[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[Senate]
[Pages 103-256]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

                                 ______
                                 
      By Mr. REID (for himself, Mr. McConnell, Mr. Durbin, Mr. Lott, 
        Mrs. Feinstein, Mr. Bennett, Mr. Lieberman, Ms. Collins, Mr. 
        Schumer, Ms. Mikulski, Mrs. Cantwell, Mr. Leahy, Ms. Stabenow, 
        Mr. Webb, Mr. Lautenberg and Mr. Menendez):
  S. 1. A bill to provide greater transparency in the legislative 
process; placed on the calendar.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                  S. 1

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Table of contents.

    TITLE I--LEGISLATIVE TRANSPARENCY AND ACCOUNTABILITY ACT OF 2007

Sec. 101. Short title.
Sec. 102. Out of scope matters in conference reports.
Sec. 103. Earmarks.
Sec. 104. Availability of conference reports on the Internet.
Sec. 105. Elimination of floor privileges for former Members, Senate 
              officers, and Speakers of the House who are lobbyists or 
              seek financial gain.
Sec. 106. Ban on gifts from lobbyists.
Sec. 107. Travel restrictions and disclosure.
Sec. 108. Post employment restrictions.
Sec. 109. Public disclosure by Members of Congress of employment 
              negotiations.
Sec. 110. Prohibit official contact with spouse or immediate family 
              member of Member who is a registered lobbyist.
Sec. 111. Influencing hiring decisions.
Sec. 112. Sense of the Senate that any applicable restrictions on 
              Congressional branch employees should apply to the 
              Executive and Judicial branches.
Sec. 113. Amounts of COLA adjustments not paid to certain Members of 
              Congress.
Sec. 114. Requirement of notice of intent to proceed.
Sec. 115. Effective date.

     TITLE II--LOBBYING TRANSPARENCY AND ACCOUNTABILITY ACT OF 2007

Sec. 201. Short title.

               Subtitle A--Enhancing Lobbying Disclosure

Sec. 211. Quarterly filing of lobbying disclosure reports.
Sec. 212. Annual report on contributions.
Sec. 213. Public database of lobbying disclosure information.
Sec. 214. Disclosure by registered lobbyists of all past executive and 
              Congressional employment.
Sec. 215. Disclosure of lobbyist travel and payments.
Sec. 216. Increased penalty for failure to comply with lobbying 
              disclosure requirements.
Sec. 217. Disclosure of lobbying activities by certain coalitions and 
              associations.
Sec. 218. Disclosure of enforcement for noncompliance.
Sec. 219. Electronic filing of lobbying disclosure reports.
Sec. 220. Disclosure of paid efforts to stimulate grassroots lobbying.
Sec. 221. Electronic filing and public database for lobbyists for 
              foreign governments.
Sec. 222. Effective date.

              Subtitle B--Oversight of Ethics and Lobbying

Sec. 231. Comptroller General audit and annual report.
Sec. 232. Mandatory Senate ethics training for Members and staff.
Sec. 233. Sense of the Senate regarding self-regulation within the 
              Lobbying community.
Sec. 234. Annual ethics committees reports.

                 Subtitle C--Slowing the Revolving Door

Sec. 241. Amendments to restrictions on former officers, employees, and 
              elected officials of the executive and legislative 
              branches.

    Subtitle D--Ban on Provision of Gifts or Travel by Lobbyists in 
                   Violation of the Rules of Congress

Sec. 251. Prohibition on provision of gifts or travel by registered 
              lobbyists to Members of Congress and to Congressional 
              employees.

Subtitle E--Commission to Strengthen Confidence in Congress Act of 2007

Sec. 261. Short title.

[[Page 104]]

Sec. 262. Establishment of commission.
Sec. 263. Purposes.
Sec. 264. Composition of commission.
Sec. 265. Functions of Commission.
Sec. 266. Powers of Commission.
Sec. 267. Administration.
Sec. 268. Security clearances for Commission Members and staff.
Sec. 269. Commission reports; termination.
Sec. 270. Funding.

    TITLE I--LEGISLATIVE TRANSPARENCY AND ACCOUNTABILITY ACT OF 2007

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Legislative Transparency 
     and Accountability Act of 2007''.

     SEC. 102. OUT OF SCOPE MATTERS IN CONFERENCE REPORTS.

       (a) In General.--A point of order may be made by any 
     Senator against consideration of a conference report that 
     includes any matter not committed to the conferees by either 
     House. The point of order shall be made and voted on 
     separately for each item in violation of this section.
       (b) Disposition.--If the point of order against a 
     conference report under subsection (a) is sustained, then--
       (1) the matter in such conference report shall be deemed to 
     have been struck;
       (2) when all other points of order under this section have 
     been disposed of--
       (A) the Senate shall proceed to consider the question of 
     whether the Senate should recede from its amendment to the 
     House bill, or its disagreement to the amendment of the 
     House, and concur with a further amendment, which further 
     amendment shall consist of only that portion of the 
     conference report not deemed to have been struck;
       (B) the question shall be debatable; and
       (C) no further amendment shall be in order; and
       (3) if the Senate agrees to the amendment, then the bill 
     and the Senate amendment thereto shall be returned to the 
     House for its concurrence in the amendment of the Senate.
       (c) Supermajority Waiver and Appeal.--This section may be 
     waived or suspended in the Senate only by an affirmative vote 
     of \3/5\ of the Members, duly chosen and sworn. An 
     affirmative vote of \3/5\ of the Members of the Senate, duly 
     chosen and sworn, shall be required in the Senate to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.

     SEC. 103. EARMARKS.

       The Standing Rules of the Senate are amended by adding at 
     the end the following:

                              ``RULE XLIV

                               ``earmarks

       ``1. In this rule--
       ``(1) the term `earmark' means a provision that specifies 
     the identity of a non-Federal entity to receive assistance 
     and the amount of the assistance; and
       ``(2) the term `assistance' means budget authority, 
     contract authority, loan authority, and other expenditures, 
     and tax expenditures or other revenue items.
       ``2. It shall not be in order to consider any Senate bill 
     or Senate amendment or conference report on any bill, 
     including an appropriations bill, a revenue bill, and an 
     authorizing bill, unless a list of--
       ``(1) all earmarks in such measure;
       ``(2) an identification of the Member or Members who 
     proposed the earmark; and
       ``(3) an explanation of the essential governmental purpose 
     for the earmark;
     is available along with any joint statement of managers 
     associated with the measure to all Members and made available 
     on the Internet to the general public for at least 48 hours 
     before its consideration.''.

     SEC. 104. AVAILABILITY OF CONFERENCE REPORTS ON THE INTERNET.

       (a) In General.--
       (1) Amendment.--Rule XXVIII of all the Standing Rules of 
     the Senate is amended by adding at the end the following:
       ``7. It shall not be in order to consider a conference 
     report unless such report is available to all Members and 
     made available to the general public by means of the Internet 
     for at least 48 hours before its consideration.''.
       (2) Effective date.--This subsection shall take effect 60 
     days after the date of enactment of this title.
       (b) Implementation.--Not later than 60 days after the date 
     of enactment of this title, the Secretary of the Senate, in 
     consultation with the Clerk of the House of Representatives, 
     the Government Printing Office, and the Committee on Rules 
     and Administration, shall develop a website capable of 
     complying with the requirements of paragraph 7 of rule XXVIII 
     of the Standing Rules of the Senate, as added by subsection 
     (a).

     SEC. 105. ELIMINATION OF FLOOR PRIVILEGES FOR FORMER MEMBERS, 
                   SENATE OFFICERS, AND SPEAKERS OF THE HOUSE WHO 
                   ARE LOBBYISTS OR SEEK FINANCIAL GAIN.

       Rule XXIII of the Standing Rules of the Senate is amended 
     by--
       (1) inserting ``1.'' before ``Other'';
       (2) inserting after ``Ex-Senators and Senators elect'' the 
     following: ``, except as provided in paragraph 2'';
       (3) inserting after ``Ex-Secretaries and ex-Sergeants at 
     Arms of the Senate'' the following: ``, except as provided in 
     paragraph 2'';
       (4) inserting after ``Ex-Speakers of the House of 
     Representatives'' the following: ``, except as provided in 
     paragraph 2''; and
       (5) adding at the end the following:
       ``2. (a) The floor privilege provided in paragraph 1 shall 
     not apply to an individual covered by this paragraph who is--
       ``(1) a registered lobbyist or agent of a foreign 
     principal; or
       ``(2) is in the employ of or represents any party or 
     organization for the purpose of influencing, directly, or 
     indirectly, the passage, defeat, or amendment of any 
     legislative proposal.
       ``(b) The Committee on Rules and Administration may 
     promulgate regulations to allow individuals covered by this 
     paragraph floor privileges for ceremonial functions and 
     events designated by the Majority Leader and the Minority 
     Leader.''.

     SEC. 106. BAN ON GIFTS FROM LOBBYISTS.

       Paragraph 1(a)(2) of rule XXXV of the Standing Rules of the 
     Senate is amended by--
       (1) inserting ``(A)'' after ``(2)''; and
       (2) adding at the end the following:
       ``(B) This clause shall not apply to a gift from a 
     registered lobbyist or an agent of a foreign principal.''.

     SEC. 107. TRAVEL RESTRICTIONS AND DISCLOSURE.

       (a) In General.--Paragraph 2 of rule XXXV of the Standing 
     Rules of the Senate is amended by adding at the end the 
     following:
       ``(f)(1) Before a Member, officer, or employee may accept 
     transportation or lodging otherwise permissible under this 
     paragraph from any person, other than a governmental entity, 
     such Member, officer, or employee shall--
       ``(A) obtain a written certification from such person (and 
     provide a copy of such certification to the Select Committee 
     on Ethics) that--
       ``(i) the trip was not financed in whole, or in part, by a 
     registered lobbyist or foreign agent;
       ``(ii) the person did not accept, directly or indirectly, 
     funds from a registered lobbyist or foreign agent 
     specifically earmarked for the purpose of financing the 
     travel expenses;
       ``(iii) the trip was not planned, organized, or arranged by 
     or at the request of a registered lobbyist or foreign agent; 
     and
       ``(iv) registered lobbyists will not participate in or 
     attend the trip;
       ``(B) provide the Select Committee on Ethics (in the case 
     of an employee, from the supervising Member or officer), in 
     writing--
       ``(i) a detailed itinerary of the trip; and
       ``(ii) a determination that the trip--
       ``(I) is primarily educational (either for the invited 
     person or for the organization sponsoring the trip);
       ``(II) is consistent with the official duties of the 
     Member, officer, or employee;
       ``(III) does not create an appearance of use of public 
     office for private gain; and
       ``(iii) has a minimal or no recreational component; and
       ``(C) obtain written approval of the trip from the Select 
     Committee on Ethics.
       ``(2) Not later than 30 days after completion of travel, 
     approved under this subparagraph, the Member, officer, or 
     employee shall file with the Select Committee on Ethics and 
     the Secretary of the Senate a description of meetings and 
     events attended during such travel and the names of any 
     registered lobbyist who accompanied the Member, officer, or 
     employee during the travel, except when disclosure of such 
     information is deemed by the Member or supervisor under whose 
     direct supervision the employee is employed to jeopardize the 
     safety of an individual or adversely affect national 
     security. Such information shall also be posted on the 
     Member's official website not later than 30 days after the 
     completion of the travel, except when disclosure of such 
     information is deemed by the Member to jeopardize the safety 
     of an individual or adversely affect national security.''.
       (b) Disclosure of Noncommercial Air Travel.--
       (1) Rules.--Paragraph 2 of rule XXXV of the Standing Rules 
     of the Senate, as amended by subsection (a), is amended by 
     adding at the end the following:
       ``(g) A Member, officer, or employee of the Senate shall--
       ``(1) disclose a flight on an aircraft that is not licensed 
     by the Federal Aviation Administration to operate for 
     compensation or hire, excluding a flight on an aircraft 
     owned, operated, or leased by a governmental entity, taken in 
     connection with the duties of the Member, officer, or 
     employee as an officeholder or Senate officer or employee; 
     and
       ``(2) with respect to the flight, file a report with the 
     Secretary of the Senate, including the date, destination, and 
     owner or lessee of the aircraft, the purpose of the trip, and 
     the persons on the trip, except for any person flying the 
     aircraft.''.
       (2) FECA.--Section 304(b) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 434(b)) is amended--
       (A) by striking ``and'' at the end of paragraph (7);
       (B) by striking the period at the end of paragraph (8) and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(9) in the case of a principal campaign committee of a 
     candidate (other than a candidate for election to the office 
     of President

[[Page 105]]

     or Vice President), any flight taken by the candidate (other 
     than a flight designated to transport the President, Vice 
     President, or a candidate for election to the office of 
     President or Vice President) during the reporting period on 
     an aircraft that is not licensed by the Federal Aviation 
     Administration to operate for compensation or hire, together 
     with the following information:
       ``(A) The date of the flight.
       ``(B) The destination of the flight.
       ``(C) The owner or lessee of the aircraft.
       ``(D) The purpose of the flight.
       ``(E) The persons on the flight, except for any person 
     flying the aircraft.''.
       (c) Public Availability.--Paragraph 2(e) of rule XXXV of 
     the Standing Rules of the Senate is amended to read as 
     follows:
       ``(e) The Secretary of the Senate shall make available to 
     the public all disclosures filed pursuant to subparagraphs 
     (f) and (g) as soon as possible after they are received and 
     such matters shall be posted on the Member's official website 
     but no later than 30 days after the trip or flight.''.

     SEC. 108. POST EMPLOYMENT RESTRICTIONS.

       (a) In General.--Paragraph 9 of rule XXXVII of the Standing 
     Rules of the Senate is amended by--
       (1) designating the first sentence as subparagraph (a);
       (2) designating the second sentence as subparagraph (b); 
     and
       (3) adding at the end the following:
       ``(c) If an employee on the staff of a Member or on the 
     staff of a committee whose rate of pay is equal to or greater 
     than 75 percent of the rate of pay of a Member and employed 
     at such rate for more than 60 days in a calendar year, upon 
     leaving that position, becomes a registered lobbyist under 
     the Lobbying Disclosure Act of 1995, or is employed or 
     retained by such a registered lobbyist for the purpose of 
     influencing legislation, such employee may not lobby any 
     Member, officer, or employee of the Senate for a period of 1 
     year after leaving that position.''.
       (b) Effective Date.--This section shall take effect 60 days 
     after the date of enactment of this title.

     SEC. 109. PUBLIC DISCLOSURE BY MEMBERS OF CONGRESS OF 
                   EMPLOYMENT NEGOTIATIONS.

       Rule XXXVII of the Standing Rules of the Senate is amended 
     by adding at the end the following:
       ``14. A Member shall not directly negotiate or have any 
     arrangement concerning prospective private employment until 
     after the election for his or her successor has been held, 
     unless such Member files a statement with the Secretary of 
     the Senate, for public disclosure, regarding such 
     negotiations or arrangements within 3 business days after the 
     commencement of such negotiation or arrangement, including 
     the name of the private entity or entities involved in such 
     negotiations or arrangements, the date such negotiations or 
     arrangements commenced, and must be signed by the Member.''.

     SEC. 110. PROHIBIT OFFICIAL CONTACT WITH SPOUSE OR IMMEDIATE 
                   FAMILY MEMBER OF MEMBER WHO IS A REGISTERED 
                   LOBBYIST.

       Rule XXXVII of the Standing Rules of the Senate is amended 
     by--
       (1) redesignating paragraphs 10 through 12 as paragraphs 11 
     through 13, respectively; and
       (2) inserting after paragraph 9, the following:
       ``10. (a) If a Member's spouse or immediate family member 
     is a registered lobbyist under the Lobbying Disclosure Act of 
     1995, or is employed or retained by such a registered 
     lobbyist for the purpose of influencing legislation, the 
     Member shall prohibit all staff employed by that Member 
     (including staff in personal, committee and leadership 
     offices) from having any official contact with the Member's 
     spouse or immediate family member.
       ``(b) In this paragraph, the term `immediate family member' 
     means the son, daughter, stepson, stepdaughter, son-in-law, 
     daughter-in-law, mother, father, stepmother, stepfather, 
     mother-in-law, father-in-law, brother, sister, stepbrother, 
     or stepsister of the Member.''.

     SEC. 111. INFLUENCING HIRING DECISIONS.

       Rule XLIII of the Standing Rules of the Senate is amended 
     by adding at the end the following:
       ``6. No Member shall, with the intent to influence on the 
     basis of partisan political affiliation an employment 
     decision or employment practice of any private entity--
       ``(1) take or withhold, or offer or threaten to take or 
     withhold, an official act; or
       ``(2) influence, or offer or threaten to influence the 
     official act of another.''.

     SEC. 112. SENSE OF THE SENATE THAT ANY APPLICABLE 
                   RESTRICTIONS ON CONGRESSIONAL BRANCH EMPLOYEES 
                   SHOULD APPLY TO THE EXECUTIVE AND JUDICIAL 
                   BRANCHES.

       It is the sense of the Senate that any applicable 
     restrictions on Congressional branch employees in this title 
     should apply to the Executive and Judicial branches.

     SEC. 113. AMOUNTS OF COLA ADJUSTMENTS NOT PAID TO CERTAIN 
                   MEMBERS OF CONGRESS.

       (a) In General.--Any adjustment under section 601(a) of the 
     Legislative Reorganization Act of 1946 (2 U.S.C. 31) 
     (relating to the cost of living adjustments for Members of 
     Congress) shall not be paid to any Member of Congress who 
     voted for any amendment (or against the tabling of any 
     amendment) that provided that such adjustment would not be 
     made.
       (b) Deposit in Treasury.--Any amount not paid to a Member 
     of Congress under subsection (a) shall be transmitted to the 
     Treasury for deposit in the appropriations account under the 
     subheading ``medical services'' under the heading ``veterans 
     health administration''.
       (c) Administration.--The salary of any Member of Congress 
     to whom subsection (a) applies shall be deemed to be the 
     salary in effect after the application of that subsection, 
     except that for purposes of determining any benefit 
     (including any retirement or insurance benefit), the salary 
     of that Member of Congress shall be deemed to be the salary 
     that Member of Congress would have received, but for that 
     subsection.
       (d) Effective Date.--This section shall take effect on the 
     first day of the first applicable pay period beginning on or 
     after February 1, 2008.

     SEC. 114. REQUIREMENT OF NOTICE OF INTENT TO PROCEED.

       (a) In General.--The majority and minority leaders of the 
     Senate or their designees shall recognize a notice of intent 
     of a Senator who is a member of their caucus to object to 
     proceeding to a measure or matter only if the Senator--
       (1) submits the notice of intent in writing to the 
     appropriate leader or their designee; and
       (2) within 3 session days after the submission under 
     paragraph (1), submits for inclusion in the Congressional 
     Record and in the applicable calendar section described in 
     subsection (b) the following notice:
       ``I, Senator __, intend to object to proceeding to __, 
     dated __.''.
       (b) Calendar.--The Secretary of the Senate shall establish 
     for both the Senate Calendar of Business and the Senate 
     Executive Calendar a separate section entitled ``Notices of 
     Intent to Object to Proceeding''. Each section shall include 
     the name of each Senator filing a notice under subsection 
     (a)(2), the measure or matter covered by the calendar that 
     the Senator objects to, and the date the objection was filed.
       (c) Removal.--A Senator may have an item with respect to 
     the Senator removed from a calendar to which it was added 
     under subsection (b) by submitting for inclusion in the 
     Congressional Record the following notice:
       ``I, Senator __, do not object to proceeding to __, dated 
     __.''.

     SEC. 115. EFFECTIVE DATE.

       Except as otherwise provided in this title, this title 
     shall take effect on the date of enactment of this title.

     TITLE II--LOBBYING TRANSPARENCY AND ACCOUNTABILITY ACT OF 2007

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Legislative Transparency 
     and Accountability Act of 2007''.

               Subtitle A--Enhancing Lobbying Disclosure

     SEC. 211. QUARTERLY FILING OF LOBBYING DISCLOSURE REPORTS.

       (a) Quarterly Filing Required.--Section 5 of the Lobbying 
     Disclosure Act of 1995 (in this title referred to as the 
     ``Act'') (2 U.S.C. 1604) is amended--
       (1) in subsection (a)--
       (A) in the subsection heading, by striking ``Semiannual'' 
     and inserting ``Quarterly'';
       (B) by striking ``the semiannual period'' and all that 
     follows through ``July of each year'' and inserting ``the 
     quarterly period beginning on the 20th day of January, April, 
     July, and October of each year or on the first business day 
     after the 20th day if that day is not a business day''; and
       (C) by striking ``such semiannual period'' and inserting 
     ``such quarterly period''; and
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``semiannual report'' and inserting ``quarterly report'';
       (B) in paragraph (2), by striking ``semiannual filing 
     period'' and inserting ``quarterly period'';
       (C) in paragraph (3), by striking ``semiannual period'' and 
     inserting ``quarterly period''; and
       (D) in paragraph (4), by striking ``semiannual filing 
     period'' and inserting ``quarterly period''.
       (b) Conforming Amendments.--
       (1) Definition.--Section 3(10) of the Act (2 U.S.C. 1602) 
     is amended by striking ``six month period'' and inserting 
     ``three-month period''.
       (2) Registration.--Section 4 of the Act (2 U.S.C. 1603) is 
     amended--
       (A) in subsection (a)(3)(A), by striking ``semiannual 
     period'' and inserting ``quarterly period''; and
       (B) in subsection (b)(3)(A), by striking ``semiannual 
     period'' and inserting ``quarterly period''.
       (3) Enforcement.--Section 6(a)(6) of the Act (2 U.S.C. 
     1605(6)) is amended by striking ``semiannual period'' and 
     inserting ``quarterly period''.
       (4) Estimates.--Section 15 of the Act (2 U.S.C. 1610) is 
     amended--
       (A) in subsection (a)(1), by striking ``semiannual period'' 
     and inserting ``quarterly period''; and

[[Page 106]]

       (B) in subsection (b)(1), by striking ``semiannual period'' 
     and inserting ``quarterly period''.
       (5) Dollar amounts.--
       (A) Registration.--Section 4 of the Act (2 U.S.C. 1603) is 
     amended--
       (i) in subsection (a)(3)(A)(i), by striking ``$5,000'' and 
     inserting ``$2,500'';
       (ii) in subsection (a)(3)(A)(ii), by striking ``$20,000'' 
     and inserting ``$10,000'';
       (iii) in subsection (b)(3)(A), by striking ``$10,000'' and 
     inserting ``$5,000''; and
       (iv) in subsection (b)(4), by striking ``$10,000'' and 
     inserting ``$5,000''.
       (B) Reports.--Section 5 of the Act (2 U.S.C. 1604) is 
     amended--
       (i) in subsection (c)(1), by striking ``$10,000'' and 
     ``$20,000'' and inserting ``$5,000'' and ``$10,000'', 
     respectively; and
       (ii) in subsection (c)(2), by striking ``$10,000'' both 
     places such term appears and inserting ``$5,000''.

     SEC. 212. ANNUAL REPORT ON CONTRIBUTIONS.

       Section 5 of the Act (2 U.S.C. 1604) is amended by adding 
     at the end the following:
       ``(d) Annual Report on Contributions.--Not later than 45 
     days after the end of the quarterly period beginning on the 
     first day of October of each year referred to in subsection 
     (a), a lobbyist registered under section 4(a)(1), or an 
     employee who is a lobbyist of an organization registered 
     under section 4(a)(2), shall file a report with the Secretary 
     of the Senate and the Clerk of the House of Representatives 
     containing--
       ``(1) the name of the lobbyist;
       ``(2) the employer of the lobbyist;
       ``(3) the name of each Federal candidate or officeholder, 
     leadership PAC, or political party committee, to whom a 
     contribution equal to or exceeding $200 was made within the 
     past year, and the date and amount of such contribution; and
       ``(4) the name of each Federal candidate or officeholder, 
     leadership PAC, or political party committee for whom a 
     fundraising event was hosted, co-hosted, or otherwise 
     sponsored, within the past year, and the date and location of 
     the event.''.

     SEC. 213. PUBLIC DATABASE OF LOBBYING DISCLOSURE INFORMATION.

       (a) Database Required.--Section 6 of the Act (2 U.S.C. 
     1605) is amended--
       (1) in paragraph (7), by striking ``and'' at the end;
       (2) in paragraph (8), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(9) maintain, and make available to the public over the 
     Internet, without a fee or other access charge, in a 
     searchable, sortable, and downloadable manner, an electronic 
     database that--
       ``(A) includes the information contained in registrations 
     and reports filed under this Act;
       ``(B) directly links the information it contains to the 
     information disclosed in reports filed with the Federal 
     Election Commission under section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434); and
       ``(C) is searchable and sortable, at a minimum, by each of 
     the categories of information described in section 4(b) or 
     5(b).''.
       (b) Availability of Reports.--Section 6(a)(4) of the Act is 
     amended by inserting before the semicolon the following: 
     ``and, in the case of a report filed in electronic form under 
     section 5(e), shall make such report available for public 
     inspection over the Internet not more than 48 hours after the 
     report is filed''.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     paragraph (9) of section 6(a) of the Act, as added by 
     subsection (a).

     SEC. 214. DISCLOSURE BY REGISTERED LOBBYISTS OF ALL PAST 
                   EXECUTIVE AND CONGRESSIONAL EMPLOYMENT.

       Section 4(b)(6) of the Act (2 U.S.C. 1603) is amended by 
     striking ``or a covered legislative branch official'' and all 
     that follows through ``as a lobbyist on behalf of the 
     client,'' and inserting ``or a covered legislative branch 
     official,''.

     SEC. 215. DISCLOSURE OF LOBBYIST TRAVEL AND PAYMENTS.

       Section 5(b) of the Act (2 U.S.C. 1604(b)) is amended--
       (1) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (4), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(5) the name of each covered legislative branch official 
     or covered executive branch official for whom the registrant 
     provided, or directed or arranged to be provided, or the 
     employee listed as a lobbyist directed or arranged to be 
     provided, any payment or reimbursements for travel and 
     related expenses in connection with the duties of such 
     covered official, including for each such official--
       ``(A) an itemization of the payments or reimbursements 
     provided to finance the travel and related expenses and to 
     whom the payments or reimbursements were made, including any 
     payment or reimbursement made with the express or implied 
     understanding or agreement that such funds will be used for 
     travel and related expenses;
       ``(B) the purpose and final itinerary of the trip, 
     including a description of all meetings, tours, events, and 
     outings attended;
       ``(C) the names of any registrant or individual employed by 
     the registrant who traveled on any such trip;
       ``(D) the identity of the listed sponsor or sponsors of 
     travel; and
       ``(E) the identity of any person or entity, other than the 
     listed sponsor or sponsors of the travel, which directly or 
     indirectly provided for payment of travel and related 
     expenses at the request or suggestion of the registrant or 
     the employee;
       ``(6) the date, recipient, and amount of funds contributed 
     or disbursed by, or arranged by, a registrant or employee 
     listed as a lobbyist--
       ``(A) to pay the costs of an event to honor or recognize a 
     covered legislative branch official or covered executive 
     branch official;
       ``(B) to, or on behalf of, an entity that is named for a 
     covered legislative branch official or covered executive 
     branch official, or to a person or entity in recognition of 
     such official;
       ``(C) to an entity established, financed, maintained, or 
     controlled by a covered legislative branch official or 
     covered executive branch official, or an entity designated by 
     such official; or
       ``(D) to pay the costs of a meeting, retreat, conference or 
     other similar event held by, or for the benefit of, 1 or more 
     covered legislative branch officials or covered executive 
     branch officials;

     except that this paragraph shall not apply to any payment or 
     reimbursement made from funds required to be reported under 
     section 304 of the Federal Election Campaign Act of 1971 (2 
     U.S.C. 434); and
       ``(7) the date, recipient, and amount of any gift (that 
     under the rules of the House of Representatives or Senate 
     counts towards the one hundred dollar cumulative annual limit 
     described in such rules) valued in excess of $20 given by a 
     registrant or employee listed as a lobbyist to a covered 
     legislative branch official or covered executive branch 
     official;
       ``(8) for each client, immediately after listing the 
     client, an identification of whether the client is a public 
     entity, including a State or local government or a 
     department, agency, special purpose district, or other 
     instrumentality controlled by a State or local government, or 
     a private entity.

     For purposes of paragraph (7), the term `gift' means a 
     gratuity, favor, discount, entertainment, hospitality, loan, 
     forbearance, or other item having monetary value. The term 
     includes gifts of services, training, transportation, 
     lodging, and meals, whether provided in kind, by purchase of 
     a ticket, payment in advance, or reimbursement after the 
     expense has been incurred. Information required by paragraph 
     (5) shall be disclosed as provided in this Act not later than 
     30 days after the travel.''.

     SEC. 216. INCREASED PENALTY FOR FAILURE TO COMPLY WITH 
                   LOBBYING DISCLOSURE REQUIREMENTS.

       Section 7 of the Act (2 U.S.C. 1606) is amended by striking 
     ``$50,000'' and inserting ``$100,000''.

     SEC. 217. DISCLOSURE OF LOBBYING ACTIVITIES BY CERTAIN 
                   COALITIONS AND ASSOCIATIONS.

       (a) In General.--Section 4(b)(3)(B) of the Act (2 U.S.C. 
     1603(b)(3)(B)) is amended to read as follows:
       ``(B) participates in a substantial way in the planning, 
     supervision or control of such lobbying activities;''.
       (b) No Donor or Membership List Disclosure.--Section 4(b) 
     of the Act (2 U.S.C. 1603(b)) is amended by adding at the end 
     the following:
       ``No disclosure is required under paragraph (3)(B) if it is 
     publicly available knowledge that the organization that would 
     be identified is affiliated with the client or has been 
     publicly disclosed to have provided funding to the client, 
     unless the organization in whole or in major part plans, 
     supervises or controls such lobbying activities. Nothing in 
     paragraph (3)(B) shall be construed to require the disclosure 
     of any information about individuals who are members of, or 
     donors to, an entity treated as a client by this Act or an 
     organization identified under that paragraph.''.

     SEC. 218. DISCLOSURE OF ENFORCEMENT FOR NONCOMPLIANCE.

       Section 6 of the Act (2 U.S.C. 1605) is amended--
       (1) by inserting ``(a)'' before ``The Secretary of the 
     Senate'';
       (2) in paragraph (8), by striking ``and'' at the end;
       (3) in paragraph (9), by striking the period and inserting 
     ``; and'';
       (4) after paragraph (9), by inserting the following:
       ``(10) provide to the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform of the House of Representatives the 
     aggregate number of lobbyists and lobbying firms, separately 
     accounted, referred to the United States Attorney for the 
     District of Columbia for noncompliance as required by 
     paragraph (8) on a semi-annual basis''; and
       (5) by inserting at the end the following:
       ``(b) Enforcement Report.--The United States Attorney for 
     the District of Columbia shall report to the Committee on 
     Homeland Security and Governmental Affairs and the Committee 
     on the Judiciary of the Senate

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     and the Committee on Government Reform and the Committee on 
     the Judiciary of the House of Representatives on a semi-
     annual basis the aggregate number of enforcement actions 
     taken by the Attorney's office under this Act and the amount 
     of fines, if any, by case, except that such report shall not 
     include the names of individuals or personally identifiable 
     information.''.

     SEC. 219. ELECTRONIC FILING OF LOBBYING DISCLOSURE REPORTS.

       Section 5 of the Act (2 U.S.C. 1604) is amended by adding 
     at the end the following:
       ``(e) Electronic Filing Required.--A report required to be 
     filed under this section shall be filed in electronic form, 
     in addition to any other form. The Secretary of the Senate 
     and the Clerk of the House of Representatives shall use the 
     same electronic software for receipt and recording of filings 
     under this Act.''.

     SEC. 220. DISCLOSURE OF PAID EFFORTS TO STIMULATE GRASSROOTS 
                   LOBBYING.

       (a) Definitions.--Section 3 of the Act (2 U.S.C. 1602) is 
     amended--
       (1) in paragraph (7), by adding at the end of the 
     following: ``Lobbying activities include paid efforts to 
     stimulate grassroots lobbying, but do not include grassroots 
     lobbying.''; and
       (2) by adding at the end of the following:
       ``(17) Grassroots lobbying.--The term `grassroots lobbying' 
     means the voluntary efforts of members of the general public 
     to communicate their own views on an issue to Federal 
     officials or to encourage other members of the general public 
     to do the same.
       ``(18) Paid efforts to stimulate grassroots lobbying.--
       ``(A) In general.--The term `paid efforts to stimulate 
     grassroots lobbying' means any paid attempt in support of 
     lobbying contacts on behalf of a client to influence the 
     general public or segments thereof to contact one or more 
     covered legislative or executive branch officials (or 
     Congress as a whole) to urge such officials (or Congress) to 
     take specific action with respect to a matter described in 
     section 3(8)(A), except that such term does not include any 
     communications by an entity directed to its members, 
     employees, officers, or shareholders.
       ``(B) Paid attempt to influence the general public or 
     segments thereof.--The term `paid attempt to influence the 
     general public or segments thereof' does not include an 
     attempt to influence directed at less than 500 members of the 
     general public.
       ``(C) Registrant.--For purposes of this paragraph, a person 
     or entity is a member of a registrant if the person or 
     entity--
       ``(i) pays dues or makes a contribution of more than a 
     nominal amount to the entity;
       ``(ii) makes a contribution of more than a nominal amount 
     of time to the entity;
       ``(iii) is entitled to participate in the governance of the 
     entity;
       ``(iv) is 1 of a limited number of honorary or life members 
     of the entity; or
       ``(v) is an employee, officer, director or member of the 
     entity.
       ``(19) Grassroots lobbying firm.--The term `grassroots 
     lobbying firm' means a person or entity that--
       ``(A) is retained by 1 or more clients to engage in paid 
     efforts to stimulate grassroots lobbying on behalf of such 
     clients; and
       ``(B) receives income of, or spends or agrees to spend, an 
     aggregate of $25,000 or more for such efforts in any 
     quarterly period.''.
       (b) Registration.--Section 4(a) of the Act (2 U.S.C. 
     1603(a)) is amended--
       (1) in the flush matter at the end of paragraph (3)(A), by 
     adding at the end the following: ``For purposes of clauses 
     (i) and (ii), the term `lobbying activities' shall not 
     include paid efforts to stimulate grassroots lobbying.''; and
       (2) by inserting after paragraph (3) the following:
       ``(4) Filing by grassroots lobbying firms.--Not later than 
     45 days after a grassroots lobbying firm first is retained by 
     a client to engage in paid efforts to stimulate grassroots 
     lobbying, such grassroots lobbying firm shall register with 
     the Secretary of the Senate and the Clerk of the House of 
     Representatives.''.
       (c) Separate Itemization of Paid Efforts to Stimulate 
     Grassroots Lobbying.--Section 5(b) of the Act (2 U.S.C. 
     1604(b)) is amended--
       (1) in paragraph (3), by--
       (A) inserting after ``total amount of all income'' the 
     following: ``(including a separate good faith estimate of the 
     total amount of income relating specifically to paid efforts 
     to stimulate grassroots lobbying and, within that amount, a 
     good faith estimate of the total amount specifically relating 
     to paid advertising)''; and
       (B) inserting ``or a grassroots lobbying firm'' after 
     ``lobbying firm'';
       (2) in paragraph (4), by inserting after ``total expenses'' 
     the following: ``(including a good faith estimate of the 
     total amount of expenses relating specifically to paid 
     efforts to stimulate grassroots lobbying and, within that 
     total amount, a good faith estimate of the total amount 
     specifically relating to paid advertising)''; and
       (3) by adding at the end the following:
       ``Subparagraphs (B) and (C) of paragraph (2) shall not 
     apply with respect to reports relating to paid efforts to 
     stimulate grassroots lobbying activities.''.
       (d) Good Faith Estimates and De Minimis Rules for Paid 
     Efforts to Stimulate Grassroots Lobbying.--
       (1) In general.--Section 5(c) of the Act (2 U.S.C. 1604(c)) 
     is amended to read as follows:
       ``(c) Estimates of Income or Expenses.--For purposes of 
     this section, the following shall apply:
       ``(1) Estimates of income or expenses shall be made as 
     follows:
       ``(A) Estimates of amounts in excess of $10,0000 shall be 
     rounded to the nearest $20,000.
       ``(B) In the event income or expenses do not exceed 
     $10,000, the registrant shall include a statement that income 
     or expenses totaled less than $10,000 for the reporting 
     period.
       ``(2) Estimates of income or expenses relating specifically 
     to paid efforts to stimulate grassroots lobbying shall be 
     made as follows:
       ``(A) Estimates of amounts in excess of $25,000 shall be 
     rounded to the nearest $20,000.
       ``(B) In the event income or expenses do not exceed 
     $25,000, the registrant shall include a statement that income 
     or expenses totaled less than $25,000 for the reporting 
     period.''.
       (2) Tax reporting.--Section 15 of the Act (2 U.S.C. 1610) 
     is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (ii) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (iii) by adding at the end the following:
       ``(3) in lieu of using the definition of paid efforts to 
     stimulate grassroots lobbying in section 3(18), consider as 
     paid efforts to stimulate grassroots lobbying only those 
     activities that are grassroots expenditures as defined in 
     section 4911(c)(3) of the Internal Revenue Code of 1986.''; 
     and
       (B) in subsection (b)--
       (i) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (ii) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (iii) by adding at the end the following:
       ``(3) in lieu of using the definition of paid efforts to 
     stimulate grassroots lobbying in section 3(18), consider as 
     paid efforts to stimulate grassroots lobbying only those 
     activities that are grassroots expenditures as defined in 
     section 4911(c)(3) of the Internal Revenue Code of 1986.''.

     SEC. 221. ELECTRONIC FILING AND PUBLIC DATABASE FOR LOBBYISTS 
                   FOR FOREIGN GOVERNMENTS.

       (a) Electronic Filing.--Section 2 of the Foreign Agents 
     Registration Act (22 U.S.C. 612) is amended by adding at the 
     end the following new subsection:
       ``(g) Electronic Filing of Registration Statements and 
     Updates.--A registration statement or update required to be 
     filed under this section shall be filed in electronic form, 
     in addition to any other form that may be required by the 
     Attorney General.''.
       (b) Public Database.--Section 6 of the Foreign Agents 
     Registration Act (22 U.S.C. 616) is amended by adding at the 
     end the following new subsection:
       ``(d) Public Database of Registration Statements and 
     Updates.--
       ``(1) In general.--The Attorney General shall maintain, and 
     make available to the public over the Internet, without a fee 
     or other access charge, in a searchable, sortable, and 
     downloadable manner, an electronic database that--
       ``(A) includes the information contained in registration 
     statements and updates filed under this Act;
       ``(B) directly links the information it contains to the 
     information disclosed in reports filed with the Federal 
     Election Commission under section 304 of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 434); and
       ``(C) is searchable and sortable, at a minimum, by each of 
     the categories of information described in section 2(a).
       ``(2) Accountability.--Each registration statement and 
     update filed in electronic form pursuant to section 2(g) 
     shall be made available for public inspection over the 
     internet not more than 48 hours after the registration 
     statement or update is filed.''.

     SEC. 222. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle 
     shall take effect January 1, 2008.

              Subtitle B--Oversight of Ethics and Lobbying

     SEC. 231. COMPTROLLER GENERAL AUDIT AND ANNUAL REPORT.

       (a) Audit Required.--The Comptroller General shall audit on 
     an annual basis lobbying registration and reports filed under 
     the Lobbying Disclosure Act of 1995 to determine the extent 
     of compliance or noncompliance with the requirements of that 
     Act by lobbyists and their clients.
       (b) Annual Reports.--Not later than April 1 of each year, 
     the Comptroller General shall submit to Congress a report on 
     the review required by subsection (a). The report shall 
     include the Comptroller General's assessment of the matters 
     required to be emphasized by that subsection and any 
     recommendations of the Comptroller General to--
       (1) improve the compliance by lobbyists with the 
     requirements of that Act; and
       (2) provide the Secretary of the Senate and the Clerk of 
     the House of Representatives with the resources and 
     authorities needed for

[[Page 108]]

     effective oversight and enforcement of that Act.

     SEC. 232. MANDATORY SENATE ETHICS TRAINING FOR MEMBERS AND 
                   STAFF.

       (a) Training Program.--The Select Committee on Ethics shall 
     conduct ongoing ethics training and awareness programs for 
     Members of the Senate and Senate staff.
       (b) Requirements.--The ethics training program conducted by 
     the Select Committee on Ethics shall be completed by--
       (1) new Senators or staff not later than 60 days after 
     commencing service or employment; and
       (2) Senators and Senate staff serving or employed on the 
     date of enactment of this Act not later than 120 days after 
     the date of enactment of this Act.

     SEC. 233. SENSE OF THE SENATE REGARDING SELF-REGULATION 
                   WITHIN THE LOBBYING COMMUNITY.

       It is the sense of the Senate that the lobbying community 
     should develop proposals for multiple self-regulatory 
     organizations which could provide--
       (1) for the creation of standards for the organizations 
     appropriate to the type of lobbying and individuals to be 
     served;
       (2) training for the lobbying community on law, ethics, 
     reporting requirements, and disclosure requirements;
       (3) for the development of educational materials for the 
     public on how to responsibly hire a lobbyist or lobby firm;
       (4) standards regarding reasonable fees to clients;
       (5) for the creation of a third-party certification program 
     that includes ethics training; and
       (6) for disclosure of requirements to clients regarding fee 
     schedules and conflict of interest rules.

     SEC. 234. ANNUAL ETHICS COMMITTEES REPORTS.

       The Committee on Standards of Official Conduct of the House 
     of Representatives and the Select Committee on Ethics of the 
     Senate shall each issue an annual report due no later than 
     January 31, describing the following:
       (1) The number of alleged violations of Senate or House 
     rules including the number received from third parties, from 
     Members or staff within each House, or inquires raised by a 
     Member or staff of the respective House or Senate committee.
       (2) A list of the number of alleged violations that were 
     dismissed--
       (A) for lack of subject matter jurisdiction; or
       (B) because they failed to provide sufficient facts as to 
     any material violation of the House or Senate rules beyond 
     mere allegation or assertion.
       (3) The number of complaints in which the committee staff 
     conducted a preliminary inquiry.
       (4) The number of complaints that staff presented to the 
     committee with recommendations that the complaint be 
     dismissed.
       (5) The number of complaints that the staff presented to 
     the committee with recommendation that the investigation 
     proceed.
       (6) The number of ongoing inquiries.
       (7) The number of complaints that the committee dismissed 
     for lack of substantial merit.
       (8) The number of private letters of admonition or public 
     letters of admonition issued.
       (9) The number of matters resulting in a disciplinary 
     sanction.

                 Subtitle C--Slowing the Revolving Door

     SEC. 241. AMENDMENTS TO RESTRICTIONS ON FORMER OFFICERS, 
                   EMPLOYEES, AND ELECTED OFFICIALS OF THE 
                   EXECUTIVE AND LEGISLATIVE BRANCHES.

       (a) Very Senior Executive Personnel.--The matter after 
     subparagraph (C) in section 207(d)(1) of title 18, United 
     States Code, is amended by striking ``within 1 year'' and 
     inserting ``within 2 years''.
       (b) Restrictions on Lobbying by Members of Congress and 
     Employees of Congress.--Subsection (e) of section 207 of 
     title 18, United States Code, is amended--
       (1) in paragraph (1)(A), by striking ``within 1 year'' and 
     inserting ``within 2 years'';
       (2) by striking paragraphs (2) through (5) and inserting 
     the following:
       ``(2) Congressional staff.--
       ``(A) Prohibition.--Any person who is an employee of a 
     House of Congress and who, within 1 year after that person 
     leaves office, knowingly makes, with the intent to influence, 
     any communication to or appearance before any of the persons 
     described in subparagraph (B), on behalf of any other person 
     (except the United States) in connection with any matter on 
     which such former employee seeks action by a Member, officer, 
     or employee of either House of Congress, in his or her 
     official capacity, shall be punished as provided in section 
     216 of this title.
       ``(B) Contact persons covered.--persons referred to in 
     subparagraph (A) with respect to appearances or 
     communications are any Member, officer, or employee of the 
     House of Congress in which the person subject to subparagraph 
     (A) was employed. This subparagraph shall not apply to 
     contacts with staff of the Secretary of the Senate or the 
     Clerk of the House of Representatives regarding compliance 
     with lobbying disclosure requirements under the Lobbying 
     Disclosure Act of 1995.'';
       (3) in paragraph (6)--
       (A) by striking ``paragraphs (2), (3), and (4)'' and 
     inserting ``paragraph (2)'';
       (B) by striking ``(A)'';
       (C) by striking subparagraph (B); and
       (D) by redesignating the paragraph as paragraph (3); and
       (4) by redesignating paragraph (7) as paragraph (4).
       (c) Effective Date.--The amendments made by subsection (b) 
     shall take effect 60 days after the date of enactment of this 
     Act.

    Subtitle D--Ban on Provision of Gifts or Travel by Lobbyists in 
                   Violation of the Rules of Congress

     SEC. 251. PROHIBITION ON PROVISION OF GIFTS OR TRAVEL BY 
                   REGISTERED LOBBYISTS TO MEMBERS OF CONGRESS AND 
                   TO CONGRESSIONAL EMPLOYEES.

       The Lobbying Disclosure Act of 1995 is amended by adding at 
     the end the following:

     ``SEC. 25. PROHIBITION ON PROVISION OF GIFTS OR TRAVEL BY 
                   REGISTERED LOBBYISTS TO MEMBERS OF CONGRESS AND 
                   TO CONGRESSIONAL EMPLOYEES.

       ``(a) Prohibition.--A registered lobbyist may not knowingly 
     make a gift or provide travel to a Member, Delegate, Resident 
     Commissioner, officer, or employee of Congress, unless the 
     gift or travel may be accepted under the rules of the House 
     of Representatives or the Senate.
       ``(b) Penalty.--Any registered lobbyist who violates this 
     section shall be subject to penalties provided in section 
     7.''.

Subtitle E--Commission to Strengthen Confidence in Congress Act of 2007

     SEC. 261. SHORT TITLE.

       This subtitle may be cited as the ``Commission to 
     Strengthen Confidence in Congress Act of 2007''.

     SEC. 262. ESTABLISHMENT OF COMMISSION.

       There is established in the legislative branch a commission 
     to be known as the ``Commission to Strengthen Confidence in 
     Congress'' (in this subtitle referred to as the 
     ``Commission'').

     SEC. 263. PURPOSES.

       The purposes of the Commission are to--
       (1) evaluate and report the effectiveness of current 
     congressional ethics requirements, if penalties are enforced 
     and sufficient, and make recommendations for new penalties;
       (2) weigh the need for improved ethical conduct with the 
     need for lawmakers to have access to expertise on public 
     policy issues;
       (3) determine whether the current system for enforcing 
     ethics rules and standards of conduct is sufficiently 
     effective and transparent;
       (4) determine whether the statutory framework governing 
     lobbying disclosure should be expanded to include additional 
     means of attempting to influence Members of Congress, senior 
     staff, and high-ranking executive branch officials;
       (5) analyze and evaluate the changes made by this Act to 
     determine whether additional changes need to be made to 
     uphold and enforce standards of ethical conduct and 
     disclosure requirements; and
       (6) investigate and report to Congress on its findings, 
     conclusions, and recommendations for reform.

     SEC. 264. COMPOSITION OF COMMISSION.

       (a) Members.--The Commission shall be composed of 10 
     members, of whom--
       (1) the chair and vice chair shall be selected by agreement 
     of the majority leader and minority leader of the House of 
     Representatives and the majority leader and minority leader 
     of the Senate;
       (2) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Republican Party, 1 of which is 
     a former member of the Senate;
       (3) 2 members shall be appointed by the senior member of 
     the Senate leadership of the Democratic Party, 1 of which is 
     a former member of the Senate;
       (4) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Republican Party, 1 of which is a former member of the House 
     of Representatives; and
       (5) 2 members shall be appointed by the senior member of 
     the leadership of the House of Representatives of the 
     Democratic Party, 1 of which is a former member of the House 
     of Representatives.
       (b) Qualifications; Initial Meeting.--
       (1) Political party affiliation.--Five members of the 
     Commission shall be Democrats and 5 Republicans.
       (2) Nongovernmental appointees.--An individual appointed to 
     the Commission may not be an officer or employee of the 
     Federal Government or any State or local government.
       (3) Other qualifications.--It is the sense of Congress that 
     individuals appointed to the Commission should be prominent 
     United States citizens, with national recognition and 
     significant depth of experience in professions such as 
     governmental service, government consulting, government 
     contracting, the law, higher education, historian, business, 
     public relations, and fundraising.

[[Page 109]]

       (4) Deadline for appointment.--All members of the 
     Commission shall be appointed on a date 3 months after the 
     date of enactment of this Act.
       (5) Initial meeting.--The Commission shall meet and begin 
     the operations of the Commission as soon as practicable.
       (c) Quorum; Vacancies.--After its initial meeting, the 
     Commission shall meet upon the call of the chairman or a 
     majority of its members. Six members of the Commission shall 
     constitute a quorum. Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner in 
     which the original appointment was made.

     SEC. 265. FUNCTIONS OF COMMISSION.

       The functions of the Commission are to submit to Congress a 
     report required by this title containing such findings, 
     conclusions, and recommendations as the Commission shall 
     determine, including proposing organization, coordination, 
     planning, management arrangements, procedures, rules and 
     regulations--
       (1) related to section 263; or
       (2) related to any other areas the commission unanimously 
     votes to be relevant to its mandate to recommend reforms to 
     strengthen ethical safeguards in Congress.

     SEC. 266. POWERS OF COMMISSION.

       (a) Hearings and Evidence.--The Commission or, on the 
     authority of the Commission, any subcommittee or member 
     thereof, may, for the purpose of carrying out this title hold 
     such hearings and sit and act at such times and places, take 
     such testimony, receive such evidence, administer such oaths.
       (b) Obtaining Information.--Upon request of the Commission, 
     the head of any agency or instrumentality of the Federal 
     Government shall furnish information deemed necessary by the 
     panel to enable it to carry out its duties.
       (c) Limit on Commission Authority.--The Commission shall 
     not conduct any law enforcement investigation, function as a 
     court of law, or otherwise usurp the duties and 
     responsibilities of the ethics committee of the House of 
     Representatives or the Senate.

     SEC. 267. ADMINISTRATION.

       (a) Compensation.--Except as provided in subsection (b), 
     members of the Commission shall receive no additional pay, 
     allowances, or benefits by reason of their service on the 
     Commission.
       (b) Travel Expenses and Per Diem.--Each member of the 
     Commission shall receive travel expenses and per diem in lieu 
     of subsistence in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (c) Staff and Support Services.--
       (1) Staff director.--
       (A) Appointment.--The Chair (or Co-Chairs) in accordance 
     with the rules agreed upon by the Commission shall appoint a 
     staff director for the Commission.
       (B) Compensation.--The staff director shall be paid at a 
     rate not to exceed the rate established for level V of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.
       (2) Staff.--The Chair (or Co-Chairs) in accordance with the 
     rules agreed upon by the Commission shall appoint such 
     additional personnel as the Commission determines to be 
     necessary.
       (3) Applicability of civil service laws.--The staff 
     director and other members of the staff of the Commission 
     shall be appointed without regard to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive service, and shall be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title relating to classification and General Schedule 
     pay rates.
       (4) Experts and consultants.--With the approval of the 
     Commission, the staff director may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code.
       (d) Physical Facilities.--The Architect of the Capitol, in 
     consultation with the appropriate entities in the legislative 
     branch, shall locate and provide suitable office space for 
     the operation of the Commission on a nonreimbursable basis. 
     The facilities shall serve as the headquarters of the 
     Commission and shall include all necessary equipment and 
     incidentals required for the proper functioning of the 
     Commission.
       (e) Administrative Support Services and Other Assistance.--
       (1) In general.--Upon the request of the Commission, the 
     Architect of the Capitol and the Administrator of General 
     Services shall provide to the Commission on a nonreimbursable 
     basis such administrative support services as the Commission 
     may request.
       (2) Additional support.--In addition to the assistance set 
     forth in paragraph (1), departments and agencies of the 
     United States may provide the Commission such services, 
     funds, facilities, staff, and other support services as the 
     Commission may deem advisable and as may be authorized by 
     law.
       (f) Use of Mails.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     Federal agencies and shall, for purposes of the frank, be 
     considered a commission of Congress as described in section 
     3215 of title 39, United States Code.
       (g) Printing.--For purposes of costs relating to printing 
     and binding, including the cost of personnel detailed from 
     the Government Printing Office, the Commission shall be 
     deemed to be a committee of the Congress.

     SEC. 268. SECURITY CLEARANCES FOR COMMISSION MEMBERS AND 
                   STAFF.

       The appropriate Federal agencies or departments shall 
     cooperate with the Commission in expeditiously providing to 
     the Commission members and staff appropriate security 
     clearances to the extent possible pursuant to existing 
     procedures and requirements, except that no person shall be 
     provided with access to classified information under this 
     title without the appropriate security clearances.

     SEC. 269. COMMISSION REPORTS; TERMINATION.

       (a) Annual Reports.--The Commission shall submit--
       (1) an initial report to Congress not later than July 1, 
     2007; and
       (2) annual reports to Congress after the report required by 
     paragraph (1);

     containing such findings, conclusions, and recommendations 
     for corrective measures as have been agreed to by a majority 
     of Commission members.
       (b) Administrative Activities.--During the 60-day period 
     beginning on the date of submission of each annual report and 
     the final report under this section, the Commission shall--
       (1) be available to provide testimony to committees of 
     Congress concerning such reports; and
       (2) take action to appropriately disseminate such reports.
       (c) Termination of Commission.--
       (1) Final report.--Five years after the date of enactment 
     of this Act, the Commission shall submit to Congress a final 
     report containing information described in subsection (a).
       (2) Termination.--The Commission, and all the authorities 
     of this title, shall terminate 60 days after the date on 
     which the final report is submitted under paragraph (1), and 
     the Commission may use such 60-day period for the purpose of 
     concluding its activities.

     SEC. 270. FUNDING.

       There are authorized such sums as necessary to carry out 
     this title.

  Ms. COLLINS. Mr. President, I rise today to join my colleagues in 
cosponsoring S. 1, a bill to provide greater transparency in the 
legislative process.
  The recent elections sent a clear message to Congress that the 
American people have lost confidence in their government. Without the 
support of the people, we cannot tackle the difficult issues that this 
Congress must face. This bill, then, is a critical part of restoring 
the people's trust by reforming ethics and lobbying rules.
  It is important to remember that the conduct of most Members and 
their staffs is beyond reproach. Likewise, it is important to recognize 
that lobbying--whether done on behalf of the business community, an 
environmental organization, a children's advocacy group, or any other 
cause--can provide us with useful information and analysis that aids, 
but does not dictate, the decision-making process. Unfortunately, in 
the minds of many Americans, ``lobbying'' has come to be associated 
with expensive paid vacations masquerading as fact-finding trips, 
special access to Members and staff that an ordinary citizen could 
never hope to have, and undue influence that leads to decisions made in 
the best interest of the lobbyist and his or her client instead of the 
American people.
  S. 1 which is nearly identical to a bill that was the product of 
bipartisan efforts by the Senate Committee on Homeland Security and 
Governmental Affairs and the Senate Committee on Rules and 
Administration and that was passed by this Senate just last year--
includes a number of important provisions that will help to restore the 
public image of the United States Congress.
  S. 1 bans gifts from lobbyists. This is clear, brightline rule that 
diminishes the appearance of impropriety that gifts can create.
  S. 1 requires greater disclosure of the sponsors of and the purposes 
for earmarks included in a bill so that the people can know where tax 
dollars are being spent and why.
  S. 1 eliminates floor privileges for former Members who are seeking 
to lobby other members. They will enjoy no more access to Senators and 
Congressmen than any other citizen.
  S. 1 will eliminate the practice of anonymous holds in the Senate so 
that we can bring debate into the open and not simply kill a bill with 
a secret hold.
  S. 1 will require enhanced disclosure of the activities of groups 
lobbying Congress so that the public can easily

[[Page 110]]

find out which interests are trying to influence the decisions we make.
  S. 1 will slow the revolving door between the Hill and the private 
sector by limiting the ability of departing Members and staff to lobby 
their former colleagues.
  While I am pleased to be a cosponsor of this bill, I also believe 
strongly that it would be improved by the addition of an independent 
Office of Public Integrity within the Legislative Branch. This Office 
would be able to conduct nonpartisan investigations of possible ethics 
violations. These investigations would help to promote public 
confidence in the enforcement of any laws that we pass to enhance 
congressional ethics. During debate on this bill last year, an 
amendment that Senator Lieberman, Senator McCain, and I offered to 
create this Office was defeated. However, I hope my colleagues have 
taken the lessons of the recent elections to heart and that the idea of 
an Office of Public Integrity will be approved this year. To that end, 
I am also cosponsoring Senator McCain's lobbying reform package, which 
he has introduced today and which contains a number of the provisions 
of S. 1 as well as creating an independent Office of Public Integrity.
  I once again commend my colleagues on recognizing the importance of 
this issue by making it our first priority in the 110th Congress. I 
urge the Senate to work quickly to get this legislation finished so 
that we can move on from the task of governing ourselves and get down 
to the business of governing our Nation.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Baucus, Mr. Leahy, Ms. Mikulski, 
        Mr. Schumer, Mrs. Clinton, Ms. Cantwell, Mr. Kohl, Ms. 
        Stabenow, and Mr. Webb):
  S. 3. A bill to amend part D of title XVIII of the Social Security 
Act to provide for fair prescription drug prices for Medicare 
beneficiaries; to the Committee on Finance.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
record, as follows:

                                  S. 3

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

     SECTION 1. SHORT TITLE; SENSE OF THE CONGRESS.

       (a) Short Title.--This Act may be cited as the ``Medicare 
     Prescription Drug Price Negotiation Act of 2007''.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that the Congress should enact, and the President should 
     sign, legislation to amend part D of title XVIII of the 
     Social Security Act to provide for fair prescription drug 
     prices for Medicare beneficiaries.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Lieberman, Ms. Collins, Mr. Leahy, 
        Mr. Schumer, Ms. Cantwell, Mr. Lautenberg, Ms. Stabenow, Mr. 
        Webb, Mr. Menendez, and Ms. Landrieu):
  S. 4. A bill to make the United States more secure by implementing 
unfinished recommendations of the 9/11 Commission to fight the war on 
terror more effectively, to improve homeland security, and for other 
purposes; to the Committee on Homeland Security and Governmental 
Affairs.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                  S. 4

       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 ``Improving America's Security 
     by Implementing Unfinished Recommendations of the 9/11 
     Commission Act of 2007''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that Congress should enact, and 
     the President should sign, legislation to make the United 
     States more secure by implementing unfinished recommendations 
     of the 9/11 Commission to fight the war on terror more 
     effectively and to improve homeland security.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Harkin, Mr. Specter, Mr. Kennedy, 
        Mr. Hatch, Mrs. Feinstein, Mr. Smith, Mr. Durbin, Mr. 
        Lautenberg, Ms. Snowe, Mr. Schumer, Ms. Mikulski, Mrs. Clinton, 
        Ms. Cantwell, Mr. Feingold, Mr. Leahy, Mr. Kohl, Ms. Stabenow, 
        Mr. Webb, Mr. Kerry, Mrs. Lincoln, Mr. Dodd, Mr. Menendez, Mr. 
        Reed, Mr. Akaka, Mrs. Boxer, Mr. Lieberman, Mr. Nelson of 
        Florida, Mr. Levin, Mr. Obama, and Mr. Inouye):
  S. 5. A bill to amend the Public Health Service Act to provide for 
human embryonic stem cell research; read the first time.
  (The bill will be printed in a future edition of the Record.)
                                 ______
                                 
      By Mr. REID (for himself, Mr. Bingaman, Mrs. Boxer, Mr. Schumer, 
        Mr. Lieberman, Mr. Lautenberg, Ms. Cantwell, Mr. Leahy, Ms. 
        Stabenow, Mr. Webb, Mr. Salazar, and Mr. Menendez):
  S. 6. A bill to enhance the security of the United States by reducing 
the dependence of the United States on foreign and unsustainable energy 
sources and the risks of global warming, and for other purposes; to the 
Committee on Finance.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                  S. 6

       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 Energy and 
     Environmental Security Act of 2007''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that Congress should enact, and 
     the President should sign, legislation to enhance the 
     security of the United States by reducing the dependence of 
     the United States on foreign and unsustainable energy sources 
     and the risks of global warming by--
       (1) requiring reductions in emissions of greenhouse gases;
       (2) diversifying and expanding the use of secure, 
     efficient, and environmentally-friendly energy supplies and 
     technologies;
       (3) reducing the burdens on consumers of rising energy 
     prices;
       (4) eliminating tax giveaways to large energy companies; 
     and
       (5) preventing energy price gouging, profiteering, and 
     market manipulation.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Kennedy, Mr. Schumer, Mrs. Clinton, 
        Ms. Mikulski, Mrs. Murray, Mr. Lieberman, Mr. Akaka, Ms. 
        Cantwell, Mr. Bingaman, Mr. Leahy, Mr. Lautenberg, Mr. Levin, 
        Ms. Stabenow, Mr. Webb, Mr. Menendez, Ms. Landrieu, Mr. 
        Sanders, Mr. Reed, and Mr. Dodd):
  S. 7. A bill to amend title IV of the Higher Education Act of 1965 
and other laws and provisions and urge Congress to make college more 
affordable through increased Federal Pell Grants and providing more 
favorable student loans and other benefits, and for other purposes; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                  S. 7

       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 ``College Opportunity Act of 
     2007''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that the Congress should enact, 
     and the President should sign, legislation to amend title IV 
     of the Higher Education Act of 1965 and other laws and 
     provisions to make college more affordable through increased 
     Federal Pell Grants and providing more favorable student 
     loans and other benefits.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Levin, Mr. Schumer, Mr. Lautenberg, 
        Ms. Cantwell, Mr. Leahy, Ms. Stabenow, Mr. Webb, Mr. Menendez, 
        and Ms. Landrieu):
  S. 8. A bill to restore and enhance the capabilities of the Armed 
Forces, to

[[Page 111]]

enhance the readiness of the Armed Forces, to support the men and women 
of the Armed Forces, and for other purposes; to the Committee on Armed 
Services.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                  S. 8

       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 ``Rebuilding America's 
     Military Act of 2007''.

     SEC. 2. SENSE OF CONGRESS ON RESTORATION AND ENHANCEMENT OF 
                   THE ARMED FORCES OF THE UNITED STATES.

       It is the sense of Congress that Congress should enact 
     legislation--
       (1) to restore and enhance the capabilities of the Armed 
     Forces for deterrence, combat, and post-conflict operations;
       (2) to enhance the readiness of the Armed Forces, including 
     by the reset of military equipment; and
       (3) to support the men and women of the Armed Forces, 
     including the members of the National Guard and Reserves, 
     through the provision of quality health care and enhanced 
     educational assistance.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Leahy, Mr. Schumer, Ms. Cantwell, 
        and Ms. Stabenow):
  S. 9. A bill to recognize the heritage of the United States as a 
nation of immigrants and to amend the Immigration and Nationality Act 
to provide for more effective border and employment enforcement, to 
prevent illegal immigration, and to reform and rationalize avenues for 
legal immigration, and for other purposes; to the Committee on the 
Judiciary.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                  S. 9

       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 ``Comprehensive Immigration 
     Reform Act of 2007''.

     SEC. 2. SENSE OF CONGRESS.

       It is the sense of Congress that the Senate and the House 
     of Representatives should pass, and the President should 
     sign, legislation to recognize the heritage of the United 
     States as a nation of immigrants and to amend the Immigration 
     and Nationality Act (8 U.S.C. 1101 et seq.) to provide for 
     more effective border and employment enforcement, to prevent 
     illegal immigration, and to reform and rationalize avenues 
     for legal immigration.
                                 ______
                                 
      By Mr. REID (for himself, Mr. Conrad, Mr. Feingold, Mr. Schumer, 
        Mr. Salazar, Ms. Cantwell, Mr. Leahy, Ms. Stabenow, Mr. 
        Menendez, Mr. Kerry, Mr. Harkin, Ms. Landrieu, Mr. Durbin, and 
        Mr. Obama):
  S. 10 A bill to reinstate the pay-as-you-go requirement and reduce 
budget deficits by strengthening budget enforcement and fiscal 
responsibility; to the Committee on the Budget.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 10

       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 ``Restoring Fiscal Discipline 
     Act of 2007''.

     SEC. 2. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

       (a) Pay-as-You-Go Point of Order in the Senate.--
       (1) In general.--For purposes of Senate enforcement, it 
     shall not be in order in the Senate to consider any direct 
     spending or revenue legislation that would increase the on-
     budget deficit or cause an on-budget deficit for any one of 
     the 4 applicable time periods as measured in paragraphs (5) 
     and (6).
       (2) Applicable time periods.--For purposes of this 
     subsection, the term ``applicable time periods'' means any 1 
     of the 4 following periods:
       (A) The current year.
       (B) The budget year.
       (C) The period of the 5 fiscal years following the current 
     year.
       (D) The period of the 5 fiscal years following the 5 fiscal 
     years referred to in subparagraph (C).
       (3) Direct-spending legislation.--For purposes of this 
     subsection and except as provided in paragraph (4), the term 
     ``direct-spending legislation'' means any bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending as that term is defined by, and 
     interpreted for purposes of, the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (4) Exclusion.--For purposes of this subsection, the terms 
     ``direct-spending legislation'' and ``revenue legislation'' 
     do not include--
       (A) any concurrent resolution on the budget; or
       (B) any provision of legislation that affects the full 
     funding of, and continuation of, the deposit insurance 
     guarantee commitment in effect on the date of enactment of 
     the Budget Enforcement Act of 1990.
       (5) Baseline.--Estimates prepared pursuant to this section 
     shall--
       (A) use the baseline surplus or deficit used for the most 
     recently adopted concurrent resolution on the budget; and
       (B) be calculated under the requirements of subsections (b) 
     through (d) of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 for fiscal years beyond 
     those covered by that concurrent resolution on the budget.
       (6) Prior surplus.--If direct spending or revenue 
     legislation increases the on-budget deficit or causes an on-
     budget deficit when taken individually, it must also increase 
     the on-budget deficit or cause an on-budget deficit when 
     taken together with all direct spending and revenue 
     legislation enacted since the beginning of the calendar year 
     not accounted for in the baseline under paragraph (5)(A), 
     except that direct spending or revenue effects resulting in 
     net deficit reduction enacted pursuant to reconciliation 
     instructions since the beginning of that same calendar year 
     shall not be available.
       (b) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (c) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this section.
       (d) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget authority, outlays, and 
     revenues for a fiscal year shall be determined on the basis 
     of estimates made by the Committee on the Budget of the 
     Senate.
       (e) Sunset.--This section shall expire on September 30, 
     2012.

     SEC. 3. RECONCILIATION FOR DEFICIT REDUCTION OR INCREASING 
                   THE SURPLUS IN THE SENATE.

       (a) In General.--It shall not be in order in the Senate to 
     consider under the expedited procedures applicable to 
     reconciliation in sections 305 and 310 of the Congressional 
     Budget Act of 1974 any bill, resolution, amendment, amendment 
     between Houses, motion, or conference report that increases 
     the deficit or reduces the surplus in the first fiscal year 
     covered by the most recently adopted concurrent resolution on 
     the budget, the period of the first 5 fiscal years covered by 
     the most recently adopted concurrent resolution on the 
     budget, or the period of the 5 fiscal years following the 
     first 5 fiscal years covered by the most recently adopted 
     concurrent resolution on the budget.
       (b) Budget Resolution.--It shall not be in order in the 
     Senate to consider pursuant to sections 301, 305, or 310 of 
     the Congressional Budget Act of 1974 pertaining to concurrent 
     resolutions on the budget any resolution, concurrent 
     resolution, amendment, amendment between the Houses, motion, 
     or conference report that contains any reconciliation 
     directive that would increase the deficit or reduce the 
     surplus in the first fiscal year covered by the most recently 
     adopted concurrent resolution on the budget, the period of 
     the first 5 fiscal years covered by the most recently adopted 
     concurrent resolution on the budget, or the period of the 5 
     fiscal years following the first 5 fiscal years covered by 
     the most recently adopted concurrent resolution on the 
     budget.
       (c) Supermajority Waiver and Appeal.--This section may be 
     waived or suspended in the Senate only by an affirmative vote 
     of \3/5\ of the Members, duly chosen and sworn. An 
     affirmative vote of \3/5\ of the Members of the Senate, duly 
     chosen and sworn, shall be required in the Senate to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
                                 ______
                                 
      By Mr. REID (for himself, Mrs. Clinton, Mrs. Murray, Mrs. Boxer, 
        Mr. Akaka, Mr. Kerry, Mr. Leahy, Mr. Obama, Mr. Schumer, Mr. 
        Lautenberg, Mr. Kennedy, Mr. Harkin, Mr. Menendez, and Mr. 
        Inouye):
  S. 21. A bill to expand access to preventive health care services 
that help

[[Page 112]]

reduce unintended pregnancy, reduce abortions, and improve access to 
women's health care; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
record, as follows:

                                 S. 21

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Prevention 
     First Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

             TITLE I--TITLE X OF PUBLIC HEALTH SERVICE ACT

Sec. 101. Short title.
Sec. 102. Authorization of appropriations.

 TITLE II--EQUITY IN PRESCRIPTION INSURANCE AND CONTRACEPTIVE COVERAGE

Sec. 201. Short title.
Sec. 202. Amendments to Employee Retirement Income Security Act of 
              1974.
Sec. 203. Amendments to Public Health Service Act relating to the group 
              market.
Sec. 204. Amendment to Public Health Service Act relating to the 
              individual market.

      TITLE III--EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION

Sec. 301. Short title.
Sec. 302. Emergency contraception education and information programs.

        TITLE IV--COMPASSIONATE ASSISTANCE FOR RAPE EMERGENCIES

Sec. 401. Short title.
Sec. 402. Survivors of sexual assault; provision by hospitals of 
              emergency contraceptives without charge.

       TITLE V--AT-RISK COMMUNITIES TEEN PREGNANCY PREVENTION ACT

Sec. 501. Short title.
Sec. 502. Teen pregnancy prevention.
Sec. 503. School-based projects.
Sec. 504. Multimedia campaigns.
Sec. 505. National clearinghouse.
Sec. 506. Research.
Sec. 507. General requirements.
Sec. 508. Definitions.

            TITLE VI--ACCURACY OF CONTRACEPTIVE INFORMATION

Sec. 601. Short title.
Sec. 602. Accuracy of contraceptive information.

             TITLE VII--UNINTENDED PREGNANCY REDUCTION ACT

Sec. 701. Short title.
Sec. 702. Medicaid; clarification of coverage of family planning 
              services and supplies.
Sec. 703. Expansion of family planning services.
Sec. 704. Effective date.

            TITLE VIII--RESPONSIBLE EDUCATION ABOUT LIFE ACT

Sec. 801. Short title.
Sec. 802. Assistance to reduce teen pregnancy, HIV/AIDS, and other 
              sexually transmitted diseases and to support healthy 
              adolescent development.
Sec. 803. Sense of Congress.
Sec. 804. Evaluation of programs.
Sec. 805. Definitions.
Sec. 806. Appropriations.

     SEC. 2. FINDINGS.

       The Congress finds as follows:
       (1) Healthy People 2010 sets forth a reduction of 
     unintended pregnancies as an important health objective for 
     the Nation to achieve over the first decade of the new 
     century, a goal first articulated in the 1979 Surgeon 
     General's Report, Healthy People, and reiterated in Healthy 
     People 2000: National Health Promotion and Disease Prevention 
     Objectives.
       (2) Although the Centers for Disease Control and Prevention 
     (referred to in this section as the ``CDC'') included family 
     planning in its published list of the Ten Great Public Health 
     Achievements in the 20th Century, the United States still has 
     one of the highest rates of unintended pregnancies among 
     industrialized nations.
       (3) Each year, 3,000,000 pregnancies, nearly half of all 
     pregnancies, in the United States are unintended, and nearly 
     half of unintended pregnancies end in abortion.
       (4) In 2004, 34,400,000 women, half of all women of 
     reproductive age, were in need of contraceptive services and 
     supplies to help prevent unintended pregnancy, and nearly 
     half of those were in need of public support for such care.
       (5) The United States has the highest rate of infection 
     with sexually transmitted diseases of any industrialized 
     country. In 2005, there were approximately 19,000,000 new 
     cases of sexually transmitted diseases, almost half of them 
     occurring in young people ages 15 to 24. According to the 
     CDC, these sexually transmitted diseases impose a tremendous 
     economic burden with direct medical costs as high as 
     $14,100,000,000 per year.
       (6) Increasing access to family planning services will 
     improve women's health and reduce the rates of unintended 
     pregnancy, abortion, and infection with sexually transmitted 
     diseases. Contraceptive use saves public health dollars. For 
     every dollar spent to increase funding for family planning 
     programs under title X of the Public Health Service Act, 
     $3.80 is saved.
       (7) Contraception is basic health care that improves the 
     health of women and children by enabling women to plan and 
     space births.
       (8) Women experiencing unintended pregnancy are at greater 
     risk for physical abuse and women having closely spaced 
     births are at greater risk of maternal death.
       (9) A child born from an unintended pregnancy is at greater 
     risk than a child born from an intended pregnancy of low 
     birth weight, dying in the first year of life, being abused, 
     and not receiving sufficient resources for healthy 
     development.
       (10) The ability to control fertility allows couples to 
     achieve economic stability by facilitating greater 
     educational achievement and participation in the workforce.
       (11) Without contraception, a sexually active woman has an 
     85 percent chance of becoming pregnant within a year.
       (12) The percentage of sexually active women ages 15 
     through 44 who were not using contraception increased from 
     5.4 percent to 7.4 percent in 2002, an increase of 37 
     percent, according to the CDC. This represents an apparent 
     increase of 1,430,000 women and could raise the rate of 
     unintended pregnancy.
       (13) Many poor and low-income women cannot afford to 
     purchase contraceptive services and supplies on their own. In 
     2003, 20.5 percent of all women ages 15 through 44 were 
     uninsured.
       (14) Public health programs, such as the Medicaid program 
     and family planning programs under title X of the Public 
     Health Service Act, provide high-quality family planning 
     services and other preventive health care to underinsured or 
     uninsured individuals who may otherwise lack access to health 
     care.
       (15) The Medicaid program is the single largest source of 
     public funding for family planning services and HIV/AIDS care 
     in the United States. Half of all public dollars spent on 
     contraceptive services and supplies in the United States are 
     provided through the Medicaid program and more than 6,000,000 
     low-income women of reproductive age rely on such program for 
     their basic health care needs.
       (16) Each year, family planning services provided under 
     title X of the Public Health Service Act enable people in the 
     United States to prevent approximately 1,000,000 unintended 
     pregnancies, and one in three women of reproductive age who 
     obtains testing or treatment for sexually transmitted 
     diseases does so at a clinic receiving funds under such 
     title. In 2005, such clinics provided 2.5 million Pap smears, 
     over 5.3 million sexually transmitted disease tests, and over 
     6.2 million HIV tests.
       (17) The combination of an increasing number of uninsured 
     individuals, stagnant funding for family planning, health 
     care inflation, new and expensive contraceptive technologies, 
     increasing costs of contraceptives, and improved but 
     expensive screening and treatment for cervical cancer and 
     sexually transmitted diseases, has diminished the ability of 
     clinics receiving funds under title X of the Public Health 
     Service Act to adequately serve all individuals in need of 
     services of such clinics. Taking inflation into account, 
     funding for the family planning programs under such title 
     declined by 59 percent between 1980 and 2005.
       (18) While the Medicaid program remains the largest source 
     of subsidized family planning services, States are facing 
     significant budgetary pressures to cut their Medicaid 
     programs, putting many women at risk of losing coverage for 
     family planning services.
       (19) In addition, eligibility under the Medicaid program in 
     many States is severely restricted, which leaves family 
     planning services financially out of reach for many poor 
     women. Many States have demonstrated tremendous success with 
     Medicaid family planning waivers that allow States to expand 
     access to Medicaid family planning services. However, the 
     administrative burden of applying for a waiver poses a 
     significant barrier to States that would like to expand their 
     coverage of family planning programs through Medicaid.
       (20) As of December of 2006, 24 States offered expanded 
     family planning benefits as a result of Medicaid family 
     planning waivers. The cost-effectiveness of these waivers was 
     affirmed by a recent evaluation funded by the Centers for 
     Medicare & Medicaid Services. This evaluation of six waivers 
     found that all family planning programs under such waivers 
     resulted in significant savings to both the Federal and State 
     governments. Moreover, the researchers found measurable 
     reductions in unintended pregnancy.
       (21) Although employer-sponsored health plans have improved 
     coverage of contraceptive services and supplies, largely in 
     response to State contraceptive coverage laws,

[[Page 113]]

     there is still significant room for improvement. The ongoing 
     lack of coverage in health insurance plans, particularly in 
     self-insured and individual plans, continues to place 
     effective forms of contraception beyond the financial reach 
     of many women.
       (22) Including contraceptive coverage in private health 
     care plans saves employers money. Not covering contraceptives 
     in employee health plans costs employers 15 to 17 percent 
     more than providing such coverage.
       (23) Approved for use by the Food and Drug Administration, 
     emergency contraception is a safe and effective way to 
     prevent unintended pregnancy after unprotected sex. New 
     research confirms that easier access to emergency 
     contraceptives does not increase sexual risk-taking or 
     sexually transmitted diseases.
       (24) The available evidence shows that many women do not 
     know about emergency contraception, do not know where to get 
     it, or are unable to access it. Overcoming these obstacles 
     could help ensure that more women use emergency contraception 
     consistently and correctly.
       (25) A November 2006 study of declining pregnancy rates 
     among teens concluded that the reduction in teen pregnancy 
     between 1995 and 2002 is primarily the result of increased 
     use of contraceptives. As such, it is critically important 
     that teens receive accurate, unbiased information about 
     contraception.
       (26) The American Medical Association, the American Nurses 
     Association, the American Academy of Pediatrics, the American 
     College of Obstetricians and Gynecologists, the American 
     Public Health Association, and the Society for Adolescent 
     Medicine, support responsible sexuality education that 
     includes information about both abstinence and contraception.
       (27) Teens who receive comprehensive sexuality education 
     that includes discussion of contraception as well as 
     abstinence are more likely than those who receive abstinence-
     only messages to delay sex, to have fewer partners, and to 
     use contraceptives when they do become sexually active.
       (28) Government-funded abstinence-only-until-marriage 
     programs are precluded from discussing contraception except 
     to talk about failure rates. An October 2006 report by the 
     Government Accountability Office found that the Department of 
     Health and Human Services does not review the materials of 
     recipients of grants administered by such department for 
     scientific accuracy and requires grantees to review their own 
     materials for scientific accuracy. The GAO also reported on 
     the Department's total lack of appropriate and customary 
     measurements to determine if funded programs are effective. 
     In addition, a separate letter from the Government 
     Accountability Office found that the Department of Health and 
     Human Services is in violation of Federal law by failing to 
     enforce a requirement under the Public Health Service Act 
     that Federally-funded grantees working to address the 
     prevention of sexually transmitted diseases, including 
     abstinence-only-until-marriage programs, must provide 
     medically accurate information about the effectiveness of 
     condoms.
       (29) Recent scientific reports by the Institute of 
     Medicine, the American Medical Association, and the Office on 
     National AIDS Policy stress the need for sexuality education 
     that includes messages about abstinence and provides young 
     people with information about contraception for the 
     prevention of teen pregnancy, HIV/AIDS, and other sexually 
     transmitted diseases.
       (30) A 2006 statement from the American Public Health 
     Association (``APHA'') ``recognizes the importance of 
     abstinence education, but only as part of a comprehensive 
     sexuality education program . . . APHA calls for repealing 
     current federal funding for abstinence-only programs and 
     replacing it with funding for a new Federal program to 
     promote comprehensive sexuality education, combining 
     information about abstinence with age-appropriate sexuality 
     education.''
       (31) Comprehensive sexuality education programs respect the 
     diversity of values and beliefs represented in the community 
     and will complement and augment the sexuality education 
     children receive from their families.
       (32) Nearly half of the 40,000 annual new cases of HIV 
     infections in the United States occur in youth ages 13 
     through 24. African American and Latino youth have been 
     disproportionately affected by the HIV/AIDS epidemic. 
     Although African American adolescents, ages 13 through 19, 
     represent only 15 percent of the adolescent population in the 
     United States, they accounted for 73 percent of new AIDS 
     cases reported among adolescents in 2004. Latino adolescents, 
     ages age 13 through 19, accounted for 14 percent of AIDS 
     cases among adolescents, compared to 16 percent of all 
     adolescents in the United States, in 2004. Teens in the 
     United States contract an estimated 9.1 million sexually 
     transmitted infections each year. By age 24, at least one in 
     four sexually active people between the ages of 15 and 24 
     will have contracted a sexually transmitted disease.
       (33) Approximately 50 young people a day, an average of two 
     young people every hour of every day, are infected with HIV 
     in the United States.

             TITLE I--TITLE X OF PUBLIC HEALTH SERVICE ACT

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Title X Family Planning 
     Services Act of 2007''.

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

       For the purpose of making grants and contracts under 
     section 1001 of the Public Health Service Act, there are 
     authorized to be appropriated $700,000,000 for fiscal year 
     2008 and such sums as may be necessary for each subsequent 
     fiscal year.

 TITLE II--EQUITY IN PRESCRIPTION INSURANCE AND CONTRACEPTIVE COVERAGE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Equity in Prescription 
     Insurance and Contraceptive Coverage Act of 2007''.

     SEC. 202. AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY 
                   ACT OF 1974.

       (a) In General.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 714. STANDARDS RELATING TO BENEFITS FOR 
                   CONTRACEPTIVES.

       ``(a) Requirements for Coverage.--A group health plan, and 
     a health insurance issuer providing health insurance coverage 
     in connection with a group health plan, may not--
       ``(1) exclude or restrict benefits for prescription 
     contraceptive drugs or devices approved by the Food and Drug 
     Administration, or generic equivalents approved as 
     substitutable by the Food and Drug Administration, if such 
     plan or coverage provides benefits for other outpatient 
     prescription drugs or devices; or
       ``(2) exclude or restrict benefits for outpatient 
     contraceptive services if such plan or coverage provides 
     benefits for other outpatient services provided by a health 
     care professional (referred to in this section as `outpatient 
     health care services').
       ``(b) Prohibitions.--A group health plan, and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan because of the individual's or enrollee's use or 
     potential use of items or services that are covered in 
     accordance with the requirements of this section;
       ``(2) provide monetary payments or rebates to a covered 
     individual to encourage such individual to accept less than 
     the minimum protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of a health care professional because such 
     professional prescribed contraceptive drugs or devices, or 
     provided contraceptive services, described in subsection (a), 
     in accordance with this section; or
       ``(4) provide incentives (monetary or otherwise) to a 
     health care professional to induce such professional to 
     withhold from a covered individual contraceptive drugs or 
     devices, or contraceptive services, described in subsection 
     (a).
       ``(c) Rules of Construction.--
       ``(1) In general.--Nothing in this section shall be 
     construed--
       ``(A) as preventing a group health plan and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan from imposing 
     deductibles, coinsurance, or other cost-sharing or 
     limitations in relation to--
       ``(i) benefits for contraceptive drugs under the plan or 
     coverage, except that such a deductible, coinsurance, or 
     other cost-sharing or limitation for any such drug shall be 
     consistent with those imposed for other outpatient 
     prescription drugs otherwise covered under the plan or 
     coverage;
       ``(ii) benefits for contraceptive devices under the plan or 
     coverage, except that such a deductible, coinsurance, or 
     other cost-sharing or limitation for any such device shall be 
     consistent with those imposed for other outpatient 
     prescription devices otherwise covered under the plan or 
     coverage; and
       ``(iii) benefits for outpatient contraceptive services 
     under the plan or coverage, except that such a deductible, 
     coinsurance, or other cost-sharing or limitation for any such 
     service shall be consistent with those imposed for other 
     outpatient health care services otherwise covered under the 
     plan or coverage;
       ``(B) as requiring a group health plan and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan to cover experimental or 
     investigational contraceptive drugs or devices, or 
     experimental or investigational contraceptive services, 
     described in subsection (a), except to the extent that the 
     plan or issuer provides coverage for other experimental or 
     investigational outpatient prescription drugs or devices, or 
     experimental or investigational outpatient health care 
     services; or
       ``(C) as modifying, diminishing, or limiting the rights or 
     protections of an individual under any other Federal law.
       ``(2) Limitations.--As used in paragraph (1), the term 
     `limitation' includes--
       ``(A) in the case of a contraceptive drug or device, 
     restricting the type of health care professionals that may 
     prescribe such drugs or devices, utilization review 
     provisions, and limits on the volume of prescription drugs or

[[Page 114]]

     devices that may be obtained on the basis of a single 
     consultation with a professional; or
       ``(B) in the case of an outpatient contraceptive service, 
     restricting the type of health care professionals that may 
     provide such services, utilization review provisions, 
     requirements relating to second opinions prior to the 
     coverage of such services, and requirements relating to 
     preauthorizations prior to the coverage of such services.
       ``(d) Notice Under Group Health Plan.--The imposition of 
     the requirements of this section shall be treated as a 
     material modification in the terms of the plan described in 
     section 102(a)(1), for purposes of assuring notice of such 
     requirements under the plan, except that the summary 
     description required to be provided under the last sentence 
     of section 104(b)(1) with respect to such modification shall 
     be provided by not later than 60 days after the first day of 
     the first plan year in which such requirements apply.
       ``(e) Preemption.--Nothing in this section shall be 
     construed to preempt any provision of State law to the extent 
     that such State law establishes, implements, or continues in 
     effect any standard or requirement that provides coverage or 
     protections for participants or beneficiaries that are 
     greater than the coverage or protections provided under this 
     section.
       ``(f) Definition.--In this section, the term `outpatient 
     contraceptive services' means consultations, examinations, 
     procedures, and medical services, provided on an outpatient 
     basis and related to the use of contraceptive methods 
     (including natural family planning) to prevent an unintended 
     pregnancy.''.
       (b) Clerical Amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1001) is amended by inserting after the item relating 
     to section 713 the following:

``Sec. 714. Standards relating to benefits for contraceptives''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to plan years beginning on or after 
     January 1, 2008.

     SEC. 203. AMENDMENTS TO PUBLIC HEALTH SERVICE ACT RELATING TO 
                   THE GROUP MARKET.

       (a) In General.--Subpart 2 of part A of title XXVII of the 
     Public Health Service Act (42 U.S.C. 300gg-4 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 2707. STANDARDS RELATING TO BENEFITS FOR 
                   CONTRACEPTIVES.

       ``(a) Requirements for Coverage.--A group health plan, and 
     a health insurance issuer providing health insurance coverage 
     in connection with a group health plan, may not--
       ``(1) exclude or restrict benefits for prescription 
     contraceptive drugs or devices approved by the Food and Drug 
     Administration, or generic equivalents approved as 
     substitutable by the Food and Drug Administration, if such 
     plan or coverage provides benefits for other outpatient 
     prescription drugs or devices; or
       ``(2) exclude or restrict benefits for outpatient 
     contraceptive services if such plan or coverage provides 
     benefits for other outpatient services provided by a health 
     care professional (referred to in this section as `outpatient 
     health care services').
       ``(b) Prohibitions.--A group health plan, and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan, may not--
       ``(1) deny to an individual eligibility, or continued 
     eligibility, to enroll or to renew coverage under the terms 
     of the plan because of the individual's or enrollee's use or 
     potential use of items or services that are covered in 
     accordance with the requirements of this section;
       ``(2) provide monetary payments or rebates to a covered 
     individual to encourage such individual to accept less than 
     the minimum protections available under this section;
       ``(3) penalize or otherwise reduce or limit the 
     reimbursement of a health care professional because such 
     professional prescribed contraceptive drugs or devices, or 
     provided contraceptive services, described in subsection (a), 
     in accordance with this section; or
       ``(4) provide incentives (monetary or otherwise) to a 
     health care professional to induce such professional to 
     withhold from covered individual contraceptive drugs or 
     devices, or contraceptive services, described in subsection 
     (a).
       ``(c) Rules of Construction.--
       ``(1) In general.--Nothing in this section shall be 
     construed--
       ``(A) as preventing a group health plan and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan from imposing 
     deductibles, coinsurance, or other cost-sharing or 
     limitations in relation to--
       ``(i) benefits for contraceptive drugs under the plan or 
     coverage, except that such a deductible, coinsurance, or 
     other cost-sharing or limitation for any such drug shall be 
     consistent with those imposed for other outpatient 
     prescription drugs otherwise covered under the plan or 
     coverage;
       ``(ii) benefits for contraceptive devices under the plan or 
     coverage, except that such a deductible, coinsurance, or 
     other cost-sharing or limitation for any such device shall be 
     consistent with those imposed for other outpatient 
     prescription devices otherwise covered under the plan or 
     coverage; and
       ``(iii) benefits for outpatient contraceptive services 
     under the plan or coverage, except that such a deductible, 
     coinsurance, or other cost-sharing or limitation for any such 
     service shall be consistent with those imposed for other 
     outpatient health care services otherwise covered under the 
     plan or coverage;
       ``(B) as requiring a group health plan and a health 
     insurance issuer providing health insurance coverage in 
     connection with a group health plan to cover experimental or 
     investigational contraceptive drugs or devices, or 
     experimental or investigational contraceptive services, 
     described in subsection (a), except to the extent that the 
     plan or issuer provides coverage for other experimental or 
     investigational outpatient prescription drugs or devices, or 
     experimental or investigational outpatient health care 
     services; or
       ``(C) as modifying, diminishing, or limiting the rights or 
     protections of an individual under any other Federal law.
       ``(2) Limitations.--As used in paragraph (1), the term 
     `limitation' includes--
       ``(A) in the case of a contraceptive drug or device, 
     restricting the type of health care professionals that may 
     prescribe such drugs or devices, utilization review 
     provisions, and limits on the volume of prescription drugs or 
     devices that may be obtained on the basis of a single 
     consultation with a professional; or
       ``(B) in the case of an outpatient contraceptive service, 
     restricting the type of health care professionals that may 
     provide such services, utilization review provisions, 
     requirements relating to second opinions prior to the 
     coverage of such services, and requirements relating to 
     preauthorizations prior to the coverage of such services.
       ``(d) Notice.--A group health plan under this part shall 
     comply with the notice requirement under section 714(d) of 
     the Employee Retirement Income Security Act of 1974 with 
     respect to the requirements of this section as if such 
     section applied to such plan.
       ``(e) Preemption.--Nothing in this section shall be 
     construed to preempt any provision of State law to the extent 
     that such State law establishes, implements, or continues in 
     effect any standard or requirement that provides coverage or 
     protections for enrollees that are greater than the coverage 
     or protections provided under this section.
       ``(f) Definition.--In this section, the term `outpatient 
     contraceptive services' means consultations, examinations, 
     procedures, and medical services, provided on an outpatient 
     basis and related to the use of contraceptive methods 
     (including natural family planning) to prevent an unintended 
     pregnancy.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to group health plans for plan years 
     beginning on or after January 1, 2008.

     SEC. 204. AMENDMENT TO PUBLIC HEALTH SERVICE ACT RELATING TO 
                   THE INDIVIDUAL MARKET.

       (a) In General.--Part B of title XXVII of the Public Health 
     Service Act (42 U.S.C. 300gg-41 et seq.) is amended--
       (1) by redesignating the first subpart 3 (relating to other 
     requirements) as subpart 2; and
       (2) by adding at the end of subpart 2 the following:

     ``SEC. 2753. STANDARDS RELATING TO BENEFITS FOR 
                   CONTRACEPTIVES.

       ``The provisions of section 2707 shall apply to health 
     insurance coverage offered by a health insurance issuer in 
     the individual market in the same manner as they apply to 
     health insurance coverage offered by a health insurance 
     issuer in connection with a group health plan in the small or 
     large group market.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to health insurance coverage 
     offered, sold, issued, renewed, in effect, or operated in the 
     individual market on or after January 1, 2008.

      TITLE III--EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Emergency Contraception 
     Education Act of 2007''.

     SEC. 302. EMERGENCY CONTRACEPTION EDUCATION AND INFORMATION 
                   PROGRAMS.

       (a) Definitions.--For purposes of this section:
       (1) Emergency contraception.--The term ``emergency 
     contraception'' means a drug or device (as the terms are 
     defined in section 201 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321)) or a drug regimen that is--
       (A) used after sexual relations;
       (B) prevents pregnancy, by preventing ovulation, 
     fertilization of an egg, or implantation of an egg in a 
     uterus; and
       (C) approved by the Food and Drug Administration.
       (2) Health care provider.--The term ``health care 
     provider'' means an individual who is licensed or certified 
     under State law to provide health care services and who is 
     operating within the scope of such license.
       (3) Institution of higher education.--The term 
     ``institution of higher education'' has the same meaning 
     given such term in section 1201(a) of the Higher Education 
     Act of 1965 (20 U.S.C. 1141(a)).

[[Page 115]]

       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (b) Emergency Contraception Public Education Program.--
       (1) In general.--The Secretary, acting through the Director 
     of the Centers for Disease Control and Prevention, shall 
     develop and disseminate to the public information on 
     emergency contraception.
       (2) Dissemination.--The Secretary may disseminate 
     information under paragraph (1) directly or through 
     arrangements with nonprofit organizations, consumer groups, 
     institutions of higher education, Federal, State, or local 
     agencies, clinics, and the media.
       (3) Information.--The information disseminated under 
     paragraph (1) shall include, at a minimum, a description of 
     emergency contraception and an explanation of the use, 
     safety, efficacy, and availability of such contraception.
       (c) Emergency Contraception Information Program for Health 
     Care Providers.--
       (1) In general.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration and in consultation with major medical and 
     public health organizations, shall develop and disseminate to 
     health care providers information on emergency contraception.
       (2) Information.--The information disseminated under 
     paragraph (1) shall include, at a minimum--
       (A) information describing the use, safety, efficacy, and 
     availability of emergency contraception;
       (B) a recommendation regarding the use of such 
     contraception in appropriate cases; and
       (C) information explaining how to obtain copies of the 
     information developed under subsection (b) for distribution 
     to the patients of the providers.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for each of the fiscal years 2008 through 2012.

        TITLE IV--COMPASSIONATE ASSISTANCE FOR RAPE EMERGENCIES

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Compassionate Assistance 
     for Rape Emergencies Act of 2007''.

     SEC. 402. SURVIVORS OF SEXUAL ASSAULT; PROVISION BY HOSPITALS 
                   OF EMERGENCY CONTRACEPTIVES WITHOUT CHARGE.

       (a) In General.--Federal funds may not be provided to a 
     hospital under any health-related program, unless the 
     hospital meets the conditions specified in subsection (b) in 
     the case of--
       (1) any woman who presents at the hospital and states that 
     she is a victim of sexual assault, or is accompanied by 
     someone who states she is a victim of sexual assault; and
       (2) any woman who presents at the hospital whom hospital 
     personnel have reason to believe is a victim of sexual 
     assault.
       (b) Assistance for Victims.--The conditions specified in 
     this subsection regarding a hospital and a woman described in 
     subsection (a) are as follows:
       (1) The hospital promptly provides the woman with medically 
     and factually accurate and unbiased written and oral 
     information about emergency contraception, including 
     information explaining that--
       (A) emergency contraception does not cause an abortion; and
       (B) emergency contraception is effective in most cases in 
     preventing pregnancy after unprotected sex.
       (2) The hospital promptly offers emergency contraception to 
     the woman, and promptly provides such contraception to her on 
     her request.
       (3) The information provided pursuant to paragraph (1) is 
     in clear and concise language, is readily comprehensible, and 
     meets such conditions regarding the provision of the 
     information in languages other than English as the Secretary 
     may establish.
       (4) The services described in paragraphs (1) through (3) 
     are not denied because of the inability of the woman or her 
     family to pay for the services.
       (c) Definitions.--For purposes of this section:
       (1) The term ``emergency contraception'' means a drug, drug 
     regimen, or device that--
       (A) is used postcoitally;
       (B) prevents pregnancy by delaying ovulation, preventing 
     fertilization of an egg, or preventing implantation of an egg 
     in a uterus; and
       (C) is approved by the Food and Drug Administration.
       (2) The term ``hospital'' has the meanings given such term 
     in title XVIII of the Social Security Act, including the 
     meaning applicable in such title for purposes of making 
     payments for emergency services to hospitals that do not have 
     agreements in effect under such title.
       (3) The term ``Secretary'' means the Secretary of Health 
     and Human Services.
       (4) The term ``sexual assault'' means coitus in which the 
     woman involved does not consent or lacks the legal capacity 
     to consent.
       (d) Effective Date; Agency Criteria.--This section takes 
     effect upon the expiration of the 180-day period beginning on 
     the date of the enactment of this Act. Not later than 30 days 
     prior to the expiration of such period, the Secretary shall 
     publish in the Federal Register criteria for carrying out 
     this section.

       TITLE V--AT-RISK COMMUNITIES TEEN PREGNANCY PREVENTION ACT

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``At-Risk Communities Teen 
     Pregnancy Prevention Act of 2007''.

     SEC. 502. TEEN PREGNANCY PREVENTION.

       (a) In General.--The Secretary of Health and Human Services 
     (referred to in this title as the ``Secretary'') shall make 
     grants to public and nonprofit private entities for the 
     purpose of carrying out projects to prevent teen pregnancies 
     in communities with a substantial incidence or prevalence of 
     cases of teen pregnancy as compared to the average number of 
     such cases in communities in the State involved (referred to 
     in this title as ``eligible communities'').
       (b) Requirements Regarding Purpose of Grants.--A grant may 
     be made under subsection (a) only if, with respect to the 
     expenditure of the grant to carry out the purpose described 
     in such subsection, the applicant involved agrees to use one 
     or more of the following strategies:
       (1) Promote effective communication among families about 
     preventing teen pregnancy, particularly communication among 
     parents or guardians and their children.
       (2) Educate community members about the consequences of 
     teen pregnancy.
       (3) Encourage young people to postpone sexual activity and 
     prepare for a healthy, successful adulthood.
       (4) Provide educational information, including medically 
     accurate contraceptive information, for young people in such 
     communities who are already sexually active or are at risk of 
     becoming sexually active and inform young people in such 
     communities about the responsibilities and consequences of 
     being a parent, and how early pregnancy and parenthood can 
     interfere with educational and other goals.
       (c) Utilizing Effective Strategies.--A grant may be made 
     under subsection (a) only if the applicant involved agrees 
     that, in carrying out the purpose described in such 
     subsection, the applicant will, whenever possible, use 
     strategies that have been demonstrated to be effective, or 
     that incorporate characteristics of effective programs.
       (d) Report.--A grant may be made under subsection (a) only 
     if the applicant involved agrees to submit to the Secretary, 
     in accordance with the criteria of the Secretary, a report 
     that provides information on the project under such 
     subsection, including outcomes. The Secretary shall make such 
     reports available to the public.
       (e) Evaluations.--Not later than 12 months after the date 
     of the enactment of this Act, the Secretary shall, directly 
     or through contract, provide for evaluations of six projects 
     under subsection (a). Such evaluations shall describe--
       (1) the activities carried out with the grant; and
       (2) how such activities increased education and awareness 
     services relating to the prevention of teen pregnancy.
       (f) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.

     SEC. 503. SCHOOL-BASED PROJECTS.

       (a) In General.--The Secretary of Health and Human Services 
     may make grants to public and nonprofit private entities for 
     the purpose of establishing and operating for eligible 
     communities, in association with public secondary schools for 
     such communities, projects for one or more of the following:
       (1) To carry out activities, including counseling, to 
     prevent teen pregnancy.
       (2) To provide necessary social and cultural support 
     services regarding teen pregnancy.
       (3) To provide health and educational services related to 
     the prevention of teen pregnancy.
       (4) To promote better health and educational outcomes among 
     pregnant teens.
       (5) To provide training for individuals who plan to work in 
     school-based support programs regarding the prevention of 
     teen pregnancy.
       (b) Priority.--In making grants under subsection (a), the 
     Secretary shall give priority to providing for projects under 
     such subsection in eligible communities.
       (c) Required Coalition.--A grant may be made under 
     subsection (a) only if the applicant involved has formed an 
     appropriate coalition of entities for purposes of carrying 
     out a project under such subsection, including--
       (1) one or more public secondary schools for the eligible 
     community involved; and
       (2) entities to provide the services of the project.
       (d) Training.--A grant under subsection (a) may be expended 
     to train individuals to provide the services described in 
     paragraphs (1) and (2) of such subsection for the project 
     involved.
       (e) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.

     SEC. 504. MULTIMEDIA CAMPAIGNS.

       (a) In General.--The Secretary of Health and Human Services 
     shall make grants to

[[Page 116]]

     public and nonprofit private entities for the purpose of 
     carrying out multimedia campaigns to provide public education 
     and increase awareness with respect to the issue of teen 
     pregnancy and related social and emotional issues.
       (b) Priority.--In making grants under subsection (a), the 
     Secretary shall give priority to campaigns described in such 
     subsection that are directed toward eligible communities.
       (c) Requirements.--A grant may be made under subsection (a) 
     only if the applicant involved agrees that the multimedia 
     campaign under such subsection will--
       (1) provide information on the prevention of teen 
     pregnancy;
       (2) provide information that identifies organizations in 
     the communities involved that--
       (A) provide health and educational services related to the 
     prevention of teen pregnancy; and
       (B) provide necessary social and cultural support services; 
     and
       (3) coincide with efforts of the National Clearinghouse for 
     Teen Pregnancy Prevention that are made under section 
     505(b)(1).
       (d) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.

     SEC. 505. NATIONAL CLEARINGHOUSE.

       (a) In General.--The Secretary shall make grants to a 
     nonprofit private entity to establish and operate a National 
     Clearinghouse for Teen Pregnancy Prevention (referred to in 
     this section as the ``Clearinghouse'') for the purposes 
     described in subsection (b).
       (b) Purposes of Clearinghouse.--The purposes referred to in 
     subsection (a) regarding the Clearinghouse are as follows:
       (1) To provide information and technical assistance to 
     States, Indian tribes, local communities, and other public or 
     private entities to develop content and messages for teens 
     and adults that address and seek to reduce the rate of teen 
     pregnancy.
       (2) To support parents in their essential role in 
     preventing teen pregnancy by equipping parents with 
     information and resources to promote and strengthen 
     communication with their children about sex, values, and 
     positive relationships, including healthy relationships.
       (c) Requirements for Grantee.--A grant may be made under 
     subsection (a) only if the applicant involved is an 
     organization that meets the following conditions:
       (1) The organization is a nationally recognized, 
     nonpartisan organization that focuses exclusively on 
     preventing teen pregnancy and has at least 10 years of 
     experience in working with diverse groups to reduce the rate 
     of teen pregnancy.
       (2) The organization has a demonstrated ability to work 
     with and provide assistance to a broad range of individuals 
     and entities, including teens; parents; the entertainment and 
     news media; State, tribal, and local organizations; networks 
     of teen pregnancy prevention practitioners; businesses; faith 
     and community leaders; and researchers.
       (3) The organization has experience in the use of 
     culturally competent and linguistically appropriate methods 
     to address teen pregnancy in eligible communities.
       (4) The organization conducts or supports research and has 
     experience with scientific analyses and evaluations.
       (5) The organization has comprehensive knowledge and data 
     about strategies for the prevention of teen pregnancy.
       (6) The organization has experience in carrying out 
     functions similar to the functions described in subsection 
     (b).
       (d) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.

     SEC. 506. RESEARCH.

       (a) In General.--The Secretary of Health and Human 
     Services, acting through the Director of the Centers for 
     Disease Control and Prevention, shall make grants to public 
     or nonprofit private entities to conduct, support, and 
     coordinate research on the prevention of teen pregnancy in 
     eligible communities, including research on the factors 
     contributing to the disproportionate rates of teen pregnancy 
     in such communities.
       (b) Research.--In carrying out subsection (a), the 
     Secretary shall support research that--
       (1) investigates and determines the incidence and 
     prevalence of teen pregnancy in communities described in such 
     subsection;
       (2) examines--
       (A) the extent of the impact of teen pregnancy on--
       (i) the health and well-being of teenagers in the 
     communities; and
       (ii) the scholastic achievement of such teenagers;
       (B) the variance in the rates of teen pregnancy by--
       (i) location (such as inner cities, inner suburbs, and 
     outer suburbs);
       (ii) population subgroup (such as Hispanic, Asian-Pacific 
     Islander, African-American, Native American); and
       (iii) level of acculturation;
       (C) the importance of the physical and social environment 
     as a factor in placing communities at risk of increased rates 
     of teen pregnancy; and
       (D) the importance of aspirations as a factor affecting 
     young women's risk of teen pregnancy; and
       (3) is used to develop--
       (A) measures to address race, ethnicity, socioeconomic 
     status, environment, and educational attainment and the 
     relationship to the incidence and prevalence of teen 
     pregnancy; and
       (B) efforts to link the measures to relevant databases, 
     including health databases.
       (c) Priority.--In making grants under subsection (a), the 
     Secretary shall give priority to research that incorporates--
       (1) interdisciplinary approaches; or
       (2) a strong emphasis on community-based participatory 
     research.
       (d) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there is authorized to be 
     appropriated such sums as may be necessary for each of the 
     fiscal years 2008 through 2012.

     SEC. 507. GENERAL REQUIREMENTS.

       (a) Medically Accurate Information.--A grant may be made 
     under this title only if the applicant involved agrees that 
     all information provided pursuant to the grant will be age-
     appropriate, factually and medically accurate and complete, 
     and scientifically based.
       (b) Cultural Context of Services.--A grant may be made 
     under this title only if the applicant involved agrees that 
     information, activities, and services under the grant that 
     are directed toward a particular population group will be 
     provided in the language and cultural context that is most 
     appropriate for individuals in such group.
       (c) Application for Grant.--A grant may be made under this 
     title only if an application for the grant is submitted to 
     the Secretary and the application is in such form, is made in 
     such manner, and contains such agreements, assurances, and 
     information as the Secretary determines to be necessary to 
     carry out the program involved.

     SEC. 508. DEFINITIONS.

       For purposes of this title:
       (1) The term ``eligible community'' has the meaning 
     indicated for such term in section 502(a).
       (2) The term ``racial or ethnic minority or immigrant 
     communities'' means communities with a substantial number of 
     residents who are members of racial or ethnic minority groups 
     or who are immigrants.
       (3) The term ``Secretary'' has the meaning indicated for 
     such term in section 502(a).

            TITLE VI--ACCURACY OF CONTRACEPTIVE INFORMATION

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Truth in Contraception Act 
     of 2007''.

     SEC. 602. ACCURACY OF CONTRACEPTIVE INFORMATION.

       Notwithstanding any other provision of law, any information 
     concerning the use of a contraceptive provided through any 
     federally funded sex education, family life education, 
     abstinence education, comprehensive health education, or 
     character education program shall be medically accurate and 
     shall include health benefits and failure rates relating to 
     the use of such contraceptive.

             TITLE VII--UNINTENDED PREGNANCY REDUCTION ACT

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Unintended Pregnancy 
     Reduction Act of 2007''.

     SEC. 702. MEDICAID; CLARIFICATION OF COVERAGE OF FAMILY 
                   PLANNING SERVICES AND SUPPLIES.

       Section 1937(b) of the Social Security Act (42 U.S.C. 
     1396u-7(b)) is amended by adding at the end the following:
       ``(5) Coverage of family planning services and supplies.--
     Notwithstanding the previous provisions of this section, a 
     State may not provide for medical assistance through 
     enrollment of an individual with benchmark coverage or 
     benchmark-equivalent coverage under this section unless such 
     coverage includes for any individual described in section 
     1905(a)(4)(C), medical assistance for family planning 
     services and supplies in accordance with such section.''.

     SEC. 703. EXPANSION OF FAMILY PLANNING SERVICES.

       (a) Coverage as Mandatory Categorically Needy Group.--
       (1) In general.--Section 1902(a)(10)(A)(i) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(i)) is amended--
       (A) in subclause (VI), by striking ``or'' at the end;
       (B) in subclause (VII), by adding ``or'' at the end; and
       (C) by adding at the end the following new subclause:

       ``(VIII) who are described in subsection (dd) (relating to 
     individuals who meet the income standards for pregnant 
     women);''.

       (2) Group described.--Section 1902 of the Social Security 
     Act (42 U.S.C. 1396a) is amended by adding at the end the 
     following new subsection:
       ``(dd)(1) Individuals described in this subsection are 
     individuals who--
       ``(A) meet at least the income eligibility standards 
     established under the State plan as of January 1, 2007, for 
     pregnant women or such higher income eligibility standard for 
     such women as the State may establish; and

[[Page 117]]

       ``(B) are not pregnant.
       ``(2) At the option of a State, individuals described in 
     this subsection may include individuals who are determined to 
     meet the income eligibility standards referred to in 
     paragraph (1)(A) under the terms and conditions applicable to 
     making eligibility determinations for medical assistance 
     under this title under a waiver to provide the benefits 
     described in clause (XV) of the matter following subparagraph 
     (G) of section 1902(a)(10) granted to the State under section 
     1115 as of January 1, 2007.''.
       (3) Limitation on benefits.--Section 1902(a)(10) of the 
     Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in 
     the matter following subparagraph (G)--
       (A) by striking ``and (XIV)'' and inserting ``(XIV)''; and
       (B) by inserting ``, and (XV) the medical assistance made 
     available to an individual described in subsection (dd) who 
     is eligible for medical assistance only because of 
     subparagraph (A)(10)(i)(VIII) shall be limited to family 
     planning services and supplies described in 1905(a)(4)(C) 
     and, at the State's option, medical diagnosis or treatment 
     services that are provided in conjunction with a family 
     planning service in a family planning setting provided during 
     the period in which such an individual is eligible;'' after 
     ``cervical cancer''.
       (4) Conforming amendments.--Section 1905(a) of the Social 
     Security Act (42 U.S.C. 1396d(a)) is amended in the matter 
     preceding paragraph (1)--
       (A) in clause (xii), by striking ``or'' at the end;
       (B) in clause (xii), by adding ``or'' at the end; and
       (C) by inserting after clause (xiii) the following:
       ``(xiv) individuals described in section 1902(dd),''.
       (b) Presumptive Eligibility.--
       (1) In general.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) is amended by inserting after section 
     1920B the following:


         ``PRESUMPTIVE ELIGIBILITY FOR FAMILY PLANNING SERVICES

       ``Sec. 1920C.  (a) State Option.--A State plan approved 
     under section 1902 may provide for making medical assistance 
     available to an individual described in section 1902(dd) 
     (relating to individuals who meet the income eligibility 
     standard for pregnant women in the State) during a 
     presumptive eligibility period. In the case of an individual 
     described in section 1902(dd) who is eligible for medical 
     assistance only because of subparagraph (A)(10)(i)(VIII), 
     such medical assistance may be limited to family planning 
     services and supplies described in 1905(a)(4)(C) and, at the 
     State's option, medical diagnosis or treatment services that 
     are provided in conjunction with a family planning service in 
     a family planning setting provided during the period in which 
     such an individual is eligible.
       ``(b) Definitions.--For purposes of this section:
       ``(1) Presumptive eligibility period.--The term 
     `presumptive eligibility period' means, with respect to an 
     individual described in subsection (a), the period that--
       ``(A) begins with the date on which a qualified entity 
     determines, on the basis of preliminary information, that the 
     individual is described in section 1902(dd); and
       ``(B) ends with (and includes) the earlier of--
       ``(i) the day on which a determination is made with respect 
     to the eligibility of such individual for services under the 
     State plan; or
       ``(ii) in the case of such an individual who does not file 
     an application by the last day of the month following the 
     month during which the entity makes the determination 
     referred to in subparagraph (A), such last day.
       ``(2) Qualified entity.--
       ``(A) In general.--Subject to subparagraph (B), the term 
     `qualified entity' means any entity that--
       ``(i) is eligible for payments under a State plan approved 
     under this title; and
       ``(ii) is determined by the State agency to be capable of 
     making determinations of the type described in paragraph 
     (1)(A).
       ``(B) Regulations.--The Secretary may issue regulations 
     further limiting those entities that may become qualified 
     entities in order to prevent fraud and abuse and for other 
     reasons.
       ``(C) Rule of construction.--Nothing in this paragraph 
     shall be construed as preventing a State from limiting the 
     classes of entities that may become qualified entities, 
     consistent with any limitations imposed under subparagraph 
     (B).
       ``(c) Administration.--
       ``(1) In general.--The State agency shall provide qualified 
     entities with--
       ``(A) such forms as are necessary for an application to be 
     made by an individual described in subsection (a) for medical 
     assistance under the State plan; and
       ``(B) information on how to assist such individuals in 
     completing and filing such forms.
       ``(2) Notification requirements.--A qualified entity that 
     determines under subsection (b)(1)(A) that an individual 
     described in subsection (a) is presumptively eligible for 
     medical assistance under a State plan shall--
       ``(A) notify the State agency of the determination within 5 
     working days after the date on which determination is made; 
     and
       ``(B) inform such individual at the time the determination 
     is made that an application for medical assistance is 
     required to be made by not later than the last day of the 
     month following the month during which the determination is 
     made.
       ``(3) Application for medical assistance.--In the case of 
     an individual described in subsection (a) who is determined 
     by a qualified entity to be presumptively eligible for 
     medical assistance under a State plan, the individual shall 
     apply for medical assistance by not later than the last day 
     of the month following the month during which the 
     determination is made.
       ``(d) Payment.--Notwithstanding any other provision of this 
     title, medical assistance that--
       ``(1) is furnished to an individual described in subsection 
     (a)--
       ``(A) during a presumptive eligibility period;
       ``(B) by a entity that is eligible for payments under the 
     State plan; and
       ``(2) is included in the care and services covered by the 
     State plan, shall be treated as medical assistance provided 
     by such plan for purposes of clause (4) of the first sentence 
     of section 1905(b).''.
       (2) Conforming amendments.--
       (A) Section 1902(a)(47) of the Social Security Act (42 
     U.S.C. 1396a(a)(47)) is amended by inserting before the 
     semicolon at the end the following: ``and provide for making 
     medical assistance available to individuals described in 
     subsection (a) of section 1920C during a presumptive 
     eligibility period in accordance with such section.''.
       (B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C. 
     1396b(u)(1)(D)(v)) is amended--
       (i) by striking ``or for'' and inserting ``, for''; and
       (ii) by inserting before the period the following: ``, or 
     for medical assistance provided to an individual described in 
     subsection (a) of section 1920C during a presumptive 
     eligibility period under such section''.

     SEC. 704. EFFECTIVE DATE.

       (a) In General.--Except as provided in paragraph (2), the 
     amendments made by this title take effect on October 1, 2007.
       (b) Extension of Effective Date for State Law Amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) which the Secretary of 
     Health and Human Services determines requires State 
     legislation in order for the plan to meet the additional 
     requirements imposed by the amendments made by this title, 
     the State plan shall not be regarded as failing to comply 
     with the requirements of such title solely on the basis of 
     its failure to meet these additional requirements before the 
     first day of the first calendar quarter beginning after the 
     close of the first regular session of the State legislature 
     that begins after the date of the enactment of this Act. For 
     purposes of the previous sentence, in the case of a State 
     that has a 2-year legislative session, each year of the 
     session is considered to be a separate regular session of the 
     State legislature.

            TITLE VIII--RESPONSIBLE EDUCATION ABOUT LIFE ACT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Responsible Education 
     About Life Act of 2007''.

     SEC. 802. ASSISTANCE TO REDUCE TEEN PREGNANCY, HIV/AIDS, AND 
                   OTHER SEXUALLY TRANSMITTED DISEASES AND TO 
                   SUPPORT HEALTHY ADOLESCENT DEVELOPMENT.

       (a) In General.--Each eligible State shall be entitled to 
     receive from the Secretary of Health and Human Services, for 
     each of the fiscal years 2008 through 2012, a grant to 
     conduct programs of family life education, including 
     education on both abstinence and contraception for the 
     prevention of teenage pregnancy and sexually transmitted 
     diseases, including HIV/AIDS.
       (b) Requirements for Family Life Programs.--For purposes of 
     this title, a program of family life education is a program 
     that--
       (1) is age-appropriate and medically accurate;
       (2) does not teach or promote religion;
       (3) teaches that abstinence is the only sure way to avoid 
     pregnancy or sexually transmitted diseases;
       (4) stresses the value of abstinence while not ignoring 
     those young people who have had or are having sexual 
     intercourse;
       (5) provides information about the health benefits and side 
     effects of all contraceptives and barrier methods as a means 
     to prevent pregnancy;
       (6) provides information about the health benefits and side 
     effects of all contraceptives and barrier methods as a means 
     to reduce the risk of contracting sexually transmitted 
     diseases, including HIV/AIDS;
       (7) encourages family communication between parent and 
     child about sexuality;
       (8) teaches young people the skills to make responsible 
     decisions about sexuality, including how to avoid unwanted 
     verbal, physical, and sexual advances and how not to make 
     unwanted verbal, physical, and sexual advances; and
       (9) teaches young people how alcohol and drug use can 
     effect responsible decision making.
       (c) Additional Activities.--In carrying out a program of 
     family life education, a State may expend a grant under 
     subsection

[[Page 118]]

     (a) to carry out educational and motivational activities that 
     help young people--
       (1) gain knowledge about the physical, emotional, 
     biological, and hormonal changes of adolescence and 
     subsequent stages of human maturation;
       (2) develop the knowledge and skills necessary to ensure 
     and protect their sexual and reproductive health from 
     unintended pregnancy and sexually transmitted disease, 
     including HIV/AIDS throughout their lifespan;
       (3) gain knowledge about the specific involvement and 
     responsibility of males in sexual decision making;
       (4) develop healthy attitudes and values about adolescent 
     growth and development, body image, racial and ethnic 
     diversity, and other related subjects;
       (5) develop and practice healthy life skills, including 
     goal-setting, decision making, negotiation, communication, 
     and stress management;
       (6) promote self-esteem and positive interpersonal skills 
     focusing on relationship dynamics, including friendships, 
     dating, romantic involvement, marriage and family 
     interactions; and
       (7) prepare for the adult world by focusing on educational 
     and career success, including developing skills for 
     employment preparation, job seeking, independent living, 
     financial self-sufficiency, and workplace productivity.

     SEC. 803. SENSE OF CONGRESS.

       It is the sense of Congress that while States are not 
     required under this title to provide matching funds, with 
     respect to grants authorized under section 802(a), they are 
     encouraged to do so.

     SEC. 804. EVALUATION OF PROGRAMS.

       (a) In General.--For the purpose of evaluating the 
     effectiveness of programs of family life education carried 
     out with a grant under section 802, evaluations of such 
     program shall be carried out in accordance with subsections 
     (b) and (c).
       (b) National Evaluation.--
       (1) In general.--The Secretary shall provide for a national 
     evaluation of a representative sample of programs of family 
     life education carried out with grants under section 802. A 
     condition for the receipt of such a grant is that the State 
     involved agree to cooperate with the evaluation. The purposes 
     of the national evaluation shall be the determination of--
       (A) the effectiveness of such programs in helping to delay 
     the initiation of sexual intercourse and other high-risk 
     behaviors;
       (B) the effectiveness of such programs in preventing 
     adolescent pregnancy;
       (C) the effectiveness of such programs in preventing 
     sexually transmitted disease, including HIV/AIDS;
       (D) the effectiveness of such programs in increasing 
     contraceptive knowledge and contraceptive behaviors when 
     sexual intercourse occurs; and
       (E) a list of best practices based upon essential 
     programmatic components of evaluated programs that have led 
     to success in subparagraphs (A) through (D).
       (2) Report.--A report providing the results of the national 
     evaluation under paragraph (1) shall be submitted to Congress 
     not later than March 31, 2011, with an interim report 
     provided on an annual basis at the end of each fiscal year.
       (c) Individual State Evaluations.--
       (1) In general.--A condition for the receipt of a grant 
     under section 802 is that the State involved agree to provide 
     for the evaluation of the programs of family education 
     carried out with the grant in accordance with the following:
       (A) The evaluation will be conducted by an external, 
     independent entity.
       (B) The purposes of the evaluation will be the 
     determination of--
       (i) the effectiveness of such programs in helping to delay 
     the initiation of sexual intercourse and other high-risk 
     behaviors;
       (ii) the effectiveness of such programs in preventing 
     adolescent pregnancy;
       (iii) the effectiveness of such programs in preventing 
     sexually transmitted disease, including HIV/AIDS; and
       (iv) the effectiveness of such programs in increasing 
     contraceptive knowledge and contraceptive behaviors when 
     sexual intercourse occurs.
       (2) Use of grant.--A condition for the receipt of a grant 
     under section 802 is that the State involved agree that not 
     more than 10 percent of the grant will be expended for the 
     evaluation under paragraph (1).

     SEC. 805. DEFINITIONS.

       For purposes of this title:
       (1) The term ``eligible State'' means a State that submits 
     to the Secretary an application for a grant under section 802 
     that is in such form, is made in such manner, and contains 
     such agreements, assurances, and information as the Secretary 
     determines to be necessary to carry out this title.
       (2) The term ``HIV/AIDS'' means the human immunodeficiency 
     virus, and includes acquired immune deficiency syndrome.
       (3) The term ``medically accurate'', with respect to 
     information, means information that is supported by research, 
     recognized as accurate and objective by leading medical, 
     psychological, psychiatric, and public health organizations 
     and agencies, and where relevant, published in peer review 
     journals.
       (4) The term ``Secretary'' means the Secretary of Health 
     and Human Services.

     SEC. 806. APPROPRIATIONS.

       (a) In General.--For the purpose of carrying out this 
     title, there are authorized to be appropriated such sums as 
     may be necessary for each of the fiscal years 2008 through 
     2012.
       (b) Allocations.--Of the amounts appropriated under 
     subsection (a) for a fiscal year--
       (1) not more than 7 percent may be used for the 
     administrative expenses of the Secretary in carrying out this 
     title for that fiscal year; and
       (2) not more than 10 percent may be used for the national 
     evaluation under section 804(b).
                                 ______
                                 
      By Mr. WEBB:
  S. 22. A bill to amend title 38, United States Code, to establish a 
program of educational assistance for members of the Armed Forces who 
serve in the Armed Forces after September 11, 2001, and for other 
purposes; to the Committee on Veterans' Affairs.
  Mr. WEBB. Mr. President, I rise today to speak in support of a bill 
that I am introducing, entitled the Post-9/11 Veterans Educational 
Assistance Act of 2007. This bill is designed to expand the educational 
benefits that our Nation offers to the brave men and women who have 
served us so honorably since the terrorist attacks of September 11, 
2001.
  As a veteran who hails from a family with a long history of military 
service, I am proud to offer this bill as my first piece of legislation 
in the United States Senate.
  Most of us know that our country has a tradition--since World War 
II--of offering educational assistance to returning veterans. In the 
1940s, the first G.I. bill helped transform notions of equality in 
American society. The G.I. bill program was designed to help veterans 
readjust to civilian life, avoid high levels of unemployment, and give 
veterans the opportunity to receive the education and training that 
they missed while bravely serving in the military.
  To achieve these goals, the post-World War II G.I. bill paid for 
veterans' tuition, books, fees, and other training costs, and also gave 
a monthly stipend. After World War II, 7.8 million veterans used the 
benefits given under the original G.I. bill in some form, out of a 
wartime veteran population of 15 million.
  Over the last several decades, Congress subsequently passed several 
other G.I. bills, which also gave educational benefits to veterans. 
However, benefits awarded under those subsequent bills have not been as 
generous as our Nation's original G.I. bill.
  Currently, veterans' educational benefits are administered under the 
Montgomery G.I. bill. This program periodically adjusts veterans' 
educational benefits, but the program is designed primarily for 
peacetime--not wartime--service.
  Yet, now our Nation is fighting a worldwide war against terrorism. 
Since 9/11, we have witnessed a sharp increase in the demands placed 
upon our military. Many of our military members are serving two or 
three tours of duty in Iraq and Afghanistan. In light of these immense 
hardships, it is now time to implement a more robust educational 
assistance program for our heroic veterans who have sacrificed so much 
for our great Nation.
  The Post-9/11 Veterans Educational Assistance Act of 2007 does just 
that. This bill is designed to give our returning troops educational 
benefits identical to the benefits provided to veterans after World War 
II.
  The new benefits package under the bill I am introducing today will 
include the costs of tuition, room and board, and a monthly stipend of 
$1,000. By contrast, existing law under the Montgomery G.I. bill 
provides educational support of up to $1,000 per month for four years, 
totaling $9,000 for each academic year. This benefit simply is 
insufficient after 9/11.
  For example, costs of tuition, room, and board for an in-state 
student at George Mason University, located in Fairfax, Virginia, add 
up to approximately $14,000 per year. In addition, existing law 
requires participating service members to pay $1,200 during their first 
year of service in order to even qualify for the benefit.
  Let me briefly summarize some of the reforms that are contained in 
the bill I am introducing today.
  First, these increased educational benefits will be available to 
those

[[Page 119]]

members of the military who have served on active duty since September 
11, 2001. In general, to qualify, veterans must have served at least 
two years of active duty, with at least some period of active duty time 
served beginning on or after September 11, 2001.
  Next, the bill provides for educational benefits to be paid for a 
duration of time that is linked to time served in the military. 
Generally, veterans will not receive assistance for more than a total 
of 36 months, which equals four academic years.
  Third, as I mentioned a moment ago, my bill would allow veterans 
pursuing an approved program of education to receive payments covering 
the established charges of their program, room and board, and a monthly 
stipend of $1,000. Moreover, the bill would allow additional payments 
for tutorial assistance, as well as licensure and certification tests.
  Fourth, veterans would have up to 15 years to use their educational 
assistance entitlement. But veterans would be barred from receiving 
concurrent assistance from this program and another similar program, 
such as the Montgomery G.I. bill program.
  Finally, under this bill, the Secretary of Veterans Affairs would 
administer the program, promulgate rules to carry out the new law, and 
pay for the program from funds made available to the Department of 
Veterans Affairs for the payment of readjustment benefits.
  Again, I note that the benefits I have outlined today essentially 
mirror the benefits allowed under the G.I. bill enacted after World War 
II. That bill helped spark economic growth and expansion for a whole 
generation of Americans. The bill I introduce today likely will have 
similar beneficial effects. As the post-World War II experience so 
clearly indicated, better educated veterans have higher income levels, 
which in the long run will increase tax revenues.
  Moreover, a strong G.I. bill will have a positive effect on military 
recruitment, broadening the socio-economic makeup of the military and 
reducing the direct costs of recruitment.
  Perhaps more importantly, better-educated veterans have a more 
positive readjustment experience. This experience lowers the costs of 
treating post-traumatic stress disorder and other readjustment-related 
difficulties.
  The United States has never erred when it has made sustained new 
investments in higher education and job training. Enacting the Post-9/
11 Veterans Educational Assistance Act of 2007 is not only the right 
thing to do for our men and women in uniform, but it also is a strong 
tonic for an economy plagued by growing disparities in wealth, stagnant 
wages, and the outsourcing of American jobs.
  Mr. President I am a proud veteran who is honored to serve this great 
Nation. As long as I represent Virginians in the United States Senate, 
I will make it a priority to help protect our brave men and women in 
uniform.
  I am honored that the Senate Majority Leader has agreed to join with 
me to be a defender and advocate of our veterans. The Majority Leader 
has included the concepts of the bill I introduce today in his 
leadership bill designed to rebuild the United States military. 
Additionally, I plan to work closely with Veterans' Affairs Committee 
Chairman Akaka--and all of my Senate colleagues--to statutorily update 
G.I. benefits.
  Together we can provide the deserving veterans of the 9/11 era with 
the same program of benefits that our fathers and grandfathers received 
after World War II.
  Mr. President, I ask that the bill I introduce today--the Post-9/11 
Veterans Educational Assistance Act of 2007--be printed in the Record 
along with this statement.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 22

       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 ``Post-9/11 Veterans 
     Educational Assistance Act of 2007''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) On September 11, 2001, terrorists attacked the United 
     States, and the brave members of the Armed Forces of the 
     United States were called to the defense of the Nation.
       (2) Service on active duty in the Armed Forces has been 
     especially arduous for the members of the Armed Forces since 
     September 11, 2001.
       (3) The United States has a proud history of offering 
     educational assistance to millions of veterans, as 
     demonstrated by the many ``G.I. Bills'' enacted since World 
     War II. Educational assistance for veterans helps reduce the 
     costs of war, assist veterans in readjusting to civilian life 
     after wartime service, and boost the United States economy, 
     and has a positive effect on recruitment for the Armed 
     Forces.
       (4) The current educational assistance program for veterans 
     is outmoded and designed for peacetime service in the Armed 
     Forces.
       (5) The people of the United States greatly value military 
     service and recognize the difficult challenges involved in 
     readjusting to civilian life after wartime service in the 
     Armed Forces.
       (6) It is in the national interest for the United States to 
     provide veterans who served on active duty in the Armed 
     Forces after September 11, 2001, with enhanced educational 
     assistance benefits that are worthy of such service and are 
     commensurate with the educational assistance benefits 
     provided by a grateful Nation to veterans of World War II.

     SEC. 3. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE ARMED 
                   FORCES WHO SERVE AFTER SEPTEMBER 11, 2001.

       (a) Educational Assistance Authorized.--
       (1) In general.--Part III of title 38, United States Code, 
     is amended by inserting after chapter 32 the following new 
     chapter:

             ``CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

                       ``subchapter i--definitions

``Sec.
``3301. Definitions.

                 ``subchapter ii--educational assistance

``3311. Educational assistance for service in the Armed Forces after 
              September 11, 2001: entitlement.
``3312. Educational assistance: duration.
``3313. Educational assistance: payment; amount.
``3314. Tutorial assistance.
``3315. Licensing and certification tests.

               ``subchapter iii--administrative provisions

``3321. Time limitation for use of and eligibility for entitlement.
``3322. Bar to duplication of educational assistance benefits.
``3323. Administration.
``3324. Allocation of administration and costs.

                      ``SUBCHAPTER I--DEFINITIONS

     ``Sec. 3301. Definitions

       ``In this chapter:
       ``(1) The term `active duty' has the meaning given such 
     term in sections 101 and 3002(7) of this title and includes 
     the limitations specified in section 3002(6) of this title.
       ``(2) The terms `program of education', `Secretary of 
     Defense', and `Selected Reserve' have the meaning given such 
     terms in section 3002 of this title.

                ``SUBCHAPTER II--EDUCATIONAL ASSISTANCE

     ``Sec. 3311. Educational assistance for service in the Armed 
       Forces after September 11, 2001: entitlement

       ``(a) Entitlement.--Except as provided in subsection (c) 
     and subject to subsections (d) through (f), each individual 
     described in subsection (b) is entitled to educational 
     assistance under this chapter.
       ``(b) Covered Individuals.--An individual described in this 
     subsection is any individual as follows:
       ``(1) An individual who--
       ``(A) as of September 11, 2001, is a member of the Armed 
     Forces and has served an aggregate of at least two years of 
     active duty in the Armed Forces; and
       ``(B) after September 10, 2001--
       ``(i) serves at least 30 days of active duty in the Armed 
     Forces; or
       ``(ii) is discharged or released as described in subsection 
     (d)(1).
       ``(2) An individual who--
       ``(A) as of September 10, 2001, is a member of the Armed 
     Forces;
       ``(B) as of any date on or after September 11, 2001--
       ``(i) has served an aggregate of at least two years of 
     active duty in the Armed Forces; or
       ``(ii) before completion of service as described in clause 
     (i), is discharged or released as described in subsection 
     (d)(1); and
       ``(C) if described by subparagraph (B)(i), after September 
     11, 2001--
       ``(i) serves at least 30 days of active duty in the Armed 
     Forces; or
       ``(ii) is discharged or released as described in subsection 
     (d)(1).
       ``(3) An individual who--
       ``(A) on or after September 11, 2001, first becomes a 
     member of the Armed Forces or first enters on active duty as 
     a member of the Armed Forces and--
       ``(i) serves an aggregate of at least two years of active 
     duty in the Armed Forces; or

[[Page 120]]

       ``(ii) before completion of service as described in clause 
     (i), is discharged or released as described in subsection 
     (d);
       ``(B) before applying for benefits under this chapter, 
     completes the requirements of a secondary school diploma (or 
     equivalency certificate), or successfully completes (or 
     otherwise receives academic credit for) the equivalent of 12 
     semester hours in a program of education leading to a 
     standard college degree; and
       ``(C) after completion of the service described in 
     subparagraph (A)(i)--
       ``(i) continues on active duty;
       ``(ii) is discharged from active duty with an honorable 
     discharge;
       ``(iii) is released after service on active duty 
     characterized by the Secretary concerned as honorable service 
     and is placed on the retired list, is transferred to the 
     Fleet Reserve or Fleet Marine Corps Reserve, or is placed on 
     the temporary disability list; or
       ``(iv) is released from active duty for further service in 
     a reserve component of the Armed Forces after service on 
     active duty characterized by the Secretary concerned as 
     honorable service.
       ``(4) An individual who--
       ``(A) on or after September 11, 2001, first becomes a 
     member of the Armed Forces or first enters on active duty as 
     a member of the Armed Forces and--
       ``(i)(I) serves an aggregate of at least two years of 
     active duty in the Armed Forces characterized by the 
     Secretary concerned as honorable service; or
       ``(II) before completion of service as described in 
     subclause (I), is discharged or released as described in 
     subsection (d); and
       ``(ii) beginning within one year after completion of 
     service on active duty as described in clause (i)(I)--

       ``(I) serves at least four years of continuous active duty 
     in the Selected Reserve during which the individual 
     participates satisfactorily in training as required by the 
     Secretary concerned; or
       ``(II) during the four years described in subclause (I), is 
     discharged or released as described in subsection (d);

       ``(B) before applying for benefits under this chapter, 
     completes the requirements of a secondary school diploma (or 
     equivalency certificate), or successfully completes (or 
     otherwise receives academic credit for) the equivalent of 12 
     semester hours in a program of education leading to a 
     standard college degree; and
       ``(C) after completion of the service described in 
     subparagraph (A)--
       ``(i) is discharged from service with an honorable 
     discharge, is placed on the retired list, or is transferred 
     to the Standby Reserve or an element of the Ready Reserve 
     other than the Selected Reserve after service in the Selected 
     Reserve characterized by the Secretary concerned as honorable 
     service; or
       ``(ii) continues on active duty or in the Selected Reserve.
       ``(c) Exceptions.--The following individuals are not 
     entitled to educational assistance under this chapter:
       ``(1) An individual who, after September 11, 2001, receives 
     a commission as an officer in the Armed Forces upon 
     graduation from the United States Military Academy, the 
     United States Naval Academy, the United States Air Force 
     Academy, or the Coast Guard Academy.
       ``(2) An individual who, after September 11, 2001, receives 
     a commission as an officer in the Armed Forces upon 
     completion of a program of educational assistance under 
     section 2107 of title 10 if while participating in such 
     program such individual received an aggregate of $25,000 or 
     more for participation in such program.
       ``(d) Certain Discharge or Release Providing Exception From 
     Service Requirements.--A discharge or release described in 
     this subsection is a discharge or release (whether from 
     service on active duty in the Armed Forces under subsection 
     (b)(1)(B)(i), (b)(2)(B)(i), (b)(2)(C)(i), (b)(3)(A)(i), or 
     (b)(4)(A)(i)(I) or from service in the Selected Reserve under 
     subsection (b)(4)(A)(ii)(I)) for--
       ``(1) a service-connected disability;
       ``(2) a medical condition which preexisted such service and 
     which the Secretary determines is not service-connected;
       ``(3) hardship; or
       ``(4) a physical or mental condition that was not 
     characterized as a disability and did not result from the 
     individual's own willful misconduct but did interfere with 
     the individual's performance of duty, as determined by the 
     Secretary of each military department in accordance with 
     regulations prescribed by the Secretary of Defense.
       ``(e) Certain Interruption in Selected Reserve Service 
     Providing Exception From Service Requirement.--After an 
     individual begins service in the Selected Reserve as 
     described in subsection (b)(4)(A)(ii), the continuity of 
     service of the individual as a member of the Selected Reserve 
     shall not be considered to be broken--
       ``(1) by any period of time (not to exceed a maximum period 
     prescribed in regulations by the Secretary concerned) during 
     which the member is not able to locate a unit of the member's 
     Armed Force that the member is eligible to join or that has a 
     vacancy; or
       ``(2) by any other period of time (not to exceed a maximum 
     period so prescribed) during which the member is not attached 
     to a unit of the Selected Reserve that the Secretary 
     concerned, pursuant to regulations, considers to be 
     inappropriate to consider for such purpose.
       ``(f) Prohibition on Treatment of Certain Service as Period 
     of Active Duty.--A period of service shall not be considered 
     a part of the period of active duty on which an individual's 
     entitlement to educational assistance under this chapter is 
     based if the period of service is terminated because of a 
     defective enlistment and induction based on--
       ``(1) the individual's being a minor for purposes of 
     service in the Armed Forces;
       ``(2) an erroneous enlistment or induction; or
       ``(3) a defective enlistment agreement.

     ``Sec. 3312. Educational assistance: duration

       ``(a) In General.--Subject to section 3695 of this title 
     and subsection (b), an individual entitled to educational 
     assistance under section 3311 of this title is entitled to a 
     number of months of educational assistance under section 3313 
     of this title as follows:
       ``(1) In the case of an individual described by paragraph 
     (1) section 3311(b) of this title--
       ``(A) if the individual is described by subparagraph (B)(i) 
     of such paragraph, the aggregate number of months served by 
     the individual on active duty in the Armed Forces after 
     September 11, 2001; or
       ``(B) if the individual is described by subparagraph 
     (B)(ii) of such paragraph, 36 months.
       ``(2) In the case of an individual described by paragraph 
     (2) of section 3311(b) of this title--
       ``(A) if the individual is described by both subparagraphs 
     (B)(i) and (C)(i) of such paragraph, the aggregate number of 
     months served by the individual on active duty in the Armed 
     Forces after September 11, 2001; or
       ``(B) if the individual is described by subparagraph 
     (B)(ii) or (C)(ii) of such paragraph, 36 months.
       ``(3) In the case of an individual described by paragraph 
     (3) of section 3311(b) of this title--
       ``(A) if the individual is described by subparagraph (A)(i) 
     of such paragraph, the aggregate number of months served by 
     the individual on active duty in the Armed Forces after 
     September 11, 2001; or
       ``(B) if the individual is described by subparagraph 
     (A)(ii) of such paragraph--
       ``(i) if the discharge or release of the individual is 
     described by paragraph (1) of section 3311(d) of this title, 
     36 months; or
       ``(ii) if the discharge or release of the individual is 
     described by paragraph (2), (3), or (4) of section 3311(d) of 
     this title, the aggregate number of months served by the 
     individual on active duty in the Armed Forces after September 
     11, 2001.
       ``(4) In the case of an individual described by paragraph 
     (4) of section 3311(b) of this title--
       ``(A) if the individual is described by subparagraph (A)(i) 
     of such paragraph--
       ``(i) if the individual is further described by subclause 
     (I) of such subparagraph, 24 months;
       ``(ii) if the individual is further described by subclause 
     (II) of such subparagraph and has a discharge or release 
     described by paragraph (1) of section 3311(d) of this title, 
     36 months; or
       ``(iii) if the individual is further described by subclause 
     (II) of such subparagraph and has a discharge or release 
     described by paragraph (2), (3), of (4) of section 3311(d) of 
     this title, the aggregate number of months served by the 
     individual on active duty in the Armed Forces after September 
     11, 2001; and
       ``(B) if the individual is also described by subparagraph 
     (A)(ii) of such paragraph--
       ``(i) if the individual is further described by subclause 
     (I) of such subparagraph, an additional one month for each 
     four months served by the individual in the Selected Reserve 
     (other than any month in which the individual served on 
     active duty) after September 11, 2001; or
       ``(ii) if the individual is further described by subclause 
     (II) of such subparagraph and the individual--

       ``(I) has a discharge or release described by paragraph (1) 
     of section 3311(d) of this title, 12 months; or
       ``(II) has a discharge or release described by paragraph 
     (2), (3), or (4) of section 3311(d) of this title, an 
     additional one month for each four months served by the 
     individual in the Selected Reserve (other than any month in 
     which the individual served on active duty) after September 
     11, 2001.

       ``(b) Limitation.--Except as provided in section 3321(b)(2) 
     of this title, an individual may not receive educational 
     assistance under section 3313 of this title for a number of 
     months in excess of 36 months, which is the equivalent of 
     four academic years

     ``Sec. 3313. Educational assistance: payment; amount

       ``(a) Payment.--The Secretary shall pay to each individual 
     entitled to educational assistance under this chapter who is 
     pursuing an approved program of education (other than a 
     program covered by subsections (e) through (i)) the amounts 
     specified in subsection (c) to meet the expenses of such 
     individual's subsistence, tuition, fees, and other 
     educational costs for pursuit of such program of education.

[[Page 121]]

       ``(b) Approved Programs of Education.--Except as provided 
     in subsections (g) through (i), a program of education is an 
     approved program of education for purposes of this chapter if 
     the program of education is approved for purposes of chapter 
     30 of this title.
       ``(c) Amount of Educational Assistance.--(1) The amounts 
     payable under this subsection for pursuit of an approved 
     program of education are amounts as follows:
       ``(A) An amount equal to the established charges for the 
     program of education.
       ``(B) Subject to paragraph (2), an amount equal to the room 
     and board of the individual.
       ``(C) A monthly stipend in the amount of $1,000.
       ``(2) The amount payable under paragraph (1)(B) for room 
     and board of an individual may not exceed an amount equal to 
     the standard dormitory fee, or such equivalent fee as the 
     Secretary shall specify in regulations, which similarly 
     circumstanced nonveterans enrolled in the program of 
     education involved would be required to pay.
       ``(d) Frequency of Payment.--(1) Payment of the amounts 
     payable under subparagraphs (A) and (B) of subsection (c)(1) 
     for pursuit of a program of education shall be made in a 
     lump-sum amount for the entire quarter, semester, or term, as 
     applicable, of the program of education before the 
     commencement of such quarter, semester, or term.
       ``(2) Payment of the amount payable under subparagraph (C) 
     of subsection (c)(1) for pursuit of a program of education 
     shall be made on a monthly basis.
       ``(3) The Secretary shall prescribe in regulations methods 
     for determining the number of months (including fractions 
     thereof) of entitlement of an individual to educational 
     assistance this chapter that are chargeable under this 
     chapter for an advance payment of amounts for pursuit of a 
     program of education on a quarter, semester, term, or other 
     basis.
       ``(e) Programs of Education Pursued on Active Duty.--(1) 
     Educational assistance is payable under this chapter for 
     pursuit of an approved program of education while on active 
     duty.
       ``(2) The amount of educational assistance payable under 
     this chapter to an individual pursuing a program of education 
     while on active duty is the lesser of--
       ``(A) the established charges which similarly circumstanced 
     nonveterans enrolled in the program of education involved 
     would be required to pay; or
       ``(B) the amount of the charges of the educational 
     institution as elected by the individual in the manner 
     specified in section 3014(b)(1) of this title.
       ``(3) Payment of the amount payable under paragraph (2) for 
     pursuit of a program of education shall be made in a lump-sum 
     amount for the entire quarter, semester, or term, as 
     applicable, of the program of education before the 
     commencement of such quarter, semester, or term.
       ``(4) For each month (as determined pursuant to the methods 
     prescribed under subsection (c)(3)) for which amounts are 
     paid an individual under this subsection, the entitlement of 
     the individual to educational assistance under this chapter 
     shall be charged at the rate of one month for each such 
     month.
       ``(f) Programs of Education Pursued on Less Than Half-Time 
     Basis.--(1) Educational assistance is payable under this 
     chapter for pursuit of an approved program of education on 
     less than half-time basis.
       ``(2) The amount of educational assistance payable under 
     this chapter to an individual pursuing a program of education 
     on less than half-time basis is the established charges which 
     similarly circumstanced nonveterans enrolled in the program 
     of education involved would be required to pay.
       ``(3) Payment of the amount payable under this chapter to 
     an individual for pursuit of a program of education on less 
     than half-time basis shall be made in a lump-sum, and shall 
     be made not later than the last day of the month immediately 
     following the month in which certification is received from 
     the educational institution involved that the individual has 
     enrolled in and is pursuing a program of education at the 
     institution.
       ``(4) For each month (as determined pursuant to the methods 
     prescribed under subsection (c)(3)) for which amounts are 
     paid an individual under this subsection, the entitlement of 
     the individual to educational assistance under this chapter 
     shall be charged at a percentage of a month equal to--
       ``(A) the number of course hours borne by the individual in 
     pursuit of the program of education involved, divided by
       ``(B) the number of course hours for full-time pursuit of 
     such program of education.
       ``(g) Apprenticeship or Other On-Job Training.--(1) 
     Educational assistance is payable under this chapter for 
     full-time pursuit of a program of apprenticeship or other on-
     job training described in paragraphs (1) and (2) of section 
     3687(a) of this title.
       ``(2)(A) The educational assistance payable under this 
     chapter to an individual for pursuit of a program of 
     apprenticeship or training referred to in paragraph (1) is 
     the amounts as follows:
       ``(i) The established charge which similarly circumstances 
     nonveterans enrolled in the program would be required to pay.
       ``(ii) A monthly stipend in the amount of $1,000.
       ``(B) The nature and amount of the tuition, fees, and other 
     expenses constituting the established charge for a program of 
     apprenticeship or training under this subsection shall be 
     determined in accordance with regulations prescribed by the 
     Secretary. Such expenses may include room and board under 
     such circumstances as the Secretary shall prescribe in the 
     regulations.
       ``(3)(A) Payment of the amount payable under paragraph 
     (2)(A)(i) for pursuit of a program of apprenticeship or 
     training shall be made, at the election of the Secretary--
       ``(i) in a lump sum for such period of the program as the 
     Secretary shall determine before the commencement of such 
     period of the program; or
       ``(ii) on a monthly basis.
       ``(B) Payment of the amount payable under paragraph 
     (2)(A)(ii) for pursuit of a program of apprenticeship or 
     training shall be made on a monthly basis.
       ``(4) For each month (as determined pursuant to the methods 
     prescribed under subsection (c)(3) in the case of payments 
     made in accordance with paragraph (3)(A)(i)) for which 
     amounts are paid an individual under this subsection, the 
     entitlement of the individual to educational assistance under 
     this chapter shall be charged at the rate of one month for 
     each such month.
       ``(h) Programs of Education by Correspondence.--(1) 
     Educational assistance is payable under this chapter for 
     pursuit of a program of education exclusively by 
     correspondence.
       ``(2)(A) The amount of educational assistance payable under 
     this chapter to an individual who is pursuing a program of 
     education exclusively by correspondence is an amount equal to 
     55 percent of the established charge which similarly 
     circumstanced nonveterans enrolled in the program of 
     education would be required to pay.
       ``(B) In this paragraph, the term `established charge', in 
     the case of a program of education, means the lesser of--
       ``(i) the charge for the course or courses under the 
     program of education, as determined on the basis of the 
     lowest extended time payment plan offered by the institution 
     involved and approved by the appropriate State approving 
     agency; or
       ``(ii) the actual charge to the individual for such course 
     or courses.
       ``(3) Payment of the amount payable under this chapter for 
     pursuit of a program of education by correspondence shall be 
     made quarterly on a pro rata basis for the lessons completed 
     by the individual and serviced by the institution involved.
       ``(4) For each month (as determined pursuant to the methods 
     prescribed under subsection (c)(3)) for which amounts are 
     paid an individual under this subsection, the entitlement of 
     the individual to educational assistance under this chapter 
     shall be charged at the rate of one month for each such 
     month.
       ``(i) Flight Training.--(1) Educational assistance is 
     payable under this chapter for a program of education 
     consisting of flight training as follows:
       ``(A) Courses of flight training approved under section 
     3860A(b) of this title.
       ``(B) Flight training meeting the requirements of section 
     3034(d) of this title.
       ``(2) Paragraphs (2) and (4) of section 3032(e) of this 
     title shall apply with respect to the availability of 
     educational assistance under this chapter for pursuit of 
     flight training covered by paragraph (1).
       ``(3)(A) The educational assistance payable under this 
     chapter to an individual for pursuit of a program of 
     education consisting of flight training covered by paragraph 
     (1) is the amounts as follows:
       ``(i) The established charge which similarly circumstances 
     nonveterans enrolled in the program would be required to pay.
       ``(ii) A monthly stipend in the amount of $1,000.
       ``(B) The nature and amount of the tuition, fees, and other 
     expenses constituting the established charge for a program of 
     flight training under this subsection shall be determined in 
     accordance with regulations prescribed by the Secretary.
       ``(4) Payment of the amounts payable under paragraph (3) 
     for pursuit of a program of flight training shall be made on 
     a monthly basis.
       ``(5) For each month for which amounts are paid an 
     individual under this subsection, the entitlement of the 
     individual to educational assistance under this chapter shall 
     be charged at the rate of one month for each such month.
       ``(j) Established Charges Defined.--(1) In subsections (c) 
     and (e), the term `established charges', in the case of a 
     program of education, means the actual charges (as determined 
     pursuant to regulations prescribed by the Secretary) for 
     tuition, fees (including required supplies, books, and 
     equipment), and other educational costs which similarly 
     circumstanced nonveterans enrolled in the program of 
     education would be required to pay.
       ``(2) Established charges shall be determined for purposes 
     of this subsection on the following basis:
       ``(A) In the case of an individual enrolled in a program of 
     education offered on a term, quarter, or semester basis, the 
     tuition and fees charged the individual for the term, 
     quarter, or semester.

[[Page 122]]

       ``(B) In the case of an individual enrolled in a program of 
     education not offered on a term, quarter, or semester basis, 
     the tuition and fees charged the individual for the entire 
     program of education.

     ``Sec. 3314. Tutorial assistance

       ``(a) In General.--Subject to subsection (b), an individual 
     entitled to educational assistance under this chapter shall 
     also be entitled to benefits provided an eligible veteran 
     under section 3492 of this title.
       ``(b) Conditions.--(1) The provision of benefits under 
     subsection (a) shall be subject to the conditions applicable 
     to an eligible veteran under section 3492 of this title.
       ``(2) In addition to the conditions specified in paragraph 
     (1), benefits may not be provided to an individual under 
     subsection (a) unless the professor or other individual 
     teaching, leading, or giving the course for which such 
     benefits are provided certifies that--
       ``(A) such benefits are essential to correct a deficiency 
     of the individual in such course; and
       ``(B) such course is required as a part of, or is 
     prerequisite or indispensable to the satisfactory pursuit of, 
     an approved program of education.
       ``(c) Amount.--(1) The amount of benefits described in 
     subsection (a) that are payable under this section may not 
     exceed $100 per month, for a maximum of 12 months, or until a 
     maximum of $1,200 is utilized.
       ``(2) The amount provided an individual under this 
     subsection is in addition to the amounts of educational 
     assistance paid the individual under section 3313 of this 
     title.
       ``(d) No Charge Against Entitlement.--Any benefits provided 
     an individual under subsection (a) are in addition to any 
     other educational assistance benefits provided the individual 
     under this chapter.

     ``Sec. 3315. Licensure and certification tests

       ``(a) In General.--An individual entitled to educational 
     assistance under this chapter shall also be entitled to 
     payment for one licensing or certification test described in 
     section 3452(b) of this title.
       ``(b) Limitation on Amount.--The amount payable under 
     subsection (a) for a licensing or certification test may not 
     exceed the lesser of--
       ``(1) $2,000; or
       ``(2) the fee charged for the test.
       ``(c) No Charge Against Entitlement.--Any amount paid an 
     individual under subsection (a) is in addition to any other 
     educational assistance benefits provided the individual under 
     this chapter.

              ``SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

     ``Sec. 3321. Time limitation for use of and eligibility for 
       entitlement

       ``(a) In General.--(1) Except as otherwise provided in this 
     section, the period during which an individual entitled to 
     educational assistance under this chapter may use such 
     individual's entitlement expires at the end of the 15-year 
     period beginning on the date of such individual's last 
     discharge or release from active duty.
       ``(2) In the case of an individual described in paragraph 
     (1) who becomes entitled to educational assistance under this 
     chapter under section 3311(b)(4) of this title, the 15-year 
     period described in paragraph (1) shall begin on the later 
     of--
       ``(A) the date of such individual's last discharge or 
     release from active duty; or
       ``(B) the date on which the four-year requirement described 
     in section 3311(b)(4)(A)(ii) of this title is met.
       ``(b) Exceptions.--(1) Subsections (b), (c), and (d) of 
     section 3031 of this title shall apply with respect to the 
     running of the 15-year period described in subsection (a) of 
     this section in the same manner as such subsections apply 
     under section 3031 of this title with respect to the running 
     of the 10-year period described in section 3031(a) of this 
     title.
       ``(2) Section 3031(f) of this title shall apply with 
     respect to the termination of an individual's entitlement to 
     educational assistance under this chapter in the same manner 
     as such section applies to the termination of an individual's 
     entitlement to educational assistance under chapter 30 of 
     this title, except that, in the administration of such 
     section for purposes of this chapter, the reference to 
     section 3013 of this title shall be deemed to be a reference 
     to 3312 of this title.
       ``(3) For purposes of subsection (a), an individual's last 
     discharge or release from active duty shall not include any 
     discharge or release from a period of active duty of less 
     than 90 days of continuous service, unless the individual is 
     discharged or released as described in paragraph (1), (2), or 
     (3) of section 3311(d) of this title.

     ``Sec. 3322. Bar to duplication of educational assistance 
       benefits

       ``(a) In General.--An individual entitled to educational 
     assistance under this chapter who is also eligible for 
     educational assistance under chapter 30, 31, 32, or 35 of 
     this title, chapter 107, 1606, or 1607 of title 10, or the 
     provisions of the Hostage Relief Act of 1980 (Public Law 96-
     449; 5 U.S.C. 5561 note) may not receive assistance under two 
     or more such programs concurrently, but shall elect (in such 
     form and manner as the Secretary may prescribe) under which 
     chapter or provisions to receive educational assistance.
       ``(b) Inapplicability of Service Treated Under Educational 
     Loan Repayment Programs.--A period of service counted for 
     purposes of repayment of an education loan under chapter 109 
     of title 10 may not be counted as a period of service for 
     entitlement to educational assistance under this chapter.
       ``(c) Service in Selected Reserve.--An individual who 
     serves in the Selected Reserve may receive credit for such 
     service under only one of this chapter, chapter 30 of this 
     title, and chapters 1606 and 1607 of title 10, and shall 
     elect (in such form and manner as the Secretary may 
     prescribe) under which chapter such service is to be 
     credited.
       ``(d) Additional Coordination Matters.--In the case of an 
     individual entitled to educational assistance under chapter 
     30, 31, 32, or 35 of this title, chapter 107, 1606, or 1607 
     of title 10, or the provisions of the Hostage Relief Act of 
     1980, or making contributions toward entitlement to 
     educational assistance under chapter 30 of this title, as of 
     the date of the enactment of the Post-9/11 Veterans 
     Educational Assistance Act of 2007, coordination of 
     entitlement to educational assistance under this chapter, on 
     the one hand, and such chapters or provisions, on the other, 
     shall be governed by the provisions of section 3(c) of the 
     Post-9/11 Veterans Educational Assistance Act of 2007.

     ``Sec. 3323. Administration

       ``(a) In General.--(1) Except as otherwise provided in this 
     chapter, the provisions specified in section 3034(a)(1) of 
     this title shall apply to the provision of educational 
     assistance under this chapter.
       ``(2) In applying the provisions referred to in paragraph 
     (1) to an individual entitled to educational assistance under 
     this chapter for purposes of this section, the reference in 
     such provisions to the term `eligible veteran' shall be 
     deemed to refer to an individual entitled to educational 
     assistance under this chapter.
       ``(3) In applying section 3474 of this title to an 
     individual entitled to educational assistance under this 
     chapter for purposes of this section, the reference in such 
     section 3474 to the term `educational assistance allowance' 
     shall be deemed to refer to educational assistance payable 
     under section 3313 of this title.
       ``(4) In applying section 3482(g) of this title to an 
     individual entitled to educational assistance under this 
     chapter for purposes of this section--
       ``(A) the first reference to the term `educational 
     assistance allowance' in such section 3482(g) shall be deemed 
     to refer to educational assistance payable under section 3313 
     of this title; and
       ``(B) the first sentence of paragraph (1) of such section 
     3482(g) shall be applied as if such sentence ended with 
     `equipment'.
       ``(b) Information on Benefits.--(1) The Secretary of 
     Veterans Affairs shall provide the information described in 
     paragraph (2) to each member of the Armed Forces at such 
     times as the Secretary of Veterans Affairs and the Secretary 
     of Defense shall jointly prescribe in regulations.
       ``(2) The information described in this paragraph is 
     information on benefits, limitations, procedures, eligibility 
     requirements (including time-in-service requirements), and 
     other important aspects of educational assistance under this 
     chapter, including application forms for such assistance 
     under section 5102 of this title.
       ``(3) The Secretary of Veterans Affairs shall furnish the 
     information and forms described in paragraph (2), and other 
     educational materials on educational assistance under this 
     chapter, to educational institutions, training 
     establishments, military education personnel, and such other 
     persons and entities as the Secretary considers appropriate.
       ``(c) Regulations.--(1) The Secretary shall prescribe 
     regulations for the administration of this chapter.
       ``(2) Any regulations prescribed by the Secretary of 
     Defense for purposes of this chapter shall apply uniformly 
     across the Armed Forces.

     ``Sec. 3324. Allocation of administration and costs

       ``(a) Administration.--Except as otherwise provided in this 
     chapter, the Secretary shall administer the provision of 
     educational assistance under this chapter.
       ``(b) Costs.--Payments for entitlement to educational 
     assistance earned under this chapter shall be made from funds 
     appropriated to, or otherwise made available to, the 
     Department of Veterans Affairs for the payment of 
     readjustment benefits.''.
       (2) Clerical amendments.--The tables of chapters at the 
     beginning of title 38, United States Code, and at the 
     beginning of part III of such title, are each amended by 
     inserting after the item relating to chapter 32 the following 
     new item:

``33. Post-9/11 Educational Assistance......................3301''.....

       (b) Conforming Amendments.--
       (1) Amendments relating to duplication of benefits.--
       (A) Section 3033 of title 38, United States Code, is 
     amended--
       (i) in subsection (a)(1), by inserting ``33,'' after 
     ``32,''; and
       (ii) in subsection (c), by striking ``both the program 
     established by this chapter and the

[[Page 123]]

     program established by chapter 106 of title 10'' and 
     inserting ``two or more of the programs established by this 
     chapter, chapter 33 of this title, and chapters 1606 and 1607 
     of title 10''.
       (B) Paragraph (4) of section 3695(a) of such title is 
     amended to read as follows:
       ``(4) Chapters 30, 32, 33, 34, 35, and 36 of this title.''.
       (C) Section 16163(e) of title 10, United States Code, is 
     amended by inserting ``33,'' after ``32,''.
       (2) Additional conforming amendments.--
       (A) Title 38, United States Code, is further amended by 
     inserting ``33,'' after ``32,'' each place it appears in the 
     following provisions:
       (i) In subsections (b) and (e)(1) of section 3485.
       (ii) In section 3688(b).
       (iii) In subsections (a)(1), (c)(1), (c)(1)(G), (d), and 
     (e)(2) of section 3689.
       (iv) In section 3690( b)(3)(A).
       (v) In subsections (a) and (b) of section 3692.
       (vi) In section 3697(a).
       (B) Section 3697A(b)(1) of such title is amended by 
     striking ``or 32'' and inserting ``32, or 33''.
       (c) Applicability to Individuals Under Montgomery GI Bill 
     Program.--
       (1) Individuals eligible to elect participation in post-9/
     11 educational assistance.--An individual may elect to 
     receive educational assistance under chapter 33 of title 38, 
     United States Code (as added by subsection (a)), if such 
     individual--
       (A) as of the date of the enactment of this Act--
       (i) is entitled to basic educational assistance under 
     chapter 30 of title 38, United States Code, and has used, but 
     retains unused, such entitlement under that chapter;
       (ii) is entitled to educational assistance under chapter 
     107, 1606, or 1607 of title 10, United States Code, and has 
     used, but retains unused, such entitlement under the 
     applicable chapter;
       (iii) is entitled to basic educational assistance under 
     chapter 30 of title 38, United States Code, but has not used 
     any such entitlement under that chapter;
       (iv) is entitled to educational assistance under chapter 
     107, 1606, or 1607 of title 10, United States Code, and has 
     not used any such entitlement under such chapter;
       (v) is a member of the Armed Forces who is eligible for 
     receipt of basic educational assistance under chapter 30 of 
     title 38, United States Code, and is making contributions 
     toward such assistance under section 3011(b) or 3012(c) of 
     such title; or
       (vi) is a member of the Armed Forces who is not entitled to 
     basic educational assistance under chapter 30 of title 38, 
     United States Code, by reason of an election under section 
     3011(c)(1) or 3012(d)(1) of such title; and
       (B) as of the date of the individual's election under this 
     paragraph--
       (i) otherwise meets the requirements for entitlement to 
     educational assistance under chapter 33 of title 38, United 
     States Code (as so added); or
       (ii) is making progress toward meeting such requirements.
       (2) Election on treatment of transferred entitlement.--
       (A) Election.--If, on the date an individual described in 
     subparagraph (A)(i) or (A)(iii) of paragraph (1) makes an 
     election under that paragraph, a transfer of the entitlement 
     of the individual to basic educational assistance under 
     section 3020 of title 38, United States Code, is in effect 
     and a number of months of the entitlement so transferred 
     remain unutilized, the individual may elect to revoke all or 
     a portion of the entitlement so transferred that remains 
     unutilized.
       (B) Availability of revoked entitlement.--Any entitlement 
     revoked by an individual under this paragraph shall no longer 
     be available to the dependent to whom transferred, but shall 
     be available to the individual instead for educational 
     assistance under chapter 33 of title 38, United States Code 
     (as so added), as provided in paragraph (3)(B).
       (C) Availability of unrevoked entitlement.--Any entitlement 
     described in subparagraph (A) that is not revoked by an 
     individual in accordance with that subparagraph shall remain 
     available to the eligible dependent or dependents concerned 
     in accordance with the current transfer of such entitlement 
     under section 3020 of title 38, United States Code.
       (3) Post-9/11 educational assistance.--
       (A) In general.--Subject to subparagraph (B), an individual 
     making an election under paragraph (1) shall be entitled to 
     educational assistance under chapter 33 of title 38, United 
     States Code (as so added), in accordance with the provisions 
     of such chapter, instead of basic educational assistance 
     under chapter 30 of title 38, United States Code, or 
     educational assistance under chapter 107, 1606, or 1607 of 
     title 10, United States Code, as applicable.
       (B) Limitation on entitlement for certain individuals.--In 
     the case of an individual making an election under paragraph 
     (1) who is described by subparagraph (A)(i), the number of 
     months of entitlement of such individual to educational 
     assistance under chapter 33 of title 38, United States Code 
     (as so added), shall be the number of months equal to the 
     number of months of unused entitlement of such individual 
     under chapter 30 of title 38, United States Code, as of the 
     date of the election, including any number of months 
     entitlement revoked by the individual under paragraph (2)(A).
       (4) Continuing educational assistance under montgomery gi 
     bill.--
       (A) In general.--If the aggregate amount of entitlement to 
     educational assistance under chapter 33 of title 38, United 
     States Code (as so added), that is accumulated by an 
     individual described in subparagraph (A)(i), (A)(ii), or 
     (A)(iii) of paragraph (1) who makes an election under that 
     paragraph is less than 36 months, the individual shall 
     retain, and may utilize, any unutilized entitlement of the 
     individual to educational assistance under chapter 30 of 
     title 38, United States Code, or chapter 107, 1606, or 1607 
     of title 10, United States Code, as applicable, for a number 
     of months equal to the lesser of--
       (i) 36 months minus the number of months of entitlement so 
     accumulated by the individual; or
       (ii) the number of months of such unutilized entitlement of 
     the individual.
       (B) Utilization of retained entitlement.--The utilization 
     of entitlement retained by an individual under this paragraph 
     shall be governed by the provisions of chapter 30 of title 
     38, United States Code, or chapter 107, 1606, or 1607 of 
     title 10, United States Code, as applicable.
       (5) Treatment of contributions toward basic educational 
     assistance.--
       (A) Refund of contributions.--Except as provided in 
     subparagraph (B), the Secretary of Veterans Affairs shall pay 
     to each individual making an election under paragraph (1) who 
     is described by clause (i), (iii), or (v) of subparagraph (A) 
     of that paragraph an amount equal to the total amount of 
     contributions made by such individual under subchapter II of 
     chapter 30 of title 38, United States Code, for basic 
     educational assistance under that chapter, including any 
     contributions made under subsection (b) or (e) of section 
     3011 of such title or any contributions made under subsection 
     (c) or (f) of section 3012 of such title.
       (B) Exception.--In the case of an individual described by 
     subparagraph (A) who is entitled to basic educational 
     assistance under chapter 30 of title 38, United States Code, 
     by reason of paragraph (4)(A), the amount payable to the 
     individual under this paragraph shall be an amount equal to--
       (i) the amount otherwise payable to the individual under 
     subparagraph (A), multiplied by
       (ii) a fraction--

       (I) the numerator of which is the number equal to the 
     number of months of basic educational assistance under 
     chapter 30 of title 38, United States Code, to which the 
     individual is entitled by reason of paragraph (4)(A); and
       (II) the denominator of which is 36.

       (C) Cessation of contributions.--Effective as of the first 
     month beginning on or after the date of an election under 
     paragraph (1) of an individual described by subparagraph 
     (A)(v) of that paragraph, the obligation of such individual 
     to make contributions under section 3011(b) or 3012(c) of 
     title 38, United States Code, as applicable, shall cease, and 
     the requirements of such section shall be deemed to be no 
     longer applicable to such person.
       (6) Termination of entitlement under montgomery gi bill.--
     Except as otherwise provided in paragraph (4), effective on 
     the last day of the month in which an individual makes an 
     election under paragraph (1), the entitlement, if any, of the 
     individual to basic educational assistance under chapter 30 
     of title 38, United States Code, or educational assistance 
     under chapter 107, 1606, or 1607 of title 10, United States 
     Code, as applicable, shall terminate.
       (7) Irrevocability of elections.--An election under 
     paragraph (1) or (2)(A) is irrevocable.
                                 ______
                                 
      By Mr. HARKIN (for himself, Mr. Lugar, Mr. Dorgan, Mr. Biden, and 
        Mr. Obama):
  S. 23. A bill to promote renewable fuel and energy security of the 
United States, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Mr. HARKIN. Mr. President, over the past several years, our national 
energy security has deteriorated rapidly. Petroleum and natural gas 
prices have gone up and appear to be staying up. Almost daily, we hear 
projections of increases in electricity prices around the country. The 
environmental impacts of energy use, especially from autos and power 
plants, are still a major health concern. The evidence of climate 
change is absolutely clear and very ominous, especially in the 
disappearance of glaciers, the break up of polar ice sheets and the 
increasing intensity of storms. We know that combustion of fossil fuels 
is the primary contributor of the anthropogenic greenhouse gases

[[Page 124]]

emissions that drive this global warming. Despite these negative 
consequences, our dependence on petroleum is rising steadily, and we 
are importing over 60 percent of that petroleum from foreign sources, 
many of whom are politically unstable or unfriendly to the United 
States. In short, we need to initiate a major transition of our energy 
sector, to one that is far more efficient, is much less reliant on 
fossil fuels and imported oil, and is utilizing vastly more 
domestically produced renewable energy.
  We have seen waxing and waning concerns about our national energy 
economy now for over 30 years. Many of us have believed all along that 
we should be doing more to promote energy efficiency and to accelerate 
the development and use of clean, domestic renewable energy, but during 
most of that time, cheap energy supplies have lulled us into relatively 
minimal actions. Over the past three years, however, there has been an 
increasingly acute awareness of the dire nature of our overall energy 
situation. It is now clear that our energy situation is a serious 
threat not only to our economy but to our national security. We can no 
longer postpone action.
  Today I am joined by my esteemed colleagues, Senator Lugar of 
Indiana, Senator Dorgan of North Dakota, Senator Biden of Delaware, and 
Senator Obama of Illinois, in introducing the Biofuels Security Act of 
2007. This bill directly addresses one of the most critical pieces of a 
sound national energy transition policy. It charts a clear path forward 
for significantly increasing our national use of renewable fuels over 
the next 24 years, reaching a total of 30 billion gallons per year by 
2020, and 60 billion gallons per year by 2030. That latter figure 
represents about one-third of our nation's current annual fuel use for 
highway transportation. The production of the two most common forms of 
biofuels, ethanol and biodiesel, is expanding rapidly. We have reason 
to believe that this provision will provide strong impetus to 
increasing biofuels' production and use because it is an extension of 
the renewable fuels standard that I promoted in the Energy Policy Act 
of 2005. That standard mandates using a total of 7.5 billion gallons of 
renewable fuels by 2012, and already we are on a path to exceed that 
requirement by 2008. Thus, we can be very optimistic about the success 
of setting these longer term and more aggressive targets.
  This bill also will ensure that the vehicles to use these renewable 
fuels are readily available by requiring auto manufacturers over time 
to produce and sell increasing numbers of dual-fuel vehicles--that is, 
vehicles that can be fueled by gasoline or gasoline/ethanol blends. 
Because the turnover of vehicles on the highway takes many years, our 
bill requires the fraction of dual-fuel vehicles to increase from 10 
percent in 2008 up to 100 percent in 2017 and beyond. In order to 
assure availability of alternative fuels, our bill requires 
installation of increasing numbers of E-85 pumps by major oil companies 
at fueling stations that they own or license under their brand. These 
pumps will dispense E-85, a blend of 85 percent ethanol and 15 percent 
gasoline, which is a very popular renewable fuel because of its high 
ethanol content. The bill will require 50 percent of such owned and 
licensed stations to have pumps dispensing E-85 fuel by 2017. In 
addition, the bill includes a clause to ensure geographic distribution 
of such E-85 marketing stations.
  Today I urge my Senate colleagues to join us in taking action to 
boost the transition to a cleaner, more resilient, and more secure 
energy economy. I request support for this bill and its rapid 
enactment.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 23

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Biofuels 
     Security Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                        TITLE I--RENEWABLE FUELS

Sec. 101. Renewable fuel program.
Sec. 102. Installation of E-85 fuel pumps by major oil companies at 
              owned stations and branded stations.
Sec. 103. Minimum Federal fleet requirement.
Sec. 104. Application of Gasohol Competition Act of 1980.

                   TITLE II--DUAL FUELED AUTOMOBILES

Sec. 201. Requirement to manufacture dual fueled automobiles.
Sec. 202. Manufacturing incentives for dual fueled automobiles.

                        TITLE I--RENEWABLE FUELS

     SEC. 101. RENEWABLE FUEL PROGRAM.

       Section 211(o)(2) of the Clean Air Act (42 U.S.C. 
     7545(o)(2)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Applicable volume.--
       ``(i) In general.--For the purpose of subparagraph (A), the 
     applicable volume for calendar year 2010 and each calendar 
     year thereafter shall be determined, by rule, by the 
     Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Energy, in a manner that 
     ensures that--

       ``(I) the requirements described in clause (ii) for 
     specified calendar years are met; and
       ``(II) the applicable volume for each calendar year not 
     specified in clause (ii) is determined on an annual basis.

       ``(ii) Requirements.--The requirements referred to in 
     clause (i) are--

       ``(I) for calendar year 2010, at least 10,000,000,000 
     gallons of renewable fuel;
       ``(II) for calendar year 2020, at least 30,000,000,000 
     gallons of renewable fuel; and
       ``(III) for calendar year 2030, at least 60,000,000,000 
     gallons of renewable fuel.''.

     SEC. 102. INSTALLATION OF E-85 FUEL PUMPS BY MAJOR OIL 
                   COMPANIES AT OWNED STATIONS AND BRANDED 
                   STATIONS.

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

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

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

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

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

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

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

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

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

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

  2017 and each calendar year thereafter........................50.....

       ``(D) Geographic distribution.--
       ``(i) In general.--Subject to clause (ii), in promulgating 
     regulations under subparagraph (B), the Secretary shall 
     ensure that each major oil company described in subparagraph 
     (B) installs or otherwise makes available 1 or more pumps 
     that dispense E-85 fuel at not less than a minimum percentage 
     (specified in the regulations) of the wholly-owned stations 
     and the branded stations of the major oil company in each 
     State.
       ``(ii) Requirement.--In specifying the minimum percentage 
     under clause (i), the Secretary shall ensure that each major 
     oil company installs or otherwise makes available 1 or more 
     pumps described in that clause in each State in which the 
     major oil company operates.

[[Page 125]]

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

     SEC. 103. MINIMUM FEDERAL FLEET REQUIREMENT.

       Section 303(b)(1) of the Energy Policy Act of 1992 (42 
     U.S.C. 13212(b)(1)) is amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by striking ``fiscal year 1999 and 
     thereafter,'' and inserting ``each of fiscal years 1999 
     through 2007; and''; and
       (3) by inserting after subparagraph (D) the following:
       ``(E) 100 percent in fiscal year 2008 and thereafter,''.

     SEC. 104. APPLICATION OF GASOHOL COMPETITION ACT OF 1980.

       Section 26 of the Clayton Act (15 U.S.C. 26a) is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by inserting after subsection (b) the following:
       ``(c) For purposes of subsection (a), restricting the right 
     of a franchisee to install on the premises of that franchisee 
     a renewable fuel pump, such as one that dispenses E85, shall 
     be considered an unlawful restriction.''; and
       (3) in subsection (d) (as redesignated by paragraph (1))--
       (A) by striking ``section,'' and inserting the following: 
     ``section--
       ``(1) the term'';
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following:
       ``(2) the term `gasohol' includes any blend of ethanol and 
     gasoline such as E-85.''.

                   TITLE II--DUAL FUELED AUTOMOBILES

     SEC. 201. REQUIREMENT TO MANUFACTURE DUAL FUELED AUTOMOBILES.

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

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

       ``(a) Requirement.--Each manufacturer of new automobiles 
     that are capable of operating on gasoline or diesel fuel 
     shall ensure that the percentage of such automobiles, 
     manufactured in any model year after model year 2007 and 
     distributed in commerce for sale in the United States, which 
     are dual fueled automobiles is equal to not less than the 
     applicable percentage set forth in the following table:

           The percentage of dual fueled automobiles manufactured shall
``For each of the following model years:             be not less than: 
  2008..........................................................10 ....

  2009..........................................................20 ....

  2010..........................................................30 ....

  2011..........................................................40 ....

  2012..........................................................50 ....

  2013..........................................................60 ....

  2014..........................................................70 ....

  2015..........................................................80 ....

  2016..........................................................90 ....

  2017 and beyond..............................................100.....

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

``32902A. Requirement to manufacture dual fueled automobiles.''.
       (b) Activities to Promote the Use of Certain Alternative 
     Fuels.--The Secretary of Transportation shall carry out 
     activities to promote the use of fuel mixtures containing 
     gasoline or diesel fuel and 1 or more alternative fuels, 
     including a mixture containing at least 85 percent of 
     methanol, denatured ethanol, and other alcohols by volume 
     with gasoline or other fuels, to power automobiles in the 
     United States.

     SEC. 202. MANUFACTURING INCENTIVES FOR DUAL FUELED 
                   AUTOMOBILES.

       Section 32905(b) of title 49, United States Code, is 
     amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' before ``Except'';
       (3) by striking ``model years 1993-2010'' and inserting 
     ``model year 1993 through the first model year beginning not 
     less than 18 months after the date of enactment of the 
     Biofuels Security Act of 2007''; and
       (4) by adding at the end the following:
       ``(2) Except as provided in paragraph (5), subsection (d), 
     or section 32904(a)(2), the Administrator shall measure the 
     fuel economy for each model of dual fueled automobiles 
     manufactured by a manufacturer in the first model year 
     beginning not less than 30 months after the date of enactment 
     of the Biofuels Security Act of 2007 by dividing 1.0 by the 
     sum of--
       ``(A) 0.7 divided by the fuel economy measured under 
     section 32904(c) when operating the model on gasoline or 
     diesel fuel; and
       ``(B) 0.3 divided by the fuel economy measured under 
     subsection (a) when operating the model on alternative fuel.
       ``(3) Except as provided in paragraph (5), subsection (d), 
     or section 32904(a)(2), the Administrator shall measure the 
     fuel economy for each model of dual fueled automobiles 
     manufactured by a manufacturer in the first model year 
     beginning not less than 42 months after the date of enactment 
     of the Biofuels Security Act of 2007 by dividing 1.0 by the 
     sum of--
       ``(A) 0.9 divided by the fuel economy measured under 
     section 32904(c) when operating the model on gasoline or 
     diesel fuel; and
       ``(B) 0.1 divided by the fuel economy measured under 
     subsection (a) when operating the model on alternative fuel.
       ``(4) Except as provided in subsection (d) or section 
     32904(a)(2), the Administrator shall measure the fuel economy 
     for each model of dual fueled automobiles manufactured by a 
     manufacturer in each model year beginning not less than 54 
     months after the date of enactment of the Biofuels Security 
     Act of 2007 in accordance with section 32904(c).
       ``(5) Notwithstanding paragraphs (2) through (4), the fuel 
     economy for all dual fueled automobiles manufactured to 
     comply with the requirements under section 32902A(a), 
     including automobiles for which dual fueled automobile 
     credits have been used or traded under section 32902A(b), 
     shall be measured in accordance with section 32904(c).''.
                                 ______
                                 
      By Mrs. BOXER (for herself, Mr. Feinstein, and Mr. Lautenberg):
  S. 24. A bill to amend the Safe Drinking Water Act to require a 
health advisory and monitoring of drinking water for perchlorate; to 
the Committee on Environment and Public Works.
  Mrs. BOXER. Mr. President, I am introducing a bill that would require 
that tap water be tested for perchlorate, and would ensure the public's 
right to know about perchlorate in their drinking water. I am pleased 
that the senior Senator from California, Mrs. Feinstein, and the senior 
Senator from New Jersey, Mr. Lautenberg, have joined as original 
cosponsors of this measure.
  This toxin is a clear and present danger to California's and much of 
America's health, and EPA needs to get moving and protect our drinking 
water now. But until a perchlorate tap water standard is set, something 
must be done.
  Therefore, my perchlorate monitoring and right to know bill will 
require that: EPA first swiftly set a health advisory for perchlorate 
that protects pregnant women, infants and children; second, that EPA 
order monitoring of drinking water for perchlorate until an enforceable 
standard is set; and, third, that the public be told about perchlorate 
and its health effects, if it is detected in their drinking water 
supply.
  Drinking water sources for more than 20 million Americans are 
contaminated with perchlorate. The Government Accountability Office 
(GAO) says that perchlorate contamination has been found in water and 
soil at almost 400 sites in the U.S., with levels ranging from 4 parts 
per billion to millions of parts per billion. Perchlorate

[[Page 126]]

has polluted 35 States and the District of Columbia, and is known to 
have contaminated 153 public water systems in 26 States.
  As we know, perchlorate can harm human health, especially that of 
pregnant women and children. Therefore, all citizens whose tap water 
system contains perchlorate have a right to know about that 
contamination, and about its potential health consequences. Only if 
their water is tested, and only if all systems are obligated to 
disclose the contamination and its health effects, will we be assured 
that the public is given the information that they deserve to protect 
themselves and their families.
  EPA's original 1999 rule for monitoring of tap water for unregulated 
contaminants ordered testing for perchlorate. Just last year, on August 
22, 2005, EPA proposed to extend the requirement that perchlorate be 
monitored in drinking water. However, on December 20, 2006, the 
Administrator reversed himself and signed a final rule removing 
perchlorate from the list of contaminants for which monitoring is 
required under the Unregulated Contaminant Monitoring Regulation. I was 
shocked by this action.
  As a result of this new rule, Americans will not be assured of up-to-
date information on whether their tap water is contaminated with this 
toxin. Until EPA sets a tap water standard for perchlorate, at the very 
least we should know if it's in our drinking water.
  My bill will ensure that EPA acts swiftly to require water systems to 
test for and to inform the public about this threat to our health and 
welfare. I look forward to working with my colleagues to pass this 
important legislation.
  I ask unanimous consent that the text of my 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. 24

       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 ``Perchlorate Monitoring and 
     Right-to-Know Act of 2007''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds that--
       (1) perchlorate--
       (A) is a chemical used as the primary ingredient of solid 
     rocket propellant;
       (B) is also used in fireworks, road flares, and other 
     applications.
       (2) waste from the manufacture and improper disposal of 
     chemicals containing perchlorate is increasingly being 
     discovered in soil and water;
       (3) according to the Government Accountability Office, 
     perchlorate contamination has been detected in water and soil 
     at almost 400 sites in the United States, with concentration 
     levels ranging from 4 parts per billion to millions of parts 
     per billion;
       (4) the Government Accountability Office has determined 
     that the Environmental Protection Agency does not centrally 
     track or monitor perchlorate detections or the status of 
     perchlorate cleanup, so a greater number of contaminated 
     sites may already exist;
       (5) according to the Government Accountability Office, 
     limited Environmental Protection Agency data show that 
     perchlorate has been found in 35 States and the District of 
     Columbia and is known to have contaminated 153 public water 
     systems in 26 States;
       (6) those data are likely underestimates of total drinking 
     water exposure, as illustrated by the finding of the 
     California Department of Health Services that perchlorate 
     contamination sites have affected approximately 276 drinking 
     water sources and 77 drinking water systems in the State of 
     California alone;
       (7) Food and Drug Administration scientists and other 
     scientific researchers have detected perchlorate in the 
     United States food supply, including in lettuce, milk, 
     cucumbers, tomatoes, carrots, cantaloupe, wheat, and spinach, 
     and in human breast milk;
       (8)(A) perchlorate can harm human health, especially in 
     pregnant women and children, by interfering with uptake of 
     iodide by the thyroid gland, which is necessary to produce 
     important hormones that help control human health and 
     development;
       (B) in adults, the thyroid helps to regulate metabolism;
       (C) in children, the thyroid helps to ensure proper mental 
     and physical development; and
       (D) impairment of thyroid function in expectant mothers or 
     infants may result in effects including delayed development 
     and decreased learning capability;
       (9)(A) in October 2006, researchers from the Centers for 
     Disease Control and Prevention published the largest, most 
     comprehensive study to date on the effects of low levels of 
     perchlorate exposure in women, finding that--
       (i) significant changes existed in thyroid hormones in 
     women with low iodine levels who were exposed to perchlorate; 
     and
       (ii) even low-level perchlorate exposure may affect the 
     production of hormones by the thyroid in iodine-deficient 
     women; and
       (B) in the United States, about 36 percent of women have 
     iodine levels equivalent to or below the levels of the women 
     in the study described in subparagraph (A);
       (10) the Environmental Protection Agency has not 
     established a health advisory or national primary drinking 
     water regulation for perchlorate, but instead established a 
     ``Drinking Water Equivalent Level'' of 24.5 parts per billion 
     for perchlorate, which--
       (A) does not take into consideration all routes of exposure 
     to perchlorate;
       (B) has been criticized by experts as failing to 
     sufficiently consider the body weight, unique exposure, and 
     vulnerabilities of certain pregnant women and fetuses, 
     infants, and children; and
       (C) is based primarily on a small study and does not take 
     into account new, larger studies of the Centers for Disease 
     Control and Prevention or other data indicating potential 
     effects at lower perchlorate levels than previously found;
       (11) on August 22, 2005 (70 Fed. Reg. 49094), the 
     Administrator proposed to extend the requirement that 
     perchlorate be monitored in drinking water under the final 
     rule entitled ``Unregulated Contaminant Monitoring Regulation 
     (UCMR) for Public Water Systems Revisions'' promulgated 
     pursuant to section 1445(a)(2) of the Safe Drinking Water Act 
     (42 U.S.C. 300j-4(a)(2)); and
       (12) on December 20, 2006, the Administrator signed a final 
     rule removing perchlorate from the list of contaminants for 
     which monitoring is required under the final rule entitled 
     ``Unregulated Contaminant Monitoring Regulation (UCMR) for 
     Public Water Systems Revisions'' (72 Fed. Reg. 368 (January 
     4, 2007)).
       (b) Purpose.--The purpose of this Act is to require the 
     Administrator of the Environmental Protection Agency--
       (1) to establish, not later than 90 days after the date of 
     enactment of this Act, a health advisory that--
       (A) is fully protective of, and considers, the body weight 
     and exposure patterns of pregnant women, fetuses, newborns, 
     and children;
       (B) provides an adequate margin of safety; and
       (C) takes into account all routes of exposure to 
     perchlorate;
       (2) to promulgate, not later than 120 days after the date 
     of enactment of this Act, a final regulation requiring 
     monitoring for perchlorate in drinking water; and
       (3) to ensure the right of the public to know about 
     perchlorate in drinking water by requiring that consumer 
     confidence reports disclose the presence and potential health 
     effects of perchlorate in drinking water.

     SEC. 3. MONITORING AND HEALTH ADVISORY FOR PERCHLORATE.

       Section 1412(b)(12) of the Safe Drinking Water Act (42 
     U.S.C. 300g-1(b)(12)) is amended by adding at the end the 
     following:
       ``(C) Perchlorate.--
       ``(i) Health advisory.--Not later than 90 days after the 
     date of enactment of this subparagraph, the Administrator 
     shall publish a health advisory for perchlorate that fully 
     protects, with an adequate margin of safety, the health of 
     vulnerable persons (including pregnant women, fetuses, 
     newborns, and children), considering body weight and exposure 
     patterns and all routes of exposure.
       ``(ii) Monitoring regulations.--

       ``(I) In general.--The Administrator shall propose (not 
     later than 60 days after the date of enactment of this 
     subparagraph) and promulgate (not later than 120 days after 
     the date of enactment of this subparagraph) a final 
     regulation requiring--

       ``(aa) each public water system serving more than 10,000 
     individuals to monitor for perchlorate beginning not later 
     than October 31, 2007; and
       ``(bb) the collection of a representative sample of public 
     water systems serving 10,000 individuals or fewer to monitor 
     for perchlorate in accordance with section 1445(a)(2).

       ``(II) Duration.--The regulation shall be in effect unless 
     and until monitoring for perchlorate is required under a 
     national primary drinking water regulation for perchlorate.

       ``(iii) Consumer confidence reports.--Each consumer 
     confidence report issued under section 1414(c)(4) shall 
     disclose the presence of any perchlorate in drinking water, 
     and the potential health risks of exposure to perchlorate in 
     drinking water, consistent with guidance issued by the 
     Administrator.''.
                                 ______
                                 
      By Mr. KOHL (for himself and Mr. Leahy):
  S. 25. A bill to amend the Federal Food, Drug, and Cosmetic Act to 
establish requirements for certain petitions submitted to the Food and 
Drug Administration, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.

[[Page 127]]


  Mr. KOHL. Mr. President, I rise today on the first day of this new 
Congress to introduce the Citizen Petition Fairness and Accuracy Act of 
2007. This legislation will help speed the introduction of cost-saving 
generic drugs by preventing abuses of the Food and Drug Administration 
citizen petition process.
  Consumers continue to suffer all across our country from the high--
and ever rising--cost of prescription drugs. A recent independent study 
found that prescription drug spending has more than quadrupled since 
1990, and now accounts for 11 percent of all health care spending. At 
the same time, the pharmaceutical industry is one of the most 
profitable industries in the world, returning more than 15 percent on 
their investments.
  One key method to bring prescription drug prices down is to promote 
the introduction of generic alternatives to expensive brand name drugs. 
Consumers realize substantial savings once generic drugs enter the 
market. Generic drugs cost on average 63 percent less than their brand-
name equivalents. One study estimates that every 1 percent increase in 
the use of generic drugs could save $4 billion in health care costs.
  This is why I have been so active in pursuing legislation designed to 
combat practices which impede the introduction of generic drugs. The 
legislation I introduce today, which I first introduced last year with 
Senator Leahy in last Congress, targets one particularly pernicious 
practice by brand name drug companies to impede or block the marketing 
of generic drugs--abuse of the FDA citizen petition process.
  FDA rules permit any person to file a so-called ``citizen petition'' 
to raise concerns about the safety or efficacy of a generic drug that a 
manufacturer is seeking FDA approval to bring to market. While this 
citizen petition process was put in place for a laudable purpose, 
unfortunately in recent years it has been abused by frivolous petitions 
submitted by brand name drug manufacturers (or individuals acting at 
their behest) whose only purpose is to delay the introduction of 
generic competition. The FDA has a policy of not granting any new 
generic manufacturer's drug application until after it has considered 
and evaluated any citizen petitions regarding that drug. The process of 
resolving a citizen petition (even if ultimately found to be 
groundless) can delay the approval by months or years. Indeed, brand 
name drug manufacturers often wait to file citizen petitions until just 
before the FDA is about to grant the application to market the new 
generic drug solely for the purpose of delaying the introduction of the 
generic competitor for the maximum amount of time possible. This gaming 
of the system should not be tolerated.
  In recent years, FDA officials have expressed serious concerns about 
the abuse of the citizen petition process. In 2005, FDA Chief Counsel 
Sheldon Bradshaw noted that ``[t]he citizen petition process is in some 
cases being abused. Sometimes, stakeholders try to use this mechanism 
to unnecessarily delay approval of a competitor's products.'' He added 
that he found it ``particularly troublesome'' that he had ``seen 
several examples of citizen petitions that appear designed not to raise 
timely concerns with respect to the legality or scientific soundness of 
approving a drug application, but rather to delay approval by 
compelling the agency to take the time to consider the arguments raised 
in the petition, regardless of their merits, and regardless of whether 
the petitioner could have made those very arguments months and months 
before.''
  And a simple look at the statistics gives credence to these concerns. 
Of the 21 citizen petitions for which the FDA has reached a decision 
since 2003, 20--or 95 percent of them--have been found to be without 
merit. Of these, ten were identified as ``eleventh hour petitions'', 
defined as those filed less than 6 months prior to the estimated entry 
date of the generic drug. None of these ten ``eleventh hour petitions'' 
were found to have merit, but each caused unnecessary delays in the 
marketing of the generic drug by months or over a year, causing 
consumers to spend millions and millions of dollars for their 
prescription drugs than they would have spent without these abusive 
filings.
  Despite the expense these frivolous citizen petitions cause consumers 
and the FDA, under current law the government has absolutely no ability 
to sanction or penalize those who abuse the citizen petition process, 
or who file citizen petitions simply to keep competition off the 
market. Our legislation will correct this obvious shortcoming and give 
the Department of Health and Human Services--the FDA's parent agency 
the power to sanction those who abuse the process.
  Our bill will, for the first time, require all those who file citizen 
petitions to affirm certain basic facts about the truthfulness and good 
faith of the petition, similar to what is required of every litigant 
who makes a filing in court. The party filing the citizen petition will 
be required to affirm that the petition is well grounded in fact and 
warranted by law; is not submitted for an improper purpose, such as to 
harass or cause unnecessary delay in approval of competing drugs; and 
does not contain any materially false, misleading or fraudulent 
statement. The Secretary of the Department of Health and Human Services 
is empowered to investigate a citizen petition to determine if it has 
violated any of these principles, was submitted for an improper 
purpose, or contained false or misleading statements. Further, the 
Secretary is authorized to penalize anyone found to have submitted an 
abusive citizen petition. Possible sanctions include a fine up to one 
million dollars, a suspension or permanent revocation of the right of 
the violator to file future citizens' petition, and a dismissal of the 
petition at issue. HHS is also authorized to refer the matter to the 
Federal Trade Commission so that the FTC can undertake its own 
investigation as to the competitive consequences of the frivolous 
petition and take any action it finds appropriate. Finally, the bill 
directs the HHS that all citizen petitions be adjudicated within six 
months of filing, which will put an end to excessive delays in bringing 
needed generic drugs to market because of the filings of these 
petitions.
  While our bill will not have any effect on any person filing a truly 
meritorious citizen petition, this legislation will serve as a strong 
deterrent to attempts by brand name drug manufacturers or any other 
party that seeks to abuse the citizen petition process to thwart 
competition. It will thereby remove one significant obstacle exploiting 
by brand name drug companies to prevent or delay the introduction of 
generic drugs. I urge my colleagues to support this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 25

       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 ``Citizen Petition Fairness 
     and Accuracy Act of 2007''.

     SEC. 2. CITIZEN PETITIONS AND PETITIONS FOR STAY OF AGENCY 
                   ACTION.

       Section 505(j)(5) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 355(j)(5)) is amended by adding at the end the 
     following:
       ``(G)(i) Notwithstanding any other provision of law, any 
     petition submitted under section 10.30 or section 10.35 of 
     title 21, Code of Federal Regulations (or any successor 
     regulation), shall include a statement that to the 
     petitioner's best knowledge and belief, the petition--
       ``(I) includes all information and views on which the 
     petitioner relies, including all representative data and 
     information known to the petitioner that is favorable or 
     unfavorable to the petition;
       ``(II) is well grounded in fact and is warranted by law;
       ``(III) is not submitted for an improper purpose, such as 
     to harass or cause unnecessary delay (including unnecessary 
     delay of competition or agency action); and
       ``(IV) does not contain a materially false, misleading, or 
     fraudulent statement.
       ``(ii) The Secretary shall investigate, on receipt of a 
     complaint, a request under clause (vi), or on its own 
     initiative, any petition submitted under such section 10.30 
     or section 10.35 (or any successor regulation), that--

[[Page 128]]

       ``(I) does not comply with the requirements of clause (i);
       ``(II) may have been submitted for an improper purpose as 
     described in clause (i)(III); or
       ``(III) may contain a materially false, misleading, or 
     fraudulent statement as described in clause (i)(IV).
       ``(iii) If the Secretary finds that the petitioner has 
     knowingly and willingly submitted the petition for an 
     improper purpose as described in clause (i)(III), or which 
     contains a materially false, misleading, or fraudulent 
     statement as described in clause (i)(IV), the Secretary may--
       ``(I) impose a civil penalty of not more than $1,000,000, 
     plus attorneys fees and costs of reviewing the petition and 
     any related proceedings;
       ``(II) suspend the authority of the petitioner to submit a 
     petition under such section 10.30 or section 10.35 (or any 
     successor regulation), for a period of not more than 10 
     years;
       ``(III) revoke permanently the authority of the petitioner 
     to submit a petition under such section 10.30 or section 
     10.35 (or any successor regulation); or
       ``(IV) dismiss the petition at issue in its entirety.
       ``(iv) If the Secretary takes an enforcement action 
     described in subclause (I), (II), (III), or (IV) of clause 
     (iii) with respect to a petition, the Secretary shall refer 
     that petition to the Federal Trade Commission for further 
     action as the Federal Trade Commission finds appropriate.
       ``(v) In determining whether to take an enforcement action 
     described in subclause (I), (II), (III), or (IV) of clause 
     (iii) with respect to a petition, and in determining the 
     amount of any civil penalty or the length of any suspension 
     imposed under that clause, the Secretary shall consider the 
     specific circumstances of the situation, such as the gravity 
     and seriousness of the violation involved, the amount of 
     resources expended in reviewing the petition at issue, the 
     effect on marketing of competing drugs of the pendency of the 
     improperly submitted petition, including whether the timing 
     of the submission of the petition appears to have been 
     calculated to cause delay in the marketing of any drug 
     awaiting approval, and whether the petitioner has a history 
     of submitting petitions in violation of this subparagraph.
       ``(vi)(I) Any person aggrieved by a petition filed under 
     such section 10.30 or section 10.35 (or any successor 
     regulation), including a person filing an application under 
     subsection (b)(2) or (j) of this section to which such 
     petition relates, may request that the Secretary initiate an 
     investigation described under clause (ii) for an enforcement 
     action described under clause (iii).
       ``(II) The aggrieved person shall specify the basis for its 
     belief that the petition at issue is false, misleading, 
     fraudulent, or submitted for an improper purpose. The 
     aggrieved person shall certify that the request is submitted 
     in good faith, is well grounded in fact, and not submitted 
     for any improper purpose. Any aggrieved person who knowingly 
     and intentionally violates the preceding sentence shall be 
     subject to the civil penalty described under clause (iii)(I).
       ``(vii) The Secretary shall take final agency action with 
     respect to a petition filed under such section 10.30 or 
     section 10.35 (or any successor regulation) within 6 months 
     of receipt of such petition. The Secretary shall not extend 
     such 6-month review period, even with consent of the 
     petitioner, for any reason, including based upon the 
     submission of comments relating to a petition or supplemental 
     information supplied by the petitioner. If the Secretary has 
     not taken final agency action on a petition by the date that 
     is 6 months after the date of receipt of the petition, such 
     petition shall be deemed to have been denied on such date.
       ``(viii) The Secretary may promulgate regulations to carry 
     out this subparagraph, including to determine whether 
     petitions filed under such section 10.30 or section 10.35 (or 
     any successor regulation) merit enforcement action by the 
     Secretary under this subparagraph.''.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Boxer):
  S. 27. A bill to authorize the implementation of the San Joaquin 
River Restoration Settlement; to the Committee on Energy and Natural 
Resources.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation 
that will bring to a close 18 years of litigation between the Natural 
Resources Defense Council, the Friant Water Users Authority and the 
U.S. Department of the Interior. It is identical to the bill that we 
introduced in the waning days of the 109th Congress.
  This historic bill will enact a settlement that restores California's 
second longest river, the San Joaquin, while maintaining a stable water 
supply for the farmers who have made the Valley the richest 
agricultural area in the world.
  Without this consensus resolution to a long-running western water 
battle the parties will continue the fight, resulting in a court 
imposed settlement. To my knowledge, every farmer and every 
environmentalist who has considered the possibility of continued 
litigation believes that an outcome imposed by a judge is likely to be 
worse for everyone on all counts: more costly, riskier for the farmers, 
and less beneficial for the environment.
  The Settlement provides a framework that the affected interests can 
accept. As a result, this legislation has the strong support of the 
Bush Administration, the Schwarzenegger Administration, the 
environmental and fishing communities and numerous California farmers 
and water districts, including all 22 Friant water districts that have 
been part of the litigation.
  In announcing the signing of this San Joaquin River settlement in 
September, the Assistant Secretary of the Interior praised it as a 
``monumental agreement.'' And when the Federal Court then approved the 
Settlement in late October, Secretary of the Interior Dirk Kempthorne 
further praised Settlement for launching ``one of the largest 
environmental restoration projects in California's history.'' The 
Secretary further observed that, ``This Settlement closes a long 
chapter of conflict and uncertainty in California's San Joaquin Valley 
. . . and open[s] a new chapter of environmental restoration and water 
supply certainty for the farmers and their communities.''
  I share the Secretary's strong support for this balanced and historic 
agreement, and it is my honor to join with Senator Boxer and a 
bipartisan group of California House Members in introducing legislation 
to approve and authorize this Settlement.
  The legislation indicates how the settlement forged by the parties is 
going to be implemented. It involves the Departments of the Interior 
and Commerce, and essentially gives the Secretary of the Interior the 
additional authority to: take the actions to restore the San Joaquin 
River; reintroduce the California Central Valley Spring Run Chinook 
Salmon; minimize water supply impacts on Friant water districts; and 
avoid reductions in water supply for third-party water contractors.
  One of the major benefits of this settlement is the restoration of a 
long-lost salmon fishery. The return of one of California's most 
important salmon runs will create significant benefits for local 
communities in the San Joaquin Valley, helping to restore a beleaguered 
fishing industry while improving recreation and quality of life.
  The legislation provides for improvements to the San Joaquin river 
channel to allow salmon restoration to begin in 2014. Beginning in that 
year, the river would see an annual flow regime mandated by the 
Settlement, with pulses of additional water in the spring and greater 
flows available in wetter years. There is flexibility to add or 
subtract up to 10 percent from the annual flows, as the best science 
dictates.
  A visitor to the revitalized river channel in a decade will find an 
entirely different place providing recreation for residents of small 
towns like Mendota, and a refuge for residents of larger cities like 
Fresno.
  The legislation I am introducing today includes provisions to benefit 
the farmers of the San Joaquin Valley as well as the salmon. In wet 
years, Friant contractors can purchase surplus flows at $10 per acre-
foot for use in dry years, far less than the approximately $35 per 
acre-foot that they would otherwise pay for this water.
  The Secretary of the Interior is authorized to recirculate new 
restoration flows from the Delta via the California aqueduct and the 
Cross-Valley Canal to provide additional supply for Friant.
  Today's legislation also includes substantial protections for other 
water districts in California who were not party to the original 
settlement negotiations. These other water contractors will be able to 
avoid all but the smallest water impacts as a result of the settlement, 
except on a voluntary basis.
  In addition, the restoration of flows for over 150 miles below Friant 
Dam, and reconnecting the upper River to the critical San Joaquin-
Sacramento Delta, will be a welcome change for the

[[Page 129]]

more than 22 million Californians who rely on that crucial source for 
their drinking water.
  Finally, restoring the San Joaquin as a living salmon river may 
ultimately help struggling fishing communities on California's North 
Coast--and even into Southern Oregon. The restoration of the San 
Joaquin and the government's commitment to reintroduce and rebuild 
historic salmon populations provide a rare bright spot for these 
communities.
  In addition to congratulating the parties for making a settlement 
that will enable the long-sought restoration of the San Joaquin River, 
I am mindful of and remain committed to progress in implementing and 
funding the December 19, 2000, Trinity River restoration record of 
decision and the Hoopa Valley Tribe's co-management of the decision's 
important goal of restoring the fishery resources that the United 
States holds in trust for the Tribe.
  Support of this agreement is almost as far reaching as its benefits. 
This historic agreement would not have been possible without the 
participation of a remarkably broad group of agencies, stakeholders and 
legislators, reaching far beyond the settling parties. The Department 
of the Interior, the State of California, the Friant Water Users 
Authority, the Natural Resources Defense Council on behalf of 13 other 
environmental organizations and countless other stakeholders came 
together and spent countless hours with legislators in Washington to 
ensure that we found a solution that the large majority of those 
affected could support.
  In November of last year, California voters showed their support by 
approving Propositions 84 and 1E that will help pay for the Settlement 
by committing at least $100 million and likely $200 million or more 
toward the restoration costs. Indeed, this Legislation includes a 
diverse mix of approximately $200 million in direct Water User 
payments, new State payments, $240 million in dedicated Friant Central 
Valley Project capital repayments, and future Federal appropriations 
limited to $250 million. This mix of funding sources is intended to 
ensure that the river restoration program will be sustainable over time 
and truly a joint effort of Federal, state and local agencies.
  I would like to emphasize that the Federal funding in the bill is for 
implementation of both the Restoration Goal to reestablish a salmon 
fishery in the river, and the Water Management Goal to avoid or 
minimize water supply losses supplied by Friant Water Districts. It is 
critical to recognize that these efforts are of equal importance.
  At the end of the day, I believe that this agreement is something 
that we can all feel very proud of, and I urge my colleagues in the 
Senate to move quickly to approve this legislation and provide the 
Administration the authorization it needs to fully carry out its legal 
obligations and the extensive restoration opportunities under the 
settlement.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 27

       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 ``San Joaquin River 
     Restoration Settlement Act''.

     SEC. 2. PURPOSE.

       The purpose of this Act is to authorize implementation of 
     the Stipulation of Settlement dated September 13, 2006 
     (referred to in this Act as the ``Settlement''), in the 
     litigation entitled NATURAL RESOURCES DEFENSE COUNCIL, et al. 
     v. KIRK RODGERS, et al., United States District Court, 
     Eastern District of California, No. CIV. S-88-1658-LKK/GGH.

     SEC. 3. DEFINITIONS.

       In this Act, the terms ``Friant Division long-term 
     contractors'', ``Interim Flows'', ``Restoration Flows'', 
     ``Recovered Water Account'', ``Restoration Goal'', and 
     ``Water Management Goal'' have the meanings given the terms 
     in the Settlement.

     SEC. 4. IMPLEMENTATION OF SETTLEMENT.

       (a) In General.--The Secretary of the Interior (referred to 
     in this Act as the ``Secretary'') is hereby authorized and 
     directed to implement the terms and conditions of the 
     Settlement in cooperation with the State of California, 
     including the following measures as these measures are 
     prescribed in the Settlement:
       (1) Design and construct channel and structural 
     improvements as described in paragraph 11 of the Settlement, 
     provided, however, that the Secretary shall not make or fund 
     any such improvements to facilities or property of the State 
     of California without the approval of the State of California 
     and the State's agreement in 1 or more Memoranda of 
     Understanding to participate where appropriate.
       (2) Modify Friant Dam operations so as to provide 
     Restoration Flows and Interim Flows.
       (3) Acquire water, water rights, or options to acquire 
     water as described in paragraph 13 of the Settlement, 
     provided, however, such acquisitions shall only be made from 
     willing sellers and not through eminent domain.
       (4) Implement the terms and conditions of paragraph 16 of 
     the Settlement related to recirculation, recapture, reuse, 
     exchange, or transfer of water released for Restoration Flows 
     or Interim Flows, for the purpose of accomplishing the Water 
     Management Goal of the Settlement, subject to--
       (A) applicable provisions of California water law;
       (B) the Secretary's use of Central Valley Project 
     facilities to make Project water (other than water released 
     from Friant Dam pursuant to the Settlement) and water 
     acquired through transfers available to existing south-of-
     Delta Central Valley Project contractors; and
       (C) the Secretary's performance of the Agreement of 
     November 24, 1986, between the United States of America and 
     the Department of Water Resources of the State of California 
     for the coordinated operation of the Central Valley Project 
     and the State Water Project as authorized by Congress in 
     section 2(d) of the Act of August 26, 1937 (50 Stat. 850, 100 
     Stat. 3051), including any agreement to resolve conflicts 
     arising from said Agreement.
       (5) Develop and implement the Recovered Water Account as 
     specified in paragraph 16(b) of the Settlement, including the 
     pricing and payment crediting provisions described in 
     paragraph 16(b)(3) of the Settlement, provided that all other 
     provisions of Federal reclamation law shall remain 
     applicable.
       (b) Agreements.--
       (1) Agreements with the state.--In order to facilitate or 
     expedite implementation of the Settlement, the Secretary is 
     authorized and directed to enter into appropriate agreements, 
     including cost sharing agreements, with the State of 
     California.
       (2) Other agreements.--The Secretary is authorized to enter 
     into contracts, memoranda of understanding, financial 
     assistance agreements, cost sharing agreements, and other 
     appropriate agreements with State, tribal, and local 
     governmental agencies, and with private parties, including 
     agreements related to construction, improvement, and 
     operation and maintenance of facilities, subject to any terms 
     and conditions that the Secretary deems necessary to achieve 
     the purposes of the Settlement.
       (c) Acceptance and Expenditure of Non-Federal Funds.--The 
     Secretary is authorized to accept and expend non-Federal 
     funds in order to facilitate implementation of the 
     Settlement.
       (d) Mitigation of Impacts.--Prior to the implementation of 
     decisions or agreements to construct, improve, operate, or 
     maintain facilities that the Secretary determines are needed 
     to implement the Settlement, the Secretary shall identify--
       (1) the impacts associated with such actions; and
       (2) the measures which shall be implemented to mitigate 
     impacts on adjacent and downstream water users and 
     landowners.
       (e) Design and Engineering Studies.--The Secretary is 
     authorized to conduct any design or engineering studies that 
     are necessary to implement the Settlement.
       (f) Effect on Contract Water Allocations.--Except as 
     otherwise provided in this section, the implementation of the 
     Settlement and the reintroduction of California Central 
     Valley Spring Run Chinook salmon pursuant to the Settlement 
     and section 10, shall not result in the involuntary reduction 
     in contract water allocations to Central Valley Project long-
     term contractors, other than Friant Division long-term 
     contractors.
       (g) Effect on Existing Water Contracts.--Except as provided 
     in the Settlement and this Act, nothing in this Act shall 
     modify or amend the rights and obligations of the parties to 
     any existing water service, repayment, purchase or exchange 
     contract.

     SEC. 5. ACQUISITION AND DISPOSAL OF PROPERTY; TITLE TO 
                   FACILITIES.

       (a) Title to Facilities.--Unless acquired pursuant to 
     subsection (b), title to any facility or facilities, stream 
     channel, levees, or other real property modified or improved 
     in the course of implementing the Settlement authorized by 
     this Act, and title to any modifications or improvements of 
     such facility or facilities, stream channel, levees, or other 
     real property--
       (1) shall remain in the owner of the property; and
       (2) shall not be transferred to the United States on 
     account of such modifications or improvements.

[[Page 130]]

       (b) Acquisition of Property.--
       (1) In general.--The Secretary is authorized to acquire 
     through purchase from willing sellers any property, interests 
     in property, or options to acquire real property needed to 
     implement the Settlement authorized by this Act.
       (2) Applicable law.--The Secretary is authorized, but not 
     required, to exercise all of the authorities provided in 
     section 2 of the Act of August 26, 1937 (50 Stat. 844, 
     chapter 832), to carry out the measures authorized in this 
     section and section 4.
       (c) Disposal of Property.--
       (1) In general.--Upon the Secretary's determination that 
     retention of title to property or interests in property 
     acquired pursuant to this Act is no longer needed to be held 
     by the United States for the furtherance of the Settlement, 
     the Secretary is authorized to dispose of such property or 
     interest in property on such terms and conditions as the 
     Secretary deems appropriate and in the best interest of the 
     United States, including possible transfer of such property 
     to the State of California.
       (2) Right of first refusal.--In the event the Secretary 
     determines that property acquired pursuant to this Act 
     through the exercise of its eminent domain authority is no 
     longer necessary for implementation of the Settlement, the 
     Secretary shall provide a right of first refusal to the 
     property owner from whom the property was initially acquired, 
     or his or her successor in interest, on the same terms and 
     conditions as the property is being offered to other parties.
       (3) Disposition of proceeds.--Proceeds from the disposal by 
     sale or transfer of any such property or interests in such 
     property shall be deposited in the fund established by 
     section 9(c).

     SEC. 6. COMPLIANCE WITH APPLICABLE LAW.

       (a) Applicable Law.--
       (1) In general.--In undertaking the measures authorized by 
     this Act, the Secretary and the Secretary of Commerce shall 
     comply with all applicable Federal and State laws, rules, and 
     regulations, including the National Environmental Policy Act 
     of 1969 (42 U.S.C. 4321 et seq.) and the Endangered Species 
     Act of 1973 (16 U.S.C. 1531 et seq.), as necessary.
       (2) Environmental reviews.--The Secretary and the Secretary 
     of Commerce are authorized and directed to initiate and 
     expeditiously complete applicable environmental reviews and 
     consultations as may be necessary to effectuate the purposes 
     of the Settlement.
       (b) Effect on State Law.--Nothing in this Act shall preempt 
     State law or modify any existing obligation of the United 
     States under Federal reclamation law to operate the Central 
     Valley Project in conformity with State law.
       (c) Use of Funds for Environmental Reviews.--
       (1) Definition of environmental review.--For purposes of 
     this subsection, the term ``environmental review'' includes 
     any consultation and planning necessary to comply with 
     subsection (a).
       (2) Participation in environmental review process.--In 
     undertaking the measures authorized by section 4, and for 
     which environmental review is required, the Secretary may 
     provide funds made available under this Act to affected 
     Federal agencies, State agencies, local agencies, and Indian 
     tribes if the Secretary determines that such funds are 
     necessary to allow the Federal agencies, State agencies, 
     local agencies, or Indian tribes to effectively participate 
     in the environmental review process.
       (3) Limitation.--Funds may be provided under paragraph (2) 
     only to support activities that directly contribute to the 
     implementation of the terms and conditions of the Settlement.
       (d) Nonreimbursable Funds.--The United States' share of the 
     costs of implementing this Act shall be nonreimbursable under 
     Federal reclamation law, provided that nothing in this 
     subsection shall limit or be construed to limit the use of 
     the funds assessed and collected pursuant to sections 
     3406(c)(1) and 3407(d)(2) of the Reclamation Projects 
     Authorization and Adjustment Act of 1992 (Public Law 102-575; 
     106 Stat. 4721, 4727), for implementation of the Settlement, 
     nor shall it be construed to limit or modify existing or 
     future Central Valley Project Ratesetting Policies.

     SEC. 7. COMPLIANCE WITH CENTRAL VALLEY PROJECT IMPROVEMENT 
                   ACT.

       Congress hereby finds and declares that the Settlement 
     satisfies and discharges all of the obligations of the 
     Secretary contained in section 3406(c)(1) of the Reclamation 
     Projects Authorization and Adjustment Act of 1992 (Public Law 
     102-575; 106 Stat. 4721), provided, however, that--
       (1) the Secretary shall continue to assess and collect the 
     charges provided in section 3406(c)(1) of the Reclamation 
     Projects Authorization and Adjustment Act of 1992 (Public Law 
     102-575; 106 Stat. 4721), as provided in the Settlement and 
     section 9(d); and
       (2) those assessments and collections shall continue to be 
     counted towards the requirements of the Secretary contained 
     in section 3407(c)(2) of the Reclamation Projects 
     Authorization and Adjustment Act of 1992 (Public Law 102-575; 
     106 Stat. 4726).

     SEC. 8. NO PRIVATE RIGHT OF ACTION.

       (a) In General.--Nothing in this Act confers upon any 
     person or entity not a party to the Settlement a private 
     right of action or claim for relief to interpret or enforce 
     the provisions of this Act or the Settlement.
       (b) Applicable Law.--This section shall not alter or 
     curtail any right of action or claim for relief under any 
     other applicable law.

     SEC. 9. APPROPRIATIONS; SETTLEMENT FUND.

       (a) Implementation Costs.--
       (1) In general.--The costs of implementing the Settlement 
     shall be covered by payments or in kind contributions made by 
     Friant Division contractors and other non-Federal parties, 
     including the funds provided in paragraphs (1) through (5) of 
     subsection (c), estimated to total $440,000,000, of which the 
     non-Federal payments are estimated to total $200,000,000 (at 
     October 2006 price levels) and the amount from repaid Central 
     Valley Project capital obligations is estimated to total 
     $240,000,000, the additional Federal appropriation of 
     $250,000,000 authorized pursuant to subsection (b)(1), and 
     such additional funds authorized pursuant to subsection 
     (b)(2); provided however, that the costs of implementing the 
     provisions of section 4(a)(1) shall be shared by the State of 
     California pursuant to the terms of a Memorandum of 
     Understanding executed by the State of California and the 
     Parties to the Settlement on September 13, 2006, which 
     includes at least $110,000,000 of State funds.
       (2) Additional agreements.--
       (A) In general.--The Secretary shall enter into 1 or more 
     agreements to fund or implement improvements on a project-by-
     project basis with the State of California.
       (B) Requirements.--Any agreements entered into under 
     subparagraph (A) shall provide for recognition of either 
     monetary or in-kind contributions toward the State of 
     California's share of the cost of implementing the provisions 
     of section 4(a)(1).
       (3) Limitation.--Except as provided in the Settlement, to 
     the extent that costs incurred solely to implement this 
     Settlement would not otherwise have been incurred by any 
     entity or public or local agency or subdivision of the State 
     of California, such costs shall not be borne by any such 
     entity, agency, or subdivision of the State of California, 
     unless such costs are incurred on a voluntary basis.
       (b) Authorization of Appropriations.--
       (1) In general.--In addition to the funds provided in 
     paragraphs (1) through (5) of subsection (c), there are also 
     authorized to be appropriated not to exceed $250,000,000 (at 
     October 2006 price levels) to implement this Act and the 
     Settlement, to be available until expended; provided however, 
     that the Secretary is authorized to spend such additional 
     appropriations only in amounts equal to the amount of funds 
     deposited in the Fund (not including payments under 
     subsection (c)(2), proceeds under subsection (c)(3) other 
     than an amount equal to what would otherwise have been 
     deposited under subsection (c)(1) in the absence of issuance 
     of the bond, and proceeds under subsection (c)(4)), the 
     amount of in-kind contributions, and other non-Federal 
     payments actually committed to the implementation of this Act 
     or the Settlement.
       (2) Other funds.--The Secretary is authorized to use monies 
     from the Fund created under section 3407 of the Reclamation 
     Projects Authorization and Adjustment Act of 1992 (Public Law 
     102-575; 106 Stat. 4727) for purposes of this Act.
       (c) Fund.--There is hereby established within the Treasury 
     of the United States a fund, to be known as the ``San Joaquin 
     River Restoration Fund'', into which the following shall be 
     deposited and used solely for the purpose of implementing the 
     Settlement, to be available for expenditure without further 
     appropriation:
       (1) Subject to subsection (d), at the beginning of the 
     fiscal year following enactment of this Act, all payments 
     received pursuant to section 3406(c)(1) of the Reclamation 
     Projects Authorization and Adjustment Act of 1992 (Public Law 
     102-575; 106 Stat. 4721).
       (2) Subject to subsection (d), the capital component (not 
     otherwise needed to cover operation and maintenance costs) of 
     payments made by Friant Division long-term contractors 
     pursuant to long-term water service contracts beginning the 
     first fiscal year after the date of enactment of this Act. 
     The capital repayment obligation of such contractors under 
     such contracts shall be reduced by the amount paid pursuant 
     to this paragraph and the appropriate share of the existing 
     Federal investment in the Central Valley Project to be 
     recovered by the Secretary pursuant to Public Law 99-546 (100 
     Stat. 3050) shall be reduced by an equivalent sum.
       (3) Proceeds from a bond issue, federally-guaranteed loan, 
     or other appropriate financing instrument, to be issued or 
     entered into by an appropriate public agency or subdivision 
     of the State of California pursuant to subsection (d)(2).
       (4) Proceeds from the sale of water pursuant to the 
     Settlement, or from the sale of property or interests in 
     property as provided in section 5.
       (5) Any non-Federal funds, including State cost-sharing 
     funds, contributed to the United States for implementation of 
     the Settlement, which the Secretary may expend without 
     further appropriation for the purposes for which contributed.

[[Page 131]]

       (d) Guaranteed Loans and Other Financing Instruments.--
       (1) In general.--The Secretary is authorized to enter into 
     agreements with appropriate agencies or subdivisions of the 
     State of California in order to facilitate a bond issue, 
     federally-guaranteed loan, or other appropriate financing 
     instrument, for the purpose of implementing this Settlement.
       (2) Requirements.--If the Secretary and an appropriate 
     agency or subdivision of the State of California enter into 
     such an agreement, and if such agency or subdivision issues 1 
     or more revenue bonds, procures a federally secured loan, or 
     other appropriate financing to fund implementation of the 
     Settlement, and if such agency deposits the proceeds received 
     from such bonds, loans, or financing into the Fund pursuant 
     to subsection (c)(3), monies specified in paragraphs (1) and 
     (2) of subsection (c) shall be provided by the Friant 
     Division long-term contractors directly to such public agency 
     or subdivision of the State of California to repay the bond, 
     loan or financing rather than into the Fund.
       (3) Disposition of payments.--After the satisfaction of any 
     such bond, loan, or financing, the payments specified in 
     paragraphs (1) and (2) of subsection (c) shall be paid 
     directly into the Fund authorized by this section.
       (e) Limitation on Contributions.--Payments made by long-
     term contractors who receive water from the Friant Division 
     and Hidden and Buchanan Units of the Central Valley Project 
     pursuant to sections 3406(c)(1) and 3407(d)(2) of the 
     Reclamation Projects Authorization and Adjustment Act of 1992 
     (Public Law 102-575; 106 Stat. 4721, 4727) and payments made 
     pursuant to paragraph 16(b)(3) of the Settlement and 
     subsection (c)(2) shall be the limitation of such entities' 
     direct financial contribution to the Settlement, subject to 
     the terms and conditions of paragraph 21 of the Settlement.
       (f) No Additional Expenditures Required.--Nothing in this 
     Act shall be construed to require a Federal official to 
     expend Federal funds not appropriated by Congress, or to seek 
     the appropriation of additional funds by Congress, for the 
     implementation of the Settlement.
       (g) Reach 4B.--
       (1) Study.--
       (A) In general.--In accordance with the Settlement and the 
     Memorandum of Understanding executed pursuant to paragraph 6 
     of the Settlement, the Secretary shall conduct a study that 
     specifies--
       (i) the costs of undertaking any work required under 
     paragraph 11(a)(3) of the Settlement to increase the capacity 
     of Reach 4B prior to reinitiation of Restoration Flows;
       (ii) the impacts associated with reinitiation of such 
     flows; and
       (iii) measures that shall be implemented to mitigate 
     impacts.
       (B) Deadline.--The study under subparagraph (A) shall be 
     completed prior to restoration of any flows other than 
     Interim Flows.
       (2) Report.--
       (A) In general.--The Secretary shall file a report with 
     Congress not later than 90 days after issuing a 
     determination, as required by the Settlement, on whether to 
     expand channel conveyance capacity to 4500 cubic feet per 
     second in Reach 4B of the San Joaquin River, or use an 
     alternative route for pulse flows, that--
       (i) explains whether the Secretary has decided to expand 
     Reach 4B capacity to 4500 cubic feet per second; and
       (ii) addresses the following matters:

       (I) The basis for the Secretary's determination, whether 
     set out in environmental review documents or otherwise, as to 
     whether the expansion of Reach 4B would be the preferable 
     means to achieve the Restoration Goal as provided in the 
     Settlement, including how different factors were assessed 
     such as comparative biological and habitat benefits, 
     comparative costs, relative availability of State cost-
     sharing funds, and the comparative benefits and impacts on 
     water temperature, water supply, private property, and local 
     and downstream flood control.
       (II) The Secretary's final cost estimate for expanding 
     Reach 4B capacity to 4500 cubic feet per second, or any 
     alternative route selected, as well as the alternative cost 
     estimates provided by the State, by the Restoration 
     Administrator, and by the other parties to the Settlement.
       (III) The Secretary's plan for funding the costs of 
     expanding Reach 4B or any alternative route selected, whether 
     by existing Federal funds provided under this Act, by non-
     Federal funds, by future Federal appropriations, or some 
     combination of such sources.

       (B) Determination required.--The Secretary shall, to the 
     extent feasible, make the determination in subparagraph (A) 
     prior to undertaking any substantial construction work to 
     increase capacity in Reach 4B.
       (3) Costs.--If the Secretary's estimated Federal cost for 
     expanding Reach 4B in paragraph (2), in light of the 
     Secretary's funding plan set out in paragraph (2), would 
     exceed the remaining Federal funding authorized by this Act 
     (including all funds reallocated, all funds dedicated, and 
     all new funds authorized by this Act and separate from all 
     commitments of State and other non-Federal funds and in-kind 
     commitments), then before the Secretary commences actual 
     construction work in Reach 4B (other than planning, design, 
     feasibility, or other preliminary measures) to expand 
     capacity to 4500 cubic feet per second to implement this 
     Settlement, Congress must have increased the applicable 
     authorization ceiling provided by this Act in an amount at 
     least sufficient to cover the higher estimated Federal costs.

     SEC. 10. CALIFORNIA CENTRAL VALLEY SPRING RUN CHINOOK SALMON.

       (a) Finding.--Congress finds that the implementation of the 
     Settlement to resolve 18 years of contentious litigation 
     regarding restoration of the San Joaquin River and the 
     reintroduction of the California Central Valley Spring Run 
     Chinook salmon is a unique and unprecedented circumstance 
     that requires clear expressions of Congressional intent 
     regarding how the provisions of the Endangered Species Act of 
     1973 (16 U.S.C. 1531 et seq.) are utilized to achieve the 
     goals of restoration of the San Joaquin River and the 
     successful reintroduction of California Central Valley Spring 
     Run Chinook salmon.
       (b) Reintroduction in the San Joaquin River.--California 
     Central Valley Spring Run Chinook salmon shall be 
     reintroduced in the San Joaquin River below Friant Dam 
     pursuant to section 10(j) of the Endangered Species Act of 
     1973 (16 U.S.C. 1539(j)) and the Settlement, provided that 
     the Secretary of Commerce finds that a permit for the 
     reintroduction of California Central Valley Spring Run 
     Chinook salmon may be issued pursuant to section 10(a)(1)(A) 
     of the Endangered Species Act of 1973 (16 U.S.C. 
     1539(a)(1)(A)).
       (c) Final Rule.--
       (1) Definition of third party.--For the purpose of this 
     subsection, the term ``third party'' means persons or 
     entities diverting or receiving water pursuant to applicable 
     State and Federal law and shall include Central Valley 
     Project contractors outside of the Friant Division of the 
     Central Valley Project and the State Water Project.
       (2) Issuance.--The Secretary of Commerce shall issue a 
     final rule pursuant to section 4(d) of the Endangered Species 
     Act of 1973 (16 U.S.C. 1533(d)) governing the incidental take 
     of reintroduced California Central Valley Spring Run Chinook 
     salmon prior to the reintroduction.
       (3) Required components.--The rule issued under paragraph 
     (2) shall provide that the reintroduction will not impose 
     more than de minimus: water supply reductions, additional 
     storage releases, or bypass flows on unwilling third parties 
     due to such reintroduction.
       (4) Applicable law.--Nothing in this section--
       (A) diminishes the statutory or regulatory protections 
     provided in the Endangered Species Act for any species listed 
     pursuant to section 4 of the Endangered Species Act of 1973 
     (16 U.S.C. 1533) other than the reintroduced population of 
     California Central Valley Spring Run Chinook salmon, 
     including protections pursuant to existing biological 
     opinions or new biological opinions issued by the Secretary 
     or Secretary of Commerce; or
       (B) precludes the Secretary or Secretary of Commerce from 
     imposing protections under the Endangered Species Act of 1973 
     (16 U.S.C. 1531 et seq.) for other species listed pursuant to 
     section 4 of that Act (16 U.S.C. 1533) because those 
     protections provide incidental benefits to such reintroduced 
     California Central Valley Spring Run Chinook salmon.
       (d) Report.--
       (1) In general.--Not later than December 31, 2024, the 
     Secretary of Commerce shall report to Congress on the 
     progress made on the reintroduction set forth in this section 
     and the Secretary's plans for future implementation of this 
     section.
       (2) Inclusions.--The report under paragraph (1) shall 
     include--
       (A) an assessment of the major challenges, if any, to 
     successful reintroduction;
       (B) an evaluation of the effect, if any, of the 
     reintroduction on the existing population of California 
     Central Valley Spring Run Chinook salmon existing on the 
     Sacramento River or its tributaries; and
       (C) an assessment regarding the future of the 
     reintroduction.
       (e) FERC Projects.--
       (1) In general.--With regard to California Central Valley 
     Spring Run Chinook salmon reintroduced pursuant to the 
     Settlement, the Secretary of Commerce shall exercise its 
     authority under section 18 of the Federal Power Act (16 
     U.S.C. 811) by reserving its right to file prescriptions in 
     proceedings for projects licensed by the Federal Energy 
     Regulatory Commission on the Calaveras, Stanislaus, Tuolumne, 
     Merced, and San Joaquin rivers and otherwise consistent with 
     subsection (c) until after the expiration of the term of the 
     Settlement, December 31, 2025, or the expiration of the 
     designation made pursuant to subsection (b), whichever ends 
     first.
       (2) Effect of subsection.--Nothing in this subsection shall 
     preclude the Secretary of Commerce from imposing 
     prescriptions pursuant to section 18 of the Federal Power Act 
     (16 U.S.C. 811) solely for other anadromous fish species 
     because those prescriptions provide incidental benefits to 
     such reintroduced California Central Valley Spring Run 
     Chinook salmon.
       (f) Effect of Section.--Nothing in this section is intended 
     or shall be construed--

[[Page 132]]

       (1) to modify the Endangered Species Act of 1973 (16 U.S.C. 
     1531 et seq.) or the Federal Power Act (16 U.S.C. 791a et 
     seq.); or
       (2) to establish a precedent with respect to any other 
     application of the Endangered Species Act of 1973 (16 U.S.C. 
     1531 et seq.) or the Federal Power Act (16 U.S.C. 791a et 
     seq.).
                                 ______
                                 
      By Mr. KOHL:
  S. 28. A bill to amend title XVIII of the Social Security Act to 
require the use of generic drugs under the Medicare part D prescription 
drug program when available unless the brand name drug is determined to 
be medically necessary; to the Committee on Finance.
  Mr. KOHL. Mr. President, I rise today to introduce the Generics First 
Act. This legislation requires the use of available generic drugs under 
the Medicare Part D prescription drug program, unless the brand name 
drug is determined to be medically necessary by a physician.
  Everywhere I go in Wisconsin, I see how prescription drug costs are a 
drain on seniors, families, and businesses that are struggling to pay 
their health care bills. They want help now and we can respond by 
expanding access to generic drugs. Generics, which on average cost 63 
percent less than their brand-name counterparts, are a big part of the 
solution to health care costs that are spiraling out of control.
  The private and public sectors, as well as individuals, are seeking 
relief from high drug costs, and Senate Special Committee on Aging has 
heard some remarkable success stories from some who have turned to 
generic drugs. Last year, General Motors testified that, in 2005, they 
spent $1.9 billion dollars on prescription drugs, 40 percent of their 
total health care spending. Their program to use generics first, when a 
generic drug is available, saves GM nearly $400 million a year.
  Last year, millions of seniors exceeded the initial $2,250 Medicare 
drug benefit and fell into the ``donut hole,'' where they had to pay 
the full price of their drugs. Using less expensive, but equally 
effective, generic drugs will keep seniors out of the ``donut hole'' 
longer and help them survive the gap in coverage.
  Generic drugs approved by the FDA must meet the same rigorous 
standards for safety and effectiveness as brand-name drugs. In addition 
to being safe and effective, the generic must have the same active 
ingredient or ingredients, be the same strength, and have the same 
labeling for the approved uses as the brand drug. Generics perform the 
same as their respective brand name product.
  Modeled after similar provisions in many state-administered Medicaid 
programs, this measure would reduce the high costs of the new 
prescription drug program and keep seniors from reaching the current 
gap in coverage or ``donut hole'' by guiding beneficiaries toward cost-
saving generic drug alternatives.
  We know generic drugs have the potential to save seniors thousands of 
dollars, and curb health spending for the Federal Government, 
employers, and families. And every year, more blockbuster drugs are 
coming off patent, setting up the potential for billions of dollars in 
savings. This legislation is one piece of a larger agenda I'm pushing 
to remove the obstacles that prevent generics from getting to market, 
and making sure that every senior, every family, every business, and 
every government program knows the value of generics and uses them to 
bring costs down. I urge my colleagues to support this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 28

       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 ``Generics First Act of 
     2007''.

     SEC. 2. REQUIRED USE OF GENERIC DRUGS UNDER THE MEDICARE PART 
                   D PRESCRIPTION DRUG PROGRAM.

       (a) In General.--Section 1860D-2(e)(2) of the Social 
     Security Act (42 U.S.C. 1395w-102(e)(2)) is amended by adding 
     at the end the following new subparagraph:
       ``(C) Non-generic drugs unless certain requirements are 
     met.--
       ``(i) In general.--Such term does not include a drug that 
     is a nongeneric drug unless-

       ``(I) no generic drug has been approved under the Federal 
     Food, Drug, and Cosmetic Act with respect to the drug; or
       ``(II) the nongeneric drug is determined to be medically 
     necessary by the individual prescribing the drug and prior 
     authorization for the drug is obtained from the Secretary.

       ``(ii) Definitions.--In this subparagraph:

       ``(I) Generic drug.--The term `generic drug' means a drug 
     that is the subject of an application approved under 
     subsection (b)(2) or (j) of section 505 of the Federal Food, 
     Drug, and Cosmetic Act, for which the Secretary has made a 
     determination that the drug is the therapeutic equivalent of 
     a listed drug under section 505(j)(7) of such Act.
       ``(II) Nongeneric drug.--The term `nongeneric drug' means a 
     drug that is the subject of an application approved under--

       ``(aa) section 505(b)(1) of the Federal Food, Drug, and 
     Cosmetic Act; or
       ``(bb) section 505(b)(2) of such Act and that has been 
     determined to be not therapeutically equivalent to any listed 
     drug.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to drugs dispensed on or after the date of 
     enactment of this Act.
                                 ______
                                 
      By Ms. LANDRIEU:
  S. 29. A bill to clarify the tax treatment of certain payments made 
to homeowners by the Louisiana Recovery Authority and the Mississippi 
Development Authority; to the Committee on Finance.
  Ms. LANDRIEU. Mr. President, at the end of the 109th Congress, I 
learned that the Internal Revenue Service had a tax surprise for 
citizens in my state of Louisiana and in Mississippi who are trying to 
rebuild after Katrina. This tax surprise will set back our recovery and 
discourage our citizens from coming home.
  Let me explain to my colleagues what I am talking about. Both 
Louisiana and Mississippi have established programs to help families 
rebuild their homes and their lives after Katrina and Rita. Congress 
appropriated the money for these initiatives--more than $10 billion in 
all, and we are very grateful for the assistance. The Louisiana program 
is called the ``Road Home'' and it is administered by the Louisiana 
Recovery Authority (LRA). The program is now starting to get going. 
Homeowners are eligible to receive grants from the Road Home of up to 
$150,000 to help them rebuild or repair their homes. Rental properties 
are also eligible. Grants can also be used to buy out homes. The 
Louisianians who were displaced by the storms want to go home and the 
Road Home program will get them there.
  But the IRS has dug a big pothole in the middle of the Road Home by 
making some of these payments taxable. The way this tax surprise works 
is by requiring that any hurricane victim who claimed a casualty loss 
deduction for damage to their home on their tax return for 2005 will 
have to reduce that loss by the amount of any payment from the LRA. So 
if they had their taxes reduced in one year and received a Road Home 
grant the next year, they have to essentially eliminate any benefit of 
the earlier casualty loss deduction. Their taxes will go up.
  Now I realize that under normal circumstances, when a person's home 
burns down, the roof caves in, or they are a victim of theft, they can 
take a casualty loss deduction, provided it meets certain requirements. 
The loss must exceed ten percent of the taxpayer's adjusted gross 
income, with a per loss floor of $100. In some circumstances, taxpayers 
are permitted to include a current-year casualty loss on an amended 
prior year return.
  Immediately after Katrina, we enacted the Katrina Emergency Tax 
Relief Act (KETRA) that suspended the ten percent floor for casualty 
losses incurred in the Hurricane Katrina disaster area, including those 
claimed on amended returns. The purpose of the change in KETRA was 
simple: we wanted to put money in the hands of Katrina victims as 
quickly as possible. We essentially encouraged taxpayers to take this 
casualty loss, even by amending a past return. The IRS would then 
provide them with a refund.
  This was a very helpful proposal in the days immediately following 
Katrina, Mr. President. Hurricane victims needed that money. If you had 
lost your home, that money could help

[[Page 133]]

you pay for a place to live. Many hurricane victims lost their jobs and 
needed this money to see them through until they started working again. 
They used the money to begin the rebuilding of their lives.
  Congress encouraged people to take the new deduction by changing the 
law. Now the IRS wants to take it back.
  I fully understand the policy behind what the IRS is doing. Casualty 
loss deductions are normally reduced by the amount of any insurance or 
other recovery they make on the loss. In fact, at the time the taxpayer 
makes the deduction he or she is supposed to reduce the amount of the 
loss by any insurance recovery they reasonably expect to receive. If 
you receive a larger payment than you expected at a future time, you 
must claim it on your income tax return when you receive it.
  The problem is that this policy will encourage people to leave 
Louisiana. If you took the casualty loss on your return, and you 
receive a $150,000 Road Home payment to rebuild your house, you will 
have a tax consequence. But if you took the casualty loss and sold your 
house to the LRA for the $150,000 payment, it is treated like a home 
sale and there is no tax. This policy creates a disincentive to 
recovery. The Road Home will become the Road Out.
  Congress has done a tremendous job passing legislation to encourage 
investment and the rebuilding of the Gulf Coast. At the end of the last 
session we passed a tax extenders bill that contained a two-year 
extension of the bonus depreciation for investment in the most 
seriously damaged areas in the GO Zone. That investment is supposed to 
attract businesses and people to Louisiana and the Gulf. The IRS's 
actions will only keep people away. We should not put road blocks in 
the way of the Road Home.
  Today, I am introducing legislation to eliminate this road block to 
our recovery and to clarify that Road Home payments are not to be 
taxed. The hurricanes in 2005 were remarkable events causing 
unprecedented damage. As Congress has done in the past, we must 
continue to respond in unprecedented and innovative ways. I encourage 
my colleagues to support this bill.
                                 ______
                                 
      By Mr. BAUCUS:
  S. 41. A bill to amend the Internal Revenue Code of 1986 to provide 
incentives to improve America's research competitiveness, and for other 
purposes; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, back in 1962, Marshall McLuhan wrote, 
``The new electronic interdependence recreates the world in the image 
of a global village.'' Certainly, 40 years later, that concept is truer 
than ever. As we prepare for the future in this global village, we need 
to affirm America's leadership role in the world.
  The United States accounts for one-third of the world's spending on 
scientific research and development, ranking first among all countries. 
While this is impressive, relative to GDP, though, the United States 
falls to sixth place. And the trends show that maintaining American 
leadership in the future depends on increased commitment to research 
and science.
  Asia has recognized this. Asia is plowing more funding into science 
and education. China, in particular, understands that technological 
advancement means security, independence, and economic growth. Spending 
on research and development has increased by 140 percent in China, 
Korea and Taiwan. In America, it has increased by only 34 percent.
  Asia's commitment is already paying off. More than a hundred Fortune 
500 companies have opened research centers in India and China. I have 
visited some of them. I was impressed with the level of skill of the 
workers I met there.
  China's commitment to research, at $60 billion in expenditures, is 
dramatic by any measure. Over the last few years, China has doubled the 
share of its economy that it invests in research. China intends to 
double the amount committed to basic research in the next decade. 
Currently, only America beats out China in numbers of researchers in 
the workforce.
  Today, I am pleased to introduce the Research Competitiveness Act of 
2007. This bill would improve our research competitiveness in four 
major areas. All four address incentives in our tax code. Government 
also supports research through federal spending. But I am not 
addressing those areas today.
  First, my bill improves and simplifies the credit for applied 
research in section 41 of the tax code. This credit has grown to be 
overly complex, both for taxpayers and the IRS. Beginning in 2008, my 
bill would create a simpler 20 percent credit for qualifying research 
expenses that exceed 50 percent of the average expenses for the prior 3 
years.
  And just as important: The bill makes the credit permanent. Because 
the credit has been temporary, it has simply not been as effective as 
it could be. Since its creation in 1981, it has been extended 11 times. 
Congress even allowed it to lapse during one period.
  The credit last expired in December of 2005. After much consternation 
and delay, Congress passed a two-year extension just last month, 
extending the credit for 2006 and 2007. These temporary extensions have 
taken their toll on taxpayers. In 2005, the experts at the Joint 
Committee on Taxation wrote: ``Perhaps the greatest criticism of the 
R&E credit among taxpayers regards its temporary nature.'' Joint Tax 
went on to say, ``A credit of longer duration may more successfully 
induce additional research than would a temporary credit, even if the 
temporary credit is periodically renewed.''
  Currently, there are three different ways to claim a tax credit for 
qualifying research expenses. First, the ``traditional'' credit relies 
on incremental increases in expenses compared to a mid-1980s base 
period. Second, the ``alternative incremental'' credit measures the 
increase in research over the average of the prior 4 years.
  Both of these credits have base periods involving gross receipts. 
Under the new tax bill enacted last month, a third formula was created, 
which does not rely on gross receipts and is available only for 2007. 
My bill simplifies these credits by using this new credit only, known 
as the ``Alternative Simplified Credit,'' based on research spending 
without reference to gross receipts. The current formulas hurt 
companies that have fluctuating sales. And it hurts companies that take 
on a new line of business not dependent on research.
  This new, simpler formula in my bill would not start until 2008. That 
start date would give companies plenty of time to adjust their 
accounting.
  The main complaint about the existing credits is that they are very 
complex, particularly the reference to the 20-year-old base period. 
This base period creates problems for the taxpayer in trying to 
calculate the credit. And it creates problems for the IRS in trying to 
administer and audit those claims.
  The new credit focuses only on expenses, not gross receipts. And it 
is still an incremental credit, so that companies must continue to 
increase research spending over time. Further, this bill adds a mandate 
for a Treasury study to look at substantiation issues and ensure that 
current recordkeeping requirements assist the IRS without unduly 
burdening the taxpayer.
  A tax credit is a cost-effective way to promote R&E. A report by the 
Congressional Research Service finds that without government support, 
investment in R&E would fall short of the socially optimal amount. Thus 
CRS endorses Government policies to boost private sector R&E.
  Also, American workers who are engaged in R&E activities benefit from 
some of the most intellectually stimulating, high-paying, high-skilled 
jobs in the economy.
  My own State of Montana has excellent examples of this economic 
activity. During the 1990s, about 400 establishments in Montana 
provided high-technology services, at an average wage of about $35,000 
per year. These jobs paid nearly 80 percent more than the average 
private sector wage, which was less than $20,000 a year during the same 
period. Many of these jobs would never have been created without the 
assistance of the R&E credit.
  My research bill would also establish a uniform reimbursement rate 
for all contract and consortia R&E. It would provide that 80 percent of 
expenses for

[[Page 134]]

research performed for the taxpayer by other parties count as 
qualifying research expenses under the regular credit.
  Currently, when a taxpayer pays someone else to perform research for 
the taxpayer, the taxpayer can claim one of three rates in order to 
determine how much the taxpayer can include for the research credit. 
The lower amount is meant to assure overhead expenses that normally do 
not qualify for the R&E credit are not counted. Different rates, 
however, create unnecessary complexity. Therefore, my bill creates a 
uniform rate of 80 percent.
  The second major research area that this bill addresses is the need 
to enhance and simplify the credit for basic research. This credit 
benefits universities and other entities committed to basic research. 
And it benefits the companies or individuals who donate to them. My 
bill provides that payments under the university basic research credit 
would count as contractor expenses at the rate of 100 percent.
  The current formula for calculating the university basic research 
credit--defined as research ``for the advancement of science with no 
specific commercial objective''--is even more complex than the regular 
traditional R&E credit. Because of this complexity, this credit costs 
less than one-half of 1 percent of the cost of the regular R&E credit. 
It is completely underutilized. It needs to be simplified to encourage 
businesses to give more for basic research.
  American universities have been powerful engines of scientific 
discovery. To maintain our premier global position in basic research, 
America relies on sustained high levels of basic research funding and 
the ability to recruit the most talented students in the world. The 
gestation of scientific discovery is long. At least at first, we cannot 
know the commercial applications of a discovery. But America leads the 
world in biotechnology today because of support for basic research in 
chemistry and physics in the 1960s. Maintaining a commitment to 
scientific inquiry, therefore, must be part of our vision for sustained 
competitiveness.
  Translating university discoveries into commercial products also 
takes innovation, capital, and risk. The Center for Strategic and 
International Studies asked what kind of government intervention can 
maintain technological leadership. One source of technological 
innovation that provides America with comparative advantage is the 
combination of university research programs, entrepreneurs, and risk 
capital from venture capitalists, corporations, or governments. 
Research clusters around Silicon Valley and North Carolina's Research 
Triangle exemplify this sort of combination.
  The National Academies reached a similar conclusion in a 2002 review 
of the National Nanotechnology Initiatives. In a report, they wrote: 
``To enhance the transition from basic to applied research, the 
committee recommends that industrial partnerships be stimulated and 
nurtured to help accelerate the commercialization of national 
nanotechnology developments.''
  To further that goal, the third major area this bill addresses is 
fostering the creation of research parks. This part of the bill would 
benefit state and local governments and universities that want to 
create research centers for businesses incubating scientific 
discoveries with promise for commercial development.
  Stanford created the nation's first high-tech research park in 1951, 
in response to the demand for industrial land near the university and 
an emerging electronics industry tied closely to the School of 
Engineering. The Stanford Research Park traces its origins to a 
business started with $538 in a Palo Alto garage by two men named Bill 
Hewlett and Dave Packard. The Park is now home to 140 companies in 
electronics, software, biotechnology, and other high tech fields.
  Similarly, the North Carolina Research Triangle was founded in 1959 
by university, government, and business leaders with money from private 
contributions. It now has 112 research and development organizations, 
37,600 employees, and capital investment of more than $2.7 billion. 
More recently, Virginia has fostered a research park now housing 53 
private-sector companies, nonprofits, VCU research institutes, and 
state laboratories. The Virginia park employs more than 1,300 people.
  The creation of these parks would seem to be an obvious choice. But 
it takes a significant commitment from a range of sources to bring them 
into being. To foster the creation and expansion of these successful 
parks, my bill will encourage their creation through the use of tax-
exempt bond financing. Allowing tax-exempt bond authority would bring 
down the cost to establish such parks.
  Foreign countries are emulating this successful formula. They are 
establishing high-tech clusters through government and university 
partnerships with private industry.
  Back in 2000, a partnership was formed to foster TechRanch to assist 
Montana State University and other Montana-based research institutions 
in their efforts to commercialize research. But TechRanch is 
desperately in need of some new high-tech facilities. It could surely 
benefit from a provision such as this. I encourage my Colleagues to 
visit research parks in their states to see how my bill could be 
helpful in fostering more successful ventures.
  A related item is a small fix to help universities that use tax-
exempt bonds to build research facilities primarily for federal 
research in the basic or fundamental research area. Some of these 
facilities housing federal research--mostly NIH and NSF funded 
projects--are in danger of losing their tax-exempt bond status. Counsel 
have notified some state officials that they may be running afoul of a 
prohibition on ``private use'' in the tax code, because one private 
party has a superior claim to others in the use of inventions that 
result from research.
  The complication comes from a 1980 law. In 1980, Congress enacted the 
Patent and Trademark Law Amendments Act, also known as the Bayh-Dole 
Act. The Bayh-Dole Act requires the Federal Government to retain a non-
exclusive, royalty-free right on any discovery. In order to foster more 
basic research through Federal-state-university partnerships, we need 
to clarify that this provision of the Bayh-Dole act does not cause 
these bonds to lose their taxexempt status. And my bill directs the 
Treasury Department to do so. I understand that the Treasury Department 
is aware of this significant concern. Whether or not Congress enacts my 
legislation, I hope that the Treasury Department will clarify the 
situation soon.
  The fourth major area that my bill addresses is innovation at the 
small business level. Last year, representatives of a number of small 
nanotechnology companies came to visit me. They told me that their 
greatest problem was surviving what they called the ``valley of 
death.'' That's what they called the first few years of business, when 
an entrepreneur has a promising technology but little money to test or 
develop it. Many businesses simply do not survive the ``valley of 
death.'' I believe that Congress should find a way to assist these 
businesses with promising technology.
  Nanotechnology, for instance, shows much promise. According to a 
recent report, over the next decade, nanotechnology will affect most 
manufactured goods. As stated in Senate testimony by one National 
Science Foundation official last year, ``Nanotechnology is truly our 
next great frontier in science and engineering.'' It took me a while to 
understand just what nanotechnology is. But it is basically the control 
of things at very, very small dimensions. By understanding and 
controlling at that dimension, people can find new and unique 
applications. These applications range from common consumer products--
such as making our sunblocks better--to improving disease-fighting 
medicines--to designing more fuel-efficient cars.
  So, to help these small businesses convert their promising science 
into successful businesses, my bill would establish tax credits for 
investments in qualifying small technology innovation companies. These 
struggling start-up

[[Page 135]]

ventures often cannot utilize existing incentives in the tax code--like 
the R&E tax credit--because they have no tax liability and may have 
little income for the first few years. They need access to cheap 
capital to get through those first few research-intensive years.
  The credit in my bill would be similar to the existing and successful 
New Markets Tax Credit. The New Markets Credit has provided billions of 
dollars of investment to low-income communities across the country. In 
my bill, entities with some expertise and knowledge of research would 
receive an allocation from Treasury to analyze and select qualifying 
research investments. These investment entities would then target small 
business with promising technologies that focus the majority of their 
expenditures on activity qualifying as research expenses under the R&E 
credit.
  In sum, my bill would boost both applied and basic research. It would 
boost research by businesses big and small. And it would foster 
research by for-profit and non-profits alike.
  McLuhan's quote about the global village was taken by many at the 
time as a wake-up call to a changing world. Since then, many more 
leaders in this village have emerged. Let us work to see that the next 
big technological advance is discovered here in America. Only through 
continued commitment to research can We ensure that it is.
                                 ______
                                 
      By Mr. McCONNELL (for Ms. Murkowski):
  S. 42. A bill to make improvements to the Arctic Research and Policy 
Act of 1984; to the Committee on Homeland Security and Governmental 
Affairs.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the test 
of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 42

       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 ``Arctic Research and Policy 
     Amendments Act of 2007''.

     SEC. 2. CHAIRPERSON OF THE ARCTIC RESEARCH COMMISSION.

       (a) Compensation.--Section 103(d)(1) of the Arctic Research 
     and Policy Act of 1984 (15 U.S.C. 4102(d)(1)) is amended in 
     the second sentence by striking ``90 days'' and inserting ``, 
     in the case of the chairperson, 120 days, and, in the case of 
     any other member, 90 days,''.
       (b) Redesignation.--Section 103(d)(2) of the Arctic 
     Research and Policy Act of 1984 (15 U.S.C. 4102(d)(2)) is 
     amended by striking ``Chairman'' and inserting 
     ``chairperson''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 53. A bill to amend the Public Health Service Act to provide 
health care practitioners in rural areas with training in preventive 
health care, including both physical and mental care, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, I rise today to introduce the Rural 
Preventive Health Care Training Act, a bill that responds to the dire 
need of our rural communities for quality health care and disease 
prevention programs. Almost one fourth of Americans live in rural areas 
and frequently lack access to adequate physical and mental health care. 
As many as 21 million of the 34 million people living in underserved 
rural areas are without access to a primary care provider. Even in 
areas where providers do exist, there are numerous limits to access, 
such as geography, distance, lack of transportation, and lack of 
knowledge about available resources. Due to the diversity of rural 
populations, language and cultural obstacles are often a factor in the 
access to medical care.
  Compound these problems with limited financial resources, and the 
result is that many Americans living in rural communities go without 
vital health care, especially preventive care. Children fail to receive 
immunizations and routine checkups. Preventable illnesses and injuries 
occur needlessly, and lead to expensive hospitalizations. Early 
symptoms of emotional problems and substance abuse go undetected, and 
often develop into full-blown disorders.
  An Institute of Medicine (IOM) report entitled, ``Reducing Risks for 
Mental Disorders: Frontiers for Preventive Intervention Research,'' 
highlights the benefits of preventive care for all health problems. The 
training of health care providers in prevention is crucial in order to 
meet the demand for care in underserved areas. Currently, rural health 
care providers lack preventive care training opportunities.
  Interdisciplinary preventive training of rural health care providers 
must be encouraged. Through such training, rural health care providers 
can build a strong educational foundation from the behavioral, 
biological, and psychological sciences. Interdisciplinary team 
prevention training will also facilitate operations at sites with both 
health and mental health clinics by facilitating routine consultation 
between groups. Emphasizing the mental health disciplines and their 
services as part of the health care team will contribute to the overall 
health of rural communities.
  The Rural Preventive Health Care Training Act would implement the 
risk-reduction model described in the IOM study. This model is based on 
the identification of risk factors and targets specific interventions 
for those risk factors. The human suffering caused by poor health is 
immeasurable, and places a huge financial burden on communities, 
families, and individuals. By implementing preventive measures to 
reduce this suffering, the potential psychological and financial 
savings are enormous.
  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. 53

       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 ``Rural Preventive Health Care 
     Training Act of 2007''.

     SEC. 2. PREVENTIVE HEALTH CARE TRAINING.

       Part D of title VII of the Public Health Service Act (42 
     U.S.C. 294 et seq.) is amended by inserting after section 754 
     the following:

     ``SEC. 754A. PREVENTIVE HEALTH CARE TRAINING.

       ``(a) In General.--The Secretary may make grants to, and 
     enter into contracts with, eligible applicants to enable such 
     applicants to provide preventive health care training, in 
     accordance with subsection (c), to health care practitioners 
     practicing in rural areas. Such training shall, to the extent 
     practicable, include training in health care to prevent both 
     physical and mental disorders before the initial occurrence 
     of such disorders. In carrying out this subsection, the 
     Secretary shall encourage, but may not require, the use of 
     interdisciplinary training project applications.
       ``(b) Limitation.--To be eligible to receive training using 
     assistance provided under subsection (a), a health care 
     practitioner shall be determined by the eligible applicant 
     involved to be practicing, or desiring to practice, in a 
     rural area.
       ``(c) Use of Assistance.--Amounts received under a grant 
     made or contract entered into under this section shall be 
     used--
       ``(1) to provide student stipends to individuals attending 
     rural community colleges or other institutions that service 
     predominantly rural communities, for the purpose of enabling 
     the individuals to receive preventive health care training;
       ``(2) to increase staff support at rural community colleges 
     or other institutions that service predominantly rural 
     communities to facilitate the provision of preventive health 
     care training;
       ``(3) to provide training in appropriate research and 
     program evaluation skills in rural communities;
       ``(4) to create and implement innovative programs and 
     curricula with a specific prevention component; and
       ``(5) for other purposes as the Secretary determines to be 
     appropriate.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $5,000,000 for each of fiscal years 2008 through 2011.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 54. A bill to amend title XIX of the Social Security Act to 
provide for coverage of services provided by nursing school clinics 
under State medicaid programs; to the Committee on Finance.
  Mr. INOUYE. Mr. President, today I introduce the Nursing School 
Clinics Act. This measure builds on our concerted efforts to provide 
access to quality health care for all Americans by offering grants and 
incentives for nursing schools to establish primary care

[[Page 136]]

clinics in underserved areas where additional medical services are most 
needed. In addition, this measure provides the opportunity for nursing 
schools to enhance the scope of student training and education by 
providing firsthand clinical experience in primary care facilities.
  Primary care clinics administered by nursing schools are university 
or nonprofit primary care centers developed mainly in collaboration 
with university schools of nursing and the communities they serve. 
These centers are staffed by faculty and staff who are nurse 
practitioners and public health nurses. Students supplement patient 
care while receiving preceptorships provided by college of nursing 
faculty and primary care physicians, often associated with academic 
institutions, who serve as collaborators with nurse practitioners. To 
date, the comprehensive models of care provided by nursing clinics have 
yielded excellent results, including significantly fewer emergency room 
visits, fewer hospital inpatient days, and less use of specialists, as 
compared to conventional primary health care.
  This bill reinforces the principle of combining health care delivery 
in underserved areas with the education of advanced practice nurses. To 
accomplish these objectives, Title XIX of the Social Security Act would 
be amended to designate that the services provided in these nursing 
school clinics are reimbursable under Medicaid. The combination of 
grants and the provision of Medicaid reimbursement furnishes the 
financial incentives for clinic operators to establish the clinics.
  In order to meet the increasing challenges of bringing cost-effective 
and quality health care to all Americans, we must consider a wide range 
of proposals, both large and small. Most importantly, we must approach 
the issue of health care with creativity and determination, ensuring 
that all reasonable avenues are pursued. Nurses have always been an 
integral part of health care delivery. The Nursing School Clinics Act 
recognizes the central role nurses can perform as care givers to the 
medically underserved.
  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. 54

       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 ``Nursing School Clinics Act 
     of 2007''.

     SEC. 2. MEDICAID COVERAGE OF SERVICES PROVIDED BY NURSING 
                   SCHOOL CLINICS.

       (a) In General.--Section 1905(a) of the Social Security Act 
     (42 U.S.C. 1396d(a)) is amended--
       (1) in paragraph (27), by striking ``and'' at the end;
       (2) by redesignating paragraph (28) as paragraph (29); and
       (3) by inserting after paragraph (27), the following new 
     paragraph:
       ``(28) nursing school clinic services (as defined in 
     subsection (y)) furnished by or under the supervision of a 
     nurse practitioner or a clinical nurse specialist (as defined 
     in section 1861(aa)(5)), whether or not the nurse 
     practitioner or clinical nurse specialist is under the 
     supervision of, or associated with, a physician or other 
     health care provider; and''.
       (b) Nursing School Clinic Services Defined.--Section 1905 
     of the Social Security Act (42 U.S.C. 1396d) is amended by 
     adding at the end the following new subsection:
       ``(y) The term `nursing school clinic services' means 
     services provided by a health care facility operated by an 
     accredited school of nursing which provides primary care, 
     long-term care, mental health counseling, home health 
     counseling, home health care, or other health care services 
     which are within the scope of practice of a registered 
     nurse.''.
       (c) Conforming Amendment.--Section 1902(a)(10)(C)(iv) of 
     the Social Security Act (42 U.S.C. 1396a(a)(10)(C)(iv)) is 
     amended by inserting ``and (28)'' after ``(24)''.
       (d) Effective Date.--The amendments made by this section 
     shall be effective with respect to payments made under a 
     State plan under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) for calendar quarters commencing with 
     the first calendar quarter beginning after the date of 
     enactment of this Act.
                                 ______
                                 
      By Mr. BAUCUS (for himself, Mr. Grassley, Mr. Schumer, Mr. Kyl,  
        and Mr. Crapo):
  S. 55. A bill to amend the Internal Revenue Code of 1986 to repeal 
the individual alternative minimum tax; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, there is a monster in the tax code. Like 
Frankenstein, the Alternative Minimum Tax brings back to life higher 
taxes. Higher taxes that families had been told not to worry about are 
brought back because of the Alternative Minimum Tax, or AMT. It is a 
monster that really cannot be improved. It cannot be made to work 
right. It is time to draw the curtain on this monster.
  That is why I am pleased to join with my friend Chuck Grassley, and 
our fellow Committee colleagues, Senators Schumer, Kyl, and Crapo to 
introduce legislation today that will repeal the individual AMT. Our 
bill simply says that beginning January 1, 2007, individuals will owe 
zero dollars under the AMT. Further, our bill provides that individuals 
with AMT credits can continue to use those credits up to 90 percent of 
their regular tax liability.
  If we don't act, in 2007, the family-unfriendly AMT will hit middle-
income families earning $61,000 with three children. What was once 
meant to ensure that a handful of millionaires did not eliminate all 
taxes through excessive deductions is now meaning millions of working 
families, including thousands in my home State of Montana, are subject 
to a higher stealth tax. It is truly bizarre that we've designed a tax 
that deems more children ``excessive deductions'' and punishes duly 
paying your State taxes. Already, 5,000 Montana families pay a higher 
tax because of the AMT. But this number could multiply many times over 
if we don't act soon.
  Not only is the AMT unfair and poorly targeted, it is an awful mess 
to figure out. The National Taxpayer Advocate has singled out this item 
as causing the most complexity for individual taxpayers.
  Of course, repeal does not come without cost and that cost is 
significant even if we assume the 2001 and 2003 tax cuts aren't 
extended. We are committed to working together to identify reasonable 
offsets. Certainly, I don't think we want a tax system unfairly placing 
a higher tax burden on millions of middle-income families with 
children. But it doesn't serve those families either if our budget 
deficit is significantly worse.
  Like Frankenstein's monster, the AMT brings a most unpleasant 
reaction from those whom it encounters. It is time we end this drama 
and repeal the AMT.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 56. A bill to provide relief to the Pottawatomi Nation in Canada 
for settlement of certain claims against the United States; to the 
Committee on the Judiciary.
  Mr. INOUYE. Mr. President, almost twelve years ago, I stood before 
you to introduce a bill ``to provide an opportunity for the Pottawatomi 
Nation in Canada to have the merits of their claims against the United 
States determined by the United States Court of Federal Claims.''
  That bill was introduced as Senate Resolution 223, which referred the 
Pottawatomi's claim to the Chief Judge of the U.S. Court of Federal 
Claims and required the Chief Judge to report back to the Senate and 
provide sufficient findings of fact and conclusions of law to enable 
the Congress to determine whether the claim of the Pottawatomi Nation 
in Canada is legal or equitable in nature, and the amount of damages, 
if any, which may be legally or equitably due from the United States.
  Seven years ago, the Chief Judge of the Court of Federal Claims 
reported back that the Pottawatomi Nation in Canada has a legitimate 
and credible legal claim. Thereafter, by settlement stipulation, the 
United States has taken the position that it would be ``fair, just and 
equitable'' to settle the claims of the Pottawatomi Nation in Canada 
for the sum of $1,830,000. This settlement amount was reached by the 
parties after seven years of extensive, fact-intensive litigation. 
Independently, the court concluded that the settlement amount is ``not 
a gratuity''

[[Page 137]]

and that the ``settlement was predicated on a credible legal claim.'' 
Pottawatomi Nation in Canada, et al. v. United States, Cong. Ref. 94-
1037X at 28 (Ct. Fed. Cl., September 15, 2000) (Report of Hearing 
Officer).
  The bill I introduce today is to authorize the appropriation of those 
funds that the United States has concluded would be ``fair, just and 
equitable'' to satisfy this legal claim. If enacted, this bill will 
finally achieve a measure of justice for a tribal nation that has for 
far too long been denied.
  For the information of our colleagues, this is the historical 
background that informs the underlying legal claim of the Canadian 
Pottawatomi.
  The members of the Pottawatomi Nation in Canada are one of the 
descendant groups--successors-in-interest--of the historical 
Pottawatomi Nation and their claim originates in the latter part of the 
18th century. The historical Pottawatomi Nation was aboriginal to the 
United States. They occupied and possessed a vast expanse in what is 
now the States of Ohio, Michigan, Indiana, llinois, and Wisconsin. From 
1795 to 1833, the United States annexed most of the traditional land of 
the Pottawatomi Nation through a series of treaties of cession--many of 
these cessions were made under extreme duress and the threat of 
military action. In exchange, the Pottawatomis were repeatedly made 
promises that the remainder of their lands would be secure and, in 
addition, that the United States would pay certain annuities to the 
Pottawatomi.
  In 1829, the United States formally adopted a Federal the policy of 
removal--an effort to remove all Indian tribes from their traditional 
lands east of the Mississippi River to the west. As part of that 
effort, the government increasingly pressured the Pottawatomis to cede 
the remainder of their traditional lands--some five million acres in 
and around the city of Chicago and remove themselves west. For years, 
the Pottawatomis steadfastly refused to cede the remainder of their 
tribal territory. Then in 1833, the United States, pressed by settlers 
seeking more land, sent a Treaty Commission to the Pottawatomi with 
orders to extract a cession of the remaining lands. The Treaty 
Commissioners spent 2 weeks using extraordinarily coercive tactics--
including threats of war--in an attempt to get the Pottawatomis to 
agree to cede their territory. Finally, those Pottawatomis who were 
present relented and on September 26, 1933, they ceded their remaining 
tribal estate through what would be known as the Treaty of Chicago. 
Seventy-seven members of the Pottawatomi Nation signed the Treaty of 
Chicago. Members of the ``Wisconsin Band'' were not present and did not 
assent to the cession.
  In exchange for their land, the Treaty of Chicago provided that the 
United States would give to the Pottawatomis 5 million acres of 
comparable land in what is now Missouri. The Pottawatomi were familiar 
with the Missouri land, aware that it was similar to their homeland. 
But the Senate refused to ratify that negotiated agreement and 
unilaterally switched the land to five million acres in Iowa. The 
Treaty Commissioners were sent back to acquire Pottawatomi assent to 
the Iowa land. All but seven of the original 77 signatories refused to 
accept the change even with promises that if they were dissatisfied 
``justice would be done.''
  Treaty of Chicago, as amended, Article 4. Nevertheless, the Treaty of 
Chicago was ratified as amended by the Senate in 1834. Subsequently, 
the Pottawatomis sent a delegation to evaluate the land in Iowa. The 
delegation reported back that the land was ``not fit for snakes to live 
on.''
  While some Pottawatomis removed westward, many of the Pottawatomis--
particularly the Wisconsin Band, whose leaders never agreed to the 
Treaty--refused to do so. By 1836, the United States began to 
forcefully remove Pottawatomis who remained in the east--with 
devastating consequences. As is true with many other American Indian 
tribes, the forced removal westward came at great human cost. Many of 
the Pottawatomi were forcefully removed by mercenaries who were paid on 
a per capita basis government contract. Over one-half of the Indians 
removed by these means died en route. Those who reached Iowa were 
almost immediately removed further to inhospitable parts of Kansas 
against their will and without their consent.
  Knowing of these conditions, many of the Pottawatomis including most 
of those in the Wisconsin Band vigorously resisted forced removal. To 
avoid Federal troops and mercenaries, much of the Wisconsin Band 
ultimately found it necessary to flee to Canada. They were often 
pursued to the border by government troops, government-paid mercenaries 
or both. Official files of the Canadian and United States governments 
disclose that many Pottawatomis were forced to leave their homes 
without their horses or any of their possessions other than the clothes 
on their backs.
  By the late 1830s, the government refused payment of annuities to any 
Pottawatomi groups that had not removed west. In the 1860s, members of 
the Wisconsin Band--those still in their traditional territory and 
those forced to flee to Canada--petitioned Congress for the payment of 
their treaty annuities promised under the Treaty of Chicago and all 
other cession treaties. By the Act of June 25, 1864 (13 Stat. 172) the 
Congress declared that the Wisconsin Band did not forfeit their 
annuities by not removing and directed that the share of the 
Pottawatomi Indians who had refused to relocate to the west should be 
retained for their use in the United States Treasury. (H.R. Rep. No. 
470, 64th Cong., p. 5, as quoted on page 3 of memo dated October 7, 
1949.) Nevertheless, much of the money was never paid to the Wisconsin 
Band.
  In 1903, the Wisconsin Band--most of whom now resided in three areas, 
the States of Michigan and Wisconsin and the Province of Ontario--
petitioned the Senate once again to pay them their fair portion of 
annuities as required by the law and treaties. (Sen. Doc. No. 185, 57th 
Cong., 2d Sess.) By the Act of June 21, 1906 (34 Stat. 380), the 
Congress directed the Secretary of the Interior to investigate claims 
made by the Wisconsin Band and establish a roll of the Wisconsin Band 
Pottawatomis that still remained in the East. In addition, the Congress 
ordered the Secretary to determine ``the[] [Wisconsin Bands] 
proportionate shares of the annuities, trust funds, and other moneys 
paid to or expended for the tribe to which they belong in which the 
claimant Indians have not shared, [and] the amount of such monies 
retained in the Treasury of the United States to the credit of the 
clamant Indians as directed the provision of the Act of June 25, 
1864.''
  In order to carry out the 1906 Act, the Secretary of Interior 
directed Dr. W.M. Wooster to conduct an enumeration of Wisconsin Band 
Pottawatomi in both the United States and Canada. Dr. Wooster 
documented 2007 Wisconsin Pottawatomis: 457 in Wisconsin and Michigan 
and 1550 in Canada. He also concluded that the proportionate share of 
annuities for the Pottawatomis in Wisconsin and Michigan was $477,339 
and that the proportionate share of annuities due the Pottawatomi 
Nation in Canada was $1,517,226. The Congress thereafter enacted a 
series of appropriation Acts from June 30, 1913 to May 29, 1928 to 
satisfy most of money owed to those Wisconsin Band Pottawatomis 
residing in the United States. However, the Wisconsin Band Pottawatomis 
who resided in Canada were never paid their share of the tribal funds.
  Since that time, the Pottawatomi Nation in Canada has diligently and 
continuously sought to enforce their treaty rights, although until this 
congressional reference, they had never been provided their day in 
court. In 1910, the United States and Great Britain entered into an 
agreement for the purpose of dealing with claims between both 
countries, including claims of Indian tribes within their respective 
jurisdictions, by creating the Pecuniary Claims Tribunal. From 1910 to 
1938, the Pottawatomi Nation in Canada diligently sought to have their 
claim heard in this international forum. Overlooked for more pressing 
international matters of the period, including the intervention of 
World War I,

[[Page 138]]

the Pottawatomis then came to the U.S. Congress for redress of their 
claim.
  In 1946, the Congress waived its sovereign immunity and established 
the Indian Claims Commission for the purpose of granting tribes their 
long-delayed day in court. The Indian Claims Commission Act (ICCA) 
granted the Commission jurisdiction over claims such as the type 
involved here. In 1948, the Wisconsin Band Pottawatomis from both sides 
of the border--brought suit together in the Indian Claims Commission 
for recovery of damages. Hannahville Indian Community v. U.S., No. 28 
(Ind. Cl. Comm. Filed May 4, 1948). Unfortunately, the Indian Claims 
Commission dismissed Pottawatomi Nation in Canada's part of the claim 
ruling that the Commission had no jurisdiction to consider claims of 
Indians living outside territorial limits of the United States. 
Hannahville Indian Community v. U.S., 115 Ct. Cl. 823 (1950). The claim 
of the Wisconsin Band residing in the United States that was filed in 
the Indian Claims Commission was finally decided in favor of the 
Wisconsin Band by the U.S. Claims Court in 1983. Hannahville Indian 
Community v. United States, 4 Ct. Cl. 445 (1983). The Court of Claims 
concluded that the Wisconsin Band was owed a member's proportionate 
share of unpaid annuities from 1838 through 1907 due under various 
treaties, including the Treaty of Chicago and entered judgment for the 
American Wisconsin Band Pottawatomis for any monies not paid. Still the 
Pottawatomi Nation in Canada was excluded because of the jurisdictional 
limits of the ICCA.
  Undaunted, the Pottawatomi Nation in Canada came to the Senate and 
after careful consideration, we finally gave them their long-awaited 
day in court through the congressional reference process. The court has 
now reported back to us that their claim is meritorious and that the 
payment that this bill would make constitutes a ``fair, just and 
equitable'' resolution to this claim.
  The Pottawatomi Nation in Canada has sought justice for over 150 
years. They have done all that we asked in order to establish their 
claim. Now it is time for us to finally live up to the promise our 
government made so many years ago. It will not correct all the wrongs 
of the past, but it is a demonstration that this government is willing 
to admit when it has left unfulfilled an obligation and that the United 
States is willing to do what we can to see that justice--so long 
delayed is not now denied.
  Finally, I would just note that the claim of the Pottawatomi Nation 
in Canada is supported through specific resolutions by the National 
Congress of American Indians, the oldest, largest and most-
representative tribal organization here in the United States, the 
Assembly of First Nations (which includes all recognized tribal 
entities in Canada), and each and every of the Pottawatomi tribal 
groups that remain in the United States today.
  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. 56

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

     SECTION 1. SETTLEMENT OF CERTAIN CLAIMS.

       (a) Authorization for Payment.--Notwithstanding any other 
     provision of law, subject to subsection (b), the Secretary of 
     the Treasury shall pay to the Pottawatomi Nation in Canada 
     $1,830,000 from amounts appropriated under section 1304 of 
     title 31, United States Code.
       (b) Payment in Accordance With Stipulation for 
     Recommendation of Settlement.--The payment under subsection 
     (a) shall--
       (1) be made in accordance with the terms and conditions of 
     the Stipulation for Recommendation of Settlement dated May 
     22, 2000, entered into between the Pottawatomi Nation in 
     Canada and the United States (referred to in this Act as the 
     ``Stipulation for Recommendation of Settlement''); and
       (2) be included in the report of the Chief Judge of the 
     United States Court of Federal Claims regarding Congressional 
     Reference No. 94-1037X, submitted to the Senate on January 4, 
     2001, in accordance with sections 1492 and 2509 of title 28, 
     United States Code.
       (c) Full Satisfaction of Claims.--The payment under 
     subsection (a) shall be in full satisfaction of all claims of 
     the Pottawatomi Nation in Canada against the United States 
     that are referred to or described in the Stipulation for 
     Recommendation of Settlement.
       (d) Nonapplicability.--Notwithstanding any other provision 
     of law, the Indian Tribal Judgment Funds Use or Distribution 
     Act (25 U.S.C. 1401 et seq.) does not apply to the payment 
     under subsection (a).
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 57. A bill to amend title 38, United States Code, to deem certain 
service in the organized military forces of the Government of the 
Commonwealth of the Philippines and the Philippine Scouts to have been 
active service for purposes of benefits under programs administered by 
the Secretary of Veterans Affairs; to the Committee on Veterans' 
Affairs.
  Mr. INOUYE. Mr. President, many of you know of my continued support 
and advocacy on the importance of addressing the plight of Filipino 
World War II veterans. As an American, I believe the treatment of 
Filipino World War II veterans is bleak and shameful. The Philippines 
became a United States possession in 1898, when it was ceded by Spain, 
following the Spanish-American War. In 1934, the Congress enacted the 
Philippine Independence Act, Public Law 73-127, which provided a 10-
year time frame for the independence of the Philippines. Between 1934 
and final independence in 1946, the United States retained certain 
powers over the Philippines including the right to call military forces 
organized by the newly-formed Commonwealth government into the service 
of the United States Armed Forces.
  The Commonwealth Army of the Philippines was called to serve with the 
United States Armed Forces in the Far East during World War II under 
President Roosevelt's July 26, 1941 military order. The Filipinos who 
served were entitled to full veterans' benefits by reason of their 
active service with our armed forces. Hundreds were wounded in battle 
and many hundreds more died in battle. Shortly after Japan's surrender, 
the Congress enacted the Armed Forces Voluntary Recruitment Act of 1945 
for the purpose of sending Filipino troops to occupy enemy lands, and 
to oversee military installations at various overseas locations. These 
troops were authorized to receive pay and allowances for services 
performed throughout the Western Pacific. Although hostilities had 
ceased, wartime service of these troops continued as a matter of law 
until the end of 1946.
  Despite all of their sacrifices, on February 18, 1946, the Congress 
passed the Rescission Act of 1946, now codified as Section 107 of Title 
38 of the United States Code. The 1946 Act deemed that the service 
performed by these Filipino veterans would not be recognized as 
``active service'' for the purpose of any U.S. law conferring ``rights, 
privileges, or benefits.'' Accordingly, Section 107 denied Filipino 
veterans access to health care, particularly for non-service-connected 
disabilities, and pension benefits. Section 107 also limited service-
connected disability and death compensation for Filipino veterans to 50 
percent of what their American counterparts receive.
  On May 27, 1946, the Congress enacted the Second Supplemental Surplus 
Appropriations Rescission Act, which duplicated the language that had 
eliminated Filipino veterans' benefits under the First Rescission Act. 
Thus, Filipino veterans who fought in the service of the United States 
during World War II have been precluded from receiving most of the 
veterans' benefits that had been available to them before 1946, and 
that are available to all other veterans of our armed forces regardless 
of race, national origin, or citizenship status.
  The Filipino Veterans Equity Act, which I introduce today, would 
restore the benefits due to these veterans by granting full recognition 
of service for the sacrifices they made during World War II. These 
benefits include veterans health care, service-connected disability 
compensation, non-service connected disability compensation, dependent 
indemnity compensation, death pension, and full burial benefits.
  Throughout the years, I have sponsored several measures to rectify 
the lack of appreciation America has

[[Page 139]]

shown to these gallant men and women who stood in harm's way with our 
American soldiers and fought the common enemy during World War II. It 
is time that we as a Nation recognize our long-standing history and 
friendship with the Philippines. Of the 120,000 that served in the 
Commonwealth Army during World War II, there are approximately 60,000 
Filipino veterans currently residing in the United States and the 
Philippines. According to the Department of Veterans Affairs, the 
Filipino veteran population is expected to decrease to approximately 
20,000 or roughly one-third of the current population by 2010.
  Heroes should never be forgotten or ignored; let us not turn our 
backs on those who sacrificed so much. Let us instead work to replay 
all of these brave men for their sacrifices by providing them the 
veterans, benefits they deserve.
  Mr. President, I ask unanimous consent that the text of my 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. 57

       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 ``Filipino Veterans Equity Act 
     of 2007''.

     SEC. 2. CERTAIN SERVICE IN THE ORGANIZED MILITARY FORCES OF 
                   THE PHILIPPINES AND THE PHILIPPINE SCOUTS 
                   DEEMED TO BE ACTIVE SERVICE.

       (a) In General.--Section 107 of title 38, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``not'' after ``Army of the United States, 
     shall''; and
       (B) by striking ``, except benefits under--'' and all that 
     follows in that subsection and inserting a period;
       (2) in subsection (b)--
       (A) by striking ``not'' after ``Armed Forces Voluntary 
     Recruitment Act of 1945 shall''; and
       (B) by striking ``except--'' and all that follows in that 
     subsection and inserting a period; and
       (3) by striking subsections (c) and (d).
       (b) Conforming Amendments.--
       (1) Heading amendment.--The heading of such section is 
     amended to read as follows:

     ``Sec. 107. Certain service deemed to be active service: 
       service in organized military forces of the Philippines and 
       in the Philippine Scouts''.

       (2) Clerical amendment.--The item relating to such section 
     in the table of sections at the beginning of chapter 1 of 
     such title is amended to read as follows:

``107. Certain service deemed to be active service: service in 
              organized military forces of the Philippines and in the 
              Philippine Scouts.''.

     SEC. 3. EFFECTIVE DATE.

       (a) In General.--The amendments made by this Act shall take 
     effect on January 1, 2007.
       (b) Applicability.--No benefits shall accrue to any person 
     for any period before the effective date of this Act by 
     reason of the amendments made by this Act.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 58. A bill to amend the Internal Revenue Code of 1986 to repeal 
the reduction in the deductible portion of expenses for business meals 
and entertainment; to the Committee on Finance.
  Mr. INOUYE. Mr. President, I rise to introduce legislation to repeal 
the current 50 percent tax deduction for business meals and 
entertainment expenses, and to restore the tax deduction to 80 percent 
gradually over a five-year period. Restoration of this deduction is 
essential to the livelihood of small and independent businesses as well 
as food service, travel, tourism, and entertainment industries 
throughout the United States. These industries are being economically 
harmed as a result of the 50 percent tax deduction.
  Small businesses rely heavily on the business meal to conduct 
business, even more so than larger corporations. In releasing its study 
in May 2004, entitled he Impact of Tax Expenditure Policies on 
Incorporated Small Business, the Small Business Administration, SBA, 
Office of Advocacy, found that small incorporated businesses benefit 
more than their larger counterparts from the meal and entertainment tax 
deduction. According to the study, small firms that take advantage of 
the business-meal deduction reduce their effective tax rate by 0.75 
percent on average, while larger firms only receive a 0.11 percent 
reduction in the effective tax rate. More importantly, the study 
strongly suggests that full reinstatement of the business meal and 
entertainment deduction should be a major policy priority for small 
businesses.
  Small companies often use restaurants as onference space to conduct 
meetings or close deals. Meals are their best and sometimes only 
marketing tool. Certainly, an increase in the meal and entertainment 
deduction would have a significant impact on a small business bottom 
line. In addition, the effects on the overall economy would be 
significant.
  Accompanying my statement is the National Restaurant Association 
(NRA), State-by-State chart reflecting the estimated economic impact of 
increasing the business meal deductibility from 50 to 80 percent. The 
NRA estimates that an increase to 80 percent would increase business 
meal sales by $8 billion and create a $26 billion increase to the 
overall economy.
  I urge my colleagues to join me in cosponsoring this important 
legislation. I ask unanimous consent that the NRA State by State chart 
and the text of my bill be printed in the Record.
  There being no objection, the text of the material was ordered to be 
printed in the Record, as follows:

                   ESTIMATED IMPACT OF INCREASING BUSINESS MEAL DEDUCTIBILITY FROM 50% TO 80%
----------------------------------------------------------------------------------------------------------------
                                                        Increase in Business Meal
                                                           Spending 50% to 80%      Total Economic Impact in the
                        State                             Deductibility  ($ in         State  ($ in millions)
                                                                millions)
----------------------------------------------------------------------------------------------------------------
Alabama.............................................                            99                           203
Alaska..............................................                            21                            35
Arizona.............................................                           150                           297
Arkansas............................................                            57                           114
California..........................................                         1,022                         2,265
Colorado............................................                           152                           327
Connecticut.........................................                            95                           177
Delaware............................................                            25                            44
District of Columbia................................                            41                            54
Florida.............................................                           485                           991
Georgia.............................................                           252                           565
Hawaii..............................................                            56                           108
Idaho...............................................                            29                            57
Illinois............................................                           335                           785
Indiana.............................................                           156                           320
Iowa................................................                            59                           126
Kansas..............................................                            63                           129
Kentucky............................................                           100                           200
Louisiana...........................................                            95                           185
Maine...............................................                            33                            63
Maryland............................................                           153                           319
Massachusetts.......................................                           221                           440
Michigan............................................                           242                           471
Minnesota...........................................                           139                           314
Mississippi.........................................                            54                           103
Missouri............................................                           153                           348
Montana.............................................                            22                            40
Nebraska............................................                            40                            83
Nevada..............................................                            76                           134

[[Page 140]]

 
New Hampshire.......................................                            39                            72
New Jersey..........................................                           225                           467
New Mexico..........................................                            49                            92
New York............................................                           508                           993
North Carolina......................................                           224                           469
North Dakota........................................                            13                            24
Ohio................................................                           303                           663
Oklahoma............................................                            83                           177
Oregon..............................................                           100                           206
Pennsylvania........................................                           287                           638
Rhode Island........................................                            34                            62
South Carolina......................................                           110                           220
South Dakota........................................                            18                            36
Tennessee...........................................                           153                           337
Texas...............................................                           604                         1,411
Utah................................................                            54                           118
Vermont.............................................                            15                            28
Virginia............................................                           203                           428
Washington..........................................                           166                           337
West Virginia.......................................                            36                            62
Wisconsin...........................................                           123                           266
Wyoming.............................................                            13                            21
----------------------------------------------------------------------------------------------------------------
Source: National Restaurant Association estimates, 2006.


                                  ____
                                 S. 58

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

     SECTION 1. REPEAL OF REDUCTION IN BUSINESS MEALS AND 
                   ENTERTAINMENT TAX DEDUCTION.

       (a) In General.--Section 274(n)(1) of the Internal Revenue 
     Code of 1986 (relating to only 50 percent of meal and 
     entertainment expenses allowed as deduction) is amended by 
     striking ``50 percent'' and inserting ``the applicable 
     percentage''.
       (b) Applicable Percentage.--Section 274(n) of the Internal 
     Revenue Code of 1986 is amended by striking paragraph (3) and 
     inserting the following:
       ``(3) Applicable percentage.--For purposes of paragraph 
     (1), the term `applicable percentage' means the percentage 
     determined under the following table:

``For taxable years beginning in calendarThe applicable percentage is--
  2007..........................................................75 ....

  2008 or thereafter.........................................80.''.....

       (c) Conforming Amendment.--The heading for section 274(n) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``Only 50 Percent'' and inserting ``Portion''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 59. A bill to amend title XIX of the Social Security Act to 
improve access to advanced practice nurses and physician assistants 
under the Medicaid Program; to the Committee on Finance.
  Mr. INOUYE. Mr. President, today I introduce the ``Medicaid Advanced 
Practice Nurse and Physician Assistants Access Act of 2007.'' This 
legislation would change Federal law to expand fee-for-service Medicaid 
to include direct payment for services provided by all nurse 
practitioners, clinical nurse specialists, and physician assistants. It 
would ensure all nurse practitioners, certified nurse midwives, and 
physician assistants are recognized as primary care case managers, and 
require Medicaid panels to include advanced practice nurses on their 
managed care panels.
  Advanced practice nurses are registered nurses who have attained 
additional expertise in the clinical management of health conditions. 
Typically, an advanced practice nurse holds a master's degree with 
didactic and clinical preparation beyond that of the registered nurse. 
They are employed in clinics, hospitals, and private practices. While 
there are many titles given to these advanced practice nurses, such as 
pediatric nurse practitioners, family nurse practitioners, certified 
nurse midwives, certified registered nurse anesthetists, and clinical 
nurse specialists, our current Medicaid law has not kept up with the 
multiple specialties and titles of these advanced practitioners, nor 
has it recognized the critical role physician assistants play in the 
delivery of primary care.
  I have been a long-time advocate of advanced practice nurses and 
their ability to extend health care services to our most rural and 
underserved communities. They have improved access to health care in 
Hawaii and throughout the United States by their willingness to 
practice in what some providers might see as undesirable locations--the 
extremely rural, frontier, or urban areas. This legislation ensures 
they are recognized and reimbursed for providing the necessary health 
care services patients need, and it gives those patients the choice of 
selecting advanced practice nurses and physician assistants as their 
primary care providers.
  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. 59

       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 ``Medicaid Advanced Practice 
     Nurses and Physician Assistants Access Act of 2007''.

     SEC. 2. IMPROVED ACCESS TO SERVICES OF ADVANCED PRACTICE 
                   NURSES AND PHYSICIAN ASSISTANTS UNDER STATE 
                   MEDICAID PROGRAMS.

       (a) Primary Care Case Management.--Section 1905(t)(2) of 
     the Social Security Act (42 U.S.C. 1396d(t)(2)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B) A nurse practitioner (as defined in section 
     1861(aa)(5)(A)).
       ``(C) A certified nurse-midwife (as defined in section 
     1861(gg)).
       ``(D) A physician assistant (as defined in section 
     1861(aa)(5)(A)).''.
       (b) Fee-for-Service Program.--Section 1905(a)(21) of such 
     Act (42 U.S.C. 1396d(a)(21)) is amended--
       (1) by inserting ``(A)'' after ``(21)'';
       (2) by striking ``services furnished by a certified 
     pediatric nurse practitioner or certified family nurse 
     practitioner (as defined by the Secretary) which the 
     certified pediatric nurse practitioner or certified family 
     nurse practitioner'' and inserting ``services furnished by a 
     nurse practitioner (as defined in section 1861(aa)(5)(A)) or 
     by a clinical nurse specialist (as defined in section 
     1861(aa)(5)(B)) which the nurse practitioner or clinical 
     nurse specialist'';
       (3) by striking ``the certified pediatric nurse 
     practitioner or certified family nurse practitioner'' and 
     inserting ``the nurse practitioner or clinical nurse 
     specialist''; and
       (4) by inserting before the semicolon at the end the 
     following: ``and (B) services furnished by a physician 
     assistant (as defined in section 1861(aa)(5)) with the 
     supervision of a physician which the physician assistant is 
     legally authorized to perform under State law''.
       (c) Including in Mix of Service Providers Under Medicaid 
     Managed Care Organizations.--Section 1932(b)(5)(B) of such 
     Act (42 U.S.C. 1396u-2(b)(5)(B)) is amended by inserting ``, 
     with such mix including nurse practitioners, clinical nurse 
     specialists, physician assistants, certified nurse midwives, 
     and certified registered nurse anesthetists (as defined in 
     section 1861(bb)(2))'' after ``services''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to items and services furnished in calendar 
     quarters beginning on or after 90 days after the date of the 
     enactment of this Act, without regard to whether or not final 
     regulations to carry out such amendments have been 
     promulgated by such date.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):

[[Page 141]]

  S. 60. A bill to amend the Public Health Service Act to provide a 
means for continued improvement in emergency medical services for 
children; to the Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, today, along with my colleagues; Senators 
Akaka, Kennedy, Conrad and Dorgan, I introduce ``The Wakefield Act,'' 
also known as the ``Emergency Medical Services for Children Act of 
2007.'' Since Senator Hatch and I worked toward authorization of EMSC 
in 1984, this program has become the impetus for improving children's 
emergency services Nationwide. From specialized training for emergency 
care providers to ensuring ambulances and emergency departments have 
state-of-the-art pediatric sized equipment, EMSC has served as the 
vehicle for improving survival of our smallest and most vulnerable 
citizens when accidents or medical emergencies threatened their lives.
  It remains no secret that children present unique anatomic, 
physiologic, emotional and developmental challenges to our primarily 
adult-oriented emergency medical system. As has been said many times 
before, children are not little adults. Evaluation and treatment must 
take into account their special needs, or we risk letting them fall 
through the gap between adult and pediatric care. The EMSC has bridged 
that gap while fostering collaborative relationships among emergency 
medical technicians, paramedics, nurses, emergency physicians, 
surgeons, and pediatricians.
  The Institute of Medicine's recently released study on Emergency Care 
for Children, indicated that our Nation is not as well prepared as once 
we thought. Only 6 percent of all emergency departments have the 
essential pediatric supplies and equipment necessary to manage 
pediatric emergencies. Many of the providers of emergency care have 
received fragmented and little training in the skills necessary to 
resuscitate this specialized population. Even our disaster preparedness 
plans have not fully addressed the unique needs posed by children 
injured in such events.
  EMSC remains the only federal program dedicated to examining the best 
ways to deliver various forms of care to children in emergency 
settings. Re-authorization of EMSC will ensure that children's needs 
will be given the due attention they deserve and that coordination and 
expansion of services for victims of life-threatening illnesses and 
injuries will be available throughout the United States.
  I look forward to re-authorization of this important legislation and 
the continued advances in our emergency healthcare delivery system.
  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. 60

       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 ``Wakefield Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress makes the following findings:
       (1) There are 31,000,000 child and adolescent visits to the 
     nation's emergency departments every year, with children 
     under the age of 3 years accounting for most of these visits.
       (2) Ninety percent of children requiring emergency care are 
     seen in general hospitals, not in free-standing children's 
     hospitals, with one-quarter to one-third of the patients 
     being children in the typical general hospital emergency 
     department.
       (3) Severe asthma and respiratory distress are the most 
     common emergencies for pediatric patients, representing 
     nearly one-third of all hospitalizations among children under 
     the age of 15 years, while seizures, shock, and airway 
     obstruction are other common pediatric emergencies, followed 
     by cardiac arrest and severe trauma.
       (4) Up to 20 percent of children needing emergency care 
     have underlying medical conditions such as asthma, diabetes, 
     sickle-cell disease, low birthweight, and bronchopulmonary 
     dysplasia.
       (5) Significant gaps remain in emergency medical care 
     delivered to children, with 43 percent of hospitals lacking 
     cervical collars (used to stabilize spinal injuries) for 
     infants, less than half (47 percent) of hospitals with no 
     pediatric intensive care unit having a written transfer 
     agreement with a hospital that does have such a unit, one-
     third of States lacking a physician available on-call 24 
     hours a day to provide medical direction to emergency medical 
     technicians or other non-physician emergency care providers, 
     and even those States with such availability lacking full 
     State coverage.
       (6) Providers must be educated and trained to manage 
     children's unique physical and psychological needs in 
     emergency situations, and emergency systems must be equipped 
     with the resources needed to care for this especially 
     vulnerable population.
       (7) The Emergency Medical Services for Children (EMSC) 
     Program under section 1910 of the Public Health Service Act 
     (42 U.S.C. 300w-9) is the only Federal program that focuses 
     specifically on improving the pediatric components of 
     emergency medical care.
       (8) The EMSC Program promotes the nationwide exchange of 
     pediatric emergency medical care knowledge and collaboration 
     by those with an interest in such care and is depended upon 
     by Federal agencies and national organizations to ensure that 
     this exchange of knowledge and collaboration takes place.
       (9) The EMSC Program also supports a multi-institutional 
     network for research in pediatric emergency medicine, thus 
     allowing providers to rely on evidence rather than anecdotal 
     experience when treating ill or injured children.
       (10) States are better equipped to handle occurrences of 
     critical or traumatic injury due to advances fostered by the 
     EMSC program, with--
       (A) forty-eight States identifying and requiring all EMSC-
     recommended pediatric equipment on Advanced Life Support 
     ambulances;
       (B) forty-four States employing pediatric protocols for 
     medical direction;
       (C) forty-one States utilizing pediatric guidelines for 
     acute care facility identification, ensuring that children 
     get to the right hospital in a timely manner; and
       (D) thirty-six of the forty-two States having statewide 
     computerized data collection systems now producing reports on 
     pediatric emergency medical services using statewide data.
       (11) Systems of care must be continually maintained, 
     updated, and improved to ensure that research is translated 
     into practice, best practices are adopted, training is 
     current, and standards and protocols are appropriate.
       (12) Now celebrating its twentieth anniversary, the EMSC 
     Program has proven effective over two decades in driving key 
     improvements in emergency medical services to children, and 
     should continue its mission to reduce child and youth 
     morbidity and mortality by supporting improvements in the 
     quality of all emergency medical and emergency surgical care 
     children receive.
       (b) Purpose.--It is the purpose of this Act to reduce child 
     and youth morbidity and mortality by supporting improvements 
     in the quality of all emergency medical care children 
     receive.

     SEC. 3. REAUTHORIZATION OF EMERGENCY MEDICAL SERVICES FOR 
                   CHILDREN PROGRAM.

       Section 1910 of the Public Health Service Act (42 U.S.C. 
     300w-9) is amended--
       (1) in subsection (a), by striking ``3-year period (with an 
     optional 4th year'' and inserting ``4-year period (with an 
     optional 5th year'';
       (2) in subsection (d)--
       (A) by striking ``and such sums'' and inserting ``such 
     sums''; and
       (B) by inserting before the period the following: 
     ``$23,000,000 for fiscal year 2008, and such sums as may be 
     necessary for each of fiscal years 2009 through 2011'';
       (3) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively; and
       (4) by inserting after subsection (a) the following:
       ``(b)(1) The purpose of the program established under this 
     section is to reduce child and youth morbidity and mortality 
     by supporting improvements in the quality of all emergency 
     medical care children receive, through the promotion of 
     projects focused on the expansion and improvement of such 
     services, including those in rural areas and those for 
     children with special healthcare needs. In carrying out this 
     purpose, the Secretary shall support emergency medical 
     services for children by supporting projects that--
       ``(A) develop and present scientific evidence;
       ``(B) promote existing and innovative technologies 
     appropriate for the care of children: or
       ``(C) provide information on health outcomes and 
     effectiveness and cost-effectiveness.
       ``(2) The program established under this section shall--
       ``(A) strive to enhance the pediatric capability of 
     emergency medical service systems originally designed 
     primarily for adults; and
       ``(B) in order to avoid duplication and ensure that Federal 
     resources are used efficiently and effectively, be 
     coordinated with all research, evaluations, and awards 
     related to emergency medical services for children

[[Page 142]]

     undertaken and supported by the Federal Government.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 61. A bill to amend chapter 81 of title 5, United States Code, to 
authorize the use of clinical social workers to conduct evaluations to 
determine work-related emotional and mental illnesses; to the Committee 
on Homeland Security and Governmental Affairs.
  Mr. INOUYE. Mr. President, today I introduce the Clinical Social 
Workers' Recognition Act to correct a continuing problem in the Federal 
Employees Compensation Act. This bill will also provide clinical social 
workers the recognition they deserve as independent providers of 
quality mental health care services.
  Clinical social workers are authorized to independently diagnose and 
treat mental illnesses through public and private health insurance 
plans across the Nation. However, Title V of the United States Code, 
does not permit the use of mental health evaluations conducted by 
clinical social workers for use as evidence in determining workers' 
compensation claims brought by federal employees. The bill I am 
introducing corrects this problem.
  It is a sad irony that federal employees may select a clinical social 
worker through their health plans to provide mental health services, 
but may not go to this same professional for workers' compensation 
evaluations. The failure to recognize the validity of evaluations 
provided by clinical social workers unnecessarily limits federal 
employees' selection of a provider to conduct the workers' compensation 
mental health evaluations. Lack of this recognition may well impose an 
undue burden on Federal employees where clinical social workers are the 
only available providers of mental health care.
  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. 61

       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 ``Clinical Social Workers' 
     Recognition Act of 2007''.

     SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL WORKERS FOR FEDERAL 
                   WORKER COMPENSATION CLAIMS.

       Section 8101 of title 5, United States Code, is amended--
       (1) in paragraph (2), by striking ``and osteopathic 
     practitioners'' and inserting ``osteopathic practitioners, 
     and clinical social workers''; and
       (2) in paragraph (3), by striking ``osteopathic 
     practitioners'' and inserting ``osteopathic practitioners, 
     clinical social workers,''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 62. A bill to treat certain hospital support organizations as 
qualified organizaitons for purposes of determining acquisition 
indebtedness; to the Committee on Finance.
  Mr. INOUYE. Mr. President, the legislation I have introduced will 
extend to qualified teaching hospital support organizations the 
existing debt-financed safe harbor rule. Congress enacted that rule to 
support the public service activities of tax-exempt schools, 
universities, pension funds, and consortia of such institutions. Our 
teaching hospitals require similar support.
  A New York Times article on June 21, 2002, described the financial 
problems which nonprofit hospitals are facing to modernize their 
facilities and meet the growing demand for charitable medical care. The 
problems have grown more urgent since that article appeared.
  On November 22, 2006, the Wall Street Journal noted the rising 
numbers of uninsured patients who fill hospital emergency rooms without 
paying their bills. In 2005, 46.6 million Americans had no health 
insurance. Compounding the growing demand for charitable care, new 
safety and infection-prevention standards require hospitals to 
undertake massive improvements.
  As a result, the article stated, for-profit hospitals are moving from 
older areas to affluent locations where residents can afford to pay for 
treatment. These private hospitals, the reporter pointed out, typically 
have no mandate for community service. In contrast, nonprofit hospitals 
must fulfill a community service requirement. They must stretch their 
resources to provide increased charitable care, update their 
facilities, and maintain skilled staffing. Both the Wall Street Journal 
and the New York Times noted the resulting closures of nonprofit 
hospitals due to this financial strain.
  The problem is particularly severe for teaching hospitals. As the 
Times article said, nonprofit hospitals provide nearly all the 
postgraduate medical education in the United States. Post-graduate 
medical instruction is by nature not profitable. Instruction in the 
treatment of mental disorders and trauma is especially costly.
  Despite their financial problem the nation's nonprofit hospitals 
strive to deliver a very high level of service. A study in the December 
2006 issue of Archives of Internal Medicine had surveyed hospitals' 
qualify of care in four areas of treatment. It found that nonprofit 
hospitals consistently outperformed for-profit hospitals. It also found 
that teaching hospitals had a higher level of performance in treatment 
and diagnosis. It said that investment in technology and staffing leads 
to better care. And it recommended that alternative payments and 
sources of payments be considered to finance these improvements.
  The success and financial constraints of nonprofit teaching hospitals 
is evident in the work of the Queen's Health Systems in my State. This 
146-year-old organization maintains the largest, private, nonprofit 
hospital in Hawaii. It serves as the primary clinical teaching facility 
for the University of Hawaii's medical residency programs in medicine, 
general surgery, orthopedic surgery, obstetrics-gynecology, pathology, 
and psychiatry. It conducts educational and training programs for 
nurses and allied health personnel. It operates the only trauma unit as 
well as the chief behavioral health program in the State. It maintains 
clinics throughout Hawaii, health programs for Native Hawaiians, and a 
small hospital on a rural, economically depressed island. Its medical 
reference library is the largest in the State. Not the least, it 
annually provides millions of dollars in uncompensated health services. 
To help pay for these community benefits, the Queen's Health Systems, 
as other nonprofit teaching hospitals, relies significantly on income 
from its endowment.
  In the past, the Congress has allowed tax-exempt schools, colleges, 
universities, and pension funds to invest their endowment in real 
estate so as to better meet their financial needs. Under the tax code 
these organizations can incur debt for real estate investments without 
triggering the tax on unrelated business activities.
  If the Queen's Health Systems were part of a university, it could 
borrow without incurring an unrelated business income tax. Not being 
part of a university, however, a teaching hospital and its support 
organization run into the tax code's debt financing prohibition. 
Nonprofit teaching hospitals have the same if not more pressing needs 
as universities, school, and pension trusts. The same safe harbor rule 
should be extended to teaching hospitals.
  My bill would allow the support organizations for qualified teaching 
hospitals to engage in limited borrowing to enhance their endowment 
income. The proposal for teaching hospitals is actually more restricted 
than current law for schools, universities, and pension trusts. Under 
safeguards developed by the Joint Committee on Taxation staff, a 
support organization for a teaching hospital can not buy and develop 
land on a commercial basis. The proposal is tied directly to the 
organization endowment. The staff's revenue estimate show that the 
provision with its general application will help a number a teaching 
hospitals.
  The U.S. Senate several times has acted favorably on this proposal. 
The Senate adopted a similar provision in H.R. 1836 the Economic Growth 
and Tax Relief Act of 2001. The House conferees on that bill, however, 
objected that the provision was unrelated to the bill's focus on 
individual tax relief and the conference deleted the provision

[[Page 143]]

from the final legislation. Subsequently, the Finance Committee 
included the provision in H.R. 7 the CARE Act of 2002 and in S. 476 the 
CARE Act of 2003 which the Senate passed. In the last Congress S. 6 the 
Marriage, Opportunity, Relief, and Empowerment Act of 2005, which the 
Senate leadership introduced, also included the proposal.
  As the Senate Finance Committee's recent hearings show, substantial 
health needs would go unmet if not for our charitable hospitals. It is 
time for the Congress to assist the nation's teaching hospitals in 
their charitable, educational service.
  I ask unanimous consent that the text of my 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. 62

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

     SECTION 1. TREATMENT OF CERTAIN HOSPITAL SUPPORT 
                   ORGANIZATIONS AS QUALIFIED ORGANIZATIONS FOR 
                   PURPOSES OF DETERMINING ACQUISITION 
                   INDEBTEDNESS.

       (a) In General.--Subparagraph (C) of section 514(c)(9) of 
     the Internal Revenue Code of 1986 (relating to real property 
     acquired by a qualified organization) is amended by striking 
     ``or'' at the end of clause (ii), by striking the period at 
     the end of clause (iii) and inserting ``; or'', and by adding 
     at the end the following new clause:
       ``(iv) a qualified hospital support organization (as 
     defined in subparagraph (I)).''.
       (b) Qualified Hospital Support Organizations.--Paragraph 
     (9) of section 514(c) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new subparagraph:
       ``(I) Qualified hospital support organizations.--For 
     purposes of subparagraph (C)(iv), the term `qualified 
     hospital support organization' means, with respect to any 
     eligible indebtedness (including any qualified refinancing of 
     such eligible indebtedness), a support organization (as 
     defined in section 509(a)(3)) which supports a hospital 
     described in section 119(d)(4)(B) and with respect to which--
       ``(i) more than half of its assets (by value) at any time 
     since its organization--

       ``(I) were acquired, directly or indirectly, by 
     testamentary gift or devise, and
       ``(II) consisted of real property, and

       ``(ii) the fair market value of the organization's real 
     estate acquired, directly or indirectly, by gift or devise, 
     exceeded 25 percent of the fair market value of all 
     investment assets held by the organization immediately prior 
     to the time that the eligible indebtedness was incurred.
     For purposes of this subparagraph, the term `eligible 
     indebtedness' means indebtedness secured by real property 
     acquired by the organization, directly or indirectly, by gift 
     or devise, the proceeds of which are used exclusively to 
     acquire any leasehold interest in such real property or for 
     improvements on, or repairs to, such real property. A 
     determination under clauses (i) and (ii) of this subparagraph 
     shall be made each time such an eligible indebtedness (or the 
     qualified refinancing of such an eligible indebtedness) is 
     incurred. For purposes of this subparagraph, a refinancing of 
     such an eligible indebtedness shall be considered qualified 
     if such refinancing does not exceed the amount of the 
     refinanced eligible indebtedness immediately before the 
     refinancing.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to indebtedness incurred on or after the date of 
     the enactment of this Act.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 63. A bill to amend title XVIII of the Social Security Act to 
remove the restriction that a clinical psychologist or clinical social 
worker provide services in a comprehensive outpatient rehabilitation 
facility to a patient only under the care of a physician; to the 
Committee on Finance.
  Mr. INOUYE. Mr. President, today I introduce legislation to authorize 
the autonomous functioning of clinical psychologists and clinical 
social workers within the Medicare comprehensive outpatient 
rehabilitation facility program.
  In my judgment, it is unfortunate that Medicare requires clinical 
supervision of the services provided by certain health professionals 
and does not allow them to function to the full extent of their state 
practice licenses. Those who need the services of outpatient 
rehabilitation facilities should have access to a wide range of social 
and behavioral science expertise. Clinical psychologists and clinical 
social workers are recognized as independent providers of mental health 
care services under the Federal Employee Health Benefits Program, the 
TRICARE Military Health Program of the Uniformed Services, the Medicare 
(Part B) Program, and numerous private insurance plans. This 
legislation will ensure that these qualified professionals achieve the 
same recognition under the Medicare comprehensive outpatient 
rehabilitation facility program.
  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. 63

       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 ``Autonomy for Psychologists 
     and Social Workers Act of 2007''.

     SEC. 2. REMOVAL OF RESTRICTION THAT A CLINICAL PSYCHOLOGIST 
                   OR CLINICAL SOCIAL WORKER PROVIDE SERVICES IN A 
                   COMPREHENSIVE OUTPATIENT REHABILITATION 
                   FACILITY TO A PATIENT ONLY UNDER THE CARE OF A 
                   PHYSICIAN.

       (a) In General.--Section 1861(cc)(2)(E) of the Social 
     Security Act (42 U.S.C. 1395x(cc)(2)(E)) is amended by 
     striking ``physician'' and inserting ``physician, except that 
     a patient receiving qualified psychologist services (as 
     defined in subsection (ii)) may be under the care of a 
     clinical psychologist with respect to such services to the 
     extent permitted under State law and except that a patient 
     receiving clinical social worker services (as defined in 
     subsection (hh)(2)) may be under the care of a clinical 
     social worker with respect to such services to the extent 
     permitted under State law''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to services provided on or after January 1, 2008.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 64. A bill to amend title VII of the Public Health Service Act to 
ensure that social work students or social work schools are eligible 
for support under certain programs to assist individuals in pursuing 
health careers and programs of grants for training projects in 
geriatrics, and to establish a social work training program to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, on behalf of our Nation's clinical social 
workers, I am introducing legislation to amend the Public Health 
Service Act. This legislation would: 1. establish a new social work 
training program, 2. ensure that social work students are eligible for 
support under the Health Careers Opportunity Program, 3. provide social 
work schools with eligibility for support under the Minority Centers of 
Excellence programs, 4. permit schools offering degrees in social work 
to obtain grants for training projects in geriatrics, and 5. ensure 
that social work is recognized as a profession under the Public Health 
Maintenance Organization Act.
  Despite the impressive range of services social workers provide to 
people of this nation, few federal programs exist to provide 
opportunities for social work training in health and mental health 
care.
  Social workers have long provided quality mental health services to 
our citizens and continue to be at the forefront of establishing 
innovative programs to serve our disadvantaged populations. I believe 
it is important to ensure that the special expertise social workers 
possess continues to be available to the citizens of this nation. This 
bill, by providing financial assistance to schools of social work and 
social work students, acknowledges the long history and critical 
importance of the services provided by social work professionals. I 
believe it is time to provide them with the recognition they deserve.
  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. 64

       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 ``Strengthen Social Work 
     Training Act of 2007''.

[[Page 144]]



     SEC. 2. SOCIAL WORK STUDENTS.

       (a) Health Professions Schools.--Section 736(g)(1)(A) of 
     the Public Health Service Act (42 U.S.C. 293(g)(1)(A)) is 
     amended by striking ``graduate program in behavioral or 
     mental health'' and inserting ``graduate program in 
     behavioral or mental health, including a school offering 
     graduate programs in clinical social work, or programs in 
     social work''.
       (b) Scholarships.--Section 737(d)(1)(A) of the Public 
     Health Service Act (42 U.S.C. 293a(d)(1)(A)) is amended by 
     striking ``mental health practice'' and inserting ``mental 
     health practice (including graduate programs in clinical 
     psychology, graduate programs in clinical social work, or 
     programs in social work)''.
       (c) Faculty Positions.--Section 738(a)(3) of the Public 
     Health Service Act (42 U.S.C. 293b(a)(3)) is amended by 
     striking ``offering graduate programs in behavioral and 
     mental health'' and inserting ``offering graduate programs in 
     behavioral and mental health, including graduate programs in 
     clinical psychology, graduate programs in clinical social 
     work, or programs in social work''.

     SEC. 3. GERIATRICS TRAINING PROJECTS.

       Section 753(b)(1) of the Public Health Service Act (42 
     U.S.C. 294c(b)(1)) is amended by inserting ``schools offering 
     degrees in social work,'' after ``teaching hospitals,''.

     SEC. 4. SOCIAL WORK TRAINING PROGRAM.

       Subpart 2 of part E of title VII of the Public Health 
     Service Act (42 U.S.C. 295 et seq.) is amended--
       (1) by redesignating section 770 as section 770A;
       (2) by inserting after section 769, the following:

     ``SEC. 770. SOCIAL WORK TRAINING PROGRAM.

       ``(a) Training Generally.--The Secretary may make grants 
     to, or enter into contracts with, any public or nonprofit 
     private hospital, any school offering programs in social 
     work, or to or with a public or private nonprofit entity that 
     the Secretary has determined is capable of carrying out such 
     grant or contract--
       ``(1) to plan, develop, and operate, or participate in, an 
     approved social work training program (including an approved 
     residency or internship program) for students, interns, 
     residents, or practicing physicians;
       ``(2) to provide financial assistance (in the form of 
     traineeships and fellowships) to students, interns, 
     residents, practicing physicians, or other individuals, who--
       ``(A) are in need of such assistance;
       ``(B) are participants in any such program; and
       ``(C) plan to specialize or work in the practice of social 
     work;
       ``(3) to plan, develop, and operate a program for the 
     training of individuals who plan to teach in social work 
     training programs; and
       ``(4) to provide financial assistance (in the form of 
     traineeships and fellowships) to individuals who are 
     participants in any such program and who plan to teach in a 
     social work training program.
       ``(b) Academic Administrative Units.--
       ``(1) In general.--The Secretary may make grants to or 
     enter into contracts with schools offering programs in social 
     work to meet the costs of projects to establish, maintain, or 
     improve academic administrative units (which may be 
     departments, divisions, or other units) to provide clinical 
     instruction in social work.
       ``(2) Preference in making awards.--In making awards of 
     grants and contracts under paragraph (1), the Secretary shall 
     give preference to any qualified applicant for such an award 
     that agrees to expend the award for the purpose of--
       ``(A) establishing an academic administrative unit for 
     programs in social work; or
       ``(B) substantially expanding the programs of such a unit.
       ``(c) Duration of Award.--The period during which payments 
     are made to an entity from an award of a grant or contract 
     under subsection (a) may not exceed 5 years. The provision of 
     such payments shall be subject to annual approval by the 
     Secretary and subject to the availability of appropriations 
     for the fiscal year involved to make the payments.
       ``(d) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for each of the fiscal years 2008 through 2010.
       ``(2) Allocation.--Of the amounts appropriated under 
     paragraph (1) for a fiscal year, the Secretary shall make 
     available not less than 20 percent for awards of grants and 
     contracts under subsection (b).''; and
       (3) in section 770A (as redesignated by paragraph (1)) by 
     inserting ``other than section 770,'' after ``carrying out 
     this subpart,''.

     SEC. 5. CLINICAL SOCIAL WORKER SERVICES.

       Section 1302 of the Public Health Service Act (42 U.S.C. 
     300e-1) is amended--
       (1) in paragraphs (1) and (2), by inserting ``clinical 
     social worker,'' after ``psychologist,'' each place the term 
     appears;
       (2) in paragraph (4)(A), by striking ``and psychologists'' 
     and inserting ``psychologists, and clinical social workers''; 
     and
       (3) in paragraph (5), by inserting ``clinical social 
     work,'' after ``psychology,''.
                                 ______
                                 
      By Mr. INHOFE (for himself, Mr. Stevens, Mr. Lieberman, and Mr. 
        Feingold):
  S. 65. A bill to modify the age-60 standard for certain pilots and 
for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. INHOFE. Mr. President, I rise today, as an experienced pilot over 
age 60, along with my colleagues, Senator Stevens, Senator Lieberman 
and Senator Feingold, to once again introduce a bill that will help end 
age discrimination among commercial airline pilots. Our bill will 
abolish the Federal Aviation Administration's (FAA) arcane Age 60 Rule 
a regulation that has unjustly forced the retirement of airline pilots 
the day they turn 60 for more than 45 years.
  Our bipartisan bill called the ``Freedom to Fly Act'' would replace 
the dated FAA rule with a new international standard adopted this past 
November by the International Civil Aviation Organization (ICAO) which 
allows pilots to fly to 65 as long as the copilot is under 60.
  Since the adoption of the ICAO standard in November of this year, 
foreign pilots have been flying and working in U.S. Airspace under this 
new standard up to 65 years of age a privilege the FAA has not been 
willing to grant to American pilots flying the same aircraft in the 
same airspace.
  This bill may seem familiar; I have introduced similar legislation in 
the past two Congresses and I am dedicated to ensuring its passage this 
year. And it has never been more urgent.
  We cannot continue to allow our FAA to force the retirement of 
America's most experienced commercial pilots at the ripe young age of 
60 while they say to their counterparts flying for foreign flags 
``Welcome to our airspace.''
  Many of these great American pilots are veterans who have served our 
country and the flying public for decades. Many of them have suffered 
wage concessions and lost their pensions as the airline industry has 
faced hard times and bankruptcies. But these American pilots are not 
asking for a handout.
  They are just saying to the FAA; ``Give me the same right you granted 
our foreign counterparts with the stroke of a pen this November. Let us 
continue to fly, continue to work, continue to contribute to the tax 
rolls for an additional 5 years.'' We join them and echo their 
sentiments to FAA Administrator Blakey. As far as we are concerned, 
that is the least we can do for America's pilots, who are considered 
the best and the safest pilots in the world.
  Most nations have abolished mandatory age 60 retirement rules. Many 
countries, including Canada, Australia, and New Zealand have no upper 
age limit at all and consider an age-based retirement rule 
discriminatory. Sadly though, the United States was one of only four 
member countries of ICAO, along with Pakistan, Colombia, and France, to 
dissent to the ICAO decision to increase the retirement age to 65 last 
year.
  The Age 60 Rule has no basis in science or safety and never has. The 
Aerospace Medical Association says that ``There is insufficient medical 
evidence to support restriction of pilot certification based upon age 
alone.'' Similarly, the American Association of Retired Persons, Equal 
Employment Opportunity Commission, the Seniors Coalition, and the 
National Institute of Aging of NIH all agree that the Age 60 Rule is 
simply age discrimination and should end. My colleagues and I agree.
  When the rule was implemented in 1960 life expectancies were much 
lower at just over 69 and a half years. Today they are much higher at 
more than 77 years. The FAA's own data shows that pilots over age 60 
are as safe as, and in some cases safer than, their younger 
counterparts. In the process of adopting the new international 
standard, ICAO studied more than 3,000 over-60 pilots from 64 nations, 
totaling at least 15,000 pilot-years of flying experience and found the 
risk of medical incapacitation ``a risk so low that it can be safely 
disregarded.''
  Furthermore, a recent economic study shows that allowing pilots to 
fly to age 65 would save almost $1 billion per year in added Social 
Security,

[[Page 145]]

Medicare, and tax payments and delayed Pension Benefit Guarantee 
Corporation (PBGC) payments.
  I am encouraged by the progress that has been made. In the 109th 
Congress, the Senate Commerce Committee reported the modified bill with 
the ICAO standard favorably and the Senate Transportation, Treasury, 
the Judiciary, Housing and Urban Development, and Related Agencies 
Appropriations Committee included a version of S. 65 in its bill. The 
FAA recently convened an Aviation Rulemaking Committee to study the 
issue of forced retirement. We have yet to see that report but it is 
our understanding the report was persuasive enough that the 
Administrator is considering a change in the rule now.
  We are encouraged by that, but we also know that legislation will be 
needed to direct the FAA to pursue these changes in a timely manner and 
in a way that will protect companies and their unions from new lawsuits 
that might arise as a result of the changes. Our bill accomplishes 
that. Whether the FAA decides to change the rule on its own or not, 
Congress needs to do the right thing and pass S. 65 to fully ensure 
that our own American pilots have the same rights and privileges to 
work at least until age 65 that were accorded to foreign pilots over 
the age of 60 this fall.
  I urge the rest of my colleagues to support the Freedom to Fly Act 
and help us keep America's most experienced pilots in the air.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 66. A bill to require the Secretary of the Army to determine the 
validity of the claims of certain Filipinos that they performed 
military service on behalf of the United States during World War II; to 
the Committee on Veterans' Affairs.
  Mr. INOUYE. Mr. President, I am reintroducing legislation today that 
would direct the Secretary of the Army to determine whether certain 
nationals of the Philippine Islands performed military service on 
behalf of the United States during World War II.
  Our Filipino veterans fought side by side with Americans and 
sacrificed their lives on behalf of the United States. This legislation 
would confirm the validity of their claims and further allow qualified 
individuals the opportunity to apply for military and veterans benefits 
that, I believe, they are entitled to. As this population becomes 
older, it is important for our Nation to extend its firm commitment to 
the Filipino veterans and their families who participated in making us 
the great Nation that we are today.
  I ask unanimous consent that the text of my 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. 66

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

     SECTION 1. DETERMINATIONS BY THE SECRETARY OF THE ARMY.

       (a) In General.--Upon the written application of any person 
     who is a national of the Philippine Islands, the Secretary of 
     the Army shall determine whether such person performed any 
     military service in the Philippine Islands in aid of the 
     Armed Forces of the United States during World War II which 
     qualifies such person to receive any military, veterans', or 
     other benefits under the laws of the United States.
       (b) Information To Be Considered.--In making a 
     determination for the purpose of subsection (a), the 
     Secretary shall consider all information and evidence 
     (relating to service referred to in subsection (a)) that is 
     available to the Secretary, including information and 
     evidence submitted by the applicant, if any.

     SEC. 2. CERTIFICATE OF SERVICE.

       (a) Issuance of Certificate of Service.--The Secretary of 
     the Army shall issue a certificate of service to each person 
     determined by the Secretary to have performed military 
     service described in section 1(a).
       (b) Effect of Certificate of Service.--A certificate of 
     service issued to any person under subsection (a) shall, for 
     the purpose of any law of the United States, conclusively 
     establish the period, nature, and character of the military 
     service described in the certificate.

     SEC. 3. APPLICATIONS BY SURVIVORS.

       An application submitted by a surviving spouse, child, or 
     parent of a deceased person described in section 1(a) shall 
     be treated as an application submitted by such person.

     SEC. 4. LIMITATION PERIOD.

       The Secretary of the Army may not consider for the purpose 
     of this Act any application received by the Secretary more 
     than two years after the date of the enactment of this Act.

     SEC. 5. PROSPECTIVE APPLICATION OF DETERMINATIONS BY THE 
                   SECRETARY OF THE ARMY.

       No benefits shall accrue to any person for any period 
     before the date of the enactment of this Act as a result of 
     the enactment of this Act.

     SEC. 6. REGULATIONS.

       The Secretary of the Army shall prescribe regulations to 
     carry out sections 1, 3, and 4.

     SEC. 7. RESPONSIBILITIES OF THE SECRETARY OF VETERANS 
                   AFFAIRS.

       Any entitlement of a person to receive veterans' benefits 
     by reason of this Act shall be administered by the Department 
     of Veterans Affairs pursuant to regulations prescribed by the 
     Secretary of Veterans Affairs.

     SEC. 8. DEFINITION.

       In this Act, the term ``World War II'' means the period 
     beginning on December 7, 1941, and ending on December 31, 
     1946.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 67. A bill to amend title 10, United States Code, to permit former 
members of the Armed Forces who have a service-connected disability 
rated as total to travel on military aircraft in the same manner and to 
the same extent as retired members of the Armed Forces are entitled to 
travel on such aircraft; to the Committee on Armed Services.
  Mr. INOUYE. Mr. President, today I am reintroducing a bill which is 
of great importance to a group of patriotic Americans. This legislation 
is designed to extend space-available travel privileges on military 
aircraft to those who have been totally disabled in the service of our 
country.
  Currently, retired members of the Armed Services are permitted to 
travel on a space-available basis on non-scheduled military flights 
within the continental United States, and on scheduled overseas flights 
operated by the Military Airlift Command. My bill would provide the 
same benefits for veterans with 100 percent service-connected 
disabilities.
  We owe these heroic men and women who have given so much to our 
country a debt of gratitude. Of course, we can never repay them for the 
sacrifices they have made on behalf of our Nation, but we can surely 
try to make their lives more pleasant and fulfilling. One way in which 
we can help is to extend military travel privileges to these 
distinguished American veterans. I have received numerous letters from 
all over the country attesting to the importance attached to this issue 
by veterans. Therefore, I ask that my colleagues show their concern and 
join me in saying ``thank you'' by supporting this legislation.
  I ask unanimous consent that the text of my 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. 67

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

     SECTION 1. TRAVEL ON MILITARY AIRCRAFT OF CERTAIN DISABLED 
                   FORMER MEMBERS OF THE ARMED FORCES.

       (a) In General.--Chapter 53 of title 10, United States 
     Code, is amended by inserting after section 1060b the 
     following new section:

     ``Sec. 1060c. Travel on military aircraft: certain disabled 
       former members of the armed forces

       ``The Secretary of Defense shall permit any former member 
     of the armed forces who is entitled to compensation under the 
     laws administered by the Secretary of Veterans Affairs for a 
     service-connected disability rated as total to travel, in the 
     same manner and to the same extent as retired members of the 
     armed forces, on unscheduled military flights within the 
     continental United States and on scheduled overseas flights 
     operated by the Air Mobility Command. The Secretary of 
     Defense shall permit such travel on a space-available 
     basis.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1060b the following new item:

``1060c. Travel on military aircraft: certain disabled former members 
              of the armed forces.''.
                                 ______
                                 
      By Mr. KOHL (for himself and Ms. Snowe):
  S. 69. A bill to authorize appropriations for the Hollings 
Manufacturing Extension Partnership Program, and

[[Page 146]]

for other purposes; to the Committee on the Judiciary.
  Mr. KOHL. Mr. President, I rise in support of the Kohl-Snowe 
legislation which would fund the Manufacturing Extension Partnership, 
MEP, for fiscal year 2008-fiscal year 2012. I am a long-time supporter 
of the MEP program and believe manufacturing is crucial to the U.S. 
economy. American manufacturers are a cornerstone of the American 
economy and embody the best in American values. A healthy manufacturing 
sector is key to better jobs, rising productivity and higher standards 
of living in the United States. Every individual and industry depends 
on manufactured goods. In addition, innovations and productivity gains 
in the manufacturing sector provide benefits far beyond the products 
themselves.
  Small- and medium-sized manufacturers face unprecedented challenges 
in today's global economy which threaten the existence of manufacturing 
jobs in the United States. If it isn't China pirating our technologies 
and promising a low-wage workforce, it is soaring heath care and energy 
costs that cut into profits. Manufacturers today are seeking ways to 
level the playing field so they can compete globally.
  One way to level the playing field--and increase the competitiveness 
of manufacturers--is through the MEP program. MEP streamlines 
operations, integrates new technologies, shortens production times and 
lowers costs, leading to improved efficiency by offering resources to 
manufacturers, including organized workshops and consulting projects. 
In Wisconsin, three of our largest corporations--John Deere, Harley-
Davidson, and Oshkosh Truck--are working with Wisconsin MEP centers to 
develop domestic supply chains. I am proud to say that these companies 
found it more profitable to work with small- and medium-sized Wisconsin 
firms than to look overseas for cheap labor.
  You would be hard pressed to find another program that has produced 
the results that MEP has. In Wisconsin alone in fiscal year 2006, WMEP 
reported 2,696 new or retained workers, sales of $163 million, cost 
savings of $33 million, and plant and equipment investments of $37 
million.
  Manufacturing is an integral part of a web of inter-industry 
relationships that create a stronger economy. Manufacturing sells goods 
to other sectors in the economy and, in turn, buys products and 
services from them. Manufacturing spurs demand for everything from raw 
materials to intermediate components to software to financial, legal, 
health, accounting, transportation, and other services in the course of 
doing business.
  The future of manufacturing in the United States will be largely 
determined by how well small- and medium-sized companies cope with the 
changes in today's global economy. To be successful, businesses need 
state-of-the-art technologies to craft products more efficiently, a 
skilled workforce to meet the demands of modern manufacturers and a 
commitment from the government to provide the resources to allow 
companies to remain competitive.
  At a time when economic recovery and global competitiveness are 
national priorities, I believe MEP continues to be a wise investment.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 70. A bill to restore the traditional day of observance of 
Memorial Day, and for other purposes; to the Committee on the 
Judiciary.
  Mr. INOUYE. Mr. President, in our effort to accommodate many 
Americans by making Memorial Day the last Monday in May, we have lost 
sight of the significance of this day to our Nation. My bill would 
restore Memorial Day to May 30 and authorize our flag to fly at half 
mast on that day. In addition, this legislation would authorize the 
President to issue a proclamation designating Memorial Day and Veterans 
Day as days for prayer and ceremonies. This legislation would help 
restore the recognition our veterans deserve for the sacrifices they 
have made on behalf of our nation.
  I ask unanimous consent that the text of my 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. 70

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

     SECTION 1. RESTORATION OF TRADITIONAL DAY OF OBSERVANCE OF 
                   MEMORIAL DAY.

       (a) Designation of Legal Public Holiday.--Section 6103(a) 
     of title 5, United States Code, is amended by striking 
     ``Memorial Day, the last Monday in May.'' and inserting the 
     following: ``Memorial Day, May 30.''.
       (b) Observances and Ceremonies.--Section 116 of title 36, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``The last Monday in 
     May'' and inserting ``May 30''; and
       (2) in subsection (b)--
       (A) by striking ``and'' at the end of paragraph (3);
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) calling on the people of the United States to observe 
     Memorial Day as a day of ceremonies for showing respect for 
     American veterans of wars and other military conflicts; 
     and''.
       (c) Display of Flag.--Section 6(d) of title 4, United 
     States Code, is amended by striking ``the last Monday in 
     May;'' and inserting ``May 30;''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 71. A bill to amend title 10, United States Code, to authorize 
certain disabled former prisoners of war to use Department of Defense 
commissary and exchange stores; to the Committee on Armed Services.
  Mr. INOUYE. Mr. President, today I am reintroducing legislation to 
enable those former prisoners of war who have been separated honorably 
from their respective services and who have been rated as having a 30 
percent service-connected disability to have the use of both the 
military commissary and post exchange privileges. While I realize it is 
impossible to adequately compensate one who has endured long periods of 
incarceration at the hands of our Nation's enemies, I do feel this 
gesture is both meaningful and important to those concerned because it 
serves as a reminder that our Nation has not forgotten their 
sacrifices.
  I ask unanimous consent that the text of my 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. 71

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

     SECTION 1. USE OF COMMISSARY AND EXCHANGE STORES BY CERTAIN 
                   DISABLED FORMER PRISONERS OF WAR.

       (a) In General.--Chapter 54 of title 10, United States 
     Code, is amended by inserting after section 1064 the 
     following new section:

     ``Sec. 1064a. Use of commissary and exchange stores by 
       certain disabled former prisoners of war

       ``(a) In General.--Under regulations prescribed by the 
     Secretary of Defense, former prisoners of war described in 
     subsection (b) may use commissary and exchange stores.
       ``(b) Covered Individuals.--Subsection (a) applies to any 
     former prisoner of war who--
       ``(1) separated from active duty in the armed forces under 
     honorable conditions; and
       ``(2) has a service-connected disability rated by the 
     Secretary of Veterans Affairs at 30 percent or more.
       ``(c) Definitions.--In this section:
       ``(1) The term `former prisoner of war' has the meaning 
     given that term in section 101(32) of title 38.
       ``(2) The term `service-connected' has the meaning given 
     that term in section 101(16) of title 38.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1064 the following new item:


``1064a. Use of commissary and exchange stores by certain disabled 
              former prisoners of war.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 72. A bill to amend title XVIII of the Social Security Act to 
provide improved reimbursement for clinical social worker services 
under the medicare program; to the Committee on Finance.
  Mr. INOUYE. Mr. President, today I am introducing legislation to 
amend Title XVIII of the Social Security Act to correct discrepancies 
in the reimbursement of clinical social workers

[[Page 147]]

covered through Medicare, Part B. The three proposed changes contained 
in this legislation clarify the current payment process for clinical 
social workers and establish a reimbursement methodology for the 
profession that is similar to other health care professionals 
reimbursed through the Medicare program.
  First, this legislation sets payment for clinical social worker 
services according to a fee schedule established by the Secretary. 
Second, it explicitly states that services and supplies furnished by a 
clinical social worker are a covered Medicare expense, just as these 
services are covered for other mental health professionals in Medicare. 
Third, the bill allows clinical social workers to be reimbursed for 
services provided to a client who is hospitalized.
  Clinical social workers are valued members of our health care 
provider network. They are legally regulated in every State of the 
Nation and are recognized as independent providers of mental health 
care throughout the health care system. It is time to correct the 
disparate reimbursement treatment of this profession under Medicare.
  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. 72

       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 ``Equity for Clinical Social 
     Workers Act of 2007''.

     SEC. 2. IMPROVED REIMBURSEMENT FOR CLINICAL SOCIAL WORKER 
                   SERVICES UNDER MEDICARE.

       (a) In General.--Section 1833(a)(1)(F)(ii) of the Social 
     Security Act (42 U.S.C. 1395l(a)(1)(F)(ii)) is amended to 
     read as follows: ``(ii) the amount determined by a fee 
     schedule established by the Secretary,''.
       (b) Definition of Clinical Social Worker Services 
     Expanded.--Section 1861(hh)(2) of the Social Security Act (42 
     U.S.C. 1395x(hh)(2)) is amended by striking ``services 
     performed by a clinical social worker (as defined in 
     paragraph (1))'' and inserting ``such services and such 
     services and supplies furnished as an incident to such 
     services performed by a clinical social worker (as defined in 
     paragraph (1))''.
       (c) Clinical Social Worker Services Not to Be Included in 
     Inpatient Hospital Services.--Section 1861(b)(4) of the 
     Social Security Act (42 U.S.C. 1395x(b)(4)) is amended by 
     striking ``and services'' and inserting ``clinical social 
     worker services, and services''.
       (d) Treatment of Services Furnished in Inpatient Setting.--
     Section 1832(a)(2)(B)(iii) of the Social Security Act (42 
     U.S.C. 1395k(a)(2)(B)(iii)) is amended--
       (1) by striking ``and services'' and inserting ``clinical 
     social worker services, and services''; and
       (2) by adding ``and'' at the end.
       (e) Effective Date.--The amendments made by this section 
     shall apply to payments made for clinical social worker 
     services furnished on or after January 1, 2008.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 73. A bill to amend title XVIII of the Social Security Act to 
provide for patient protection by establishing minimum nurse staffing 
ratios at certain Medicare providers, and for other purposes; to the 
Committee on Finance.
  Mr. INOUYE. Mr. President, today I introduce the Registered Nurse 
Safe Staffing Act. For over four decades I have been a committed 
supporter of nurses and the delivery of safe patient care. While 
enforceable regulations will help to ensure patient safety, the 
complexity and variability of today's hospitals require that staffing 
patterns be determined at the hospital and unit level, with the 
professional input of registered nurses. More than a decade of research 
demonstrates that nurse staff levels and the skill mix of nursing staff 
directly affect the clinical outcomes of hospitalized patients. Studies 
show that when there are more registered nurses, there are lower 
mortality rates, shorter lengths of stay, reduced costs, and fewer 
complications.
  A study published in the Journal of The American Medical Association 
found that the risks of patient mortality rose by 7 percent for every 
additional patient added to the average nurse's workload. In the midst 
of a nursing shortage and increasing financial pressures, hospitals 
often find it difficult to maintain adequate staffing. While nursing 
research indicates that adequate registered nurse staffing is vital to 
the health and safety of patients, there is no standardized public 
reporting mechanism, nor enforcement of adequate staffing plans. The 
only regulations addressing nursing staff exists vaguely in Medicare 
Conditions of Participation which states: ``The nursing service must 
have an adequate number of licensed registered nurses, licensed 
practice (vocational) nurse, and other personnel to provide nursing 
care to all patients as needed''.
  This bill will require Medicare Participating Hospitals to develop 
and maintain reliable and valid systems to determine sufficient 
registered nurse staffing. Given the demands that the healthcare 
industry faces today, it is our responsibility to ensure that patients 
have access to adequate nursing care. However, we must ensure that the 
decisions by which care is provided are made by the clinical experts, 
the registered nurses caring for these patients. Support of this bill 
supports our nation's nurses during a critical shortage, but more 
importantly, works to ensure the safety of their patients.
  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. 73

       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 ``Registered Nurse Safe 
     Staffing Act of 2007''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) There are hospitals throughout the United States that 
     have inadequate staffing of registered nurses to protect the 
     well-being and health of the patients.
       (2) Studies show that the health of patients in hospitals 
     is directly proportionate to the number of registered nurses 
     working in the hospital.
       (3) There is a critical shortage of registered nurses in 
     the United States.
       (4) The effect of that shortage is revealed in unsafe 
     staffing levels in hospitals.
       (5) Patient safety is adversely affected by these unsafe 
     staffing levels, creating a public health crisis.
       (6) Registered nurses are being required to perform 
     professional services under conditions that do not support 
     quality health care or a healthful work environment for 
     registered nurses.
       (7) As a payer for inpatient and outpatient hospital 
     services for individuals entitled to benefits under the 
     Medicare program established under title XVIII of the Social 
     Security Act, the Federal Government has a compelling 
     interest in promoting the safety of such individuals by 
     requiring any hospital participating in such program to 
     establish minimum safe staffing levels for registered nurses.

     SEC. 3. ESTABLISHMENT OF MINIMUM STAFFING RATIOS BY MEDICARE 
                   PARTICIPATING HOSPITALS.

       (a) Requirement of Medicare Provider Agreement.--Section 
     1866(a)(1) of the Social Security Act (42 U.S.C. 
     1395cc(a)(1)) is amended--
       (1) in subparagraph (U), by striking ``and'' at the end;
       (2) in subparagraph (V), by striking the period at the end 
     and inserting ``, and''; and
       (3) by inserting after subparagraph (V) the following new 
     subparagraph:
       ``(W) in the case of a hospital, to meet the requirements 
     of section 1890.''.
       (b) Requirements.--Title XVIII of the Social Security Act 
     is amended by inserting after section 1889 the following new 
     section:


      ``STAFFING REQUIREMENTS FOR MEDICARE PARTICIPATING HOSPITALS

       ``Sec. 1890.  (a) Establishment of Staffing System.--
       ``(1) In general.--Each participating hospital shall adopt 
     and implement a staffing system that ensures a number of 
     registered nurses on each shift and in each unit of the 
     hospital to ensure appropriate staffing levels for patient 
     care.
       ``(2) Staffing system requirements.--Subject to paragraph 
     (3), a staffing system adopted and implemented under this 
     section shall--
       ``(A) be based upon input from the direct care-giving 
     registered nurse staff or their exclusive representatives, as 
     well as the chief nurse executive;
       ``(B) be based upon the number of patients and the level 
     and variability of intensity of care to be provided, with 
     appropriate consideration given to admissions, discharges, 
     and transfers during each shift;
       ``(C) account for contextual issues affecting staffing and 
     the delivery of care, including architecture and geography of 
     the environment and available technology;

[[Page 148]]

       ``(D) reflect the level of preparation and experience of 
     those providing care;
       ``(E) account for staffing level effectiveness or 
     deficiencies in related health care classifications, 
     including but not limited to, certified nurse assistants, 
     licensed vocational nurses, licensed psychiatric technicians, 
     nursing assistants, aides, and orderlies;
       ``(F) reflect staffing levels recommended by specialty 
     nursing organizations;
       ``(G) establish upwardly adjustable registered nurse-to-
     patient ratios based upon registered nurses' assessment of 
     patient acuity and existing conditions;
       ``(H) provide that a registered nurse shall not be assigned 
     to work in a particular unit without first having established 
     the ability to provide professional care in such unit; and
       ``(I) be based on methods that assure validity and 
     reliability.
       ``(3) Limitation.--A staffing system adopted and 
     implemented under paragraph (1) may not--
       ``(A) set registered-nurse levels below those required by 
     any Federal or State law or regulation; or
       ``(B) utilize any minimum registered nurse-to-patient ratio 
     established pursuant to paragraph (2)(G) as an upper limit on 
     the staffing of the hospital to which such ratio applies.
       ``(b) Reporting, and Release to Public, of Certain Staffing 
     Information.--
       ``(1) Requirements for hospitals.--Each participating 
     hospital shall--
       ``(A) post daily for each shift, in a clearly visible 
     place, a document that specifies in a uniform manner (as 
     prescribed by the Secretary) the current number of licensed 
     and unlicensed nursing staff directly responsible for patient 
     care in each unit of the hospital, identifying specifically 
     the number of registered nurses;
       ``(B) upon request, make available to the public--
       ``(i) the nursing staff information described in 
     subparagraph (A); and
       ``(ii) a detailed written description of the staffing 
     system established by the hospital pursuant to subsection 
     (a); and
       ``(C) submit to the Secretary in a uniform manner (as 
     prescribed by the Secretary) the nursing staff information 
     described in subparagraph (A) through electronic data 
     submission not less frequently than quarterly.
       ``(2) Secretarial responsibilities.--The Secretary shall--
       ``(A) make the information submitted pursuant to paragraph 
     (1)(C) publicly available, including by publication of such 
     information on the Internet site of the Department of Health 
     and Human Services; and
       ``(B) provide for the auditing of such information for 
     accuracy as a part of the process of determining whether an 
     institution is a hospital for purposes of this title.
       ``(c) Recordkeeping; Data Collection; Evaluation.--
       ``(1) Recordkeeping.--Each participating hospital shall 
     maintain for a period of at least 3 years (or, if longer, 
     until the conclusion of pending enforcement activities) such 
     records as the Secretary deems necessary to determine whether 
     the hospital has adopted and implemented a staffing system 
     pursuant to subsection (a).
       ``(2) Data collection on certain outcomes.--The Secretary 
     shall require the collection, maintenance, and submission of 
     data by each participating hospital sufficient to establish 
     the link between the staffing system established pursuant to 
     subsection (a) and--
       ``(A) patient acuity from maintenance of acuity data 
     through entries on patients' charts;
       ``(B) patient outcomes that are nursing sensitive, such as 
     patient falls, adverse drug events, injuries to patients, 
     skin breakdown, pneumonia, infection rates, upper 
     gastrointestinal bleeding, shock, cardiac arrest, length of 
     stay, and patient readmissions;
       ``(C) operational outcomes, such as work-related injury or 
     illness, vacancy and turnover rates, nursing care hours per 
     patient day, on-call use, overtime rates, and needle-stick 
     injuries; and
       ``(D) patient complaints related to staffing levels.
       ``(3) Evaluation.--Each participating hospital shall 
     annually evaluate its staffing system and establish minimum 
     registered nurse staffing ratios to assure ongoing 
     reliability and validity of the system and ratios. The 
     evaluation shall be conducted by a joint management-staff 
     committee comprised of at least 50 percent of registered 
     nurses who provide direct patient care.
       ``(d) Enforcement.--
       ``(1) Responsibility.--The Secretary shall enforce the 
     requirements and prohibitions of this section in accordance 
     with the succeeding provisions of this subsection.
       ``(2) Procedures for receiving and investigating 
     complaints.--The Secretary shall establish procedures under 
     which--
       ``(A) any person may file a complaint that a participating 
     hospital has violated a requirement or a prohibition of this 
     section; and
       ``(B) such complaints are investigated by the Secretary.
       ``(3) Remedies.--If the Secretary determines that a 
     participating hospital has violated a requirement of this 
     section, the Secretary--
       ``(A) shall require the facility to establish a corrective 
     action plan to prevent the recurrence of such violation; and
       ``(B) may impose civil money penalties under paragraph (4).
       ``(4) Civil money penalties.--
       ``(A) In general.--In addition to any other penalties 
     prescribed by law, the Secretary may impose a civil money 
     penalty of not more than $10,000 for each knowing violation 
     of a requirement of this section, except that the Secretary 
     shall impose a civil money penalty of more than $10,000 for 
     each such violation in the case of a participating hospital 
     that the Secretary determines has a pattern or practice of 
     such violations (with the amount of such additional penalties 
     being determined in accordance with a schedule or methodology 
     specified in regulations).
       ``(B) Procedures.--The provisions of section 1128A (other 
     than subsections (a) and (b)) shall apply to a civil money 
     penalty under this paragraph in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A.
       ``(C) Public notice of violations.--
       ``(i) Internet site.--The Secretary shall publish on the 
     Internet site of the Department of Health and Human Services 
     the names of participating hospitals on which civil money 
     penalties have been imposed under this section, the violation 
     for which the penalty was imposed, and such additional 
     information as the Secretary determines appropriate.
       ``(ii) Change of ownership.--With respect to a 
     participating hospital that had a change in ownership, as 
     determined by the Secretary, penalties imposed on the 
     hospital while under previous ownership shall no longer be 
     published by the Secretary of such Internet site after the 1-
     year period beginning on the date of change in ownership.
       ``(e) Whistleblower Protections.--
       ``(1) Prohibition of discrimination and retaliation.--A 
     participating hospital shall not discriminate or retaliate in 
     any manner against any patient or employee of the hospital 
     because that patient or employee, or any other person, has 
     presented a grievance or complaint, or has initiated or 
     cooperated in any investigation or proceeding of any kind, 
     relating to the staffing system or other requirements and 
     prohibitions of this section.
       ``(2) Relief for prevailing employees.--An employee of a 
     participating hospital who has been discriminated or 
     retaliated against in employment in violation of this 
     subsection may initiate judicial action in a United States 
     district court and shall be entitled to reinstatement, 
     reimbursement for lost wages, and work benefits caused by the 
     unlawful acts of the employing hospital. Prevailing employees 
     are entitled to reasonable attorney's fees and costs 
     associated with pursuing the case.
       ``(3) Relief for prevailing patients.--A patient who has 
     been discriminated or retaliated against in violation of this 
     subsection may initiate judicial action in a United States 
     district court. A prevailing patient shall be entitled to 
     liquidated damages of $5,000 for a violation of this statute 
     in addition to any other damages under other applicable 
     statutes, regulations, or common law. Prevailing patients are 
     entitled to reasonable attorney's fees and costs associated 
     with pursuing the case.
       ``(4) Limitation on actions.--No action may be brought 
     under paragraph (2) or (3) more than 2 years after the 
     discrimination or retaliation with respect to which the 
     action is brought.
       ``(5) Treatment of adverse employment actions.--For 
     purposes of this subsection--
       ``(A) an adverse employment action shall be treated as 
     retaliation or discrimination; and
       ``(B) the term `adverse employment action' includes--
       ``(i) the failure to promote an individual or provide any 
     other employment-related benefit for which the individual 
     would otherwise be eligible;
       ``(ii) an adverse evaluation or decision made in relation 
     to accreditation, certification, credentialing, or licensing 
     of the individual; and
       ``(iii) a personnel action that is adverse to the 
     individual concerned.
       ``(f) Relationship to State Laws.--Nothing in this section 
     shall be construed as exempting or relieving any person from 
     any liability, duty, penalty, or punishment provided by any 
     present or future law of any State or political subdivision 
     of a State, other than any such law which purports to require 
     or permit the doing of any act which would be an unlawful 
     practice under this title.
       ``(g) Relationship To Conduct Prohibited Under the National 
     Labor Relations Act or Other Collective Bargaining Laws.--
     Nothing in this section shall be construed as permitting 
     conduct prohibited under the National Labor Relations Act or 
     under any other Federal, State, or local collective 
     bargaining law.
       ``(h) Regulations.--The Secretary shall promulgate such 
     regulations as are appropriate and necessary to implement 
     this section.
       ``(i) Definitions.--In this section:

[[Page 149]]

       ``(1) Participating hospital.--The term `participating 
     hospital' means a hospital that has entered into a provider 
     agreement under section 1866.
       ``(2) Registered nurse.--The term `registered nurse' means 
     an individual who has been granted a license to practice as a 
     registered nurse in at least 1 State.
       ``(3) Unit.--The term `unit' of a hospital is an 
     organizational department or separate geographic area of a 
     hospital, such as a burn unit, a labor and delivery room, a 
     post-anesthesia service area, an emergency department, an 
     operating room, a pediatric unit, a stepdown or intermediate 
     care unit, a specialty care unit, a telemetry unit, a general 
     medical care unit, a subacute care unit, and a transitional 
     inpatient care unit.
       ``(4) Shift.--The term `shift' means a scheduled set of 
     hours or duty period to be worked at a participating 
     hospital.
       ``(5) Person.--The term `person' means 1 or more 
     individuals, associations, corporations, unincorporated 
     organizations, or labor unions.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2008.
                                 ______
                                 
      By Mr. AKAKA (for himself and Mr. Lautenberg):
  S. 82. A bill to reaffirm the authority of the Comptroller General to 
audit and evaluate the programs, activities, and financial transactions 
of the intelligence community, and for other purposes; to the Select 
Committee on Intelligence.
  Mr. AKAKA. Mr. President, I rise to introduce ``The Intelligence 
Community Audit Act of 2007,'' with Senator Lautenberg. This 
legislation reaffirms the authority of the Comptroller General of the 
United States and head of the Government Accountability Office (GAO) to 
audit the financial transactions and evaluate the programs and 
activities of the intelligence community (IC).
  Our bill is identical to S. 3968, introduced in the last Congress by 
Senator Lautenberg and myself, and to H.R. 6252, introduced in the 
House by Representative Bennie Thompson.
  The need for more effective oversight and accountability of our 
intelligence community has never been greater. In the war against 
terrorism, intelligence agencies are both the spear and the shield: the 
first line of our attack and of our defense. Failure can bear terrible 
consequences.
  Congress has two responsibilities: the first is to ensure that our 
intelligence community is performing its mission effectively, and the 
second is to ensure that in performing its mission, the intelligence 
community is not violating the constitutional rights of individual 
Americans.
  Yet the ability of Congress to ensure that the intelligence community 
has sufficient resources and capability of performing its mission has 
never been more in question. The establishment of the Department of 
Homeland Security and the passage of the Intelligence Reform and 
Terrorism Prevention Act of 2004 created a new institutional landscape 
littered by new intelligence agencies with ever increasing demands and 
responsibilities. These new agencies became members of an already 
populated club of organizations performing intelligence related 
functions.
  The intelligence community today consists of 19 different agencies or 
components: the Office of the Director of National Intelligence; 
Central Intelligence Agency; Department of Defense; Defense 
Intelligence Agency; National Security Agency; Departments of the Army, 
Navy, Marine Corps, and Air Force; Department of State; Department of 
Treasury; Department of Energy; Department of Justice; Federal Bureau 
of Investigation; National Reconnaissance Office; National Geospatial-
Intelligence Agency; Coast Guard; Department of Homeland Security, and 
the Drug Enforcement Administration.
  Congress too has increased its oversight responsibilities. Committees 
other than the intelligence committees of the House and Senate have 
jurisdiction over such departments as Homeland Security, State, 
Defense, Justice, Energy, Treasury, and Commerce.
  But all of these ``non-intelligence'' committees are restricted in 
their ability to conduct effective oversight of intelligence function 
of the agencies under their jurisdiction because, unfortunately, the 
intelligence community stonewalls the Government Accountability Office 
(GAO) when committees of jurisdiction request that GAO investigate 
problems. This is happening despite the clear responsibility of 
Congress to ensure that these agencies are operating effectively to 
protect America.
  It is inconceivable that the GAO--the audit arm of the U.S. 
Congress--has been unable to conduct evaluations of the CIA for over 40 
years. If the GAO had been able to conduct basic auditing functions of 
the CIA, perhaps some of the problems that were so clearly exposed 
following the terrorist attacks in September 2001 would have been 
resolved. And yet, it is extraordinary that five years after 9-11, the 
same problems persist.
  Two recent incidents have made this situation disturbingly clear. At 
a hearing entitled, ``Access Delayed: Fixing the Security Clearance 
Process, Part II,'' before my Subcommittee on Oversight of Government 
Management, the Federal Workforce, and the District of Columbia, on 
November 9, 2005, GAO was asked about steps it would take to ensure 
that the Office of Personnel Management (OPM), the Office of Management 
and Budget, and the intelligence community met the goals and objectives 
outlined in the OPM security clearance strategic plan. Fixing the 
security clearance process, which is on GAO's high-risk list, is 
essential to our national security. But as GAO observed in a written 
response to a question raised by Senator Voinovich, ``while we have the 
authority to do such work, we lack the cooperation we need to get our 
job done in that area.''
  A similar case arose in response to a GAO investigation for the 
Senate Homeland Security Committee and the House Government Reform 
Committee on how agencies are sharing terrorism-related and sensitive 
but unclassified information. The report, entitled ``Information 
Sharing, the Federal Government Needs to Establish Policies and 
Processes for Sharing Terrorism-Related and Sensitive but Unclassified 
Information'' (GAO-06-385), was released in March 2006.
  At a time when Congress is criticized by members of the 9-11 
Commission for failing to implement its recommendations, we should 
remember that improving terrorism information sharing among agencies 
was one of the critical recommendations of the Commission. Moreover, 
the Intelligence Reform and Terrorism Prevention Act of 2004 mandated 
the sharing of terrorism information through the creation of an 
Information Sharing Environment. Yet, when asked by GAO for comments on 
the GAO report, the Office of the Director of National Intelligence 
refused, stating that ``the review of intelligence activities is beyond 
GAO's purview.''
  A Congressional Research Service memorandum entitled, ``Overview of 
`Classified' and `Sensitive but Unclassified' Information,'' concludes, 
``it appears that pseudo-classification markings have, in some 
instances, had the effect of deterring information sharing for homeland 
security.''
  Unfortunately I have more examples that predate the post 9-11 
reforms. Indeed, in July 2001, in testimony, entitled ``Central 
Intelligence Agency, Observations on GAO Access to Information on CIA 
Programs and Activities'' (GAO-01-975T) before the House Committee on 
Government Reform, the GAO noted, as a practical manner, ``our access 
is generally limited to obtaining information on threat assessments 
when the CIA does not perceives [sic] our audits as oversight of its 
activities.''
  The bill I introduce today does not detract from the authority of the 
intelligence committees. In fact, the language makes explicit that the 
Comptroller General may conduct an audit or evaluation of intelligence 
sources and methods or covert actions only upon the request of the 
intelligence committees or at the request of the congressional majority 
or minority leaders. The measure also prescribes for the security of 
the information collected by the Comptroller General.
  As both House Rule 48 and Senate Resolution 400 establishing the 
intelligence oversight committees state, ``Nothing in this [charter] 
shall be construed as amending, limiting, or otherwise changing the 
authority of any

[[Page 150]]

standing committee of the, House/Senate, to obtain full and prompt 
access to the product of the intelligence activities of any department 
or agency of the Government relevant to a matter otherwise within the 
jurisdiction of such committee.''
  Despite this clear and unambiguous statement, the ability of non-
intelligence committees to obtain information, no matter how vital to 
improving the security of our nation, has been restricted by the 
various elements of the intelligence community.
  My bill reaffirms the authority of the Comptroller General to conduct 
audits and evaluations--other than those relating to sources and 
methods, or covert actions--relating to the management and 
administration of elements of the intelligence community in areas such 
as strategic planning, financial management, information technology, 
human capital, knowledge management, information sharing, and change 
management for other relevant committees of the Congress.
  As I mentioned earlier in my statement, Congress also has the 
responsibility of ensuring that unfettered intelligence collection does 
not trample civil liberties. New technologies and new personal 
information data bases threaten our individual right to a secure 
private life, free from unlawful government invasion. We must ensure 
that private information collected by the intelligence community is not 
misused and is secure. Intelligence agencies have a legitimate mission 
to protect the country against potential threats. However, Congress' 
role is to ensure that their mission remains legitimate.
  Attached is a detailed description of the legislation that I ask 
unanimous consent be printed in the Record.
  I urge my colleagues to join me in supporting this legislation.
  I ask unanimous consent that the text of the legislation I am 
introducing be printed in the Record.
  There being no objection, the text of the material was ordered to be 
printed in the Record, as follows:

                            Report Language

       Section 1 of the Act provides that the Act may be cited as 
     the ``Intelligence Community Audit Act of 2007''.
       Section 2(a) of the Act adds a new Section (3523a) to title 
     31, United States Code, with respect to the Comptroller 
     General's authority to audit or evaluate activities of the 
     intelligence community. New Section 3523a(b)(1) reaffirms 
     that the Comptroller General possesses, under his existing 
     statutory authority, the authority to perform audits and 
     evaluations of financial transactions, programs, and 
     activities of elements of the intelligence community and to 
     obtain access to records for the purposes of such audits and 
     evaluations. Such work could be done at the request of the 
     congressional intelligence committees or any committee of 
     jurisdiction of the House of Representatives or Senate 
     (including the Committee on Homeland Security of the House of 
     Representatives and the Committee on Homeland Security and 
     Governmental Affairs of the Senate), or at the Comptroller 
     General's initiative, pursuant to the existing authorities 
     referenced in new Section 3523a(b)(1). New Section 
     3523a(b)(2) further provides that these audits and 
     evaluations under the Comptroller General's existing 
     authority may include, but are not limited to, matters 
     relating to the management and administration of elements of 
     the intelligence community in areas such as strategic 
     planning, financial management, information technology, human 
     capital, knowledge management, information sharing, and 
     change management. These audits and evaluations would be 
     accompanied by the safeguards that the Government 
     Accountability Office (GAO) has in place to protect 
     classified and other sensitive information, including 
     physical security arrangements, classification and 
     sensitivity reviews, and restricted distribution of certain 
     products.
       This reaffirmation is designed to respond to Executive 
     Branch assertions that GAO does not have the authority to 
     review activities of the intelligence community. To the 
     contrary, GAO's current statutory audit and access 
     authorities permit it to evaluate a wide range of activities 
     in the intelligence community. To further ensure that GAO's 
     authorities are appropriately construed in the future, the 
     new Section 3523a(e), which is described below, makes clear 
     that nothing in this or any other provision of law shall be 
     construed as restricting or limiting the Comptroller 
     General's authority to audit and evaluate, or obtain access 
     to the records of, elements of the intelligence community 
     absent specific statutory language restricting or limiting 
     such audits, evaluations, or access to records.
       New Section 3523a(c)(1) provides that Comptroller General 
     audits or evaluations of intelligence sources and methods, or 
     covert actions may be undertaken only upon the request of the 
     Select Committee on Intelligence of the Senate, or the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives, or the majority or the minority leader of 
     the Senate or the House of Representatives. This limitation 
     is intended to recognize the heightened sensitivity of audits 
     and evaluations relating to intelligence sources and methods, 
     or covert actions.
       The new Section 3523a(c)(2)(A) provides that the results of 
     such audits or evaluations under Section 3523a(c) may be 
     disclosed only to the original requestor, the Director of 
     National Intelligence, and the head of the relevant element 
     of the intelligence community. Since the methods GAO uses to 
     communicate the results of its audits or evaluations vary, 
     this provision restricts the dissemination of GAO's findings 
     under Section 3523a(c), whether through testimony, oral 
     briefings, or written reports, to only the original 
     requestor, the Director of National Intelligence, and the 
     head of the relevant element of the intelligence community. 
     Similarly, under new Section 3523a(c)(2)(B), the Comptroller 
     General may only provide information obtained in the course 
     of such an audit or evaluation to the original requestor, the 
     Director of National Intelligence, and the head of the 
     relevant element of the intelligence community.
       The new Section 3523a(c)(3)(A) provides that 
     notwithstanding any other provision of law, the Comptroller 
     General may inspect records of any element of the 
     intelligence community relating to intelligence sources and 
     methods, or covert actions in order to perform audits and 
     evaluations pursuant to Section 3523a(c). The Comptroller 
     General's access extends to any records which belong to, or 
     are in the possession and control of, the element of the 
     intelligence community regardless of who was the original 
     owner of such information. Under new Section 3523a(c)(3)(B), 
     the Comptroller General may enforce the access rights 
     provided under this subsection pursuant to section 716 of 
     title 31. However, before the Comptroller General files a 
     report pursuant to 31 U.S.C. 716(b)(1), the Comptroller 
     General must consult with the original requestor concerning 
     the Comptroller General's intent to file a report.
       The new Section 3523a(c)(4) reiterates the Comptroller 
     General's obligations to protect the confidentiality of 
     information and adds special safeguards to protect records 
     and information obtained from elements of the intelligence 
     community for audits and evaluations performed under Section 
     3523a(c). For example, pursuant to new Section 
     3523a(c)(4)(B), the Comptroller General is to maintain on 
     site, in facilities furnished by the element of the 
     intelligence community subject to audit or evaluation, all 
     workpapers and records obtained for the audit or evaluation. 
     Under new Section 3523a(c)(4)(C), the Comptroller General is 
     directed, after consulting with the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives, to establish 
     procedures to protect from unauthorized disclosure all 
     classified and other sensitive information furnished to the 
     Comptroller General under Section 3523a(c). Under new Section 
     3523a(c)(4)(D), prior to initiating an audit or evaluation 
     under Section 3523a(c), the Comptroller General shall provide 
     the Director of National Intelligence and the head of the 
     relevant element of the intelligence community with the name 
     of each officer and employee of the Government Accountability 
     Office who has obtained appropriate security clearances.
       The new Section 3523a(d) provides that elements of the 
     intelligence community shall cooperate fully with the 
     Comptroller General and provide timely responses to 
     Comptroller General requests for documentation and 
     information.
       The new Section 3523a(e) makes clear that nothing in this 
     or any other provision of law shall be construed as 
     restricting or limiting the Comptroller General's authority 
     to audit and evaluate, or obtain access to the records of, 
     elements of the intelligence community absent specific 
     statutory language restricting or limiting such audits, 
     evaluations, or access to records.
                                  ____



                               Congressional Research Service,

                                                    July 18, 2006.
     From: Harold C. Relyea, Specialist in American National 
         Government, Government and Finance Division.
     Subject: Overview of ``Classified'' and ``Sensitive but 
         Unclassified'' Information.
       Prescribed in various ways, federal policies may require 
     the protection of, or a privileged status for, particular 
     kinds of information. This memorandom provides a brief 
     introduction to, and overview of, two categories of such 
     information policy. The first category is demarcated largely 
     in a single policy instrument--a presidential executive 
     order--with a clear focus and in considerable detail: the 
     classification of national security information in terms of 
     three degrees of harm the disclosure of such information 
     could cause to the nation, resulting in Confidential, Secret, 
     and Top Secret designations. The second category is, by 
     contrast with the first, much

[[Page 151]]

     broader in terms of the kinds of information it covers, to 
     the point of even being nebulous in some instances, and is 
     expressed in various instruments, the majority of which are 
     non-statutory: the marking of sensitive but unclassified 
     (SBU) information for protective management, although its 
     public disclosure may be permissible pursuant to the Freedom 
     of Information Act (FOIA). These two categories are reviewed 
     in the discussion set out below.


                    security classified information

       Current security classification arrangements, prescribed by 
     an executive order of the President, trace their origins to a 
     March 1940 directive issued by President Franklin D. 
     Roosevelt as E.O. 8381. This development was probably 
     prompted somewhat by desires to clarify the authority of 
     civilian personnel in the national defense community to 
     classify information, to establish a broader basis for 
     protecting military information in view of growing global 
     hostilities, and to manage better a discretionary power 
     seemingly of increasing importance to the entire executive 
     branch. Prior to this 1940 order, information had been 
     designated officially secret by armed forces personnel 
     pursuant to Army and Navy general orders and regulations. The 
     first systematic procedures for the protection of national 
     defense information, devoid of special markings, were 
     established by War Department General Orders No. 3 of 
     February 1912. Records determined to be ``confidential'' were 
     to be kept under lock, ``accessible only to the officer to 
     whom intrusted.'' Serial numbers were issued for all such 
     ``confidential'' materials, with the numbers marked on the 
     documents, and lists of same kept at the offices from which 
     they emanated. With the enlargement of the armed forces after 
     the entry of the United States into World War I, the registry 
     system was abandoned and a tripartite system of 
     classification markings was inaugurated in November 1917 with 
     General Order No. 64 of the General Headquarters of the 
     American Expenditionary Force.
       The entry of the United States into World War II prompted 
     some additional arrangements for the protection of 
     information pertaining to the nation's security. Personnel 
     cleared to work on the Manhattan Project for the production 
     of the atomic bomb, for instance, in committing themselves 
     not to disclose protected information improperly, were 
     ``required to read and sign either the Espionage Act or a 
     special secrecy agreement,'' establishing their awareness of 
     their secrecy obligations and a fiduciary trust which, if 
     breached, constituted a basis for their dismissal.
       A few years after the conclusion of World War II, President 
     Harry S. Truman, in February 1950, issued E.O. 10104, which, 
     while superseding E.O. 8381, basically reiterated its text, 
     but added a fourth Top Secret classification designation to 
     existing Restricted, Confidential, and Secret markings, 
     making American information security categories consistent 
     with those of our allies. At the time of the promulgation of 
     this order, however, plans were underway for a complete 
     overhaul of the classification program, which would result in 
     a dramatic change in policy.
       E.O. 10290, issued in September 1951, introduced three 
     sweeping innovations in security classification policy. 
     First, the order indicated the Chief Executive was relying 
     upon ``the authority vested in me by the Constitution and 
     statutes, and as President of the United States'' in issuing 
     the directive. This formula appeared to strengthen the 
     President's discretion to make official secrecy policy: it 
     intertwined his responsibility as Commander in Chief with the 
     constitutional obligation to ``take care that the laws be 
     faithfully executed.'' Second, information was now classified 
     in the interest of ``national security,'' a somewhat new, but 
     nebulous, concept, which, in the view of some, conveyed more 
     latitude for the creation of official secrets. It replaced 
     the heretofore relied upon ``national defense'' standard for 
     classification. Third, the order extended classified 
     authority to nonmilitary entitie throughout the executive 
     branch, to be exercised by, presumably, but not explicitly 
     limited to, those having some role in ``national security'' 
     policy.
       The broad discretion to create official secrets granted by 
     E.O. 10290 engendered widespread criticism from the public 
     and the press. In response, President Dwight D. Eisenhower, 
     shortly after his election to office, instructed Attorney 
     General Herbert Brownell to review the order with a view to 
     revising or rescinding it. The subsequent recommendation was 
     for a new directive, which was issued in November 1953 as 
     E.O. 10501. It withdrew classification authority from 28 
     entities, limited this discretion in 17 other units to the 
     agency head, returned to the ``national defense'' standard 
     for applying secrecy, eliminated the ``Restricted'' category, 
     which was the lowest level of protection, and explicitly 
     defined the remaining three classification areas to prevent 
     their indiscriminate use.
       Thereafter, E.O. 10501, with slight amendment, prescribed 
     operative security classification policy and procedure for 
     the next two decades. Successor orders built on this reform. 
     These included E.O. 11652, issued by President Richard M. 
     Nixon in March 1972, followed by E.O. 12065, promulgated by 
     President Jimmy Carter in June 1978. For 30 years, these 
     classification directives narrowed the bases and discretion 
     for assigning official secrecy to executive branch documents 
     and materials. Then, in April 1982, this trend was reversed 
     with E.O. 12356, issued by President Ronald Reagan. This 
     order expanded the categories of classifiable information, 
     mandated that information falling within these categories be 
     classified, authorized the reclassification of previously 
     declassified documents, admonished classifiers to err on the 
     side classification, and eliminated automatic 
     declassification arrangements.
       President William Clinton returned security classification 
     policy and procedure to the reform trend of the Eisenhower, 
     Nixon, and Carter Administrations with E.O. 12958 in April 
     1995. Adding impetus to the development and issuance of the 
     new order were changing world conditions: the democratization 
     of many eastern European countries, the demise of the Soviet 
     Union, and the end of the Cold War. Accountability and cost 
     considerations were also significant influences. In 1985, the 
     temporary Department of Defense (DOD) Security Review 
     Commission, chaired by retired General Richard G. Stilwell, 
     declared that there were ``no verifiable figures as to the 
     amount of classified material produced in DOD and in defense 
     industry each year.'' Nonetheless, it concluded that ``too 
     much information appears to be classified and much at higher 
     levels than is warranted.'' In October 1993, the cost of the 
     security classification program became clearer when the 
     General Accounting Office (GAO) reported that it was ``able 
     to identify government-wide costs directly applicable to 
     national security information totaling over $350 million for 
     1992.'' After breaking this figure down--it included only $6 
     million for declassification work--the report added that 
     ``the U.S. government also spends additional billions of 
     dollars annually to safeguard information, personnel, and 
     property.'' E.O. 12958 set limits for the duration of 
     classification, prohibited the reclassification of properly 
     declassified records, authorized government employees to 
     challenge the classification status of records, reestablished 
     the balancing test of E.O. 12065 weighing the need to protect 
     information vis-a-vis the public interest in its disclosure, 
     and created two review panels--one on classification and 
     declassification actions and one to advise on policy and 
     procedure.
       Most recently, in March 2003, President George W. Bush 
     issued E.O. 13292, amending E.O. 12958. Among the changes 
     made by this order were adding infrastructure vulnerabilities 
     or capabilities, protection services relating to national 
     security, and weapons of mass destruction to the categories 
     of classifiable information; easing the reclassification of 
     declassified records; postponing the automatic 
     declassification of protected records 25 or more years old, 
     beginning in mid-April 2003 to the end of December 2006; 
     eliminating the requirement that agencies prepare plans for 
     declassifying records; and permitting the Director of Central 
     Intelligence to block declassification actions of the 
     Interagency Security Classification Appeals Panel, unless 
     overruled by the President.
       The security classification program has evolved during the 
     past 66 years. One may not agree with all of its rules and 
     requirements. but attention to detail in its policy and 
     procedure result in a significant management regime. The 
     operative executive order, as amended, defines its principal 
     terms. Those who are authorized to exercise original 
     classification authority are identified. Exclusive categories 
     of classifiable information are specified, as are the terms 
     of the duration of classification, as well as classification 
     prohibitions and limitations. Classified information is 
     required to be marked appropriately along with the identity 
     of the original classifier, the agency or office of origin, 
     and a date or event for declassification. Authorized holders 
     of classified information who believe that its protected 
     status is improper are ``encouraged and expected'' to 
     challenge that status through prescribed arrangements. 
     Mandatory declassification reviews are also authorized to 
     determine if protected records merit continued classification 
     at their present level, a lower level, or at all. 
     Unsuccessful classification challenges and mandatory 
     declassification reviews are subject to review by the 
     Intragency Security Classification Appeals Panel. General 
     restrictions on access to classified information are 
     prescribed, as are distribution controls for classified 
     information. The Information Security Oversight Office (ISOO) 
     within the National Archives and Records Administration 
     (NARA) is mandated to provide central management and 
     oversight of the security classification program. If the 
     director of this entity finds that a violation of the order 
     or its implementing directives has occurred, it must be 
     reported to the head of the agency or to the appropriate 
     senior agency official so that corrective steps, if 
     appropriate, may be taken
       While Congress, thus far, has elected not to create 
     statutorily mandated security classification policy and 
     procedures, the option to do so has been explored in the 
     past, and its legislative authority to do so has been 
     recognized by the Supreme Court. Congress, however, has 
     established protections for certain

[[Page 152]]

     kinds of information--such as Restricted Data in the Atomic 
     Energy Acts of 1946 and 1954, and inte1ligence sources and 
     methods in the National Security Act of 1947--which have been 
     realized through security classification arrangements. It has 
     acknowledged properly applied security classification as a 
     basis for withholding records sought pursuant to the Freedom 
     of Information Act. Also, with a view to efficiency and 
     economy, as well as effective records management, committees 
     of Congress, on various occasions, have conducted oversight 
     of security classification policy and practice, and have been 
     assisted by GAO and CRS in this regard.


                 Sensitive but Unclassified Information

       The widespread existence and use of information control 
     markings other than those prescribed for the security 
     classification of information came to congressional attention 
     in March 1972 when a subcommittee of what is now the House 
     Committee on Government Reform launched the first oversight 
     hearings on the administration and operation of the Freedom 
     of Information Act (FOIA). Enacted in 1966, FOIA had become 
     operative in July 1967. In the early months of 1972, the 
     Nixon Administration was developing new security 
     classification policy and procedure, which wou1d be 
     prescribed in E.O. 11652, issued in early March. Preparatory 
     to this hearing, the panel had surveyed the departments and 
     agencies in August 1971, asking, among other questions, 
     ``What legend is used by your agency to identify records 
     which are not classifiable under Executive Order 10501 [the 
     operative order at the time] but which are not to be made 
     available outside the government?'' Of 58 information control 
     markings identified in response to this question, the most 
     common were For Official Use Only (11 agencies); Limited 
     Official Use (nine agencies); Official Use Only (eight 
     agencies); Restricted Data (five agencies); Administratively 
     Restricted (four agencies); Formerly Restricted Data (four 
     agencies); and Nodis, or no dissemination (four agencies). 
     Seven other markings were used by two agencies in each case. 
     A CRS review of the agency responses to the control markings 
     question prompted the following observation.
       Often no authority is cited for the establishment or origin 
     of these labels; even when some reference is provided it is a 
     handbook, manual, administrative order, or a circular but not 
     statutory authority. Exceptions to this are the Atomic Energy 
     Commission, the Defense Department and the Arms Control and 
     Disarmament Agency. These agencies cite the Atomic Atomic 
     Energy Act, N.A.T.O. related laws, and international 
     agreements as a basis for certain additional labels. The Arms 
     Control and Disarmament Agency acknowledged it honored and 
     adopted State and Defense Department labels.
       Over three decades later, it appears that approximately the 
     same number of these information control markings are in use; 
     that the majority of them are administratively, not 
     statutorily, prescribed; and that many of them have an 
     inadequate management regime, particularly when compared with 
     the detailed arrangements which govern the management of 
     classified information. A recent press account illustrates 
     another problem. In late January 2005, GCN Update, the 
     online, electronic news service of Government Computer News, 
     reported that ``dozens of classified Homeland Security 
     Department documents'' had been accidently made available on 
     a public Internet site for several days due to an apparent 
     security glitch at the Department of Energy. Describing the 
     contents of the compromised materials and reactions to the 
     breach, the account stated the ``documents were marked `for 
     official use only,' the lowest secret-level classification.'' 
     The documents, of course, were not security classified, 
     because the marking cited is not authorized by E.O. 12958. 
     Interestingly, however, in view of the fact that this 
     misinterpretation appeared in a story to which three 
     reporters contributed, perhaps it reflects, to some extent, 
     the current confusion of these information control markings 
     with security classification designations.
       Broadly considering the contemporary situation regarding 
     information control markings, a recent information security 
     report by the JASON Program Office of the MITRE Corporation 
     proffered the following assessment.
       The status of sensitive information outside of the present 
     classification system is murkier than ever. . . . ``Sensitive 
     but unclassified'' data is increasingly defined by the eye of 
     the beholder. Lacking in definition, it is correspondingly 
     lacking in policies and procedures for protecting (or not 
     protecting) it, and regarding how and by whom it is generated 
     and used.
       A contemporaneous Heritage Foundation report appeared to 
     agree with this appraisal, saying:
       The process for classifying secret information in the 
     federal government is disciplined and explicit. The same 
     cannot be said for unclassified but security-related 
     information for which there is no usable definition, no 
     common understanding about how to control it, no agreement on 
     what significance it has for U.S. national security, and no 
     means for adjudicating concerns regarding appropriate levels 
     of protection.
       Concerning the current Sensitive but Unclassified (SBU) 
     marking, a 2004 report by the Federal Research Division of 
     the Library of Congress commented that guidelines for its use 
     are needed, and noted that ``a uniform legal definition or 
     set of procedures applicable to all Federal government 
     agencies does not now exist.'' Indeed, the report indicates 
     that SBU has been utilized in different contexts with little 
     precision as to its scope or meaning, and, to add a bit of 
     chaos to an already confusing situation, is ``often referred 
     to as Sensitive Homeland Security Information.''
       Assessments of the variety, management, and impact of 
     information control markings, other than those prescribed for 
     the classification of national security information, have 
     been conducted by CRS, GAO, and the National Security 
     Archive, a private sector research and resource center 
     located at The George Washington University. In March 2006, 
     GAO indicated that, in a recent survey, 26 federal agencies 
     reported using 56 different information control markings to 
     protect sensitive information other than classified national 
     security material. That same month, the National Security 
     Archive offered that, of 37 agencies surveyed, 24 used 28 
     control markings based on internal policies, procedures, or 
     practices, and eight used 10 markings based on statutory 
     authority. These numbers are important in terms of the 
     variety of such markings. GAO explained this dimension of the 
     management problem.
       [T]here are at least 13 agencies that use the designation 
     For Official Use Only [FOUO], but there are at least five 
     different definitions of FOUO. At least seven agencies or 
     agency components use the term Law Enforcement Sensitive 
     (LES), including the U.S. Marshals Service, the Department of 
     Homeland Security (DHS), the Department of Commerce, and the 
     Office of Personnel Management (OPM). These agencies gave 
     differing definitions for the term. While DHS does not 
     formally define the designation, the Department of Commerce 
     defines it to include information pertaining to the 
     protection of senior government officials, and OPM defines it 
     as unclassified information used by law enforcement personnel 
     that requires protection against unauthorized disclosure to 
     protect the sources and methods of investigative activity, 
     evidence, and the integrity of pretrial investigative 
     reports.
       Apart from the numbers, however, is another aspect of the 
     management problem, which GAO described in the following 
     terms.
       There are no governmentwide policies or procedures that 
     describe the basis on which agencies should use most of these 
     sensitive but unclassified designations, explain what the 
     different designations mean across agencies, or ensure that 
     they will be used consistently from one agency to another. In 
     this absence, each agency determines what designations to 
     apply to the sensitive but unclassified information it 
     develops or shares.
       These markings also have implications in another regard. 
     The importance of information sharing for combating terrorism 
     and realizing homeland security was emphasized by the 
     National Commission on Terrorist Attacks Upon the United 
     States. That the variously identified and marked forms of 
     sensitive but unclassified (SBU) information could be 
     problematic with regard to information sharing was recognized 
     by Congress when fashioning the Homeland Security Act of 
     2002. Section 892 of that statute specifically directed the 
     President to prescribe and implement procedures for the 
     sharing of information by relevant federal agencies, 
     including the accommodation of ``homeland security 
     information that is sensitive but unclassified.'' On July 29, 
     2003, the President assigned this responsibility largely to 
     the Secretary of Homeland Security. Nothing resulted. The 
     importance of information sharing was reinforced two years 
     later in the report of the Commission on the Intelligence 
     Capabilities of the United States Regarding Weapons of Mass 
     Destruction. Congress again responded by mandating the 
     creation of an Information Sharing Environment (ISE) when 
     legislating the Intelligence Reform and Terrorism Prevention 
     Act of 2004. Preparatory to implementing the ISE provisions, 
     the President issued a December 16, 2005, memorandum 
     recognizing the need for standardized procedures for SBU 
     information and directing department and agency officials to 
     take certain actions relative to that objective. In May 2006, 
     the newly appointed manager of the ISE agreed with a March 
     GAO assessment that, oftentimes, SBU information, designated 
     as such with some marking, was not being shared due to 
     concerns about the ability of recipients to adequately 
     protect it. In brief, it appears that pseudo-classification 
     markings have, in some instances, had the effect of deterring 
     information sharing for homeland security purposes.
       Congressional overseers have probed executive use and 
     management of information control markings other than those 
     prescribed for the classification of national security 
     information, and the extent to which they result in ``pseudo-
     classification'' or a form of overclassification. Relevant 
     remedial legislation proposed during the 109th Congress 
     includes two bills (H.R. 2331 and H.R. 5112) containing 
     sections which would require the Archivist of the United 
     States to prepare a detailed report regarding the number, 
     use, and management of these information control markings and 
     submit it to specified congressional committees, and to 
     promulgate regulations banning the use of these

[[Page 153]]

     markings and otherwise establish standards for information 
     control designations established by statute or an executive 
     order relating to the classification of national security 
     information. A section in the Department of Homeland Security 
     appropriations legislation (H.R. 5441), as approved by the 
     House, would require the Secretary of Homeland Security to 
     revise DHS MD (Management Directive) 11056 to include (1) 
     provision that information that is three years old and not 
     incorporated in a current, active transportation security 
     directive or security plan shall be determined automatically 
     to be releasable unless, for each specific document, the 
     Secretary makes a written determination that identifies a 
     compelling reason why the information must remain Sensitive 
     Security Information (SS1); (2) common and extensive examples 
     of the individual categories of SSI cited in order to 
     minimize and standardize judgment in the application of SSI 
     marking; and (3) provision that, in all judicial proceedings 
     where the judge overseeing the proceedings has adjudicated 
     that a party needs to have access to SSI, the party shall be 
     deemed a covered person for purposes of access to the SSI at 
     issue in the case unless TSA or DHS demonstrates a compelling 
     reason why the specific individual presents a risk of harm to 
     the nation. A May 25, 2006, statement of administration 
     policy on the bill strongly opposed the section, saying it 
     ``would jeopardize an important program that protects 
     Sensitive Security Information (SSI) from public release by 
     deeming it automatically releaseable in three years, 
     potentially conflict with requirements of the Privacy and 
     Freedom of Information Acts, and negate statutory provisions 
     providing original jurisdiction for lawsuits challenging. the 
     designation of SSI materials in the U.S. Courts of Appeals.'' 
     The statement further indicated that the section would create 
     a burdensome review process'' for the Secretary of Homeland 
     Security and would result in different statutory requirements 
     being applied to SSI programs administered by the Departments 
     of Homeland Security and Transportation.''
                                  ____



                               Congressional Research Service,

                              Washington, DC., September 14, 2006.
     From: Alfred Cumming, Specialist in Intelligence and National 
         Security, Foreign Affairs, Defense, and Trade Division.
     Subject: Congressional Oversight of Intelligence.
       This memorandum examines the intelligence oversight 
     structure established by Congress in the 1970s, including the 
     creation of the congressional select intelligence committees 
     by the U.S. House of Representatives and the Senate, 
     respectively. It also looks at the intelligence oversight 
     role that Congress reserved for congressional committees 
     other than the intelligence committees; examines certain 
     existing statutory procedures that govern how the executive 
     branch is to keep the congressional intelligence committees 
     informed of U.S. intelligence activities; and looks at the 
     circumstances under which the two intelligence committees are 
     expected to keep congressional standing committees, as well 
     as both chambers, informed of intelligence activities.
       If can be of further assistance, please call at 707-7739.


                               Background

       In the wake of congressional investigations into 
     Intelligence Community activities in the mid-1970s, the U.S. 
     Senate in 1976 created a select committee on intelligence to 
     conduct more effective oversight on a continuing basis. The 
     U.S. House of Representatives established its own 
     intelligence oversight committee the following year.
       Until the two intelligence committees were created, other 
     congressional standing committees--principally the Senate and 
     House Armed Services and Appropriations committees--shared 
     responsibility for overseeing the intelligence community. 
     Although willing to cede primary jurisdiction over the 
     Central Intelligence Agency (CIA) to the two new select 
     intelligence committees, these congressional standing 
     committees wanted to retain jurisdiction over the 
     intelligence activities of the other departments and agencies 
     they oversaw. According to one observer, the standing 
     committees asserted their jurisdictional prerogatives for two 
     reasons--to protect ``turf,'' but also to provide ``a hedge 
     against the possibility that the newly launched experiment in 
     oversight might go badly.''


             intelligence committees; statutory obligations

       Under current statute, the President is required to ensure 
     that the congressional intelligence committees are kept 
     ``fully and currently informed'' of U.S. intelligence 
     activities, including any ``significant anticipated 
     intelligence activity,'' and the President and the 
     intelligence committees are to establish any procedures as 
     may be necessary to carry out these provisions.
       The statute, however, stipulates that the intelligence 
     committees in turn are responsible for alerting the 
     respective chambers or congressional standing committees of 
     any intelligence activities requiring further attention. The 
     intelligence committees are to carry out this responsibility 
     in accordance with procedures established by the House of 
     Representatives and the Senate, in consultation with the 
     Director of National Intelligence, in order to protect 
     against unauthorized disclosure of classified information, 
     and all information relating to sources and methods.
       The statute stipulates that: ``each of the congressional 
     intelligence committees shall promptly call to the attention 
     of its respective House, or to any appropriate committee or 
     committees of its respective House, any matter relating to 
     intelligence activities requiring the attention of such House 
     or such committee or committees.
       This provision was included in statute after being 
     specifically requested in a letter from then Senate Foreign 
     Relations Chairman Frank Church and Ranking Minority Member 
     Jacob Javits in an Apr. 30, 1980 letter to then-intelligence 
     committee Chairman Birch Bayh and Vice Chairman Barry 
     Goldwater.


          Intelligence Committee Obligations Under Resolution

       In an apparent effort to address various concerns relating 
     to committee jurisdiction, the House of Representatives and 
     the Senate, in the resolutions establishing each of the 
     intelligence committees, included language preserving 
     oversight roles for those standing committees with 
     jurisdiction over matters affected by intelligence 
     activities.
       Specifically, each intelligence committee's resolution 
     states that: ``Nothing in this [Charter] shall be construed 
     as prohibiting or otherwise restricting the authority of any 
     other committee to study and review any intelligence activity 
     to the extent that such activity directly affects a matter 
     otherwise within the jurisdiction of such committee.''
       Both resolutions also stipulate that:

     Nothing in this [charter] shall be construed as amending, 
     limiting, or otherwise changing the authority of any standing 
     committee of the [House/Senate] to obtain full and prompt 
     access to the product of the intelligence activities of any 
     department or agency of the Government relevant to a matter 
     otherwise within the jurisdiction of such committee.

       Finally, both charters direct that each intelligence 
     committee alert the appropriate standing committees, or the 
     respective chambers, of any matter requiring attention. The 
     charters state:
       The select committee, for the purposes of accountability to 
     the [House/Senate] shall make regular and periodic reports to 
     the [House/Senate] on the nature and extent of the 
     intelligence activities of the various departments and 
     agencies of the United States. Such committee shall promptly 
     call to the attention of the [House/Senate] or to any other 
     appropriate committee or committees of the [House/Senate] any 
     matters requiring the attention of the [House/Senate] or such 
     other appropriate committee or committees.


                         Cross-over Membership

       Both resolutions also direct that the membership of each 
     intelligence committee include members who serve on the four 
     standing committees that historically have been involved in 
     intelligence oversight. The respective resolutions designate 
     the following committees as falling in this category: 
     Appropriations, Armed Services, Judiciary, and the Senate 
     Foreign Relations Committee and the House International 
     Relations Committee.
       Although each resolution directs that such cross-over 
     members be designated, neither specifies whether cross-over 
     members are to play any additional role beyond serving on the 
     intelligence committees. For example, neither resolution 
     outlines whether cross-over members are to inform colleagues 
     on standing committees they represent. Rather, each 
     resolution directs only that the ``intelligence committee'' 
     shall promptly call such matters to the attention of standing 
     committees and the respective chambers if the committees 
     determine that they require further attention by those 
     entities.


                          Summary Conclusions

       Although the President is statutorily obligated to keep the 
     congressional intelligence committees fully and currently 
     informed of intelligence activities, the statute obligates 
     the intelligence committees to inform the respective 
     chambers, or standing committees, of such activities, if 
     either of the two committees determine that further oversight 
     attention is required.
       Further, resolutions establishing the two intelligence 
     committees make clear that the intelligence committees share 
     intelligence oversight responsibilities with other standing 
     committees, to the extent that certain intelligence 
     activities affect matters that fall under the jurisdiction of 
     a committee other than the intelligence committees.
       Finally, the resolutions establishing the intelligence 
     committees provide for the designation of ``cross-over'' 
     members representing certain standing committees that played 
     a role in intelligence oversight prior to the establishment 
     of the intelligence committees in the 1970s. The resolutions, 
     however, do not specify what role, if any, these ``cross-
     over'' members play in keeping standing committees on which 
     they serve informed of certain intelligence activities. 
     Rather, each resolution states that the respective 
     intelligence committee shall make that determination.

[[Page 154]]

     
                                  ____
                                 S. 82

       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 ``Intelligence Community Audit 
     Act of 2007''.

     SEC. 2. COMPTROLLER GENERAL AUDITS AND EVALUATIONS OF 
                   ACTIVITIES OF ELEMENTS OF THE INTELLIGENCE 
                   COMMUNITY.

       (a) Reaffirmation of Authority; Audits of Intelligence 
     Community Activities.--Chapter 35 of title 31, United States 
     Code, is amended by inserting after section 3523 the 
     following:

     ``Sec. 3523a. Audits of intelligence community; audit 
       requesters

       ``(a) In this section, the term `element of the 
     intelligence community' means an element of the intelligence 
     community specified in or designated under section 3(4) of 
     the National Security Act of 1947 (50 U.S.C. 401a(4)).
       ``(b) Congress finds that--
       ``(1) the authority of the Comptroller General to perform 
     audits and evaluations of financial transactions, programs, 
     and activities of elements of the intelligence community 
     under sections 712, 717, 3523, and 3524, and to obtain access 
     to records for purposes of such audits and evaluations under 
     section 716, is reaffirmed; and
       ``(2) such audits and evaluations may be requested by any 
     committee of jurisdiction (including the Committee on 
     Homeland Security of the House of Representatives and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate), and may include matters relating to the 
     management and administration of elements of the intelligence 
     community in areas such as strategic planning, financial 
     management, information technology, human capital, knowledge 
     management, information sharing (including information 
     sharing by and with the Department of Homeland Security), and 
     change management.
       ``(c)(1) The Comptroller General may conduct an audit or 
     evaluation of intelligence sources and methods or covert 
     actions only upon request of the Select Committee on 
     Intelligence of the Senate or the Permanent Select Committee 
     on Intelligence of the House of Representatives, or the 
     majority or the minority leader of the Senate or the House of 
     Representatives.
       ``(2)(A) Whenever the Comptroller General conducts an audit 
     or evaluation under paragraph (1), the Comptroller General 
     shall provide the results of such audit or evaluation only to 
     the original requestor, the Director of National 
     Intelligence, and the head of the relevant element of the 
     intelligence community.
       ``(B) The Comptroller General may only provide information 
     obtained in the course of an audit or evaluation under 
     paragraph (1) to the original requestor, the Director of 
     National Intelligence, and the head of the relevant element 
     of the intelligence community.
       ``(3)(A) Notwithstanding any other provision of law, the 
     Comptroller General may inspect records of any element of the 
     intelligence community relating to intelligence sources and 
     methods, or covert actions in order to conduct audits and 
     evaluations under paragraph (1).
       ``(B) If in the conduct of an audit or evaluation under 
     paragraph (1), an agency record is not made available to the 
     Comptroller General in accordance with section 716, the 
     Comptroller General shall consult with the original requestor 
     before filing a report under subsection (b)(1) of that 
     section.
       ``(4)(A) The Comptroller General shall maintain the same 
     level of confidentiality for a record made available for 
     conducting an audit under paragraph (1) as is required of the 
     head of the element of the intelligence community from which 
     it is obtained. Officers and employees of the Government 
     Accountability Office are subject to the same statutory 
     penalties for unauthorized disclosure or use as officers or 
     employees of the intelligence community element that provided 
     the Comptroller General or officers and employees of the 
     Government Accountability Office with access to such records.
       ``(B) All workpapers of the Comptroller General and all 
     records and property of any element of the intelligence 
     community that the Comptroller General uses during an audit 
     or evaluation under paragraph (1) shall remain in facilities 
     provided by that element of the intelligence community. 
     Elements of the intelligence community shall give the 
     Comptroller General suitable and secure offices and 
     furniture, telephones, and access to copying facilities, for 
     purposes of audits and evaluations under paragraph (1).
       ``(C) After consultation with the Select Committee on 
     Intelligence of the Senate and with the Permanent Select 
     Committee on Intelligence of the House of Representatives, 
     the Comptroller General shall establish procedures to protect 
     from unauthorized disclosure all classified and other 
     sensitive information furnished to the Comptroller General or 
     any representative of the Comptroller General for conducting 
     an audit or evaluation under paragraph (1).
       ``(D) Before initiating an audit or evaluation under 
     paragraph (1), the Comptroller General shall provide the 
     Director of National Intelligence and the head of the 
     relevant element with the name of each officer and employee 
     of the Government Accountability Office who has obtained 
     appropriate security clearance and to whom, upon proper 
     identification, records, and information of the element of 
     the intelligence community shall be made available in 
     conducting the audit or evaluation.
       ``(d) Elements of the intelligence community shall 
     cooperate fully with the Comptroller General and provide 
     timely responses to Comptroller General requests for 
     documentation and information.
       ``(e) Nothing in this section or any other provision of law 
     shall be construed as restricting or limiting the authority 
     of the Comptroller General to audit and evaluate, or obtain 
     access to the records of, elements of the intelligence 
     community absent specific statutory language restricting or 
     limiting such audits, evaluations, or access to records.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 35 of title 31, United States Code, is 
     amended by inserting after the item relating to section 3523 
     the following:


``3523a. Audits of intelligence community; audits and requesters.''.
                                 ______
                                 
      By Mr. McCAIN (for himself, Ms. Snowe, Mr. Biden, and Mr. 
        Lieberman):
  S. 83. A bill to provide increased rail transportation security; to 
the Committee on Commerce, Science, and Transportation.
  Mr. McCAIN. Mr. President, I am pleased to be joined today by 
Senators Snowe, Biden, and Lieberman in introducing the Rail Security 
Act of 2007. This legislation is nearly identical to the rail security 
measures approved by the Senate during both the 108th and 109th 
Congresses. Unfortunately, the House of Representatives has yet to act 
on rail security legislation. I remain hopeful that rail security will 
be made a top priority for the 110th Congress.
  We have taken important steps and expended considerable resources to 
secure the homeland since 9/11. I think all would agree that air travel 
is safer than it was five years ago. And, we have worked to address 
port security in a comprehensive manner. However, we need to do more to 
better secure other transportation modes, a fact well documented by the 
9/11 Commission. Unfortunately, only relatively modest resources have 
been dedicated to rail security in recent years. As a result, our 
Nation's transit system, Amtrak, and the freight railroads remain 
vulnerable to terrorist attacks.
  The Rail Security Act would authorize a total of almost $1.2 billion 
dollars for rail security. More than half of this funding would be 
authorized to complete tunnel safety and security improvements at New 
York's Penn Station, which is used by over 500,000 transit, commuter, 
and intercity passengers each workday. The legislation would also 
establish a grant program to encourage security enhancements by the 
freight railroads, Amtrak, shippers of hazardous materials, and local 
governments with responsibility for passenger stations. It would help 
to address identified security weaknesses in a manner that also seeks 
to protect the taxpayers' interests.
  As we continue fight the War on Terror, we need to do all we can to 
address our vulnerabilities. We have witnessed the tragic attacks on 
rail systems in other countries, including the cities of London, Mumbai 
and Madrid, and the devastating consequences of those attacks. It is 
essential that we move expeditiously to protect all the modes of 
transportation from potential attack, and this legislation will help to 
do just that.
  As I mentioned earlier, the Senate has consistently supported 
legislation to promote rail security. Most recently, rail security 
provisions were adopted last Fall as part of the port security 
legislation. But again, the House failed to allow these important 
security provisions to move ahead, and the provisions were stripped 
from the conference agreement. As a result, our rail network continues 
to remain vulnerable to terrorist attack. That is unacceptable in my 
judgement.
  I urge the Senate to move quickly to again pass this important 
legislation.
                                 ______
                                 
      Mr. McCAIN (for himself, Mr. Stevens, and Mr. Dorgan):

[[Page 155]]

  S. 84. A bill to establish a United States Boxing Commission to 
administer the Act, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.
  Mr. McCAIN. Mr. President, today I am pleased to be joined by 
Senators Stevens and Dorgan in introducing the Professional Boxing 
Amendments Act of 2007. This legislation is virtually identical to a 
measure approved unanimously by the Senate in 2005. I remain committed 
to moving the Professional Boxing Amendments Act through the Senate and 
I trust that my colleagues will once again vote favorably on this 
important legislation. Simply put, this legislation would better 
protect professional boxing from the fraud, corruption, and ineffective 
regulation that have plagued the sport for far too many years, and that 
have devastated physically and financially many of our Nation's 
professional boxers.
  For almost a decade, Congress has made efforts to improve the sport 
of professional boxing and for very good reason. With rare exception, 
professional boxers come from the lowest rung on our economic ladder. 
Often they are the least educated and most exploited athletes in our 
nation. The Professional Boxing Safety Act of 1996 and the Muhammad Ali 
Boxing Reform Act of 2000 established uniform health and safety 
standards for professional boxers, as well as basic protections for 
boxers against the sometimes coercive, exploitative, and unethical 
business practices of promoters, managers, and sanctioning 
organizations. But further action is needed.
  The Professional Boxing Amendments Act would strengthen existing 
Federal boxing law by improving the basic health and safety standards 
for professional boxers, establishing a centralized medical registry to 
be used by local commissions to protect boxers, reducing the arbitrary 
practices of sanctioning organizations, and enhancing the uniformity 
and basic standards for professional boxing contracts. Most 
importantly, this legislation would establish a Federal regulatory 
entity to oversee professional boxing and set basic uniform standards 
for certain aspects of the sport.
  Current law has improved to some extent the state of professional 
boxing. However, I remain concerned, as do many others, that the sport 
remains at risk. In 2003, the Government Accountability Office (GAO) 
spent more than six months studying ten of the country's busiest State 
and tribal boxing commissions. Government auditors found that many 
State and tribal boxing commissions still do not comply with Federal 
boxing law, and that there is a troubling lack of enforcement by both 
Federal and State officials.
  Ineffective and inconsistent oversight of professional boxing has 
contributed to the continuing scandals, controversies, unethical 
practices, and unnecessary deaths in the sport. These problems have led 
many in professional boxing to conclude that the only solution is an 
effective and accountable Federal boxing commission. The Professional 
Boxing Amendments Act would create such an entity.
  Professional boxing remains the only major sport in the United States 
that does not have a strong, centralized association, league, or other 
regulatory body to establish and enforce uniform rules and practices. 
Because a powerful few benefit greatly from the current system of 
patchwork compliance and enforcement of Federal boxing law, a national 
self-regulating organization though preferable to Federal government 
oversight is not a realistic option.
  This bill would establish the United States Boxing Commission, USBC 
or Commission. The Commission would be responsible for protecting the 
health, safety, and general interests of professional boxers. The USBC 
would also be responsible for ensuring uniformity, fairness, and 
integrity in professional boxing. More specifically, the Commission 
would administer Federal boxing law and coordinate with other Federal 
regulatory agencies to ensure that this law is enforced; oversee all 
professional boxing matches in the United States; and work with the 
boxing industry and local commissions to improve the safety, integrity, 
and professionalism of professional boxing in the United States.
  The USBC would also license boxers, promoters, managers, and 
sanctioning organizations. The Commission would have the authority to 
revoke such a license for violations of Federal boxing law, to stop 
unethical or illegal conduct, to protect the health and safety of a 
boxer, or if the revocation is otherwise in the public interest.
  Mr. President, it is important to state clearly and plainly for the 
record that the purpose of the USBC is not to interfere with the daily 
operations of State and tribal boxing commissions. Instead, the 
Commission would work in consultation with local commissions, and it 
would only exercise its authority when reasonable grounds exist for 
such intervention. In point of fact, the Professional Boxing Amendments 
Act states explicitly that it would not prohibit any boxing commission 
from exercising any of its powers, duties, or functions with respect to 
the regulation or supervision of professional boxing to the extent not 
inconsistent with the provisions of Federal boxing law.
  Let there be no doubt, however, of the very basic and pressing need 
in professional boxing for a Federal boxing commission. The 
establishment of the USBC would address that need. The problems that 
plague the sport of professional boxing undermine the credibility of 
the sport in the eyes of the public and--more importantly--compromise 
the safety of boxers. The Professional Boxing Amendments Act provides 
an effective approach to curbing these problems. I urge my colleagues 
to support this legislation.
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Dorgan, Mr. Baucus. Mr. Grassley, 
        Mr. Reid, Mrs. Feinstein, and Mr. Feingold):
  S. 85. A bill to amend the Omnibus Crime Control and Safe Streets Act 
of 1968 to clarify that territories and Indian tribes are eligible to 
receive grants for confronting the use of methamphetamine; to the 
Committee on the Judiciary.
  Mr. McCAIN. Mr. President, today I am introducing the Indian Tribes 
Methamphetamine Reduction Grants Act of 2007. This bill is identical to 
S. 4113, a bipartisan measure that was passed by unanimous consent in 
the Senate on December 8, 2006, the last day of the 109th Congress. The 
legislation would allow Indian tribes to be eligible for funding 
through the Department of Justice to eradicate the scourge of 
methamphetamine use, sale and manufacture in Native American 
communities. I am pleased to be joined by Senators Dorgan, Baucus, 
Grassley, Reid, Feinstein, and Feingold in introducing this important 
legislation.
  The impacts of methamphetamine use on communities across the Nation 
are well known and cannot be overstated. Methamphetamine is the leading 
drug-related law enforcement problem in the country. Unfortunately, the 
meth crisis is affecting Indian Country most severely. Very serious 
concerns have been raised by the U.S. Department of Justice, States, 
and other non-tribal law enforcement agencies over the rapidly growing 
levels of methamphetamine production and trafficking on reservations 
with large geographic areas or tribes adjacent to the U.S.-Mexico 
border. But because of the sovereign status of the tribes, criminals 
are generally not subject to state jurisdiction in many cases. As a 
result, local law enforcement often has no jurisdiction in Indian 
country, and tribal law enforcement agencies bear the brunt of most law 
enforcement functions.
  The problem of meth in Indian country, which the National Congress of 
American Indians identified last year as its top priority, is 
ubiquitous, and has strained already overburdened law enforcement, 
health, social welfare, housing, and child protective and placement 
services on Indian reservations. Last year a former tribal judge on the 
Wind River Reservation in Wyoming pled guilty to conspiracy to 
distribute methamphetamine and other drugs. The day before, the Navajo 
Nation police arrested an 81 year old grandmother, her daughter, and 
her

[[Page 156]]

granddaughter, for selling meth. One tribe in Arizona had over 60 
babies born with meth in their systems. In 2005, the National Indian 
Housing Council expanded its training for dealing with meth in tribal 
housing: the average cost of decontaminating a single residence that 
has been used a meth lab is $10,000.
  During the 109th Congress, as the Chairman of the Senate Indian 
Affairs Committee, I held hearings on this serious matter. Committee 
witnesses testified that the methamphetamine epidemic in Indian country 
has contributed to a rise in child abuse and neglect cases, among other 
social ills, and some tribes reported dramatic increases in suicide 
rates among young people linked to methamphetamine use. Following our 
hearings, I was pleased to work with Senators Dorgan, Sessions, 
Bingaman and others in improving upon our legislation to assist Indian 
Country in fighting this terrible drug crisis.
  To avoid any potential misinterpretation of the intent of this 
legislation, this bill includes language developed and agreed to during 
the last Congress that is designed to clarify the intent of the bill. 
This clarifying language, provided in section 2(a)(4) of the bill, is 
intended to make it clear that by authorizing the Department of 
Justice's Bureau of Justice Assistance to award grant funds to a state, 
territory or Indian tribe to ``investigate, arrest and prosecute 
individuals'' involved in illegal methamphetamine activities, the 
legislation does not somehow authorize a grantee state, territory or 
Indian tribe to pursue law enforcement activities that it otherwise has 
no jurisdiction to pursue. And similarly, this provision also clarifies 
that an award or denial of a grant by the Bureau of Justice Assistance 
does not somehow allow a state, territory or Indian tribe to pursue law 
enforcement activities that it otherwise lacks jurisdiction to pursue. 
For example, a law enforcement agency in one state, territory or Indian 
reservation is not somehow enabled by this section, or by an award made 
pursuant to this section, to prosecute a methamphetamine crime arising 
in some other jurisdiction unless that agency already has such 
jurisdiction.
  The legislation further clarifies that authority under the bill to 
award grants would have no effect beyond simply authorizing, awarding 
or denying a grant of funds to a state, territory or Indian tribe. So, 
for example, if a state, territory or Indian tribe is awarded or denied 
a grant of funds under this section, that award or denial has no 
relevance to or effect on the eligibility of the state, territory or 
Indian tribe to participate in any other program or activity unrelated 
to the award or denial of grants as permitted under this legislation. 
The award or denial of a grant under this subsection, in other words, 
is relevant only to the award or denial of the grant under this 
subsection, and nothing else.
  The measure I am introducing today takes but a small step on the long 
journey toward our fight against methamphetamine. I encourage my 
colleagues to support it.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Kyl):
  S. 86. A bill to designate segments of Fossil Creek, a tributary to 
the Verde River in the State of Arizona, as wild and scenic rivers; to 
the Committee on Energy and Natural Resources.
  Mr. McCAIN. Mr. President, I am please to be joined by my colleague, 
Senator Kyl, in reintroducing a bill to designate Fossil Creek as a 
Wild and Scenic River. A companion measure is being introduced today by 
Congressman Renzi and other members of the Arizona congressional 
delegation.
  Fossil Creek is a thing of beauty. With its picturesque scenery, lush 
riparian ecosystem, unique geological features, and deep iridescent 
blue pools and waterfalls, this tributary to the Wild and Scenic Verde 
River and Lower Colorado River Watershed stretches 14 miles through 
east central Arizona. It is home to a wide variety of wildlife, some of 
which are threatened or endangered species. Over 100 bird species 
inhabit the Fossil Creek area and use it to migrate between the range 
lowlands and the Mogollon-Colorado Plateau highlands. Fossil Creek also 
supports a variety of aquatic species and is one of the few perennial 
streams in Arizona with multiple native fish.
  Fossil Creek was named in the 1800's when early explorers described 
the fossil-like appearance of creek-side rocks and vegetation coated 
with calcium carbonate deposits from the creek's water. In the early 
1900's, pioneers recognized the potential for hydroelectric power 
generation in the creek's constant and abundant spring fed base-flow. 
They claimed the channel's water rights and built a dam system and 
generating facilities known as the Childs-Irving hydro-project. Over 
time, the project was acquired by Arizona Public Service (APS), one of 
the state's largest eclectic utility providers serving more than a 
million Arizonans. Because Childs-Irving produced less then half of 1 
percent of the total power generated by APS, the decision was made 
ultimately to decommission the aging dam and restore Fossil Creek to 
its pre-settlement conditions.
  APS has partnered with various environmental groups, federal land 
managers, and state, tribal and local governments to safely remove the 
Childs-Irving power generating facilities and restore the riparian 
ecosystem. In 2005, APS removed the dam system and returned full flows 
to Fossil Creek. Researchers predict Fossil Creek will soon become a 
fully regenerated Southwest native fishery providing a most-valuable 
opportunity to reintroduce at least six Threatened and Endangered 
native fish species as well as rebuild the native populations presently 
living in the creek.
  There is a growing need to provide additional protection and adequate 
staffing and management at Fossil Creek. Recreational visitation to the 
riverbed is expected to increase dramatically, and by the Forest 
Service's own admission, they aren't able to manage current levels of 
visitation or the pressures of increased use. While responsible 
recreation and other activities at Fossil Creek are to be encouraged, 
we must also ensure the long-term success of the ongoing restoration 
efforts. Designation under the Wild and Scenic Rivers Act would help to 
ensure the appropriate level of protection and resources are devoted to 
Fossil Creek. Already, Fossil Creek has been found eligible for Wild 
and Scenic designation by the Forest Service and the proposal has 
widespread support from surrounding communities. All of the lands 
potentially affected by a designation are owned and managed by the 
Forest Service and will not affect private property owners.
  Fossil Creek is a unique Arizona treasure, and would benefit greatly 
from the protection and recognition offered through Wild and Scenic 
designation. I urge my colleagues to support this bill.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Kennedy, Ms. Cantwell, Ms. 
        Landrieu, Mr. Lautenberg, and Mrs. Murray):
  S. 95. A bill to amend titles XIX and XXI of the Social Security Act 
to ensure that every uninsured child in America has health insurance 
coverage, and for other purposes; to the Committee on Finance.
  Mr. KERRY. Mr. President, today the first bill I am introducing in 
the 110th Congress is the Kids Come First Act, legislation that would 
ensure every child in America has health care coverage. The Kids Come 
First Act was also the first bill I introduced in the 109th Congress 
and I feel just as strongly today as I did at the beginning of the last 
Congress that insuring all children must be a top agenda item. In the 
two years since I last introduced this bill, the problem of uninsured 
children in this nation has actually worsened.
  The 110th Congress faces many challenges, from the war in Iraq to 
lobbying reform. But perhaps no issue bears more directly on the lives 
of more Americans than health care reform. Today 47 million Americans 
are uninsured, including 11 million under age 21. Health care has 
become a slow-motion Katrina that is ruining lives and bankrupting 
families all over the country. We cannot stand by as the

[[Page 157]]

ranks of the uninsured rise and American families find themselves in 
peril.
  A recent Census Bureau report revealed that for the first time in 
almost a decade the number of uninsured children increased. In 2005 
there were 361,000 children under the age of 18 added to the uninsured 
rolls. And the number of Americans without health care continues to 
rise.
  The Kids Come First Act calls for a Federal-State partnership to 
mandate health coverage to every child in America. The proposal makes 
the states an offer they can't refuse. The federal government will pay 
for the most expensive part: enrolling all low-income children in 
Medicaid, automatically. The states will pay to expand coverage to 
higher income children. In the end, states across the country will save 
more than $6 billion a year, and every child will have health care.
  It is totally unacceptable that, in the greatest country in the 
world, millions of children are not getting the health care they need. 
The Kids Come First Act expands coverage for children up to age of 21. 
Through expanding the programs that work, such as Medicaid and SCHIP, 
we can cover all eleven million children uninsured children.
  Insuring children improves their health and helps families cover the 
spiraling costs of insuring them. Covering all kids will reduce 
avoidable hospitalizations by 22 percent and replace expensive critical 
care with inexpensive preventative care. Also, when children get the 
medical attention they need, they pay much better attention in the 
classroom and studies show their performance improves.
  To pay for the expansion of health insurance for children, the Kids 
Come First Act includes a provision that provides the Secretary of 
Treasury with the authority to raise the highest income tax rate of 35 
percent to a rate not higher than 39.6 percent in order to offset the 
costs. Prior to the enactment of the Economic Growth and Tax Relief Act 
Reconciliation Act of 2001, the top marginal rate was 39.6 percent. 
Less than one percent of taxpayers pay the top rate and for 2007, this 
rate only affects individual with income above $349,700.
  The health care of our children is a priority that we must address 
and it can be done in a fiscally responsible manner. I will continue to 
work to find ways to offset the cost of my proposal. The wealthiest of 
all Americans do not need a tax cut when 11 million children do not 
even have health insurance. President Bush has called for this rate cut 
to be made permanent, but I believe it would be a better use of our 
resources to invest in our future by improving health care for 
children.
  Since I first introduced the Kids Come First Act in the 109th 
Congress, more than 500,000 people have shown their support for the 
bill by becoming Citizen Cosponsors and another 20,000 Americans called 
into our ``Give Voices to Our Values'' hotline to share their personal 
stories. In addition, a coalition of 24 non-profit organizations 
representing 20 million people from across the country have endorsed 
Kids Come First, including the National Association of Children's 
Hospitals, the American Academy of Pediatrics, the American Academy of 
Family Physicians, March of Dimes, the Small Business Service Bureau, 
AFL-CIO, SEIU, and AFSCME.
  It is clear that providing health care coverage for our uninsured 
children is a priority for our nation's workers, businesses, and health 
care community. They know, as I do, that further delay only results in 
graver health problems for America's children. Their future, and ours, 
depends on us doing better. I urge my colleagues to support and help 
enacting the Kids Come First Act of 2007 during this Congress.
  I ask unanimous consent that the text of the Kids Come First Act of 
2007 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. 95

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Kids Come 
     First Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.

    TITLE I--EXPANDED COVERAGE OF CHILDREN UNDER MEDICAID AND SCHIP

Sec. 101. State option to receive 100 percent FMAP for medical 
              assistance for children in poverty in exchange for 
              expanded coverage of children in working poor families 
              under Medicaid or SCHIP.
Sec. 102. Elimination of cap on SCHIP funding for States that expand 
              eligibility for children.

   TITLE II--STATE OPTIONS FOR INCREMENTAL CHILD COVERAGE EXPANSIONS

Sec. 201. State option to provide wrap-around SCHIP coverage to 
              children who have other health coverage.
Sec. 202. State option to enroll low-income children of State employees 
              in SCHIP.
Sec. 203. Optional coverage of legal immigrant children under Medicaid 
              and SCHIP.
Sec. 204. State option for passive renewal of eligibility for children 
              under Medicaid and SCHIP.

  TITLE III--TAX INCENTIVES FOR HEALTH INSURANCE COVERAGE OF CHILDREN

Sec. 301. Refundable credit for health insurance coverage of children.
Sec. 302. Forfeiture of personal exemption for any child not covered by 
              health insurance.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Requirement for group market health insurers to offer 
              dependent coverage option for workers with children.
Sec. 402. Effective date.

                       TITLE V--REVENUE PROVISION

Sec. 501. Partial repeal of rate reduction in the highest income tax 
              bracket.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Need for universal coverage.--
       (A) Currently, there are 9,000,000 children under the age 
     of 19 that are uninsured. One out of every 8 children are 
     uninsured while 1 in 5 Hispanic children and 1 in 7 African 
     American children are uninsured. Three-quarters, 
     approximately 6,800,000, of these children are eligible but 
     not enrolled in the Medicaid program or the State Children's 
     Health Insurance Program (SCHIP). Long-range studies found 
     that 1 in 3 children went without health insurance for all or 
     part of 2002 and 2003.
       (B) Low-income children are 3 times as likely as children 
     in higher income families to be uninsured. It is estimated 
     that 65 percent of uninsured children have at least 1 parent 
     working full time over the course of the year.
       (C) It is estimated that 50 percent of all legal immigrant 
     children in families with income that is less than 200 
     percent of the Federal poverty line are uninsured. In States 
     without programs to cover immigrant children, 57 percent of 
     noncitizen children are uninsured.
       (D) Children in the Southern and Western parts of the 
     United States were nearly 1.7 times more likely to be 
     uninsured than children in the Northeast. In the Northeast, 
     9.4 percent of children are uninsured while in the Midwest, 
     8.3 percent are uninsured. The South's rate of uninsured 
     children is 14.3 percent while the West has an uninsured rate 
     of 13 percent.
       (E) Children's health care needs are neglected in the 
     United States. One out of every 5 children has problems 
     accessing needed care and one-quarter of young children in 
     the United States are not fully up to date on their basic 
     immunizations. One-third of children with chronic asthma do 
     not get a prescription for the necessary medications to 
     manage the disease and 1 out of every 4 children do not 
     receive annual dental exams.
       (F) Children without health insurance are twice as likely 
     as insured children to not receive any medical care in a 
     given year. According to the Centers for Disease Control and 
     Prevention, nearly \1/2\ of all uninsured children have not 
     had a well-child visit in the past year. One in 6 uninsured 
     children had a delayed or unmet medical need in the past 
     year. Minority children are less likely to receive proven 
     treatments such as prescription medications to treat chronic 
     disease.
       (G) There are 7,600,000 young adults between the ages of 19 
     and 20. In the United States, approximately 28 percent, or 
     2,100,000 individuals, of this group are uninsured.
       (H) Chronic illness and disability among children are on 
     the rise. Children most at risk for chronic illness and 
     disability are children who are most likely to be poor and 
     uninsured.
       (2) Role of the medicaid and state children's health 
     insurance programs.--
       (A) The Medicaid program and SCHIP serve as a crucial 
     health safety net for 30,000,000 children. During the recent 
     economic downturn and the highest number of uninsured 
     individuals ever recorded in the United States,

[[Page 158]]

     the Medicaid program and SCHIP offset losses in employer-
     sponsored coverage. While the number of children living in 
     low-income families increased between 2000 and 2005, the 
     number of uninsured children fell due to the Medicaid program 
     and SCHIP.
       (B) 28,000,000 children are enrolled today in the Medicaid 
     program, accounting for \1/2\ of all enrollees and only 18 
     percent of total program costs.
       (C) The Medicaid program and SCHIP do more than just fill 
     in the gaps. Gains in public coverage have reduced the 
     percentage of low-income uninsured children by \1/3\ from 
     1997 to 2005. In addition, a study found that publicly-
     insured children are more likely to obtain medical care, 
     preventive care, and dental care than similar low-income 
     privately-insured children.
       (D) Publicly funded programs such as the Medicaid program 
     and SCHIP actually improve children's health. Children who 
     are currently insured by public programs are in better health 
     than they were a year ago. Expansion of coverage for children 
     and pregnant women under the Medicaid program and SCHIP 
     reduces rates of avoidable hospitalizations by 22 percent and 
     has been proven to reduce childhood deaths, infant mortality 
     rates, and the incidence of low birth weight.
       (E) Studies have found that children enrolled in public 
     insurance programs experienced a 68-percent improvement in 
     measures of school performance.
       (F) Despite the success of expansions in general under the 
     Medicaid program and SCHIP, due to current budget 
     constraints, many States have stopped doing aggressive 
     outreach and have raised premiums and cost-sharing 
     requirements on families under these programs. In addition, 8 
     States stopped enrollment in SCHIP for a period of time 
     between April 2003 and July 2004. As a result, SCHIP 
     enrollment fell by 200,000 children for the first time in the 
     program's history.
       (G) It is estimated that nearly 50 percent of children 
     covered through SCHIP do not remain in the program due to 
     reenrollment barriers. A recent study found that between 10 
     and 40 percent of these children are ``lost'' in the system. 
     Difficult renewal policies and reenrollment barriers make 
     seamless coverage in SCHIP unattainable. Studies indicate 
     that as many as 67 percent of children who were eligible but 
     not enrolled for SCHIP had applied for coverage but were 
     denied due to procedural issues.
       (H) While the Medicaid program and SCHIP expansions to date 
     have done much to offset what otherwise would have been a 
     significant loss of coverage among children because of 
     declining access to employer coverage, the shortcomings of 
     previous expansions, such as the failure to enroll all 
     eligible children and caps on enrollment in SCHIP because of 
     under-funding, also are clear.

    TITLE I--EXPANDED COVERAGE OF CHILDREN UNDER MEDICAID AND SCHIP

     SEC. 101. STATE OPTION TO RECEIVE 100 PERCENT FMAP FOR 
                   MEDICAL ASSISTANCE FOR CHILDREN IN POVERTY IN 
                   EXCHANGE FOR EXPANDED COVERAGE OF CHILDREN IN 
                   WORKING POOR FAMILIES UNDER MEDICAID OR SCHIP.

       (a) State Option.--Title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) is amended by redesignating section 1939 
     as section 1940, and by inserting after section 1938 the 
     following:


 ``STATE OPTION FOR INCREASED FMAP FOR MEDICAL ASSISTANCE FOR CHILDREN 
  IN POVERTY IN EXCHANGE FOR EXPANDED COVERAGE OF CHILDREN IN WORKING 
              POOR FAMILIES UNDER THIS TITLE OR TITLE XXI

       ``Sec. 1939.  (a) 100 Percent FMAP.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, in the case of a State that, through an amendment 
     to each of its State plans under this title and title XXI (or 
     to a waiver of either such plan), agrees to satisfy the 
     conditions described in subsections (b), (c), and (d), the 
     Federal medical assistance percentage shall be 100 percent 
     with respect to the total amount expended by the State for 
     providing medical assistance under this title for each fiscal 
     year quarter beginning on or after the date described in 
     subsection (e) for children whose family income does not 
     exceed 100 percent of the poverty line.
       ``(2) Limitation on scope of application of increase.--The 
     increase in the Federal medical assistance percentage for a 
     State under this section shall apply only with respect to the 
     total amount expended for providing medical assistance under 
     this title for a fiscal year quarter for children described 
     in paragraph (1) and shall not apply with respect to--
       ``(A) any other payments made under this title, including 
     disproportionate share hospital payments described in section 
     1923;
       ``(B) payments under title IV or XXI; or
       ``(C) any payments made under this title or title XXI that 
     are based on the enhanced FMAP described in section 2105(b).
       ``(b) Eligibility Expansions.--The condition described in 
     this subsection is that the State agrees to do the following:
       ``(1) Coverage under medicaid or schip for children in 
     families whose income does not exceed 300 percent of the 
     poverty line.--
       ``(A) In general.--The State agrees to provide medical 
     assistance under this title or child health assistance under 
     title XXI to children whose family income exceeds the 
     medicaid applicable income level (as defined in section 
     2110(b)(4) but by substituting `January 1, 2007' for `March 
     31, 1997'), but does not exceed 300 percent of the poverty 
     line.
       ``(B) State option to expand coverage through subsidized 
     purchase of family coverage.--A State may elect to carry out 
     subparagraph (A) through the provision of assistance for the 
     purchase of dependent coverage under a group health plan or 
     health insurance coverage if--
       ``(i) the dependent coverage is consistent with the benefit 
     standards under this title or title XXI, as approved by the 
     Secretary; and
       ``(ii) the State provides `wrap-around' coverage under this 
     title or title XXI.
       ``(C) Deemed satisfaction for certain states.--A State 
     that, as of January 1, 2007, provides medical assistance 
     under this title or child health assistance under title XXI 
     to children whose family income is 300 percent of the poverty 
     line shall be deemed to satisfy this paragraph.
       ``(2) Coverage for children under age 21.--The State agrees 
     to define a child for purposes of this title and title XXI as 
     an individual who has not attained 21 years of age.
       ``(3) Opportunity for higher income children to purchase 
     schip coverage.--The State agrees to permit any child whose 
     family income exceeds 300 percent of the poverty line to 
     purchase full or `wrap-around' coverage under title XXI at 
     the full cost of providing such coverage, as determined by 
     the State.
       ``(4) Coverage for legal immigrant children.--The State 
     agrees to--
       ``(A) provide medical assistance under this title and child 
     health assistance under title XXI for alien children who are 
     lawfully residing in the United States (including battered 
     aliens described in section 431(c) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996) and who are otherwise eligible for such assistance in 
     accordance with section 1903(v)(4) and 2107(e)(1)(F); and
       ``(B) not establish or enforce barriers that deter 
     applications by such aliens, including through the 
     application of the removal of the barriers described in 
     subsection (c).
       ``(c) Removal of Enrollment and Access Barriers.--The 
     condition described in this subsection is that the State 
     agrees to do the following:
       ``(1) Presumptive eligibility for children.--The State 
     agrees to--
       ``(A) provide presumptive eligibility for children under 
     this title and title XXI in accordance with section 1920A; 
     and
       ``(B) treat any items or services that are provided to an 
     uncovered child (as defined in section 2110(c)(8)) who is 
     determined ineligible for medical assistance under this title 
     as child health assistance for purposes of paying a provider 
     of such items or services, so long as such items or services 
     would be considered child health assistance for a targeted 
     low-income child under title XXI.
       ``(2) Adoption of 12-month continuous enrollment.--The 
     State agrees to provide that eligibility for assistance under 
     this title and title XXI shall not be regularly redetermined 
     more often than once every year for children.
       ``(3) Acceptance of self-declaration of income.--The State 
     agrees to permit the family of a child applying for medical 
     assistance under this title or child health assistance under 
     title XXI to declare and certify by signature under penalty 
     of perjury family income for purposes of collecting financial 
     eligibility information.
       ``(4) Adoption of acceptance of eligibility determinations 
     for other assistance programs.--The State agrees to accept 
     determinations (made within a reasonable period, as found by 
     the State, before its use for this purpose) of an 
     individual's family or household income made by a Federal or 
     State agency (or a public or private entity making such 
     determination on behalf of such agency), including the 
     agencies administering the Food Stamp Act of 1977, the 
     Richard B. Russell National School Lunch Act, and the Child 
     Nutrition Act of 1966, notwithstanding any differences in 
     budget unit, disregard, deeming, or other methodology, but 
     only if--
       ``(A) such agency has fiscal liabilities or 
     responsibilities affected or potentially affected by such 
     determinations; and
       ``(B) any information furnished by such agency pursuant to 
     this subparagraph is used solely for purposes of determining 
     eligibility for medical assistance under this title or for 
     child health assistance under title XXI.
       ``(5) No assets test.--The State agrees to not (or 
     demonstrates that it does not) apply any assets or resources 
     test for eligibility under this title or title XXI with 
     respect to children.
       ``(6) Eligibility determinations and redeterminations.--
       ``(A) In general.--The State agrees for purposes of initial 
     eligibility determinations and redeterminations of children 
     under this title and title XXI not to require a face-to-face 
     interview and to permit applications

[[Page 159]]

     and renewals by mail, telephone, and the Internet.
       ``(B) Nonduplication of information.--
       ``(i) In general.--For purposes of redeterminations of 
     eligibility for currently or previously enrolled children 
     under this title and title XXI, the State agrees to use all 
     information in its possession (including information 
     available to the State under other Federal or State programs) 
     to determine eligibility or redetermine continued eligibility 
     before seeking similar information from parents.
       ``(ii) Rule of construction.--Nothing in clause (i) shall 
     be construed as limiting any obligation of a State to provide 
     notice and a fair hearing before denying, terminating, or 
     reducing a child's coverage based on such information in the 
     possession of the State.
       ``(7) No waiting list for children under schip.--The State 
     agrees to not impose any numerical limitation, waiting list, 
     waiting period, or similar limitation on the eligibility of 
     children for child health assistance under title XXI or to 
     establish or enforce other barriers to the enrollment of 
     eligible children based on the date of their application for 
     coverage.
       ``(8) Adequate provider payment rates.--The State agrees 
     to--
       ``(A) establish payment rates for children's health care 
     providers under this title that are no less than the average 
     of payment rates for similar services for such providers 
     provided under the benchmark benefit packages described in 
     section 2103(b);
       ``(B) establish such rates in amounts that are sufficient 
     to ensure that children enrolled under this title or title 
     XXI have adequate access to comprehensive care, in accordance 
     with the requirements of section 1902(a)(30)(A); and
       ``(C) include provisions in its contracts with providers 
     under this title guaranteeing compliance with these 
     requirements.
       ``(d) Maintenance of Medicaid Eligibility Levels for 
     Children.--
       ``(1) In general.--The condition described in this 
     subsection is that the State agrees to maintain eligibility 
     income, resources, and methodologies applied under this title 
     (including under a waiver of such title or under section 
     1115) with respect to children that are no more restrictive 
     than the eligibility income, resources, and methodologies 
     applied with respect to children under this title (including 
     under such a waiver) as of January 1, 2007.
       ``(2) Rule of construction.--Nothing in this section shall 
     be construed as implying that a State does not have to comply 
     with the minimum income levels required for children under 
     section 1902(l)(2).
       ``(e) Date Described.--The date described in this 
     subsection is the date on which, with respect to a State, a 
     plan amendment that satisfies the requirements of subsections 
     (b), (c), and (d) is approved by the Secretary.
       ``(f) Definition of Poverty Line.--In this section, the 
     term `poverty line' has the meaning given that term in 
     section 2110(c)(5).''.
       (b) Conforming Amendments.--
       (1) The third sentence of section 1905(b) of the Social 
     Security Act (42 U.S.C. 1396d(b)) is amended by inserting 
     before the period the following: ``, and with respect to 
     amounts expended for medical assistance for children on or 
     after the date described in subsection (e) of section 1939, 
     in the case of a State that has, in accordance with such 
     section, an approved plan amendment under this title and 
     title XXI''.
       (2) Section 1903(f)(4) of the Social Security Act (42 
     U.S.C. 1396b(f)(4)) is amended--
       (A) in subparagraph (C), by adding ``or'' after ``section 
     1611(b)(1),''; and
       (B) by inserting after subparagraph (C), the following:
       ``(D) who would not receive such medical assistance but for 
     State electing the option under section 1939 and satisfying 
     the conditions described in subsections (b), (c), and (d) of 
     such section,''.

     SEC. 102. ELIMINATION OF CAP ON SCHIP FUNDING FOR STATES THAT 
                   EXPAND ELIGIBILITY FOR CHILDREN.

       (a) In General.--Section 2105 of the Social Security Act 
     (42 U.S.C. 1397dd) is amended by adding at the end the 
     following:
       ``(h) Guaranteed Funding for Child Health Assistance for 
     Coverage Expansion States.--
       ``(1) In general.--Only in the case of a State that has, in 
     accordance with section 1939, an approved plan amendment 
     under this title and title XIX, any payment cap that would 
     otherwise apply to the State under this title as a result of 
     having expended all allotments available for expenditure by 
     the State with respect to a fiscal year shall not apply with 
     respect to amounts expended by the State on or after the date 
     described in section 1939(e).
       ``(2) Appropriation.--There is appropriated, out of any 
     money in the Treasury not otherwise appropriated, such sums 
     as may be necessary for the purpose of paying a State 
     described in paragraph (1) for each quarter beginning on or 
     after the date described in section 1939(e), an amount equal 
     to the enhanced FMAP of expenditures described in paragraph 
     (1) and incurred during such quarter.''.
       (b) Conforming Amendments.--Section 2104 of the Social 
     Security Act (42 U.S.C. 1397dd) is amended--
       (1) in subsection (a), by inserting ``and section 2105(h)'' 
     after ``subsection (d)'';
       (2) in subsection (b)(1), by striking ``and subsection 
     (d)'' and inserting ``, subsection (d), and section 
     2105(h)''; and
       (3) in subsection (c)(1), by inserting ``and section 
     2105(h)'' after ``subsection (d)''.

   TITLE II--STATE OPTIONS FOR INCREMENTAL CHILD COVERAGE EXPANSIONS

     SEC. 201. STATE OPTION TO PROVIDE WRAP-AROUND SCHIP COVERAGE 
                   TO CHILDREN WHO HAVE OTHER HEALTH COVERAGE.

       (a) In General.--Section 2110(b) of the Social Security Act 
     (42 U.S.C. 1397jj(b)) is amended--
       (1) in paragraph (1)(C), by inserting ``, subject to 
     paragraph (5),'' after ``under title XIX or''; and
       (2) by adding at the end the following new paragraph:
       ``(5) State option to provide wrap-around coverage.--
       ``(A) In general.--A State may waive the requirement of 
     paragraph (1)(C) that a targeted low-income child may not be 
     covered under a group health plan or under health insurance 
     coverage in order to provide--
       ``(i) items or services that are not covered, or are only 
     partially covered, under such plan or coverage; or
       ``(ii) cost-sharing protection.
       ``(B) Eligibility.--In waiving such requirement, a State 
     may limit the application of the waiver to children whose 
     family income does not exceed a level specified by the State, 
     so long as the level so specified does not exceed the maximum 
     income level otherwise established for other children under 
     the State child health plan.
       ``(C) Continued application of duty to prevent substitution 
     of existing coverage.--Nothing in this paragraph shall be 
     construed as modifying the application of section 
     2102(b)(3)(C) to a State.''.
       (b) Application of Enhanced Match Under Medicaid.--Section 
     1905 of such Act (42 U.S.C. 1396d) is amended--
       (1) in subsection (b), in the fourth sentence, by striking 
     ``subsection (u)(3)'' and inserting ``, (u)(3), or (u)(4)''; 
     and
       (2) in subsection (u), by redesignating paragraph (4) as 
     paragraph (5) and by inserting after paragraph (3) the 
     following:
       ``(4) For purposes of subsection (b), the expenditures 
     described in this paragraph are expenditures for items and 
     services for children described in section 2110(b)(5).''.
       (c) Application of Secondary Payor Provisions.--Section 
     2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)) is amended--
       (1) by redesignating subparagraphs (B) through (D) as 
     subparagraphs (C) through (E), respectively; and
       (2) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Section 1902(a)(25) (relating to coordination of 
     benefits and secondary payor provisions) with respect to 
     children covered under a waiver described in section 
     2110(b)(5).''.

     SEC. 202. STATE OPTION TO ENROLL LOW-INCOME CHILDREN OF STATE 
                   EMPLOYEES IN SCHIP.

       Section 2110(b)(2) of the Social Security Act (42 U.S.C. 
     1397jj(b)(2)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively and realigning the left margins of 
     such clauses appropriately;
       (2) by striking ``Such term'' and inserting the following:
       ``(A) In general.--Such term''; and
       (3) by adding at the end the following:
       ``(B) State option to enroll low-income children of state 
     employees.--At the option of a State, subparagraph (A)(ii) 
     shall not apply to any low-income child who would otherwise 
     be eligible for child health assistance under this title but 
     for such subparagraph.''.

     SEC. 203. OPTIONAL COVERAGE OF LEGAL IMMIGRANT CHILDREN UNDER 
                   MEDICAID AND SCHIP.

       (a) Medicaid Program.--Section 1903(v) of the Social 
     Security Act (42 U.S.C. 1396b(v)) is amended--
       (1) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (4)''; and
       (2) by adding at the end the following:
       ``(4)(A) A State may elect (in a plan amendment under this 
     title) to provide medical assistance under this title for 
     aliens--
       ``(i) who are lawfully residing in the United States 
     (including battered aliens described in section 431(c) of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996); and
       ``(ii) who are otherwise eligible for such assistance, 
     within the eligibility category of children (as defined under 
     such plan), including optional targeted low-income children 
     described in section 1905(u)(2)(B).
       ``(B)(i) In the case of a State that has elected to provide 
     medical assistance to a category of aliens under subparagraph 
     (A), no debt shall accrue under an affidavit of support 
     against any sponsor of such an alien on the basis of 
     provision of assistance to such category and the cost of such 
     assistance shall not be considered as an unreimbursed cost.
       ``(ii) The provisions of sections 401(a), 402(b), 403, and 
     421 of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 shall not apply to a State that 
     makes an election under subparagraph (A).''.

[[Page 160]]

       (b) Title XXI.--Section 2107(e)(1) of the Social Security 
     Act (42 U.S.C. 1397gg(e)(1)), as amended by section 201(c), 
     is amended redesignating subparagraph (E) as subparagraph (F) 
     and by inserting after subparagraph (D) the following:
       ``(E) Section 1903(v)(4) (relating to optional coverage of 
     permanent resident alien children), but only if the State has 
     elected to apply such section to that category of children 
     under title XIX.''.

     SEC. 204. STATE OPTION FOR PASSIVE RENEWAL OF ELIGIBILITY FOR 
                   CHILDREN UNDER MEDICAID AND SCHIP.

       (a) In General.--Section 1902(l) of the Social Security Act 
     (42 U.S.C. 1396a(l)) is amended by adding at the end the 
     following:
       ``(5) Notwithstanding any other provision of this title, a 
     State may provide that an individual who has not attained 21 
     years of age who has been determined eligible for medical 
     assistance under this title shall remain eligible for medical 
     assistance until such time as the State has information 
     demonstrating that the individual is no longer so 
     eligible.''.
       (b) Application Under Title XXI.--Section 2107(e)(1) of the 
     Social Security Act (42 U.S.C. 1397gg(e)), as amended by 
     section 201(c) and 203(b), is amended--
       (1) by redesignating subparagraphs (C) through (F) as 
     subparagraphs (D) through (G), respectively; and
       (2) by inserting after subparagraph (B), the following:
       ``(C) Section 1902(l)(5) (relating to passive renewal of 
     eligibility for children).''.

  TITLE III--TAX INCENTIVES FOR HEALTH INSURANCE COVERAGE OF CHILDREN

     SEC. 301. REFUNDABLE CREDIT FOR HEALTH INSURANCE COVERAGE OF 
                   CHILDREN.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 36 as 
     section 37 and by inserting after section 35 the following 
     new section:

     ``SEC. 36. HEALTH INSURANCE COVERAGE OF CHILDREN.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     subtitle an amount equal to so much of the amount paid during 
     the taxable year, not compensated for by insurance or 
     otherwise, for qualified health insurance for each dependent 
     child of the taxpayer, as exceeds 5 percent of the adjusted 
     gross income of such taxpayer for such taxable year.
       ``(b) Dependent Child.--For purposes of this section, the 
     term `dependent child' means any child (as defined in section 
     152(f)(1)) who has not attained the age of 19 as of the close 
     of the calendar year in which the taxable year of the 
     taxpayer begins and with respect to whom a deduction under 
     section 151 is allowable to the taxpayer.
       ``(c) Qualified Health Insurance.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified health insurance' 
     means insurance, either employer-provided or made available 
     under title XIX or XXI of the Social Security Act, which 
     constitutes medical care as defined in section 213(d) without 
     regard to--
       ``(A) paragraph (1)(C) thereof, and
       ``(B) so much of paragraph (1)(D) thereof as relates to 
     qualified long-term care insurance contracts.
       ``(2) Exclusion of certain other contracts.--Such term 
     shall not include insurance if a substantial portion of its 
     benefits are excepted benefits (as defined in section 
     9832(c)).
       ``(d) Medical Savings Account and Health Savings Account 
     Contributions.--
       ``(1) In general.--If a deduction would (but for paragraph 
     (2)) be allowed under section 220 or 223 to the taxpayer for 
     a payment for the taxable year to the medical savings account 
     or health savings account of an individual, subsection (a) 
     shall be applied by treating such payment as a payment for 
     qualified health insurance for such individual.
       ``(2) Denial of double benefit.--No deduction shall be 
     allowed under section 220 or 223 for that portion of the 
     payments otherwise allowable as a deduction under section 220 
     or 223 for the taxable year which is equal to the amount of 
     credit allowed for such taxable year by reason of this 
     subsection.
       ``(e) Special Rules.--
       ``(1) Determination of insurance costs.--The Secretary 
     shall provide rules for the allocation of the cost of any 
     qualified health insurance for family coverage to the 
     coverage of any dependent child under such insurance.
       ``(2) Coordination with deduction for health insurance 
     costs of self-employed individuals.--In the case of a 
     taxpayer who is eligible to deduct any amount under section 
     162(l) for the taxable year, this section shall apply only if 
     the taxpayer elects not to claim any amount as a deduction 
     under such section for such year.
       ``(3) Coordination with medical expense and high deductible 
     health plan deductions.--The amount which would (but for this 
     paragraph) be taken into account by the taxpayer under 
     section 213 or 223 for the taxable year shall be reduced by 
     the credit (if any) allowed by this section to the taxpayer 
     for such year.
       ``(4) Denial of credit to dependents.--No credit shall be 
     allowed under this section to any individual with respect to 
     whom a deduction under section 151 is allowable to another 
     taxpayer for a taxable year beginning in the calendar year in 
     which such individual's taxable year begins.
       ``(5) Denial of double benefit.--No credit shall be allowed 
     under subsection (a) if the credit under section 35 is 
     allowed and no credit shall be allowed under 35 if a credit 
     is allowed under this section.
       ``(6) Election not to claim credit.--This section shall not 
     apply to a taxpayer for any taxable year if such taxpayer 
     elects to have this section not apply for such taxable 
     year.''.
       (b) Information Reporting.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 (relating to 
     information concerning transactions with other persons) is 
     amended by inserting after section 6050V the following new 
     section:

     ``SEC. 6050W. RETURNS RELATING TO PAYMENTS FOR QUALIFIED 
                   HEALTH INSURANCE.

       ``(a) In General.--Any governmental unit or any person who, 
     in connection with a trade or business conducted by such 
     person, receives payments during any calendar year from any 
     individual for coverage of a dependent child (as defined in 
     section 36(b)) of such individual under creditable health 
     insurance, shall make the return described in subsection (b) 
     (at such time as the Secretary may by regulations prescribe) 
     with respect to each individual from whom such payments were 
     received.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe, and
       ``(2) contains--
       ``(A) the name, address, and TIN of the individual from 
     whom payments described in subsection (a) were received,
       ``(B) the name, address, and TIN of each dependent child 
     (as so defined) who was provided by such person with coverage 
     under creditable health insurance by reason of such payments 
     and the period of such coverage, and
       ``(C) such other information as the Secretary may 
     reasonably prescribe.
       ``(c) Creditable Health Insurance.--For purposes of this 
     section, the term `creditable health insurance' means 
     qualified health insurance (as defined in section 36(c)).
       ``(d) Statements To Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required under subsection 
     (b)(2)(A) to be set forth in such return a written statement 
     showing--
       ``(1) the name and address of the person required to make 
     such return and the phone number of the information contact 
     for such person,
       ``(2) the aggregate amount of payments described in 
     subsection (a) received by the person required to make such 
     return from the individual to whom the statement is required 
     to be furnished, and
       ``(3) the information required under subsection (b)(2)(B) 
     with respect to such payments.

     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) is required to be made.
       ``(e) Returns Which Would Be Required To Be Made by 2 or 
     More Persons.--Except to the extent provided in regulations 
     prescribed by the Secretary, in the case of any amount 
     received by any person on behalf of another person, only the 
     person first receiving such amount shall be required to make 
     the return under subsection (a).''.
       (2) Assessable penalties.--
       (A) Subparagraph (B) of section 6724(d)(1) of such Code 
     (relating to definitions) is amended by striking ``and'' at 
     the end of clause (xx) and by inserting at the end the 
     following new clause:
       ``(xxi) section 6050W (relating to returns relating to 
     payments for qualified health insurance), and''.
       (B) Paragraph (2) of section 6724(d) of such Code is 
     amended by striking ``or'' at the end of the next to last 
     subparagraph, by striking the period at the end of the last 
     subparagraph and inserting ``, or'', and by adding at the end 
     the following new subparagraph:
       ``(DD) section 6050W(d) (relating to returns relating to 
     payments for qualified health insurance).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6050V 
     the following new item:

``Sec. 6050W. Returns relating to payments for qualified health 
              insurance''.

       (c) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 36 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the last item and inserting the 
     following new items:


[[Page 161]]


``Sec. 36. Health insurance coverage of children
``Sec. 37. Overpayments of tax''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 302. FORFEITURE OF PERSONAL EXEMPTION FOR ANY CHILD NOT 
                   COVERED BY HEALTH INSURANCE.

       (a) In General.--Section 151(d) of the Internal Revenue 
     Code of 1986 (relating to exemption amount) is amended by 
     adding at the end the following new paragraph:
       ``(5) Reduction of exemption amount for any child not 
     covered by health insurance.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the exemption amount otherwise determined under 
     this subsection for any dependent child (as defined in 
     section 36(b)) for any taxable year shall be reduced by the 
     same percentage as the percentage of such taxable year during 
     which such dependent child was not covered by qualified 
     health insurance (as defined in section 36(c)).
       ``(B) Full reduction if no proof of coverage is provided.--
     For purposes of subparagraph (A), in the case of any taxpayer 
     who fails to attach to the return of tax for any taxable year 
     a copy of the statement furnished to such taxpayer under 
     section 6050W, the percentage reduction under such 
     subparagraph shall be deemed to be 100 percent.
       ``(C) Nonapplication of paragraph to taxpayers in lowest 
     tax bracket.--This paragraph shall not apply to any taxpayer 
     whose taxable income for the taxable year does not exceed the 
     initial bracket amount determined under section 
     1(i)(1)(B).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                        TITLE IV--MISCELLANEOUS

     SEC. 401. REQUIREMENT FOR GROUP MARKET HEALTH INSURERS TO 
                   OFFER DEPENDENT COVERAGE OPTION FOR WORKERS 
                   WITH CHILDREN.

       (a) ERISA.--
       (1) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 714. REQUIREMENT TO OFFER OPTION TO PURCHASE DEPENDENT 
                   COVERAGE FOR CHILDREN.

       ``(a) Requirements for Coverage.--A group health plan, and 
     a health insurance issuer providing health insurance coverage 
     in connection with a group health plan, shall offer an 
     individual who is enrolled in such coverage the option to 
     purchase dependent coverage for a child of the individual.
       ``(b) No Employer Contribution Required.--An employer shall 
     not be required to contribute to the cost of purchasing 
     dependent coverage for a child by an individual who is an 
     employee of such employer.
       ``(c) Definition of Child.--In this section, the term 
     `child' means an individual who has not attained 21 years of 
     age.''.
       (2) Clerical amendment.--The table of contents in section 1 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1001) is amended by inserting after the item relating 
     to section 713 the following:

``Sec. 714. Requirement to offer option to purchase dependent coverage 
              for children''.

       (b) Public Health Service Act.--Subpart 2 of part A of 
     title XXVII of the Public Health Service Act (42 U.S.C. 
     300gg-4 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 2707. REQUIREMENT TO OFFER OPTION TO PURCHASE 
                   DEPENDENT COVERAGE FOR CHILDREN.

       ``(a) Requirements for Coverage.--A group health plan, and 
     a health insurance issuer providing health insurance coverage 
     in connection with a group health plan, shall offer an 
     individual who is enrolled in such coverage the option to 
     purchase dependent coverage for a child of the individual.
       ``(b) No Employer Contribution Required.--An employer shall 
     not be required to contribute to the cost of purchasing 
     dependent coverage for a child by an individual who is an 
     employee of such employer.
       ``(c) Definition of Child.--In this section, the term 
     `child' means an individual who has not attained 21 years of 
     age.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to plan years beginning on or after 
     January 1, 2007.

     SEC. 402. EFFECTIVE DATE.

       Unless otherwise provided, the amendments made by this 
     title shall take effect on October 1, 2007, and shall apply 
     to child health assistance and medical assistance provided on 
     or after that date without regard to whether or not final 
     regulations to carry out such amendments have been 
     promulgated by such date.

                       TITLE V--REVENUE PROVISION

     SEC. 501. PARTIAL REPEAL OF RATE REDUCTION IN THE HIGHEST 
                   INCOME TAX BRACKET.

       Section 1(i)(2) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following flush sentence:
       
     ``In the case of taxable years beginning during calendar year 
     2007 and thereafter, the final item in the fourth column in 
     the preceding table shall be applied by substituting for 
     ``35.0%'' a rate equal to the lesser of 39.6% or the rate the 
     Secretary determines is necessary to provide sufficient 
     revenues to offset the Federal outlays required to implement 
     the provisions of, and amendments made by, the Kids Come 
     First Act of 2007.''.
                                 ______
                                 
      By Mr. KERRY:
  S. 96. A bill to amend the Internal Revenue Code of 1986 to ensure a 
fairer and simpler method of taxing controlled foreign corporations of 
United States shareholders, to treat certain foreign corporations 
managed and controlled in the United States as domestic corporations, 
to codify the economic substance doctrine, and to eliminate the top 
corporate income tax rate, and for other purposes; to the Committee on 
Finance.
  Mr. KERRY. Mr. President, today I am introducing the ``Export 
Products Not Jobs Act.'' Our tax code is extremely complicated. In 
1994, the IRS estimated that a family that itemized their deductions 
and had some interest and capital gains would spend 11\1/2\ hours 
preparing their Federal income tax return. A decade later in 2004, this 
estimate increased to 19 hours and 45 minutes. It is time for Congress 
to pass bipartisan tax legislation in the style of the Tax Reform Act 
of 1986, which greatly simplified the tax code. And our tax reform 
should be based upon the following three principles: fairness, 
simplicity, and opportunity for economic growth.
  Citizens and businesses struggle to comply with rules governing 
taxation of business income, capital gains, income phase-outs, 
extenders, the myriad savings vehicles, recordkeeping for itemized 
deductions, the alternative minimum tax (AMT), the earned income tax 
credit (EITC), and taxation of foreign business income. I believe that 
our international tax system needs to be simplified and reformed to 
encourage businesses to remain in the United States. And today, I am 
introducing legislation that I hope will be fully considered as we 
continue our discussions on tax reform.
  Presently, the complexities of our international tax system actually 
encourage U.S. corporations to invest overseas. Current tax laws allow 
companies to defer paying U.S. taxes on income earned by their foreign 
subsidiaries, which provides a substantial tax break for companies that 
move investment and jobs overseas. Today, under U.S. tax law, a company 
that is trying to decide where to locate production or services--either 
in the United States or in a foreign low-tax haven--is actually given a 
substantial tax incentive not only to move jobs overseas, but to 
reinvest profits permanently, as opposed to bringing the profits back 
to re-invest in the United States.
  Recent press articles have revealed examples of companies taking 
advantage of this perverse incentive in our tax code. For instance, 
some companies have taken advantage of this initiative by opening 
subsidiaries to serve markets throughout Europe. Much of the profit 
earned by these subsidiaries will stay in the European countries and 
the companies therefore avoid paying U.S. taxes. Other companies have 
announced the expansion of jobs in India. This reflects a continued 
pattern among some U.S. multinational companies of shifting software 
development and call centers to India, and this trend is starting to 
expand include the shifting critical functions like design and research 
and development to India as well. Some companies are even outsourcing 
the preparation of U.S. tax returns.
  The Export Products Not Jobs Act would put an to end to these 
practices by eliminating tax breaks that encourage companies to move 
jobs overseas and by using the savings to create jobs in the United 
States by repealing the top corporate rate. This legislation ends tax 
breaks that encourage companies to move jobs by: 1. eliminating the 
ability of companies to defer, paying U.S. taxes on foreign income; 2. 
closing abusive corporate tax loopholes; and 3. repealing the top 
corporate rate. It removes the incentive to shift jobs overseas by 
eliminating deferral so that

[[Page 162]]

companies pay taxes on their international income as they earn it, 
rather than being allowed to defer taxes.
  Last Congress, the Ways and Means Subcommittee on Revenue held a 
hearing on international tax laws. Stephen Shay, a former Reagan 
Treasury official, testified that our tax rules ``provide incentives to 
locate business activity outside the United States.'' Furthermore, he 
suggested that taxation of U.S. shareholders under an expansion of 
Subpart F would be a ``substantial improvement'' over our current 
system. The Export Products Not Jobs Act does just that.
  Our current tax system punishes U.S. companies that choose to create 
and maintain jobs in the United States. These companies pay higher 
taxes and suffer a competitive disadvantage with a company that chooses 
to move jobs to a foreign tax haven. There is no reason why our tax 
code should provide an incentive that encourages investment and job 
creation overseas. Under my legislation, companies would be taxed the 
same whether they invest abroad or at home; they will be taxed on their 
foreign subsidiary profits just like they are taxed on their domestic 
profits.
  This legislation reflects the most sweeping simplification of 
international taxes in over 40 years. Our economy has changed in the 
last 40 years and our tax laws need to be updated to keep pace. Our 
current global economy was not even envisioned when existing law was 
written.
  My Export Products Not Jobs Act will in no way hinder our global 
competitiveness. Companies will be able to continue to defer income 
they earn when they locate production in a foreign country that serves 
that foreign country's markets. For example, if a U.S. company wants to 
open a hotel in Bermuda or a car factory in India to sell cars, foreign 
income can still be deferred. But if a company wants to open a call 
center in India to answer calls from outside India or relocate abroad 
to sell cars back to the United States or Canada, the company must pay 
taxes just like call centers and auto manufacturers located in the 
United States.
  Currently, American companies allocate their revenue not in search of 
the highest return, but in search of lower taxes. Eliminating deferral 
will improve the efficiency of the economy by making taxes neutral so 
that they do not encourage companies to overinvest abroad solely for 
tax reasons.
  The Congressional Research Service stated in a 2003 report that, 
``[a]ccording to traditional economic theory, deferral thus reduces 
economic welfare by encouraging firms to undertake overseas investments 
that are less productive--before taxes are considered--than alternative 
investments in the United States.'' Additionally, a 2000 Department of 
Treasury study on deferral stated, ``[a]mong all of the options 
considered, ending deferral would also be likely to have the most 
positive long-term effect on economic efficiency and welfare because it 
would do the most to eliminate tax considerations from decisions 
regarding the location of investment.''
  The ``Export Products Not Jobs Act'' would modify the rules for 
determining residency for publicly-traded companies by basing a 
corporation's residence on the location of its primary place of 
management and control. This will prevent companies from locating in 
tax havens, but basically maintaining their operations in the United 
States. This provision should not hinder foreign investment in the 
United States. Existing companies that are incorporated in foreign 
countries with a comprehensive tax treaty with the United States will 
not be affected by this provision.
  Massachusetts is an example of a state that benefits from foreign 
investment. Two foreign companies have recently expanded investment in 
Massachusetts. Our tax system should not discourage foreign investment, 
but it should not encourage companies to locate in tax havens.
  The revenue raised from the repeal of deferral and closing corporate 
loopholes would be used to repeal the top corporate tax rate of 35 
percent. The tax differential between U.S. corporate rates and foreign 
corporate rates has grown over the last two decades and the repeal of 
the top corporate rate is a start in narrowing this gap.
  The Export Products Not Jobs Act would promote equity among U.S. 
taxpayers by ensuring that corporations could not eliminate or 
substantially reduce taxation of foreign income by separately 
incorporating their foreign operations. This legislation will eliminate 
the tax incentives to encourage U.S. companies to invest abroad and 
reward those companies that have chosen to invest in the United States. 
I urge my colleagues to join me in this effort, and I ask unanimous 
consent that summary of the Export Products Not Jobs Act, as well as 
the text of the legislation, be printed in the Record.
  There being no objection, the text of the material was ordered to be 
printed in the Record, as follows:

                      Export Products Not Jobs Act


                                overview

       The Export Products Not Jobs Act makes sweeping changes to 
     the current international tax laws by: (1) ending tax breaks 
     that encourage companies to move jobs overseas by eliminating 
     the ability of companies to defer paying U.S. taxes on 
     foreign income; (2) simplifying current-law Subpart F rules; 
     (3) closing abusive corporate tax loopholes; and (4) 
     repealing the top corporate tax rate.
       Current tax laws allow companies to defer paying U.S. taxes 
     on income earned by their foreign subsidiaries, providing a 
     substantial tax break for companies to move investment and 
     jobs overseas. Except as provided under the Subpart F rules, 
     American companies generally do not have to pay taxes on 
     their active foreign income until they repatriate it to the 
     United States.
       The Export Products Not Jobs Act eliminates deferral so 
     companies will be taxed on their foreign subsidiary profits 
     in the same way they are taxed on their domestic profits. 
     This new system will apply to profits in future years. In 
     order to ensure that American companies can compete in 
     international markets, income companies earn when they locate 
     production in a foreign country that serves that foreign 
     country's home markets can still be deferred.
       The Subpart F rules which govern the taxation of foreign 
     subsidiaries controlled by American companies have become 
     increasingly complicated over time, adding to the overall 
     complexity of the tax code and making it easier for companies 
     to exploit loopholes to escape paying taxes. Under this bill, 
     the complexity created by the current Subpart F rules will be 
     eliminated and a simpler, more transparent system will be put 
     into place.
       In a tax system without deferral, U.S.-based multinational 
     corporations might be tempted to locate their top-tiered 
     entity overseas to avoid taxation on the income of a foreign 
     subsidiary. This legislation would strengthen the corporate 
     residency test by preventing companies from incorporating in 
     a foreign jurisdiction to avoid U.S. taxation on a worldwide 
     basis. The current law test that is based solely on where the 
     company is incorporated is artificial, and allows foreign 
     corporations that are economically similar to American 
     companies to avoid being taxed like American companies. 
     Determining residency based on the location of a company's 
     primary place of management and control will provide a more 
     meaningful standard.
       In order to prevent abusive tax transactions, the 
     legislation includes a provision that would codify the 
     judicially-developed economic substance test, which disallows 
     transactions where the profit potential is insubstantial 
     compared to the tax benefits. This proposal is identical to 
     the economic substance provisions that have been passed 
     repeatedly by the Senate.
       The revenue saved from ending deferral, strengthening the 
     corporate residency test, and shutting down abusive tax 
     shelters will be used to lower the maximum corporate tax rate 
     from 35 percent to 34 percent. The tax differential between 
     U.S. corporations and foreign corporate rates has grown over 
     the last two decades. This proposal, in combination with the 
     deduction for domestic manufacturing activity when fully 
     phased-in in 2009, will result in a corporate tax rate of 31 
     percent for domestic manufacturing activity. The ``Export 
     Products Not Jobs Act'' moves in the right direction towards 
     narrowing this gap.


                         SUMMARY OF PROVISIONS

     I. Reform and Simplification of Subpart F Income
     Subpart F Income Defined
       Present law
       Generally within the U.S., 10-percent shareholders of a 
     controlled foreign corporation (CFC) are taxed on the pro 
     rata shares of certain income referred to as Subpart F 
     income. A CFC generally is defined as any foreign corporation 
     in which U.S. persons (directly, indirectly, or 
     constructively) own more than 50 percent of the corporation's 
     stock (measured by vote or value), taking into account only 
     those U.S. persons that own at least 10 percent of the stock 
     (measured by vote only). Typically, Subpart F income is 
     passive income or income that is

[[Page 163]]

     readily movable from one taxing jurisdiction to another. 
     Subpart F income is defined in code section 952 as foreign 
     base company income, insurance income, and certain income 
     relating to international boycotts and other violations of 
     public policy.
       Export Products Not Jobs Act
       This legislation strikes code section 952 and replaces it 
     with a new definition of Subpart F income. Generally, Subpart 
     F income is defined as all gross income of the controlled 
     foreign corporation with exceptions for certain types of 
     income. Subpart F income of a CFC for any taxable year is 
     limited to the earnings and profits of the CFC for that 
     taxable year. Subpart F will continue to include income 
     related to international boycotts.
     Exceptions to Subpart F Income
       Present law
       Subpart F income is defined in the code rather narrowly and 
     the definition lists the income that it includes. Subpart F 
     income is currently taxed, and other income of a U.S. 
     person's CFC that conducts foreign operations generally is 
     subject to U.S. tax only when it is repatriated to the United 
     States.
       Temporary Active Financing Exception
       Under current law, there are temporary exceptions from the 
     Subpart F provisions for certain active financing income, 
     which is income derived in the active conduct of a banking, 
     financing, or similar business, or in the conduct of an 
     insurance business. This temporary exception expires at the 
     end of 2008. To be eligible for this exception, substantially 
     all transactions must be conducted directly by the CFC or a 
     qualified business unit of a CFC in its home country.
       Export Products Not Jobs Act
       Under the legislation, Subpart F income is generally all 
     income of a CFC except for active home country income of the 
     CFC. Active home country income constitutes qualified 
     property income or qualified service income and is derived 
     from the active and regular conduct of one or more trades or 
     businesses within the home country. The home country is 
     defined as the country in which the CFC is created or 
     organized.
       Qualified property income is defined as income derived in 
     connection with: (1) the manufacture, production, growth, or 
     extraction of any personal property within the home country 
     of the CFC; or (2) the resale in the home country of the CFC 
     of personal property manufactured, produced, grown, or 
     extracted within the home country of such corporation for the 
     resale of such property by the CFC in the home country. The 
     property has to be sold for use or consumption within the 
     home country in either case.
       Qualified services income is defined as income derived in 
     connection with the providing of services in transactions 
     with customers who, at the time the services are provided, 
     are located in the home country. Services are required: (1) 
     to be used in the home country; or (2) to be used in the 
     active conduct of trade or business by the recipient where 
     substantially all of the activities in connection with the 
     trade or business are conducted by the recipient in the home 
     country.
       Under the ``Export Products Not Jobs Act,'' the current-law 
     temporary active financing exception is repealed. The 
     legislation includes a de minimis exception providing that if 
     the Subpart F income of a CFC is less than the lesser of five 
     percent of gross income, or $1 million, the Subpart F income 
     of the CFC is zero for that taxable year.
       For purposes of calculating the Subpart F income of a CFC, 
     properly allocated deductions are allowed.
       A CFC can elect to be treated as a domestic corporation. 
     The election will apply to the taxable year for which it is 
     made and all subsequent taxable years unless revoked with the 
     consent of the Secretary. If a CFC chooses to make an 
     election to be treated as a domestic corporation, pre-2008 
     earnings and profits are not included in gross income.
     Captive Insurance Income
       Present Law
       Under current law, special rules apply to captive insurance 
     companies that have related person insurance income which is 
     defined as any insurance income attributable to a policy of 
     insurance or reinsurance with respect to which the person 
     (directly or indirectly) insured is a U.S. shareholder in the 
     foreign corporation or a related person to such a 
     shareholder. These companies are formed to insure the risks 
     of the owners. Under current law, a lower ownership threshold 
     applies to determine whether a captive insurance company is 
     treated as a CFC subject to the current-law income inclusion 
     rules of Subpart F. Under this lower ownership threshold, a 
     captive insurance company is treated as a CFC if 25 percent 
     or more of the stock is owned by U.S. persons.
       The special rules for captive insurance companies were 
     added in 1986 because Congress was concerned that the 
     ownership of these companies was often dispersed widely and 
     that these companies were not covered by the otherwise 
     applicable ownership threshold for a CFC.
       Export Products Not Jobs Act
       The bill retains, in simplified form, the present-law 
     concept of related person insurance income, and also retains 
     the lower ownership threshold for captive insurance companies 
     that are treated as CFCs. Captive insurance income that meets 
     the requirements of the active home exception, like other 
     active home country services income, however, can be 
     deferred.
     Effective Date
       The above described provisions apply to taxable years 
     beginning after December 31, 2007.
     II. Corporate Residency Definition
       Present Law
       The place of incorporation or organization determines 
     whether a corporation is treated as foreign or domestic for 
     purposes of U.S. tax law. A corporation is treated as 
     domestic if it is incorporated or organized under the laws of 
     the United States or of any State.
       Export Products Not Jobs Act
       The bill amends the rules for determining corporate 
     residency for publicly-traded companies incorporated or 
     organized in a foreign country, by basing such corporation's 
     residence on the location of its primary place of management 
     and control. A company incorporated or organized in the 
     United States is still considered a domestic corporation in 
     any event. Primary place of management and control is defined 
     as the place where the executive officers and senior 
     management of the corporation exercise day-to-day 
     responsibility for the strategic, financial, and operational 
     decision-making for the company (including direct and 
     indirect subsidiaries).
     Effective Date
       The proposal would be effective for taxable years beginning 
     on or after two years after the date of enactment. A 
     corporation that is in existence on the date of enactment and 
     is incorporated in a country in which the United States has a 
     comprehensive tax treaty is not affected by this provision.
     III. Shutdown of Abusive Tax Shelters

     Clarification of Economic Substance Doctrine
       Present Law
       Under current law, there are specific rules regarding the 
     computation of taxable income. In addition to these statutory 
     provisions, courts have developed several doctrines that can 
     be applied to deny the tax benefits of motivated 
     transactions, even though the transaction meets the 
     requirements of a specific tax provision. Generally, courts 
     have denied tax benefits if the transaction lacks economic 
     substance independent of tax considerations.
       Export Products Not Jobs Act
       Clarifies that a transaction has economic substance only if 
     the taxpayer establishes that: (1) the transaction changes in 
     a meaningful way (aside from Federal income tax consequences) 
     the taxpayer's economic position; and (2) the taxpayer has a 
     substantial non-tax purpose for entering into such a 
     transaction and the transaction is a reasonable means of 
     accomplishing such purpose. This proposal applies to 
     transactions entered into after the date of enactment.
     Penalty for Understatements Attributable to Transactions 
         Lacking Economic Substance
       Present Law
       Under current law, there are various penalties for 
     understatements. There is a 20 percent accuracy-related 
     penalty imposed on any understatement attributable to any 
     adequately disclosed listed transaction or certain reportable 
     transactions (``reportable transaction understatement''). The 
     penalty is increased to 30 percent if such a transaction is 
     not adequately disclosed in accordance with regulations.
       Export Products Not Jobs Act
       The bill imposes a 40 percent penalty on any understatement 
     attributable to any transaction that lacks economic substance 
     (``noneconomic substance underpayment''). The rate is reduced 
     to 20 percent if the taxpayer discloses the transaction in 
     accordance with regulations. This proposal applies to 
     transactions entered into after the date of enactment.
     Denial of Deduction for Interest on Underpayments 
         Attributable to Noneconomic Substance Transactions
       Present Law
       Under current law, no deduction for interest is allowed for 
     interest paid or accrued on any underpayment of tax which is 
     attributable to the portion of any reportable transaction 
     understatement for which the facts were not adequately 
     disclosed.
       Export Products Not Jobs Act of 2006
       The bill extends the disallowance of interest deductions to 
     interest paid or accrued on any underpayment of tax 
     attributable to any noneconomic substance underpayment. The 
     proposal applies to transactions after the date of enactment 
     in taxable years ending after such date.
     IV. Repeal of Top Corporate Marginal Income Tax Rate
       Present Law
       The maximum corporate rate is 35 percent and this rate 
     applies to taxable income in excess of $10 million. The 
     maximum rate on corporate taxable gains is 35 percent. A 
     corporation with taxable income in excess of $15 million is 
     required to increase its tax liability by the lesser of three 
     percent of the excess, or $100,000.

[[Page 164]]


       Export Products Not Jobs Act
       The bill repeals the top corporate rate of 35 percent. The 
     highest marginal tax rate will be 34 percent and the maximum 
     rate of tax on corporate net capital gains will also be 34 
     percent. The 34 percent rate applies to income in excess of 
     $75,000. The proposal applies to taxable years beginning 
     after December 31, 2007.
                                  ____


                                 S. 96

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Export 
     Products Not Jobs Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

             TITLE I--FOREIGN TAX REFORM AND SIMPLIFICATION

     SEC. 101. REFORM AND SIMPLIFICATION OF SUBPART F.

       (a) In General.--Subpart F of part III of subchapter N of 
     chapter 1 (relating to controlled foreign corporations) is 
     amended by striking sections 952, 953, and 954 and inserting 
     the following:

     ``SEC. 952. SUBPART F INCOME DEFINED.

       ``(a) In General.--For purposes of this subpart, except as 
     provided in this section, the term `subpart F income' means 
     the gross income of the controlled foreign corporation.
       ``(b) Exceptions for Certain Types of Income.--Subpart F 
     income shall not include--
       ``(1) the active home country income (as defined in section 
     953) of the controlled foreign corporation for the taxable 
     year, or
       ``(2) any item of income for the taxable year from sources 
     within the United States which is effectively connected with 
     the conduct by the controlled foreign corporation of a trade 
     or business within the United States unless such item is 
     exempt from taxation (or is subject to a reduced rate of tax) 
     pursuant to a treaty obligation of the United States.
     For purposes of paragraph (2), income described in paragraph 
     (2) or (3) of section 921(d) shall be treated as derived from 
     sources within the United States and any exemption (or 
     reduction) with respect to the tax imposed by section 884 
     shall not be taken into account.
       ``(c) Limitation Based on Earnings and Profits.--
       ``(1) In general.--For purposes of subsection (a), the 
     subpart F income of any controlled foreign corporation for 
     any taxable year shall not exceed the earnings and profits of 
     such corporation for such taxable year.
       ``(2) Recharacterization in subsequent taxable years.--If 
     the subpart F income of any controlled foreign corporation 
     for any taxable year was reduced by reason of paragraph (1), 
     any excess of the earnings and profits of such corporation 
     for any subsequent taxable year over the subpart F income of 
     such foreign corporation for such taxable year shall be 
     recharacterized as subpart F income under rules similar to 
     the rules applicable under section 904(f)(5).
       ``(3) Special rule for determining earnings and profits.--
     For purposes of this subsection, earnings and profits of any 
     controlled foreign corporation shall be determined without 
     regard to paragraphs (4), (5), and (6) of section 312(n). 
     Under regulations, the preceding sentence shall not apply to 
     the extent it would increase earnings and profits by an 
     amount which was previously distributed by the controlled 
     foreign corporation.
       ``(d) De Minimis Exception.--If the subpart F income of a 
     controlled foreign corporation for any taxable year 
     (determined without regard to this subsection and section 
     954(a)) is less than the lesser of--
       ``(1) 5 percent of gross income, or
       ``(2) $1,000,000,
     the subpart F income of such corporation for such taxable 
     year shall be treated as being equal to zero.
       ``(e) Special Rules Relating to Boycotts, Bribes, and 
     Certain Foreign Countries.--
       ``(1) In general.--Subpart F income of a controlled foreign 
     corporation for any taxable year (determined without regard 
     to this subsection) shall be increased by the sum of--
       ``(A) the product of--
       ``(i) the gross income of the corporation reduced by its 
     subpart F income (as so determined), and
       ``(ii) the international boycott factor (as determined 
     under section 999),
       ``(B) the sum of the amounts of any illegal bribes, 
     kickbacks, or other payments (within the meaning of section 
     162(c)) paid by or on behalf of the corporation during the 
     taxable year of the corporation directly or indirectly to an 
     official, employee, or agent in fact of a government, and
       ``(C) the gross income of such corporation which is derived 
     from any foreign country during any period during which 
     section 901(j) applies to such foreign country and which is 
     not otherwise treated as subpart F income (as so determined).
       ``(2) Special rule for illegal payments.--The payments 
     referred to in paragraph (1)(B) are payments which would be 
     unlawful under the Foreign Corrupt Practices Act of 1977 if 
     the payor were a United States person.
       ``(3) Income derived from foreign country.--The Secretary 
     shall prescribe such regulations as may be necessary or 
     appropriate to carry out the purposes of paragraph (1)(C), 
     including regulations which treat income paid through 1 or 
     more entities as derived from a foreign country to which 
     section 901(j) applies if such income was, without regard to 
     such entities, derived from such country.

     ``SEC. 953. ACTIVE HOME COUNTRY INCOME.

       ``(a) In General.--For purposes of section 952(b), the term 
     `active home country income' means, with respect to any 
     controlled foreign corporation, income derived from the 
     active and regular conduct of 1 or more trades or businesses 
     within the home country of such corporation which 
     constitutes--
       ``(1) qualified property income, or
       ``(2) qualified services income.
       ``(b) Qualified Property Income.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified property income' 
     means income derived in connection with--
       ``(A) the manufacture, production, growth, or extraction 
     (in whole or in substantial part)of any personal property 
     within the home country of the controlled foreign 
     corporation, or
       ``(B) the resale by the controlled foreign corporation 
     within its home country of personal property manufactured, 
     produced, grown, or extracted (in whole or in substantial 
     part) within that home country.
       ``(2) Property must be used or consumed in home country.--
     Paragraph (1) shall only apply to income if the personal 
     property is sold for use or consumption within the home 
     country.
       ``(c) Qualified Services Income.--For purposes of this 
     section--
       ``(1) In general.--The term `qualified services income' 
     means income (other than qualified property income) derived 
     in connection with the providing of services in transactions 
     with customers which, at the time the services are provided, 
     are located in the home country of such corporation.
       ``(2) Services must be used in home country.--Paragraph (1) 
     shall only apply to income if the services--
       ``(A) are used or consumed in the home country of the 
     controlled foreign corporation, or
       ``(B) are used in the active conduct of a trade or business 
     by the recipient and substantially all of the activities in 
     connection with the trade or business are conducted by the 
     recipient in such home country.
       ``(3) Special rule for insurance income.--If income of a 
     controlled foreign corporation--
       ``(A) is attributable to the issuing (or reinsuring) of an 
     insurance or annuity contract, and
       ``(B) would (subject to the modifications under section 
     954(c)(2)(B)) be taxed under subchapter L of this chapter if 
     such income were the income of a domestic corporation,
     such income shall be treated as qualified services income 
     only if the contract covers only risks in connection with 
     property in, liability arising out of activity in, or lives 
     or health of residents of, the home country of such 
     corporation.
       ``(4) Anti-abuse rule.--For purposes of this subsection, 
     there shall be disregarded any item of income of a controlled 
     foreign corporation derived in connection with any trade or 
     business if, in the conduct of the trade or business, the 
     corporation is not engaged in regular and continuous 
     transactions with customers which are not related persons.
       ``(d) Home Country.--For purposes of this section, the term 
     `home country' means, with respect to a controlled foreign 
     corporation, the country in which such corporation is created 
     or organized.

     ``SEC. 954. OTHER RULES AND DEFINITIONS RELATING TO SUBPART F 
                   INCOME.

       ``(a) Deductions To Be Taken Into Account.--For purposes of 
     determining the subpart F income of a controlled foreign 
     corporation for any taxable year, gross income, and any 
     category of income described in subsection (b) or (c) of 
     section 953, shall be reduced by deductions (including taxes) 
     properly allocable to such income or category. The Secretary 
     shall prescribe regulations for the application of this 
     subsection.
       ``(b) Election by Controlled Foreign Corporation To Be 
     Treated as Domestic Corporation.--
       ``(1) In general.--If--
       ``(A) a foreign corporation is a controlled foreign 
     corporation which makes an election to have this subsection 
     apply and waives all benefits to such corporation granted by 
     the United States under any treaty, and
       ``(B) such foreign corporation meets such requirements as 
     the Secretary shall prescribe to ensure that the taxes 
     imposed by this chapter on such foreign corporation are paid,
     such corporation shall be treated as a domestic corporation 
     for purposes of this title.
       ``(2) Period during which election is in effect.--

[[Page 165]]

       ``(A) In general.--Except as provided in subparagraph (B), 
     an election under paragraph (1) shall apply to the taxable 
     year for which made and all subsequent taxable years unless 
     revoked with the consent of the Secretary.
       ``(B) Termination.--If a corporation which made an election 
     under paragraph (1) for any taxable year fails to meet the 
     requirements of subparagraph (B) of paragraph (1) for any 
     subsequent taxable year, such election shall not apply to 
     such subsequent taxable year and all succeeding taxable 
     years.
       ``(3) Treatment of losses.--If any corporation treated as a 
     domestic corporation under this subsection is treated as a 
     member of an affiliated group for purposes of chapter 6 
     (relating to consolidated returns), any loss of such 
     corporation shall be treated as a dual consolidated loss for 
     purposes of section 1503(d) without regard to paragraph 
     (2)(B) thereof.
       ``(4) Effect of election.--
       ``(A) In general.--For purposes of section 367, any foreign 
     corporation making an election under paragraph (1) shall be 
     treated as transferring (as of the 1st day of the 1st taxable 
     year to which such election applies) all of its assets to a 
     domestic corporation in connection with an exchange to which 
     section 354 applies.
       ``(B) Exception for pre-2008 earnings and profit.--
       ``(i) In general.--Earnings and profits of the foreign 
     corporation accumulated in taxable years beginning before 
     January 1, 2008, shall not be included in the gross income of 
     the persons holding stock in such corporation by reason of 
     subparagraph (A).
       ``(ii) Treatment of distributions.--For purposes of this 
     title, any distribution made by a corporation to which an 
     election under paragraph (1) applies out of earnings and 
     profits accumulated in taxable years beginning before January 
     1, 2008, shall be treated as a distribution made by a foreign 
     corporation.
       ``(iii) Certain rules to continue to apply to pre-2008 
     earnings.--The provisions specified in clause (iv) shall be 
     applied without regard to paragraph (1), except that, in the 
     case of a corporation to which an election under paragraph 
     (1) applies, only earnings and profits accumulated in taxable 
     years beginning before January 1, 2008, shall be taken into 
     account.
       ``(iv) Specified provisions.--The provisions specified in 
     this clause are:

       ``(I) Section 1248 (relating to gain from certain sales or 
     exchanges of stock in certain foreign corporations).
       ``(II) Subpart F of part III of subchapter N to the extent 
     such subpart relates to earnings invested in United States 
     property or amounts referred to in clause (ii) or (iii) of 
     section 951(a)(1)(A).

       ``(5) Effect of termination.--For purposes of section 367, 
     if--
       ``(A) an election is made by a corporation under paragraph 
     (1) for any taxable year, and
       ``(B) such election ceases to apply for any subsequent 
     taxable year,
     such corporation shall be treated as a domestic corporation 
     transferring (as of the 1st day of such subsequent taxable 
     year) all of its property to a foreign corporation in 
     connection with an exchange to which section 354 applies.
       ``(c) Special Rule for Certain Captive Insurance 
     Companies.--
       ``(1) In general.--Solely for purposes of applying this 
     subpart to related person insurance income--
       ``(A) the term `United States shareholder' means, with 
     respect to any foreign corporation, a United States person 
     (as defined in section 957(c)) who owns (within the meaning 
     of section 958(a)) any stock of the foreign corporation,
       ``(B) the term `controlled foreign corporation' has the 
     meaning given to such term by section 957(a) determined by 
     substituting `25 percent or more' for `more than 50 percent', 
     and
       ``(C) the pro rata share referred to in section 
     951(a)(1)(A)(i) shall be determined under paragraph (5) of 
     this subsection.
       ``(2) Related person insurance income.--For purposes of 
     this subsection--
       ``(A) In general.--The term `related person insurance 
     income' means any income which--
       ``(i) is attributable to a policy of insurance or 
     reinsurance with respect to which the person (directly or 
     indirectly) insured is a United States shareholder in the 
     foreign corporation or a related person to such a 
     shareholder, and
       ``(ii) would (subject to the modifications provided by 
     subparagraph (B)) be taxed under subchapter L of this chapter 
     if such income were the income of a domestic insurance 
     company.
       ``(B) Special rules.--For purposes of subparagraph (A)--
       ``(i) The following provisions of subchapter L shall not 
     apply:

       ``(I) The small life insurance company deduction.
       ``(II) Section 805(a)(5) (relating to operations loss 
     deduction).
       ``(III) Section 832(c)(5) (relating to certain capital 
     losses).

       ``(ii) The items referred to in--

       ``(I) section 803(a)(1) (relating to gross amount of 
     premiums and other considerations),
       ``(II) section 803(a)(2) (relating to net decrease in 
     reserves),
       ``(III) section 805(a)(2) (relating to net increase in 
     reserves), and
       ``(IV) section 832(b)(4) (relating to premiums earned on 
     insurance contracts),

     shall be taken into account only to the extent they are in 
     respect of any reinsurance or the issuing of any insurance or 
     annuity contract described in subparagraph (A).
       ``(iii) Reserves for any insurance or annuity contract 
     shall be determined in the same manner as if the controlled 
     foreign corporation were subject to tax under subchapter L, 
     except that in applying such subchapter--

       ``(I) the interest rate determined for the functional 
     currency of the corporation and which, except as provided by 
     the Secretary, is calculated in the same manner as the 
     Federal mid-term rate under section 1274(d), shall be 
     substituted for the applicable Federal interest rate,
       ``(II) the highest assumed interest rate permitted to be 
     used in determining foreign statement reserves shall be 
     substituted for the prevailing State assumed interest rate, 
     and
       ``(III) tables for mortality and morbidity which reasonably 
     reflect the current mortality and morbidity risks in the 
     corporation's home country shall be substituted for the 
     mortality and morbidity tables otherwise used for such 
     subchapter.

       ``(iv) All items of income, expenses, losses, and 
     deductions shall be properly allocated or apportioned under 
     regulations prescribed by the Secretary.
       ``(3) Exception for corporations not held by insureds.--
     Paragraph (1) shall not apply to any foreign corporation if 
     at all times during the taxable year of such foreign 
     corporation--
       ``(A) less than 20 percent of the total combined voting 
     power of all classes of stock of such corporation entitled to 
     vote, and
       ``(B) less than 20 percent of the total value of such 
     corporation,
     is owned (directly or indirectly under the principles of 
     section 883(c)(4)) by persons who are (directly or 
     indirectly) insured under any policy of insurance or 
     reinsurance issued by such corporation or who are related 
     persons to any such person.
       ``(4) Treatment of mutual insurance companies.--In the case 
     of a mutual insurance company--
       ``(A) this subsection shall apply,
       ``(B) policyholders of such company shall be treated as 
     shareholders, and
       ``(C) appropriate adjustments in the application of this 
     subpart shall be made under regulations prescribed by the 
     Secretary.
       ``(5) Determination of pro rata share.--
       ``(A) In general.--The pro rata share determined under this 
     paragraph for any United States shareholder is the lesser 
     of--
       ``(i) the amount which would be determined under paragraph 
     (2) of section 951(a) if--

       ``(I) only related person insurance income were taken into 
     account,
       ``(II) stock owned (within the meaning of section 958(a)) 
     by United States shareholders on the last day of the taxable 
     year were the only stock in the foreign corporation, and
       ``(III) only distributions received by United States 
     shareholders were taken into account under subparagraph (B) 
     of such paragraph (2), or

       ``(ii) the amount which would be determined under paragraph 
     (2) of section 951(a) if the entire earnings and profits of 
     the foreign corporation for the taxable year were subpart F 
     income.
       ``(B) Coordination with other provisions.--The Secretary 
     shall prescribe regulations providing for such modifications 
     to the provisions of this subpart as may be necessary or 
     appropriate by reason of subparagraph (A).
       ``(6) Related person.--For purposes of this subsection--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `related person' has the meaning given such term by 
     subsection (d)(3).
       ``(B) Treatment of certain liability insurance policies.--
     In the case of any policy of insurance covering liability 
     arising from services performed as a director, officer, or 
     employee of a corporation or as a partner or employee of a 
     partnership, the person performing such services and the 
     entity for which such services are performed shall be treated 
     as related persons.
       ``(7) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection, including--
       ``(A) regulations preventing the avoidance of this 
     subsection through cross insurance arrangements or otherwise, 
     and
       ``(B) regulations which may provide that a person will not 
     be treated as a United States shareholder under paragraph (1) 
     with respect to any foreign corporation if neither such 
     person (nor any related person to such person) is (directly 
     or indirectly) insured under any policy of insurance or 
     reinsurance issued by such foreign corporation.
       ``(d) Other Definitions and Rules.--For purposes of this 
     section--
       ``(1) Treatment of branches.--If--
       ``(A) a controlled foreign corporation carries on 
     activities through a branch or similar establishment with a 
     home country other

[[Page 166]]

     than the home country of such corporation, and
       ``(B) the carrying on of such activities in such manner has 
     substantially the same effect as if such branch or similar 
     establishment were a wholly owned subsidiary of such 
     corporation,
     this subpart shall, under regulations prescribed by the 
     Secretary, be applied as if such branch or other 
     establishment were a wholly owned subsidiary of such 
     corporation.
       ``(2) Home country.--For purposes of paragraph (1)--
       ``(A) In general.--The term `home country' has the meaning 
     given such term by section 953(d).
       ``(B) Branch.--In the case of a branch or similar 
     establishment, the term `home country' means the foreign 
     country in which--
       ``(i) the principal place of business of the branch or 
     similar establishment is located, and
       ``(ii) separate books and accounts are maintained.
       ``(3) Related person defined.--For purposes of this 
     section, a person is a related person with respect to a 
     controlled foreign corporation, if--
       ``(A) such person is an individual, corporation, 
     partnership, trust, or estate which controls, or is 
     controlled by, the controlled foreign corporation, or
       ``(B) such person is a corporation, partnership, trust, or 
     estate which is controlled by the same person or persons 
     which control the controlled foreign corporation.
     For purposes of the preceding sentence, control means, with 
     respect to a corporation, the ownership, directly or 
     indirectly, of stock possessing more than 50 percent of the 
     total voting power of all classes of stock entitled to vote 
     or of the total value of stock of such corporation. In the 
     case of a partnership, trust, or estate, control means the 
     ownership, directly or indirectly, of more than 50 percent 
     (by value) of the beneficial interests in such partnership, 
     trust, or estate. For purposes of this paragraph, rules 
     similar to the rules of section 958 shall apply.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart F of part III of subchapter N of chapter 1 is amended 
     by striking the items relating to sections 953 and 954 and 
     inserting:

``Sec. 953. Active home country income.
``Sec. 954. Other rules and definitions relating to subpart F 
              income.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of controlled foreign 
     corporations beginning after December 31, 2007, and taxable 
     years of United States shareholders with or within which such 
     taxable years of such corporations end.

     SEC. 102. TREATMENT OF FOREIGN CORPORATIONS MANAGED AND 
                   CONTROLLED IN THE UNITED STATES AS DOMESTIC 
                   CORPORATIONS.

       (a) In General.--Section 7701(a)(4) of the Internal Revenue 
     Code of 1986 (defining domestic) is amended to read as 
     follows:
       ``(4) Domestic.--
       ``(A) In general.--The term `domestic' means, when applied 
     to a corporation or partnership, a corporation or partnership 
     which is created or organized in the United States or under 
     the law of the United States or of any State unless, in the 
     case of a partnership, the Secretary provides otherwise by 
     regulations.
       ``(B) Income tax exception for publicly-traded corporations 
     managed and controlled in the united states.--Notwithstanding 
     subparagraph (A), in the case of a corporation the stock of 
     which is regularly traded on an established securities 
     market, if--
       ``(i) the corporation would not otherwise be treated as a 
     domestic corporation for purposes of this title, but
       ``(ii) the management and control of the corporation occurs 
     primarily within the United States,
     then, solely for purposes of chapter 1 (and any other 
     provision of this title relating to chapter 1), the 
     corporation shall be treated as a domestic corporation.
       ``(C) Management and control.--For purposes of this 
     paragraph, the management and control of a corporation shall 
     be treated as primarily occurring within the United States if 
     substantially all of the executive officers and senior 
     management of the corporation who exercise day-to-day 
     responsibility for making decisions involving strategic, 
     financial, and operational policies of the corporation are 
     primarily located within the United States. The Secretary may 
     by regulations include other individuals not described in the 
     preceding sentence in the determination of whether the 
     management and control of the corporation occurs primarily 
     within the United States if such other individuals exercise 
     the day-to day responsibilities described in the preceding 
     sentence.''.
       (b) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning on or after the date which 
     is 2 years after the date of the enactment of this Act.
       (2) Transition rule for corporations organized in treaty 
     countries.--If--
       (A) a corporation is in existence on the date of the 
     enactment of this Act, and
       (B) the corporation was created or organized under the laws 
     of a foreign country with which the United States has, on 
     such date, a comprehensive income tax treaty which the 
     Secretary of the Treasury determines is satisfactory for 
     purposes of this paragraph and which includes an exchange of 
     information program,
     section 7701(a)(4)(B) of the Internal Revenue Code of 1986 
     (as added by the amendments made by this section) shall not 
     apply to the corporation with respect to taxable years ending 
     in any continuous period beginning on such date during which 
     the corporation is eligible for the benefits of such treaty 
     (or any successor treaty with such foreign country meeting 
     the requirements of this paragraph).

                 TITLE II--ECONOMIC SUBSTANCE DOCTRINE

     SEC. 201. CLARIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

       (a) In General.--Section 7701 is amended by redesignating 
     subsection (o) as subsection (p) and by inserting after 
     subsection (n) the following new subsection:
       ``(o) Clarification of Economic Substance Doctrine; etc.--
       ``(1) General rules.--
       ``(A) In general.--In any case in which a court determines 
     that the economic substance doctrine is relevant for purposes 
     of this title to a transaction (or series of transactions), 
     such transaction (or series of transactions) shall have 
     economic substance only if the requirements of this paragraph 
     are met.
       ``(B) Definition of economic substance.--For purposes of 
     subparagraph (A)--
       ``(i) In general.--A transaction has economic substance 
     only if--

       ``(I) the transaction changes in a meaningful way (apart 
     from Federal tax effects) the taxpayer's economic position, 
     and
       ``(II) the taxpayer has a substantial nontax purpose for 
     entering into such transaction and the transaction is a 
     reasonable means of accomplishing such purpose.

     In applying subclause (II), a purpose of achieving a 
     financial accounting benefit shall not be taken into account 
     in determining whether a transaction has a substantial nontax 
     purpose if the origin of such financial accounting benefit is 
     a reduction of income tax.
       ``(ii) Special rule where taxpayer relies on profit 
     potential.--A transaction shall not be treated as having 
     economic substance by reason of having a potential for profit 
     unless--

       ``(I) the present value of the reasonably expected pre-tax 
     profit from the transaction is substantial in relation to the 
     present value of the expected net tax benefits that would be 
     allowed if the transaction were respected, and
       ``(II) the reasonably expected pre-tax profit from the 
     transaction exceeds a risk-free rate of return.

       ``(C) Treatment of fees and foreign taxes.--Fees and other 
     transaction expenses and foreign taxes shall be taken into 
     account as expenses in determining pre-tax profit under 
     subparagraph (B)(ii).
       ``(2) Special rules for transactions with tax-indifferent 
     parties.--
       ``(A) Special rules for financing transactions.--The form 
     of a transaction which is in substance the borrowing of money 
     or the acquisition of financial capital directly or 
     indirectly from a tax-indifferent party shall not be 
     respected if the present value of the deductions to be 
     claimed with respect to the transaction is substantially in 
     excess of the present value of the anticipated economic 
     returns of the person lending the money or providing the 
     financial capital. A public offering shall be treated as a 
     borrowing, or an acquisition of financial capital, from a 
     tax-indifferent party if it is reasonably expected that at 
     least 50 percent of the offering will be placed with tax-
     indifferent parties.
       ``(B) Artificial income shifting and basis adjustments.--
     The form of a transaction with a tax-indifferent party shall 
     not be respected if--
       ``(i) it results in an allocation of income or gain to the 
     tax-indifferent party in excess of such party's economic 
     income or gain, or
       ``(ii) it results in a basis adjustment or shifting of 
     basis on account of overstating the income or gain of the 
     tax-indifferent party.
       ``(3) Definitions and special rules.--For purposes of this 
     subsection--
       ``(A) Economic substance doctrine.--The term `economic 
     substance doctrine' means the common law doctrine under which 
     tax benefits under subtitle A with respect to a transaction 
     are not allowable if the transaction does not have economic 
     substance or lacks a business purpose.
       ``(B) Tax-indifferent party.--The term `tax-indifferent 
     party' means any person or entity not subject to tax imposed 
     by subtitle A. A person shall be treated as a tax-indifferent 
     party with respect to a transaction if the items taken into 
     account with respect to the transaction have no substantial 
     impact on such person's liability under subtitle A.
       ``(C) Exception for personal transactions of individuals.--
     In the case of an individual, this subsection shall apply 
     only to transactions entered into in connection with a trade 
     or business or an activity engaged in for the production of 
     income.
       ``(D) Treatment of lessors.--In applying paragraph 
     (1)(B)(ii) to the lessor of tangible property subject to a 
     lease--

[[Page 167]]

       ``(i) the expected net tax benefits with respect to the 
     leased property shall not include the benefits of--

       ``(I) depreciation,
       ``(II) any tax credit, or
       ``(III) any other deduction as provided in guidance by the 
     Secretary, and

       ``(ii) subclause (II) of paragraph (1)(B)(ii) shall be 
     disregarded in determining whether any of such benefits are 
     allowable.
       ``(4) Other common law doctrines not affected.--Except as 
     specifically provided in this subsection, the provisions of 
     this subsection shall not be construed as altering or 
     supplanting any other rule of law, and the requirements of 
     this subsection shall be construed as being in addition to 
     any such other rule of law.
       ``(5) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this subsection. Such regulations may include 
     exemptions from the application of this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 202. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       (a) In General.--Subchapter A of chapter 68 is amended by 
     inserting after section 6662A the following new section:

     ``SEC. 6662B. PENALTY FOR UNDERSTATEMENTS ATTRIBUTABLE TO 
                   TRANSACTIONS LACKING ECONOMIC SUBSTANCE, ETC.

       ``(a) Imposition of Penalty.--If a taxpayer has an 
     noneconomic substance transaction understatement for any 
     taxable year, there shall be added to the tax an amount equal 
     to 40 percent of the amount of such understatement.
       ``(b) Reduction of Penalty for Disclosed Transactions.--
     Subsection (a) shall be applied by substituting `20 percent' 
     for `40 percent' with respect to the portion of any 
     noneconomic substance transaction understatement with respect 
     to which the relevant facts affecting the tax treatment of 
     the item are adequately disclosed in the return or a 
     statement attached to the return.
       ``(c) Noneconomic Substance Transaction Understatement.--
     For purposes of this section--
       ``(1) In general.--The term `noneconomic substance 
     transaction understatement' means any amount which would be 
     an understatement under section 6662A(b)(1) if section 6662A 
     were applied by taking into account items attributable to 
     noneconomic substance transactions rather than items to which 
     section 6662A would apply without regard to this paragraph.
       ``(2) Noneconomic substance transaction.--The term 
     `noneconomic substance transaction' means any transaction 
     if--
       ``(A) there is a lack of economic substance (within the 
     meaning of section 7701(o)(1)) for the transaction giving 
     rise to the claimed benefit or the transaction was not 
     respected under section 7701(o)(2), or
       ``(B) the transaction fails to meet the requirements of any 
     similar rule of law.
       ``(d) Rules Applicable to Compromise of Penalty.--
       ``(1) In general.--If the 1st letter of proposed deficiency 
     which allows the taxpayer an opportunity for administrative 
     review in the Internal Revenue Service Office of Appeals has 
     been sent with respect to a penalty to which this section 
     applies, only the Commissioner of Internal Revenue may 
     compromise all or any portion of such penalty.
       ``(2) Applicable rules.--The rules of paragraphs (2) and 
     (3) of section 6707A(d) shall apply for purposes of paragraph 
     (1).
       ``(e) Coordination With Other Penalties.--Except as 
     otherwise provided in this part, the penalty imposed by this 
     section shall be in addition to any other penalty imposed by 
     this title.
       ``(f) Cross References.--

    ``(1) For coordination of penalty with understatements under 
      section 6662 and other special rules, see section 6662A(e).
    ``(2) For reporting of penalty imposed under this section to the 
      Securities and Exchange Commission, see section 6707A(e).''.
       (b) Coordination With Other Understatements and 
     Penalties.--
       (1) The second sentence of section 6662(d)(2)(A) is amended 
     by inserting ``and without regard to items with respect to 
     which a penalty is imposed by section 6662B'' before the 
     period at the end.
       (2) Subsection (e) of section 6662A is amended--
       (A) in paragraph (1), by inserting ``and noneconomic 
     substance transaction understatements'' after ``reportable 
     transaction understatements'' both places it appears,
       (B) in paragraph (2)(A), by inserting ``and a noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'',
       (C) in paragraph (2)(B), by inserting ``6662B or'' before 
     ``6663'',
       (D) in paragraph (2)(C)(i), by inserting ``or section 
     6662B'' before the period at the end,
       (E) in paragraph (2)(C)(ii), by inserting ``and section 
     6662B'' after ``This section'',
       (F) in paragraph (3), by inserting ``or noneconomic 
     substance transaction understatement'' after ``reportable 
     transaction understatement'', and
       (G) by adding at the end the following new paragraph:
       ``(4) Noneconomic substance transaction understatement.--
     For purposes of this subsection, the term `noneconomic 
     substance transaction understatement' has the meaning given 
     such term by section 6662B(c).''.
       (3) Subsection (e) of section 6707A is amended--
       (A) by striking ``or'' at the end of subparagraph (B), and
       (B) by striking subparagraph (C) and inserting the 
     following new subparagraphs:
       ``(C) is required to pay a penalty under section 6662B with 
     respect to any noneconomic substance transaction, or
       ``(D) is required to pay a penalty under section 6662(h) 
     with respect to any transaction and would (but for section 
     6662A(e)(2)(C)) have been subject to penalty under section 
     6662A at a rate prescribed under section 6662A(c) or under 
     section 6662B,''.
       (c) Clerical Amendment.--The table of sections for part II 
     of subchapter A of chapter 68 is amended by inserting after 
     the item relating to section 6662A the following new item:

``Sec. 6662B. Penalty for understatements attributable to transactions 
              lacking economic substance, etc.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transactions entered into after the date of 
     the enactment of this Act.

     SEC. 203. DENIAL OF DEDUCTION FOR INTEREST ON UNDERPAYMENTS 
                   ATTRIBUTABLE TO NONECONOMIC SUBSTANCE 
                   TRANSACTIONS.

       (a) In General.--Section 163(m) (relating to interest on 
     unpaid taxes attributable to nondisclosed reportable 
     transactions) is amended--
       (1) by striking ``attributable'' and all that follows and 
     inserting the following: ``attributable to--
       ``(1) the portion of any reportable transaction 
     understatement (as defined in section 6662A(b)) with respect 
     to which the requirement of section 6664(d)(2)(A) is not met, 
     or
       ``(2) any noneconomic substance transaction understatement 
     (as defined in section 6662B(c)).'', and
       (2) by inserting ``AND NONECONOMIC SUBSTANCE TRANSACTIONS'' 
     in the heading thereof after ``TRANSACTIONS''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transactions after the date of the enactment 
     of this Act in taxable years ending after such date.

  TITLE III--ELIMINATION OF HIGHEST CORPORATE MARGINAL INCOME TAX RATE

     SEC. 301. ELIMINATION OF HIGHEST CORPORATE MARGINAL INCOME 
                   TAX RATE.

       (a) In General.--Section 11(b)(1) (relating to amount of 
     tax imposed on corporations) is amended by striking 
     subparagraphs (C) and (D) and inserting the following new 
     subparagraph:
       ``(C) 34 percent of so much of the taxable income as 
     exceeds $75,000.''.
       (b) Certain Personal Service Corporations.--Section 
     11(b)(2) is amended by striking ``35 percent'' and inserting 
     ``34 percent''.
       (c) Conforming Amendments.--
       (1) Section 11(b)(1) is amended by striking the last 
     sentence.
       (2) Section 1201(a) is amended--
       (A) by striking ``35 percent'' each place it appears and 
     inserting ``34 percent'', and
       (B) by striking ``last 2 sentences'' and inserting ``last 
     sentence''.
       (3) Paragraphs (1) and (2) of section 1445(e) are each 
     amended by striking ``35 percent'' and inserting ``34 
     percent''.
       (4) Section 1561(a) is amended by striking ``last 2 
     sentences'' and inserting ``last sentence''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.
                                 ______
                                 
      By Mr. KERRY:
  S. 97. A bill to amend the Internal Revenue Code of 1986 to replace 
the Hope and Lifetime Learning credits with a partially refundable 
college opportunity credit; to the Committee on Finance.
  Mr. KERRY. Mr. President, today I am introducing the College 
Opportunity Tax Credit Act of 2007. This legislation creates a new tax 
credit that will put the cost of higher education in reach for American 
families.
  An October 2006 College Board report found that this year tuition and 
other costs at public and private universities rose faster than 
inflation. And, according to the report, tuition and fees at public 
universities rose more in the past five years than at any other time in 
the past 30 years, increasing by 35 percent to $5,836 this academic 
year. Over the same time period, tuition and

[[Page 168]]

fees at private universities increased 22 percent to $22,218.
  Unfortunately, neither student aid funds nor family incomes are 
keeping pace with increasing tuition and fees. In my travels around the 
country, I frequently hear from parents concerned they will not be able 
to pay for their children's college. These parents know that earning a 
college education will result in greater earnings for their children 
and they desperately want to ensure their kids have the greatest 
opportunities possible.
  In 1997, we implemented two new tax credits to make college 
affordable--the HOPE Credit and the Lifetime Learning Credit. These tax 
credits were important and have put college in reach for families, but 
I believe we can do more. In December, the Senate Finance Committee 
held a hearing on tax incentives for higher education in which we 
learned that the existing tax credits are not reaching enough students, 
particularly lower-income students who are most severely impacted by 
rising tuitions.
  The HOPE and Lifetime Learning credits are not refundable, and 
therefore a family of four must have an income over $30,000 in order to 
receive the maximum credit. Almost half of families with college 
students fail to receive the full credit because their income is too 
low. In order to receive the full benefit of the Lifetime Learning 
credit, a student has to spend $10,000 a year on tuition and fees. This 
is nearly double the average annual public four-year college tuition 
and four times the average annual tuition of a community college. Over 
80 percent of college students attend schools with tuition and fees 
under $10,000.
  In 2004, I proposed a refundable tax credit to help pay for the cost 
of four years of college. Currently the HOPE Credit applies only to the 
first two years of college. The College Opportunity Tax Credit Act of 
2007 (COTC) helps students and parents afford all four years of 
college. It also builds on the proposal I made in 2004 by incorporating 
some of the suggestions made by experts, including those at this week's 
Finance Committee hearing. My legislation creates a new credit that 
replaces the existing HOPE credit and Lifetime Learning credit and 
ultimately makes these benefits more generous.
  The COTC has two components. The first provides a refundable tax 
credit for a student enrolled in a degree program at least on a half-
time basis. It would provide a 100 percent tax credit for the first 
$1,000 of eligible expenses and a 50 percent tax credit to the next 
$3,000 of expenses. The maximum credit would be $2,500 each year per 
student. The second provides a nonrefundable tax credit for part-time 
students, graduate students, and other students that do not qualify for 
the refundable tax credit. It provides a 40 percent credit for the 
first $1,000 of eligible expenses and a 20 percent credit for the next 
$3,000 of expenses.
  Both of these credits can be used for expenses associated with 
tuition and fees. The same income limits that apply to the HOPE credit 
and the Lifetime Learning credit apply to the COTC; the COTC will be 
phased out ratably for taxpayers with income between $45,000 and 
$55,000 ($90,000 and $110,000 for married taxpayers). These amounts are 
indexed for inflation, as are the eligible amounts of expenses.
  The College Opportunity Tax Credit Act of 2007 simplifies the 
existing credits that make higher education more affordable and will 
enable more students to be eligible for tax relief. I understand that 
many of my colleagues are interested in making college more affordable. 
I look forward to working with my colleagues to make a refundable tax 
credit for college education a reality this Congress. I ask unanimous 
consent that the text of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 97

       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 ``College Opportunity Tax 
     Credit Act of 2007''.

     SEC. 2. COLLEGE OPPORTUNITY TAXT CREDIT.

       (a) In General.--
       (1) Allowance of credit.--Section 25A(a) of the Internal 
     Revenue Code of 1986 (relating to allowance of credit) is 
     amended--
       (A) in paragraph (1), by striking ``the Hope Scholarship 
     Credit'' and inserting ``the eligible student credit amount 
     determined under subsection (b)'', and
       (B) in paragraph (2), by striking ``the Lifetime Learning 
     Credit'' and inserting ``the part-time, graduate, and other 
     student credit amount determined under subsection (c)''.
       (2) Name of credit.--The heading for section 25A of such 
     Code is amended to read as follows:

     ``SEC. 25A. COLLEGE OPPORTUNITY CREDIT.''.

       (3) Clerical amendment.--The table of sections for subpart 
     A of parti IV of subchapter A of chapter 1 of such Code is 
     amended by striking the item relating to section 25A and 
     inserting the following:

``Sec. 25A. College opportunity credit.''.
       (b) Eligible Students.--
       (1) In general.--Paragraph (1) of section 25A(b) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``the Hope Scholarship Credit'' and 
     inserting ``the eligible student credit amount determined 
     under this subsection'', and
       (B) by striking ``Per student credit'' in the heading and 
     inserting ``In general''.
       (2) Amount of credit.--Paragraph (4) of section 25A(b) of 
     such Code (relating to applicable limit) is amended by 
     striking ``2'' and inserting ``3''.
       (3) Credit refundable.--
       (A) In general.--Section 25A of such Code is amended by 
     redesignating subsection (i) as subsection (j) and by 
     inserting after subsection (h) the following new subsection:
       ``(i) Portion of Credit Refundable.--
       ``(1) In general.--The aggregate credits allowed under 
     subpart C shall be increased by the amount of the credit 
     which would be allowed under this section--
       ``(A) by reason of subsection (b), and
       ``(B) without regard to this subsection and the limitation 
     under section 26(a) or subsection (j), as the case may be.
       ``(2) Treatment of credit.--The amount of the credit 
     allowed under this subsection shall not be treated as a 
     credit allowed under this subpart and shall reduce the amount 
     of credit otherwise allowable under subsection (a) without 
     regard to section 26(a) or subsection (j), as the case may 
     be.''.
       (B) Technical amendment.--Section 1324(b) of title 31, 
     United States Code, is amended by inserting ``, or enacted by 
     the College Opportunity Tax Credit Act of 2007'' before the 
     period at the end.
       (4) Limitations.--
       (A) Credit allowed for 4 years.--Subparagraph (A) of 
     section 25A(b)(2) of such Code is amended--
       (i) by striking ``2'' in the text and in the heading and 
     inserting ``4'', and
       (ii) by striking ``the Hope Scholarship Credit'' and 
     inserting ``the credit allowable''.
       (B) Elimination of limitation on first 2 years of 
     postsecondary education.--Section 25A(b)(2) of such Code is 
     amended by striking subparagraph (C) and by redesignating 
     subparagraph (D) as subparagraph (C).
       (5) Conforming amendments.--
       (A) The heading of subsection (b) of section 25A of such 
     Code is amended to read as follows:
       ``(b) Eligible Students.--''.
       (B) Section 25A(b)(2) of such Code is amended--
       (i) in subparagraph (B), by striking ``the Hope Scholarship 
     Credit'' and inserting ``the credit allowable'', and
       (ii) in subparagraph (C), as redesignated by paragraph 
     (4)(B), by striking ``the Hope Scholarship Credit'' and 
     inserting ``the credit allowable''.
       (c) Part-Time, Graduate, and Other Students.--
       (1) In general.--Subsection (c) of section 25A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(c) Part-Time, Graduate, and Other Students.--
       ``(1) In general.--In the case of any student for whom an 
     election is in effect under this section for any taxable 
     year, the part-time, graduate, and other student credit 
     amount determined under this subsection for any taxable year 
     is an amount equal to the sum of--
       ``(A) 40 percent of so much of the qualified tuition and 
     related expenses paid by the taxpayer during the taxable year 
     (for education furnished to the student during any academic 
     period beginning in such taxable year) as does not exceed 
     $1,000, plus
       ``(B) 20 percent of such expenses so paid as exceeds $1,000 
     but does not exceed the applicable limit.
       ``(2) Applicable limit.--For purposes of paragraph (1)(B), 
     the applicable limit for any taxable year is an amount equal 
     to 3 times the dollar amount in effect under paragraph (1)(A) 
     for such taxable year.
       ``(3) Special rules for determining expenses.--
       ``(A) Coordination with credit for eligible students.--The 
     qualified tuition and related expenses with respect to a 
     student who is an eligible student for whom a credit is 
     allowed under subsection (a)(1) for the taxable year shall 
     not be taken into account under this subsection.

[[Page 169]]

       ``(B) Expenses for job skills courses allowed.--For 
     purposes of paragraph (1), qualified tuition and related 
     expenses shall include expenses described in subsection 
     (f)(1) with respect to any course of instruction at an 
     eligible educational institution to acquire or improve job 
     skills of the student.''.
       (2) Inflation adjustment.--
       (A) In general.--Subsection (h) of section 25A of such Code 
     (relating to inflation adjustments) is amended by adding at 
     the end the following new paragraph:
       ``(3) Dollar limitation on amount of credit under 
     subsection (a)(2).--
       ``(A) In general.--In the case of a taxable year beginning 
     after 2007, each of the $1,000 amounts under subsection 
     (c)(1) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2006' 
     for `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--If any amount as adjusted under 
     subparagraph (A) is not a multiple of $100, such amount shall 
     be rounded to the next lowest multiple of $100.''.
       (B) Conforming amendment.--The heading for paragraph (1) of 
     section 25A(h) of such code is amended by inserting ``under 
     subsection (a)(1)'' after ``credit''.
       (d) Credit Allowed Against Alternative Minimum Tax.--
       (1) In general.--Section 25A of the Internal Revenue Code 
     of 1986, as amended by subsection (b)(3), is amended by 
     redesignating subsection (j) as subsection (k) and by 
     inserting after subsection (h) the following new subsection:
       ``(j) Limitation Based on Amount of Tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for the taxable year 
     shall not exceed the excess of--
       ``(1) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(2) the sum of the credits allowed under this subpart 
     (other than this section and sections 23, 24, and 25B) and 
     section 27 for the taxable year.''.
       (2) Conforming amendment.--Section 25(a)(1) of such Code is 
     amended by inserting ``25A,'' after ``24,''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
      By Mr. KERRY (for himself and Ms. Landrieu):
  S. 98. A bill to foster the development of minority-owned small 
businesses; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, I ask unanimous consent that this statement 
be printed in the record. Mr. President, I rise today to introduce the 
Minority Entrepreneurship Development Act of 2007. At the beginning of 
a new Congress it is important to set priorities for the nation because 
every new Congress brings with it the hope for a brighter future. One 
of the ways that this new Senate will lead is by creating opportunities 
for more Americans to pursue the American dream. As incoming Chair of 
the Small Business and Entrepreneurship Committee, I hope to help in 
that effort by fostering the development of entrepreneurship in 
minority communities. It's vital that current and future entrepreneurs 
from minority communities are given the opportunity to build their own 
piece of the American dream. I believe that this legislation the 
Minority Entrepreneurship Development Act of 2007 will help in that 
effort.
  I want to take a moment and tell you why it's so important to expand 
the numbers of entrepreneurs in the minority community. As a member of 
the Senate Committee on Small Business and Entrepreneurship, I have 
received firsthand testimony and countless reports documenting the 
positive economic impact that occurs when we foster entrepreneurship in 
under-served communities. There are signs of significant economic 
returns when minority businesses are created and are able to grow in 
size and capacity. Between 1987 and 1997, revenue from minority owned 
firms rose by 22.5 percent, an increase equivalent to an annual growth 
rate of 10 percent. Employment opportunities within minority owned 
firms increased by 23 percent during that same period. There is a clear 
correlation between the growth of minority owned firms and the economic 
viability of the minority community.
  Although these economic numbers tell a significant part of the story 
they don't tell the whole story of what these firms mean to the 
minority communities they serve and represent. Many of these business 
leaders are first generation immigrants; many are first generation 
business owners and many represent, for those in their communities, 
what hard work, determination and patience can do.
  We must encourage those kinds of values in our minority communities 
and, quite frankly, in our nation as a whole. For generations, millions 
have come to our shores in search of a better life. Millions of others 
were brought here by force and for years were not given a voice in how 
their lives would turn out. But, how ever we got here, we all have 
become branches of this great tree we call America. This tree is still 
nourished by roots planted by our forefathers more than 200 years ago. 
Those men and women planted the roots of hard work, innovation, faith 
and risk taking.
  When you think about it, those words are the perfect description of 
an entrepreneur. It is the spirit of entrepreneurship that has made our 
nation great. And that is why it is absolutely imperative that we 
continue to support and develop that spirit in our minority 
communities. To that end, this legislation provides several tools to 
help minority entrepreneurs as they develop and grow their businesses.
  First, this legislation will create an Office of Minority Small 
Business Development at the Small Business Administration. One of its 
primary functions will be to increase the number of small business 
loans that minority businesses receive. Latinos, African-Americans, 
Asian-Americans and women have been receiving far fewer small business 
loans than they reasonably should.
  To ensure that this trend is reversed and minorities begin to get a 
greater share of loan dollars, venture capital investments, counseling, 
and contracting opportunities, this bill will give the new office the 
authority to monitor the outcomes for SBA's Capital Access, 
Entrepreneurial Development, and Government Contracting programs. It 
also requires the head of the Office to work with SBA's partners, trade 
associations and business groups to identify more effective ways to 
market to minority business owners, and to work with the head of SBA's 
Field Operations to ensure that district offices have staff and 
resources to market to minorities.
  Second, this legislation will create the Minority Entrepreneurship 
and Innovation Pilot Program. This program will offer a competitive 
grant to Historically Black Colleges and Universities, Tribal Colleges, 
and Hispanic-Serving Institutions to create an entrepreneurship 
curriculum at these institutions and to open Small Business Development 
Centers on those campus' to serve local businesses.
  The goal of this program is to target students in highly skilled 
fields such as engineering, manufacturing, science and technology, and 
guide them towards entrepreneurship as a career option. Traditionally, 
minority-owned businesses are disproportionately represented in the 
service sectors. Promoting entrepreneurial education to undergraduate 
students will help expand business ownership beyond the service sectors 
to higher yielding technical and financial sectors.
  Third, this legislation will create the Minority Access to 
Information Distance Learning Pilot Program. This program will offer 
competitive grants to well established national minority non-profit and 
business organizations to create distance learning programs for small 
business owners who are interested in doing business with the federal 
government.
  The goal of this program is to provide low cost training to the many 
small business owners who cannot afford to pay a consultant thousands 
of dollars for advice or training on how to prepare themselves to 
contract with the Federal Government. There are thousands of small 
businesses in this country that are excellent and efficient. They are 
primed to provide the goods and services that this nation needs to stay 
competitive. This program will help prepare them to do just that.
  Finally, this legislation will extend the Socially and Economically 
Disadvantaged Business Program which

[[Page 170]]

expired in 2003. This program provides a price evaluation adjustment 
for socially and economically disadvantaged businesses as a way of 
increasing their competitiveness when bidding against larger firms. 
This is one more tool to increase opportunities for our minority small 
business owners.
  I have outlined several ways that we can create a more positive 
environment for our minority small business community. These are 
reasonable steps that we ought to take without delay. Moreover, these 
are important steps that will help bolster a movement that is already 
underway. According to U.S. Census data, Hispanics are opening 
businesses 3 times faster than the national average. Also, business 
development and entrepreneurship have played a significant role in the 
expansion of the black middle class in this country for over a century. 
These business owners are embodying the entrepreneurial spirit that our 
forefathers carried with them as they established this nation.
  With this legislation and in my role as incoming Chair of the 
Committee on Small Business and Entrepreneurship, I hope to play a part 
in helping to extend that spirit to the next generation of 
entrepreneurs. Not only is this vital for our minority communities, but 
it is vital for America. I urge my colleagues to join with me in 
support of the Minority Entrepreneurship Development Act of 2007.
  I ask unanimous consent that the text of the legislation 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. 98

       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 ``Minority Entrepreneurship 
     Development Act of 2007''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) in 2005, the African American unemployment rate was 9.5 
     percent and the Hispanic American unemployment rate was 6 
     percent, well above the national average of 4.7 percent;
       (2) Hispanics Americans represent 12.5 percent of the 
     United States population and approximately 6 percent of all 
     United States businesses;
       (3) African Americans account for 12.3 percent of the 
     population and only 4 percent of all United States 
     businesses;
       (4) Native Americans account for approximately 1 percent of 
     the population and .9 percent of all United States 
     businesses;
       (5) entrepreneurship has proven to be an effective tool for 
     economic growth and viability of all communities;
       (6) minority-owned businesses are a key ingredient for 
     economic development in the community, an effective tool for 
     creating lasting and higher-paying jobs, and a source of 
     wealth in the minority community; and
       (7) between 1987 and 1997, revenue from minority-owned 
     firms rose by 22.5 percent, an increase equivalent to an 
     annual growth rate of 10 percent, and employment 
     opportunities within minority-owned firms increased by 23 
     percent.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``eligible association or organization'' means 
     an association or organization that--
       (A) is--
       (i) a national minority business association organized in 
     accordance with section 501(c)(6) of the Internal Revenue 
     Code of 1986; or
       (ii) a foundation of national minority business 
     associations organized in accordance with section 501(c)(3) 
     of the Internal Revenue Code of 1986;
       (B) has a well established national network of local 
     chapters, or a proven national membership; and
       (C) has been in existence for at least the 10-year period 
     before the date of awarding a grant under section 6;
       (3) the term ``eligible educational institution'' means an 
     institution that is--
       (A) a public or private institution of higher education 
     (including any land-grant college or university, any college 
     or school of business, engineering, commerce, or agriculture, 
     or community college or junior college) or any entity formed 
     by 2 or more institutions of higher education; and
       (B) a--
       (i) historically Black college;
       (ii) Hispanic-serving institution; or
       (iii) tribal college;
       (4) the term ``historically Black college'' means a part B 
     institution, as that term is defined in section 322 of the 
     Higher Education Act of 1965 (20 U.S.C. 1061);
       (5) the term ``Hispanic-serving institution'' has the 
     meaning given that term in section 502 of the Higher 
     Education Act of 1965 (20 U.S.C. 1101a);
       (6) the term ``institution of higher education'' has the 
     meaning given that term in section 101 of the Higher 
     Education Act of 1965 (20 U.S.C. 1101)
       (7) the term ``small business concern'' has the meaning 
     given that term in section 3 of the Small Business Act (15 
     U.S.C. 532);
       (8) the term ``small business development center'' has the 
     meaning given that term in section 21 of the Small Business 
     Act (15 U.S.C. 648); and
       (9) the term ``tribal college'' has the same meaning as the 
     term ``tribally controlled college or university'' under 
     section 2(a)(4) of the Tribally Controlled Community College 
     Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).

     SEC. 4. MINORITY SMALL BUSINESS DEVELOPMENT.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 37 as section 38; and
       (2) by inserting after section 36 the following:

     ``SEC. 37. MINORITY SMALL BUSINESS DEVELOPMENT.

       ``(a) Office of Minority Small Business Development.--There 
     is established in the Administration an Office of Minority 
     Small Business Development, which shall be administered by 
     the Associate Administrator for Minority Small Business 
     Development appointed under section 4(b)(1) (in this section 
     referred to as the `Associate Administrator').
       ``(b) Associate Administrator for Minority Small Business 
     Development.--The Associate Administrator shall--
       ``(1) be--
       ``(A) an appointee in the Senior Executive Service who is a 
     career appointee; or
       ``(B) an employee in the competitive service;
       ``(2) be responsible for the formulation, execution, and 
     promotion of policies and programs of the Administration that 
     provide assistance to small business concerns owned and 
     controlled by minorities;
       ``(3) act as an ombudsman for full consideration of 
     minorities in all programs of the Administration (including 
     those under section 7(j) and 8(a));
       ``(4) work with the Associate Deputy Administrator for 
     Capital Access of the Administration to increase the 
     proportion of loans and loan dollars, and investments and 
     investment dollars, going to minorities through the finance 
     programs under this Act and the Small Business Investment Act 
     of 1958 (including subsections (a), (b), and (m) of section 7 
     of this Act and the programs under title V and parts A and B 
     of title III of the Small Business Investment Act of 1958);
       ``(5) work with the Associate Deputy Administrator for 
     Entrepreneurial Development of the Administration to increase 
     the proportion of counseling and training that goes to 
     minorities through the entrepreneurial development programs 
     of the Administration;
       ``(6) work with the Associate Deputy Administrator for 
     Government Contracting and Minority Enterprise Development of 
     the Administration to increase the proportion of contracts, 
     including through the Small Business Innovation Research 
     Program and the Small Business Technology Transfer Program, 
     to minorities;
       ``(7) work with the partners of the Administration, trade 
     associations, and business groups to identify and carry out 
     policies and procedures to more effectively market the 
     resources of the Administration to minorities;
       ``(8) work with the Office of Field Operations of the 
     Administration to ensure that district offices and regional 
     offices have adequate staff, funding, and other resources to 
     market the programs of the Administration to meet the 
     objectives described in paragraphs (4) through (7); and
       ``(9) report to and be responsible directly to the 
     Administrator.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section--
       ``(1) $5,000,000 for fiscal year 2007;
       ``(2) $5,000,000 for fiscal year 2008; and
       ``(3) $5,000,000 for fiscal year 2009.''.
       (b) Conforming Amendments.--Section 4(b)(1) of the Small 
     Business Act (15 U.S.C. 633(b)(1)) is amended in the sixth 
     sentence, by striking ``Minority Small Business and Capital 
     Ownership Development'' and all that follows through the end 
     of the sentence and inserting ``Minority Small Business 
     Development.''.

     SEC. 5. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT 
                   PROGRAM OF 2007.

       (a) In General.--The Administrator may make grants to 
     eligible educational institutions--
       (1) to assist in establishing an entrepreneurship 
     curriculum for undergraduate or graduate studies; and
       (2) for placement of a small business development center on 
     the physical campus of the institution.
       (b) Use of Funds.--

[[Page 171]]

       (1) Curriculum requirement.--
       (A) In general.--An eligible educational institution 
     receiving a grant under this section shall develop a 
     curriculum that includes training in various skill sets 
     needed by successful entrepreneurs, including--
       (i) business management and marketing, financial management 
     and accounting, market analysis and competitive analysis, and 
     innovation and strategic planning; and
       (ii) additional entrepreneurial skill sets specific to the 
     needs of the student population and the surrounding 
     community, as determined by the institution.
       (B) Focus.--The focus of the curriculum developed under 
     this paragraph shall be to help students in non-business 
     majors develop the tools necessary to use their area of 
     expertise as entrepreneurs.
       (2) Small business development center requirement.--Each 
     eligible educational institution receiving a grant under this 
     section shall open a small business development center that--
       (A) performs studies, research, and counseling concerning 
     the managing, financing, and operation of small business 
     concerns;
       (B) performs management training and provides technical 
     assistance regarding small business concern participation in 
     international markets, export promotion and technology 
     transfer, and the delivery or distribution of such services 
     and information;
       (C) offers referral services for entrepreneurs and small 
     business concerns to business development, financing, and 
     legal experts; and
       (D) promotes market-specific innovation, niche marketing, 
     capacity building, international trade, and strategic 
     planning as keys to long term growth for its small business 
     concern and entrepreneur clients.
       (c) Grant Awards.--
       (1) In general.--The Administrator may not award a grant 
     under this section to a single eligible educational 
     institution--
       (A) in excess of $1,000,000 in any fiscal year; or
       (B) for a term of more than 2 years.
       (2) Limitation on use of funds.--Funds made available under 
     this section may not be used for--
       (A) any purpose other than those associated with the direct 
     costs incurred by the eligible educational institution to--
       (i) develop and implement the curriculum described in 
     subsection (b)(1); or
       (ii) organize and operate a small business development 
     center, as described in subsection (b)(2); or
       (B) building expenses, administrative travel budgets, or 
     other expenses not directly related to the costs described in 
     subparagraph (A).
       (d) Matching Not Required.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall not apply to a grant made under this 
     section.
       (e) Report.--
       (1) In general.--Not later than November 1 of each year in 
     which funds are made available for grants under this section, 
     the Associate Administrator of Entrepreneurial Development of 
     the Administration shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives, a report 
     evaluating the success of the program under this section 
     during the preceding fiscal year.
       (2) Contents.--Each report under paragraph (1) shall 
     include--
       (A) a description of each entrepreneurship program 
     developed with grant funds, the date of the award, and the 
     number of participants in each such program;
       (B) the number of small business assisted through the small 
     business development center with grant funds; and
       (C) data regarding the economic impact of the small 
     business development center counseling provided with grant 
     funds.
       (f) Authorization of Appropriation.--There are authorized 
     to be appropriated to carry out this section $24,000,000 for 
     each of fiscal years 2007 through 2009, to remain available 
     until expended.
       (g) Limitation on Use of Other Funds.--The Administrator 
     shall carry out this section only with amounts appropriated 
     in advance specifically to carry out this section.

     SEC. 6. MINORITY ACCESS TO INFORMATION DISTANCE LEARNING 
                   PILOT PROGRAM OF 2007.

       (a) In General.--The Administrator may make grants to 
     eligible associations and organizations to--
       (1) assist in establishing the technical capacity to 
     provide online or distance learning for businesses seeking to 
     contract with the Federal Government;
       (2) develop curriculum for seminars that will provide 
     businesses with the technical expertise to contract with the 
     Federal government; and
       (3) provide training and technical expertise through 
     distance learning at low cost, or no cost, to participant 
     business owners and other interested parties.
       (b) Use of Funds.--An eligible association or organization 
     receiving a grant under this section shall develop a 
     curriculum that includes training in various areas needed by 
     the owners of small business concerns to successfully 
     contract with the Federal Government, which may include 
     training in accounting, marketing to the Federal Government, 
     applying for Federal certifications, use of offices of small 
     and disadvantaged businesses, procurement conferences, the 
     scope of Federal procurement contracts, and General Services 
     Administration schedules.
       (c) Grant Awards.--
       (1) In general.--The Administrator may not award a grant 
     under this section to a single eligible association or 
     organization--
       (A) in excess of $250,000 in any fiscal year; or
       (B) for a term of more than 2 years.
       (2) Limitation on use of funds.--Funds made available under 
     this section may not be used--
       (A) for any purpose other than those associated with the 
     direct costs incurred by the eligible association or 
     organization to develop the curriculum described in 
     subsection (b); or
       (B) for building expenses, administrative travel budgets, 
     or other expenses not directly related to the costs described 
     in subparagraph (A).
       (d) Matching Not Required.--Subparagraphs (A) and (B) of 
     section 21(a)(4) of the Small Business Act (15 U.S.C. 
     648(a)(4)) shall not apply to a grant made under this 
     section.
       (e) Report.--
       (1) In general.--Not later than November 1 of each year, 
     the Associate Administrator of Entrepreneurial Development of 
     the Administration shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives, a report 
     evaluating the success of the program under this section 
     during the preceding fiscal year.
       (2) Contents.--Each report under paragraph (1) shall 
     include--
       (A) a description of each distance learning program 
     developed with grant funds under this section, the date of 
     the award, and the number of participants in each program; 
     and
       (B) data regarding the economic impact of the distance 
     learning technical assistance provided with such grant funds.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $4,000,000 for 
     each of fiscal years 2007 through 2009, to remain available 
     until expended.
       (g) Limitation on Use of Other Funds.--The Administrator 
     shall carry out this section only with amounts appropriated 
     in advance specifically to carry out this section.

     SEC. 7. EXTENSION OF SOCIALLY AND ECONOMICALLY DISADVANTAGED 
                   BUSINESS PROGRAM.

       (a) In General.--Section 7102(c) of the Federal Acquisition 
     Streamlining Act of 1994 (15 U.S.C. 644 note) is amended by 
     striking ``September 30, 2003'' and inserting ``September 30, 
     2009''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect 30 days after the date of enactment of this 
     Act.
                                 ______
                                 
      By Mr. KERRY:
  S. 99. A bill to amend the Internal Revenue code of 1986 to provide a 
refundable credit for small business employee health insurance 
expenses; to the Committee on Finance.
  Mr. KERRY. Mr. President, today I am introducing the Small Business 
Health Care Tax Credit Act which would provide small businesses with a 
refundable tax credit to help with the cost of providing employees with 
health insurance. Recent studies show that certain groups of 
individuals are less likely to have employer-provided health insurance. 
The 2006 Kaiser Family Foundation Employer Health Benefits Survey shows 
that since 2000 the number of firms offering health benefits has 
declined from 69 percent to 61 percent in 2006. This decline in 
coverage is more prevalent in small businesses. Only 48 percent of the 
firms with less than 10 employees offer health insurance whereas, 90 
percent of the firms with 50 or more employees offer health benefits. 
Approximately 32 million Americans work for firms with fewer than 50 
employees.
  The April 2006 Commonwealth Fund Biennial Health Insurance Survey 
concluded that 41 percent of working-age Americans with incomes between 
$20,000 and $40,000 were uninsured for at least part of the past year. 
This reflects a dramatic increase in this income range, up from 28 
percent in 2001. The survey found that of the 48 million American 
adults who were uninsured in the past year, 67 percent were in families 
where at least one person worked full time.
  My legislation provides a refundable tax credit to small businesses 
designed to help provide coverage to those who are currently uninsured. 
Small businesses with less than 50 employees would be eligible to 
receive a tax credit to help with the cost of health care premiums for 
employees making more

[[Page 172]]

than $5,000 and less than $50,000 a year. To be eligible for the 
credit, the employer has to pay at least 50 percent of the health care 
insurance premium. The credit for businesses with fewer than 10 
employees will be capped at 50 percent of the cost of the premium, and 
the credit amount decreases for larger businesses.
  Last year, Leonard Burman, Codirector of the Tax Policy Center, 
testified before the Senate Finance Committee and suggested a 
refundable tax credit as an incremental option to help defray higher 
administrative costs faced by small employers in purchasing health 
care. This credit will help small businesses afford health care 
premiums. It is a refundable credit, so that it will help new 
businesses that do not yet have taxable income be able to offer health 
care and provide struggling businesses with assistance so that they can 
offer health care.
  This tax credit will cut the cost of health insurance by up to 50 
percent for small business owners. It will enable small businesses to 
provide health insurance for their low- and moderate-income employees. 
Until we can agree on a comprehensive proposal that will help reduce 
the cost of health care premiums for small businesses, this legislation 
provides an appropriate option for increasing health insurance coverage 
for small businesses and their employees.
  I ask for unanimous consent that the text of the legislation 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. 99

       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 ``Small Business Health Care 
     Tax Credit Act''.

     SEC. 2. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES.

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

     ``SEC. 45O. EMPLOYEE HEALTH INSURANCE EXPENSES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of a qualified small employer, the employee health 
     insurance expenses credit determined under this section is an 
     amount equal to the applicable percentage of the amount paid 
     by the taxpayer during the taxable year for qualified 
     employee health insurance expenses.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage is--
       ``(1) 50 percent in the case of an employer with less than 
     10 qualified employees,
       ``(2) 25 percent in the case of an employer with more than 
     9 but less than 25 qualified employees, and
       ``(3) 20 percent in the case of an employer with more than 
     24 but less than 50 qualified employees.
       ``(c) Per Employee Dollar Limitation.--The amount of 
     qualified employee health insurance expenses taken into 
     account under subsection (a) with respect to any qualified 
     employee for any taxable year shall not exceed--
       ``(1) $4,000 for self-only coverage, and
       ``(2) $10,000 for family coverage.
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Qualified small employer.--
       ``(A) In general.--The term `qualified small employer' 
     means any small employer which--
       ``(i) provides eligibility for health insurance coverage 
     (after any waiting period (as defined in section 9801(b)(4))) 
     to all qualified employees of the employer, and
       ``(ii) pays at least 50 percent of the cost of such 
     coverage for each qualified employee.
       ``(B) Small employer.--
       ``(i) In general.--For purposes of this paragraph, the term 
     `small employer' means, with respect to any taxable year, any 
     employer if--

       ``(I) the average gross receipts of such employer for the 
     preceding 3 taxable years does not exceed $5,000,000, and
       ``(II) such employer employed an average of more than 1 but 
     less than 50 qualified employees on business days during the 
     preceding taxable year.

       ``(ii) Aggregate gross assets.--For purposes of clause 
     (i)(I), the term `aggregate gross assets' shall have meaning 
     given such term by section 1202(d)(2).
       ``(iii) Employers not in existence in preceding year.--For 
     purposes of clause (i)(II)--

       ``(I) a preceding taxable year may be taken into account 
     only if the employer was in existence throughout such year, 
     and
       ``(II) in the case of an employer which was not in 
     existence throughout the preceding taxable year, the 
     determination of whether such employer is a qualified small 
     employer shall be based on the average number of employees 
     that it is reasonably expected such employer will employ on 
     business days in the current taxable year.

       ``(iv) Aggregation rules.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 or 
     subsection (m) or (o) of section 414 shall be treated as one 
     person for purposes of this subparagraph.
       ``(v) Predecessors.--The Secretary may prescribe 
     regulations which provide for references in this subparagraph 
     to an employer to be treated as including references to 
     predecessors of such employer.
       ``(2) Qualified employee health insurance expenses.--
       ``(A) In general.--The term `qualified employee health 
     insurance expenses' means any amount paid by an employer for 
     health insurance coverage to the extent such amount is 
     attributable to coverage provided to any employee while such 
     employee is a qualified employee.
       ``(B) Exception for amounts paid under salary reduction 
     arrangements.--No amount paid or incurred for health 
     insurance coverage pursuant to a salary reduction arrangement 
     shall be taken into account under subparagraph (A).
       ``(C) Health insurance coverage.--The term `health 
     insurance coverage' has the meaning given such term by 
     section 9832(b)(1).
       ``(3) Qualified employee.--
       ``(A) In general.--The term `qualified employee' means an 
     employee of an employer who, with respect to any period, is 
     not provided health insurance coverage under--
       ``(i) a health plan of the employee's spouse,
       ``(ii) title XVIII, XIX, or XXI of the Social Security Act,
       ``(iii) chapter 17 of title 38, United States Code,
       ``(iv) chapter 55 of title 10, United States Code,
       ``(v) chapter 89 of title 5, United States Code, or
       ``(vi) any other provision of law.
       ``(B) Employee.--The term `employee'--
       ``(i) means any individual, with respect to any calendar 
     year, who is reasonably expected to receive not more than 
     $50,000 of compensation from the employer during such year,
       ``(ii) does not include an employee within the meaning of 
     section 401(c)(1), and
       ``(iii) includes a leased employee within the meaning of 
     section 414(n).
       ``(C) Compensation.--The term `compensation' means amounts 
     described in section 6051(a)(3).
       ``(D) Inflation adjustment.--
       ``(i) In general.--In the case of a taxable year beginning 
     after 2007, the $50,000 amount in subparagraph (B)(i) shall 
     be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2006' 
     for `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If any amount as adjusted under clause 
     (i) is not a multiple of $1,000, such amount shall be rounded 
     to the next lowest multiple of $1,000.
       ``(4) No qualified employees excluded.--Subsection (a) 
     shall not apply to an employer for any period unless at all 
     times during such period health insurance coverage is 
     available to all qualified employees of such employer under 
     similar terms.
       ``(e) Portion of Credit Made Refundable.--
       ``(1) In general.--The aggregate credits allowed to a 
     taxpayer under subpart C shall be increased by the lesser 
     of--
       ``(A) the credit which would be allowed under subsection 
     (a) without regard to this subsection and the limitation 
     under section 38(c), or
       ``(B) the amount by which the aggregate amount of credits 
     allowed by this subpart (determined without regard to this 
     subsection) would increase if the limitation imposed by 
     section 38(c) for any taxable year were increased by the 
     amount of employer payroll taxes imposed on the taxpayer 
     during the calendar year in which the taxable year begins.
     The amount of the credit allowed under this subsection shall 
     not be treated as a credit allowed under this subpart and 
     shall reduce the amount of the credit otherwise allowable 
     under subsection (a) without regard to section 38(c).
       ``(2) Employer payroll taxes.--For purposes of this 
     subsection--
       ``(A) In general.--The term `employer payroll taxes' means 
     the taxes imposed by--
       ``(i) section 3111(b), and
       ``(ii) sections 3211(a) and 3221(a) (determined at a rate 
     equal to the rate under section 3111(b)).
       ``(B) Special rule.--A rule similar to the rule of section 
     24(d)(2)(C) shall apply for purposes of subparagraph (A).
       ``(f) Denial of Double Benefit.--No deduction or credit 
     under any other provision of this chapter shall be allowed 
     with respect to qualified employee health insurance expenses 
     taken into account under subsection (a).''.

[[Page 173]]

       (b) Credit to Be Part of General Business Credit.--Section 
     38(b) of the Internal Revenue Code of 1986 (relating to 
     current year business credit) is amended by striking ``plus'' 
     at the end of paragraph (30), by striking the period at the 
     end of paragraph (31) and inserting ``, plus'', and by adding 
     at the end the following:
       ``(32) the employee health insurance expenses credit 
     determined under section 45O.''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following:

``Sec. 45O. Employee health insurance expenses.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2006.
                                 ______
                                 
      By Mrs. BOXER:
  S. 100. A bill to encourage the health of children in schools by 
promoting better nutrition and increased physical activity, and for 
other purposes; to the Committee on Finance.
  Mrs. BOXER. Mr. President, today I rise to introduce the Healthy 
Students Act, a bill that addresses the rising epidemic of childhood 
obesity.
  Over the past 30 years, obesity rates have doubled for teenagers and 
tripled for children ages 6 to 11. Today, more than 30 percent of 
children in America are overweight and more than 15 percent are obese. 
As a result, more children are suffering from traditionally adult 
diseases--including type 2 diabetes, hypertension and high 
cholesterol--and putting their health in great danger.
  While the reasons for the growing number of obese children problems 
are complex, the underlying problem is simple. Children are becoming 
obese because they are eating too much unhealthy food and getting too 
little exercise.
  Vending machines are in too many of our schools. Children today eat 
five times as much fast food as they did 30 years ago. And the number 
of students who eat green vegetables ``nearly every day or more'' has 
dropped to only 30 percent.
  Children are getting too little exercise. Nearly 23 percent of 
children ages 9-13 do not engage in any free-time physical activity 
during the school day, and nearly 60 percent do not participate in any 
kind of organized sports or physical activity program outside of 
school.
  Also, the lack of qualified health professionals (school nurses)--
compounded with the access to them--is taking an adverse toll on 
children's health in our public schools. With just one licensed nurse 
for every 1,155 students, too many children don't have access to a 
caring health care professional who can diagnose illness, administer 
medicine, handle emergencies, or treat injuries.
  We should ensure that during the school day, children have access to 
better nutrition and health care, more physical activity, and the 
skills necessary for a lifetime of good health. And that's what the 
Healthy Students Act will do.
  First, the bill creates a commission of children's health experts to 
review existing school nutrition guidelines and develop new, healthier 
standards that provide more fresh fruits and vegetables and eliminate 
food of minimal nutritional value.
  Second, the bill creates a grant program for school nutrition pilot 
programs that promote alternative healthful food promotion in its 
curriculum and lunch program.
  I have seen firsthand what can be accomplished with such innovative 
programs. For example in Berkeley, California, the ``Edible 
Schoolyard'' program is changing the way kids eat and learn about 
nutrition. Schools in the Edible Schoolyard program maintain an organic 
garden and integrate the garden into both the curriculum and lunch 
program. This hands-on approach educates students on healthy eating--
from planting, to harvesting, to their plates. By teaching kids about 
the connection between what they eat and where it comes from, we can 
help them develop good nutrition habits that will last a lifetime.
  Third, the bill creates a ``Healthy Hour'' pilot program that 
provides funding for an additional hour to the school day either 
before, after or during school--set aside specifically for physical 
activity. As more and more schools have cut recess and physical 
education classes, the bill provides funding for programs that extend 
physical activity time and highlight the importance of exercise for 
children in schools across the country.
  Fourth, to make sure that children have the equipment they need, the 
bill provides tax incentives to individuals and businesses to donate 
exercise and gymnasium equipment to schools and organizations serving 
students.
  And fifth, to address the shortage of qualified health care 
professionals in schools, the bill creates a tuition loan forgiveness 
program for those who earn a degree in nursing and make a minimum 3-
year commitment to work in a public elementary or secondary school. We 
are saying to prospective nurses: If you make an investment in helping 
kids, then we will make an investment in you.
  Childhood obesity is a growing epidemic that we must address now. I 
urge my colleagues to support the Healthy Students Act to ensure that 
all children have the health they need to achieve their dreams.
                                 ______
                                 
      By Mr. KERRY:
  S. 102. A bill to amend the Internal Revenue Code of 1986 to extend 
and expand relief from the alternative minimum tax and to repeal the 
extension of the lower rates for capital gains and dividends for 2009 
and 2010; to the Committee on Finance.
  Mr. KERRY. Mr. President, today I am introducing legislation which 
addresses the individual alternative minimum tax (AMT) for 2007. Last 
Congress, a choice was made to extend lower capital gains and dividends 
rates that do not expire until the end of 2008 rather than address the 
AMT for 2007. My preference was to address the AMT for 2007 and I 
believe we still must take action to prevent taxpayers never intended 
to pay the AMT from being penalized this year.
  I opposed the Tax Increase Prevention and Reconciliation Act of 2005 
because it contained the wrong priorities for America leaving behind 
working families and substantially adding to the deficit. This law 
extended the lower rates on capital gains and dividends for 2009 and 
2010, but only addressed the individual AMT for 2006.
  According to the Joint Committee on Taxation, those earning $200,000 
or more will receive 84 percent of the benefit of the capital gains tax 
cut and 63 percent of the benefit of the dividends tax cuts. According 
to the Congressional Budget Office, 42.8 percent of taxpayers with 
income between $50,000 and $100,000 will be impacted by the AMT if the 
AMT is not fixed for 2007 a number that increases to 66 percent by 
2010. The Tax Increase Prevention and Reconciliation of Act of 2005 
extends a tax cut that does not expire to the end of 2008 with a price 
tag of $50 billion, but fails to protect the hard working families that 
will be impacted by the AMT. These families were never intended to be 
impacted by the AMT, a tax originally designed to prevent a small 
number of high-income taxpayers from avoiding taxation.
  Today, I am introducing legislation that will address the AMT for 
2007 and repeal the lower tax rates on capital dividends for 2009 and 
2010. To calculate the AMT, individuals add back certain ``preference 
items'' to their regular tax liability. These include personal 
exemptions, the standard deduction, and the itemized deduction for 
state and local taxes. From this amount, taxpayers subtract the AMT 
exemption amount, commonly referred to as the ``patch'' which reverted 
to lower levels at the end of 2005. The Tax Increase Prevention and 
Reconciliation Act of 2005 increased and extended the patch for 2006. 
The patch was increased in order to hold the same number of taxpayers 
harmless from the AMT in 2006 as in 2005.
  The problem with the AMT is that while the regular tax system is 
indexed for inflation, the AMT exemption amounts and tax brackets 
remain constant. This has the perverse consequence of punishing 
taxpayers for the mere fact their incomes rose due to inflation.

[[Page 174]]

  In 2001 Congress opted to provide more tax cuts to those with incomes 
of over $1 million rather than fix a looming tax problem for the middle 
class. The Economic Growth and Tax Relief Reconciliation Act of 2001 
did include a small adjustment to the AMT, but it was not enough. And 
we knew then that the number of taxpayers subject to the AMT would 
continue to rise steadily because the combination of tax cuts and a 
minor adjustment to the AMT would cause the AMT to explode. We are 
rapidly approaching this explosion and without immediate action 
America's middle class will be harmed.
  My legislation extends and expands the AMT exemption amount for 2007 
to prevent additional taxpayers from being impacted by the AMT. Without 
increasing and extending the AMT exemption for 2007, an additional 19.5 
million taxpayers will be impacted by the AMT in 2007. Large families, 
with incomes as low as $49,438, will be hurt by the AMT. My legislation 
will allow nonrefundable personal credits such as the higher education 
tax credits and the dependent care credit against the AMT for 2007. 
This legislation is offset by repealing the lower rates on capital 
gains and dividends.
  My colleagues on the other side of the aisle have argued that the 
extension of the capital gains and dividends benefits is necessary to 
provide investor certainty. But I believe that the certainty of working 
families worried about paying the AMT should come first.
  About a third of long-term capital gains are reported by taxpayers 
who are impacted by the AMT and due to the interaction of the AMT, they 
do not fully benefit from the lower rates. Simply put, taxpayers forced 
to carry the AMT burden will not benefit from the lower capital gains 
and dividends rate.
  The AMT is a looming problem that is impacting hard-working families 
and for each year that we fail to address the AMT, it gets worse and 
more expensive. At a minimum we must address the AMT for 2007. My 
legislation is not a long-term cure to the AMT crisis, but it will 
provide certainty for 2007 to hard working families who will be 
impacted by the AMT just because of where they live and the number of 
children they have, and it will addresses the AMT in a revenue neutral 
manner for 2007 as well.
  We all agree that the AMT should not be impacting families with 
incomes below $100,000. My bill fixes the AMT for 2007 in a timely and 
fiscally responsible manner and gives Congress time to work in a 
bipartisan manner to find a fiscally responsible permanent solution to 
the AMT.
  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. 102

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

     SECTION 1. EXTENSION AND INCREASE IN MINIMUM TAX RELIEF TO 
                   INDIVIDUALS.

       (a) In General.--Section 55(d)(1) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``$62,550 in the case of taxable years 
     beginning in 2006'' in subparagraph (A) and inserting 
     ``$67,100 in the case of taxable years beginning in 2007'', 
     and
       (2) by striking ``$42,500 in the case of taxable years 
     beginning in 2006'' in subparagraph (B) and inserting 
     ``$44,800 in the case of taxable years beginning in 2007''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 2. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST 
                   REGULAR AND ALTERNATIVE MINIMUM TAX LIABILITY.

       (a) In General.--Paragraph (2) of section 26(a) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``2006'' in the heading thereof and 
     inserting ``2007'', and
       (2) by striking ``or 2006'' and inserting ``2006, or 
     2007''.
       (b) Conforming Provisions.--
       (1) Section 30B(g) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(3) Special rule for 2007.--For purposes of any taxable 
     year beginning during 2007, the credit allowed under 
     subsection (a) (after the application of paragraph (1)) shall 
     not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     this subpart (other than this section and section 30C).''.
       (2) Section 30C(d) of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(3) Special rule for 2007.--For purposes of any taxable 
     year beginning during 2007, the credit allowed under 
     subsection (a) (after the application of paragraph (1)) shall 
     not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under subpart A and 
     this subpart (other than this section).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 3. REPEAL OF EXTENSION OF LOWER RATES FOR CAPITAL GAINS 
                   AND DIVIDENDS.

       The amendment made by section 102 of the Tax Increase 
     Prevention and Reconciliation Act of 2005 is repealed and the 
     Internal Revenue Code of 1986 shall be applied as if such 
     amendment had never been enacted.
                                 ______
                                 
      By Mr. KERRY (for himself, Mrs. Feinstein, and Mr. Wyden):
  S. 103. A bill to amend the Internal Revenue Code of 1986 to provide 
that major oil and gas companies will not be eligible for the effective 
rate reductions enacted in 2004 for domestic manufacturers; to 
Committee on Finance.
  Mr. KERRY. Mr. President, today, I am introducing the Restore a 
Rational Tax Rate on Petroleum Act of 2007. This legislation repeals 
the manufacturing deduction for big oil and gas companies that was 
enacted by Congress in 2004. I introduced this legislation in the 109th 
Congress and Congressman McDermott introduced companion legislation in 
the House.
  The domestic manufacturing deduction was designed to replace export-
related tax benefits that were successfully challenged by the European 
Union. Producers of oil and gas did not benefit from this tax break. 
Initial legislation proposed to address the repeal of the export-
related tax benefits and to replace them with a new domestic 
manufacturing deduction. That legislation only provided the deduction 
to industries that benefited from the export-related tax benefits. 
However, the final product extended the deduction to include the oil 
and gas industry as well.
  My bill repeals the manufacturing deduction for oil and gas companies 
because these industries suffered no detriment from the repeal of 
export-related tax benefits. At a time when oil companies are reporting 
mind-boggling record profits, there is no reason to reward them with a 
tax deduction.
  Like me, many Members of Congress support a windfall profits tax on 
big oil and gas companies. Providing this deduction to oil and gas 
companies actually functions as a reverse windfall profits tax. This 
deduction lowers the tax rates on the windfall profits that they are 
currently enjoying. And without Congressional action this benefit will 
increase: upon enactment, the domestic manufacturing deduction was 
three percent, but it increased to six percent in 2007 and it is 
scheduled to increase to nine percent in 2010.
  I urge my colleagues to support this legislation. We owe it to the 
American people to eliminate tax benefits to the oil industry at a time 
of record profits, record gas prices, and record deficits.
  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. 103

       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 ``Restore a Rational Tax Rate 
     on Petroleum Production Act of 2007''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) like many other countries, the United States has long 
     provided export-related benefits under its tax law,
       (2) producers and refiners of oil and natural gas were 
     specifically denied the benefits of those export-related tax 
     provisions,
       (3) those export-related tax provisions were successfully 
     challenged by the European Union as being inconsistent with 
     our trade agreements,

[[Page 175]]

       (4) the Congress responded by repealing the export-related 
     benefits and enacting a substitute benefit that was an 
     effective rate reduction for United States manufacturers,
       (5) producers and refiners of oil and natural gas were made 
     eligible for the rate reduction even though they suffered no 
     detriment from repeal of the export-related benefits, and
       (6) the decision to provide the effective rate reduction to 
     producers and refiners of oil and natural gas has operated as 
     a reverse windfall profits tax, lowering the tax rate on the 
     windfall profits they are currently enjoying.

     SEC. 3. DENIAL OF DEDUCTION FOR INCOME ATTRIBUTABLE TO 
                   DOMESTIC PRODUCTION OF OIL, NATURAL GAS, OR 
                   PRIMARY PRODUCTS THEREOF.

       (a) In General.--Subparagraph (B) of section 199(c)(4) of 
     the Internal Revenue Code of 1986 (relating to exceptions) is 
     amended by striking ``or'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     ``, or'', and by inserting after clause (iii) the following 
     new clause:
       ``(iv) in the case of any major integrated oil company (as 
     defined in section 167(h)(5)(B)), the production, refining, 
     processing, transportation, or distribution of oil, natural 
     gas, or any primary product thereof during any taxable year 
     described in section 167(h)(A).''.
       (b) Conforming Amendments.--Section 199(c)(4) of such Code 
     is amended--
       (1) in subparagraph (A)(i)(III) by striking ``electricity, 
     natural gas,'' and inserting ``electricity'', and
       (2) in subparagraph (B)(ii) by striking ``electricity, 
     natural gas,'' and inserting ``electricity''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 106. A bill to amend the Public Health Service Act to provide for 
the establishment of a National Center for Social Work Research; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, I rise today to introduce legislation to 
amend the Public Health Service Act for the establishment of a National 
Center for Social Work Research. Social workers provide a multitude of 
health care delivery services throughout America to our children, 
families, the elderly, and persons suffering from various forms of 
abuse and neglect. The purpose of this center is to support and 
disseminate information about basic and clinical social work research, 
and training, with emphasis on service to underserved and rural 
populations.
  While the Federal Government provides funding for various social work 
research activities through the National Institutes of Health and other 
Federal agencies, there presently is no coordination or direction of 
these critical activities and no overall assessment of needs and 
opportunities for empirical knowledge development. The establishment of 
a Center for Social Work Research would result in improved behavioral 
and mental health care outcomes for our nation's children, families, 
the elderly, and others.
  In order to meet the increasing challenges of bringing cost-
effective, research-based, quality health care to all Americans, we 
must recognize the important contributions of social work researchers 
to health care delivery and the central role that the Center for Social 
Work can provide in facilitating their work.
  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. 106

       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 Center for Social 
     Work Research Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) social workers focus on the improvement of individual 
     and family functioning and the creation of effective health 
     and mental health prevention and treatment interventions in 
     order for individuals to become more productive members of 
     society;
       (2) social workers provide front line prevention and 
     treatment services in the areas of school violence, aging, 
     teen pregnancy, child abuse, domestic violence, juvenile 
     crime, and substance abuse, particularly in rural and 
     underserved communities; and
       (3) social workers are in a unique position to provide 
     valuable research information on these complex social 
     concerns, taking into account a wide range of social, 
     medical, economic and community influences from an 
     interdisciplinary, family-centered and community-based 
     approach.

     SEC. 3. ESTABLISHMENT OF NATIONAL CENTER FOR SOCIAL WORK 
                   RESEARCH.

       (a) In General.--Section 401(a) of the Public Health 
     Service Act (42 U.S.C. 281(a)), as amended by the National 
     Institutes of Health Reform Act of 2006) is amended by adding 
     at the end the following:
       ``(26) The National Center for Social Work Research.''.
       (b) Establishment.--Part E of title IV of the Public Health 
     Service Act (42 U.S.C. 287 et seq.) is amended by adding at 
     the end the following:

         ``Subpart 7--National Center for Social Work Research

     ``SEC. 485J. PURPOSE OF CENTER.

       ``The general purpose of the National Center for Social 
     Work Research (referred to in this subpart as the `Center') 
     is the conduct and support of, and dissemination of targeted 
     research concerning social work methods and outcomes related 
     to problems of significant social concern. The Center shall--
       ``(1) promote research and training that is designed to 
     inform social work practices, thus increasing the knowledge 
     base which promotes a healthier America; and
       ``(2) provide policymakers with empirically-based research 
     information to enable such policymakers to better understand 
     complex social issues and make informed funding decisions 
     about service effectiveness and cost efficiency.

     ``SEC. 485K. SPECIFIC AUTHORITIES.

       ``(a) In General.--To carry out the purpose described in 
     section 485J, the Director of the Center may provide research 
     training and instruction and establish, in the Center and in 
     other nonprofit institutions, research traineeships and 
     fellowships in the study and investigation of the prevention 
     of disease, health promotion, the association of 
     socioeconomic status, gender, ethnicity, age and geographical 
     location and health, the social work care of individuals 
     with, and families of individuals with, acute and chronic 
     illnesses, child abuse, neglect, and youth violence, and 
     child and family care to address problems of significant 
     social concern especially in underserved populations and 
     underserved geographical areas.
       ``(b) Stipends and Allowances.--The Director of the Center 
     may provide individuals receiving training and instruction or 
     traineeships or fellowships under subsection (a) with such 
     stipends and allowances (including amounts for travel and 
     subsistence and dependency allowances) as the Director 
     determines necessary.
       ``(c) Grants.--The Director of the Center may make grants 
     to nonprofit institutions to provide training and instruction 
     and traineeships and fellowships under subsection (a).

     ``SEC. 485L. ADVISORY COUNCIL.

       ``(a) Duties.--
       ``(1) In general.--The Secretary shall establish an 
     advisory council for the Center that shall advise, assist, 
     consult with, and make recommendations to the Secretary and 
     the Director of the Center on matters related to the 
     activities carried out by and through the Center and the 
     policies with respect to such activities.
       ``(2) Gifts.--The advisory council for the Center may 
     recommend to the Secretary the acceptance, in accordance with 
     section 231, of conditional gifts for study, investigations, 
     and research and for the acquisition of grounds or 
     construction, equipment, or maintenance of facilities for the 
     Center.
       ``(3) Other duties and functions.--The advisory council for 
     the Center--
       ``(A)(i) may make recommendations to the Director of the 
     Center with respect to research to be conducted by the 
     Center;
       ``(ii) may review applications for grants and cooperative 
     agreements for research or training and recommend for 
     approval applications for projects that demonstrate the 
     probability of making valuable contributions to human 
     knowledge; and
       ``(iii) may review any grant, contract, or cooperative 
     agreement proposed to be made or entered into by the Center;
       ``(B) may collect, by correspondence or by personal 
     investigation, information relating to studies that are being 
     carried out in the United States or any other country and, 
     with the approval of the Director of the Center, make such 
     information available through appropriate publications; and
       ``(C) may appoint subcommittees and convene workshops and 
     conferences.
       ``(b) Membership.--
       ``(1) In general.--The advisory council shall be composed 
     of the ex officio members described in paragraph (2) and not 
     more than 18 individuals to be appointed by the Secretary 
     under paragraph (3).
       ``(2) Ex officio members.--The ex officio members of the 
     advisory council shall include--
       ``(A) the Secretary of Health and Human Services, the 
     Director of NIH, the Director of the Center, the Chief Social 
     Work Officer of the Veterans' Administration, the Assistant 
     Secretary of Defense for Health Affairs, the Associate 
     Director of Prevention Research at the National Institute of 
     Mental Health, the Director of the Division of Epidemiology 
     and Services Research, the Assistant Secretary

[[Page 176]]

     of Health and Human Services for the Administration for 
     Children and Families, the Assistant Secretary of Education 
     for the Office of Educational Research and Improvement, the 
     Assistant Secretary of Housing and Urban Development for 
     Community Planning and Development, and the Assistant 
     Attorney General for Office of Justice Programs (or the 
     designees of such officers); and
       ``(B) such additional officers or employees of the United 
     States as the Secretary determines necessary for the advisory 
     council to effectively carry out its functions.
       ``(3) Appointed members.--The Secretary shall appoint not 
     to exceed 18 individuals to the advisory council, of which--
       ``(A) not more than two-thirds of such individual shall be 
     appointed from among the leading representatives of the 
     health and scientific disciplines (including public health 
     and the behavioral or social sciences) relevant to the 
     activities of the Center, and at least 7 such individuals 
     shall be professional social workers who are recognized 
     experts in the area of clinical practice, education, or 
     research; and
       ``(B) not more than one-third of such individuals shall be 
     appointed from the general public and shall include leaders 
     in fields of public policy, law, health policy, economics, 
     and management.

     The Secretary shall make appointments to the advisory council 
     in such a manner as to ensure that the terms of the members 
     do not all expire in the same year.
       ``(4) Compensation.--Members of the advisory council who 
     are officers or employees of the United States shall not 
     receive any compensation for service on the advisory council. 
     The remaining members shall receive, for each day (including 
     travel time) they are engaged in the performance of the 
     functions of the advisory council, compensation at rates not 
     to exceed the daily equivalent of the annual rate in effect 
     for an individual at grade GS-18 of the General Schedule.
       ``(c) Terms.--
       ``(1) In general.--The term of office of an individual 
     appointed to the advisory council under subsection (b)(3) 
     shall be 4 years, except that any individual appointed to 
     fill a vacancy on the advisory council shall serve for the 
     remainder of the unexpired term. A member may serve after the 
     expiration of the member's term until a successor has been 
     appointed.
       ``(2) Reappointments.--A member of the advisory council who 
     has been appointed under subsection (b)(3) for a term of 4 
     years may not be reappointed to the advisory council prior to 
     the expiration of the 2-year period beginning on the date on 
     which the prior term expired.
       ``(3) Vacancy.--If a vacancy occurs on the advisory council 
     among the members under subsection (b)(3), the Secretary 
     shall make an appointment to fill that vacancy not later than 
     90 days after the date on which the vacancy occurs.
       ``(d) Chairperson.--The chairperson of the advisory council 
     shall be selected by the Secretary from among the members 
     appointed under subsection (b)(3), except that the Secretary 
     may select the Director of the Center to be the chairperson 
     of the advisory council. The term of office of the 
     chairperson shall be 2 years.
       ``(e) Meetings.--The advisory council shall meet at the 
     call of the chairperson or upon the request of the Director 
     of the Center, but not less than 3 times each fiscal year. 
     The location of the meetings of the advisory council shall be 
     subject to the approval of the Director of the Center.
       ``(f) Administrative Provisions.--The Director of the 
     Center shall designate a member of the staff of the Center to 
     serve as the executive secretary of the advisory council. The 
     Director of the Center shall make available to the advisory 
     council such staff, information, and other assistance as the 
     council may require to carry out its functions. The Director 
     of the Center shall provide orientation and training for new 
     members of the advisory council to provide such members with 
     such information and training as may be appropriate for their 
     effective participation in the functions of the advisory 
     council.
       ``(g) Comments and Recommendations.--The advisory council 
     may prepare, for inclusion in the biennial report under 
     section 485M--
       ``(1) comments with respect to the activities of the 
     advisory council in the fiscal years for which the report is 
     prepared;
       ``(2) comments on the progress of the Center in meeting its 
     objectives; and
       ``(3) recommendations with respect to the future direction 
     and program and policy emphasis of the center.

     The advisory council may prepare such additional reports as 
     it may determine appropriate.

     ``SEC. 485M. BIENNIAL REPORT.

       ``The Director of the Center, after consultation with the 
     advisory council for the Center, shall prepare for inclusion 
     in the biennial report under section 403, a biennial report 
     that shall consist of a description of the activities of the 
     Center and program policies of the Director of the Center in 
     the fiscal years for which the report is prepared. The 
     Director of the Center may prepare such additional reports as 
     the Director determines appropriate. The Director of the 
     Center shall provide the advisory council of the Center an 
     opportunity for the submission of the written comments 
     described in section 485L(g).

     ``SEC. 485N. QUARTERLY REPORT.

       ``The Director of the Center shall prepare and submit to 
     Congress a quarterly report that contains a summary of 
     findings and policy implications derived from research 
     conducted or supported through the Center.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 107. A bill to amend title VII of the Public Health Service Act to 
make certain graduate programs in professional psychology eligible to 
participate in various health professions loan programs; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, I rise to introduce legislation today to 
modify Title VII of the U.S. Public Health Service Act in order to 
provide students enrolled in graduate psychology programs with the 
opportunity to participate in various health professions loan programs.
  Providing students enrolled in graduate psychology programs with 
eligibility for financial assistance in the form of loans, loan 
guarantees, and scholarships will facilitate a much-needed infusion of 
behavioral science expertise into our community of public health 
providers. There is a growing recognition of the valuable contribution 
being made by psychologists toward solving some of our Nation's most 
distressing problems.
  The participation of students from all backgrounds and clinical 
disciplines is vital to the success of health care training. The Title 
VII programs play a significant role in providing financial support for 
the recruitment of minorities, women, and individuals from economically 
disadvantaged backgrounds. Minority therapists have an advantage in the 
provision of critical services to minority populations because often 
they can communicate with clients in their own language and cultural 
framework. Minority therapists are more likely to work in community 
settings where ethnic minority and economically disadvantaged 
individuals are most likely to seek care. It is critical that continued 
support be provided for the training of individuals who provide health 
care services to underserved communities.
  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. 107

       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 ``Strengthen the Public Health 
     Service Act''.

     SEC. 2. PARTICIPATION IN VARIOUS HEALTH PROFESSIONS LOAN 
                   PROGRAMS.

       (a) Loan Agreements.--Section 721 of the Public Health 
     Service Act (42 U.S.C. 292q) is amended--
       (1) in subsection (a), by inserting ``, or any public or 
     nonprofit school that offers a graduate program in 
     professional psychology'' after ``veterinary medicine'';
       (2) in subsection (b)(4), by inserting ``, or to a graduate 
     degree in professional psychology'' after ``or doctor of 
     veterinary medicine or an equivalent degree''; and
       (3) in subsection (c)(1), by inserting ``, or schools that 
     offer graduate programs in professional psychology'' after 
     ``veterinary medicine''.
       (b) Loan Provisions.--Section 722 of the Public Health 
     Service Act (42 U.S.C. 292r) is amended--
       (1) in subsection (b)(1), by inserting ``, or to a graduate 
     degree in professional psychology'' after ``or doctor of 
     veterinary medicine or an equivalent degree'';
       (2) in subsection (c), in the matter preceding paragraph 
     (1), by inserting ``, or at a school that offers a graduate 
     program in professional psychology'' after ``veterinary 
     medicine''; and
       (3) in subsection (k)--
       (A) in the matter preceding paragraph (1), by striking ``or 
     podiatry'' and inserting ``podiatry, or professional 
     psychology''; and
       (B) in paragraph (4), by striking ``or podiatric medicine'' 
     and inserting ``podiatric medicine, or professional 
     psychology''.

     SEC. 3. GENERAL PROVISIONS.

       (a) Health Professions Data.--Section 792(a) of the Public 
     Health Service Act (42 U.S.C. 295k(a)) is amended by striking 
     ``clinical'' and inserting ``professional''.
       (b) Prohibition Against Discrimination on Basis of Sex.--
     Section 794 of the Public Health Service Act (42 U.S.C. 295m) 
     is amended in the matter preceding paragraph (1) by striking 
     ``clinical'' and inserting ``professional''.

[[Page 177]]

       (c) Definitions.--Section 799B(1)(B) of the Public Health 
     Service Act (42 U.S.C. 295p(1)(B)) is amended by striking 
     ``clinical'' each place the term appears and inserting 
     ``professional''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 108. A bill to amend title VII of the Public Health Service Act to 
make certain graduate programs in professional psychology eligible to 
participate in various health professions loan programs; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. INOUYE. Mr. President, I am introducing legislation today to 
amend Title VII of the Public Health Service Act to establish a 
psychology post-doctoral program. Psychologists have made a unique 
contribution in reaching out to the Nation's medically underserved 
populations. Expertise in behavioral science is useful in addressing 
grave concerns such as violence, addiction, mental illness, adolescent 
and child behavioral disorders, and family disruption. Establishment of 
a psychology post-doctoral program could be an effective way to find 
solutions to these issues.
  Similar programs supporting additional, specialized training in 
traditionally underserved settings have been successful in retaining 
participants to serve the same populations. For example, mental health 
professionals who have participated in these specialized federally 
funded programs have tended not only to meet their repayment 
obligations, but have continued to work in the public sector or with 
the underserved.
  While a doctorate in psychology provides broad-based knowledge and 
mastery in a wide variety of clinical skills, specialized post-doctoral 
fellowship programs help to develop particular diagnostic and treatment 
skills required to respond effectively to underserved populations. For 
example, what appears to be poor academic motivation in a child 
recently relocated from Southeast Asia might actually reflect a 
cultural value of reserve rather than a disinterest in academic 
learning. Specialized assessment skills enable the clinician to 
initiate effective treatment.
  Domestic violence poses a significant public health problem and is 
not just a problem for the criminal justice system. Violence against 
women results in thousands of hospitalizations a year. Rates of child 
and spouse abuse in rural areas are particularly high, as are the rates 
of alcohol abuse and depression in adolescents. A post-doctoral 
fellowship program in the psychology of the rural populations could be 
of special benefit in addressing these problems.
  Given the demonstrated success and effectiveness of specialized 
training programs, it is incumbent upon us to encourage participation 
in post-doctoral fellowships that respond to the needs of the nation's 
underserved.
  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. 108

       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 ``Psychologists in the Service 
     of the Public Act of 2007''.

     SEC. 2. GRANTS FOR FELLOWSHIPS IN PSYCHOLOGY.

       Part C of title VII of the Public Health Service Act (42 
     D.S.C. 293k et seq.) is amended by adding at the end the 
     following:

     SEC. 749. GRANTS FOR FELLOWSHIPS IN PSYCHOLOGY.

       ``(a) In General.--The Secretary shall establish a 
     psychology post-doctoral fellowship program to make grants to 
     and enter into contracts with eligible entities to encourage 
     the provision of psychological training and services in 
     underserved treatment areas.
       ``(b) Eligible Entities.--
       ``(1) Individuals.--In order to receive a grant under this 
     section an individual shall submit an application to the 
     Secretary at such time, in such form, and containing such 
     information as the Secretary shall require, including a 
     certification that such individual--
       `` (A) has received a doctoral degree through a graduate 
     program in psychology provided by an accredited institution 
     at the time such grant is awarded;
       ``(B) will provide services to a medically underserved 
     population during the period of such grant;
       ``(C) will comply with the provisions of subsection (c); 
     and
       ``(D) will provide any other information or assurances as 
     the Secretary determines appropriate.
       ``(2) Institutions.--In order to receIve a grant or 
     contract under this section, an institution shall submit an 
     application to the Secretary at such time, in such form, and 
     containing such information as the Secretary shall require, 
     including a certification that such institution--
       ``(A) is an entity, approved by the State, that provides 
     psychological services in medically underserved areas or to 
     medically underserved populations (including entities that 
     care for the mentally retarded, mental health institutions, 
     and prisons);
       ``(B) will use amounts provided to such institution under 
     this section to provide financial assistance in the form of 
     fellowships to qualified individuals who meet the 
     requirements of subparagraphs (A) through (0) of paragraph 
     (1);
       ``(C) will not use more than 10 percent of amounts provided 
     under this section to pay for the administrative costs of any 
     fellowship programs established with such funds; and
       ``(D) will provide any other information or assurances as 
     the Secretary determines appropriate.
       ``(c) Continued Provision of Services.--Any in,dividual who 
     receives a grant or fellowship under this section shall 
     certify to the Secretary that such individual will continue 
     to provide the type of services for which such grant or 
     fellowship is awarded for not less than 1 year after the term 
     of the grant or fellowship has expired.
       ``(d) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations necessary to carry out this section, including 
     regulations that define the terms `medically underserved 
     areas' and `medically underserved populations'.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $5,000,000 for each of the fiscal years 2008 through 2010.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 109. A bill to recognize the organization known as the National 
Academics of Practice; to the Committee on the Judiciary.
  Mr. INOUYE. Mr. President, today I am introducing legislation that 
would provide a Federal charter for the National Academies of Practice. 
This organization represents outstanding health care professionals who 
have made significant contributions to the practice of applied 
psychology, medicine, dentistry, nursing, optometry, osteopathic 
medicine, pharmacy, podiatry, social work, and veterinary medicine. 
When fully established, each of the ten academies will possess 150 
distinguished practitioners selected by their peers. This umbrella 
organization will be able to provide the Congress of the United States 
and the executive branch with considerable health policy expertise, 
especially from the perspective of those individuals who are in the 
forefront of actually providing health care.
  As we continue to grapple with the many complex issues surrounding 
the delivery of health care services, it is clearly in our best 
interest to ensure that the Congress has direct and immediate access to 
the recommendations of an interdisciplinary body of health care 
practitioners.
  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. 109

       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 Academies of 
     Practice Recognition Act of 2007''.

     SEC. 2. CHARTER.

       The National Academies of Practice organized and 
     incorporated under the laws of the District of Columbia, is 
     hereby recognized as such and is granted a Federal charter.

     SEC. 3. CORPORATE POWERS.

       The National Academies of Practice (referred to in this Act 
     as the ``corporation'') shall have only those powers granted 
     to it through its bylaws and articles of incorporation filed 
     in the State in which it is incorporated and subject to the 
     laws of such State.

     SEC. 4. OBJECTIVES AND PURPOSES OF THE CORPORATION.

       The objectives and purposes for which the corporation is 
     organized shall be provided for in the articles of 
     incorporation and shall include the following:

[[Page 178]]

       (1) Honoring persons who have made significant 
     contributions to the practice of applied dentistry, medicine, 
     nursing, optometry, osteopathy, pharmacy, podiatry, 
     psychology, social work, veterinary medicine, and other 
     health care professions.
       (2) Improving the effectiveness of such professions by 
     disseminating information about new techniques and 
     procedures, promoting interdisciplinary practices, and 
     stimulating multidisciplinary exchange of scientific and 
     professional information.
       (3) Upon request, advising the President, the members of 
     the President's Cabinet, Congress, Federal agencies, and 
     other relevant groups about practitioner issues in health 
     care and health care policy, from a multidisciplinary 
     perspective.

     SEC. 5. SERVICE OF PROCESS.

       With respect to service of process, the corporation shall 
     comply with the laws of the State in which it is incorporated 
     and those States in which it carries on its activities in 
     furtherance of its corporate purposes.

     SEC. 6. MEMBERSHIP.

       Eligibility for membership in the corporation and the 
     rights and privileges of members shall be as provided in the 
     bylaws of the corporation.

     SEC. 7. BOARD OF DIRECTORS; COMPOSITION; RESPONSIBILITIES.

       The composition and the responsibilities of the board of 
     directors of the corporation shall be as provided in the 
     articles of incorporation of the corporation and in 
     conformity with the laws of the State in which it is 
     incorporated.

     SEC. 8. OFFICERS OF THE CORPORATION.

       The officers of the corporation and the election of such 
     officers shall be as provided in the articles of 
     incorporation of the corporation and in conformity with the 
     laws of the State in which it is incorporated.

     SEC. 9. RESTRICTIONS.

       (a) Use of Income and Assets.--No part of the income or 
     assets of the corporation shall inure to any member, officer, 
     or director of the corporation or be distributed to any such 
     person during the life of the charter under this Act. Nothing 
     in this subsection shall be construed to prevent the payment 
     of reasonable compensation to the officers of the corporation 
     or reimbursement for actual necessary expenses in amounts 
     approved by the board of directors.
       (b) Loans.--The corporation shall not make any loan to any 
     officer, director, or employee of the corporation.
       (c) Political Activity.--The corporation, any officer, or 
     any director of the corporation, acting as such officer or 
     director, shall not contribute to, support, or otherwise 
     participate in any political activity or in any manner 
     attempt to influence legislation.
       (d) Issuance of Stock and Payment of Dividends.--The 
     corporation shall have no power to issue any shares of stock 
     nor to declare or pay any dividends.
       (e) Claims of Federal Approval.--The corporation shall not 
     claim congressional approval or Federal Government authority 
     for any of its activities.
       (f) Federal Advisory Activities.--While providing advice to 
     Federal agencies, the corporation shall be subject to the 
     Federal Advisory Committee Act (5 U.S.C. Appendix; 86 stat. 
     700).

     SEC. 10. LIABILITY.

       The corporation shall be liable for the acts of its 
     officers and agents when acting within the scope of their 
     authority.

     SEC. 11. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

       (a) Books and Records of Account.--The corporation shall 
     keep correct and complete books and records of account and 
     shall keep minutes of any proceeding of the corporation 
     involving any of its members, the board of directors, or any 
     committee having authority under the board of directors.
       (b) Names and Addresses of Members.--The corporation shall 
     keep at its principal office a record of the names and 
     addresses of all members having the right to vote in any 
     proceeding of the corporation.
       (c) Right to Inspect Books and Records.--All books and 
     records of the corporation may be inspected by any member 
     having the right to vote, or by any agent or attorney of such 
     member, for any proper purpose, at any reasonable time.
       (d) Application of State Law.--Nothing in this section 
     shall be construed to contravene any applicable State law.

     SEC. 12. ANNUAL REPORT.

       The corporation shall report annually to the Congress 
     concerning the activities of the corporation during the 
     preceding fiscal year. The report shall not be printed as a 
     public document.

     SEC. 13. RESERVATION OF RIGHT TO AMEND OR REPEAL CHARTER.

       The right to alter, amend, or repeal this Act is expressly 
     reserved to Congress.

     SEC. 14. DEFINITION.

       In this Act, the term ``State'' includes the District of 
     Columbia, the Commonwealth of Puerto Rico, and the 
     territories and possessions of the United States.

     SEC. 15. TAX-EXEMPT STATUS.

       The corporation shall maintain its status as an 
     organization exempt from taxation as provided in the Internal 
     Revenue Code of 1986 or any corresponding similar provision.

     SEC. 16. TERMINATION.

       If the corporation fails to comply with any of the 
     restrictions or provisions of this Act the charter granted by 
     this Act shall terminate.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 110. A bill to allow the psychiatric or psychological examinations 
required under chapter 313 of title 18, United States Code, relating to 
offenders with mental disease or defect, to be conducted by a clinical 
social worker; to the Committee on the Judiciary.
  Mr. INOUYE. Mr. President, today I introduce legislation to amend 
Title 18 of the United States Code to allow our Nation's clinical 
social workers to use their mental health expertise on behalf of the 
Federal judiciary by conducting psychological and psychiatric exams.
  I feel that the time has come to allow our Nation's judicial system 
to have access to a wide range of behavioral science and mental health 
expertise. I am confident that the enactment of this legislation would 
be very much in our Nation's best interest.
  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. 110

       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 ``Psychiatric and 
     Psychological Examinations Act of 2007''.

     SEC. 2. EXAMINATIONS BY CLINICAL SOCIAL WORKERS.

       Section 4247(b) of title 18, United States Code, is 
     amended, in the first sentence, by striking ``psychiatrist or 
     psychologist'' and inserting ``psychiatrist, psychologist, or 
     clinical social worker''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 111. A bill to amend title 10, United States Code, to recognize 
the United States Military Cancer Institute as an establishment within 
the Uniformed Services University of the Health Sciences, to require 
the Institute to promote the health of members of the Armed Forces and 
their dependents by enhancing cancer research and treatment, to provide 
for a study of the epidemiological causes of cancer among various 
ethnic groups for cancer prevention and early detection efforts, and 
for other purposes; to the Committee on Armed Services.
  Mr. INOUYE. Mr. President, Today I introduce the United States 
Military Cancer Institute Research Collaborative Act. This legislation, 
twice passed by the Senate yet unsuccessful in the House, would 
formally establish the United States Military Cancer Institute, USMCI, 
and support the collaborative augmentation of research efforts in 
cancer epidemiology, prevention and control. Although the USMCI already 
exists as an informal collaborative effort, this bill will formally 
establish the institution with a mission of providing for the 
maintenance of health in the military by enhancing cancer research and 
treatment, and studying the epidemiological causes of cancer among 
various ethnic groups. By formally establishing the USMCI, it will be 
in a better position to unite military research efforts with other 
cancer research centers.
  Cancer prevention, early detection, and treatment are significant 
issues for the military population, thus the USMCI was organized to 
coordinate the existing military cancer assets. The USMCI has a 
comprehensive database of its beneficiary population of 9 million 
people. The military's nationwide tumor registry, the Automated Central 
Tumor Registry, has acquired more than 180,000 cases in the last 14 
years, and a serum repository of 30 million specimens from military 
personnel collected sequentially since 1987. This population is 
predominantly Caucasian, African-American, and Hispanic.
  The USMCI currently resides in the Washington, D.C., area, and its 
components are located at the National Naval Medical Center, the 
Malcolm Grow Medical Center, the Armed Forces Institute of Pathology, 
and the Armed Forces Radiobiology Research Institute. There are more 
than 70 research workers, both active duty and Department of Defense 
civilian scientists, working in the USMCI.
  The Director of the USMCI, Dr. John Potter, intends to expand 
research activities to military medical centers

[[Page 179]]

across the nation. Special emphasis will be placed on the study of 
genetic and environmental factors in carcinogenesis among the entire 
population, including Asian, Caucasian, African-American and Hispanic 
subpopulations.
  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. 111

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

     SECTION 1. THE UNITED STATES MILITARY CANCER INSTITUTE.

       (a) Establishment.--Chapter 104 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2117. United States Military Cancer Institute

       ``(a) Establishment.--(1) There is a United States Military 
     Cancer Institute in the University. The Director of the 
     United States Military Cancer Institute is the head of the 
     Institute.
       ``(2) The Institute is composed of clinical and basic 
     scientists in the Department of Defense who have an expertise 
     in research, patient care, and education relating to oncology 
     and who meet applicable criteria for participation in the 
     Institute.
       ``(3) The components of the Institute include military 
     treatment and research facilities that meet applicable 
     criteria and are designated as affiliates of the Institute.
       ``(b) Research.--(1) The Director of the United States 
     Military Cancer Institute shall carry out research studies on 
     the following:
       ``(A) The epidemiological features of cancer, including 
     assessments of the carcinogenic effect of genetic and 
     environmental factors, and of disparities in health, inherent 
     or common among populations of various ethnic origins.
       ``(B) The prevention and early detection of cancer.
       ``(C) Basic, translational, and clinical investigation 
     matters relating to the matters described in subparagraphs 
     (A) and (B).
       ``(2) The research studies under paragraph (1) shall 
     include complementary research on oncologic nursing.
       ``(c) Collaborative Research.--The Director of the United 
     States Military Cancer Institute shall carry out the research 
     studies under subsection (b) in collaboration with other 
     cancer research organizations and entities selected by the 
     Institute for purposes of the research studies.
       ``(d) Annual Report.--(1) Promptly after the end of each 
     fiscal year, the Director of the United States Military 
     Cancer Institute shall submit to the President of the 
     University a report on the results of the research studies 
     carried out under subsection (b).
       ``(2) Not later than 60 days after receiving the annual 
     report under paragraph (1), the President of the University 
     shall transmit such report to the Secretary of Defense and to 
     Congress.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2117. United States Military Cancer Institute.''.
                                 ______
                                 
      By Mr. REID (for Mr. Inouye):
  S. 112. A bill to amend title XIX of the Social Security Act to 
provide 100 percent reimbursement for medical assistance provided to a 
Native Hawaiian through a federally-qualified health center or a Native 
Hawaiian health care system; to the Committee on Finance.
  Mr. INOUYE. Mr. President, today I introduce the Native Hawaiian 
Medicaid Coverage Act of 2004. This legislation would authorize a 
Federal Medicaid Assistance Percent, FMAP, of 100 percent for the 
payment of health care costs of Native Hawaiians who receive health 
care from Federally Qualified Health Centers or the Native Hawaiian 
Health Care System.
  This bill was originally a provision within the Medicare Prescription 
Drug Bill, which the Senate passed by an overwhelming majority of 76 to 
21, but was dropped from the final Medicare Prescription Drug 
Conference Report.
  This bill is modeled on the Native Alaskan Health Care Act, which 
provides for a Federal Medicaid Assistance Percent, FMAP, of 100 
percent for payment of health care costs for Native Alaskans by the 
Indian Health Service, an Indian tribe, or a tribal organization.
  Community health centers serve as the ``safety net'' for uninsured 
and medically underserved Native Hawaiians and other United States 
citizens, providing comprehensive primary and preventive health 
services to the entire community. Outpatient services offered to the 
entire family include comprehensive primary care, preventive health 
maintenance, and education outreach in the local community. Community 
health centers, with their multi-disciplinary approach, offer cost 
effective integration of health promotion and wellness with chronic 
disease management and primary care focused on serving vulnerable 
populations.
  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. 112

       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 ``Native Hawaiian Medicaid 
     Coverage Act of 2007''.

     SEC. 2. 100 PERCENT FMAP FOR MEDICAL ASSISTANCE PROVIDED TO A 
                   NATIVE HAWAIIAN THROUGH A FEDERALLY-QUALIFIED 
                   HEALTH CENTER OR A NATIVE HAWAIIAN HEALTH CARE 
                   SYSTEM UNDER THE MEDICAID PROGRAM.

       (a) Medicaid.--The third sentence of section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)) is amended by 
     inserting ``, and with respect to medical assistance provided 
     to a Native Hawaiian (as defined in section 12 of the Native 
     Hawaiian Health Care Improvement Act) through a federally-
     qualified health center or a Native Hawaiian health care 
     system (as so defined) whether directly, by referral, or 
     under contract or other arrangement between a federally-
     qualified health center or a Native Hawaiian health care 
     system and another health care provider'' before the period.
       (b) Effective Date.--The amendment made by this section 
     applies to medical assistance provided on or after the date 
     of enactment of this Act.
                                 ______
                                 
      By Mr. OBAMA (for himself and Ms. Snowe):
  S. 117. A bill to amend titles 10 and 38, United States Code, to 
improve benefits and services for members of the Armed Forces, veterans 
of the Global War on Terrorism, and other veterans, to require reports 
on the effects of the Global War on Terrorism, and for other purposes; 
to the Committee on Veterans' Affairs.
  Mr. OBAMA. Mr. President, I rise today to introduce legislation that 
is significant both in the problems it seeks to address and the man it 
seeks to honor.
  Since the day he arrived in Congress more than two decades ago, Lane 
Evans was a tireless advocate for the men and women with whom he 
served. When Vietnam vets started falling ill from Agent Orange, he led 
the effort to get them compensation. Lane was one of the first in 
Congress to speak out about the health problems facing Persian Gulf War 
veterans. He worked to help veterans suffering from Post-Traumatic 
Stress Disorder, and he also helped make sure thousands of homeless 
veterans in our country have a place to sleep. Lane Evans fought these 
battles for more than 20 years, and even in the face of his own 
debilitating disease, he kept fighting. Today, veterans across America 
have Lane Evans to thank for reminding this country of its duty to take 
care of those who have risked their lives to defend ours.
  I am very proud today to introduce the Lane Evans Veterans Healthcare 
and Benefits Improvement Act of 2007. This bill honors a legislator who 
left behind an enduring legacy of service to our veterans. The 
legislation also is an important step towards caring for our men and 
women who are currently fighting for us.
  I am being joined today by Senator Olympia Snowe, the lead cosponsor 
of this bill. Senator Snowe has long been an advocate for veterans in 
her state, and I have been honored to work with her in the past on 
veterans issues. We have fought to reduce the backlog of disability 
claims at the Veterans Benefits Administration and to improve the 
military's ability to identify and treat Traumatic Brain Injury. Our 
introduction of the Lane Evans Bill is a continuation of these efforts.
  Today, more than 1.5 million American troops have been deployed 
overseas as part of the Global War on Terror. These brave men and women 
who protected us are beginning to return

[[Page 180]]

home. Six hundred thousand people who served in Iraq and Afghanistan 
are now veterans, and more than 185,000 have already received treatment 
at the VA. That number is increasing every day. Many of these fighting 
men and women are coming home with major injuries. As a country, we are 
only beginning to understand the true costs of the Global War on 
Terror.
  The Government Accountability Office reported that VA has faced $3 
billion in budget shortfalls since 2005 because it underestimated the 
costs of caring for Iraq and Afghanistan veterans. The VA wasn't 
getting the information it needed from the Pentagon and was relying on 
outdated data and incorrect forecasting models. We cannot let these 
kind of bureaucratic blunders get in the way of the care and support we 
owe our servicemembers.
  To avoid these costly shortfalls in the future, we have to do a 
better job keeping track of veterans. That's why the first thing the 
Lane Evans Act does is to establish a system to track Global War on 
Terror veterans. The VA established a similar data system following the 
Persian Gulf War. That effort has been invaluable in budget planning as 
well as in monitoring emerging health trends and diseases linked to the 
Gulf War. The Gulf War Veterans Information System also has been 
important to medical research and improved care for veterans. The 
sooner we begin keeping accurate track of our fighting men and women in 
Iraq, Afghanistan and beyond, the better and more efficiently we will 
be able to care for them.
  The Lane Evans Act also tackles Post-Traumatic Stress Disorder. 
Mental health patients account for about one-third of the new veterans 
seeking care at the VA. The VA's National Center for PTSD reports that 
``the wars in Afghanistan and Iraq are the most sustained combat 
operations since the Vietnam War, and initial signs imply that these 
ongoing wars are likely to produce a new generation of veterans with 
chronic mental health problems.''
  This bill addresses PTSD in two ways. First, it extends the window 
during which new veterans can automatically get care for mental health 
from two years to five years. Right now, any servicemember discharged 
from the military has up to two years to walk into a VA facility and 
get care, no questions asked. After that, vets have to prove that they 
are disabled because of a service-connected injury, or they have to 
prove their income is below threshold levels. Unfortunately, it can 
take years for symptoms of PTSD to manifest. The time it takes to prove 
service-connection for mental health illness is valuable time lost 
during which veterans are not receiving critically needed treatment. 
The Lane Evans Act allows veterans to walk into a VA facility any time 
five years after discharge and get assessed for mental health care. 
This both extends the window and shortens the wait for vets to get 
care.
  Second, the legislation makes face-to-face physical and mental health 
screening mandatory 30 to 90 days after a soldier is deployed in a war 
zone. This will ensure that our fighting force is ready for battle, and 
that we can identify and treat those at risk for PTSD. By making the 
exams mandatory, we can help eliminate the stigma associated with 
mental health screening and treatment.
  Another problem veterans face is that the VA and DoD do not 
effectively share medical and military records. Older veterans often 
have to wait years for their benefits as the Department of Defense 
recovers aging and lost paper records. Under the Lane Evans Act, the 
Department of Defense would provide each separating service member at 
the time of discharge with a secure full electronic copy of all 
military and medical records to help them apply for healthcare and 
benefits. DoD possesses the technology to do this now. The information 
could be useful to VA to quickly and accurately document receipt of 
vaccinations or deployment to a war zone. The electronic data will also 
be helpful in future generations when family members of veterans seek 
information about military service, awards, and wartime deployment that 
go well beyond the existing single-sheet DD-214 discharge certificate, 
which is all veterans currently receive.
  Finally, the legislation improves the transition assistance that 
National Guardsmen and military reservists receive when they return 
from deployment. A 2005 GAO report found that because demobilization 
for guardsmen and reservists is accelerated, reserve units get 
abbreviated and perfunctory transition assistance including limited 
employment training. VA should provide equal briefings and transition 
services for all service members regarding VA healthcare, disability 
compensation, and other benefits, regardless of their duty status.
  Lane Evans dedicated his life to serving this country and serving 
veterans. The legislation Senator Snowe and I are introducing today, 
honors both the man and his mission, and will continue his legacy to 
the next generation of American veterans.
  Ms. SNOWE. Mr. President, I rise today as a proud cosponsor of S. 
3988, the Lane Evans Veterans Healthcare and Benefits Improvement Act 
of 2007. After serving with Lane Evans in the House of Representatives 
for over a decade, I am honored to help introduce legislation that 
serves as a fitting tribute to a man whose unfaltering efforts on 
behalf of our nation's veterans went unmatched.
  I also applaud Senator Obama for introducing this vital legislation 
at a time when over 600,000 courageous men and women have returned from 
combat in both Iraq and Afghanistan. In the past, Senator Obama and I 
have worked in a bipartisan manner to bolster the military's ability to 
detect and treat traumatic brain injury, and most recently, we have 
fought to reduce the backlog of claims at the Veterans Benefits 
Administration, VBA. Once again, I thank Senator Obama for his 
continuing resoluteness and advocacy for our veterans.
  Since the beginning of conflicts in Iraq and Afghanistan, nearly 1.5 
million brave Americans have deployed overseas to take part in the 
global war on terror. Of those 1.5 million Americans, at least 184,400 
have already received medical treatment from the Department of Veterans 
Affairs, VA. It is time the VA and the Department of Defense, DOD, have 
the capability to provide incoming veterans with timely and efficient 
medical treatment and postdeployment services. For too long now, 
provision of these critical services has been hampered by a lack of 
resources and policy restructuring.
  In 2005, the Government Accountability Office revealed that the VA 
faced a budget shortfall of $3 billion, due to the agency's inability 
to correctly gauge the benefits for Iraq and Afghanistan veterans. As a 
result of spending shortfalls, the VA was forced to dip into 
contingency funds that could have compromised the funding for other 
vital veterans programs. In order to remedy these unacceptable 
deficiencies within the veterans' benefit system, this legislation will 
significantly enhance the ability of the DOD and the VA to accurately 
track veterans of Iraq and Afghanistan, by creating a data registry 
that will hold a comprehensive list of VA health care and benefits use. 
I remind my colleagues that a similar data system was established in 
1998 for Gulf War I Veterans, and has been invaluable in assessing the 
necessary budgetary planning for our injured veterans from that 
conflict.
  However, not all combat wounds are caused by bullets and shrapnel. 
Several studies have indicated that due to the nature of warfare in 
Iraq--with its intense urban fighting, terrorism and civilian combat--
may cause a spike in the prevalence of post traumatic stress disorder, 
PTSD. According to the Veterans' Health Administration, as of October 
2006, of the 184,524 Operation Enduring Freedom and Operation Iraqi 
Freedom veterans who have sought care from the VA, 29,041 have been 
diagnosed as having probable symptoms of PTSD.
  I strongly believe that we have a commitment to ensure that veterans 
with PTSD receive compassionate, world-class health care and 
appropriate disability compensation determinations. It is imperative 
that we do all we can to detect, diagnose, and treat our

[[Page 181]]

veterans suffering from PTSD as quickly as possible, in order to help 
our veterans and their families move beyond the psychological trauma of 
war and lead healthy, productive lives.
  This legislation's proposed data registry will further assist the VA 
with ongoing medical research into mental health, traumatic brain 
injury, and many other conditions. This legislation will also require 
the Department of Defense to conduct in-person physical and mental 
health exams with every service member 30 to 90 days after deployment 
to war zone, in order to ensure that potential cases of PTSD are 
identified and treated in a timely manner. By making the exams 
mandatory, the stigma associated with mental health screening and 
treatment can be eliminated. Additionally, multiple deployments to 
combat zones may factor into a higher susceptibility to PTSD, stressing 
the necessity for mental screening prior to redeployment, in order to 
ensure that no servicemember experiencing symptoms of PTSD is returned 
to duty without treatment. If the VA and the DOD continues its current 
mental health screening policy, nondisclosures of PTSD symptoms will 
continue to deter early intervention and future VA mental health 
services.
  This legislation addresses the difficulties associated with PTSD 
symptoms that develop over prolonged periods of time. Currently, the 
window for new veterans to obtain health care at the VA is 2 years. 
However, in many circumstances, it takes years for PTSD symptoms and 
other problems related to mental health to emerge. Therefore, this 
legislation will extend the window for VA mental health care from 2 
years to 5 years, ensuring the necessary mental health treatment for 
all veterans who are struggling to recover from the traumas of war.
  Further, this legislation will take large steps towards improving the 
transfer of military and medical records in order for veterans to 
receive the health care and benefits they deserve. This bill requires 
DOD to provide each separating service member a full electronic copy of 
all military and medical records at the time of discharge. By 
facilitating the enhanced use of electronic records, veterans will be 
assured the proper access and management of their required care. 
Currently, a lack of swift access to military records and medical 
records has hampered the VA's ability to treat veterans in need of care 
in a timely and effective manner.
  According to a December 2006 GAO report, while verifying veterans 
claims of PTSD, regional VA offices are unable to directly access and 
search an electronic library of medical and service records for all 
service branches, and therefore, must rely on a DOD research 
organization, whose average response time to regional office requests 
is nearly 1 year. Clearly, such a processing delay is not only 
inexcusable, it is potentially harmful to the veteran and his or her 
family. Increased access to electronic records will allow the VA to 
quickly identify the occurrence of stressful events or experiences that 
may lead to the necessary treatment for PTSD.
  Finally, this legislation will also require the VA to provide equal 
briefings and transition services for all service members regarding VA 
health care, disability compensation, and other benefits, regardless of 
status. Often times, guardsmen and reservists receive limited 
transition assistance and employment training, largely due to their 
accelerated demobilization. Thus, this legislation will provide 
equitable and fair transition services for all returning veterans, 
regardless of their service branch, component or military status.
  I have nothing but the utmost respect for those brave Americans who 
served in uniform with honor, courage, and distinction. The obligation 
our nation holds for its veterans is enormous, and it is an obligation 
that must be fulfilled every day. Since the attacks of September 11, 
millions of brave American men and women have answered our nation's 
call to service. Congress must now do everything in its power to answer 
our veterans' call, to ensure that they receive the medical care and 
treatment that they rightly earned and rightly deserve.
  Once again, I am pleased to join Senator Obama in introducing S. 988, 
because I believe it is crucial to the welfare of our Nation's 
veterans, and I urge my colleagues to voice their support.
                                 ______
                                 
      By Mr. LEAHY (for himself and Mr. Pryor):
  S. 118. A bill to give investigators and prosecutors the tools they 
need to combat public corruption; to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, I am pleased to join with Senator Pryor to 
introduce the ``Effective Corruption Prosecutions Act of 2007,'' a bill 
to strengthen the tools available to Federal prosecutors in combating 
public corruption. This bill gives investigators and prosecutors the 
statutory tools and the resources they need to ensure that serious and 
insidious public corruption is detected and punished.
  In November, voters sent a strong message that they were tired of the 
culture of corruption. From war profiteers and corrupt officials in 
Iraq to convicted Administration officials to influence-peddling 
lobbyists and, regrettably, even Members of Congress, too many supposed 
public servants were serving their own interests, rather than the 
public interest. The American people staged an intervention and made it 
clear that they would not stand for it any longer. They expect the 
Congress to take action. We need to restore the people's trust by 
acting to clean up the people's government.
  The Senate's new leadership is introducing important lobbying reform 
and ethics legislation. Similar legislation passed the Senate last 
year, but stalled in the House. This is a vital first step.
  But the most serious corruption cannot be prevented only by changing 
our own rules. Bribery and extortion are committed by people bent on 
getting around the rules and banking that they won't get caught. These 
offenses are very difficult to detect and even harder to prove. Because 
they attack the core of our democracy, these offenses must be found out 
and punished. Congress must send a signal that it will not tolerate 
this corruption by providing better tools for federal prosecutors to 
combat it. This bill will do exactly that.
  First, the bill extends the statute of limitations for the most 
serious public corruption offenses. Specifically, it extends the 
statute of limitations from five years to eight years for bribery, 
deprivation of honest services, and extortion by a public official. 
This is an important step because public corruption cases are among the 
most difficult and time-consuming cases to investigate and prosecute. 
They often require use of informants and electronic monitoring, as well 
as review of extensive financial and electronic records, techniques 
which take time to develop and implement.
  Bank fraud, arson, and passport fraud, among other offenses, all have 
10-year statutes of limitations. Since public corruption offenses are 
so important to our democracy and these cases are so difficult to 
investigate and prove, a more modest extended statute of limitations 
for these offenses is a reasonable step to help our corruption 
investigators and prosecutors do their jobs. Corrupt officials should 
not be able to get away with their ill gotten gains just by waiting out 
the investigators.
  This bill also facilitates the investigation and prosecution of an 
important offense known as Federal program bribery, Title 18, United 
States Code, section 666. Federal program bribery is the key Federal 
statute for prosecuting bribery involving state and local officials, as 
well as officials of the many organizations that receive substantial 
Federal money. This bill would allow agents and prosecutors 
investigating this important offense to request authority to conduct 
wiretaps and to use Federal program bribery as a basis for a 
racketeering charge.
  Wiretaps, when appropriately requested and authorized, are an 
important method for agents and prosecutors to gain evidence of corrupt 
activities, which can otherwise be next to impossible to prove without 
an informant.

[[Page 182]]

The Racketeer Influenced and Corrupt Organizations (RICO) statute is 
also an important tool which helps prosecutors target organized crime 
and corruption.
  Agents and prosecutors may currently request authority to conduct 
wiretaps to investigate many serious offenses, including bribery of 
federal officials and even sports bribery, and may predicate RICO 
charges on these offenses, as well. It is only reasonable that these 
important tools also be available for investigating the similar and 
equally important offense of federal program bribery.
  Lastly, my bill authorizes $25 million in additional Federal funds 
over each of the next four years to give federal investigators and 
prosecutors needed resources to go after public corruption. Last month, 
FBI Director Mueller in written testimony to the Judiciary Committee 
called public corruption the FBI's top criminal investigative priority. 
However, a September 2005 Report by Department of Justice Inspector 
General Fine found that, from 2000 to 2004, there was an overall 
reduction in public corruption matters handled by the FBI. The report 
also found declines in resources dedicated to investigating public 
corruption, in corruption cases initiated, and in cases forwarded to US 
Attorney's Offices.
  I am heartened by Director Mueller's assertion that there has 
recently been an increase in the number of agents investigating public 
corruption cases and the number of cases investigated, but I remain 
concerned by the Inspector General's findings. I am concerned because 
the FBI in recent years has diverted resources away from criminal law 
priorities, including corruption, into counterterrorism. The FBI may 
need to divert further resources to cover the growing costs of 
Sentinel, their data management system. The Department of Justice has 
similarly diverted resources, particularly from United States 
Attorney's Offices.
  Additional funding is important to compensate for this diversion of 
resources and to ensure that corruption offenses are aggressively 
pursued. My bill will give the FBI, the United States Attorney's 
Offices, and the Public Integrity Section of the Department of Justice 
new resources to hire additional public corruption investigators and 
prosecutors. They can finally have the manpower they need to track down 
and make these difficult cases, and to root out the corruption.
  If we are serious about addressing the egregious misconduct that we 
have recently witnessed, Congress must enact meaningful legislation to 
give investigators and prosecutors the resources they need to enforce 
our public corruption laws. I strongly urge Congress to do more to 
restore the public's trust in their government.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 118

       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 ``Effective Corruption 
     Prosecutions Act of 2007''.

     SEC. 2. EXTENSION OF STATUTE OF LIMITATIONS FOR SERIOUS 
                   PUBLIC CORRUPTION OFFENSES.

       (a) In General.--Chapter 213 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 3299. Corruption offenses

       ``Unless an indictment is returned or the information is 
     filed against a person within 8 years after the commission of 
     the offense, a person may not be prosecuted, tried, or 
     punished for a violation of, or a conspiracy or an attempt to 
     violate the offense in--
       ``(1) section 201 or 666;
       ``(2) section 1341, 1343, or 1346, if the offense involves 
     a scheme or artifice to deprive another of the intangible 
     right of honest services of a public official;
       ``(3) section 1951, if the offense involves extortion under 
     color of official right;
       ``(4) section 1952, to the extent that the unlawful 
     activity involves bribery; or
       ``(5) section 1963, to the extent that the racketeering 
     activity involves bribery chargeable under State law, or 
     involves a violation of section 201 or 666.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 213 of title 18, United States Code, is 
     amended by adding at the end the following:

``3299. Corruption offenses.''.

       (c) Application of Amendment.--The amendments made by this 
     section shall not apply to any offense committed more than 5 
     years before the date of enactment of this Act.

     SEC. 3. INCLUSION OF FEDERAL PROGRAM BRIBERY AS A PREDICATE 
                   FOR INTERCEPTION OF WIRE, ORAL OR ELECTRONIC 
                   COMMUNICATIONS AND AS A PREDICATE FOR A 
                   RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS 
                   OFFENSE.

       (a) In General.--Section 2516(c) of title 18, United States 
     Code, is amended by adding after ``section 224 (bribery in 
     sporting contests),'' the following: ``section 666 (theft or 
     bribery concerning programs receiving Federal funds),''.
       (b) In General.--Section 1961 of title 18, United States 
     Code, is amended by adding after ``section 664 (relating to 
     embezzlement from pension and welfare funds),'' the 
     following: ``section 666 (relating to theft or bribery 
     concerning programs receiving Federal funds),''.

     SEC. 4. AUTHORIZATION FOR ADDITIONAL PERSONNEL TO INVESTIGATE 
                   AND PROSECUTE PUBLIC CORRUPTION OFFENSES.

       There are authorized to be appropriated to the Department 
     of Justice, including the United States Attorneys' Offices, 
     the Federal Bureau of Investigation, and the Public Integrity 
     Section of the Criminal Division, $25,000,000 for each of the 
     fiscal years 2008, 2009, 2010, and 2011, to increase the 
     number of personnel to investigate and prosecute public 
     corruption offenses including sections 201, 203 through 209, 
     641, 654, 666, 1001, 1341, 1343, 1346, and 1951 of title 18, 
     United States Code.
                                 ______
                                 
      By Mr. LEAHY (for himself, Mr. Bingaman, Mr. Harkin, Mr. Kerry, 
        Mr. Lautenberg, Mr. Rockefeller, Mr. Dorgan, Mr. Schumer, Mr. 
        Wyden, Ms. Cantwell, Mrs. Clinton, Mr. Menendez, and Mr. Nelson 
        of Florida):
  S. 119. A bill to prohibit profiteering and fraud relating to 
military action, relief, and reconstruction efforts, and for other 
purposes; to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, today I am reintroducing a bill that 
creates criminal penalties for war profiteers and cheats who would 
exploit taxpayer-funded efforts in Iraq and elsewhere around the world. 
Last year, despite the mounting evidence of widespread contractor fraud 
and abuse in Iraq, the Republican-controlled Senate would not act on 
it. Instead, the Congress took a terrible misstep in seeking to end the 
work of the Special Inspector General for Iraq Reconstruction. I have 
been proposing versions of this bill since 2003, when it did pass the 
Senate. Unfortunately, this crucial provision was stripped out of the 
final version of a bill by a Republican-controlled conference 
committee.
  There is growing evidence of widespread contractor fraud in Iraq, yet 
prosecuting criminal cases against these war profiteers is difficult 
under current law. We must crack down on this rampant fraud and abuse 
that squanders American taxpayers' dollars and jeopardizes the safety 
of our troops abroad. That is why I renew my efforts for accountability 
and action with the introduction of the War Profiteering Prevention Act 
of 2007. I am pleased to join with Senators Bingaman, Kerry, Harkin, 
Rockefeller, Dorgan, Wyden, Schumer, Cantwell, Bill Nelson, Clinton, 
Lautenberg and Menendez to introduce this legislation.
  Congress has sent billions upon billions of dollars to Iraq with too 
little accountability and too few financial controls. More than $50 
billion of this money has gone to private contractors hired to guard 
bases, drive trucks, feed and shelter the troops and rebuild the 
country. This is more than the annual budget of the Department of 
Homeland Security.
  Instead of results from these companies, we are seeing penalties 
levied for allegations of fraud and abuse. At least 10 companies with 
billions of dollars in U.S. contracts for Iraq reconstruction have paid 
more than $300 million in penalties since 2000, to resolve allegations 
of bid rigging, fraud, delivery of faulty military parts and 
environmental damage. Seven other companies with Iraq reconstruction 
contracts have agreed to pay financial penalties without admitting 
wrongdoing.
  In 2005, Halliburton took in approximately $3.6 billion from 
contracts to serve U.S. troops and rebuild the oil industry in Iraq. 
Halliburton executives say that the company received about $1

[[Page 183]]

billion a month for Iraq work in 2006. In addition, last month, we 
learned of new plans to spend hundreds of millions more to create jobs 
in Iraq.
  Last year, the Special Inspector General for Iraq Reconstruction 
found that millions of U.S. taxpayer funds appropriated for Iraq 
reconstruction have been lost and diverted. Yet we continue to send 
more taxpayer funds to Iraq, without accountability.
  Too much of this money is unaccounted for, and many of the facilities 
and services that these funds were supposed to pay for are still 
nonexistent. We in Congress must ask--where did all the money go? We 
need to press for more accountability over the use and abuse of 
billions of taxpayers' dollars sent as development aid to Iraq, not 
less.
  A new law to combat war profiteering in Iraq and elsewhere is sorely 
needed and long overdue. Although there are anti-fraud laws to protect 
against the waste of U.S. tax dollars at home, no law expressly 
prohibits war profiteering or expressly confers jurisdiction on U.S. 
federal courts to hear fraud cases involving war profiteering committed 
overseas.
  The bill I introduced today would criminalize ``war profiteering''--
overcharging taxpayers in order to defraud and to profit excessively 
from a war, military action, or reconstruction efforts. It would also 
prohibit any fraud against the United States involving a contract for 
the provision of goods or services in connection with a war, military 
action, or for relief or reconstruction activities. This new crime 
would be a felony, subject to criminal penalties of up to 20 years in 
prison and fines of up to $1 million, or twice the illegal gross 
profits of the crime.
  The bill also prohibits false statements connected with the provision 
of goods or services in connection with a war or reconstruction effort. 
This crime would also be a felony, subject to criminal penalties of up 
to 10 years in prison and fines of up to $1 million, or twice the 
illegal gross profits of the crime.
  The measure also addresses weakness in the existing laws used to 
combat war profiteering, by providing clear authority for the 
Government to seek criminal penalties and to recover excessive profits 
for war profiteering overseas. These are strong and focused sanctions 
that are narrowly tailored to punish and deter fraud or excessive 
profiteering in contracts, both at home and abroad.
  The message sent by this bill is clear--any act to exploit the crisis 
situation in Iraq or elsewhere overseas for exorbitant gain is 
unacceptable, reprehensible, and criminal. Such deceit demeans and 
exploits the sacrifices that our military personnel are making in Iraq 
and Afghanistan, and around the world. This bill also builds on a 
strong legacy of historical efforts to stem war profiteering. Congress 
implemented excessive-profits taxes and contract renegotiation laws 
after both World Wars, and again after the Korean War. Advocating 
exactly such an approach, President Roosevelt once declared it our duty 
to ensure that ``a few do not gain from the sacrifices of the many.''
  Our Government cannot in good faith ask its people to sacrifice for 
reconstruction efforts that allow some to profit unfairly. When U.S. 
taxpayers have been called upon to bear the burden of reconstruction 
contracts--where contracts are awarded in a system that offers little 
competition and even less accountability--concerns about wartime 
profiteering are a grave matter.
  Combating war profiteering is not a Democratic issue, or a Republican 
issue. Rather, it is a cause that all Americans can support. When I 
first introduced this bill in 2003, it came to be cosponsored by 21 
Senators. The Senate Appropriations Committee also unanimously accepted 
these provisions during a Senate Appropriations Committee markup of the 
$87 billion appropriations bill for Iraq and Afghanistan for Fiscal 
Year 2004, and this provision passed the Senate. Passing bipartisan war 
profiteering prevention legislation was the right thing to do then, and 
it is the right thing to do now.
  I am hopeful that in a new year, and with a new Congress, we can make 
a fresh start and forge a bipartisan partnership on this important 
issue that will result in passage of this bill. I ask unanimous consent 
that a copy of the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 119

       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 ``War Profiteering Prevention 
     Act of 2007''.

     SEC. 2. PROHIBITION OF PROFITEERING.

       (a) Prohibition.--
       (1) In general.--Chapter 47 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1039. War profiteering and fraud relating to military 
       action, relief, and reconstruction efforts

       ``(a) Prohibition.--
       ``(1) In general.--Whoever, in any matter involving a 
     contract or the provision of goods or services, directly or 
     indirectly, in connection with a war, military action, or 
     relief or reconstruction activities within the jurisdiction 
     of the United States Government, knowingly and willfully--
       ``(A)(i) executes or attempts to execute a scheme or 
     artifice to defraud the United States; or
       ``(ii) materially overvalues any good or service with the 
     specific intent to defraud and excessively profit from the 
     war, military action, or relief or reconstruction activities;
     shall be fined under paragraph (2), imprisoned not more than 
     20 years, or both; or
       ``(B)(i) falsifies, conceals, or covers up by any trick, 
     scheme, or device a material fact;
       ``(ii) makes any materially false, fictitious, or 
     fraudulent statements or representations; or
       ``(iii) makes or uses any materially false writing or 
     document knowing the same to contain any materially false, 
     fictitious or fraudulent statement or entry;
     shall be fined under paragraph (2) imprisoned not more than 
     10 years, or both.
       ``(2) Fine.--A person convicted of an offense under 
     paragraph (1) may be fined the greater of--
       ``(A) $1,000,000; or
       ``(B) if such person derives profits or other proceeds from 
     the offense, not more than twice the gross profits or other 
     proceeds.
       ``(b) Extraterritorial Jurisdiction.--There is 
     extraterritorial Federal jurisdiction over an offense under 
     this section.
       ``(c) Venue.--A prosecution for an offense under this 
     section may be brought--
       ``(1) as authorized by chapter 211 of this title;
       ``(2) in any district where any act in furtherance of the 
     offense took place; or
       ``(3) in any district where any party to the contract or 
     provider of goods or services is located.''.
       (2) Table of sections.--The table of sections for chapter 
     47 of title 18, United States Code, is amended by adding at 
     the end the following:

``1039. War profiteering and fraud relating to military action, relief, 
              and reconstruction efforts.''.

       (b) Civil Forfeiture.--Section 981(a)(1)(C) of title 18, 
     United States Code, is amended by inserting ``1039,'' after 
     ``1032,''.
       (c) Criminal Forfeiture.--Section 982(a)(2)(B) of title 18, 
     United States Code, is amended by striking ``or 1030'' and 
     inserting ``1030, or 1039''.
       (d) RICO.--Section 1956(c)(7)(D) of title 18, United States 
     Code, is amended by inserting the following: ``, section 1039 
     (relating to war profiteering and fraud relating to military 
     action, relief, and reconstruction efforts)'' after 
     ``liquidating agent of financial institution),''.
                                 ______
                                 
      By Mr. BAUCUS (for himself and Mr. Coleman):
  S. 122. A bill to amend the Trade Act of 1974 to extend benefits to 
service sector workers and firms, enhance certain trade adjustment 
assistance authorities, and for other purposes; to the Committee on 
Finance.
  Mr. BAUCUS. Mr. President, I am pleased today to introduce the Trade 
Adjustment Assistance Improvement Act of 2007 with my good friend and 
colleague, Senator Norm Coleman.
  In 2006, the United States passed, signed or concluded no fewer than 
five new free trade agreements. This June, the President's authority to 
negotiate trade agreements will expire. Congress should extend the 
President's authority to negotiate these deals. But when we do, we must 
raise the bar higher than before. Each deal must surpass the last, in 
order to take advantage of and adjust to changes in the global 
marketplace that affect American businesses and workers.
  Congress will consider these agreements on their merits. In most 
cases, these deals will mean more access for

[[Page 184]]

American producers and service providers. In some few cases, these 
agreements could mean more and fiercer competition for producers and 
providers here at home.
  Competition is the engine that drives market economies like ours. It 
spawns innovation and creates new jobs. But just as jobs are created in 
new sectors of our economy, jobs are also lost in other sectors which 
experience sudden or unfair competition from abroad.
  Whether and how effectively we help those firms and workers who feel 
the negative effects of our national trade policy will, in large part, 
determine whether and how effectively we can move a trade agenda 
forward this year.
  During the last several Congresses, we have experienced unprecedented 
change in the global marketplace and in our labor market at home. I 
have worked to raise the bar on our efforts to help workers affected by 
these changes. Today, I propose again, more urgently than ever, that 
Congress and the administration work together to adapt our national 
worker adjustment strategies to the challenges of globalization. The 
Trade Adjustment Assistance Improvement Act is a first and necessary 
step in that direction.
  The Trade Adjustment Assistance Improvement Act includes many 
proposals that Congress should consider before the program expires this 
September. The Act extends coverage to more of the workers who are 
affected by trade and globalization. And the Act will improve the 
overall efficiency and effectiveness of the program.
  For more than a century, the manufacturing sector drove the American 
economy. So, when President Kennedy decided to open the American 
economy to more trade, he established the Trade Adjustment Assistance 
program to help workers in the manufacturing sector adjust to change.
  Today, our economy depends upon service exports. More than 75 percent 
of the American labor force work in services. While many service sector 
jobs cannot be outsourced, technology change makes it possible to 
provide many services remotely, in such fields as accounting, 
healthcare, and computers and information technology. So when a large 
call center left Kalispell, Montana, three years ago for Canada, the 
Montana workers left behind did not have access to the same benefits 
that workers laid off from the Columbia Falls Aluminum manufacturing 
plant did. They should have.
  Last year, the Department of Labor agreed, for the first time ever, 
that workers who produce software, an intangible product, should be 
eligible for Trade Adjustment Assistance. That was a step in the right 
direction. We should take the next step this year. We should finally 
extend coverage to American service workers. That is what my bill 
proposes.
  Trade Adjustment Assistance certification takes place on a case-by-
case, plant-by-plant basis. This means that while two factories 
producing the same products may both experience foreign competition 
that leads to layoffs, often only one of those factories' laid off 
workers gets certified as eligible for the program.
  Consider the softwood lumber industry. At least 12 out of 35 Trade 
Adjustment Assistance petitions filed by workers in Montana's softwood 
lumber industry over the last 7 years were denied by the Department of 
Labor. Yet, all of these mills were similarly affected by the same 
market conditions--dumped and subsidized Canadian imports. The 
International Trade Commission found that Canadian imports injured or 
threatened to injury the softwood lumber industry on a national scale.
  But the Department of Labor's certification process does not take 
into account the bigger--and often more meaningful--picture. It simply 
relies on data provided by individual companies that lay off the 
workers to make its case-by-case determination.
  The legislation that I introduce today makes industry-wide 
certification automatic for workers anywhere in the United States if 
the President, the International Trade Commission, or another qualified 
Federal agency determines that imports are harming that industry. My 
bill also authorizes, but does not require, the Secretary of Labor to 
make industry-wide determinations if she receives three or more 
petitions in one industry within one 6-month period, or if the Senate 
Finance Committee and the House Ways and Means Committee pass a 
resolution requesting such an investigation.
  We can anticipate and in some cases even prevent displacements by 
renewing and expanding our commitment to small and medium-sized 
American companies looking to recapture their competitive edge. One 
key, yet small program that can help prevent displacements and shifts 
in production to overseas is the TAA for Firms program in the 
Department of Commerce. The Firms program reaches out to companies that 
have experienced decreasing sales or production due to import 
competition and have laid off or expect to lay off workers.
  This program is chronically under-funded, and it should also be 
available to service sector firms. This bill would authorize $50 
million for this program to reach more small- and medium-sized 
businesses across the nation before they are forced to lay off their 
American workers and close their doors.
  This bill also moves the Firms program from the Economic Development 
Administration at Commerce back into the International Trade 
Administration. That's where it was previously. And frankly that's 
where it ought to have remained. Despite the Firms program's proven 
track record, proposals related to the program under the Economic 
Development Administration have sought to either defund the program 
altogether, or to limit eligibility by increasing the profit-loss 
margin required for participation and arbitrary termination of firms 
after 2 years. The Firms program is a trade program and should be 
administered by an agency whose primary mission is to help American 
companies to adjust to and benefit from trade.
  In 2002, with the passage of the Trade Adjustment Assistance Reform 
Act, I had great expectations for our first wage insurance 
demonstration project. In theory, wage insurance--or Alternative Trade 
Adjustment Assistance--encourages swift re-entry into the workforce by 
replacing a portion of a worker's lost wages when a worker accepts a 
lower paying job within 6 months of a layoff. Workers who choose wage 
insurance over traditional Trade Adjustment Assistance training and 
income assistance often have less access to good training or simply 
cannot afford to be out of work during their training. Wage insurance 
provides an incentive for employers to hire lower-skilled and older 
workers and train them on the job.
  In practice, I have been disappointed with the Department of Labor's 
implementation of the wage insurance proposal that we crafted in 2002. 
In a 2004 review by the Government Accountability Office, the 
Department of Labor's implementation of the benefit came up far short 
of the mark. Last year, the Government Accountability Office once again 
found that the Department needed to improve its implementation, 
focusing specifically on its outreach to and direction of state 
employment service offices.
  I hope to work with the Department of Labor on strategies that will 
improve its outreach. Wage insurance can help put people back to work, 
and can even save money over traditional Trade Adjustment Assistance. 
But it cannot do either of those things if no one knows about the 
benefit.
  This bill streamlines the process to qualify for wage insurance, and 
lowers the eligible age from 50 to 40. Wage replacement should be 
available to younger workers who would re-enter the workforce more 
quickly if they could afford the often steep wage cut.
  Another key component of the Trade Adjustment Assistance Reform Act 
was the health care tax credit to help displaced workers and some 
retirees maintain access to health insurance coverage. As health costs 
grow, losing health insurance can be as financially devastating to 
workers as losing a job. While I still believe that the TAA health care 
tax credit holds promise, this is clearly an area where reforms are 
needed to help the credit achieve its purpose.

[[Page 185]]

  Today, the TAA health care tax credit helps only a fraction of the 
hundreds of thousands eligible for assistance. In its first 2 years, 
less than 6 percent of eligible workers and retirees enrolled. A GAO 
report released last year studying five major plant closings in 2003 
and 2004 found that only 3 to 12 percent of eligible workers enrolled. 
More than half of the workers studied didn't sign up for the tax credit 
because the 65 percent subsidy was too low to make health coverage 
affordable.
  The tax credit also suffers from complexity and administrative red 
tape. More than half of eligible workers in GAO's recent study didn't 
even know about the benefit. About a third of workers who knew about 
the benefit decided not to enroll because it was too confusing. Even 
those who understand it have to navigate complex rules and requirements 
to get the benefit.
  We need to make this program simpler, more affordable, and more 
seamless so that more workers can take it up in the years ahead. We 
need to improve the information that workers and retirees get about the 
program and create systems to ensure that they get it. We need to cut 
down on the red tape. And we need to look at options to make this 
benefit more affordable so that we can truly reach the hundreds of 
thousands eligible for this benefit that Congress intended to help when 
we enacted these reforms 4 years ago. I plan to introduce a bill later 
in the year that will achieve these goals for reforming the health care 
tax credit and will look forward to working with Senator Coleman and 
other colleagues in this effort.
  The forces of globalization, like trade and technology change, have 
created tremendous opportunities for American businesses and workers, 
from cutting the cost of living to increasing the margin of profit. 
Trade accounts for a quarter of our gross domestic product. The 
adjustments we have made to maximize trade's benefits save the average 
American household $9,000 annually.
  But we must also make adjustments to respond to the challenges that 
come with globalization. American businesses in the 21st century face 
rapidly-changing consumer preferences and ever-swifter technological 
advances. Global competition is fierce. Innovation is the key to these 
companies' continued prosperity.
  The same holds true for American workers. They know that they must 
adjust to changes in the labor market if they are to maintain their 
place in it. Workers must be prepared for one or more career shifts 
before retirement. They must acquire more skills, and refresh their 
skills more often.
  We can help American companies adapt, and regain their competitive 
edge in the global marketplace. We can help more trade-displaced 
workers get back into the workforce. We should help these workers adapt 
not only to trade displacement, but to all the other aspects of 
globalization as well.
  American workers and the companies that employ them must each 
continually adjust to a changing world marketplace. So too should our 
worker adjustment strategies.
  Mr. President, I ask unanimous consent that the full text of the bill 
be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 122

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Trade 
     Adjustment Assistance Improvement Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

        TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR SERVICES SECTOR

Sec. 101. Short title.
Sec. 102. Extension of trade adjustment assistance to services sector.
Sec. 103. Trade adjustment assistance for firms and industries.
Sec. 104. Monitoring and reporting.
Sec. 105. Effective date.

          TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR INDUSTRIES

Sec. 201. Other methods of requesting investigation.
Sec. 202. Notification.
Sec. 203. Industry-wide determination.
Sec. 204. Coordination with other trade provisions.
Sec. 205. Regulations.

          TITLE III--OTHER TRADE ADJUSTMENT ASSISTANCE MATTERS

                Subtitle A--Trade Adjustment Assistance

Sec. 301. Calculation of separation tolled during litigation.
Sec. 302. Establishment of Trade Adjustment Assistance Advisor.
Sec. 303. Office of Trade Adjustment Assistance.
Sec. 304. Certification of submissions.
Sec. 305. Wage insurance.
Sec. 306. Training.
Sec. 307. Funding for administrative costs.
Sec. 308. Authorization of appropriations.

                      Subtitle B--Data Collection

Sec. 311. Short title.
Sec. 312. Data collection; information to workers.
Sec. 313. Determinations by the Secretary of Labor.

          Subtitle C--Trade Adjustment Assistance for Farmers

Sec. 321. Clarification of marketing year and other provisions.
Sec. 322. Eligibility.

        TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR SERVICES SECTOR

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Trade Adjustment 
     Assistance Equity for Service Workers Act of 2007''.

     SEC. 102. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO 
                   SERVICES SECTOR.

       (a) Adjustment Assistance for Workers.--Section 
     221(a)(1)(A) of the Trade Act of 1974 (19 U.S.C. 
     2271(a)(1)(A)) is amended by striking ``firm)'' and inserting 
     ``firm, and workers in a service sector firm or subdivision 
     of a service sector firm, or public agency)''.
       (b) Group Eligibility Requirements; Service Workers; Shifts 
     in Production.--Section 222 of the Trade Act of 1974 (19 
     U.S.C. 2272) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``agricultural firm)'' and inserting ``agricultural firm, and 
     workers in a service sector firm or subdivision of a service 
     sector firm, or public agency)'';
       (B) in paragraph (1), by inserting ``or public agency'' 
     after ``of the firm''; and
       (C) in paragraph (2)--
       (i) in subparagraph (A)(ii), by striking ``like or directly 
     competitive with articles produced'' and inserting ``or 
     services like or directly competitive with articles produced 
     or services provided'';
       (ii) by striking subparagraph (B) and inserting the 
     following:
       ``(B)(i) there has been a shift, by such workers' firm, 
     subdivision, or public agency to a foreign country, of 
     production of articles, or in provision of services, like or 
     directly competitive with articles which are produced, or 
     services which are provided by such firm, subdivision, or 
     public agency; or
       ``(ii) such workers' firm, subdivision, or public agency 
     has obtained or is likely to obtain such services from a 
     foreign country.'';
       (2) in subsection (b)--
       (A) in the matter preceding paragraph (1), by striking 
     ``agricultural firm)'' and inserting ``agricultural firm, and 
     workers in a service sector firm or subdivision of a service 
     sector firm, or public agency)'';
       (B) in paragraph (2), by inserting ``or service'' after 
     ``related to the article''; and
       (C) in paragraph (3)(A), by inserting ``or services'' after 
     ``component parts'';
       (3) in subsection (c)--
       (A) in paragraph (3)--
       (i) by inserting ``or services'' after ``value-added 
     production processes'';
       (ii) by striking ``or finishing'' and inserting ``, 
     finishing, or testing'';
       (iii) by inserting ``or services'' after ``for articles'';
       (iv) by inserting ``(or subdivision)'' after ``such other 
     firm''; and
       (v) by striking ``, if the certification of eligibility'' 
     and all that follows to the end period; and
       (B) in paragraph (4)--
       (i) by striking ``for articles'' and inserting ``, or 
     services, used in the production of articles or in the 
     provision of services''; and
       (ii) by inserting ``(or subdivision)'' after ``such other 
     firm''; and
       (4) by adding at the end the following new subsection:
       ``(d) Basis for Secretary's Determinations.--
       ``(1) Increased imports.--For purposes of subsection 
     (a)(2)(A)(ii), the Secretary may determine that increased 
     imports of like or directly competitive articles or services 
     exist if the workers' firm or subdivision or customers of the 
     workers' firm or subdivision accounting for not less than 20 
     percent of the sales of the workers' firm or subdivision 
     certify to the Secretary that they are obtaining such 
     articles or services from a foreign country.
       ``(2) Obtaining services abroad.--For purposes of 
     subsection (a)(2)(B)(ii), the Secretary may determine that 
     the workers' firm, subdivision, or public agency has obtained 
     or is likely to obtain like or directly

[[Page 186]]

     competitive services from a foreign country based on a 
     certification thereof from the workers' firm, subdivision, or 
     public agency.
       ``(3) Authority of the secretary.--The Secretary may obtain 
     the certifications under paragraphs (1) and (2) through 
     questionnaires or in such other manner as the Secretary 
     determines is appropriate.''.
       (c) Definitions.--Section 247 of the Trade Act of 1974 (19 
     U.S.C. 2319) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``or public agency'' after ``of a firm''; 
     and
       (B) by inserting ``or public agency'' after ``or 
     subdivision'';
       (2) in paragraph (2)(B), by inserting ``or public agency'' 
     after ``the firm'';
       (3) by redesignating paragraphs (8) through (17) as 
     paragraphs (9) through (18), respectively; and
       (4) by inserting after paragraph (6) the following:
       ``(7) The term `public agency' means a department or agency 
     of a State or local government or of the Federal Government.
       ``(8) The term `service sector firm' means an entity 
     engaged in the business of providing services.''.

     SEC. 103. TRADE ADJUSTMENT ASSISTANCE FOR FIRMS AND 
                   INDUSTRIES.

       (a) Firms.--
       (1) Assistance.--Section 251 of the Trade Act of 1974 (19 
     U.S.C. 2341) is amended--
       (A) in subsection (a), by inserting ``or service sector 
     firm'' after ``(including any agricultural firm'';
       (B) in subsection (c)(1)--
       (i) in the matter preceding subparagraph (A), by inserting 
     ``or service sector firm'' after ``any agricultural firm'';
       (ii) in subparagraph (B)(ii), by inserting ``or service'' 
     after ``of an article''; and
       (iii) in subparagraph (C), by striking ``articles like or 
     directly competitive with articles which are produced'' and 
     inserting ``articles or services like or directly competitive 
     with articles or services which are produced or provided''; 
     and
       (C) by adding at the end the following:
       ``(e) Basis for Secretary Determination.--
       ``(1) Increased imports.--For purposes of subsection 
     (c)(1)(C), the Secretary may determine that increases of 
     imports of like or directly competitive articles or services 
     exist if customers accounting for not less than 20 percent of 
     the sales of the workers' firm certify to the Secretary that 
     they are obtaining such articles or services from a foreign 
     country.
       ``(2) Authority of the secretary.--The Secretary may obtain 
     the certifications under paragraph (1) through questionnaires 
     or in such other manner as the Secretary determines is 
     appropriate. The Secretary may exercise the authority under 
     section 249 in carrying out this subsection.''.
       (2) Definition.--Section 261 of the Trade Act of 1974 (19 
     U.S.C. 2351) is amended--
       (A) by striking ``For purposes of'' and inserting ``(a) 
     Firm.--For purposes of''; and
       (B) by adding at the end the following:
       ``(b) Service Sector Firm.--For purposes of this chapter, 
     the term `service sector firm' means a firm engaged in the 
     business of providing services.''.
       (b) Industries.--Section 265(a) of the Trade Act of 1974 
     (19 U.S.C. 2355(a)) is amended by inserting ``or service'' 
     after ``new product''.
       (c) Technical Amendments.--
       (1) In general.--Section 249 of the Trade Act of 1974 (19 
     U.S.C. 2321) is amended by striking ``subpena'' and inserting 
     ``subpoena'' each place it appears in the heading and the 
     text.
       (2) Table of contents.--The table of contents for the Trade 
     Act of 1974 is amended by striking ``Subpena'' in the item 
     relating to section 249 and inserting ``Subpoena''.

     SEC. 104. MONITORING AND REPORTING.

       Section 282 of the Trade Act of 1974 (19 U.S.C. 2393) is 
     amended--
       (1) in the first sentence--
       (A) by striking ``The Secretary'' and inserting ``(a) 
     Monitoring Programs.--The Secretary'';
       (B) by inserting ``and services'' after ``imports of 
     articles'';
       (C) by inserting ``and domestic provision of services'' 
     after ``domestic production'';
       (D) by inserting ``or providing services'' after 
     ``producing articles''; and
       (E) by inserting ``, or provision of services,'' after 
     ``changes in production''; and
       (2) by adding at the end the following:
       ``(b) Collection of Data and Reports on Service Sector.--
       ``(1) Secretary of labor.--Not later than 3 months after 
     the date of the enactment of the Trade Adjustment Assistance 
     Improvement Act of 2007, the Secretary of Labor shall 
     implement a system to collect data on adversely affected 
     service workers that includes the number of workers by State, 
     industry, and cause of dislocation of each worker.
       ``(2) Secretary of commerce.--Not later than 180 days after 
     such date of enactment, the Secretary of Commerce shall, in 
     consultation with the Secretary of Labor, conduct a study and 
     report to the Congress on ways to improve the timeliness and 
     coverage of data on trade in services, including methods to 
     identify increased imports due to the relocation of United 
     States firms to foreign countries, and increased imports due 
     to United States firms obtaining services from firms in 
     foreign countries.''.

     SEC. 105. EFFECTIVE DATE.

       The amendments made by this title shall take effect on the 
     date that is 90 days after the date of the enactment of this 
     Act.

          TITLE II--TRADE ADJUSTMENT ASSISTANCE FOR INDUSTRIES

     SEC. 201. OTHER METHODS OF REQUESTING INVESTIGATION.

       Section 221 of the Trade Act of 1974 (19 U.S.C. 2271) is 
     amended--
       (1) by adding at the end the following:
       ``(c) Other Methods of Initiating a Petition.--Upon the 
     request of the President or the United States Trade 
     Representative, or the resolution of either the Committee on 
     Finance of the Senate or the Committee on Ways and Means of 
     the House of Representatives, the Secretary shall promptly 
     initiate an investigation under this chapter to determine the 
     eligibility for adjustment assistance of--
       ``(1) a group of workers (which may include workers from 
     more than one facility or employer); or
       ``(2) all workers in an occupation as that occupation is 
     defined in the Bureau of Labor Statistics Standard 
     Occupational Classification System.'';
       (2) in subsection (a)(2), by inserting ``or a request or 
     resolution filed under subsection (c),'' after ``paragraph 
     (1),''; and
       (3) in subsection (a)(3), by inserting ``, request, or 
     resolution'' after ``petition'' each place it appears.

     SEC. 202. NOTIFICATION.

       Section 2243 of the Trade Act of 1974 (19 U.S.C. 2274) is 
     amended to read as follows:

     ``SEC. 224. NOTIFICATIONS REGARDING AFFIRMATIVE 
                   DETERMINATIONS AND SAFEGUARDS.

       ``(a) Notifications Regarding Chapter 1 Investigations and 
     Determinations.--Whenever the International Trade Commission 
     makes a report under section 202(f) containing an affirmative 
     finding regarding serious injury, or the threat thereof, to a 
     domestic industry, the Commission shall immediately--
       ``(1) notify the Secretary of Labor of that finding; and
       ``(2) in the case of a finding with respect to an 
     agricultural commodity, as defined in section 291, notify the 
     Secretary of Agriculture of that finding.
       ``(b) Notification Regarding Bilateral Safeguards.--The 
     International Trade Commission shall immediately notify the 
     Secretary of Labor and, in an investigation with respect to 
     an agricultural commodity, the Secretary of Agriculture, 
     whenever the Commission makes an affirmative determination 
     pursuant to one of the following provisions:
       ``(1) Section 421 of the Trade Act of 1974 (19 U.S.C. 
     2451).
       ``(2) Section 312 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 312 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 312 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(5) Section 312 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(6) Section 302(b) of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3352(b)).
       ``(7) Section 212 of the United States-Jordan Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112).
       ``(8) Section 312 of the Dominican Republic-Central 
     America-United States Free Trade Agreement Implementation Act 
     (19 U.S.C. 4062).
       ``(9) Section 312 of the United States-Bahrain Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(10) Section 312 of the United States-Oman Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(c) Agricultural Safeguards.--The Commissioner of Customs 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, whenever the Commissioner of Customs assesses 
     additional duties on a product pursuant to one of the 
     following provisions:
       ``(1) Section 202 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 202 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 201(c) of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 309 of the North American Free Trade 
     Agreement Implementation Act (19 U.S.C. 3358).
       ``(5) Section 301(a) of the United States-Canada Free Trade 
     Agreement Implementation Act of 1988 (19 U.S.C. 2112 note).
       ``(6) Section 404 of the United States-Israel Free Trade 
     Agreement Implementation Act (19 U.S.C. 2112 note).
       ``(7) Section 202 of the Dominican Republic-Central 
     America-United States Free Trade Agreement Implementation Act 
     (19 U.S.C. 4032).

[[Page 187]]

       ``(d) Textile Safeguards.--The President shall immediately 
     notify the Secretary of Labor whenever the President makes a 
     positive determination pursuant to one of the following 
     provisions:
       ``(1) Section 322 of the United States-Australia Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(2) Section 322 of the United States-Morocco Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(3) Section 322 of the United States-Chile Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(4) Section 322 of the United States-Singapore Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(5) Section 322 of the Dominican Republic-Central 
     America-United States Free Trade Agreement Implementation Act 
     (19 U.S.C. 4082).
       ``(6) Section 322 of the United States-Bahrain Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(7) Section 322 of the United States-Oman Free Trade 
     Agreement Implementation Act (19 U.S.C. 3805 note).
       ``(e) Antidumping and Countervailing Duties.--Whenever the 
     International Trade Commission makes a final affirmative 
     determination pursuant to section 705 or section 735 of the 
     Tariff Act of 1930 (19 U.S.C. 1671d or 1673d), the Commission 
     shall immediately notify the Secretary of Labor and, in the 
     case of an agricultural commodity, the Secretary of 
     Agriculture, of that determination.''.

     SEC. 203. INDUSTRY-WIDE DETERMINATION.

       Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
     amended by adding at the end the following:
       ``(e) Investigation Regarding Industry-Wide 
     Certification.--If the Secretary receives a request or a 
     resolution under section 221(c) on behalf of workers in a 
     domestic industry or occupation (described in section 
     221(c)(2)) or receives 3 or more petitions under section 
     221(a) within a 180-day period on behalf of groups of workers 
     in a domestic industry or occupation, the Secretary shall 
     make an industry-wide determination under subsection (a) of 
     this section with respect to the domestic industry or 
     occupation in which the workers are or were employed. If the 
     Secretary does not make a determination and issue a 
     certification under the preceding sentence, the Secretary 
     shall make a determination of eligibility under subsection 
     (a) with respect to each group of workers in that domestic 
     industry or occupation from which a petition was received.''.

     SEC. 204. COORDINATION WITH OTHER TRADE PROVISIONS.

       (a) Industry-Wide Certification Based on Global 
     Safeguards.--
       (1) Recommendations by itc.--
       (A) Section 202(e)(2)(D) of the Trade Act of 1974 (19 
     U.S.C. 2252(e)(2)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (B) Section 203(a)(3)(D) of the Trade Act of 1974 (19 
     U.S.C. 2253(a)(3)(D)) is amended by striking ``, including 
     the provision of trade adjustment assistance under chapter 
     2''.
       (2) Assistance for workers.--Section 203(a)(1)(A) of the 
     Trade Act of 1974 (19 U.S.C. 2253(a)(1)(A)) is amended to 
     read as follows:
       ``(A) After receiving a report under section 202(f) 
     containing an affirmative finding regarding serious injury, 
     or the threat thereof, to a domestic industry--
       ``(i) the President shall take all appropriate and feasible 
     action within his power; and
       ``(ii)(I) the Secretary of Labor shall certify as eligible 
     to apply for adjustment assistance under section 223 workers 
     employed in the domestic industry defined by the Commission 
     if such workers become totally or partially separated, or are 
     threatened to become totally or partially separated, not 
     earlier than 1 year before, or not later than 1 year after, 
     the date on which the Commission made its report to the 
     President under section 202(f); and
       ``(II) in the case of a finding with respect to an 
     agricultural commodity as defined in section 291, the 
     Secretary of Agriculture shall certify as eligible to apply 
     for adjustment assistance under section 293 agricultural 
     commodity producers employed in the domestic production of 
     the agricultural commodity that is the subject of the finding 
     during the most recent marketing year.''.
       (b) Industry-Wide Certification Based on Bilateral 
     Safeguard Provisions or Antidumping or Countervailing Duty 
     Orders.--
       (1) In general.--Subchapter A of chapter 1 of title II of 
     the Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by 
     inserting after section 224 the following new section:

     ``SEC. 224A. INDUSTRY-WIDE CERTIFICATION WHERE BILATERAL 
                   SAFEGUARD PROVISIONS INVOKED OR ANTIDUMPING OR 
                   COUNTERVAILING DUTIES IMPOSED.

       ``(a) In General.--
       ``(1) Mandatory certification.--Not later than 10 days 
     after the date on which the Secretary of Labor receives a 
     notification with respect to the imposition of a trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination under section 224 (a), (b), 
     (c), (d), or (e), the Secretary shall certify as eligible for 
     trade adjustment assistance under section 223(a) workers 
     employed in the domestic production of the article that is 
     the subject of the trade remedy, safeguard determination, or 
     antidumping or countervailing duty determination, as the case 
     may be, if such workers become totally or partially 
     separated, or are threatened to become totally or partially 
     separated not more than 1 year before or not more than 1 year 
     after the applicable date.
       ``(2) Applicable date.--In this section, the term 
     `applicable date' means--
       ``(A) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224 (a), (b), or (d);
       ``(B) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(C) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).
       ``(b) Qualifying Requirements for Workers.--The provisions 
     of subchapter B shall apply in the case of a worker covered 
     by a certification under this section or section 223(e), 
     except as follows:
       ``(1) Section 231(a)(5)(A)(ii) shall be applied--
       ``(A) by substituting `30th week' for `26th week' in 
     subclause (I); and
       ``(B) by substituting `26th week' for `20th week' in 
     subclause (II).
       ``(2) The provisions of section 236(a)(1) (A) and (B) shall 
     not apply.''.
       (2) Agricultural commodity producers.--Chapter 6 of title 
     II of the Trade Act of 1974 (19 U.S.C. 2401 et seq.) is 
     amended by striking section 294 and inserting the following:

     ``SEC. 294. INDUSTRY-WIDE CERTIFICATION FOR AGRICULTURAL 
                   COMMODITY PRODUCERS WHERE SAFEGUARD PROVISIONS 
                   INVOKED OR ANTIDUMPING OR COUNTERVAILING DUTIES 
                   IMPOSED.

       ``(a) In General.--Not later than 10 days after the date on 
     which the Secretary of Agriculture receives a notification 
     with respect to the imposition of a trade remedy, safeguard 
     determination, or antidumping or countervailing duty 
     determination under section 224 (b), (c), or (e), the 
     Secretary shall certify as eligible for trade adjustment 
     assistance under section 293(a) agricultural commodity 
     producers employed in the domestic production of the 
     agricultural commodity that is the subject of the trade 
     remedy, safeguard determination, or antidumping or 
     countervailing duty determination, as the case may be, during 
     the most recent marketing year.
       ``(b) Applicable Date.--In this section, the term 
     `applicable date' means--
       ``(1) the date on which the affirmative or positive 
     determination or finding is made in the case of a 
     notification under section 224(b);
       ``(2) the date on which a final determination is made in 
     the case of a notification under section 224(e); or
       ``(3) the date on which additional duties are assessed in 
     the case of a notification under section 224(c).''.
       (c) Technical Amendments.--The table of contents for title 
     II of the Trade Act of 1974 is amended--
       (1) by striking the item relating to section 224 and 
     inserting the following:

``Sec. 224. Notifications regarding affirmative determinations and 
              safeguards.'';

       (2) by inserting after the item relating to section 224, 
     the following:

``Sec. 224A. Industry-wide certification based on bilateral safeguard 
              provisions invoked or antidumping or countervailing 
              duties imposed.'';

       and
       (3) by striking the item relating to section 294, and 
     inserting the following:

``Sec. 294. Industry-wide certification for agricultural commodity 
              producers where safeguard provisions invoked or 
              antidumping or countervailing duties imposed.''.

     SEC. 205. REGULATIONS.

       The Secretary of the Treasury, the Secretaries of 
     Agriculture and Labor, and the International Trade Commission 
     may promulgate such regulations as may be necessary to carry 
     out the amendments made by this title.

          TITLE III--OTHER TRADE ADJUSTMENT ASSISTANCE MATTERS

                Subtitle A--Trade Adjustment Assistance

     SEC. 301. CALCULATION OF SEPARATION TOLLED DURING LITIGATION.

       Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
     amended by adding at the end the following:
       ``(h) Special Rule for Calculating Separation.--
     Notwithstanding any other provision of this chapter, any 
     period during which a judicial or administrative appeal is 
     pending with respect to the denial by the Secretary of a 
     petition under section 223 shall not be counted for purposes 
     of calculating the period of separation under subsection 
     (a)(2) and an adversely affected worker that would otherwise 
     be entitled to a trade readjustment allowance shall not be 
     denied such allowance because of such appeal.''.

[[Page 188]]



     SEC. 302. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE 
                   ADVISOR.

       (a) In General.--Subchapter A of chapter 2 of title II of 
     the Trade Act of 1974 is amended by inserting after section 
     221, the following new section:

     ``SEC. 221A. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE 
                   ADVISOR.

       ``(a) In General.--There is established in the Department 
     of Labor an office to be known as the `Office of Trade 
     Adjustment Assistance Advisor' (in this section referred to 
     as the `Office'). The Office shall be headed by a Director, 
     who shall be responsible for providing assistance and advice 
     to any person or entity described in section 221(a)(1) 
     desiring to file a petition for certification of eligibility 
     under section 221.
       ``(b) Technical Assistance.--The Director shall coordinate 
     with each agency responsible for providing adjustment 
     assistance under this chapter or chapter 6 (including the 
     Office of Trade Adjustment Assistance established under 
     section 255A) and shall provide technical and legal 
     assistance and advice to enable persons or entities described 
     in section 221(a)(1) to prepare and file petitions for 
     certification under section 221.''.
       (b) Technical Amendment.--The table of contents for title 
     II of the Trade Act of 1974 is amended by inserting after the 
     item relating to section 221, the following:

``Sec. 221A. Establishment of Office of Trade Adjustment Assistance 
              Advisor.''.

     SEC. 303. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

       (a) In General.--Chapter 3 of title II of the Trade Act of 
     1974 (19 U.S.C. 2341 et seq.) is amended by inserting after 
     section 255 the following:

     ``SEC. 255A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

       ``(a) Establishment.--Not later than 90 days after the date 
     of the enactment of the Trade Adjustment Assistance 
     Improvement Act of 2007, there shall be established in the 
     International Trade Administration of the Department of 
     Commerce an Office of Trade Adjustment Assistance (in this 
     section referred to as the `Office').
       ``(b) Functions.--The Office shall assist the Secretary of 
     Commerce in carrying out the Secretary's responsibilities 
     under this chapter.
       ``(c) Personnel.--The Office shall be headed by a Director, 
     and shall have such staff as may be necessary to carry out 
     the responsibilities of the Secretary of Commerce described 
     in this chapter.''.
       (b) Conforming Amendment.--The table of contents for the 
     Trade Act of 1974 is amended by inserting after the item 
     relating to section 255, the following:

``Sec. 255A. Office of Trade Adjustment Assistance.''.

     SEC. 304. CERTIFICATION OF SUBMISSIONS.

       Section 223 of the Trade Act of 1974 (19 U.S.C. 2273), as 
     amended by section 203, is amended by adding at the end the 
     following:
       ``(f) Certification of Submissions.--If an employer submits 
     a petition on behalf of a group of workers pursuant to 
     section 221(a)(1) or if the Secretary requests evidence or 
     information from an employer in order to make a determination 
     under this section, the accuracy and completeness of any 
     evidence or information submitted by the employer shall be 
     certified by the employer's legal counsel or by an officer of 
     the employer.''.

     SEC. 305. WAGE INSURANCE.

       (a) In General.--Section 246(a)(3) of the Trade Act of 1974 
     (19 U.S.C. 2318(a)(3)) is amended to read as follows:
       ``(3) Eligibility.--A worker in a group that the Secretary 
     has certified as eligible to apply for adjustment assistance 
     under section 223 may elect to receive benefits under the 
     alternative trade adjustment assistance program if the 
     worker--
       ``(A) obtains reemployment not more than 26 weeks after the 
     date of separation from the adversely affected employment;
       ``(B) is at least 40 years of age;
       ``(C) earns not more than $50,000 a year in wages from 
     reemployment;
       ``(D) is employed on a full-time basis as defined by State 
     law in the State in which the worker is employed; and
       ``(E) does not return to the employment from which the 
     worker was separated.''.
       (b) Conforming Amendments.--
       (1) Subparagraphs (A) and (B) of section 246(a)(2) of the 
     Trade Act of 1974 (19 U.S.C. 2318(a)(2)) are amended by 
     striking ``paragraph (3)(B)'' and inserting ``paragraph (3)'' 
     each place it appears.
       (2) Section 246(b)(2) of such Act is amended by striking 
     ``subsection (a)(3)(B)'' and inserting ``subsection (a)(3)''.
       (c) Extension.--Section 246(b)(1) of such Act is amended by 
     striking ``5 years'' and inserting ``10 years''.

     SEC. 306. TRAINING.

       (a) Modification of Enrollment Deadlines.--Section 
     231(a)(5)(A)(ii) of the Trade Act of 1974 (19 U.S.C. 
     2291(a)(5)(A)(ii)) is amended--
       (1) in subclause (I), by striking ``16th week'' and 
     inserting ``26th week''; and
       (2) in subclause (II), by striking ``8th week'' and 
     inserting ``20th week''.
       (b) Extension of Allowance to Accommodate Training.--
     Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as 
     amended by section 301, is amended by adding at the end the 
     following:
       ``(i) Extension of Allowance.--Notwithstanding any other 
     provision of this section, a trade readjustment allowance may 
     be paid to a worker for a number of additional weeks equal to 
     the number of weeks the worker's enrollment in training was 
     delayed beyond the deadline applicable under section 
     231(a)(5)(A)(ii) pursuant to a waiver granted under section 
     231(c)(1)(E).''.
       (c) Funding for Training.--Section 236(a) of the Trade Act 
     of 1974 (19 U.S.C. 2296(a)) is amended--
       (1) in paragraph (1) by striking ``Upon such approval'' and 
     all that follows to the end; and
       (2) by amending paragraph (2) to read as follows:
       ``(2)(A) Upon approval of a training program under 
     paragraph (l), and subject to the limitations imposed by this 
     section, an adversely affected worker covered by a 
     certification issued under section 223 shall be eligible to 
     have payment of the costs of that training, including any 
     costs of an approved training program incurred by a worker 
     before a certification was issued under section 223, made on 
     behalf of the worker by the Secretary directly or through a 
     voucher system.
       ``(B) Not later than 6 months after the date of enactment 
     of the Trade Adjustment Assistance Improvement Act of 2007, 
     the Secretary shall develop, and submit to Congress for 
     approval, a formula that provides workers with an individual 
     entitlement for training costs to be administered pursuant to 
     sections 239 and 240. The formula shall take into account--
       ``(i) the number of workers enrolled in trade adjustment 
     assistance;
       ``(ii) the duration of the assistance;
       ``(iii) the anticipated training costs for workers; and
       ``(iv) any other factors the Secretary deems appropriate.
       ``(C) Until such time as Congress approves the formula, the 
     total amount of payments that may be made under subparagraph 
     (A) for any fiscal year shall not exceed 50 percent of the 
     amount of trade readjustment allowances paid to workers 
     during that fiscal year.''.
       (d) Approved Training Programs.--
       (1) In general.--Section 236(a)(5) of the Trade Act of 1974 
     (19 U.S.C. 2296(a)(5)) is amended--
       (A) by striking ``and'' at the end of subparagraph (E);
       (B) by redesignating subparagraph (F) as subparagraph (H); 
     and
       (C) by inserting after subparagraph (E) the following:
       ``(F) integrated workforce training;
       ``(G) entrepreneurial training; and''.
       (2) Definition.--Section 247 of the Trade Act of 1974 (19 
     U.S.C. 2319), as amended by 102(c), is amended by adding at 
     the end the following:
       ``(19) The term `integrated workforce training' means 
     training that integrates occupational skills training with 
     English language acquisition.''.

     SEC. 307. FUNDING FOR ADMINISTRATIVE COSTS.

       Section 241 of the Trade Act of 1974 (19 U.S.C. 2313) is 
     amended by adding at the end the following:
       ``(d) Funds provided by the Secretary to a State to cover 
     administrative costs associated with the performance of a 
     State's responsibilities under section 239 shall be 
     sufficient to cover all costs of the State associated with 
     operating the trade adjustment assistance program, including 
     case worker costs.''.

     SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 245(a) of the Trade Act of 1974 
     (19 U.S.C. 2317(a)) is amended by striking ``2007'' and 
     inserting ``2012''.
       (b) Firms.--Section 256(b) of the Trade Act of 1974 (19 
     U.S.C. 2346(b)) is amended by inserting ``and $50,000,000 for 
     each of fiscal years 2008 through 2012,'' after ``fiscal 
     years 2003 through 2007,''.
       (c) Termination.--Section 285 of the Trade Act of 1974 (19 
     U.S.C. 2271 note) is amended by striking ``2007'' each place 
     it appears and inserting ``2012''.
       (d) Farmers.--Section 298(a) of the Trade Act of 1974 (19 
     U.S.C. 2401g(a)) is amended by striking ``2007'' and 
     inserting ``2012''.

                      Subtitle B--Data Collection

     SEC. 311. SHORT TITLE.

       This subtitle may be cited as the ``Trade Adjustment 
     Assistance Accountability Act''.

     SEC. 312. DATA COLLECTION; INFORMATION TO WORKERS.

       (a) Data Collection.--Subchapter C of chapter 2 of title II 
     of the Trade Act of 1974 is amended by inserting after 
     section 249, the following new section:

     ``SEC. 250. DATA COLLECTION; REPORT.

       ``(a) Data Collection.--The Secretary shall, pursuant to 
     regulations prescribed by the Secretary, collect any data 
     necessary to meet the requirements of this chapter. The 
     Secretary shall collect and publish, on an annual basis, the 
     following:
       ``(1) The number of workers certified and the number of 
     workers actually participating in the trade adjustment 
     assistance program.
       ``(2) The time for processing petitions.
       ``(3) The number of training waivers granted.
       ``(4) The number of workers receiving benefits and the type 
     of benefits being received.

[[Page 189]]

       ``(5) The number of workers enrolled in, and the duration 
     of, training by major types of training.
       ``(6) Earnings history of workers that reflects wages 
     before separation and wages in any job obtained after 
     receiving benefits under this Act.
       ``(7) Reemployment rates and sectors in which dislocated 
     workers have been employed.
       ``(8) The cause of dislocation identified in each petition 
     that resulted in a certification under this chapter.
       ``(9) The number of petitions filed and workers certified 
     in each congressional district of the United States.
       ``(b) State Participation.--The Secretary shall ensure, to 
     the extent practicable, through oversight and effective 
     internal control measures the following:
       ``(1) State participation.--Participation by each State in 
     the collection of data required under subsection (a) and 
     shall provide incentives for States to supplement employment 
     and wage data obtained through the use of unemployment 
     insurance wage records.
       ``(2) Monitoring.--Monitoring by each State of internal 
     control measures with respect to program measurement data 
     collected by each State.
       ``(3) Response.--The quality and speed of the rapid 
     response provided by each State under section 134(a)(2)(A) of 
     the Workforce Investment Act of 1998 (29 U.S.C. 
     2864(a)(2)(A)).
       ``(c) Report.--
       ``(1) Annual report.--Not later than 1 year after the date 
     of enactment of this Act, and annually thereafter, the 
     Secretary shall submit to the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives and make available to each State and to the 
     public a report that includes the information collected under 
     this section.''.
       (b) Conforming Amendments.--
       (1) Coordination.--Section 281 of the Trade Act of 1974 (19 
     U.S.C. 2392) is amended by striking ``Departments of Labor 
     and Commerce'' and inserting ``Departments of Labor, 
     Commerce, and Agriculture''.
       (2) Trade monitoring system.--Section 282 of the Trade Act 
     of 1974 (19 U.S.C. 2393) is amended by striking ``The 
     Secretary of Commerce and the Secretary of Labor'' and 
     inserting ``The Secretaries of Commerce, Labor, and 
     Agriculture''.
       (3) Table of contents.--The table of contents for title II 
     of the Trade Act of 1974 is amended by inserting after the 
     item relating to section 249, the following new item:

``Sec. 250. Data collection; report.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 60 days after the date 
     of enactment of this Act.

     SEC. 313. DETERMINATIONS BY THE SECRETARY OF LABOR.

       Section 223(c) of the Trade Act of 1974 (19 U.S.C. 2273(c)) 
     is amended to read as follows:
       ``(c) Publication of Determinations.--Upon reaching a 
     determination on a petition, the Secretary shall--
       ``(1) promptly publish a summary of the determination in 
     the Federal Register together with the Secretary's reasons 
     for making such determination; and
       ``(2) make the full text of the determination available to 
     the public on the Internet website of the Department of Labor 
     with full-text searchability.''.

          Subtitle C--Trade Adjustment Assistance for Farmers

     SEC. 321. CLARIFICATION OF MARKETING YEAR AND OTHER 
                   PROVISIONS.

       (a) In General.--Section 291(5) of the Trade Act of 1974 
     (19 U.S.C. 2401(5)) is amended by inserting before the end 
     period the following: ``, or in the case of an agricultural 
     commodity that has no officially designated marketing year, 
     in a 12-month period for which the petitioner provides 
     written request''.
       (b) Fishermen.--Notwithstanding any other provision of law, 
     for purposes of chapter 2 of title II of the Trade Act of 
     1974 (19 U.S.C. 2271 et seq.) fishermen who harvest wild 
     stock shall be eligible for adjustment assistance to the same 
     extent and in the same manner as a group of workers under 
     such chapter 2.

     SEC. 322. ELIGIBILITY.

       (a) In General.--Section 292(c)(1) of the Trade Act of 1974 
     (19 U.S.C. 2401a(c)(1)) is amended by striking ``80 percent'' 
     and inserting ``90 percent''.
       (b) Special Rule for Qualified Subsequent Years.--Paragraph 
     (2) of section 292(d) of the Trade Act of 1974 (19 U.S.C. 
     2401A(d)(2)) is amended to read as follows:
       ``(2) imports of articles like or directly competitive with 
     the agricultural commodity, or class of goods within the 
     agricultural commodity, produced by the group contributed 
     importantly to the decline in price determined under 
     subsection (c)(1) without regard to whether imports of such 
     articles increased in any year subsequent to the year the 
     group was first certified.''.
       (c) Net Farm Income.--Section 296(a)(1)(C) of the Trade Act 
     of 1974 (19 U.S.C. 2401e(a)(1)(C)) is amended by inserting 
     before the end period the following: ``or the producer had no 
     positive net farm income for the 2 most recent consecutive 
     years in which no adjustment assistance was received by the 
     producer under this chapter''.
                                 ______
                                 
      By Ms. LANDRIEU:
  S. 123. A bill to authorize the project for hurricane and storm 
damage reduction, Morganza to the Gulf of Mexico, Louisiana; to the 
Committee on Environment and Public Works.
  Ms. LANDRIEU. Mr. President, Hurricanes Katrina and Rita revealed the 
Gulf Coast's vulnerability to storms and flooding. With the help of 
generous Americans, the people of the gulf coast have been working hard 
over the last year and a half to rebuild their economy, their 
communities, and their lives.
  Since these devastating storms struck in 2005, Congress directed the 
U.S. Army Corps of Engineers to better protect America's gulf coast. 
Yet Congress's failure to pass a Water Resources Development Act WRDA, 
has delayed much of the needed protection. Of all of the many worthy 
projects throughout the Nation awaiting WRDA passage, there is one 
hurricane protection project that stands out and cries for immediate 
congressional authorization with or without a WRDA bill. Accordingly, I 
am introducing legislation to singularly authorize this long overdue 
project known as ``Morganza to the Gulf of Mexico Hurricane 
Protection.''
  This project includes a series of levees, locks and other systems 
through Terrebonne and Lafourche Parishes in Louisiana. When complete, 
the Morganza to the Gulf project will protect about 120,000 people and 
1,700 square miles of land against storm surges such as those caused by 
Hurricanes Katrina and Rita.
  The Morganza to the Gulf project is distinguishable from all other 
projects awaiting WRDA passage because it was originally authorized in 
the last enacted WRDA bill in 2000, with the requirement that the Army 
Corps of Engineers deliver a favorable feasibility report by December 
31 of that year. The Corps eventually submitted its report more than a 
year late, causing the authorization to expire despite the Corps' 
favorable recommendation.
  Though repeated attempts have been made, Congress has been unable to 
deliver a new WRDA bill since 2000. As a result, vital hurricane 
protection for a portion of southeast Louisiana that the Corps 
recommends after years of environmental and economic analysis is 
awaiting congressional action, and an area of America's gulf coast 
remains needlessly vulnerable. Notably, every failed WRDA bill that the 
Senate, the House, and its committees have separately passed since 2000 
has authorized the Morganza to the Gulf Hurricane Protection project. 
Simply stated, there is no other item in WRDA that has been kicked down 
the road as many times as this.
  This bill that I introduce today fully authorizes the Morganza to the 
Gulf project in accordance with the plans and subject to the conditions 
of the Corps' report.
  I urge my colleagues to support this legislation and ask unanimous 
consent that a copy of my statement and the bill appear in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 123

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

     SECTION 1. MORGANZA TO THE GULF OF MEXICO PROJECT.

       (a) In General.--The Secretary of the Army shall carry out 
     the project for hurricane and storm damage reduction, 
     Morganza to the Gulf of Mexico, Louisiana, substantially in 
     accordance with the plans, and subject to the conditions, 
     described in the Reports of the Chief of Engineers dated 
     August 23, 2002, and July 22, 2003, at a total cost of 
     $886,700,000, with an estimated Federal cost of $576,355,000 
     and an estimated non-Federal cost of $310,345,000.
       (b) Credit.--The Secretary shall credit toward the non-
     Federal share of the cost of the project elements the cost of 
     design and construction work carried out by the non-Federal 
     interest before the date of the partnership agreement for the 
     project elements if the Secretary determines that the work is 
     integral to the project elements.
       (c) Operations and Maintenance.--The operation, 
     maintenance, repair, rehabilitation, and replacement of the 
     Houma Navigation Canal lock complex and the Gulf Intracoastal 
     Waterway floodgate features of the

[[Page 190]]

     project described in subsection (a) that provide for inland 
     waterway transportation shall be a Federal responsibility, in 
     accordance with section 102 of the Water Resources 
     Development Act of 1986 (33 U.S.C. 2212).
                                 ______
                                 
      By Mr. ALLARD:
  S. 124. A bill to provide certain counties with the ability to 
receive television broadcast signals of their choice; to the Committee 
on Commerce, Science, and Transportation.
  Mr. ALLARD. Mr. President, another piece of legislation that I am 
introducing today addresses an issue important to citizens of southern 
Colorado. The problem is this: cable and satellite subscribers in two 
southern Colorado counties are forced by current law to receive New 
Mexico television stations. Lately, I hear almost every day from my 
constituents that they would prefer to receive Colorado television over 
New Mexico television.
  The problem stems from the fact that these two Colorado counties are 
located in the Albuquerque designated market area, as determined by 
Nielsen Media Research. As a matter of fairness, citizens of Colorado 
should be eligible to receive Colorado TV. Consumers should choose 
which television stations they receive, especially since they are the 
ones paying for it.
  The bill I am introducing does just that. It makes a commonsense 
change to the law that allows citizens of La Plata and Montezuma 
Counties to receive television stations from Denver, not Albuquerque.
  I hope that my colleagues will join me in supporting this bill that 
is nearly identical to laws enacted in previous Congresses that 
addressed similar problems in other States.
                                 ______
                                 
      By Mr. ALLARD:
  S. 125. A bill to establish the Granada Relocation Center National 
Historic Site as an affiliated unit of the National Park System; to the 
Committee on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, I am introducing a bill dealing with the 
Granada Relocation Camp, also known as Camp Amache. It played an 
important, but sad, part in United States history. Camp Amache, one of 
10 internment camps in the Nation, was established in August 1942 by 
the U.S. Government during World War II as a place to house the 
Japanese from the west coast and was closed on August 15, 1945. This is 
a significant part of American history and it should be preserved. My 
bill today will designate the Granada Relocation Camp as a national 
historic site in Colorado.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 126. A bill to modify the boundary of Mesa Verde National Park, 
and for other purposes; to the Committee on Energy and Natural 
Resources.
  Mr. ALLARD. Mr. President, another piece of legislation I am 
introducing today will authorize the expansion of the boundary of Mesa 
Verde National Park. The boundary adjustment will allow for the 
incorporation of 324 acres of land owned by the Henneman family, which 
is being purchased by the Conservation Fund for conveyance to the park, 
as well as a 38-acre parcel that will be donated to the park by the 
Mesa Verde Foundation.
  Mesa Verde National Park protects some of the best preserved and most 
notable archeological sites in the world. There are over 4,000 known 
archeological sites in the park, including 600 cliff dwellings. These 
sites were constructed by ancestral Puebloans, who occupied this area 
for over 700 years, from 600 A.D. to 1300 A.D.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 127. A bill to amend the Great Sand Dunes National Park and 
Preserve Act of 2000 to explain the purpose and provide for the 
administration of the Baca National Wildlife Refuge; to the Committee 
on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, the Baca National Wildlife Refuge Purpose 
bill will give the U.S. Fish and Wildlife Service management tools that 
will allow the agency to run the Baca National Wildlife Refuge in a way 
that achieves the most beneficial use of this wonderful natural 
resource. The Baca National Wildlife Refuge consists of 92,500 acres of 
wetlands, sage brush, and riparian lands adjacent to the Great Sand 
Dunes National Park in southern Colorado. I, along with my former 
colleague from Colorado's 3rd Congressional District, U.S. 
Representative Scott McInnis, sponsored the legislation that converted 
the Sand Dunes from a monument to a park. This legislation also 
authorized the Federal acquisition of the Baca Ranch lands and I remain 
actively interested in the area's management.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 128. A bill to amend the Cache La Poudre River Corridor Act to 
designate a new management entity, make certain technical and 
conforming amendments, enhance private property protections, and for 
other purposes; to the Committee on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, I am introducing legislation which will 
extend congressional authorization for the Cache la Poudre Heritage 
Area in northern Colorado and will give local citizens greater 
management authority over the area. Under the original legislation, 
authored by former Colorado. Senator Hank Brown, the Secretary of 
Interior was to appoint a commission to work with the National Park 
Service and manage the area, but because of a technicality, the 
Secretary was unable to appoint the commission. In response, local 
citizens stepped up and formed the Poudre Heritage Alliance to support 
the Heritage Area until an official commission could be named. This 
legislation would rectify this, and empower local residents to continue 
the work they have been doing on behalf of the heritage area.
                                 ______
                                 
      By Mr. ALLARD:
  S. 129. A bill to study and promote the use of energy-efficient 
computer servers in the United States; to the Committee on Energy and 
Natural Resources.
  Mr. ALLARD. Mr. President, I am introducing a bill that will 
authorize the EPA to conduct a study of the growth in energy 
consumption by computer data centers operated by the Federal Government 
and by private corporations. The study will also examine industry 
movement toward energy efficient microchips and computer servers, 
potential cost savings associated with the movement to more efficient 
machines and what, if any, impacts to performance come with increased 
efficiency. The results of the study will allow us to more fully 
understand the impact that the growing number of computers in use 
throughout the country has on energy consumption. This information will 
better position Congress to make recommendations to Federal agencies on 
their energy use and computer selection.
  It will also provide private industry with information that will 
allow them to choose computer models that will decrease their energy 
consumption, making their companies more efficient and profitable.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 130. A bill to amend title XVIII of the Social Security Act to 
extend reasonable cost contracts under Medicare; to the Committee on 
Finance.
  Mr. ALLARD. Mr. President, currently American seniors enjoy Medicare 
health plans called cost contracts. Under legislation I am introducing 
today, seniors will be able to continue utilizing these valued health 
plans.
  Medicare cost contract plans are vital to America. Cost contracts 
provide Medicare beneficiaries in many rural areas and small cities 
throughout our country with an affordable, high-quality option to the 
traditional Medicare fee-for-service plan. For many of these 
beneficiaries, Medicare Advantage plans do not provide access to 
physicians in the community.
  Medicare cost contracts are managed care plans that are reimbursed on 
a cost basis for providing health services. Under current law, cost 
contracts are one option for Medicare beneficiaries. Cost contract 
premiums cover Medicare deductibles and additional benefits not covered 
by basic Medicare. Further, for the costs of a normal Medicare fee-for-
service copayment,

[[Page 191]]

seniors with cost contracts can use any Medicare provider regardless of 
whether they participate in the health plans network. This is critical 
in rural areas where physicians are scarce.
  Cost contracts are vital to seniors who have them. From New York to 
Oregon, and even to Hawaii, America's seniors are enrolled in cost 
contract plans. Cost contracts are especially important in rural 
Colorado. Of the Coloradans with cost contract plans, 89 percent live 
in rural Colorado, where few physicians will see patients under 
straight Medicare or Medicare Advantage.
  Many beneficiaries who are enrolled in Medicare cost contract plans 
live on limited incomes. Under the traditional Medicare program, 
beneficiaries incur considerable out-of-pocket expenses. In addition, 
Medicare supplemental insurers frequently age-adjust premiums and 
either refuse coverage or impose coverage restrictions for pre-existing 
conditions. Medicare cost contract plans provide an affordable 
alternative.
  Unfortunately, under current law cost contracts soon will terminate.
  I believe Congress should work to extend Medicare cost contracts 
further. My bill, the Medicare Cost Contract Extension and Refinement 
Act of 2007, would accomplish this by extending by five years the cost 
contract sunset date of December 31, 2007, to December 31, 2012.
  Cost contracts have been a bipartisan issue, with bipartisan support 
in the past. Senator Wyden of Oregon worked to get an extension for 
cost contracts in the 109th Congress, and I look forward to working 
with him again during the 110th.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Reed):
  S. 131. A bill to extend for 5 years the Mark-to-Market program of 
the Department of Housing and Urban Development; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. ALLARD. Mr. President, I turn now to the issue of housing. 
Congress created the Mark-to-Market Program in 1997 to reduce Section 8 
costs while preserving the affordability and availability of low-income 
rental housing. The purpose of the program is to reduce the property 
rents to market level while simultaneously restructuring property debt 
to prevent FHA defaults.
  Studies seem to show that the program has been an overwhelming 
success. Nearly 250,000 units of affordable housing have been preserved 
due to the Mark-to-Market Program. This is affordable housing that 
would have been permanently lost as affordable otherwise. According to 
HUD, the program has also saved taxpayers more than $2 billion.
  The original legislation authorized the Mark-to-Market Program for 4 
years, which was subsequently extended for 5 additional years. 
Therefore, the Mark-to-Market program authority was scheduled to expire 
on September 30, 2006. Fortunately, the program authority was 
temporarily extended under the continuing resolutions.
  When the program was extended in 2001, it appeared that 5 additional 
years would be sufficient time for nearly all eligible properties to 
complete the Mark-to-Market process. However, more recent projections 
show that nearly 78,000 properties will face rent reductions over the 
next 5 years.
  It is important to note that even though the program will expire, 
these Section 8 properties with above market rates will still be 
required to have their rents reduced to market levels. Without the 
proper tools to also restructure the debt, many owners will lack 
sufficient funds for property maintenance or mortgage payments. Because 
many Section 8 properties are also FHA insured, this will result in a 
significant number of claims against FHA, in addition to many tenant 
displacements.
  Clearly, no one finds this a desirable scenario. Failure to extend 
the Mark-to-Market Program would be bad for tenants and bad for 
taxpayers. Thus, I am pleased to join with Senator Reed of Rhode Island 
in reintroducing the Mark-to-Market Extension Act of 2007. Our bill 
would extend the program for 5 additional years to allow the remaining 
properties to go through the Mark-to-Market process. Frankly, I can see 
no downside to extending the program; It maintains affordable housing 
for less money.
  I am pleased to work with industry groups and with my colleagues to 
see that this very worthwhile program is extended for an additional 5 
years.
                                 ______
                                 
      By Mr. ALLARD:
  S. 132. A bill to end the trafficking of methamphetamines and 
precursor chemicals across the United States and its borders; to the 
Committee on the Judiciary.
  Mr. ALLARD. Mr. President, the first bill I present today is to 
address one of the biggest current scourges of our citizens--
methamphetamine abuse.
  Just this week, a report published by Colorado's Meth Task Force 
cited Denver as a major distribution center for meth in the U.S.
  Our Nation has been hard hit by the illegal trafficking of meth 
across U.S. borders. This is a national issue that is growing at a rate 
that constantly presents a challenge to our talented law enforcement 
officials. Through our work on the Combat Meth Act, we have provided 
them with many tools to fight the domestic production of meth. We are 
now called upon to respond to the issue of foreign produced meth as it 
presents a growing threat to the U.S.
  In just 10 years, meth has become America's worst drug problem--worse 
than marijuana, cocaine or heroin. My home state of Colorado, like the 
rest of the Nation, faces challenges associated with the growing 
epidemic. Although the number of meth labs in the state is on the 
decline, meth distribution remains rampant because of Denver's location 
at the intersection of two major interstate highways, both of which 
serve as pipelines for the distribution of meth after it enters our 
country.
  This evidence is echoed by the many local drug task forces, law 
enforcement officials, and District Attorneys who are tasked with 
tackling meth within our communities and who I have worked with on this 
issue.
  According to estimates from the DEA, an alarming 80 percent of the 
meth used in the United States comes from larger labs, increasingly 
abroad, while only 20 percent of the meth consumed in this country 
comes from small laboratories.
  Therefore, I propose that we improve efforts to curb the flow of meth 
both within and across our borders. We must take steps to expand 
enforcement to reduce the amount of meth being trafficked into the 
United States by establishing stricter penalties for meth offenders, 
improving coordination with foreign law enforcement officials, and 
examining the serious meth problems faced by Indian reservations.
  The Methamphetamine Trafficking Enforcement Act of 2007 that I am 
introducing today is a first step to fighting the trafficking of this 
drug. My bill addresses the distribution issue by dramatically lowering 
the quantity and dollar amount thresholds for federal criminal 
prosecution of leaders of methamphetamine distribution rings.
  The trafficking of meth across our borders makes Federal action 
necessary, but this is not our war to fight alone. This bill also 
presses upon the United States Trade Representative, the Secretary of 
State, the Attorney General, and the Secretary of Homeland Security to 
include new ways to curb the illicit use and shipment of 
pseudoephedrine, ephedrine, and similar chemicals in multilateral and 
bilateral negotiations. Federal law enforcement officials will 
collaborate with their foreign counterparts to fight meth 
internationally. Working together, we can find a long term solution.
  According to the U.S. Department of Justice, the use, production and 
distribution of meth on Indian lands has increased in the past decade. 
With limited numbers of tribal law enforcement officials, meth can 
easily flow into and be trafficked out of many Indian reservations. 
This bill urges the Attorney General to research and report to Congress 
the challenges faced by all Indian reservations and make 
recommendations to help them address meth trafficking and abuse.

[[Page 192]]

  We must recognize the immediacy of the issue of methamphetamine 
trafficking. It is important that we protect the U.S. and its borders 
to ensure national security and the safety of our communities. I look 
forward to working with my colleagues on this issue and invite them to 
cosponsor the Methamphetamine Trafficking Enforcement Act of 2007.
                                 ______
                                 
      By Mr. OBAMA (for himself, Mr. Lugar, and Mr. Harkin):
  S. 133. A bill to promote the national security and stability of the 
economy of the United States by reducing the dependence of the United 
States on oil through the use of alternative fuels and new technology, 
and for other purposes; to the Committee on Finance.
  Mr. OBAMA. Mr. President, in 2005, Congress enacted the Renewable 
Fuels Standard, RFS, as part of the Energy Policy Act. The RFS is a 
commitment by the United States government that, henceforth, ethanol 
must comprise a substantial part of the national vehicle fuel supply, 
with a goal of 7.5 billion gallons of ethanol in our gasoline by 2012.
  Ethanol production has responded vigorously to this national policy. 
In fact, in only two years, ethanol production has boomed to where it 
now far exceeds the RFS target for this year. It is widely anticipated 
that ethanol production will surpass the target for the year 2012 by 
the end of this year, five years early.
  Clearly, it is time to increase the RFS targets. I am pleased to be 
an original cosponsor of the bill introduced today by my colleagues, 
Senator Harkin and Senator Lugar, that will increase those targets to 
30 billion gallons by the year 2020 and 60 billion gallons by the year 
2030. I hope my colleagues will support the provisions of that bill.
  But for an expanded RFS to be successful, we must lay further 
groundwork. We cannot meet the targets and deadlines of an expanded RFS 
without a robust package of policies that set the stage for the next 
decade.
  So far, we've met our biofuels goals by producing ethanol made from 
sugars that come from corn. This approach, by itself, has been 
profoundly successful in many rural communities but will eventually 
reach its maximum capacity. While that day is still several years away, 
we must begin preparations now. We must build upon our current path. We 
must continue our pursuit in cracking the code for corn cellulosics. We 
must pour the foundation for the next generation of biofuels made from 
the broadest range of agriculture feedstocks. Our vocabulary must 
expand to cellulosics and biobut- anols, manure and miscanthus.
  The American Fuels Act, which I introduce today, breathes life into 
an expanded RFS. The American Fuels Act is the heart, the centerpiece, 
the key to ensuring that an expanded RFS is successful. That's why I am 
pleased to be joined today by my esteemed colleagues, Senator Lugar and 
Senator Harkin, in the introduction of this bill.
   The premise of the American Fuels Act is to create a ``Biofuels 
Triangle'' that focuses on (1). production, (2). distribution, and (3) 
consumption.
  To expand production, we create an ``Alternative Diesel Standard'' 
for diesels that complements the RFS for gasoline. The Alternative 
Diesel Standard requires 2 billion gallons of alternative diesels into 
the 40 billion gallon domestic diesel supply by the year 2016, 
encouraging greater use of biofuel feedstocks like vegetable oils, 
animal fats, coal-to-liquids, manure, and municipal waste. We call for 
the establishment of a cellulosic biomass fuels credit of an additional 
76.5 cents per gallon so that first-generation cellulosic plants can be 
built to meet the 250 million gallon production goals by 2012.
  To expand distribution, the American Fuels Act provides a tax credit 
for ethanol producers to invest in on-site blending equipment, 
bypassing oil refineries so that E-85 can be transported directly to 
the pump at your local gas station. Our bill also provides freedom for 
fuel franchisers by making it illegal for oil companies to stop their 
branded franchises from selling biofuels should these local businessmen 
wish to respond to their customer's request for biofuels. This bill 
also gives franchisers the power to sue oil companies for imposing any 
restrictions.
  And to expand consumption, the American Fuels Act encourages the 
manufacture of more vehicles that can function on higher ethanol blends 
like E-85 so that more passenger cars to be flexible fuel vehicles. We 
provide a $100 tax credit to automakers for each ethanol-capable 
vehicle produced beyond the CAFE credit or any other government 
requirement. We require that 100 percent of the Federal fleet must be 
ethanol-capable or hybrids in the next 7 years. And we require that any 
public transit agency that uses Federal dollars to upgrade bus fleets 
must purchase an alternative fuel bus, or pledge to use alternative 
fuels in those buses.
  To oversee these efforts, we create a Director of Energy Security in 
the Office of the President to ensure that our massive investment in 
domestically produced fuels get the national security leadership and 
coordination it requires.
  Our dependence on oil is hurting our economy and jeopardizing our 
national security by keeping us tied to the world's most dangerous and 
unstable regimes. It's the fossil fuels we insist on burning--
particularly oil--that are the single greatest cause of climate change 
and the damaging weather patterns that have been its result. Never has 
the failure to take on a single challenge so detrimentally affected 
nearly every aspect of our well-being as Nation. And never have the 
possible solutions had the potential to do so much good for so many 
generations to come.
  That's why I urge my colleagues to join us in cosponsoring the 
American Fuels Act. I ask for their support, and for the swift 
enactment of this bill. I ask unanimous consent that the text of the 
American Fuels Act 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. 133

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``American 
     Fuels Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Office of Energy Security.
Sec. 3. Credit for production of qualified flexible fuel motor 
              vehicles.
Sec. 4. Incentives for the retail sale of alternative fuels as motor 
              vehicle fuel.
Sec. 5. Freedom for fuel franchisers.
Sec. 6. Alternative diesel fuel content of diesel.
Sec. 7. Excise tax credit for production of cellulosic biomass ethanol.
Sec. 8. Incentive for Federal and State fleets for medium and heavy 
              duty hybrids.
Sec. 9. Credit for qualifying ethanol blending and processing 
              equipment.
Sec. 10. Public access to Federal alternative refueling stations.
Sec. 11. Purchase of clean fuel buses.
Sec. 12. Domestic fuel production volumes to meet Department of Defense 
              needs.
Sec. 13. Federal fleet energy conservation improvement.

     SEC. 2. OFFICE OF ENERGY SECURITY.

       (a) Definitions.--In this section:
       (1) Director.--The term ``Director'' means the Director of 
     Energy Security appointed under subsection (c)(1).
       (2) Office.--The term ``Office'' means the Office of Energy 
     Security established by subsection (b).
       (b) Establishment.--There is established in the Executive 
     Office of the President the Office of Energy Security.
       (c) Director.--
       (1) In general.--The Office shall be headed by a Director, 
     who shall be appointed by the President, by and with the 
     advice and consent of the Senate.
       (2) Rate of pay.--The Director shall be paid at a rate of 
     pay equal to level I of the Executive Schedule under section 
     5312 of title 5, United States Code.
       (d) Responsibilities.--
       (1) In general.--The Office, acting through the Director, 
     shall be responsible for overseeing all Federal energy 
     security programs, including the coordination of efforts of 
     Federal agencies to assist the United States in achieving 
     full energy independence.
       (2) Specific responsibilities.--In carrying out paragraph 
     (1), the Director shall--
       (A) serve as head of the energy community;
       (B) act as the principal advisor to the President, the 
     National Security Council,

[[Page 193]]

     the National Economic Council, the Domestic Policy Council, 
     and the Homeland Security Council with respect to 
     intelligence matters relating to energy security;
       (C) with request to budget requests and appropriations for 
     Federal programs relating to energy security--
       (i) consult with the President and the Director of the 
     Office of Management and Budget with respect to each major 
     Federal budgetary decision relating to energy security of the 
     United States;
       (ii) based on priorities established by the President, 
     provide to the heads of departments containing agencies or 
     organizations within the energy community, and to the heads 
     of such agencies and organizations, guidance for use in 
     developing the budget for Federal programs relating to energy 
     security;
       (iii) based on budget proposals provided to the Director by 
     the heads of agencies and organizations described in clause 
     (ii), develop and determine an annual consolidated budget for 
     Federal programs relating to energy security; and
       (iv) present the consolidated budget, together with any 
     recommendations of the Director and any heads of agencies and 
     organizations described in clause (ii), to the President for 
     approval;
       (D) establish and meet regularly with a council of business 
     and labor leaders to develop and provide to the President and 
     Congress recommendations relating to the impact of energy 
     supply and prices on economic growth;
       (E) submit to Congress an annual report that describes the 
     progress of the United States toward the goal of achieving 
     full energy independence; and
       (F) carry out such other responsibilities as the President 
     may assign.
       (e) Staff.--
       (1) In general.--The Director may, without regard to the 
     civil service laws (including regulations), appoint and 
     terminate such personnel as are necessary to enable the 
     Director to carry out the responsibilities of the Director 
     under this section.
       (2) Compensation.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Director may fix the compensation of personnel without 
     regard to the provisions of chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification of positions and General Schedule pay rates.
       (B) Maximum rate of pay.--The rate of pay for the personnel 
     appointed by the Director shall not exceed the rate payable 
     for level V of the Executive Schedule under section 5316 of 
     title 5, United States Code.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 3. CREDIT FOR PRODUCTION OF QUALIFIED FLEXIBLE FUEL 
                   MOTOR VEHICLES.

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

     ``SEC. 45O. PRODUCTION OF QUALIFIED FLEXIBLE FUEL MOTOR 
                   VEHICLES.

       ``(a) Allowance of Credit.--For purposes of section 38, in 
     the case of a manufacturer, the qualified flexible fuel motor 
     vehicle production credit determined under this section for 
     any taxable year is an amount equal to the incremental 
     flexible fuel motor vehicle cost for each qualified flexible 
     fuel motor vehicle produced in the United States by the 
     manufacturer during the taxable year.
       ``(b) Incremental Flexible Fuel Motor Vehicle Cost.--With 
     respect to any qualified flexible fuel motor vehicle, the 
     incremental flexible fuel motor vehicle cost is an amount 
     equal to the lesser of--
       ``(1) the excess of--
       ``(A) the cost of producing such qualified flexible fuel 
     motor vehicle, over
       ``(B) the cost of producing such motor vehicle if such 
     motor vehicle was not a qualified flexible fuel motor 
     vehicle, or
       ``(2) $100.
       ``(c) Qualified Flexible Fuel Motor Vehicle.--For purposes 
     of this section, the term `qualified flexible fuel motor 
     vehicle' means a flexible fuel motor vehicle--
       ``(1) the production of which is not required for the 
     manufacturer to meet--
       ``(A) the maximum credit allowable for vehicles described 
     in paragraph (2) in determining the fleet average fuel 
     economy requirements (as determined under section 32904 of 
     title 49, United States Code) of the manufacturer for the 
     model year ending in the taxable year, or
       ``(B) the requirements of any other provision of Federal 
     law, and
       ``(2) which is designed so that the vehicle is propelled by 
     an engine which can use as a fuel a gasoline mixture of which 
     85 percent (or another percentage of not less than 70 
     percent, as the Secretary may determine, by rule, to provide 
     for requirements relating to cold start, safety, or vehicle 
     functions) of the volume of consists of ethanol.
       ``(d) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Motor vehicle.--The term `motor vehicle' has the 
     meaning given such term by section 30(c)(2).
       ``(2) Manufacturer.--The term `manufacturer' has the 
     meaning given such term in regulations prescribed by the 
     Administrator of the Environmental Protection Agency for 
     purposes of the administration of title II of the Clean Air 
     Act (42 U.S.C. 7521 et seq.).
       ``(3) Reduction in basis.--For purposes of this subtitle, 
     if a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this paragraph) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(4) No double benefit.--The amount of any deduction or 
     credit allowable under this chapter (other than the credits 
     allowable under this section and section 30B) shall be 
     reduced by the amount of credit allowed under subsection (a) 
     for such vehicle for the taxable year.
       ``(5) Election not to take credit.--No credit shall be 
     allowed under subsection (a) for any vehicle if the taxpayer 
     elects to not have this section apply to such vehicle.
       ``(6) Termination.--This section shall not apply to any 
     vehicle produced after December 31, 2011.
       ``(7) Cross reference.--For an election to claim certain 
     minimum tax credits in lieu of the credit determined under 
     this section, see section 53(e).''.
       (b) Credit Allowed Against the Alternative Minimum Tax.--
     Section 38(c)(4)(B) of the Internal Revenue Code of 1986 
     (defining specified credits) is amended by striking the 
     period at the end of clause (ii)(II) and inserting ``, and'', 
     and by adding at the end the following new clause:
       ``(iii) the credit determined under section 45O.''.
       (c) Election to Use Additional AMT Credit.--Section 53 of 
     the Internal Revenue Code of 1986 (relating to credit for 
     prior year minimum tax liability) is amended by adding at the 
     end the following new subsection:
       ``(e) Additional Credit in Lieu of Flexible Fuel Motor 
     Vehicle Credit.--
       ``(1) In general.--In the case of a taxpayer making an 
     election under this subsection for a taxable year, the amount 
     otherwise determined under subsection (c) shall be increased 
     by any amount of the credit determined under section 45O for 
     such taxable year which the taxpayer elects not to claim 
     pursuant to such election.
       ``(2) Election.--A taxpayer may make an election for any 
     taxable year not to claim any amount of the credit allowable 
     under section 45O with respect to property produced by the 
     taxpayer during such taxable year. An election under this 
     subsection may only be revoked with the consent of the 
     Secretary.
       ``(3) Credit refundable.--The aggregate increase in the 
     credit allowed by this section for any taxable year by reason 
     of this subsection shall for purposes of this title (other 
     than subsection (b)(2) of this section) be treated as a 
     credit allowed to the taxpayer under subpart C.''.
       (d) Conforming Amendments.--Section 38(b) of the Internal 
     Revenue Code of 1986 is amended by striking ``plus'' at the 
     end of paragraph (30), by striking the period at the end of 
     paragraph (31) and inserting ``, plus'', and by adding at the 
     end the following new paragraph:
       ``(32) the qualified flexible fuel motor vehicle production 
     credit determined under section 45N, plus''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 45O. Production of qualified flexible fuel motor vehicles.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to motor vehicles produced in model years ending 
     after the date of the enactment of this Act.

     SEC. 4. INCENTIVES FOR THE RETAIL SALE OF ALTERNATIVE FUELS 
                   AS MOTOR VEHICLE FUEL.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business related credits) is amended by inserting after 
     section 40A the following new section:

     ``SEC. 40B. CREDIT FOR RETAIL SALE OF ALTERNATIVE FUELS AS 
                   MOTOR VEHICLE FUEL.

       ``(a) General Rule.--The alternative fuel retail sales 
     credit for any taxable year is the applicable amount for each 
     gallon of alternative fuel sold at retail by the taxpayer 
     during such year.
       ``(b) Applicable Amount.--For purposes of this section, the 
     applicable amount shall be determined in accordance with the 
     following table:

``In the case of any sale:                        The applicable amount
                                                   for each gallon is: 
Before 2010...................................................35 cents 
During 2010 or 2011...........................................20 cents 
During 2012...................................................10 cents.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Alternative fuel.--The term `alternative fuel' means 
     any fuel at least 85 percent (or another percentage of not 
     less than 70 percent, as the Secretary may determine, by 
     rule, to provide for requirements relating to cold start, 
     safety, or vehicle functions) of the volume of which consists 
     of ethanol.
       ``(2) Sold at retail.--

[[Page 194]]

       ``(A) In general.--The term `sold at retail' means the 
     sale, for a purpose other than resale, after manufacture, 
     production, or importation.
       ``(B) Use treated as sale.--If any person uses alternative 
     fuel (including any use after importation) as a fuel to 
     propel any qualified alternative fuel motor vehicle (as 
     defined in this section) before such fuel is sold at retail, 
     then such use shall be treated in the same manner as if such 
     fuel were sold at retail as a fuel to propel such a vehicle 
     by such person.
       ``(3) Qualified alternative fuel motor vehicle.--The term 
     `new qualified alternative fuel motor vehicle' means any 
     motor vehicle--
       ``(A) which is capable of operating on an alternative fuel,
       ``(B) the original use of which commences with the 
     taxpayer,
       ``(C) which is acquired by the taxpayer for use or lease, 
     but not for resale, and
       ``(D) which is made by a manufacturer.
       ``(d) Election To Pass Credit.--A person which sells 
     alternative fuel at retail may elect to pass the credit 
     allowable under this section to the purchaser of such fuel 
     or, in the event the purchaser is a tax-exempt entity or 
     otherwise declines to accept such credit, to the person which 
     supplied such fuel, under rules established by the Secretary.
       ``(e) Pass-Thru in the Case of Estates and Trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(f) Termination.--This section shall not apply to any 
     fuel sold at retail after December 31, 2012.''.
       (b) Credit Treated as Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 (relating to current year 
     business credit), as amended by section 4(d), is amended by 
     striking ``plus'' at the end of paragraph (31), by striking 
     the period at the end of paragraph (32) and inserting ``, 
     plus'', and by adding at the end the following new paragraph:
       ``(33) the alternative fuel retail sales credit determined 
     under section 40B(a).''.
       (c) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 40A the following new item:

``Sec. 40B. Credit for retail sale of alternative fuels as motor 
              vehicle fuel.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to fuel sold at retail after the date of 
     enactment of this Act, in taxable years ending after such 
     date.

     SEC. 5. FREEDOM FOR FUEL FRANCHISERS.

       (a) Prohibition on Restriction of Installation of 
     Alternative Fuel Pumps.--
       (1) In general.--Title I of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801 et seq.) is amended by adding 
     at the end the following:

     ``SEC. 107. PROHIBITION ON RESTRICTION OF INSTALLATION OF 
                   ALTERNATIVE FUEL PUMPS.

       ``(a) Definition.--In this section:
       ``(1) Alternative fuel.--The term `alternative fuel' means 
     any fuel--
       ``(A) at least 85 percent of the volume of which consists 
     of ethanol, natural gas, compressed natural gas, liquefied 
     natural gas, liquefied petroleum gas, hydrogen, or any 
     combination of those fuels; or
       ``(B) any mixture of biodiesel (as defined in section 
     40A(d)(1) of the Internal Revenue Code of 1986) and diesel 
     fuel (as defined in section 4083(a)(3) of the Internal 
     Revenue Code of 1986), determined without regard to any use 
     of kerosene and containing at least 20 percent biodiesel.
       ``(2) Franchise-related document.--The term `franchise-
     related document' means--
       ``(A) a franchise under this Act; and
       ``(B) any other contract or directive of a franchisor 
     relating to terms or conditions of the sale of fuel by a 
     franchisee.
       ``(b) Prohibitions.--
       ``(1) In general.--Notwithstanding any provision of a 
     franchise-related document in effect on the date of enactment 
     of this section, no franchisee or affiliate of a franchisee 
     shall be restricted from--
       ``(A) installing on the marketing premises of the 
     franchisee an alternative fuel pump;
       ``(B) converting an existing tank and pump on the marketing 
     premises of the franchisee for alternative fuel use;
       ``(C) advertising (including through the use of signage or 
     logos) the sale of any alternative fuel; or
       ``(D) selling alternative fuel in any specified area on the 
     marketing premises of the franchisee (including any area in 
     which a name or logo of a franchisor or any other entity 
     appears).
       ``(2) Enforcement.--Any restriction described in paragraph 
     (1) that is contained in a franchise-related document and in 
     effect on the date of enactment of this section--
       ``(A) shall be considered to be null and void as of that 
     date; and
       ``(B) shall not be enforced under section 105.
       ``(c) Exception to 3-Grade Requirement.--No franchise-
     related document that requires that 3 grades of gasoline be 
     sold by the applicable franchisee shall prevent the 
     franchisee from selling an alternative fuel in lieu of 1 
     grade of gasoline.''.
       (2) Conforming amendments.--
       (A) In general.--Section 101(13) of the Petroleum Marketing 
     Practices Act (15 U.S.C. 2801(13)) is amended by adjusting 
     the indentation of subparagraph (C) appropriately.
       (B) Table of contents.--The table of contents of the 
     Petroleum Marketing Practices Act (15 U.S.C. 2801 note) is 
     amended--
       (i) by inserting after the item relating to section 106 the 
     following:

``Sec. 107. Prohibition on restriction of installation of alternative 
              fuel pumps.'';

     and
       (ii) by striking the item relating to section 202 and 
     inserting the following:

``Sec. 202. Automotive fuel rating testing and disclosure 
              requirements.''.

       (b) Application of Gasohol Competition Act of 1980.--
     Section 26 of the Clayton Act (15 U.S.C. 26a) is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by inserting after subsection (b) the following:
       ``(c) Restriction Prohibited.--For purposes of subsection 
     (a), restricting the right of a franchisee to install on the 
     premises of that franchisee qualified alternative fuel 
     vehicle refueling property (as defined in section 30C(c) of 
     the Internal Revenue Code of 1986) shall be considered an 
     unlawful restriction.''; and
       (3) in subsection (d) (as redesignated by paragraph (1)), 
     by striking ``(d) As used in this section,'' and inserting 
     the following:

     SEC. 6. ALTERNATIVE DIESEL FUEL CONTENT OF DIESEL.

       (a) Findings.--Congress finds that--
       (1) section 211(o) of the Clean Air Act (42 U.S.C. 7535(o)) 
     (as amended by section 1501 of the Energy Policy Act of 2005 
     (Public Law 109-58)) established a renewable fuel program 
     under which entities in the petroleum sector are required to 
     blend renewable fuels into motor vehicle fuel based on the 
     gasoline motor pool;
       (2) the need for energy diversification is greater as of 
     the date of enactment of this Act than it was only months 
     before the date of enactment of the Energy Policy Act (Public 
     Law 109-58; 119 Stat. 594); and
       (3)(A) the renewable fuel program under section 211(o) of 
     the Clean Air Act requires a small percentage of the gasoline 
     motor pool, totaling nearly 140,000,000,000 gallons, to 
     contain a renewable fuel; and
       (B) the small percentage requirement described in 
     subparagraph (A) does not include the 40,000,000,000-gallon 
     diesel motor pool.
       (b) Alternative Diesel Fuel Program for Diesel Motor 
     Pool.--Section 211 of the Clean Air Act (42 U.S.C. 7545) is 
     amended by inserting after subsection (o) the following:
       ``(p) Alternative Diesel Fuel Program for Diesel Motor 
     Pool.--
       ``(1) Definition of alternative diesel fuel.--
       ``(A) In general.--In this subsection, the term 
     `alternative diesel fuel' means biodiesel (as defined in 
     section 312(f) of the Energy Policy Act of 1992 (42 U.S.C. 
     13220(f))) and any blending components derived from 
     alternative fuel (provided that only the alternative fuel 
     portion of any such blending component shall be considered to 
     be part of the applicable volume under the alternative diesel 
     fuel program established by this subsection).
       ``(B) Inclusions.--The term `alternative diesel fuel' 
     includes a diesel fuel substitute produced from--
       ``(i) animal fat;
       ``(ii) plant oil;
       ``(iii) recycled yellow grease;
       ``(iv) single-cell or microbial oil;
       ``(v) thermal depolymerization;
       ``(vi) thermochemical conversion;
       ``(vii) a coal-to-liquid process (including the Fischer-
     Tropsch process) that provides for the sequestration of 
     carbon emissions;
       ``(viii) a diesel-ethanol blend of not less than 7 percent 
     ethanol; or
       ``(ix) sugar, starch, or cellulosic biomass.
       ``(2) Alternative diesel fuel program.--
       ``(A) Regulations.--
       ``(i) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator shall 
     promulgate regulations to ensure that diesel sold or 
     introduced into commerce in the United States (except in 
     noncontiguous States or territories), on an annual average 
     basis, contains the applicable volume of alternative diesel 
     fuel determined in accordance with subparagraph (B).
       ``(ii) Provisions of regulations.--Regardless of the date 
     of promulgation, the regulations promulgated under clause 
     (i)--

       ``(I) shall contain compliance provisions applicable to 
     refineries, blenders, distributors, and importers, as 
     appropriate, to ensure that the requirements of this 
     paragraph are met; but
       ``(II) shall not--

       ``(aa) restrict geographic areas in which alternative 
     diesel fuel may be used; or
       ``(bb) impose any per-gallon obligation for the use of 
     alternative diesel fuel.
       ``(iii) Requirement in case of failure to promulgate 
     regulations.--If the Administrator fails to promulgate 
     regulations under clause (i), the percentage of alternative 
     diesel fuel in the diesel motor pool sold or dispensed to 
     consumers in the United States, on

[[Page 195]]

     a volume basis, shall be 0.6 percent for calendar year 2009.
       ``(B) Applicable volume.--
       ``(i) Calendar years 2009 through 2016.--For the purpose of 
     subparagraph (A), the applicable volume for any of calendar 
     years 2009 through 2016 shall be determined in accordance 
     with the following table:

``Applicable volume of Alternative diesel fuel in diesel motor pool (in 
  millions of gallons):                                  Calendar year:
  
  250..............................................................2009
  500..............................................................2010
  750..............................................................2011
  1,000............................................................2012
  1,250............................................................2013
  1,500............................................................2014
  1,750............................................................2015
  2,000............................................................2016

       ``(ii) Calendar year 2017 and thereafter.--The applicable 
     volume for calendar year 2017 and each calendar year 
     thereafter shall be determined by the Administrator, in 
     coordination with the Secretary of Agriculture and the 
     Secretary of Energy, based on a review of the implementation 
     of the program during calendar years 2009 through 2016, 
     including a review of--

       ``(I) the impact of the use of alternative diesel fuels on 
     the environment, air quality, energy security, job creation, 
     and rural economic development; and
       ``(II) the expected annual rate of future production of 
     alternative diesel fuels to be used as a blend component or 
     replacement to the diesel motor pool.

       ``(iii) Minimum applicable volume.--For the purpose of 
     subparagraph (A), the applicable volume for calendar year 
     2017 and each calendar year thereafter shall be equal to the 
     product obtained by multiplying--

       ``(I) the number of gallons of diesel that the 
     Administrator estimates will be sold or introduced into 
     commerce during the calendar year; and
       ``(II) the ratio that--

       ``(aa) 2,000,000,000 gallons of alternative diesel fuel; 
     bears to
       ``(bb) the number of gallons of diesel sold or introduced 
     into commerce during calendar year 2016.
       ``(3) Applicable percentages.--
       ``(A) Provision of estimate of volumes of diesel sales.--
     Not later than October 31 of each of calendar years 2008 
     through 2016, the Administrator of the Energy Information 
     Administration shall provide to the Administrator an 
     estimate, with respect to the following calendar year, of the 
     volumes of diesel projected to be sold or introduced into 
     commerce in the United States.
       ``(B) Determination of applicable percentages.--
       ``(i) In general.--Not later than November 30 of each of 
     calendar years 2009 through 2016, based on the estimate 
     provided under subparagraph (A), the Administrator shall 
     determine and publish in the Federal Register, with respect 
     to the following calendar year, the alternative diesel fuel 
     obligation that ensures that the requirements of paragraph 
     (2) are met.
       ``(ii) Required elements.--The alternative diesel fuel 
     obligation determined for a calendar year under clause (i) 
     shall--

       ``(I) be applicable to refineries, blenders, and importers, 
     as appropriate;
       ``(II) be expressed in terms of a volume percentage of 
     diesel sold or introduced into commerce in the United States; 
     and
       ``(III) subject to subparagraph (C), consist of a single 
     applicable percentage that applies to all categories of 
     persons described in subclause (I).

       ``(C) Adjustments.--In determining the applicable 
     percentage for a calendar year, the Administrator shall make 
     adjustments to prevent the imposition of redundant 
     obligations on any person described in subparagraph 
     (B)(ii)(I).
       ``(4) Credit program.--
       ``(A) In general.--The regulations promulgated pursuant to 
     paragraph (2)(A) shall provide for the generation of an 
     appropriate amount of credits by any person that refines, 
     blends, or imports diesel that contains a quantity of 
     alternative diesel fuel that is greater than the quantity 
     required under paragraph (2).
       ``(B) Use of credits.--A person that generates a credit 
     under subparagraph (A) may use the credit, or transfer all or 
     a portion of the credit to another person, for the purpose of 
     complying with regulations promulgated pursuant to paragraph 
     (2).
       ``(C) Duration of credits.--A credit generated under this 
     paragraph shall be valid during the 1-year period beginning 
     on the date on which the credit is generated.
       ``(D) Inability to generate or purchase sufficient 
     credits.--The regulations promulgated pursuant to paragraph 
     (2)(A) shall include provisions allowing any person that is 
     unable to generate or purchase sufficient credits under 
     subparagraph (A) to meet the requirements of paragraph (2) by 
     carrying forward a credit generated during a previous year on 
     the condition that the person, during the calendar year 
     following the year in which the alternative diesel fuel 
     deficit is created--
       ``(i) achieves compliance with the alternative diesel fuel 
     requirement under paragraph (2); and
       ``(ii) generates or purchases additional credits under 
     subparagraph (A) to offset the deficit of the previous year.
       ``(5) Waivers.--
       ``(A) In general.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     waive the requirements of paragraph (2) in whole or in part 
     on receipt of a petition of 1 or more States by reducing the 
     national quantity of alternative diesel fuel for the diesel 
     motor pool required under paragraph (2) based on a 
     determination by the Administrator, after public notice and 
     opportunity for comment, that--
       ``(i) implementation of the requirement would severely harm 
     the economy or environment of a State, a region, or the 
     United States; or
       ``(ii) there is an inadequate domestic supply of 
     alternative diesel fuel.
       ``(B) Petitions for waivers.--Not later than 90 days after 
     the date on which the Administrator receives a petition under 
     subparagraph (A), the Administrator, in consultation with the 
     Secretary of Agriculture and the Secretary of Energy, shall 
     approve or disapprove the petition.
       ``(C) Termination of waivers.--
       ``(i) In general.--Except as provided in clause (ii), a 
     waiver under subparagraph (A) shall terminate on the date 
     that is 1 year after the date on which the waiver is 
     provided.
       ``(ii) Exception.--The Administrator, in consultation with 
     the Secretary of Agriculture and the Secretary of Energy, may 
     extend a waiver under subparagraph (A), as the Administrator 
     determines to be appropriate.''.
       (c) Penalties and Enforcement.--Section 211(d) of the Clean 
     Air Act (42 U.S.C. 7545(d)) is amended--
       (1) in paragraph (1), by striking ``or (o)'' each place it 
     appears and inserting ``(o), or (p)''; and
       (2) in paragraph (2), by striking ``and (o)'' each place it 
     appears and inserting ``(o), and (p)''.
       (d) Technical Amendments.--Section 211 of the Clean Air Act 
     (42 U.S.C. 7545) is amended--
       (1) in subsection (i)(4), by striking ``section 324'' each 
     place it appears and inserting ``section 325'';
       (2) in subsection (k)(10), by indenting subparagraphs (E) 
     and (F) appropriately;
       (3) in subsection (n), by striking ``section 219(2)'' and 
     inserting ``section 216(2)'';
       (4) by redesignating the second subsection (r) and 
     subsection (s) as subsections (s) and (t), respectively; and
       (5) in subsection (t)(1) (as redesignated by paragraph 
     (4)), by striking ``this subtitle'' and inserting ``this 
     part''.

     SEC. 7. EXCISE TAX CREDIT FOR PRODUCTION OF CELLULOSIC 
                   BIOMASS ETHANOL.

       (a) Allowance of Excise Tax Credit.--
       (1) In general.--Section 6426 of the Internal Revenue Code 
     of 1986 (relating to credit for alcohol fuel, biodiesel, and 
     alternative fuel mixtures) is amended by redesignating 
     subsections (f) and (g) as subsections (g) and (h), 
     respectively, and by inserting after subsection (e) the 
     following new subsection:
       ``(f) Cellulosic Biomass Ethanol Credit.--
       ``(1) In general.--For purposes of this section, in the 
     case of a cellulosic biomass ethanol producer, the cellulosic 
     biomass ethanol credit is the product of--
       ``(A) the product of 51 cents times the equivalent number 
     of gallons of renewable fuel specified in section 211(o)(4) 
     of the Clean Air Act, times
       ``(B) the number of gallons of qualified cellulosic biomass 
     ethanol fuel production of such producer.
       ``(2) Definitions.--
       ``(A) Cellulosic biomass ethanol.--The term `cellulosic 
     biomass ethanol' has the meaning given such term under 
     section 211(o)(1)(A) of the Clean Air Act.
       ``(B) Qualified cellulosic biomass ethanol fuel 
     production.--The term `qualified cellulosic biomass ethanol 
     fuel production' means any alcohol which is cellulosic 
     biomass ethanol which during the taxable year--
       ``(i) is sold by the producer to another person --

       ``(I) for use by such other person in the production of an 
     alcohol fuel mixture in such other person's trade or business 
     (other than casual off-farm production),
       ``(II) for use by such other person as a fuel in a trade or 
     business, or
       ``(III) who sells such cellulosic biomass ethanol at retail 
     to another person and places such ethanol in the fuel tank of 
     such other person, or

       ``(ii) is used or sold by the producer for any purpose 
     described in clause (i).
       ``(3) Denial of double benefit.--No credit shall be allowed 
     under subsection (b) or (c) to any taxpayer with respect to 
     any fuel to the extent that a credit has been allowed with 
     respect to such fuel to any taxpayer under this subsection or 
     a payment has been made with respect to such fuel under 
     section 6427(e).
       ``(4) Termination.--This section shall not apply to any 
     sale or use for any period after December 31, 2008.''.
       (2) Conforming amendments.--
       (A) Section 6426(a) of such Code is amended--

[[Page 196]]

       (i) by striking ``subsection (d)'' in paragraph (2) and 
     inserting ``subsections (d) and (f)'', and
       (ii) by striking ``and (e)'' in the last sentence and 
     inserting ``, (e), and (f)''.
       (B) The heading for section 6426 of such Code is amended to 
     read as follows:

     ``SEC. 6426. CREDIT FOR CERTAIN FUELS AND FUEL MIXTURES.''.

       (C) The table of section for subchapter B of chapter 65 of 
     such Code is amended by striking the item relating to section 
     6426 and inserting the following new item:

``Sec. 6426. Credit for certain fuels and fuel mixtures.''.

       (b) Cellulosic Biomass Ethanol Not Used for a Taxable 
     Purpose.--
       (1) In general.--Section 6427(e) of the Internal Revenue 
     Code of 1986 is amended by redesignating paragraphs (3) 
     through (5) as paragraphs (4) through (6), respectively, and 
     by inserting after paragraph (2) the following new paragraph:
       ``(3) Cellulosic biomass ethanol.--If any person sells or 
     uses cellulosic biomass ethanol (as defined in section 
     6426(f)(2)(A)) for a purpose described in section 
     6426(f)(2)(B) in such person's trade or business, the 
     Secretary shall pay (without interest) to such person an 
     amount equal to the cellulosic biomass ethanol credit with 
     respect to such fuel.''.
       (2) Denial of double benefit.--Paragraph (4) of section 
     6427(e) of such Code, as redesignated by paragraph (1), is 
     amended to read as follows:
       ``(4) Coordination with other repayment provisions.--
       ``(A) In general.--No amount shall be payable under 
     paragraph (1), (2), or (3) with respect to any mixture, 
     alternative fuel, or cellulosic biomass ethanol with respect 
     to which an amount is allowed as a credit under section 6426.
       ``(B) Cellulosic biomass ethanol.--No amount shall be 
     payable under paragraph (1) or (2) with respect to any 
     cellulosic biomass ethanol if a payment has been made with 
     respect to such ethanol under paragraph (3).''.
       (3) Termination.--Paragraph (6) of section 6427(e) of such 
     Code, as redesignated by paragraph (1), is amended by 
     striking ``and'' at the end of subparagraph (C), by striking 
     the period at the end of subparagraph (D) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(E) any cellulosic biomass ethanol credit (as defined in 
     section 6426(f)(2)(A)) sold or used after December 31, 
     2008.''.
       (4) Conforming amendment.--Paragraph (5) of section 6427(e) 
     of such Code, as redesignated by paragraph (1), is amended by 
     striking ``or alternative fuel mixture credit'' and inserting 
     ``, alternative fuel mixture credit, or cellulosic biomass 
     ethanol credit''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after the date of the 
     enactment of this Act.

     SEC. 8. INCENTIVE FOR FEDERAL AND STATE FLEETS FOR MEDIUM AND 
                   HEAVY DUTY HYBRIDS.

       Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211) is amended--
       (1) in paragraph (3), by striking ``or a dual fueled 
     vehicle'' and inserting ``, a dual fueled vehicle, or a 
     medium or heavy duty vehicle that is a hybrid vehicle'';
       (2) by redesignating paragraphs (11), (12), (13), and (14) 
     as paragraphs (12), (14), (15), and (16), respectively;
       (3) by inserting after paragraph (10) the following:
       ``(11) the term `hybrid vehicle' means a vehicle powered 
     both by a diesel or gasoline engine and an electric motor 
     that is recharged as the vehicle operates;''; and
       (4) by inserting after paragraph (12) (as redesignated by 
     paragraph (2)) the following:
       ``(13) the term `medium or heavy duty vehicle' means a 
     vehicle that--
       ``(A) in the case of a medium duty vehicle, has a gross 
     vehicle weight rating of more than 8,500 pounds but not more 
     than 14,000 pounds; and
       ``(B) in the case of a heavy duty vehicle, has a gross 
     vehicle weight rating of more than 14,000 pounds;''.

     SEC. 9. CREDIT FOR QUALIFYING ETHANOL BLENDING AND PROCESSING 
                   EQUIPMENT.

       (a) Allowance of Qualifying Ethanol Blending and Processing 
     Equipment Credit.--Section 46 of the Internal Revenue Code of 
     1986 (relating to amount of credit) is amended by striking 
     ``and'' at the end of paragraph (3), by striking the period 
     at the end of paragraph (4) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(5) the qualifying ethanol blending and processing 
     equipment credit.''.
       (b) Amount of Qualifying Ethanol Blending and Processing 
     Equipment Credit.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     rules for computing investment credit) is amended by 
     inserting after section 48B the following new section:

     ``SEC. 48C. QUALIFYING ETHANOL BLENDING AND PROCESSING 
                   EQUIPMENT.

       ``(a) In General.--For purposes of section 46, the 
     qualifying ethanol blending and processing equipment credit 
     for any taxable year is an amount equal to 50 percent of the 
     basis of the qualifying ethanol blending and processing 
     equipment placed in service at a qualifying facility during 
     such taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     for qualifying ethanol blending and processing equipment 
     placed in service at any 1 qualifying facility during any 
     taxable year shall not exceed $2,000,000.
       ``(c) Qualifying Ethanol Blending and Processing 
     Equipment.--For purposes of this section, the term 
     `qualifying ethanol blending and processing equipment' means 
     any technology installed in or on a qualifying facility for 
     blending ethanol with petroleum fuels for the purpose of 
     direct retail sale, including in-line blending equipment, 
     storage tanks, pumps and piping for denaturants, and load-out 
     equipment.
       ``(d) Qualifying Facility.--For purposes of this section, 
     the term `qualifying facility' means any facility which 
     produces not less than 1,000,000 gallons of ethanol during 
     the taxable year.
       ``(e) Special Rule for Certain Subsidized Property.--Rules 
     similar to section 48(a)(4) shall apply for purposes of this 
     section.
       ``(f) Certain Qualified Progress Expenditures Rules Made 
     Applicable.--Rules similar to the rules of subsections (c)(4) 
     and (d) of section 46 (as in effect on the day before the 
     enactment of the Revenue Reconciliation Act of 1990) shall 
     apply for purposes of this subsection.
       ``(g) Termination.--This section shall not apply to 
     property placed in service after December 31, 2014.''.
       (c) Recapture of Credit Where Emissions Reduction Offset Is 
     Sold.--Paragraph (1) of section 50(a) of the Internal Revenue 
     Code of 1986 is amended by redesignating subparagraph (B) as 
     subparagraph (C) and by inserting after subparagraph (A) the 
     following new subparagraph:
       ``(B) Special rule for qualifying ethanol blending and 
     processing equipment.--For purposes of subparagraph (A), any 
     investment property which is qualifying ethanol blending and 
     processing equipment (as defined in section 48C(c)) shall 
     cease to be investment credit property with respect to a 
     taxpayer if such taxpayer receives a payment in exchange for 
     a credit for emission reductions attributable to such 
     qualifying pollution control equipment for purposes of an 
     offset requirement under part D of title I of the Clean Air 
     Act.''.
       (d) Special Rule for Basis Reduction; Recapture of 
     Credit.--Paragraph (3) of section 50(c) of the Internal 
     Revenue Code of 1986 (relating to basis adjustment to 
     investment credit property) is amended by inserting ``or 
     qualifying ethanol blending and processing equipment credit'' 
     after ``energy credit''.
       (e) Certain Nonrecourse Financing Excluded From Credit 
     Base.--Section 49(a)(1)(C) of the Internal Revenue Code of 
     1986 (defining credit base) is amended by striking ``and'' at 
     the end of clause (iii), by striking the period at the end of 
     clause (iv) and inserting ``, and'', and by adding at the end 
     the following new clause:
       ``(v) the basis of any property which is part of any 
     qualifying ethanol blending and processing equipment under 
     section 48C.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007, in taxable years ending after such date, under rules 
     similar to the rules of section 48(m) of the Internal Revenue 
     Code of 1986 (as in effect on the day before the date of the 
     enactment of the Revenue Reconciliation Act of 1990).

     SEC. 10. PUBLIC ACCESS TO FEDERAL ALTERNATIVE REFUELING 
                   STATIONS.

       (a) Definitions.--In this section:
       (1) Alternative fuel refueling station.--The term 
     ``alternative fuel refueling station'' has the meaning given 
     the term ``qualified alternative fuel vehicle refueling 
     property'' in section 30C(c)(1) of the Internal Revenue Code 
     of 1986.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (b) Access to Federal Alternative Refueling Stations.--Not 
     later than 18 months after the date of enactment of this 
     Act--
       (1) except as provided in subsection (d)(1), any Federal 
     property that includes at least 1 fuel refueling station 
     shall include at least 1 alternative fuel refueling station; 
     and
       (2) except as provided in subsection (d)(2), any 
     alternative fuel refueling station located on property owned 
     by the Federal government shall permit full public access for 
     the purpose of refueling using alternative fuel.
       (c) Duration.--The requirements described in subsection (b) 
     shall remain in effect until the sooner of--
       (1) the date that is 7 years after the date of enactment of 
     this Act; or
       (2) the date on which the Secretary determines that not 
     less than 5 percent of the commercial refueling 
     infrastructure in the United States offers alternative fuels 
     to the general public.
       (d) Exceptions.--
       (1) Waiver.--Subsection (b)(1) shall not apply to any 
     Federal property under the jurisdiction of a Federal agency 
     if the Secretary determines that alternative fuel is not 
     reasonably available to retail purchasers of the fuel, as 
     certified by the head of the agency to the Secretary.
       (2) National security exemption.--Subsection (b)(2) does 
     not apply to property of the Federal government that the 
     Secretary,

[[Page 197]]

     in consultation with the Secretary of Defense, has certified 
     must be exempt for national security reasons.
       (e) Report.--Not later than October 31 of each year 
     beginning after the date of enactment of this Act, the 
     President shall submit to Congress a report that describes 
     the progress of the agencies of the Federal Government 
     (including the Executive Office of the President) in 
     complying with--
       (1) the Energy Policy Act of 1992 (42 U.S.C. 13201 et 
     seq.);
       (2) Executive Order 13149 (65 Fed. Reg. 24595; relating to 
     greening the government through Federal fleet and 
     transportation efficiency); and
       (3) the fueling center requirements of this section.

     SEC. 11. PURCHASE OF CLEAN FUEL BUSES.

       (a) In General.--Chapter 53 of title 49, United States 
     Code, is amended by inserting after section 5325 the 
     following:

     ``Sec. 5326. Purchase of clean fuel buses

       ``(a) Definitions.--In this section:
       ``(1) Alternative diesel fuel.--
       ``(A) In general.--The term `alternative diesel fuel' 
     means--
       ``(i) biodiesel (as defined in section 312(f) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13220(f))); and
       ``(ii) any blending components derived from alternative 
     fuel.
       ``(B) Inclusions.--The term `alternative diesel fuel' 
     includes a diesel fuel substitute produced from--
       ``(i) animal fat;
       ``(ii) plant oil;
       ``(iii) recycled yellow grease;
       ``(iv) single-cell or microbial oil;
       ``(v) thermal depolymerization;
       ``(vi) thermochemical conversion;
       ``(vii) a coal-to-liquid process (including the Fischer-
     Tropsch process) that provides for the sequestration of 
     carbon emissions; or
       ``(viii) a diesel-ethanol blend of not less than 7 percent 
     ethanol.
       ``(2) Cellulosic biomass ethanol.--The term `cellulosic 
     biomass ethanol' means ethanol derived from any 
     lignocellulosic or hemicellulosic matter that is available on 
     a renewable or recurring basis, including--
       ``(A) dedicated energy crops and trees;
       ``(B) wood and wood residues;
       ``(C) plants;
       ``(D) grasses;
       ``(E) agricultural residues;
       ``(F) fibers;
       ``(G) animal wastes and other waste materials; and
       ``(H) municipal solid waste.
       ``(3) Clean fuel bus.--The term `clean fuel bus' means a 
     vehicle that--
       ``(A) is capable of being powered by--
       ``(i) compressed natural gas;
       ``(ii) liquefied natural gas;
       ``(iii) 1 or more batteries;
       ``(iv) a fuel that is composed of at least 85 percent 
     ethanol (or another percentage of not less than 70 percent, 
     as the Secretary may determine, by rule, to provide for 
     requirements relating to cold start, safety, or vehicle 
     functions);
       ``(v) electricity (including a hybrid electric or plug-in 
     hybrid electric vehicle);
       ``(vi) a fuel cell;
       ``(vii) a fuel that is composed of at least 22 percent 
     biodiesel (as defined in section 312(f) of the Energy Policy 
     Act of 1992 (42 U.S.C. 13220(f)) (or another percentage of 
     not less than 10 percent, as the Secretary may determine, by 
     rule, to provide for requirements relating to cold start, 
     safety, or vehicle functions);
       ``(viii) ultra-low sulfur diesel; or
       ``(ix) liquid fuel manufactured with a coal feedstock; and
       ``(B) has been certified by the Administrator of the 
     Environmental Protection Agency to significantly reduce 
     harmful emissions, particularly in a nonattainment area (as 
     defined in section 171 of the Clean Air Act (42 U.S.C. 
     7501)).
       ``(4) Qualified alternative fuel producer.--The term 
     `qualified alternative fuel producer' means a producer of 
     qualified fuels that, during the applicable taxable year--
       ``(A) are sold by the producer to another person--
       ``(i) for use by the person in the production of a mixture 
     of qualified fuels in the trade or business of the person 
     (other than casual off-farm production);
       ``(ii) for use by the other person as a fuel in a trade or 
     business; or
       ``(iii) that--

       ``(I) sells to another person the qualified fuel at retail; 
     and
       ``(II) places the qualified fuel in the fuel tank of the 
     person that purchased the qualified fuel; or

       ``(B) are used or sold by the producer for any purpose 
     described in subparagraph (A).
       ``(5) Qualified fuel.--The term `qualified fuel' includes--
       ``(A) cellulosic biomass ethanol;
       ``(B) ethanol produced in facilities in which animal waste 
     or other waste materials are digested or otherwise used to 
     displace at least 90 percent of the fossil fuels that would 
     otherwise be used in the production of ethanol;
       ``(C) renewable fuels;
       ``(D) alternative diesel fuels;
       ``(E) sugar, starch, or cellulosic biomass; and
       ``(F) any other fuel that is not substantially petroleum.
       ``(6) Renewable fuel.--The term `renewable fuel' means 
     fuel, at least 85 percent of the volume of which--
       ``(A)(i) is produced from grain, starch, oilseeds, 
     vegetable, animal, or fish materials including fats, greases, 
     and oils, sugarcane, sugar beets, sugar components, tobacco, 
     potatoes, or other biomass; or
       ``(ii) is natural gas produced from a biogas source, 
     including a landfill, sewage waste treatment plant, feedlot, 
     or other place in which decaying organic material is found; 
     and
       ``(B) is used to substantially replace or reduce the 
     quantity of fossil fuel present in a fuel mixture used to 
     operate a motor vehicle.
       ``(b) Purchase of Buses.--Subject to subsections (c) and 
     (d), beginning on the date that is 2 years after the date of 
     enactment of this section, a bus purchased using funds made 
     available from the Mass Transit Account of the Highway Trust 
     Fund shall be a clean fuel bus.
       ``(c) Ultra-Low Sulfur Diesel.--
       ``(1) In general.--Except as provided in paragraph (2), not 
     more than 20 percent of the amount of the funds provided to a 
     recipient to purchase buses under this section may be used by 
     the recipient to purchase clean fuel buses that are capable 
     of being powered by a fuel described in clause (iv), (vii), 
     (viii), or (ix) of subsection (a)(3)(A).
       ``(2) Exception.--Paragraph (1) shall not apply if the 
     recipient enters into a 3-year purchase agreement with a 
     qualified alternative fuel producer to acquire qualified 
     fuels in a volume sufficient to power the clean fuel buses 
     purchased using amounts made available under this section.
       ``(d) Use of Certain Alternative Fuels.--
       ``(1) In general.--To be eligible to receive funds under 
     subsection (c)(2) for the purchase of a clean fuel bus that 
     is capable of being powered by a fuel described in clause 
     (iv), (vii), or (ix) of subsection (a)(3)(A), an applicant or 
     recipient shall submit to the Secretary--
       ``(A) a certification that the applicant will operate the 
     clean fuel bus only with the fuel at all times in accordance 
     with the fuel capacity and use of the fuel recommended by the 
     manufacturer of the clean fuel bus; and
       ``(B) not later than 180 days after the purchase of the 
     clean fuel bus and every 180 days thereafter, a report that 
     documents that the fuel was used in accordance with 
     subparagraph (A) during the 180-day period ending on the date 
     of the report.
       ``(2) Noncompliance.--Failure of an applicant or recipient 
     of funds to provide the certification or documentation 
     required under paragraph (1) shall--
       ``(A) be considered a violation of the agreement to receive 
     the funds; and
       ``(B) require the applicant or recipient to reimburse the 
     Secretary the full amount of the funds not later than 90 days 
     after the Secretary has determined that a violation has 
     occurred.''.
       (b) Conforming Amendment.--The analysis for chapter 53 is 
     amended by inserting after the item relating to section 5325 
     the following:

``5326. Clean fuel buses''.

     SEC. 12. DOMESTIC FUEL PRODUCTION VOLUMES TO MEET DEPARTMENT 
                   OF DEFENSE NEEDS.

       Section 2922d of title 10, United States Code is amended--
       (1) in the heading, by striking ``and tar sands'' and 
     inserting ``tar sands, and other sources'';
       (2) in subsection (a), by striking ``fuel produced, in 
     whole or in part, from coal, oil shale, and tar sands 
     (referred to in this section as a `covered fuel') that are 
     extracted by either mining or in-situ methods and refined or 
     otherwise processed in the United States'' and inserting 
     ``fuel produced, in whole or in part, from coal, oil shale, 
     and tar sands that are extracted by either mining or in-situ 
     methods and refined or otherwise processed in the United 
     States and fuel produced in the United States using starch, 
     sugar, cellulosic biomass, plant or animal oils, or thermal 
     chemical conversion, thermal depolymerization, or thermal 
     conversion processes (referred to in this section as a 
     `covered fuel')'';
       (3) in subsection (d), by striking ``1 or more years'' and 
     inserting ``up to 5 years'';
       (4) in subsection (e), by striking the period at the end 
     and inserting the following: ``, with consideration given to 
     military installations closed or realigned under a round of 
     defense base closure and realignment.''; and
       (5) by adding at the end the following new subsection:
       ``(f) Production Facilities for Covered Fuels.--The 
     Secretary of Defense may enter into contracts or other 
     agreements with private companies or other entities to 
     develop and operate production facilities for covered fuels, 
     and may provide for the construction or capital modification 
     of production facilities for covered fuels.''.

     SEC. 13. FEDERAL FLEET ENERGY CONSERVATION IMPROVEMENT.

       (a) Definitions.--Section 301 of the Energy Policy Act of 
     1992 (42 U.S.C. 13211) is amended--
       (1) in paragraph (3), by inserting before the semicolon at 
     the end the following: ``, including a vehicle that is 
     propelled by electric drive transportation technology, engine 
     dominant hybrid electric technology, or plug-in hybrid 
     technology'';

[[Page 198]]

       (2) in paragraph (13), by striking ``and'' after the 
     semicolon at the end;
       (3) in paragraph (14), by striking the period at the end 
     and inserting a semicolon; and
       (4) by adding at the end the following:
       ``(15) the term `electric drive transportation technology' 
     means--
       ``(A) technology that uses an electric motor for all or 
     part of the motive power of a vehicle (regardless of whether 
     off-board electricity is used), including--
       ``(i) a battery electric vehicle;
       ``(ii) a fuel cell vehicle;
       ``(iii) an engine dominant hybrid electric vehicle;
       ``(iv) a plug-in hybrid electric vehicle;
       ``(v) a plug-in hybrid fuel cell vehicle; and
       ``(vi) an electric rail vehicle; or
       ``(B) technology that uses equipment for transportation 
     (including transportation involving any mobile source of air 
     pollution) that uses an electric motor to replace an internal 
     combustion engine for all or part of the work of the 
     equipment, including corded electric equipment that is linked 
     to transportation or a mobile source of air pollution;
       ``(16) the term `engine dominant hybrid electric vehicle' 
     means an on-road or nonroad vehicle that--
       ``(A) is propelled by an internal combustion engine or heat 
     engine using--
       ``(i) any combustible fuel; and
       ``(ii) an on-board, rechargeable storage device; and
       ``(B) has no means of using an off-board source of 
     electricity; and
       ``(17) the term `plug-in hybrid electric vehicle' means an 
     on-road or nonroad vehicle that is propelled by an internal 
     combustion engine or heat engine using--
       ``(A) any combustible fuel;
       ``(B) an on-board, rechargeable storage device; and
       ``(C) a means of using an off-board source of 
     electricity.''.
       (b) Minimum Federal Fleet Requirement.--Section 303(b)(1) 
     of the Energy Policy Act of 1992 (42 U.S.C. 13212(b)(1)) is 
     amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by striking ``fiscal year 1999 and 
     thereafter,'' and inserting ``each of fiscal years 1999 
     through 2013; and''; and
       (3) by inserting after subparagraph (D) the following:
       ``(E) 100 percent in fiscal year 2014 and thereafter,''.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 134. A bill to authorize the construction of the Arkansas Valley 
Conduit in the State of Colorado, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, I am introducing the Arkansas Valley 
Conduit bill, which will ensure the construction of a pipeline that 
will provide the small, financially strapped towns and water agencies 
along the lower Arkansas River with safe, clean, affordable water. This 
project was originally authorized by Congress in 1962, over 40 years 
ago, as a part of the Fryingpan-Arkansas Project. Due to several long 
years of drought and increasing Federal water quality standards, 
current water delivery methods are not enough. By creating an 80-
percent Federal, 20-percent local cost share formula to help offset the 
construction costs of the conduit, this legislation will protect the 
future of southeastern Colorado's drinking water supplies and prevent 
further economic hardship.
                                 ______
                                 
      By Mr. ALLARD:
  S. 135. A bill to authorize the Secretary of the Army to acquire land 
for the purposes of expanding Pinon Canyon Maneuver Site, and for other 
purposes; to the Committee on Armed Services.
  Mr. ALLARD. Mr. President, another bill dealing with the large 
military presence in Colorado relates to the expansion of the Army's 
Pinon Canyon Maneuver Site. Due to an emphasis on rapid mobility, 
modularity, and maneuverability in recent years, the Army's ability to 
project force across the battlefield has increased exponentially. As 
such, the Army transformation is also driving higher their requirement 
for training space.
  With its close location to Fort Carson, Pinon Canyon was perfectly 
suited for the Army's training needs 20 years ago. However, with the 
arrival of 10,000 new soldiers to Fort Carson, the Army has determined 
that the size of the site needs to be increased in order to meet Fort 
Carson's new operational training requirements.
  I have been told repeatedly by Army officials that the genesis of 
Fort Carson's expansion proposal occurred when several landowners 
approached Fort Carson and expressed their strong desire to sell. I 
also understand that sufficient numbers of willing sellers exist to 
support a significant expansion of the site. However, many in the 
community surrounding Pinon Canyon have major questions that need to be 
answered.
  In order to get some of these major questions answered, a reporting 
requirement was placed in the 2006 Defense Authorization bill, approved 
by both the Senate and the House. However, the Department of Army is 
restricted on communicating about any specific land acquisition 
proposal until a waiver for that site has been granted by the Secretary 
of Defense, which has yet to be granted. Thus, the Army's hands were 
tied and they were unable to meet the full reporting requirements in 
the 2006 Defense authorization. I understand the difficult position the 
Army is on this issue, but I believe it is absolutely necessary that 
they provide the information to the community and to Congress prior to 
any acquisition of property.
  The leadership at Fort Carson has done a great job of reaching out 
and providing what information it could to the local communities. 
However, the Pentagon has not been as forthcoming. I believe the 
Congress and, more importantly, the local communities in Southeastern 
Colorado need more information before we can decide whether this 
proposed expansion is necessary and appropriate.
  With these objectives in mind, today I am introducing a bill that 
clearly defines the process under which the Army can expand the Pinon 
Canyon Maneuver Site. This legislation prohibits the use of eminent 
domain, requires the Army to pay fair market value. Most importantly, 
the bill does not allow the Army to proceed with land acquisition until 
it delivers the answers previously sought on the environmental and 
economic impacts of expansion and also must offer options for 
compensating the loss of property tax revenue.
  It is vital that the Army take the time to answer these important 
questions to help alleviate the affected communities concerns. A number 
of counties and small towns in Southeastern Colorado could be adversely 
affected by this expansion, and this study will help us better 
understand the extent of these impacts and provide options for 
mitigating them.
                                 ______
                                 
      By Mr. ALLARD:
  S. 136. A bill to expand the National Domestic Preparedness 
Consortium to include the Transportation Technology Center; to the 
Committee on Homeland Security and Governmental Affairs.
  Mr. ALLARD. Mr. President, in another area, the events of the past 
several years remind us of the vital role of first responders in 
responding to natural disasters and terrorists attacks. It is important 
that our first responders receive the training needed to make critical, 
life-saving decisions under emergency circumstances. I believe that an 
essential element of preparing our first responders is to provide them 
with hands-on experience in real-world training environments.
  The importance of real world training was called to my attention by a 
visit to the Transportation Technology Training Center, TTC, in Pueblo, 
CO. There, I witnessed first hand the tools at our Nation's disposal to 
equip our first responders with the training they need, specifically in 
the context of rail and mass transit. But our national training 
consortium does not currently include a facility that is uniquely 
focused on emergency preparedness within the railroad and mass transit 
environment. The inclusion of TTC would fill a critical gap in its 
current training agenda.
  TTC is a federally owned, 52-square-mile multimodal testing and 
training facility in Pueblo, CO, operated by the Association of 
American Railroads, AAR. Each year, an average of 1,700 first 
responders travel to Pueblo, CO, to participate in TTC's training 
program. The facility has trained more than 20,000 students in its 20-
year history.
  The ERTC is regarded as the ``graduate school'' of hazmat training 
because of its focus on hands on, true to

[[Page 199]]

life, training exercises on actual rail vehicles, including tank cars 
and passenger rail cars. The ERTC is uniquely positioned to teach 
emergency response for railway-related emergencies.
  It is for these reasons that today I introduce a bill authorizing the 
National Domestic Preparedness Consortium, as expanded to include the 
Transportation Technology Center in Pueblo, CO, and providing for its 
coordination and use by the Department of Homeland Security in training 
the Nation's first responders.
                                 ______
                                 
      By Mr. CARDIN:
  S. 137. A bill to amend title XVIII of the Social Security Act to 
provide additional beneficiary protections; to the Committee on 
Finance.
  Mr. CARDIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 137

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Preserving 
     Medicare for All Act of 2007''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Negotiation of prices for medicare prescription drugs.
Sec. 3. Guaranteed prescription drug benefits.
Sec. 4. Full reimbursement for qualified retiree prescription drug 
              plans.
Sec. 5. Repeal of comparative cost adjustment (cca) program.
Sec. 6. Repeal of MA Regional Plan Stabilization Fund.
Sec. 7. Repeal of cost containment provisions.
Sec. 8. Removal of exclusion of benzodiazepines from required coverage 
              under the Medicare prescription drug program.

     SEC. 2. NEGOTIATION OF PRICES FOR MEDICARE PRESCRIPTION 
                   DRUGS.

       Section 1860D-11 of the Social Security Act (42 U.S.C. 
     1395w-111) is amended by striking subsection (i) (relating to 
     noninterference) and inserting the following:
       ``(i) Negotiation; No National Formulary or Price 
     Structure.--
       ``(1) Negotiation of prices with manufacturers.--In order 
     to ensure that beneficiaries enrolled under prescription drug 
     plans and MA-PD plans pay the lowest possible price, the 
     Secretary shall have and exercise authority similar to that 
     of other Federal entities that purchase prescription drugs in 
     bulk to negotiate contracts with manufacturers of covered 
     part D drugs, consistent with the requirements and in 
     furtherance of the goals of providing quality care and 
     containing costs under this part.
       ``(2) No national formulary or price structure.--In order 
     to promote competition under this part and in carrying out 
     this part, the Secretary may not require a particular 
     formulary or institute a price structure for the 
     reimbursement of covered part D drugs.''.

     SEC. 3. GUARANTEED PRESCRIPTION DRUG BENEFITS.

       (a) In General.--Section 1860D-3 of the Social Security Act 
     (42 U.S.C. 1395w-103) is amended to read as follows:


               ``ASSURING ACCESS TO A CHOICE OF COVERAGE

       ``Sec. 1860D-3.  (a) Access to a Choice of Qualified 
     Prescription Drug Coverage.--
       ``(1) Choice of at least three plans in each area.--
     Beginning on January 1, 2008, the Secretary shall ensure that 
     each part D eligible individual has available, consistent 
     with paragraph (2), a choice of enrollment in--
       ``(A) a nationwide prescription drug plan offered by the 
     Secretary in accordance with subsection (b); and
       ``(B) at least 2 qualifying plans (as defined in paragraph 
     (3)) in the area in which the individual resides, at least 
     one of which is a prescription drug plan.
       ``(2) Requirement for different plan sponsors.--The 
     requirement in paragraph (1)(B) is not satisfied with respect 
     to an area if only one entity offers all the qualifying plans 
     in the area.
       ``(3) Qualifying plan defined.--For purposes of this 
     section, the term `qualifying plan' means--
       ``(A) a prescription drug plan;
       ``(B) an MA-PD plan described in section 1851(a)(2)(A)(i) 
     that provides--
       ``(i) basic prescription drug coverage; or
       ``(ii) qualified prescription drug coverage that provides 
     supplemental prescription drug coverage so long as there is 
     no MA monthly supplemental beneficiary premium applied under 
     the plan, due to the application of a credit against such 
     premium of a rebate under section 1854(b)(1)(C); or
       ``(C) a nationwide prescription drug plan offered by the 
     Secretary in accordance with subsection (b).
       ``(b) HHS as PDP Sponsor for a Nationwide Prescription Drug 
     Plan.--
       ``(1) In general.--The Secretary, acting through the 
     Administrator of the Centers for Medicare & Medicaid 
     Services, shall take such steps as may be necessary to 
     qualify and serve as a PDP sponsor and to offer a 
     prescription drug plan that offers basic prescription drug 
     coverage throughout the United States. Such a plan shall be 
     in addition to, and not in lieu of, other prescription drug 
     plans offered under this part.
       ``(2) Premium; solvency; authorities.--In carrying out 
     paragraph (1), the Secretary--
       ``(A) shall establish a premium in the amount of $35 for 
     months in 2008 and, for months in subsequent years, in the 
     amount specified in this paragraph for months in the previous 
     year increased by the annual percentage increase described in 
     section 1860D-2(b)(6) (relating to growth in medicare 
     prescription drug costs per beneficiary) for the year 
     involved;
       ``(B) is deemed to have met any applicable solvency and 
     capital adequacy standards; and
       ``(C) shall exercise such authorities (including the use of 
     regional or other pharmaceutical benefit managers) as the 
     Secretary determines necessary to offer the prescription drug 
     plan in the same or a comparable manner as is the case for 
     prescription drug plans offered by private PDP sponsors.
       ``(c) Flexibility in Risk Assumed.--In order to ensure 
     access pursuant to subsection (a) in an area the Secretary 
     may approve limited risk plans under section 1860D-11(f) for 
     the area.''.
       (b) Conforming Amendment.--Section 1860D-11(g) of the 
     Social Security Act (42 U.S.C. 1395w-111(g)) is amended by 
     adding at the end the following new paragraph:
       ``(8) Application.--This subsection shall not apply on or 
     after January 1, 2008.''.

     SEC. 4. FULL REIMBURSEMENT FOR QUALIFIED RETIREE PRESCRIPTION 
                   DRUG PLANS.

       (a) Elimination of True Out-of-Pocket Limitation.--Section 
     1860D-2(b)(4)(C)(ii) of the Social Security Act (42 U.S.C. 
     1395w-102(b)(4)(C)(ii) is amended--
       (1) by inserting ``under a qualified retiree prescription 
     drug plan (as defined in section 1860D-22(a)(2)),'' after 
     ``under section 1860D-14,''; and
       (2) by inserting ``, under such a qualified retiree 
     prescription drug plan,'' after ``(other than under such 
     section''.
       (b) Equalization of Subsidies.--Notwithstanding any other 
     provision of law, the Secretary of Health and Human Services 
     shall provide for such increase in the special subsidy 
     payment amounts under section 1860D-22(a)(3) of the Social 
     Security Act (42 U.S.C. 1395w-132(a)(3)) as may be 
     appropriate to provide for payments in the aggregate 
     equivalent to the payments that would have been made under 
     section 1860D-15 of such Act (42 U.S.C. 1395w-115) if the 
     individuals were not enrolled in a qualified retiree 
     prescription drug plan. In making such computation, the 
     Secretary shall not take into account the application of the 
     amendments made by section 1202 of the Medicare Prescription 
     Drug, Improvement, and Modernization Act of 2003 (Public Law 
     108-173; 117 Stat. 2480).
       (c) Effective Date.--This section, and the amendments made 
     by this section, shall take effect on January 1, 2008.

     SEC. 5. REPEAL OF COMPARATIVE COST ADJUSTMENT (CCA) PROGRAM.

       Subtitle E of title II of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (Public Law 108-
     173; 117 Stat. 2214), and the amendments made by such 
     subtitle, are repealed.

     SEC. 6. REPEAL OF MA REGIONAL PLAN STABILIZATION FUND.

       (a) In General.--Subsection (e) of section 1858 of the 
     Social Security Act (42 U.S.C. 1395w-27a) is repealed.
       (b) Conforming Amendment.--Section 1858(f)(1) of the Social 
     Security Act (42 U.S.C. 1395w-27a(f)(1)) is amended by 
     striking ``subject to subsection (e),''.

     SEC. 7. REPEAL OF COST CONTAINMENT PROVISIONS.

       Subtitle A of title VIII of the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 (Public Law 108-
     173; 117 Stat. 2357) is repealed and any provisions of law 
     amended by such subtitle are restored as if such subtitle had 
     not been enacted.

     SEC. 8. REMOVAL OF EXCLUSION OF BENZODIAZEPINES FROM REQUIRED 
                   COVERAGE UNDER THE MEDICARE PRESCRIPTION DRUG 
                   PROGRAM.

       (a) Removal of Exclusion.--
       (1) In general.--Section 1860D-2(e)(2) of the Social 
     Security Act (42 U.S.C. 1395w-102(e)(2)) is amended--
       (A) by striking ``subparagraph (E)'' and inserting 
     ``subparagraphs (E) and (J)''; and
       (B) by inserting ``and benzodiazepines'' after ``smoking 
     cessation agents''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to prescriptions dispensed on or after January 1, 
     2008.
       (b) Review of Benzodiazepine Prescription Policies to 
     Assure Appropriateness and to Avoid Abuse.--The Secretary of 
     Health and Human Services shall review the policies of 
     Medicare prescription drug plans (and MA-PD plans) under 
     parts C and D of title XVIII of the Social Security Act 
     regarding the filling of prescriptions for

[[Page 200]]

     benzodiazepine to ensure that these policies are consistent 
     with accepted clinical guidelines, are appropriate to 
     individual health histories, and are designed to minimize 
     long term use, guard against over-prescribing, and prevent 
     patient abuse.
       (c) Development by Medicare Quality Improvement 
     Organizations of Educational Guidelines for Physicians 
     Regarding Prescribing of Benzodiazepines.--The Secretary of 
     Health and Human Services shall provide, in contracts entered 
     into with Medicare quality improvement organizations under 
     part B of title XI of the Social Security Act, for the 
     development by such organizations of appropriate educational 
     guidelines for physicians regarding the prescribing of 
     benzodiazepines.
                                 ______
                                 
      By Mrs. BOXER:
  S. 146. A bill to require the Federal Government to purchase fuel 
efficient automobiles, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.
  Mrs. BOXER. Mr. President, last year many Americans paid over $3--and 
in some places in California, $4--for a gallon of gasoline.
  At the same time, oil companies made record profits. Enough is 
enough!
  We need to help the American public and reduce our dependence on oil. 
The Federal Government should be taking the lead on this issue. Sadly, 
it is not.
  In 2005, the Federal Government purchased 64,000 passenger vehicles. 
According to the U.S. Department of Energy, the average fuel economy of 
the new vehicles purchased for the fleet in 2005 was an abysmal 21.4 
miles per gallon.
  Today, hybrid cars on the market can achieve over 50 miles per gallon 
and SUVs can obtain 36 miles per gallon. The Government's average of 
21.4 miles to the gallon is too low.
  Instead, our government needs to purchase fuel-efficient cars, SUVs, 
and light trucks. This can be done today. I drive a Toyota Prius that 
gets over 50 mpg. The Ford Escape SUV can get 36 mpg.
  The Federal Government should be a leader in protecting our 
environment and national security.
  That is why I am reintroducing the Government Fleet Fuel Economy Act. 
The bill requires the federal government to purchase vehicles that are 
fuel-efficient to the greatest extent possible.
                                 ______
                                 
      By Mr. LAUTENBERG (for himself and Mr. Menendez):
  S. 148. A bill to establish the Paterson Great Falls National Park in 
the State of New Jersey, and for other purposes; to the Committee on 
Energy and Natural Resources.
  Mr. LAUTENBERG. Mr. President, I rise today with great pride to 
reintroduce legislation which would create a national park in my 
hometown of Paterson, NJ, The Paterson Great Falls National Park Act of 
2007, which I first introduced last year, would bring long-deserved 
recognition and accessibility to one of our Nation's most beautiful and 
historic landmarks. I am pleased that my colleague from New Jersey, 
Senator Menendez, is cosponsoring this legislation.
  The Great Falls are located where the Passaic River drops nearly 80 
feet straight down, on its course towards New York Harbor. It is one of 
the tallest and most spectacular waterfalls on the east coast, but the 
incredible natural beauty of the falls should not overshadow its 
tremendous importance as the powerhouse of industry in New Jersey and 
the infant United States. Indeed, in 1778, Alexander Hamilton visited 
the Great Falls and immediately realized the potential of the falls for 
industrial applications and development. Hamilton was instrumental in 
creating the planned community in Paterson--the first of its kind 
nationwide--centered on the Great Falls, and industry thrived on the 
power generated by the falls. Rogers Locomotive Works, the premier 
steam locomotive manufacturer of the 19th century, was located in the 
shadow of the falls, as were many other vitally important manufacturing 
enterprises.
  President Ford recognized the importance of the area by declaring the 
falls and its surroundings a ``National Historic Landmark'' in 1976; he 
called the falls ``a symbol of the industrial might which helps to make 
the United States the most powerful nation in the world.'' Now, it is 
time that we recognize the importance of this historic area by making 
it New Jersey's first national park. This would be of special 
importance because so few of our national parks are in urban areas. I 
believe that it is time we acknowledge that many of our most 
significant national treasures are located in densely populated areas, 
and creating a national park in Paterson is an ideal opportunity to do 
just that.
  I grew up in Paterson, and I have appreciated the majesty and beauty 
of the Great Falls for many years. By creating a national park in 
Paterson, more Americans can be exposed to the exceptional cultural, 
natural, and historic significance of the Great Falls, and that is why 
I will passionately advocate for the passage of this bill. I have been 
delighted to again work with my good friend, Congressman Bill 
Pascrell--another longtime resident of Paterson--on this issue, as well 
as with a bipartisan group of lawmakers from my home State, all of whom 
believe strongly in this cause. I urge my colleagues to support the 
passage of this legislation, which is so important to New Jersey and 
all of America.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 148

       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 ``Paterson Great Falls 
     National Park Act of 2007''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) The Great Falls Historic District in Paterson, New 
     Jersey is the site Alexander Hamilton selected to implement 
     his vision of American economic independence and transform a 
     rural agrarian society based on slavery into a global economy 
     based on freedom.
       (2) President Ford announced the designation of the 
     Historic District as a National Historic Landmark in 1976 and 
     declared it ``a symbol of the industrial might which helps to 
     make America the most powerful nation in the world''.
       (3) The Historic District was established as a National 
     Historic District in 1996.
       (4) Exceptional natural and cultural resources make the 
     Historic District America's only National Historic District 
     that contains both a National Historic Landmark and a 
     National Natural Resource.
       (5) The Historic District embodies Hamilton's vision of an 
     American economy based on--
       (A) diverse industries to avoid excessive reliance on any 
     single manufactured product;
       (B) innovative engineering and technology, including the 
     successful use of water, a renewable energy source, to power 
     industry and manufacturing;
       (C) industrial production of goods not only for domestic 
     consumption but also for international trade; and
       (D) meritocracy and opportunities for all.
       (6) Pierre L'Enfant's water power system at Great Falls and 
     the buildings erected around it over two centuries constitute 
     the finest and most extensive remaining example of 
     engineering, planning, and architectural works that span the 
     entire period of America's growth into an industrial power.
       (7) A National Park Service unit in Paterson is necessary 
     to give the American people an opportunity to appreciate the 
     physical beauty and historical importance of the Historic 
     District.
       (8) Congress and the National Park Service recognized the 
     national significance of the Historic District through 
     listing on the National Register of Historic Places and 
     designation as a National Historic Landmark and a National 
     Historic District.
       (9) The Historic District is suitable for addition to the 
     National Park System because--
       (A) the national park will promote themes not adequately 
     represented in National Park System, including aspects of 
     African-American history and the inspiration Great Falls has 
     been for renowned American writers and artists;
       (B) the national park will promote civic engagement by 
     attracting and engaging people who currently feel little or 
     no connection to National Parks or the founding fathers;
       (C) the national park will interpret America's developing 
     history in the historical and global context; and
       (D) the national park will foster partnerships among 
     federal, state and local governments and private donors and 
     non-profit organizations.
       (10) The Historic District is a physically and fiscally 
     feasible site for a national park because--

[[Page 201]]

       (A) all of the required natural and cultural resources are 
     on property largely owned by local government entities;
       (B) it is of a manageable size; and
       (C) much of the funding will come from private donors and 
     the State of New Jersey, which has committed substantial sums 
     of money to fund a state park that will assist in the funding 
     of the national park.
       (11) The national park provides enormous potential for 
     public use because its location and urban setting make it 
     easily accessible for millions of Americans.
       (12) The historic Hinchliffe stadium, adjacent to the 
     Historic District, was home to the New York Black Yankees for 
     many years, including 1933 when it hosted the Colored 
     Championship of the Nation, and it was added to the National 
     Register of Historic Places by the National Park Service in 
     2004.
       (13) Larry Doby played in Hinchliffe Stadium both as a star 
     high school athlete and again as Negro League player, shortly 
     before becoming the first African-American to play in the 
     American League.
       (14) A National Park Service unit, in partnership with 
     private donors and state and local governments, represents 
     the most effective and efficient method of preserving the 
     Historic District for the public.
       (15) A National Park Service unit in Paterson is necessary 
     to give the Historic District the continuity and 
     professionalism required to attract private donors from 
     across the country.
       (16) Though the State of New Jersey will be a strong 
     partner with a significant financial commitment, the State 
     alone cannot preserve the Historic District and present it to 
     the public without a National Park System unit in Paterson.
       (b) Purposes.--The purposes of this Act are--
       (1) to establish a unit of the National Park System in 
     Paterson, New Jersey, consisting of the Historic District and 
     historic Hinchliffe Stadium; and
       (2) to create partnerships among Federal, State, and local 
     governments, non-profit organizations, and private donors to 
     preserve, enhance, interpret, and promote the cultural sites, 
     historic structures, and natural beauty of the Historic 
     District and the historic Hinchliffe Stadium for the benefit 
     of present and future generations.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Historic district.--The term ``Historic District'' 
     means the Great Falls National Historic District in Paterson, 
     New Jersey, consisting of approximately 118 acres, as 
     specified in the National Register of Historic Places.
       (2) National park.--The term ``national park'' means the 
     Paterson Great Falls National Park established by section 4.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (4) Management plan.--The term ``management plan'' means 
     the integrated resource management plan prepared pursuant to 
     section 6.
       (5) Partnership.--The term ``Partnership'' means the 
     Paterson Great Falls National Park Partnership established in 
     section 7.
       (6) Advisory council.--The term ``Advisory Council'' means 
     the Paterson Great Falls National Park Advisory Council 
     established pursuant to section 8.

     SEC. 4. PATERSON GREAT FALLS NATIONAL PARK.

       (a) Establishment.--There is established in Paterson, New 
     Jersey, the Paterson Great Falls National Park as a unit of 
     the National Park System.
       (b) Boundaries.--The boundaries of the national park shall 
     be--
       (1) the Historic District as listed on the National 
     Register of Historic Places; and
       (2) the historic Hinchliffe Stadium as listed on the 
     National Register of Historic Places.

     SEC. 5. ADMINISTRATION.

       (a) In General.--The national park shall be administered in 
     partnership by the Secretary, the State of New Jersey, City 
     of Paterson and its applicable subdivisions, and others in 
     accordance with the provisions of law generally applicable to 
     units of the National Park System (including the Act of 
     August 25, 1916 (16 U.S.C. 1 et seq.) and the Act of August 
     21, 1935 (16 U.S.C. 461 et seq.)), and in accordance with the 
     management plan.
       (b) State and Local Jurisdiction.--Nothing in this section 
     shall be construed to diminish, enlarge, or modify any right 
     of the State of New Jersey or any political subdivision 
     thereof to exercise civil and criminal jurisdiction or to 
     carry out State laws, rules, and regulations within the 
     national park.
       (c) Cooperative Agreements.--
       (1) The Secretary may consult and enter into cooperative 
     agreements with the State of New Jersey or its political 
     subdivisions to acquire from and provide to the State or its 
     political subdivisions goods and services to be used in the 
     cooperative management of lands within the national park, if 
     the Secretary determines that appropriations for that purpose 
     are available and the agreement is in the best interest of 
     the United States.
       (2) The Secretary, after consultation with the Partnership, 
     may enter into cooperative agreements with owners of property 
     of nationally significant historic or other cultural 
     resources within the national park in order to provide for 
     interpretive exhibits or programs. Such agreements shall 
     provide, whenever appropriate, that--
       (A) the public may have access to such property at 
     specified, reasonable times for purposes of viewing property 
     or exhibits or attending programs established by the 
     Secretary under this subsection; and
       (B) no changes or alterations shall be made in the 
     properties, except by mutual agreements between the Secretary 
     and the other parties to the agreements.
       (d) Construction of Facilities on Non-Federal Lands.--In 
     order to facilitate the administration of the national park, 
     the Secretary is authorized, subject to the availability of 
     appropriated funds, to construct essential administrative or 
     visitor use facilities on non-Federal public lands within the 
     national park. Such facilities and the use thereof shall be 
     in conformance with applicable plans
       (e) Other Property, Funds, and Services.--The Secretary may 
     accept and use donated funds, property, and services to carry 
     out this section.
       (f) Management in Accordance With Integrated Management 
     Plan.--The Secretary shall preserve, interpret, manage, and 
     provide educational and recreational uses for the national 
     park, in consultation with the owners and managers of lands 
     in the national park, in accordance with the management plan.

     SEC. 6. INTEGRATED RESOURCE MANAGEMENT PLAN.

       (a) In General.--Not later than 3 years after the date of 
     the enactment of this Act, the Partnership shall submit to 
     the Secretary a management plan for the national park to be 
     developed and implemented by the Partnership.
       (b) Contents.--The management plan shall include, at a 
     minimum, each of the following:
       (1) A program providing for coordinated administration of 
     the national park with proposed assignment of 
     responsibilities to the appropriate governmental unit at the 
     Federal, State, and local levels, and nonprofit 
     organizations, including each of the following:
       (A) A plan to finance and support the public improvements 
     and services recommended in the management plan, including 
     allocation of non-Federal matching requirements and a 
     delineation of profit sector roles and responsibilities.
       (B) A program for the coordination and consolidation, to 
     the extent feasible, of activities that may be carried out by 
     Federal, State, and local agencies having jurisdiction over 
     land within the national park, including planning and 
     regulatory responsibilities.
       (2) Policies and programs for the following purposes:
       (A) Enhancing public recreational and cultural 
     opportunities in the national park.
       (B) Conserving, protecting, and maintaining the scenic, 
     historical, cultural, and natural values of the national 
     park.
       (C) Developing educational opportunities in the national 
     park.
       (D) Enhancing public access to the national park, including 
     development of transportation networks.
       (E) Identifying potential sources of revenue from programs 
     or activities carried out within the national park.
       (F) Protecting and preserving sites with historical, 
     cultural, natural, Native American and African American 
     significance.
       (3) A policy statement that recognizes existing economic 
     activities within the national park.
       (c) Consultation and Public Hearings.--In developing the 
     management plan, the Partnership shall:
       (1) Consult on a regular basis with appropriate officials 
     of any local government or Federal or State agency which has 
     jurisdiction over lands within the national park.
       (2) Consult with interested conservation, business, 
     professional, and citizen organizations.
       (3) Conduct public hearings or meetings for the purposes of 
     providing interested persons with the opportunity to testify 
     with respect to matters to be addressed by the management 
     plan.
       (d) Approval of the Management Plan.--
       (1) In general.--The Partnership shall submit the 
     management plan to the Governor of New Jersey for review. The 
     Governor shall have 90 days to review and make any 
     recommendations regarding the management plan. After 
     considering the Governor's recommendations, if any, the 
     Partnership shall submit the plan to the Secretary, who shall 
     approve or disapprove the plan not later than 90 days after 
     receiving the management plan from the Partnership. In 
     reviewing the management plan, the Secretary shall consider 
     each of the following:
       (A) The adequacy of public participation.
       (B) Assurances from State and local officials regarding 
     implementation of the management plan.
       (C) The adequacy of regulatory and financial tools that are 
     in place to implement the management plan.
       (2) Disapproval.--If the Secretary disapproves the 
     management plan, the Secretary shall, not later than 60 days 
     after the date of such disapproval, submit to the Partnership 
     in writing the reasons for the disapproval and 
     recommendations for revision.

[[Page 202]]

     Not later than 90 days after receipt of such notice of 
     disapproval and recommendations, the Partnership shall revise 
     and resubmit the management plan to the Secretary who shall 
     approve or disapprove the revision not later than 60 days 
     after receiving the revised management plan.
       (3) Result of failure to approve or disapprove.--If the 
     Secretary does not take action within the deadlines set forth 
     in paragraphs (1) or (2), the plan shall be deemed to have 
     been approved.
       (e) Prior to adoption of the Partnership's plan, the 
     Secretary and the Partnership shall assist the owners and 
     managers of lands within the national park to ensure that 
     existing programs, services, and activities that promote the 
     purposes of this section are supported.

     SEC. 7. PATERSON GREAT FALLS NATIONAL PARK PARTNERSHIP.

       (a) Establishment.--There is hereby established the 
     Paterson Great Falls National Historical Park Partnership 
     whose purpose shall be to coordinate the activities of 
     Federal, State, and local authorities and the private sector 
     in the development and implementation of the management plan.
       (b) Membership.--
       (1) In general.--The Commission shall be composed of 13 
     members appointed by the Secretary, of whom--
       (A) 4 members shall be appointed by the Secretary from 
     nominees submitted by the Governor of the State of New 
     Jersey;
       (B) 2 members shall be appointed by the Secretary from 
     nominees submitted by the City Council of Paterson;
       (C) 2 members shall be appointed by the Secretary from the 
     Paterson Great Falls National Park Advisory Board; and
       (D) 1 member shall be appointed by the Secretary from 
     nominees submitted by the Board of Chosen Freeholders of 
     Passaic County, New Jersey.
       (2) Chairperson; vice chairperson.--The Partnership shall 
     elect one of its members as Chairperson and one as Vice 
     Chairperson. The term of office of the Chairperson and Vice 
     Chairperson shall be one year. The Vice Chairperson shall 
     serve as chairperson in the absence of the Chairperson.
       (3) Vacancies.--A vacancy in the Partnership shall be 
     filled in the same manner in which the original appointment 
     was made.
       (4) Terms.--Terms of service--
       (A) members of the Partnership shall serve for terms of 3 
     years and may be reappointed not more than once; and
       (B) a member may serve after the expiration of his or her 
     term until a successor has been appointed.
       (5) Deadline.--The Secretary shall appoint the first 
     members of the Partnership within 30 days after the date on 
     which the Secretary has received all of the recommendations 
     for appointment pursuant to subsection (b)(1).
       (c) Compensation.--Members of the Partnership shall serve 
     without pay, but while away from their homes or regular 
     places of business in the performance of services for the 
     Partnership, members shall be allowed travel expenses, 
     including per diem in lieu of subsistence, in the same manner 
     as persons employed intermittently in Federal Government 
     service are allowed expenses under section 5703 of title 5, 
     United States Code.
       (d) Meetings.--The Partnership shall meet at the call of 
     the Chairperson or a majority of its members.
       (e) Quorum.--A majority of the Partnership shall constitute 
     a quorum.
       (f) Staff.--The Secretary shall provide the Partnership 
     with such staff and technical assistance as the Secretary, 
     after consultation with the Partnership, considers 
     appropriate to enable the Partnership to carry out its 
     duties. The Secretary may accept the services of personnel 
     detailed from the State of New Jersey, any political 
     subdivision of the State, or any entity represented on the 
     Partnership.
       (g) Hearings.--The Partnership may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the Partnership may deem 
     appropriate.
       (h) Donations.--Notwithstanding any other provision of law, 
     the Partnership may seek and accept donations of funds, 
     property, or services from individuals, foundations, 
     corporations, and other private and public entities for the 
     purpose of carrying out this section.
       (i) Use of Funds to Obtain Money.--The Partnership may use 
     its funds to obtain money from any source under any program 
     or law requiring the recipient of such money to make a 
     contribution in order to receive such money.
       (j) Mails.--The Partnership may use the United States mails 
     in the same manner and upon the same conditions as other 
     departments and agencies of the United States.
       (k) Obtaining Property.--The Partnership may obtain by 
     purchase, rental, donation, or otherwise, such property, 
     facilities, and services as may be needed to carry out its 
     duties, except that the Partnership may not acquire any real 
     property or interest in real property.
       (l) Cooperative Agreements.--For purposes of carrying out 
     the management plan, the Partnership may enter into 
     cooperative agreements with the State of New Jersey, any 
     political subdivision thereof, or with any organization or 
     person.

     SEC. 8. PATERSON GREAT FALLS NATIONAL PARK ADVISORY COUNCIL.

       (a) Establishment.--The Secretary, acting through the 
     Director of the National Park Service, shall establish an 
     advisory committee to be known as the Paterson Great Falls 
     National Park Advisory Council. The purpose of the Advisory 
     Council shall be to represent various groups with interests 
     in the National Park and make recommendations to the 
     Partnership on issues related to the development and 
     implementation of the management plan. The Advisory Council 
     is encouraged to establish committees relating to specific 
     National Park management issues, such as education, tourism, 
     transportation, natural resources, cultural and historic 
     resources, and revenue raising activities. Participation on 
     any such committee shall not be limited to members of the 
     Advisory Council.
       (b) Membership.--The Advisory Council shall consist of not 
     fewer than 15 individuals, to be appointed by the Secretary, 
     acting through the Director of the National Park Service. The 
     Secretary shall appoint no fewer than 3 individuals to 
     represent each of the following categories of entities:
       (1) Municipalities.
       (2) Educational and cultural institutions.
       (3) Environmental organizations.
       (4) Business and commercial entities, including those 
     related to transportation and tourism.
       (5) Organizations representing African American and Native 
     American interests in the Historic District.
       (c) Procedures.--Each meeting of the Advisory Council and 
     its committees shall be open to the public.
       (d) FACA.--The provisions of section 14 of the Federal 
     Advisory Committee Act (5 U.S.C. App.) are hereby waived with 
     respect to the Advisory Council.

     SEC. 9. FINANCIAL AND TECHNICAL ASSISTANCE.

       The Secretary may provide to any owner of property within 
     the National Park containing nationally significant historic 
     or cultural resources, in accordance with cooperative 
     agreements or grant agreements, as appropriate, such 
     financial and technical assistance to mark, interpret, and 
     restore non-Federal properties within the National Park as 
     the Secretary determines appropriate to carry out the 
     purposes of this Act, provided that--
       (1) the Secretary, acting through the National Park 
     Service, shall have right of access at reasonable times to 
     public portions of the property covered by such agreements 
     for the purpose of conducting visitors through such 
     properties and interpreting them to the public; and
       (2) no changes or alterations shall be made in such 
     properties except by mutual agreement between the Secretary 
     and the other parties to the agreements.

     SEC. 10. ACQUISITION OF LAND.

       (a) General Authority.--The Secretary may acquire land or 
     interests in land within the boundaries of the National Park 
     by donation, purchase with donated or appropriated funds, or 
     exchange.
       (b) State Property.--Property owned by the State of New 
     Jersey or any political subdivision of the State may be 
     acquired only by donation.
       (c) Consent.--No lands or interests therein within the 
     boundaries of the park may be acquired without the consent of 
     the owner, unless the Secretary determines that the land is 
     being developed, or is proposed to be developed, in a manner 
     which is detrimental to the natural, scenic, historic, and 
     other values for which the park is established.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as may be necessary to carry out this section, 
     provided that no funds may be appropriated for land 
     acquisition.
       (b) Matching Requirement.--Amounts appropriated in any 
     fiscal year to carry out this section may only be expended on 
     a matching basis in a ration of at least 3 non-Federal 
     dollars to every Federal dollar. The non-Federal share of the 
     match may be in the form of cash, services, or in-kind 
     contributions, fairly valued.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Sessions):
  S. 149. A bill to address the effect of the death of a defendant in 
Federal criminal proceedings; to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, today I am pleased to join Senator 
Sessions in re-introducing the ``Preserving Crime Victims' Restitution 
Act.'' The Act would clarify the rule of law and procedures that should 
be applied when a criminal defendant, such as former Enron CEO Kenneth 
Lay, dies after he has been duly convicted, but before his appeals are 
final.
  This bill passed the Senate unanimously at the end of the 109th 
Congress, but unfortunately it was not taken up by the House. Except 
for minor, technical corrections, this new bill is the same as what the 
Senate passed in the last Congress, and I urge

[[Page 203]]

my colleagues to speedily pass this bill, as you did before, so that it 
can be enacted into law.
  As I mentioned when I introduced this bill last fall, we have worked 
closely with the Department of Justice in crafting this legislation, 
and have used much of DOJ's suggested language. DOJ fully supports the 
principles contained in this bill, and has indicated that it supports 
fixing this problem now to ensure that, despite a defendant's death, 
hard-won convictions are preserved so that restitution remains 
available for the victims of crime.
  This bill would establish that, if a defendant dies after being 
convicted of a federal offense, his conviction will not be vacated. 
Instead, the court will be directed to issue a statement that the 
defendant was convicted--either by a guilty plea or a verdict finding 
him guilty--but then died before his case or appeal was final.
  It would codify the current rule that no further punishments can be 
imposed on a person who is convicted if they die before a sentence is 
imposed or they have an opportunity to appeal their conviction. It 
would clarify that, unlike punishment, other relief (such as 
restitution to the victims) that could have been sought against a 
convicted defendant can continue to be pursued and collected after the 
defendant's death. It would establish a process to ensure that after a 
person dies, a representative of his estate can challenge or appeal his 
conviction if they want, and can also secure a lawyer--either on their 
own or by having one appointed and, if the Government had filed a 
criminal forfeiture action--in which it had sought to reach the 
defendant's assets that were linked to his crimes--the Government would 
get an extra 2 years after the defendant's death to file a civil 
forfeiture lawsuit so that it could try to recover those same assets in 
a different, and traditionally-accepted manner.
  The need for this legislation was vividly demonstrated on October 17, 
2006, when U.S. District Judge Sim Lake, of the Southern District of 
Texas, wiped clean the criminal record of Enron founder Kenneth Lay, 
even after a jury and judge had unanimously found him guilty of 10 
criminal charges, including securities fraud, wire fraud involving 
false and misleading statements, bank fraud and conspiracy.
  The decision to dismiss Mr. Lay's conviction was not based on any 
error in the trial, suggestion of unfairness in the proceedings, or 
allegation of his innocence. Instead, it was simply based on the fact 
that Mr. Lay died before his conviction had been affirmed on appeal, 
under a common law rule known as ``abatement.''
  In other words, the order essentially meant that Mr. Lay was 
``convicted but not guilty''--``innocent by reason of his death.''
  Judge Lake granted this dismissal even in the face of DOJ Enron Task 
Force filings, which noted how Mr. Lay's conviction ``provided the 
basis for the likely disgorgement of fraud proceeds totaling tens of 
millions of dollars.'' In other words, the dismissal meant that 
millions of dollars that the jury found was obtained by Mr. Lay 
illegally at the expense of former Enron employees and shareholders, 
would remain untouched in the Lay estate. These employees and 
shareholders will now find it much harder to lay claim to these ill-
gotten gains held by Mr. Lay's estate, because they will be unable to 
point to his criminal conviction as proof of his wrongdoing.
  I do not fault Judge Lake for issuing this order. He made it clear 
that he was simply following the binding precedent issued in 2004 by 
the full U.S. Court of Appeals for the 5th Circuit, in a case called 
United States v. Estate of Parsons.
  But as I noted in a letter I wrote to Attorney General Gonzales on 
October 20, 2006, the Fifth Circuit's Parsons decision goes far beyond 
the traditional rule of law in this area. While the common-law doctrine 
of abatement has historically wiped out ``punishments'' following a 
criminal defendant's death, the Supreme Court has never held that it 
must also wipe out a victim's right to other forms of relief such as 
restitution, which simply compensate third parties who were injured by 
criminal misconduct.
  As the six dissenters in Parsons noted, the majority's ```finality 
rationale' is a completely novel judicial creation which has not been 
embraced or even suggested by . . . other courts.'' The Third and 
Fourth Circuits, for example, have expressly refused to take this 
position, and upheld a restitution order after a criminal defendant's 
death.
  The Parsons decision was remarkable in several other respects, 
including the fact that (as the dissenters noted), its new rule of law 
was apparently inspired by a single law review article. That academic 
piece boldly claimed that a criminal defendant's right of appeal is 
``evolving into a constitutional right,'' and suggested that a 
conviction untested by appellate review is unreliable and illegitimate. 
This notion runs contrary to the traditional rule applied in virtually 
every other context--where a jury's findings are typically respected 
under the law.
  Of course a defendant is presumed innocent at the outset of his case. 
After a jury has deliberated and unanimously issued a formal finding of 
guilt, however, that presumption of innocence no longer stands.
  The Parsons ``finality'' rationale even raises the possibility that a 
defendant who fully admitted his wrongdoing and pleaded guilty, but who 
then died while an appeal of his sentence was pending, could have his 
entire criminal conviction erased.
  In fact, that has already occurred, in the 1994 case of United States 
v. Pogue, where the D.C. Circuit ordered the dismissal of a conviction 
of a defendant whose appeal was pending--even though the docketing 
statement had said that the defendant intended to challenge only his 
sentence, and not his underlying conviction.
  Following Judge Lake's decision, I sent a letter to the Attorney 
General, asking him to appeal the order and continue the fight for 
Enron victims. Unfortunately, the Justice Department decided in 
November to withdraw its appeal, leaving it up to the victims 
themselves to pursue any further relief.
  I am very disappointed in this decision. These victims have had their 
livelihoods and retirement stripped from them, and they deserved a 
Justice Department that was willing to fight vigorously to protect 
their interests.
  Enron's collapse in 2001 wiped out thousands of jobs, more than $60 
billion in market value, and more than $2 billion in pension plans. 
When America's seventh largest company crumbled into bankruptcy after 
its accounting tricks could no longer hide its billions in debt, 
countless former Enron employees and shareholders lost their entire 
life savings after investing in Enron's 401(k) plan.
  Many of these Enron victims have been following closely the years of 
preparation by the Enron Task Force, and the four-month jury trial and 
separate one-week bench trial, hoping to finally recover some 
restitution in this criminal case. And despite Mr. Lay's vigorous 
efforts to avoid being held accountable for his actions, a conviction 
was finally secured.
  Yet now these people have essentially been victimized again. They 
will be forced to start all over in their efforts to get back some 
portion of the pension funds on which they expected to subsist, and the 
other hard-earned assets that will remain beyond their reach, despite 
the unanimous, hard-fought verdicts finding Mr. Lay guilty of all ten 
counts with which he had been charged.
  I believe in situations like this, leaving the victims without this 
recourse is an unacceptable outcome. That is why I am introducing this 
bill to prevent further injustices like this from ever happening again.
  While I have no desire for our Government to punish a criminal 
defendant who dies, the calculation should be different when we are 
determining how to make up for harm suffered by other innocent victims.
  This legislation offers a fair solution and orderly process in the 
event that a criminal defendant dies prior to his final appeal.
  The time has come for Congress to end this injustice--hopefully, by 
acting

[[Page 204]]

quickly enough to assist these Enron victims, but in any event in a way 
that will solve the problems that the Lay dismissal so starkly 
illustrated.
  I urge my colleagues in the Senate to quickly pass this bill, as you 
did in the 109th Congress, so that we can enact it into law in the 
110th Congress.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 149

       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 ``Preserving Crime Victims' 
     Restitution Act of 2007''.

     SEC. 2. EFFECT OF DEATH OF A DEFENDANT IN FEDERAL CRIMINAL 
                   PROCEEDINGS.

       (a) In General.--Subchapter A of chapter 227 of title 18, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 3560. Effect of death of a defendant in Federal 
       criminal proceedings

       ``(a) General Rule.--Notwithstanding any other provision of 
     law, the death of a defendant who has been convicted of a 
     Federal criminal offense shall not be the basis for abating 
     or otherwise invalidating a plea of guilty or nolo contendere 
     accepted, a verdict returned, a sentence announced, or a 
     judgment entered prior to the death of that defendant, or for 
     dismissing or otherwise invalidating the indictment, 
     information, or complaint on which such a plea, verdict, 
     sentence, or judgment is based, except as provided in this 
     section.
       ``(b) Death After Plea or Verdict.--
       ``(1) Entry of judgment.--If a defendant dies after a plea 
     of guilty or nolo contendere has been accepted or a verdict 
     has been returned, but before judgment is entered, the court 
     shall enter a judgment incorporating the plea of guilty or 
     nolo contendere or the verdict, with the notation that the 
     defendant died before the judgment was entered.
       ``(2) Punitive sanctions.--
       ``(A) Death before sentence announced.--If a defendant dies 
     after a plea of guilty or nolo contendere has been accepted 
     or a verdict has been returned and before a sentence has been 
     announced, no sentence of probation, supervision, or 
     imprisonment may be imposed, no criminal forfeiture may be 
     ordered, and no liability for a fine or special assessment 
     may be imposed on the defendant or the defendant's estate.
       ``(B) Death after sentencing or judgment.--The death of a 
     defendant after a sentence has been announced or a judgment 
     has been entered, and before that defendant has exhausted or 
     waived the right to a direct appeal--
       ``(i) shall terminate any term of probation, supervision, 
     or imprisonment, and shall terminate the liability of that 
     defendant to pay any amount remaining due of a criminal 
     forfeiture, of a fine under section 3613(b), or of a special 
     assessment under section 3013; and
       ``(ii) shall not require return of any portion of any 
     criminal forfeiture, fine, or special assessment already 
     paid.
       ``(3) Restitution.--
       ``(A) Death before sentence announced.--If a defendant dies 
     after a plea of guilty or nolo contendere has been accepted 
     or a verdict has been returned and before a sentence has been 
     announced, the court shall, upon a motion under subsection 
     (c)(2) by the Government or any victim of that defendant's 
     crime, commence a special restitution proceeding at which the 
     court shall adjudicate and enter a final order of restitution 
     against the estate of that defendant in an amount equal to 
     the amount that would have been imposed if that defendant 
     were alive.
       ``(B) Death after sentencing or judgment.--The death of a 
     defendant after a sentence has been announced shall not be a 
     basis for abating or otherwise invalidating restitution 
     announced at sentencing or ordered after sentencing under 
     section 3664(d)(5) of this title or any other provision of 
     law.
       ``(4) Civil proceedings.--The death of a defendant after a 
     plea of guilty or nolo contendere has been accepted, a 
     verdict returned, a sentence announced, or a judgment 
     entered, shall not prevent the use of that plea, verdict, 
     sentence, or judgment in civil proceedings, to the extent 
     otherwise permitted by law.
       ``(c) Appeals, Motions, and Petitions.--
       ``(1) In general.--Except as provided in paragraph (2), 
     after the death of a defendant convicted in a criminal case--
       ``(A) no appeal, motion, or petition by or on behalf of 
     that defendant or the personal representative or estate of 
     that defendant, the Government, or a victim of that 
     defendant's crime seeking to challenge or reinstate a plea of 
     guilty or nolo contendere accepted, a verdict returned, a 
     sentence announced, or a judgment entered prior to the death 
     of that defendant shall be filed in that case after the death 
     of that defendant; and
       ``(B) any pending motion, petition, or appeal in that case 
     shall be dismissed with the notation that the dismissal is 
     due to the death of the defendant.
       ``(2) Exceptions.--
       ``(A) Restitution.--If a defendant dies after being 
     convicted in a criminal case but prior to sentencing or the 
     exhaustion or waiver of direct appeal, the personal 
     representative of that defendant, the Government, or any 
     victim of that defendant's crime may file or pursue an 
     otherwise permissible direct appeal, petition for mandamus or 
     a writ of certiorari, or an otherwise permissible motion 
     described in section 3663, 3663A, 3664, or 3771, to the 
     extent that the appeal, petition, or motion raises an 
     otherwise permissible claim to--
       ``(i) obtain, in a special restitution proceeding, a final 
     order of restitution under subsection (b)(3);
       ``(ii) enforce, correct, amend, adjust, reinstate, or 
     challenge any order of restitution; or
       ``(iii) challenge or reinstate a verdict, plea of guilty or 
     nolo contendere, sentence, or judgment on which--

       ``(I) a restitution order is based; or
       ``(II) restitution is being or will be sought by an appeal, 
     petition, or motion under this paragraph.

       ``(B) Other civil actions affected.--If a defendant dies 
     after being convicted in a criminal case but prior to 
     sentencing or the exhaustion or waiver of direct appeal, the 
     personal representative of that defendant, the Government, or 
     any victim of that defendant's crime may file or pursue an 
     otherwise permissible direct appeal, petition for mandamus or 
     a writ of certiorari, or an otherwise permissible motion 
     under the Federal Rules of Criminal Procedure, to the extent 
     that the appeal, petition, or motion raises an otherwise 
     permissible claim to challenge or reinstate a verdict, plea 
     of guilty or nolo contendere, sentence, or judgment that the 
     appellant, petitioner, or movant shows by a preponderance of 
     the evidence is, or will be, material in a pending or 
     reasonably anticipated civil proceeding, including civil 
     forfeiture proceedings.
       ``(C) Collateral consequences.--
       ``(i) In general.--Except as provided in subparagraphs (A) 
     and (B), the Government may not restrict any Federal benefits 
     or impose collateral consequences on the estate or a family 
     member of a deceased defendant based solely on the conviction 
     of a defendant who died before that defendant exhausted or 
     waived the right to direct appeal unless, not later than 90 
     days after the death of that defendant, the Government gives 
     notice to that estate or family member of the intent of the 
     Government to take such action.
       ``(ii) Personal representative.--If the Government gives 
     notice under clause (i), the court shall appoint a personal 
     representative for the deceased defendant that is the subject 
     of that notice, if not otherwise appointed, under section 
     (d)(2)(A).
       ``(iii) Tolling.--If the Government gives notice under 
     clause (i), any filing deadline that might otherwise apply 
     against the defendant, the estate of the defendant, or a 
     family member of the defendant shall be tolled until the date 
     of the appointment of that defendant's personal 
     representative under clause (ii).
       ``(3) Basis.--In any appeal, petition, or motion under 
     paragraph (2), the death of the defendant shall not be a 
     basis for relief.
       ``(d) Procedures Regarding Continuing Litigation.--
       ``(1) In general.--The standards and procedures for a 
     permitted appeal, petition, motion, or other proceeding under 
     subsection (c)(2) shall be the standards and procedures 
     otherwise provided by law, except that the personal 
     representative of the defendant shall be substituted for the 
     defendant.
       ``(2) Special procedures.--If continuing litigation is 
     initiated or could be initiated under subsection (c)(2), the 
     following procedures shall apply:
       ``(A) Notice and appointment of personal representative.--
     The district court before which the criminal case was filed 
     (or the appellate court if the matter is pending on direct 
     appeal) shall--
       ``(i) give notice to any victim of the convicted defendant 
     under section 3771(a)(2), and to the personal representative 
     of that defendant or, if there is none, the next of kin of 
     that defendant; and
       ``(ii) appoint a personal representative for that 
     defendant, if not otherwise appointed.
       ``(B) Counsel.--Counsel shall be appointed for the personal 
     representative of a defendant convicted in a criminal case 
     who dies if counsel would have been available to that 
     defendant, or if the personal representative of that 
     defendant requests counsel and otherwise qualifies for the 
     appointment of counsel, under section 3006A.
       ``(C) Tolling.--The court shall toll any applicable 
     deadline for the filing of any motion, petition, or appeal 
     during the period beginning on the date of the death of a 
     defendant convicted in a criminal case and ending on the 
     later of--
       ``(i) the date of the appointment of that defendant's 
     personal representative; or
       ``(ii) where applicable, the date of the appointment of 
     counsel for that personal representative.
       ``(D) Restitution.--If restitution has not been fully 
     collected on the date on which a defendant convicted in a 
     criminal case dies--
       ``(i) any amount owed under a restitution order (whether 
     issued before or after the

[[Page 205]]

     death of that defendant) shall be collectible from any 
     property from which the restitution could have been collected 
     if that defendant had survived, regardless of whether that 
     property is included in the estate of that defendant;
       ``(ii) any restitution protective order in effect on the 
     date of the death of that defendant shall continue in effect 
     unless modified by the court after hearing or pursuant to a 
     motion by the personal representative of that defendant, the 
     Government, or any victim of that defendant's crime; and
       ``(iii) upon motion by the Government or any victim of that 
     defendant's crime, the court shall take any action necessary 
     to preserve the availability of property for restitution 
     under this section.
       ``(e) Forfeiture.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     death of an individual does not affect the Government's 
     ability to seek, or to continue to pursue, civil forfeiture 
     of property as authorized by law.
       ``(2) Tolling of limitations for civil forfeiture.--
     Notwithstanding the expiration of any civil forfeiture 
     statute of limitations or any time limitation set forth in 
     section 983(a) of this title, not later than the later of the 
     time period otherwise authorized by law and 2 years after the 
     date of the death of an individual against whom a criminal 
     indictment alleging forfeiture is pending, the Government may 
     commence civil forfeiture proceedings against any interest in 
     any property alleged to be forfeitable in the indictment of 
     that individual.
       ``(f) Definitions.--In this section--
       ``(1) the term `accepted', relating to a plea of guilty or 
     nolo contendere, means that a court has determined, under 
     rule 11(b) of the Federal Rules of Criminal Procedure, that 
     the plea is voluntary and supported by a factual basis, 
     regardless of whether final acceptance of that plea may have 
     been deferred pending review of a presentence report or 
     otherwise;
       ``(2) the term `announced', relating to a sentence, means 
     that the sentence has been orally stated in open court;
       ``(3) the term `convicted' refers to a defendant--
       ``(A) whose plea of guilty or nolo contendere has been 
     accepted; or
       ``(B) against whom a verdict of guilty has been returned;
       ``(4) the term `direct appeal' means an appeal filed, 
     within the period provided by rule 4(b) of the Federal Rules 
     of Appellate Procedure, from the entry of the judgment or 
     order of restitution, including review by the Supreme Court 
     of the United States; and
       ``(5) the term `returned', relating to a verdict, means 
     that the verdict has been orally stated in open court.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 227 of title 18, United States Code, is amended by 
     adding at the end the following:

``3560. Effect of death of a defendant in Federal criminal 
              proceedings.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall apply to any criminal 
     case or appeal pending on or after July 1, 2007.

     SEC. 4. SEVERABILITY.

       If any provision of this Act, any amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of the provisions of this Act, the amendments made 
     by this Act, and the application of such provisions or 
     amendments to any person or circumstance shall not be 
     affected.
                                 ______
                                 
      By Mrs. BOXER (for herself, Mrs. Feinstein, and Mr. Lautenberg):
  S. 150. A bill to amend the safe Drinking Water Act to protect the 
health of pregnant women, fetuses, infants, and children by requiring a 
health advisory and drinking water standard for perchlorate; to the 
Committee on Environment and Public Works.
  Mrs. BOXER. Mr. President, today I am introducing legislation that 
would order EPA to promptly establish a health advisory and then a 
drinking water standard for perchlorate. I am pleased that the Senior 
Senator from California, Mrs. Feinstein, and the Senior Senator from 
New Jersey, Mr. Lautenberg, have joined as original cosponsors of this 
measure.
  This legislation will require the U.S. Environmental Protection 
Agency (EPA) to establish a standard for perchlorate contamination in 
drinking water supplies by December 31, 2007. EPA still has not 
committed to establishing a tap water standard for this widespread 
contaminant, decades after learning that perchlorate is a problem in 
our drinking water.
  Perchlorate is a clear and present danger to California's and much of 
America's health. We cannot wait any longer to address this threat. EPA 
needs to get moving and protect our drinking water now.
  Drinking water sources for more than 20 million Americans are 
contaminated with perchlorate. Perchlorate is the main ingredient in 
rocket fuel, which accounts for 90 percent of its use. Perchlorate is 
also used for ammunition, fireworks, highway safety flares, air bags, 
and fertilizers. It dissolves readily in many liquids, including water, 
and moves easily and quickly through the ground.
  Perchlorate was first discovered in drinking water in 1957, and at 
the latest in the mid-1980s, EPA was aware that perchlorate 
contaminates drinking water. Since 1997, when California developed a 
new, more sensitive testing method that can detect perchlorate down to 
4 parts per billion, perchlorate has been found in soil, groundwater, 
and surface water throughout the U.S.
  According to a May 2005 report from the Government Accountability 
Office, perchlorate contamination has been detected in water and soil 
at almost 400 sites in the U.S., with levels ranging from 4 parts per 
billion to millions of parts per billion.
  GAO also said that limited EPA data show that perchlorate has 
polluted 35 States and the District of Columbia, and is known to have 
contaminated 153 public water systems in 26 States. Those data likely 
underestimate total exposure, as illustrated by the finding of the 
California Department of Health Services that perchlorate contamination 
has affected at least 276 drinking water wells sources and 77 drinking 
water systems in California alone.
  The Food and Drug Administration and other scientific researchers 
have detected perchlorate in the United States food supply, including 
in lettuce, milk, cucumbers, tomatoes, carrots, cantaloupe, wheat, and 
spinach, and in human breast milk.
  Perchlorate can harm human health, especially in pregnant women and 
children, by interfering with thyroid gland, which is needed to produce 
important hormones that help control human health and development. The 
thyroid helps to ensure children's proper mental and physical 
development, in addition to helping to control metabolism. Thyroid 
problems in expectant mothers or infants can affect babies, and result 
in delayed development and decreased learning capability.
  The largest and most comprehensive study to date on the effects of 
low levels of perchlorate exposure in women was recently published by 
researchers from the Centers for Disease Control and Prevention (CDC). 
CDC found that there were significant changes in thyroid hormones in 
women with low iodine levels who were exposed to perchlorate. The CDC 
researchers also found that even small increases in low-level 
perchlorate exposure may affect the thyroid's production of hormones in 
iodine deficient women. About 36 percent of women in the U.S. have 
iodine levels equal to or below those of the women in the study.
  EPA has not established a health advisory or national primary 
drinking water regulation for perchlorate. Instead, the agency has 
established a ``Drinking Water Equivalent Level'' (DWEL) of 24.5 parts 
per billion for this toxin. The agency's DWEL does not take into 
consideration all routes of exposure to perchlorate, and has been 
criticized by experts for failing to sufficiently consider the body 
weight, unique exposure, and vulnerabilities of certain pregnant women 
and fetuses, infants, and children. It is based primarily upon a small 
human study by Greer et al., which tested a small number of adults. The 
DWEL also does not take into account the new much larger studies from 
CDC, and other data indicating potential effects at lower perchlorate 
levels than previously found.
  Alarming levels of perchlorate have been discovered in Lake Mead and 
the Colorado River, the drinking water source for millions of Southern 
Californians. Communities in the Inland Empire, San Gabriel Valley, 
Santa Clara Valley, and the Sacramento area are also grappling with 
perchlorate contamination.
  My bill will ensure that EPA acts swiftly to address this threat to 
our health and welfare. I look forward to working with my colleagues to 
pass this important piece of legislation.

[[Page 206]]

  I ask unanimous consent that the text of my 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. 150

       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 ``Protecting Pregnant Women 
     and Children From Perchlorate Act of 2007''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) perchlorate--
       (A) is a chemical used as the primary ingredient of solid 
     rocket propellant;
       (B) is also used in fireworks, road flares, and other 
     applications.
       (2) waste from the manufacture and improper disposal of 
     chemicals containing perchlorate is increasingly being 
     discovered in soil and water;
       (3) according to the Government Accountability Office, 
     perchlorate contamination has been detected in water and soil 
     at almost 400 sites in the United States, with concentration 
     levels ranging from 4 parts per billion to millions of parts 
     per billion;
       (4) the Government Accountability Office has determined 
     that the Environmental Protection Agency does not centrally 
     track or monitor perchlorate detections or the status of 
     perchlorate cleanup, so a greater number of contaminated 
     sites may already exist;
       (5) according to the Government Accountability Office, 
     limited Environmental Protection Agency data show that 
     perchlorate has been found in 35 States and the District of 
     Columbia and is known to have contaminated 153 public water 
     systems in 26 States;
       (6) those data are likely underestimates of total drinking 
     water exposure, as illustrated by the finding of the 
     California Department of Health Services that perchlorate 
     contamination sites have affected approximately 276 drinking 
     water sources and 77 drinking water systems in the State of 
     California alone;
       (7) Food and Drug Administration scientists and other 
     scientific researchers have detected perchlorate in the 
     United States food supply, including in lettuce, milk, 
     cucumbers, tomatoes, carrots, cantaloupe, wheat, and spinach, 
     and in human breast milk;
       (8)(A) perchlorate can harm human health, especially in 
     pregnant women and children, by interfering with uptake of 
     iodide by the thyroid gland, which is necessary to produce 
     important hormones that help control human health and 
     development;
       (B) in adults, the thyroid helps to regulate metabolism;
       (C) in children, the thyroid helps to ensure proper mental 
     and physical development; and
       (D) impairment of thyroid function in expectant mothers or 
     infants may result in effects including delayed development 
     and decreased learning capability;
       (9)(A) in October 2006, researchers from the Centers for 
     Disease Control and Prevention published the largest, most 
     comprehensive study to date on the effects of low levels of 
     perchlorate exposure in women, finding that--
       (i) significant changes existed in thyroid hormones in 
     women with low iodine levels who were exposed to perchlorate; 
     and
       (ii) even low-level perchlorate exposure may affect the 
     production of hormones by the thyroid in iodine-deficient 
     women; and
       (B) in the United States, about 36 percent of women have 
     iodine levels equivalent to or below the levels of the women 
     in the study described in subparagraph (A); and
       (10) the Environmental Protection Agency has not 
     established a health advisory or national primary drinking 
     water regulation for perchlorate, but instead established a 
     ``Drinking Water Equivalent Level'' of 24.5 parts per billion 
     for perchlorate, which--
       (A) does not take into consideration all routes of exposure 
     to perchlorate;
       (B) has been criticized by experts as failing to 
     sufficiently consider the body weight, unique exposure, and 
     vulnerabilities of certain pregnant women and fetuses, 
     infants, and children; and
       (C) is based primarily on a small study and does not take 
     into account new, larger studies of the Centers for Disease 
     Control and Prevention or other data indicating potential 
     effects at lower perchlorate levels than previously found.
       (b) Purposes.--The purposes of this Act are--
       (1) to require the Administrator of the Environmental 
     Protection Agency to establish, by not later than 90 days 
     after the date of enactment of this Act, a health advisory 
     for perchlorate in drinking water that fully protects 
     pregnant women, fetuses, infants, and children, taking into 
     consideration body weight and exposure patterns and all 
     routes of exposure to perchlorate; and
       (2) to require the Administrator of the Environmental 
     Protection Agency to establish promptly a national primary 
     drinking water regulation for perchlorate that fully protects 
     pregnant women, fetuses, infants, and children, taking into 
     consideration body weight and exposure patterns and all 
     routes of exposure to perchlorate.

     SEC. 3. HEALTH ADVISORY AND NATIONAL PRIMARY DRINKING WATER 
                   REGULATION FOR PERCHLORATE.

       Section 1412(b)(12) of the Safe Drinking Water Act (42 
     U.S.C. 300g-1(b)(12)) is amended by adding at the end the 
     following:
       ``(C) Perchlorate.--
       ``(i) Schedule, health advisory, and standard.--
     Notwithstanding any other provision of this section, the 
     Administrator shall publish a health advisory and promulgate 
     a national primary drinking water regulation for perchlorate, 
     in accordance with the schedule and provisions established by 
     this subparagraph, that fully protect, with an adequate 
     margin of safety, the health of vulnerable persons (including 
     pregnant women, fetuses, infants, and children), taking into 
     consideration body weight, exposure patterns, and all routes 
     of exposure.
       ``(ii) Health advisory.--Not later than 90 days after the 
     date of enactment of this subparagraph, the Administrator 
     shall publish a health advisory for perchlorate in accordance 
     with clause (i).
       ``(iii) Proposed regulations.--Not later than August 1, 
     2007, the Administrator shall propose a national primary 
     drinking water regulation for perchlorate in accordance with 
     clause (i).
       ``(iv) Final regulations.--Not later than December 31, 
     2007, after providing notice and an opportunity for public 
     comment, the Administrator shall promulgate a national 
     primary drinking water regulation for perchlorate in 
     accordance with clause (i).''.
                                 ______
                                 
      By Mrs. BOXER:
  S. 152. A bill to amend the Elementary and Secondary Education Act of 
1965 to establish a program to help States expand the educational 
system to include at least 1 year of early education preceding the year 
a child enters kindergarten; to the Committee on Health, Education, 
Labor, and Pensions.
  Mrs. BOXER. Mr. President, today I rise to reintroduce the Early 
Education Act. This bill will enable children across our nation to be 
prepared with the initial skills and abilities to successfully begin 
their education.
  I strongly believe that there should be a national commitment to 
establish that all children have access to high quality prekindergarten 
programs. This bill is a step forward in making that possible.
  Of the nearly 8 million and 3- and 4-year-olds that could be in early 
education, fewer than half are enrolled in an early education program. 
In my State of California alone, just 65 percent of 4-year-olds are in 
preschool.
  The result is that too many children come to school ill-prepared to 
learn. They lack language and social skills. Almost all experts now 
agree that an early education experience is one of the most effective 
strategies for improving later school performance.
  Researchers have discovered that children have a learning capacity 
that can and should be developed at a much earlier age than was 
previously thought. The National Research Council reported that 
prekindergarten educational opportunities are critical in developing 
early language and literacy skills and preventing reading difficulties 
in young children.
  Furthermore, studies have shown that children who participate in 
prekindergarten programs are less likely to be held back a grade, show 
greater learning retention and initiative, have better social skills, 
are more enthusiastic about school, and are more likely to have good 
attendance records.
  In fact, prekindergarten programs pay for themselves in long-term 
benefits. It is estimated that for every dollar invested in early 
education, about $7 are saved in later costs.
  My bill, the Early Education Act, would create a program in at least 
10 States to provide one year of prekindergarten early education in the 
public schools. There is a 50 percent matching requilement, and the 
$300 million authorized annually under this bill would be used by 
States to supplement--not supplant--other Federal, State or local 
funds. This bill would serve approximately 136,000 children.
  Our children need a solid foundation that builds on current education 
system by providing them with early learning skills. I urge my 
colleagues to support this legislation.
                                 ______
                                 
      By Mrs. BOXER:
  S. 153. A bill to provide for the monitoring of the long-term medical 
health of firefighters who responded to emergencies in certain disaster 
areas and

[[Page 207]]

for the treatment of such firefighters; to the Committee on Commerce, 
Science, and Transportation.
  Mrs. BOXER. Mr. President, I introduce the Healthy Firefighters Act, 
an important bill that would protect the firefighters who respond to 
emergencies. The bill is inspired by the brave firefighters from the 
San Jacinto Ranger District, who responded to the Esperanza Incident 
wildfire in southern California in October of 2006.
  We rely on firefighters to protect us when disaster strikes, and they 
selflessly place themselves in danger to provide that protection. One 
danger they face in the course of performing their duties is exposure 
to toxins--including fine particulates, carbon monoxide, sulfur, 
formaldehyde, mercury, heavy metals, and benzene--that can have a 
significant negative effect on their health.
  We owe it to this country's brave firefighters to minimize their 
sacrifice for our safety, to the greatest extent possible. My bill 
would require the U.S. Fire Administrator to contract with a medical 
research university to conduct long-term medical health monitoring of 
firefighters who responded to emergencies in any areas declared a 
disaster by the Federal Government, and provide healthcare for those 
firefighters who suffer health problems as a consequence of their work 
in those disaster areas. Pulmonary illness, neurological damage, and 
cardiovascular damage are examples of illnesses for which firefighters 
would be monitored and treated under this bill.
  I urge my colleagues to consider and pass this bill to benefit 
firefighters, who are among this country's most heroic citizens.
                                 ______
                                 
      By Mr. BUNNING (for himself, Mr. Obama, Mr. Lugar, Mr. Pryor, Ms. 
        Murkowski, Mr. Bond, Mr. Thomas, Mr. Martinez, Mr. Enzi, Ms. 
        Landrieu, and Mr. Craig):
  S. 154. A bill to promote coal-to-liquid fuel activities; to the 
Committee on Energy and Natural Resources.
  Mr. BUNNING. Mr. President, I rise today to introduce the Coal-to-
Liquid Fuel Promotion Act of 2007.
  For too long, America has ignored its energy security. Many of us can 
remember the energy crises of the 1970s. We were held ransom by a 
monopolistic oil cartel and forced to endure shortages, gas lines, and 
high prices. In the early 1980s, just as America began to invest in 
alternative fuels, the oil-producing states of the world crashed prices 
to make new technology uncompetitive.
  During most of the last 25 years, we have enjoyed low prices and 
plentiful supply, but we have paid a price. Today, we find America is 
addicted to oil.
  Since September 11, we have seen the fragile state of our energy 
markets. Domestic disasters and terrorism can send energy prices 
spiraling out of control. Our energy resources are stretched to the 
limits, and small supply disruptions ripple through the entire economy. 
America needs a secure domestic source to ease our dependency on 
imported oil.
  That is why today I am reintroducing my bill, the Coal-to-Liquid Fuel 
Promotion Act with the current Presiding Officer, Senator Obama of 
Illinois. I have worked with the coal and fuel industries, the 
Department of Defense, and environmental groups to identify the needs 
of the coal-to-liquid industry and the best way for the Government to 
support the coal-to-liquid development.
  Coal has long been America's most abundant fuel resource and has 
driven our economic growth since the industrial revolution. In the 
coal-to-liquid process, coal is gasified, the gas is run through the 
FischerTropsch process, and the resulting fuel is refined into jet fuel 
and diesel fuel. The final product is cleaner than conventional fuels 
because nearly all of the sulfur and nitrogen is removed.
  While this technology is just taking root in America, South Africa 
meets 30 percent of its fuel needs with coal. CTL technology lets 
America capitalize on a domestic resource that will fuel economic 
growth and produce the energy security required in today's world. Many 
of my colleagues may ask one question right now: If this technology is 
so great and could replace expensive imports from the Middle East, why 
hasn't it been done already? The answer is simple: costs and market 
uncertainty.
  A typical size CTL plant costs more than $2 billion to construct. 
With complicated plans and environmental permits, a new plant could 
take 5 to 8 years to build. This is a challenge for even the biggest 
risk-takers on Wall Street. Raising the capital needed to develop a new 
technology is always difficult, but the multibillion dollar investment 
scale of a CTL plant has made it nearly impossible.
  On top of this is the uncertainty of the price of oil. America has 
seen oil prices rise dramatically in the last few years. But investors 
are concerned that oil prices could drop to the low levels of the 1980s 
and make CTL plants uncompetitive again. I believe oil prices will stay 
above the price range that keeps CTL profitable, which is estimated to 
be between $40 and $50 per barrel. But even if oil prices were to drop 
that low in the next few decades, I believe CTL would more than pay for 
itself by insulating us from supply shocks and providing a secure 
domestic fuel supply for the military, businesses such as airlines and 
trucking, and the average American's car.
  The Federal Government must act to help industry overcome these 
hurdles. This legislation will provide a combination of incentives to 
create a network of coal-to-liquid production in the United States.
  The Coal-to-Liquid Fuel Promotion Act of 2007 has three parts. First, 
this bill addresses the need to pull together the investors and the 
billions of dollars required to build a CTL plant. It expands and 
enhances the Department of Energy's loan guarantee program included in 
the Energy Policy Act we passed in 2005. It expressly authorizes DOE to 
administer loan guarantees for the Nation's first CTL plants. These 
plants must be large scale, which is a minimum production of 10,000 
barrels a day of liquid fuel. This program is only for the first 10 
commercial plants. By then, we should have proven the economics of this 
technology and no further incentives will be needed.
  It also provides a new program of matching loans. The loans are 
capped at $20 million and must be matched dollar-for-dollar by non-
Federal money. They must be repaid as soon as the plants are financed.
  Second, this legislation would fundamentally alter the economics of 
CTL plants during and after construction. It expands the investment tax 
credits and expensing provisions enacted in the Energy Policy Act of 
2005. It increases the 20-percent tax credit for CTL plants to a 
maximum of $200 million for each of the first 10 CTL plants. It also 
extends the expiring exploration of the fuel excise tax credits for CTL 
from 2009 to 2020. The current provisions will expire long before the 
first CTL plant is even operational. This extension will provide a 
meaningful timeframe for CTL plants to benefit from the same tax 
incentives we offer renewable and hydrogen fuels.
  This bill also provides an incentive for CTL plants to capture carbon 
emissions. We can use CO2 to produce oil in depleted wells 
or extract coalbed methane.
  Third, this bill provides the Department of Defense the funding to 
purchase, test, and integrate CTL fuels into the military. In the last 
few months, the Air Force has successfully tested CTL fuels in B-52 
bombers. These tests are proving to the DOD and to industry that CTL 
fuels are as safe and reliable as the fuels produced today.
  This legislation also instructs the DOD to conduct a study on CTL 
fuel storage and its inclusion in the Strategic Petroleum Reserve.
  It authorizes the construction of storage facilities for CTL fuel and 
allows the Strategic Petroleum Reserve to hold up to 20 percent of its 
stock in the form of CTL-finished fuels.
  By combining the abilities of the Department of Energy and the 
Department of Defense with incentives in the Tax Code, I am confident 
this legislation will help Kentucky, and America,

[[Page 208]]

become the world leaders in coal-to-liquid fuel promotion. This coal-
to-liquid fuel legislation made headlines during the summer of 2006 
when gas prices were at a near record high. Yet when prices fell, the 
pressure to pass this legislation also decreased. We have been very 
lucky that a mild winter has held down demand. We will not always be 
this lucky.
  No matter what energy prices are, America needs a domestic source of 
fuel. This year alone we will send $250 billion to foreign countries, 
mostly in the Middle East, just to buy oil. Imagine what we could have 
done here at home with trillions of dollars we have spent on oil in the 
last few decades.
  There is no room for politics in energy security. In the 110th 
Congress, Senator Obama and I will work hard with all of our colleagues 
to pass this important legislation. I especially look forward to 
working with my new chairman in the Energy Committee, Senator Bingaman, 
and my ranking member, Senator Domenici, on this important bill.
  I now send to the desk the Coal-to-Liquid Fuel Promotion Act of 2007 
and the related Coal-to-Liquid Fuel Energy Act of 2007. I ask unanimous 
consent these two bills be printed with my remarks in the Record.
  The PRESIDING OFFICER. without objection, the bills will be received 
and appropriately referred.
  Mr. CONRAD. Mr. President, first I commend my colleague from Kentucky 
for his legislation. This is an area in which I have had a continuing 
interest as well. I salute him because one of the great challenges 
facing our Nation is to dramatically reduce our dependence on foreign 
energy. That is in our energy interest, it is in our economic interest, 
it is in our vital security interest. I commend my colleague from 
Kentucky for coming to the floor and offering his proposal on what we 
could do to make progress. I thank the Senator.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 154

       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 ``Coal-to-Liquid Fuel Energy 
     Act of 2007''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Coal-to-liquid.--The term ``coal-to-liquid'' means--
       (A) with respect to a process or technology, the use of a 
     feedstock, the majority of which is the coal resources of the 
     United States, using the class of reactions known as Fischer-
     Tropsch, to produce synthetic fuel suitable for 
     transportation; and
       (B) with respect to a facility, the portion of a facility 
     related to producing the inputs to the Fischer-Tropsch 
     process, the Fischer-Tropsch process, finished fuel 
     production, or the capture, transportation, or sequestration 
     of byproducts of the use of a feedstock that is primarily 
     domestic coal at the Fischer-Tropsch facility, including 
     carbon emissions.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.

       (a) Eligible Projects.--Section 1703(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by adding 
     at the end the following:
       ``(11) Large-scale coal-to-liquid facilities (as defined in 
     section 2 of the Coal-to-Liquid Fuel Energy Act of 2007) that 
     use a feedstock, the majority of which is the coal resources 
     of the United States, to produce not less than 10,000 barrels 
     a day of liquid transportation fuel.''.
       (b) Authorization of Appropriations.--Section 1704 of the 
     Energy Policy Act of 2005 (42 U.S.C. 16514) is amended by 
     adding at the end the following:
       ``(c) Coal-to-Liquid Projects.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to provide the cost of guarantees 
     for projects involving large-scale coal-to-liquid facilities 
     under section 1703(b)(11).
       ``(2) Alternative funding.--If no appropriations are made 
     available under paragraph (1), an eligible applicant may 
     elect to provide payment to the Secretary, to be delivered if 
     and at the time the application is approved, in the amount of 
     the estimated cost of the loan guarantee to the Federal 
     Government, as determined by the Secretary.
       ``(3) Limitations.--
       ``(A) In general.--No loan guarantees shall be provided 
     under this title for projects described in paragraph (1) 
     after (as determined by the Secretary)--
       ``(i) the tenth such loan guarantee is issued under this 
     title; or
       ``(ii) production capacity covered by such loan guarantees 
     reaches 100,000 barrels per day of coal-to-liquid fuel.
       ``(B) Individual projects.--
       ``(i) In general.--A loan guarantee may be provided under 
     this title for any large-scale coal-to-liquid facility 
     described in paragraph (1) that produces no more than 20,000 
     barrels of coal-to-liquid fuel per day.
       ``(ii) Non-federal funding requirement.--To be eligible for 
     a loan guarantee under this title, a large-scale coal-to-
     liquid facility described in paragraph (1) that produces more 
     than 20,000 barrels per day of coal-to-liquid fuel shall be 
     eligible to receive a loan guarantee for the proportion of 
     the cost of the facility that represents 20,000 barrels of 
     coal-to-liquid fuel per day of production.
       ``(4) Requirements.--
       ``(A) Guidelines.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall publish 
     guidelines for the coal-to-liquids loan guarantee application 
     process.
       ``(B) Applications.--Not later than 1 year after the date 
     of enactment of this subsection, the Secretary shall begin to 
     accept applications for coal-to-liquid loan guarantees under 
     this subsection.
       ``(C) Deadline.--Not later than 1 year from the date of 
     acceptance of an application under subparagraph (B), the 
     Secretary shall evaluate the application and make final 
     determinations under this subsection.
       ``(5) Reports to congress.--The Secretary shall submit to 
     the Committee on Energy and Natural Resources of the Senate 
     and the Committee on Energy and Commerce of the House of 
     Representatives a report describing the status of the program 
     under this subsection not later than each of--
       ``(A) 180 days after the date of enactment of this 
     subsection;
       ``(B) 1 year after the date of enactment of this 
     subsection; and
       ``(C) the dates on which the Secretary approves the first 
     and fifth applications for coal-to-liquid loan guarantees 
     under this subsection.''.

     SEC. 4. COAL-TO-LIQUID FACILITIES LOAN PROGRAM.

       (a) Definition of Eligible Recipient.--In this section, the 
     term ``eligible recipient'' means an individual, 
     organization, or other entity that owns, operates, or plans 
     to construct a coal-to-liquid facility that will produce at 
     least 10,000 barrels per day of coal-to-liquid fuel.
       (b) Establishment.--The Secretary shall establish a program 
     under which the Secretary shall provide loans, in a total 
     amount not to exceed $20,000,000, for use by eligible 
     recipients to pay the Federal share of the cost of obtaining 
     any services necessary for the planning, permitting, and 
     construction of a coal-to-liquid facility.
       (c) Application.--To be eligible to receive a loan under 
     subsection (b), the eligible recipient shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       (d) Non-Federal Match.--To be eligible to receive a loan 
     under this section, an eligible recipient shall use non-
     Federal funds to provide a dollar-for-dollar match of the 
     amount of the loan.
       (e) Repayment of Loan.--
       (1) In general.--To be eligible to receive a loan under 
     this section, an eligible recipient shall agree to repay the 
     original amount of the loan to the Secretary not later than 5 
     years after the date of the receipt of the loan.
       (2) Source of funds.--Repayment of a loan under paragraph 
     (1) may be made from any financing or assistance received for 
     the construction of a coal-to-liquid facility described in 
     subsection (a), including a loan guarantee provided under 
     section 1703(b)(11) of the Energy Policy Act of 2005 (42 
     U.S.C. 16513(b)(11)).
       (f) Requirements.--
       (1) Guidelines.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall publish guidelines 
     for the coal-to-liquids loan application process.
       (2) Applications.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall begin to accept 
     applications for coal-to-liquid loans under this section.
       (g) Reports to Congress.--Not later than each of 180 days 
     and 1 year after the date of enactment of this Act, the 
     Secretary shall submit to the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives a report describing 
     the status of the program under this section.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $200,000,000, to 
     remain available until expended.

     SEC. 5. LOCATION OF COAL-TO-LIQUID MANUFACTURING FACILITIES.

       The Secretary, in coordination with the head of any 
     affected agency, shall promulgate such regulations as the 
     Secretary determines to be necessary to support the 
     development on Federal land (including land of the Department 
     of Energy, military bases,

[[Page 209]]

     and military installations closed or realigned under the 
     defense base closure and realignment) of coal-to-liquid 
     manufacturing facilities and associated infrastructure, 
     including the capture, transportation, or sequestration of 
     carbon dioxide.

     SEC. 6. STRATEGIC PETROLEUM RESERVE.

       (a) Development, Operation, and Maintenance of Reserve.--
     Section 159 of the Energy Policy and Conservation Act (42 
     U.S.C. 6239) is amended--
       (1) by redesignating subsections (f), (g), (j), (k), and 
     (l) as subsections (a), (b), (e), (f), and (g), respectively; 
     and
       (2) by inserting after subsection (b) (as redesignated by 
     paragraph (1)) the following:
       ``(c) Study of Maintaining Coal-to-Liquid Products in 
     Reserve.--Not later than 1 year after the date of enactment 
     of the Coal-to-Liquid Fuel Energy Act of 2007, the Secretary 
     and the Secretary of Defense shall--
       ``(1) conduct a study of the feasibility and suitability of 
     maintaining coal-to-liquid products in the Reserve; and
       ``(2) submit to the Committee on Energy and Natural 
     Resources and the Committee on Armed Services of the Senate 
     and the Committee on Energy and Commerce and the Committee on 
     Armed Services of the House of Representatives a report 
     describing the results of the study.
       ``(d) Construction of Storage Facilities.--As soon as 
     practicable after the date of enactment of the Coal-to-Liquid 
     Fuel Energy Act of 2007, the Secretary may construct 1 or 
     more storage facilities--
       ``(1) in the vicinity of pipeline infrastructure and at 
     least 1 military base; but
       (b) Petroleum Products for Storage in Reserve.--Section 160 
     of the Energy Policy and Conservation Act (42 U.S.C. 6240) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting a semicolon at the end;
       (B) in paragraph (2), by striking ``and'' at the end;
       (C) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(4) coal-to-liquid products (as defined in section 2 of 
     the Coal-to-Liquid Fuel Energy Act of 2007), as the Secretary 
     determines to be appropriate, in a quantity not to exceed 20 
     percent of the total quantity of petroleum and petroleum 
     products in the Reserve.'';
       (2) in subsection (b), by redesignating paragraphs (3) 
     through (5) as paragraphs (2) through (4), respectively; and
       (3) by redesignating subsections (f) and (h) as subsections 
     (d) and (e), respectively.
       (c) Conforming Amendments.--Section 167 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6247) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (B) in paragraph (2) (as redesignated by subparagraph (A)), 
     by striking ``section 160(f)'' and inserting ``section 
     160(e)''; and
       (2) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``section 160(f)'' and inserting ``section 
     160(e)''.

     SEC. 7. AUTHORIZATION TO CONDUCT RESEARCH, DEVELOPMENT, 
                   TESTING, AND EVALUATION OF ASSURED DOMESTIC 
                   FUELS.

       Of the amount authorized to be appropriated for the Air 
     Force for research, development, testing, and evaluation, 
     $10,000,000 may be made available for the Air Force Research 
     Laboratory to continue support efforts to test, qualify, and 
     procure synthetic fuels developed from coal for aviation jet 
     use.

     SEC. 8. COAL-TO-LIQUID LONG-TERM FUEL PROCUREMENT AND 
                   DEPARTMENT OF DEFENSE DEVELOPMENT.

       Section 2398a of title 10, United States Code is amended--
       (1) in subsection (b)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Coal-to-liquid production facilities.--
       ``(A) In general.--The Secretary of Defense may enter into 
     contracts or other agreements with private companies or other 
     entities to develop and operate coal-to-liquid facilities (as 
     defined in section 2 of the Coal-to-Liquid Fuel Energy Act of 
     2007) on or near military installations.
       ``(B) Considerations.--In entering into contracts and other 
     agreements under subparagraph (A), the Secretary shall 
     consider land availability, testing opportunities, and 
     proximity to raw materials.'';
       (2) in subsection (d)--
       (A) by striking ``Subject to applicable provisions of law, 
     any'' and inserting ``Any''; and
       (B) by striking ``1 or more years'' and inserting ``up to 
     25 years''; and
       (3) by adding at the end the following:
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 9. REPORT ON EMISSIONS OF FISCHER-TROPSCH PRODUCTS USED 
                   AS TRANSPORTATION FUELS.

       (a) In General.--In cooperation with the Administrator of 
     the Environmental Protection Agency, the Secretary of 
     Defense, the Administrator of the Federal Aviation 
     Administration, and the Secretary of Health and Human 
     Services, the Secretary shall--
       (1) carry out a research and demonstration program to 
     evaluate the emissions of the use of Fischer-Tropsch fuel for 
     transportation, including diesel and jet fuel;
       (2) evaluate the effect of using Fischer-Tropsch 
     transportation fuel on land and air engine exhaust emissions; 
     and
       (3) in accordance with subsection (e), submit to Congress a 
     report on the effect on air quality and public health of 
     using Fischer-Tropsch fuel in the transportation sector.
       (b) Guidance and Technical Support.--The Secretary shall 
     issue any guidance or technical support documents necessary 
     to facilitate the effective use of Fischer-Tropsch fuel and 
     blends under this section.
       (c) Facilities.--For the purpose of evaluating the 
     emissions of Fischer-Tropsch transportation fuels, the 
     Secretary shall--
       (1) support the use and capital modification of existing 
     facilities and the construction of new facilities at the 
     research centers designated in section 417 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15977); and
       (2) engage those research centers in the evaluation and 
     preparation of the report required under subsection (a)(3).
       (d) Requirements.--The program described in subsection 
     (a)(1) shall consider--
       (1) the use of neat (100 percent) Fischer-Tropsch fuel and 
     blends of Fischer-Tropsch fuels with conventional crude oil-
     derived fuel for heavy-duty and light-duty diesel engines and 
     the aviation sector; and
       (2) the production costs associated with domestic 
     production of those fuels and prices for consumers.
       (e) Reports.--The Secretary shall submit to the Committee 
     on Energy and Natural Resources of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives--
       (1) not later than 180 days after the date of enactment of 
     this Act, an interim report on actions taken to carry out 
     this section; and
       (2) not later than 1 year after the date of enactment of 
     this Act, a final report on actions taken to carry out this 
     section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
                                 ______
                                 
      By Mr. BUNNING (for himself, Mr. Obama, Mr. Lugar, Mr. Pryor, Ms. 
        Murkowski, Mr. Bond, Mr. Thomas, Mr. Martinez, Mr. Enzi, Ms. 
        Landrieu, and Mr. Craig):
  S. 155. A bill to promote coal-to-liquid fuel activities; to the 
Committee on Finance.
  Mr. BUNNING. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 155

       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 ``Coal-to-Liquid Fuel 
     Promotion Act of 2007''.

                TITLE I--COAL-TO-LIQUID FUEL ACTIVITIES

     SEC. 101. DEFINITIONS.

       In this title:
       (1) Coal-to-liquid.--The term ``coal-to-liquid'' means--
       (A) with respect to a process or technology, the use of a 
     feedstock, the majority of which is the coal resources of the 
     United States, using the class of reactions known as Fischer-
     Tropsch, to produce synthetic fuel suitable for 
     transportation; and
       (B) with respect to a facility, the portion of a facility 
     related to producing the inputs to the Fischer-Tropsch 
     process, the Fischer-Tropsch process, finished fuel 
     production, or the capture, transportation, or sequestration 
     of byproducts of the use of a feedstock that is primarily 
     domestic coal at the Fischer-Tropsch facility, including 
     carbon emissions.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 102. COAL-TO-LIQUID FUEL LOAN GUARANTEE PROGRAM.

       (a) Eligible Projects.--Section 1703(b) of the Energy 
     Policy Act of 2005 (42 U.S.C. 16513(b)) is amended by adding 
     at the end the following:
       ``(11) Large-scale coal-to-liquid facilities (as defined in 
     section 101 of the Coal-to-Liquid Fuel Promotion Act of 2007) 
     that use a feedstock, the majority of which is the coal 
     resources of the United States, to produce not less than 
     10,000 barrels a day of liquid transportation fuel.''.
       (b) Authorization of Appropriations.--Section 1704 of the 
     Energy Policy Act of 2005 (42 U.S.C. 16514) is amended by 
     adding at the end the following:
       ``(c) Coal-to-Liquid Projects.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to provide the cost of guarantees 
     for projects involving large-scale coal-to-liquid facilities 
     under section 1703(b)(11).
       ``(2) Alternative funding.--If no appropriations are made 
     available under paragraph (1), an eligible applicant may 
     elect to

[[Page 210]]

     provide payment to the Secretary, to be delivered if and at 
     the time the application is approved, in the amount of the 
     estimated cost of the loan guarantee to the Federal 
     Government, as determined by the Secretary.
       ``(3) Limitations.--
       ``(A) In general.--No loan guarantees shall be provided 
     under this title for projects described in paragraph (1) 
     after (as determined by the Secretary)--
       ``(i) the tenth such loan guarantee is issued under this 
     title; or
       ``(ii) production capacity covered by such loan guarantees 
     reaches 100,000 barrels per day of coal-to-liquid fuel.
       ``(B) Individual projects.--
       ``(i) In general.--A loan guarantee may be provided under 
     this title for any large-scale coal-to-liquid facility 
     described in paragraph (1) that produces no more than 20,000 
     barrels of coal-to-liquid fuel per day.
       ``(ii) Non-federal funding requirement.--To be eligible for 
     a loan guarantee under this title, a large-scale coal-to-
     liquid facility described in paragraph (1) that produces more 
     than 20,000 barrels per day of coal-to-liquid fuel shall be 
     eligible to receive a loan guarantee for the proportion of 
     the cost of the facility that represents 20,000 barrels of 
     coal-to-liquid fuel per day of production.
       ``(4) Requirements.--
       ``(A) Guidelines.--Not later than 180 days after the date 
     of enactment of this subsection, the Secretary shall publish 
     guidelines for the coal-to-liquids loan guarantee application 
     process.
       ``(B) Applications.--Not later than 1 year after the date 
     of enactment of this subsection, the Secretary shall begin to 
     accept applications for coal-to-liquid loan guarantees under 
     this subsection.
       ``(C) Deadline.--Not later than 1 year from the date of 
     acceptance of an application under subparagraph (B), the 
     Secretary shall evaluate the application and make final 
     determinations under this subsection.
       ``(5) Reports to congress.--The Secretary shall submit to 
     the Committee on Energy and Natural Resources of the Senate 
     and the Committee on Energy and Commerce of the House of 
     Representatives a report describing the status of the program 
     under this subsection not later than each of--
       ``(A) 180 days after the date of enactment of this 
     subsection;
       ``(B) 1 year after the date of enactment of this 
     subsection; and
       ``(C) the dates on which the Secretary approves the first 
     and fifth applications for coal-to-liquid loan guarantees 
     under this subsection.''.

     SEC. 103. COAL-TO-LIQUID FACILITIES LOAN PROGRAM.

       (a) Definition of Eligible Recipient.--In this section, the 
     term ``eligible recipient'' means an individual, 
     organization, or other entity that owns, operates, or plans 
     to construct a coal-to-liquid facility that will produce at 
     least 10,000 barrels per day of coal-to-liquid fuel.
       (b) Establishment.--The Secretary shall establish a program 
     under which the Secretary shall provide loans, in a total 
     amount not to exceed $20,000,000, for use by eligible 
     recipients to pay the Federal share of the cost of obtaining 
     any services necessary for the planning, permitting, and 
     construction of a coal-to-liquid facility.
       (c) Application.--To be eligible to receive a loan under 
     subsection (b), the eligible recipient shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require.
       (d) Non-Federal Match.--To be eligible to receive a loan 
     under this section, an eligible recipient shall use non-
     Federal funds to provide a dollar-for-dollar match of the 
     amount of the loan.
       (e) Repayment of Loan.--
       (1) In general.--To be eligible to receive a loan under 
     this section, an eligible recipient shall agree to repay the 
     original amount of the loan to the Secretary not later than 5 
     years after the date of the receipt of the loan.
       (2) Source of funds.--Repayment of a loan under paragraph 
     (1) may be made from any financing or assistance received for 
     the construction of a coal-to-liquid facility described in 
     subsection (a), including a loan guarantee provided under 
     section 1703(b)(11) of the Energy Policy Act of 2005 (42 
     U.S.C. 16513(b)(11)).
       (f) Requirements.--
       (1) Guidelines.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall publish guidelines 
     for the coal-to-liquids loan application process.
       (2) Applications.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall begin to accept 
     applications for coal-to-liquid loans under this section.
       (g) Reports to Congress.--Not later than each of 180 days 
     and 1 year after the date of enactment of this Act, the 
     Secretary shall submit to the Committee on Energy and Natural 
     Resources of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives a report describing 
     the status of the program under this section.
       (h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $200,000,000, to 
     remain available until expended.

     SEC. 104. LOCATION OF COAL-TO-LIQUID MANUFACTURING 
                   FACILITIES.

       The Secretary, in coordination with the head of any 
     affected agency, shall promulgate such regulations as the 
     Secretary determines to be necessary to support the 
     development on Federal land (including land of the Department 
     of Energy, military bases, and military installations closed 
     or realigned under the defense base closure and realignment) 
     of coal-to-liquid manufacturing facilities and associated 
     infrastructure, including the capture, transportation, or 
     sequestration of carbon dioxide.

     SEC. 105. STRATEGIC PETROLEUM RESERVE.

       (a) Development, Operation, and Maintenance of Reserve.--
     Section 159 of the Energy Policy and Conservation Act (42 
     U.S.C. 6239) is amended--
       (1) by redesignating subsections (f), (g), (j), (k), and 
     (l) as subsections (a), (b), (e), (f), and (g), respectively; 
     and
       (2) by inserting after subsection (b) (as redesignated by 
     paragraph (1)) the following:
       ``(c) Study of Maintaining Coal-to-Liquid Products in 
     Reserve.--Not later than 1 year after the date of enactment 
     of the Coal-to-Liquid Fuel Promotion Act of 2007, the 
     Secretary and the Secretary of Defense shall--
       ``(1) conduct a study of the feasibility and suitability of 
     maintaining coal-to-liquid products in the Reserve; and
       ``(2) submit to the Committee on Energy and Natural 
     Resources and the Committee on Armed Services of the Senate 
     and the Committee on Energy and Commerce and the Committee on 
     Armed Services of the House of Representatives a report 
     describing the results of the study.
       ``(d) Construction of Storage Facilities.--As soon as 
     practicable after the date of enactment of the Coal-to-Liquid 
     Fuel Promotion Act of 2007, the Secretary may construct 1 or 
     more storage facilities in the vicinity of pipeline 
     infrastructure and at least 1 military base.''.
       (b) Petroleum Products for Storage in Reserve.--Section 160 
     of the Energy Policy and Conservation Act (42 U.S.C. 6240) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting a semicolon at the end;
       (B) in paragraph (2), by striking ``and'' at the end;
       (C) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(4) coal-to-liquid products (as defined in section 101 of 
     the Coal-to-Liquid Fuel Promotion Act of 2007), as the 
     Secretary determines to be appropriate, in a quantity not to 
     exceed 20 percent of the total quantity of petroleum and 
     petroleum products in the Reserve.'';
       (2) in subsection (b), by redesignating paragraphs (3) 
     through (5) as paragraphs (2) through (4), respectively; and
       (3) by redesignating subsections (f) and (h) as subsections 
     (d) and (e), respectively.
       (c) Conforming Amendments.--Section 167 of the Energy 
     Policy and Conservation Act (42 U.S.C. 6247) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (B) in paragraph (2) (as redesignated by subparagraph (A)), 
     by striking ``section 160(f)'' and inserting ``section 
     160(e)''; and
       (2) in subsection (d), in the matter preceding paragraph 
     (1), by striking ``section 160(f)'' and inserting ``section 
     160(e)''.

     SEC. 106. AUTHORIZATION TO CONDUCT RESEARCH, DEVELOPMENT, 
                   TESTING, AND EVALUATION OF ASSURED DOMESTIC 
                   FUELS.

       Of the amount authorized to be appropriated for the Air 
     Force for research, development, testing, and evaluation, 
     $10,000,000 may be made available for the Air Force Research 
     Laboratory to continue support efforts to test, qualify, and 
     procure synthetic fuels developed from coal for aviation jet 
     use.

     SEC. 107. COAL-TO-LIQUID LONG-TERM FUEL PROCUREMENT AND 
                   DEPARTMENT OF DEFENSE DEVELOPMENT.

       Section 2398a of title 10, United States Code is amended--
       (1) in subsection (b)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (B) by adding at the end the following:
       ``(2) Coal-to-liquid production facilities.--
       ``(A) In general.--The Secretary of Defense may enter into 
     contracts or other agreements with private companies or other 
     entities to develop and operate coal-to-liquid facilities (as 
     defined in section 101 of the Coal-to-Liquid Fuel Promotion 
     Act of 2007) on or near military installations.
       ``(B) Considerations.--In entering into contracts and other 
     agreements under subparagraph (A), the Secretary shall 
     consider land availability, testing opportunities, and 
     proximity to raw materials.'';
       (2) in subsection (d)--
       (A) by striking ``Subject to applicable provisions of law, 
     any'' and inserting ``Any''; and
       (B) by striking ``1 or more years'' and inserting ``up to 
     25 years''; and
       (3) by adding at the end the following:
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

[[Page 211]]



     SEC. 108. REPORT ON EMISSIONS OF FISCHER-TROPSCH PRODUCTS 
                   USED AS TRANSPORTATION FUELS.

       (a) In General.--In cooperation with the Administrator of 
     the Environmental Protection Agency, the Secretary of 
     Defense, the Administrator of the Federal Aviation 
     Administration, and the Secretary of Health and Human 
     Services, the Secretary shall--
       (1) carry out a research and demonstration program to 
     evaluate the emissions of the use of Fischer-Tropsch fuel for 
     transportation, including diesel and jet fuel;
       (2) evaluate the effect of using Fischer-Tropsch 
     transportation fuel on land and air engine exhaust emissions; 
     and
       (3) in accordance with subsection (e), submit to Congress a 
     report on the effect on air quality and public health of 
     using Fischer-Tropsch fuel in the transportation sector.
       (b) Guidance and Technical Support.--The Secretary shall 
     issue any guidance or technical support documents necessary 
     to facilitate the effective use of Fischer-Tropsch fuel and 
     blends under this section.
       (c) Facilities.--For the purpose of evaluating the 
     emissions of Fischer-Tropsch transportation fuels, the 
     Secretary shall--
       (1) support the use and capital modification of existing 
     facilities and the construction of new facilities at the 
     research centers designated in section 417 of the Energy 
     Policy Act of 2005 (42 U.S.C. 15977); and
       (2) engage those research centers in the evaluation and 
     preparation of the report required under subsection (a)(3).
       (d) Requirements.--The program described in subsection 
     (a)(1) shall consider--
       (1) the use of neat (100 percent) Fischer-Tropsch fuel and 
     blends of Fischer-Tropsch fuels with conventional crude oil-
     derived fuel for heavy-duty and light-duty diesel engines and 
     the aviation sector; and
       (2) the production costs associated with domestic 
     production of those fuels and prices for consumers.
       (e) Reports.--The Secretary shall submit to the Committee 
     on Energy and Natural Resources of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives--
       (1) not later than 180 days after the date of enactment of 
     this Act, an interim report on actions taken to carry out 
     this section; and
       (2) not later than 1 year after the date of enactment of 
     this Act, a final report on actions taken to carry out this 
     section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

       TITLE II--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

     SEC. 201. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID FUELS 
                   PROJECTS.

       (a) In General.--Section 46 of the Internal Revenue Code of 
     1986 (relating to amount of credit) is amended by striking 
     ``and'' at the end of paragraph (3), by striking the period 
     at the end of paragraph (4) and inserting ``, and'', and by 
     adding at the end the following new paragraph:
       ``(5) the qualifying coal-to-liquid fuels project 
     credit.''.
       (b) Amount of Credit.--Subpart E of part IV of subchapter A 
     of chapter 1 of the Internal Revenue Code of 1986 (relating 
     to rules for computing investment credit) is amended by 
     inserting after section 48B the following new section:

     ``SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     qualifying coal-to-liquid fuels project credit for any 
     taxable year is an amount equal to 20 percent of the 
     qualified investment for such taxable year.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the basis of 
     property placed in service by the taxpayer during such 
     taxable year which is part of a qualifying coal-to-liquid 
     fuels project--
       ``(A)(i) the construction, reconstruction, or erection of 
     which is completed by the taxpayer, or
       ``(ii) which is acquired by the taxpayer if the original 
     use of such property commences with the taxpayer, and
       ``(B) with respect to which depreciation (or amortization 
     in lieu of depreciation) is allowable.
       ``(2) Applicable rules.--For purposes of this section, 
     rules similar to the rules of subsection (a)(4) and (b) of 
     section 48 shall apply.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualifying coal-to-liquid fuels project.--The term 
     `qualifying coal-to-liquid fuels project' means any domestic 
     project which--
       ``(A) employs the class of reactions known as Fischer-
     Tropsch to produce at least 10,000 barrels per day of 
     transportation grade liquid fuels from a feedstock that is 
     primarily domestic coal (including any property which allows 
     for the capture, transportation, or sequestration of by-
     products resulting from such process, including carbon 
     emissions), and
       ``(B) any portion of the qualified investment in which is 
     certified under the qualifying coal-to-liquid program as 
     eligible for credit under this section in an amount (not to 
     exceed $200,000,000) determined by the Secretary.
       ``(2) Coal.--The term `coal' means any carbonized or 
     semicarbonized matter, including peat.
       ``(d) Qualifying Coal-to-Liquid Fuels Project Program.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of Energy, shall establish a qualifying coal-to-
     liquid fuels project program to consider and award 
     certifications for qualified investment eligible for credits 
     under this section to 10 qualifying coal-to-liquid fuels 
     project sponsors under this section. The total qualified 
     investment which may be awarded eligibility for credit under 
     the program shall not exceed $2,000,000,000.
       ``(2) Period of issuance.--A certificate of eligibility 
     under paragraph (1) may be issued only during the 10-fiscal 
     year period beginning on October 1, 2007.
       ``(3) Selection criteria.--The Secretary shall not make a 
     competitive certification award for qualified investment for 
     credit eligibility under this section unless the recipient 
     has documented to the satisfaction of the Secretary that--
       ``(A) the proposal of the award recipient is financially 
     viable,
       ``(B) the recipient will provide sufficient information to 
     the Secretary for the Secretary to ensure that the qualified 
     investment is spent efficiently and effectively,
       ``(C) the fuels identified with respect to the gasification 
     technology for such project will comprise at least 90 percent 
     of the fuels required by the project for the production of 
     transportation grade liquid fuels,
       ``(D) the award recipient's project team is competent in 
     the planning and construction of coal gasification facilities 
     and familiar with operation of the Fischer-Tropsch process, 
     with preference given to those recipients with experience 
     which demonstrates successful and reliable operations of such 
     process, and
       ``(E) the award recipient has met other criteria 
     established and published by the Secretary.
       ``(e) Denial of Double Benefit.--No deduction or other 
     credit shall be allowed with respect to the basis of any 
     property taken into account in determining the credit allowed 
     under this section.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
     1986 is amended by striking ``and'' at the end of clause 
     (iii), by striking the period at the end of clause (iv) and 
     inserting ``, and'', and by adding after clause (iv) the 
     following new clause:
       ``(v) the basis of any property which is part of a 
     qualifying coal-to-liquid fuels project under section 48C.''.
       (2) The table of sections for subpart E of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 48B the 
     following new item:

``48C. Qualifying coal-to-liquid fuels project credit.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after the date of the enactment of 
     this Act, under rules similar to the rules of section 48(m) 
     of the Internal Revenue Code of 1986 (as in effect on the day 
     before the date of the enactment of the Revenue 
     Reconciliation Act of 1990).

     SEC. 202. TEMPORARY EXPENSING FOR EQUIPMENT USED IN COAL-TO-
                   LIQUID FUELS PROCESS.

       (a) In General.--Part VI of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 179D the following new section:

     ``SEC. 179E. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQUID FUELS 
                   FACILITIES.

       ``(a) Treatment as Expenses.--A taxpayer may elect to treat 
     the cost of any qualified coal-to-liquid fuels process 
     property as an expense which is not chargeable to capital 
     account. Any cost so treated shall be allowed as a deduction 
     for the taxable year in which the expense is incurred.
       ``(b) Election.--
       ``(1) In general.--An election under this section for any 
     taxable year shall be made on the taxpayer's return of the 
     tax imposed by this chapter for the taxable year. Such 
     election shall be made in such manner as the Secretary may by 
     regulations prescribe.
       ``(2) Election irrevocable.--Any election made under this 
     section may not be revoked except with the consent of the 
     Secretary.
       ``(c) Qualified Coal-to-Liquid Fuels Process Property.--The 
     term `qualified coal-to-liquid fuels process property' means 
     any property located in the United States--
       ``(1) which employs the Fischer-Tropsch process to produce 
     transportation grade liquid fuels from a feedstock that is 
     primarily domestic coal (including any property which allows 
     for the capture, transportation, or sequestration of by-
     products resulting from such process, including carbon 
     emissions),
       ``(2) the original use of which commences with the 
     taxpayer,
       ``(3) the construction of which--
       ``(A) except as provided in subparagraph (B), is subject to 
     a binding construction contract entered into after the date 
     of the enactment of this section and before January 1, 2011, 
     but only if there was no written binding construction 
     contract entered into on or before such date of enactment, or

[[Page 212]]

       ``(B) in the case of self-constructed property, began after 
     the date of the enactment of this section and before January 
     1, 2011, and
       ``(4) which is placed in service by the taxpayer after the 
     date of the enactment of this section and before January 1, 
     2016.
       ``(d) Election to Allocate Deduction to Cooperative 
     Owner.--If--
       ``(1) a taxpayer to which subsection (a) applies is an 
     organization to which part I of subchapter T applies, and
       ``(2) one or more persons directly holding an ownership 
     interest in the taxpayer are organizations to which part I of 
     subchapter T apply,

     the taxpayer may elect to allocate all or a portion of the 
     deduction allowable under subsection (a) to such persons. 
     Such allocation shall be equal to the person's ratable share 
     of the total amount allocated, determined on the basis of the 
     person's ownership interest in the taxpayer. The taxable 
     income of the taxpayer shall not be reduced under section 
     1382 by reason of any amount to which the preceding sentence 
     applies.
       ``(e) Basis Reduction.--
       ``(1) In general.--For purposes of this title, if a 
     deduction is allowed under this section with respect to any 
     qualified coal-to-liquid fuels process property, the basis of 
     such property shall be reduced by the amount of the deduction 
     so allowed.
       ``(2) Ordinary income recapture.--For purposes of section 
     1245, the amount of the deduction allowable under subsection 
     (a) with respect to any property which is of a character 
     subject to the allowance for depreciation shall be treated as 
     a deduction allowed for depreciation under section 167.
       ``(f) Application With Other Deductions and Credits.--
       ``(1) Other deductions.--No deduction shall be allowed 
     under any other provision of this chapter with respect to any 
     expenditure with respect to which a deduction is allowed 
     under subsection (a) to the taxpayer.
       ``(2) Credits.--No credit shall be allowed under section 38 
     with respect to any amount for which a deduction is allowed 
     under subsection (a).
       ``(g) Reporting.--No deduction shall be allowed under 
     subsection (a) to any taxpayer for any taxable year unless 
     such taxpayer files with the Secretary a report containing 
     such information with respect to the operation of the 
     property of the taxpayer as the Secretary shall require.''.
       (b) Conforming Amendments.--
       (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of paragraph (36), by 
     striking the period at the end of paragraph (37) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(38) to the extent provided in section 179E(e)(1).''.
       (2) Section 1245(a) of such Code is amended by inserting 
     ``179E,'' after ``179D,'' both places it appears in 
     paragraphs (2)(C) and (3)(C).
       (3) Section 263(a)(1) of such Code is amended by striking 
     ``or'' at the end of subparagraph (J), by striking the period 
     at the end of subparagraph (K) and inserting ``, or'', and by 
     inserting after subparagraph (K) the following new 
     subparagraph:
       ``(L) expenditures for which a deduction is allowed under 
     section 179E.''.
       (4) Section 312(k)(3)(B) of such Code is amended by 
     striking ``or 179D'' each place it appears in the heading and 
     text and inserting ``179D, or 179E''.
       (5) The table of sections for part VI of subchapter B of 
     chapter 1 of such Code is amended by inserting after the item 
     relating to section 179D the following new item:

``Sec. 179E. Election to expense certain coal-to-liquid fuels 
              facilities.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to properties placed in service after the date of 
     the enactment of this Act.

     SEC. 203. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR FUEL 
                   DERIVED FROM COAL THROUGH THE FISCHER-TROPSCH 
                   PROCESS.

       (a) Alternative Fuel Credit.--Paragraph (4) of section 
     6426(d) of the Internal Revenue Code of 1986 is amended to 
     read as follows:
       ``(4) Termination.--This subsection shall not apply to--
       ``(A) any sale or use involving liquid fuel derived from a 
     feedstock that is primarily domestic coal (including peat) 
     through the Fischer-Tropsch process for any period after 
     September 30, 2020,
       ``(B) any sale or use involving liquified hydrogen for any 
     period after September 30, 2014, and
       ``(C) any other sale or use for any period after September 
     30, 2009.''.
       (b) Payments.--
       (1) In general.--Paragraph (5) of section 6427(e) of the 
     Internal Revenue Code of 1986 is amended by striking ``and'' 
     and the end of subparagraph (C), by striking the period at 
     the end of subparagraph (D) and inserting ``, and'', and by 
     adding at the end the following new subparagraph:
       ``(E) any alternative fuel or alternative fuel mixture (as 
     so defined) involving liquid fuel derived from coal 
     (including peat) through the Fischer-Tropsch process sold or 
     used after September 30, 2020.''.
       (2) Conforming amendment.--Section 6427(e)(5)(C) of such 
     Code is amended by striking ``subparagraph (D)'' and 
     inserting ``subparagraphs (D) and (E)''.

     SEC. 204. MODIFICATIONS TO ENHANCED OIL RECOVERY CREDIT.

       (a) Enhanced Credit for Carbon Dioxide Injections.--Section 
     43 of the Internal Revenue Code of 1986 is amended by adding 
     at the end the following new subsection:
       ``(f) Enhanced Credit for Projects Using Qualified Carbon 
     Dioxide.--
       ``(1) In general.--For purposes of this section--
       ``(A) the term `qualified project' includes a project 
     described in paragraph (2), and
       ``(B) in the case of a project described in paragraph (2), 
     subsection (a) shall be applied by substituting `50 percent' 
     for `15 percent'.
       ``(2) Projects described.--A project is described in this 
     paragraph if it begins or is substantially expanded after 
     December 31, 2007, and
       ``(A) uses qualified carbon dioxide in an enhanced oil, 
     natural gas, or coalbed methane recovery method, which 
     involves flooding or injection, or
       ``(B) enables the capture or sequestration of qualified 
     carbon dioxide.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Enhanced oil recovery.--The term `enhanced oil 
     recovery' means recovery of oil by injecting or flooding with 
     qualified carbon dioxide.
       ``(B) Enhanced natural gas recovery.--The term `enhanced 
     natural gas recovery' means recovery of natural gas by 
     injecting or flooding with qualified carbon dioxide.
       ``(C) Enhanced coalbed methane recovery.--The term 
     `enhanced coalbed methane recovery' means recovery of coalbed 
     methane by injecting or flooding with qualified carbon 
     dioxide.
       ``(D) Qualified carbon dioxide.--The term `qualified carbon 
     dioxide' means carbon dioxide which is produced from the 
     gasification and subsequent refinement of a feedstock which 
     is primarily domestic coal, at a facility which produces 
     coal-to-liquid fuel.
       ``(E) Capture or sequestration.--The term `capture or 
     sequestration' means any equipment or facility necessary to--
       ``(i) capture or separate qualified carbon dioxide from 
     other emissions,
       ``(ii) transport qualified carbon dioxide, or
       ``(iii) process and use qualified carbon dioxide in a 
     qualified project.
       ``(4) Termination.--This subsection shall not apply to 
     costs paid or incurred for any qualified project after 
     December 31, 2020.''.
       (b) Conforming Amendments.--
       (1) Section 43 of the Internal Revenue Code of 1986 is 
     amended--
       (A) by striking ``enhanced oil recovery credit'' in 
     subsection (a) and inserting ``enhanced oil, natural gas, and 
     coalbed methane recovery, and capture and sequestration 
     credit'',
       (B) by striking ``qualified enhanced oil recovery costs'' 
     each place it appears and inserting ``qualified costs'',
       (C) by striking ``qualified enhanced oil recovery project'' 
     each place it appears and inserting ``qualified project'', 
     and
       (D) by striking the heading and inserting:

     ``SEC. 43. ENHANCED OIL, NATURAL GAS, AND COALBED METHANE 
                   RECOVERY, AND CAPTURE AND SEQUESTRATION 
                   CREDIT.''.

       (2) The item in the table of sections for subpart D of part 
     IV of subchapter A of chapter 1 of such Code relating to 
     section 43 is amended to read as follows:

``Sec. 43. Enhanced oil, natural gas, and coalbed methane recovery, and 
              capture and sequestration credit.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to costs paid or incurred in taxable years ending 
     after December 31, 2007.

     SEC. 205. ALLOWANCE OF ENHANCED OIL, NATURAL GAS, AND COALBED 
                   METHANE RECOVERY, AND CAPTURE AND SEQUESTRATION 
                   CREDIT AGAINST THE ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subsection (c) of section 38 of the 
     Internal Revenue Code of 1986 (relating to limitation based 
     on amount of tax) is amended by redesignating paragraphs (4) 
     and (5) as paragraphs (5) and (6), respectively, and by 
     inserting after paragraph (3) the following new paragraph:
       ``(4) Special rules for enhanced oil, natural gas, and 
     coalbed methane recovery, and capture and sequestration 
     credit.--In the case of the enhanced oil, natural gas, and 
     coalbed methane recovery, and capture and sequestration 
     credit determined under section 43--
       ``(A) this section and section 39 shall be applied 
     separately with respect to such credit, and
       ``(B) in applying paragraph (1) to such credit--
       ``(i) the tentative minimum tax shall be treated as being 
     zero, and
       ``(ii) the limitation under paragraph (1) (as modified by 
     clause (i)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the enhanced 
     oil, natural gas, and coalbed methane recovery, and capture 
     and sequestration credit and the specified credits).''.
       (b) Conforming Amendments.--
       (1) Section 38(c)(2)(A)(ii)(II) of such Code is amended by 
     inserting ``the enhanced oil, natural gas, and coalbed 
     methane recovery, and

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     capture and sequestration credit,'' after ``employee 
     credit,''.
       (2) Section 38(c)(3)(A)(ii)(II) of such Code is amended by 
     inserting ``, the enhanced oil, natural gas, coalbed methane 
     recovery, capture and sequestration credit,'' after 
     ``employee credit''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2007.
                                 ______
                                 
      By Mr. REID (for Mr. Wyden (for himself, Mr. McCain, and Mr. 
        Sununu)):
  S. 156. A bill to make the moratorium on Internet access taxes and 
multiple and discriminatory taxes on electronic commerce permanent; to 
the Committee on Commerce, Science, and Transportation.
  Mr. WYDEN. Mr. President, today I am reintroducing in this new 
Congress a bill to advance a cause for which I have been fighting for 
over 10 years now. The Permanent Internet Tax Freedom Act would extend 
the current Internet tax moratorium, so that the Internet can remain 
free from burdensome and discriminatory taxes.
  Legislation to keep the Internet free from these taxes has passed the 
Senate 3 times since 1998 with sunsets that required consecutive 
extensions. A permanent moratorium on Internet taxation passed through 
both the Commerce and Finance Committees in the 109th Congress yet 
failed to get action on the Senate floor.
  I come to the Floor again, bringing up Internet Taxation, because the 
moratorium on Internet Taxation is set to expire on November 1st of 
this year. In only 11 months, if Congress does not act, the moratorium 
on Internet Taxation that has allowed the Internet and e-commerce to 
flourish will cease to protect American consumers and American 
businesses.
  I don't want those who use the Internet to end up like our ancestors: 
they were told the Spanish-American War telephone tax was 
``temporary,'' and that the tax was just needed to pay for the war. 
That war ended two centuries ago, and Congress is just now getting 
around to getting rid of the tax!
  The last time I checked, the Internet shows no sign of riding off 
into the sunset, or becoming obsolete. You can bet that once 
discriminatory taxes are slapped on Internet users, those 
discriminatory taxes won't be going away any time soon either.
  If you want to figure out how much discriminatory taxes could be, 
just look at your phone bill. Taxes and government fees already add as 
much as 20 percent in surcharges to consumer's telephone bills.
  If you take a gallon of milk to the checkout counter and pay tax on 
the purchase, the clerk can't turn around and charge you another tax if 
you're going to use the milk in your cereal and another tax if you're 
going to put milk in your coffee. But that's what will happen to the 
Internet if the ban is not made permanent. You'd still pay all the 
telephone taxes and all the franchise fees on cable, but on top of 
those you'd pay even more taxes for the same service when you sign on 
to the Internet!
  Discriminatory and double taxation of the Internet has been banned 
for 8 years now. In all that time no one has ever come forward with 
evidence to show that the failure to impose discriminatory taxes has 
hurt them. No one has demonstrated why taxes that cannot be imposed in 
the offline world should be imposed on identical online transactions.
  Western Civilization may not end if the Permanent Internet Freedom 
Act is not passed, but you have to ask how many times Congress has to 
revisit, re-litigate and re-approve a law that has been this effective. 
It is time to make the Internet Tax moratorium permanent.
  I want to thank my colleagues, Mr. McCain from Arizona and Mr. Sununu 
from New Hampshire for introducing this legislation with me today. They 
both fought tirelessly alongside me and our former colleague, Mr. Allen 
from Virginia, to get the moratorium extended in 2004. I am pleased 
that they are now replacing Mr. Allen as my bi-partisan partners on 
this important piece of legislation. It is my hope that the three of 
us, working with the rest of our colleagues, can get this all-important 
piece of legislation passed early this year so we do not have to worry 
about it as the November 1st deadline fast approaches.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 156

       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 ``Permanent Internet Tax 
     Freedom Act of 2007''.

     SEC. 2. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND 
                   MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC 
                   COMMERCE.

       Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
     151 note) is amended by striking ``taxes during the period 
     beginning November 1, 2003, and ending November 1, 2007:'' 
     and inserting ``taxes:''

  Mr. McCAIN. Mr. President, I am pleased to join with Senators Wyden 
and Sununu in introducing the Permanent Internet Tax Freedom Act of 
2007. This bill would ensure that consumers never have to pay a toll 
when they access the Information Highway. Whether consumers log onto 
the Internet using cable modem, DSL, dial-up or wireless services, 
under this bill, they will not be taxed by any State or local 
governments for their Internet usage.
  Keeping Internet access affordable to all Americans is a worthy 
policy goal. The Internet has become a fixture and core component of 
modem American life that has created and continues to generate social 
and economic opportunities throughout the United States.
  In 1998, Congress put in place a temporary ban on any State or local 
taxes on Internet access. Additionally, Congress placed a moratorium on 
multiple or discriminatory State and local taxes on e-commerce 
transactions to ensure the growth of online commerce. This moratorium 
was extended in 2004, but is set to expire November 1, 2007. Our 
legislation, the Permanent Internet Tax Freedom Act of 2007, would make 
the moratorium permanent.
  Today, the U.S. ranks 12th in the world in per capita Internet 
access, lagging behind competitors South Korea, the United Kingdom and 
Canada. This is absolutely unacceptable for a country that leads the 
world in technical innovation, economic development, and international 
competitiveness. We certainly cannot afford to make Internet access 
more difficult to obtain if we want to become more internationally 
competitive.
  There is little doubt that the development and growth of the Internet 
was aided by the tax moratorium. In 1998, the year the moratorium was 
first enacted, 36 percent of U.S. adults reported using the Internet. 
In 2006, that number grew to 73 percent, an all time high according to 
an April 2006 Pew Internet & American Life Project Report. However, the 
report also found that Americans in the lowest income households are 
considerably less likely to be online. Just 55 percent of adults living 
in households with less than $30,000 annual income go online, versus 73 
percent of those whose income is between $30,000-$50,000. This 
``digital divide'' needs to be closed immediately. Continuing 
Congress's policy of reducing the cost of Internet access, by 
preventing the service from being taxed, is one step we can take now to 
close the ``digital divide.''
  As use of the Internet has grown, so has e-commerce. According to the 
most recent comScore Networks report, Americans spent over $100 billion 
on Internet purchases during 2006, a major milestone for retailers and 
the World Wide Web. This legislation would ensure that online 
transactions are not taxed by cities or States at a rate higher than 
other sales transactions. Again, the goal of this legislation is to 
make the Internet affordable to all Americans and foster the growth of 
the Internet.
  With respect to the question of whether it is wise to make Internet 
access tax free, Congress has a long history of giving tax incentives 
to commercial activities that we believe help our society. The Internet 
is a technology that is a source of and vehicle

[[Page 214]]

for significant economic benefits. The proponents of this legislation 
strongly believe the Internet clearly merits the tax incentives 
provided by this bill.
  I recognize that there are some who wish to continue to make the 
Internet tax moratorium temporary. Their premise is that the Internet 
will continue to evolve and thus Internet access may develop into a 
service the States and localities would wish to tax. I believe that 
this moratorium should be permanent to continue encouraging those very 
Internet-related innovations. By making the moratorium permanent, 
businesses that invest in and provide Internet access will be able to 
operate in a predictable tax environment. This will result in continued 
investment in this very important social, political and economic 
medium.
  Congress now has the opportunity to extend permanently the Internet 
tax moratorium and assure consumers that taxes will not inhibit the 
offering of affordable Internet access. By supporting this legislation, 
we can continue to promote Internet usage by Americans as well as 
encourage innovation relating to this technology. For these reasons, I 
ask my colleagues to support this pro-consumer, pro-innovation, and 
pro-technology bill.
                                 ______
                                 
      By Ms. COLLINS (for herself and Ms. Landrieu):
  S. 158. A bill to expand access to affordable health care and to 
strengthen the health care safety net and make health care services 
more available in rural and underserved areas; to the Committee on 
Finance.
  Ms. COLLINS. Mr. President, I am pleased to join with my colleague 
from Louisiana, Senator Landrieu, in introducing the Access to 
Affordable Health Care Act, a comprehensive plan that builds on the 
strengths of our current public programs and private health care system 
to make affordable health care available to millions more Americans.
  One of my priorities in the Senate has been to expand access to 
affordable health care. There are still far too many Americans without 
health insurance or with woefully inadequate coverage. As many as 46 
million Americans are uninsured, and millions more are underinsured.
  Maine is in the midst of a growing health insurance crisis, with 
insurance premiums rising at alarming rates. Whether I am talking to a 
self-employed fisherman, a displaced worker, the owner of a struggling 
small business, or the human resource manager of a large company, the 
soaring costs of health insurance is a common concern.
  These cost increases have been particularly burdensome for small 
businesses, the backbone of the Maine economy. Maine small business 
owners want to provide coverage for their employees, but they are 
caught in a cost squeeze. They know that if they pass on premium 
increases to their employees, more of them will decline coverage. Yet 
these small businesses simply cannot afford to absorb double-digit 
increases in their health insurance premiums year after year.
  The problem of rising costs is even more acute for individuals and 
families who must purchase health insurance on their own. Monthly 
health insurance premiums in Maine often exceed a family's mortgage 
payment. Clearly, we must do more to make health insurance more 
available and affordable.
  The Access to Affordable Health Care Act, which we are introducing 
today, is a seven-point plan that combines a variety of public and 
private approaches. The legislation's seven goals are: one, to expand 
access to affordable health care for small businesses; two, to make 
health insurance more affordable for individuals and families 
purchasing coverage on their own; three, to strengthen the health care 
safety net for those without coverage; four, to expand access to care 
in rural and underserved areas; five, to increase access to affordable 
long-term care; six to promote healthier lifestyles; and seven, to 
provide more equitable Medicare payments to Maine providers to reduce 
the Medicare shortfall, which has forced hospitals, physicians and 
other providers to shift costs onto other payers in the form of higher 
charges, which in turn drives up health care premiums.
  Let me discuss each of these seven points in greater detail.
  First, our legislation will help small employers cope with rising 
health care costs.
  Since most Americans get their health insurance through the 
workplace, it is a common assumption that people without health 
insurance are unemployed. The fact is, however, that as many as 83 
percent of Americans who do not have health insurance are in a family 
with a worker.
  Uninsured working Americans are most often employees of small 
businesses. In fact, some 63 per cent of uninsured workers are employed 
by small firms. Smaller firms generally face higher costs for health 
insurance than larger firms, which makes them less likely to offer 
coverage. The Access to Affordable Health Care Act will help these 
employers cope with rising costs by creating new tax credits for small 
businesses to make health insurance more affordable. It will encourage 
those small businesses that do not offer health insurance to do so and 
will help employers that do offer insurance to continue coverage for 
their employees even in the face of rising costs.
  Our legislation will also provide grants to provide start-up funding 
to States to help businesses to form group purchasing cooperatives. 
These cooperatives will enable small businesses to band together to 
purchase health insurance jointly. This will help to reduce their costs 
and improve the quality of their employee's health care.
  The legislation would also authorize a Small Business Administration 
grant program for States, local governments and non-profit 
organizations to provide information about the benefits of health 
insurance to small employers, including tax benefits, increased 
productivity of employees, and decreased turnover. These grants would 
also be used to make employers aware of their current incentives under 
State and Federal laws. While costs are clearly a problem, many small 
employers are simply not aware of laws that have already been enacted 
by both States and the Federal government to make health insurance more 
affordable. For example, in one survey, 57 percent of small employers 
did not know that they could deduct 100 percent of their health 
insurance premiums as a business expense.
  The legislation would also create a new program to encourage 
innovation by awarding demonstration grants in up to 10 States 
conducting innovative coverage expansions, such as alternative group 
purchasing or pooling arrangements, individual or small group market 
reforms, or subsidies to employers or individuals purchasing coverage. 
The States have long been laboratories for reform, and they should be 
encouraged in the development of innovative programs that can serve as 
models for the Nation.
  The Access to Affordable Health Care Act will also expand access to 
affordable health care for individuals and families. One of the first 
bills that I sponsored when I came to the Senate was legislation to 
establish the State Child Health Insurance Program, which provides 
insurance for the children of low-income parents who cannot afford 
health insurance, yet make too much money to qualify for Medicaid. 
Since 1997, this program, which is known as SCHIP, has contributed to a 
one-third decline in the uninsured rate of low-income children. Today, 
over six million children--including approximately 14,500 in Maine--
receive health care coverage through this remarkably effective health 
care program.
  First, our legislation will shore up the looming shortfalls in SCHIP 
funding that 17 states--including Maine--will face in Fiscal Year 2007 
to ensure that children currently enrolled in the program do not lose 
their coverage. Just prior to adjournment in December, the Congress 
approved legislation to partially address these shortfalls. That 
legislation, however, provides only about one-fifth of the funds 
needed. Our legislation will close that gap.
  Our legislation also builds on the success of the SCHIP program and 
gives States a number of new tools to increase participation. The bill 
authorizes new grants for States and non-

[[Page 215]]

 profit organizations to conduct innovative outreach and enrollment 
efforts to ensure that all eligible children are covered. States would 
also have the option of covering the parents of the children who are 
enrolled in programs like MaineCare. States could also use funds 
provided through this program to help eligible working families pay 
their share of an employer-based health insurance plan. In short, the 
legislation will help ensure that the entire family receives the health 
care they need.
  And finally, to help make health coverage more affordable for low and 
middle-income individuals and families who do not have employer-
provided coverage and who are not eligible for the expanded programs, 
our legislation would provide an advanceable, refundable tax credit of 
up to $1,000 for individuals earning up to $30,000 and up to $3,000 for 
families earning up to $60,000. This could provide coverage for up to 
six million Americans who would otherwise be uninsured for one or more 
months, and will help many more working lower-income families who 
currently purchase private health insurance with little or no 
government help.
  To strengthen our nation's health care safety net, the Access to 
Affordable Health Care Act calls for a doubling of funding over five 
years for the Consolidated Health Centers program, which includes 
community, migrant, public housing and homeless health centers.
  These centers, which operate in underserved urban and rural 
communities, provide critical primary care services to millions of 
Americans, regardless of their ability to pay. About 20 percent of the 
patients treated in Maine's community health centers have no insurance 
coverage and many more have inadequate coverage, so these centers are a 
critical part of our nation's health care safety net.
  The problem of access to affordable health care services is not 
limited to the uninsured, but is also shared by many Americans living 
in rural and underserved areas where there is a shortage of health care 
providers. The Access to Affordable Health Care Act therefore calls for 
increased funding for the National Health Service Corps, which supports 
doctors, dentists, and other clinicians who serve in rural and inner 
city areas.
  The legislation will also give the program greater flexibility by 
allowing National Health Service Corps participants to fulfill their 
commitment on a part-time basis. Current law requires all National 
Health Service Corps participants to serve full-time. Many rural 
communities, however, simply do not have enough volume to support a 
full-time health care practitioner. Moreover, some sites may not need a 
particular type of provider on a full-time basis. Our bill therefore 
gives the program additional flexibility to meet community needs.
  As the Senate co-chair of the bipartisan Congressional Task Force on 
Alzheimer's Disease, I am particularly sensitive to the long-term care 
needs of patients with chronic diseases like Alzheimer's and their 
families.
  Long-term care is the major catastrophic health care expense faced by 
older Americans today, and these costs will only increase with the 
aging of the baby boomers. Most Americans mistakenly believe that 
Medicare or their private health insurance policies will cover the 
costs of long-term care should they develop a chronic illness or 
cognitive impairment like Alzheimer's Disease. Unfortunately, far too 
many do not discover that they do not have coverage until they are 
confronted with the difficult decision of placing a much-loved parent 
or spouse in long-term care and facing the shocking realization that 
they will have to cover the costs themselves.
  The Access to Affordable Health Care Act will provide a tax credit 
for long-term care expenses of up to $3,000 to provide some help to 
those families struggling to provide long-term care to a loved one. It 
will also encourage more Americans to plan for their future long-term 
care needs by providing a tax deduction to help them purchase long-term 
care insurance.
  Health insurance alone is not going to ensure good health. As noted 
author and physician Dr. Michael Crichton has observed, ``the future of 
medicine lies not in treating illness, but preventing it.'' Many of our 
most serious health problems are directly related to unhealthy 
behaviors--smoking, lack of regular exercise, and poor diet. These 
three major risk factors alone have made Maine the state with the 
fourth highest death rate due to four largely preventable diseases: 
cardiovascular disease, cancer, chronic lung disease and diabetes. 
These four chronic diseases are responsible for 70 percent of the 
health care problems in Maine.
  Our bill therefore contains a number of provisions designed to 
promote healthy lifestyles. An ever-expanding body of evidence shows 
that investments in health promotion and prevention offer returns not 
only in reduced health care bills, but in longer life and increased 
productivity. The legislation will provide grants to States to assist 
small businesses wishing to establish ``worksite wellness'' programs 
for their employees. It would also authorize a grant program to support 
new and existing ``community partnerships,'' such as the Healthy 
Community Coalition in Maine's Franklin County, to promote healthy 
lifestyles among hospitals, employers, schools and community 
organizations. And, it would provide funds for States to establish or 
expand comprehensive school health education, including, for example, 
physical education programs that promote lifelong physical activity, 
healthy food service selections, and programs that promote a healthy 
and safe school environment.
  And finally, the Access to Affordable Health Care Act would promote 
greater equity in Medicare payments and help to ensure that the 
Medicare system rewards rather than punishes states like Maine that 
deliver high-quality, cost-effective Medicare services to our elderly 
and disabled citizens.
  The Medicare Modernization Act of 2003 and subsequent legislation did 
take some significant steps toward promoting greater fairness by 
increasing Medicare payments to rural hospitals and by modifying 
geographic adjustment factors that discriminated against physicians and 
other providers in rural areas. The legislation we are introducing 
today will build on those improvements by establishing State pilot 
programs that reward providers of high- quality, cost-efficient 
Medicare services.
  The Access to Affordable Health Care Act outlines a blueprint for 
reform based on principles upon which I believe a bipartisan majority 
in Congress could agree. The plan takes significant strides toward the 
goal of universal health care coverage by bringing millions more 
Americans into the insurance system and by strengthening the health 
care safety net.
  Ms. LANDRIEU. Mr. President, I am pleased to join with my colleague 
from Main, Senator Collins, in introducing the Access to Affordable 
Health Care Act. The latest available Census figures show that 46.6 
million people in our country--including almost 19 percent of the 
people in my home State of Louisiana--are without health insurance.
  This statistic has been referred to so often in the media and in this 
body that it is almost possible to hear it without realizing the full 
impact of such uncertainty on one's day-to-day life. 46.6 million 
people without health insurance means 36.3 million families struggling 
with the knowledge that they may be just one hospitalization away from 
bankruptcy. It means 8.3 million children who may not be able to access 
the care they need to prevent increasingly common and often 
debilitating chronic illnesses such as diabetes and asthma, adversely 
affecting them for the rest of their lives. It means 27.3 million 
Americans with jobs, who work everyday knowing that they still may not 
be able to provide for their families in their time of need.
  Across the country, small business owners and families are struggling 
with the high cost of health care. This is particularly true in 
Louisiana and across the gulf coast, where recovery from the 2005 
hurricanes has already placed heavy burdens on thousands of families 
trying to rebuild and businesses working to reopen. Since 2000,

[[Page 216]]

the number of employees nationwide receiving health insurance through 
their employers has actually decreased, reversing the progress we saw 
in the 1990s. Small businesses create two out of every three new jobs 
in America and account for nearly half of America's overall employment. 
Yet only 26 percent of businesses with fewer than 50 employees can 
offer health insurance to their employees. The Access to Affordable 
Health Care Act gives the small businesses that are the backbone of 
this country the opportunity to help make their employees' lives just a 
little easier.
  This legislation further provides for the expansion of the enormously 
successful SCHIP program, allowing States to cover increased numbers of 
pregnant women and poor, working adults. It allows for more community 
health centers and encourages health care providers to practice in the 
increasingly underserved rural areas of all States. It gives businesses 
the tools to not only insure their employees against illness but to 
encourage wellness, decreasing health care costs for everybody. It 
allows our government to reward States that find ways to improve health 
outcomes among Medicare patients, actively supporting the types of 
cost-efficient successes that improve the quality of life.
  A country identified by its ingenuity and creativity has a moral 
responsibility to do more than we have to provide its citizens with the 
ability to keep their families safe and healthy. These comprehensive, 
real steps forward will open new doors of opportunity and access to 
affordable health care for millions of American families and business 
owners, and I am proud to have partnered with Senator Collins in this 
important pursuit. I encourage my colleagues to consider this 
legislation and to help provide our all our constituents with the peace 
of mind.
                                 ______
                                 
      By Mr. KERRY (for himself, Ms. Snowe, Ms. Landrieu, and Mr. 
        Vitter):
  S. 163. A bill to improve the disaster loan program at the Small 
Business Administration, and for other purposes; to the Committee on 
Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, 16 months after Hurricane Katrina struck 
the Gulf Coast, small business owners in New Orleans and across 
Louisiana are still struggling to keep their doors open and their 
employees working. In those 16 months, I have worked with Senators 
Snowe, Landrieu, and Vitter to produce a comprehensive package to 
reform the SBA's Disaster Assistance program. The SBA's failed response 
in a time of unmatched need demonstrated to everyone that this program 
is broken and needs fixing.
  Immediately after Hurricane Katrina hit, I introduced an amendment 
with Senator Landrieu to the fiscal year 2006 Commerce, Justice and 
Science appropriations bill to address the needs of Gulf Region small 
business and homeowners. The amendment was adapted with input from 
Chair Snowe, and a subsequent bipartisan amendment passed the Senate 
with a vote of 96-0. Although the entire Senate supported the 
amendment, it was stripped out of the bill in conference.
  On September 30, 2005, I again worked with Chair Snowe and Senators 
Landrieu and Vitter to introduce a bipartisan proposal, the Small 
Business Hurricane Relief and Reconstruction Act of 2006 S. 1807. This 
proposal was opposed by the administration. In June, I introduced the 
Small Business Disaster Loan Reauthorization and Improvements Act of 
2006, S. 3487 which once again attempted to comprehensively address the 
shortcomings of the SBA's Disaster Assistance program. Again, the 
administration opposed this effort. In August, the Small Business 
Committee unanimously reported S. 3778, the Small Business 
Reauthorization and Improvements Act of 2006, which again put forward a 
bipartisan, comprehensive fix for this program. Finally, in December, 
just prior to the adjournment of the 109th Congress, yet another 
attempt was made at reaching a bipartisan consensus with the 
introduction of S. 4097, the Small Business Disaster Response and Loan 
Improvements Act of 2006. The administration maintained its opposition 
to the fixes proposed in this bill.
  Now, on the first day of this new Congress, I am introducing the 
Small Business Disaster Response and Loan Improvements Act of 2007. 
Once again, this bill enjoys bipartisan support by the chair and the 
ranking minority member of the Small Business Committee, as well as by 
the Democratic and Republican Senators of Louisiana, whose constituents 
continue to wait for their Government to respond appropriately. I am 
introducing this bill on the first day of the 110th Congress because as 
the incoming chair of the Small Business Committee, improving the 
Disaster Assistance program at the SBA is among my top priorities.
  This bill includes directives for the SBA to create a private 
disaster loan program, to allow for lenders to issue disaster loans. To 
ensure that these loans are borrower-friendly, we provide authorization 
for appropriations so that the agency can subsidize the interest rates. 
In addition, the administrator is authorized to enter into agreements 
with private contractors in order to expedite loan application 
processing for direct disaster loans.
  The bill also includes language directing SBA to create an expedited 
disaster assistance loan program to provide businesses with short-term 
loans so that they may keep their doors open until they receive 
alternative forms of assistance. The days immediately following a 
disaster are crucial for business owners--statistics show that once 
they close their doors, they likely will not open them again. These 
short-term loans should help prevent those doors from closing.
  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 the event of a large-scale disaster, businesses 
located far from the physical reach of the disaster can be affected by 
the magnitude of a localized destruction. We saw this when the 
terrorist attacks of September 11, 2001 affected businesses from coast 
to coast, and we saw it again with the 2005 Gulf Coast hurricanes. 
Should another catastrophic disaster strike, the President should have 
the authority to provide businesses across the country with access to 
the same low-interest economic injury loans available to businesses 
within the declared disaster area.
  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 non-profit entities, including religious organizations.
  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 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 
adiministration 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.

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  Finally, gas prices continue to fluctuate, 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 Administration and the United States Department of Agriculture 
to companies that are dependent on fuel.
  In the 16 months since Katrina struck, I have visited New Orleans 
three times. I have met with the lifeblood of that city--its small 
business owners--the shopowners on Bourbon Street and on Magazine 
Street who make that city unique. The people of New Orleans are 
resilient, and they remain hopeful; they are keeping their businesses 
open despite tourism that has been slow to return and despite a 
government response that was painfully slow to arrive. Sixteen months 
is too long a time to wait to reform and improve a program that could 
have breathed relief into this city's economy during a time of 
desperation. As this new Congress begins, I call on my colleagues to 
support this legislation, a bipartisan labor of more than a year's 
worth of negotiations. The tools offered within this bill will go a 
long way toward heading off another Katrina-like response to any future 
catastrophic disaster.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 163

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Disaster Response and Loan Improvements Act of 
     2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                    TITLE I--PRIVATE DISASTER LOANS

Sec. 101. Private disaster loans.
Sec. 102. Technical and conforming amendments.

              TITLE II--DISASTER RELIEF AND RECONSTRUCTION

Sec. 201. Definition of disaster area.
Sec. 202. Disaster loans to nonprofits.
Sec. 203. Disaster loan amounts.
Sec. 204. Small business development center portability grants.
Sec. 205. Assistance to out-of-State businesses.
Sec. 206. Outreach programs.
Sec. 207. Small business bonding threshold.
Sec. 208. Contracting priority for local small businesses.
Sec. 209. Termination of program.
Sec. 210. Increasing collateral requirements.

                      TITLE III--DISASTER RESPONSE

Sec. 301. Definitions.
Sec. 302. Business expedited disaster assistance loan program.
Sec. 303. Catastrophic national disasters.
Sec. 304. Public awareness of disaster declaration and application 
              periods.
Sec. 305. Consistency between Administration regulations and standard 
              operating procedures.
Sec. 306. Processing disaster loans.
Sec. 307. Development and implementation of major disaster response 
              plan.
Sec. 308. Congressional oversight.

                      TITLE IV--ENERGY EMERGENCIES

Sec. 401. Findings.
Sec. 402. Small business energy emergency disaster loan program.
Sec. 403. Agricultural producer emergency loans.
Sec. 404. Guidelines and rulemaking.
Sec. 405. Reports.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632); and
       (3) the term ``small business concern owned and controlled 
     by socially and economically disadvantaged individuals'' has 
     the same meaning as in section 8 of the Small Business Act 
     (15 U.S.C. 637).

                    TITLE I--PRIVATE DISASTER LOANS

     SEC. 101. PRIVATE DISASTER LOANS.

       (a) In General.--Section 7 of the Small Business Act (15 
     U.S.C. 636) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Private Disaster Loans.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `disaster area' means a county, parish, or 
     similar unit of general local government in which a disaster 
     was declared under subsection (b);
       ``(B) the term `eligible small business concern' means a 
     business concern that is--
       ``(i) a small business concern, as defined in this Act; or
       ``(ii) a small business concern, as defined in section 103 
     of the Small Business Investment Act of 1958; and
       ``(C) the term `qualified private lender' means any 
     privately-owned bank or other lending institution that the 
     Administrator determines meets the criteria established under 
     paragraph (9).
       ``(2) Authorization.--The Administrator may guarantee 
     timely payment of principal and interest, as scheduled on any 
     loan issued by a qualified private lender to an eligible 
     small business concern located in a disaster area.
       ``(3) Use of loans.--A loan guaranteed by the Administrator 
     under this subsection may be used for any purpose authorized 
     under subsection (a) or (b).
       ``(4) Online applications.--
       ``(A) Establishment.--The Administrator may establish, 
     directly or through an agreement with another entity, an 
     online application process for loans guaranteed under this 
     subsection.
       ``(B) Other federal assistance.--The Administrator may 
     coordinate with the head of any other appropriate Federal 
     agency so that any application submitted through an online 
     application process established under this paragraph may be 
     considered for any other Federal assistance program for 
     disaster relief.
       ``(C) Consultation.--In establishing an online application 
     process under this paragraph, the Administrator shall consult 
     with appropriate persons from the public and private sectors, 
     including private lenders.
       ``(5) Maximum amounts.--
       ``(A) Guarantee percentage.--The Administrator may 
     guarantee not more than 85 percent of a loan under this 
     subsection.
       ``(B) Loan amounts.--The maximum amount of a loan 
     guaranteed under this subsection shall be $3,000,000.
       ``(6) Loan term.--The longest term of a loan for a loan 
     guaranteed under this subsection shall be--
       ``(A) 15 years for any loan that is issued without 
     collateral; and
       ``(B) 25 years for any loan that is issued with collateral.
       ``(7) Fees.--
       ``(A) In general.--The Administrator may not collect a 
     guarantee fee under this subsection.
       ``(B) Origination fee.--The Administrator may pay a 
     qualified private lender an origination fee for a loan 
     guaranteed under this subsection in an amount agreed upon in 
     advance between the qualified private lender and the 
     Administrator.
       ``(8) Documentation.--A qualified private lender may use 
     its own loan documentation for a loan guaranteed by the 
     Administrator, to the extent authorized by the Administrator. 
     The ability of a lender to use its own loan documentation for 
     a loan offered under this subsection shall not be considered 
     part of the criteria for becoming a qualified private lender 
     under the regulations promulgated under paragraph (9).
       ``(9) Implementation regulations.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of the Small Business Disaster Response and Loan 
     Improvements Act of 2007, the Administrator shall issue final 
     regulations establishing permanent criteria for qualified 
     private lenders.
       ``(B) Report to congress.--Not later than 6 months after 
     the date of enactment of the Small Business Disaster Response 
     and Loan Improvements Act of 2007, the Administrator shall 
     submit a report on the progress of the regulations required 
     by subparagraph (A) to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives.
       ``(10) Authorization of appropriations.--
       ``(A) In general.--Amounts necessary to carry out this 
     subsection shall be made available from amounts appropriated 
     to the Administration under subsection (b).
       ``(B) Authority to reduce interest rates.--Funds 
     appropriated to the Administration to carry out this 
     subsection, may be used by the Administrator, to the extent 
     available, to reduce the applicable rate of interest for a 
     loan guaranteed under this subsection by not more than 3 
     percentage points.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to disasters declared under section 7(b)(2) of 
     the Small Business Act (631 U.S.C. 636(b)(2)) before, on, or 
     after the date of enactment of this Act.

     SEC. 102. TECHNICAL AND CONFORMING AMENDMENTS.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 4(c)--
       (A) in paragraph (1), by striking ``7(c)(2)'' and inserting 
     ``7(d)(2)''; and
       (B) in paragraph (2)--
       (i) by striking ``7(c)(2)'' and inserting ``7(d)(2)''; and

[[Page 218]]

       (ii) by striking ``7(e),''; and
       (2) in section 7(b), in the undesignated matter following 
     paragraph (3)--
       (A) by striking ``That the provisions of paragraph (1) of 
     subsection (c)'' and inserting ``That the provisions of 
     paragraph (1) of subsection (d)''; and
       (B) by striking ``Notwithstanding the provisions of any 
     other law the interest rate on the Administration's share of 
     any loan made under subsection (b) except as provided in 
     subsection (c),'' and inserting ``Notwithstanding any other 
     provision of law, and except as provided in subsection (d), 
     the interest rate on the Administration's share of any loan 
     made under subsection (b)''.

              TITLE II--DISASTER RELIEF AND RECONSTRUCTION

     SEC. 201. DEFINITION OF DISASTER AREA.

       In this title, the term ``disaster area'' means an area 
     affected by a natural or other disaster, as determined for 
     purposes of paragraph (1) or (2) of section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)), during the period of such 
     declaration.

     SEC. 202. DISASTER LOANS TO NONPROFITS.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
     is amended by inserting immediately after paragraph (3) the 
     following:
       ``(4) Loans to nonprofits.--In addition to any other loan 
     authorized by this subsection, the Administrator may make 
     such loans (either directly or in cooperation with banks or 
     other lending institutions through agreements to participate 
     on an immediate or deferred basis) as the Administrator 
     determines appropriate to a nonprofit organization located or 
     operating in an area affected by a natural or other disaster, 
     as determined under paragraph (1) or (2), or providing 
     services to persons who have evacuated from any such area.''.

     SEC. 203. DISASTER LOAN AMOUNTS.

       (a) Increased Loan Caps.--Section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)) is amended by inserting 
     immediately after paragraph (4), as added by this title, the 
     following:
       ``(5) Increased loan caps.--
       ``(A) Aggregate loan amounts.--Except as provided in clause 
     (ii), and notwithstanding any other provision of law, the 
     aggregate loan amount outstanding and committed to a borrower 
     under this subsection may not exceed $5,000,000.
       ``(B) Waiver authority.--The Administrator may, at the 
     discretion of the Administrator, waive the aggregate loan 
     amount established under clause (i).''.
       (b) Disaster Mitigation.--
       (1) In general.--Section 7(b)(1)(A) of the Small Business 
     Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the 
     aggregate costs of such damage or destruction (whether or not 
     compensated for by insurance or otherwise)'' after ``20 per 
     centum''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to a loan or guarantee made after 
     the date of enactment of this Act.
       (c) Technical Amendments.--Section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``the, Administration'' and inserting ``the Administration'';
       (2) in paragraph (2)(A), by striking ``Disaster Relief and 
     Emergency Assistance Act'' and inserting ``Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
     et seq.)''; and
       (3) in the undesignated matter at the end--
       (A) by striking ``, (2), and (4)'' and inserting ``and 
     (2)''; and
       (B) by striking ``, (2), or (4)'' and inserting ``(2)''.

     SEC. 204. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY 
                   GRANTS.

       Section 21(a)(4)(C)(viii) of the Small Business Act (15 
     U.S.C. 648(a)(4)(C)(viii)) is amended--
       (1) in the first sentence, by striking ``as a result of a 
     business or government facility down sizing or closing, which 
     has resulted in the loss of jobs or small business 
     instability'' and inserting ``due to events that have 
     resulted or will result in, business or government facility 
     downsizing or closing''; and
       (2) by adding at the end ``At the discretion of the 
     Administrator, the Administrator may make an award greater 
     than $100,000 to a recipient to accommodate extraordinary 
     occurrences having a catastrophic impact on the small 
     business concerns in a community.''.

     SEC. 205. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

       Section 21(b)(3) of the Small Business Act (15 U.S.C. 
     648(b)(3)) is amended--
       (1) by striking ``At the discretion'' and inserting the 
     following: ``Small business development centers.--
       ``(A) In general.--At the discretion''; and
       (2) by adding at the end the following:
       ``(B) During disasters.--
       ``(i) In general.--At the discretion of the Administrator, 
     the Administrator may authorize a small business development 
     center to provide such assistance to small business concerns 
     located outside of the State, without regard to geographic 
     proximity, if the small business concerns are located in a 
     disaster area declared under section 7(b)(2)(A).
       ``(ii) Continuity of services.--A small business 
     development center that provides counselors to an area 
     described in clause (i) shall, to the maximum extent 
     practicable, ensure continuity of services in any State in 
     which such small business development center otherwise 
     provides services.
       ``(iii) Access to disaster recovery facilities.--For 
     purposes of providing disaster recovery assistance under this 
     subparagraph, the Administrator shall, to the maximum extent 
     practicable, permit small business development center 
     personnel to use any site or facility designated by the 
     Administrator for use to provide disaster recovery 
     assistance.''.

     SEC. 206. OUTREACH PROGRAMS.

       (a) In General.--Not later than 30 days after the date of 
     the declaration of a disaster area, the Administrator may 
     establish a contracting outreach and technical assistance 
     program for small business concerns which have had a primary 
     place of business in, or other significant presence in, such 
     disaster area.
       (b) Administrator Action.--The Administrator may fulfill 
     the requirement of subsection (a) by acting through--
       (1) the Administration;
       (2) the Federal agency small business officials designated 
     under section 15(k)(1) of the Small Business Act (15 U.S.C. 
     644(k)(1)); or
       (3) any Federal, State, or local government entity, higher 
     education institution, procurement technical assistance 
     center, or private nonprofit organization that the 
     Administrator may determine appropriate, upon conclusion of a 
     memorandum of understanding or assistance agreement, as 
     appropriate, with the Administrator.

     SEC. 207. SMALL BUSINESS BONDING THRESHOLD.

       (a) In General.--Except as provided in subsection (b), and 
     notwithstanding any other provision of law, for any 
     procurement related to a major disaster (as that term is 
     defined in section 102 of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5122)), the 
     Administrator may, upon such terms and conditions as the 
     Administrator may prescribe, guarantee and enter into 
     commitments to guarantee any surety against loss resulting 
     from a breach of the terms of a bid bond, payment bond, 
     performance bond, or bonds ancillary thereto, by a principal 
     on any total work order or contract amount at the time of 
     bond execution that does not exceed $5,000,000.
       (b) Increase of Amount.--Upon request of the head of any 
     Federal agency other than the Administration involved in 
     reconstruction efforts in response to a major disaster, the 
     Administrator may guarantee and enter into a commitment to 
     guarantee any security against loss under subsection (a) on 
     any total work order or contract amount at the time of bond 
     execution that does not exceed $10,000,000.

     SEC. 208. CONTRACTING PRIORITY FOR LOCAL SMALL BUSINESSES.

       Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) 
     is amended--
       (1) by striking ``(d) For purposes'' and inserting the 
     following:
       ``(d) Contracting Priorities.--
       ``(1) In general.--For purposes''; and
       (2) by adding at the end the following:
       ``(2) Disaster contracting priority in general.--The 
     Administrator shall designate any disaster area as an area of 
     concentrated unemployment or underemployment, or a labor 
     surplus area for purposes of paragraph (1).
       ``(3) Local small businesses.--
       ``(A) In general.--The head of each executive agency shall 
     give priority in the awarding of contracts and the placement 
     of subcontracts for disaster relief to local small business 
     concerns by using, as appropriate--
       ``(i) preferential factors in evaluations of contract bids 
     and proposals;
       ``(ii) competitions restricted to local small business 
     concerns, where there is a reasonable expectation of 
     receiving competitive, reasonably priced bids or proposals 
     from not fewer than 2 local small business concerns;
       ``(iii) requirements of preference for local small business 
     concerns in subcontracting plans; and
       ``(iv) assessments of liquidated damages and other 
     contractual penalties, including contract termination.
       ``(B) Other disaster assistance.--Priority shall be given 
     to local small business concerns in the awarding of contracts 
     and the placement of subcontracts for disaster relief in any 
     Federal procurement and any procurement by a State or local 
     government made with Federal disaster assistance funds.
       ``(4) Definitions.--In this subsection--
       ``(A) the term `declared disaster' means a disaster, as 
     designated by the Administrator;
       ``(B) the term `disaster area' means any State or area 
     affected by a declared disaster, as determined by the 
     Administrator;
       ``(C) the term `executive agency' has the same meaning as 
     in section 105 of title 5, United States Code; and
       ``(D) the term `local small business concern' means a small 
     business concern that--
       ``(i) on the date immediately preceding the date on which a 
     declared disaster occurred--

       ``(I) had a principal office in the disaster area for such 
     declared disaster; and
       ``(II) employed a majority of the workforce of such small 
     business concern in the disaster area for such declared 
     disaster; and

       ``(ii) is capable of performing a substantial proportion of 
     any contract or subcontract

[[Page 219]]

     for disaster relief within the disaster area for such 
     declared disaster, as determined by the Administrator.''.

     SEC. 209. TERMINATION OF PROGRAM.

       Section 711(c) of the Small Business Competitive 
     Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
     amended by inserting after ``January 1, 1989'' the following: 
     ``, and shall terminate on the date of enactment of the Small 
     Business Disaster Response and Loan Improvements Act of 
     2007''.

     SEC. 210. INCREASING COLLATERAL REQUIREMENTS.

       Section 7(d)(6) of the Small Business Act (15 U.S.C. 636), 
     as so designated by section 101, is amended by striking 
     ``$10,000 or less'' and inserting ``$14,000 or less (or such 
     higher amount as the Administrator determines appropriate in 
     the event of a catastrophic national disaster declared under 
     subsection (b)(6))''.

                      TITLE III--DISASTER RESPONSE

     SEC. 301. DEFINITIONS.

       In this title--
       (1) the term ``catastrophic national disaster'' has the 
     meaning given the term in section 7(b)(6) of the Small 
     Business Act (15 U.S.C. 636(b)), as added by this Act;
       (2) the term ``declared disaster'' means a major disaster 
     or a catastrophic national disaster;
       (3) the term ``disaster loan program of the 
     Administration'' means assistance under section 7(b) of the 
     Small Business Act (15 U.S.C. 636(b));
       (4) the term ``disaster update period'' means the period 
     beginning on the date on which the President declares a major 
     disaster or a catastrophic national disaster and ending on 
     the date on which such declaration terminates;
       (5) the term ``major disaster'' has the meaning given the 
     term in section 102 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5122); and
       (6) the term ``State'' means any State of the United 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Northern Mariana Islands, the Virgin Islands, Guam, 
     American Samoa, and any territory or possession of the United 
     States.

     SEC. 302. BUSINESS EXPEDITED DISASTER ASSISTANCE LOAN 
                   PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``immediate disaster assistance'' means 
     assistance provided during the period beginning on the date 
     on which a disaster declaration is made and ending on the 
     date that an impacted small business concern is able to 
     secure funding through insurance claims, Federal assistance 
     programs, or other sources; and
       (2) the term ``program'' means the expedited disaster 
     assistance business loan program established under subsection 
     (b); and
       (b) Creation of Program.--The Administrator shall take such 
     administrative action as is necessary to establish and 
     implement an expedited disaster assistance business loan 
     program to provide small business concerns with immediate 
     disaster assistance under section 7(b) of the Small Business 
     Act (15 U.S.C. 636(b)).
       (c) Consultation Required.--In establishing the program, 
     the Administrator shall consult with--
       (1) appropriate personnel of the Administration (including 
     District Office personnel of the Administration);
       (2) appropriate technical assistance providers (including 
     small business development centers);
       (3) appropriate lenders and credit unions;
       (4) the Committee on Small Business and Entrepreneurship of 
     the Senate; and
       (5) the Committee on Small Business of the House of 
     Representatives.
       (d) Rules.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     rules establishing and implementing the program in accordance 
     with this section. Such rules shall apply as provided for in 
     this section, beginning 90 days after their issuance in final 
     form.
       (2) Contents.--The rules promulgated under paragraph (1) 
     shall--
       (A) identify whether appropriate uses of funds under the 
     program may include--
       (i) paying employees;
       (ii) paying bills and other financial obligations;
       (iii) making repairs;
       (iv) purchasing inventory;
       (v) restarting or operating a small business concern in the 
     community in which it was conducting operations prior to the 
     declared disaster, or to a neighboring area, county, or 
     parish in the disaster area; or
       (vi) covering additional costs until the small business 
     concern is able to obtain funding through insurance claims, 
     Federal assistance programs, or other sources; and
       (B) set the terms and conditions of any loan made under the 
     program, subject to paragraph (3).
       (3) Terms and conditions.--A loan made by the 
     Administration under this section--
       (A) shall be a short-term loan, not to exceed 180 days, 
     except that the Administrator may extend such term as the 
     Administrator determines necessary or appropriate on a case-
     by-case basis;
       (B) shall have an interest rate not to exceed 1 percentage 
     point above the prime rate of interest that a private lender 
     may charge;
       (C) shall have no prepayment penalty;
       (D) may be refinanced as part of any subsequent disaster 
     assistance provided under section 7(b) of the Small Business 
     Act; and
       (E) shall be subject to such additional terms as the 
     Administrator determines necessary or appropriate.
       (e) Report to Congress.--Not later than 5 months after the 
     date of enactment of this Act, the Administrator shall report 
     to the Committee on Small Business and Entrepreneurship of 
     the Senate and the Committee on Small Business of the House 
     of Representatives on the progress of the Administrator in 
     establishing the program.
       (f) Authorization.--There are authorized to be appropriated 
     to the Administrator such sums as are necessary to carry out 
     this section.

     SEC. 303. CATASTROPHIC NATIONAL DISASTERS.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
     is amended by inserting immediately after paragraph (5), as 
     added by this Act, the following:
       ``(6) Catastrophic national disasters.--
       ``(A) Definition.--In this paragraph the term `catastrophic 
     national disaster' means a disaster, natural or other, that 
     the President determines has caused significant adverse 
     economic conditions outside of the geographic reach of the 
     disaster.
       ``(B) Authorization.--The Administrator may make such loans 
     under this paragraph (either directly or in cooperation with 
     banks or other lending institutions through agreements to 
     participate on an immediate or deferred basis) as the 
     Administrator determines appropriate to small business 
     concerns located anywhere in the United States that are 
     economically adversely impacted as a result of a catastrophic 
     national disaster.
       ``(C) Loan terms.--A loan under this paragraph shall be 
     made on the same terms as a loan under paragraph (2).''.

     SEC. 304. PUBLIC AWARENESS OF DISASTER DECLARATION AND 
                   APPLICATION PERIODS.

       (a) In General.--Section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)) is amended by inserting immediately after 
     paragraph (6), as added by this Act, the following:
       ``(7) Coordination with fema.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, for any disaster (including a catastrophic national 
     disaster) declared under this subsection or major disaster 
     (as that term is defined in section 102 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122)), the Administrator, in consultation with the 
     Director of the Federal Emergency Management Agency, shall 
     ensure, to the maximum extent practicable, that all 
     application periods for disaster relief under this Act and 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.) begin on the same 
     date and end on the same date.
       ``(B) Deadline extensions.--Notwithstanding any other 
     provision of law--
       ``(i) not later than 10 days before the closing date of an 
     application period for disaster relief under this Act for any 
     disaster (including a catastrophic national disaster) 
     declared under this subsection, the Administrator, in 
     consultation with the Director of the Federal Emergency 
     Management Agency, shall notify the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives as to 
     whether the Administrator intends to extend such application 
     period; and
       ``(ii) not later than 10 days before the closing date of an 
     application period for disaster relief under the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act for any 
     major disaster (as that term is defined in section 102 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5122)) for which the President has declared a 
     catastrophic national disaster under paragraph (6), the 
     Director of the Federal Emergency Management Agency, in 
     consultation with the Administrator, shall notify the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives as to whether the Director intends to extend 
     such application period.
       ``(8) Public awareness of disasters.--If a disaster 
     (including a catastrophic national disaster) is declared 
     under this subsection, the Administrator shall make every 
     effort to communicate through radio, television, print, and 
     web-based outlets, all relevant information needed by 
     disaster loan applicants, including--
       ``(A) the date of such declaration;
       ``(B) cities and towns within the area of such declaration;
       ``(C) loan application deadlines related to such disaster;
       ``(D) all relevant contact information for victim services 
     available through the Administration (including links to 
     small business development center websites);
       ``(E) links to relevant Federal and State disaster 
     assistance websites;
       ``(F) information on eligibility criteria for Federal 
     Emergency Management Agency disaster assistance applications, 
     as well as for Administration loan programs, including where 
     such applications can be found; and
       ``(G) application materials that clearly state the function 
     of the Administration as

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     the Federal source of disaster loans for homeowners and 
     renters.''.
       (b) Coordination of Agencies and Outreach.--Not later than 
     90 days after the date of enactment of this Act, the 
     Administrator and the Director of the Federal Emergency 
     Management Agency shall enter into a memorandum of 
     understanding that ensures, to the maximum extent 
     practicable, adequate lodging and transportation for 
     employees of the Administration, contract employees, and 
     volunteers during a major disaster, if such staff are needed 
     to assist businesses, homeowners, or renters in recovery.
       (c) Marketing and Outreach.--Not later than 90 days after 
     the date of enactment of this Act, the Administrator shall 
     create a marketing and outreach plan that--
       (1) encourages a proactive approach to the disaster relief 
     efforts of the Administration;
       (2) distinguishes between disaster services provided by the 
     Administration and disaster services provided by the Federal 
     Emergency Management Agency, including contact information, 
     application information, and timelines for submitting 
     applications, the review of applications, and the 
     disbursement of funds;
       (3) describes the different disaster loan programs of the 
     Administration, including how they are made available and 
     what eligibility requirements exist for each loan program;
       (4) provides for regional marketing, focusing on disasters 
     occurring in each region before the date of enactment of this 
     Act, and likely scenarios for disasters in each such region; 
     and
       (5) ensures that the marketing plan is made available at 
     small business development centers and on the website of the 
     Administration.

     SEC. 305. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND 
                   STANDARD OPERATING PROCEDURES.

       (a) In General.--The Administrator shall, promptly 
     following the date of enactment of this Act, conduct a study 
     of whether the standard operating procedures of the 
     Administration for loans offered under section 7(b) of the 
     Small Business Act (15 U.S.C. 636(b)) are consistent with the 
     regulations of the Administration for administering the 
     disaster loan program.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Administration shall submit to 
     Congress a report containing all findings and recommendations 
     of the study conducted under subsection (a).

     SEC. 306. PROCESSING DISASTER LOANS.

       (a) Authority for Qualified Private Contractors to Process 
     Disaster Loans.--Section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)) is amended by inserting immediately after 
     paragraph (8), as added by this Act, the following:
       ``(9) Authority for qualified private contractors.--
       ``(A) Disaster loan processing.--The Administrator may 
     enter into an agreement with a qualified private contractor, 
     as determined by the Administrator, to process loans under 
     this subsection in the event of a major disaster (as defined 
     in section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122)) or a catastrophic 
     national disaster declared under paragraph (6), under which 
     the Administrator shall pay the contractor a fee for each 
     loan processed.
       ``(B) Loan loss verification services.--The Administrator 
     may enter into an agreement with a qualified lender or loss 
     verification professional, as determined by the 
     Administrator, to verify losses for loans under this 
     subsection in the event of a major disaster (as defined in 
     section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122)) or a catastrophic 
     national disaster declared under paragraph (6), under which 
     the Administrator shall pay the lender or verification 
     professional a fee for each loan for which such lender or 
     verification professional verifies losses.''.
       (b) Coordination of Efforts Between the Administrator and 
     the Internal Revenue Service To Expedite Loan Processing.--
     The Administrator and the Commissioner of Internal Revenue 
     shall, to the maximum extent practicable, ensure that all 
     relevant and allowable tax records for loan approval are 
     shared with loan processors in an expedited manner, upon 
     request by the Administrator.
       (c) Report on Loan Approval Rate.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives detailing how the 
     Administration can improve the processing of applications 
     under the disaster loan program of the Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall include--
       (A) recommendations, if any, regarding--
       (i) staffing levels during a major disaster;
       (ii) how to improve the process for processing, approving, 
     and disbursing loans under the disaster loan program of the 
     Administration, to ensure that the maximum assistance is 
     provided to victims in a timely manner;
       (iii) the viability of using alternative methods for 
     assessing the ability of an applicant to repay a loan, 
     including the credit score of the applicant on the day before 
     the date on which the disaster for which the applicant is 
     seeking assistance was declared;
       (iv) methods, if any, for the Administration to expedite 
     loss verification and loan processing of disaster loans 
     during a major disaster for businesses affected by, and 
     located in the area for which the President declared, the 
     major disaster that are a major source of employment in the 
     area or are vital to recovery efforts in the region 
     (including providing debris removal services, manufactured 
     housing, or building materials);
       (v) legislative changes, if any, needed to implement 
     findings from the Administration's Accelerated Disaster 
     Response Initiative; and
       (vi) a description of how the Administration plans to 
     integrate and coordinate the response to a major disaster 
     with the technical assistance programs of the Administration; 
     and
       (B) the plans of the Administrator for implementing any 
     recommendation made under subparagraph (A).

     SEC. 307. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER 
                   RESPONSE PLAN.

       (a) In General.--Not later than March 15, 2007, the 
     Administrator shall--
       (1) by rule, amend the 2006 Atlantic hurricane season 
     disaster response plan of the Administration (in this section 
     referred to as the ``disaster response plan'') to apply to 
     major disasters and catastrophic national disasters, 
     consistent with this Act and the amendments made by this Act; 
     and
       (2) submit a report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives detailing the 
     amendments to the disaster response plan.
       (b) Contents.--The amended report required under subsection 
     (a)(2) shall include--
       (1) any updates or modifications made to the disaster 
     response plan since the report regarding the disaster 
     response plan submitted on July 14, 2006;
       (2) a description of how the Administrator plans to utilize 
     and integrate District Office personnel of the Administration 
     in the response to a major disaster, including information on 
     the utilization of personnel for loan processing and loan 
     disbursement;
       (3) a description of the disaster scalability model of the 
     Administration and on what basis or function the plan is 
     scaled;
       (4) a description of how the agency-wide Disaster Oversight 
     Council is structured, which offices comprise its membership, 
     and whether the Associate Deputy Administrator for 
     Entrepreneurial Development of the Administration is a 
     member;
       (5) a description of how the Administrator plans to 
     coordinate the disaster efforts of the Administration with 
     State and local government officials, including 
     recommendations on how to better incorporate State 
     initiatives or programs, such as State-administered bridge 
     loan programs, into the disaster response of the 
     Administration;
       (6) recommendations, if any, on how the Administrator can 
     better coordinate its disaster response operations with the 
     operations of other Federal, State, and local entities;
       (7) any surge plan for the system in effect on or after 
     August 29, 2005 (including surge plans for loss verification, 
     loan processing, mailroom, customer service or call center 
     operations, and a continuity of operations plan);
       (8) the number of full-time equivalent employees and job 
     descriptions for the planning and disaster response staff of 
     the Administration;
       (9) the in-service and preservice training procedures for 
     disaster response staff of the Administration;
       (10) information on the logistical support plans of the 
     Administration (including equipment and staffing needs, and 
     detailed information on how such plans will be scalable 
     depending on the size and scope of the major disaster;
       (11) a description of the findings and recommendations of 
     the Administrator, if any, based on a review of the response 
     of the Administration to Hurricane Katrina of 2005, Hurricane 
     Rita of 2005, and Hurricane Wilma of 2005; and
       (12) a plan for how the Administrator, in cooperation with 
     the Director of the Federal Emergency Management Agency, will 
     coordinate the provision of accommodations and necessary 
     resources for disaster assistance personnel to effectively 
     perform their responsibilities in the aftermath of a major 
     disaster.
       (c) Exercises.--Not later than May 31, 2007, the 
     Administrator shall develop and execute simulation exercises 
     to demonstrate the effectiveness of the amended disaster 
     response plan required under this section.

     SEC. 308. CONGRESSIONAL OVERSIGHT.

       (a) Monthly Accounting Report to Congress.--
       (1) Definition.--In this subsection the term ``applicable 
     period'' means the period beginning on the date on which the 
     President declares a major disaster and ending on the date 
     that is 30 days after the later of the

[[Page 221]]

     closing date for applications for physical disaster loans for 
     such disaster and the closing date for applications for 
     economic injury disaster loans for such disaster.
       (2) Reporting requirements.--Not later than the fifth 
     business day of each month during the applicable period for a 
     major disaster, the Administrator shall provide to the 
     Committee on Small Business and Entrepreneurship and the 
     Committee on Appropriations of the Senate and to the 
     Committee on Small Business and the Committee on 
     Appropriations of the House of Representatives a report on 
     the operation of the disaster loan program authorized under 
     section 7 of the Small Business Act (15 U.S.C. 636) for such 
     disaster during the preceding month.
       (3) Contents.--Each report under paragraph (2) shall 
     include--
       (A) the daily average lending volume, in number of loans 
     and dollars, and the percent by which each category has 
     increased or decreased since the previous report under 
     paragraph (2);
       (B) the weekly average lending volume, in number of loans 
     and dollars, and the percent by which each category has 
     increased or decreased since the previous report under 
     paragraph (2);
       (C) the amount of funding spent over the month for loans, 
     both in appropriations and program level, and the percent by 
     which each category has increased or decreased since the 
     previous report under paragraph (2);
       (D) the amount of funding available for loans, both in 
     appropriations and program level, and the percent by which 
     each category has increased or decreased, noting the source 
     of any additional funding;
       (E) an estimate of how long the available funding for such 
     loans will last, based on the spending rate;
       (F) the amount of funding spent over the month for staff, 
     along with the number of staff, and the percent by which each 
     category has increased or decreased since the previous report 
     under paragraph (2);
       (G) the amount of funding spent over the month for 
     administrative costs, and the percent by which such spending 
     has increased or decreased since the previous report under 
     paragraph (2);
       (H) the amount of funding available for salaries and 
     expenses combined, and the percent by which such funding has 
     increased or decreased, noting the source of any additional 
     funding; and
       (I) an estimate of how long the available funding for 
     salaries and expenses will last, based on the spending rate.
       (b) Daily Disaster Updates to Congress for Presidentially 
     Declared Disasters.--
       (1) In general.--Each day during a disaster update period, 
     excluding Federal holidays and weekends, the Administration 
     shall provide to the Committee on Small Business and 
     Entrepreneurship of the Senate and to the Committee on Small 
     Business of the House of Representatives a report on the 
     operation of the disaster loan program of the Administration 
     for the area in which the President declared a major disaster 
     or a catastrophic national disaster, as the case may be.
       (2) Contents.--Each report under paragraph (1) shall 
     include--
       (A) the number of Administration staff performing loan 
     processing, field inspection, and other duties for the 
     declared disaster, and the allocations of such staff in the 
     disaster field offices, disaster recovery centers, workshops, 
     and other Administration offices nationwide;
       (B) the daily number of applications received from 
     applicants in the relevant area, as well as a breakdown of 
     such figures by State;
       (C) the daily number of applications pending application 
     entry from applicants in the relevant area, as well as a 
     breakdown of such figures by State;
       (D) the daily number of applications withdrawn by 
     applicants in the relevant area, as well as a breakdown of 
     such figures by State;
       (E) the daily number of applications summarily declined by 
     the Administration from applicants in the relevant area, as 
     well as a breakdown of such figures by State;
       (F) the daily number of applications declined by the 
     Administration from applicants in the relevant area, as well 
     as a breakdown of such figures by State;
       (G) the daily number of applications in process from 
     applicants in the relevant area, as well as a breakdown of 
     such figures by State;
       (H) the daily number of applications approved by the 
     Administration from applicants in the relevant area, as well 
     as a breakdown of such figures by State;
       (I) the daily dollar amount of applications approved by the 
     Administration from applicants in the relevant area, as well 
     as a breakdown of such figures by State;
       (J) the daily amount of loans dispersed, both partially and 
     fully, by the Administration to applicants in the relevant 
     area, as well as a breakdown of such figures by State;
       (K) the daily dollar amount of loans dispersed, both 
     partially and fully, from the relevant area, as well as a 
     breakdown of such figures by State;
       (L) the number of applications approved, including dollar 
     amount approved, as well as applications partially and fully 
     dispersed, including dollar amounts, since the last report 
     under paragraph (1); and
       (M) the declaration date, physical damage closing date, 
     economic injury closing date, and number of counties included 
     in the declaration of a major disaster.
       (c) Notice of the Need for Supplemental Funds.--On the same 
     date that the Administrator notifies any committee of the 
     Senate or the House of Representatives that supplemental 
     funding is necessary for the disaster loan program of the 
     Administration in any fiscal year, the Administrator shall 
     notify in writing the Committee on Small Business and 
     Entrepreneurship of the Senate and to the Committee on Small 
     Business of the House of Representatives regarding the need 
     for supplemental funds for such loan program.
       (d) Report on Contracting.--
       (1) In general.--Not later than 6 months after the date on 
     which the President declares a declared disaster, and every 6 
     months thereafter until the date that is 18 months after the 
     date on which the declared disaster was declared, the 
     Administrator shall submit a report to the Committee on Small 
     Business and Entrepreneurship of the Senate and to the 
     Committee on Small Business of the House of Representatives 
     regarding Federal contracts awarded as a result of the 
     declared disaster.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) the total number of contracts awarded as a result of 
     the declared disaster;
       (B) the total number of contracts awarded to small business 
     concerns as a result of the declared disaster;
       (C) the total number of contracts awarded to women and 
     minority-owned businesses as a result of the declared 
     disaster; and
       (D) the total number of contracts awarded to local 
     businesses as a result of the declared disaster.

                      TITLE IV--ENERGY EMERGENCIES

     SEC. 401. FINDINGS.

       Congress finds that--
       (1) a significant number of small business concerns in the 
     United States, nonfarm as well as agricultural producers, use 
     heating oil, natural gas, propane, or kerosene to heat their 
     facilities and for other purposes;
       (2) a significant number of small business concerns in the 
     United States sell, distribute, market, or otherwise engage 
     in commerce directly related to heating oil, natural gas, 
     propane, and kerosene; and
       (3) significant increases in the price of heating oil, 
     natural gas, propane, or kerosene--
       (A) disproportionately harm small business concerns 
     dependent on those fuels or that use, sell, or distribute 
     those fuels in the ordinary course of their business, and can 
     cause them substantial economic injury;
       (B) can negatively affect the national economy and regional 
     economies;
       (C) have occurred in the winters of 1983 to 1984, 1988 to 
     1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, and 2004 to 
     2005; and
       (D) can be caused by a host of factors, including 
     international conflicts, global or regional supply 
     difficulties, weather conditions, insufficient inventories, 
     refinery capacity, transportation, and competitive structures 
     in the markets, causes that are often unforeseeable to, and 
     beyond the control of, those who own and operate small 
     business concerns.

     SEC. 402. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN 
                   PROGRAM.

       (a) In General.--Section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)) is amended by inserting after paragraph (9), 
     as added by this Act, the following:
       ``(10) Energy emergencies.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `base price index' means the moving average 
     of the closing unit price on the New York Mercantile Exchange 
     for heating oil, natural gas, or propane for the 10 days, in 
     each of the most recent 2 preceding years, which correspond 
     to the trading days described in clause (ii);
       ``(ii) the term `current price index' means the moving 
     average of the closing unit price on the New York Mercantile 
     Exchange, for the 10 most recent trading days, for contracts 
     to purchase heating oil, natural gas, or propane during the 
     subsequent calendar month, commonly known as the `front 
     month';
       ``(iii) the term `heating fuel' means heating oil, natural 
     gas, propane, or kerosene; and
       ``(iv) the term `significant increase' means--

       ``(I) with respect to the price of heating oil, natural 
     gas, or propane, any time the current price index exceeds the 
     base price index by not less than 40 percent; and
       ``(II) with respect to the price of kerosene, any increase 
     which the Administrator, in consultation with the Secretary 
     of Energy, determines to be significant.

       ``(B) Authorization.--The Administration may make such 
     loans, either directly or in cooperation with banks or other 
     lending institutions through agreements to participate on an 
     immediate or deferred basis, to assist a small business 
     concern that has suffered or that is likely to suffer 
     substantial economic injury as the result of a significant 
     increase in the price of heating fuel occurring on or after 
     October 1, 2004.

[[Page 222]]

       ``(C) Interest rate.--Any loan or guarantee extended under 
     this paragraph shall be made at the same interest rate as 
     economic injury loans under paragraph (2).
       ``(D) Maximum amount.--No loan may be made under this 
     paragraph, either directly or in cooperation with banks or 
     other lending institutions through agreements to participate 
     on an immediate or deferred basis, if the total amount 
     outstanding and committed to the borrower under this 
     subsection would exceed $1,500,000, unless such borrower 
     constitutes a major source of employment in its surrounding 
     area, as determined by the Administrator, in which case the 
     Administrator, in the discretion of the Administrator, may 
     waive the $1,500,000 limitation.
       ``(E) Declarations.--For purposes of assistance under this 
     paragraph--
       ``(i) a declaration of a disaster area based on conditions 
     specified in this paragraph shall be required, and shall be 
     made by the President or the Administrator; or
       ``(ii) if no declaration has been made under clause (i), 
     the Governor of a State in which a significant increase in 
     the price of heating fuel has occurred may certify to the 
     Administration that small business concerns have suffered 
     economic injury as a result of such increase and are in need 
     of financial assistance which is not otherwise available on 
     reasonable terms in that State, and upon receipt of such 
     certification, the Administration may make such loans as 
     would have been available under this paragraph if a disaster 
     declaration had been issued.
       ``(F) Use of funds.--Notwithstanding any other provision of 
     law, loans made under this paragraph may be used by a small 
     business concern described in subparagraph (B) to convert 
     from the use of heating fuel to a renewable or alternative 
     energy source, including agriculture and urban waste, 
     geothermal energy, cogeneration, solar energy, wind energy, 
     or fuel cells.''.
       (b) Conforming Amendments Relating to Heating Fuel.--
     Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is 
     amended--
       (1) by inserting ``, significant increase in the price of 
     heating fuel'' after ``civil disorders''; and
       (2) by inserting ``other'' before ``economic''.
       (c) Effective Period.--The amendments made by this section 
     shall apply during the 4-year period beginning on the date on 
     which guidelines are published by the Administrator under 
     section 404.

     SEC. 403. AGRICULTURAL PRODUCER EMERGENCY LOANS.

       (a) In General.--Section 321(a) of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961(a)) is amended--
       (1) in the first sentence--
       (A) by striking ``operations have'' and inserting 
     ``operations (i) have''; and
       (B) by inserting before ``: Provided,'' the following: ``, 
     or (ii)(I) are owned or operated by such an applicant that is 
     also a small business concern (as defined in section 3 of the 
     Small Business Act (15 U.S.C. 632)), and (II) have suffered 
     or are likely to suffer substantial economic injury on or 
     after October 1, 2004, as the result of a significant 
     increase in energy costs or input costs from energy sources 
     occurring on or after October 1, 2004, in connection with an 
     energy emergency declared by the President or the 
     Secretary'';
       (2) in the third sentence, by inserting before the period 
     at the end the following: ``or by an energy emergency 
     declared by the President or the Secretary''; and
       (3) in the fourth sentence--
       (A) by inserting ``or energy emergency'' after ``natural 
     disaster'' each place that term appears; and
       (B) by inserting ``or declaration'' after ``emergency 
     designation''.
       (b) Funding.--Funds available on the date of enactment of 
     this Act for emergency loans under subtitle C of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
     seq.) shall be available to carry out the amendments made by 
     subsection (a) to meet the needs resulting from energy 
     emergencies.
       (c) Effective Period.--The amendments made by this section 
     shall apply during the 4-year period beginning on the date on 
     which guidelines are published by the Secretary of 
     Agriculture under section 404.

     SEC. 404. GUIDELINES AND RULEMAKING.

       (a) Guidelines.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator and the Secretary of 
     Agriculture shall each issue such guidelines as the 
     Administrator or the Secretary, as applicable, determines to 
     be necessary to carry out this title and the amendments made 
     by this title.
       (b) Rulemaking.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator, after consultation 
     with the Secretary of Energy, shall promulgate regulations 
     specifying the method for determining a significant increase 
     in the price of kerosene under section 7(b)(10)(A)(iv)(II) of 
     the Small Business Act, as added by this Act.

     SEC. 405. REPORTS.

       (a) Small Business Administration.--Not later than 12 
     months after the date on which the Administrator issues 
     guidelines under section 404, and annually thereafter until 
     the date that is 12 months after the end of the effective 
     period of section 7(b)(10) of the Small Business Act, as 
     added by this Act, the Administrator shall submit to the 
     Committee on Small Business and Entrepreneurship of the 
     Senate and the Committee on Small Business of the House of 
     Representatives, a report on the effectiveness of the 
     assistance made available under section 7(b)(10) of the Small 
     Business Act, as added by this Act, including--
       (1) the number of small business concerns that applied for 
     a loan under such section and the number of those that 
     received such loans;
       (2) the dollar value of those loans;
       (3) the States in which the small business concerns that 
     received such loans are located;
       (4) the type of heating fuel or energy that caused the 
     significant increase in the cost for the participating small 
     business concerns; and
       (5) recommendations for ways to improve the assistance 
     provided under such section 7(b)(10), if any.
       (b) Department of Agriculture.--Not later than 12 months 
     after the date on which the Secretary of Agriculture issues 
     guidelines under section 404, and annually thereafter until 
     the date that is 12 months after the end of the effective 
     period of the amendments made to section 321(a) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a)) by this title, the Secretary shall submit to the 
     Committee on Small Business and Entrepreneurship and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Small Business and the Committee 
     on Agriculture of the House of Representatives, a report 
     that--
       (1) describes the effectiveness of the assistance made 
     available under section 321(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1961(a)); and
       (2) contains recommendations for ways to improve the 
     assistance provided under such section 321(a), if any.

  Ms. LANDRIEU. Mr. President, as we all know, there was a tremendous 
amount of criticism of the Federal Government's response to Hurricanes 
Katrina and Rita last year. Things are better now and the region is 
slowly recovering. But, having just finished the 2006 hurricane season, 
and with the 2007 season a few months away, we must be sure that if we 
have another disaster, the Federal Government's response will be better 
this time around. Disaster response agencies have to be better 
organized, more efficient, and more responsive in order to avoid the 
problems, the delays, mismanagement, and the seeming incompetence that 
occurred in 2005.
  Today, I am proud to be an original cosponsor of legislation to 
improve the disaster response of one agency that had a great deal of 
problems last year, the Small Business Administration, SBA. This bill, 
the ``Small Business Disaster Response and Loan Improvements Act'' 
makes major improvements to the SBA's disaster response and provides 
them with essential tools to ensure that they are more efficient and 
better prepared for future disasters--big and small. I should also note 
that this bill is a result of intensive bipartisan work over the past 
couple of months and was introduced shortly before the 109th Congress 
adjourned as S. 4097. Unfortunately, there was no action on that bill 
so it must be reintroduced in the new Congress. I strongly believe 
though we can secure passage during this Congress as the bill is 
reflective of the priorities from Senators Kerry and Snowe, 
respectively, Chair and Ranking Member of the Senate Small Business 
Committee, as well as Senators Landrieu and Vitter. For my part, I have 
heard loud and clear from our impacted businesses that SBA reforms 
should be implemented as soon as possible. That is why in September, I 
sent a letter to the new SBA Administrator Steve Preston, expressing 
concerns on the lack of progress on SBA disaster reforms, which were 
included in S. 3778, the FY07 SBA Reauthorization bill reported out of 
the Senate Small Business Committee. In this letter, I requested his 
cooperation, along with our committee to pass this important 
legislation before Congress adjourns at the end of the year. The 
introduction of this bill today, shows the progress that the committee 
made since September on this issue. I hope that this spirit of 
bipartisanship continues into the 110th Congress and that I can 
continue to work with my colleagues on the Senate Small Business 
Committee to reform SBA.

  This legislation offers new tools to enhance SBA's disaster 
assistance programs. In every disaster, the SBA Disaster Loan program 
is a lifeline for

[[Page 223]]

businesses and homeowners who want to rebuild their lives after a 
catastrophe. When Hurricane Katrina hit, our businesses and homeowners 
had to wait months for loan approvals. I do not know how many 
businesses we lost because help did not come in time. Because of the 
scale of this disaster, what these businesses needed was immediate, 
short-term assistance to hold them over until SBA was ready to process 
the tens of thousands of loan applications it received.
  That is why this legislation provides the SBA Administrator with the 
ability to set up an expedited disaster assistance business loan 
program to make short-term, low-interest loans to keep them afloat. 
These loans will allow businesses to make payroll, begin making 
repairs, and address other immediate needs while they are awaiting 
insurance payouts or regular SBA disaster loans. However, I realize 
that every disaster is different and could range from a disaster on the 
scale of Hurricane Katrina or 9-11, to an ice storm or drought. This 
legislation gives the SBA additional options and flexibility in the 
kinds of relief they can offer a community. When a tornado destroys 20 
businesses in a small town in the Midwest, SBA can get the regular 
disaster program up and running fairly quickly. You may not need short-
term loans in this instance. But if you know that SBA's resources would 
be overwhelmed by a storm--just as they were initially with Hurricane 
Katrina--these expedited business loans would be very helpful.
  This legislation also would direct SBA to study ways to expedite 
disaster loans for those businesses in a disaster area that have a 
good, solid track record with the SBA or can provide vital recovery 
efforts. We had many businesses in the Gulf Coast that had paid off 
previous SBA loans, were major sources of employment in their 
communities, but had to wait months for decisions on their SBA disaster 
loan applications. I do not want to get rid of the SBA's current 
practice of reviewing applications on a first-come first-served basis, 
but there should be some mechanism in place for major disasters to get 
expedited loans out the door to specific businesses that has a positive 
record with SBA or those that could serve a vital role in the recovery 
efforts. Expedited loans would jump-start impacted economies, get vital 
capital out to businesses, and retain essential jobs following future 
disasters.
  This bill also makes an important modification to the collateral 
requirements for disaster loans. The SBA cannot disburse more than 
$10,000 for an approved loan without showing collateral. This is to 
limit the loss to the SBA in the event that a loan defaults. However, 
this disbursement amount has not been increased since 1998 and these 
days, $10,000 is not enough to get a business up and running. That is 
why this bill increases this collateral requirement to $14,000 and 
gives the Administrator the ability to increase that amount, in the 
event of another large-scale disaster. I believe this is a reasonable 
and fiscally responsible increase, and at the same time gives the 
Administrator flexibility for future disasters which will inevitably 
occur.
  As you may know, I pushed to get language in the last Hurricane 
Supplemental Appropriations bill in June 2006 to require SBA to develop 
a disaster plan and report to Congress on its contents by July 15, 
2006. SBA provided this status report in July and I am pleased that, 
since then, SBA has been working on a comprehensive disaster response 
plan. That said, I believe that with the 2007 Atlantic hurricane season 
fast approaching, and other disasters possible before then, the SBA 
should be looking at additional ways to improve upon this plan. This 
legislation requires SBA to report to Congress, by March 15, 2007 on 
the current status of its response plan and to provide us with a 
snapshot of where they were with Hurricane Katrina and where they are 
now. The report also requests SBA feedback on suggested improvements. 
These improvements include better incorporating State disaster 
assistance efforts into SBA's response, as well as better coordination 
with Federal response agencies like FEMA.
  The Small Business Disaster Response and Loan Improvements Act will 
provide essential tools to make the SBA more proactive, flexible, and 
most important, more efficient during future disasters. Again, I look 
forward to working with both Senator Snowe and Senator Kerry during 
this new session of Congress to ensure that the SBA has everything it 
needs to meet these goals.
  I ask unanimous consent that a copy of my September 27, 2006 letter 
to SBA be printed in the Record.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                  U.S. Senate,

                               Washington, DC, September 27, 2006.
     Hon. Steven C. Preston,
     Administrator, U.S. Small Business Administration, 
         Washington, D.C.
       Dear Administrator Preston: Let me take this opportunity to 
     again congratulate you on your confirmation as Administrator 
     of the U.S. Small Business Administration (SBA). Your 
     management experience and passion to serve will prove 
     extremely helpful to you in this challenging position.
       I write you today because as a member of the Senate 
     Committee on Small Business and Entrepreneurship, as well as 
     senator from a state hit hard by both Hurricanes Katrina, and 
     Rita. I believe it is my duty to ensure that we implement 
     substantive changes to SBA's Disaster Assistance Program 
     during this session of Congress.
       The SBA's response to Katrina and Rita was too slow and 
     lacking in urgency--threatening the very survival of our 
     affected businesses. A year has passed since Hurricanes 
     Katrina and Rita, yet while Congress is currently acting on 
     extensive reforms for the Federal Emergency Management Agency 
     (FEMA), there has been only incremental changes to SBA's 
     Disaster Assistance Program. That is why I am pleased to 
     learn that you have recently created the Accelerated Disaster 
     Response Initiative to identify and help implement process 
     improvements to enable the SBA to respond more quickly in 
     assisting small businesses and homeowners in need of 
     assistance after a disaster. I applaud these efforts and your 
     leadership on this issue. But much more must be done to 
     address the systemic problems that led to delays and inaction 
     post-Katrina and Rita.
       For our part, the Senate is also attempting to address the 
     multiple problems that hampered SBA's ability to assist 
     impacted Gulf Coast small businesses and homeowners. Under 
     the leadership of the Chair and Ranking Member of the Senate 
     Committee on Small Business and Entrepreneurship, Senators 
     Snowe and Kerry, the committee voted unanimously to approve 
     S. 3778, the ``Small Business Reauthorization and 
     Improvements Act of 2006'' and sent it to the full Senate for 
     consideration. A copy of the bill is attached for your 
     convenience. This bipartisan legislation reauthorizes SBA 
     programs, and also of great importance to me and my 
     constituents, makes essential reforms to SBA's Disaster 
     Assistance Program. However, since S. 3778 was introduced on 
     August 2, 2006, almost nine weeks ago, it has been blocked 
     from consideration and the Committee is still waiting for 
     budget information so that it may file its report on the 
     bill. It is my understanding that the administration and SBA 
     has several concerns about this bill in its current form.
       I am very concerned at this apparent deadlock, a deadlock 
     which threatens our bipartisan efforts to implement 
     comprehensive SBA Disaster Assistance reforms before the end 
     of the year. In particular, I believe that there must be SBA 
     reforms in the following areas:
       Short-Term Assistance: Following Katrina and Rita small 
     businesses waited, on average, four to six months for 
     approvals and disbursements on SBA Disaster Loans, In order 
     to ensure the long-term survival of small businesses impacted 
     by a catastrophic disaster, SBA needs to be in the business 
     of short-term recovery--by providing either emergency bridge 
     loans or grants.
       Disaster Loan Process for Homeowners: While SBA's mission 
     is to ``aid, counsel, assist and protect, insofar as is 
     possible, the interests of small business concerns'' it also 
     has the added responsibility of helping affected homeowners 
     rebuild their housing post-disaster. Katrina and Rita 
     resulted in record numbers of SBA Disaster Loan applications 
     from homeowners, which strained SBA's existing resources and 
     personnel. If the SBA must bear this responsibility, the 
     agency should improve the process as well as possibly seek 
     greater coordination and cooperation with the U.S. Department 
     of Housing and Urban Development on disaster housing 
     assistance.
       Expedited Disaster Loans to Businesses: The SBA currently 
     has no mechanism in place to expedite Disaster Loans to 
     impacted businesses that are either a major source of 
     employment or that can demonstrate a vital contribution to 
     recovery efforts in the area, such as businesses who 
     construct housing, provide building materials, or conduct 
     debris removal. The SBA needs the ability to fast-track loans 
     to these businesses, in order to

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     jumpstart local economies and recovery efforts.
       Economic Injury Disaster Loans: Although Katrina and Rita 
     directly affected businesses along the Gulf Coast, additional 
     businesses in the region, as well as the rest of the country, 
     were economically impacted by the storms. The SBA must have 
     the ability to provide nationwide, or perhaps regional, 
     economic injury disaster loans to businesses which can 
     demonstrate economic distress or disruption from a future 
     major disaster.
       Loss Verification and Loan Processing: Following the Gulf 
     Coast hurricanes, the SBA struggled for months to hire enough 
     staff to inspect losses and process loan applications. 
     Although SBA now has trained reserves to handle such surges 
     in demand, the SBA also needs the permanent authority to 
     enter into agreements with qualified private lenders and 
     credit unions to process Disaster Loans and provide loss 
     verification services.
       Administrator Preston, I was impressed by your expressed 
     willingness to be a bridge between Congress and the White 
     House. For the SBA to truly bring its disaster capabilities 
     to the next level, I believe that it must work in concert 
     with the Congress. Together, we must remove layers of 
     bureaucracy and red tape, which, following Katrina and Rita, 
     both overwhelmed and frustrated dedicated SBA employees and 
     those affected by the hurricanes. We must also give the SBA 
     new tools to ensure that problems that occurred post-Katrina 
     and Rita never happen again.
       Last month we marked the one-year anniversary of Hurricane 
     Katrina, and now mark the one-year anniversary of Hurricane 
     Rita. It is essential that we take action now to make 
     substantive reforms to the SBA Disaster Assistance Program. 
     We owe nothing less to our small businesses. I ask that you 
     continue working with my office on this important issue and 
     respond to our approach in writing no later than October 31, 
     2006. This will help us develop a proposal which can address 
     the concerns of the SBA as well as provide a better and more 
     responsive SBA Disaster Assistance Program for our Small 
     businesses.
       Thank you in advance for your assistance with this request.
           Sincerely,
                                                 Mary L. Landrieu,
                                            United States Senator.
                                 ______
                                 
      By Mr. KENNEDY:
  S. 164. A bill to modernize the education system of the United 
States; to the Committee on Health, Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, few things are more indispensable to the 
United States than good schools. Today more than ever, a quality 
education is the gateway to achieving the American dream and the best 
guarantee of equal opportunity for all our people, good citizenship, 
and an economy capable of mastering modern global challenges.
  In 1965, as part of the War on Poverty, President Johnson signed into 
law the landmark Elementary and Secondary Education to strengthen 
America by allocating substantial Federal resources to public schools 
for the first time. In the bipartisan No Child Left Behind Act of 2002, 
we reauthorized this landmark legislation, and for the first time made 
a commitment that every child--black or white, Latino or Asian, native-
born or an English language learner, disabled or non-disabled--would be 
part of an accountability plan that holds schools responsible for the 
progress of all students. It required every State to implement content 
and performance standards specifying what children should know and be 
able to do, and urged States to create high-quality assessments so that 
students' progress toward meeting those standards could be accurately 
measured. It expanded support for early reading and literacy skills and 
offered extra tutoring to students in struggling schools. It sought to 
improve the quality of instruction by requiring all schools to provide 
a highly-qualified teacher for every child.
  We know these reforms can work. But good results are not possible 
without adequate investments. The No Child Left Behind Act recognized 
that to move forward with these dramatic changes, schools would need a 
continued infusion of Federal resources, because the cost was obviously 
too great for States and local governments to bear alone.
  Today, because of budget cuts and poor implementation, we still have 
much to do to ensure that no child is left behind. President Bush has 
short-changed the promise made in the law by nearly $56 billion, 
leaving millions of children without the resources needed to reduce 
class sizes, improve teaching, and set higher standards for our 
schools. Now, more than ever, it's important to deliver the resources 
our schools deserve. Thousands of schools are on watchlists in their 
States and need Federal support and extra assistance to bridge the 
learning gaps of their students.
  The No Child Left Behind Act is again scheduled for reauthorization 
this year, and we must work to ensure that its promise is fulfilled. 
Aside from additional funding, one of our priorities must be to ensure 
that the standards and assessments used to measure progress are fair 
and reliable. Accountability is only as good as the tests to measure 
progress, and many States use tests that need substantial improvement. 
Some use exams that are not aligned to the standards that students must 
meet. Others have manufactured artificially high test score gains by 
lowering standards and adjusting test scores in order to avoid 
unfavorable consequences under the law's accountability framework.
  We need to shift our understanding of the Act away from the idea that 
it labels and penalizes schools, and toward a more productive framework 
that helps schools and States reach higher, not lower. We should use 
the well-regarded National Assessment of Educational Progress the 
``Nation's report card'' as a benchmark for the rigor of State exams. 
States should also align their elementary and secondary school 
standards with their standards for college entrance and success, 
creating seamless systems that guide students from the beginning of 
their education to the achievement of a college degree.
  The SUCCESS Act I am introducing today would assist States in these 
efforts. As the name suggests, it would provide Federal support for 
States Using Collaboration and Cooperation to Enhance Standards for 
Students. It would help ensure that public schools challenge all 
students to learn to high standards and provide needed help to schools 
with the greatest needs.
  The legislation updates the Nation's report card the National 
Assessment of Educational Progress to ensure that it sets a national 
benchmark which is internationally competitive and is aligned with the 
demands of the 21st century global economy. It expands our ability to 
monitor science achievement. It requires the NAEP to measure student 
preparedness to enter college, the 21st century workforce, or the Armed 
Services. It also requires the Secretary of Education to examine the 
gaps in student performance on state-level assessments and NAEP 
assessments, and to assist States that wish to analyze how their 
standards and assessments compare to the benchmark.
  The SUCCESS Act provides critical resources to States to create ``P-
16'' Preparedness Councils that will engage members of the early 
childhood, K-12 and higher education communities, along with the 
business and military communities, and other stakeholders to align the 
standards with what is needed for success in college and the workforce. 
The councils would be charged with ensuring that State standards and 
assessments meet international benchmarks to improve instruction and 
student achievement and prepare students to contribute in the global 
economy. It also provides funds to encourage collaboration among States 
in raising the bar for student achievement by providing grants to 
States working together to establish common standards and assessments 
that are rigorous, internationally competitive, and aligned with 
postsecondary demands.
  I look forward to working with my colleagues on this and other 
important proposals as we move toward the reauthorization of the No 
Child Left Behind Act. In the coming weeks, our Committee on Health, 
Education, Labor and Pensions will hold a series of hearings and 
roundtable discussions to hear from experts and those dealing with the 
challenges of the current law on a daily basis. Our goal is to work on 
a bipartisan basis with all our colleagues in the Senate and in the 
House and with the Administration to develop a strong bipartisan bill 
that builds on the positive aspects of the law, addresses the concerns 
about its implementation, and encourages reforms that we

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know will work to help students succeed.
  Teachers deserve the resources they need to help students achieve at 
higher levels. In many schools, the most valuable resource that 
teachers require is time. Yet the U.S. ranks 11th among industrialized 
nations in the number of days children attend school. Innovative 
approaches are needed to extend the school day and year in high-need 
schools. We should recruit Americorps volunteers to coordinate 
academically oriented extended-day programs for students and assist 
teachers during the school day.
  We must also ensure that students in high poverty schools have access 
to good teachers. We should create incentives to attract the best 
teachers to the neediest schools, including increased salaries for 
teachers and principals with strong track records of success who work 
in hard-to-staff schools, and by creating ``career advancement 
systems'' in which highly effective teachers serve as instructional 
leaders for new or less successful teachers. To help teachers improve 
their teaching, we should invest more in training them to use the best 
data to improve instruction.
  We should also help parents by replicating Boston's successful 
initiative to place parent-family outreach coordinators in every high-
poverty school, and offer grants to school districts to support 
community programs that address children's social, emotional and other 
non-academic needs.
  We must invest in these and other reforms to give schools the 
resources they need to close the achievement gap and ensure that all 
students can stay on track to graduate and succeed.
  Experience shows that each year yields greater success when 
policymakers and educators commit in the long term to higher standards, 
better teacher training, stronger accountability, and extra help for 
students in need. The initial implementation of the No Child Left 
Behind Act has been flawed, but we can't abandon its vision of an 
America in which every child is important and deserves to be educated 
and enjoy the full benefits of our society.
  That vision is as enduring as America itself. As John Adams wrote in 
the Massachusetts Constitution of 1780, the education of the people is 
``necessary for the preservation of their rights and liberty.'' More 
than two hundred years later, we need to recapture that spirit, and 
make ``No Child Left Behind'' a reality, not merely a slogan.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 164

       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 ``States Using Collaboration 
     and Coordination to Enhance Standards for Students Act of 
     2007'' or the ``SUCCESS Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Throughout our Nation's history, the skills and 
     education of our workforce have been a major determinant of 
     the standard of living of the people of the United States.
       (2) According to the most recent National Assessment of 
     Educational Progress, only 36 percent of the students in 
     grade 4 and 30 percent of the students in grade 8 reach the 
     proficient level in mathematics. In reading, only 31 percent 
     of the students in grades 4 and 8 reach the proficient level. 
     In science, only 29 percent of the students in grades 4 and 8 
     reach the proficient level.
       (3) A State-by-State comparison of the 2005 National 
     Assessment of Educational Progress average scale scores for 
     8th grade mathematics reveals that 31 States--more than \1/2\ 
     of the States in the Nation--scored more than 10 points 
     (about 1 grade level) below the highest scoring State, 
     Massachusetts.
       (4) Student achievement in mathematics and science in 
     elementary school and secondary school in the United States 
     lags behind other nations, according to the Trends in 
     International Mathematics and Science study and other 
     studies, including the Programme for International Student 
     Assessment, that recently ranked United States secondary 
     school students 28th out of 40 first- and second-world 
     nations, and tied with Latvia, in mathematics performance and 
     problem solving.
       (5) According to a report released in August, 2006, the 
     Nation loses more than $3,700,000,000 a year in the costs of 
     remedial education and in individuals' reduced earning 
     potential because students are not learning the basic skills 
     they need to succeed after high school.

     SEC. 3. PURPOSES.

       The purposes of this Act are the following:
       (1) To ensure students receive an education competitive 
     with other industrialized countries.
       (2) To assist States in improving the rigor of standards 
     and assessments.
       (3) To provide for the establishment of prekindergarten 
     through grade 16 student preparedness councils to better link 
     early childhood education and school readiness with 
     elementary school success, elementary student skills with 
     success in secondary school, and secondary student skills and 
     curricula, especially with respect to reading, mathematics, 
     and science, with the demands of higher education, the 21st 
     century workforce, and the Armed Forces, in order to ensure 
     that greater number of students, especially low-income and 
     minority students, complete secondary school with the 
     coursework and skills necessary to enter--
       (A) credit-bearing coursework in higher education without 
     the need for remediation;
       (B) high-paying employment in the 21st century workforce; 
     or
       (C) the Armed Forces.
       (4) To establish a system that encourages local educational 
     agencies to adopt a curriculum that meets State academic 
     content standards and student academic achievement standards 
     and prepares all students for success in elementary school, 
     secondary school, and post-secondary endeavors in the 21st 
     century.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) In general.--The terms ``elementary school'', ``limited 
     English proficient'', ``local educational agency'', 
     ``scientifically based research'', ``secondary school'', 
     ``Secretary'', and ``State educational agency'' have the 
     meanings given such terms in section 9101 of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7801).
       (2) 21st century curriculum.--The term ``21st century 
     curriculum'' means a course of study identified by a State as 
     preparing secondary school students for entrance into credit-
     bearing coursework in higher education without the need for 
     remediation, employment in the 21st century workforce, or 
     entrance into the Armed Forces. A State shall define the 21st 
     century curriculum in terms of content as well as course 
     names.
       (3) Academic content standards; student academic 
     achievement standards.--The terms ``academic content 
     standards'' and ``student academic achievement standards'', 
     when used with respect to a particular State, mean the 
     academic content standards and student academic achievement 
     standards adopted by a State under section 1111(b)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)(1)).
       (4) Critical-need foreign language.--The term ``critical-
     need foreign language'' means a language included on the list 
     of critical-need foreign languages that the Secretary shall 
     develop and update in consultation with the head official, or 
     a designee of such head official, of the National Security 
     Council, the Department of Homeland Security, the Department 
     of Defense, the Department of State, the Federal Bureau of 
     Investigation, the Department of Labor, and the Department of 
     Commerce, and the Director of National Intelligence.
       (5) End of course examination.--The term ``end of course 
     examination'' means an assessment of student learning given 
     at the end of a particular course that is used to measure 
     student learning of State academic content standards in the 
     subject matter of the course.
       (6) Engineering and technology education.--The term 
     ``engineering and technology education'' means a curriculum 
     and instruction that--
       (A) uses technology as a knowledge base or as a way of 
     teaching innovation using an engineering design process and 
     context;
       (B) develops an appreciation and fundamental understanding 
     of technology through design skills and the use of materials, 
     tools, processes, and limited resources;
       (C) is taught in conjunction with applied mathematics, 
     science, language arts, fine arts, and social studies as a 
     part of a comprehensive education;
       (D) applies the use of tools and skills employed by a 
     globalized skilled 21st century workforce that are necessary 
     for communication, manufacturing, construction, energy 
     systems, biomedical systems, transportation systems, and 
     other related fields; and
       (E) through the application of engineering principles and 
     concepts, develops proficiency in abstract ideas and in 
     problem-solving techniques that build a comprehensive 
     education.
       (7) 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)).
       (8) Professional development.--The term ``professional 
     development'' includes activities that--
       (A) improve and increase teachers' knowledge of the 
     academic subjects the teachers

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     teach, and enable teachers to become highly qualified;
       (B) are an integral part of broad educational improvement 
     plans across the school and across the local educational 
     agency;
       (C) give teachers, principals, and administrators the 
     knowledge and skills to provide students with the opportunity 
     to meet the State academic content standards and student 
     academic achievement standards and the 21st century 
     curriculum demands;
       (D) are high-quality, sustained, intensive, and classroom-
     focused, in order to have a positive and lasting effect on 
     classroom instruction and the teacher's performance in the 
     classroom;
       (E) advance teacher understanding of effective 
     instructional strategies that are based on scientifically 
     based research and are directly aligned with the State 
     academic content standards and State assessments;
       (F) are designed to give teachers the knowledge and skills 
     to provide instruction and appropriate language and academic 
     support services to limited English proficient students and 
     students with special needs, including the appropriate use of 
     curricula and assessments;
       (G) are, as a whole, regularly evaluated for their impact 
     on increased teacher effectiveness and improved student 
     academic achievement, with the findings of the evaluations 
     used to improve the quality of professional development; and
       (H) include instruction in the use of data and assessments 
     to inform and instruct classroom practice.
       (9) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Republic of the Marshall 
     Islands, the Federated States of Micronesia, and the Republic 
     of Palau.
       (10) State assessment.--The term ``State assessment'', when 
     used with respect to a particular State, means the student 
     academic assessments implemented by the State pursuant to 
     section 1111(b)(3) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311(b)(3)).
       (11) Student preparedness.--The term ``student 
     preparedness'' means preparedness based on the knowledge and 
     skills that--
       (A) are prerequisites for entrance into--
       (i) credit-bearing coursework in higher education without 
     the need for remediation;
       (ii) the 21st century workforce; and
       (iii) the Armed Forces;
       (B) can be measured and verified objectively using widely 
     accepted professional assessment standards; and
       (C) are consistent with widely accepted professional 
     assessment standards and competitive with international 
     levels of preparedness of students for postsecondary success.

     SEC. 5. ALIGNING STATE STANDARDS WITH NATIONAL BENCHMARKS.

       (a) Report on Results of State Assessments and National 
     Assessment.--Not later than 90 days after each release of the 
     results of the National Assessment of Educational Progress 
     (as carried out under section 303(b)(2) of the National 
     Assessment of Educational Progress Authorization Act (20 
     U.S.C. 9622(b)(2)) and section 1111(c)(2) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 6311(c)(2))) 
     in reading or mathematics (or, beginning in 2009, science) in 
     grades 4 and 8, the Secretary shall--
       (1) prepare and submit to Congress the report described in 
     subsection (b) on the results of the State assessments and 
     the assessments of reading and mathematics, and, beginning in 
     2009, science, in grades 4 and 8, required under section 
     1111(c)(2) of the Elementary and Secondary Education Act of 
     1965; and
       (2) identify States with significant discrepancies in 
     performance between the 2 assessments, as described in 
     subsection (b)(3).
       (b) Contents of Report.--
       (1) In general.--The report described in this subsection 
     shall include the following information for each subject area 
     and grade described in subsection (a)(1) in each State:
       (A) The percentage of students who performed at or above 
     the basic level on the State assessment--
       (i) for the most recent applicable year;
       (ii) for the preceding year; and
       (iii) for the previous year in which the assessment 
     required under section 1111(c)(2) of the Elementary and 
     Secondary Education Act of 1965 was given in such subject,
     and the change in such percentages between those assessments.
       (B) The percentage of students who performed at or above 
     the proficient level on the State assessment--
       (i) for the most recent applicable year;
       (ii) for the preceding year; and
       (iii) for the previous year in which the assessment 
     required under section 1111(c)(2) of the Elementary and 
     Secondary Education Act of 1965 was given in such subject,
     and the change in such percentages between those assessments.
       (C) The percentage of students who performed at or above 
     the basic level on the assessment required under section 
     1111(c)(2) of the Elementary and Secondary Education Act of 
     1965--
       (i) for the most recent applicable year; and
       (ii) for the previous such assessment,
     and the change in such percentages between those assessments.
       (D) The percentage of students who performed at or above 
     the proficient level on the assessment required under section 
     1111(c)(2) of the Elementary and Secondary Education Act of 
     1965--
       (i) for the most recent applicable year; and
       (ii) for the previous such assessment,
     and the change in such percentages between those assessments.
       (E) The difference between--
       (i) the percentage of students who performed at or above 
     the basic level for the most recent applicable year on the 
     assessment required under section 1111(c)(2) of the 
     Elementary and Secondary Education Act of 1965; and
       (ii) the percentage of students who performed at or above 
     the basic level on the State assessment for such year.
       (F) The difference between--
       (i) the percentage of students who performed at or above 
     the proficient level for the most recent applicable year on 
     the assessment required under section 1111(c)(2) of the 
     Elementary and Secondary Education Act of 1965; and
       (ii) the percentage of students who performed at or above 
     the proficient level on the State assessment for such year.
       (2) Analysis.--In addition to the information described in 
     paragraph (1), the Secretary shall include in the report--
       (A) an analysis of how the achievement of students in 
     grades 4, 8, and 12, and the preparedness of students in 
     grade 12 (when such data on preparedness exists from 
     assessments described in section 303 of the National 
     Assessment of Educational Progress Authorization Act (as 
     amended by this Act)), in the United States compares to the 
     achievement and preparedness of students in other 
     industrialized countries; and
       (B) possible reasons for any deficiencies identified in the 
     achievement or preparedness of United States students 
     compared to students in other industrialized countries.
       (3) Ranking.--The Secretary shall--
       (A) using the information described in paragraph (1), rank 
     the States according to the degree to which student 
     performance on State assessments differs from performance on 
     the assessments required under section 1111(c)(2) of the 
     Elementary and Secondary Education Act of 1965; and
       (B) identify those States with the most significant 
     discrepancies in performance between the State assessments 
     and the assessments required under section 1111(c)(2) of the 
     Elementary and Secondary Education Act of 1965.
       (c) Report on State Progress.--Beginning 5 years after the 
     date of enactment of this Act, the Secretary shall include in 
     the report described in subsection (a)(1) the following:
       (1) Information about the progress made by States to 
     decrease discrepancies in student performance on the State 
     assessments and the assessments required under section 
     1111(c)(2) of the Elementary and Secondary Education Act of 
     1965.
       (2) The differences that exist in States across subject 
     areas and grades.

     SEC. 6. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS CHANGES.

       (a) National Assessment Governing Board.--Section 302 of 
     the National Assessment of Educational Progress Authorization 
     Act (20 U.S.C. 9621) is amended--
       (1) in subsection (a), by striking ``shall formulate'' and 
     all that follows through the period at the end and inserting 
     ``shall--
       ``(1) formulate policy guidelines for the National 
     Assessment of Educational Progress (carried out under section 
     303); and
       ``(2) carry out, upon the request of a State, an alignment 
     analysis (under section 304) comparing a State's academic 
     content standards and student academic achievement standards 
     adopted under section 1111(b)(1) of the Elementary and 
     Secondary Education Act of 1965, assessment specifications, 
     assessment questions, and performance standards with national 
     benchmarks reflected in the assessments authorized under this 
     Act.'';
       (2) in subsection (b)(1), by adding at the end the 
     following:
       ``(O) One representative of the Armed Forces with expertise 
     in military personnel requirements and military preparedness, 
     who shall serve as an ex-officio, nonvoting member.'';
       (3) in subsection (c), by striking paragraph (4);
       (4) in subsection (e)--
       (A) in paragraph (1)--
       (i) in subparagraph (B), by inserting ``and grade 12 
     student preparedness levels'' after ``achievement levels'';
       (ii) in subparagraph (D), by inserting ``members of the 
     business and military communities,'' after ``parents,'';
       (iii) in subparagraph (E), by inserting ``and'' after 
     ``subject matter,'';
       (iv) by redesignating subparagraphs (G), (H), (I), and (J) 
     as subparagraphs (H), (I), (K), and (L), respectively;
       (v) by inserting after subparagraph (F) the following:
       ``(G) consistent with section 303, measure grade 12 student 
     preparedness;'';

[[Page 227]]

       (vi) by inserting after subparagraph (I) (as redesignated 
     by clause (iv)) the following:
       ``(J) ensure the rigor of the National Assessment of 
     Educational Progress framework and assessments, taking into 
     consideration--
       ``(i) the knowledge and skills that are prerequisite to 
     credit-bearing coursework in higher education without the 
     need for remediation, the 21st century workforce, and the 
     Armed Forces; and
       ``(ii) rigorous international content and performance 
     standards, and how the achievement of students in grades 4, 
     8, and 12, and the preparedness of students in grade 12, in 
     the United States compare to the achievement and the 
     preparedness of students in other industrialized 
     countries;'';
       (vii) in subparagraph (K) (as redesignated by clause (iv)), 
     by striking ``and'' after the semicolon;
       (viii) in subparagraph (L) (as redesignated by clause 
     (iv)), by striking the period at the end and inserting ``; 
     and'';
       (ix) by inserting after subparagraph (L) the following:
       ``(M) conduct an alignment analysis as described in section 
     304 for each State that requests such analysis.''; and
       (x) in the flush matter at the end--

       (I) by inserting ``for an assessment'' after ``data'';
       (II) by inserting ``Assessment Board's'' after ``prior to 
     the''; and
       (III) by striking ``(J)'' and inserting ``(L)'';

       (B) in paragraph (4), by inserting ``of Educational 
     Progress'' after ``National Assessment'';
       (C) in paragraph (5), in the paragraph heading, by 
     inserting ``advice'' after ``Technical''; and
       (D) in paragraph (6), by inserting ``or grade 12 student 
     preparedness levels'' after ``student achievement levels''; 
     and
       (5) in subsection (g)(1), by inserting ``of Educational 
     Progress'' after ``National Assessment''.
       (b) National Assessment of Educational Progress.--Section 
     303 of the National Assessment of Educational Progress 
     Authorization Act (20 U.S.C. 9622) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by striking ``Purpose'' and 
     inserting ``Purposes'';
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Purposes.--The purposes of this section are--
       ``(A) to provide, in a timely manner, a fair and accurate 
     measurement of student achievement and grade 12 student 
     preparedness in reading, mathematics, science, and other 
     subject matter as specified in this section; and
       ``(B) to report trends in student achievement and grade 12 
     student preparedness in reading, mathematics, science, and 
     other subject matter as specified in this section.'';
       (C) in paragraph (2)--
       (i) in subparagraph (B), by striking ``reading and 
     mathematics'' and inserting ``reading, mathematics, and 
     science'';
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) conduct a national assessment and collect and report 
     assessment data, including achievement and student 
     preparedness data trends, in a valid and reliable manner on 
     student academic achievement and student preparedness in 
     public and private schools in reading, mathematics, and 
     science at least once every 2 years in grade 12;'';
       (iii) in subparagraph (D)--

       (I) by striking ``subparagraph (B) are implemented and the 
     requirements described in subparagraph (C) are met,'' and 
     inserting ``subparagraphs (B) and (C) are implemented,''; and
       (II) by striking ``science,'';

       (iv) in subparagraph (E)--

       (I) by striking ``reading and mathematics'' and inserting 
     ``reading, mathematics, and science''; and
       (II) by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B) and (C)''; and

       (v) in subparagraph (H), by striking ``achievement data'' 
     and inserting ``student achievement data and grade 12 student 
     preparedness data'';
       (D) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) in clause (i), by striking ``reading and mathematics'' 
     and inserting ``reading, mathematics, and science'';
       (II) in clause (ii)--

       (aa) by inserting ``and grade 12 student preparedness'' 
     after ``achievement''; and
       (bb) by striking ``reading and mathematics'' and inserting 
     ``reading, mathematics, and science''; and

       (III) in clause (iv), by striking ``an evaluation'' and 
     inserting ``a review''; and

       (ii) in subparagraph (C)(ii), by striking ``reading and 
     mathematics'' and inserting ``reading, mathematics, and 
     science'';
       (E) in paragraph (4)(B), by striking ``, require, or 
     influence'' and inserting ``or require''; and
       (F) in paragraph (5)(B), by striking ``academic 
     achievement'' and inserting ``academic achievement or grade 
     12 student preparedness'';
       (2) in subsection (c)(3)(A), by striking ``academic 
     achievement'' and inserting ``academic achievement or grade 
     12 preparedness'';
       (3) in subsection (d)(3)--
       (A) in subparagraph (A), by striking ``reading and 
     mathematics in grades 4 and 8'' and inserting ``reading, 
     mathematics, and science in grades 4 and 8''; and
       (B) in subparagraph (B), by striking ``reading and 
     mathematics assessments in grades 4 and 8'' and inserting 
     ``reading, mathematics, and science assessments in grades 4 
     and 8'';
       (4) in subsection (e)--
       (A) in the subsection heading, by inserting ``and Grade 12 
     Student Preparedness Levels'' after ``Levels'';
       (B) in paragraph (1)--
       (i) by striking the paragraph heading and inserting 
     ``Development.--''; and
       (ii) by inserting ``, and develop grade 12 student 
     preparedness levels'' after ``subsection (b)(2)(F)'';
       (C) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Student achievement and grade 12 preparedness 
     levels.--
       ``(i) Student achievement levels.--The student achievement 
     levels described in paragraph (1) shall be determined by--

       ``(I) identifying the knowledge and skills that--

       ``(aa) are prerequisite to credit-bearing coursework in 
     higher education without the need for remediation in English, 
     mathematics, or science, participation in the 21st century 
     workforce, and the Armed Forces or, in the case of grade 4 
     and grade 8 students, are prerequisite to grade 12 
     preparedness;
       ``(bb) are competitive with rigorous international content 
     and performance standards; and
       ``(cc) can be measured and verified objectively using 
     widely accepted professional assessment standards; and

       ``(II) developing student achievement levels that are--

       ``(aa) based on the knowledge and skills identified in 
     subclause (I);
       ``(bb) based on the appropriate level of subject matter 
     knowledge for the grade levels to be assessed, or the age of 
     the students, as the case may be; and
       ``(cc) consistent with relevant widely accepted 
     professional assessment standards.
       ``(ii) Grade 12 student preparedness levels.--The grade 12 
     student preparedness levels described in paragraph (1) shall 
     be determined by--

       ``(I) identifying the knowledge and skills that--

       ``(aa) are prerequisite to credit-bearing coursework in 
     higher education without the need for remediation in English, 
     mathematics, or science, participation in the 21st century 
     workforce, and the Armed Forces;
       ``(bb) are competitive with rigorous international content 
     and performance standards; and
       ``(cc) can be measured and verified objectively using 
     widely accepted professional assessment standards; and

       ``(II) developing grade 12 student preparedness levels that 
     are--

       ``(aa) based on the knowledge and skills identified in 
     subclause (I); and
       ``(bb) consistent with widely accepted professional 
     assessment standards.''; and
       (ii) in subparagraph (C), by striking ``achievement 
     levels'' and inserting ``student achievement levels and grade 
     12 student preparedness levels'';
       (D) in paragraph (3)--
       (i) by striking ``After determining that such levels'' and 
     inserting ``After determining that the student achievement 
     levels and grade 12 student preparedness levels''; and
       (ii) by striking ``an evaluation'' and inserting ``a 
     review''; and
       (E) in paragraph (4), by inserting ``or grade 12 student 
     preparedness levels'' after ``achievement levels''; and
       (5) in subsection (f)(1)--
       (A) in subparagraph (A), by inserting ``and grade 12 
     student preparedness levels'' after ``student achievement 
     levels''; and
       (B) in subparagraph (B)--
       (i) in clause (i), by inserting ``or grade 12 student 
     preparedness'' after ``achievement'';
       (ii) in clause (ii), by inserting ``and grade 12 student 
     preparedness levels'' after ``achievement levels'';
       (iii) by striking clause (iii) and inserting the following:
       ``(iii) whether any authorized assessment is being 
     administered as a random sample and is reporting the trends 
     in student achievement or grade 12 student preparedness in a 
     valid and reliable manner in the subject areas being 
     assessed;'';
       (iv) in clause (iv), by striking ``and'' after the 
     semicolon;
       (v) in clause (v), by striking ``and mathematical 
     knowledge.'' and inserting ``and mathematical knowledge and 
     scientific knowledge; and''; and
       (vi) by adding at the end the following:
       ``(vi) whether the appropriate authorized assessments are 
     measuring, consistent with this section, the preparedness of 
     students in grade 12 in the United States for entry into--

       ``(I) credit-bearing coursework in higher education without 
     the need for remediation in English, mathematics, or science;
       ``(II) the 21st century workforce; and
       ``(III) the Armed Forces.''.

       (c) National Benchmarks.--The National Assessment of 
     Educational Progress Authorization Act (20 U.S.C. 9621 et 
     seq.) is amended--

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       (1) by redesignating sections 304 and 305 as sections 305 
     and 306, respectively; and
       (2) by inserting after section 303 the following:

     ``SEC. 304. NATIONAL BENCHMARKS.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to encourage the coordination of, and consistency 
     between--
       ``(A) a State's academic content standards and student 
     academic achievement standards adopted under section 
     1111(b)(1) of the Elementary and Secondary Education Act of 
     1965, assessment specifications, and assessment questions; 
     and
       ``(B) national benchmarks, as reflected in the National 
     Assessment of Educational Progress;
       ``(2) to assist States in increasing the rigor of their 
     State academic content standards, student academic 
     achievement standards, assessment specifications, and 
     assessment questions, to ensure that such standards, 
     specifications, and questions are competitive with rigorous 
     national and international benchmarks; and
       ``(3) to improve the instruction and academic achievement 
     of students, beginning in the early grades, to ensure that 
     secondary school graduates are well-prepared to enter--
       ``(A) credit-bearing coursework in higher education without 
     the need for remediation;
       ``(B) the 21st century workforce; or
       ``(C) the Armed Forces.
       ``(b) Alignment Analysis.--
       ``(1) In general.--When the chief State school officer of a 
     State identifies a need for, and requests the Assessment 
     Board to conduct, an alignment analysis for the State in 
     reading, mathematics, or science in grades 4 and 8, the 
     Assessment Board shall perform an alignment analysis of the 
     State's academic content standards and student academic 
     achievement standards adopted under section 1111(b)(1) of the 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6311(b)(1)), assessment specifications, and assessment 
     questions, for the identified subject in grades 4 and 8. Such 
     analysis shall begin not later than 180 days after the 
     alignment analysis is requested.
       ``(2) Assessment board responsibilities.--As part of the 
     alignment analysis, the Assessment Board shall--
       ``(A) identify the differences between the State's academic 
     content standards and student academic achievement standards, 
     assessment specifications, and assessment questions for the 
     subject identified by the State, and national benchmarks 
     reflected in the National Assessment of Educational Progress 
     in such subject in grades 4 and 8;
       ``(B) at the State's request, recommend steps for, and 
     policy questions such State should consider regarding, the 
     alignment of the State's academic content standards and 
     student academic achievement standards in the identified 
     subject, with national benchmarks reflected in the National 
     Assessment of Educational Progress in such subject in grades 
     4 and 8; and
       ``(C) at the State's request, and in conjunction with a 
     State prekindergarten through grade 16 student preparedness 
     council established under section 7 of the States Using 
     Collaboration and Coordination to Enhance Standards for 
     Students Act of 2007, assist in the development of a plan 
     described in section 7(e)(1)(C) of such Act.
       ``(3) Contract.--At the discretion of the Assessment Board, 
     the Assessment Board may enter into a contract with an entity 
     that possesses the technical expertise to conduct the 
     analysis described in this subsection.
       ``(4) State panel.--The chief State school officer of a 
     State participating in an alignment analysis described in 
     this subsection shall appoint a panel of not less than 6 
     individuals to partner with the Assessment Board in 
     conducting the alignment analysis. Such panel--
       ``(A) shall include--
       ``(i) local and State curriculum experts;
       ``(ii) relevant content and pedagogy experts, including 
     representatives of entities with widely accepted national 
     educational standards and assessments; and
       ``(iii) not less than 1 entity that possesses the technical 
     expertise to assist the State in implementing standards-based 
     reform, which may be the same entity with which the 
     Assessment Board contracts to conduct the analysis under 
     paragraph (3); and
       ``(B) may include other State and local representatives and 
     representatives of organizations with relevant expertise.''.
       (d) Definition of Secretary.--Section 305 of the National 
     Assessment of Educational Progress Authorization Act (as 
     redesignated by subsection (c)(1)) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Secretary.--The term `Secretary' means the Secretary 
     of Education.''.
       (e) Authorization of Appropriations.--Section 306(a) of the 
     National Assessment of Educational Progress Authorization Act 
     (as redesignated by subsection (c)(1)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) for fiscal year 2008--
       ``(A) $7,500,000 to carry out section 302;
       ``(B) $200,000,000 to carry out section 303; and
       ``(C) $10,000,000 to carry out section 304; and''; and
       (2) in paragraph (2)--
       (A) by striking ``5 succeeding'' and inserting ``4 
     succeeding''; and
       (B) by striking ``and 303, as amended by section 401 of 
     this Act'' and inserting ``, 303, and 304''.
       (f) Conforming Changes and Amendments.--
       (1) Conforming changes to the elementary and secondary 
     education act of 1965.--
       (A) State plans.--Section 1111(c)(2) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311(c)(2)) is 
     amended by striking ``and mathematics'' and inserting ``, 
     mathematics, and science''.
       (B) Local educational agency plans.--Section 1112(b)(1)(F) 
     of the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 6312(b)(1)(F)) is amended by striking ``reading and 
     mathematics'' and inserting ``reading, mathematics, and 
     science''.
       (2) Conforming amendment.--Section 113(a)(1) of the 
     Education Sciences Reform Act of 2002 (20 U.S.C. 9513(a)(1)) 
     is amended by striking ``section 302(e)(1)(J)'' and inserting 
     ``section 302(e)(1)(L)''.

     SEC. 7. PREKINDERGARTEN THROUGH GRADE 16 STUDENT PREPAREDNESS 
                   COUNCIL GRANTS.

       (a) Program Authorized.--
       (1) In general.--From amounts appropriated under subsection 
     (g) for a fiscal year, the Secretary is authorized to award, 
     on a competitive basis, grants to States for the purpose of 
     allowing the States to establish State prekindergarten 
     through grade 16 student preparedness councils (referred to 
     in this section as ``councils'') that--
       (A) convene stakeholders within the State and create a 
     forum for identifying and deliberating on educational issues 
     that cut across prekindergarten through grade 12 education 
     and higher education, and transcend any single system of 
     education's ability to address;
       (B) develop and implement a plan for improving the rigor of 
     a State's academic content standards, student academic 
     achievement standards, assessment specifications, and 
     assessment questions as necessary, to ensure such standards 
     and assessments meet national and international benchmarks as 
     reflected in the assessments required under section 303(b)(2) 
     of the National Assessment of Educational Progress 
     Authorization Act (20 U.S.C. 9622(b)(2)) or as defined by the 
     council as necessary for success in credit-bearing coursework 
     in higher education without the need for remediation, the 
     21st century workforce, or the Armed Forces;
       (C) inform the design and implementation of integrated 
     prekindergarten through grade 16 data systems, which--
       (i) will allow the State to track the progress of 
     individual students from prekindergarten through grade 12 and 
     into higher education; and
       (ii) shall be capable of being linked with appropriate 
     databases on service in the Armed Forces and participation in 
     the 21st century workforce; and
       (D) develop challenging--
       (i) school readiness standards;
       (ii) curricula for elementary schools and middle schools; 
     and
       (iii) 21st century curricula for secondary schools.
       (2) Duration.--The Secretary shall award grants under this 
     section for a period of not more than 5 years.
       (3) Existing state council.--A State with an existing State 
     council may qualify for the purposes of a grant under this 
     section if--
       (A) such council--
       (i) has the authority to carry out this section; and
       (ii) includes the members required under subsection (b); or
       (B) the State amends the membership or responsibilities of 
     the existing council to meet the requirements of subparagraph 
     (A).
       (b) Composition.--
       (1) Required members.--The members of a council described 
     in subsection (a) shall include--
       (A) the Governor of the State or the designee of the 
     Governor;
       (B) the chief executive officer of the State public 
     institution of higher education system, if such a position 
     exists;
       (C) the chief executive officer of the State higher 
     education coordinating board;
       (D) the chief State school officer;
       (E) not less than 1 representative each from--
       (i) the business community; and
       (ii) the Armed Forces;
       (F) a public elementary school teacher employed in the 
     State; and
       (G) a public secondary school teacher employed in the 
     State.
       (2) Optional members.--The council described in subsection 
     (a) may also include--
       (A) a representative from--
       (i) a private institution of higher education;
       (ii) the Chamber of Commerce for the State;
       (iii) a civic organization;
       (iv) a civil rights organization;
       (v) a community organization; or
       (vi) an organization with expertise in world cultures;
       (B) the State official responsible for economic 
     development, if such a position exists; or

[[Page 229]]

       (C) a dean or similar representative for a school of 
     education at an institution of higher education or a similar 
     teacher certification or licensure program.
       (c) Timeline.--A State receiving a grant under this section 
     shall establish a council (or use or amend an existing 
     council in accordance with subsection (a)(3)) not later than 
     60 days after the receipt of the grant.
       (d) Application.--
       (1) In general.--Each State 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 reasonably require.
       (2) Contents.--Each application submitted under paragraph 
     (1) shall--
       (A) demonstrate that the opinions of the larger education, 
     business, and military community, including parents, 
     students, teachers, teacher educators, principals, school 
     administrators, and business leaders, will be represented 
     during the determination of the State academic content 
     standards and student academic achievement standards, 
     assessment specifications, assessment questions, and the 
     development of curricula, if applicable;
       (B) include a comprehensive plan to provide high-quality 
     professional development for teachers, paraprofessionals, 
     principals, and school administrators;
       (C) explain how the State will provide assistance to local 
     educational agencies in implementing rigorous State standards 
     through substantive curricula, including scientifically based 
     remediation and acceleration opportunities for students; and
       (D) explain how the State and the council will leverage 
     additional State, local, and other funds to pursue curricular 
     alignment and student success.
       (e) Use of Funds.--
       (1) Required activities.--A State receiving a grant under 
     this section shall use the grant funds to establish a council 
     that shall carry out the following:
       (A) Design and implement an integrated prekindergarten 
     through grade 16 longitudinal data system for the State, if 
     such system does not exist, that will allow the State to 
     track the progress of students from prekindergarten, through 
     grade 12, and into higher education, the 21st century 
     workforce, and the Armed Forces. The data system shall--
       (i) include--

       (I) a unique statewide student identifier for each student;
       (II) student-level enrollment, demographic, and program 
     participation information, including race or ethnicity, 
     gender, and income status;
       (III) the ability to match individual students' test 
     records from year to year to measure academic growth;
       (IV) information on untested students;
       (V) a teacher identifier system with the ability to match 
     teachers to students;
       (VI) student-level transcript information, including 
     information on courses completed and grades earned;
       (VII) student-level college preparedness examination 
     scores;
       (VIII) student-level graduation and dropout data;
       (IX) the ability to match student records between the 
     prekindergarten through grade 12 and the postsecondary 
     systems;
       (X) a State data audit system assessing data quality, 
     validity, and reliability;
       (XI) rates of student attendance at institutions of higher 
     education;
       (XII) rates of student enrollment and retention in the 
     Armed Forces; and
       (XIII) student nonmilitary postsecondary employment 
     information;

       (ii) to the extent possible, coordinate with other relevant 
     State databases, such as criminal justice or social services 
     data systems;
       (iii) allow the State to analyze correlations between 
     course-taking patterns in prekindergarten through grade 12 
     and outcomes after secondary school graduation, including--

       (I) entry into higher education;
       (II) the need for, and cost of, remediation in higher 
     education;
       (III) graduation from higher education;
       (IV) entry into the 21st century workforce;
       (V) entry into the Armed Forces; and
       (VI) to the extent possible through linkages with 
     appropriate databases on service in the Armed Forces and 
     participation in the 21st century workforce, persistence in 
     the Armed Forces and continued participation in the 21st 
     century workforce; and

       (iv) ensure that the use of any available data does not 
     allow for the public identification of the individual 
     student's personally identifiable information, and that all 
     data shall be collected and maintained in accordance with 
     section 444 of the General Education Provisions Act (20 
     U.S.C. 1232g; commonly referred to as the Family Educational 
     Rights and Privacy Act of 1974).
       (B) If an integrated prekindergarten through grade 16 
     longitudinal data system exists or is currently being built, 
     ensure that it complies with the requirements described in 
     subparagraph (A).
       (C) Develop and implement a plan to increase the rigor of 
     standards or assessments in reading, mathematics, or science 
     in order to better align such standards or assessments with 
     national benchmarks reflected in the National Assessment of 
     Educational Progress in grades 4 and 8 (in accordance with 
     the results of the alignment analysis conducted under section 
     304 of the National Assessment of Educational Progress 
     Authorization Act), and in other grades to ensure the 
     alignment of kindergarten through grade 12 standards or 
     assessments with the revisions made in grades 4 and 8, or to 
     align such standards or assessments with the demands of 
     higher education, the 21st century workforce, or the Armed 
     Forces or other national and international benchmarks 
     identified by the council. Such plan may include--
       (i) an articulation of the steps necessary--

       (I) for revising the State academic content standards and 
     student academic achievement standards, assessment 
     specifications, and assessment questions for the identified 
     subject; and
       (II) to better align the standards and the assessment 
     specifications and questions described in subclause (I) 
     with--

       (aa) national benchmarks as reflected in the National 
     Assessment of Educational Progress required under section 303 
     of the National Assessment of Educational Progress 
     Authorization Act (20 U.S.C. 9622) for the identified 
     subject; or
       (bb) the demands of higher education, the 21st century 
     workforce, or the Armed Forces or other national or 
     international benchmarks identified by the council;
       (ii) an articulation of the steps necessary and the process 
     the State will undertake to revise standards or assessments, 
     or both, in the identified subject;
       (iii) a description of the partners the State will work 
     with to revise standards or assessments, or both; and
       (iv) a description of the activities the State will 
     undertake to implement the revised standards or assessments, 
     or both, at the State educational agency level and the local 
     educational agency level, which activities may include--

       (I) preservice and in-service teacher, paraprofessional, 
     principal, and school administrator training;
       (II) statewide meetings to provide professional development 
     opportunities for teachers and administrators;
       (III) development of curricula and instructional methods 
     and materials;
       (IV) the redesign of existing assessments, or the 
     development or purchase of new high-quality assessments, with 
     a focus on ensuring that such assessments are rigorous, 
     measure significant depth of knowledge, use multiple measures 
     and formats (such as student portfolios), and are sensitive 
     to inquiry-based, project-based, or differentiated 
     instruction; and
       (V) other activities necessary for the effective 
     implementation of the new State standards or assessments, or 
     both.

       (D) Analyze the State's level of prekindergarten through 
     grade 16 curricular alignment and the success of the State's 
     education system in preparing students for higher education, 
     the 21st century workforce, and the Armed Forces by--
       (i) using the data produced by a data system described in 
     subparagraph (A) or (B), or other information as appropriate; 
     and
       (ii) exploring a possible agreement between the State 
     educational agency and the higher education system in the 
     State on a common assessment or assessments that--

       (I) shall follow established guidelines to guarantee 
     reliability and validity;
       (II) shall provide adequate accommodations for students who 
     are limited English proficient and students with 
     disabilities; and
       (III) may be a placement examination, end of course 
     examination, college, workforce, or Armed Forces preparedness 
     examination, or admissions examination, that measures 
     secondary students' preparedness to succeed in postsecondary, 
     credit-bearing courses.

       (E) If the State has an officially designated college 
     preparatory curriculum at the time the State applies for a 
     grant under this section--
       (i) describe the extent to which students who completed the 
     college preparatory curriculum are more or less successful 
     than other students, including students who did not complete 
     a college preparatory curriculum, in entering and graduating 
     from a program of study at an institution of higher education 
     or entering the 21st century workforce or the Armed Forces;
       (ii) examine the extent to which the expectations of the 
     college preparatory curriculum are aligned with the entry 
     standards of the State's institutions of higher education, 
     including whether such curriculum enables secondary school 
     students to enter credit-bearing coursework in higher 
     education without the need for remediation; and
       (iii) examine the extent to which the curriculum allows 
     graduates to attain the skills necessary to enter the 21st 
     century workforce or the Armed Forces.
       (F) If the State has not designated a college preparatory 
     curriculum at the time the State applied for a grant under 
     this section, or if the curriculum described in subparagraph 
     (E) does not result in a higher number of students enrolling 
     in and graduating from institutions of higher education or 
     entering the 21st century workforce or the Armed Forces, or 
     is not aligned with the entry

[[Page 230]]

     standards described in subparagraph (E)(ii), develop a 21st 
     century curriculum that--
       (i) may be adopted by the local educational agencies in the 
     State for use in secondary schools;
       (ii) enables secondary school students to enter credit-
     bearing coursework in higher education without the need for 
     remediation;
       (iii) allows graduates to attain the skills necessary to 
     enter the 21st century workforce or the Armed Forces;
       (iv) reflects the input of teachers, principals, school 
     administrators, and college faculty; and
       (v) focuses on providing rigorous core courses that reflect 
     the State academic content standards and student academic 
     achievement standards.
       (G) Develop and make available specific opportunities for 
     extensive professional development for teachers, 
     paraprofessionals, principals, and school administrators, to 
     improve instruction and support mechanisms for students using 
     a curriculum described in subparagraph (E) or (F).
       (H) Develop a plan to provide remediation and additional 
     learning opportunities for students below grade level to 
     ensure that all students will have the opportunity to meet 
     the curricular standards of a curriculum described in 
     subparagraph (E) or (F).
       (I) Use data gathered by the council to improve 
     instructional methods, better tailor student support 
     services, and serve as the basis for all school reform 
     initiatives.
       (J) Implement activities designed to ensure the enrollment 
     of all students in rigorous coursework, which may include--
       (i) specifying the courses and performance levels required 
     for acceptance into public institutions of higher education;
       (ii) collaborating with institutions of higher education or 
     other State educational agencies to develop assessments 
     aligned to State academic content standards and a curriculum 
     described in subparagraph (E) or (F), which assessments may 
     be used as measures of student achievement in secondary 
     school as well as for entrance or placement at institutions 
     of higher education;
       (iii) creating ties between elementary schools and 
     secondary schools, and institutions of higher education, to 
     offer--

       (I) accelerated learning opportunities, particularly with 
     respect to mathematics, science, engineering, technology, and 
     critical-need foreign languages to secondary school students, 
     which may include--

       (aa) granting postsecondary credit for secondary school 
     courses;
       (bb) providing early enrollment opportunities in 
     postsecondary education for secondary students enrolled in 
     postsecondary-level coursework;
       (cc) creating dual enrollment programs;
       (dd) creating satellite secondary school campuses on the 
     campuses of institutions of higher education; and
       (ee) providing opportunities for higher education faculty 
     who are highly qualified, as such term is defined in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7801), to teach credit-bearing postsecondary 
     courses in secondary schools; and

       (II) professional development activities for teachers, 
     which may include--

       (aa) mentoring opportunities; and
       (bb) summer institutes;
       (iv) expanding or creating higher education awareness 
     programs for middle school and secondary school students;
       (v) expanding opportunities for students to enroll in 
     highly rigorous postsecondary preparatory courses, such as 
     Advanced Placement and International Baccalaureate courses; 
     and
       (vi) developing a high-quality professional development 
     curriculum to provide professional development opportunities 
     for paraprofessionals, teachers, principals, and 
     administrators.
       (2) Planning and implementation.--A State receiving a grant 
     under this section may use grant funds received for the first 
     fiscal year to form the council and plan the activities 
     described in paragraph (1). Grant funds received for 
     subsequent fiscal years shall be used for the implementation 
     of the activities described in such paragraph.
       (f) Reports and Publication.--
       (1) Reports.--
       (A) Initial report.--Not later than 9 months after a State 
     receives a grant under this section, the State shall submit a 
     report to the Secretary that includes--
       (i) an analysis of alignment and articulation across the 
     State's systems of public education for prekindergarten 
     through grade 16, including data that indicates the percent 
     of students who--

       (I) graduate from secondary school with a regular diploma 
     in the standard number of years;
       (II) complete a curriculum described in subparagraph (E) or 
     (F) of subsection (e)(1);
       (III) matriculate into an institution of higher education 
     (disaggregated by 2-year and 4-year degree-granting 
     programs);
       (IV) are secondary school graduates who need remediation in 
     reading, writing, mathematics, or science before pursuing 
     credit-bearing post-secondary courses in English, 
     mathematics, or science;
       (V) persist in an institution of higher education into the 
     second year; and
       (VI) graduate from an institution of higher education 
     within 150 percent of the expected time for degree completion 
     (within 3 years for a 2-year degree program and within 6 
     years for a baccalaureate degree);

       (ii) an analysis of the strengths and weaknesses of the 
     State--

       (I) in transitioning students from the prekindergarten 
     through grade 12 education system into higher education, the 
     21st century workforce, and the Armed Forces; and
       (II) in transitioning students from the prekindergarten 
     through grade 12 education system into mathematics, science, 
     engineering, technology, and critical-need foreign language 
     degree programs at institutions of higher education;

       (iii) an analysis of the quality and rigor of the State's 
     curriculum described in subparagraph (E) or (F) of subsection 
     (e)(1), and the accessibility of the curriculum to all 
     students in prekindergarten through grade 12;
       (iv) an analysis of the strengths and weaknesses of the 
     State in recruiting, retaining, and supporting qualified 
     teachers, including--

       (I) whether the State needs to recruit additional teachers 
     at the secondary level for specific subjects (such as 
     mathematics, science, engineering and technology education, 
     and critical-need foreign languages), particular schools, or 
     local educational agencies; and
       (II) recommendations on how to set and achieve goals in 
     this pursuit; and

       (v) a detailed action plan that describes how the council 
     will accomplish the goals and tasks required by the grant 
     under this section, including a timeline for accomplishing 
     all activities under the grant.
       (B) Annual reports.--Not later than 1 year following the 
     submission of the initial report described in subparagraph 
     (A), and annually thereafter for the duration of the grant, a 
     State receiving a grant under this section shall prepare and 
     submit to the Secretary a report that describes the State's 
     progress in accomplishing the goals and tasks required by the 
     grant, including progress on each item described in 
     subparagraph (A). The final annual report under this 
     subparagraph shall be submitted 1 year after the expiration 
     of the grant.
       (2) Publication.--A State submitting a report in accordance 
     with this subsection shall publish and widely disseminate the 
     report to the public, including posting the report on the 
     Internet.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $200,000,000 for 
     fiscal year 2008, and such sums as may be necessary for each 
     of the 4 succeeding fiscal years.

     SEC. 8. COLLABORATIVE STANDARDS AND ASSESSMENTS GRANTS.

       (a) Definitions.--In this section:
       (1) Eligible state.--The term ``eligible State'' means a 
     State that demonstrates that it has analyzed and, where 
     applicable, revised the State standards and assessments, 
     through participation in a prekindergarten through grade 16 
     student preparedness council described in section 7 or 
     through other State action, to ensure the standards and 
     assessments--
       (A) are aligned with the demands of the 21st century; and
       (B) prepare students for entry into--
       (i) credit-bearing coursework in higher education without 
     the need for remediation;
       (ii) the 21st century workforce; and
       (iii) the Armed Forces
       (2) Eligible consortium.--
       (A) In general.--The term ``eligible consortium'' means a 
     consortium of 2 or more eligible States that agrees to allow 
     the Secretary, under subsection (e), to make available any 
     assessment developed by the consortium under this section to 
     a State that so requests, including a State that is not a 
     member of the consortium.
       (B) Additional members.--An eligible consortium may 
     include, in addition to 2 or more eligible States, an entity 
     with the technical expertise to carry out a grant under this 
     section.
       (b) Program Authorized.--From amounts authorized under 
     subsection (f), the Secretary shall award grants, on a 
     competitive basis, to eligible consortia to enable the 
     eligible consortia to develop common standards and 
     assessments that--
       (1) are highly rigorous, internationally competitive, and 
     aligned with the demands of higher education, the 21st 
     century workforce, and the Armed Forces; and
       (2) in the case of assessments, set rigorous performance 
     standards comparable to rigorous national and international 
     benchmarks.
       (c) Application.--An eligible consortium desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       (d) Report.--Not later than 90 days after the end of the 
     grant period, an eligible consortium receiving a grant under 
     this section shall prepare and submit a report to the 
     Secretary describing the grant activities.
       (e) Availability of Assessments.--The Secretary shall--
       (1) make available, to a State that so requests and at no 
     charge to the State, any rigorous, high-quality assessment 
     developed by an eligible consortium under this section; and

[[Page 231]]

       (2) notify potential eligible States, at reasonable 
     intervals, of all assessments currently under development by 
     eligible consortia under this section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $75,000,000 for 
     fiscal year 2008 and such sums as are necessary for each of 
     the 4 succeeding fiscal years.
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. DeMint, Mr. Smith, and Mr. 
        Sununu):
  S. 166. A bill to restrict any State from imposing a new 
discriminatory tax on cell phone services; to the Committee on Finance.
  Mr. McCAIN. Mr. President, I am pleased to be joined by Senator 
DeMint in introducing the Cell Phone Tax Moratorium Act of 2007. This 
bill would put a stop to new discriminatory taxes on cell phone 
services for a period of 3 years.
  The average general sales tax in the U.S. today is around six 
percent, but the average State and local taxes and fees on cell phone 
service comes in at about 17 percent. Consumers are left paying a hefty 
portion of their monthly cell phone bill to the Government for what 
many believe is their most important communications device.
  The National Conference of State Legislatures and the National 
Governors' Association have issued policy positions calling for states 
to eliminate excessive and discriminatory taxes on communications 
services. State and local governments have been working with the 
telecommunications industry to find a solution to these excessive 
taxes, but no agreement has been reached. During the three year 
moratorium, it is my hope that State and local governments--in 
cooperation with industry--will work to eliminate discriminatory taxes 
and fees on wireless services.
  Excessive taxes dampen innovation, and are regressive, hitting the 
most vulnerable customers the hardest. Although more then 72 percent of 
all Americans own a cell phone, 26 percent said they could not live 
without it because it is their only communications source, according to 
a recent Pew Internet and Life Project report. Cell phone only owners 
are often those who find it difficult to afford a wired and a wireless 
phone. Additionally, according to the same report, 74 percent of the 
Americans say they have used their cell phone in an emergency and 
gained valuable assistance.
  Some State and local governments cannot move beyond the idea that 
wireless services are some kind of luxury item that can be taxed at a 
higher rate. These services may have been a luxury item many years ago, 
but due to deregulation wireless services are more affordable than ever 
and even necessary for personal or business reasons. This is why it is 
perplexing that some states burden cell phone subscribers with taxes 
and fees that can be as high as 24 percent of a consumer's total bill.
  Tax rates as high as this are generally associated with cigarettes 
and alcohol and known as ``sin taxes'' designed to reduce consumption. 
I cannot imagine it is the intention of states and localities to reduce 
consumption of wireless services.
  Mindful of the revenue requirements of States and localities, this 
bill does not eliminate existing discriminatory taxes. Nor does the 
bill prohibit states and localities from imposing new taxes on wireless 
services that are not discriminatory. The bill simply puts a stop to 
the creation of new discriminatory taxes on cell phone services.
  Last year I introduced similar legislative language during a mark-up 
in the Senate Commerce Committee. The amendment passed with a vote 21-
1. I am hopeful that this bill will once again be supported by the 
Commerce Committee and that it will be approved by the full Senate. I 
ask my colleagues to join me in ending the discriminatory sales taxes 
on this very popular communications service.
                                 ______
                                 
      By Mrs. BOXER:
  S. 167. A bill to amend the Clean Air Act to require the Secretary of 
Energy to provide grants to eligible entities to carry out research, 
development, and demonstration projects of cellulosic ethanol and 
construct infrastructure that enables retail gas stations to dispense 
cellulosic ethanol for vehicle fuel to reduce the consumption of 
petroleum-based fuel; to the Committee on Environment and Public Works.
  Mrs. BOXER. Mr. President, I rise today to introduce the Cellulosic 
Ethanol Development and Implementation Act of 2007.
   As a Nation, we should be striving for greater energy independence 
and for more environmentally friendly sources of fuel for our 
automobiles. Cellulosic ethanol is fuel ethanol made from glucose, a 
sugar derived from the cellolose in biomass. It is chemically identical 
to ethanol made from food crops like corn and sugar cane. Cellulosic 
ethanol is more difficult to make, because cellulose is a tough 
structural material that gives plants their strength.
  However, making ethanol from cellulose lets us tap into a much larger 
source of sugars, and, therefore, potentially make much larger amounts 
of fuel ethanol, tens of billions of gallons or more. An additional 
benefit is that cellulosic ethanol made from biomass is likely to 
produce smaller amounts of greenhouse gases than corn ethanol, and far 
less greenhouse gases than gasoline it will replace. With continued 
technology improvements, it should be cheaper than gasoline. Because it 
is locally made, it reduces the need for oil imports.
  An April 2005 study by the Department of Energy and Agriculture 
indicates that the country currently has a supply of biomass sufficient 
to displace 30 percent of the country's present petroleum use.
  I am introducing this bill because I believe we should be doing more 
to harness our Nation's cellulosic ethanol potential. I have been a 
strong proponent of using alternative transportation fuels and 
efficiency measures to reduce oil dependence. Last Congress, we took a 
good first step in the development of cellulosic ethanol. The Energy 
Policy Act of 2005, known as EPAct 05, requires that at least one-third 
of the Nation's ethanol be produced from cellulose by 2013.
  In addition, EPAct 05 also created a new ethanol section of the Clean 
Air Act (Section 212). In that section, one subsection, section 212(e), 
includes language I authored to establish a new cellulosic production 
conversion assistance grant program. That program, housed at the 
Department of Energy, provides financial assistance to encourage the 
building of new cellulosic facilities in the U.S. The program was 
authorized to receive $250 million in fiscal year 2006 and $400 million 
in fiscal year 2007.
  Though Congress has taken the steps I've just described, I believe we 
can and should do more, and the bill I introduce today does just that.
  It would add two new cellulosic ethanol programs to the Clean Air 
Act. The first is a new competitive grant program for cellulosic motor 
vehicle fuel research and demonstration projects. Funded at $1 billion 
over 6 years, universities, Federal and State research labs, private 
industry, nonprofit groups, or partnerships between any of these 
groups, would be able to compete for funds.
  My bill would also create a new pilot program for the installation of 
ethanol fuel pumps at gas stations or any other needed infrastructure 
required to dispense ethanol fuel, such as a storage tank, for example. 
Funded at $1 billion over 6 years, the same entities that would 
participate in the research section of the bill would also be able to 
compete for funds under this program. Successful applicants would have 
to provide 20 percent of the grant in matching funds.
  Finally, my bill also extends the authorization for the original 
cellulosic grant program that is currently authorized in EPAct 05. The 
authorization expires at the end of this year, and the bill I introduce 
today would extend it at $400 million per year thru 2010. This 
extension will ensure the program continues.
  As Chair of the Environment and Public Works Committee, I believe 
that our Nation's energy policy must focus on conservation, 
improvements in energy efficiency, and the development of clean, 
renewable energy technology. I continue to support measures

[[Page 232]]

to accomplish these goals, including the promotion of cellulosic 
ethanol. I believe this bill is an important next step in achieving 
these objectives. I ask content that a copy of the bill be printed in 
the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 167

       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 ``Cellulosic Ethanol 
     Development and Implementation Act of 2007''.

     SEC. 2. CELLULOSIC ETHANOL FUEL DEVELOPMENT AND 
                   IMPLEMENTATION PROGRAM.

       Section 212 of the Clean Air Act (42 U.S.C. 7546) is 
     amended by adding at the end the following:
       ``(f) Cellulosic Ethanol Fuel Grant Program.--
       ``(1) Definition of eligible entity.--In this subsection, 
     the term `eligible entity' means--
       ``(A) an institution of higher education;
       ``(B) a National Laboratory;
       ``(C) a Federal research agency;
       ``(D) a State research agency;
       ``(E) a private sector entity;
       ``(F) a nonprofit organization; or
       ``(G) a consortium of 2 or more entities described in 
     subparagraphs (A) through (F).
       ``(2) Establishment.--The Secretary shall establish a 
     program to provide grants to eligible entities for use in 
     carrying out research, development, and demonstration 
     projects relating to the use of cellulosic ethanol fuel for 
     motor vehicles.
       ``(3) Application.--An eligible entity that seeks to 
     receive a grant under this subsection shall submit to the 
     grant review committee described in paragraph (4) an 
     application for the grant at such time, in such form, and 
     containing such information as the grant review committee may 
     require.
       ``(4) Grant review committee.--Applications for grants 
     under this subsection shall be reviewed, and approved or 
     disapproved, by a grant review committee composed of an equal 
     number of representatives of--
       ``(A) the Department of Energy, to be appointed by the 
     Secretary;
       ``(B) the Department of Agriculture, to be appointed by the 
     Secretary of Agriculture;
       ``(C) the Environmental Protection Agency, to be appointed 
     by the Administrator; and
       ``(D) experts that are not full-time employees of the 
     Federal Government, to be appointed by the President.
       ``(5) Priority.--In awarding grants under this subsection, 
     the grant review committee shall give priority to eligible 
     entitles that propose to carry out--
       ``(A) projects that use alternative or renewable energy 
     sources in the production of cellulosic ethanol fuel; and
       ``(B) demonstration projects.
       ``(6) Matching funds.--As a condition of receiving a grant 
     under this subsection, an eligible entity shall provide 
     matching funds in the amount of 20 percent of the total 
     amount of the grant.
       ``(7) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection 
     $1,000,000,000 for the period of fiscal years 2007 through 
     2013.
       ``(g) Infrastructure Pilot Program for Cellulosic Ethanol 
     Fuel.--
       ``(1) In general.--The Secretary shall establish a pilot 
     program to provide grants to eligible entities (as described 
     in subsection (d)(2) or defined in subsection (f)) for use in 
     installing infrastructure (such as pumps) that would enable 
     retail gas stations to sell and dispense ethanol fuel.
       ``(2) Application.--An eligible entity that seeks to 
     receive a grant under this subsection shall submit to the 
     Secretary an application for the grant at such time, in such 
     form, and containing such information as the Secretary may 
     require.
       ``(3) Matching funds.--As a condition of receiving a grant 
     under this subsection, an eligible entity shall provide 
     matching funds in the amount of 20 percent of the total 
     amount of the grant.
       ``(4) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection 
     $1,000,000,000 for the period of fiscal years 2007 through 
     2013.''.

     SEC. 3. CELLULOSIC BIOMASS ETHANOL CONVERSION ASSISTANCE.

       Section 212(e) of the Clean Air Act (42 U.S.C. 7546(e)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     $400,000,000 for each of fiscal years 2007 through 2010.''.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 168. A bill to direct the Secretary of Veterans Affairs to 
establish a national cemetery for veterans in the Pikes Peak Region of 
Colorado; to the Committee on Veterans' Affairs.
  Mr. ALLARD. Mr. President, I am reintroducing legislation to 
establish a National Veteran's Cemetery in the Pikes Peak Region of 
Colorado in order to meet the needs of veterans in southern Colorado. 
This legislation is similar to what I have introduced and supported in 
the past, and seeks to fill a void for many veterans and their 
families. Colorado's fifth Congressional District contains the third 
highest concentration of military retirees in the nation. Recent 
estimates show that there are as many as 175,000 veterans in the area, 
when including all of southern Colorado. This legislation will allow 
thousands of eligible southern Colorado military personnel, both active 
duty and retired as well as the many veterans living in the area, to 
have a chance to find their final resting place in the region so many 
of them have come to love and appreciate.
  This legislation has been influenced by the growing military retiree 
and veterans populations in the Pikes Peak region as well as community 
leaders and local Veterans Service Organizations who have repeatedly 
brought this issue to my attention over the last several years. It is 
important to note the passion and perseverance of those that have 
supported a National Veterans Cemetery and have worked tirelessly on 
the issue. This legislation is truly citizen-generated and is a 
testament to the dedication of veterans in the community.
                                 ______
                                 
      By Mr. ALLARD (for himself and Mr. Levin):
  S. 169. A bill to amend the National Trails System Act to clarify 
Federal authority relating to land acquisition from willing sellers for 
the majority of the trails in the System, and for other purposes; to 
the Committee on Energy and Natural Resources.
  Mr. ALLARD. Mr. President, the National Trails System Willing Seller 
Act will pave the way for the completion of our Nation's most 
outstanding national trails. The legislation will amend the National 
Trails System Act of 1968 to make clear that the Federal Government may 
purchase land to complete several national trails from willing sellers. 
The legislation specifically names nine trails that are spread across 
the nation. The Continental Divide trail, stretching from Mexico 
through Colorado to the Canadian border, is among the trails that await 
completion.
  I was successful in gaining Senate passage of this legislation in the 
108th Congress and am hopeful that both the House and Senate will act 
on the bill this year.
                                 ______
                                 
      By Mr. INHOFE (for himself and Mr. Coburn):
  S. 171. A bill to designate the facility of the United States Postal 
Service located at 301 Commerce Street in Commerce, Oklahoma, as the 
``Mickey Mantle Post Office Building''; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. INHOFE. Mr. President, I rise today along with my colleague, Tom 
Coburn, to proudly introduce legislation to designate the facility of 
the United States Postal Service located at 301 Commerce Street in 
Commerce, OK as the ``Mickey Mantle Post Office.''
  Mickey Mantle emulates the Oklahoma spirit of hard work, charity, and 
sportsmanship. He is a shining example of how commitment and dedication 
can lead to great success. I seek to name the post office in Commerce, 
Oklahoma, in Mickey Mantle's honor. He is still known to Commerce by 
the nicknames ``Commerce Comet'' or ``Commerce Kid''.
  At age 4, Mickey Mantle moved with his family to Commerce where he 
grew up, having been born in Spavinaw, OK. By his father who was an 
amateur player and fervent fan, Mickey Mantle was named in honor of 
Mickey Cochrane, the Hall of Fame catcher from the Detroit Tigers.
  Signing with the New York Yankees in 1949, Mantle made his Major 
League Debut in 1951. He played his entire Major League career with the 
Yankees. He was a twenty-time All Star and named American League MVP 
three times. Mantle was a part of 12 pennant winners and 7 World 
Championship clubs. Some of Mantle's records still hold today. He holds 
the record for

[[Page 233]]

most World Series home runs 18, runs batted in 40, runs 42, walks 43, 
extra-base hits 26, and total bases 123.
  Mantle announced his retirement on March 1, 1969. He actually retired 
on Mickey Mantle Day, June 8, 1969. In addition to the retirement of 
his uniform number 7, Mantle was given a plaque that would hang on the 
center field wall at Yankee Stadium, near the monuments to Babe Ruth, 
Lou Gehrig and Miller Huggins. In 1974, as soon as he was eligible, he 
was inducted into the Baseball Hall of Fame demonstrating his 
importance to baseball and community.
  Sadly, Mickey Mantle's father died of cancer at the age of 39, just 
as his son was starting his career. Mantle said one of the great 
heartaches of his life was that he never told his father he loved him.
  After a bout with liver cancer himself, Mickey Mantle was given a few 
precious extra weeks of life due to a liver transplant. The baseball 
great was overwhelmed by the selfless gift of a liver from a stranger; 
therefore, Mickey became determined to give something back at the end 
of his life. Thus, in 1995, the year he died, the Mickey Mantle 
Foundation was established to promote organ and tissue donation, and 
Mickey Mantle will be remembered for something more than his heroic 
baseball career.
  I encourage my colleagues to join me in support of this legislation 
as we commemorate an outstanding athlete so that future generations 
will be as inspired by his example of sportsmanship and charity as we 
have been.
                                 ______
                                 
      Mr. INHOFE (for himself and Mr. DeMint):
  S. 173. A bill to amend title XVIII of the Social Security Act to 
establish Medicare Health Savings Accounts; to the Committee on 
Finance.
  Mr. INHOFE. Mr. President, I introduce a bill to establish Medicare 
Health Savings Account, HSAs. This bill will make HSAs available under 
Medicare in lieu of Medicare Medical Savings Account, MSAs. I have long 
been dedicated to quality health care and believe that seniors should 
have the ability to make their own decisions regarding their health 
care, so they can receive the health care they need and deserve. As a 
senior myself, I appreciate how imperative it is that we seniors be 
provided with a wide array of choices.
  My desire to see my fellow Oklahomans and all Americans receive the 
best possible health care is evidenced by my involvement in various 
health-related issues. I have always been a champion of rural health 
care providers. In 1997, I was one of the few Republicans to vote 
against the Balanced Budget Act because of its lack of support for 
rural hospitals. At that time, I made a commitment to not allow our 
rural hospitals to be closed and am pleased we finally addressed that 
important issue in the Medicare Modernization Act of 2003 by providing 
great benefits for rural health care providers as well as a voluntary 
prescription drug benefit to seniors. In 2003, I also co-sponsored the 
Health Care Access and Rural Equity Act, to protect and preserve access 
of Medicare beneficiaries to health care in rural regions.
  In order to assist my State and other States suffering from large 
reduction in their Federal Medical Assistance Percentage, FMAP for 
Medicaid, I introduced a bill in the 109th Congress to apply a State's 
FMAP from fiscal year 2005 to fiscal years 2006 through 2014. The 
purpose of this legislation is to prevent drastic reductions in FMAP 
while revision of the formula itself is considered.
  I am a strong advocate of medical liability reform and have 
consistently been an original cosponsor of the Medical Care Access 
Protection Act and the Healthy Mothers and Healthy Babies Access to 
Care Act. These bills protect patients' access to quality and 
affordable health care by reducing the effects of excessive liability 
costs. I am committed to this vital reform that would alleviate the 
burden placed on physicians and patients by excessive medical 
malpractice lawsuits.
  I have also worked with officials from the Centers for Medicare and 
Medicaid Services, CMS to expand access to life-saving Implantable 
Cardiac Defibrillators and many other numerous regulations that would 
affect my rural State such as the 250 yard-rule for Critical Access 
Hospitals.
  As a supporter of safety and medical research, I have co-sponsored 
legislation to increase the supply of pancreatic islet cells for 
research and a bill to take the abortion pill RU-486 off the market in 
the United States.
  In response to the shortages of flu vaccines experienced in years 
past, I introduced the Flu Vaccine Incentive Act to help prevent any 
future shortages in flu vaccines in both the 108th and 109th 
Congresses. My bill removed suffocating price controls from government 
purchasing of the flu vaccine while encouraging more companies to enter 
the market. Also, my bill freed American companies to enter the flu 
vaccine industry by giving them an investment tax credit towards the 
construction of flu vaccine production facilities.
  As a result of my sister's death from cancer and a treatment we 
learned about not accessible in the United States that might have saved 
her life, Senator Sam Brownback and I introduced the Access, 
Compassion, Care and Ethics for Seriously-ill Patients Act, ACCESS, in 
the 109th Congress. This bill offered a three-tiered approval system 
for treatments showing efficacy during clinical trials, for use by the 
seriously ill patient population. Seriously ill patients, who have 
exhausted all alternatives and are seeking new treatment options, would 
be offered access to these treatments with the consent of their 
physician. I was pleased to learn that the Food and Drug Administration 
has announced a proposal to offer expanded access to drugs to 
terminally ill patients.
  My resolution to designate April 8, 2006, as ``National Cushing's 
Syndrome Awareness Day'' was passed by unanimous consent in the 109th 
Congress. The intent of this resolution is to raise awareness of 
Cushing's Syndrome, a debilitating disorder that affects an estimated 
10 to 15 people per million. It is an endocrine or hormonal disorder 
caused by prolonged exposure of the body's tissue to high levels of the 
hormone cortisol.
  It was brought to my attention thanks to a staffer with Celiac 
Disease and an Oklahoma Celiac Support Group that there is a great need 
to raise awareness of celiac disease; therefore, I worked to get my 
resolution passed by unanimous consent to designate September 13, 2006 
as National Celiac Disease Awareness Day. Celiac disease is an 
autoimmune disorder and a malabsorption disease that affects an 
estimated 2.2 million Americans. Celiac disease is, essentially, 
intolerance to gluten, a protein found in wheat, rye, oats and barley, 
as well as some medicines and vitamins.
  Additionally, I have consistently co-sponsored yearly resolutions 
designating a day in October as ``National Mammography Day'' and a week 
in August as ``National Health Center Week'' to raise awareness 
regarding both these issues and have supported passage and enactment of 
numerous health-care-related bills, such as the Rural Health Care 
Capital Access Act of 2006, which extends the exemption respecting 
required patient days for critical access hospitals under the federal 
hospital mortgage insurance program.
  As the Federal Government invests in improving hospitals and 
healthcare initiatives, I have fought hard to ensure that Oklahoma gets 
its fair share. Specifically, over the past 3 years, I have helped to 
secure $5.2 million in funding for the Oklahoma Medical Research 
Foundation, the Oklahoma State Department of Health planning initiative 
for a rural telemedicine system, the INTEGRIS Healthcare System, the 
University of Oklahoma Health Sciences Center, the Oklahoma Center for 
the Advancement of Science and Technology, St. Anthony's Heart 
Hospital, the Hillcrest Healthcare System, and the Morton Health 
Center.
  As a long supporter of HSAs, I believe all people should have access 
to them since they provide great flexibility in the health market and 
allow individuals to have control over their own health care. Medicare 
MSAs have

[[Page 234]]

existed since January 1, 1997, revised in December of 2003, but they 
have not worked. No insurer whatsoever has yet offered any Medicare MSA 
under the current law. To fix this problem, my legislation creates a 
new HSA program under Medicare that incorporates a high deductible 
health plan and an HSA account while dissolving the existing Medicare 
MSA.
  In tandem with my efforts, the Centers for Medicare and Medicaid 
Service, CMS, are launching an HSA demonstration project that would 
test allowing health insurance companies to offer Medicare 
beneficiaries products similar to HSA. This activity points to the 
Administration's support of HSAs and desire to see all seniors receive 
the best possible coverage.
  As the July 13, 2006 edition of The Hill, explains, ``no legislation 
is pending that would integrate HSAs into the Medicare program .  .  
.'' Thus, my legislation is necessary because real Medicare HSA reform 
is needed in order for seniors to have true flexibility and freedom of 
choice in their health care.
  Under my bill, beneficiaries who choose the HSA option will receive 
an annual amount that is equal to 95 percent of the annual Medicare 
Advantage, MA, capitation rate with respect to the individual's MA 
payment area. These funds provided through the Medicare HSA program can 
only be used by the beneficiary for the following purposes: as a 
contribution into an HSA or for payment of high deductible health plan 
premiums. However, the individual also has the opportunity to deposit 
personal funds in to the Medicare HSA.
  My bill also guarantees that seniors be notified of the amount they 
will receive 90 days before receipt to ensure they have time to 
determine the best and most appropriate HSA to accommodate needs. The 
bill also allows the Secretary of Health and Human Services to deal 
with fraud appropriately and requires providers to accept payment by 
individuals enrolled in a Medicare HSA just as they would with an 
individual enrolled in traditional Medicare.
  Please join me in supporting this important legislation to give our 
seniors more choices regarding their health care.
                                 ______
                                 
      By Mr. INHOFE:
  S. 174. A bill to amend the Head Start Act to require parental 
consent for nonemergency intrusive physical examinations; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. INHOFE. Mr. President, I introduce legislation requiring parental 
consent for intrusive physical exams administered under the Head Start 
program.
  Young children attending Head Start programs should not be subjected 
to these intrusive physical exams without the prior knowledge or 
consent of their parents. While the Department of Health and Human 
Services has administered general exam guidelines to agencies, the U.S. 
Code is not clear about prohibiting them without parental consent. To 
clarify the Code, my bill will not allow any non-emergency intrusive 
exam by a Head Start agency without parental consent. This would not 
include exams such as hearing, vision or scoliosis screenings.
  This issue was brought to my attention by some of my constituents 
from Tulsa, OK, who felt their rights were violated when their children 
were subjected to genital exams and blood tests without their consent. 
I am pleased to see that the Rutherford Institute has taken an interest 
in this crucial issue and are representing my constituents.
  As a father and grandfather, I believe it is vital for parents to be 
informed about what is happening to their children in the classroom. I 
hope that my colleagues will join me in support of this important bill.
                                 ______
                                 
      By Mrs. HUTCHISON (for herself, Mr. Cornyn, Mr. Alexander, Mr. 
        Ensign, Mr. Enzi, Mr. Martinez, Mr. Thune, and Mr. Stevens):
  S. 180. A bill to provide a permanent deduction for State and local 
general sales taxes; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to 
permanently correct an injustice in the tax code that has harmed 
citizens in many States of this great Nation.
  State and local governments have various alternatives for raising 
revenue.
  Some levy income taxes, some use sales taxes, and others use a 
combination of the two. The citizens who pay State and local income 
taxes have been able to offset some of their federal income taxes by 
receiving a deduction for those State and local income taxes. Before 
1986, taxpayers also had the ability to deduct their sales taxes.
  The philosophy behind these deductions is simple: people should not 
have to pay taxes on their taxes. The money that people must give to 
one level of Government should not also be taxed by another level of 
Government.
  Unfortunately, citizens of some States were treated differently after 
1986 when the deduction for State and local sales taxes was eliminated. 
This discriminated against those living in States, such as my home 
State of Texas, with no income taxes. It is important to remember the 
lack of an income tax does not mean citizens in these States do not pay 
State taxes; revenues are simply collected differently.
  It is unfair to give citizens from some States a deduction for the 
revenue they provide their State and local governments, while not doing 
the same for citizens from other States. Federal tax law should not 
treat people differently on the basis of State residence and differing 
tax collection methods, and it should not provide an incentive for 
States to establish income taxes over sales taxes.
  This discrepancy had a significant impact on Texas. According to the 
Texas Comptroller, the sales tax deduction saves a family of four $310 
a year, or a total of about $1 billion each year for the State's 
residents who itemize deductions. The ability of taxpayers to deduct 
their sales taxes will lead to the creation of more than 16,500 new 
jobs and the addition of $920 million in State economic activity.
  Recognizing the inequity in the tax code, Congress reinstated the 
sales tax deduction in 2004 and authorized it for two years. Last year, 
we extended the sales tax deduction for an additional two years. As a 
result of our efforts, the 55 million of us in the eight States with a 
sales tax but no income tax are no longer discriminated against in the 
tax code. Unfortunately, the deduction is only in effect through 2007, 
and we must act to prevent the inequity from returning.
  The legislation I am offering today will fix this problem for good by 
making the State and local sales tax deduction permanent. This will 
permanently end the discrimination suffered by my fellow Texans and 
citizens of other States who do not have the option of an income tax 
deduction.
  This legislation is about reestablishing equity to the tax code and 
defending the important principle of eliminating taxes on taxes. Last 
year, the Senate voted 75-25 to instruct conferees to make this 
deduction permanent. I hope my fellow Senators will once again support 
this effort and pass this legislation.
                                 ______
                                 
      By Mrs. HUTCHISON (for herself, Mr. Cornyn, Mr. Bunning, Mr. 
        Ensign, Mr. Hagel, Mr. Martinez, Mr. Vitter, Mr. Chambliss, Mr. 
        Stevens, and Mr. Brownback):
  S. 181. A bill to provide permanent tax relief from the marriage 
penalty; to the Committee on Finance.
  Mrs. HUTCHISON. Mr. President, I am pleased to introduce a bill to 
provide permanent tax relief from the marriage penalty--the most 
egregious, anti-family provision that has been in the tax code. One of 
my highest priorities in the United States Senate has been to relieve 
American taxpayers of this punitive burden.
  We have made important strides to eliminate this unfair tax and 
provide marriage penalty relief by raising the standard deduction and 
enlarging the 15 percent tax bracket for married joint filers to twice 
that of single filers. Before these provisions were

[[Page 235]]

changed, 44 million married couples, including 2.4 million Texas 
families, paid an average penalty of $1,480.
  Enacting marriage penalty relief was a giant step for tax fairness, 
but it may be fleeting. Even as married couples use the money they now 
save to put food on the table and clothes on their children, a tax 
increase looms in the future. Since the 2001 tax relief bill was 
restricted, the marriage penalty provisions will only be in effect 
through 2010. In 2011, marriage will again be a taxable event and 43 
percent of married couples will again pay more in taxes unless we act 
decisively. Given the challenges many families face in making ends 
meet, we must make sure we do not backtrack on this important reform.
  The benefits of marriage are well established, yet, without marriage 
penalty relief, the tax code provides a significant disincentive for 
people to walk down the aisle. Marriage is a fundamental institution in 
our society and should not be discouraged by the IRS. Children living 
in a married household are far less likely to live in poverty or to 
suffer from child abuse. Research indicates these children are also 
less likely to be depressed or have developmental problems. Scourges 
such as adolescent drug use are less common in married families, and 
married mothers are less likely to be victims of domestic violence.
  We should celebrate marriage, not penalize it. The bill I am offering 
would make marriage penalty relief permanent, because marriage should 
not be a taxable event. I call on the Senate to finish the job we 
started and make marriage penalty relief permanent today.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself, Mrs. Hutchison, Mr. Feingold, Mr. 
        Leahy, Ms. Snowe, Mr. Kennedy, and Mr. Durbin):
  S. 182. A bill to authorize the Attorney General to make grants to 
improve the ability of State and local governments to prevent the 
abduction of children by family members, and for other purposes; to the 
Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, I am pleased to join Senators 
Hutchison, Feingold, Leahy, Snowe, Kennedy and Durbin in reintroducing 
the ``Family Abduction Prevention Act,'' a bill to help the thousands 
of children who are abducted by a family member each year.
  We introduced this legislation last Congress, and it passed the 
Senate by unanimous consent, but unfortunately, the bill was never 
taken up by the House. This is important and needed legislation.
  Family abductions are the most common form of abduction, yet they 
receive little attention, and law enforcement agencies too often don't 
treat them as the serious crimes that they are--too often dismissing 
the seriousness of these cases as family disputes.
  The Family Abduction Prevention Act of 2007 would provide grants to 
States for the costs associated with family abduction prevention. 
Specifically, it would assist States with costs associated with the 
extradition of individuals suspected of committing the crime of family 
abduction, costs borne by State and local law enforcement agencies to 
investigate cases of missing children, training for local and State law 
enforcement agencies in responding to family abductions, outreach and 
media campaigns to educate parents on the dangers of family abductions, 
and assistance to public schools to help with costs associated with 
``flagging'' school records.
  Each year, over 200,000 children--78 percent of all abductions in the 
United States--are kidnapped by a family member, usually a non-
custodial parent.
  More than half of the abducting parents have a history of domestic 
violence, substance abuse, or a criminal record.
  Unfortunately, many State and local law enforcement agencies 
frequently treat these abductions as personal, family disputes. 
Approximately 70 percent of law enforcement agencies lack written 
guidelines on responding to family abduction and many are not informed 
about the Federal laws available to help in the search and recovery of 
an abducted child.
  Too often law enforcement assumes that a child is not in grave danger 
if the abductor is a family member. Unfortunately, this is not always 
true, and this assumption can endanger a child's life. Research has 
shown that the most common motive in family abduction cases is revenge 
against the other parent--not love for the child.
  The effects of family abduction on children are often traumatic. 
Abducted children suffer from severe separation anxiety. To break 
emotional ties with the left-behind parent, some abductors will coach a 
child into falsely disclosing abuse by the other parent to perpetuate 
their control during or after the abduction. And in many cases, the 
child is told that the other parent is dead or did not really love 
them.
  For example, on Takeroot.org, a website devoted to the victims of 
family abductions, a young lady named Kelly told the story of how her 
parents were going through a bitter divorce and custody battle when she 
was nine, and her brother was six. Her dad picked them up for a regular 
visit, but then just kept on driving.
  Kelly says, ``If I close my eyes, I can still see my mother waving 
goodbye as we watched her from the rear window of our father's truck. . 
. . Little did we know that it would be close to a year before we would 
see her again.''
  Days later, Kelly started asking her father why they were continuing 
to drive--and why they were sleeping in the truck. After a while, her 
father finally broke his silence and screamed at her that her mother 
had given him the children because she didn't love them and that they 
would just have to learn to deal with it.
  For the next eleven months, they lived like fugitives on the run, 
often dirty and hungry, ``with very little money and even less love,'' 
according to Kelly. ``We left in the middle of the night, never saying 
goodbye to friends we may have made or people we met. I still see those 
people in my mind's eye. I miss them. . . . Mostly, I miss the child I 
was, the child I lost.''
  The harm caused by these abductions cannot easily be put into words. 
In many family abduction cases, children are given new identities at an 
age when they are still developing a sense of who they are. In extreme 
cases, the child's gender is masked to further avoid detection.
  Abducting parents also often deprive their children of education and 
much-needed medical attention to avoid the risk of being tracked via 
school or medical records.
  As the child adapts to a fugitive's lifestyle, deception becomes an 
integral part of their life. The child is taught to fear those that one 
would normally trust, such as police, doctors, teachers and counselors. 
Even after recovery, the child often has a difficult time growing into 
adulthood.
  In some cases, the abducting parent leaves the child with strangers, 
or locations where their health, safety, and other basic needs may be 
extremely compromised.
  For example, in Lafayette, CA, two girls abducted by their mother 
ended up under the control of a convicted child molester. When Kelli 
Nunez absconded with her daughters, 6-year-old Anna and 4-year-old 
Emily, in violation of court custody orders, she drove her daughters 
cross-country, and then returned by plane to San Francisco, where she 
handed the children to someone holding a coded sign at the airport.
  The person holding the sign belonged to a helpful-sounding 
organization called the California Family Law Center--but the 
organization was actually led by Florencio Maning, a convicted child 
molester. For six months, Maning orchestrated the concealment of the 
Nunez girls with help from other people.
  Luckily, police were able to track down the girls, and they were 
successfully reunited with their father. That success may have been due 
to the fact that California has been the Nation's leader in fighting 
family abduction.
  In my State, we have a system that places the responsibility for the 
investigation and resolution of family abduction cases with the County 
District

[[Page 236]]

Attorney's Office. Each California County District Attorney's Office 
has an investigative unit that is focused on family abduction cases. 
These investigators only handle family abduction cases and become 
experts in the process.
  However, most States lack the training and resources to effectively 
recover children who are kidnapped by a family member. According to a 
study conducted by Plass, Finkelhor and Hotaling, 62 percent of parents 
surveyed said they were ``somewhat'' or ``very'' dissatisfied with 
police handling of their family abduction cases.
  The ``Family Abduction Prevention Act of 2007'' would be an important 
first step in addressing this serious issue.
  I urge my colleagues to pass this important legislation, just as you 
did in the 109th Congress.
                                 ______
                                 
      By Mr. STEVENS:
  S. 183. A bill to require the establishment of a corporate average 
fuel economy standard for passenger automobiles of 40 miles per gallon 
2017, and for other purpose; to the Committee on Commerce, Science, and 
Transportation.
  Mr. STEVENS. Mr. President, the bill that I introduce today features 
language that would remove the legal ambiguity that for years has 
inhibited the Secretary of Transportation from raising fuel economy 
standards for passenger cars, and the measure would mandate that a fuel 
economy standard for passenger cars be set at 40 miles per gallon by 
model year 2017. By providing authority to increase standards for 
passenger cars, and requiring a specific fuel economy standard target, 
this bill would provide consumers with fuel savings at the pump, limit 
the Nation's dependence on foreign oil, and significantly reduce 
greenhouse gas emissions.
  The bill would remove from the current Corporate Average Fuel Economy 
(CAFE) statute the requirement that the Secretary of Transportation 
submit to Congress any proposal to increase or decrease fuel economy 
standards. This requirement has been deemed unconstitutional by the 
U.S. Supreme Court. This legal hurdle, coupled with years of Federal 
funding legislation precluding the Secretary from reviewing CAFE, has 
prevented increases in fuel economy in the domestic passenger vehicle 
fleet.
  The Secretary recently completed a dramatic reform of the fuel 
economy standards for the light-truck fleet, and he might have made 
similar reforms to the passenger fleet but for the statutory ambiguity 
of the current CAFE statute. I applaud the Secretary for his recent 
CAFE increases for light trucks, and I commend the administration for 
its seven light truck CAFE increases in the last six years. But the 
time has come for the Secretary to increase fuel economy standards for 
passenger cars as well.
  In 2000, the National Academy of Sciences (NAS) issued a report that 
concluded that the benefits resulting from CAFE since its 
implementation in 1978 clearly warrant Government intervention to 
ensure fuel economy levels beyond what may result from market forces 
alone. The NAS panel found that CAFE has led to marked improvements in 
reducing greenhouse gas emissions, fuel consumption, and dependence on 
foreign oil.
  Mr. President, the United States imports almost 11 million barrels of 
crude oil every day, compared with only five million produced here at 
home. And over two million imported barrels hail from the Persian Gulf 
region. The terrorist attacks waged on this country on September 11, 
2001, and the ongoing turmoil in the Middle East has brought into focus 
the need to reduce our dependence on all foreign oil. The savings 
achieved by increasing fuel economy standards for the entire U.S. 
passenger vehicle fleet is essential if we are to increase our energy 
independence and national security.
  This bill also would require the Secretary of Commerce to create a 
national registry system that, for the first time, would enable the 
automobile industry to trade fuel economy credits with other industries 
that generate greenhouse gas emissions. Participation in the registry 
would be voluntary, and any entity conducting business in the United 
States would be eligible to utilize the services of the registry. 
Therefore, automobile manufacturers would be able to contribute or 
purchase emissions credits with other industries that generate 
greenhouse gases in order to achieve compliance with CAFE and emissions 
standards.
  Mr. President, any change to fuel economy standards requires the 
careful balance of many factors, including national security, consumer 
preference, domestic employment, as well as the need for powerful and 
durable vehicles in rural America, including my home State of Alaska. 
The amendment would provide the Secretary the authority to balance 
these considerations, and to make the appropriate and necessary fuel 
economy increases. I urge my colleagues to support this legislation.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 183

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Improved 
     Passenger Automobile Fuel Economy Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                    TITLE I--40 MPG STANDARD BY 2017

Sec. 101. Cafe standards for passenger automobiles.
Sec. 102. Fuel economy standard credits.
Sec. 103. Authorization of appropriations.
Sec. 104. Effective date.

    TITLE II--MARKET--BASED INITIATIVES FOR GREENHOUSE GAS REDUCTION

Sec. 201. Market-based initiatives. 
Sec. 202. Implementing panel.
Sec. 203. Definitions.

                    TITLE I--40 MPG STANDARD BY 2017

     SEC. 101. CAFE STANDARDS FOR PASSENGER AUTOMOBILES.

       (a) Average Fuel Economy Standards for Automobiles.--
     Section 32902 of title 49, United States Code, is amended--
       (1) by striking subsections (b) and (c) and inserting the 
     following:
       ``(b) Passenger Automobiles.--
       ``(1) In general.--At least 18 months before the beginning 
     of each model year, the Secretary of Transportation shall 
     prescribe by regulation average fuel economy standards for 
     passenger automobiles manufactured by a manufacturer in that 
     model year. Each standard shall be the maximum feasible 
     average fuel economy level that the Secretary decides the 
     manufacturers can achieve in that model year. The Secretary 
     may prescribe separate standards for different classes of 
     passenger automobiles.
       ``(2) Minimum standard.--Except as provided in paragraph 
     (3), in prescribing a standard under paragraph (1), the 
     Secretary shall ensure that no manufacturer's standard for a 
     particular model year is less than the greater of--
       ``(A) the standard in effect on the date of enactment of 
     the Improved Passenger Automobile Fuel Economy Act of 2007; 
     or
       ``(B) a standard established in accordance with the 
     requirement of section 104(c)(2) of that Act.
       ``(3) 40 miles per gallon standard for model year 2017.--
     The Secretary shall prescribe an average fuel economy 
     standard for passenger automobiles manufactured by a 
     manufacturer in model year 2017 of 40 miles per gallon. If 
     the Secretary determines that more than 1 manufacturer is not 
     reasonably expected to achieve that standard, the Secretary 
     shall notify the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Energy and Commerce of that determination.
       ``(c) Flexibility of Authority.--
       ``(1) In general.--The authority of the Secretary to 
     prescribe by regulation average fuel economy standards for 
     automobiles under this section includes the authority to 
     prescribe standards based on one or more vehicle attributes 
     that relate to fuel economy, and to express the standards in 
     the form of a mathematical function. The Secretary may issue 
     a regulation prescribing standards for one or more model 
     years.
       ``(2) Required lead-time.--When the Secretary prescribes an 
     amendment to a standard under this section that makes an 
     average fuel economy standard more stringent, the Secretary 
     shall prescribe the amendment at least 18 months before the 
     beginning of the model year to which the amendment applies.
       ``(3) No across-the-board increases.--When the Secretary 
     prescribes a standard, or prescribes an amendment under this 
     section that changes a standard, the standard may not be 
     expressed as a uniform percentage increase from the fuel-
     economy performance of

[[Page 237]]

     automobile classes or categories already achieved in a model 
     year by a manufacturer.'';
       (2) by inserting ``motor vehicle safety, emissions,'' in 
     subsection (f) after ``economy,'';
       (3) by striking ``energy.'' in subsection (f) and inserting 
     ``energy and reduce its dependence on oil for 
     transportation.'';
       (4) by striking subsection (j) and inserting the following:
       ``(j) Notice of Final Rule.--Before taking final action on 
     a standard or an exemption from a standard under this 
     section, the Secretary of Transportation shall notify the 
     Secretary of Energy and the Administrator of the 
     Environmental Protection Agency and provide them a reasonable 
     time to comment on the standard or exemption.''; and
       (5) by adding at the end thereof the following:
       ``(k) Costs-Benefits.--The Secretary of Transportation may 
     not prescribe an average fuel economy standard under this 
     section that imposes marginal costs that exceed marginal 
     benefits, as determined at the time any change in the 
     standard is promulgated.''.
       (b) Exemption Criteria.--The first sentence of section 
     32904(b)(6)(B) of title 49, United States Code, is amended--
       (1) by striking ``exemption would result in reduced'' and 
     inserting ``manufacturer requesting the exemption will 
     transfer'';
       (2) by striking ``in the United States'' and inserting 
     ``from the United States''; and
       (3) by inserting ``because of the grant of the exemption'' 
     after ``manufacturing''.
       (c) Conforming Amendments.--
       (1) Section 32902 of title 49, United States Code, is 
     amended--
       (A) by striking ``or (c)'' in subsection (d)(1);
       (B) by striking ``(c),'' in subsection (e)(2);
       (C) by striking ``subsection (a) or (d)'' each place it 
     appears in subsection (g)(1) and inserting ``subsection (a), 
     (b), or (d)'';
       (D) by striking ``(1) The'' in subsection (g)(1) and 
     inserting ``The'';
       (E) by striking subsection (g)(2); and
       (F) by striking ``(c),'' in subsection (h) and inserting 
     ``(b),''.
       (2) Section 32903 of such title is amended by striking 
     ``section 32902(b)-(d)'' each place it appears and inserting 
     ``subsection (b) or (d) of section 32902''.
       (3) Section 32904(a)(1)(B) of such title is amended by 
     striking ``section 32902(b)-(d)'' and inserting ``subsection 
     (b) or (d) of section 32902''.
       (4) The first sentence of section 32909(b) of such title is 
     amended to read ``The petition must be filed not later than 
     59 days after the regulation is prescribed.''.
       (5) Section 32917(b)(1)(B) of such title is amended by 
     striking ``or (c)''.

     SEC. 102. FUEL ECONOMY STANDARD CREDITS.

       (a) In General.--Section 32903 of title 49, United States 
     Code, is amended by striking the second sentence of 
     subsection (a) and inserting ``The credits--
       ``(1) may be applied to any of the 3 model years 
     immediately following the model year for which the credits 
     are earned; or
       ``(2) transferred to the registry established under section 
     201 of the Improved Passenger Automobile Fuel Economy Act of 
     2007.''.
       (b) Greenhouse Gas Credits Applied to CAFE Standards.--
     Section 32903 of title 49, United States Code, is amended by 
     adding at the end the following:
       ``(g) Greenhouse Gas Credits.--
       ``(1) In general.--A manufacturer may apply credits 
     purchased through the registry established by section 201 of 
     the Improved Passenger Automobile Fuel Economy Act of 2007 
     toward any model year after model year 2010 under subsection 
     (d), subsection (e), or both.
       ``(2) Limitation.--A manufacturer may not use credits 
     purchased through the registry to offset more than 10 percent 
     of the fuel economy standard applicable to any model year.''.

     SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Transportation such sums as may be necessary to carry out 
     this title and chapter 329 of title 49, United States Code, 
     as amended by this title.

     SEC. 104. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     title, and the amendments made by this title, take effect on 
     the date of enactment of this Act.
       (b) Transition for Passenger Automobile Standard.--
     Notwithstanding subsection (a), and except as provided in 
     subsection (c)(2), until the effective date of a standard for 
     passenger automobiles that is issued under the authority of 
     section 32902(b) of title 49, United States Code, as amended 
     by this Act, the standard or standards in place for passenger 
     automobiles under the authority of section 32902 of that 
     title, as that section was in effect on the day before the 
     date of enactment of this Act, shall remain in effect.
       (c) Rulemaking.--
       (1) Initiation of rulemaking under amended law.--Within 60 
     days after the date of enactment of this Act, the Secretary 
     of Transportation shall initiate a rulemaking for passenger 
     automobiles under section 32902(b) of title 49, United States 
     Code, as amended by this Act.
       (2) Amendment of existing standard.--Until the Secretary 
     issues a final rule pursuant to the rulemaking initiated in 
     accordance with paragraph (1), the Secretary shall amend the 
     average fuel economy standard prescribed pursuant to section 
     32092(b) of title 49, United States Code, with respect to 
     passenger automobiles in model years to which the standard 
     adopted by such final rule does not apply.

    TITLE II--MARKET-BASED INITIATIVES FOR GREENHOUSE GAS REDUCTION

     SEC. 201. MARKET-BASED INITIATIVES.

       (a) Establishment of Registry for Voluntary Trading 
     Systems.--The Secretary of Commerce shall establish a 
     national registry system for greenhouse gas trading among 
     industry under which emission reductions from the applicable 
     baseline are assigned unique identifying numerical codes by 
     the registry. Participation in the registry is voluntary. Any 
     entity conducting business in the United States may register 
     its emission results, including emissions generated outside 
     of the United States, on an entity-wide basis with the 
     registry, and may utilize the services of the registry.
       (b) Purposes.--The purposes of the national registry are--
       (1) to encourage voluntary actions to reduce greenhouse gas 
     emissions and increase energy efficiency, including 
     increasing the fuel economy of passenger automobiles and 
     light trucks and reducing the reliance by United States 
     markets on petroleum produced outside the United States used 
     to provide vehicular fuel;
       (2) to enable participating entities to record voluntary 
     greenhouse gas emissions reductions; in a consistent format 
     that is supported by third party verification;
       (3) to encourage participants involved in existing 
     partnerships to be able to trade emissions reductions among 
     partnerships;
       (4) to further recognize, publicize, and promote 
     registrants making voluntary and mandatory reductions;
       (5) to recruit more participants in the program; and
       (6) to help various entities in the nation establish 
     emissions baselines.
       (c) Functions.--The national registry shall carry out the 
     following functions:
       (1) Referrals.--Provide referrals to approved providers for 
     advice on--
       (A) designing programs to establish emissions baselines and 
     to monitor and track greenhouse gas emissions; and
       (B) establishing emissions reduction goals based on 
     international best practices for specific industries and 
     economic sectors.
       (2) Uniform reporting format.--Adopt a uniform format for 
     reporting emissions baselines and reductions established 
     through--
       (A) the Director of the National Institute of Standards and 
     Technology for greenhouse gas baselines and reductions 
     generally; and
       (B) the Secretary of Transportation for credits under 
     section 32903 of title 49, United States Code.
       (3) Record maintenance.--Maintain a record of all emission 
     baselines and reductions verified by qualified independent 
     auditors.
       (4) Encourage participation.--Encourage organizations from 
     various sectors to monitor emissions, establish baselines and 
     reduction targets, and implement efficiency improvement and 
     renewable energy programs to achieve those targets.
       (5) Public awareness.--Recognize, publicize, and promote 
     participants that--
       (A) commit to monitor their emissions and set reduction 
     targets;
       (B) establish emission baselines; and
       (C) report on the amount of progress made on their annual 
     emissions.
       (d) Transfer of Reductions.--The registry shall--
       (1) allow for the transfer of ownership of any reductions 
     realized in accordance with the program; and
       (2) require that the registry be notified of any such 
     transfer within 30 days after the transfer is effected.
       (e) Future Considerations.--Any reductions achieved under 
     this program shall be credited against any future mandatory 
     greenhouse gas reductions required by the government. Final 
     approval of the amount and value of credits shall be 
     determined by the agency responsible for the implementation 
     of the mandatory greenhouse gas emission reduction program, 
     except that credits under section 32903 of title 49, United 
     States Code, shall be determined by the Secretary of 
     Transportation. The Secretary of Commerce shall by rule 
     establish an appeals process, that may incorporate an 
     arbitration option, for resolving any dispute arising out of 
     such a determination made by that agency.
       (f) CAFE Standards Credits.--The Secretary of 
     Transportation shall work with the Secretary of Commerce and 
     the implementing panel established by section 202 to 
     determine the equivalency of credits earned under section 
     32903 of title 49, United States Code, for inclusion in the 
     registry. The Secretary shall by rule establish an appeals 
     process, that may incorporate an arbitration option, for 
     resolving any dispute arising out of such a determination.

     SEC. 202. IMPLEMENTING PANEL.

       (a) Establishment.--There is established within the 
     Department of Commerce an implementing panel.
       (b) Composition.--The panel shall consist of--

[[Page 238]]

       (1) the Secretary of Commerce or the Secretary's designee, 
     who shall serve as Chairperson;
       (2) the Secretary of Transportation or the Secretary's 
     designee; and
       (3) 1 expert in the field of greenhouse gas emissions 
     reduction, certification, or trading from each of the 
     following agencies--
       (A) the Department of Energy;
       (B) the Environmental Protection Agency;
       (C) the Department of Agriculture;
       (D) the National Aeronautics and Space Administration;
       (E) the Department of Commerce; and
       (F) the Department of Transportation.
       (c) Experts and Consultants.--Any member of the panel may 
     secure the services of experts and consultants in accordance 
     with the provisions of section 3109 of title 5, United States 
     Code, for greenhouse gas reduction, certification, and 
     trading experts in the private and non-profit sectors and may 
     also utilize any grant, contract, cooperative agreement, or 
     other arrangement authorized by law to carry out its 
     activities under this subsection.
       (d) Duties.--The panel shall--
       (1) implement and oversee the implementation of this 
     section;
       (2) promulgate--
       (A) standards for certification of registries and operation 
     of certified registries; and
       (B) standards for measurement, verification, and recording 
     of greenhouse gas emissions and greenhouse gas emission 
     reductions by certified registries;
       (3) maintain, and make available to the public, a list of 
     certified registries; and
       (4) issue rulemakings on standards for measuring, 
     verifying, and recording greenhouse gas emissions and 
     greenhouse gas emission reductions proposed to the panel by 
     certified registries, through a standard process of issuing a 
     proposed rule, taking public comment for no less than 30 
     days, then finalizing regulations to implement this act, 
     which will provide for recognizing new forms of acceptable 
     greenhouse gas reduction certification procedures.
       (e) Certification and Operation Standards.--The standards 
     promulgated by the panel shall include--
       (1) standards for ensuring that certified registries do not 
     have any conflicts of interest, including standards that 
     prohibit a certified registry from--
       (A) owning greenhouse gas emission reductions recorded in 
     any certified registry; or
       (B) receiving compensation in the form of a commission 
     where sources receive money for the total number of tons 
     certified;
       (2) standards for authorizing certified registries to enter 
     into agreements with for-profit persons engaged in trading of 
     greenhouse gas emission reductions, subject to paragraph (1); 
     and
       (3) such other standards for certification of registries 
     and operation of certified registries as the panel determines 
     to be appropriate.
       (f) Measurement, Verification, and Recording Standards.--
     The standards promulgated by the panel shall provide for, in 
     the case of certified registries--
       (1) ensuring that certified registries accurately measure, 
     verify, and record greenhouse gas emissions and greenhouse 
     gas emission reductions, taking into account--
       (A) boundary issues such as leakage and shifted 
     utilization; and
       (B) such other factors as the panel determines to be 
     appropriate;
       (2) ensuring that--
       (A) certified registries do not double-count greenhouse gas 
     emission reductions; and
       (B) if greenhouse gas emission reductions are recorded in 
     more than 1 certified registry, such double-recording is 
     clearly indicated;
       (3) determining the ownership of greenhouse gas emission 
     reductions and recording and tracking the transfer of 
     greenhouse gas emission reductions among entities (such as 
     through assignment of serial numbers to greenhouse gas 
     emission reductions);
       (4) measuring the results of the use of carbon 
     sequestration and carbon recapture technologies;
       (5) measuring greenhouse gas emission reductions resulting 
     from improvements in--
       (A) power plants;
       (B) automobiles (including types of passenger automobiles 
     and light trucks, as defined in section 32901(a)(16) and (17) 
     respectively, produced in the same model year);
       (C) carbon re-capture, storage and sequestration, including 
     organic sequestration and manufactured emissions injection, 
     and or storage.
       (D) other sources;
       (6) measuring prevented greenhouse gas emissions through 
     the rulemaking process and based on the latest scientific 
     data, sampling, expert analysis related to measurement and 
     projections for prevented greenhouse gas emissions in tons 
     including--
       (A) organic soil carbon sequestration practices;
       (B) forest preservation and re-forestation activities which 
     adequately address the issues of permanence, leakage and 
     verification; and
       (7) such other measurement, verification, and recording 
     standards as the panel determines to be appropriate.
       (g) Certification of Registries.--Except as provided in 
     subsection (h), a registrant that desires to be a certified 
     registry shall submit to the panel an application that--
       (1) demonstrates that the registrant meets each of the 
     certification standards established by the panel under 
     subsections (d) and (e); and
       (2) meets such other requirements as the panel may 
     establish.
       (h) Automobile Industry.--The Secretary of Transportation 
     is deemed to be the certified registrant for credits earned 
     under section 32903 of title 49, United States Code.
       (i) Annual Report.--Within 1 year after the date after the 
     date of enactment of this Act and biennially thereafter, the 
     panel shall report to the Congress on the status of the 
     program established under this section. The report shall 
     include an assessment of the level of participation in the 
     program and amount of progress being made on emission 
     reduction targets.

     SEC. 203. DEFINITIONS.

       In this title:
       (1) Greenhouse Gas.--The term ``greenhouse gas'' includes--
       (A) carbon dioxide;
       (B) methane;
       (C) hydro fluorocarbons;
       (D) perfluorocarbons;
       (E) nitrous oxide; and
       (F) sulfur hexafluoride.
       (2) Baseline.--The term ``baseline'' means--
       (A) the greenhouse gas emissions, determined on an entity-
     wide basis for the participant's most recent previous 3-year 
     annual average of greenhouse gas emissions prior to the date 
     of enactment of this Act; or
       (B) if data is unavailable for that 3-year period, the 
     greenhouse gas emissions as of September 30, 2004, (or as 
     close to that date as such emission levels can reasonably be 
     determined). In promulgating regulations under this title, 
     the panel shall take into account greenhouse gas emission 
     reductions or off-setting actions taken by any entity before 
     the date on which the registry is established.
       (3) Certified registry.--The term ``certified registry'' 
     means a registry that has been certified by the panel as 
     meeting the standards promulgated under section 202(e) and 
     (f) and, for the automobile industry, the Secretary of 
     Transportation.
       (4) Greenhouse gas emissions.--The term ``greenhouse gas 
     emissions'' means the quantity of greenhouse gases emitted by 
     a source during a period, measured in tons of greenhouse 
     gases.
       (5) Greenhouse gas emission reduction.--The term 
     ``greenhouse gas emission reduction'' means a quantity equal 
     to the difference between--
       (A) the greenhouse gas emissions of a source during a 
     period; and
       (B) the greenhouse gas emissions of the source during a 
     baseline period of the same duration as determined by 
     registries and entities defined as owners of emission 
     sources.
       (6) Kyoto protocol.--The term ``Kyoto protocol'' means the 
     Kyoto Protocol to the United Nations Framework Convention on 
     Climate Change (including the Montreal Protocol to the 
     Convention on Substances that Deplete the Ozone Layer).
       (7) Panel.--The term ``panel'' means the implementing panel 
     established by section 202(a).
       (8) Registrant.--The term ``registrant'' means a private 
     person that operates a database recording quantified and 
     verified greenhouse gas emissions and emissions reductions of 
     sources owned by other entities.
       (9) Source.--The term ``source'' means a source of 
     greenhouse gas emissions.
                                 ______
                                 
      By Mr. INOUYE (for himself, Mr. Stevens, Mr. Lautenberg, Ms. 
        Snowe, Mr. Rockefeller, Mr. Kerry, Mr. Lieberman. Mrs. Boxer, 
        Mr. Pryor, Mr. Carper, Mr. Biden, Mr. Baucus, Mrs. Clinton, and 
        Mr. Schumer):
  S. 184. A bill to provide improved rail and surface transportation 
security; to the Committee on Commerce, Science, and Transportation.
  Mr. INOUYE. Mr. President, last year we made significant improvements 
to the Nation's transportation security system by enacting the SAFE 
Port Act, which strengthened the security of our Nation's ports and 
maritime vessels. Yet, during the conference on this important bill, 
the Congress failed to seize the opportunity to enact comprehensive 
transportation security legislation that would have provided real 
homeland security for our entire transportation system. The Senate-
passed version of the SAFE Port Act contained essential provisions that 
would have strengthened security in all of the surface modes of 
transportation, including passenger and freight rail, public transit, 
trucking, intercity bus and pipelines. But jurisdictional infighting 
and a lack of political will kept the leadership of the House of 
Representatives from agreeing to, or even attempting to consider, these 
provisions in conference.
  Given the urgent need for surface transportation security 
improvements,

[[Page 239]]

Cochairman Stevens and I are introducing the Surface Transportation and 
Rail Security Act of 2007, or STARS Act, to once again offer the 
Congress an opportunity to enact a comprehensive transportation 
security bill. We have all seen the possible consequences of an attack 
on critical surface transportation systems in Madrid and London. We 
have all heard about possible threats and foiled plots aimed at our 
rail tunnels and stations here at home. The time has come for us to 
address these vulnerabilities and risks in a comprehensive and 
coordinated way that ensures that in the rush to protect one mode of 
transportation we don't shift vulnerability towards other, less secure, 
transportation modes.
  The STARS Act combines the rail, truck, bus, pipeline and hazardous 
materials security provisions that were included in the Senate-passed 
SAFE Port Act into a stand-alone bill, which the Commerce Committee 
will soon consider. These provisions were endorsed unanimously by the 
Senate during consideration of the SAFE Port Act, and the House of 
Representatives overwhelmingly voted to instruct its conferees to 
include these provisions in the Conference Report--advice the House 
leadership declined to accept. Additionally, the rail security portion 
of this package has already passed the Senate twice in prior Congresses 
and has been endorsed by railroads and rail labor alike. This kind of 
support demonstrates both the necessity of these improvements and the 
distinct possibility that we can finally enact these provisions into 
law this Congress.
  The legislation that we introduce today reflects the Commerce 
Committee's substantial expertise over the issues of transportation 
security. The time has come to advance these improvements, and protect 
the vital surface transportation assets that grant us the quality of 
life and economic health that we all cherish. Our legislation presents 
an opportunity to make immediate progress on transportation security, 
and it is my sincere hope that my colleagues will join me in supporting 
consideration and passage of this measure as soon as possible.
  I ask unanimous consent that the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 184

       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 ``Surface Transportation and 
     Rail Security Act of 2007''.

     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--Improved Rail Security

Sec. 101. Rail transportation security risk assessment.
Sec. 102. Systemwide amtrak security upgrades.
Sec. 103. Fire and life-safety improvements.
Sec. 104. Freight and passenger rail security upgrades.
Sec. 105. Rail security research and development.
Sec. 106. Oversight and grant procedures.
Sec. 107. Amtrak plan to assist families of passengers involved in rail 
              passenger accidents.
Sec. 108. Northern border rail passenger report.
Sec. 109. Rail worker security training program.
Sec. 110. Whistleblower protection program.
Sec. 111. High hazard material security threat mitigation plans.
Sec. 112. Memorandum of agreement.
Sec. 113. Rail security enhancements.
Sec. 114. Public awareness.
Sec. 115. Railroad high hazard material tracking.
Sec. 116. Authorization of appropriations.

 Title II--Improved Motor Carrier, Bus, and Hazardous Material Security

Sec. 201. Hazardous materials highway routing.
Sec. 202. Motor carrier high hazard material tracking.
Sec. 203. Hazardous materials security inspections and enforcement.
Sec. 204. Truck security assessment.
Sec. 205. National public sector response system.
Sec. 206. Over-the-road bus security assistance.
Sec. 207. Pipeline security and incident recovery plan.
Sec. 208. Pipeline security inspections and enforcement.
Sec. 209. Technical corrections.
Sec. 210. Certain personnel limitations not to apply.

                    TITLE I--IMPROVED RAIL SECURITY

     SEC. 101. RAIL TRANSPORTATION SECURITY RISK ASSESSMENT.

       (a) In General.--
       (1) Vulnerability and risk assessment.--The Secretary of 
     Homeland Security shall establish a task force, including the 
     Transportation Security Administration, the Department of 
     Transportation, and other appropriate agencies, to complete a 
     vulnerability and risk assessment of freight and passenger 
     rail transportation (encompassing railroads, as that term is 
     defined in section 20102(1) of title 49, United States Code). 
     The assessment shall include--
       (A) a methodology for conducting the risk assessment, 
     including timelines, that addresses how the Department of 
     Homeland Security will work with the entities describe in 
     subsection (b) and make use of existing Federal expertise 
     within the Department of Homeland Security, the Department of 
     Transportation, and other appropriate agencies;
       (B) identification and evaluation of critical assets and 
     infrastructures;
       (C) identification of vulnerabilities and risks to those 
     assets and infrastructures;
       (D) identification of vulnerabilities and risks that are 
     specific to the transportation of hazardous materials via 
     railroad;
       (E) identification of security weaknesses in passenger and 
     cargo security, transportation infrastructure, protection 
     systems, procedural policies, communications systems, 
     employee training, emergency response planning, and any other 
     area identified by the assessment; and
       (F) an account of actions taken or planned by both public 
     and private entities to address identified rail security 
     issues and assess the effective integration of such actions.
       (2) Recommendations.--Based on the assessment conducted 
     under paragraph (1), the Secretary, in consultation with the 
     Secretary of Transportation, shall develop prioritized 
     recommendations for improving rail security, including any 
     recommendations the Secretary has for--
       (A) improving the security of rail tunnels, rail bridges, 
     rail switching and car storage areas, other rail 
     infrastructure and facilities, information systems, and other 
     areas identified by the Secretary as posing significant rail-
     related risks to public safety and the movement of interstate 
     commerce, taking into account the impact that any proposed 
     security measure might have on the provision of rail service;
       (B) deploying equipment to detect explosives and hazardous 
     chemical, biological, and radioactive substances, and any 
     appropriate countermeasures;
       (C) training appropriate railroad or railroad shipper 
     employees in terrorism prevention, passenger evacuation, and 
     response activities;
       (D) conducting public outreach campaigns on passenger 
     railroads;
       (E) deploying surveillance equipment; and
       (F) identifying the immediate and long-term costs of 
     measures that may be required to address those risks.
       (3) Plans.--The report required by subsection (c) shall 
     include--
       (A) a plan, developed in consultation with the freight and 
     intercity passenger railroads, and State and local 
     governments, for the Federal government to provide increased 
     security support at high or severe threat levels of alert;
       (B) a plan for coordinating existing and planned rail 
     security initiatives undertaken by the public and private 
     sectors; and
       (C) a contingency plan, developed in conjunction with 
     freight and intercity and commuter passenger railroads, to 
     ensure the continued movement of freight and passengers in 
     the event of an attack affecting the railroad system, which 
     shall contemplate--
       (i) the possibility of rerouting traffic due to the loss of 
     critical infrastructure, such as a bridge, tunnel, yard, or 
     station; and
       (ii) methods of continuing railroad service in the 
     Northeast Corridor in the event of a commercial power loss, 
     or catastrophe affecting a critical bridge, tunnel, yard, or 
     station.
       (b) Consultation; Use of Existing Resources.--In carrying 
     out the assessment and developing the recommendations and 
     plans required by subsection (a), the Secretary of Homeland 
     Security shall consult with rail management, rail labor, 
     owners or lessors of rail cars used to transport hazardous 
     materials, first responders, shippers of hazardous materials, 
     public safety officials, and other relevant parties.
       (c) Report.--
       (1) Contents.--Within 180 days after the date of enactment 
     of this Act, the Secretary shall transmit to the Senate 
     Committee on Commerce, Science, and Transportation, the House 
     of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security a report containing the assessment, 
     prioritized recommendations, and plans required by subsection 
     (a) and an estimate of the cost to implement such 
     recommendations.

[[Page 240]]

       (2) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.
       (d) Annual Updates.--The Secretary, in consultation with 
     the Secretary of Transportation, shall update the assessment 
     and recommendations each year and transmit a report, which 
     may be submitted in both classified and redacted formats, to 
     the Committees named in subsection (c)(1), containing the 
     updated assessment and recommendations.
       (e) Funding.--Out of funds appropriated pursuant to section 
     114(u) of title 49, United States Code, as amended by section 
     116 of this Act, there shall be made available to the 
     Secretary of Homeland Security to carry out this section 
     $5,000,000 for fiscal year 2008.

     SEC. 102. SYSTEMWIDE AMTRAK SECURITY UPGRADES.

       (a) In General.--Subject to subsection (c) the Secretary of 
     Homeland Security, in consultation with the Assistant 
     Secretary of Homeland Security (Transportation Security 
     Administration), is authorized to make grants to Amtrak--
       (1) to secure major tunnel access points and ensure tunnel 
     integrity in New York, Baltimore, and Washington, DC;
       (2) to secure Amtrak trains;
       (3) to secure Amtrak stations;
       (4) to obtain a watch list identification system approved 
     by the Secretary;
       (5) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       (6) to hire additional police and security officers, 
     including canine units;
       (7) to expand emergency preparedness efforts; and
       (8) for employee security training.
       (b) Conditions.--The Secretary of Transportation shall 
     disburse funds to Amtrak provided under subsection (a) for 
     projects contained in a systemwide security plan approved by 
     the Secretary of Homeland Security. The plan shall include 
     appropriate measures to address security awareness, emergency 
     response, and passenger evacuation training.
       (c) Equitable Geographic Allocation.--The Secretary shall 
     ensure that, subject to meeting the highest security needs on 
     Amtrak's entire system and consistent with the risk 
     assessment required under section 101, stations and 
     facilities located outside of the Northeast Corridor receive 
     an equitable share of the security funds authorized by this 
     section.
       (d) Availability of Funds.--Out of funds appropriated 
     pursuant to section 114(u) of title 49, United States Code, 
     as amended by section 116 of this Act,, there shall be made 
     available to the Secretary of Homeland Security and the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration) to carry out this section--
       (1) $63,500,000 for fiscal year 2008;
       (2) $30,000,000 for fiscal year 2009; and
       (3) $30,000,000 for fiscal year 2010.

     Amounts appropriated pursuant to this subsection shall remain 
     available until expended.

     SEC. 103. FIRE AND LIFE-SAFETY IMPROVEMENTS.

       (a) Life-Safety Needs.--The Secretary of Transportation, in 
     consultation with the Secretary of Homeland Security, is 
     authorized to make grants to Amtrak for the purpose of making 
     fire and life-safety improvements to Amtrak tunnels on the 
     Northeast Corridor in New York, NY, Baltimore, MD, and 
     Washington, DC.
       (b) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 116(b) of this Act, there 
     shall be made available to the Secretary of Transportation 
     for the purposes of carrying out subsection (a) the following 
     amounts:
       (1) For the 6 New York tunnels to provide ventilation, 
     electrical, and fire safety technology upgrades, emergency 
     communication and lighting systems, and emergency access and 
     egress for passengers--
       (A) $100,000,000 for fiscal year 2008;
       (B) $100,000,000 for fiscal year 2009;
       (C) $100,000,000 for fiscal year 2010; and
       (D) $100,000,000 for fiscal year 2011.
       (2) For the Baltimore & Potomac tunnel and the Union 
     tunnel, together, to provide adequate drainage, ventilation, 
     communication, lighting, and passenger egress upgrades--
       (A) $10,000,000 for fiscal year 2008;
       (B) $10,000,000 for fiscal year 2009;
       (C) $10,000,000 for fiscal year 2010; and
       (D) $10,000,000 for fiscal year 2011.
       (3) For the Washington, DC, Union Station tunnels to 
     improve ventilation, communication, lighting, and passenger 
     egress upgrades--
       (A) $8,000,000 for fiscal year 2008;
       (B) $8,000,000 for fiscal year 2009;
       (C) $8,000,000 for fiscal year 2010; and
       (D) $8,000,000 for fiscal year 2011.
       (c) Infrastructure Upgrades.--Out of funds appropriated 
     pursuant to section 116(b) of this Act, there shall be made 
     available to the Secretary of Transportation for fiscal year 
     2008 $3,000,000 for the preliminary design of options for a 
     new tunnel on a different alignment to augment the capacity 
     of the existing Baltimore tunnels.
       (d) Availability of Appropriated Funds.--Amounts made 
     available pursuant to this section shall remain available 
     until expended.
       (e) Plans Required.--The Secretary of Transportation may 
     not make amounts available to Amtrak for obligation or 
     expenditure under subsection (a)--
       (1) until Amtrak has submitted to the Secretary, and the 
     Secretary has approved, an engineering and financial plan for 
     such projects; and
       (2) unless, for each project funded pursuant to this 
     section, the Secretary has approved a project management plan 
     prepared by Amtrak addressing appropriate project budget, 
     construction schedule, recipient staff organization, document 
     control and record keeping, change order procedure, quality 
     control and assurance, periodic plan updates, and periodic 
     status reports.
       (f) Review of Plans.--The Secretary of Transportation shall 
     complete the review of the plans required by paragraphs (1) 
     and (2) of subsection (e) and approve or disapprove the plans 
     within 45 days after the date on which each such plan is 
     submitted by Amtrak. If the Secretary determines that a plan 
     is incomplete or deficient, the Secretary shall notify Amtrak 
     of the incomplete items or deficiencies and Amtrak shall, 
     within 30 days after receiving the Secretary's notification, 
     submit a modified plan for the Secretary's review. Within 15 
     days after receiving additional information on items 
     previously included in the plan, and within 45 days after 
     receiving items newly included in a modified plan, the 
     Secretary shall either approve the modified plan, or, if the 
     Secretary finds the plan is still incomplete or deficient, 
     the Secretary shall identify in writing to the Senate 
     Committee on Commerce, Science, and Transportation, the House 
     of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security the portions of the plan the Secretary 
     finds incomplete or deficient, approve all other portions of 
     the plan, obligate the funds associated with those other 
     portions, and execute an agreement with Amtrak within 15 days 
     thereafter on a process for resolving the remaining portions 
     of the plan.
       (g) Financial Contribution From Other Tunnel Users.--The 
     Secretary shall, taking into account the need for the timely 
     completion of all portions of the tunnel projects described 
     in subsection (a)--
       (1) consider the extent to which rail carriers other than 
     Amtrak use or plan to use the tunnels;
       (2) consider the feasibility of seeking a financial 
     contribution from those other rail carriers toward the costs 
     of the projects; and
       (3) obtain financial contributions or commitments from such 
     other rail carriers at levels reflecting the extent of their 
     use or planned use of the tunnels, if feasible.

     SEC. 104. FREIGHT AND PASSENGER RAIL SECURITY UPGRADES.

       (a) Security Improvement Grants.--The Secretary of Homeland 
     Security, through the Assistant Secretary of Homeland 
     Security (Transportation Security Administration) and other 
     appropriate agencies, is authorized to make grants to freight 
     railroads, the Alaska Railroad, hazardous materials shippers, 
     owners of rail cars used in the transportation of hazardous 
     materials, universities, colleges and research centers, State 
     and local governments (for rail passenger facilities and 
     infrastructure not owned by Amtrak), and, through the 
     Secretary of Transportation, to Amtrak, for full or partial 
     reimbursement of costs incurred in the conduct of activities 
     to prevent or respond to acts of terrorism, sabotage, or 
     other intercity passenger rail and freight rail security 
     vulnerabilities and risks identified under section 101, 
     including--
       (1) security and redundancy for critical communications, 
     computer, and train control systems essential for secure rail 
     operations;
       (2) accommodation of rail cargo or passenger screening 
     equipment at the United States-Mexico border, the United 
     States-Canada border, or other ports of entry;
       (3) the security of hazardous material transportation by 
     rail;
       (4) secure intercity passenger rail stations, trains, and 
     infrastructure;
       (5) structural modification or replacement of rail cars 
     transporting high hazard materials to improve their 
     resistance to acts of terrorism;
       (6) employee security awareness, preparedness, passenger 
     evacuation, and emergency response training;
       (7) public security awareness campaigns for passenger train 
     operations;
       (8) the sharing of intelligence and information about 
     security threats;
       (9) to obtain train tracking and interoperable 
     communications systems that are coordinated to the maximum 
     extent possible;
       (10) to hire additional police and security officers, 
     including canine units; and
       (11) other improvements recommended by the report required 
     by section 101, including infrastructure, facilities, and 
     equipment upgrades.
       (b) Accountability.--The Secretary shall adopt necessary 
     procedures, including audits, to ensure that grants made 
     under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.

[[Page 241]]

       (c) Allocation.--The Secretary shall distribute the funds 
     authorized by this section based on risk and vulnerability as 
     determined under section 101, and shall encourage non-Federal 
     financial participation in awarding grants. With respect to 
     grants for intercity passenger rail security, the Secretary 
     shall also take into account passenger volume and whether a 
     station is used by commuter rail passengers as well as 
     intercity rail passengers.
       (d) Conditions.--The Secretary of Transportation may not 
     disburse funds to Amtrak under subsection (a) unless Amtrak 
     meets the conditions set forth in section 102(b) of this Act.
       (e) Allocation Between Railroads and Others.--Unless as a 
     result of the assessment required by section 101 the 
     Secretary of Homeland Security determines that critical rail 
     transportation security needs require reimbursement in 
     greater amounts to any eligible entity, no grants under this 
     section may be made--
       (1) in excess of $45,000,000 to Amtrak; or
       (2) in excess of $80,000,000 for the purposes described in 
     paragraphs (3) and (5) of subsection (a).
       (f) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 114(u) of title 49, United 
     States Code, as amended by section 116 of this Act,, there 
     shall be made available to the Secretary of Homeland Security 
     to carry out this section--
       (1) $100,000,000 for fiscal year 2008;
       (2) $100,000,000 for fiscal year 2009; and
       (3) $100,000,000 for fiscal year 2010

     .Amounts made available pursuant to this subsection shall 
     remain available until expended.
       (g) High Hazard Materials Defined.--In this section, the 
     term ``high hazard materials'' means quantities of poison 
     inhalation hazard materials, Class 2.3 gases, Class 6.1 
     materials, and anhydrous ammonia that the Secretary, in 
     consultation with the Secretary of Transportation, determines 
     pose a security risk.

     SEC. 105. RAIL SECURITY RESEARCH AND DEVELOPMENT.

       (a) Establishment of Research and Development Program.--The 
     Secretary of Homeland Security, through the Under Secretary 
     for Science and Technology and the Assistant Secretary of 
     Homeland Security (Transportation Security Administration), 
     in consultation with the Secretary of Transportation shall 
     carry out a research and development program for the purpose 
     of improving freight and intercity passenger rail security 
     that may include research and development projects to--
       (1) reduce the vulnerability of passenger trains, stations, 
     and equipment to explosives and hazardous chemical, 
     biological, and radioactive substances;
       (2) test new emergency response techniques and 
     technologies;
       (3) develop improved freight technologies, including--
       (A) technologies for sealing rail cars;
       (B) automatic inspection of rail cars;
       (C) communication-based train controls; and
       (D) emergency response training;
       (4) test wayside detectors that can detect tampering with 
     railroad equipment;
       (5) support enhanced security for the transportation of 
     hazardous materials by rail, including--
       (A) technologies to detect a breach in a tank car or other 
     rail car used to transport hazardous materials and transmit 
     information about the integrity of cars to the train crew or 
     dispatcher;
       (B) research to improve tank car integrity, with a focus on 
     tank cars that carry high hazard materials (as defined in 
     section 104(g) of this Act); and
       (C) techniques to transfer hazardous materials from rail 
     cars that are damaged or otherwise represent an unreasonable 
     risk to human life or public safety; and
       (6) other projects that address vulnerabilities and risks 
     identified under section 101.
       (b) Coordination With Other Research Initiatives.--The 
     Secretary of Homeland Security shall ensure that the research 
     and development program authorized by this section is 
     coordinated with other research and development initiatives 
     at the Department of Homeland Security and the Department of 
     Transportation. The Secretary shall carry out any research 
     and development project authorized by this section through a 
     reimbursable agreement with the Secretary of Transportation, 
     if the Secretary of Transportation--
       (1) is already sponsoring a research and development 
     project in a similar area; or
       (2) has a unique facility or capability that would be 
     useful in carrying out the project.
       (c) Grants and Accountability.--To carry out the research 
     and development program, the Secretary may award grants to 
     the entities described in section 104(a) and shall adopt 
     necessary procedures, including audits, to ensure that grants 
     made under this section are expended in accordance with the 
     purposes of this title and the priorities and other criteria 
     developed by the Secretary.
       (d) Authorization of Appropriations.--Out of funds 
     appropriated pursuant to section 114(u) of title 49, United 
     States Code, as amended by section 116 of this Act,, there 
     shall be made available to the Secretary of Homeland Security 
     to carry out this section--
       (1) $33,000,000 for fiscal year 2008;
       (2) $33,000,000 for fiscal year 2009; and
       (3) $33,000,000 for fiscal year 2010.

     Amounts made available pursuant to this subsection shall 
     remain available until expended.

     SEC. 106. OVERSIGHT AND GRANT PROCEDURES.

       (a) Secretarial Oversight.--The Secretary of Homeland 
     Security may use up to 0.5 percent of amounts made available 
     for capital projects under this Act to enter into contracts 
     for the review of proposed capital projects and related 
     program management plans and to oversee construction of such 
     projects.
       (b) Use of Funds.--The Secretary may use amounts available 
     under subsection (a) of this subsection to make contracts to 
     audit and review the safety, procurement, management, and 
     financial compliance of a recipient of amounts under this 
     title.
       (c) Procedures for Grant Award.--The Secretary shall, 
     within 90 days after the date of enactment of this Act, 
     prescribe procedures and schedules for the awarding of grants 
     under this title, including application and qualification 
     procedures (including a requirement that the applicant have a 
     security plan), and a record of decision on applicant 
     eligibility. The procedures shall include the execution of a 
     grant agreement between the grant recipient and the Secretary 
     and shall be consistent, to the extent practicable, with the 
     grant procedures established under section 70107 of title 46, 
     United States Code.

     SEC. 107. AMTRAK PLAN TO ASSIST FAMILIES OF PASSENGERS 
                   INVOLVED IN RAIL PASSENGER ACCIDENTS.

       (a) In General.--Chapter 243 of title 49, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 24316. Plans to address needs of families of 
       passengers involved in rail passenger accidents

       ``(a) Submission of Plan.--Not later than 6 months after 
     the date of the enactment of the Surface Transportation and 
     Rail Security Act of 2007, Amtrak shall submit to the 
     Chairman of the National Transportation Safety Board, the 
     Secretary of Transportation, and the Secretary of Homeland 
     Security a plan for addressing the needs of the families of 
     passengers involved in any rail passenger accident involving 
     an Amtrak intercity train and resulting in a loss of life.
       ``(b) Contents of Plans.--The plan to be submitted by 
     Amtrak under subsection (a) shall include, at a minimum, the 
     following:
       ``(1) A process by which Amtrak will maintain and provide 
     to the National Transportation Safety Board and the Secretary 
     of Transportation, immediately upon request, a list (which is 
     based on the best available information at the time of the 
     request) of the names of the passengers aboard the train 
     (whether or not such names have been verified), and will 
     periodically update the list. The plan shall include a 
     procedure, with respect to unreserved trains and passengers 
     not holding reservations on other trains, for Amtrak to use 
     reasonable efforts to ascertain the number and names of 
     passengers aboard a train involved in an accident.
       ``(2) A plan for creating and publicizing a reliable, toll-
     free telephone number within 4 hours after such an accident 
     occurs, and for providing staff, to handle calls from the 
     families of the passengers.
       ``(3) A process for notifying the families of the 
     passengers, before providing any public notice of the names 
     of the passengers, by suitably trained individuals.
       ``(4) A process for providing the notice described in 
     paragraph (2) to the family of a passenger as soon as Amtrak 
     has verified that the passenger was aboard the train (whether 
     or not the names of all of the passengers have been 
     verified).
       ``(5) A process by which the family of each passenger will 
     be consulted about the disposition of all remains and 
     personal effects of the passenger within Amtrak's control; 
     that any possession of the passenger within Amtrak's control 
     will be returned to the family unless the possession is 
     needed for the accident investigation or any criminal 
     investigation; and that any unclaimed possession of a 
     passenger within Amtrak's control will be retained by the 
     rail passenger carrier for at least 18 months.
       ``(6) A process by which the treatment of the families of 
     nonrevenue passengers will be the same as the treatment of 
     the families of revenue passengers.
       ``(7) An assurance that Amtrak will provide adequate 
     training to its employees and agents to meet the needs of 
     survivors and family members following an accident.
       ``(c) Use of Information.--The National Transportation 
     Safety Board, the Secretary of Transportation, and Amtrak may 
     not release any personal information on a list obtained under 
     subsection (b)(1) but may provide information on the list 
     about a passenger to the family of the passenger to the 
     extent that the Board or Amtrak considers appropriate.
       ``(d) Limitation on Liability.--Amtrak shall not be liable 
     for damages in any action

[[Page 242]]

     brought in a Federal or State court arising out of the 
     performance of Amtrak in preparing or providing a passenger 
     list, or in providing information concerning a train 
     reservation, pursuant to a plan submitted by Amtrak under 
     subsection (b), unless such liability was caused by Amtrak's 
     conduct.
       ``(e) Limitation on Statutory Construction.--Nothing in 
     this section may be construed as limiting the actions that 
     Amtrak may take, or the obligations that Amtrak may have, in 
     providing assistance to the families of passengers involved 
     in a rail passenger accident.
       ``(f) Funding.--Out of funds appropriated pursuant to 
     section 116(b) of the Surface Transportation and Rail 
     Security Act of 2007, there shall be made available to the 
     Secretary of Transportation for the use of Amtrak $500,000 
     for fiscal year 2007 to carry out this section. Amounts made 
     available pursuant to this subsection shall remain available 
     until expended.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     243 of title 49, United States Code, is amended by adding at 
     the end the following:

``24316.  Plan to assist families of passengers involved in rail 
              passenger accidents.''.

     SEC. 108. NORTHERN BORDER RAIL PASSENGER REPORT.

       Within 180 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, in consultation with the 
     Assistant Secretary of Homeland Security (Transportation 
     Security Administration), the Secretary of Transportation, 
     heads of other appropriate Federal departments, and agencies 
     and the National Railroad Passenger Corporation, shall 
     transmit a report to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Transportation and Infrastructure, and the House 
     of Representatives Committee on Homeland Security that 
     contains--
       (1) a description of the current system for screening 
     passengers and baggage on passenger rail service between the 
     United States and Canada;
       (2) an assessment of the current program to provide 
     preclearance of airline passengers between the United States 
     and Canada as outlined in ``The Agreement on Air Transport 
     Preclearance between the Government of Canada and the 
     Government of the United States of America'', dated January 
     18, 2001;
       (3) an assessment of the current program to provide 
     preclearance of freight railroad traffic between the United 
     States and Canada as outlined in the ``Declaration of 
     Principle for the Improved Security of Rail Shipments by 
     Canadian National Railway and Canadian Pacific Railway from 
     Canada to the United States'', dated April 2, 2003;
       (4) information on progress by the Department of Homeland 
     Security and other Federal agencies towards finalizing a 
     bilateral protocol with Canada that would provide for 
     preclearance of passengers on trains operating between the 
     United States and Canada;
       (5) a description of legislative, regulatory, budgetary, or 
     policy barriers within the United States Government to 
     providing pre-screened passenger lists for rail passengers 
     traveling between the United States and Canada to the 
     Department of Homeland Security;
       (6) a description of the position of the Government of 
     Canada and relevant Canadian agencies with respect to 
     preclearance of such passengers;
       (7) a draft of any changes in existing Federal law 
     necessary to provide for pre-screening of such passengers and 
     providing pre-screened passenger lists to the Department of 
     Homeland Security; and
       (8) an analysis of the feasibility of reinstating in-
     transit inspections onboard international Amtrak trains.

     SEC. 109. RAIL WORKER SECURITY TRAINING PROGRAM.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Homeland Security and 
     the Secretary of Transportation, in consultation with 
     appropriate law enforcement, security, and terrorism experts, 
     representatives of railroad carriers, and nonprofit employee 
     organizations that represent rail workers, shall develop and 
     issue detailed guidance for a rail worker security training 
     program to prepare front-line workers for potential threat 
     conditions. The guidance shall take into consideration any 
     current security training requirements or best practices.
       (b) Program Elements.--The guidance developed under 
     subsection (a) shall include elements, as appropriate to 
     passenger and freight rail service, that address the 
     following:
       (1) Determination of the seriousness of any occurrence.
       (2) Crew communication and coordination.
       (3) Appropriate responses to defend or protect oneself.
       (4) Use of protective devices.
       (5) Evacuation procedures.
       (6) Psychology of terrorists to cope with hijacker behavior 
     and passenger responses.
       (7) Situational training exercises regarding various threat 
     conditions.
       (8) Any other subject the Secretary considers appropriate.
       (c) Railroad Carrier Programs.--Not later than 90 days 
     after the Secretary of Homeland Security issues guidance 
     under subsection (a) in final form, each railroad carrier 
     shall develop a rail worker security training program in 
     accordance with that guidance and submit it to the Secretary 
     for review. Not later than 30 days after receiving a railroad 
     carrier's program under this subsection, the Secretary shall 
     review the program and transmit comments to the railroad 
     carrier concerning any revisions the Secretary considers 
     necessary for the program to meet the guidance requirements. 
     A railroad carrier shall respond to the Secretary's comments 
     within 30 days after receiving them.
       (d) Training.--Not later than 1 year after the Secretary 
     reviews the training program developed by a railroad carrier 
     under this section, the railroad carrier shall complete the 
     training of all front-line workers in accordance with that 
     program. The Secretary shall review implementation of the 
     training program of a representative sample of railroad 
     carriers and report to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Transportation and Infrastructure, and the House 
     of Representatives Committee on Homeland Security on the 
     number of reviews conducted and the results. The Secretary 
     may submit the report in both classified and redacted formats 
     as necessary.
       (e) Updates.--The Secretary shall update the training 
     guidance issued under subsection (a) as appropriate to 
     reflect new or different security threats. Railroad carriers 
     shall revise their programs accordingly and provide 
     additional training to their front-line workers within a 
     reasonable time after the guidance is updated.
       (f) Front-Line Workers Defined.--In this section, the term 
     ``front-line workers'' means security personnel, dispatchers, 
     train operators, other onboard employees, maintenance and 
     maintenance support personnel, bridge tenders, as well as 
     other appropriate employees of railroad carriers, as defined 
     by the Secretary.
       (g) Other Employees.--The Secretary of Homeland Security 
     shall issue guidance and best practices for a rail shipper 
     employee security program containing the elements listed 
     under subsection (b) as appropriate.

     SEC. 110. WHISTLEBLOWER PROTECTION PROGRAM.

       (a) In General.--Subchapter A of chapter 201 of title 49, 
     United States Code, is amended by inserting after section 
     20117 the following:

     ``Sec. 20118. Whistleblower protection for rail security 
       matters

       ``(a) Discrimination Against Employee.--No rail carrier 
     engaged in interstate or foreign commerce may discharge a 
     railroad employee or otherwise discriminate against a 
     railroad employee because the employee (or any person acting 
     pursuant to a request of the employee)--
       ``(1) provided, caused to be provided, or is about to 
     provide or cause to be provided, to the employer or the 
     Federal Government information relating to a reasonably 
     perceived threat, in good faith, to security; or
       ``(2) provided, caused to be provided, or is about to 
     provide or cause to be provided, testimony before Congress or 
     at any Federal or State proceeding regarding a reasonably 
     perceived threat, in good faith, to security; or
       ``(3) refused to violate or assist in the violation of any 
     law, rule or regulation related to rail security.
       ``(b) Dispute Resolution.--A dispute, grievance, or claim 
     arising under this section is subject to resolution under 
     section 3 of the Railway Labor Act (45 U.S.C. 153). In a 
     proceeding by the National Railroad Adjustment Board, a 
     division or delegate of the Board, or another board of 
     adjustment established under section 3 to resolve the 
     dispute, grievance, or claim the proceeding shall be 
     expedited and the dispute, grievance, or claim shall be 
     resolved not later than 180 days after it is filed. If the 
     violation is a form of discrimination that does not involve 
     discharge, suspension, or another action affecting pay, and 
     no other remedy is available under this subsection, the 
     Board, division, delegate, or other board of adjustment may 
     award the employee reasonable damages, including punitive 
     damages, of not more than $20,000.
       ``(c) Procedural Requirements.--Except as provided in 
     subsection (b), the procedure set forth in section 
     42121(b)(2)(B) of this subtitle, including the burdens of 
     proof, applies to any complaint brought under this section.
       ``(d) Election of Remedies.--An employee of a railroad 
     carrier may not seek protection under both this section and 
     another provision of law for the same allegedly unlawful act 
     of the carrier.
       ``(e) Disclosure of Identity.--
       ``(1) Except as provided in paragraph (2) of this 
     subsection, or with the written consent of the employee, the 
     Secretary of Transportation may not disclose the name of an 
     employee of a railroad carrier who has provided information 
     about an alleged violation of this section.
       ``(2) The Secretary shall disclose to the Attorney General 
     the name of an employee described in paragraph (1) of this 
     subsection if the matter is referred to the Attorney General 
     for enforcement.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     201 of title 49, United

[[Page 243]]

     States Code, is amended by inserting after the item relating 
     to section 20117 the following:

``20118. Whistleblower protection for rail security matters.''.

     SEC. 111. HIGH HAZARD MATERIAL SECURITY THREAT MITIGATION 
                   PLANS.

       (a) In General.--The Secretary of Homeland Security, in 
     consultation with the Assistant Secretary of Homeland 
     Security (Transportation Security Administration) and the 
     Secretary of Transportation, shall require rail carriers 
     transporting a high hazard material, as defined in section 
     104(g) of this Act to develop a high hazard material security 
     threat mitigation plan containing appropriate measures, 
     including alternative routing and temporary shipment 
     suspension options, to address assessed risks to high 
     consequence targets. The plan, and any information submitted 
     to the Secretary under this section shall be protected as 
     sensitive security information under the regulations 
     prescribed under section 114(s) of title 49, United States 
     Code.
       (b) Implementation.--A high hazard material security threat 
     mitigation plan shall be put into effect by a rail carrier 
     for the shipment of high hazardous materials by rail on the 
     rail carrier's right-of-way when the threat levels of the 
     Homeland Security Advisory System are high or severe and 
     specific intelligence of probable or imminent threat exists 
     towards--
       (1) a high-consequence target that is within the 
     catastrophic impact zone of a railroad right-of-way used to 
     transport high hazardous material; or
       (2) rail infrastructure or operations within the immediate 
     vicinity of a high-consequence target.
       (c) Completion and Review of Plans.--
       (1) Plans required.--Each rail carrier shall--
       (A) submit a list of routes used to transport high hazard 
     materials to the Secretary of Homeland Security within 60 
     days after the date of enactment of this Act;
       (B) develop and submit a high hazard material security 
     threat mitigation plan to the Secretary within 180 days after 
     it receives the notice of high consequence targets on such 
     routes by the Secretary; and
       (C) submit any subsequent revisions to the plan to the 
     Secretary within 30 days after making the revisions.
       (2) Review and updates.--The Secretary, with assistance of 
     the Secretary of Transportation, shall review the plans and 
     transmit comments to the railroad carrier concerning any 
     revisions the Secretary considers necessary. A railroad 
     carrier shall respond to the Secretary's comments within 30 
     days after receiving them. Each rail carrier shall update and 
     resubmit its plan for review not less than every 2 years.
       (d) Definitions.--In this section:
       (1) The term ``high-consequence target'' means a building, 
     buildings, infrastructure, public space, or natural resource 
     designated by the Secretary of Homeland Security that is 
     viable terrorist target of national significance, the attack 
     of which could result in--
       (A) catastrophic loss of life; and
       (B) significantly damaged national security and defense 
     capabilities; or
       (C) national economic harm.
       (2) The term ``catastrophic impact zone'' means the area 
     immediately adjacent to, under, or above an active railroad 
     right-of-way used to ship high hazard materials in which the 
     potential release or explosion of the high hazard material 
     being transported would likely cause--
       (A) loss of life; or
       (B) significant damage to property or structures.
       (3) The term ``rail carrier'' has the meaning given that 
     term by section 10102(5) of title 49, United States Code.

     SEC. 112. MEMORANDUM OF AGREEMENT.

       (a) Memorandum of Agreement.--Similar to the public 
     transportation security annex between the two departments 
     signed on September 8, 2005, within 1 year after the date of 
     enactment of this Act, the Secretary of Transportation and 
     the Secretary of Homeland Security shall execute and develop 
     an annex to the memorandum of agreement between the two 
     departments signed on September 28, 2004, governing the 
     specific roles, delineations of responsibilities, resources 
     and commitments of the Department of Transportation and the 
     Department of Homeland Security, respectively, in addressing 
     railroad transportation security matters, including the 
     processes the departments will follow to promote 
     communications, efficiency, and nonduplication of effort.
       (b) Rail Safety Regulations.--Section 20103(a) of title 49, 
     United States Code, is amended by striking ``safety'' the 
     first place it appears, and inserting ``safety, including 
     security,''.

     SEC. 113. RAIL SECURITY ENHANCEMENTS.

       (a) Rail Police Officers.--Section 28101 of title 49, 
     United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``Under''; 
     and
       (2) by striking ``the rail carrier'' each place it appears 
     and inserting ``any rail carrier''.
       (b) Review of Rail Regulations.--Within 1 year after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in consultation with the Secretary of 
     Homeland Security and the Assistant Secretary of Homeland 
     Security (Transportation Security Administration), shall 
     review existing rail regulations of the Department of 
     Transportation for the purpose of identifying areas in which 
     those regulations need to be revised to improve rail 
     security.

     SEC. 114. PUBLIC AWARENESS.

       Not later than 90 days after the date of enactment of this 
     Act, the Secretary of Homeland Security, in consultation with 
     the Secretary of Transportation, shall develop a national 
     plan for public outreach and awareness. Such plan shall be 
     designed to increase awareness of measures that the general 
     public, railroad passengers, and railroad employees can take 
     to increase railroad system security. Such plan shall also 
     provide outreach to railroad carriers and their employees to 
     improve their awareness of available technologies, ongoing 
     research and development efforts, and available Federal 
     funding sources to improve railroad security. Not later than 
     9 months after the date of enactment of this Act, the 
     Secretary of Homeland Security shall implement the plan 
     developed under this section.

     SEC. 115. RAILROAD HIGH HAZARD MATERIAL TRACKING.

       (a) Wireless Communications.--
       (1) In general.--In conjunction with the research and 
     development program established under section 105 and 
     consistent with the results of research relating to wireless 
     tracking technologies, the Secretary of Homeland Security, in 
     consultation with the Assistant Secretary of Homeland 
     Security (Transportation Security Administration), shall 
     develop a program that will encourage the equipping of rail 
     cars transporting high hazard materials (as defined in 
     section 104(g) of this Act) with wireless terrestrial or 
     satellite communications technology that provides--
       (A) car position location and tracking capabilities;
       (B) notification of rail car depressurization, breach, or 
     unsafe temperature; and
       (C) notification of hazardous material release.
       (2) Coordination.--In developing the program required by 
     paragraph (1), the Secretary shall--
       (A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for rail car tracking at the Department of Transportation; 
     and
       (B) ensure that the program is consistent with 
     recommendations and findings of the Department of Homeland 
     Security's hazardous material tank rail car tracking pilot 
     programs.
       (b) Funding.--Out of funds appropriated pursuant to section 
     114(u) of title 49, United States Code, as amended by section 
     116 of this Act, there shall be made available to the 
     Secretary of Homeland Security to carry out this section 
     $3,000,000 for each of fiscal years 2008, 2009, and 2010.

     SEC. 116. AUTHORIZATION OF APPROPRIATIONS.

       (a) Transportation Security Administration Authorization.--
     Section 114 of title 49, United States Code, is amended by 
     adding at the end thereof the following:
       ``(u) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security for rail security--
       ``(1) $228,000,000 for fiscal year 2008;
       ``(2) $183,000,000 for fiscal year 2009; and
       ``(3) $183,000,000 for fiscal year 2010.''.
       (b) Department of Transportation.--There are authorized to 
     be appropriated to the Secretary of Transportation to carry 
     out this title and sections 20118 and 24316 of title 49, 
     United States Code, as added by this Act--
       (1) $121,500,000 for fiscal year 2007;
       (2) $118,000,000 for fiscal year 2008;
       (3) $118,000,000 for fiscal year 2009; and
       (4) $195,000,000 for fiscal year 2011.

 TITLE II--IMPROVED MOTOR CARRIER, BUS, AND HAZARDOUS MATERIAL SECURITY

     SEC. 201. HAZARDOUS MATERIALS HIGHWAY ROUTING.

       (a) Route Plan Guidance.--Within one year after the date of 
     enactment of this Act, the Secretary of Transportation, in 
     consultation with the Secretary of Homeland Security, shall--
       (1) document existing and proposed routes for the 
     transportation of radioactive and non-radioactive hazardous 
     materials by motor carrier, and develop a framework for using 
     a Geographic Information System-based approach to 
     characterize routes in the National Hazardous Materials Route 
     Registry;
       (2) assess and characterize existing and proposed routes 
     for the transportation of radioactive and non-radioactive 
     hazardous materials by motor carrier for the purpose of 
     identifying measurable criteria for selecting routes based on 
     safety and security concerns;
       (3) analyze current route-related hazardous materials 
     regulations in the United States, Canada, and Mexico to 
     identify cross-border differences and conflicting 
     regulations;
       (4) document the concerns of the public, motor carriers, 
     and State, local, territorial, and tribal governments about 
     the highway routing of hazardous materials for the purpose of 
     identifying and mitigating security vulnerabilities 
     associated with hazardous material routes;

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       (5) prepare guidance materials for State officials to 
     assist them in identifying and reducing both safety concerns 
     and security vulnerabilities when designating highway routes 
     for hazardous materials consistent with the 13 safety-based 
     non-radioactive materials routing criteria and radioactive 
     materials routing criteria in Subpart C part 397 of title 49, 
     Code of Federal Regulations;
       (6) develop a tool that will enable State officials to 
     examine potential routes for the highway transportation of 
     hazardous material and assess specific security 
     vulnerabilities associated with each route and explore 
     alternative mitigation measures; and
       (7) transmit to the Senate Committee on Commerce, Science, 
     and Transportation, and the House of Representatives 
     Committee on Transportation and Infrastructure a report on 
     the actions taken to fulfill paragraphs (1) through (6) of 
     this subsection and any recommended changes to the routing 
     requirements for the highway transportation of hazardous 
     materials in part 397 of title 49, Code of Federal 
     Regulations.
       (b) Route Plans.--
       (1) Assessment.--Within one year after the date of 
     enactment of this Act, the Secretary of Transportation shall 
     complete an assessment of the safety and national security 
     benefits achieved under existing requirements for route 
     plans, in written or electronic format, for explosives and 
     radioactive materials. The assessment shall, at a minimum--
       (A) compare the percentage of Department of Transportation 
     recordable incidents and the severity of such incidents for 
     shipments of explosives and radioactive materials for which 
     such route plans are required with the percentage of 
     recordable incidents and the severity of such incidents for 
     shipments of explosives and radioactive materials not subject 
     to such route plans; and
       (B) quantify the security and safety benefits, feasibility, 
     and costs of requiring each motor carrier that is required to 
     have a hazardous material safety permit under part 385 of 
     title 49, Code of Federal Regulations, to maintain, follow, 
     and carry such a route plan that meets the requirements of 
     section 397.101 of that title when transporting the type and 
     quantity of hazardous materials described in section 385.403 
     of that title, taking into account the various segments of 
     the trucking industry, including tank truck, truckload and 
     less than truckload carriers.
       (2) Report.--Within one year after the date of enactment of 
     this Act, the Secretary of Transportation shall submit a 
     report to the Senate Committee on Commerce, Science, and 
     Transportation, and the House of Representatives Committee on 
     Transportation and Infrastructure containing the findings and 
     conclusions of the assessment.
       (c) Requirement.--The Secretary shall require motor 
     carriers that have a hazardous material safety permit under 
     part 385 of title 49, Code of Federal Regulations, to 
     maintain, follow, and carry a route plan, in written or 
     electronic format, that meets the requirements of section 
     397.101 of that title when transporting the type and quantity 
     of hazardous materials described in section 385.403 of that 
     title if the Secretary determines, under the assessment 
     required in subsection (b), that such a requirement would 
     enhance the security and safety of the nation without 
     imposing unreasonable costs or burdens upon motor carriers.

     SEC. 202. MOTOR CARRIER HIGH HAZARD MATERIAL TRACKING.

       (a) Wireless Communications--
       (1) In general.--Consistent with the findings of the 
     Transportation Security Administration's Hazmat Truck 
     Security Pilot Program and within 6 months after the date of 
     enactment of this Act, the Secretary of Homeland Security, 
     through the Transportation Security Administration and in 
     consultation with the Secretary of Transportation, shall 
     develop a program to encourage the equipping of motor 
     carriers transporting high hazard materials in quantities 
     equal to or greater than the quantities specified in subpart 
     171.800 of title 49, Code of Federal Regulations, with 
     wireless communications technology that provides--
       (A) continuous communications;
       (B) vehicle position location and tracking capabilities; 
     and
       (C) a feature that allows a driver of such vehicles to 
     broadcast an emergency message.
       (2) Considerations.--In developing the program required by 
     paragraph (1), the Secretary shall--
       (A) consult with the Secretary of Transportation to 
     coordinate the program with any ongoing or planned efforts 
     for motor carrier tracking at the Department of 
     Transportation;
       (B) take into consideration the recommendations and 
     findings of the report on the Hazardous Material Safety and 
     Security Operation Field Test released by the Federal Motor 
     Carrier Safety Administration on November 11, 2004;
       (C) evaluate--
       (i) any new information related to the cost and benefits of 
     deploying and utilizing truck tracking technology for motor 
     carriers transporting high hazard materials not included in 
     the Hazardous Material Safety and Security Operation Field 
     Test Report released by the Federal Motor Carrier Safety 
     Administration on November 11, 2004;
       (ii) the ability of truck tracking technology to resist 
     tampering and disabling;
       (iii) the capability of truck tracking technology to 
     collect, display, and store information regarding the 
     movements of shipments of high hazard materials by commercial 
     motor vehicles;
       (iv) the appropriate range of contact intervals between the 
     tracking technology and a commercial motor vehicle 
     transporting high hazard materials; and
       (v) technology that allows the installation by a motor 
     carrier of concealed electronic devices on commercial motor 
     vehicles that can be activated by law enforcement authorities 
     and alert emergency response resources to locate and recover 
     security sensitive material in the event of loss or theft of 
     such material.
       (b) Funding.--There are authorized to be appropriated to 
     the Secretary of Homeland Security to carry out this section 
     $3,000,000 for each of fiscal years 2008, 2009, and 2010.

     SEC. 203. HAZARDOUS MATERIALS SECURITY INSPECTIONS AND 
                   ENFORCEMENT.

       (a) In General.--The Secretary of Homeland Security shall 
     establish a program within the Transportation Security 
     Administration, in consultation with the Secretary of 
     Transportation, for reviewing hazardous materials security 
     plans required under part 172, title 49, Code of Federal 
     Regulations, within 180 days after the date of enactment of 
     this Act. In establishing the program, the Secretary shall 
     ensure that--
       (1) the program does not subject carriers to unnecessarily 
     duplicative reviews of their security plans by the 2 
     departments; and
       (2) a common set of standards is used to review the 
     security plans.
       (b) Civil Penalty.--The failure, by a shipper, carrier, or 
     other person subject to part 172 of title 49, Code of Federal 
     Regulations, to comply with any applicable section of that 
     part within 180 days after being notified by the Secretary of 
     such failure to comply, is punishable by a civil penalty 
     imposed by the Secretary under title 49, United States Code. 
     For purposes of this subsection, each day of noncompliance 
     after the 181st day following the date on which the shipper, 
     carrier, or other person received notice of the failure shall 
     constitute a separate failure.
       (c) Compliance Review.--In reviewing the compliance of 
     hazardous materials shippers, carriers, or other persons 
     subject to part 172 of title 49, Code of Federal Regulations, 
     with the provisions of that part, the Secretary shall utilize 
     risk assessment methodologies to prioritize review and 
     enforcement actions to the most vulnerable and critical 
     hazardous materials transportation operations.
       (d) Transportation Costs Study.--Within 1 year after the 
     date of enactment of this Act, the Secretary of 
     Transportation, in conjunction with the Secretary of Homeland 
     Security, shall study to what extent the insurance, security, 
     and safety costs borne by railroad carriers, motor carriers, 
     pipeline carriers, air carriers, and maritime carriers 
     associated with the transportation of hazardous materials are 
     reflected in the rates paid by shippers of such commodities 
     as compared to the costs and rates respectively for the 
     transportation of non-hazardous materials.
       (e) Funding.--There are authorized to be appropriated to 
     the Secretary of Homeland Security to carry out this 
     section--
       (1) $2,000,000 for fiscal year 2008;
       (2) $2,000,000 for fiscal year 2009; and
       (3) $2,000,000 for fiscal year 2010.

     SEC. 204. TRUCK SECURITY ASSESSMENT.

       Not later than 1 year after the date of enactment of this 
     Act, the Secretary of Transportation shall transmit to the 
     Senate Committee on Commerce, Science, and Transportation, 
     Senate Committee on Finance, the House of Representatives 
     Committee on Transportation and Infrastructure, the House of 
     Representatives Committee on Homeland Security, and the House 
     of Representatives Committe on Ways and Means, a report on 
     security issues related to the trucking industry that 
     includes--
       (1) an assessment of actions already taken to address 
     identified security issues by both public and private 
     entities;
       (2) an assessment of the economic impact that security 
     upgrades of trucks, truck equipment, or truck facilities may 
     have on the trucking industry and its employees, including 
     independent owner-operators;
       (3) an assessment of ongoing research and the need for 
     additional research on truck security; and
       (4) an assessment of industry best practices to enhance 
     security.

     SEC. 205. NATIONAL PUBLIC SECTOR RESPONSE SYSTEM.

       (a) Development.--The Secretary of Homeland Security, in 
     conjunction with the Secretary of Transportation, shall 
     consider the development of a national public sector response 
     system to receive security alerts, emergency messages, and 
     other information used to track the transportation of high 
     hazard materials which can provide accurate, timely, and 
     actionable information to appropriate first responder, law 
     enforcement and public safety, and homeland security 
     officials, as appropriate, regarding accidents, threats, 
     thefts, or other safety and security risks or incidents. In 
     considering the development of this system, they shall 
     consult with law enforcement and public safety officials, 
     hazardous material shippers, motor

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     carriers, railroads, organizations representing hazardous 
     material employees, State transportation and hazardous 
     materials officials, private for-profit and non-profit 
     emergency response organizations, and commercial motor 
     vehicle and hazardous material safety groups. Consideration 
     of development of the national public sector response system 
     shall be based upon the public sector response center 
     developed for the Transportation Security Administration 
     hazardous material truck security pilot program and hazardous 
     material safety and security operational field test 
     undertaken by the Federal Motor Carrier Safety 
     Administration.
       (b) Capability.--The national public sector response system 
     to be considered shall be able to receive, as appropriate--
       (1) negative driver verification alerts;
       (2) out-of-route alerts;
       (3) driver panic or emergency alerts; and
       (4) tampering or release alerts.
       (c) Characteristics.--The national public sector response 
     system to be considered shall--
       (1) be an exception-based system;
       (2) be integrated with other private and public sector 
     operation reporting and response systems and all Federal 
     homeland security threat analysis systems or centers 
     (including the National Response Center); and
       (3) provide users the ability to create rules for alert 
     notification messages.
       (d) Carrier Participation.--The Secretary of Homeland 
     Security shall coordinate with motor carriers and railroads 
     transporting high hazard materials, entities acting on their 
     behalf who receive communication alerts from motor carriers 
     or railroads, or other Federal agencies that receive security 
     and emergency related notification regarding high hazard 
     materials in transit to facilitate the provisions of the 
     information listed in subsection (b) to the national public 
     sector response system to the extent possible if the system 
     is established.
       (e) Data Privacy.--The national public sector response 
     system shall be designed to ensure appropriate protection of 
     data and information relating to motor carriers, railroads, 
     and employees.
       (f) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Senate Committee on Commerce, Science, and Transportation, 
     the House of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security a report on whether to establish a national 
     public sector response system and the estimated total public 
     and private sector costs to establish and annually operate 
     such a system, together with any recommendations for 
     generating private sector participation and investment in the 
     development and operation of such a system.
       (g) Funding.--There are authorized to be appropriated to 
     the Secretary of Homeland Security to carry out this 
     section--
       (1) $1,000,000 for fiscal year 2008;
       (2) $1,000,000 for fiscal year 2009; and
       (3) $1,000,000 for fiscal year 2010.

     SEC. 206. OVER-THE-ROAD BUS SECURITY ASSISTANCE.

       (a) In General.--The Secretary of Homeland Security shall 
     establish a program within the Transportation Security 
     Administration for making grants to private operators of 
     over-the-road buses or over-the-road bus terminal operators 
     for system-wide security improvements to their operations, 
     including--
       (1) constructing and modifying terminals, garages, 
     facilities, or over-the-road buses to assure their security;
       (2) protecting or isolating the driver;
       (3) acquiring, upgrading, installing, or operating 
     equipment, software, or accessorial services for collection, 
     storage, or exchange of passenger and driver information 
     through ticketing systems or otherwise, and information links 
     with government agencies;
       (4) training employees in recognizing and responding to 
     security threats, evacuation procedures, passenger screening 
     procedures, and baggage inspection;
       (5) hiring and training security officers;
       (6) installing cameras and video surveillance equipment on 
     over-the-road buses and at terminals, garages, and over-the-
     road bus facilities;
       (7) creating a program for employee identification or 
     background investigation;
       (8) establishing and upgrading an emergency communications 
     system linking operational headquarters, over-the-road buses, 
     law enforcement, and emergency personnel; and
       (9) implementing and operating passenger screening programs 
     at terminals and on over-the-road buses.
       (b) Federal Share.--The Federal share of the cost for which 
     any grant is made under this section shall be 80 percent.
       (c) Due Consideration.--In making grants under this 
     section, the Secretary shall give due consideration to 
     private operators of over-the-road buses that have taken 
     measures to enhance bus transportation security from those in 
     effect before September 11, 2001, and shall prioritize grant 
     funding based on the magnitude and severity of the security 
     threat to bus passengers and the ability of the funded 
     project to reduce, or respond to, that threat.
       (d) Grant Requirements.--A grant under this section shall 
     be subject to all the terms and conditions that a grant is 
     subject to under section 3038(f) of the Transportation Equity 
     Act for the 21st Century (49 U.S.C. 5310 note; 112 Stat. 
     393).
       (e) Plan Requirement.--
       (1) In general.--The Secretary may not make a grant under 
     this section to a private operator of over-the-road buses 
     until the operator has first submitted to the Secretary--
       (A) a plan for making security improvements described in 
     subsection (a) and the Secretary has approved the plan; and
       (B) such additional information as the Secretary may 
     require to ensure accountability for the obligation and 
     expenditure of amounts made available to the operator under 
     the grant.
       (2) Coordination.--To the extent that an application for a 
     grant under this section proposes security improvements 
     within a specific terminal owned and operated by an entity 
     other than the applicant, the applicant shall demonstrate to 
     the satisfaction of the Secretary that the applicant has 
     coordinated the security improvements for the terminal with 
     that entity.
       (f) Over-the-Road Bus Defined.--In this section, the term 
     ``over-the-road bus'' means a bus characterized by an 
     elevated passenger deck located over a baggage compartment.
       (g) Bus Security Assessment.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall transmit to the 
     Senate Committee on Commerce, Science, and Transportation, 
     the House of Representatives Committee on Transportation and 
     Infrastructure, and the House of Representatives Committee on 
     Homeland Security a preliminary report in accordance with the 
     requirements of this section.
       (2) Contents of preliminary report.--The preliminary report 
     shall include--
       (A) an assessment of the over-the-road bus security grant 
     program;
       (B) an assessment of actions already taken to address 
     identified security issues by both public and private 
     entities and recommendations on whether additional safety and 
     security enforcement actions are needed;
       (C) an assessment of whether additional legislation is 
     needed to provide for the security of Americans traveling on 
     over-the-road buses;
       (D) an assessment of the economic impact that security 
     upgrades of buses and bus facilities may have on the over-
     the-road bus transportation industry and its employees;
       (E) an assessment of ongoing research and the need for 
     additional research on over-the-road bus security, including 
     engine shut-off mechanisms, chemical and biological weapon 
     detection technology, and the feasibility of 
     compartmentalization of the driver; and
       (F) an assessment of industry best practices to enhance 
     security.
       (3) Consultation with industry, labor, and other groups.--
     In carrying out this section, the Secretary shall consult 
     with over-the-road bus management and labor representatives, 
     public safety and law enforcement officials, and the National 
     Academy of Sciences.
       (h) Funding.--There are authorized to be appropriated to 
     the Secretary of Homeland Security to carry out this 
     section--
       (1) $12,000,000 for fiscal year 2008;
       (2) $25,000,000 for fiscal year 2009; and
       (3) $25,000,000 for fiscal year 2010.
     Amounts made available pursuant to this subsection shall 
     remain available until expended.

     SEC. 207. PIPELINE SECURITY AND INCIDENT RECOVERY PLAN.

       (a) In General.--The Secretary of Homeland Security, in 
     consultation with the Secretary of Transportation and the 
     Pipeline and Hazardous Materials Safety Administration, and 
     in accordance with the Memorandum of Understanding Annex 
     executed on August 9, 2006, shall develop a Pipeline Security 
     and Incident Recovery Protocols Plan. The plan shall 
     include--
       (1) a plan for the Federal Government to provide increased 
     security support to the most critical interstate and 
     intrastate natural gas and hazardous liquid transmission 
     pipeline infrastructure and operations as determined under 
     section 208--
       (A) at high or severe security threat levels of alert; and
       (B) when specific security threat information relating to 
     such pipeline infrastructure or operations exists; and
       (2) an incident recovery protocol plan, developed in 
     conjunction with interstate and intrastate transmission and 
     distribution pipeline operators and terminals and facilities 
     operators connected to pipelines, to develop protocols to 
     ensure the continued transportation of natural gas and 
     hazardous liquids to essential markets and for essential 
     public health or national defense uses in the event of an 
     incident affecting the interstate and intrastate natural gas 
     and hazardous liquid transmission and distribution pipeline 
     system, which shall include protocols for granting access to 
     pipeline operators for pipeline infrastructure repair, 
     replacement or bypass following an incident.
       (b) Existing Private and Public Sector Efforts.--The plan 
     shall take into account actions taken or planned by both 
     private and

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     public entities to address identified pipeline security 
     issues and assess the effective integration of such actions.
       (c) Consultation.--In developing the plan under subsection 
     (a), the Secretary of Homeland Security shall consult with 
     the Secretary of Transportation, interstate and intrastate 
     transmission and distribution pipeline operators, pipeline 
     labor, first responders, shippers of hazardous materials, 
     State Departments of Transportation, public safety officials, 
     and other relevant parties.
       (d) Report.--
       (1) Contents.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall transmit to the Committee on Commerce, Science, and 
     Transportation of the Senate, the Committee on Homeland 
     Security of the House of Representatives, and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives a report containing the plan required by 
     subsection (a), along with an estimate of the private and 
     public sector costs to implement any recommendations.
       (2) Format.--The Secretary may submit the report in both 
     classified and redacted formats if the Secretary determines 
     that such action is appropriate or necessary.

     SEC. 208. PIPELINE SECURITY INSPECTIONS AND ENFORCEMENT.

       (a) In General.--Within 1 year after the date of enactment 
     of this Act the Secretary of Homeland Security, in 
     consultation with the Secretary of Transportation, shall 
     establish a program for reviewing pipeline operator adoption 
     of recommendations in the September, 5, 2002, Department of 
     Transportation Research and Special Programs Administration 
     Pipeline Security Information Circular, including the review 
     of pipeline security plans and critical facility inspections.
       (b) Review and Inspection.--Within 9 months after the date 
     of enactment of this Act the Secretary shall complete a 
     review of the pipeline security plan and an inspection of the 
     critical facilities of the 100 most critical pipeline 
     operators covered by the September, 5, 2002, circular, where 
     such facilities have not been inspected for security purposes 
     since September 5, 2002, by either the Department of Homeland 
     Security or the Department of Transportation, as determined 
     by the Secretary in consultation with the Secretary of 
     Transportation.
       (c) Compliance Review Methodology.--In reviewing pipeline 
     operator compliance under subsections (a) and (b), the 
     Secretary shall utilize risk assessment methodologies to 
     prioritize vulnerabilities and to target inspection and 
     enforcement actions to the most vulnerable and critical 
     pipeline assets.
       (d) Regulations.--Within 1 year after the date of enactment 
     of this Act, the Secretary shall transmit to pipeline 
     operators and the Secretary of Transportation security 
     recommendations for natural gas and hazardous liquid 
     pipelines and pipeline facilities. If the Secretary of 
     Homeland Security determines that regulations are 
     appropriate, the Secretary shall promulgate such regulations 
     and carry out necessary inspection and enforcement actions. 
     Any regulations should incorporate the guidance provided to 
     pipeline operators by the September 5, 2002, Department of 
     Transportation Research and Special Programs Administration's 
     Pipeline Security Information Circular and contain additional 
     requirements as necessary based upon the results of the 
     inspections performed under subsection (b). The regulations 
     shall include the imposition of civil penalties for non-
     compliance.
       (e) Funding.--There are authorized to be appropriated to 
     the Secretary of Homeland Security to carry out this 
     section--
       (1) $2,000,000 for fiscal year 2008; and
       (2) $2,000,000 for fiscal year 2009.

     SEC. 209. TECHNICAL CORRECTIONS.

       (a) Hazmat Licenses.--Section 5103a of title 49, United 
     States Code, is amended--
       (1) by inserting ``of Homeland Security'' after 
     ``Secretary'' each place it appears in subsections (a)(1), 
     (d)(1)(b), and (e); and
       (2) by redesignating subsection (h) as subsection (i) and 
     inserting the following after subsection (g):
       ``(h) Relationship to Transportation Security Cards.--Upon 
     application, a State shall issue to an individual a license 
     to operate a motor vehicle transporting in commerce a 
     hazardous material without the security assessment required 
     by this section, provided the individual meets all other 
     applicable requirements for such a license, if the Secretary 
     of Homeland Security has previously determined, under section 
     70105 of title 46, United States Code, that the individual 
     does not pose a security risk.''.

     SEC. 210. CERTAIN PERSONNEL LIMITATIONS NOT TO APPLY.

       Any statutory limitation on the number of employees in the 
     Transportation Security Administration of the Department of 
     Transportation, before or after its transfer to the 
     Department of Homeland Security, does not apply to the extent 
     that any such employees are responsible for implementing the 
     provisions of this Act.

  Mr. LAUTENBERG. Mr. President, over five years since 9/11, much of 
our Nation's transportation systems remain vulnerable to terror attack. 
There are many reasons for the lack of action by the Federal 
Government, but we can no longer simply look the other way. Last year, 
the Congress had an opportunity to make significant strides to improve 
the security of our freight and passenger rail systems, highways, 
public transit systems, trucking and intercity bus operations, and 
pipeline systems. The Senate passed my amendments and amendments by 
other Senators to the SAFE Ports Act to address the security of these 
important modes of transportation. In fact, the House of 
Representatives overwhelmingly voted to instruct its conferees to 
include these provisions in the final conference report of the SAFE 
Ports Act.
  Unfortunately, House Republican leaders stripped them out of the 
final version of the bill behind closed doors, instead enacting a ban 
on internet gambling. The actions by the House Republican leaders 
further delayed real progress in securing our homeland from terror. I 
believe the Federal Government must take a leadership role in securing 
our country from terrorism. States cannot on their own be left 
responsible for securing these interstate modes of transportation.
  That is why I am proud to be an author of the Surface Transportation 
and Rail Security Act of 2007. I have worked with my committee co-
chairmen--Senator Inouye and Senator Stevens--to ensure this bill gets 
quickly considered. Its provisions are not new to anyone. They were 
considered, and agreed to, merely four months ago by the Senate. I am 
hopeful that they will again be quickly considered and adopted.
  This bill specifically requires accountability from the Department of 
Homeland Security, by ensuring that our rail systems have been analyzed 
for security risk. It authorizes necessary funding for making these 
security improvements and specifically includes $400 million for tunnel 
security improvements in the New Jersey/New York region. I will seek 
further Federal funding for improving security of the New Jersey/New 
York region's tunnels and bridges in additional legislation to be 
introduced this month, by working with my colleagues on the appropriate 
committees in the Senate.
  Last month, the Bush Administration proposed certain improvements to 
our nation's rail systems, but these proposals fell far short of what 
is needed to secure our country. For instance, the Administration 
proposal fails to take specific actions to improve the security of 
railroad stations, bridges, and tunnels. More people use Amtrak's Penn 
Station in New York City than use all three major New Jersey-New York 
region airports, Newark Liberty International, JFK, and LaGuardia 
airports, every day. This bill takes a much more comprehensive 
approach, by authorizing the funding needed to make these important 
security improvements.
  Our Nation's freight rail systems move some 12 billion tons of cargo, 
but we are not doing enough to protect those systems. Some of this 
cargo includes hazardous chemicals and other dangerous materials which 
travel within feet of our schools, hospitals, neighborhoods, and snake 
right through the middle of our cities. The potential for disaster 
looms large, as the misuse of these shipments can produce an effect 
that a weapon of mass destruction would on our communities. Clearly 
much more thought needs to be put into how we move this dangerous 
cargo, and the Federal Government must be involved. The Bush 
Administration must agree with this assessment, as their proposal would 
strictly forbid states or communities from acting on their own to 
protect their residents from these risks.
  I look forward to working with my colleagues to ensure that this 
important legislation gets considered and enacted soon. We cannot 
afford to delay any further these vital security improvements to our 
country.
                                 ______
                                 
      Mr. SPECTER (for himself and Mr. Leahy):
  S. 185. A bill to restore habeas corpus for those detained by the 
United States; to the Committee on the Judiciary.
  Mr. SPECTER. Mr. President, I will introduce legislation denominated 
the

[[Page 247]]

Habeas Corpus Restoration Act. Last year, in the Military Commissions 
Act, the constitutional right of habeas corpus was attempted to be 
abrogated. I fought to pass an amendment to strike that provision of 
the Act which was voted 51 to 48. I say ``attempted to be abrogated'' 
because, in my legal judgment, that provision in the Act is 
unconstitutional.
  It is hard to see how there can be legislation to eliminate the 
constitutional right to habeas corpus when the Constitution is explicit 
that habeas corpus may not be suspended except in time of invasion or 
rebellion, and we do not have either of those circumstances present, as 
was conceded by the advocates of the legislation last year to take away 
the right of habeas corpus.
  We have had Supreme Court decisions which have made it plain that 
habeas corpus is available to noncitizens and that habeas corpus 
applies to territory controlled by the United States, specifically, 
including Guantanamo. More recently, however, we had a decision in the 
U.S. District Court for the District of Columbia applying the habeas 
corpus jurisdiction stripping provision of the Military Commissions 
Act, but I believe we will see the appellate courts strike down this 
legislative provision.
  The contention that the gravamen or the substance of habeas corpus is 
provided by the statutory review to the Circuit Court of the District 
of Columbia is fallacious on its face. All the statute does is allow 
for a review of the regularity of proceedings. In my prepared 
statement, I cite an example of litigation before a federal district 
court, where a person charged with consorting with al-Qaida asked: 
``What was the name of the person? He asked: What was the name of the 
person I'm supposed to have consorted with? And the Presiding Officer 
said: I don't know, which, according to the opinion, brought uproarious 
laughter from the audience. Here a man is charged with consorting with 
al-Qaida, and they cannot even tell him the name of the person he is 
alleged to have consorted with.
  The hearing before the Judiciary Committee, which I chaired, 
contained expansive, detailed evidence about the proceedings under the 
review provisions in Guantanamo, which are grossly, totally 
insufficient.
  The New York Times had an extensive article on this subject, starting 
on the front page, last Sunday, and continuing on a full page on the 
back page about what is happening at Guantanamo. It is hard to see how 
in America, or in a jurisdiction controlled by the United States, these 
proceedings could substitute for even rudimentary due process of law.
  As I might add, the Habeas Corpus Restoration Act was introduced in 
the 109th Congress. I offered the bill on behalf of myself and Senator 
Leahy. Consequently, we had this bill listed in the 109th Congress as a 
Specter-Leahy bill, and with Senator Leahy's consent, it is denominated 
as the Specter-Leahy bill again in the 110th Congress.
  Mr. President, I ask unanimous consent that my prepared text be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                 Habeas Corpus Restoration Act of 2007

       Mr. SPECTER. Mr. President, I seek recognition today to 
     introduce the ``Habeas Corpus Restoration Act of 2007.'' Last 
     September, during debate on the Military Commissions Act, I 
     introduced an amendment to strike section 7 of the Act and 
     thereby preserve the constitutional right of habeas corpus 
     for the approximately 450 individuals detained at Guantanamo 
     Bay. Because my amendment was not agreed to, by a narrow vote 
     of 48-51, the right to the writ of habeas corpus was denied 
     to those detainees. The privilege of the writ of habeas 
     corpus has therefore been suspended.
       On December 5, with my colleague Senator Leahy, I 
     introduced the ``Habeas Corpus Restoration Act of 2006'' to 
     restore the writ of habeas corpus and bring this country back 
     into compliance with the United States Constitution. After 
     all, the United States Constitution is unambiguous in Article 
     1, Section 9, Clause 2, where it states: ``The privilege of 
     the Writ of Habeas Corpus shall not be suspended, unless when 
     in Cases of Rebellion or Invasion the public Safety may 
     require it.'' Today, along with Senator Leahy, I am 
     reintroducing this important legislation.
       The Habeas Corpus Restoration Act is very simple: It 
     strikes the federal habeas corpus limitations imposed by the 
     Military Commissions Act and the Detainee Treatment Act. In 
     so doing, the bill affords aliens detained by the United 
     States within its territorial jurisdiction, including those 
     detained at the Guantanamo Bay Naval Base, the right to 
     challenge their detention and military commission trial 
     procedures by an application for writ of habeas corpus. It 
     will ensure that the constitutional right of habeas corpus is 
     afforded to all individuals detained by the United States 
     government.
       The Framers explicitly intended to extend habeas 
     protections to all, absent a case of rebellion, invasion, or 
     the interest of public safety. This principle was ratified by 
     the Supreme Court in the case of Hamdi v. Rumsfeld, where 
     Justice O'Connor stated ``[a]ll agree that absent suspension, 
     the writ of habeas corpus remains available to every 
     individual detained within the United States.''
       This protection extends to those detained in Guantanamo 
     since it is a facility exclusively under the control of the 
     United States. In Rasul v. Bush, the Supreme Court held that 
     habeas corpus rights apply even to aliens held at Guantanamo 
     Bay. One does not need to be a United States citizen to be 
     afforded basic constitutional habeas corpus rights and the 
     U.S. Constitution draws no distinction between American 
     citizens and aliens held in U.S. custody.
       Although some argue that Combatant Status Review Tribunals, 
     commonly referred to as ``CSRTs,'' are an adequate and 
     effective means to challenge detention in accordance with the 
     Supreme Court's decision in Swain v. Pressley, I couldn't 
     disagree more. In my view, CSRTs are a sham. We have learned 
     a great deal about the cursory review provided by these 
     tribunals at Guantanamo Bay. They operate with very little 
     information. Somebody is picked up on the battlefield. There 
     is no record preserved as to what that individual did. If 
     there was a weapon involved, it was collected and mixed in 
     with many other weapons. There is no chain of custody or even 
     a record of what was seized. In sum, CSRTs are nothing more 
     than a one-sided interrogation by the military tribunal 
     members. These proceedings simply do not comport with basic 
     fairness because the individuals detained do not have the 
     right to know what evidence there is against them. As Justice 
     O'Connor wrote in her plurality opinion in the Hamdi case, 
     ``[a]n interrogation by one's captor, however effective an 
     intelligence-gathering tool, hardly constitutes a 
     constitutionally adequate factfinding before a neutral 
     decisionmaker.'' It is essential that we provide an adequate 
     means to evaluate the legality of an individual's continued 
     detention.
       Typically, the CSRT will advise the detainee that the 
     evidence against them is classified and restrict access. The 
     U.S. District Court in the In re Guantanamo case criticized 
     the manner in which the CSRT required detainees to answer 
     allegations based on information that cannot be disclosed. In 
     a comical scene during the hearing, a detainee advised the 
     tribunal that he could not answer an allegation that he had 
     associated with a known al Qaida operative because the 
     tribunal would not provide the name of the alleged operative. 
     Since the tribunal would not even provide the name of the 
     operative, the detainee could not answer even the most basic 
     of allegations. While laughter filled the courtroom at the 
     time when the detainee could not answer this simple 
     allegation, we should not forget the seriousness of this 
     process and the manner in which we are treating detainees of 
     the United States.
       The Military Commission Act's habeas corpus provisions were 
     debated at a Senate Judiciary Committee hearing held on 
     September 25, 2006. At the hearing, I heard from a 
     distinguished and varied panel of witnesses, including the 
     attorney who represented Hamdan before the Supreme Court. 
     Perhaps most compelling during the hearing was the testimony 
     of the former U.S. Attorney for the Northern District of 
     Illinois, Thomas Sullivan, who has been to Guantanamo on many 
     occasions and has represented many detainees. Mr. Sullivan 
     was especially compelling when he made reference to a number 
     of individual cases where the proceedings before the CSRT 
     were completely insufficient. He cited hearings where 
     individuals were summoned before the tribunal, but did not 
     speak the language, did not have an attorney, did not have 
     access to the information which was presented against them, 
     and continued to be detained. These individuals either did 
     not know what their charges were, or those charges of which 
     they were aware were vague and illusory. For example, in the 
     case of Abdul Hadi al Siba'i, Mr. Sullivan described how his 
     client had been returned to Saudi Arabia after several months 
     of detainment and without a trial or any notice, 
     compensation, or apology. One can only suspect that the 
     United States government understood that the continued 
     detainment of this particular individual was wrong and would 
     expose weaknesses at trial.
       The failure to afford habeas review rights to detainees has 
     concerned Kenneth Starr, former Solicitor General and U.S. 
     Court of Appeals Judge for the District of Columbia. In a 
     letter directed to me as Judiciary Chairman, Mr. Starr 
     expressed his concern ``about

[[Page 248]]

     the limitations on writ of habeas corpus contained in the 
     comprehensive military commissions bill.''
       If Justice O'Connor feels that detainees have the right to 
     habeas review, but we are denying them this avenue of review, 
     how are detainees supposed to rebut facts that they are not 
     allowed to confront? This is why federal courts should be 
     open to hear habeas petitions of these detainees. The Supreme 
     Court is clear, and we should apply this precedent to the 
     current situation involving detainees at Guantanamo Bay.
       On the recent 5-year anniversary of 9/11, President Bush 
     repeated his commitment to bring terrorists to justice. 
     However, statistics tell us that most of the terrorists at 
     Guantanamo will never see the inside of a courtroom. Hundreds 
     will be held indefinitely. Of the over 400 detainees who 
     remain at Guantanamo, the Pentagon says another 110 have been 
     labeled as ``ready to release.'' But the real number we need 
     to look at is the remaining 325 or so detainees. How many 
     will face trial? Media reports citing Pentagon sources 
     suggest that only approximately 70 detainees will face trial.
       This leaves approximately 250 detainees--more than half of 
     those still at Guantanamo--who will be held indefinitely 
     simply because the United States considers them to be too 
     dangerous or in possession of sensitive intelligence 
     information. These detainees will have no ability to 
     challenge their confinement. My bill will ensure these 
     individuals held in U.S. custody will be afforded the basic 
     constitutional right to petition for habeas corpus review.
       The short history of the Military Commissions Act 
     underscores the need for this legislation. The day after the 
     Act became law, the Justice Department filed notices in each 
     of the 181 Guantanamo habeas cases pending before the United 
     States District Court for the District of Columbia, 
     highlighting the jurisdiction-stripping and retroactivity 
     provisions of the Act. In at least one noteworthy case, the 
     District Court has already agreed that it now lacks authority 
     to hear such a habeas petition.
       On December 13, 2006, Judge James Robertson dismissed the 
     habeas petition of Salim Ahmed Hamdan--of Hamdan v. Rumsfeld 
     fame--for lack of subject matter jurisdiction. While I 
     disagree with Judge Robertson's conclusion that Hamdan has 
     ``no constitutional entitlement to habeas'' because he was 
     detained in Guantanamo rather than inside the United States, 
     this conclusion demonstrates the lack of judicial recourse 
     available to such detainees. Of course, the Military 
     Commissions Act is not strictly limited to those held in 
     Guantanamo. In another case, on November 13, 2006, the 
     Department of Justice filed a motion with the U.S. Court of 
     Appeals for the Fourth Circuit to dismiss the habeas petition 
     of alleged enemy combatant Ali Saleh Kahlah al-Marri. Unlike 
     Hamdan and other Guantanamo detainees, al-Marri has been 
     detained inside the United States. While we could simply wait 
     for the Supreme Court to rule on the constitutionality of 
     denying habeas rights to such detainees, I believe the United 
     States Congress has an obligation to act now and reverse this 
     wrong.

  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 185

       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 ``Habeas Corpus Restoration 
     Act of 2007''.

     SEC. 2. RESTORATION OF HABEAS CORPUS FOR THOSE DETAINED BY 
                   THE UNITED STATES.

       (a) In General.--Section 2241 of title 28, United States 
     Code, is amended by striking subsection (e).
       (b) Title 10.--Section 950j of title 10, United States 
     Code, is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Limited Review of Military Commission Procedures and 
     Actions.--Except as otherwise provided in this chapter or in 
     section 2241 of title 28 or any other habeas corpus 
     provision, and notwithstanding any other provision of law, no 
     court, justice, or judge shall have jurisdiction to hear or 
     consider any claim or cause of action whatsoever, including 
     any action pending on or filed after the date of the 
     enactment of the Military Commissions Act of 2006, relating 
     to the prosecution, trial, or judgment of a military 
     commission under this chapter, including challenges to the 
     lawfulness of procedures of military commissions under this 
     chapter.''.

     SEC. 3. EFFECTIVE DATE AND APPLICABILITY.

       The amendments made by this Act shall--
       (1) take effect on the date of the enactment of this Act; 
     and
       (2) apply to any case that is pending on or after the date 
     of enactment of this Act.

  Mr. LEAHY. Mr. President, on the first day of this new Congress, I 
join Senator Specter to reintroduce a bill to restore the Great Writ of 
habeas corpus, a cornerstone of American liberty since the founding of 
this Nation. The Habeas Corpus Restoration Act of 2007 bill continues 
our efforts to amend last year's Military Commissions Act, to right a 
wrong and to restore a basic protection to American law. This is an 
issue on which we continue to work together and urge Senators on both 
sides of the aisle to join with us.
  As Justice Scalia wrote in the Hamdi case: ``The very core of liberty 
secured by our Anglo-Saxon system of separated powers has been freedom 
from indefinite imprisonment at the will of the Executive.'' The remedy 
that secures that most basic of freedoms is habeas corpus. It provides 
a check against arbitrary detentions and constitutional violations. It 
guarantees an opportunity to go to court, with the aid of a lawyer, to 
prove one's innocence. This fundamental protection was rolled back in 
an unprecedented and unnecessary way in the run up to last fall's 
election by passage of the Military Commissions Act.
  The Military Commissions Act eliminated that right, permanently, for 
any non-citizen determined to be an enemy combatant, or even 
``awaiting'' such a determination. That includes the approximately 12 
million lawful permanent residents in the United States today, people 
who work and pay taxes in America and are lawful residents. This new 
law means that any of these people can be detained, forever, without 
any ability to challenge their detention Federal court--or anywhere 
else--simply on the Government's say-so that they are awaiting 
determination whether they are enemy combatants.
  I deeply regret that Senator Specter and I were unsuccessful in our 
efforts to stop this injustice when the President and the Republican 
leadership insisted on rushing the Military Commissions Act through 
Congress in the weeks before the recent elections. We proposed an 
amendment that would have removed the habeas-stripping provision from 
the Military Commissions Act. We fell just three votes short in those 
political charged days. It is my hope that the new Senate and new 
Congress will reconsider this matter, restore this fundamental 
protection and revitalize our tradition of checks and balances.
  Giving Government such raw, unfettered power as this law does should 
concern every American. Last fall I spelled out a nightmare scenario 
about a hard-working legal permanent resident who makes an innocent 
donation to, among other charities, a Muslim charity that the 
Government secretly suspects might be a source of funding for critics 
of the United States Government. I suggested that, on the basis of this 
donation and perhaps a report of ``suspicious behavior'' from an 
overzealous neighbor, the permanent resident could be brought in for 
questioning, denied a lawyer, confined, and even tortured. Such a 
person would have no recourse in the courts for years, for decades, 
forever.
  Many people viewed this kind of nightmare scenario as fanciful, just 
the rhetoric of a politician. It was not. It is all spelled out clearly 
in the language of the law that this body passed. In November, the 
scenario I spelled out was confirmed by the Department of Justice 
itself in a legal brief submitted in federal court in Virginia. The 
Justice Department, in a brief to dismiss a detainee's habeas case, 
said that the Military Commissions Act allows the Government to detain 
any non-citizen designated an enemy combatant without giving that 
person any ability to challenge his detention in court. This is true, 
the Justice Department said, even for someone arrested and imprisoned 
in the United States. The Washington Post wrote that the brief ``raises 
the possibility that any of the millions of immigrants living in the 
United States could be subject to indefinite detention if they are 
accused of ties to terrorist groups.''
  In fact, the situation is even more stark than The Washington Post 
story suggested. The Justice Department's brief says that the 
Government can detain any non-citizen declared to be an enemy 
combatant. But the law this

[[Page 249]]

Congress passed says the Government need not even make that 
declaration: They can hold people indefinitely who are awaiting 
determination whether or not they are enemy combatants.
  It gets worse. Republican leaders in the Senate followed the White 
House's lead and greatly expanded the definition of ``enemy 
combatants'' in the dark of night in the final days before the bill's 
passage, so that enemy combatants need not be soldiers on any 
battlefield. They can be people who donate small amounts of money, or 
people that any group of decision-makers selected by the President 
decides to call enemy combatants. The possibilities are chilling.
  The Administration has made it clear that they intend to use every 
expansive definition and unchecked power given to them by the new law. 
November's Justice Department brief made clear that any of our legal 
immigrants could be held indefinitely without recourse in court. 
Earlier in November, the Justice Department went to court to say that 
detainees who had been held in secret CIA prisons could not even meet 
with lawyers because they might tell their lawyers about the cruel 
interrogation techniques used against them. In other words, if our 
Government tortures somebody, that person loses his right to a lawyer 
because he might tell the lawyer about having been tortured. A law 
professor was quoted as saying about the Government's position in that 
case: ``Kafka-esque doesn't do it justice. This is `Alice in 
Wonderland.'''
  We have eliminated basic legal and human rights for the 12 million 
lawful permanent residents who live and work among us, to say nothing 
of the millions of other legal immigrants and visitors who we welcome 
to our shores each year. We have removed a vital check that our legal 
system provides against the government arbitrarily detaining people for 
life without charge. We may well have also made many of our remaining 
limits against torture and cruel and inhuman treatment obsolete because 
they are unenforceable. We have removed the mechanism the Constitution 
provides to check government overreaching and lawlessness.
  This is wrong. It is unconstitutional. It is un-American. It is 
designed to ensure that the Bush-Cheney Administration will never again 
be embarrassed by a United States Supreme Court decision reviewing its 
unlawful abuses of power. The conservative Supreme Court, with seven of 
its nine members appointed by Republican Presidents, has been the only 
check on this Administration's lawlessness. Certainly the last Congress 
did not do it. With passage of the Military Commissions Act, the 
Republican Congress completed the job of eviscerating its role as a 
check and balance on the Administration.
  Some Senators uneasy about the Military Commissions Act's disastrous 
habeas provision took solace in the thought that it would be struck 
down by the courts. Instead, the first court to consider that 
provision, a federal court in the District of Columbia, upheld the 
provision. We should not outsource our moral, legal and constitutional 
responsibility to the courts. Congress must be accountable for its 
actions and we should act to right this wrong.
  Abolishing habeas corpus for anyone who the Government thinks might 
have assisted enemies of the United States is unnecessary and morally 
wrong. It is a betrayal of the most basic values of freedom for which 
America stands. It makes a mockery of the administration's lofty 
rhetoric about exporting freedom across the globe.
  We should take steps to ensure that our enemies can be brought to 
justice efficiently and quickly. I introduced a bill to do that back in 
2002, as did Senator Specter, when we each proposed a set of laws to 
establish military commissions. The Bush-Cheney Administration rejected 
our efforts and designed a regime the United States Supreme Court 
determined to be unlawful. Establishing appropriate military 
commissions is not the question. We all agree to do that. What we need 
to revisit is the suspension of the writ of habeas corpus for millions 
of legal immigrants and others, denying their right to challenge 
indefinite detainment on the, government's say-so.
  It is from strength that America should defend our values and our 
Constitution. It takes commitment to those values to demand 
accountability from the Government. In standing up for American values 
and security, I will keep working on this issue until we restore the 
checks and balances that are fundamental to preserving the liberties 
that define us as a nation. We can ensure our security without giving 
up our liberty.
                                 ______
                                 
      By Mr. SPECTER:
  S. 186. A bill to provide appropriate protection to attorney-client 
privileged communications and attorney work product; to the Committee 
on the Judiciary.
  Mr. SPECTER. Mr. President, the legislation which I am introducing is 
the Attorney-Client Privilege Protection Act. This legislation was 
previously introduced in the 109th Congress.
  In 2003, the Department of Justice adopted the provisions of the so-
called Thompson Memorandum, which allowed prosecutors to request that 
companies under investigation waive their attorney-client privilege, 
and that, absent such a waiver, prosecutors may consider the company's 
refusal to waive privilege in the charging process. As a result, the 
legal and business community complained that, if the attorney-client 
privilege is not waived, the corporation and individuals may get a 
stiffer charge.
  The Department of Justice has recently revised the Thompson 
Memorandum, with Deputy Attorney General McNulty substituting what is 
now known as the McNulty Memorandum. Prior to the release of the 
McNulty Memorandum, I had a number of discussions with Department of 
Justice officials, and I thank the Department of Justice for the effort 
which they have made, but it is not sufficient. The new memorandum is 
inadequate in its protection of the attorney-client privilege.
  Although the McNulty Memorandum is inadequate in failing to protect 
attorney-client privilege, it does improve another part of the 
Department of Justice's prior procedure under the Thompson Memorandum, 
which effectively denied the payment of counsel fees so that people who 
were charged were unable to defend themselves without bankrupting 
themselves in defense. That provision of the earlier Thompson 
Memorandum was declared unconstitutional in a case in the Southern 
District of New York.
  Mr. President, again, I ask unanimous consent that the full text of 
my statement be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

            Attorney-Client Privilege Protection Act of 2006

       Mr. SPECTER. Mr. President, I seek recognition today to 
     introduce the ``Attorney-Client Privilege Protection Act of 
     2007,'' which remains necessary despite Deputy Attorney 
     General Paul McNulty's issuance of a new set of corporate 
     prosecution guidelines on December 12 of last year. Although 
     the new McNulty memorandum, which replaces the memorandum 
     issued by former Deputy Attorney General Larry Thompson, 
     makes some improvements, the revision continues to erode the 
     attorney-client relationship by allowing prosecutors to 
     request privileged information backed by the hammer of 
     prosecution if the request is denied.
       This bill will protect the sanctity of the attorney-client 
     relationship by prohibiting federal prosecutors and 
     investigators from requesting waiver of attorney-client 
     privilege and attorney work product protections in corporate 
     investigations. The bill would similarly prohibit the 
     government from conditioning charging decisions or any 
     adverse treatment on an organization's payment of employee 
     legal fees, invocation of the attorney-client privilege, or 
     agreement to a joint defense agreement. This bill will 
     hopefully force the Department of Justice to issue a 
     meaningful change to its corporate charging policies beyond 
     the changes in the McNulty Memorandum, which came ``a day 
     late and a dollar short'' according to Frederick Krebs, the 
     president of the Association of Corporate Counsel.
       There is no need to wait to see how the McNulty memorandum 
     will operate in practice. The flaws in that memorandum are 
     already apparent. Moreover, before the issuance of the 
     McNulty memorandum last month, the Thompson memorandum has

[[Page 250]]

     been undermining the attorney-client relationship in the 
     corporate context for nearly 4 years. In January 2003, then-
     Deputy Attorney General Larry Thompson issued a memorandum to 
     all Justice Department components throughout the United 
     States entitled ``Principles of Federal Prosecution of 
     Business Organizations.'' This memorandum, which was prepared 
     on the heels of the establishment of the President's 
     Corporate Fraud Task Force, set forth various factors for 
     federal prosecutors to consider when deciding to prosecute 
     corporations or other business organizations. The so-called 
     ``Thompson memorandum'' lists a corporation's ``cooperation 
     and voluntary disclosure'' as one of the chief factors to be 
     considered in making a charging decision.
       Just as the Thompson memorandum was issued with laudable 
     goals in mind, the McNulty memorandum was, no doubt, the 
     product of good intentions. Nevertheless, it continues to 
     threaten the viability of the attorney-client privilege in 
     business organizations by allowing prosecutors to request 
     privilege waiver upon a finding of ``legitimate need''--a 
     standard that should guide the most basic of prosecutorial 
     requests, not sensitive requests for privileged information.
       Just as the standard is inadequate, so is the level of 
     internal review. Although the McNulty memorandum establishes 
     some internal review for such waiver requests, it does so in 
     a way that diminishes the importance of a corporate client's 
     ability to communicate with its lawyers. The memo creates two 
     different categories of privileged information and provides 
     very little protection to client communications to the 
     attorney while providing significant protection and DOJ 
     internal review for attorney communications to the client. 
     The memo identifies the two subcategories of privileged 
     information as: (1) ``purely factual information,'' which 
     consists of witness statements, interview memoranda, factual 
     chronologies and summaries, and reports containing 
     investigative facts documented by counsel; and (2) attorney 
     advice to the client, including attorney notes, memoranda, 
     and notes.
       The first category of information, formally labeled 
     Category 1 information by DOJ, may be requested with approval 
     at the U.S. Attorney-level with consultation with the 
     Assistant Attorney General for the Criminal Division. The 
     consultation requirement is not defined in any way in the 
     memo. By failing to define what it means ``to consult'' with 
     the Assistant Attorney General, the McNulty memo fails to say 
     whether the Assistant Attorney General can overrule the U.S. 
     Attorney's decision. Unless there is a meaningful review of 
     the U.S. Attorney's decision, it is difficult to see how the 
     McNulty memo provides better safeguards for Category 1 
     information than the interim-McCallum memo, issued in October 
     2005, which mandated a U.S. Attorney-level ``written waiver 
     review process'' for all attorney client privilege waiver 
     requests.
       As noted above, the new McNulty memo does provide greater 
     protections for attorney advice and communication to the 
     client, which the memo labels ``Category 2'' information. The 
     McNulty memo protects Category 2 information in the first 
     instance by making clear that it may be sought only if the 
     prosecutor thinks Category 1 information provides an 
     incomplete basis for the investigation. If such a request is 
     deemed necessary, the request for Category 2 information must 
     be approved by the Deputy Attorney General.
       Although the McNulty memo provides greater protection for 
     Category 2 information, the memo does not explain why such 
     information will ever be needed by prosecutors outside of 
     attorney advice in furtherance of a crime or fraud or where 
     the advice is subject to an advice of counsel defense, both 
     of which are expressly exempted from the waiver request 
     process outlined in the memorandum. Thus, the only two types 
     of attorney advice that are likely to be relevant in a 
     criminal investigation are exempted from the memo's coverage. 
     With that exception, I fail to see why Category 2 information 
     is needed at all. Prosecutors do not need to know what 
     attorneys are advising their clients unless the advice is in 
     furtherance of a crime or the client puts the advice in issue 
     by raising it as a defense.
       No less than the Thompson memo, the new McNulty memo 
     discourages corporate employees from having frank 
     conversations with lawyers, which makes it difficult for 
     companies who desire to prevent possible corruption from 
     making appropriate remedies. The Department of Justice will 
     not prevent corporate misconduct if it continues to 
     inadvertently discourage the types of internal investigations 
     and dialogues corporate officials need to detect and prevent 
     corporate fraud.
       In the next rewrite of its corporate prosecution 
     guidelines, the Administration needs to look in the mirror. 
     If the President refused to disclose documents or information 
     after invoking a claim of executive privilege, it would not 
     consider itself to be ``uncooperative.'' Rather, the 
     executive would simply be doing its job in representing a 
     client. Yet, when the tables are turned, the Justice 
     Department has memorialized a policy instructing its 
     prosecutors to discourage attorneys from doing their job 
     effectively.
       The right to counsel is too important to be passed over for 
     prosecutorial convenience. It has been engrained in American 
     jurisprudence since the 18th century when the Bill of Rights 
     was adopted. The 6th Amendment is a fundamental right 
     afforded to individuals charged with a crime and guarantees 
     proper representation by counsel throughout a prosecution. 
     However, the right to counsel is largely ineffective unless 
     the confidential communications made by a client to his or 
     her lawyer are protected by law. As the Supreme Court 
     observed in Upjohn Co. v. United States, ``the attorney-
     client privilege is the oldest of the privileges for 
     confidential communications known to the common law.'' When 
     the Upjohn Court affirmed that attorney-client privilege 
     protections apply to corporate internal legal dialogue, the 
     Court manifested in the law the importance of the attorney-
     client privilege in encouraging full and frank communication 
     between attorneys and their clients, as well as the broader 
     public interests the privilege serves in fostering the 
     observance of law and the administration of justice. The 
     Upjohn Court also made clear that value of legal advice and 
     advocacy depends on the lawyer having been fully informed by 
     the client.
       As a former prosecutor, I am acutely aware of the enormous 
     power and tools a prosecutor has at his or her disposal. As 
     former Supreme Court Justice and then Attorney-General Robert 
     Jackson stated in his 1940 speech to U.S. Attorneys, ``The 
     prosecutor has more control over life, liberty, and 
     reputation than any other person in America. His discretion 
     is tremendous. He can have citizens investigated and, if he 
     is that kind of person, he can have this done to the tune of 
     public statements and veiled or unveiled intimations.'' Thus, 
     the federal prosecutor has enough power without the coercive 
     tools of the privilege waiver, whether that waiver policy is 
     embodied in the Holder, Thompson, McCallum, or McNulty 
     memorandum. I see no need to have the Justice Department 
     publicly express a policy that encourages waiver of attorney-
     client privilege, especially where the policy is backed by 
     the heavy hammer of possible criminal charges. Cases should 
     be prosecuted based on their merits, not based on how well an 
     organization works with the prosecutor. As Justice Jackson 
     warned in the same speech, ``the most dangerous power of the 
     prosecutor [is] that he will pick people that he thinks he 
     should get, rather than pick cases that need to be 
     prosecuted.''
       Just as the Holder and Thompson memoranda before it, the 
     McNulty memorandum embodies bad public policy by empowering 
     federal prosecutors at the expense of the attorney-client 
     relationship. Consequently, I echo the comments of the 
     following organizations and individuals who have criticized 
     the McNulty memorandum:

     ``The Justice Department's new corporate charging guidelines 
     for federal prosecutors fall far short of what is needed to 
     prevent further erosion of fundamental attorney-client 
     privilege, work product, and employee protections during 
     government investigations.''--Karen Mathis, ABA President.

     ``While containing some improvements, this new policy does 
     not adequately protect the right to attorney-client 
     privilege, and unwisely ignores many of the recommendations 
     of former senior Justice Department officials, the American 
     Bar Association, and a massive coalition of some of the 
     nation's most prominent business, legal, and civil rights 
     groups.''--Stanton Anderson, U.S. Chamber of Commerce.

     ``The McNulty Memorandum still falls short of protecting the 
     attorney-client privilege, and the related work product 
     doctrine, which derives from it.''--Martin Pinales, 
     President, National Association of Criminal Defense Lawyers.

     ``[T]his memo is a day late and a dollar short. Asking 
     prosecutors to get permission before formally requesting that 
     companies waive their attorney-client privilege will not put 
     an end to the `culture of waiver' that exists within DOJ. Our 
     research shows that more often than not, requests for waiver 
     are not asked for outright, but are coercively inferred.''--
     Frederick Krebs, President, Association of Corporate Counsel.

     ``Deputy Attorney General Paul McNulty's memorandum is a 
     disappointment. It perpetuates the dynamic that compels 
     companies to ``voluntarily'' waive their rights in order to 
     get favorable treatment or to avoid the death penalty of a 
     federal indictment.''--Caroline Fredrickson, Director, ACLU 
     Washington legislative office; George Landrith, President, 
     Frontiers of Freedom; Stephanie A. Martz, Director, White 
     Collar Crime Project, National Association of Criminal 
     Defense Lawyers; Daniel J. Popeo, Chairman, Washington Legal 
     Foundation, in a letter to the editor of USA Today.

       My bill amends title 18 of the United States Code by adding 
     a new section, Sec. 3014, that would prohibit any agent or 
     attorney of the United States government in any criminal or 
     civil case to demand, request or condition treatment on the 
     disclosure of any communication protected by the attorney-
     client privilege or attorney work product. The bill would 
     also prohibit government lawyers and agents from conditioning 
     any charge or adverse treatment on whether an organization 
     pays attorneys' fees for its employees or signs a joint 
     defense agreement.

[[Page 251]]

       While I am glad that the Justice Department revised the 
     Thompson memorandum, I am hopeful that the Department will 
     act again to reform the McNulty memorandum. In the absence of 
     such action, this legislation is needed to ensure that basic 
     protections of the attorney-client relationship are 
     preserved.

  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 186

       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 ``Attorney-Client Privilege 
     Protection Act of 2007''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Justice is served when all parties to litigation are 
     represented by experienced diligent counsel.
       (2) Protecting attorney-client privileged communications 
     from compelled disclosure fosters voluntary compliance with 
     the law.
       (3) To serve the purpose of the attorney-client privilege, 
     attorneys and clients must have a degree of confidence that 
     they will not be required to disclose privileged 
     communications.
       (4) The ability of an organization to have effective 
     compliance programs and to conduct comprehensive internal 
     investigations is enhanced when there is clarity and 
     consistency regarding the attorney-client privilege.
       (5) Prosecutors, investigators, enforcement officials, and 
     other officers or employees of Government agencies have been 
     able to, and can continue to, conduct their work while 
     respecting attorney-client and work product protections and 
     the rights of individuals, including seeking and discovering 
     facts crucial to the investigation and prosecution of 
     organizations.
       (6) Despite the existence of these legitimate tools, the 
     Department of Justice and other agencies have increasingly 
     employed tactics that undermine the adversarial system of 
     justice, such as encouraging organizations to waive attorney-
     client privilege and work product protections to avoid 
     indictment or other sanctions.
       (7) An indictment can have devastating consequences on an 
     organization, potentially eliminating the ability of the 
     organization to survive post-indictment or to dispute the 
     charges against it at trial.
       (8) Waiver demands and other tactics of Government agencies 
     are encroaching on the constitutional rights and other legal 
     protections of employees.
       (9) The attorney-client privilege, work product doctrine, 
     and payment of counsel fees shall not be used as devices to 
     conceal wrongdoing or to cloak advice on evading the law.
       (b) Purpose.--It is the purpose of this Act to place on 
     each agency clear and practical limits designed to preserve 
     the attorney-client privilege and work product protections 
     available to an organization and preserve the constitutional 
     rights and other legal protections available to employees of 
     such an organization.

     SEC. 3. DISCLOSURE OF ATTORNEY-CLIENT PRIVILEGE OR 
                   ADVANCEMENT OF COUNSEL FEES AS ELEMENTS OF 
                   COOPERATION.

       (a) In General.--Chapter 201 of title 18, United States 
     Code, is amended by inserting after section 3013 the 
     following:

     ``Sec. 3014. Preservation of fundamental legal protections 
       and rights in the context of investigations and enforcement 
       matters regarding organizations

       ``(a) Definitions.--In this section:
       ``(1) Attorney-client privilege.--The term `attorney-client 
     privilege' means the attorney-client privilege as governed by 
     the principles of the common law, as they may be interpreted 
     by the courts of the United States in the light of reason and 
     experience, and the principles of article V of the Federal 
     Rules of Evidence.
       ``(2) Attorney work product.--The term `attorney work 
     product' means materials prepared by or at the direction of 
     an attorney in anticipation of litigation, particularly any 
     such materials that contain a mental impression, conclusion, 
     opinion, or legal theory of that attorney.
       ``(b) In General.--In any Federal investigation or criminal 
     or civil enforcement matter, an agent or attorney of the 
     United States shall not--
       ``(1) demand, request, or condition treatment on the 
     disclosure by an organization, or person affiliated with that 
     organization, of any communication protected by the attorney-
     client privilege or any attorney work product;
       ``(2) condition a civil or criminal charging decision 
     relating to a organization, or person affiliated with that 
     organization, on, or use as a factor in determining whether 
     an organization, or person affiliated with that organization, 
     is cooperating with the Government--
       ``(A) any valid assertion of the attorney-client privilege 
     or privilege for attorney work product;
       ``(B) the provision of counsel to, or contribution to the 
     legal defense fees or expenses of, an employee of that 
     organization;
       ``(C) the entry into a joint defense, information sharing, 
     or common interest agreement with an employee of that 
     organization if the organization determines it has a common 
     interest in defending against the investigation or 
     enforcement matter;
       ``(D) the sharing of information relevant to the 
     investigation or enforcement matter with an employee of that 
     organization; or
       ``(E) a failure to terminate the employment of or otherwise 
     sanction any employee of that organization because of the 
     decision by that employee to exercise the constitutional 
     rights or other legal protections of that employee in 
     response to a Government request; or
       ``(3) demand or request that an organization, or person 
     affiliated with that organization, not take any action 
     described in paragraph (2).
       ``(c) Inapplicability.--Nothing in this Act shall prohibit 
     an agent or attorney of the United States from requesting or 
     seeking any communication or material that such agent or 
     attorney reasonably believes is not entitled to protection 
     under the attorney-client privilege or attorney work product 
     doctrine.
       ``(d) Voluntary Disclosures.--Nothing in this Act is 
     intended to prohibit an organization from making, or an agent 
     or attorney of the United States from accepting, a voluntary 
     and unsolicited offer to share the internal investigation 
     materials of such organization.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 201 of title 18, United States Code, is amended by 
     adding at the end the following:

``3014. Preservation of fundamental legal protections and rights in the 
              context of investigations and enforcement matters 
              regarding organizations.''.
                                 ______
                                 
      By Mr. SPECTER:
  S. 187. A bill to provide sufficient resources to permit electronic 
surveillance of United States persons for foreign intelligence purposes 
to be conducted pursuant to individualized court-issued orders for 
calls originating in the United States, to provide additional resources 
to enhance oversight and streamline the procedures of the Foreign 
Intelligence Surveillance Act of 1978, to ensure review of the 
Terrorist Surveillance Program by the United States Supreme Court, and 
for other purposes; to the Committee on the Judiciary.
  Mr. SPECTER. Mr. President, I am reintroducing the text of S. 4051, 
which I originally introduced on November 14 of last year. And the 
title articulates it in a succinct way, so I will read that. It is: a 
bill to provide sufficient resources to permit electronic surveillance 
of United States persons for foreign intelligence purposes to be 
conducted pursuant to individualized court-issued warrants for calls 
originating in the United States, to provide additional resources to 
enhance oversight and streamline the procedures of the Foreign 
Intelligence Surveillance Act of 1978, and to ensure review of the 
Terrorist Surveillance Program by the United States Supreme Court.
  I made a number of efforts in the 109th Congress to subject the 
President's surveillance program to judicial review in accordance with 
the existing law that a search-and-seizure warrant or a wiretap ought 
not to be issued without a judge making a finding of probable cause and 
authorizing that kind of a search and seizure or that kind of a 
wiretap.
  Without going into the entire history, that bill was refined to the 
point where it is articulated in S. 4051 of the 109th Congress, which 
would provide for individualized warrants for calls originating in the 
United States and going out. That can be accomplished, according to the 
CIA, if there are additional resources, which this bill provides, and 
if the time for retroactive approval is extended from 3 days to 7 days.
  With respect to calls originating outside the United States and 
coming in, we are advised there are simply too many of those to cover, 
so that on those calls the bill would expedite the judicial review 
which is currently in process.
  A Federal court in Detroit has declared the President's program 
unconstitutional, and it is now pending in

[[Page 252]]

the Sixth Circuit. This bill would mandate review by the Supreme Court 
of the United States and would put review in the Federal courts on an 
accelerated timetable.
  There are objections to proceeding with legislation along this line 
because of an interest in having hearings. Well, we have had a whole 
series of hearings, and the administration has refused to tell the 
Judiciary Committee the details of the program. Under our division of 
authority, it is the Intelligence Committee which has jurisdiction over 
this kind of a program.
  But, we could proceed with hearings and still enact legislation which 
would provide constitutional protection for calls originating in the 
United States, which is the more serious category. Citizens here, 
people here in the United States, would have individual warrants and a 
judicial determination of probable cause before the surveillance and 
the wiretaps were put into effect.
  Meanwhile, the program goes on. It has been going on since late 2001. 
It has been known to the public since December 16, 2005. And each day 
that passes, there are more taps, there are more searches and seizures, 
there is more surveillance, which may not comport with constitutional 
provisions.
  There may be the motivation to show that the President has broken the 
law. And there is no doubt that the surveillance program does violate 
the Foreign Intelligence Surveillance Act of 1978. But the President 
contends that he has inherent article II power as Commander in Chief 
which supersedes the statute. And he may be right about that. But only 
a court can determine. And under the existing standards, the court must 
make a determination of the nature of the invasion of privacy 
contrasted with the importance for the public welfare of providing 
security. That is a judicial function.
  It seems to me that where you have an avenue to have probable cause 
established in the traditional way on calls going out of the United 
States, we ought to utilize it. We ought not to have that program 
continue in effect without having that kind of constitutional 
procedure.
  And then, as to calls originating outside of the United States, if 
the President is right, that can be determined by the courts. Let that 
proceed in that manner. And, the justification for delay--that we need 
to show the President of the United States has violated the law--is a 
wholly insufficient justification to withhold legislation that would be 
a major improvement to this surveillance program.
  We can conclude, in my view, that he has violated FISA. But to 
repeat--and I do not like to repeat--he may have the constitutional 
authority for the surveillance program, but that has to be determined 
by a judicial proceeding.
  Mr. President, I ask unanimous consent that a copy of the bill be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 187

       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 ``Foreign Intelligence 
     Surveillance Oversight and Resource Enhancement Act of 
     2007''.

    TITLE I--ENHANCEMENT OF RESOURCES AND PERSONNEL FOR ELECTRONIC 
             SURVEILLANCE FOR FOREIGN INTELLIGENCE PURPOSES

     SEC. 101. FOREIGN INTELLIGENCE SURVEILLANCE COURT MATTERS.

       (a) Authority for Additional Judges.--Section 103(a) of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1803(a)) is amended--
       (1) by inserting ``(1)'' after ``(a)'';
       (2) in paragraph (1), as so designated, by inserting ``at 
     least'' before ``seven of the United States judicial 
     circuits'';
       (3) by designating the second sentence as paragraph (4) and 
     indenting such paragraph, as so designated, accordingly; and
       (4) by inserting after paragraph (1), as so designated, the 
     following new paragraph:
       ``(2) In addition to the judges designated under paragraph 
     (1), the Chief Justice of the United States may designate as 
     judges of the court established by paragraph (1) such judges 
     appointed under Article III of the Constitution of the United 
     States as the Chief Justice determines appropriate in order 
     to provide for the prompt and timely consideration under 
     section 105 of applications under section 104 for electronic 
     surveillance under this title. Any judge designated under 
     this paragraph shall be designated publicly.''.
       (b) Consideration of Emergency Applications.--Such section 
     is further amended by inserting after paragraph (2), as added 
     by subsection (a) of this section, the following new 
     paragraph:
       ``(3) A judge of the court established by paragraph (1) 
     shall make a determination to approve, deny, or seek 
     modification of an application submitted under section 
     subsection (f) or (g) of section 105 not later than 24 hours 
     after the receipt of such application by the court.''.

     SEC. 102. ADDITIONAL PERSONNEL FOR PREPARATION AND 
                   CONSIDERATION OF APPLICATIONS FOR ORDERS 
                   APPROVING ELECTRONIC SURVEILLANCE.

       (a) Office of Intelligence Policy and Review.--
       (1) Additional personnel.--The Office of Intelligence 
     Policy and Review of the Department of Justice is authorized 
     such additional personnel, including not fewer than 21 full-
     time attorneys, as may be necessary to carry out the prompt 
     and timely preparation, modification, and review of 
     applications under section 104 of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1804) for orders under 
     section 105 of that Act (50 U.S.C. 1805) approving electronic 
     surveillance for foreign intelligence purposes.
       (2) Assignment.--The Attorney General shall assign 
     personnel authorized by paragraph (1) to and among 
     appropriate offices of the National Security Agency in order 
     that such personnel may directly assist personnel of the 
     Agency in preparing applications described in that paragraph.
       (b) Federal Bureau of Investigation.--
       (1) Additional legal and other personnel.--The National 
     Security Branch of the Federal Bureau of Investigation is 
     authorized such additional legal and other personnel as may 
     be necessary to carry out the prompt and timely preparation 
     of applications under section 104 of the Foreign Intelligence 
     Surveillance Act of 1978 for orders under section 105 of that 
     Act approving electronic surveillance for foreign 
     intelligence purposes.
       (2) Assignment.--The Director of the Federal Bureau of 
     Investigation shall assign personnel authorized by paragraph 
     (1) to and among the field offices of the Federal Bureau of 
     Investigation in order that such personnel may directly 
     assist personnel of the Bureau in such field offices in 
     preparing applications described in that paragraph.
       (c) Additional Legal and Other Personnel for National 
     Security Agency.--The National Security Agency is authorized 
     such additional legal and other personnel as may be necessary 
     to carry out the prompt and timely preparation of 
     applications under section 104 of the Foreign Intelligence 
     Surveillance Act of 1978 for orders under section 105 of that 
     Act approving electronic surveillance for foreign 
     intelligence purposes.
       (d) Additional Legal and Other Personnel for Foreign 
     Intelligence Surveillance Court.--There is authorized for the 
     Foreign Intelligence Surveillance Court such additional 
     personnel (other than judges) as may be necessary to 
     facilitate the prompt and timely consideration by that Court 
     of applications under section 104 of the Foreign Intelligence 
     Surveillance Act of 1978 for orders under section 105 of that 
     Act approving electronic surveillance for foreign 
     intelligence purposes. Personnel authorized by this paragraph 
     shall perform such duties relating to the consideration of 
     such applications as that Court shall direct.
       (e) Supplement Not Supplant.--The personnel authorized by 
     this section are in addition to any other personnel 
     authorized by law.

     SEC. 103. TRAINING OF FEDERAL BUREAU OF INVESTIGATION AND 
                   NATIONAL SECURITY AGENCY PERSONNEL IN FOREIGN 
                   INTELLIGENCE SURVEILLANCE MATTERS.

       The Director of the Federal Bureau of Investigation and the 
     Director of the National Security Agency shall each, in 
     consultation with the Attorney General--
       (1) develop regulations establishing procedures for 
     conducting and seeking approval of electronic surveillance on 
     an emergency basis, and for preparing and properly submitting 
     and receiving applications and orders, under sections 104 and 
     105 of the Foreign Intelligence Surveillance Act of 1978 (50 
     U.S.C. 1804 and 1805); and
       (2) prescribe related training for the personnel of the 
     applicable agency.

  TITLE II--IMPROVEMENT OF FOREIGN INTELLIGENCE SURVEILLANCE AUTHORITY

     SEC. 201. EXTENSION OF PERIOD FOR APPLICATIONS FOR ORDERS FOR 
                   EMERGENCY ELECTRONIC SURVEILLANCE.

       Section 105(f) of the Foreign Intelligence Surveillance Act 
     of 1978 (50 U.S.C. 1805(f)) is amended by striking ``72 
     hours'' both places it appears and inserting ``168 hours''.

     SEC. 202. ACQUISITION OF FOREIGN-FOREIGN COMMUNICATIONS.

       (a) In General.--Notwithstanding any other provision of 
     this Act or the Foreign Intelligence Surveillance Act of 1978 
     (50 U.S.C.

[[Page 253]]

     1801 et seq.), no court order shall be required for the 
     acquisition through electronic surveillance of the contents 
     of any communication between one person who is not located 
     within the United States and another person who is not 
     located within the United States for the purpose of 
     collecting foreign intelligence information even if such 
     communication passes through, or the surveillance device is 
     located within, the United States.
       (b) Treatment of Intercepted Communications Involving 
     Domestic Party.--If surveillance conducted, as described in 
     subsection (a), inadvertently collects a communication in 
     which at least one party is within the United States, the 
     contents of such communications shall be handled in 
     accordance with the minimization procedures set forth in 
     section 101(h)(4) of the Foreign Intelligence Surveillance 
     Act of 1978 (50 U.S.C. 1801(h)(4)).
       (c) Definitions.--In this section, the terms ``contents'', 
     ``electronic surveillance'', and ``foreign intelligence 
     information'' have the meaning given such terms in section 
     101 of the Foreign Intelligence Surveillance Act of 1978 (50 
     U.S.C. 1801).

     SEC. 203. INDIVIDUALIZED FISA APPLICATIONS.

       The contents of any wire or radio communication sent by a 
     person who is reasonably believed to be inside the United 
     States to a person outside the United States may not be 
     retained or used unless a court order authorized under the 
     Foreign Intelligence Surveillance Act is obtained.

     SEC. 204. ISSUES RESERVED FOR THE COURTS.

       Nothing in this Act shall be deemed to amend those 
     provisions of FISA concerning any wire or radio communication 
     sent from outside the United States to a person inside the 
     United States. The constitutionality of such interceptions 
     shall be determined by the courts, including the President's 
     claim that his Article II authority supersedes FISA.

TITLE III--ENHANCED CONGRESSIONAL OVERSIGHT AND SUPREME COURT REVIEW OF 
                   THE TERRORIST SURVEILLANCE PROGRAM

     SEC. 301. CONGRESSIONAL OVERSIGHT.

       (a) Electronic Surveillance Under FISA.--Section 108 of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1808) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) the authority under which the electronic surveillance 
     is conducted.''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) On a semiannual basis, the Attorney General 
     additionally shall fully inform the Permanent Select 
     Committee on Intelligence of the House of Representatives and 
     the Select Committee on Intelligence of the Senate on 
     electronic surveillance conducted without a court order.''.
       (b) Intelligence Activities.--The National Security Act of 
     1947 (50 U.S.C. 401 et seq.) is amended--
       (1) in section 501 (50 U.S.C. 413)--
       (A) by redesignating subsection (f) as subsection (g); and
       (B) by inserting after subsection (e) the following new 
     subsection:
       ``(f) The Chair of each of the congressional intelligence 
     committees, in consultation with the ranking member of the 
     committee for which the person is Chair, may inform, on a 
     bipartisan basis, all members or any individual members of 
     such committee of a report submitted under subsection (a)(1) 
     or subsection (b) as such Chair considers necessary.''; and
       (2) in section 502 (50 U.S.C. 414), by adding at the end 
     the following new subsection:
       ``(d) Informing of Committee Members.--The Chair of each of 
     the congressional intelligence committees, in consultation 
     with the ranking member of the committee for which the person 
     is Chair, may inform, on a bipartisan basis, all members or 
     any individual members of such committee of a report 
     submitted under subsection (a) as such Chair considers 
     necessary.''.

     SEC. 302. SUPREME COURT REVIEW OF THE TERRORIST SURVEILLANCE 
                   PROGRAM.

       (a) In General.--Upon appeal by the United States or any 
     party to the underlying proceedings, the Supreme Court of the 
     United States shall review the final decision of any United 
     States court of appeal concerning the legality of the 
     Terrorist Surveillance Program.
       (b) Expedited Consideration.--It shall be the duty of the 
     Supreme Court of the United States to advance on the docket 
     and to expedite to the greatest possible extent the 
     disposition of any matter brought under subsection (a).
       (c) Definition.--In this section, the term ``Terrorist 
     Surveillance Program'' means the program identified by the 
     President of the United States on December 17, 2005, to 
     intercept international communications into and out of the 
     United States of persons linked to al Qaeda or related 
     terrorist organizations.

                        TITLE IV--OTHER MATTERS

     SEC. 401. DEFINITION.

       In this Act, the term ``Foreign Intelligence Surveillance 
     Court'' means the court established by section 103(a) of the 
     Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 
     1803(a)).

     SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated such sums as may be 
     necessary to carry out this Act and the amendments made by 
     this Act.

     SEC. 403. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the date that is 30 days after the date of the 
     enactment of this Act.
                                 ______
                                 
      By Mr. SALAZAR (for himself, Mr. Leahy, Mr. Reid, Mr. Menendez, 
        Mrs. Boxer, and Mrs. Feinstein):
  S. 188. A bill to revise the short title of the Fannie Lou Hamer, 
Rosa Parks, and Coretta Scott King Voting Rights Act Reauthorization 
and Amendments Act of 2006; to the Committee on the Judiciary.
  Mr. SALAZAR. Mr. President, I rise today to speak on behalf of 
legislation I am introducing today, which has the support and co-
sponsorship of several of my colleagues including Senators Reid, Leahy, 
Feinstein, Boxer and Menendez.
  This is a simple, straight forward measure to include the name of 
Cesar E. Chavez, a truly remarkable civil rights leader and American, 
into the title of the reauthorization of the Voting Rights Act passed 
last year.
  With my bill, the title of this Act would be referred to as the 
Fannie Lou Hamer, Rosa Parks, Coretta Scott King, and Cesar E. Chavez 
Voting Rights Act Reauthorization and Amendments Act of 2006. I am 
proud to have been part of a unanimous Senate that reauthorized this 
landmark piece of civil rights legislation. Reauthorizing the Voting 
Rights Act extended the open door for every American to exercise their 
right to participate in the representative democracy founded by our 
Constitution, and cherished by our people. In that spirit, it is 
fitting that Cesar Chavez's name be included with the other names 
honored in this bill--as pioneers who helped pave the way to ensure 
that all Americans have a voice in electing their Government at the 
voting booth.
  Cesar Chavez is an American hero. Like the venerable American leaders 
who are now associated with this effort, he sacrificed his life to 
empower the most vulnerable in America. For this reason, he continues 
to be an important part of our country's journey on the path to a more 
inclusive America. Cesar Chavez believed strongly in our American 
democracy and saw the right to vote as a fundamental cornerstone of our 
freedom. I believe it is fitting that his name be a part of the 
reauthorization of the Voting Rights Act.
  President Lyndon Johnson once stated: ``The vote is the most powerful 
instrument ever devised by man for breaking down injustice and 
destroying the terrible walls which imprison men because they are 
different from other men.'' With his simple but powerful slogan ``Si Se 
Puede'' or yes, it can be done, Cesar Chavez reminded us of this truth.
  Still, throughout our history and even today, many Americans have 
been shut out of our most fundamental right, the right to vote. When 
President Johnson signed the Voting Rights Act of 1965 into law, he 
restored the faith of millions of African Americans, Hispanic 
Americans, Native Americans, and others who had historically been kept 
from voting.
  As our Nation moved forward in the next chapter of civic equality and 
inclusion with the reauthorization of the Voting Rights Act last year, 
we demonstrated to millions of Hispanic Americans this body's continued 
commitment to safeguarding their right to vote. To include Cesar E. 
Chavez's name to that commitment today is an important change because 
of the message it sends Hispanic Americans. It serves as a signal of 
Congress' commitment to an inclusive America that brings all Americans 
into our democratic process.
  This past November, more than 86 million Americans voted all across 
the country. Fifty years ago, before the enactment of the Voting Rights 
Act, many would not have been able to do so. It is important and 
fitting that we

[[Page 254]]

honor those civil rights leaders whose contributions and courage helped 
pave the way for today's more inclusive democracy, and it is fitting 
that the name of Cesar E. Chavez be included with them in the title of 
last year's Voting Rights Act reauthorization. I look forward to 
working with my colleagues on this small change, and am hopeful that 
they will approve my proposal to revise the official title of this 
landmark reauthorization as the Fannie Lou Hamer, Rosa Parks, Coretta 
Scott King, and Cesar E. Chavez Voting Rights Act Reauthorization and 
Amendments Act of 2006.
  Mr. LEAHY. Mr. President, today I join Senator Salazar in introducing 
a bill to include Cesar E. Chavez among the names of the great civil 
rights leaders we honor in the title of last year's Voting Rights Act 
Reauthorization and Amendments Act of 2006, ``VRARA''. I supported 
taking this action last year during the Senate Judiciary Committee's 
consideration of the VRARA when I offered an amendment on behalf of 
Senator Salazar to add the Hispanic civil rights leader to those for 
whom the law is named. As Senator Salazar reminded us, Cesar Chavez is 
an American hero who sacrificed his life to empower the most vulnerable 
in America. Like Fannie Lou Hamer, Rosa Parks, and Coretta Scott King, 
for whom the VRARA is named, he believed strongly in the right to vote 
as a cornerstone of American democracy. I offered the amendment in the 
Judiciary Committee and it was adopted without dissent.
  In order not to complicate final passage of the Voting Rights Act, 
the Senate proceeded to adopt the House-passed bill without amendment 
so that it could be signed into law without having to be reconsidered 
by the House. At that time, I committed to work with Senator Salazar to 
conform the law to include recognition of the contribution to our civil 
rights, voting rights and American society by Cesar Chavez.
  Cesar Chavez's name should be added to the law as important 
recognition of the broad landscape of political inclusion made possible 
by the Voting Rights Act. This bill would not alter the bill's vital 
remedies for continuing discrimination in voting, but is overdue 
recognition of the importance of the Voting Rights Act to Hispanic-
Americans. Prior to the VRA, Hispanics, like minorities of all races, 
faced major barriers to participation in the political process, through 
the use of such devices as poll taxes, exclusionary primaries, 
intimidation by voting officials, language barriers, and systematic 
vote dilution.
  I urge the Senate quickly to take up and pass this measure as we 
convene the new Congress and commit ourselves again to ensuring that 
the great promises of the 14th and 15th amendments are kept for all 
Americans and that the Voting Rights Act Reauthorization and Amendments 
Act is fully implemented to protect the rights of all Americans.
                                 ______
                                 
      By Mr. McCAIN (for himself, Mr. Lieberman, Ms. Collins, and Mr. 
        Feingold):
  S. 192. A bill providing greater transparency with respect to 
lobbying activities, and for other purposes; to the Committee on 
Homeland Security and Governmental Affairs.
  Mr. McCAIN. Mr. President, today I am pleased to be joined by 
Senators Feingold, Collins, and Lieberman in introducing a bill to 
provide greater transparency into the process of influencing our 
Government, and to ensure greater accountability among public 
officials.
  The legislation proposes a number of important and necessary reforms. 
It would provide for faster reporting and greater public access to 
reports filed by lobbyists and their employers under current law. It 
would require greater disclosure of lobbyists' contributions and 
payments to lawmakers and entities associated with them, as well as 
fundraising and other events they host. the bill also would require 
greater disclosure from both lobbyists, and Members and employees of 
Congress, of travel that is arranged or financed by a lobbyist or his 
client.
  To address the problem of the revolving door between Government and 
the private sector, the bill would strengthen the lobbying restrictions 
on former senior members of the Executive Branch, former Members of 
Congress, and former senior congressional staff. It would require that 
Members publicly disclose negotiations they are having with prospective 
private employers to ensure there is no conflict of interests. The bill 
also would modify the provision in current law that exempts former 
Federal employees who go to work for Indian tribes as outside lobbyists 
and agents from the revolving door laws.
  The bill would prohibit all gifts from lobbyists to lawmakers and 
their staff. To ensure that such a ban is not circumvented, the bill 
also would require Members of Congress and their staff to pay the fair 
market value for travel on private planes and the fair market value of 
sports and entertainment tickets. Members and staff would also have to 
post the details of their privately-sponsored work trips on-line for 
public inspection.
  The bill would establish an independent, non-partisan Office of 
Public Integrity. Armed with a number of investigative tools, the 
Office of Public Integrity would investigate alleged misconduct by 
Members and their staff and make appropriate recommendations to the 
Senate Ethics Committee for final disposition.
  Finally, the bill would help us combat wasteful, porkbarrel spending. 
It would amend Congressional rules to allow lawmakers to challenge 
unauthorized appropriations, earmarks, and policy riders in 
appropriations bills.
  Mr. President, when I introduced similar legislation over a year ago, 
I regretted that such reform was even necessary. And, I voted against 
the bill that was ultimately passed in the Senate because it lacked a 
number of elements essential to true reform.
  Unfortunately, the need for such reform has only become more acute. 
The American people's faith and confidence in this venerable 
institution has steadily eroded. The day after the mid-term elections, 
CNN reported that, according to national exit polls, voters were 
concerned about corruption and ethics in Government more than any other 
issue. I can tell you the polls, if not spot on, are not far off.
  During my travels around the country last year, it quickly became 
clear that there is a deep perception that we legislators do not act on 
the priorities of the American people, that special interests, and not 
the people's interests, guide our legislative hand. This loss in 
confidence is not limited to a single party or ideology; rather, it 
cuts across the spectrum. It is a perception bred by recent 
Congressional failures and scandals, which I need not chronicle here.
  We can begin to restore faith in this institution by divesting 
ourselves of some of the perks and privileges that have somehow crept 
into public service. Take, for example, free meals and sports and 
entertainment tickets. The American people have rightfully come to see 
the abuse of such perks as a corrupting influence. In a string of 
guilty pleas last year, several lobbyists, former congressional aides, 
and a congressman admitted that such gifts were used as bribes. Quite 
frankly, there is no good reason why Members of Congress and their 
staff cannot forgo such gifts from lobbyists. No one would seriously 
contend that they are necessary for us to conduct the people's 
business. A total gift ban would go a long way towards restoring the 
public's confidence in us.
  Another critical aspect requiring reform is the ability of a Member 
to travel on a corporate jet and only pay the rate of a first class 
plane ticket. This bill requires Senators and their employees who use 
corporate or charter aircraft to pay the fair market value for that 
travel. While I appreciate that such a change is not popular with some 
of my colleagues, the time has come to fundamentally change the way we 
do things in this town. Much of the public views our ability to travel 
on corporate jets, often accompanied by lobbyists, while only 
reimbursing the first-class rate, as a huge loophole in the current 
gift rules. And they are right--it is. I

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have no doubt that the average American would love to fly around the 
country on very comfortable corporate-owned aircraft and only be 
charged the cost of a first-class ticket. It is a pretty good deal we 
have got going here. We need to face the fact that the time has come to 
end this Congressional perk.
  At a time when the public is questioning our integrity, the Senate 
needs to more aggressively enforce its own rules. We can do this not 
just by making more public the work that the Senate Ethics Committee 
currently undertakes, but by addressing the conflict that is inherent 
in any body that regulates itself. That is why I am again proposing the 
creation of a new Office of Public Integrity with the capacity to 
initiate and conduct investigations, uncolored by partisan concerns and 
unconstrained by collegial relationships.
  Finally, Mr. President, if we are truly serious about reform, we need 
to address what some have coined the currency of corruption--earmarks. 
In 1994, there were 4,126 earmarks. In 2005, there were 15,877--an 
increase of nearly 400 percent! But there was a little good news for 
2006 solely due to the good sense that occurred unexpectedly when the 
Labor HHS appropriations bill was approved with almost no earmarks, an 
amazing feat given that there were over 3,000 earmarks the prior year 
for just that bill. Yet despite this first reduction in 12 years, it 
does not change the fact that the largest number of earmarks have still 
occurred in the last three years--2004, 2005, and 2006.
  Now, let us consider the level of funding associated with those 
earmarks. The amount of earmarked funding increased from $23.2 billion 
in 1994 to $64 billion in FY 2006. Remarkably, it rose by 34 percent 
from 2005 to 2006, even though the number of earmarks decreased! 
Earmarked dollars have doubled just since 2000, and more than tripled 
in the last 10 years. This explosion in earmarks led one lobbyist to 
deride the appropriations committees as favor factories. The time for 
us to fix this broken process is long overdue.
  Mr. President, this past election, the American people sent a clear 
message: clean up the way business is done in our capitol. As faithful 
public servants, we are obligated to respond. Let us respond 
meaningfully, to assure the American people that we are here promoting 
the interests of main street over that of K Street, and that we are 
more interested in public service than the perks and privileges offered 
us. Let us also remind ourselves that we came here in the sincere 
belief that public service is a noble calling, a reward unto itself.
  I therefore urge my colleagues in joining me on this bill. I think 
our Nation and this venerable institution will be all the better for 
it.
                                 ______
                                 
      By Mr. CRAIG:
  S.J. Res. 1. A joint resolution proposing an amendment to the 
Constitution of the United States relative to require a balanced budget 
and protect Social Security surpluses; to the Committee on the 
Judiciary.
  Mr. CRAIG. Mr. President, today I am reintroducing the balanced 
budget amendment to the Constitution of the United States. I, for some 
years, along with my colleagues in a bipartisan way, have spoke to this 
issue. Today, in a new year and in a new Congress, Americans are eager 
to see a new direction for our country. They have seen Federal spending 
increase by $200 billion from fiscal years 2005 to 2006. They have 
watched the Federal deficit swell into hundreds of billions of dollars, 
and they have borne the costs. Our spending system is broken and, in my 
opinion, so is our Tax Code.
  The new year is a time for new solutions to this problem. When new 
solutions that draw upon old principles of limited government and 
fiscal responsibility and tax simplicity and fairness are how you 
approach a problem, I think Americans once again will listen, and they 
will allow us to build a system that increasingly builds faith, once 
again, with the American people and America's taxpayers. It is simply 
getting back to basics. We must look at the big picture of Federal 
spending as a crisis in our country and begin to speak the language 
that is fundamental to reform in itself, not instead of half measures 
or bits or pieces or nibbling around the edges. But as both of our 
leaders have spoken in the last hour to bipartisan efforts, they speak 
of bold strokes to solving problems for America, and I think that is 
what Americans expect of us as their leaders. We must look at it simply 
and reduce the deficit--I would hope we could eliminate it--and to do 
so with a Tax Code that is fairer, more balanced, certainly simpler, 
and not so complex that the American taxpayers collectively have to 
spend billions of dollars a year simply in complying with the Tax Code 
itself.
  In the coming months, I will address all three components of the 
Federal spending crisis, including a flat tax and a budget process that 
reforms what we get done here, and that we get it done in a timely 
manner. I begin with a balanced budget amendment to the United States 
Constitution. For many Americans, one of the signs of our deep respect 
for the Constitution is to acknowledge that, in exceptional cases, a 
problem finally rises to a level that it can only be addressed through 
a constitutional adjustment in our government.
  I believe spending is at that crisis level and we here, Democrat and 
Republican, have demonstrated our inability to deal with it in a timely 
and responsible fashion. So it is time we act. My balanced budget 
amendment would require Congress to pass a balanced budget every year 
to ensure that Social Security surpluses are set aside exclusively to 
meet the future needs of beneficiaries and to require a supermajority 
in both the House and the Senate to raise the Nation's debt limit. In 
addition, it recognizes that national security is a priority of this 
Congress by providing essential exceptions for war and imminent 
military threats. In other words, over the last several years a 
balanced budget amendment would not have deterred us from funding, as 
appropriate and necessary, our engagement in Iraq and to make sure the 
men and women who are there on the front lines today are adequately 
provided with the necessary tools.
  Thomas Jefferson said it so well, and he said this:

     . . .with respect to future debt, would it not be wise and 
     just for that nation to declare in the constitution they are 
     forming that neither the legislature, nor the nation itself 
     can validly contract more debt than they may pay?

  His logic is simple. His logic is right. I urge you to join me in 
making fiscal responsibility constitutionally acceptable--and a habit--
of this Nation's Capitol.
  With the first piece of legislation I introduce to the 110th 
Congress, I call on the Senate to pass a balanced budget amendment to 
the Constitution, a bill of economic rights for our future and our 
children.
  I ask unanimous consent that a copy of this joint resolution 
proposing a balanced budget amendment to the Constitution be printed in 
the Record.
  Mr. CRAIG. Mr. President, I ask unanimous consent that the text of 
the joint resolution be printed in the Record.
  There being no objection, the text of the joint resolution was 
ordered to be printed in the Record, as follows:

                              S.J. Res. 1

       Resolved by the Senate and House of Representatives of the 
     United States of America in Congress assembled, That the 
     following article is proposed as an amendment to the 
     Constitution of the United States, which shall be valid to 
     all intents and purposes as part of the Constitution when 
     ratified by the legislatures of three-fourths of the several 
     States within seven years after the date of its submission by 
     the Congress:

                              ``Article--

       ``Section 1. Total outlays for any fiscal year shall not 
     exceed total receipts for that fiscal year, unless three-
     fifths of the whole number of each House of Congress shall 
     provide by law for a specific excess of outlays over receipts 
     by a rollcall vote.
       ``Section 2. Total receipts shall include all receipts of 
     the United States Government except those derived from 
     borrowing. Total outlays shall include all outlays of the 
     United States Government except for those for repayment of 
     debt principal.
       ``Section 3. Any surplus of receipts (including 
     attributable interest) over outlays of the Federal Old-Age 
     and Survivors Insurance and the Federal Disability Insurance 
     Trust Funds shall not be counted for purposes of

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     this article. Any deficit of receipts (including attributable 
     interest) relative to outlays of the Federal Old-Age and 
     Survivors Insurance and the Federal Disability Insurance 
     Trust Funds shall be counted for purposes of this article, 
     and must be completely offset by a surplus of all other 
     receipts over all other outlays.
       ``Section 4. The limit on the debt of the United States 
     held by the public shall not be increased, unless three-
     fifths of the whole number of each House shall provide by law 
     for such an increase by a rollcall vote.
       ``Section 5. Prior to each fiscal year, the President shall 
     transmit to the Congress a proposed budget for the United 
     States Government for that fiscal year, in which total 
     outlays do not exceed total receipts.
       ``Section 6. No bill to increase revenue shall become law 
     unless approved by a majority of the whole number of each 
     House by a rollcall vote.
       ``Section 7. The Congress may waive the provisions of this 
     article for any fiscal year in which a declaration of war is 
     in effect. The provisions of this article may be waived for 
     any fiscal year in which the United States is engaged in 
     military conflict which causes an imminent and serious 
     military threat to national security and is so declared by a 
     joint resolution, adopted by a majority of the whole number 
     of each House, which becomes law.
       ``Section 8. The Congress shall enforce and implement this 
     article by appropriate legislation, which may rely on 
     estimates of outlays and receipts.
       ``Section 9. This article shall take effect the second 
     fiscal year beginning after its ratification.''.

                          ____________________