[Congressional Record (Bound Edition), Volume 152 (2006), Part 8]
[Senate]
[Pages 10430-10441]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      Mr. BOND (for himself and Mr. Talent):
  S. 3478. A bill to amend the National Trails System Act relating to 
the statute of limitations that applies to certain claims; to the 
Committee on Energy and Natural Resources.
  Mr. BOND. Today, I and Senator Jim Talent introduce the Easement 
Owners Fair Compensation Act of 2006. This bill will right a wrong done 
to property owners from whom the government took property without 
compensation. It will also ensure that future property owners are 
treated fairly when the government seeks to take their property through 
eminent domain.
  In 1992, the federal government confiscated property owned by 102 St. 
Louis County, Missouri residents through the Federal Rails to Trails 
Act. The taking imposed an easement on their property for a public 
recreational hiking/biking trail. A trail easement was established on 
their property on December 20, 1992. After twelve years of bureaucratic 
fighting and delay, the Justice Department admitted the government's 
takings liability and agreed to pay the property owners $2,385,000.85 
for their property, interest and legal fees.
  However, two days before the U.S. Court of Claims was scheduled to 
approve the compensation agreement, the U.S. Federal Circuit issued the 
Caldwell decision regarding a rails-to-trails takings case in Georgia. 
That decision established the statute of limitations for rails-to-
trails claims as the date of notice of interim trail use, not the date 
the trail easement was imposed on the property, as previously assumed. 
Under the new date, the statute of limitations on the St. Louis County 
takings claim had expired. The Justice Department accordingly sought 
dismissal of the claims without payment and the Court of Claims judge 
agreed.
  This bill is a Senate companion to H.R. 4581 introduced by 
Representative Akin and cosponsored by Representatives Carnahan and 
Emerson. The legislation sets the statute of limitations as beginning 
on the date an interest is conveyed. It also allows for reconsideration 
of past claims dismissed because of this issue.
  Without this bill, we will allow the wrong committed by the federal 
government to stand. The federal government took private property, 
admitted it owed the property owners over $2,000,000, and then refused 
to pay because of a technicality. That is no way to treat our citizens. 
That is no way to run a rails-to-trails program. That is no way to 
encourage future recreational hiking and biking. I urge my colleagues 
to support this legislation.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Coleman):
  S. 3480. A bill to prevent abuse of Government credit cards; to the 
Committee on Homeland Security and Government Affairs.
  Mr. GRASSLEY. Mr. President, today I am reintroducing the Government 
Credit Card Abuse Prevention Act to address, in a comprehensive way, 
the abuse, misuse, and fraud that has occurred with Government charge 
cards. Some people might ask, ``Why are you bothering with legislation? 
Is it that big of a problem?'' It is true that most Government 
employees who are entrusted with a travel card or a purchase card do 
not abuse it. It may also be true that the amount of money concerned is 
only a fraction of any agency's annual budget. Well, when you have 
agencies like the Department of Defense with an over $500 billion 
budget, even a small fraction means a lot of taxpayers' money. When I 
asked GAO to look into instances of waste, fraud, and abuse with 
Government charge cards, starting with the Department of Defense, we 
found that purchase cards were used to spend taxpayer money for a 
sapphire ring, LA-Z-Boy reclining rocking chairs, and a dinner party 
for a general at Treasure Island Hotel and Casino that included $800 
for alcohol. Government travel cards were used for gambling, sporting 
events, concerts, cruises, and even gentlemen's clubs and legalized 
brothels. Government travel cards are for official travel-related 
expenses only, not tickets to a Dallas Cowboys game or a Janet Jackson 
concert, but these are real examples of improper purchases GAO 
uncovered in reports I had requested. While travel cards are not paid 
directly with taxpayers' money like purchase cards, failure by 
employees to repay these cards results in the loss of millions of 
dollars in rebates to the Federal Government. Also, when credit card 
companies are forced to charge off bad debt, they raise interest rates 
and fees on everyone else.
  Based on what we found in DoD, I worked with GAO to uncover similar 
problems in the U.S. Forest Service where one employee purchased five 
digital cameras at a cost of $2,960, six computers for $6,019, three 
palm pilots totaling $736, jewelry worth $1,967, and $6,101 in other 
items like cordless telephones, figurines, and Sony Playstations, all 
for personal use and all at taxpayer expense. GAO subsequently found 
similar problems at other agencies like the Federal Aviation 
Administration and the Department of Housing an Urban Development. I 
have cited just some of the extreme examples, but there are many more 
instances where employees purchased items that were not needed by the 
agency or where a cheaper alternative would meet the purpose just as 
well. This occurred because of weak internal controls within the 
agencies and is something that clearly needs to be addressed 
governmentwide. Based on oversight from Congress, GAO, and agency 
inspectors general, the situation has improved in many agencies and I 
am pleased that the Office of Management and Budget has begun to bring 
about an improved control environment through direction contained in 
OMB Circular 123. However, there is more to be done and my experience 
has convinced me that legislation is necessary.
  The Government Credit Card Abuse Prevention Act is largely based on 
the recommendations by GAO regarding what controls are necessary to 
prevent the kinds of waste, fraud, and abuse we have uncovered. Since I 
originally introduced this legislation in the last Congress, I have 
collected input and ideas and worked to refine the bill to make it both 
comprehensive and workable. The provisions in my bill are simply 
commonsense internal controls that should be present in every Federal 
agency to prevent improper purchases. These include: performing credit 
checks for travel cardholders and issuing restricted cards for those 
with poor or no credit to reduce the potential for misuse; maintaining 
a record of each cardholder, including single transaction limits and 
total credit limits so agencies can effectively manage their 
cardholders; implementing periodic reviews to determine if cardholders 
have a need for a card; properly recording

[[Page 10431]]

rebates to the Government based on prompt payment; providing training 
for cardholders and managers; utilizing available technologies to 
prevent or catch fraudulent purchases; establishing specific policies 
about the number of cards to be issued, the credit limits for certain 
categories of cardholders, and categories of employees eligible to be 
issued cards; invalidating cards when employees leave the agency or 
transfer; establishing an approving official other than the purchase 
cardholder so employees cannot approve their own purchases; reconciling 
purchase card charges on the bill with receipts and supporting 
documentation; submitting disputed purchase card charges to the bank 
according to the proper procedure; making purchase card payments 
promptly to avoid interest penalties; retaining records of purchase 
card transactions in accordance with standard Government recordkeeping 
polices; utilizing mandatory split disbursements when reimbursing 
employees for travel card purchases to ensure that travel card bills 
get paid; comparing items submitted on travel vouchers with items 
already paid for with centrally billed accounts to avoid reimbursing 
employees for items already paid for by the agency; and submitting 
refund requests for unused airline tickets so the taxpayers don't pay 
for tickets that were not used.
  My bill would also provide that each agency inspector general will 
periodically conduct risk assessments of agency purchase card and 
travel card programs and perform periodic audits to identify potential 
fraudulent, improper, and abusive use of cards. We have had great 
success working with inspectors general using techniques like data 
mining to reveal instances of improper use of government charge cards. 
Having this information on an ongoing basis will help in strengthening 
and maintaining a rigorous system of internal controls to prevent 
future instances of waste, fraud, and abuse with government charge 
cards. In addition, my bill requires penalties so that employees who 
abuse Government charge cards cannot get away scotfree. In cases of 
serious misuse or fraud, the bill provides that employees must be 
dismissed and suspected cases of fraud will also be referred to the 
appropriate U.S. attorney for prosecution under Federal antifraud laws. 
Hopefully this will send a clear message that such activity will not be 
tolerated so as to act as a deterrent for others.
  I am proud of the oversight work that I do to uncover waste, fraud, 
and abuse, but sometimes I feel like Sisyphus, doomed to eternally roll 
a boulder up a hill only to see it fall again. Instead of eternally 
looking over the shoulder of agencies to find waste that should never 
have occurred and then poking and prodding them to close the barn door 
after the horse has gotten out, we need to put the internal controls in 
place to make sure these problems don't happen in the first place. This 
bill will accomplish that for the Government charge card programs so 
that American taxpayers can sleep soundly knowing that their money 
isn't being charged away by some bureaucrat. I hope my colleagues will 
support this commonsense measure and that it will be enacted into law 
in short order.
                                 ______
                                 
      By Mr. ENSIGN (for himself and Mr. Lieberman):
  S. 3483. A bill to improve national competitiveness through enhanced 
education initiatives; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. LIEBERMAN. Mr. President, I rise today to introduce, along with 
my colleague from Nevada, Senator Ensign, the ``National Innovation 
Education Act''. The intent of this bill is to enhance our science and 
technology talent base and improve national competitiveness through 
strengthened education initiatives. Enhancing academic success, 
particularly in the fields of science, technology, engineering and 
math--often called the STEM disciplines--through innovative educational 
programs will stimulate change and growth within elementary, secondary 
and postsecondary institutions, improve current educational 
opportunities for all students, allow graduates greater opportunity for 
economic success and greater ability to successfully compete in the 
global market.
  This bill proposes initiatives spanning the education spectrum that 
seek to improve quality instruction and access to STEM learning for all 
students. Recent recommendations from the Council on Competitiveness 
and The Augustine Commission at the National Academy of Sciences, among 
others, target national concerns around the content and quality of K-16 
in STEM disciplines, particularly with regard to minority and low-
income students, the need to stimulate innovation, and the need to 
enhance teacher preparation and professional development in the STEM 
fields.
  An increasing number of researchers express alarm at the nearly one 
out of three public high school students who won't graduate and the 
failure of our systems to adequately prepare high school graduates, and 
particularly minorities, for success in college and the work place. 
Addressing the challenge of successfully thriving in a world of change, 
the Council on Competitiveness examined the pressing issue of 
attracting more young Americans to science and engineering fields. 
Currently, less than 15 percent of U.S. students have the prerequisite 
skills to pursue scientific or technical degrees in college. Only 5.5 
percent of the 1.1 million high school seniors who took the college 
entrance exam in 2002 planned to pursue an engineering degree. And 
there continues to be poor representation of women and minorities in 
these fields. The National Academies report, ``Rising Above the 
Gathering Storm,'' notes that amongst the U.S. science and technology 
workforce 38 percent of PhDs were foreign born. Changes need to be 
enacted to not only increase the number of students pursuing math and 
science degrees but to prepare them to pursue these degrees.
  Indeed, numerous national reports in recent years have called for 
efforts to improve K-12 education, teacher preparation and professional 
development in the STEM areas. Recommendations include increasing the 
numbers of postsecondary students pursuing careers in the areas of 
mathematics, science, engineering, and technology and increasing the 
numbers of postsecondary students in the STEM fields who will then 
pursue concurrent degrees in education. Increasing funding for not only 
STEM education but STEM research has received strong recommendations as 
an important and timely approach to addressing improvements in 
education and innovation. Finally, a critical factor to ensuring 
program success is the ability to engage and then hold students' 
interests in the various STEM fields enough to encourage them to pursue 
STEM careers.
  Our bill seeks to craft a comprehensive response to many of these 
issues, and includes the following provisions.
  Title I--Improving Pre-kindergarten Through Grade 16, supplies a 
remedy to the critical issue of the disconnect existing between high 
school outcomes and college expectations. Through the formation of 
partnerships between P-12 and higher education systems in the states--
P-16 Commissions--academic success in postsecondary education becomes 
the priority agenda item for reform. We anticipate that P-16 
Commissions will bring about an increase in the percentage of 
academically prepared students, particularly low-income and minority 
students, and a decrease in the percentage of college students 
requiring remedial coursework, particularly with respect to math, 
science, and engineering.
  Many States across our country have already seen the wisdom of a P-16 
Commission and have been working on goals and implementation. The 
results, although preliminary for many States, are vastly encouraging. 
Title I will provide support both to States with existing P-16 bodies, 
or States seeking to establish such commissions. It will give priority 
to the States also seeking to establish or enhance data systems. We 
hope that States will have an opportunity to craft a vision that will 
reach all students over time so that their educational pathway of 
access to and success in college will be ensured.
  Magnet schools have the capacity to create learning environments 
tailored

[[Page 10432]]

to the interests and needs of its community and can offer a focused 
curriculum capable of attracting substantial numbers of students of 
different racial backgrounds. Title II of our bill authorizes the 
National Science Foundation to award grants to assist in the promotion 
of innovation and competitiveness through the development and 
implementation of magnet school programs. These programs would 
encourage students to meet state academic content standards through the 
development and design of innovative educational methods, practices and 
curricula that promote student achievement in STEM courses and 
encourage student enrollment in postsecondary institutions.
  In addition, Title II authorizes NSF grants to elementary and middle 
schools creating pilot programs implementing innovation-based 
experiential learning environments. Innovation-based experiential 
learning is a teaching model that seeks to seed traditional technical 
studies with new exposure to methods for creative thinking and 
translating ideas into practical applications. Such programs would 
likely involve immersing students in hands-on experimentation that 
helps students discover new concepts and use those concepts to solve 
real-world problems.
  The interrelated demands that mathematics and science education 
places upon schools to prepare both teachers and students must be 
addressed consecutively. Teachers need to be better prepared to teach 
STEM topics across the board and students need to have access to 
teachers who are well versed in their content subjects.
  Title III of our bill authorizes funding to increase the number of 
graduates from postsecondary institutions with concurrent degrees in 
education and STEM fields. This program is based on the successful 
UTeach model at the University of Texas at Austin. Encouraging science 
and math majors to concurrently pursue certification in the field of 
education will help increase the number and quality of teachers in 
these fields. The model program at the University of Texas has 
experienced impressive success in attracting and keeping promising 
young STEM teachers. Our bill also calls for the establishment of 
Teacher Professional Development Institutes to promote innovative and 
effective approaches to improving teacher quality by providing 
professional development support for educators already in the 
classroom. The Teacher Institute Model encourages collaboration between 
urban teachers and university faculty to improve student learning by 
enhancing teacher mastery of subject matter. It is based upon the model 
which has been in operation at Yale University in New Haven, CT for 
over 25 years.
  Our Nation recognizes the pressing need to increase funding for STEM 
research and boost the number of students in undergraduate and graduate 
programs pursuing mathematics and science degrees for our country's 
continued development, prosperity and security.
  Within the final title of our bill, Title IV, NSF basic research 
funding is doubled. NSF is authorized to expand funding for STEM 
education through increased fellowships and trainee programs at the 
undergraduate and graduate level. A clearinghouse at the National 
Science Foundation of successful professional science master's degree 
program elements will be made available to postsecondary institutions 
as well as grants for developing pilot programs or improving current 
programs. In addition the NSF Tech Talent program is reauthorized with 
increased funding. This program provides competitive grants to 
undergraduate universities to develop new methods of increasing the 
number of students receiving degrees in science, math, and engineering. 
Finally, it is in our interest to examine and understand the emerging 
field of services sciences, a multidisciplinary curriculum partnering 
science, technology, engineering, and math with management and business 
disciplines. To this end, the National Science Foundation will conduct 
a collaborative study with leaders from institutions of higher 
education to come to an understanding of how best to support this new 
field.
  Our National Innovation Education Act takes a broad and comprehensive 
approach to addressing national prosperity, security and our ability to 
compete internationally with recommendations for enhanced education 
initiatives in order to improve our national competitiveness. Improving 
current education for all students will allow graduates greater 
opportunity for economic success and greater ability to successfully 
compete in the global market. Our very Nation's future prosperity and 
security depends upon our willingness as leaders to infuse education 
with the requisite innovative vision that will inspire our youth to 
reach for goals that are achievable only beyond the ordinary bounds.
  I urge my colleagues to act favorably on this measure. 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:

                                S. 3483

       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 ``National Innovation 
     Education Act''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.

     TITLE I--IMPROVING PREKINDERGARTEN THROUGH GRADE 16 EDUCATION

Sec. 101. Short title.
Sec. 102. Purposes.
Sec. 103. Definitions.
Sec. 104. P-16 education stewardship system grants.
Sec. 105. State application and plan.
Sec. 106. P-16 education stewardship commission.
Sec. 107. P-16 education data system.
Sec. 108. Reports; technical assistance.
Sec. 109. Authorization of appropriations.

  TITLE II--NATIONAL SCIENCE FOUNDATION MAGNET SCHOOLS AND INNOVATION-
                             BASED LEARNING

Sec. 201. General definitions.
Sec. 202. Magnet schools.
Sec. 203. Innovation-based experiential learning.

        TITLE III--TEACHER TRAINING AND PROFESSIONAL DEVELOPMENT

Sec. 301 Baccalaureate degrees in mathematics and science with teacher 
              certification.
Sec. 302. Teachers professional development institutes.

                 TITLE IV--STEM EDUCATION AND RESEARCH

Sec. 401. Definitions.
Sec. 402. Graduate fellowships and graduate traineeships.
Sec. 403. Professional science master's degree programs.
Sec. 404. Increased support for science education through the National 
              Science Foundation.
Sec. 405. A national commitment to basic research.
Sec. 406. Study on service science.

     TITLE I--IMPROVING PREKINDERGARTEN THROUGH GRADE 16 EDUCATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``College Pathway Act of 
     2006''.

     SEC. 102. PURPOSES.

       The purposes of this title are the following:
       (1) To broaden the focus of Federal, State, and local 
     higher education programs to promote academic success in 
     postsecondary education, particularly with respect to 
     mathematics, science, engineering, and technology.
       (2) To increase the percentage of low-income and minority 
     students who are academically prepared to enter and 
     successfully complete postsecondary-level general education 
     coursework.
       (3) To decrease the percentage of students requiring 
     developmental coursework through grants that enable States to 
     coordinate the public prekindergarten through grade 12 
     education system and the postsecondary education system--
       (A) to ensure that covered institutions articulate and 
     publicize the prerequisite skills and knowledge expected of 
     incoming postsecondary students attending covered 
     institutions, in order to provide students and other 
     interested parties with accurate information pertaining to 
     the students' necessary preparations for postsecondary 
     education;
       (B) to establish and implement middle school and secondary 
     school course enrollment guidelines while ensuring rigorous 
     content standards--
       (i) to ensure that public secondary school students, in all 
     major racial and ethnic groups, and income levels, complete 
     academic courses linked with academic success

[[Page 10433]]

     in mathematics, science, engineering, and technology at the 
     postsecondary level; and
       (ii) to increase the percentage of students in each major 
     racial group, ethnic group, and income level who graduate 
     from secondary school and enter postsecondary education with 
     the academic preparation necessary to successfully complete 
     postsecondary-level general education coursework, 
     particularly with respect to mathematics, science, 
     engineering, and technology;
       (C) to implement programs and policies that increase 
     secondary school graduation rates while ensuring rigorous 
     content standards; and
       (D) to collect and analyze disaggregated longitudinal 
     student data throughout P-16 education in order to--
       (i) understand and improve students' progress throughout P-
     16 education;
       (ii) understand problems and needs throughout P-16 
     education; and
       (iii) align prekindergarten through grade 12 academic 
     standards and higher education standards so that more 
     students are prepared to successfully complete postsecondary-
     level general education coursework.

     SEC. 103. DEFINITIONS.

       In this title:
       (1) In general.--The terms ``local educational agency'', 
     ``parent'', ``secondary school'', and ``State'' have the 
     meanings given the terms in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       (2) Academic assessments.--The term ``academic 
     assessments'' means the academic assessments implemented by a 
     State educational agency pursuant to section 1111(b)(3) of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)(3)).
       (3) Academic standards.--The term ``academic standards'' 
     means the challenging academic content standards and 
     challenging student academic achievement standards adopted by 
     a State pursuant to section 1111(b)(1) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1)).
       (4) Covered institution.--The term ``covered institution'' 
     means an institution of higher education that participates in 
     a program under title IV of the Higher Education Act of 1965 
     (20 U.S.C. 1070 et seq.).
       (5) Developmental coursework.--The term ``developmental 
     coursework'' means coursework that a student is required to 
     complete in order to attain prerequisite knowledge or skills 
     necessary for entrance into a postsecondary degree or 
     certification program.
       (6) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 102 of the Higher Education Act of 1965 (20 
     U.S.C. 1002).
       (7) P-16 education.--The term ``P-16 education'' means the 
     educational system from prekindergarten through the 
     conferring of a baccalaureate degree.
       (8) P-16 educator.--The term ``P-16 educator'' means an 
     individual teaching in P-16 education.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.
       (10) Student.--The term ``student'' means any student 
     enrolled in a public school.

     SEC. 104. P-16 EDUCATION STEWARDSHIP SYSTEM GRANTS.

       (a) Program Authorized.--From amounts appropriated under 
     section 109 for a fiscal year, and subject to subsection (b), 
     the Secretary shall award grants, on a competitive basis, to 
     States to enable the States--
       (1) to establish--
       (A) P-16 education stewardship commissions in accordance 
     with section 106; or
       (B) P-16 education stewardship systems consisting of--
       (i) a P-16 education stewardship commission in accordance 
     with section 106; and
       (ii) a P-16 education data system in accordance with 
     section 107; and
       (2) to carry out the activities and programs described in 
     the State application and plan submitted under section 105.
       (b) Award Basis.--In determining the approval and amount of 
     a grant under subsection (a), the Secretary shall give 
     priority to an application from a State that desires the 
     grant to establish a P-16 education stewardship system 
     described in subsection (a)(1)(B).
       (c) Period of Grants.--
       (1) States establishing p-16 education stewardship 
     systems.--Each grant made under this section to a State to 
     establish a P-16 education stewardship system described in 
     subsection (a)(1)(B) shall be awarded for a period of 5 
     years.
       (2) States establishing p-16 education stewardship 
     commissions.--Each grant made under this section to a State 
     to establish a P-16 education stewardship commission 
     described in subsection (a)(1)(A) shall be awarded for a 
     period of 3 years.

     SEC. 105. STATE APPLICATION AND PLAN.

       (a) In General.--A State desiring a grant under section 104 
     shall submit an application to the Secretary at such time, in 
     such manner, and containing such information as the Secretary 
     may reasonably require.
       (b) Contents.--Each application submitted under this 
     section shall include, at a minimum, the following:
       (1) A demonstration that the State, not later than 5 months 
     after receiving grant funds under this title, will establish 
     a P-16 education stewardship commission described in section 
     106.
       (2) For a state applying for a grant under section 
     104(a)(1)(B), a demonstration that the State, not later than 
     2 years after receiving grant funds under this title, will 
     implement, expand, or improve a P-16 education data system 
     described in section 107.
       (3) A demonstration that the State will work with the State 
     P-16 education stewardship commission and others as necessary 
     to examine the relationship among the content of 
     postsecondary education admission and placement exams, the 
     prerequisite skills and knowledge required to successfully 
     take postsecondary-level general education coursework, the 
     prekindergarten through grade 12 courses and academic factors 
     associated with academic success at the postsecondary level, 
     particularly with respect to mathematics, science, 
     engineering, and technology, and existing academic standards 
     and aligned academic assessments.
       (4) A description of how the State will, using the 
     information from the State P-16 education stewardship 
     commission, increase the percentage of students taking 
     courses that have the highest correlation of academic success 
     at the postsecondary level, for each of the following groups 
     of students:
       (A) Economically disadvantaged students.
       (B) Students from each major racial and ethnic group.
       (C) Students with disabilities.
       (D) Students with limited English proficiency.
       (5) A description of how the State will distribute the 
     information in the P-16 education stewardship commission's 
     report under section 106(c)(4) to the public in the State, 
     including public secondary schools, local educational 
     agencies, school counselors, P-16 educators, institutions of 
     higher education, students, and parents.
       (6) An assurance that the State will continue to pursue 
     effective P-16 education alignment strategies after the end 
     of the grant period.

     SEC. 106. P-16 EDUCATION STEWARDSHIP COMMISSION.

       (a) P-16 Education Stewardship Commission.--
       (1) In general.--Each State receiving a grant under section 
     104 shall establish a P-16 education stewardship commission 
     that has the policymaking ability to meet the requirements of 
     this section.
       (2) Existing commission.--The State may designate an 
     existing coordinating body or commission as the State P-16 
     education stewardship commission for purposes of this title, 
     if the body or commission meets, or is amended to meet, the 
     basic requirements of this section.
       (b) Membership.--
       (1) Composition.--Each P-16 education stewardship 
     commission shall be composed of the Governor of the State, or 
     the designee of the Governor, and the stakeholders of the 
     statewide education community, as determined by the Governor 
     or the designee of the Governor, such as--
       (A) the chief State official responsible for administering 
     prekindergarten through grade 12 education in the State;
       (B) the chief State official of the entity primarily 
     responsible for the supervision of institutions of higher 
     education in the State;
       (C) bipartisan representation from the State legislative 
     committee with jurisdiction over prekindergarten through 
     grade 12 education and higher education;
       (D) representatives of 2- and 4-year institutions of higher 
     education in the State;
       (E) representatives of the business community; and
       (F) at the discretion of the Governor, or the designee of 
     the Governor, representatives from prekindergarten through 
     grade 12 and higher education governing boards and other 
     organizations.
       (2) Chairperson; meetings.--The Governor of the State, or 
     the designee of the Governor, shall serve as chairperson of 
     the P-16 education stewardship commission and shall convene 
     regular meetings of the commission.
       (c) Duties of the Commission.--
       (1) Meetings of covered institutions.--
       (A) In general.--Each State P-16 education stewardship 
     commission shall convene regular meetings of the covered 
     institutions in the State for the purpose of assessing and 
     reaching consensus regarding--
       (i) the prerequisite skills and knowledge expected of 
     incoming freshmen to successfully engage in and complete 
     postsecondary-level general education coursework without the 
     prior need to enroll in developmental coursework; and
       (ii) patterns of coursework and other academic factors that 
     demonstrate the highest correlation with success in 
     completing postsecondary-level general education coursework 
     and degree or certification programs, particularly with 
     respect to mathematics, science, engineering, and technology.
       (B) Findings of covered institutions.--The covered 
     institutions shall communicate to the P-16 education 
     stewardship commission the findings of the covered 
     institutions, which--
       (i) shall include the consensus on the prerequisite skills 
     and knowledge, patterns of coursework, and other academic 
     factors described in subparagraph (A);

[[Page 10434]]

       (ii) shall address, at minimum, the subjects of reading or 
     language arts, history, mathematics, science, technology, and 
     engineering, and may cover additional academic content areas;
       (iii) shall be descriptive of content and purpose, and 
     shall not be limited to a simple listing of secondary course 
     names; and
       (iv) may be different for 2- and 4-year institutions of 
     higher education.
       (2) Commission recommendations.--Not later than 18 months 
     after a State receives a grant under section 104, and 
     annually thereafter for each year in the grant period, the 
     State P-16 education stewardship commission shall--
       (A) develop recommendations regarding the prerequisite 
     skills and knowledge, patterns of coursework, and other 
     academic factors described in paragraph (1)(A); and
       (B) develop recommendations and enact policies to increase 
     the success rate of students in the students' transition from 
     secondary school to postsecondary education, including 
     policies to increase success rates for--
       (i) students of economic disadvantage;
       (ii) students of racial and ethnic minorities;
       (iii) students with disabilities; and
       (iv) students with limited English proficiency.
       (3) Commission findings.--Not later than 3 years after a 
     State receives a grant under section 104(a)(1)(B), the State 
     P-16 education stewardship commission shall--
       (A) compile and interpret the findings from the P-16 
     education data system; and
       (B) include the compilation and interpretation of the 
     findings in the report described in paragraph (4)(A).
       (4) Reports.--
       (A) In general.--Not later than 18 months after a State 
     receives a grant under section 104, and annually thereafter 
     for each year in the grant period, the State P-16 education 
     stewardship commission shall prepare and submit to the 
     Secretary a clear and concise report that shall include the 
     recommendations described in subparagraphs (A) and (B) of 
     paragraph (2).
       (B) Distribution to the public.--Not later than 60 days 
     after the submission of a report under subparagraph (A), each 
     State P-16 education stewardship commission shall publish and 
     widely distribute the information in the report to the public 
     in the State, including--
       (i) all public secondary schools and local educational 
     agencies;
       (ii) school counselors;
       (iii) P-16 educators;
       (iv) institutions of higher education; and
       (v) students and parents, especially students and parents 
     of students listed in clauses (i) through (iv) of paragraph 
     (2)(B) and those entering grade 9 in the next academic year, 
     to assist students and parents in making informed and 
     strategic course enrollment decisions.

     SEC. 107. P-16 EDUCATION DATA SYSTEM.

       (a) Establishment.--Not later than 2 years after a State 
     receives a grant under section 104(a)(1)(B), the State shall 
     establish a Statewide longitudinal data system that provides 
     each student, upon enrollment in a public school or in a 
     covered institution in the State, with a unique identifier 
     that is retained throughout the student's enrollment in P-16 
     education in the State.
       (b) Valid Data and Compliance With Ferpa.--The State, 
     through the implementation of the data system described in 
     subsection (a), shall--
       (1) ensure the implementation and use of valid and reliable 
     secondary school dropout data; and
       (2) ensure that the data system is compliant with the 
     Family Educational Rights and Privacy Act of 1974 (20 U.S.C. 
     1232g).
       (c) Required Elements of a Statewide Data System.--The 
     State shall ensure that the data system described in 
     subsection (a) includes the following elements:
       (1) A unique statewide student identifier.
       (2) Student-level enrollment, demographic, and program 
     participation information.
       (3) Individual students' yearly test records.
       (4) Information on students not tested by grade and 
     subject.
       (5) A teacher identifier system with the ability to match 
     teachers to students.
       (6) Student-level transcript information, including 
     information on courses completed and grades earned.
       (7) Student-level college readiness test scores.
       (8) Student-level information about the points at which 
     students exit, transfer in, transfer out, drop out, or 
     graduate P-16 education.
       (9) The capacity to communicate with higher education data 
     systems.
       (10) A State data audit system assessing data quality, 
     validity, and reliability.
       (d) Functions of the Statewide Data System.--In 
     implementing the data system described in subsection (a), the 
     State shall--
       (1) identify factors that correlate to students' ability to 
     successfully engage in and complete postsecondary-level 
     general education coursework without the need for prior 
     developmental coursework;
       (2) identify factors to increase the percentage of low-
     income and minority students who are academically prepared to 
     enter and successfully complete postsecondary-level general 
     education coursework; and
       (3) use data to otherwise inform education policy and 
     practice.
       (e) Existing Data Systems.--A State may employ, coordinate, 
     or revise an existing data system for purposes of this 
     section if such data system produces valid and reliable 
     information that satisfies the requirements of subsections 
     (b) through (d).

     SEC. 108. REPORTS; TECHNICAL ASSISTANCE.

       (a) State Reports.--
       (1) Annual report.--Each State that receives a grant under 
     section 104 shall submit an annual report to the Secretary 
     for each year of the grant period that shall include a 
     description of the activities undertaken under the grant to 
     improve academic readiness for postsecondary-level general 
     education coursework and course completion.
       (2) Dissemination.--Each State shall prepare and widely 
     disseminate the report described in paragraph (1) to the 
     public in the State, including secondary schools, local 
     educational agencies, school counselors, P-16 educators, 
     institutions of higher education, students, and parents.
       (b) Secretary Reports.--
       (1) Annual report.--The Secretary shall submit an annual 
     report to Congress that includes--
       (A) findings from the State reports submitted under 
     subsection (a)(1);
       (B) a description of the actions taken by the Department of 
     Education to assist States with creating P-16 education 
     stewardship commissions and P-16 education data systems;
       (C) a description of the actions and incentives planned by 
     the States' P-16 education stewardship commissions--
       (i) to help States align academic standards, courses, and 
     academic assessments with postsecondary academic 
     expectations, courses, and assessments;
       (ii) to help States increase the percentage of minority and 
     low-income students prepared to enter and succeed at the 
     postsecondary level; and
       (iii) to decrease postsecondary developmental coursework 
     enrollment rates of minority and low-income students;
       (D) a description of the actions and incentives planned to 
     help States reduce postsecondary developmental coursework 
     enrollment rates;
       (E) an assessment of the effectiveness of P-16 education 
     stewardship commissions in improving college readiness and 
     eliminating the need for developmental coursework; and
       (F) recommendations regarding how to make the P-16 
     education stewardship commissions more effective, and whether 
     the establishment of such commissions should be encouraged 
     throughout the United States.
       (2) Availability.--The Secretary shall make the annual 
     report described in paragraph (1) available to the public and 
     to each State and institution of higher education.
       (c) Technical Assistance.--The Secretary shall provide, to 
     the extent practicable, technical assistance to States and 
     institutions of higher education seeking technical assistance 
     under this title.

     SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $55,000,000 for fiscal year 2007 and such sums as may 
     be necessary for each of fiscal years 2008 through 2011.

  TITLE II--NATIONAL SCIENCE FOUNDATION MAGNET SCHOOLS AND INNOVATION-
                             BASED LEARNING

     SEC. 201. GENERAL DEFINITIONS.

       Except as otherwise provided, the terms used in this title 
     have the meanings given the terms in section 9101 of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     7801).

     SEC. 202. MAGNET SCHOOLS.

       (a) Purpose.--The purpose of this section is to assist in 
     the promotion of innovation and competitiveness by providing 
     financial assistance to eligible local educational agencies 
     for--
       (1) the development and implementation of magnet school 
     programs that will assist eligible local educational agencies 
     in achieving systemic reforms and providing all students the 
     opportunity to meet challenging State academic content 
     standards and student academic achievement standards;
       (2) the development and design of innovative educational 
     methods, practices, and curriculum that promote student 
     achievement in science, mathematics, and technology courses;
       (3) improving the capacity of eligible local educational 
     agencies, including through professional development, to 
     continue operating magnet schools after Federal funding for 
     the magnet schools is terminated; and
       (4) ensuring that students enrolled in such schools have 
     access to a high quality education that will enable such 
     students to succeed academically and enroll in postsecondary 
     education at a high level.
       (b) Definitions.--In this section:
       (1) Director.--The term ``Director'' means the Director of 
     the National Science Foundation.
       (2) Eligible local educational agency.--The term ``eligible 
     local educational agency'' means a local educational agency 
     described in section 5304 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7231c).

[[Page 10435]]

       (3) Magnet school.--The term ``magnet school'' means a 
     public elementary school or public secondary school that--
       (A) offers a curriculum focused on science, mathematics, 
     and technology; and
       (B) attracts a substantial number of students from 
     different racial backgrounds.
       (c) Program Authorized.--The Director, in accordance with 
     this section, is authorized to award grants to eligible local 
     educational agencies, and consortia of such agencies where 
     appropriate, to carry out the purpose of this section for 
     magnet schools.
       (d) Applications and Requirements.--
       (1) Applications.--An eligible local educational agency, or 
     consortium of such agencies, desiring to receive a grant 
     under this section shall submit an application to the 
     Director at such time, in such manner, and containing such 
     information and assurances as the Director may reasonably 
     require.
       (2) Information and assurances.--Each application submitted 
     under paragraph (1) shall include--
       (A) a description of--
       (i) how a grant awarded under this section will be used to 
     promote instruction in science, mathematics, and technology;
       (ii) the manner and extent to which the magnet school 
     program will increase student academic achievement in the 
     instructional areas offered by the school;
       (iii) how the applicant will continue the magnet school 
     program after assistance under this section is no longer 
     available;
       (iv) how grant funds under this section will be used--

       (I) to improve student academic achievement for all 
     students attending the magnet school programs; and
       (II) to implement services and activities that are 
     consistent with programs under part A of title I of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311 et seq.); and

       (v) the criteria to be used in selecting students to attend 
     the proposed magnet school program; and
       (B) assurances that the applicant will--
       (i) use grant funds under this section for the purpose 
     specified in subsection (a);
       (ii) employ highly qualified teachers in the courses of 
     instruction assisted under this section; and
       (iii) carry out a high-quality education program that will 
     encourage greater parental involvement in decision making.
       (e) Priority.--In awarding grants under this section, the 
     Director shall give priority to applicants that propose to 
     carry out new magnet school programs or significantly revise 
     existing magnet school programs.
       (f) Use of Funds.--
       (1) In general.--Grant funds made available under this 
     section may be used by an eligible local educational agency 
     or consortium of such agencies--
       (A) for planning and promotional activities directly 
     related to the development, expansion, continuation, or 
     enhancement of academic programs and services offered at 
     magnet schools;
       (B) for the acquisition of books, materials, and equipment 
     (including computers), and the maintenance and operation of 
     materials, equipment, and computers, necessary to conduct 
     programs in magnet schools;
       (C) for the compensation, or subsidization of the 
     compensation, of elementary school and secondary school 
     teachers who are highly qualified, and instructional staff 
     where applicable, who are necessary to conduct programs in 
     magnet schools;
       (D) for activities, which may include professional 
     development, that will build the capacity of the eligible 
     local educational agency, or consortium of such agencies, to 
     operate magnet school programs once the grant period has 
     ended;
       (E) to enable the eligible local educational agency, or 
     consortium of such agencies, to have more flexibility in the 
     administration of a magnet school program in order to serve 
     students attending a school who are not enrolled in a magnet 
     school program; and
       (F) to enable the eligible local educational agency, or 
     consortium of such agencies, to have flexibility in designing 
     magnet schools for students in all elementary school and 
     secondary school grades.
       (2) Special rule.--Grant funds under this section may be 
     used for activities described in paragraphs (2) and (3) of 
     subsection (a) only if the activities are directly related to 
     improving--
       (A) student academic achievement based on the State's 
     challenging academic content standards and student academic 
     achievement standards; or
       (B) student skills in or knowledge of mathematics, science, 
     and technology as well as other core academic subjects.
       (g) Prohibition.--Grants under this section may not be used 
     for transportation or any activity that does not augment 
     academic improvement.
       (h) Limitation.--
       (1) Duration of awards.--A grant under this section shall 
     be awarded for a period that shall not exceed 3 fiscal years.
       (2) Limitation on planning funds.--An eligible local 
     educational agency, or consortium of agencies, may expend for 
     planning (professional development shall not be considered to 
     be planning for the purposes of this subsection) not more 
     than 50 percent of the grant funds received under this 
     section for the first year of the program and not more than 
     15 percent of such funds for each of the second and third 
     such years.
       (3) Amount.--No eligible local educational agency, or 
     consortium of such agencies, awarded a grant under this 
     section shall receive more than $4,000,000 under this section 
     for any one fiscal year.
       (4) Timing.--To the extent practicable, the Secretary shall 
     award grants for any fiscal year under this section not later 
     than July 1 of the applicable fiscal year.
       (i) Evaluations.--
       (1) Reservation.--The Director may reserve not more than 2 
     percent of the funds appropriated to carry out this section 
     for any fiscal year to carry out evaluations, provide 
     technical assistance, and carry out dissemination projects 
     with respect to magnet school programs assisted under this 
     section.
       (2) Contents.--Each evaluation described in paragraph (1) 
     at a minimum shall address--
       (A) how and the extent to which magnet school programs lead 
     to educational quality and improvement;
       (B) the extent to which magnet school programs enhance 
     student access to high quality education; and
       (C) the extent to which magnet school programs differ from 
     other school programs in terms of the organizational 
     characteristics and resource allocation of such magnet school 
     programs.

     SEC. 203. INNOVATION-BASED EXPERIENTIAL LEARNING.

       (a) Pilot Program.--
       (1) Program authorized.--The Director of the National 
     Science Foundation shall award grants to local educational 
     agencies to enable the local educational agencies to 
     implement innovation-based experiential learning in a total 
     of 500 elementary schools or middle schools in the United 
     States.
       (2) Application.--A local educational agency desiring a 
     grant under this section shall submit an application at such 
     time, in such manner, and accompanied by such information as 
     the Director of the National Science Foundation may require.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $10,000,000 for 
     fiscal year 2007 and $20,000,000 for each of the fiscal years 
     2008 and 2009.

        TITLE III--TEACHER TRAINING AND PROFESSIONAL DEVELOPMENT

     SEC. 301. BACCALAUREATE DEGREES IN MATHEMATICS AND SCIENCE 
                   WITH TEACHER CERTIFICATION.

       (a) Definitions.--Unless otherwise specified in this 
     section, the terms used in this section have the meanings 
     given the terms in section 9101 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7801).
       (b) Grants Authorized.--From the amounts authorized under 
     subsection (h), the Secretary shall award grants to eligible 
     recipients to enable the eligible recipients to provide 
     integrated courses of study in mathematics, science, or 
     engineering and teacher education, that lead to a 
     baccalaureate degree in mathematics, science, or engineering 
     with concurrent teacher certification.
       (c) Definition of Eligible Recipient.--In this section, the 
     term ``eligible recipient'' means any department of 
     mathematics, science, or engineering of an institution of 
     higher education.
       (d) Award and Duration.--
       (1) Award.--The Secretary shall award a grant under this 
     section to each eligible recipient that collaborates with a 
     teacher preparation program at an institution of higher 
     education to develop undergraduate degrees in mathematics, 
     science, or engineering with pedagogy education and teacher 
     certification.
       (2) Duration.--The Secretary shall award a grant under this 
     section to each eligible recipient in an amount that is not 
     more than $1,000,000 per year for a period of 5 years.
       (e) Matching Requirement.--Each eligible recipient 
     receiving a grant under this section shall provide, from non-
     Federal sources (provided in cash or in kind), to carry out 
     the activities supported by the grant, an amount that is not 
     less than 25 percent of the amount of the grant for the first 
     year of the grant, not less than 35 percent of the amount of 
     the grant for the second year of the grant, and not less than 
     50 percent of the amount of the grant for each succeeding 
     fiscal year of the grant.
       (f) Application.--
       (1) In general.--Each eligible recipient desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require.
       (2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall include--
       (A) a description of how the eligible recipient will use 
     grant funds to develop and administer undergraduate degrees 
     in mathematics, science, or engineering with pedagogy 
     education and teacher certification, including a description 
     of proposed high-quality research and laboratory experiences 
     that will be available to students;
       (B) a description of how the mathematics, science, or 
     engineering departments will coordinate with a teacher 
     preparation program to carry out the activities authorized 
     under this section;

[[Page 10436]]

       (C) a resource assessment that describes the resources 
     available to the eligible recipient, the intended use of the 
     grant funds, and the commitment of the resources of the 
     eligible recipient to the activities assisted under this 
     section, including financial support, faculty participation, 
     time commitments, and continuation of the activities assisted 
     under the grant when the grant period ends;
       (D) an evaluation plan, including measurable objectives and 
     benchmarks for--
       (i) improving student retention;
       (ii) increasing the percentage of highly qualified 
     mathematics and science teachers; and
       (iii) improving kindergarten through grade 12 student 
     academic performance in mathematics and science;
       (E) a description of the activities the eligible recipient 
     will conduct to ensure graduates of the program keep informed 
     of the latest developments in the respective fields;
       (F) a description of how the eligible recipient will work 
     with local educational agencies in the area in which the 
     eligible recipient is located and, to the extent practicable, 
     with local educational agencies where graduates of the 
     program authorized under this section are employed, to ensure 
     that the activities required under subsection (g)(3) are 
     carried out; and
       (G) a description of efforts to encourage applications to 
     the program from underrepresented groups, including women and 
     minority groups.
       (g) Authorized Activities.--An eligible recipient shall use 
     the funds received under this section--
       (1) to develop and administer teacher education and 
     certification programs with in-depth content education and 
     subject-specific education in pedagogy, leading to 
     baccalaureate degrees in mathematics, science, or engineering 
     with concurrent teacher certification;
       (2) to offer high-quality research experiences and training 
     in the use of educational technology; and
       (3) to work with local educational agencies in the area in 
     which the eligible recipient is located and, to the extent 
     practicable, with local educational agencies where graduates 
     of the program authorized under this section are employed, to 
     support the new teachers during the initial years of 
     teaching, which may include--
       (A) promoting effective teaching skills;
       (B) development of skills in educational interventions 
     based on scientifically-based research;
       (C) providing opportunities for high-quality teacher 
     mentoring;
       (D) providing opportunities for regular professional 
     development;
       (E) interdisciplinary collaboration among exemplary 
     teachers, faculty, researchers, and other staff who prepare 
     new teachers; and
       (F) allowing time for joint lesson planning and other 
     constructive collaborative activities.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $30,000,000 for 
     fiscal year 2007 and such sums as may be necessary for each 
     of the fiscal years 2008 through 2013.

     SEC. 302. TEACHERS PROFESSIONAL DEVELOPMENT INSTITUTES.

       Title II of the Higher Education Act of 1965 (20 U.S.C. 
     1021 et seq.) is amended by adding at the end the following:

         ``PART C--TEACHERS PROFESSIONAL DEVELOPMENT INSTITUTES

     ``SEC. 241. SHORT TITLE.

       ``This part may be cited as the `Teachers Professional 
     Development Institutes Act'.

     ``SEC. 242. PURPOSE.

       ``The purpose of this part is to provide Federal assistance 
     to support the establishment and operation of Teachers 
     Professional Development Institutes for local educational 
     agencies that serve significant low-income populations in 
     States throughout the Nation--
       ``(1) to promote innovative and effective approaches to 
     improving teacher quality through the use of the Teacher 
     Institute Model that encourages collaboration between urban 
     school teachers and university faculty;
       ``(2) to improve student learning; and
       ``(3) to enhance the quality of teaching by strengthening 
     the subject matter mastery and pedagogical skills of current 
     teachers through continuing teacher preparation, particularly 
     with respect to mathematics, science, technology, and 
     engineering.

     ``SEC. 243. DEFINITIONS.

       ``In this part:
       ``(1) 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) applicable 
     to a family of the size involved.
       ``(2) Significant low-income population.--The term 
     `significant low-income population' means a student 
     population of which not less than 25 percent are from 
     families with incomes below the poverty line.
       ``(3) State.--The term `State' means each of the several 
     States of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       ``(4) Teachers professional development institute.--The 
     term `Teachers Professional Development Institute' means a 
     partnership or joint venture between or among 1 or more 
     institutions of higher education, and 1 or more local 
     educational agencies serving a significant low-income 
     population, which partnership or joint venture--
       ``(A) is entered into for the purpose of improving the 
     quality of teaching and learning through collaborative 
     seminars designed to enhance both the subject matter and the 
     pedagogical resources of the seminar participants, 
     particularly with respect to mathematics, science, 
     technology, and engineering; and
       ``(B) works in collaboration to determine the direction and 
     content of the collaborative seminars.

     ``SEC. 244. GRANT AUTHORITY.

       ``(a) In General.--The Secretary is authorized--
       ``(1) to award grants to Teachers Professional Development 
     Institutes to encourage the establishment and operation of 
     Teachers Professional Development Institutes where not less 
     than 50 percent of collaborative seminars are targeted to the 
     fields of mathematics, science, technology, and engineering; 
     and
       ``(2) to provide technical assistance, either directly or 
     through existing Teachers Professional Development 
     Institutes, to assist local educational agencies and 
     institutions of higher education in preparing to establish 
     and in operating Teachers Professional Development 
     Institutes.
       ``(b) Selection Criteria.--In selecting a Teachers 
     Professional Development Institute for a grant under this 
     part, the Secretary shall consider--
       ``(1) the extent to which the proposed Teachers 
     Professional Development Institute will serve a community 
     with a significant low-income population;
       ``(2) the extent to which the proposed Teachers 
     Professional Development Institute will follow the 
     Understandings and Necessary Procedures that have been 
     developed following the National Demonstration Project;
       ``(3) the extent to which the local educational agency 
     participating in the proposed Teachers Professional 
     Development Institute has a high percentage of teachers who 
     are unprepared or under prepared to teach the core academic 
     subjects the teachers are assigned to teach, particularly in 
     the areas of mathematics, science, technology, and 
     engineering; and
       ``(4) the extent to which the proposed Teachers 
     Professional Development Institute will receive a level of 
     support from the community and other sources that will ensure 
     the requisite long-term commitment for the success of a 
     Teachers Professional Development Institute.
       ``(c) Consultation.--
       ``(1) In general.--In evaluating applications under 
     subsection (b), the Secretary may request the advice and 
     assistance of existing Teachers Professional Development 
     Institutes.
       ``(2) State agencies.--If the Secretary receives 2 or more 
     applications for new Teachers Professional Development 
     Institutes that propose serving the same State, the Secretary 
     shall consult with the State educational agency regarding the 
     applications.
       ``(d) Fiscal Agent.--For the purpose of this part, an 
     institution of higher education participating in a Teachers 
     Professional Development Institute shall serve as the fiscal 
     agent for the receipt of grant funds under this part.
       ``(e) Limitations.--A grant under this part--
       ``(1) shall be awarded for a period not to exceed 5 years; 
     and
       ``(2) shall not exceed 50 percent of the total costs of the 
     eligible activities, as determined by the Secretary.

     ``SEC. 245. ELIGIBLE ACTIVITIES.

       ``(a) In General.--A Teachers Professional Development 
     Institute that receives a grant under this part may use the 
     grant funds--
       ``(1) for the planning and development of applications for 
     the establishment of Teachers Professional Development 
     Institutes;
       ``(2) to provide assistance to existing Teachers 
     Professional Development Institutes established during the 
     National Demonstration Project to enable the Teachers 
     Professional Development Institutes--
       ``(A) to further develop existing Teachers Professional 
     Development Institutes; or
       ``(B) to support the planning and development of 
     applications for new Teachers Professional Development 
     Institutes;
       ``(3) for the salary and necessary expenses of a full-time 
     director to plan and manage such Teachers Professional 
     Development Institute and to act as liaison between the 
     participating local educational agency and institution of 
     higher education;
       ``(4) to provide staff, equipment, and supplies, and to pay 
     other operating expenses for the development and maintenance 
     of Teachers Professional Development Institutes;
       ``(5) to provide stipends for teachers participating in 
     collaborative seminars in the

[[Page 10437]]

      sciences and humanities, and to provide remuneration for 
     those members of the higher education faculty who lead the 
     seminars; and
       ``(6) to provide for the dissemination through print and 
     electronic means of curriculum units prepared in conjunction 
     with Teachers Professional Development Institutes seminars.
       ``(b) Technical Assistance.--The Secretary may use not more 
     than 25 percent of the funds appropriated to carry out this 
     part to provide technical assistance to facilitate the 
     establishment and operation of Teachers Professional 
     Development Institutes. For the purpose of this subsection, 
     the Secretary may contract with existing Teachers 
     Professional Development Institutes to provide all or a part 
     of the technical assistance under this subsection.

     ``SEC. 246. APPLICATION, APPROVAL, AND AGREEMENT.

       ``(a) In General.--To receive a grant under this part, a 
     Teachers Professional Development Institute shall submit an 
     application to the Secretary that--
       ``(1) meets the requirement of this part and any 
     regulations under this part;
       ``(2) includes a description of how the Teachers 
     Professional Development Institute intends to use funds 
     provided under the grant;
       ``(3) includes such information as the Secretary may 
     require to apply the criteria described in section 244(b);
       ``(4) includes measurable objectives for the use of the 
     funds provided under the grant; and
       ``(5) contains such other information and assurances as the 
     Secretary may require.
       ``(b) Approval.--The Secretary shall--
       ``(1) promptly evaluate an application received for a grant 
     under this part; and
       ``(2) notify the applicant within 90 days of the receipt of 
     a completed application of the Secretary's approval or 
     disapproval of the application.
       ``(c) Agreement.--Upon approval of an application, the 
     Secretary and the Teachers Professional Development Institute 
     shall enter into a comprehensive agreement covering the 
     entire period of the grant.

     ``SEC. 247. REPORTS AND EVALUATIONS.

       ``(a) Report.--Each Teachers Professional Development 
     Institute receiving a grant under this part shall report 
     annually on the progress of the Teachers Professional 
     Development Institute in achieving the purpose of this part 
     and the purposes of the grant.
       ``(b) Evaluation and Dissemination.--
       ``(1) Evaluation.--The Secretary shall evaluate the 
     activities funded under this part and submit an annual report 
     regarding the activities 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.
       ``(2) Dissemination.--The Secretary shall broadly 
     disseminate successful practices developed by Teachers 
     Professional Development Institutes.
       ``(c) Revocation.--If the Secretary determines that a 
     Teachers Professional Development Institute is not making 
     substantial progress in achieving the purpose of this part 
     and the purposes of the grant by the end of the second year 
     of the grant under this part, the Secretary may take 
     appropriate action, including revocation of further payments 
     under the grant, to ensure that the funds available under 
     this part are used in the most effective manner.

     ``SEC. 248. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part--
       ``(1) $4,000,000 for fiscal year 2007;
       ``(2) $5,000,000 for fiscal year 2008;
       ``(3) $6,000,000 for fiscal year 2009;
       ``(4) $7,000,000 for fiscal year 2010; and
       ``(5) $8,000,000 for fiscal year 2011.''.

                 TITLE IV--STEM EDUCATION AND RESEARCH

     SEC. 401. DEFINITIONS.

       In this title:
       (1) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 101(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1001(a)).
       (2) Professional science master's degree program.--The term 
     ``professional science master's degree program'' means a 
     graduate degree program in science and mathematics that 
     extends science training to strategic planning and business 
     management and focuses on multidisciplinary specialties such 
     as business and information technology (IT), biology and IT 
     (bioinformatics), and computational chemistry.
       (3) Service science.--The term ``service science'' means 
     curriculums, research programs, and training regimens, 
     including service sciences, management, and engineering 
     (SSME) programs, that exist or that are being developed to 
     teach individuals to apply technology, organizational process 
     management, and industry-specific knowledge to solve complex 
     problems.
       (4) SSME.--The term ``SSME'' means the discipline known as 
     service sciences, management, and engineering that--
       (A) applies scientific, engineering, and management 
     disciplines to tasks that one organization performs 
     beneficially for others, generally as part of the services 
     sector of the economy; and
       (B) integrates computer science, operations research, 
     industrial engineering, business strategy, management 
     sciences, and social and legal sciences, in order to 
     encourage innovation in how organizations create value for 
     customers and shareholders that could not be achieved through 
     such disciplines working in isolation.

     SEC. 402. GRADUATE FELLOWSHIPS AND GRADUATE TRAINEESHIPS.

       (a) Graduate Research Fellowship Program.--
       (1) In general.--During the 5-year period beginning on the 
     date of the enactment of this Act, the Director of the 
     National Science Foundation shall expand the Graduate 
     Research Fellowship Program of the Foundation so that an 
     additional 1250 fellowships are awarded to United States 
     citizens under such Program during such period.
       (2) Extension of fellowship period.--The Director of the 
     National Science Foundation is authorized to award 
     fellowships under the Graduate Research Fellowship Program 
     for a period of 5 years, subject to funds being made 
     available for such purpose.
       (3) Authorization of appropriations.--In addition to any 
     other amounts authorized to be appropriated, there are 
     authorized to be appropriated $51,000,000 for each of the 
     fiscal years 2007 through 2011 to provide an additional 250 
     fellowships under the Graduate Research Fellowship Program 
     during each such fiscal year.
       (b) Integrative Graduate Education and Research Traineeship 
     Program.--
       (1) In general.--During the 5-year period beginning on the 
     date of the enactment of this Act, the Director of the 
     National Science Foundation shall expand the Integrative 
     Graduate Education and Research Traineeship program of the 
     Foundation so that an additional 1,250 United States citizens 
     are awarded grants under such program during such period.
       (2) Authorization of appropriations.--In addition to any 
     other amounts authorized to be appropriated, there are 
     authorized to be appropriated $51,000,000 for each of the 
     fiscal years 2007 through 2011 to provide grants to an 
     additional 250 individuals under the Integrative Graduate 
     Education and Research Traineeship program during each such 
     fiscal year.

     SEC. 403. PROFESSIONAL SCIENCE MASTER'S DEGREE PROGRAMS.

       (a) Clearinghouse.--
       (1) Development.--From amounts appropriated under 
     subsection (c), the Director of the National Science 
     Foundation shall establish a clearinghouse, in collaboration 
     with 4-year institutions of higher education, industries, and 
     Federal agencies that employ science-trained personnel, to 
     share program elements used in successful professional 
     science master's degree programs.
       (2) Availability.--The Director of the National Science 
     Foundation shall make the clearinghouse of program elements 
     developed under paragraph (1) available to institutions of 
     higher education that are developing professional science 
     master's degree programs.
       (b) Pilot Programs.--
       (1) Program authorized.--From amounts appropriated under 
     subsection (c), the Director of the National Science 
     Foundation shall award grants for pilot programs to 4-year 
     institutions of higher education to facilitate the 
     institutions' creation or improvement of professional science 
     master's degree programs.
       (2) Application.--A 4-year institution of higher education 
     desiring a grant under this section shall submit an 
     application at such time, in such manner, and accompanied by 
     such information as the Director of the National Science 
     Foundation may require. The application shall include--
       (A) a description of the professional science master's 
     degree program that the institution of higher education will 
     implement;
       (B) the amount of funding from non-Federal sources, 
     including from private industries, that the institution of 
     higher education shall use to support the professional 
     science master's degree program; and
       (C) an assurance that the institution of higher education 
     shall encourage students in the professional science master's 
     degree program to apply for all forms of Federal assistance 
     available to such students, including applicable graduate 
     fellowships and student financial assistance under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).
       (3) Preference for alternative funding sources.--The 
     Director of the National Science Foundation shall give 
     preference in making awards to 4-year institutions of higher 
     education seeking Federal funding to support pilot 
     professional science master's degree programs, to those 
     applicants that secure more than \2/3\ of the funding for 
     such professional science master's degree programs from 
     sources other than the Federal Government.
       (4) Number of grants; time period of grants.--
       (A) Number of grants.--Subject to the availability of 
     appropriated funds, the Director of the National Science 
     Foundation shall award grants under paragraph (1) to a 
     maximum of 200 4-year institutions of higher education.
       (B) Time period of grants.--Grants awarded under this 
     section shall be for one 3-year

[[Page 10438]]

     term. Grants may be renewed only once for a maximum of 2 
     additional years.
       (5) Evaluation and reports.--
       (A) Development of performance benchmarks.--Prior to the 
     start of the grant program, the National Science Foundation, 
     in collaboration with 4-year institutions of higher 
     education, shall develop performance benchmarks to evaluate 
     the pilot programs assisted by grants under this section.
       (B) Evaluation.--For each year of the grant period, the 
     Director of the National Science Foundation, in consultation 
     with 4-year institutions of higher education, industry, and 
     Federal agencies that employ science-trained personnel, shall 
     complete an evaluation of each pilot program assisted by 
     grants under this section. Any pilot program that fails to 
     satisfy the performance benchmarks developed under 
     subparagraph (A) shall not be eligible for further funding.
       (C) Report.--Not later than 180 days after the completion 
     of an evaluation described in subparagraph (B), the Director 
     of the National Science Foundation, in consultation with 
     industries and Federal agencies that employ science-trained 
     personnel, shall submit a report to Congress that includes--
       (i) the results of the evaluation described in subparagraph 
     (B); and
       (ii) recommendations for administrative and legislative 
     action that could optimize the effectiveness of the pilot 
     programs, as the Director determines to be appropriate.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $20,000,000 for 
     fiscal year 2007 and such sums as may be necessary for each 
     succeeding fiscal year.

     SEC. 404. INCREASED SUPPORT FOR SCIENCE EDUCATION THROUGH THE 
                   NATIONAL SCIENCE FOUNDATION.

       There are authorized to be appropriated to carry out the 
     science, mathematics, engineering, and technology talent 
     expansion program under section 8(7) of the National Science 
     Foundation Authorization Act of 2002 (Public Law 107-368, 116 
     Stat. 3042) the following amounts:
       (1) For fiscal year 2007, $35,000,000.
       (2) For fiscal year 2008, $50,000,000.
       (3) For fiscal year 2009, $100,000,000.
       (4) For fiscal year 2010, $150,000,000.

     SEC. 405. A NATIONAL COMMITMENT TO BASIC RESEARCH.

       (a) Plan for Increased Research.--Not later than 180 days 
     after the date of the enactment of this Act, the Director of 
     the National Science Foundation shall submit to Congress a 
     comprehensive, multiyear plan that describes how the funds 
     authorized in subsection (b) shall be used. Such plan shall 
     be developed with a focus on utilizing basic research in 
     physical science and engineering to optimize the United 
     States economy as a global competitor and leader in 
     productive innovation.
       (b) Increased Funding for National Science Foundation.--
     There are authorized to be appropriated to the National 
     Science Foundation for the purpose of doubling research 
     funding the following amounts:
       (1) $6,440,000,000 for fiscal year 2007.
       (2) $7,280,000,000 for fiscal year 2008.
       (3) $8,120,000,000 for fiscal year 2009.
       (4) $8,960,000,000 for fiscal year 2010.
       (5) $9,800,000,000 for fiscal year 2011.
       (c) Recommendations for Research and Development Funding.--
     Not later than 1 year after the date of the enactment of this 
     Act, the Director of the Office of Science and Technology 
     Policy shall evaluate and, as appropriate, submit to Congress 
     recommendations for an increase in funding for research and 
     development in physical sciences and engineering in 
     consultation with agencies and departments of the United 
     States with significant research and development budgets.

     SEC. 406. STUDY ON SERVICE SCIENCE.

       (a) Sense of Congress.--It is the sense of Congress that, 
     in order to strengthen the competitiveness of United States 
     enterprises and institutions and to prepare the people of the 
     United States for high-wage, high-skill employment, the 
     Federal Government should better understand and respond 
     strategically to the emerging vocation and learning 
     discipline known as service science.
       (b) Study.--Not later than 270 days after the date of the 
     enactment of this Act, the Director of the National Science 
     Foundation shall conduct a study and report to Congress 
     regarding how the Federal Government should support, through 
     research, education, and training, the new discipline of 
     service science.
       (c) Outside Resources.--In conducting the study under 
     subsection (b), the Director of the National Science 
     Foundation shall consult with leaders from 2- and 4-year 
     institutions of higher education, leaders from corporations, 
     and other relevant parties.
                                 ______
                                 
      By Mr. HARKIN (for himself and Ms. Cantwell):
  S. 3484. A bill to amend the Federal Food, Drug, and Cosmetic Act to 
extend the food labeling requirements of the Nutrition Labeling and 
Education Act of 1990 to enable customers to make informed choices 
about the nutritional content of standard menu items in large chain 
restaurants; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. HARKIN. Mr. President, today I am pleased to introduce the Menu 
Education and Labeling Act of 2006, along with my colleague, Senator 
Cantwell of Washington. Our bill would extend the successful nutrition 
labeling that has been on packaged foods since the mid nineties to 
include foods at chain restaurants with 20 or more outlets and food 
sold in vending machines. The aim of this bill is to help Americans to 
take better charge of their health by giving them the tools that they 
need to make sound nutrition choices for themselves and their children.
  It is no secret that poor health and the resulting health costs are 
major problems in the United States. According to the Centers for 
Medicare and Medicaid Services, total health care spending in the 
United States in 2004 was $1.8 trillion, and is expected to double by 
approximately 2014. Furthermore, chronic diseases, which are, in many 
cases preventable, account for approximately 75 percent of health care 
costs annually.
  Poor nutrition, diet-related chronic diseases, overweight, and 
obesity are public health threats of the first order. Heart disease and 
stroke are the first and third leading causes of death in the United 
States and together, they account for about 40 percent of annual deaths 
in the United States. In addition, nearly two-thirds of adults are 
either overweight or obese.
  But it is not just adults who are affected by poor diets. Kids are 
increasingly at risk as well. According to the National Academy of 
Sciences, over the last three decades, the obesity rate has doubled 
among preschoolers and adolescents, and tripled for kids between ages 6 
and 11. For children born today, it is estimated that 30 percent of 
boys and 40 percent of girls will develop diabetes. Some scientists are 
predicting that the current generation of children may well be the 
first in American history to live shorter lives than their parents, 
largely because of poor diets and diet-related chronic disease.
  The issues are economic as well. The economic impact of chronic 
disease can be seen in the annual costs associated with various 
conditions. Cardiovascular disease and stroke are estimated to cost 
$352 billion annually. The yearly economic impacts of obesity, cancer, 
and diabetes are estimated at $117 billion, $172 billion, and $132 
billion, respectively. So we need to promote common-sense steps to 
prevent these conditions. Increasing consumer knowledge is one of them.
  This bill will give consumers a much-needed tool to make wiser 
choices and achieve healthier lifestyles. Will individual steps like 
this, by themselves, be enough to turn the tide of chronic disease and 
poor health? Of course not. But we must look for opportunities to give 
consumers information they can use to take better control of their 
health.
  In 1990, Congress passed the Nutrition Labeling and Education Act, 
NLEA, requiring food manufacturers to provide nutrition information on 
nearly all packaged foods. The impact has been extremely positive. Not 
only do nearly three-quarters of adults read and use the food labels on 
packaged foods, but studies indicate that consumers who read labels 
have healthier diets. It's time to extend this same opportunity to 
consumers who want to make smart nutrition choices in restaurants and 
at vending machines.
  More and more of Americans' food dollars are spent in restaurants. 
Restaurants play an increasingly important role in Americans' diet and 
health. But restaurants were excluded from the NLEA.
  Today, American adults and children consume a third of their calories 
at restaurants. Nutrition and health experts say that rising caloric 
consumption and growing portion sizes are causes of overweight and 
obesity. We also know that when children eat in restaurants, they 
consume twice as many calories as when they eat at home. Consumers say 
that they would like nutrition information provided when they order 
their food at restaurants. However, while they are fully informed about 
the nutrition content of food available in supermarkets, consumers at 
restaurants are almost totally in the dark, left to guess about

[[Page 10439]]

what is in the foods they are ordering. This legislation seeks to 
remedy this so that consumers can make the same informed choices in a 
restaurant that they are currently able to make in the grocery store.
  This legislation requires restaurants to convey only minimal but 
essential information, including calories, grams of fat and trans fat, 
and milligrams of sodium for each serving. In addition, it recognizes 
there may be inadvertent human errors that affect things such as 
variations in serving sizes and food preparation, so the bill directs 
the Secretary of Health and Human Services, in promulgating 
regulations, to allow for some reasonable leeway. And finally, it 
recognizes that menus change from time to time, so the labeling 
requirements would not apply to daily specials or to temporary menu 
items. In short, we are not trying to require information for every 
individual thing that is made available at restaurants, but we are 
asking restaurants to provide clear and consistent information on those 
menu items that are broadly and consistently available.
  There are some who will say this is impractical and an extraordinary 
burden on restaurants. I disagree. I have been through this debate 
before, when Congress was considering the NLEA. We heard the same 
parade of arguments and horror stories. But the law was passed anyway 
and, lo and behold, the sky did not fall. To the contrary, businesses 
made simple adjustments. Americans got access to the necessary 
information. It had positive health benefits. And at the end of the 
day, things worked out just fine.
  In fact, you can even look at the Senate to see the potential success 
of this law. A couple of years ago, I wrote to the administrator of the 
Senate cafeteria, to which I often send out for lunch. I simply 
requested that the cafeteria, if possible, provide nutrition 
information on standard menu items. Not more than a couple of months 
later, printed handouts were available in the cafeteria with detailed 
nutrition information on the daily menu. This is not McDonald's, Burger 
King or Arby's. This is the Senate cafeteria. And by gosh, if the 
Senate cafeteria can do this without an undue burden, then surely so 
can the largest restaurant chains in the country.
  I believe that most Americans want to take more charge of their 
health. They want to make the best decisions for both themselves and 
for their children. But it is hard to do so without nutrition 
information upon which they can base their informed decisions. This 
legislation seeks to give Americans the information they want and need. 
This will be a simple but very important step in the right direction, 
helping ourselves and our children to live healthier, happier, and more 
productive lives. I urge my colleagues to join us in supporting the 
Menu Education and Labeling Act of 2006.
                                 ______
                                 
      By Mr. REID (for Mr. Rockefeller (for himself, Mr. Jeffords, Mr. 
        Baucus, Mr. Leahy, and Ms. Stabenow)):
  S. 3486. A bill to protect the privacy of veterans, spouses of 
veterans, and other persons affected by the security breach at the 
Department of Veterans Affairs on May 3, 2006, and for other purposes; 
to the Committee on Banking, Housing, and Urban Affairs.
  (At the request of Mr. Reid, the following statement was ordered to 
be printed in the Record.)
 Mr. ROCKEFELLER. Mr. President, today's headline is sad and 
stunning. The VA Secretary now reports that 2.2 million active-duty 
military personnel were also exposed in the massive security breach at 
VA on May 3. This means that 1.1 million active-duty military 
personnel, 430,000 National Guard members and 645,000 reservists are 
exposed to potential identity theft. The brave men and women, who are 
serving and protecting our country, are not being protected by their 
own government.
  This is deeply disturbing and we owe each servicemember and veteran 
real support to protect their financial information.
  I have revised my legislation, S. 3176, the Veterans' Privacy 
Protection Act, to expand coverage to our military personnel. I am 
proud to have the cosponsorship of Senators Jeffords and Baucus.
  Every American has the justifiable expectation that the Federal 
Government will protect their private personal information--information 
that they are required to provide to Federal agencies. It is a basic 
and fundamental responsibility of government to make sure that this 
sensitive data is handled appropriately, accessed only by authorized 
personal, and used only for intended purposes.
  On May 22, the Department of Veterans Affairs, VA, announced that 
computer disks containing as many as 26.5 million veterans' personal 
information were stolen from an employee who had taken the information 
home. I, along with many of my colleagues, am outraged at this enormous 
lapse in security. The VA has an obligation to make sure that veterans 
and military personnel are not harmed because of the agency's failure 
to protect sensitive personal data.
  This information includes social security numbers and dates of birth, 
the underpinnings of almost all of our financial information. In the 
wrong hands, this information can be used to steal a person's identity 
causing substantial harm. All of us have constituents who have been 
victims of identity theft. When a person's identity is stolen, it can 
have devastating financial consequences for that person and that 
family. Even if the financial harm is minimal, it often takes years to 
clear your name. Plus, veterans and military families must live with 
the uncertainty about the financial records.
  I understand that the VA, FBI and local law enforcement are working 
on the investigation, but Congress must also conduct a thorough 
investigation into how this security breach occurred. I want to know 
why the VA waited almost three weeks for its first announcement. I want 
to know why it took another two weeks to compare files and realize that 
2.2 million military personnel were also exposed.
  In my opinion, it is inexcusable that veterans and military were not 
notified immediately that their personal information had been stolen 
and were not given any guidance as to the steps they should take to 
protect themselves from identity theft. I understand the VA inspector 
general has cited the agency for poor security policies and procedures. 
Congress must also begin a comprehensive review of the agency's 
security protocols and policies and force the agency to adopt stricter 
security measures to make sure that the personal data our veterans are 
required to provide the agency is not ever again at risk.
  It is for this reason that I am reintroducing the Veterans' and 
Military Privacy Protection Act today. Although all Federal agencies 
need comprehensive data privacy policies, this is a targeted bill to 
address the security breach at the VA on an urgent basis.
  Congress has required the Federal Trade Commission to address 
identity theft and its consequences. The agency has taken an aggressive 
approach in combating this devastating crime. My bill would require the 
Federal Trade Commission to develop a hotline explicitly for veterans 
and military personnel to provide the information, counseling, and help 
necessary to allow each person to protect himself from the loss of 
personal data.
  At this point, our legislative response must cover all 28.7 million 
veterans and servicemembers that the VA believes may have had their 
personal information compromise. My bill would make it easier for them 
to request a long-term credit alert for their records so credit 
agencies are aware that their personal information could be being used 
by others. It is my understanding that a security freeze on an 
individual's record can have a modest cost, and VA has the obligation 
to cover the costs of this enormous security breach.
  Finally, my bill requires the General Accountability Office to 
evaluate the VA response to this incident and to analyze the agency's 
security protocols. I believe that an independent investigation could 
generate a number of

[[Page 10440]]

recommendations to improve the security of personal information not 
just in the VA but in all Federal agencies.
  The VA has exposed millions of veterans and military to identity 
theft and potential financial problems. It is inconceivable to me how 
any Federal agency could have let this happen, and how the 
investigation and followup could be so haphazard. We all have heard the 
stories during the past year regarding massive breaches of private and 
confidential data by private entities. The Federal Government acted 
quickly to respond to these breaches and now it must act just as 
quickly if not more so to address its own failings. My bill is a 
critical step in providing the necessary assistance that millions of 
veterans and servicemembers may require, and I urge my colleagues to 
act on it with the urgency this situation demands.
                                 ______
                                 
      By Mr. KERRY (for himself and Mr. Pryor):
  S. 3487. A bill to amend the Small Business Act to reauthorize and 
improve the disaster loan program, and for other purposes; to the 
Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, June brings the beginning of the 2006 
Atlantic Hurricane season, and according to the National Oceanic and 
Atmospheric Administration, we can expect it to be a busy one. The 
administration is predicting 13 to 16 named storms, with as many as 4 
to 6 predicted to become major hurricanes of category three strength or 
higher.
  As our gulf coast communities learned last fall, it only takes one of 
these storms to utterly destroy the homes, businesses and lives of 
millions of Americans. We owe it to the victims of Hurricanes Katrina, 
Rita and Wilma, as well as to the unsuspecting victims of future 
disasters, to fix the Federal disaster loan program and build it to be 
responsive to the needs of disaster victims.
  That's why I am introducing the Small Business Disaster Loan 
Reauthorization and Improvement Act of 2006. This bill seeks to improve 
coordination between responding agencies in the immediate aftermath of 
a disaster. The priority of first responders should be addressing the 
needs of victims, and the laws establishing disaster response should 
allow for maximum agency collaboration in addressing those needs.
  To this end, we have directed the Administrator of the Small Business 
Administration and the Director of the Federal Emergency Management 
Agency to coordinate disaster assistance application periods when 
possible. The Small Business Administration is directed to address any 
inconsistencies between the Federal regulations and the 
administration's standard operating procedures that govern the disaster 
loan program.The Administrator is also directed to work to the maximum 
extent practicable to gain speedy access to all relevant tax records 
for loan applicant consideration, and when considering applications, is 
directed to consider an applicant's credit rating from the day prior to 
the disaster's occurrence.
  The Comptroller General is directed to study the current disaster 
assistance application and referral process that has resulted in an 
approval rate of only 35 percent of total disaster loan applicants. The 
Administrator is also directed to report on how this process can be 
improved. To increase awareness of available disaster loan assistance, 
the bill directs the Administrator to develop a proactive marketing 
plan that will get information on disaster loans in the hands of those 
who need it. The bill includes an additional study to be conducted by 
the Comptroller General on industries that may have difficulty 
accessing disaster loans.
  In addition to reauthorizing the disaster loan program for a period 
of 3 years beginning in 2007, this bill provides the increased capital 
that homeowners and small business owners need and currently have 
trouble accessing following a major disaster. A presidential 
declaration of catastrophic national disaster will allow the 
Administrator to offer economic injury disaster loans to adversely 
affected business owners beyond the geographic reach of the disaster 
area. In addition, private lenders are encouraged to make disaster 
loans through the 7(a) and 504 lending programs with reduced fees, and 
the Administrator is authorized to enter into agreements with private 
contractors in order to expedite loan application processing for direct 
disaster loans.
  Disaster victims are often in need of capital prior to when 
traditional assistance programs are available. To address this need, 
this bill establishes a process for providing Federal bridge loans, 
allowing States to redirect funding previously designated for Community 
Development Block Grants and use these funds to provide bridge loans 
and grants to disaster victims. Having this waiver in place will allow 
States to ensure that victims have the speedy access to capital while 
they wait for alternative sources of assistance.
  Non-profit entities working to provide services to victims should be 
rewarded and given access to the capital they require to continue their 
services. To this end, the Administrator is authorized to make disaster 
loans to nonprofit entities, including religious organizations.
  So that businesses are not limited during major disasters by a loan 
cap that is not sufficient to meet their needs, the bill increases the 
aggregate amount of loans available to $10,000,000 during a declared 
major disaster or a catastrophic national disaster.
  This bill strengthens the Stafford Act by requiring a 10 percent goal 
for local firms to participate in the recovery and reconstruction 
effort. The bill also encourages the utilization of expedited 
procurement tools for small, small disadvantaged, service-disabled, and 
historically underutilized businesses.
  Construction and rebuilding contracts being awarded are likely to be 
larger than the current $2 million threshold currently applied to the 
SBA Surety Bond Program which helps small construction firms gain 
access to contracts. This bill increases the guarantee against loss for 
small business contracts up to $5 million and allows the Administrator 
to increase that level to $10 million, if deemed necessary.
  The bill also allows faster payments to small firms in order to 
increase their ability to gain access to bonds. To make bonding more 
attractive to surety providers in the disaster area, the Administrator 
may wave fees for sureties offering bonding in the disaster area and 
allows the sureties to use the State-approved rates for bonds awarded 
in the disaster area.
  The bill also provides for small business development centers to 
offer business counseling in disaster areas, and to travel beyond 
traditional geographic boundaries to provide services during declared 
disasters. To encourage small business development centers located in 
disaster areas to keep their doors open, the maximum grant amount of 
$100,000 is waived.
  So that Congress may remain better aware of the status of the 
administration's disaster loan program, this bill directs the 
administration to report to the Committee on Small Business and 
Entrepreneurship of the Senate and to the Committee on Small Business 
of the House of Representatives regularly on the fiscal status of the 
disaster loan program as well as the need for supplemental funding. The 
administration is also directed to report on the number of Federal 
contracts awarded to small businesses, minority-owned small businesses, 
women-owned businesses, and local businesses during a disaster 
declaration.
  Many small businesses depend on the contributions of America's 
military reservists, and have been struggling through the months that 
these brave men and women have served their country through active 
duty. This bill authorizes the Administrator to provide grants to the 
smallest of these firms to assist them as they seek to remain open.
  Gas prices continue to soar, and fuel dependent small businesses are 
struggling with the cost of energy. This bill provides relief to small 
business owners during times of above average energy price increases, 
authorizing energy disaster loans through the Small Business

[[Page 10441]]

Administration and the United States Department of Agriculture to 
companies dependent on fuel.
  Residents of the gulf coast continue to rebuild from last year's 
hurricane season, and they do so despite the slow and inadequate 
response from their Federal Government. By increasing access to capital 
for small businesses suffering as a result of a disaster, and by 
ensuring that Federal agencies charged with disaster response are doing 
their jobs in a coordinated manner that puts the needs of victims 
first, we can ensure that the Federal Government is better prepared to 
respond to future disasters.

                          ____________________