that thousands of qualified people are not 
turned away from the profession. This legislation will fund programs 
that will enhance recruitment, scholarships, and educational 
preparation and encourage more nurses to become faculty members by 
establishing online courses and accelerated degree programs.
  We need for nurses to participate and collaborate in patient-safety 
initiatives for the well-being of patients. The Nursing Education and 
Quality of Health Care Act will take the lead on this issue by 
supporting projects that integrate patient safety practices into 
nursing education programs and enhance the leadership of nurses in 
improving patients' outcomes within their health care settings.
  We will all rely on nurses sometime in our life, and we need to make 
sure that this essential member of the health care team will always be 
present at our bedsides.
  I am pleased to be here encouraging Nurses, who are so critical to 
the successful operation of our hospitals and the quality of care 
patients receive. We should be doing everything we can to address the 
nursing shortage and to make nursing an attractive and rewarding 
profession.
  The Nursing Education and Quality of Health Care Act of 2006 is 
supported by: American Association of Colleges of Nursing; American 
Nursing Association; American Organization of Nurse Executives; 
Brooklyn Nursing Partnership; New York State Area Health Education 
Center System
                                 ______
                                 
      By Mr. HATCH:
  S. 4030. A bill to amend the Internal Revenue Code of 1986 to 
simplify certain provisions applicable to real estate investment 
trusts, and for other purposes; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce the REIT 
Investment Diversification and Empowerment Act of 2006 (RIDEA). This 
legislation would make a handful of relatively minor, but nonetheless 
important, changes to the tax rules governing Real Estate Investment 
Trusts to permit REITs to better meet the challenges of evolving market 
conditions and opportunities.
  As most of my colleagues know, Real Estate Investment Trusts are 
companies that own, and in most cases, operate income-producing real 
estate. Congress created REITs in 1960 to give everyone the ability to 
invest in large-scale commercial properties in a very liquid way. The 
REIT industry has grown dramatically in size and importance to the U.S. 
economy since then, and in the last ten years in particular.
  While the tax laws governing REITs are very good, from time to time 
they need to be modified to keep pace with the changes in the 
marketplace and in our economy. I am pleased to have supported, along 
with many of my colleagues, several tax bills that have been enacted in 
the past decade or so to modernize the tax treatment of Real Estate 
Investment Trusts.
  Federal tax law requires that REITs meet specific tests regarding the 
composition of their gross income and assets. For example, 95 percent 
of their annual gross income must be from specified sources such as 
dividends, interests and rents, and 75 percent of their gross income 
must be from real estate-related sources. Similarly, at the end of each 
calendar quarter, 75 percent of a REIT's assets must consist of 
specified ``real estate'' assets. Consequently, REITs must derive a 
majority of their gross income from commercial real estate.
  Failure to meet these tests can result in loss of REIT status, 
although with the enactment of the REIT Improvement Act in 2004, it may 
be possible for a REIT to pay a monetary penalty and bring itself into 
compliance in order to avoid such a result if the REIT can demonstrate 
reasonable cause for such failure.
  Commercial real estate represents more than six percent of this 
country's gross domestic product and is a key generator of jobs and 
other economic activities. For example, REITs have invested over $1.2 
billion in my home State of Utah and have thus been a major contributor 
to our robust economy. Over the past 46 years, Real Estate Investment 
Trusts have fulfilled Congress' vision by making investments in large 
scale, capital intensive commercial real estate available to all 
investors.
  Changes to the REIT rules that Congress has made in the past decade 
have allowed REITs to serve better their tenants while maximizing 
returns to REIT shareholders.
  The bill I introduce today would further modify the REIT tax rules to 
conform to constantly evolving business realities, such as the growing 
importance of cross-border trade and the increased velocity of the 
competitive marketplace, while still focusing REITs on commercial real 
estate activities.
  Specifically, the bill includes five titles.
  The first would clarify the tax treatment of foreign currency gains 
attributable to overseas real estate investment. This is important as 
U.S. REITs continue to expand their investments overseas.
  The second title would increase the permissible ownership of a REIT 
in a taxable REIT subsidiary to 25 percent from the current-law 20 
percent. This change would bring the REIT rules into conformity with 
similar rules governing mutual funds.
  Title III of the bill would update the safe harbor test for purposes 
of the 100 percent excise tax in relation to dealer sales. This would 
help REITs more prudently manage the timing and extent of their asset 
dispositions.
  The bill's fourth title would conform the tax treatment of health 
care facilities to that of lodging facilities by treating as qualifying 
income rental payments attributable to a health care facility made to a 
REIT from a taxable REIT subsidiary. This change would allow health 
care REITs more flexibility.
  Finally, the bill's fifth title would amend the REIT rules to provide 
that income from, and interests in, foreign-qualified REITs would be 
treated as qualifying REIT income and assets under the U.S. REIT rules 
under certain circumstances. This change is important because about 20 
countries have now enacted legislation that closely resembles our REIT 
rules, and many U.S. REITs may wish to invest in a non-U.S. REIT. This 
would allow them to do so with a minimum of complexity.
  I urge my colleagues to review this bill and lend their support to 
it. I realize that it is very late in the second

[[Page 21617]]

session of the 109th Congress, and there is little time for us to 
consider newly-introduced tax bills. However, I hope to reintroduce 
this legislation in the next Congress if we do not get a chance to 
consider it this year.
  I ask unanimous consent that a section-by-section analysis of the 
REIT Investment Diversification and Empowerment Act and the text of the 
bill be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

      REIT Investment Diversification and Empowerment Act of 2006


                     Section-by-Section Description

       The REIT Investment Diversification and Empowerment Act of 
     2006 (RIDEA) includes the following provisions to help 
     modernize the tax rules governing Real Estate Investment 
     Trusts to permit REITs to better meet the challenges of 
     evolving market conditions and opportunities:
     Title I: Foreign Currency and Other Qualified Activities
       The Internal Revenue Service (IRS) has long recognized that 
     U.S. REITs can, and do, invest outside the U.S., essentially 
     recognizing that any income generated from REIT-permissible 
     sources outside of the U.S. should not jeopardize the REIT's 
     tax status. However, the treatment of foreign currency gains 
     directly attributable to overseas real estate investment is 
     not wholly clear, and its correct characterization is 
     becoming increasingly important as U.S. REITs strengthen 
     their positions in foreign markets.
       To ensure that foreign currency gains do not harm a REIT's 
     tax status, the IRS has provided a short-term solution by 
     allowing certain REITs to establish a subsidiary REIT in each 
     currency zone in which a REIT invests. However, the use of 
     subsidiary REITs, each of which must satisfy the complex 
     myriad of REIT rules or risk disqualification of the parent 
     REIT, is a cumbersome and unmanageable solution in the long 
     term. Accordingly, RIDEA would clarify existing law by 
     characterizing foreign currency gains generated by a REIT 
     outside the U.S. as ``good'' REIT income so long as the REIT 
     focuses on commercial real estate, as measured by specific 
     objective rules. Despite the IRS' authority to prescribe 
     similar rules, the absence of such guidance necessitates 
     legislative clarification to provide certainty to REIT 
     management and their shareholders within a more administrable 
     framework.
       RIDEA also would delegate to the IRS the express authority 
     to issue guidance with respect to whether any other item of 
     income should satisfy the REIT gross income tests or should 
     not be taken into account in calculating these tests. While 
     the IRS often has been willing to grant such rulings to 
     specific taxpayers, these rulings cannot be relied on by 
     other taxpayers and in any event do not cover all 
     circumstances.
       Thus, RIDEA would: (1) characterize foreign currency gains 
     attributable to a REIT's ownership and operation of overseas 
     real estate assets as qualifying income under REIT gross 
     income tests; (2) conform the current REIT hedging rule to 
     also apply to foreign currency gains and to apply those rules 
     for purposes of the REIT gross income tests under current 
     law; (3) specifically provide the Department of the Treasury 
     the authority to issue guidance on other items of income to 
     either qualify under the REIT gross income tests or to 
     provide that items of income are not taken into account in 
     computing those tests; (4) treat foreign currency as a 
     qualifying real estate asset; and (5) make conforming changes 
     to other REIT provisions reflecting foreign currency gains.
     Title II: Taxable REIT Subsidiaries
       As originally introduced in 1999, the REIT Modernization 
     Act (RMA) limited a REIT's ownership in taxable REIT 
     subsidiaries (TRS) to 25 percent of a REIT's gross assets. 
     However, the limit was reduced to 20 percent when Congress 
     ultimately enacted the RMA as part of the Ticket to Work 
     Incentives Improvement Act of 1999.
       RIDEA would increase the limit on TRS securities from 20 
     percent to 25 percent of a REIT's gross assets. The rationale 
     for a 25 percent limit on TRSs that was contained in the RMA 
     remains the same today. The dividing line for testing a 
     concentration on commercial real estate in the REIT rules has 
     long been set at 25 percent, and even the mutual fund rule 
     uses a 25 percent test. An IRS study shows increasing amounts 
     of taxes paid by new TRSs, and common sense tells IUS that 
     permitting increased activities in a double tax regime should 
     increase revenues to the fisc compared to a single tax 
     regime.
     Title III: Dealer Sales
       The Internal Revenue Code imposes a 100 percent excise tax 
     on profits generated on sales of property in which a REIT is 
     acting as a dealer rather than an investor. Because of the 
     confiscatory nature of this 100 percent excise tax, the Code 
     provides a ``safe harbor'' under which a REIT can be assured 
     that the excise tax does not apply if it satisfies a number 
     of requirements. RIDEA would make two changes to the dealer 
     safe harbor.
       One requirement under current law is that the REIT not 
     either make seven sales in a taxable year or sell more than 
     10 percent of its portfolio each year. However, the test as 
     currently constructed penalizes many REITs that have owned 
     their properties for a long period of time. This is because 
     the test is geared to the property's ``tax basis,'' an amount 
     that diminishes over time due to tax depreciation, rather 
     than ``fair market value'', an amount that generally 
     increases over time. Second, the current test requires that a 
     REIT hold a property for at least four years, three years 
     longer than the general holding period required to 
     distinguish between an ``investor'' and a ``dealer'' in 
     property.
       RIDEA would update this safe harbor to test ``fair market'' 
     value instead of ``tax basis'' to allow REITs that have owned 
     their properties for longer periods not be penalized and 
     thereby prevented from prudently managing the timing and 
     extent of asset dispositions. As part of the REIT 
     Modernization Act of 1999, Congress adopted a provision that 
     utilizes fair market value rules for purposes of calculating 
     personal property rents associated with the rental of real 
     property. Thus, there is an analogous precedent for a fair 
     value approach.
       The safe harbor also would be amended to replace the 4-year 
     holding period with a 2-year holding period. The 4-year 
     requirement is not consistent with other Code provisions that 
     define whether property is held for long term investments, 
     such as the 1-year holding period to determine long-term 
     capital gains treatment, and the 2-year holding period to 
     distinguish whether the sale of a home is taxable because it 
     is held for investment purposes.
     Title IV: Health Care REITs
       Generally, rental payments made from a subsidiary owned by 
     a REIT to that REIT are not considered qualified rental 
     income for REIT purposes under the ``related party rules''. 
     However, as part of the REIT Modernization Act of 1999 (RMA), 
     a lodging REIT is allowed to establish a taxable REIT 
     subsidiary (TRS) that can lease lodging facilities from a 
     REIT holding a controlling interest, with the payments to the 
     REIT considered qualified income under the REIT rules. The 
     RMA also created a rule under which a TRS is not allowed to 
     operate or manage lodging or health care facilities.
       At the time the RMA was considered, it was not clear that 
     health care REITs would be interested in such treatment, so 
     health care facilities do not qualify for the RMA exception 
     to the related party rules. Today, many operators of health 
     care assets such as assisted living facilities do not want to 
     bear the financial risks of being a lessee of such facilities 
     and would rather act purely as an independent operator of the 
     facilities. Health care REITs now believe that the TRS 
     restriction is interfering with their ability to manage their 
     operations in the most efficient manner.
       RIDEA would conform the treatment of health care facilities 
     to that of lodging facilities by treating as qualifying 
     income rental payments attributable to a health care facility 
     made to a REIT from a taxable REIT subsidiary. Under this 
     proposal, a TRS would still be required to use an independent 
     contractor to manage or operate health care facilities, but 
     payments collected by a REIT from its TRS renting health care 
     facilities would be qualified income under the REIT tests.
     Title V: Foreign REITs
       Since imitation is the sincerest form of flattery, Congress 
     should be proud that about 20 countries have enacted 
     legislation paralleling the U.S. REIT rules after observing 
     the benefits brought to the United States as a result of a 
     vibrant REIT market. The number of countries that have 
     adopted REIT-like legislation this past decade has greatly 
     accelerated, with Israel being the latest country to do so 
     and legislation in the United Kingdom going into effect on 
     January 1, 2007. Although the tax code treats stock in a U.S. 
     REIT as a real estate asset, so that it is a qualified asset 
     that generates qualifying income, current law does not afford 
     the same treatment to the stock of non-U.S. REITs.
       A U.S. REIT might want to invest in another country through 
     a REIT organized in that country. A company could lose its 
     status as a U.S. REIT if it owns more than 10 percent of the 
     foreign REIT's securities, even though the foreign company 
     looks and acts like a U.S. REIT. A REIT should not be 
     discouraged from investing in an entity that engages in the 
     same activities that a U.S. REIT is allowed to undertake if 
     it invests directly in another country.
       RIDEA would amend the REIT rules to provide that income 
     from, and interests in, foreign-qualified REITs would be 
     treated as qualifying REIT income and assets under the U.S. 
     REIT rules provided that under the laws of another country: 
     (1) at least 75 percent of the foreign company's assets must 
     be invested in real estate assets; (2) the foreign REIT 
     either receives a dividends paid deduction or is exempt from 
     corporate level tax; and (3) the foreign REIT is required to 
     distribute at least 85 percent of its taxable income to 
     shareholders on an annual basis.
                                  ____


                                S. 4030

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

[[Page 21618]]



     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``REIT Investment 
     Diversification and Empowerment Act of 2006''.

     SEC. 2. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in the Act 
     an amendment or repeal is expressed in terms of an amendment 
     to, or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Internal Revenue Code of 1986.

        TITLE I--FOREIGN CURRENCY AND OTHER QUALIFIED ACTIVITIES

     SEC. 101. REVISIONS TO REIT INCOME TESTS.

       (a) Addition of Permissible Income Categories.--Section 
     856(c) (relating to limitations) is amended--
       (1) by striking ``and'' at the end of paragraph (2)(G) and 
     by inserting after paragraph (2)(H) the following new 
     subparagraphs:
       ``(I) passive foreign exchange gains; and
       ``(J) any other item of income or gain as determined by the 
     Secretary;'', and
       (2) by striking ``and'' at the end of paragraphs (3)(H) and 
     (3)(I) and by inserting after paragraph (3)(I) the following 
     new subparagraphs:
       ``(J) real estate foreign exchange gains; and
       ``(K) any other item of income or gain as determined by the 
     Secretary; and''.
       (b) Rules Regarding Foreign Currency Transactions.--Section 
     856 (defining real estate investment trust) is amended by 
     adding at the end the following new subsection:
       ``(n) Rules Regarding Foreign Currency Transactions.--With 
     respect to any taxable year--
       ``(1) Real estate foreign exchange gains.--For purposes of 
     subsection (c)(3)(J), the term `real estate foreign exchange 
     gains' means--
       ``(A) foreign currency gains (as defined in section 
     988(b)(1)) which are attributable to--
       ``(i) any item described in subsection (c)(3),
       ``(ii) the acquisition or ownership of obligations secured 
     by mortgages on real property or on interests in real 
     property (other than foreign currency gains described in 
     clause (i)), or
       ``(iii) becoming or being the obligor under obligations 
     secured by mortgages on real property or on interests in real 
     property (other than foreign currency gains described in 
     clause (i)),
       ``(B) gains described in section 987 attributable to a 
     qualified business unit (as defined by section 989) of the 
     real estate investment trust, but only if such qualified 
     business unit meets the requirements under--
       ``(i) subsection (c)(3) for the taxable year; and
       ``(ii) subsection (c)(4)(A) at the close of each quarter 
     that the real estate investment trust has directly or 
     indirectly held the qualified business unit, and
       ``(C) any other foreign currency gains as determined by the 
     Secretary.
       ``(2) Passive foreign exchange gains.--For purposes of 
     subsection (c)(2)(I), the term `passive foreign exchange 
     gains' means--
       ``(A) gains described under paragraph (1),
       ``(B) foreign currency gains (as defined in section 
     988(b)(1)) which are attributable to any item described in 
     subsection (c)(2) (other than those items includible under 
     subparagraph (A)), and
       ``(C) any other foreign currency gains as determined by the 
     Secretary.''.
       (c) Addition to REIT Hedging Rule.--Subparagraph (G) of 
     section 856(c)(5) is amended to read as follows:
       ``(G) Treatment of certain hedging instruments.--Except to 
     the extent as determined by the Secretary--
       ``(i) any income of a real estate investment trust from a 
     hedging transaction (as defined in clause (ii) or (iii) of 
     section 1221(b)(2)(A)) which is clearly identified pursuant 
     to section 1221(a)(7), including gain from the sale or 
     disposition of such a transaction, shall not constitute gross 
     income under paragraphs (2) and (3) to the extent that the 
     transaction hedges any indebtedness incurred or to be 
     incurred by the trust to acquire or carry real estate assets, 
     and
       ``(ii) any income of a real estate investment trust from a 
     transaction entered into by the trust primarily to manage 
     risk of currency fluctuations with respect to any item 
     described in paragraphs (2) and (3), including gain from the 
     termination of such a transaction, shall not constitute gross 
     income under paragraphs (2) and (3), but only if such 
     transaction is clearly identified as such before the close of 
     the day on which it was acquired, originated, or entered into 
     (or such other time as the Secretary may prescribe).''.
       (d) Authority to Exclude Items of Income From REIT Income 
     Tests.--Section 856(c)(5) is amended by adding at the end the 
     following new subparagraph:
       ``(H) Secretarial authority to exclude other items of 
     income.--The Secretary is authorized to determine whether any 
     item of income or gain which does not otherwise qualify under 
     paragraph (2) or (3) may be considered as not constituting 
     gross income solely for purposes of this part.''.

     SEC. 102. REVISIONS TO REIT ASSET TESTS.

       (a) Clarification of Valuation Test.--The first sentence in 
     the matter following section 856(c)(4)(B)(iii)(III) is 
     amended by inserting ``(including a discrepancy caused solely 
     by the change in the foreign currency exchange rate used to 
     value a foreign asset)'' after ``such requirements''.
       (b) Clarification of Permissible Asset Category.--Section 
     856(c)(5), as amended by section 101(d), is amended by adding 
     at the end the following new subparagraph:
       ``(I) Cash.--For purposes of this part, the term `cash' 
     includes foreign currency if the real estate investment trust 
     or its qualified business unit (as defined in section 989) 
     uses such foreign currency as its functional currency (as 
     defined in section 985(b)).''.

     SEC. 103. CONFORMING FOREIGN CURRENCY REVISIONS.

       (a) Net Income From Foreclosure Property.--Clause (i) of 
     section 857(b)(4)(B) is amended to read as follows:
       ``(i) gain (including any foreign currency gain, as defined 
     in section 988(b)(1)) from the sale or other disposition of 
     foreclosure property described in section 1221(a)(1) and the 
     gross income for the taxable year derived from foreclosure 
     property (as defined in section 856(e)), but only to the 
     extent such gross income is not described in (or, in the case 
     of foreign currency gain, not attributable to gross income 
     described in) section 856(c)(3) other than subparagraph (F) 
     thereof, over''.
       (b) Net Income From Prohibited Transactions.--Clause (i) of 
     section 857(b)(6)(B) is amended to read as follows:
       ``(i) the term `net income derived from prohibited 
     transactions' means the excess of the gain (including any 
     foreign currency gain, as defined in section 988(b)(1)) from 
     prohibited transactions over the deductions (including any 
     foreign currency loss, as defined in section 988(b)(2)) 
     allowed by this chapter which are directly connected with 
     prohibited transactions;''.

                  TITLE II--TAXABLE REIT SUBSIDIARIES

     SEC. 201. CONFORMING TAXABLE REIT SUBSIDIARY ASSET TEST.

       Section 856(c)(4)(B)(ii) is amended by striking ``20 
     percent'' and inserting ``25 percent''.

                        TITLE III--DEALER SALES

     SEC. 301. HOLDING PERIOD UNDER SAFE HARBOR.

       Section 857(b)(6) (relating to income from prohibited 
     transactions) is amended--
       (1) by striking ``4 years'' in subparagraphs (C)(i), 
     (C)(iv), and (D)(i) and inserting ``2 years'',
       (2) by striking ``4-year period'' in subparagraphs (C)(ii), 
     (D)(ii), and (D)(iii) and inserting ``2-year period'', and
       (3) by striking ``real estate asset'' and all that follows 
     through ``if'' in the matter preceding clause (i) of 
     subparagraphs (C) and (D) and inserting ``real estate asset 
     (as defined in section 856(c)(5)(B) otherwise described in 
     section 1221(a)(1) if''.

     SEC. 302. DETERMINING VALUE OF SALES UNDER SAFE HARBOR.

       Subparagraphs (C)(iii)(II) and (D)(iv)(II) of section 
     857(b)(6) are each amended by striking ``the aggregate 
     adjusted bases'' and all that follows through ``the beginning 
     of the taxable year'' and inserting ``the fair market value 
     of property (other than sales of foreclosure property or 
     sales to which section 1033 applies) sold during the taxable 
     year does not exceed 10 percent of the fair market value of 
     all of the assets of the trust as of the beginning of the 
     taxable year''.

                      TITLE IV--HEALTH CARE REITS

     SEC. 401. CONFORMITY FOR HEALTH CARE FACILITIES.

       (a) Related Party Rentals.--Subparagraph (B) of section 
     856(d)(8) (relating to special rule for taxable REIT 
     subsidiaries) is amended to read as follows:
       ``(B) Exception for certain lodging facilities and health 
     care property.--The requirements of this subparagraph are met 
     with respect to an interest in real property which is a 
     qualified lodging facility or a qualified health care 
     property (as defined in subsection (e)(6)(D)(i)) leased by 
     the trust to a taxable REIT subsidiary of the trust if the 
     property is operated on behalf of such subsidiary by a person 
     who is an eligible independent contractor.''.
       (b) Eligible Independent Contractor.--Subparagraphs (A) and 
     (B) of section 856(d)(9) (relating to eligible independent 
     contractor) are amended to read as follows:
       ``(A) In general.--The term `eligible independent 
     contractor' means, with respect to any qualified lodging 
     facility or qualified health care property (as defined in 
     subsection (e)(6)(D)(i)), any independent contractor if, at 
     the time such contractor enters into a management agreement 
     or other similar service contract with the taxable REIT 
     subsidiary to operate such qualified lodging facility or 
     qualified health care property, such contractor (or any 
     related person) is actively engaged in the trade or business 
     of operating qualified lodging facilities or qualified health 
     care properties, respectively, for any person who is not a 
     related person with respect to the real estate investment 
     trust or the taxable REIT subsidiary.
       ``(B) Special rules.--Solely for purposes of this paragraph 
     and paragraph (8)(B), a person shall not fail to be treated 
     as an independent contractor with respect to any qualified 
     lodging facility or qualified health care property (as so 
     defined) by reason of the following:
       ``(i) The taxable REIT subsidiary bears the expenses for 
     the operation of such qualified

[[Page 21619]]

     lodging facility or qualified health care property pursuant 
     to the management agreement or other similar service 
     contract.
       ``(ii) The taxable REIT subsidiary receives the revenues 
     from the operation of such qualified lodging facility or 
     qualified health care property, net of expenses for such 
     operation and fees payable to the operator pursuant to such 
     agreement or contract.
       ``(iii) The real estate investment trust receives income 
     from such person with respect to another property that is 
     attributable to a lease of such other property to such person 
     that was in effect as of the later of --

       ``(I) January 1, 1999, or
       ``(II) the earliest date that any taxable REIT subsidiary 
     of such trust entered into a management agreement or other 
     similar service contract with such person with respect to 
     such qualified lodging facility or qualified health care 
     property.''.

                         TITLE V--FOREIGN REITS

     SEC. 501. STOCK OF FOREIGN REITS AS REAL ESTATE ASSETS.

       (a) In General.--The first sentence in section 856(c)(5)(B) 
     is amended by inserting ``or in a qualified foreign REIT'' 
     after ``this part''.
       (b) Qualified Foreign REIT.--Section 856(c) is amended by 
     adding at the end the following new paragraph:
       ``(8) Qualified foreign reit.--For purposes of this 
     subsection, the term `qualified foreign REIT' means a 
     corporation, trust, or association--
       ``(A) treated as a corporation under section 7701(a)(3),
       ``(B) the shares or certificates of beneficial interests of 
     which are regularly traded on an established securities 
     market, and
       ``(C) which is organized in a country under rules that the 
     Secretary determines meet the following criteria:
       ``(i) At least 75 percent of the entity's assets must 
     qualify as real estate assets (determined without regard to 
     shares or transferable certificates of beneficial interest in 
     such entity), as determined at the close of the entity's 
     prior taxable year.
       ``(ii) The entity either receives a dividends paid 
     deduction comparable to section 561 or is exempt from 
     corporate level tax.
       ``(iii) The entity is required to distribute at least 85 
     percent of its annual taxable income (as computed in the 
     jurisdiction in which it is organized) to the holders of its 
     shares or certificates of beneficial interest on an annual 
     basis.''.

     SEC. 502. DIVIDENDS FROM FOREIGN REITS.

       Section 856(c)(3)(D) is amended by inserting ``and in 
     qualified foreign REITs'' after ``this part''.

                       TITLE VI--EFFECTIVE DATES

     SEC. 601. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this 
     section, the amendments made by this Act shall apply to 
     taxable years beginning after the date of the enactment of 
     this Act.
       (b) REIT Hedging Rules.--The amendment made by section 
     101(c) shall apply to transactions entered into after the 
     date of the enactment of this Act.
                                 ______
                                 
      By Mr. DODD (for himself, Mr. Kennedy, Mr. Kerry, Mr. Lieberman, 
        Mr. Durbin, Mr. Schumer, and Mrs. Clinton):
  S. 4033. A bill to provide for Kindergarden Plus programs; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today to introduce legislation to 
jump-start the chance for success in school for this Nation's low-
income children. Today I am introducing the Sandy Feldman Kindergarten 
Plus Act of 2006.
  The legislation I am introducing today will provide children below 
185 percent of the poverty line with additional time in kindergarten 
during the summer before and the summer after the traditional 
kindergarten school year, and help to ensure that more children enter 
school ready to succeed. The kindergarten year is an important time of 
transition for young children. It represents the first year of 
schooling for 98 percent of the children in the United States, and it 
marks the bridge between early childhood education and the primary 
grades of school.
  Many may ask why an initiative that will give an extra four months of 
kindergarten to low-income children? The answer is simple. Because too 
many low-income children today enter kindergarten unprepared for the 
year ahead and many children from low-income families are constantly 
outperformed by their wealthier peers.
  We can, however, do a better job of preparing less fortunate children 
for school. We can expose them to classroom practices and routines and 
the expectations for kindergarten behavior and protocol. We can 
introduce them to educational concepts and help them understand that 
classrooms have rules. We can expose them to literature, story time or 
circle time. We can help them understand that books are made up of 
printed words and that words are made up of individual letters. We can 
ask them questions to help develop their critical thinking skills, like 
what do you think will happen next in the story? We can offer them 
``show and tell'' to develop their oral language skills and ability to 
speak out loud in sequential sentences. Simply put, we need to provide 
them with a solid foundation that allows them to enter school with the 
skills necessary to become strong students.
  How does this translate into school readiness? About 85 percent of 
high-income children, compared to 39 percent of low-income children, 
can recognize letters of the alphabet upon arrival in kindergarten. 
About half the children of college graduates can identify the beginning 
sounds of words, but only 9 percent of the children whose parents 
didn't complete high school can recognize the beginning sounds of 
words. Low-income children often have a more limited vocabulary. By the 
time they are in first grade, children in low-income families have 
5,000 word vocabularies. In contrast, children from more affluent 
families enter school with vocabularies of 20,000 words. These are 
significant discrepancies.
  In the John Hopkins University report, ``Schools, Achievement, and 
Inequality: A Seasonal Perceptive,'' recommendations are made to 
improve the socioeconomic differences in the seasonality of children's 
learning over the school and summer months. The report that states 
during the summer, upper socioeconomic status (SES) children's skills 
continue to advance, but lower SES children's gains, on average, are 
flat. Pre-school and kindergarten can reduce the achievement gap 
associated with SES when children start first grade, but to help them 
keep up it requires extra resources and enrichment experiences. Summer 
education programs can build potential for economically disadvantaged 
children and their parents in support of academic development.
  What we know from the research is that children can enter 
kindergarten better prepared to learn. We may not be able to close the 
gap between low-income children and their wealthier peers, but we can 
certainly narrow it considerably. This is what this legislation strives 
to do.
  This legislation was named after Sandy Feldman who was a tireless 
advocate for children and public education who died last year after a 
long battle with cancer. Her commitment to social justice and her 
authority on urban education dates to her involvement with the civil 
rights movement.
  Sandy rose from her position as second grade elementary school 
teacher to become president of the 1.3 million-member American 
Federation of Teachers. She also knew that all too often, we don't give 
our schools the resources they need to make all students' dreams come 
to fruition. Her focus on early childhood education led her to develop 
the concept for this legislation and it was Sandy who spent countless 
hours developing the details to ensure this would be a high quality 
initiative.
  I am joined in introducing this legislation by my colleagues Senators 
Kennedy, Kerry, Lieberman, Durbin, Schumer, and Clinton. This bill is 
also supported by the American Federation of Teachers, the Parent 
Teacher Association, National Education Association, Council of Great 
City Schools, the Society for Research in Child Development, American 
Federation of State, County, and Municipal Employees, Service Employees 
of International Union, National Head Start Association, the Children's 
Defense Fund and Easter Seals. I urge my colleagues to join this effort 
and cosponsor the legislation. I encourage them to help give low-income 
children a jump-start on school success.
  I ask unanimous consent that the text of this 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 21620]]



                                S. 4033

       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 ``Kindergarten Plus Act of 
     2006''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Kindergarten has proven to be a beneficial experience 
     for children, putting children on a path that positively 
     influences their learning and development in later school 
     years.
       (2) Kindergarten and the years leading up to kindergarten 
     are critical in preparing children to succeed in elementary 
     school, especially if the children are from low-income 
     families or have other risks of difficulty in school.
       (3) Disadvantaged children, on average, lag behind other 
     children in literacy, numeracy, and social skills, even 
     before formal schooling begins.
       (4) For many children entering kindergarten, the 
     achievement gap between children from low-income households 
     compared to children from high-income households is already 
     evident.
       (5) Eighty-five percent of beginning kindergartners in the 
     highest socioeconomic group, compared to 39 percent in the 
     lowest socioeconomic group, can recognize letters of the 
     alphabet. Similarly, 98 percent of beginning kindergartners 
     in the highest socioeconomic group, compared to 84 percent of 
     their peers in the lowest socioeconomic group, can recognize 
     numbers and shapes.
       (6) Once disadvantaged children are in school, they learn 
     at the same rate as other children. Therefore, providing 
     disadvantaged children with additional time in kindergarten, 
     in the summer before such children ordinarily enter 
     kindergarten and in the summer before first grade, will help 
     schools close achievement gaps and accelerate the academic 
     progress of their disadvantaged students.
       (7) High quality, extended-year kindergarten that provides 
     children with enriched learning experiences is an important 
     factor in helping to close achievement gaps, rather than 
     having the gaps continue to widen.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Eligible student.--The term ``eligible student'' means 
     a child who--
       (A) is a 5-year old, or will be eligible to attend 
     kindergarten at the beginning of the next school year;
       (B) comes from a family with an income at or below 185 
     percent of the poverty line; and
       (C) is not already served by a high-quality program in the 
     summer before or the summer after the child enters 
     kindergarten.
       (2) Kindergarten plus.--The term ``Kindergarten Plus'' 
     means a voluntary full day of kindergarten, during the summer 
     before and during the summer after, the traditional 
     kindergarten school year (as determined by the State).
       (3) Local educational agency.--The term ``local educational 
     agency'' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801).
       (4) Parent.--The term ``parent'' includes a legal guardian 
     or other person standing in loco parentis (such as a 
     grandparent or stepparent with whom the child lives, or a 
     person who is legally responsible for the child's welfare).
       (5) Parental involvement.--The term ``parental 
     involvement'' means the participation of parents in regular, 
     2-way, and meaningful communication with school personnel 
     involving student academic learning and other school 
     activities, including ensuring that parents--
       (A) play an integral role in assisting their child's 
     learning;
       (B) are encouraged to be actively involved in their child's 
     education at school; and
       (C) are full partners in their child's education and are 
     included, as appropriate, in decisionmaking and on advisory 
     committees to assist in the education of their child.
       (6) Poverty line.--The term ``poverty line'' means the 
     poverty line (as defined by the Office of Management and 
     Budget, and revised annually in accordance with section 
     673(2) of the Community Services Block Grant Act (42 U.S.C. 
     9902(2))) applicable to a family of the size involved.
       (7) Eligible provider.--The term ``eligible provider'' 
     means a local educational agency or a private not-for-profit 
     agency or organization, with a demonstrated record in the 
     delivery of early childhood education services to preschool-
     age children, that provides high-quality early learning and 
     development experiences that--
       (A) are aligned with the expectations for what children 
     should know and be able to do when the children enter 
     kindergarten and grade 1, as established by the State 
     educational agency; or
       (B) in the case of an entity that is not a local 
     educational agency and that serves children who have not 
     entered kindergarten, meet the performance standards and 
     performance measures described in subparagraphs (A) and (B) 
     of subsection (a)(1), and subsection (b), of section 641A of 
     the Head Start Act (42 U.S.C. 9836a) or the prekindergarten 
     standards of the State where the entity is located.
       (8) School readiness.--The term ``school readiness'' means 
     the cognitive, social, emotional, approaches to learning, and 
     physical development of a child, including early literacy and 
     early mathematics skills, that prepares the child to learn 
     and succeed in elementary school.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (10) State educational agency.--The term ``State 
     educational agency'' has the meaning given the term in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7801).

     SEC. 4. GRANTS TO STATE EDUCATIONAL AGENCIES AUTHORIZED.

       (a) In General.--The Secretary is authorized to award 
     grants, on a competitive basis, to State educational agencies 
     to enable the State educational agencies to provide 
     Kindergarten Plus within the State.
       (b) Sufficient Size.--To the extent possible, the Secretary 
     shall ensure that each grant awarded under this section is of 
     sufficient size to enable the State educational agency 
     receiving the grant to provide Kindergarten Plus to all 
     eligible students served by the local educational agencies 
     within the State with the highest concentrations of eligible 
     students.
       (c) Minimum Amount.--The Secretary shall not award a grant 
     to a State educational agency under this section in an amount 
     that is less than $500,000.
       (d) State Use of Funds.--A State educational agency shall 
     use--
       (1) not more than 3 percent of the grant funds received 
     under this Act for administration of the Kindergarten Plus 
     programs supported under this Act;
       (2) not more than 5 percent of the grant funds received 
     under this Act to develop professional development activities 
     and curricula for teachers and staff of Kindergarten Plus 
     programs in order to develop a continuum of developmentally 
     appropriate curricula and practices for preschool, 
     kindergarten, and grade 1 that ensures--
       (A) an effective transition to kindergarten and to grade 1 
     for students; and
       (B) appropriate expectations for the students' learning and 
     development as the students make the transition to 
     kindergarten and to grade 1; and
       (3) the remainder of the grant funds to award subgrants to 
     local educational agencies.
       (e) Priority.--In awarding grants under this Act the 
     Secretary shall give priority to State educational agencies 
     that--
       (1) on their own or in combination with other government 
     agencies, provide full-day kindergarten to all kindergarten-
     age children who are from families with incomes below 185 
     percent of the poverty line within the State; or
       (2) demonstrate progress toward providing full-day 
     kindergarten to all kindergarten-age children who are from 
     families with incomes below 185 percent of the poverty line 
     within the State by submitting a plan that shows how the 
     State educational agency will, at a minimum, double the 
     number of such children that were served by a full-day 
     kindergarten program in the school year preceding the school 
     year for which assistance is first sought.

     SEC. 5. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

       (a) In General.--Each State educational agency that 
     receives a grant under this Act--
       (1) shall reserve an amount sufficient to continue to fund 
     multiyear subgrants awarded under this section; and
       (2) shall award subgrants to local educational agencies 
     within the State to enable the local educational agencies to 
     pay the Federal share of the costs of carrying out 
     Kindergarten Plus programs for eligible students.
       (b) Priority.--In awarding subgrants under this section the 
     State educational agency shall give priority to local 
     educational agencies--
       (1) serving the greatest number or percentage of 
     kindergarten-age children who are from families with incomes 
     below 185 percent of the poverty line, based on data from the 
     most recent school year; and
       (2) that propose to significantly reduce the class size and 
     student-to-teacher ratio of the classes in their Kindergarten 
     Plus programs below the average class size and student-to-
     teacher ratios of kindergarten classes served by the local 
     educational agencies.
       (c) Federal Share.--The Federal share of the costs of 
     carrying out a Kindergarten Plus program shall be--
       (1) 100 percent for the first, second, and third years of 
     the program;
       (2) 85 percent for the fourth year of the program; and
       (3) 75 percent for the fifth year of the program.
       (d) In-Kind Contributions.--The non-Federal share of the 
     costs of carrying out a Kindergarten Plus program may be in 
     the form of in-kind contributions.

     SEC. 6. STATE APPLICATION.

       (a) In General.--In order to receive a grant under this 
     Act, a State educational agency shall submit an application 
     to the Secretary at such time and containing such information 
     as the Secretary determines appropriate.

[[Page 21621]]

       (b) Consultation.--The application shall be developed by 
     the State educational agency in consultation with 
     representatives of early childhood education programs, early 
     childhood education teachers, principals, pupil services 
     personnel, administrators, paraprofessionals, other school 
     staff, early childhood education providers (including Head 
     Start agencies, State prekindergarten program staff, and 
     child care providers), teacher organizations, parents, and 
     parent organizations.
       (c) Contents.--At a minimum, the application shall 
     include--
       (1) a description of developmentally appropriate teaching 
     practices and curricula for children that will be put in 
     place to be used by local educational agencies and eligible 
     providers offering Kindergarten Plus programs to carry out 
     this Act;
       (2) a general description of the nature of the Kindergarten 
     Plus programs to be conducted with funds received under this 
     Act, including--
       (A) the number of hours each day and the number of days 
     each week that children in each Kindergarten Plus program 
     will attend the program; and
       (B) if a Kindergarten Plus program meets for less than 9 
     hours a day, how the needs of full-time working families will 
     be addressed;
       (3) goals and objectives to ensure that high-quality 
     Kindergarten Plus programs are provided;
       (4) an assurance that students enrolled in Kindergarten 
     Plus programs funded under this Act will receive additional 
     comprehensive services (such as nutritional services, health 
     care, and mental health care), as needed; and
       (5) a description of how--
       (A) the State educational agency will coordinate and 
     integrate services provided under this Act with other 
     educational programs, such as Even Start, Head Start, Reading 
     First, Early Reading First, State-funded preschool programs, 
     preschool programs funded under section 619 or other 
     provisions of part B of the Individuals with Disabilities 
     Education Act (20 U.S.C. 1419, 1411 et seq.), and 
     kindergarten programs;
       (B) the State will provide professional development for 
     teachers and staff of local educational agencies and eligible 
     providers that receive subgrants under this Act regarding how 
     to address the school readiness needs of children (including 
     early literacy, early mathematics, and positive behavior) 
     before the children enter kindergarten, throughout the school 
     year, and into the summer after kindergarten;
       (C) the State will assist Kindergarten Plus programs to 
     provide exemplary parent education and parental involvement 
     activities such as training and materials to assist parents 
     in being their children's first teachers at home or home 
     visiting;
       (D) the State will conduct outreach to parents with 
     eligible students, including parents whose native language is 
     not English, parents of children with disabilities, and 
     parents of migratory children; and
       (E) the State educational agency will ensure that each 
     Kindergarten Plus program uses developmentally appropriate 
     practices, including practices and materials that are 
     culturally and linguistically appropriate for the population 
     of children being served in the program.

     SEC. 7. LOCAL APPLICATION.

       (a) In General.--In order to receive a subgrant under this 
     Act, a local educational agency shall submit an application 
     to the State educational agency at such time and containing 
     such information as the State educational agency determines 
     appropriate.
       (b) Consultation.--The application shall be developed by 
     the local educational agency in consultation with early 
     childhood education teachers, principals, pupil services 
     personnel, administrators, paraprofessionals, other school 
     staff, early childhood education providers (including Head 
     Start agencies, State prekindergarten program staff, and 
     child care providers), teacher organizations, parents, and 
     parent organizations.
       (c) Contents.--At a minimum, the application shall include 
     a description of--
       (1) the standards, research-based and developmentally 
     appropriate curricula, teaching practices, and ongoing 
     assessments for the purposes of improving instruction and 
     services, to be used by the local educational agency that--
       (A) are aligned with the State expectations for what 
     children should know and be able to do when the children 
     enter kindergarten and grade 1, as set by the State 
     educational agency; and
       (B) include--
       (i) language skills, including an expanded use of 
     vocabulary;
       (ii) interest in and appreciation of books, reading, 
     writing alone or with others, and phonological and phonemic 
     awareness;
       (iii) premathematics knowledge and skills, including 
     aspects of classification, seriation, number sense, spatial 
     relations, and time;
       (iv) other cognitive abilities related to academic 
     achievement;
       (v) social and emotional development, including self-
     regulation skills;
       (vi) physical development, including gross and fine motor 
     development skills;
       (vii) in the case of limited English proficiency, progress 
     toward the acquisition of the English language; and
       (viii) approaches to learning;
       (2) how the local educational agency will ensure that the 
     Kindergarten Plus program uses curricula and practices that--
       (A) are developmentally, culturally, and linguistically 
     appropriate for the population of children served in the 
     program; and
       (B) are aligned with the State learning standards and 
     expectations for children in kindergarten and grade 1;
       (3) how the Kindergarten Plus program will improve the 
     school readiness of children served by the local educational 
     agency under this Act, especially in mathematics and reading;
       (4) how the Kindergarten Plus program will provide 
     continuity of services and learning for children who were 
     previously served by a different program;
       (5) how the local educational agency will ensure that the 
     Kindergarten Plus program has appropriate services and 
     accommodations in place to serve children with disabilities 
     and children who are limited English proficient;
       (6) how the local educational agency will perform a needs 
     assessment to avoid duplication with other programs within 
     the geographic area served by the local educational agency;
       (7) how the local educational agency will--
       (A) transition Kindergarten Plus participants into local 
     elementary school programs and services;
       (B) ensure the development and use of systematic, 
     coordinated records on the educational development of each 
     child participating in the Kindergarten Plus program through 
     periodic meetings and communications among--
       (i) Kindergarten Plus program teachers;
       (ii) elementary school staff; and
       (iii) local early childhood education program providers, 
     including Head Start agencies, State prekindergarten program 
     staff, and center-based and family child care providers;
       (C) provide parent and child orientation sessions conducted 
     by teachers and staff; and
       (D) provide a qualified staff person to be in charge of 
     coordinating the transition services;
       (8) how the local educational agency will provide 
     instructional and environmental accommodations in the 
     Kindergarten Plus program for children who are limited 
     English proficient, children with disabilities, migratory 
     children, neglected or delinquent youth, Indian children 
     served under part A of title VII of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7401 et seq.), 
     homeless children, and immigrant children;
       (9) how the local educational agency will conduct outreach 
     to parents of eligible students, including parents whose 
     native language is not English, parents of children with 
     disabilities, and parents of migratory children, which may 
     include--
       (A) activities to provide parents early exposure to the 
     school environment, including meetings with teachers and 
     staff;
       (B) activities to better engage and inform parents on the 
     benefits of Kindergarten Plus and other programs; and
       (C) other efforts to ensure that parents have a level of 
     comfort with the Kindergarten Plus program and the school 
     environment;
       (10) how the local educational agency will assist the 
     Kindergarten Plus program to provide exemplary parent 
     education and parental involvement activities such as 
     training and materials to assist parents in being their 
     children's first teachers at home or home visiting; and
       (11) how the local educational agency will work with local 
     center-based and family child care providers and Head Start 
     agencies to ensure--
       (A) the nonduplication of programs and services; and
       (B) that the needs of working families are met through 
     child care provided before and after the Kindergarten Plus 
     program.

     SEC. 8. LOCAL REQUIREMENTS AND PROVISIONS.

       (a) Local Uses of Funds.--A local educational agency that 
     receives a subgrant under this Act shall use the subgrant 
     funds for the following:
       (1) The operational and program costs associated with the 
     Kindergarten Plus program as described in the application to 
     the State educational agency.
       (2) Personnel services, including teachers, 
     paraprofessionals, and other staff as needed.
       (3) Additional services, as needed, including snacks and 
     meals, mental health care, health care, linguistic 
     assistance, special education and related services, and 
     transportation services associated with the needs of the 
     children in the program.
       (4) Transition services to ensure children make a smooth 
     transition into first grade and proper communication is made 
     with the elementary school on the educational development of 
     each child.
       (5) Outreach and recruitment activities, including 
     community forums and public service announcements in local 
     media in various languages if necessary to ensure that all 
     individuals in the community are aware of the availability of 
     such program.
       (6) Parental involvement programs, including materials and 
     resources to help parents become more involved in their 
     child's learning at home.

[[Page 21622]]

       (7) Extended day services for the eligible students of 
     working families, including working with existing programs in 
     the community to coordinate services if possible.
       (8) Child care services, provided through coordination with 
     local center-based child care and family child care 
     providers, and Head Start agencies, before and after the 
     Kindergarten Plus program for the children participating in 
     the program, to accommodate the schedules of working 
     families.
       (9) Enrichment activities, such as--
       (A) art, music, and other creative arts;
       (B) outings and field trips; and
       (C) other experiences that support children's curiosity, 
     motivation to learn, knowledge, and skills.
       (b) Eligible Provider Grants and Applications.--The local 
     educational agency may use subgrant funds received under this 
     Act to award a grant to an eligible provider to enable the 
     eligible provider to carry out a Kindergarten Plus program 
     for the local educational agency. Each eligible provider 
     desiring a grant under this subsection shall submit an 
     application to the local educational agency that contains the 
     descriptions set forth in section 7 as applied to the 
     eligible provider.
       (c) Continuity.--In carrying out a Kindergarten Plus 
     program under this Act, a local educational agency is 
     encouraged to explore ways to develop continuity in the 
     education of children, for instance by keeping, if possible, 
     the same teachers and personnel from the summer before 
     kindergarten, through the kindergarten year, and during the 
     summer after kindergarten.
       (d) Coordination.--In carrying out a Kindergarten Plus 
     program under this Act, a local educational agency shall 
     coordinate with existing programs in the community to provide 
     extended care and comprehensive services for children and 
     their families in need of such care or services.

     SEC. 9. TEACHER AND PERSONNEL QUALITY STANDARDS.

       To be eligible for a subgrant under this Act, each local 
     educational agency shall ensure that--
       (1) each Kindergarten Plus classroom has--
       (A) a highly qualified teacher, as defined in section 9101 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7801); or
       (B) if an eligible provider who is not a local educational 
     agency is providing the Kindergarten Plus program in 
     accordance with section 8(b), a teacher that, at a minimum, 
     has a bachelor's degree in early childhood education or a 
     related field and experience in teaching children of this 
     age;
       (2) a qualified paraprofessional that meets the 
     requirements for paraprofessionals under section 1119 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6319), is in each Kindergarten Plus classroom;
       (3) Kindergarten Plus teachers and paraprofessionals are 
     compensated on a salary scale comparable to kindergarten 
     through grade 3 teachers and paraprofessionals in public 
     schools served by the local educational agency; and
       (4) Kindergarten Plus class sizes do not exceed the class 
     size and ratio parameters set at the State or local level for 
     the traditional kindergarten program.

     SEC. 10. DIRECT GRANTS TO LOCAL EDUCATIONAL AGENCIES.

       (a) Grants Authorized.--If a State educational agency does 
     not apply for a grant under this Act or does not have an 
     application approved under section 6, then the Secretary is 
     authorized to award a grant to a local educational agency 
     within the State to enable the local educational agency to 
     pay the Federal share of the costs of carrying out a 
     Kindergarten Plus program.
       (b) Eligibility.--A local educational agency shall be 
     eligible to receive a grant under this section if the local 
     educational agency operates a full-day kindergarten program 
     that, at a minimum, is targeted to kindergarten-age children 
     who are from families with incomes below 185 percent of the 
     poverty line within the State.
       (c) Application.--In order to receive a grant under 
     subsection (a), a local educational agency shall submit to 
     the Secretary an application that--
       (1) contains the descriptions set forth in section 7; and
       (2) includes an assurance that the Kindergarten Plus 
     program funded under such grant will serve eligible students.
       (d) Applicability.--Sections 8 and 9 shall apply to a local 
     educational agency receiving a grant under this section in 
     the same manner as the sections apply to a local educational 
     agency receiving a subgrant under section 5(a).

     SEC. 11. EVALUATION, COLLECTION, AND DISSEMINATION OF 
                   INFORMATION.

       (a) In General.--Each State educational agency that 
     receives a grant under this Act, in cooperation with the 
     local educational agencies in the State that receive a 
     subgrant under this Act, shall create an evaluation mechanism 
     to determine the effectiveness of the Kindergarten Plus 
     programs in the State, taking into account--
       (1) information from the local needs assessment, conducted 
     in accordance with section 7(c)(6), including--
       (A) the number of eligible students in the geographic area;
       (B) the number of children served by Kindergarten Plus 
     programs, disaggregated by family income, race, ethnicity, 
     native language, and prior enrollment in an early childhood 
     education program; and
       (C) the number of children with disabilities served by 
     Kindergarten Plus programs;
       (2) the recruitment of teachers and staff for Kindergarten 
     Plus programs, and the retention of such personnel in the 
     programs for more than 1 year;
       (3) the provision of services for children and families 
     served by Kindergarten Plus programs, including parent 
     education, home visits, and comprehensive services for 
     families who need such services;
       (4) the opportunities for professional development for 
     teachers and staff; and
       (5) the curricula used in Kindergarten Plus programs.
       (b) Comparison.--The evaluation process may include 
     comparison groups of similar children who do not participate 
     in a Kindergarten Plus program.
       (c) Information Collection and Reporting.--The information 
     necessary for the evaluation shall be collected yearly by the 
     State and reported every 2 years by the State to the 
     Secretary.
       (d) Analysis of Effectiveness.--The Secretary shall conduct 
     an analysis of the overall effectiveness of the programs 
     assisted under this Act and make the analysis available to 
     Congress, and the public, biannually.

     SEC. 12. SUPPLEMENT NOT SUPPLANT.

       Funds made available under this Act shall be used to 
     supplement, not supplant, other Federal, State, or local 
     funds available to carry out activities under this Act.

     SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

       For the purpose of carrying out this Act, there are 
     authorized to be appropriated $1,500,000,000 for fiscal year 
     2007 and such sums as may be necessary for each of the fiscal 
     years 2008 through 2012.
                                 ______
                                 
      By Mr. REID (for himself and Mrs. Clinton):
  S. 4034. A bill to amend title 18 of the United States Code to 
prohibit certain types of vote tampering; to the Committee on the 
Judiciary.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 4034

       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 ``Voter Suppression, Ballot 
     Hacking, and Election Fraud Prevention Act''.

     SEC. 2. PROHIBITION ON VOTE TAMPERING.

       (a) In General.--Chapter 29 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 612. Vote tampering

       ``(a) In General.--Whoever knowingly and willfully 
     interferes with, affects, attempts to interfere with, or 
     attempts to affect an election of a candidate or a ballot 
     initiative by tampering with a voting system, discarding 
     ballots, or altering a vote shall be fined under this title 
     or imprisoned for not more than 20 years, or both.
       ``(b) Application.--This section applies only to elections 
     described in, and candidates described in, section 11(e)(2) 
     of the Voting Rights Act of 1965 (42 U.S.C. 1973i(e)(2)).
       ``(c) Civil Action.--Any individual whose right to vote is 
     interfered with by reason of a violation of this section may 
     bring a civil action in Federal court against the violator 
     and recover damages not to exceed $10,000.
       ``(d) Definition.--In this section, the terms `vote' and 
     `voting' have the meanings given the terms in section 14(c) 
     of the Voting Rights Act of 1965 (42 U.S.C. 1973l(c)).''.
       (b) Chapter Analysis.--The chapter analysis for chapter 29 
     of title 18, United States Code, is amended by inserting 
     after the item for section 612 the following:

``612. Vote tampering.''.
                                 ______
                                 
      By Mr. SARBANES:
  S. 4038. A bill to establish the bipartisan and independent 
Commission on Global Resources, Environment, and Security, and for 
other purposes; to the Committee on Environment and Public Works.
  Mr. SARBANES. Mr. President, today I am introducing legislation to 
establish a Commission on Global Resources, Environment and Security. 
The goal of the Commission is to address one of the most serious, long- 
term threats facing our Nation--the degradation of the earth's natural 
life support systems--and to make recommendations for a coordinated, 
comprehensive, long-range national policy and new strategies to promote 
global environmental security.
  In March 2005, more than 1,300 scientists from 95 countries around 
the

[[Page 21623]]

world completed the largest and most comprehensive study of the health 
of the earth's ecosystems ever undertaken. Known as the Millennium 
Ecosystem Assessment, the four-year study found that the natural 
systems that support life on earth--our waters, wildlife and fisheries, 
air and lands--have been degraded more rapidly and extensively over the 
past five decades than in any comparable period of time in history. The 
result has been a substantial loss of biodiversity, a significant 
increase in atmospheric concentration of carbon dioxide, depletion of 
world fisheries and water supplies, excessive nutrient pollution of 
rivers and coastal waters, and increased risk of emergence of new 
diseases. The report also found that, unless substantial actions are 
taken in policies, institutions and practices in the near future to 
reverse the degradation, the pressure on the planet's ecosystems will 
continue to increase. In the next 50 years, the world population is 
expected to grow from approximately 6 billion to more than 9 billion 
people. Global demand for food is projected to increase by 70-80 
percent. Energy consumption is projected to double by 2035 at current 
growth rates. Globally, as much as 25 percent of freshwater use and 35 
percent of irrigation withdrawal is supplied from unsustainable 
sources. An estimated 7 billion people could face water shortages.
  Experts agree that these environmental threats also have profound 
implications for our national security. According to former Secretary 
of State Colin Powell . . . ``poverty, destruction of the environment 
and despair are destroyers of people, of societies, of nations, a cause 
of instability as an unholy trinity that can destabilize countries and 
destabilize entire regions.''
  As the world's wealthiest nation, the U.S. has the responsibility and 
the unique capacity to lead the world toward a more sustainable future. 
The legislation which I am introducing today represents the important 
step in that direction. It provides for the establishment of an 
independent commission to examine the state of scientific understanding 
and current efforts to protect the global environment, to assess the 
impact of continued global environmental deterioration on U.S. 
interests, and to make recommendations to address these threats. The 
last time the Federal Government took a broad in-depth review of 
international environment and development issues was in the 1970s.
  At the launch of Millenium Ecosystem Assessment, Secretary General of 
the United Nations, Kofi Annan, stated that, ``only by understanding 
the environment and how it works, can we make the necessary decisions 
to protect it.'' The concept of such a Commission is strongly supported 
by a broad range of leading scientific and foreign policy leaders who 
have signed the ``Earth Legacy Declaration.'' They assert that: ``We 
need a national discussion on the fundamental questions of what legacy 
we will leave our children and grandchildren, and what actions we must 
take as a nation to ensure that the world we hand down to them is as 
safe, healthy, and bountiful as the one we inherited.''
  We need a new consensus and a foundation upon which to build a 
renewed U.S. commitment to protect the global environment. I hope my 
colleagues will join me in this measure to establish this Commission on 
Global Resources, Environment, and Security.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4038

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Global Resources, 
     Environment, and Security Commission Act of 2006''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) humans are placing increasing and potentially 
     unsustainable pressures on--
       (A) the Earth;
       (B) ecosystems; and
       (C) natural resources;
       (2) economic prosperity, human health, and peaceful 
     international relations depend on the continued existence 
     of--
       (A) a clean environment; and
       (B) the sustainability of natural resources and ecosystem 
     services;
       (3) increasing scarcities of natural resources and 
     environmental degradation can cause economic losses and 
     contribute to--
       (A) disease;
       (B) famine;
       (C) increased vulnerability to natural disasters;
       (D) mass migration;
       (E) disruption of trade; and
       (F) violent conflict;
       (4) those potential disasters can--
       (A) weaken all members of the international community; and
       (B) create serious threats to the national security of the 
     United States;
       (5) many scientific studies reveal that the rapid increases 
     in global population and the new global security problems 
     have, and will likely continue to have, serious impacts on 
     the United States, including--
       (A) inadequate access to sources of healthy freshwater;
       (B) loss of biodiversity;
       (C) climate change;
       (D) marine overfishing and pollution;
       (E) transboundary air pollution;
       (F) nuclear and chemical contamination;
       (G) deforestation;
       (H) invasive species migration; and
       (I) soil degradation and desertification;
       (6) the complex and interconnected nature of those problems 
     requires new forms of cooperation between--
       (A) the stakeholders of the United States; and
       (B) the United States and other countries;
       (7) according to the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.), it is the national policy of 
     the United States--
       (A) to recognize the worldwide and long-range character of 
     environmental problems; and
       (B) to lend appropriate support to initiatives, 
     resolutions, and programs designed to maximize international 
     cooperation in anticipating and preventing a decline in the 
     quality of the world environment;
       (8) the United States is in a unique position to be able to 
     share scientific and technical expertise on the world stage 
     in ways that--
       (A) benefit all persons; and
       (B) provide opportunities in the United States for--
       (i) economic growth;
       (ii) investment; and
       (iii) innovation; and
       (9) the leadership of the United States on the advancement 
     of global environmental security serves the domestic 
     interests of the United States while strengthening 
     relationships between the United States and other countries.
       (b) Purpose.--The purpose of this Act is to establish a 
     bipartisan and independent commission to make recommendations 
     for a coordinated, comprehensive, and long-range national 
     policy for new and existing strategies initiated by the 
     United States to promote global environmental security.

     SEC. 3. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established a commission to be 
     known as the ``Commission on Global Resources, Environment, 
     and Security'' (referred to in this Act as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of 18 
     members who are knowledgeable in matters relating to global 
     environmental security and population (including individuals 
     with experience from the Federal Government, State, and local 
     governments, academic and technical institutions, and public 
     interest organizations), of whom--
       (A) 2 members shall be appointed by the President, of whom 
     not more than 1 may be from the same political party as the 
     President;
       (B) 4 members shall be appointed by the majority leader of 
     the Senate, in consultation with the Chairpersons of--
       (i) the Committee on Environment and Public Works of the 
     Senate;
       (ii) the Committee on Foreign Relations of the Senate;
       (iii) the Committee on Commerce, Science, and 
     Transportation of the Senate; and
       (iv) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (C) 4 members shall be appointed by the minority leader of 
     the Senate, in consultation with the ranking members of--
       (i) the Committee on Environment and Public Works of the 
     Senate;
       (ii) the Committee on Foreign Relations of the Senate;
       (iii) the Committee on Commerce, Science, and 
     Transportation of the Senate; and
       (iv) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (D) 4 members shall be appointed by the Speaker of the 
     House of Representatives, in consultation with the 
     Chairpersons of--
       (i) the Committee on Energy and Commerce of the House of 
     Representatives;
       (ii) the Committee on International Relations of the House 
     of Representatives;
       (iii) the Committee on Resources of the House of 
     Representatives;
       (iv) the Committee on Science of the House of 
     Representatives;
       (v) the Committee on Homeland Security of the House of 
     Representatives; and

[[Page 21624]]

       (vi) the Committee on Government Reform of the House of 
     Representatives; and
       (E) 4 members shall be appointed by the minority leader of 
     the House of Representatives, in consultation with the 
     ranking members of--
       (i) the Committee on Energy and Commerce of the House of 
     Representatives;
       (ii) the Committee on International Relations of the House 
     of Representatives;
       (iii) the Committee on Resources of the House of 
     Representatives;
       (iv) the Committee on Science of the House of 
     Representatives;
       (v) the Committee on Homeland Security of the House of 
     Representatives; and
       (vi) the Committee on Government Reform of the House of 
     Representatives.
       (2) Representation of commission.--To the extent consistent 
     with paragraph (1), the membership of the Commission shall be 
     balanced by area of expertise.
       (3) Prohibition on federal government employment.--A member 
     of the Commission appointed under paragraph (1)(A) shall not 
     be an employee or former employee of the Federal Government.
       (4) Considerations for appointment.--
       (A) Background of members.--
       (i) In general.--All members of the Commission shall have 
     experience in--

       (I) State and local governments;
       (II) academic and technical institutions;
       (III) businesses and industries relating to resource and 
     economic development; or
       (IV) public interest organizations.

       (ii) Preference to individuals with interdisciplinary 
     expertise.--In appointing members to the Commission, 
     preference shall be given to individuals who have 
     interdisciplinary experience.
       (B) Political affiliation of members.--Members of the 
     Commission shall be appointed so that not more than 9 members 
     of the Commission are members of any 1 political party.
       (5) Date of appointments.--The appointment of a member of 
     the Commission shall be made not later than March 30, 2007.
       (6) Term; vacancies.--
       (A) Term.--A member of the Commission shall be appointed 
     for the life of the Commission.
       (B) Vacancies.--
       (i) In general.--A vacancy on the Commission shall be 
     filled in the same manner in which the original appointment 
     was made.
       (ii) Partial term.--A member appointed to fill a vacancy on 
     the Commission shall serve for the remainder of the term for 
     which the predecessor of the member was appointed.
       (7) Initial meeting.--Not later than 30 days after the date 
     on which all members of the Commission have been appointed, 
     the Commission shall hold the initial meeting of the 
     Commission.
       (8) Meetings.--
       (A) In general.--The Commission shall meet--
       (i) at least twice each year; or
       (ii) at the call of the Chairperson or the majority of the 
     members of the Commission.
       (B) Public access to meetings.--
       (i) In general.--Except as provided in clause (ii), each 
     meeting of the Commission shall be open to the general 
     public.
       (ii) Exception.--If a meeting of the Commission addresses a 
     matter described in section 552b(c) of title 5, United States 
     Code, the Commission may close the meeting, or a portion of 
     the meeting, to the general public.
       (9) Quorum.--A majority of voting members shall constitute 
     a quorum, but a lesser number may hold meetings.
       (10) Chairperson and vice chairperson.--
       (A) Election.--The Commission shall elect the Chairperson 
     and the Vice Chairperson of the Commission on an annual 
     basis.
       (B) Absence of the chairperson.--The Vice Chairperson shall 
     serve as the Chairperson in the absence of the Chairperson.
       (11) Voting.--The Commission shall act only on an 
     affirmative vote of a majority of the voting members of the 
     Commission.

     SEC. 4. DUTIES.

       (a) Study.--The Commission shall--
       (1) review and affirm current scientific understanding on 
     the health of the global environment and the long-term 
     availability of natural resources through the use of 
     independent, consensus-based assessments and peer reviewed 
     studies undertaken by the United States, the United Nations, 
     and any other international entity;
       (2) study the impacts of--
       (A) global and transnational environmental problems, 
     natural resource scarcity, and global population pressure on 
     the interests of the United States, including--
       (i) national security;
       (ii) public health;
       (iii) industry and trade; and
       (iv) international relations; and
       (B) the actions of the United States on global 
     environmental security;
       (3) assess--
       (A) the effectiveness of Federal and State efforts to 
     enhance global environmental security, including--
       (i) the integration of related activities;
       (ii) the interagency coordination of related activities; 
     and
       (iii) the funding of related activities;
       (B) the evolving roles of--
       (i) government;
       (ii) business; and
       (iii) nongovernmental organizations; and
       (C) the adequacy of efforts initiated by public and private 
     partnerships that strive to meet the goals of--
       (i) global environmental protection;
       (ii) natural resource sustainability; and
       (iii) economic prosperity; and
       (4) determine the progress of the United States in--
       (A) achieving relevant international goals and obligations; 
     and
       (B) meeting the challenges outlined by the scientific 
     studies described under paragraph (1).
       (b) Recommendations.--The Commission shall develop 
     recommendations for creating a coordinated, comprehensive, 
     and long-range national policy that promotes global 
     environmental security.
       (c) Report.--
       (1) In general.--By March 30, 2009, the Commission shall 
     submit to the President and Congress a report that contains--
       (A) a detailed statement of the findings and conclusions of 
     the Commission;
       (B) a summary of public comments; and
       (C) the recommendations of the Commission for such 
     legislation and administrative actions as the Commission 
     considers appropriate.
       (2) Publication of report.--Not later than 90 days before 
     submitting the final report of the Commission to the 
     President and Congress, the Commission shall publish a copy 
     of the report in the Federal Register.
       (3) Public comment.--
       (A) In general.--Before submitting the report of the 
     Commission to the President and Congress, the Commission 
     shall--
       (i) make a draft of the report available for public comment 
     for a period of not less than 60 days; and
       (ii) consider public comments relating to the draft of the 
     report.
       (B) Availability of report.--A copy of the report of the 
     Commission shall remain available for inspection--
       (i) in the offices of the Commission; and
       (ii) through electronically accessible formats and means, 
     such as the World Wide Web.
       (4) Congressional review.--
       (A) In general.--Not later than 90 days before submitting 
     the final report of the Commission to the President and 
     Congress, the Commission shall provide copies of the report 
     to the Chairpersons and ranking members of--
       (i) the Committee on Environment and Public Works of the 
     Senate;
       (ii) the Committee on Foreign Relations of the Senate;
       (iii) the Committee on Commerce, Science, and 
     Transportation of the Senate;
       (iv) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (v) the Committee on Energy and Commerce of the House of 
     Representatives;
       (vi) the Committee on International Relations of the House 
     of Representatives;
       (vii) the Committee on Resources of the House of 
     Representatives;
       (viii) the Committee on Science of the House of 
     Representatives;
       (ix) the Committee on Homeland Security of the House of 
     Representatives; and
       (x) the Committee on Government Reform of the House of 
     Representatives.
       (B) Opportunity for comment.--Before submitting the report 
     to the President and Congress, the Commission shall provide 
     each chairperson and ranking member of a committee described 
     in subparagraph (A) with an opportunity to comment on the 
     report.

     SEC. 5. POWERS.

       (a) Hearings.--
       (1) In general.--The Commission or, at the direction of the 
     Commission, any subcommittee or member of the Commission, 
     may, for the purpose of carrying out this Act hold such 
     hearings, meet and act at such times and places, take such 
     testimony, receive such evidence, and administer such oaths 
     as the Commission or such subcommittee or members considers 
     advisable.
       (2) Notice; minutes; public availability of documents.--
       (A) Notice.--Each open meeting of the Commission shall be 
     preceded by timely public notice in the Federal Register of 
     the time, place, and subject of the meeting.
       (B) Minutes.--Minutes of each meeting shall--
       (i) be kept by the Commission; and
       (ii) contain--

       (I) a record of the individuals present;
       (II) a description of the discussion that occurred during 
     the meeting; and
       (III) copies of all statements filed during the meeting.

       (iii) Availability.--Subject to section 552 of title 5, 
     United States Code, the minutes and records of all meetings 
     and other documents made available to or prepared for the 
     Commission shall be available for public inspection and 
     copying at a single location in the offices of the 
     Commission.
       (b) Information From Federal Agencies.--
       (1) In general.--The Commission may secure directly from a 
     Federal agency such information as the Commission considers 
     necessary to carry out this Act.
       (2) Provision of information.--On request of the 
     Chairperson of the Commission, the head of the agency shall 
     provide the information to the Commission.

[[Page 21625]]

       (c) Establishment of Subcommittees.--
       (1) In general.--The Commission may establish 1 or more 
     subcommittees to provide staff support and otherwise assist 
     in carrying out the responsibilities of the Commission.
       (2) Political affiliation of subcommittee members.--Members 
     of a subcommittee shall be appointed so that not more than 
     \1/2\ of the members of the subcommittee are members of any 1 
     political party.
       (d) Establishment of Multidisciplinary Science, Economic, 
     and Technical Advisory Panel.--
       (1) In general.--To assist the Commission in carrying out 
     the duties of the Commission under this Act, the Commission 
     may establish a multidisciplinary science, economic, and 
     technical advisory panel (referred to in this Act as the 
     ``Advisory Panel'').
       (2) Composition of advisory panel.--The Advisory Panel 
     shall be composed of individuals appointed by the Commission, 
     each of whom shall have expertise in--
       (A) biological science;
       (B) marine science;
       (C) atmospheric science;
       (D) environmental toxicology;
       (E) epidemiology;
       (F) biogeochemistry;
       (G) energy and water security;
       (H) renewable energy;
       (I) social science; or
       (J) economics.
       (3) Appointment.--The members of the Advisory Panel shall 
     be appointed by a majority vote of all members of the 
     Commission.
       (4) Use of best available data.--The Advisory Panel shall 
     ensure that the scientific information considered by the 
     Commission is based on the best available data.
       (e) Contracts.--The Commission may make or enter into 
     contracts, leases, or other legal agreements to carry out 
     this Act.
       (f) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other agencies of the Federal Government.
       (g) Gifts.--The Commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 6. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--
       (1) Non-federal employees.--A member of the Commission who 
     is not an officer or employee of the Federal Government shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the Commission.
       (2) Federal employees.--A member of the Commission who is 
     an officer or employee of the Federal Government shall serve 
     without compensation in addition to the compensation received 
     for the services of the member as an officer or employee of 
     the Federal Government.
       (b) Travel Expenses.--A member of the Commission shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for an employee of an agency 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from the home or regular place of business 
     of the member in the performance of the duties of the 
     Commission.
       (c) Staff.--
       (1) In general.--The Chairperson of the Commission may, 
     without regard to the civil service laws (including 
     regulations), appoint and terminate an Executive Director and 
     such other additional personnel as are necessary to enable 
     the Commission to perform the duties of the Commission.
       (2) Confirmation of executive director.--The employment of 
     an Executive Director shall be subject to confirmation by the 
     Commission.
       (d) Experts and Consultants.--
       (1) In general.--The Commission may obtain the services of 
     experts and consultants in the private and nonprofit sectors 
     in accordance with section 3109 of title 5, United States 
     Code.
       (2) Compensation of experts and consultants.--A consultant 
     or expert described in paragraph (1) shall be compensated at 
     a rate equal to the daily equivalent of the annual rate of 
     basic pay prescribed for level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code, for each 
     day (including travel time) during which the member is 
     engaged in the performance of the duties of the Commission.
       (e) Detail of Government Employees.--
       (1) Federal employees.--
       (A) In general.--At the request of the Commission, the head 
     of any Federal agency may detail, on a reimbursable or 
     nonreimbursable basis, any of the personnel of the agency to 
     the Commission to assist the Commission in carrying out the 
     duties of the Commission under this Act.
       (B) Civil service status.--The detail of an employee under 
     subparagraph (A) shall be without interruption or loss of 
     civil service status or privilege.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated to carry out this 
     Act $8,500,000 for the period of fiscal years 2007 through 
     2010, to remain available until expended.

     SEC. 8. TERMINATION OF COMMISSION.

       (a) Date of Termination.--The Commission shall terminate 30 
     days after the date on which the Commission submits the 
     report of the Commission under section 4(c).
       (b) Administrative Activities Before Termination.--The 
     Commission may use the 30-day period referred to in 
     subsection (a) to--
       (1) conclude the activities of the Commission; and
       (2) provide testimony before any committee of Congress 
     concerning the report of the Commission.
       (c) Post-Commission Activities.--The members and staff of 
     the Commission, the Members of Congress, and employees of 
     Federal agencies are encouraged to--
       (1) continue the multi-stakeholder dialogue started by the 
     Commission in new forums and capacities; and
       (2) examine any institutional needs, including--
       (A) the formation of a new office;
       (B) improvements in organization;
       (C) a network; or
       (D) a caucus.

     SEC. 9. RESPONSE OF THE PRESIDENT.

       (a) In General.--Not later than 90 days after the date of 
     receipt of the report of the Commission under section 4(c), 
     the President shall submit to Congress and appropriate 
     Federal agencies a report containing a statement of proposals 
     to carry out or respond to the recommendations of the 
     Commission.
       (b) Availability of Report.--The report described in 
     subsection (a) shall be published or otherwise made 
     available, including (to the maximum extent practicable) in 
     electronically accessible formats and means, such as the 
     World Wide Web.
                                 ______
                                 
      By Mr. LEAHY:
  S. 4040. A bill to ensure that innovations developed at federally-
funded institutions are available in certain developing countries at 
the lowest possible cost; to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, today I am pleased to introduce the Public 
Research in the Public Interest Act of 2006. If enacted, this bill will 
save lives and improve the quality of health for millions of families 
living in impoverished nations. Recently, I have introduced and 
cosponsored six bills to address the increasingly important issues that 
relate to global health and the need for earlier access to generic 
medicines in the United States.
  Each year, millions of people needlessly suffer from disease in 
impoverished countries worldwide because they lack access to lifesaving 
medicines. And each year, America's world-renowned research 
universities develop innovative treatments to combat these diseases. 
However, under our current system, these treatments do not get to the 
families in impoverished nations who so desperately need them.
  Today, 15 percent of the world's people consume about 91 percent of 
the world's pharmaceuticals. The high price of lifesaving medicines--
medicines we take for granted--puts them far beyond the reach of 
millions of the most vulnerable populations.
  While the concept of my bill is simple, the implications are 
profound. If passed, my bill would greatly lessen the cost burden of 
generic drugs in the developing world. It would achieve this by 
requiring federally funded research institutions to permit their 
inventions, such as, drugs, vaccines, and innovative medical devices, 
to be provided inexpensively by generic companies distributing medical 
supplies to the developing world.
  Federally funded labs and research institutions have a vital role to 
play in meeting this goal. For example, Yale University has an 
agreement with Doctors Without Borders to permit their generic version 
of its lifesaving AIDS drug to be used for a pilot treatment program in 
South Africa. To date, Yale's humanitarian endeavor, which in no way 
reduced their licensing revenues, continues to save thousands of lives.
  It is time to ensure that public funds truly serve public purposes--
in this instance, delivering essential health care needs at minimal 
costs to American taxpayers, universities, and pharmaceutical 
companies. Unfortunately, this Congress has been tied up in knots 
recently and has been unable to pass even critical appropriations 
bills. The measures before us are crucial. This comprehensive approach 
toward providing better global health aid and better access to generic 
drugs should become law, and I am committed to trying to make it so. I 
look forward to

[[Page 21626]]

working with my colleagues on both sides of the aisle, in this Congress 
or the next, to enact this important legislation.
  I have recently introduced or sponsored six bills to address the need 
for better access to low-cost generic medicines. Two of these bills 
relate to global health, and four of them address the need for earlier 
access to generic medicines in the United States.
  Federally funded laboratories and other research institutions have a 
critical role to play in delivering affordable medicines to those sick 
and suffering worldwide. In 2000, a Senate Joint Economic Committee 
Report found that public research was instrumental in developing 15 of 
the 21 drugs considered by experts to have had the highest therapeutic 
impact on society.
  Between 1970 and 2001, there was a ten-fold increase in the number of 
U.S. patents issued annually to U.S. academic institutions. American 
universities, hospitals, and other nonprofit research centers concluded 
that more than 4,500 license and option agreements were executed in 
2003, more than double the license and option agreements executed in 
1993. A major share of these patents is in the biomedical field.
  The World Health Organization's 2006 Commission on Intellectual 
Property Rights, Innovation, and Public Health has also recently 
recognized the crucial role of universities. The WHO recommended that 
universities adopt licensing practices designed to increase access to 
medicines in developing countries.
  The report also tells the story of one way in which the crucial role 
of university innovations and other publicly funded research in 
promoting global public health first came into the public eye. It is an 
interesting story.
  In 2001, the international organization Medecins Sans Frontieres, or 
MSF, requested Yale University's permission to use its generic life-
saving AIDS drug, stavudine, for a pilot treatment project outside Cape 
Town.
  This was at a time when HIV drugs were first being introduced in the 
developing world. The costs were prohibitive. Scientists at Yale 
University had discovered stavudine's value in the fight against AIDS, 
and Yale University was the key patent holder.
  In response to MSF's request, Yale and Bristol-Myers Squibb jointly 
announced that they would permit the sale of generics in South Africa 
and that Bristol-Myers Squibb would lower the price of its brand-name 
stavudine by 96 percent throughout sub-Saharan Africa.
  The Yale/Bristol-Myers Squibb announcement was highly significant in 
the campaign for access to affordable first-line AIDS treatments. Yale 
and Bristol-Myers Squibb's humanitarian action did not reduce licensing 
revenues with respect to Yale. Meanwhile, Yale's invention to this day 
continues to save thousands of lives. According to a recent report by 
the WHO's AIDS Medicines and Diagnostics Service, stavudine is one of 
the three first-line HIV medicines that together constituted almost 90 
percent of total procurement in 2005.
  Unfortunately, this has been an isolated success story rather than 
the road to greater access for the many important inventions that come 
out of publicly funded research institutions.
  With respect to HIV/AIDS treatment alone, at least two major drugs 
based on university inventions have come to market since the 2001 
stavudine announcement: emtricitabine, developed in large part at Emory 
University and sold by Gilead Sciences as Emtriva; and T-20 developed 
in large part at Duke University and marketed as Fuzeon by Hoffmann-La 
Roche and Trimeris. Just this summer, Yale University announced the 
license of a new candidate for an AIDS drug based on stavudine. Called 
``4'-ethynyl-stavudine'', (or abbreviated more simply as Ed4T). Early 
testing suggests that it may be both more effective and less toxic than 
its famous predecessor.
  But the question is: Will these lifesaving drugs ultimately be 
available in places like sub-Saharan Africa, where HIV infection rates 
range as high as a third of the adult population?
  This bill, the Public Research in the Public Interest Act of 2006, 
would focus on this problem. By allowing licensing by generic companies 
of inventions coming out of publicly funded research institutions--and 
other associated inventions required to produce marketable medicines--
it would drive down the price of new, innovative drugs in areas where 
they would otherwise be effectively unavailable.
  Because the licensing regime this bill proposes is self-enforcing, it 
minimizes both administrative overhead and eliminates the need for 
case-by-case decisions, while preserving important intellectual 
property protections. Because the Act allows the introduction of 
generic or reduced-price drugs only into markets too poor to otherwise 
afford them, its terms do not threaten corporate investments or profits 
in wealthy nations. All generic drugs manufactured under the bill must 
be clearly differentiated from the versions sold in developed nations, 
where the brand-name companies make their profits.
  Moreover, publicly funded research institutions would receive 
royalties from the sale of inventions covered by this bill in 
developing markets. While the initial payment of the royalties will 
typically go to the research institution itself, the bill leaves 
complete freedom to these institutions and their licensee to decide how 
such royalties will ultimately be shared. This freedom is especially 
important because the inventions from universities and other research 
institutions often form only one part of the collection of intellectual 
property necessary to manufacture a finished, marketable drug. The 
appropriate division of the royalties paid by generics for this package 
of rights in the developing world will be different for different drugs 
and medical devices, depending on whether the university's contribution 
is more or less central to the finished product. This Act would allow 
all the various parties the flexibility to divide these royalties 
appropriately.
  I should be clear, however, that the bill I introduce today is an 
initial proposal. I look forward to working with research universities 
in the United States on this important matter. I also intend to work 
with the companies involved in creating, licensing, and bringing to 
market the fruits of America's unparalleled research institutions as we 
continue to shape this solution.
  Indeed, the best answer may not be legislative at all, if the groups 
involved can come together around a different approach. But however it 
is achieved, I believe that increasing the availability of the many 
medical inventions that come from publicly funded research centers is a 
good solution to pressing global health concerns.
  Universities, in particular, are unique institutions with unique 
public commitments. They are, before anything else, institutions 
dedicated to the creation and dissemination of knowledge in the public 
interest. The Public Research in the Public Interest Act of 2006 is 
designed in the spirit of that commitment.
  This bill completes a package of six bills that I have recently 
introduced to increase access to medicines in the United States and to 
address the global public health crisis. While it is the magnitude of 
this problem that demands that we, as a Nation, take action, it is the 
small things, the individual stories that often speak to us most 
clearly at a personal level.
  In my office hangs a photograph I took of three young boys on the 
side of a mountain in Turkey. I found them flying a kite off the edge 
of a cliff that overlooks a vast slum. They had made the toy out of 
scraps of paper, patched together with tape and string, and were flying 
it on the currents rushing up the face of the rock.
  I recalled fearing for their safety as they played so precariously 
close to the edge. But these children faced much greater risks. When my 
grandchildren get sick, we can always be sure they will get the 
medicines they need. For these boys, there is no such guarantee.
  These boys, and the millions of children and others like them around 
the world are the reason behind each of the six bills I have 
introduced.

[[Page 21627]]

  Earlier this summer, I introduced a bill which can be the catalyst 
for empowering U.S. generic companies to save the lives or improve the 
health of millions of families in impoverished nations. Under the 
``Life-Saving Medicines Export Act,'' U.S. companies can make low-cost 
generic versions of any medicine for export to impoverished nations 
that face public health crises when those impoverished nations cannot 
produce those life-saving medicines for themselves.
  This bill is based on World Trade Organization agreements permitting 
nations with pharmaceutical industries to help nations in need. The 
World Health Assembly and the World Health Organization have adopted 
resolutions urging all WTO member nations with a generic capability to 
adopt laws that implement that agreement. On December 6, 2005, the 
Office of the U.S. Trade Representative announced that it ``welcomes'' 
efforts to ``allow countries to override patent rights when necessary 
to export lifesaving drugs to developing countries that face public 
health crises but cannot produce drugs for themselves.''
  This bill addresses the urgent needs of millions of low-income 
families in impoverished nations while protecting the interests of the 
patent owners of these life-saving medicines. As in the Public Research 
in the Public Interest Act, introduced today, generic companies are 
only permitted to use the compulsory license in the bill in developing 
nations, where low-income families are simply too poor to purchase the 
``brand-name'' versions, and the generic versions must be clearly 
marked as not for resale in developed nations. Thus, both bills pose 
the risk of minimal losses for patent holders while generating new 
revenue for the brand-name companies from the royalties on generic 
sales.
  The four additional bills that complete this ``Access to Medicines'' 
package seek to preserve incentives for U.S. generic companies to enter 
and compete in the market. Increased competition leads to lower prices 
and saved lives.
  First, in the wake of the Supreme Court refusal to hear the drug 
patent case called Federal Trade Commission (FTC) v. Schering-Plough, I 
joined fellow Judiciary Committee members--Senators Kohl, Grassley and 
Schumer--in introducing legislation to explicitly prohibit brand-name 
drug manufacturers from using pay-off agreements to keep cheaper 
generic equivalents off the market. Such payments are a distortion in 
the market that harms patients. I was stunned that the U.S. Supreme 
Court refused to hear a case so important to our senior citizens. The 
Federal Trade Commission asked the Supreme Court to hear the arguments 
but the Court refused at the request of the Justice Department. It 
seems there may be no justice--until that bill is passed--for our 
seniors needing costly patented medicines but live where the brand-name 
company has paid generic companies not to compete.
  Then, in July, I joined Senators Rockefeller and Schumer in 
introducing legislation to ban ``authorized generics'' that can stifle 
true generic competition. I said at the time that ``the giant drug 
companies keep coming up with ways to avoid real competition and 
consumers need to be able to count on Congress to close each new 
anticompetitive loophole they come up with.'' If enacted, that bill 
will close this anti-competitive loophole in the Hatch-Waxman Act and 
will preserve the incentives Congress created for generic companies to 
enter the market to supply American citizens and seniors with lower-
cost drugs.
  The fifth bill introduced was with Senator Kohl. That bill is 
intended to stop frivolous Citizen Petitions designed to delay 
introduction of generic drugs into the market place. Recently, large 
pharmaceutical companies have exploited that petition process to keep 
their profits high. In addition, I joined with Senators Schumer, 
Clinton and Stabenow on the Access to LifeSavings Medicine Act which 
related to developing a fast-track process for approving generic 
versions of biologic medicines.
  I want to thank Stacy Kern-Scheerer with Senate Legislative Counsel 
who provided very helpful guidance under extreme pressure in drafting 
this short, but complex bill. She and Bill Baird, also with Senate 
Legislative Counsel, did a great job with a rapid turnaround.
  I believe that these six bills, together, can save millions of lives. 
Recognizing the great need, there have been significant voluntary 
efforts made by brand-name pharmaceutical companies, foundations, and 
nonprofits who have already donated life-saving medicines, time, 
personnel and money to help in the fight against deadly diseases both 
in America and abroad. I commend and greatly appreciate those efforts. 
Nonetheless, much remains to be done. My bills will both add to and 
complement existing efforts, by making sure even cutting edge 
treatments are available in developing countries, and by ensuring that 
America's aid dollars and the contributions of private philanthropists 
are used as efficiently as they can possibly be used.
  The President's Emergency Plan for AIDS Relief Report to Congress 
reported that ``[i]n every case generics prices present an opportunity 
for cost savings; in some cases, the branded price per pack of a drug 
is up to 11 times the cost of the approved generic version.''
  The current global public health crisis is one of the great callings 
of our time. As a nation, we cannot afford to ignore this threat. Our 
own health and aspects of our national security depend on it.
  We have become far more aware today of how much our own health 
depends on what takes place half a world away. Whether it is AIDS, 
SARS, West Nile Virus, the Avian Flu, or the encroaching menace of 
multi-drug resistant bacteria, we are all at risk. We are only an 
airplane flight away from wherever an outbreak may occur--a place where 
the medical innovations developed in this country to combat these 
devastating diseases may not be available to keep the outbreak under 
control.
  In a post-9/11 world, our well-being is intimately connected with 
that of other nations. Health is an essential building block for a 
strong economy, and vital to maintain a thriving democracy. Through 
increasing access to essential medicines throughout the world, the 
United States can help to give developing nations a chance to flourish, 
while improving U.S. relations with large segments of the world's 
population.
  President Franklin Roosevelt once said: ``The test of our progress is 
not whether we add more to the abundance of those who have much; it is 
whether we provide enough, for those who have little.''
  We are fortunate, at some times and on some issues, to be able to do 
both. Now is one of those times, and this is one of those issues. I 
hope my colleagues will join me in supporting my efforts this year on 
the global public health crisis, including today's addition, the Public 
Research in the Public Interest Act of 2006.
  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. 4040

       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 ``Public Research in the 
     Public Interest Act of 2006''.

     SEC. 2. PURPOSE AND FINDINGS.

       (a) Purpose.--The purpose of this Act is to promote global 
     public health and America's national security by ensuring 
     that innovations developed at federally-funded institutions 
     are available in eligible developing countries at the lowest 
     possible cost.
       (b) Findings.--Congress finds the following:
       (1) It is in the national interest of the United States 
     that people around the world live healthier lives, and that 
     they perceive the United States in a more favorable light.
       (2) The United States Government funds a major portion of 
     all academic research.
       (3) Congress funds universities and Federal research 
     laboratories as institutions dedicated to the creation and 
     dissemination of knowledge in the public interest.

[[Page 21628]]

       (4) The Federal Government's investment in science and 
     technology fuels a thriving pharmaceutical industry and 
     rising longevity and quality of life in the United States. In 
     2000, a Senate Joint Economic Committee Report found that 
     public research was instrumental in developing 15 of the 21 
     drugs considered by experts to have had the highest 
     therapeutic impact on society.
       (5) Millions of people with HIV/AIDS in developing 
     countries need antiretroviral drugs. More than 40,000,000 
     people worldwide have HIV and 95 percent of them live in 
     developing countries. Malaria, tuberculosis, and other 
     infectious diseases kill millions of people a year in 
     developing nations.
       (6) The World Health Organization (``WHO'') has estimated 
     that \1/3\ of the world's population lacks regular access to 
     essential medicines, including antiretroviral drugs. The WHO 
     reported that just by improving access to existing medicines 
     roughly 10,000,000 lives could be saved around the world 
     every year.
       (7) To help address the access to medicines crisis, the 
     World Health Organization's 2006 Commission on Intellectual 
     Property Rights, Innovation, and Public Health recommended 
     that universities adopt licensing practices designed to 
     increase access to medicines in developing countries.
       (8) The Department of State has reported to Congress under 
     the President's Emergency Plan for AIDS Relief that, ``[I]n 
     every case generics prices present an opportunity for cost 
     savings; in some cases, the branded price per pack of a drug 
     is up to 11 times the cost of the approved generic 
     version.''.
       (9) Since sales of the patented, brand-name versions of 
     such medicines are minimal or non-existent in many 
     impoverished regions of the world, allowing generic versions 
     of those medicines will have minimal impact on the sales of 
     brand-name, patented versions in such regions, or the 
     licensing revenues of publicly funded research institutions, 
     while saving an untold number of lives.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Associated medical product.--The term ``associated 
     medical product'', when used in relation to a subject 
     invention, means any medical product of which the 
     manufacture, use, sale, offering for sale, import, or export 
     relies upon or is covered by the rights guaranteed by title 
     in that invention.
       (2) Associated rights.--The term ``associated rights,'' 
     when used in relation to a subject invention, means--
       (A) all patent and marketing rights, possessed by a current 
     or former holder of title in that invention, or licensee of 
     rights guaranteed by such title, that are reasonably 
     necessary to make, use, sell, offer to sell, import, export, 
     or test any associated medical product ever made, used, sold, 
     offered for sale, imported, or exported by that party; and
       (B) the right to rely on biological, chemical, biochemical, 
     toxicological, pharmacological, metabolic, formulation, 
     clinical, analytical, stability, and other information and 
     data for purposes of regulatory approval of any associated 
     medical product.
       (3) Drug.--The term ``drug'' has the meaning given such 
     term in section 201 of the Federal Food, Drug and Cosmetic 
     Act (21 U.S.C. 321).
       (4) Eligible country.--The term ``eligible country'' means 
     any country of which the economy is classified by the World 
     Bank as ``low-income'', or ``lower-middle-income''.
       (5) Fair royalty.--The term ``fair royalty'', when used in 
     relation to a subject invention, means--
       (A) for a country classified by the World Bank as ``low-
     income'' at the time of the sales on which royalties are due, 
     2 percent of a licensee's net sales of associated medical 
     products in such country; and
       (B) for a country classified by the World Bank as ``lower-
     middle-income'' at the time of sales on which royalties are 
     due, 5 percent of a licensee's net sales of associated 
     medical products in such country.
       (6) Invention.--The term ``invention'' means any invention 
     or discovery which is or may be patentable or otherwise 
     protectable under title 35, United States Code, or any novel 
     variety of plant which is or may be protectable under the 
     Plant Variety Protection Act (7 U.S.C. 2321 et seq.).
       (7) Medical device.--The term ``medical device'' means a 
     device, as defined in section 201(h) of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 321(h)), and includes any 
     device component of any combination product, as that term is 
     used in section 503(g) of such Act (21 U.S.C. 353(g)).
       (8) Medical product.--The term ``medical product'' means 
     any drug, treatment, prophylaxis, vaccine, or medical device.
       (9) Neglected research.--The term ``neglected research'' 
     means any use of a subjected invention or the associated 
     rights in an effort to develop medical products for a rare 
     disease or condition, as defined in section 526(a)(2) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 360bb(a)(2)).
       (10) Subject institution.--The term ``subject institution'' 
     means any institution of higher education (as such term is 
     defined in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)) or research that receives federal 
     financial assistance, including Federal laboratories as 
     defined in section 12(d) of the Stevenson-Wydler Technology 
     Innovation Act of 1980 (15 U.S.C. 3710a(d)).
       (11) Subject invention.--The term ``subject invention'' 
     means any invention--
       (A) conceived or first actually reduced to practice by a 
     subject institution, or its employees in the course of their 
     employment, on or after the effective date of this Act; or
       (B) in which a subject institution holds title, provided 
     the invention was first conceived or reduced to practice on 
     or after the effective date of this Act.

     SEC. 4. ACCESS TO LIFESAVING MEDICINES DEVELOPED AT 
                   GOVERNMENT FUNDED INSTITUTIONS.

       (a) Grant of License.--
       (1) In general.--As a condition of receiving Federal 
     assistance, any subject institution that conceives, reduced 
     to practice, or holds title in a subject invention shall be 
     required to grant irrevocable, perpetual, nonexclusive 
     licenses to the invention and any associated rights the 
     institution may own or ever acquire, to any party requesting 
     such a license pursuant to subsection (g).
       (2) Purpose of license.--The licenses described under 
     paragraph (1) shall be for the sole purpose of--
       (A) supplying medical products in accordance with 
     subsection (e); or
       (B) conducting neglected research anywhere in the world, 
     royalty-free.
       (b) Incorporation Into Title.--The open-licensing 
     requirement created by subsection (a) and all licenses 
     granted thereunder shall be part of the subject institution's 
     title in a subject invention. No transfer or license may be 
     interpreted in any manner inconsistent with making any grant 
     under subsection (a) effective, or in any manner that 
     prevents or frees the holder of title in the invention from 
     granting licenses.
       (c) Subsequent Licenses.--
       (1) In general.--If a subject institution licenses or 
     grants rights in a subject invention to any other party, as a 
     condition of such grant the licensee or grantee, and any 
     future sublicensees or subsequent grantees, ad infinitum, 
     shall also be required in perpetuity, to grant irrevocable, 
     perpetual, nonexclusive licenses on any associated rights 
     which the licensee or grantee may own or later acquire, to 
     any party requesting such a license pursuant to subsection 
     (g).
       (2) Purpose of license.--The licenses shall be for the sole 
     purposes described in subsection (a)(2).
       (3) Application of this subsection.--This subsection 
     applies to licenses for a subject invention acquired under 
     subsection (a).
       (d) Construction.--No grant or licensee of any subject 
     invention may be interpreted in any manner that prevents or 
     frees the grantee or licensee from granting licenses for 
     associated rights under subsection (c).
       (e) License for Supply of Medical Products.--
       (1) In general.--A license under subsection (a)(2)(A) shall 
     be a license for the sole purpose of permitting the making, 
     using, selling, offering to sell, importing, exporting, and 
     testing of medical products in eligible countries and the 
     making and exporting of medical products worldwide for the 
     sole purpose of supplying medical products to eligible 
     countries.
       (2) Labeling.--If the recipient of a license under 
     subsection (a) exercises its right to make and export a 
     medical product in any country other than an eligible country 
     for the sole purpose of export to an eligible country, then 
     the licensee shall use reasonable efforts to visibly 
     distinguish the medical product it manufactures from any 
     similar medical product sold by others in the country of 
     manufacture, provided that such reasonable efforts do not 
     require the licensee to expend significant expense.
       (3) Royalties.--
       (A) License of subject invention.--A license of a subject 
     invention under subsection (a)(2)(A) shall be irrevocable and 
     perpetual so long as the licensee submits to the licensor 
     payment of a fair royalty on sales of any associated medical 
     product within 90 days of such sales. Failure or refusal of 
     the licensor to accept the fair royalty shall not terminate 
     or affect in any way the license.
       (B) License of associated rights.--A license of associated 
     rights to a subject invention under subsection (a)(2)(A) 
     shall be royalty free.
       (f) Transfer.--In accordance with subsections (a) through 
     (d), any license or other transfer of a subject invention by 
     a subject institution or the licensee or grantee of such 
     institution for a subject invention, shall be invalid 
     unless--
       (1) the license or grant includes a clause, ``This grant or 
     license is subject to the provisions of the Public Research 
     in the Public Interest Act of 2006.'';
       (2) the licensor or grantor complies with the notification 
     requirements of subsection (h); and
       (3) the license or grant does not include any terms that 
     contradict any requirement of this Act.
       (g) Procedures for Acquisition of Licenses.--
       (1) In general.--Any party, upon providing to the Food and 
     Drug Administration--

[[Page 21629]]

       (A) notification of its intent to supply medical products 
     or conduct neglected research as provided in subsection (a);
       (B) a specific list of the rights it wishes to license for 
     those purposes; and
       (C) the names of the party or parties it believes are 
     obligated to grant such licenses under subsections (a) 
     through (d),
     shall automatically be deemed to receive the license so 
     requested without the need for any further action on the part 
     of the licensing party if the party or parties specified in 
     the request do not object and notify the requesting party of 
     such objection, within 30 days of the publication of such 
     request by the Administration.
       (2) Enforcement action.--
       (A) In general.--If the party or parties specified under 
     paragraph (1) object to the grant of a requested license, the 
     requesting party may bring an action to enforce its right to 
     a license of a subject invention or associated rights under 
     subsections (a) through (d).
       (B) Process.--In any suit under this subsection, the 
     requesting party shall be entitled to separate, expedited 
     review of the legal issues required to adjudicate whether it 
     is entitled to the requested license, without prejudice to 
     any other issues in the lawsuit. If the party objecting to 
     the license is found to have objected without reasonable 
     cause or without a good faith belief that there was a 
     justifiable controversy under the facts and the law, the 
     party requesting the license shall be entitled to attorney's 
     fees, other reasonably necessary costs of the lawsuit, and 
     treble damages from the objecting party.
       (3) Publication.--The Food and Drug Administration shall 
     publish any request made under paragraph (1) within 15 days 
     of receipt of such request. The Food and Drug Administration 
     shall also make reasonable efforts to directly notify the 
     parties named in any such request.
       (h) Notification of Transfer or License of Subject 
     Inventions.--The holder of title or any license in a subject 
     invention shall notify the Food and Drug Administration of 
     any grant or license of rights in that invention. The Food 
     and Drug Administration shall publish all such notifications 
     within 15 days of receipt.
                                 ______
                                 
      By Mr. INHOFE (for himself and Mr. Coburn):
  S. 4041. A bill to protect children and their parents from being 
coerced into administering a controlled substance in order to attend 
school, and for other purposes; read the first time.
  Mr. INHOFE. President, I rise today, along with my colleague, Tom 
Coburn, to proudly introduce the Child Medication Safety Act, a bill to 
protect children and their parents from being coerced into 
administering a controlled substance or psychotropic drug in order to 
attend a school. The text of my bill exactly matches the text of H.R. 
1790, which passed the House on November 16, 2006 by a vote of 407 to 
12.
  Parents today face many challenges when raising their children, one 
of which is ensuring that their children receive the best education 
possible. My views on education come from a somewhat unique perspective 
in that my wife, Kay, was a teacher at Edison High School in Tulsa for 
many years and now both of our daughters are teachers. I can assure you 
that I am one of the strongest supporters of quality education. 
However, it has come to my attention that schools have been acting as 
physicians or psychologists by strongly suggesting that children with 
behavioral problems be put immediately on some form of psychotropic 
drugs. Schools and teachers are not equipped to make this diagnosis and 
should not make it mandatory for the student to continue attending the 
school. This is clearly beyond their area of expertise. Therefore, I am 
introducing this legislation to ensure that parents are not required by 
school personnel to medicate their children.
  The Child Medication Safety Act requires, as a condition of receiving 
funds from the Department of Education, that States develop and 
implement polices and procedures prohibiting school personnel from 
requiring a child to obtain a prescription as a condition of attending 
the school. It should be noted that this bill does not prevent teachers 
or other school personnel from sharing with parents or guardians 
classroom-based observations regarding a student's academic performance 
or regarding the need for evaluation for special education. 
Additionally, this bill calls for a study by the Comptroller General of 
the United States reviewing: No. 1, the variation among States in the 
definition of psychotropic medication as used in public education, No. 
2, the prescription rates of medication used in public schools to treat 
children with attention deficit disorder and other such disorders, No. 
3, which medications listed under the Controlled Substances Act are 
being prescribed to such children, and No. 4, which medications not 
listed under the Controlled Substances Act are being used to treat 
these children. This GAO report is due no later than 1 year after the 
enactment of this Act.
  I believe this is an extremely important bill that protects the 
rights of our children against improper intrusion regarding health 
issues by those not qualified. If a parent or guardian believes their 
child is in need of medication, then they have the right to make that 
decision and consult with a licensed medical practitioner who is 
qualified to prescribe an appropriate drug. Please join us in support 
of this legislation that protects the freedoms of our children. We also 
ask that you work with us to secure passage of the Child Medication 
Safety Act before the end of the 109th Congress as it has already 
passed the House by a huge margin.
                                 ______
                                 
      By Mr. DURBIN (for himself, Mr. Chambliss, Mr. Conrad, and Mr. 
        Bayh):
  S. 4042. A bill to amend title 18, United States Code, to prohibit 
disruptions of the funerals of members or former members of the Armed 
Forces; to the Committee on the Judiciary.
  Mr. DURBIN. Mr. President, I rise today to join with my colleagues 
Senators Chambliss, Conrad, and Bayh in introducing the Respect for the 
Funerals of Fallen Heroes Act.
  Our bill would make it unlawful to intentionally disrupt the funeral 
of a U.S. military servicemember or veteran. Sadly, we have seen at 
least 129 such disruptions over the past 16 months by a group nominally 
calling itself a Christian church. These disruptions have taken place 
in almost every State in the country. In Illinois alone, there have 
been at least 16 disruptions of military funerals during that time--
more than any other State.
  Most of us know the heartbreak of laying a loved one to rest--a 
father, a mother, a husband or wife, a grandparent, a brother or 
sister, a child, a good friend. Funerals are a sad moment of parting, a 
last opportunity to say farewell.
  A loved one is laid to rest only once. And the families and friends 
of the departed have a clear interest in conducting the funeral 
ceremony in peace, in tranquility, and in a way they feel best honors 
the life of the departed and comforts those who are left behind.
  It can be devastating to have that funeral disrupted--to have the 
peace and good order of the ceremony intentionally disturbed by someone 
you don't even know--during the one chance the mourners have to lay 
their loved one to rest.
  Intentional disruptions of funerals are particularly troubling 
because mourners at a funeral are a captive audience. They can't just 
leave. If someone tries to disturb a funeral ceremony by making loud 
noises or trying to divert the mourners' attention, the mourners can't 
just move somewhere else. A funeral ceremony is bound to the location 
of the body of the deceased.
  While an intentional disruption of the peace and good order of a 
funeral ceremony would be inappropriate under any circumstances, it is 
particularly vile when the intentional disruption occurs during the 
funeral of a fallen member of the Armed Services.
  The United States government owes an obligation to the men and women 
who have served their country in uniform. These men and women have 
risked their lives for their country. When they lose their lives, the 
government has a significant interest in allowing their families and 
friends to lay them to rest in peace.
  In May, Congress enacted legislation called the Respect for America's 
Fallen Heroes Act, which would safeguard the funerals of U.S. veterans 
and servicemembers that take place at Federal cemeteries. This law 
prohibits demonstrations during the military funerals that are held at 
our 121 national cemeteries and Arlington National Cemetery. It 
provides protection for

[[Page 21630]]

the funerals of approximately 90,000 veterans who are buried each year 
Federal cemeteries.
  Our bill would expand the current law to cover the funerals of all 
servicemembers and veterans, whether they are buried in a national 
cemetery, in their own local cemetery, or somewhere else. It would 
provide protection for the funerals of all of the 650,000-700,000 
servicemembers and veterans who die each year in the United States.
  Admirably, my home State of Illinois and 25 other States have passed 
laws to try to protect military funerals with their borders. A wide 
range of State laws have been enacted, providing varying degrees of 
protection. But many of these laws were not narrowly tailored and are 
likely to be struck down as unconstitutional. Legal challenges are 
already underway in several States. What's needed now is a Federal 
solution.
  Under our bill, it would be a criminal misdemeanor--punishable by a 
fine or up to one year in jail--for any person to 1. make any noise or 
diversion within the boundary of or within 150 feet of a military 
funeral location that intentionally disturbs the peace and good order 
of the funeral, or 2. intentionally impede access to or from the 
funeral within 300 feet of the funeral location. Such activities would 
be prohibited during the period from 60 minutes before until 60 minutes 
after a military funeral.
  I understand the critical importance of the right to free speech. It 
is a foundational right under the U.S. Constitution. However, the 
Supreme Court has repeatedly found it is consistent with the First 
Amendment for the time, place, and manner of speech to be reasonably 
limited in a way that is content neutral and narrowly tailored to serve 
a significant government interest.
  Our bill meets that test. The government has a significant interest 
in preserving the tranquility and privacy of the funerals of men and 
women who defend our country as members of the Armed Forces. Congress 
has the constitutional power to raise and support armies, and we can 
and should support our troops by providing them with peaceful funerals.
  Our bill creates a reasonable time, place, and manner restriction 
similar to restrictions that the Supreme Court has previously upheld. 
For example, in a case that took place in my home state of Illinois, 
Grayned v. City of Rockford, the Supreme Court upheld an ordinance that 
stated the following: ``(N)o person, while on public or private grounds 
adjacent to any building in which a school or any class thereof is in 
session, shall willfully make or assist in the making of any noise or 
diversion which disturbs or tends to disturb the peace or good order of 
such school session or class thereof.''
  Like the ordinance in Rockford, IL, my legislation is a reasonable 
restriction on disruptive activities within a limited geographic 
location for a limited period of time. Just as the local government has 
a significant interest in protecting the peace and good order of school 
sessions, the Federal Government has a significant interest in 
protecting the peace and good order of the funeral ceremonies of our 
military personnel.
  The fact that funeral attendees are a captive audience also figures 
into the analysis. In many locations, the Supreme Court expects 
individuals simply to avoid speech they do not want to hear. But in the 
case Frisby v. Schultz, the Supreme Court upheld an ordinance that made 
it unlawful to picket outside an individual's residence, stating: 
``That we are often `captives' outside the sanctuary of the home and 
subject to objectionable speech. . . does not mean we must be captives 
everywhere.'' Like individuals in their homes and students in 
classrooms, mourners at funeral ceremonies are bound to one location 
and cannot avoid those who intend to cause disruptions. And they should 
not be forced to suffer those disruptions, especially during the one 
chance they have to lay a loved one rest.
  The Respect for the Funerals of Fallen Heroes Act is content neutral. 
Its prohibitions apply to all offenders regardless of the nature of the 
message or the manner in which the message is conveyed. The legislation 
simply aims to allow funerals to be conducted in peace.
  Our bill is also narrowly tailored. Not every form of speech or 
activity would be prohibited during the time period, only activities 
that are intended to and have the effect of disturbing the funeral 
ceremony. A person could carry on a conversation on a sidewalk nearby 
or hand out leaflets, but the peace and solemnity of the funeral must 
not be disturbed.
  This bill has been carefully drafted to withstand constitutional 
scrutiny. We sought the advice of distinguished First Amendment scholar 
Geoffrey Stone at the University of Chicago law school, and he believes 
the bill is consistent with the First Amendment.
  In addition, it is within the power of Congress to provide protection 
for the funerals of fallen servicemembers and veterans that are held at 
non-Federal cemeteries. The Congressional Research Service has 
researched this issue and concluded that a court would likely deem our 
legislation to be within Congress's lawmaking power, in light of 
Congress's constitutional authority to raise and support armies, and in 
light of cases in which the Supreme Court has upheld Congress's power 
to regulate private property for the benefit of the military.
  Our legislation is supported by veterans groups in Illinois and 
across America. I received a letter from Retired U.S. Army Colonel 
Aaron J. Wolff, President of the Illinois Council of Chapters of the 
Military Officers Association of America, who said: ``The Respect for 
America's Fallen Heroes Act passed by Congress in May 2006, and signed 
into law, was an initial step in stopping demonstrations at funerals of 
our fallen heroes.... On behalf of all veterans and their families, I 
strongly support your bill to expand coverage of the demonstration ban 
to include all the funerals of our veterans, wherever they are held.''
  Tanna K. Schmidli, chairman of the Board of Governors of the National 
Military Family Association, wrote to me and said: ``The National 
Military Family Association supports this legislation to ban 
demonstrations at all military funerals. Grieving military families, 
who had made the ultimate sacrifice, should not be subjected to these 
intrusions. This should be a time for military families to reflect and 
say goodbye to their loved one and a time for the nation to honor its 
heroes.''
  The men and women who served our country in uniform, and their 
families and friends, are entitled to funeral ceremonies that can be 
conducted in peace and without disruption. It's time to protect the 
funerals of all our fallen heroes. I hope that my colleagues from both 
parties will cosponsor this bill and join me in seeking to provide the 
protection they deserve.
  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. 4042

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

     SECTION 1. RESPECT FOR THE FUNERALS OF FALLEN HEROES.

       (a) In General.--Chapter 67 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1388. Prohibition on disruptions of funerals of 
       members or former members of the Armed Forces

       ``(a) Prohibition.--For any funeral of a member or former 
     member of the Armed Forces that is not located at a cemetery 
     under the control of the National Cemetery Administration or 
     part of Arlington National Cemetery, it shall be unlawful for 
     any person to engage in an activity during the period 
     beginning 60 minutes before and ending 60 minutes after such 
     funeral, any part of which activity--
       ``(1)(A) takes place within the boundaries of the location 
     of such funeral or takes place within 150 feet of the point 
     of the intersection between--
       ``(i) the boundary of the location of such funeral; and
       ``(ii) a road, pathway, or other route of ingress to or 
     egress from the location of such funeral; and
       ``(B) includes any individual willfully making or assisting 
     in the making of any noise or diversion that is not part of 
     such funeral

[[Page 21631]]

     and that disturbs or tends to disturb the peace or good order 
     of such funeral with the intent of disturbing the peace or 
     good order of that funeral; or
       ``(2)(A) is within 300 feet of the boundary of the location 
     of such funeral; and
       ``(B) includes any individual willfully and without proper 
     authorization impeding the access to or egress from such 
     location with the intent to impede the access to or egress 
     from such location.
       ``(b) Penalty.--Any person who violates subsection (a) 
     shall be fined under this title, imprisoned for not more than 
     1 year, or both.
       ``(c) Definitions.--In this section:
       ``(1) The term `Armed Forces' has the meaning given the 
     term in section 101 of title 10.
       ``(2) The term `funeral of a member or former member of the 
     Armed Forces' means any ceremony or memorial service held in 
     connection with the burial or cremation of a member or former 
     member of the Armed Forces.
       ``(3) The term `boundary of the location', with respect to 
     a funeral of a member or former member of the Armed Forces, 
     means--
       ``(A) in the case of a funeral of a member or former member 
     of the Armed Forces that is held at a cemetery, the property 
     line of the cemetery;
       ``(B) in the case of a funeral of a member or former member 
     of the Armed Forces that is held at a mortuary, the property 
     line of the mortuary;
       ``(C) in the case of a funeral of a member or former member 
     of the Armed Forces that is held at a house of worship, the 
     property line of the house of worship; and
       ``(D) in the case of a funeral of a member or former member 
     of the Armed Forces that is held at any other kind of 
     location, the reasonable property line of that location.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 67 of such title is amended by inserting 
     after the item related to section 1387 the following new 
     item:

``1388. Prohibition on disruptions of funerals of members or former 
              members of the Armed Forces.''.
                                 ______
                                 
      By Mr. ALLEN (for himself and Mr. Warner):
  S. 4045. A bill to designate the United States courthouse located at 
the intersections of Broad Street, Seventh Street, Grace Street, and 
Eighth Street in Richmond, Virginia, as the ``Spottswood W. Robinson 
III and Robert Merhige Jr. Courthouse''; to the Committee on 
Environment and Public Works.
  Mr. WARNER. I rise today to join my colleague from Virginia, Senator 
Allen, in offering a bill to name the new Richmond Courthouse for two 
distinguished jurists and sons of Virginia. We are privileged in the 
Commonwealth to have a long history, beginning with Jamestown as the 
first permanent English settlement on the American Continent. As a 
young republic, the College of William and Mary was selected as a site 
for the Nation's first law school.
  The two men to be honored in the naming of the new U.S. Courthouse in 
Richmond were lawyers who throughout their careers adhered to the 
principle of ``equal justice under law.''
  Spottswood William Robinson III was born in Richmond, VA on July 26, 
1916. He attended Virginia Union University and then attended Howard 
University School of Law, graduating first in his class in 1939 and 
serving as a member of the faculty unti1 1947.
  Judge Robinson was one of the core attorneys of the NAACP Legal 
Defense and Educational Fund from 1948 to 1960, achieving national 
prominence in the legal community with his representation of the 
Virginia plaintiffs in the 1954 U.S. Supreme Court case Brown v. Board 
of Education. Brown outlawed public school segregation declaring 
``separate but equal'' schools unconstitutional.
  In 1964, Judge Robinson became the first African-American to be 
appointed to the United States District Court for the District of 
Columbia. In 1966, President Johnson appointed Judge Robinson the first 
African-American to the United States Court of Appeals for the District 
of Columbia Circuit. On May 7, 1981, Judge Robinson became the first 
African American to serve as Chief Judge of the District of Columbia 
Circuit.
  Judge Merhige was born in New York in 1919 and he attended college at 
High Point College in North Carolina. He earned his law degree from the 
T.C. Williams School of Law at the University of Richmond, from which 
he graduated at the top of his class in 1942.
  From 1942 to 1945, Judge Merhige served in the United States Air 
Force and practiced law in Richmond from 1945 to 1967, establishing 
himself as a formidable trial lawyer representing criminal defendants 
as well as dozens of insurance companies.
  On August 30, 1967, Judge Merhige was appointed U.S. District Court 
Judge for the Eastern District of Virginia, Richmond Division by 
President Lyndon B. Johnson serving as a Federal judge unti1 1998. In 
1972, Judge Merhige ordered the desegregation of dozens of Virginia 
school districts. He considered himself to be a ``strict 
constructionist'' who went by the law as spelled out in precedents by 
the higher courts. In 1970, he ordered the University of Virginia to 
admit women. As evidence of Judge Merhige's ground breaking decisions, 
he was given 24-hour protection by Federal marshals due to repeated 
threats of violence against him and his family. His courage in the face 
of significant opposition of the times is a testimony to his dedication 
to the rule of law.
  Senator Allen and I carefully took this responsibility in naming the 
U.S. Federal. Courthouse in Richmond. We worked on it for several years 
and consulted the Virginia Bar Association and sought the views of the 
bench and bar. The Virginia Congressional delegation, the Virginia Bar 
Association, the Mayor of Richmond, and many others decided that the 
best way to honor both men was to have them equally share the honor of 
having the courthouse so named. I attach a letter from the former 
Virginia Governor, the current Mayor of Richmond, L. Douglas Wilder. I 
value greatly the views of a friend and fellow public servant and one 
who has joined me on many issues to benefit the people of Virginia.
  I thank the Senate for the consideration of this bill and look 
forward to working with my colleagues seeking its passage.

                                             City of Richmond,

                                 Richmond, VA, September 29, 2006.
     Senator John Warner
     225 Russell Senate Office Building, Washington, DC.
     Senator George Allen,
     204 Russell Senate Office Building, Washington, DC.
       Dear Senators Warner and Allen: On behalf of the City of 
     Richmond, please accept this brief note in support of your 
     collective decision to name the new U.S. District Court in 
     Richmond for ``Spotswood W. Robinson III and Robert Merhige, 
     Jr.'' Both men played a significant role in Virginia's 
     history and are remembered as ``giants'' within Richmond's 
     legal community.
           Sincerely,
                                                L. Douglas Wilder,
                                                            Mayor.

  Mr. ALLEN. Mr. President, I am pleased to join with my colleague the 
Senior Senator from Virginia John Warner in introducing legislation to 
name the new Federal courthouse in Richmond, VA for two great men and 
leaders of the civil rights movement, Spottswood W. Robinson III and 
Robert Merhige, Jr.
  Judge Spottswood Robinson was a brilliant champion of civil rights 
for all Americans. As a student at Howard Law School, Judge Spottswood 
W. Robinson III earned the highest GPA ever achieved at the law school. 
Following law school, he returned to Richmond, VA to establish a law 
firm with another pioneer of civil rights, Oliver W. Hill. Through the 
years he was involved in many important civil rights cases in State and 
Federal courts, but it was his vital role in the seminal case of Brown 
v. Board of Education that placed Judge Robinson into legal history. 
Judge Robinson is widely recognized as the architect of the legal 
strategies that led to success in intergrading the nations public 
schools.
  Judge Robinson left the private practice of law in 1960 to become 
Dean of the Howard Law School. In October 1963, President Kennedy 
nominated him to become a District Court Judge for the District of 
Columbia. Subsequently, Judge Robinson became the first African-
American to serve as a Judge on the Court of Appeals for the District 
of Columbia and in 1981 became the Chief Judge for the Court. Upon 
retiring from the Court in 1992, Judge Robinson returned to his home in 
Richmond and continued to be an active member of the community until 
his passing in 1998.

[[Page 21632]]

  The other fine jurist who the new courthouse in Richmond will be 
named is another hero of the civil rights movement, Judge Robert R. 
Merhige, Jr. Judge Merhige served this country for 31 years on the 
bench and as a member of the United States Army Air Force as a B-17 
bombardier. Born in 1919, Judge Merhige attended the T.C. Williams 
School of Law at the University of Richmond, from which he graduated at 
the top of his class in 1942. Over the next 21 years, Judge Merhige 
tried hundreds of both criminal and civil cases in both State and 
Federal court. He served as President of the Richmond Bar Association 
from 1963 to 1964.
  In 1967, President Lyndon Johnson appointed Judge Merhige to be a 
United States District Judge. Respected and admired by lawyers from 
coast to coast, Judge Merhige became known for his integrity and 
intellect. Despite the personal hardship placed on both himself and his 
family from those who disagreed with his rulings to enforce civil 
rights law, Judge Merhige continued to uphold the law and follow the 
constitution in the face of grave threats.
  In deciding whom to name this courthouse after, I have taken great 
care to listen to all Virginians after securing funds for this 
impressive courthouse for downtown Richmond and its revitalization. I 
have worked with the Virginia Congressional delegation, the 
distinguished Mayor of Richmond, L. Douglas Wilder, State Senator 
Benjamin Lambert, the Virginia Bar Association, the Richmond Bar 
Association, and many others.
  I am honored to join with my colleague Senator Warner in ensuring 
that when people walk by the new Federal courthouse, they are reminded 
of these two distinguished jurists who helped change the face of 
society for the better with equal justice for all.
                                 ______
                                 
      By Mrs. DOLE:
  S.J. Res. 41. A joint resolution recognizing the contributions of the 
Christmas tree industry to the United States economy and urging the 
Secretary of Agriculture to establish programs to raise awareness of 
the importance of the Christmas tree industry; to the Committee on 
Agriculture, Nutrition, and Forestry.
  Mrs. DOLE. Mr. President, I ask unanimous consent that the text of 
the joint resolution be printed in the Record.
  There being no objection, the joint resolution was ordered to be 
printed in the Record, as follows:

                              S.J. Res. 41

       Whereas Christmas trees have been sold commercially in the 
     United States since the 1850s;
       Whereas, by 1900, one in five American families decorated a 
     tree during the Christmas season, while, by 1930, a decorated 
     Christmas tree had become a nearly universal part of the 
     American Christmas celebration;
       Whereas 32.8 million households in the United States 
     purchased a live-cut Christmas tree in 2005;
       Whereas the placement and decoration of live-cut Christmas 
     trees in town squares across the country have become an 
     American tradition;
       Whereas, for generations, American families have traveled 
     hundreds and even thousands of miles to celebrate the 
     Christmas season together around a live-cut Christmas tree;
       Whereas 36 million live-cut Christmas trees are produced 
     each year, and 98 percent of these trees are shipped or sold 
     directly from Christmas tree farms;
       Whereas North Carolina, Oregon, Michigan, Washington, 
     Wisconsin, Pennsylvania, New York, Minnesota, Virginia, 
     California, and Ohio are the top producers of live-cut 
     Christmas tree, but Christmas trees are grown in all 50 
     States;
       Whereas there are more than 21,000 growers of Christmas 
     trees in the United States, and approximately 100,000 people 
     are employed in the live-cut Christmas tree industry;
       Whereas many Christmas tree growers grow trees on a part-
     time basis to supplement their other farm and non-farm 
     income;
       Whereas growing Christmas trees provides wildlife habitat;
       Whereas more than a half million acres of land were planted 
     in Christmas trees in 2005;
       Whereas 73 million new Christmas trees will be planted in 
     2006, and, on average, over 1,500 Christmas trees can be 
     planted per acre; and
       Whereas the retail value of all Christmas trees harvested 
     in 2005 was $1.4 billion: Now, therefore, be it
       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That 
     Congress--
       (1) recognizes the important contributions of the live-cut 
     Christmas tree industry, Christmas tree growers, and persons 
     employed in the live-cut Christmas tree industry to the 
     United States economy; and
       (2) urges the Secretary of Agriculture to establish 
     programs to raise awareness of the importance of the live-cut 
     Christmas tree industry.

                          ____________________