[Congressional Record (Bound Edition), Volume 152 (2006), Part 17]
[Senate]
[Pages 22076-22083]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. FRIST:
  S. 4052. A bill to authorize refugee relief and reconstruction 
assistance for North Korea; to the Committee on Foreign Relations.
  Mr. FRIST. 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. 4052

       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 ``North Korea Refugee Relief 
     and Reconstruction Act of 2006''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to help the people of North 
     Korea gain freedom from political oppression.

     SEC. 3. NORTH KOREA REFUGEE RELIEF AND RECONSTRUCTION FUND.

       (a) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``North Korea 
     Refugee Relief and Reconstruction Fund'' (in this Act 
     referred to as the ``Fund''), consisting of such amounts as 
     may be appropriated to the Fund pursuant to subsection (b) 
     and such articles and services as may be made available to 
     the Fund pursuant to subsection (c). The resources of the 
     Fund shall be available to carry out the programs and 
     activities identified in section 4.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for contributions to the Fund such sums as 
     may be necessary, not to exceed $10,000,000,000. Amounts 
     appropriated for the Fund shall remain available until 
     expended.
       (c) Drawdown Authority.--
       (1) In general.--The President may, pursuant to section 
     506(a)(2) of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2318(a)(2)), draw down articles and services from the 
     inventory and resources of any agency of the United States 
     Government for the Fund to carry out the programs and 
     activities identified in section 4.
       (2) Authority to acquire by contract or otherwise.--The 
     assistance authorized under paragraph (1) may include the 
     supply of articles and services that are acquired by contract 
     or otherwise.
       (3) Amount of assistance.--
       (A) Limit.--The aggregate value of assistance provided 
     under this subsection, as defined under section 644(m) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2403(m)), may not 
     exceed $1,000,000,000.
       (B) Assistance not counted toward special authority 
     limit.--Assistance provided under this subsection shall not 
     count toward any limitation under section 506 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2318).
       (4) Reimbursement.--
       (A) In general.--Articles and services provided under this 
     subsection shall be made available to the Fund without 
     reimbursement to the applicable appropriation, fund, or 
     account except to the extent that funds are appropriated 
     pursuant to subparagraph (B).
       (B) Authorization of appropriations.--
       (i) In general.--There are authorized to be appropriated to 
     the President such sums as may be necessary to reimburse the 
     applicable appropriation, fund, or account for the value of 
     articles and services provided under this subsection, as 
     defined under section 644(m) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2403(m)).
       (ii) Offset.--The maximum amount authorized to be 
     appropriated for the Fund under subsection (b) shall be 
     reduced by an amount equal to the aggregate value of the 
     articles and services made available under paragraph (1).

     SEC. 4. PROGRAMS AND ACTIVITIES OF THE FUND.

       (a) Refugee Relief, Relocation and Resettlement 
     Assistance.--The President may use amounts in the Fund to 
     provide relief to refugees that have escaped from North 
     Korea, to relocate such refugees to South Korea or other 
     countries prepared to accept them, and to assist in the 
     resettlement of such refugees in any country willing to 
     accept their resettlement. These activities may be carried 
     out pursuant to the authorities provided in the Migration and 
     Refugee Assistance Act of 1962 (22 U.S.C. 2601 et seq.).
       (b) Reunification and Reconstruction Assistance.--The 
     President may use amounts in the Fund to provide for the 
     benefit of persons living in the territory of North Korea the 
     types of assistance authorized for the Independent States of 
     the former Soviet Union under section 498 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2295) and for the countries 
     of the South Caucasus and Central Asia under sections 499A, 
     499B, 499C, and 499D of such Act (22 U.S.C. 2296a, 2296b, 
     2296c, and 2296d) in the event of--
       (1) the reunification of North Korea with South Korea; or
       (2) the emergence in North Korea of a new national 
     government committed to respect for human rights, 
     nonproliferation, and peaceful relations with the United 
     States and the other countries of the region.

     SEC. 5. SENSE OF CONGRESS ON INTERNATIONAL EFFORTS.

       It is the sense of Congress that the Governments of South 
     Korea, Japan, China, and Russia and other concerned 
     governments should make commitments commensurate to

[[Page 22077]]

     those that the United States is offering under this Act--
       (1) to assist refugees fleeing political oppression in 
     North Korea; and
       (2) to meet humanitarian and reconstruction needs arising 
     in connection with--
       (A) the reunification of North Korea with South Korea; or
       (B) the emergence in North Korea of a new national 
     government committed to respect for human rights, 
     nonproliferation, and peaceful relations with the United 
     States and the other countries in the region.
                                 ______
                                 
      By Mr. DODD (for himself, Mr. Cochran, Mr. Kennedy, Mr. Baucus, 
        Mr. Salazar, Mr. Rockefeller, Mrs. Boxer, and Mr. Kerry):
  S. 4053. A bill to amend the National and Community Service Act of 
1990 to establish a Summer of Service State grant program, a Summer of 
Service national direct grant program, and related national activities, 
and for other purposes; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. DODD. Mr. President, I rise to introduce, along with Senators 
Cochran, Kennedy, Baucus, Rockefeller, Salazar, Boxer and Kerry, the 
Summer of Service Act of 2006. This bill offers middle school students 
the chance to spend a summer in service to their communities as they 
transition into high school.
  Summer of Service creates a competitive grant program that enables 
States and localities to offer middle school students an opportunity to 
participate in a structured community service program over the summer 
months. It employs service-learning to teach civic participation 
skills, help young people see themselves as resources to their 
communities, expand educational opportunities and discourage ``summer 
academic slide.'' Providing tangible benefits to their communities, 
Summer of Service projects direct grantees to work on unmet human, 
educational, environmental and public safety needs and encourage all 
youth, regardless of age, income, or disability, to engage in community 
service. The program also grants participants with an educational award 
of up to $500 which can later be used to pay for college.
  Volunteerism not only brings support and services to communities in 
need, it also provides significant benefits to the students who 
participate. When young people participate in service activities they 
feel better able to control their lives in a positive way, avoiding 
risk behaviors, strengthening their community connections and become 
more engaged in their studies. When service is tied to what students 
are learning in school, they make gains on achievement tests, complete 
their homework more often, and increase their grade point average. 
Students who engage in service learning also improve their 
communication skills, gain increased awareness of career possibilities, 
and develop more positive workplace attitudes, setting the foundation 
for their place as America's future leaders. Studies also show that 
students who participate in community service are more likely to 
graduate high school and demonstrate interest in going to college.
  We often hear today of the tremendous pressures our young people face 
at home, in school and in the afterschool hours. Summer of Service 
provides young people with the chance to be a positive change in their 
communities. For this reason, I urge my colleagues to join me in 
supporting the Summer of Service Act of 2006. 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. 4053

       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 ``Summer of Service Act of 
     2006''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) Throughout the United States, there are pressing unmet 
     human, educational, environmental and public safety needs.
       (2) Americans desire to affirm common responsibilities and 
     shared values, and join together in positive experiences, 
     that transcend race, religion, gender, age, disability, 
     region, income, and education.
       (3) Americans of all ages can improve their communities and 
     become better citizens through service to their communities.
       (4) When youth participate in service activities and see 
     that they are able to improve the lives of others, the youth 
     feel better able to control their own lives in a positive 
     way, avoiding risky behaviors, strengthening their community 
     connections, and becoming more engaged in their own 
     education.
       (5) When youth service is tied to learning objectives, that 
     service is shown to decrease alienation and behavior 
     problems, and increase knowledge of community needs, 
     commitment to an ethic of service, and understanding of 
     politics and morality.
       (6) When service is tied to what students are learning in 
     school, the students make gains on achievement tests, 
     complete their homework more often, and increase their grade 
     point averages.
       (7) Students who engage in service-learning improve their 
     communication skills, increase their awareness of career 
     possibilities, have a deeper understanding of social and 
     economic issues that face the United States, and develop more 
     positive workplace attitudes, preparing them to take their 
     places as future leaders of the United States.
       (8) In a national poll, more than 80 percent of parents 
     said that their child would benefit from an after school 
     program that offered community service and 95 percent of 
     teens agreed that is important to volunteer time to community 
     efforts.
       (b) Purpose.--The purposes of this Act are to--
       (1) offer youth the chance to spend a summer in service to 
     their communities as a rite of passage before high school;
       (2) teach civic participation skills to youth and help 
     youth see themselves as resources and leaders for their 
     communities;
       (3) expand educational opportunities and discourage 
     ``summer slide'' by engaging youth in summer service-learning 
     opportunities;
       (4) encourage youth, regardless of age, income, or 
     disability, to engage in community service;
       (5) provide tangible benefits to the communities in which 
     Summer of Service programs are performed; and
       (6) enhance the social-emotional development of youth of 
     all backgrounds.

     SEC. 3. SUMMER OF SERVICE PROGRAMS.

       Title I of the National and Community Service Act of 1990 
     (42 U.S.C. 12511 et seq.) is amended--
       (1) by redesignating subtitles F, G, H, and I as subtitles 
     G, H, I, and J, respectively;
       (2) by redesignating sections 160 through 166 as sections 
     159A through 159G, respectively; and
       (3) by inserting after subtitle E the following:

                ``Subtitle F--Summer of Service Programs

     ``SEC. 161. DEFINITIONS.

       ``In this subtitle:
       ``(1) Educational award.--The term `educational award' 
     means an award disbursed under section 162B(d) or 163B(d).
       ``(2) Eligible entity.--The term `eligible entity' means a 
     public or private nonprofit organization, an institution of 
     higher education, a local educational agency, a public 
     elementary school or public secondary school, or a consortium 
     of 2 or more of the entities described in this paragraph.
       ``(3) Eligible youth.--The term `eligible youth' means a 
     youth who will be enrolled in the sixth, seventh, eighth, or 
     ninth grade at the end of the summer for which the youth 
     would participate in community service under this subtitle.

            ``PART I--SUMMER OF SERVICE STATE GRANT PROGRAM

     ``SEC. 162. GRANTS TO STATES.

       ``(a) Grants.--
       ``(1) In general.--The Chief Executive Officer shall award 
     grants on a competitive basis to States, to enable the State 
     Commissions--
       ``(A) to carry out State-level activities under subsection 
     (d); and
       ``(B) to award subgrants on a competitive basis under 
     section 162A to eligible entities to pay for the Federal 
     share of the cost of carrying out community service projects.
       ``(2) Funds for educational awards.--The Chief Executive 
     Officer shall decide whether funds appropriated to carry out 
     this part and available for educational awards (referred to 
     in this part as `educational award funds') shall be--
       ``(A) included in the funds for such grants to States and 
     subgrants to eligible entities; or
       ``(B) reserved by the Chief Executive Officer, deposited in 
     the National Service Trust for educational awards, and 
     disbursed according to paragraphs (1) and (3) of section 
     162B(d).
       ``(3) Periods of grants.--The Chief Executive Officer shall 
     award the grants for periods of 3 years.
       ``(4) Amounts of grants.--The Chief Executive Officer shall 
     award such a grant to a State for a program in a sum equal 
     to--
       ``(A) the amount obtained by multiplying $500 and the 
     number of youth who will participate in the program (to be 
     used for program expenses);
       ``(B) unless the Chief Executive Officer decides to deposit 
     funds for educational awards

[[Page 22078]]

     in the National Service Trust, as described in paragraph 
     (2)(B), an additional amount equal to the amount described in 
     subparagraph (A) (to be used for educational awards); and
       ``(C) an amount sufficient to provide for the reservation 
     for State-level activities described in subsection (d).
       ``(b) State Application.--To be eligible to receive a grant 
     under this section, a State shall submit an application to 
     the Chief Executive Officer at such time, in such manner, and 
     containing such information as the Chief Executive Officer 
     may require, including information that--
       ``(1) designates the State Commission as the agency 
     responsible for the administration and supervision of the 
     community service program carried out under this part in the 
     State;
       ``(2) describes how the State Commission will use funds 
     received under this part, including funds reserved for State-
     level activities under subsection (d);
       ``(3) describes the procedures and criteria the State 
     Commission will use for reviewing applications and awarding 
     subgrants on a competitive basis under section 162A to 
     eligible entities for projects, including how the State 
     Commission will give priority to an entity that--
       ``(A) offers a quality plan for or has an established track 
     record of carrying out the activities described in the 
     entity's application;
       ``(B) has a leadership position in the community from which 
     the youth participating in the project described in the 
     application will be drawn;
       ``(C) proposes a project that focuses on service by the 
     participants during the transition year before high school;
       ``(D) plans to ensure that at least 50 percent of the 
     participants are low-income eligible youth;
       ``(E) proposes a project that encourages or enables youth 
     to continue participating in community service throughout the 
     school year;
       ``(F) plans to involve the participants in the design and 
     operation of the project, including involving the 
     participants in conducting a needs-based assessment of 
     community needs;
       ``(G) proposes a project that involves youth of different 
     ages, races, sexes, ethnic groups, religions, disability 
     categories, or economic backgrounds serving together; and
       ``(H) proposes a project that provides high quality 
     service-learning experiences;
       ``(4) describes the steps the State Commission will take, 
     including the provision of ongoing technical assistance 
     described in subsection (d)(2) and training, to ensure that 
     projects funded under section 162A will implement effective 
     strategies; and
       ``(5) describes how the State Commission will evaluate the 
     projects, which shall include, at a minimum--
       ``(A) a description of the objectives and benchmarks that 
     will be used to evaluate the projects; and
       ``(B) a description of how the State Commission will 
     disseminate the results of the evaluations, as described in 
     subsection (d)(4)(C).
       ``(c) Applicant Review.--
       ``(1) Selection criteria.--The Chief Executive Officer 
     shall evaluate applications for grants under this section 
     based on the quality, innovation, replicability, and 
     sustainability of the State programs proposed by the 
     applicants.
       ``(2) Review panels.--The Chief Executive Officer shall 
     employ the review panels established under section 165A in 
     reviewing the applications.
       ``(3) Notification of applicants.--If the Chief Executive 
     Officer rejects an application submitted under this section, 
     the Chief Executive Officer shall promptly notify the 
     applicant of the reasons for the rejection of the 
     application.
       ``(4) Resubmission and reconsideration.--The Chief 
     Executive Officer shall provide an applicant notified of 
     rejection with a reasonable opportunity to revise and 
     resubmit the application. At the request of the applicant, 
     the Chief Executive Officer shall provide technical 
     assistance to the applicant as part of the resubmission 
     process. The Chief Executive Officer shall promptly 
     reconsider an application resubmitted under this paragraph.
       ``(d) State-Level Activities.--A State that receives a 
     grant under this section may reserve up to 5 percent of the 
     grant funds for State-level activities, which may include--
       ``(1) hiring staff to administer the program carried out 
     under this part in the State;
       ``(2) providing technical assistance, including technical 
     assistance concerning the professional development and 
     training of personnel, to eligible entities that receive 
     subgrants under section 162A;
       ``(3) conducting outreach and dissemination of program-
     related information to ensure the broadest possible 
     involvement of eligible entities and local eligible youth in 
     the program carried out under this part; and
       ``(4)(A) conducting an evaluation of the projects carried 
     out by eligible entities under this part;
       ``(B) using the results of the evaluation to collect and 
     compile information on best practices and models for such 
     projects; and
       ``(C) disseminating widely the results of the evaluation.

     ``SEC. 162A. SUBGRANTS TO ELIGIBLE ENTITIES.

       ``(a) Subgrants.--
       ``(1) In general.--A State that receives a grant under 
     section 162 shall use the grant funds to award subgrants on a 
     competitive basis to eligible entities to pay for the Federal 
     share of the cost of carrying out community service projects.
       ``(2) Periods of subgrants.--The State shall award the 
     subgrants for periods of 3 years.
       ``(3) Amounts of subgrants.--The State shall award such a 
     subgrant to an eligible entity for a project in a sum equal 
     to--
       ``(A) the amount obtained by multiplying $500 and the 
     number of youth who will participate in the project (to be 
     used for project expenses); and
       ``(B) unless the Chief Executive Officer decides to deposit 
     funds for educational awards in the National Service Trust, 
     as described in section 162(a)(2)(B), an additional amount 
     equal to the amount described in subparagraph (A) (to be used 
     for educational awards).
       ``(b) Applications.--To be eligible to receive a subgrant 
     under this section for a project, an entity shall submit an 
     application to the State Commission at such time, in such 
     manner, and containing such information as the State 
     Commission may require, including information that--
       ``(1) designates the community in which the entity will 
     carry out the project, which community may be the service 
     area of an elementary school or secondary school, a school 
     district, a city, town, village, or other locality, a county, 
     the area in which a public housing project is located, a 
     neighborhood, or another geographically or politically 
     designated area;
       ``(2) describes the manner in which the entity will--
       ``(A) engage a substantial portion of the youth in the 
     designated community;
       ``(B) engage a variety of entities and individuals, such as 
     youth organizations, elementary schools or secondary schools, 
     elected officials, organizations offering summer camps, civic 
     groups, nonprofit organizations, and other entities within 
     the designated community to offer a variety of summer service 
     opportunities as part of the project;
       ``(C) ensure that the youth participating in the project 
     engage in service-learning;
       ``(D) engage as volunteers in the project business, civic, 
     or community organizations or individuals, which may include 
     older individuals, volunteers in the National Senior 
     Volunteer Corps established under title II of the Domestic 
     Volunteer Service Act of 1973 (42 U.S.C. 5000 et seq.), 
     participants in the school-based and community-based service-
     learning programs carried out under parts I and II of 
     subtitle B, participants in the AmeriCorps program carried 
     out under subtitle C, or students enrolled in secondary 
     schools or institutions of higher education;
       ``(E) ensure that youth participating in the project 
     provide at least 100 hours of community service for the 
     project;
       ``(F) recruit eligible youth to participate in the project;
       ``(G) recruit service sponsors for community service 
     activities carried out through the project, if the eligible 
     entity intends to enter into an arrangement with such 
     sponsors to provide project placements for the youth;
       ``(H) promote leadership development and build an ethic of 
     civic responsibility among the youth;
       ``(I) provide team-oriented, adult-supervised experiences 
     through the project;
       ``(J) conduct opening and closing ceremonies honoring 
     participants in the project;
       ``(K) involve youth who are participating in the project in 
     the design and planning of the project; and
       ``(L) provide training, which may include life skills, 
     financial education, and employment training, in addition to 
     training concerning the specific community service to be 
     provided through the project, for the youth; and
       ``(3)(A) specifies project outcome objectives relating to 
     youth development or education achievement, community 
     strengthening, and community improvement;
       ``(B) describes how the eligible entity will establish 
     annual benchmarks for the objectives, and annually conduct an 
     evaluation to measure progress toward the benchmarks; and
       ``(C) provides an assurance that the eligible entity will 
     annually make the results of such evaluation available to the 
     State.
       ``(c) Continued Eligibility.--To be eligible to receive 
     funds under this section for a second or subsequent year of a 
     subgrant period, an entity shall demonstrate that the entity 
     has met the annual benchmarks for the objectives described in 
     subsection (b)(3).
       ``(d) Selection of Subgrant Recipients.--In awarding 
     subgrants under this section, the State shall ensure that 
     projects are funded in a variety of geographic areas, 
     including urban and rural areas.

     ``SEC. 162B. SUMMER OF SERVICE PROJECTS.

       ``(a) Use of Funds.--
       ``(1) In general.--An eligible entity that receives a 
     subgrant under section 162A shall use the subgrant funds to 
     carry out a community service project.
       ``(2) Specific uses.--The eligible entity may use the 
     subgrant funds to pay for--

[[Page 22079]]

       ``(A) hiring staff to administer the project;
       ``(B) developing or acquiring service-learning curricula 
     for the project, to be integrated into academic programs, 
     including making modifications for students who are 
     individuals with disabilities and students with limited 
     English proficiency;
       ``(C) forming local partnerships to develop and offer a 
     variety of service-learning programs for local youth 
     participating in the project;
       ``(D) establishing benchmarks, conducting evaluations, and 
     making evaluation results available, as described in 
     subparagraphs (B) and (C) of section 162A(b)(3);
       ``(E) conducting outreach and dissemination of program-
     related information to ensure the broadest possible 
     involvement of local eligible youth and community partners in 
     the project;
       ``(F) conducting ceremonies as described in section 
     162A(b)(2)(J);
       ``(G) carrying out basic implementation of the community 
     service project; and
       ``(H) carrying out planning activities, during an initial 6 
     to 9 months of the subgrant period.
       ``(3) Non-federal share.--An eligible entity that receives 
     a subgrant under section 162A shall provide the non-Federal 
     share of the costs described in section 162A(a)(1) from 
     private or public sources other than the subgrant funds. The 
     sources may include fees charged to the parents of the youth 
     participating in the community service project involved and 
     determined on a sliding scale based on income.
       ``(b) Service Projects.--
       ``(1) Eligible service categories.--The eligible entity may 
     use the subgrant funds to carry out a community service 
     project to meet unmet human, educational, environmental, or 
     public safety needs.
       ``(2) Ineligible service categories.--The eligible entity 
     may not use the subgrant funds to carry out a service project 
     in which participants perform service described in section 
     132(a).
       ``(c) Period of Service Projects.--The eligible entity--
       ``(1) shall carry out the community service project funded 
     under section 162A during a period, the majority of which 
     occurs in the months of June, July, and August; and
       ``(2) may carry out the project in conjunction with a 
     related after school or in-school service-learning project 
     operated during the remaining months of the year.
       ``(d) Educational Award.--
       ``(1) Eligibility.--Each eligible youth who provides at 
     least 100 hours of community service for a project carried 
     out under this part shall be eligible to receive an 
     educational award of not more than $500. An eligible youth 
     may participate in more than 1 such project but shall not 
     receive in excess of $1,000 in total for such participation.
       ``(2) Disbursements by eligible entity.--If the Chief 
     Executive Officer decides under section 162(a)(2)(A) to 
     include educational award funds in subgrants under this part, 
     the eligible entity carrying out the project shall--
       ``(A) disburse an educational award described in paragraph 
     (1) in accordance with regulations issued by the Chief 
     Executive Officer, which--
       ``(i) may permit disbursal of the award to the parents of 
     the youth that have established a qualified tuition program 
     account under section 529 of the Internal Revenue Code of 
     1986, for deposit into the account; but
       ``(ii) shall not otherwise permit disbursal of the award to 
     the parents; or
       ``(B) enter into a contract with a private sector 
     organization to hold the educational award funds and disburse 
     the educational award as described in subparagraph (A).
       ``(3) Disbursements by chief executive officer.--If the 
     Chief Executive Officer decides under section 162(a)(2)(B) to 
     reserve educational award funds, the Chief Executive Officer 
     shall disburse the educational award as described in 
     paragraph (2)(A).

     ``SEC. 162C. SUPPLEMENTAL GRANTS.

       ``(a) In General.--The Chief Executive Officer may award a 
     supplemental grant to an eligible entity that demonstates the 
     matters described in subsection (b), to assist the entity in 
     carrying out a community service project in accordance with 
     the requirements of this part, as determined appropriate by 
     the Chief Executive Officer.
       ``(b) Application.--To be eligible to receive a 
     supplemental grant under subsection (a), an entity shall 
     submit an application to the Chief Executive Officer, at such 
     time, in such manner, and containing such information as the 
     Chief Executive Officer may require, including information 
     demonstrating--
       ``(1) that the entity received a subgrant under section 
     162A for a community service project; and
       ``(2) that the entity would be unable to carry out the 
     project without substantial hardship unless the entity 
     received a supplemental grant under subsection (a).
       ``(c) Amount of Grant.--The Chief Executive Officer shall 
     award such a grant to an eligible entity for the project in 
     the amount obtained by multiplying $250 and the number of 
     youth who will participate in the project (to be used for 
     project expenses).

     ``SEC. 162D. INDIAN TRIBES AND TERRITORIES.

       ``From the funds made available to carry out this part 
     under section 165(b)(2)(A) for any fiscal year, the Chief 
     Executive Officer shall reserve an amount of not more than 3 
     percent for payments to Indian tribes, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands, to be used in accordance with 
     the requirements of this part, as determined appropriate by 
     the Chief Executive Officer.

       ``PART II--SUMMER OF SERVICE NATIONAL DIRECT GRANT PROGRAM

     ``SEC. 163. NATIONAL DIRECT GRANTS.

       ``(a) Grants.--
       ``(1) In general.--The Chief Executive Officer shall award 
     grants on a competitive basis to public or private 
     organizations (referred to individually in this part as an 
     `organization')--
       ``(A) to carry out quality assurance activities under 
     subsection (d); and
       ``(B) to pay for the Federal share of the cost of carrying 
     out a community service program--
       ``(i) in a State where the State Commission does not apply 
     for funding under part I; or
       ``(ii) in multiple States.
       ``(2) Funds for educational awards.--The Chief Executive 
     Officer shall decide whether funds appropriated to carry out 
     this part and available for educational awards (referred to 
     in this part as `educational award funds') shall be--
       ``(A) included in the funds for such grants to 
     organizations and any subgrants to local providers; or
       ``(B) reserved by the Chief Executive Officer, deposited in 
     the National Service Trust for educational awards, and 
     disbursed according to paragraphs (1) and (3) of section 
     163B(d).
       ``(3) Periods of grants.--The Chief Executive Officer shall 
     award the grants for periods of 3 years.
       ``(4) Amounts of grants.--The Chief Executive Officer shall 
     award such a grant to an organization for a program in a sum 
     equal to--
       ``(A) the amount obtained by multiplying $500 and the 
     number of youth who will participate in the program (to be 
     used for program expenses);
       ``(B) unless the Chief Executive Officer decides to deposit 
     funds for educational awards in the National Service Trust, 
     as described in paragraph (2)(B), an additional amount equal 
     to the amount described in subparagraph (A) (to be used for 
     educational awards); and
       ``(C) an amount sufficient to provide for the reservation 
     for quality assurance activities described in subsection (d).
       ``(b) National Direct Applications.--To be eligible to 
     receive a grant under this section for a community service 
     program, an organization shall submit an application to the 
     Chief Executive Officer at such time, in such manner, and 
     containing such information as the Chief Executive Officer 
     may require, including information that--
       ``(1) describes how the organization will use funds 
     received under this part, including funds reserved for 
     quality assurance activities under subsection (d);
       ``(2)(A) describes the procedures and criteria the 
     organization will use for reviewing applications and awarding 
     subgrants on a competitive basis under section 163A to local 
     providers for projects, including how the organization will 
     give priority to a provider that, with respect to each 
     project described in the application--
       ``(i) offers a quality plan for or has an established track 
     record of carrying out the activities described in the 
     provider's application;
       ``(ii) has a leadership position in the community from 
     which the youth participating in the project will be drawn;
       ``(iii) proposes a project that focuses on service by the 
     participants during the transition year before high school;
       ``(iv) plans to ensure that at least 50 percent of the 
     participants are low-income eligible youth;
       ``(v) proposes a project that encourages or enables youth 
     to continue participating in community service throughout the 
     school year;
       ``(vi) plans to involve the participants in the design and 
     operation of the project, including involving the 
     participants in conducting a needs-based assessment of 
     community needs;
       ``(vii) proposes a project that involves youth of different 
     ages, races, sexes, ethnic groups, religions, disability 
     categories, or economic backgrounds serving together; and
       ``(viii) proposes a project that provides high quality 
     service-learning experiences; or
       ``(B) if the organization will carry out the community 
     service program directly, demonstrates that the organization 
     meets the requirements of clauses (i) through (viii) of 
     subparagraph (A) with respect to each project described in 
     the application;
       ``(3) describes the steps the organization will take, 
     including the provision of ongoing technical assistance 
     described in subsection (d)(2)) and training, to ensure that 
     projects funded under this part will implement effective 
     strategies; and
       ``(4) describes how the organization will evaluate the 
     projects funded under this part, which shall include, at a 
     minimum--

[[Page 22080]]

       ``(A) a description of the objectives and benchmarks that 
     will be used to evaluate the projects; and
       ``(B) a description of how the organization will 
     disseminate widely the results of the evaluations, as 
     described in subsection (d)(3)(C).
       ``(c) Applicant Review.--
       ``(1) Selection criteria.--The Chief Executive Officer 
     shall evaluate applications for grants under this section 
     based on the quality, innovation, replicability, and 
     sustainability of the programs proposed by the applicants.
       ``(2) Review panels.--The Chief Executive Officer shall 
     employ the review panels established under section 165A in 
     reviewing the applications.
       ``(3) Notification of applicants.--If the Chief Executive 
     Officer rejects an application submitted under this section, 
     the Chief Executive Officer shall promptly notify the 
     applicant of the reasons for the rejection of the 
     application.
       ``(4) Resubmission and reconsideration.--The Chief 
     Executive Officer shall provide an applicant notified of 
     rejection with a reasonable opportunity to revise and 
     resubmit the application. At the request of the applicant, 
     the Chief Executive Officer shall provide technical 
     assistance to the applicant as part of the resubmission 
     process. The Chief Executive Officer shall promptly 
     reconsider an application resubmitted under this paragraph.
       ``(d) Quality Assurance Activities.--An organization that 
     receives a grant under this section may reserve up to 5 
     percent of the grant funds for quality assurance activities, 
     which may include--
       ``(1) hiring staff to administer the program carried out 
     under this part by the organization;
       ``(2) providing technical assistance, including technical 
     assistance concerning the professional development and 
     training of personnel, to local providers that receive 
     subgrants under section 163A; and
       ``(3)(A) conducting an evaluation of the projects carried 
     out by local providers of the organization under this part;
       ``(B) using the results of the evaluation to collect and 
     compile information on best practices and models for such 
     projects; and
       ``(C) disseminating widely the results of the evaluation.

     ``SEC. 163A. SUBGRANTS TO LOCAL PROVIDERS.

       ``(a) Subgrants.--
       ``(1) In general.--An organization that receives a grant 
     under section 163 may use the grant funds to award subgrants 
     on a competitive basis to local providers to pay for the 
     Federal share of the cost of carrying out community service 
     projects.
       ``(2) Periods of subgrants.--The organization shall award 
     the subgrants for periods of 3 years.
       ``(3) Amounts of subgrants.--The organization shall award 
     such a subgrant to a local provider for a project in a sum 
     equal to--
       ``(A) the amount obtained by multiplying $500 and the 
     number of youth who will participate in the project (to be 
     used for project expenses); and
       ``(B) unless the Chief Executive Officer decides to deposit 
     funds for educational awards in the National Service Trust, 
     as described in section 163(a)(2)(B), an additional amount 
     equal to the amount described in subparagraph (A) (to be used 
     for educational awards).
       ``(b) Local Provider Application.--To be eligible to 
     receive a subgrant under this section, a local provider shall 
     submit an application to the organization at such time, in 
     such manner, and containing such information as the 
     organization may require, including information that--
       ``(1) designates the communities in which the local 
     provider will carry out projects under the subgrant, each of 
     which communities may be the service area of an elementary 
     school or secondary school, a school district, a city, town, 
     village, or other locality, a county, the area in which a 
     public housing project is located, a neighborhood, or another 
     geographically or politically designated area;
       ``(2) for each project described in such application, 
     describes the manner in which the local provider will--
       ``(A) engage a substantial portion of the youth in the 
     designated community involved;
       ``(B) engage a variety of entities and individuals, such as 
     youth organizations, elementary schools or secondary schools, 
     elected officials, organizations offering summer camps, civic 
     groups, nonprofit organizations, and other entities within 
     the designated community to offer a variety of summer service 
     opportunities as part of the project;
       ``(C) ensure that the youth participating in the project 
     engage in service-learning;
       ``(D) engage as volunteers in the project business, civic, 
     or community organizations or individuals, which may include 
     older individuals, volunteers in the National Senior 
     Volunteer Corps established under title II of the Domestic 
     Volunteer Service Act of 1973 (42 U.S.C. 5000 et seq.), 
     participants in the school-based and community-based service-
     learning programs carried out under parts I and II of 
     subtitle B, participants in the AmeriCorps program carried 
     out under subtitle C, or students enrolled in secondary 
     schools or institutions of higher education;
       ``(E) ensure that youth participating in the project 
     provide at least 100 hours of community service for the 
     project;
       ``(F) recruit eligible youth to participate in the project;
       ``(G) recruit service sponsors for community service 
     activities carried out through the project, if the local 
     provider intends to enter into an arrangement with such 
     sponsors to provide project placements for the youth;
       ``(H) promote leadership development and build an ethic of 
     civic responsibility among the youth;
       ``(I) provide team-oriented, adult-supervised experiences 
     through the project;
       ``(J) conduct opening and closing ceremonies honoring 
     participants in the project;
       ``(K) involve youth who are participating in the project in 
     the design and planning of the project; and
       ``(L) provide training, which may include life skills, 
     financial education, and employment training, in addition to 
     training concerning the specific community service to be 
     provided through the project, for the youth; and
       ``(3)(A) specifies project outcome objectives relating to 
     youth development or education achievement, community 
     strengthening, and community improvement;
       ``(B) describes how the local provider will establish 
     annual benchmarks for the objectives, and annually conduct an 
     evaluation to measure progress toward the benchmarks; and
       ``(C) provides an assurance that the local provider will 
     annually make the results of such evaluation available to the 
     organization.
       ``(c) Continued Eligibility.--To be eligible to receive 
     funds under this section for a second or subsequent year of a 
     subgrant period, a local provider shall demonstrate that all 
     the projects for which the subgrant was awarded met the 
     annual benchmarks for the objectives described in subsection 
     (b)(3).
       ``(d) Selection of Subgrant Recipients.--In awarding 
     subgrants under this section, the organization shall ensure 
     that projects are funded in a variety of geographic areas, 
     including urban and rural areas.

     ``SEC. 163B. SUMMER OF SERVICE PROJECTS.

       ``(a) Use of Funds.--
       ``(1) In general.--A local provider that receives a 
     subgrant under section 163A shall use the subgrant funds to 
     carry out a community service project.
       ``(2) Specific uses.--The local provider may use the 
     subgrant funds, to pay for--
       ``(A) hiring staff to administer the project;
       ``(B) developing or acquiring service-learning curricula 
     for the project, to be integrated into academic programs, 
     including making modifications for students who are 
     individuals with disabilities and students with limited 
     English proficiency;
       ``(C) forming local partnerships to develop and offer a 
     variety of service-learning programs for local youth 
     participating in the project;
       ``(D) establishing benchmarks, conducting evaluations, and 
     making evaluation results available, as described in 
     subparagraphs (B) and (C) of section 163A(b)(3);
       ``(E) conducting outreach and dissemination of program-
     related information to ensure the broadest possible 
     involvement of local eligible youth and community partners in 
     the project;
       ``(F) conducting ceremonies as described in section 
     163A(b)(2)(J);
       ``(G) carrying out basic implementation of the community 
     service project; and
       ``(H) carrying out planning activities, during an initial 6 
     to 9 months of the grant period.
       ``(3) Non-federal share.--A local provider that receives a 
     subgrant under section 163A shall provide the non-Federal 
     share of the cost described in section 163A(a)(1) from 
     private or public sources other than the subgrant funds. The 
     sources may include fees charged to the parents of the youth 
     participating in the community service project involved and 
     determined on a sliding scale based on income.
       ``(b) Service Projects.--
       ``(1) Eligible service categories.--The local provider may 
     use the subgrant funds to carry out a community service 
     project to meet unmet human, educational, environmental, or 
     public safety needs.
       ``(2) Ineligible service categories.--The local provider 
     may not use the subgrant funds to carry out a service project 
     in which participants perform service described in section 
     132(a).
       ``(c) Period of Service Projects.--The local provider--
       ``(1) shall carry out the community service project funded 
     under section 163A during a period, the majority of which 
     occurs in the months of June, July, and August; and
       ``(2) may carry out the project in conjunction with a 
     related after school or in-school service-learning project 
     operated during the remaining months of the year.
       ``(d) Educational Award.--
       ``(1) Eligibility.--Each eligible youth who provides at 
     least 100 hours of community service for a project carried 
     out under this part shall be eligible to receive an 
     educational award of not more than $500. An eligible youth 
     may participate in more than 1 such project but shall not 
     receive in excess of $1,000 in total for such participation.

[[Page 22081]]

       ``(2) Disbursements by local provider.--If the Chief 
     Executive Officer decides under section 163(a)(2)(A) to 
     include educational award funds in subgrants under this part, 
     the local provider carrying out the project shall--
       ``(A) disburse an educational award described in paragraph 
     (1) in accordance with regulations issued by the Chief 
     Executive Officer, which--
       ``(i) may permit disbursal of the award to the parents of 
     the youth that have established a qualified tuition program 
     account under section 529 of the Internal Revenue Code of 
     1986, for deposit into the account; but
       ``(ii) shall not otherwise permit disbursal of the award to 
     the parents; or
       ``(B) enter into a contract with a private sector 
     organization to hold the educational award funds and disburse 
     the educational award as described in subparagraph (A).
       ``(3) Disbursements by chief executive officer.--If the 
     Chief Executive Officer decides under section 163(a)(2)(B) to 
     reserve educational award funds, the Chief Executive Officer 
     shall disburse the educational award as described in 
     paragraph (2)(A).
       ``(e) Application of Section.--References in this section 
     to local providers, with respect to the use of subgrant funds 
     received under section 163A, apply equally to organizations 
     that carry out community service projects directly, with 
     respect to the use of grant funds received under section 163.

     ``SEC. 163C. SUPPLEMENTAL GRANTS.

       ``(a) In General.--The Chief Executive Officer may award a 
     supplemental grant to a local provider that demonstates the 
     matters described in subsection (b), to assist the provider 
     in carrying out a community service project in accordance 
     with the requirements of this part, as determined appropriate 
     by the Chief Executive Officer.
       ``(b) Application.--To be eligible to receive a 
     supplemental grant under subsection (a), a provider shall 
     submit an application to the Chief Executive Officer, at such 
     time, in such manner, and containing such information as the 
     Chief Executive Officer may require, including information 
     demonstrating--
       ``(1) that the provider received a subgrant under section 
     163A for a community service project; and
       ``(2) that the provider would be unable to carry out the 
     project without substantial hardship unless the provider 
     received a supplemental grant under subsection (a).
       ``(c) Amount of Grant.--The Chief Executive Officer shall 
     award such a grant to a local provider for the project in the 
     amount obtained by multiplying $250 and the number of youth 
     who will participate in the project (to be used for project 
     expenses).

           ``PART III--SUMMER OF SERVICE NATIONAL ACTIVITIES

     ``SEC. 164. NATIONAL ACTIVITIES.

       ``(a) National Quality and Outreach Activities.--The Chief 
     Executive Officer may use funds reserved under section 
     165(b)(1), either directly or through grants and contracts, 
     to--
       ``(1) provide technical assistance and training to 
     recipients of grants and subgrants under parts I and II;
       ``(2) conduct outreach and dissemination of program-related 
     information to ensure the broadest possible involvement of 
     States, eligible entities, organizations, local providers, 
     and eligible youth in programs carried out under parts I and 
     II; and
       ``(3) to carry out other activities designed to improve the 
     quality of programs carried out under parts I and II.
       ``(b) National Evaluation.--
       ``(1) Reservation.--For each fiscal year, the Chief 
     Executive Officer shall reserve not more than the greater of 
     $500,000, or 1 percent, of the funds described in subsection 
     (a) for the purposes described in paragraph (2).
       ``(2) Evaluation.--The Chief Executive Officer shall use 
     the reserved funds--
       ``(A) to arrange for an independent evaluation of the 
     programs carried out under parts I and II, to be conducted in 
     the second and third years in which the programs are 
     implemented; and
       ``(B) using the results of the evaluation, to collect and 
     compile information on models and best practices for such 
     programs; and
       ``(C) to disseminate widely the results of the evaluation.
       ``(3) Report.--The Chief Executive Officer shall annually 
     submit to the Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Education and the 
     Workforce of the House of Representatives, a report 
     concerning the results of the evaluations conducted under 
     paragraph (2). Such reports shall also contain information on 
     models of best practices and any other findings or 
     recommendations developed by the Chief Executive Officer 
     based on such evaluations. Such reports shall be made 
     available to the general public.

                     ``PART IV--GENERAL PROVISIONS

     ``SEC. 165. AUTHORIZATION OF APPROPRIATIONS AND AVAILABILITY.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subtitle 
     $100,000,000 for fiscal year 2007 and such sums as may be 
     necessary for each subsequent fiscal year.
       ``(b) Availability.--Of the funds appropriated under 
     subsection (a) for a fiscal year, the Chief Executive 
     Officer--
       ``(1) shall reserve not more than 4 percent to carry out 
     activities under part III (relating to national activities); 
     and
       ``(2) from the remainder of such funds, shall make 
     available--
       ``(A) a portion equal to 66\2/3\ percent of such funds for 
     programs carried out under part I (relating to the State 
     grant program), including programs carried out under section 
     162D; and
       ``(B) a portion equal to 33\1/3\ percent of such funds for 
     programs carried out under part II (relating to the national 
     direct grant program).
       ``(c) Reallocation.--If the Chief Executive Officer 
     determines that funds from the portion described in 
     subsection (b)(2)(A) will not be needed to carry out programs 
     under part I for a fiscal year, the Chief Executive Officer 
     shall make the funds available for programs under part II for 
     that fiscal year.

     ``SEC. 165A. REVIEW PANELS.

       ``The Chief Executive Officer shall establish panels of 
     experts for the purpose of reviewing applications submitted 
     under sections 162, 162C, 162D, and 163.

     ``SEC. 165B. CONSTRUCTION.

       ``An individual participating in service in a program 
     described in this subtitle shall not be considered to be an 
     employee engaged in employment for purposes of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 201 et seq.).''.

     SEC. 4. CONFORMING AMENDMENTS.

       (a) Redesignation of Subtitles.--
       (1) Section 118(a) of the National and Community Service 
     Act of 1990 (42 U.S.C. 12551(a)) is amended by striking 
     ``subtitle H'' and inserting ``subtitle I''.
       (2) Section 122(a)(2) of such Act (42 U.S.C. 12572(a)(2)) 
     is amended by striking ``subtitle I'' and inserting 
     ``subtitle J''.
       (3) Section 193A(f)(1) of such Act (42 U.S.C. 12651d(f)(1)) 
     is amended by striking ``subtitles C and I'' and inserting 
     ``subtitles C and J''.
       (4) Section 501(a)(2) of such Act (42 U.S.C. 12681(a)(2)) 
     is amended--
       (A) in the paragraph heading, by striking ``Subtitles c, d, 
     and h'' and inserting ``Subtitles c, d, and i'';
       (B) in subparagraph (A), by striking ``subtitles C and H'' 
     and inserting ``subtitles C and I''; and
       (C) in subparagraph (B), by striking ``subtitle H'' and 
     inserting ``subtitle I''.
       (b) Redesignation of Sections.--
       (1) Section 155(d)(3) of such Act (42 U.S.C. 12615(d)(3)) 
     is amended by striking ``section 162(a)(3)'' and inserting 
     ``section 159C(a)(3)''.
       (2) Section 156(d) of such Act (42 U.S.C. 12616(d)) is 
     amended by striking ``section 162(a)(3)'' and inserting 
     ``section 159C(a)(3)''.
       (3) Section 159(c) of such Act (42 U.S.C. 12619(c)) is 
     amended--
       (A) in paragraph (2)(C)(i), by striking ``section 
     162(a)(2)'' and inserting ``section 159C(a)(2)''; and
       (B) in paragraph (3), by striking ``section 162(a)(2)(A)'' 
     and inserting ``section 159C(a)(2)(A)''.
       (4) Section 159B(b)(1)(B) of such Act (as redesignated by 
     section 3(2)) is amended by striking ``section 162(a)(3)'' 
     and inserting ``section 159C(a)(3)''.
       (c) Relationship to National Service Educational Award 
     Provisions.--
       (1) National service trust.--Section 145 of the National 
     and Community Service Act of 1990 (42 U.S.C. 12601) is 
     amended--
       (A) in subsection (a)--
       (i) in paragraph (2), by striking ``and'' at the end;
       (ii) in paragraph (3), by striking the period and inserting 
     ``, other than interest or proceeds described in paragraph 
     (4)(B); and''; and
       (iii) by adding at the end the following:
       ``(4)(A) any amounts deposited in the Trust under subtitle 
     F; and
       ``(B) the interest on, and proceeds from the sale or 
     redemption of, any obligations held by the Trust for a 
     program carried out under subtitle F.''; and
       (B) in subsection (c), by inserting ``(other than any 
     amounts deposited in the Trust under subtitle F)'' after 
     ``Amounts in the Trust''.
       (2) Availability of amounts in national service trust.--
     Section 148(a) of the National and Community Service Act of 
     1990 (42 U.S.C. 12604(a)) is amended by inserting ``(other 
     than any amounts deposited in the Trust under subtitle F)'' 
     after ``Amounts in the Trust''.
                                 ______
                                 
      Mr. CRAIG (for himself and Mr. Akaka):
  S. 4054. A bill to amend title 38, United States Code, to expand the 
number of individuals qualifying for retroactive benefits from 
traumatic injury protection coverage under Servicemembers' Group Life 
Insurance; to the Committee on Veterans' Affairs.
  Mr. CRAIG. Mr. President, I have sought recognition to comment on 
legislation that the distinguished Senator from Hawaii, Senator Akaka, 
and I are introducing today. This bill would expand the number of 
eligible recipients of retroactive payments under the Traumatic Injury 
Protection under Servicemembers' Group Life Insurance,

[[Page 22082]]

or ``TSGLI'', benefit. Most of my colleagues have perhaps heard the 
story of how this important benefit became law and what its intended 
purpose is, but I believe it is worth repeating.
  In April of 2005 I was visited by three servicemembers who were 
seriously injured during Operation Iraqi Freedom (OIF). They were 
members of an organization called the Wounded Warrior Project, and they 
told me of their lengthy recovery times at Walter Reed Army Medical 
Center and the financial toll that that period of convalescence had on 
them and their families. They talked about wives, parents, and other 
relatives who had taken long absences from work, and some who had even 
quit their work, in order to spend time with those recovering at Walter 
Reed. And they told me that the Department of Veterans Affairs 
compensation system was no help because, by law, those benefits do not 
kick in until after separation from service.
  Based on their experiences, these wounded warriors recommended that I 
pursue legislation to create a new insurance benefit for those with 
traumatic injuries such as theirs. The insurance would pay between 
$25,000 and $100,000 as soon as possible after an injury occurred, 
thereby bridging the gap in assistance needed during the time of a 
wounded servicemember's recovery and the time of his or her separation 
from service. They asked that I make the legislation prospective only, 
meaning that they, and hundreds of others, would go without any TSGLI 
payment. I honored that request and, together with Senator Akaka and 
other Members of the Committee on Veterans' Affairs, introduced an 
amendment to the 2005 Emergency Supplemental Appropriations bill then 
pending before the Senate.
  A second degree amendment was later unanimously agreed to which 
authorized retroactive benefit payments to all of those injured in the 
Operation Iraqi Freedom and Operation Enduring Freedom (OEF) theaters 
of operation--providing for TSGLI payments to hundreds of 
servicemembers who had been seriously injured since the start of the 
wars in Afghanistan and Iraq. At the time, the retroactive TSGLI 
provision was consistent with other retroactive benefits approved 
within the Emergency Supplemental bill, such as $238,000 in combined 
Servicemembers' Group Life Insurance (SGLI) and death gratuity benefits 
that were provided retroactively to survivors of those killed in combat 
operations since the start of the War on Terror. Needless to say, the 
TSGLI amendments were approved by the Congress and enacted into law.
  Fast forward to the present. TSGLI has been up and running since 
December 1, 2005, and provides financial assistance of $25,000 to 
$100,000 to traumatically injured servicemembers within, on average, 60 
days of the date of the injury causing event. As of September 2006, 
almost 2,300 wounded OIF/OEF servicemembers have benefited under the 
retroactive portion of the program. For those with injuries post 
December 1, 2005, it does not matter if an injury occurs as a result of 
combat operations or training exercises--payment under TSGLI is 
available in either situation.
  The Senate Committee on Veterans' Affairs held a hearing on the TSGLI 
benefit this past September. The Committee received testimony from the 
Wounded Warrior Project, the organization largely responsible for 
TSGLI's conception. While very pleased with the program overall, a 
serious concern was raised regarding the equity of only extending 
retroactive TSGLI payments to those injured during Operations Iraqi and 
Enduring Freedom. Mr. Jeremy Chwat, testifying for the Wounded Warrior 
Project that day, used the example of one servicemember as 
representative of others who are not now eligible for benefits:

       Brave men and women like Seaman Robert Roeder who was 
     injured on January 29, 2005 when an arresting wire on the 
     aircraft carrier, the USS Kitty Hawk, severed his left leg 
     below the knee.... Although the ship was on its way to the 
     Gulf and the training exercises being conducted were in 
     preparation for action in either Operation Enduring or Iraqi 
     Freedom, Robert's injury does not qualify for payment.

  Furthermore, since enactment of the 2005 Emergency Supplemental, 
retroactive SGLI and death gratuity benefits combining $238,000 have 
been expanded to provide payments to survivors of all servicemembers 
who died on active duty, whether in combat or not. The reason behind 
the expansion of retroactive benefits was a recognition that military 
service is universal in character; that each military man or woman, no 
matter where they are serving, contributes in a unique way to make the 
United States Armed Forces second to none.
  The legislation I am introducing today, along with Senate Akaka, will 
make the TSGLI retroactive payment eligibility criteria consistent with 
the other benefit program retroactive payment criteria I just 
mentioned. Thus, if this legislation is enacted, all traumatically 
injured servicemembers who served between October 7, 2001, and December 
1, 2005, will be eligible for TSGLI payments, irrespective of where 
their injuries occurred. Unofficial estimates from the Department of 
Veterans Affairs suggest that approximately 700 individuals would be 
covered under this bill.
  Both the Wounded Warrior Project and the National Military Families 
Association have expressed their support for this bill. And I now ask 
my colleagues for their support. This is the right thing to do for our 
military men and women.
  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:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXPANSION OF INDIVIDUALS QUALIFYING FOR 
                   RETROACTIVE BENEFITS FROM TRAUMATIC INJURY 
                   PROTECTION COVERAGE UNDER SERVICEMEMBERS' GROUP 
                   LIFE INSURANCE.

       (a) In General.--Paragraph (1) of section 501(b) of the 
     Veterans' Housing Opportunity and Benefits Improvement Act of 
     2006 (120 Stat. 414; 38 U.S.C. 1980A note) is amended by 
     striking ``, if, as determined by the Secretary concerned, 
     that loss was a direct result of a traumatic injury incurred 
     in the theater of operations for Operation Enduring Freedom 
     or Operation Iraqi Freedom''.
       (b) Conforming Amendment.--The heading of such section is 
     amended by striking ``in Operation Enduring Freedom and 
     Operation Iraqi Freedom''.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Sessions):
  S. 4055. A bill to address the effect of the death of a defendant in 
Federal criminal proceedings; to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, today I am pleased to introduce the 
``Preserving Crime Victims' Restitution Act of 2006.'' The Act would 
clarify the rule of law and procedures that should be applied when a 
criminal defendant, such as former Enron CEO Kenneth Lay, dies after he 
has been duly convicted, but before his appeals are final.
  I am pleased that Senator Sessions is joining me as a cosponsor in 
introducing this bill. We have worked closely with the Department of 
Justice in crafting this legislation, and have used much of DOJ's 
transmitted language. DOJ fully supports the principles contained in 
this bill, and has indicated its support for this bill's efforts to fix 
this problem now to ensure that, despite a defendant's death, hard-won 
convictions are preserved and restitution remains available for the 
victims of crime.
  This bill that I introduce today would do the following: Establish 
that, if a defendant dies after being convicted of a Federal offense, 
his conviction will not be vacated. Instead, the court will be directed 
to issue a statement stating that the defendant was convicted (either 
by a guilty plea or a verdict finding him guilty) but then died before 
his case or appeal was final.
  It would codify the current rule that no further punishments can be 
imposed on a person who is convicted if they die before a sentence is 
imposed or they have an opportunity to appeal their conviction.
  It would clarify that, unlike punishment, all other relief, such as 
restitution to the victims, that could have

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been sought against a convicted defendant can continue to be pursued 
and collected after the defendant's death.
  It would establish a process to ensure that after a person dies, a 
representative of his estate can stand in the shoes of the defendant 
and challenge or appeal his conviction if they want, and can also 
secure a lawyer--either on their own or by having one appointed, and
  If the Government had filed a criminal forfeiture action--in which it 
had sought to reach the defendant's assets that were linked to his 
crimes--the Government would get an extra 2 years after the defendant's 
death to file a parallel civil forfeiture lawsuit so that it could try 
to recover those same assets in a different, and traditionally-accepted 
manner.
  The need for this legislation was vividly demonstrated last month. On 
October 17, 2006, U.S. District Judge Sim Lake, of the Southern 
District of Texas, wiped clean the criminal record of Enron founder 
Kenneth Lay, even after a jury and judge had unanimously found him 
guilty of 10 criminal charges, including securities fraud, wire fraud 
involving false and misleading statements, bank fraud and conspiracy.
  That decision was not based on an error in the trial or any 
suggestion of unfairness in the proceedings. Instead, it was simply 
based on the fact that Mr. Lay died before his conviction had been 
affirmed on appeal, under a common law rule known as ``abatement.''
  In other words, this order essentially means that Mr. Lay is 
``convicted but not guilty''--``innocent by reason of his death.''
  Judge Lake granted this dismissal even in the face of DOJ Enron Task 
Force filings, which noted how Mr. Lay's conviction ``provided the 
basis for the likely disgorgement of fraud proceeds totaling tens of 
millions of dollars.'' In other words, the dismissal means that 
millions dollars, that the jury found were obtained by Mr. Lay 
illegally, will now remain untouched in the Lay estate. And everyone 
agrees that former Enron employees and shareholders will now find it 
much harder to lay claim to these ill-gotten gains held by Mr. Lay's 
estate, because they will be unable to point to his criminal conviction 
as proof of his wrongdoing.
  I do not fault Judge Lake for issuing this order. He made it clear 
that he was simply following the binding precedent issued in 2004 by 
the full U.S. Court of Appeals for the 5th Circuit, in a case called 
United States v. Estate of Parsons.
  But as I noted in a letter I wrote to Attorney General Gonzales on 
October 20, 2006, the Fifth Circuit's Parsons decision goes far beyond 
the traditional rule of law in this area. While the common-law doctrine 
of abatement has historically wiped out ``punishments'' following a 
criminal defendant's death, the Supreme Court has never held that it 
must also wipe out a victim's right to other forms of relief such as 
restitution, which simply compensate third parties who were injured by 
criminal misconduct.
  As the six dissenters in Parsons noted, the majority's ```finality 
rationale' is a completely novel judicial creation which has not been 
embraced or even suggested by . . . other courts.'' The Third and 
Fourth Circuits, for example, have expressly refused to take this 
position, and upheld a restitution order after a criminal defendant's 
death.
  The Parsons decision was remarkable in several other respects, 
including the fact that (as the dissenters noted), its new rule of law 
was apparently inspired by a single law review article. That academic 
piece boldly claimed that a criminal defendant's right of appeal is 
``evolving into a constitutional right,'' and suggested that a 
conviction untested by appellate review is unreliable and illegitimate. 
This notion runs contrary to the traditional rule applied in virtually 
every other context--where a jury's findings are typically respected 
under the law.
  Of course a defendant is presumed innocent at the outset of his case. 
After a jury has deliberated and unanimously issued a formal finding of 
guilt, however, that presumption of innocence no longer stands.
  The Parsons ``finality'' rationale raises the absurd possibility that 
even a defendant who fully admitted his wrongdoing and pleaded guilty, 
but who then died while an appeal of his sentence was pending, could 
have his entire criminal conviction erased. In fact, this has already 
occurred, in the 1994 case of United States v. Pogue, where the D.C. 
Circuit ordered the dismissal of a conviction of a defendant whose 
appeal was pending--even though the docketing statement had said that 
the defendant intended to challenge only his sentence, and not his 
underlying conviction.
  I have urged the Attorney General to continue to fight for Enron 
victims by appealing Judge Lake's dismissal to the Supreme Court. 
There, he should ask for a resolution of this split in the law between 
these Circuits, so that he can try to get the Parsons rule overturned. 
Unfortunately, the Justice Department has been noncommittal--it refuses 
to say if it will appeal the Ken Lay dismissal or not, even with the 
filing deadline fast approaching.
  In the meantime, rather than remaining silent on this issue, and 
hoping that the Attorney General will appeal the Lay case as he should, 
I believe the time has come for Congress to take action.
  While I have no desire for our Government to punish a criminal 
defendant who dies, the calculation should be different when we are 
determining how to make up for harm suffered by other individuals.
  There is surely a legal and moral basis for not punishing the dead. 
But there is also, more importantly, a legal and moral basis for 
defending the living. The legislation that I introduce today codifies 
that distinction.
  This legislation offers a fair solution and orderly process in the 
event that a criminal defendant dies prior to his final appeal.
  Enron's collapse in 2001 wiped out thousands of jobs, more than $60 
billion in market value, and more than $2 billion in pension plans. 
When America's seventh largest company crumbled into bankruptcy after 
its accounting tricks could no longer hide its billions in debt, 
countless former Enron employees and shareholders lost their entire 
life savings after investing in Enron's 401(k) plan.
  Many of these Enron victims have been following closely the years of 
preparation by the Enron Task Force, and the four-month jury trial and 
separate one-week bench trial, hoping to finally recover some 
restitution in this criminal case. And despite Mr. Lay's vigorous 
efforts to avoid being held accountable for his actions, a conviction 
was finally secured.
  Yet now these people have essentially been victimized again. They 
will be forced to start all over in their efforts to get back some 
portion of the pension funds on which they expected to subsist, and the 
other hard-earned assets that will remain beyond their reach, despite 
the unanimous, hard-fought verdicts finding Mr. Lay guilty of all ten 
counts with which he had been charged.
  The time has come for Congress to end this injustice--hopefully, by 
acting quickly enough to assist these Enron victims, but in any event 
in a way that will prevent this type of injustice from ever happening 
again in the future.
  I urge my colleagues to support this legislation.

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