[Congressional Record (Bound Edition), Volume 153 (2007), Part 2]
[Senate]
[Pages 2979-2994]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. ALLARD (for himself and Mr. Salazar):
  S. 472. A bill to authorize a major medical facility project for the 
Department of Veterans Affairs at Denver, Colorado; to the Committee on 
Veterans' Affairs.
  Mr. ALLARD. Mr. President, today I am introducing a bill to fully 
authorize the necessary funds needed to complete the construction of a 
new VA medical facility near Denver, CO. I am joined by my colleague 
Senator Salazar on this important legislation. Thankfully, Congress 
authorized approximately 16 percent of the needed funds for this 
project last year in order to finalize planning and site acquisition. 
That is a

[[Page 2980]]

promising start that enables the project planners to begin the serious 
business of building this hospital. Although this was a tremendous step 
forward, there is still a great deal more that needs to be accomplished 
in order for this hospital to become a reality.
  The current Denver VA hospital was built ``more than 50 years ago and 
as we are all well aware, medical technology has far surpassed what the 
builders of the Denver VA originally envisioned. This facility, which 
hosted the first liver transplant in 1963, has provided tremendous care 
over the years, but simply does not have the infrastructure to continue 
to provide our veterans the care they need in the 21st century. While I 
cannot say enough about the care and service our veterans receive at 
the current facility, many changes and improvements can and should be 
made, and a new facility is the only way to accomplish these goals.
  This new VA hospital to be located at Fitzsimons campus and the 
former home of the Fitzsimons Army Medical Center will carry on a 
strong tradition of providing exceptional medical care for our Nation's 
best and bravest citizens. The current Fitzsimons campus first began 
treating wounded veterans in 1918, specializing in assisting those who 
had been victims of chemical weapons in world War I. The facility 
continued to grow through the 20th century and became one of the 
premiere Veterans hospitals through World War II. Fitzsimons was even 
unofficially deemed the ``White House of the West'' when President 
Eisenhower spent 7 weeks in the facility while recovering from a heart 
condition in 1955. Fitzsimons Hospital was even the birthplace of my 
colleague, Senator Kerry.
  The new facility will provide an example of successful collaboration 
between numerous parties and will be the culmination of years of hard 
work. The Denver VA, the University of Colorado Health Sciences Center 
and the University of Colorado Hospital already have a complex and 
rewarding partnership in meeting veterans' healthcare needs in the 
region, and all are partnered together on this unique project. The 
University of Colorado, who currently owns the land for the new 
hospital, strongly supports the move of the existing Denver VA medical 
facility to the Fitzsimons Campus in Aurora, CO, and looks forward to 
strengthening their partnership with the Veterans Administration, 
allowing each entity to focus on its strengths.
  Of course, the biggest endorsement of this new facility comes 
ultimately from the end-users: our veterans. The United Veterans 
Committee of Colorado, a coalition of 45 federally chartered veterans' 
service organizations, strongly supports the relocation of the Denver 
VA medical center to the Fitzsimons campus and has worked closely with 
my office and the Colorado congressional delegation over the years to 
ensure its success.
  Of course, not too long ago it looked like this project was in peril. 
Thankfully, in 2005 Secretary Nicholson brought a much-needed, fresh 
perspective to this project. He made it a priority and made it clear to 
the entire Colorado delegation that he would pursue every opportunity 
to make the project a reality. I commend his efforts and thank him for 
his support. It is also important to mention the hard work and 
diligence of those in Colorado who have also worked to ensure the 
success of this new hospital. Without the extraordinary efforts put 
forth by the Fitzsimons Redevelopment Authority and its chairman, city 
of Aurora Mayor Ed Tauer, an agreement would not have been reached on 
the ultimate location of the Hospital.
  I strongly support authorization of this hospital and look forward to 
seeing the completion of the new VA medical facility which undoubtedly 
will serve as a regional beacon for modern veteran medical care science 
not only for veterans in Colorado but throughout the entire Rocky 
Mountain region as well.
  Mr. SALAZAR. Mr. President, today Senator Allard and I are 
introducing a bill that will authorize full funding for a state-of-the-
art veterans' hospital at the Fitzsimons campus in Aurora, CO.
  This crown jewel of our veterans' health system will serve more than 
424,000 veterans who live in Colorado, and many more who live in nearby 
States, with the best available health care. Our veterans deserve the 
best, and Fitzsimons will be the best.
  Since the VA identified the Fitzsimons VA Hospital as one of its top 
medical construction projects in 2004, I have fought to move this 
project forward, although we've encountered some hurdles along the way.
  But we are making progress. I helped bring all the stakeholders 
together in 2005 so that supporters of the project, and advocates for 
veterans' health care, could speak with one voice on Fitzsimons. Thanks 
in part to this dialogue, in February of 2006 the VA finally reached 
agreement with the Fitzsimons Authority on the purchase price of 24 
acres at the site.
  And just 2 months ago, in December, I was pleased that the omnibus 
veterans' bill we passed, S. 3421, included a $98 million authorization 
for Fitzsimons that was so desperately needed to keep the project on 
track. Senator Allard and I fought hard for that authorization because 
it allowed the VA to use unspent project funds from previous years, and 
to begin spending more on the critical initial phases of the project.
  Today, Senator Allard and I are introducing a bill that will complete 
the authorization for Fitzsimons VA Hospital. Our bill authorizes the 
remaining $523 million necessary to complete the project. It is a 
straightforward bill that we should pass as soon as possible to ensure 
we don't run into any costly construction delays down the road.
  I spoke with Secretary Nicholson about this project just last week, 
and he reiterated his commitment to getting this project done as soon 
as possible. Just as the VA must keep Fitzsimons at the top of its 
priority list, so too should Congress do its part by completing the 
authorization for the project.
  I look forward to the day when our veterans can enjoy the benefits of 
a new state-of-the-art facility at Fitzsimons. They have more than 
earned the high quality care they will receive there, and I urge this 
body to keep the project on track by passing this bill as soon as 
possible.
                                 ______
                                 
      By Mr. GRASSLEY:
  S. 473. A bill to improve the prohibitions on money laundering, and 
for other purposes; to the Committee on the Judiciary.
  Mr. GRASSLEY. Mr. President, I rise to speak in support of a bill 
that I am introducing today, the Combating Money Laundering and 
Terrorist Financing Act of 2007.
  The life-blood of any criminal organization or enterprise is money. 
Whether engaged in drug dealing or terrorism, criminals cannot operate 
without money. The targeting of efforts by criminals to hide 
illegitimate funds in legitimate financial institutions has long been a 
focus of law enforcement. Yet like all other aspects of criminal 
activity, money laundering continues to evolve into newer and more 
complex forms. This is particularly true in the funding of terrorist 
organizations and operations. Therefore, money laundering remains not 
only a criminal racket but also poses a grave threat to our national 
security.
  Tracking how terrorists obtain, store, and move illicit funds is 
among the most critical aspects of stopping their efforts. Among its 
recommendations, the 9/11 Commission report stated that, ``Vigorous 
efforts to track terrorist financing must remain front and center in 
the U.S. counterterrorism efforts.'' We have made some significant 
strides in identifying how terrorists accumulate and move money, but 
more remains to be done. Terrorists and criminal networks continually 
evolve new ways of using legitimate means to launder illegally obtained 
funds. We must not underestimate the intelligence or resolve of these 
groups. Many have already utilized loopholes in current law to hide 
funds or circumvent required reporting to U.S. Customs officials.
  Work must continue so that terrorists and other criminals are left 
without the ability to hide illegally obtained funds inside or in 
concert with

[[Page 2981]]

legitimate means. We should commit to increasing pressure on these 
organizations to make money laundering as difficult and unprofitable as 
possible. And ultimately, we must give law enforcement and prosecutors 
the ability to effectively deal with criminals' ever-changing tactics.
  The legislation that I am introducing today will strengthen our 
current money laundering statutes by streamlining those laws, closing 
those loopholes in the laws exploited by criminal organizations, and 
creating more efficient means for dealing with violators of money 
laundering laws. My bill goes about doing this in several ways.
  First, my bill deals with the problem of ``specified unlawful 
activities'' or ``SUAs.'' SUAs are predicate offenses required for 
current money laundering statutes to apply, and there are currently 
over 200 of them. As criminals continue to change methods of laundering 
money, the list of SUAs will continue to grow. This legislation will 
prevent criminals from turning to other means not designated as an SUA, 
and will consolidate the ever growing list of SUAs by including all 
federal and state offenses punishable by imprisonment for more than one 
year. Also, criminals will no longer be able to hide behind borders, as 
this legislation would subject violations in foreign countries that 
have an effect on the U.S. to the same penalties as if they had 
occurred in the United States.
  Currently, most circuit courts must charge each violation of money 
laundering statutes separately. My bill will allow, at the election of 
the government, prosecutors to charge multiple acts under one count in 
an indictment. This will significantly reduce the time and expense 
incurred by the courts in these cases, versus the current method of 
charging each and every violation separately.
  Criminals have realized that the movement of large sums of money 
through traditional financial institutions will result in increased 
scrutiny and investigation. Therefore, many have turned to smuggling 
large quantities of money via a courier or bulk cash smuggling. They 
have developed techniques to avoid having to declare property with a 
value greater than $10,000 and to protect those couriers who are 
caught. My legislation will remove the criminal's ability to get around 
current laws, and remove protections for the smuggler.
  For example, current law requires that couriers know specifics about 
the illegal activities that produced the monies they carry before they 
may be prosecuted under money laundering statutes. As a result, many 
claim ignorance about the illegal origins of the money and are 
released. With my bill, couriers will now be held responsible for their 
actions, even if they try to claim ignorance. Therefore, law 
enforcement can get both the courier and the money off the street. This 
bill also would stiffen the penalty for bulk cash smuggling to 10 
years.
  Another tactic now being used by criminals is to have couriers carry 
blank checks in bearer form. The couriers argue that the check has no 
amount, so it is not subject to declaration. Once the courier arrives 
at his destination, he merely has to fill in the amount, whatever it 
may be. My legislation would remove this loophole by setting the value 
of any blank check in bearer form equal to the highest amount in that 
account during the time period it was being transported, or when it is 
cashed.
  My bill also seeks to mitigate the tactics of ``commingling funds'' 
and ``structured transactions.'' The ``commingling funds'' tactic 
involves depositing illegal money in an account with legitimate funds. 
Under current law, criminals can argue that money withdrawn from the 
account was from the legitimate sources. The language in this bill 
would clarify that transactions on accounts containing more than 
$10,000 in illegally obtained funds will be considered a transaction 
involving more than $10,000 in criminally derived property, regardless 
of how the other money in the account was obtained. Nor will criminals 
be allowed to avoid the law by structuring smaller transactions below 
the $10,000 reporting requirement. Under my bill, individual but 
related transactions will be considered at their aggregate value.
  Finally, this bill will provide the United States Secret Service with 
the legislative and financial resources it needs to combat 
counterfeiters and other criminals seeking to harm our financial 
systems. The U.S. Federal Reserve Note is the most identifiable 
currency in the world and the backbone of many other nations' 
economies. To help ensure continued stability of the Greenback 
worldwide, my bill will make illegal the possession of any materials 
used to make counterfeit currency. This is necessary because technology 
has evolved far beyond the old days of printing plates, stones, and 
digital images. Like the evolving tactics used by those in money 
laundering operations, the counterfeiter constantly changes his tactics 
and technologies. Furthermore, the crime of counterfeiting is becoming 
more and more international in scope every day. The Secret Service has 
identified counterfeiting operations in Colombia, Nigeria, Italy, Iraq, 
and North Korea. This is apparent in the use of bleached notes. 
Bleached notes are simply bills with low denominations being bleached 
with chemicals. This produces a blank canvas of genuine currency paper 
for counterfeiters to work with, to which they can add higher 
denominations. My bill will make it illegal to possess these bleached 
or otherwise altered notes, and give the Secret Service the 
authorization it needs to pursue these criminals outside the United 
States.
  Additionally, this bill gives the Secret Service the authorization to 
use funds seized from criminals to pay for ongoing undercover 
investigations. This seems like common sense, and indeed, every other 
federal investigative agency has this authority. Tasked with protecting 
our financial systems, the Secret Service should be provided with all 
the resources necessary to fund its undercover operations. This makes 
even more sense, considering it's the criminals themselves who would be 
paying those bills. My bill provides that authority to the Secret 
Service and will allow them to continue the important work of 
protecting our financial infrastructure.
  As I said, money is essential for the operation of any criminal or 
terrorist organization. The ability to get, move, and hide these funds 
is critical to the operations of both. We have had some success in 
thwarting this ability, as is evident by the constantly changing 
techniques for laundering money. We must continue to apply pressure on 
these groups, and do everything we can to identify and stop their 
financing operations. This bill is designed to do just that, and put 
these organizations out of business for good. I urge my colleagues to 
join me and my cosponsors, Senators Kyl, Cornyn, and Graham, in 
supporting this legislation to combat the financing of criminal and 
terrorist activities.
  Mr. President, 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. 473

       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 ``Combating 
     Money Laundering and Terrorist Financing 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--MONEY LAUNDERING

Sec. 101. Specified unlawful activity.
Sec. 102. Making the domestic money laundering statute apply to 
              ``reverse money laundering'' and interstate 
              transportation.
Sec. 103. Procedure for issuing subpoenas in money laundering cases.
Sec. 104. Transportation or transhipment of blank checks in bearer 
              form.
Sec. 105. Bulk cash smuggling.
Sec. 106. Violations involving commingled funds and structured 
              transactions.
Sec. 107. Charging money laundering as a course of conduct.
Sec. 108. Illegal money transmitting businesses.
Sec. 109. Knowledge that the property is the proceeds of a specific 
              felony.

[[Page 2982]]

Sec. 110. Extraterritorial jurisdiction.
Sec. 111. Conduct in aid of counterfeiting.
Sec. 112. Use of proceeds derived from criminal investigations.

                     TITLE II--TECHNICAL AMENDMENTS

Sec. 201. Technical amendments to sections 1956 and 1957 of title 18.

                       TITLE I--MONEY LAUNDERING

     SEC. 101. SPECIFIED UNLAWFUL ACTIVITY.

       Section 1956(c)(7) of title 18, United States Code, is 
     amended to read as follows:
       ``(7) the term `specified unlawful activity' means--
       ``(A) any act or activity constituting an offense in 
     violation of the laws of the United States or any State 
     punishable by imprisonment for a term exceeding 1 year; and
       ``(B) any act or activity occurring outside of the United 
     States that would constitute an offense covered under 
     subparagraph (A) if the act or activity had occurred within 
     the jurisdiction of the United States or any State;''.

     SEC. 102. MAKING THE DOMESTIC MONEY LAUNDERING STATUTE APPLY 
                   TO ``REVERSE MONEY LAUNDERING'' AND INTERSTATE 
                   TRANSPORTATION.

       (a) In General.--Section 1957 of title 18, United States 
     Code, is amended--
       (1) in the heading, by inserting ``or in support of 
     criminal activity'' after ``specified unlawful activity'';
       (2) in subsection (a), by striking ``Whoever'' and 
     inserting the following:
       ``(1) Whoever''; and
       (3) by adding at the end the following:
       ``(2) Whoever--
       ``(A) in any of the circumstances set forth in subsection 
     (d)--
       ``(i) conducts or attempts to conduct a monetary 
     transaction involving property of a value that is greater 
     than $10,000; or
       ``(ii) transports, attempts to transport, or conspires to 
     transport property of a value that is greater than $10,000;
       ``(B) in or affecting interstate commerce; and
       ``(C) either--
       ``(i) knowing that the property was derived from some form 
     of unlawful activity; or
       ``(ii) with the intent to promote the carrying on of 
     specified unlawful activity;
     shall be fined under this title, imprisoned for a term of 
     years not to exceed the statutory maximum for the unlawful 
     activity from which the property was derived or the unlawful 
     activity being promoted, or both.''.
       (b) Chapter Analysis.--The item relating to section 1957 in 
     the table of sections for chapter 95 of title 18, United 
     States Code, is amended to read as follows:

``1957. Engaging in monetary transactions in property derived from 
              specified unlawful activity or in support of criminal 
              activity.''.

     SEC. 103. PROCEDURE FOR ISSUING SUBPOENAS IN MONEY LAUNDERING 
                   CASES.

       (a) In General.--Section 986 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(e) Procedure for Issuing Subpoenas.--The Attorney 
     General, the Secretary of the Treasury, or the Secretary of 
     Homeland Security may issue a subpoena in any investigation 
     of a violation of sections 1956, 1957 or 1960, or sections 
     5316, 5324, 5331 or 5332 of title 31, United States Code, in 
     the manner set forth under section 3486.''.
       (b) Grand Jury and Trial Subpoenas.--Section 
     5318(k)(3)(A)(i) of title 31, United States Code, is 
     amended--
       (1) by striking ``related to such correspondent account'';
       (2) by striking ``or the Attorney General'' and inserting 
     ``, the Attorney General, or the Secretary of Homeland 
     Security''; and
       (3) by adding at the end the following:
       ``(iii) Grand jury or trial subpoena.--In addition to a 
     subpoena issued by the Attorney General, Secretary of the 
     Treasury, or the Secretary of Homeland Security under clause 
     (i), a subpoena under clause (i) includes a grand jury or 
     trial subpoena requested by the Government.''.
       (c) Fair Credit Reporting Act Amendment.--Section 604(a)(1) 
     of the Fair Credit Reporting Act (15 U.S.C. 1681b(a)(1)) is 
     amended--
       (1) by striking ``or''; and
       (2) by inserting before the period the following: ``, or an 
     investigative subpoena issued under section 5318 of title 31, 
     United States Code''.
       (d) Obstruction of Justice.--Section 1510(b) of title 18, 
     United States Code, is amended--
       (1) in paragraph (2)(A), by inserting ``or an investigative 
     subpoena issued under section 5318 of title 31, United States 
     Code'' after ``grand jury subpoena''; and
       (2) in paragraph (3)(B), by inserting ``, an investigative 
     subpoena issued under section 5318 of title 31, United States 
     Code,'' after ``grand jury subpoena''.
       (e) Right to Financial Privacy Act.--Section 1120 of the 
     Right to Financial Privacy Act of 1978 (12 U.S.C. 3420) is 
     amended--
       (1) in subsection (a)(1), by inserting ``or to the 
     Government'' after ``to the grand jury''; and
       (2) in subsection (b)(1), by inserting ``, or an 
     investigative subpoena issued pursuant to section 5318 of 
     title 31, United States Code,'' after ``grand jury 
     subpoena''.

     SEC. 104. TRANSPORTATION OR TRANSHIPMENT OF BLANK CHECKS IN 
                   BEARER FORM.

       Section 5316 of title 31, United States Code, is amended by 
     adding at the end the following:
       ``(e) Monetary Instruments With Amount Left Blank.--For 
     purposes of this section, a monetary instrument in bearer 
     form that has the amount left blank, such that the amount 
     could be filled in by the bearer, shall be considered to have 
     a value equal to the highest value of the funds in the 
     account on which the monetary instrument is drawn during the 
     time period the monetary instrument was being transported or 
     the time period it was negotiated or was intended to be 
     negotiated.''.

     SEC. 105. BULK CASH SMUGGLING.

       Section 5332 of title 31, United States Code, is amended--
       (1) in subsection (b)(1), by striking ``5 years'' and 
     inserting ``10 years''; and
       (2) by adding the end the following:
       ``(d) Investigative Authority.--Violations of this section 
     may be investigated by the Attorney General, the Secretary of 
     the Treasury, the Secretary of Homeland Security, and the 
     Postal Service.''.

     SEC. 106. VIOLATIONS INVOLVING COMMINGLED FUNDS AND 
                   STRUCTURED TRANSACTIONS.

       Section 1957(f) of title 18, United States Code, is 
     amended--
       (1) in paragraph (2) by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(4) the term `monetary transaction in criminally derived 
     property that is of a value greater than $10,000' includes--
       ``(A) a monetary transaction involving the transfer, 
     withdrawal, encumbrance or other disposition of more than 
     $10,000 from a bank account in which more than $10,000 in 
     proceeds of specified unlawful activity have been commingled 
     with other funds;
       ``(B) a series of monetary transactions in amounts under 
     $10,000 that exceed $10,000 in the aggregate and that are 
     closely related to each other in terms of such factors as 
     time, the identity of the parties involved, the nature and 
     purpose of the transactions, and the manner in which they are 
     conducted; and
       ``(C) any financial transaction covered under section 
     1956(j) that involves more than $10,000 in proceeds of 
     specified unlawful activity; and
       ``(5) the term `monetary transaction involving property of 
     a value that is greater than $10,000' includes a series of 
     monetary transactions in amounts under $10,000 that exceed 
     $10,000 in the aggregate and that are closely related to each 
     other in terms of such factors as time, the identity of the 
     parties involved, the nature and purpose of the transactions, 
     and the manner in which they are conducted.''.

     SEC. 107. CHARGING MONEY LAUNDERING AS A COURSE OF CONDUCT.

       (a) In General.--Section 1956 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(j) Multiple Violations.--Multiple violations of this 
     section that are part of the same scheme or continuing course 
     of conduct may be charged, at the election of the Government, 
     in a single count in an indictment or information.''.
       (b) Conspiracies.--Section 1956(h) of title 18, United 
     States Code, is amended by striking ``or section 1957'' and 
     inserting ``, section 1957, or section 1960''.

     SEC. 108. ILLEGAL MONEY TRANSMITTING BUSINESSES.

       (a) Technical Amendments.--
       (1) In general.--Section 1960 of title 18, United States 
     Code, is amended--
       (A) in the heading by striking ``unlicensed'' and inserting 
     ``illegal'';
       (B) in subsection (a), by striking ``unlicensed'' and 
     inserting ``illegal''; and
       (C) in subsection (b)(1), by striking ``unlicensed'' and 
     inserting ``illegal''.
       (2) Chapter analysis.--The item relating to section 1960 in 
     the table of sections for chapter 95 of title 18, United 
     States Code, is amended to read as follows:

``1960. Prohibition of illegal money transmitting businesses.''.
       (b) Definition of Business To Include Informal Value 
     Transfer Systems and Money Brokers for Drug Cartels.--Section 
     1960(b) of title 18, United States Code, is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(4) the term `business' includes any person or 
     association of persons, formal or informal, licensed or 
     unlicenced, that provides money transmitting services on 
     behalf of any third party in return for remuneration or other 
     consideration.''.
       (c) Prohibition of Unlicensed Money Transmitting 
     Businesses.--Section 1960(b)(1)(B) of title 18, United States 
     Code, is amended by inserting the following before the 
     semicolon: ``, whether or not the defendant knew that the 
     operation was required to comply with such registration 
     requirements''.
       (d) Authority To Investigate.--Section 1960 of title 18, 
     United States Code, is amended by adding at the end the 
     following:

[[Page 2983]]

       ``(c) Authority To Investigate.--Violations of this section 
     may be investigated by the Attorney General, the Secretary of 
     the Treasury, and the Secretary of Homeland Security.''.

     SEC. 109. KNOWLEDGE THAT THE PROPERTY IS THE PROCEEDS OF A 
                   SPECIFIC FELONY.

       (a) Proceeds of a Felony.--Section 1956(c)(1) of title 18, 
     United States Code, is amended by inserting ``, and 
     regardless of whether or not the person knew that the 
     activity constituted a felony'' before the semicolon at the 
     end.
       (b) Intent To Conceal or Disguise.--Section 1956(a) of 
     title 18, United States Code, is amended--
       (1) in paragraph (1)(B)(i), by striking ``specified 
     unlawful activity'' and inserting ``some form of unlawful 
     activity''; and
       (2) in paragraph (2)(B)(i), by striking ``specified 
     unlawful activity'' and inserting ``some form of unlawful 
     activity''.

     SEC. 110. EXTRATERRITORIAL JURISDICTION.

       Section 1956(f)(1) of title 18, United States Code, is 
     amended by inserting ``or has an effect in the United 
     States'' after ``conduct occurs in part in the United 
     States''.

     SEC. 111. CONDUCT IN AID OF COUNTERFEITING.

       (a) In General.--Section 474(a) of title 18, United States 
     Code, is amended by inserting after the paragraph beginning 
     ``Whoever has in his control, custody, or possession any 
     plate'' the following:
       ``Whoever, with intent to defraud, has custody, control, or 
     possession of any material that can be used to make, alter, 
     forge, or counterfeit any obligation or other security of the 
     United States or any part of such obligation or security, 
     except under the authority of the Secretary of the Treasury; 
     or''.
       (b) Foreign Obligations and Securities.--Section 481 of 
     title 18, United States Code, is amended by inserting after 
     the paragraph beginning ``Whoever, with intent to defraud'' 
     the following:
       ``Whoever, with intent to defraud, has custody, control, or 
     possession of any material that can be used to make, alter, 
     forge, or counterfeit any obligation or other security of any 
     foreign government, bank, or corporation; or''.
       (c) Counterfeit Acts.--Section 470 of title 18, United 
     States Code, is amended by striking ``or 474'' and inserting 
     ``474, or 474A''.
       (d) Strengthening Deterrents to Counterfeiting.--Section 
     474A of title 18, United States Code is amended--
       (1) in subsection (a)--
       (A) by inserting ``, custody,'' after ``control'';
       (B) by inserting ``, forging, or counterfeiting'' after 
     ``to the making'';
       (C) by striking ``such obligation'' and inserting 
     ``obligation''; and
       (D) by inserting ``of the United States'' after ``or other 
     security'';
       (2) in subsection (b)--
       (A) by inserting ``, custody,'' after ``control'';
       (B) striking ``any essentially identical feature or 
     device'' and inserting ``any material or other thing made 
     after or in the similitude of any such deterrent''; and
       (C) by inserting ``, forging, or counterfeiting'' after 
     ``to the making'';
       (3) by redesignating subsection (c) as subsection (d); and
       (4) by inserting after subsection (b) the following:
       ``(c) Whoever has in his control, custody, or possession 
     any altered obligation or security of the United States or 
     any foreign government adapted to the making, forging, or 
     counterfeiting of any obligation or security of the United 
     States or any foreign government, except under the authority 
     of the Secretary of the Treasury, is guilty of a class B 
     felony.''.

     SEC. 112. USE OF PROCEEDS DERIVED FROM CRIMINAL 
                   INVESTIGATIONS.

       (a) Authority of Secret Service.--During fiscal years 2008 
     through 2010, with respect to any undercover investigative 
     operation of the United States Secret Service (in this 
     section referred to as the ``Secret Service'') which is 
     necessary for the detection and prosecution of crimes against 
     the United States--
       (1) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, may 
     be used to purchase property, buildings, and other 
     facilities, and to lease space, within the United States, the 
     District of Columbia, and the territories and possessions of 
     the United States, without regard to--
       (A) sections 1341 and 3324 of title 31 of the United States 
     Code;
       (B) section 8141 of title 40 of the United States Code;
       (C) sections 3732(a) and 3741 of the Revised Statutes of 
     the United States (41 U.S.C. 11(a) and 22); and
       (D) sections 304(a) and 305 of the Federal Property and 
     Administrative Services Act of 1949 ( 41 U.S.C. 254(a) and 
     255);
       (2) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, may 
     be used--
       (A) to establish or to acquire proprietary corporations or 
     business entities as part of an undercover investigative 
     operation; and
       (B) to operate such corporations or business entities on a 
     commercial basis, without regard to sections 9102 and 9103 of 
     title 31 of the United States Code;
       (3) sums authorized in any such fiscal year to be 
     appropriated for the Secret Service, including any 
     unobligated balances available from prior fiscal years, and 
     the proceeds seized, earned, or otherwise accrued from any 
     such undercover investigative operation, may be deposited in 
     banks or other financial institutions, without regard to--
       (A) section 648 of title 18 of the United States Code; and
       (B) section 3302 of title 31 of the United States Code; and
       (4) proceeds seized, earned, or otherwise accrued from any 
     such undercover investigative operation may be used to offset 
     the necessary and reasonable expenses incurred in such 
     operation, without regard to section 3302 of title 31 of the 
     United States Code.
       (b) Written Certification of Director Required.--
       (1) In general.--The authority granted under subsection (a) 
     may be exercised only upon the written certification of the 
     Director of the Secret Service or the Director's designee.
       (2) Content of certification.--Each certification issued 
     under paragraph (1) shall state that any action authorized 
     under paragraph (1), (2), (3), or (4) of subsection (a) is 
     necessary to conduct the undercover investigative operation.
       (3) Duration of certification.--Each certification issued 
     under paragraph (1) shall continue in effect for the duration 
     of the undercover investigative operation, without regard to 
     fiscal years.
       (c) Transfer of Proceeds to Treasury.--As soon as 
     practicable after the proceeds from an undercover 
     investigative operation with respect to which an action is 
     authorized and carried out under paragraphs (3) and (4) of 
     subsection (a) are no longer necessary for the conduct of 
     such operation, such proceeds, or the balance of such 
     proceeds, remaining at the time shall be deposited in the 
     Treasury of the United States as miscellaneous receipts.
       (d) Corporations With a High Net Value.--
       (1) In general.--If a corporation or business entity 
     established or acquired as part of an undercover 
     investigative operation under subsection (a)(2) having a net 
     value of over $50,000 is to be liquidated, sold, or otherwise 
     disposed of, the Secret Service, as much in advance as the 
     Director of the Secret Service or the Director's designee 
     determines is practicable, shall report the circumstances of 
     such liquidation, sale, or other disposition to the Secretary 
     of Homeland Security.
       (2) Transfer of proceeds to treasury.--The proceeds of any 
     liquidation, sale, or other disposition of any corporation or 
     business entity under paragraph (1) shall, after all other 
     obligations are met, be deposited in the Treasury of the 
     United States as miscellaneous receipts.
       (e) Audits.--The Secret Service shall--
       (1) conduct, on a quarterly basis, a detailed financial 
     audit of each completed undercover investigative operation 
     where a written certification was issued pursuant to this 
     section; and
       (2) report the results of each such audit in writing to the 
     Secretary of Homeland Security.

                     TITLE II--TECHNICAL AMENDMENTS

     SEC. 201. TECHNICAL AMENDMENTS TO SECTIONS 1956 AND 1957 OF 
                   TITLE 18.

       (a) Unlawful Activity.--Section 1956(c) of title 18, United 
     States Code, is amended--
       (1) in paragraph (2), by striking ```conducts''' and 
     inserting ```conduct'''; and
       (2) in paragraph (7)(F), by inserting ``, as defined in 
     section 24(a)'' before the semicolon.
       (b) Property From Unlawful Activity.--Section 1957 of title 
     18, United States Code, is amended--
       (1) in subsection (a), by striking ``engages or attempts to 
     engage in'' and inserting ``conducts or attempts to 
     conduct''; and
       (2) in subsection (f)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(4) the term `conduct' has the meaning given such term 
     under section 1956(c)(2).''.
                                 ______
                                 
      By Mrs. HUTCHISON (for herself and Mr. Cornyn):
  S. 474. A bill to award a congressional gold medal to Michael Ellis 
DeBakey, M.D.; to the Committee on Banking, Housing, and Urban Affairs.
  Mrs. HUTCHISON. Mr. President, I rise today to acknowledge the 
lifetime achievements of my dear friend Dr. Michael Ellis DeBakey, a 
public servant and world-renowned cardiologist, by re-introducing 
legislation to award him the Congressional Gold Medal.
  Throughout his life, Dr. DeBakey has made numerous advances in the 
field of medicine. When he was only 23 years of age and still attending 
medical school, Dr. DeBakey developed a roller pump for blood 
transfusions--the precursor and major component of the heart-lung

[[Page 2984]]

machine used in the first open-heart operation. This device later led 
to national recognition for his expertise in vascular disease. His 
service to our country did not stop there.
  Dr. DeBakey put his practice on hold and volunteered for military 
service during World War II with the Surgeon General's staff. During 
this time, he received the rank of Colonel and Chief of Surgical 
Consultants Division.
  As a result of his military and medical experience, Dr. DeBakey made 
numerous recommendations to improve the military's medical procedures. 
His efforts led to the development of mobile army surgical hospitals, 
better known as MASH units, which earned him the Legion of Merit in 
1945.
  After WWII, Dr. DeBakey continued his hard work by proposing national 
and specialized medical centers for those soldiers who were wounded or 
needed follow-up treatment. This recommendation evolved into the 
Veterans Affairs Medical Center System and the establishment of the 
commission on Veterans Medical Problems of the National Research 
Council.
  In 1948, Dr. DeBakey joined the Baylor University College of 
Medicine, where he started its first surgical residency program and was 
later elected the first President of Baylor College of Medicine.
  Adding to his list of accomplishments, Dr. DeBakey performed the 
first successful procedure to treat patients with aneurysms. In 1964, 
Dr. DeBakey performed the first successful coronary bypass surgery, 
opening the doors for surgeons to perform preventative procedures to 
save the lives of many people with heart disease. He was also the first 
to successfully use a partial artificial heart. Later that same year, 
President Lyndon B. Johnson appointed Dr. DeBakey as Chairman of the 
President's Commission on Heart Disease, Cancer and Stroke, which led 
to the creation of Regional Medical Programs. These programs coordinate 
medical schools, research institutions and hospitals to enhance 
research and training.
  Dr. DeBakey continued to amaze the medical world when he pioneered 
the field of telemedicine by performing the first open-heart surgery 
transmitted over satellite and then supervised the first successful 
multi-organ transplant, where a heart, both kidneys and a lung were 
transplanted from a single donor into four separate recipients.
  These accomplishments have led to national recognition. Dr. DeBakey 
has received both the Presidential Medal of Freedom with Distinction 
from President Johnson and the National Medal of Science from President 
Ronald Reagan.
  Recently, Dr. DeBakey worked with NASA engineers to develop the 
DeBakey Ventricular Assist Device, which may eliminate the need for 
some patients to receive heart transplants.
  I stand here today to acknowledge Dr. DeBakey's invaluable work and 
significant contribution to medicine by offering a bill to award him 
the Congressional Gold Medal. His efforts and innovative surgical 
techniques have since saved the lives of thousands, if not millions, of 
people. I ask my Senate colleagues to join me in recognizing the 
profound impact this man has had on medical advances, the delivery of 
medicine and how we care for our Veterans. Although, Dr. DeBakey is not 
a native of Texas, he has made Texas proud. He has guided the Baylor 
College of Medicine and the city of Houston into becoming a world 
leader in medical advancement. On behalf of all Texans, I thank Dr. 
DeBakey for his lifetime of commitment and service, not only to the 
medical community, but to the world.
  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. 474

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

     SECTION 1. FINDINGS.

       The Congress makes the following findings:
       (1) Michael Ellis DeBakey, M.D., was born on September 7, 
     1908, in Lake Charles, Louisiana, to Shaker and Raheeja 
     DeBakey.
       (2) Dr. DeBakey, at the age of 23 and still a medical 
     student, reported a major invention, a roller pump for blood 
     transfusions, which later became a major component of the 
     heart-lung machine used in the first successful open-heart 
     operation.
       (3) Even though Dr. DeBakey had already achieved a national 
     reputation as an authority on vascular disease and had a 
     promising career as a surgeon and teacher, he volunteered for 
     military service during World War II, joining the Surgeon 
     General's staff and rising to the rank of Colonel and Chief 
     of the Surgical Consultants Division.
       (4) As a result of this first-hand knowledge of military 
     service, Dr. DeBakey made numerous recommendations for the 
     proper staged management of war wounds, which led to the 
     development of mobile army surgical hospitals or ``MASH'' 
     units, and earned Dr. DeBakey the Legion of Merit in 1945.
       (5) After the war, Dr. DeBakey proposed the systematic 
     medical follow-up of veterans and recommended the creation of 
     specialized medical centers in different areas of the United 
     States to treat wounded military personnel returning from 
     war, and from this recommendation evolved the Veterans 
     Affairs Medical Center System and the establishment of the 
     Commission on Veterans Medical Problems of the National 
     Research Council.
       (6) In 1948, Dr. DeBakey joined the Baylor University 
     College of Medicine, where he developed the first surgical 
     residency program in the city of Houston, and today, guided 
     by Dr. DeBakey's vision, the College is one of the most 
     respected health science centers in the Nation.
       (7) In 1953, Dr. DeBakey performed the first successful 
     procedures to treat patients who suffered aneurysms leading 
     to severe strokes, and he later developed a series of 
     innovative surgical techniques for the treatment of aneurysms 
     enabling thousands of lives to be saved in the years ahead.
       (8) In 1964, Dr. DeBakey triggered the most explosive era 
     in modern cardiac surgery, when he performed the first 
     successful coronary bypass, once again paving the way for 
     surgeons world-wide to offer hope to thousands of patients 
     who might otherwise succumb to heart disease.
       (9) Two years later, Dr. DeBakey made medical history 
     again, when he was the first to successfully use a partial 
     artificial heart to solve the problems of a patient who could 
     not be weaned from a heart-lung machine following open-heart 
     surgery.
       (10) In 1968, Dr. DeBakey supervised the first successful 
     multi-organ transplant, in which a heart, both kidneys, and 
     lung were transplanted from a single donor into 4 separate 
     recipients.
       (11) In 1964, President Lyndon B. Johnson appointed Dr. 
     DeBakey to the position of Chairman of the President's 
     Commission on Heart Disease, Cancer and Stroke, leading to 
     the creation of Regional Medical Programs established ``to 
     encourage and assist in the establishment of regional 
     cooperative arrangements among medical schools, research 
     institutions, and hospitals, for research and training''.
       (12) In the mid-1960's, Dr. DeBakey pioneered the field of 
     telemedicine with the first demonstration of open-heart 
     surgery to be transmitted overseas by satellite.
       (13) In 1969, Dr. DeBakey was elected the first President 
     of Baylor College of Medicine.
       (14) In 1969, President Lyndon B. Johnson bestowed on Dr. 
     DeBakey the Presidential Medal of Freedom with Distinction, 
     and in 1985, President Ronald Reagan conferred on him the 
     National Medal of Science.
       (15) Working with NASA engineers, he refined existing 
     technology to create the DeBakey Ventricular Assist Device, 
     one-tenth the size of current versions, which may eliminate 
     the need for heart transplantation in some patients.

     SEC. 2. CONGRESSIONAL GOLD MEDAL.

       (a) Presentation Authorized.--The Speaker of the House of 
     Representatives and the President Pro Tempore of the Senate 
     shall make appropriate arrangements for the presentation, on 
     behalf of the Congress, of a gold medal of appropriate 
     design, to Michael Ellis DeBakey, M.D., in recognition of his 
     many outstanding contributions to the Nation.
       (b) Design and Striking.--For purposes of the presentation 
     referred to in subsection (a), the Secretary of the Treasury 
     (referred to in this Act as the ``Secretary'') shall strike a 
     gold medal with suitable emblems, devices, and inscriptions 
     to be determined by the Secretary.

     SEC. 3. DUPLICATE MEDALS.

       The Secretary may strike and sell duplicates in bronze of 
     the gold medal struck pursuant to section 2 under such 
     regulations as the Secretary may prescribe, at a price 
     sufficient to cover the cost thereof, including labor, 
     materials, dies, use of machinery, and overhead expenses, and 
     the cost of the gold medal.

     SEC. 4. STATUS OF MEDALS.

       (a) National Medals.--The medals struck pursuant to this 
     Act are national medals for purposes of chapter 51 of title 
     31, United States Code.
       (b) Numismatic Items.--For purposes of sections 5134 and 
     5136 of title 31, United States Code, all medals struck under 
     this Act shall be considered to be numismatic items.

[[Page 2985]]



     SEC. 5. AUTHORITY TO USE FUND AMOUNTS; PROCEEDS OF SALE.

       (a) Authority To Use Fund Amounts.--There is authorized to 
     be charged against the United States Mint Public Enterprise 
     Fund such amounts as may be necessary to pay for the costs of 
     the medals struck pursuant to this Act.
       (b) Proceeds of Sale.--Amounts received from the sale of 
     duplicate bronze medals authorized under section 3 shall be 
     deposited into the United States Mint Public Enterprise Fund.
                                 ______
                                 
      By Mr. DOMENICI (for himself and Mr. Bingaman):
  S. 475. A bill to increase the number of Deputy United States 
Marshals that investigate immigration crimes; to the Committee on the 
Judiciary.
  Mr. DOMENICI. Mr. President, I rise today to with Senator Bingaman to 
introduce legislation that provides resources that the U.S. Marshals 
Service desperately needs for their role in improving the security of 
our borders and enforcing our immigration laws.
  Our U.S. Marshals are involved in several aspects of immigration 
matters, including helping to transport criminal immigrants and 
guarding them in federal courthouses. As we improve border security and 
interior enforcement, our Marshals need increased staff to handle the 
increased caseload that will be associated with those improvements.
  Therefore, my legislation calls for hiring 50 new deputies each year 
for five years. Increasing the number of Deputy U.S. Marshals by 250 
new law enforcers will make a great impact on this service that is 
stretched thin in their role relating to border security and 
immigration enforcement. Without such legislation, we will only be 
adding to the workload of our already thinly-stretched Marshals 
Service.
  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. 475

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

     SECTION 1. DEPUTY UNITED STATES MARSHALS.

       (a) Increase Positions.--In each of the fiscal years 2008 
     through 2012, the Attorney General, subject to the 
     availability of appropriations, shall increase by not less 
     than 50 the number of positions for full-time active duty 
     Deputy United States Marshals that investigate criminal 
     matters related to immigration.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Attorney General such sums as may 
     be necessary for each of the fiscal years 2008 through 2012 
     to carry out subsection (a).
                                 ______
                                 
      By Mr. CRAPO (for himself and Mr. Craig):
  S. 477. A bill to authorize the Secretary of the Interior to convey 
certain land and improvements of the Gooding Division of the Minidoka 
Project, Idaho; to the Committee on Energy and Natural Resources.
  Mr. CRAPO. Mr. President, I am pleased to reintroduce a bill today 
with my colleague, Senator Craig to formally convey title a portion of 
the American Falls Reservoir District from the Bureau of Reclamation to 
the National Park Service in our home State of Idaho.
  The Minidoka Internment National Monument Draft General Management 
Plan and Environment Impact Statement proposes, the transfer of these 
two publicly owned parcels of land, which are both within and adjacent 
to the existing 73-acre NPS boundary, and have been identified as 
important for inclusion as part of the Monument. The sites were both 
within the original 33,000-acre Minidoka Relocation Center that was 
operated by the War Relocation Authority, where approximately 13,500 
Japanese and Japanese Americans were held from 1942 through 1945.
  The smaller 2.31-acre parcel is located in the center of the monument 
in the old warehouse area and includes three historical buildings and 
other important cultural features. The Draft General Management Plan 
proposes to use this site for visitor services, including a Visitor 
Contact Station within an original warehouse to greet visitors and 
provide orientation for the monument. The other, a 7.87-acre parcel, is 
on the east end of the monument and was undeveloped during WWII. The 
NPS proposes to use this area for special events and to provide a site 
for the development of a memorial for the Issei, first-generation 
Japanese immigrants. These two publicly-owned properties are critical 
for long-term development, visitor services, and protection and 
preservation of historical structures and features at Minidoka 
Internment National Monument.
  I would like to add that this legislation was developed with and is 
strongly supported by both the agencies involved and the local 
communities. I ask my colleagues to join me in enacting this small land 
transfer that we might move a step closer toward properly memorializing 
an important, but often forgotten, chapter of our Nation's history.
  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 printed 
in the Record, as follows:

                                 S. 477

       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 ``American Falls Reservoir 
     District Number 2 Conveyance Act''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Agreement.--The term ``Agreement'' means Agreement No. 
     5-07-10-L1688 between the United States and the District, 
     entitled ``Agreement Between the United States and the 
     American Falls Reservoir District No. 2 to Transfer Title to 
     the Federally Owned Milner-Gooding Canal and Certain Property 
     Rights, Title and Interest to the American Falls Reservoir 
     District No. 2''.
       (2) District.--The term ``District'' means the American 
     Falls Reservoir District No. 2, located in Jerome, Lincoln, 
     and Gooding Counties, Idaho.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 3. AUTHORITY TO CONVEY TITLE.

       (a) In General.--In accordance with all applicable law and 
     the terms and conditions set forth in the Agreement, the 
     Secretary may convey--
       (1) to the District all right, title, and interest in and 
     to the land and improvements described in Appendix A of the 
     Agreement, subject to valid existing rights;
       (2) to the city of Gooding, located in Gooding County, 
     Idaho, all right, title, and interest in and to the 5.0 acres 
     of land and improvements described in Appendix D of the 
     Agreement; and
       (3) to the Idaho Department of Fish and Game all right, 
     title, and interest in and to the 39.72 acres of land and 
     improvements described in Appendix D of the Agreement.
       (b) Compliance With Agreement.--All parties to the 
     conveyance under subsection (a) shall comply with the terms 
     and conditions of the Agreement, to the extent consistent 
     with this Act.

     SEC. 4. TRANSFER.

       As soon as practicable after the date of enactment of this 
     Act, the Secretary shall direct the Director of the National 
     Park Service to include in and manage as a part of the 
     Minidoka Internment National Monument the 10.18 acres of land 
     and improvements described in Appendix D of the Agreement.

     SEC. 5. COMPLIANCE WITH OTHER LAWS.

       (a) In General.--On conveyance of the land and improvements 
     under section 3(a)(1), the District shall comply with all 
     applicable Federal, State, and local laws (including 
     regulations) in the operation of each facility transferred.
       (b) Applicable Authority.--Nothing in this Act modifies or 
     otherwise affects the applicability of Federal reclamation 
     law (the Act of June 17, 1902 (32 Stat. 388, chapter 1093), 
     and Acts supplemental to and amendatory of that Act (43 
     U.S.C. 371 et seq.)) to project water provided to the 
     District.

     SEC. 6. REVOCATION OF WITHDRAWALS.

       (a) In General.--The portions of the Secretarial Orders 
     dated March 18, 1908, October 7, 1908, September 29, 1919, 
     October 22, 1925, March 29, 1927, July 23, 1927, and May 7, 
     1963, withdrawing the approximately 6,900 acres described in 
     Appendix E of the Agreement for the purpose of the Gooding 
     Division of the Minidoka Project, are revoked.
       (b) Management of Withdrawn Land.--The Secretary, acting 
     through the Director of the Bureau of Land Management, shall 
     manage the withdrawn land described in subsection (a) subject 
     to valid existing rights.

     SEC. 7. LIABILITY.

       (a) In General.--Subject to subsection (b), upon completion 
     of a conveyance under section 3, the United States shall not 
     be liable for damages of any kind for any injury arising out 
     of an act, omission, or occurrence relating to the land 
     (including any improvements to the land) conveyed under the 
     conveyance.

[[Page 2986]]

       (b) Exception.--Subsection (a) shall not apply to liability 
     for damages resulting from an injury caused by any act of 
     negligence committed by the United States (or by any officer, 
     employee, or agent of the United States) before the date of 
     completion of the conveyance.
       (c) Federal Tort Claims Act.--Nothing in this section 
     increases the liability of the United States beyond that 
     provided in chapter 171 of title 28, United States Code.

     SEC. 8. FUTURE BENEFITS.

       (a) Responsibility of the District.--After completion of 
     the conveyance of land and improvements to the District under 
     section 3(a)(1), and consistent with the Agreement, the 
     District shall assume responsibility for all duties and costs 
     associated with the operation, replacement, maintenance, 
     enhancement, and betterment of the transferred land 
     (including any improvements to the land).
       (b) Eligibility for Federal Funding.--
       (1) In General.--Except as provided in paragraph (2), the 
     District shall not be eligible to receive Federal funding to 
     assist in any activity described in subsection (a) relating 
     to land and improvements transferred under section 3(a)(1).
       (2) Exception.--Paragraph (1) shall not apply to any 
     funding that would be available to a similarly situated 
     nonreclamation district, as determined by the Secretary.

     SEC. 9. NATIONAL ENVIRONMENTAL POLICY ACT.

       Before completing any conveyance under this Act, the 
     Secretary shall complete all actions required under--
       (1) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.);
       (2) the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
     seq.);
       (3) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.); and
       (4) all other applicable laws (including regulations).

     SEC. 10. PAYMENT.

       (a) Fair Market Value Requirement.--As a condition of the 
     conveyance under section 3(a)(1), the District shall pay the 
     fair market value for the withdrawn lands to be acquired by 
     them, in accordance with the terms of the Agreement.
       (b) Grant for Building Replacement.--As soon as practicable 
     after the date of enactment of this Act, and in full 
     satisfaction of the Federal obligation to the District for 
     the replacement of the structure in existence on that date of 
     enactment that is to be transferred to the National Park 
     Service for inclusion in the Minidoka Internment National 
     Monument, the Secretary, acting through the Commission of 
     Reclamation, shall provide to the District a grant in the 
     amount of $52,996, in accordance with the terms of the 
     Agreement.
                                 ______
                                 
      By Mr. McCAIN (for himself and Mr. Feingold):
  S. 478. A bill to amend the Federal Election Campaign Act of 1971 to 
replace the Federal Election Commission with Federal Election 
Administration, and for other purposes; to the Committee on Rules and 
Administration.
  Mr. McCAIN. Mr. President, I am pleased to be joined by my good 
friend and colleague from Wisconsin, Senator Feingold in once again 
introducing legislation to replace the Federal Election Commission 
(FEC) with the Federal Election Administration (FEA). The FEA would 
serve as an independent body to enforce Federal campaign laws--
something the FEC has been unable, and often unwilling, to do.
  This legislation would terminate the FEC and establish a new 
regulatory entity. Using a new organizational structure and 
administrative law judges, we hope to avoid the routine partisan 
deadlocks that are now so prevalent at the FEC.
  This bill would authorize the new FEA to impose civil penalties, 
issue cease and desist orders, report apparent criminal violations to 
the appropriate law enforcement authorities, and conduct audits and 
field examinations of campaign committees. Finally, this bill would 
direct the Comptroller General to examine and report to Congress on the 
enforcement of the criminal provisions of the Federal campaign finance 
laws.
  I urge my colleagues to support this common sense reform proposal.
                                 ______
                                 
      By Mr. HARKIN (for himself, Mr. Grassley, Mr. Rockefeller, Ms. 
        Snowe, Mr. Durbin, Mr. Smith, Mr. Lautenberg, Mr. Thune, Mr. 
        Kerry, Mr. Brownback, and Mr. Schumer):
  S. 479. A bill to reduce the incidence of suicide among veterans; to 
the Committee on Veterans' Affairs.
  Mr. HARKIN. Mr. President, I am honored to join with the 
distinguished senior Senator from my State, Senator Grassley, to 
introduce the Joshua Omvig Veterans Suicide Prevention Act.
  During my years in the Navy, I learned one of the most important 
lessons of my entire life: Never leave a buddy behind. That's true on 
the battlefield--and it's also true after our servicemembers return 
home. Taking care of our veterans is a continuing cost of national 
defense, and we need to make sure we don't abandon them once they 
return home.
  Our service men and women endure tremendous stress during combat. 
Almost all of our soldiers reported being under fire while serving in 
Iraq and knowing someone seriously injured or killed. Returning home 
and rejoining their families and friends can be a time of hope and joy, 
but it can also be a time of enormous stress. In particular, the 
traumas and memories of combat service can cause profound problems. 
Army studies show that around 25 percent of soldiers who have served in 
Iraq display symptoms of serious mental-health problems, including 
depression, substance abuse and post-traumatic stress disorder (PTSD).
  Tragically, suicide disproportionately affects veterans. In 2004, 
veterans accounted for more than 20 percent of deaths by suicide, yet 
they make up only 10 percent of the general population. We should be 
addressing this shocking rate of suicide among our veterans. But the 
Department of Veterans Affairs (VA) currently does not have appropriate 
suicide prevention, early detection, and treatment programs available 
to meet the needs of our veterans. This is unacceptable! The aim of our 
bill is to improve early detection and intervention; provide access to 
services for veterans in crisis; and, thereby, prevent the unnecessary 
deaths of the men and women who have put their lives on the line to 
defend our nation.
  Joshua Omvig was one such veteran. Josh was a member of the United 
States Army Reserve 339th MP Company, based in Davenport, IA. Before 
leaving for Iraq, he was a member of the Grundy Center Volunteer Fire 
Department and the Grundy Center Police Reserves. He felt honored to 
serve his country in the Reserves and hoped to return to serve his 
community as a police officer. Unfortunately, when he returned from his 
11-month deployment in Iraq, he brought the traumas of war with him. He 
committed suicide a few days before Christmas in 2005. He was just 22 
years old.
  This was a preventable death. If Josh and his family had had better 
access to mental health services; if they had been trained to recognize 
the symptoms of PTSD; and if they had known where to turn for help; 
then the tragedy of his death might well have been avoided.
  In his honor, Senator Grassley and I offer this legislation to 
improve the services offered by the VA, and to bring down the appalling 
rate of suicide among veterans.
  First, this bill focuses on reducing the stigma associated with 
seeking treatment for mental health problems. Almost 80 percent of 
soldiers serving in Iraq and Afghanistan who exhibited signs of mental 
health problems were not referred for mental health services. More than 
two-thirds of the servicemembers who screened positive for a mental 
health problem reported that they were concerned about the stigma 
associated with seeking treatment.
  Given these statistics, our bill calls for the creation of a mental 
health campaign to increase awareness of mental illness and the risk 
factors for suicide. Veterans need to hear from members of the chain of 
command, leadership within the VA, and from their peers that seeking 
mental health services is important for their health, their families, 
and no different than seeking treatment for a physical health issue, 
such as chronic pain or a broken leg.
  Second, this bill ensures that VA staff and medical personnel will 
receive suicide prevention and education training so that they can 
recognize when and where to refer veterans for assistance. 
Additionally, the legislation ensures 24-hour access to mental health 
care for those who are at risk for suicide, including those in rural or 
remote areas. Veterans who do not have easy

[[Page 2987]]

access to VA hospitals and veterans centers must be assured of access 
to services during periods of crisis.
  Finally, this bill recognizes the importance of family and peer 
support. It trains peer counselors to understand the risk factors for 
suicide, provide support during readjustment, and to assist veterans in 
seeking help. This bill also engages family members by helping them to 
understand the readjustment process; to recognize the signs and 
symptoms of mental illness; and let them know where to turn for 
assistance. By enlisting the aid and support of family members and 
peers, we will reduce the likelihood that our veterans suffer in 
isolation.
  The stresses that our service men and women endure in combat are 
strong and can trigger severe mental health issues. Although our men 
and women may come home safely, the war isn't over for them. Often, the 
physical wounds of combat are repaired, but the mental damage--the 
psychological scars of combat--can haunt a person for a lifetime. The 
Federal Government has a moral contract with those who have fought for 
our country and sacrificed so much. Together, we can work to make good 
on that contract. Our service men and women deserve to know that we 
will not forget about their service--and we will not leave them behind.
                                 ______
                                 
      By Mr. KOHL (for himself, Mr. Hatch, and Mr. Specter):
  S. 480. A bill to amend the Antitrust Modernization Commission Act of 
2002, to extend the term of the Antitrust Modernization Commission and 
to make a technical correction; to the Committee on the Judiciary.
  Mr. KOHL. Mr. President, I rise today to introduce the Antitrust 
Modernization Commission Extension Act of 2007. This legislation will 
ensure that the Commission is able to finalize its report examining the 
state of the Nation's antitrust laws in a timely manner by granting it 
a brief 30 day extension to close out its operations. I thank my co-
sponsors Senators Hatch and Specter for joining me in introducing this 
measure.
  Congress established the Antitrust Modernization Commission through 
the passage of the Antitrust Modernization Act of 2002. The 
Commission's purpose was to ``examine whether the need exists to 
modernize the antitrust laws'' of our Nation. In fulfillment of this 
purpose the Commission is now finalizing a comprehensive report due to 
both Congress and the President by April 2, 2007. Currently, the 
Commission expects the report to be submitted in a timely manner. The 
Commission is concerned, however, with the sufficiency of the 
statutorily required 30 day deadline to dismantle itself following the 
submission of the report.
  In order to comply with the current statutory framework and shut down 
operations within 30 days of the report's submission date, the 
Commission will need to begin archiving its records prior to its 
completion of the report. This large administrative undertaking will 
interfere with the Commission's final efforts on the report given the 
Commission's very limited staff resources. In view of the importance of 
the report, it is imperative that no aspect of this report be 
jeopardized by administrative deadlines. To alleviate this burden on 
the closing operations of the Commission, I am introducing this 
legislation to extend the Commission's administrative shutdown period 
from 30 days to 60 days.
  Granting an additional 30 days to the Commission will provide it with 
time to archive Commission records and work product, while allowing it 
to perform other necessary close-out tasks, including the transfer of 
its acquired property to other government agencies, without interfering 
with the completion of its report. Furthermore, the time extension 
requested does not contemplate the appropriation of any additional 
funding to the Commission. In fact, the Commission expects that it will 
likely return at least $500,000 to the Treasury of the $4 million 
allocated to it upon fulfillment of its purpose. This 30 day extension 
is merely directed at the administrative process of wrapping up 
operations.
  I urge my colleagues to support this legislation that will 
effectively and efficiently allow the Antitrust Modernization 
Commission to complete its designated tasks.
  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. 480

       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 ``Antitrust Modernization 
     Commission Extension Act of 2007''.

     SEC. 2. EXTENSION OF TERMINATION.

       Section 11059 of the Antitrust Modernization Commission Act 
     of 2002 (15 U.S.C. 1 note) is amended--
       (1) by striking ``30 days'' and inserting ``60 days''; and
       (2) by striking ``section 8'' and inserting ``section 
     11058''.
                                 ______
                                 
      By Mr. CONRAD (for himself, Mr. Domenici, Mr. Dorgan, Mr. McCain, 
        Mr. Bingaman, Mr.  Kohl, and Mr. Thune):
  S. 481. A bill to recruit and retain more qualified individuals to 
teach in Tribal Colleges or Universities; to the Committee on Indian 
Affairs.
  Mr. CONRAD. Mr. President, 5 years ago, I formed the bipartisan Task 
Force on Tribal Colleges and Universities to raise awareness of the 
important role that the tribal colleges and universities play in their 
respective communities as educational, economic, and cultural centers. 
The Task Force seeks to advance initiatives that help improve the 
quality education the colleges provide.
  For more than 3 decades, tribal colleges have been providing a 
quality education to help Native Americans of all ages reach their 
fullest potential. More than 30,000 students from 250 tribes nationwide 
attend tribal colleges. Tribal colleges serve young people preparing to 
enter the job market, dislocated workers learning new skills, and 
people seeking to move off welfare. I am a strong supporter of our 
Nation's tribal colleges because, more than any other factor, they are 
bringing hope and opportunity to America's Indian communities.
  Over the years, I have met with many tribal college students, and I 
am always impressed by their commitment to their education, their 
families and their communities. Tribal colleges and universities have 
been highly successful in helping Native Americans obtain a higher 
education. Congress has recognized the importance of these institutions 
and the significant gains they have achieved in helping more 
individuals obtain their education. While Congress has steadily 
increased its financial support of these institutions, many challenges 
still remain.
  One of the challenges that the tribal college presidents have 
expressed to me is the frustration and difficulty they have in 
attracting qualified individuals to teach at the colleges. Recruitment 
and retention are difficult for many of the colleges because of their 
geographic isolation and low faculty salaries.
  To help tackle the challenges of recruiting and retaining qualified 
faculty, I am introducing the Tribal Colleges and Universities Faculty 
Loan Forgiveness Act. This legislation will provide student loan 
forgiveness to individuals who commit to teach for up to five years in 
one of the tribal colleges nationwide. Individuals who have Perkins, 
Direct, or Guaranteed loans may qualify to receive up to $15,000 in 
loan forgiveness. This will provide these institutions with extra help 
in attracting qualified faculty, and thus help ensure that deserving 
students receive a quality education. Finally, the bill also includes 
loan forgiveness for nursing instructors at the few tribal colleges 
with accredited nursing programs. Nursing instructors currently receive 
loans through the Department of Health and Human Services for their 
training. As a result, without the added provision in this bill, they 
would not qualify for assistance.
  I would be remiss if I did not recognize that former Senator Daschle 
was

[[Page 2988]]

responsible for spearheading this initiative for a number of years. The 
tribal colleges lost a true champion, but I am pleased to carry forward 
his vision and support for the colleges.
  I am pleased that Senators Domenici, Dorgan, McCain, Bingaman, Kohl 
and Thune are original cosponsors of this bill, and I look forward to 
working with my colleagues to pass this important legislation.
                                 ______
                                 
      By Mr. ENZI (for himself and Mr. Kennedy):
  S. 484. A bill to amend the Public Health Service Act and the Federal 
Food, Drug, and Cosmetic Act to improve drug safety and oversight, and 
for other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. ENZI. Mr. President, I rise today to introduce a very important 
bill, one that my colleague Senator Kennedy and I have been working on 
for some time.
  For decades, the United States has been the standard bearer in 
bringing new drugs and medications to the world market. Like it or not, 
the FDA has a very important role in all of our daily lives. The FDA is 
involved in ensuring the safety of the meals we are eating today, the 
pills we are taking, and even the cell phones in our pockets and 
briefcases. The FDA's role in our health and in our economy is broad.
  Nearly half of all Americans take a prescription drug daily. Anyone 
who prescribes, provides or takes a prescription drug could benefit 
from enhanced safety and risk communication about these life-saving 
products. Over the last few years, a spate of safety issues, such as 
the withdrawal of the arthritis drug Vioxx and the labeling of 
antidepressants for suicidality in adolescents, has caused a crisis of 
public confidence in the FDA. I believe the American people are losing 
confidence in the FDA and its ability to evaluate and weigh the 
benefits and risks of prescription drugs. In addition, staff at the 
agency feel like they are under heavy fire, with little or no 
protection from the prevailing political winds, due to the lack of a 
confirmed Commissioner of Food and Drugs for most of the last six 
years. I believe that only Congress can restore the public's confidence 
in FDA and morale at the agency.
  In 2005, the HELP Committee held two hearings on the issue of drug 
safety. We received over 50 recommendations from witnesses at those 
hearings. At that time, Senator Kennedy and I pledged to develop a 
comprehensive response to the drug safety issues raised. Last August, 
we introduced the Enhancing Drug Safety and Innovation Act. That bill, 
S. 3807, was the product of working across party lines, and created a 
structured framework for resolving safety concerns. Careful and 
comprehensive pre-approval planning of how drugmakers and FDA will 
identify, assess and manage serious risks post-approval is a better way 
to obtain safety information without compromising patient access.
  In September 2006, the Institute of Medicine released its report 
titled ``The Future of Drug Safety: Promoting and Protecting the Health 
of the Public.'' The recommendations in this report had much in common 
with S. 3807. The Senate HELP Committee held a hearing in November 2006 
at which representatives of the IOM, a physician and drug safety 
expert, patient groups, a consumer group, and a pharmaceutical company 
testified about the IOM report, the bill, and the relationship between 
them. In addition, other stakeholder groups made additional comments on 
the bill. Yesterday, FDA released their response to the IOM report. 
Newly confirmed Commissioner Dr. Andrew von Eschenbach has put forward 
a number of promising ideas to improve the internal processes and 
culture at FDA. His leadership is outstanding and his ideas are 
helpful, but internal change is not enough to alter public perception. 
FDA needs new drug safety authorities, and this bill provides those 
authorities.
  While the bill we are introducing today reflects numerous refinements 
to clarify ambiguities or to address issues that S. 3807 had not 
addressed, we realize that there are thoughtful differences of opinion 
and ideas on how best to move forward with drug safety. I welcome any 
and all suggestions on improving this bill, and I look forward to 
working with my colleagues and other stakeholders to understand those 
concerns more fully and incorporate any necessary changes in the bill 
which will be considered in front of the HELP Committee in the next few 
weeks. I hope that all of my colleagues will take another look at this 
legislation and its goals and work with me to change the status quo. 
Everyone agrees: We must do more for drug safety.
  Under the Enhancing Drug Safety and Innovation Act, FDA would begin 
to approve drugs and biologics, and new indications for these products, 
with risk evaluation and mitigation strategies (REMS). The REMS is 
designed to be an integrated, flexible mechanism to acquire and adapt 
to new safety information about a drug. The sponsor and FDA will assess 
and review an approved REMS at least annually for the first three 
years, as well as in applications for a new indication, when the 
sponsor suggests changes, or when FDA requests a review based on new 
safety information.
  The development of tools to evaluate medical products has not kept 
pace with discoveries in basic science. New tools are needed to better 
predict safety and efficacy, which in turn would increase the speed and 
efficiency of applied biomedical research. The Enhancing Drug Safety 
and Innovation Act would spur innovation by establishing a new public-
private partnership between the FDA, industry and academia to advance 
the Critical Path Initiative and improve the sciences of developing, 
manufacturing, and evaluating the safety and effectiveness of drugs, 
devices, biologics and diagnostics.
  The Enhancing Drug Safety and Innovation Act also establishes a 
central clearinghouse for information about clinical trials and their 
results to help patients, providers and researchers learn new 
information and make more informed health care decisions.
  Finally, the Enhancing Drug Safety and Innovation Act would make 
improvements to FDA's process for screening advisory committee members 
for financial conflicts of interest. FDA relies on its 30 advisory 
committees to provide independent expert advice, lend credibility to 
the product review process, and inform consumers of trends in product 
development. The bill would clarify and streamline FDA's processes for 
evaluating candidates for service on an advisory committee, and address 
the key challenge of identifying a sufficient number of people with the 
necessary expertise and the fewest potential conflicts of interest to 
serve on advisory committees.
  I want to thank the dozens of stakeholders, including the Food and 
Drug Administration, patient and consumer groups, industry 
associations, individual companies, and scientific experts who have 
taken the time and effort to give us their comments and input on the 
bill. Their assistance has been invaluable, and I look forward to 
continuing to work with them as we go through this legislative process.
  Senator Kennedy and I believe that this bipartisan effort will bring 
more consistency, transparency, and accountability to the process of 
assuring a drug's safety after it is approved. The 110th Congress will 
hold an exceptionally full agenda with respect to the FDA. In addition 
to updating the FDA's authorities as we are proposing today, Congress 
must renew the drug and device user fee programs, as well as the Best 
Pharmaceuticals for Children and Pediatric Research Equity Acts. The 
introduction of this bill today is the beginning, not the end, of the 
process, and I look forward to working with my colleagues to advance 
these important pieces of legislation.
  Mr. KENNEDY. Mr. President, it is a privilege to join Senator Enzi in 
introducing the Enhancing Drug Safety and Innovation Act of 2007. The 
goals of the legislation are to strengthen the Food and Drug 
Administration's authority over the safety of prescription drugs after 
they are approved; to encourage

[[Page 2989]]

innovation in medical products; to increase access to clinical trials 
for patients and ensure that doctors and patients are aware of the 
results of clinical trials involving the drugs they prescribe and use; 
and to improve the screening of members of FDA's scientific advisory 
committees to avoid conflicts of interest.
  The withdrawal of the drug Vioxx from the market 2 years ago 
demonstrated again that all prescription drugs have risks, many of 
which are unknown when a drug is approved, or even for years after 
approval. We need a more effective system to identify and assess the 
serious risks of drugs, inform health care providers and patients about 
such risks, and manage and mitigate these risks as soon as they are 
detected.
  Our bill will require drugs to have a risk evaluation and mitigation 
strategy when it is approved. For many drugs, the strategy will include 
only the drug labeling, reports of adverse events, a justification for 
why only such reporting is needed, and a timetable for assessing how 
the REMS is working.
  The FDA will be able to include additional requirements for drugs 
that pose serious risks, such as by requiring that the drug be 
dispensed with labels that patients can understand, that the drug 
company have a plan to inform health care providers about how to use 
the drug safely, and that a drug should not be advertised directly to 
consumers for up to 2 years after approval. If a serious safety concern 
needs to be understood, FDA can require further studies or even 
clinical trials after the drug is approved. Enhanced data collection 
and data mining techniques will help identify risk signals earlier and 
more thoroughly.
  For drugs with the most serious side effects, FDA will be able to 
require that its risk evaluation and mitigation strategy include the 
restrictions on distribution or use needed to assure its safe use.
  The FDA will be able to impose any of these requirements at the time 
a drug is approved. The agency can also modify the labeling or 
otherwise alter a drug's availability after the approval. The drug's 
manufacturer will propose the overall strategy, or modifications to it, 
and the FDA and the company will try to work out an adequate 
compromise. If the agency and the company cannot agree, the agency's 
Drug Safety Oversight Board can review the dispute and recommend a 
resolution to senior FDA officials, who will make the final decision.
  Civil monetary penalties are added to FDA's traditional enforcement 
authority to ensure compliance. Drug user fees will also be used to 
review and implement the program.
  The bill formalizes and makes mandatory what is now only informal and 
voluntary. Our intent is not to change the standards for approving 
drugs, but to see that the FDA has the ability to identify, assess, and 
manage risks as they become known. Better risk management will mean 
that drugs with special benefits for some patients will remain 
available, despite serious risks for other patients, because FDA can 
better identify the risks and manage them.
  The bill helps to improve drug safety in other ways as well. The 
Reagan-Udall Institute for Applied Biomedical Research will be a new 
public-private partnership at the FDA to advance the agency's critical 
path initiative. The initiative is intended to improve the science of 
developing, manufacturing, and evaluating the safety and effectiveness 
of drugs, biologics, medical devices, and diagnostics.
  The Institute will be supported by Federal funds and by contributions 
from the pharmaceutical and device industries. Philanthropic 
organizations will be able to supplement Federal support. The institute 
will have a board of directors and an executive director, and will 
report to Congress annually on its operations.
  The bill will also expand the public database at NIH to encourage 
more patients to enroll in clinical trials of drugs. The database will 
build on the current systems and would include late phase II, phase 
III, and all phase IV clinical trials for all drugs.
  A second, publicly available database would include the results of 
phase III and phase IV clinical trials of drugs, with the possibility 
that late phase II trials would be added later. Posting of results 
could be delayed for up to 2 years, pending the approval of the drug or 
the publication of trial results in a peer- reviewed journal.
  The public needs to know about the results of clinical trials on 
drugs. Tragically, such information was not adequately available for 
the clinical studies of antidepressants in children.
  Posting information in the clinical trials registry and the clinical 
trials results database will be requirements for federal research 
funding and for drug review and approval by the FDA. Both the FDA and 
other appropriate offices in the Department of Health and Human 
Services will review the content of submissions to the results database 
to ensure they are truthful and nonpromotional. These Federal 
requirements will preempt State requirements for clinical trial 
databases.
  Finally, the bill will improve FDA's process for screening advisory 
committee members for financial conflicts of interest. The agency 
relies on advisory committees to provide independent, expert, 
nonbinding recommendations on significant issues. Ideally, committee 
members should be free of any financial ties to the companies affected 
by an issue before a committee. But at times, there may be no 
individual without financial ties to such companies--for example, when 
the issue involves a rare disease or a cutting edge medical technology. 
In these cases, the FDA must be able to grant a waiver to allow an 
individual with essential expertise to serve on the committee. The bill 
will require the agency to seek qualified experts with minimal 
conflicts, clarify how it makes waiver decisions, and disclose those 
decisions at least 15 days before a committee meeting.
  Our bill is a comprehensive response to drug safety and other 
important issues involving prescription drugs and other medical 
technologies. I commend Chairman Enzi and his dedicated staff--
especially Amy Muhlberg--for working closely with us on this proposal, 
and I urge our colleagues to support it.
                                 ______
                                 
      By Mr. KERRY (for himself and Ms. Snowe):
  S. 485. A bill to amend the Clean Air Act to establish an economy-
wide global warming pollution emission cap-and-trade program to assist 
the economy in transitioning to new clean energy technologies, to 
protect employees and affected communities, to protect companies and 
consumers from significant increases in energy costs, and for other 
purposes; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to support the Global Warming 
Reduction Act of 2007. Senator Kerry and I are here today offering this 
legislation because the issue of global warming is no longer seriously 
open to skepticism. The preponderance of peer-reviewed scientific 
evidence is irrefutable and the cost of inaction incalculable. It is no 
longer a question of science--it is now a question of political will.
  I believe our bill offers a means by which anyone who is honestly 
committed to addressing global warming can vote to improve our 
environmental future while preserving our economy. We call for 65 
percent reductions of greenhouse gas emissions by 2050 for all major 
sectors of our society, and starting in 2010, we put these called-for 
emissions reductions on a downward glide path to make the reductions 
realistic yet aggressive. It takes a forward-looking, comprehensive, 
science-based approach to tackling this issue without putting a 
stranglehold on our economy. This is the right course at the right 
cost.
  While Congress fiddles, alpine glaciers and polar ice caps millions 
of years old are melting. Sea levels are rising globally. Manmade 
carbon dioxide levels and the average global temperature have increased 
at unprecedented levels over the past century--and are projected to 
increase up to 8.1 degrees Fahrenheit in the next 100

[[Page 2990]]

years. Meanwhile, the CO2 we continue to release today while 
we await meaningful action will remain in the atmosphere for at least a 
century--with concentrations rising in the coming decades. Just think--
CO2 emissions from Henry Ford's very first car are still in 
the atmosphere. Clearly, we can't afford to wait any longer.
  And it's not as though we aren't literally catapulting toward a 
consensus on at least the existence of the problem. We have a Federal 
agency, NOAA, reporting that 2006 was the warmest year since regular 
temperature records began in 1895 and the past nine years have been 
among the 25 warmest years on record for the contiguous U.S. Even 
though the President announced no new direct climate policy changes, he 
did state in his most recent State of the Union Address that we must 
confront the serious challenge of global climate change.
  Just last week, a coalition of ten major U.S. companies came together 
to form the U.S. Climate Action Partnership--Alcoa, BP America, 
Caterpillar, Duke Energy, DuPont, General Electric, FPL Group, Lehman 
Brothers, PG&E, and PNM Resources all have advocated for a mandatory 
carbon cap-and-trade system--as our bill provides. Even ExxonMobil, 
long skeptical on anthropogenic global warming, recently saw its CEO 
state that ``the risk [of climate change] is so great that it justifies 
taking action.''
  Two years ago, I became co-chair of the International Climate Change 
Taskforce, comprised of respected scientists, business leaders, and 
elected officials from eight industrialized and developing nations. The 
first and significant recommendation we published was to prevent global 
temperatures from rising above 3.6 degrees Fahrenheit in the next 
century--because science suggests that beyond this temperature increase 
there is a tipping point--a possible abrupt climate change that would 
have a catastrophic effect on our ecosystems and our society.
  This bill would prevent us from reaching that tipping point with a 
required 65 percent reduction in CO2 emissions by 2050--a 
figure that is both rigorous and realistic. And it does so by both 
instituting the successful California emissions standards that have 
already been embraced by other States--including seven northeastern 
States like my home State of Maine--and that provide industry with 
predictability and uniformity . . . and also putting in place a 
flexible but mandatory carbon ``cap and trade'' system that uses the 
power of the ``invisible hand'' to reduce emissions more cost-
effectively for businesses.
  And to encourage greater investment in renewable energy, we also call 
for 20 percent of America's electricity to come from renewable sources 
by 2020. But at the same time we provide incentives for advanced 
technologies so that existing industries can actually make investments 
into cleaner infrastructure.
  Moreover, with the U.S. comprising only four percent of the world's 
population yet emitting 20 percent of the world's carbon dioxide, we 
think it's time our response to this crisis become proportional to our 
nation's contribution to the problem. And that's why our bill also 
urges the U.S. to return to the international negotiating table.
  Global warming is a comprehensive problem that demands the kind of 
comprehensive approach our bill provides--with measures to minimize the 
effects on our communities and our ecosystems that other bills 
acknowledge are inevitable but do not address. Ours is the only climate 
bill to be introduced that calls for research to assess the 
vulnerability of coral reefs to increased CO2 deposits, and 
of marine organisms throughout the marine food web. Our bill also calls 
for the creation of a ``vulnerability scorecard'' to provide 
communities with a yardstick for them to measure the potential impact 
of climate change and make informed decisions to minimize the impact.
  In the end, government leaders should make no mistake--the public 
understands the severity of the risk of inaction on this crucial issue, 
with half of voters reporting in a recent Zogby poll that concerns 
about global warming made a difference in who they voted for and 58 
percent said that combating global warming should be a high priority. 
So the truth is that elected officials ignore the public's concerns 
with global warming at their own peril--just as we ignore the danger to 
the detriment of our children and future generations.
  The opportunity to stop, and ultimately reverse, global climate 
change is not open-ended. The clock is ticking . . . and the cost of 
inaction continues to escalate. We recognize the major cause of global 
warming and we understand what a solution requires. Now we are 
compelled to muster the political will to make it happen--and the 
Kerry-Snowe bill provides a reasonable yet vigorous path to follow. 
Thank you.
                                 ______
                                 
      By Mr. KENNEDY (for himself, Mr. Durbin, Mrs. Clinton, Mr. 
        Harkin, Mr. Rockefeller, Mr. Kerry, and Mr. Schumer):
  S. 486. A bill to establish requirements for lenders and institutions 
of higher education in order to protect students and other borrowers 
receiving educational loans; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. KENNEDY. Mr. President, it's a privilege to join my colleague, 
Senator Durbin, in introducing the Student Loan Sunshine Act, to 
provide greater support for students and families across America who 
are struggling with great difficulty to pay for college.
  Over the past 20 years, the cost of attending college has doubled. 
Today, the average cost of attendance at a 4-year public college is 
almost $13,000. As a result, students and families are going deeper and 
deeper into debt to finance the cost of higher education. In 1993, 
fewer than a third of students at four-year colleges graduated with 
debt to pay on their student loans. Today that number has doubled. Two-
thirds of students now graduate with student loan debt.
  The average debt load has soared as well. In the past decade, it has 
increased by 57 percent at public colleges and 38 percent at private 
colleges. Today, the typical graduate leaves college saddled with 
$17,000 in student loans.
  Nowhere has this growth been more pronounced than in private student 
loans. Until recently, most students who borrowed for college took out 
loans under the Direct Loan program and the Federal Family Education 
Loan program--the two main student loan programs subsidized by the 
Federal Government.
  With the cost of college rising rapidly and grant aid stagnating, 
however, more and more students are turning to the private loan sector 
and are taking out so-called ``alternative loans''--private loans that 
lenders offer through colleges and universities. Students are also 
borrowing increasingly from direct-to-consumer education lenders, which 
include giant lenders such as Sallie Mae that also participate in the 
FFEL program, as well as other companies that just offer private-market 
loans, such as Loan to Learn.
  A decade ago, private loans accounted for only 3 percent of all funds 
used to finance students' post-secondary education. Since then, the 
volume of private loans has grown by an astronomical 1200 percent. 
Today, private loans now total $17 billion, and represent 20 percent of 
all borrowing for higher education.
  Many lenders making these private loans claim they're providing an 
important service. They say that at a time when college prices are 
rising rapidly, they provide needed funds to help students pay for 
college.
  What they won't tell you is the exorbitant cost that countless 
students are paying for these loans. Unlike loans offered through the 
federal programs, private loans frequently carry much higher interest 
rates, especially for students without credit histories and families 
without strong credit ratings. In some cases, the interest rates on 
private loans may be as high as 19 percent a year, compared to 6.8 
percent for loans offered through the FFEL and Direct Loan programs.
  The lenders also don't tell you about the aggressive tactics they use 
to persuade colleges to offer private loans to

[[Page 2991]]

their students--and to persuade students to borrow directly as well.
  The private company Student Loan Xpress has offered 100 percent loan 
approval at colleges if the college agrees to ``brand'' the private 
loan with the college's name and emblem--making the loan appear to be 
offered by the college, not the private lender.
  Other private loan companies encourage borrowers not to fill out the 
Free Application for Federal Student Aid, which allows borrowers to 
obtain loans at lower interest rates. They don't prominently disclose 
the fact that their interest rates are typically much higher.
  Some lenders make gifts to college and university employees. Loan to 
Learn invited college officials and their spouses to an all-expenses 
paid ``education conference'' in the West Indies. Many lenders who 
participate in the FFEL program offer similar ``educational 
conferences'' at fancy hotels, and offer free entertainment and tickets 
to sporting events to college officials. The Attorney General in New 
York State has opened an investigation into such practices and is 
looking into the practices of six lenders, including Sallie Mae, 
Nelnet, and Educap, the corporate name of Loan to Learn.
  We need to take immediate steps to stop actions that prevent students 
from obtaining the best loan agreement possible. That is what the 
Student Loan Sunshine Act does.
  First and foremost, it is a consumer protection measure. It will 
protect student and parent borrowers by ending the inappropriate lender 
practices I've just mentioned.
  It prohibits lenders from offering to a college employee any gift 
worth more than $10, including free or discounted trips, meals, 
invitations to entertainment events or other form of hospitality.
  It prohibits lenders from offering services to financial aid offices 
that create a conflict of interest, such as lending staff during peak 
loan processing times. It also prohibits lenders from ``branding'' 
their loans with a college name, emblem, or logo.
  The Sunshine Act also arms students and parents with the information 
they need to make wise decisions when they borrow funds for higher 
education.
  The Act requires lenders to report any special arrangements they have 
with colleges to make such loans, and it ensures that this information 
is conveyed to borrowers.
  It requires the Secretary of Education, together with members of the 
higher education community and students, to develop a clear, easy-to-
use model format for reporting the terms and conditions of student 
loans, similar to the APR disclosure required for other types of loans.
  If a college creates a ``preferred lender'' list, the Act requires 
the college to disclose clearly and fully why it has identified a 
lender as a preferred lender. Schools must also include at least three 
nonaffiliated lenders on the list, so that students have a real choice. 
Finally, the Sunshine Act also addresses the fast-growing direct-to-
consumer educational loan market. It offers new protections for 
students who take out direct-to-consumer loans, so they don't borrow 
more than is necessary to pay for their college education.
  The Act requires all lenders of direct-to-consumer private 
educational loans to state clearly and prominently that borrowers may 
qualify for low-interest loans through the Federal Government's loan 
programs. It also requires lenders to clearly disclose the terms and 
conditions of the loans they're offering, including any hidden fees, as 
well as any complaints against the lender that have been filed by 
consumer agencies such as the Better Business Bureau or the state 
attorney general's office.
  Before a direct-to-consumer lender can offer an education loan of 
more than $1000, the Act requires the lender to notify the borrower's 
college of the amount of the proposed loan, so that the school can 
advise the borrower whether the loan exceeds what's necessary to cover 
the student's cost of attendance after other aid sources are factored 
in.
  Students deserve the best loan advice possible from financial aid 
officers and the best deal from lenders. They have the right to exhaust 
their federal loan eligibility before turning to more expensive private 
lenders for aid.
  Going to college is a lifetime investment, but paying for college is 
a heavy burden for too many families. As the private student loan 
market continues to grow, it's our responsibility to protect students 
from exploitation in that market.
  I thank the bill's cosponsors, and I urge my colleagues to support 
this bill as well. It's time we put students first, and the Student 
Loan Sunshine Act takes important steps to do just that.
  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. 486

       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 ``Student Loan Sunshine Act''.

     SEC. 2. INSTITUTION AND LENDER REPORTING AND DISCLOSURE 
                   REQUIREMENTS.

       Title I of the Higher Education Act of 1965 (20 U.S.C. 1001 
     et seq.) is amended by adding at the end the following:

 ``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATIONAL 
                                 LOANS

     ``SEC. 151. DEFINITIONS.

       ``In this part:
       ``(1) Covered institution.--The term `covered 
     institution'--
       ``(A) means any educational institution that offers a 
     postsecondary educational degree, certificate, or program of 
     study (including any institution of higher education, as such 
     term is defined in section 102) and receives any Federal 
     funding or assistance; and
       ``(B) includes an agent of the educational institution 
     (including an alumni association, booster club, or other 
     organization directly or indirectly associated with such 
     institution) or employee of such institution.
       ``(2) Educational loan.--The term `educational loan' 
     (except when used as part of the term `private educational 
     loan') means--
       ``(A) any loan made, insured, or guaranteed under title IV; 
     or
       ``(B) a private educational loan (as defined in paragraph 
     (5)).
       ``(3) Educational loan arrangement.--
       ``The term `educational loan arrangement' means an 
     arrangement or agreement between a lender and a covered 
     institution--
       ``(A) under which arrangement or agreement a lender 
     provides or otherwise issues educational loans to the 
     students attending the covered institution or the parents of 
     such students; and
       ``(B) which arrangement or agreement--
       ``(i) relates to the covered institution recommending, 
     promoting, endorsing, or using the loan product of the 
     lender; and
       ``(ii) involves the payment of any fee or provision of 
     other material benefit by the lender to the institution or to 
     groups of students who attend the institution.
       ``(4) Lender.--
       ``(A) In general.--The term `lender'--
       ``(i) means a creditor, except that such term shall not 
     include an issuer of credit under a residential mortgage 
     transaction; and
       ``(ii) includes an agent of a lender.
       ``(B) Incorporation of tila definitions.--The terms 
     `creditor' and `residential mortgage transaction' have the 
     meanings given such terms in section 103 of the Truth in 
     Lending Act (15 U.S.C. 1602).
       ``(5) Private educational loan.--The term `private 
     educational loan' means a private loan provided by a lender 
     that--
       ``(A) is not made, insured, or guaranteed under title IV; 
     and
       ``(B) is issued by a lender for postsecondary educational 
     expenses to a student, or the parent of the student, 
     regardless of whether the loan is provided through the 
     educational institution that the student attends or directly 
     to the student or parent from the lender.
       ``(6) Postsecondary educational expenses.--The term 
     `postsecondary educational expenses' means any of the 
     expenses that are included as part of a student's cost of 
     attendance, as defined under section 472.

     ``SEC. 152. REQUIREMENTS FOR LENDERS AND INSTITUTIONS 
                   PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.

       ``(a) Reporting for Lenders.--In addition to any other 
     disclosure required under Federal law, each lender that 
     participates in 1 or more educational loan arrangements shall 
     prepare and submit to the Secretary (at a time to be 
     determined by the Secretary) an annual report that includes, 
     with respect to each educational loan arrangement, the 
     following:
       ``(1) The date on which the arrangement was entered into 
     and the period for which the arrangement applies.
       ``(2) A summary of the terms of the arrangement related to 
     the marketing, recommending, endorsing, or use of, the loans.

[[Page 2992]]

       ``(3) The full details of any aspect of the arrangement 
     relating to the covered institution issuing loans and the 
     lender (or a financial partner of the lender) servicing or 
     purchasing such loans.
       ``(4) A summary of any direct or indirect benefit provided 
     or paid to any party in connection with the arrangement.
       ``(b) Provision of Loan Information.--A lender may not 
     provide a private educational loan to a student attending a 
     covered institution with which the lender has an educational 
     loan arrangement, or the parent of such student, until the 
     covered institution has informed the student or parent of 
     their remaining options for borrowing under title IV, 
     including information on any terms and conditions of 
     available loans under such title that are more favorable to 
     the borrower.
       ``(c) Use of Institution Name.--
       ``(1) In general.--A covered institution that has entered 
     into an educational loan arrangement with a lender regarding 
     private educational loans shall not allow the lender to use 
     the name, emblem, mascot, or logo of the institution, or 
     other words, pictures, or symbols readily identified with the 
     institution, in the marketing of private educational loans to 
     the students attending the institution in any way that 
     implies that the institution endorses the private educational 
     loans offered by the lender.
       ``(2) Applicability.--Paragraph (1) shall apply to any 
     educational loan arrangement, or extension of such 
     arrangement, entered into or renewed after the date of 
     enactment of the Student Loan Sunshine Act.

     ``SEC. 153. INTEREST RATE REPORT FOR INSTITUTIONS AND LENDERS 
                   PARTICIPATING IN EDUCATIONAL LOAN ARRANGEMENTS.

       ``(a) Secretary Duties.--
       ``(1) Report and model format.--Not later than 180 days 
     after the date of enactment of the Student Loan Sunshine Act, 
     the Secretary shall--
       ``(A) prepare a report on the adequacy of the information 
     provided to students and the parents of such students about 
     educational loans (including loans made, insured, or 
     guaranteed under title IV and private educational loans), 
     after consulting with students, representatives of covered 
     institutions (including financial aid administrators, 
     registrars, and business officers), lenders (including 
     lenders of private educational loans), loan servicers, and 
     guaranty agencies;
       ``(B) include in the report a model format, based on the 
     report's findings, to be used by lenders and covered 
     institutions in carrying out subsections (b) and (c)--
       ``(i) that provides information on the applicable interest 
     rates and other terms and conditions of the educational loans 
     provided by a lender to students attending the institution, 
     or the parents of such students, disaggregated by each type 
     of educational loans provided to such students or parents by 
     the lender, including--

       ``(I) the interest rate and terms and conditions of the 
     loans offered by the lender for the upcoming academic year;
       ``(II) with respect to such loans, any benefits that are 
     contingent on the repayment behavior of the borrower;
       ``(III) the annual percentage rate for such loans, based on 
     the actual disbursed amount of the loan;
       ``(IV) the average amount borrowed from the lender by 
     students enrolled in the institution who obtain loans of such 
     type from the lender for the preceding academic year; and
       ``(V) the average interest rate on such loans provided to 
     such students for the preceding academic year; and

       ``(ii) which format shall be easily usable by lenders, 
     institutions, guaranty agencies, and loan servicers; and
       ``(C)(i) submit the report and model format to the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate and the Committee on Education and Labor of the House 
     of Representatives; and
       ``(ii) make the report and model format available to 
     covered institutions, lenders, and the public.
       ``(2) Format update.--Not later than 1 year after the 
     submission of the report and model format described in 
     paragraph (1), the Secretary shall--
       ``(A) assess the adequacy of the model format included in 
     the report;
       ``(B) after consulting with students, representatives of 
     covered institutions (including financial aid administrators, 
     registrars, and business officers), lenders (including 
     lenders of private educational loans), loan servicers, and 
     guaranty agencies--
       ``(i) prepare a list of any improvements to the model 
     format that have been identified as beneficial to borrowers; 
     and
       ``(ii) update the model format after taking such 
     improvements into consideration; and
       ``(C)(i) submit the list of improvements and updated model 
     format to the Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives; and
       ``(ii) make the list of improvements and updated model 
     format available to covered institutions, lenders, and the 
     public.
       ``(3) Use of form.--The Secretary shall take such steps as 
     necessary to make the model format, and any updated model 
     format, available to covered institutions and to encourage--
       ``(A) lenders subject to subsection (b) to use the model 
     format or updated model format (if available) in providing 
     the information required under subsection (b); and
       ``(B) covered institutions to use such format in preparing 
     the information report under subsection (c).
       ``(b) Lender Duties.--Each lender that has an educational 
     loan arrangement with a covered institution shall annually, 
     by a date determined by the Secretary, provide to the covered 
     institution and to the Secretary the information included on 
     the model format or an updated model format (if available) 
     for each type of educational loan provided by the lender to 
     students attending the covered institution, or the parents of 
     such students, for the preceding academic year.
       ``(c) Covered Institution Duties.--Each covered institution 
     shall--
       ``(1) prepare and submit to the Secretary an annual report, 
     by a date determined by the Secretary, that includes, for 
     each lender that has an educational loan arrangement with the 
     covered institution and that has submitted to the institution 
     the information required under subsection (b)--
       ``(A) the information included on the model format or 
     updated model format (if available) for each type of 
     educational loan provided by the lender to students attending 
     the covered institution, or the parents of such students; and
       ``(B) a detailed explanation of why the covered institution 
     believes the terms and conditions of each type of educational 
     loan provided pursuant to the agreement are beneficial for 
     students attending the covered institution, or the parents of 
     such students; and
       ``(2) ensure that the report required under paragraph (1) 
     is made available to the public and provided to students 
     attending or planning to attend the covered institution, and 
     the parents of such students, in time for the student or 
     parent to take such information into account before applying 
     for or selecting an educational loan.

     ``SEC. 154. PRIVATE EDUCATIONAL LOAN DISCLOSURE REQUIREMENTS 
                   FOR COVERED INSTITUTIONS.

       ``A covered institution that provides information to any 
     student, or the parent of such student, regarding a private 
     educational loan from a lender shall, prior to or concurrent 
     with such information--
       ``(1) inform the student or parent of--
       ``(A) the student or parent's eligibility for assistance 
     and loans under title IV; and
       ``(B) the terms and conditions of such private educational 
     loan that are less favorable than the terms and conditions of 
     educational loans for which the student or parent is 
     eligible, including interest rates, repayment options, and 
     loan forgiveness; and
       ``(2) ensure that information regarding such private 
     educational loans is presented in such a manner as to be 
     distinct from information regarding loans that are made, 
     insured, or guaranteed under title IV.

     ``SEC. 155. GIFT BAN FOR EMPLOYEES OF INSTITUTIONS.

       ``(a) Gift Ban.--A lender or guarantor of educational loans 
     shall not offer any gift to an employee or agent of a covered 
     institution.
       ``(b) Reports of Gift Ban Violations.--
       ``(1) Employee report.--Each employee or agent of a covered 
     institution shall report to the Inspector General of the 
     Department of Education any instance of a lender or guarantor 
     of educational loans (including an agent of the lender or 
     guarantor) that attempts to give a gift to the employee or 
     agent in violation of subsection (a).
       ``(2) Inspector general report.--The Inspector General of 
     the Department of Education shall investigate any reported 
     violation of this subsection and shall annually submit a 
     report to the Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives identifying all 
     reported violations of the gift ban under subsection (a), 
     including the lenders involved in each such violation, for 
     the preceding year.
       ``(c) Definition of Gift.--
       ``(1) In general.--In this section, the term `gift' means 
     any gratuity, favor, discount, entertainment, hospitality, 
     loan, or other item having a monetary value of more than $10. 
     The term includes a gift of services, transportation, 
     lodging, or meals, whether provided in kind, by purchase of a 
     ticket, payment in advance, or reimbursement after the 
     expense has been incurred.
       ``(2) Exceptions.--The term `gift' shall not include any of 
     the following:
       ``(A) Standard informational material related to a loan, 
     such as a brochure.
       ``(B) Food, refreshments, training, or informational 
     material furnished to an employee or agent of an institution 
     as an integral part of a training session or through 
     participation in an advisory council that is designed to 
     improve the lender's service to the covered institution, if 
     such training or participation contributes to the 
     professional development of the employee or agent of the 
     institution.
       ``(C) Favorable terms, conditions, and borrower benefits on 
     an educational loan provided to a student employed by the 
     covered institution.

[[Page 2993]]

       ``(3) Rule for gifts to family members.--For purposes of 
     this section, a gift to a family member of an employee or an 
     agent of a covered institution, or a gift to any other 
     individual based on that individual's relationship with the 
     employee or agent, shall be considered a gift to the employee 
     or agent if--
       ``(A) the gift is given with the knowledge and acquiescence 
     of the employee or agent; and
       ``(B) the employee or agent has reason to believe the gift 
     was given because of the official position of the employee or 
     agent.

     ``SEC. 156. COMPLIANCE AND ENFORCEMENT.

       ``(a) Condition of Any Federal Assistance.--Notwithstanding 
     any other provision of law, a covered institution or lender 
     shall comply with this part as a condition of receiving 
     Federal funds or assistance provided after the date of 
     enactment of the Student Loan Sunshine Act.
       ``(b) Penalties.--Notwithstanding any other provision of 
     law, if the Secretary determines, after providing notice and 
     an opportunity for a hearing for a covered institution or 
     lender, that the covered institution or lender has violated 
     subsection (a)--
       ``(1) in the case of a covered institution, or a lender 
     that does not participate in a loan program under title IV, 
     the Secretary may impose a civil penalty in an amount of not 
     more than $25,000; and
       ``(2) in the case of a lender that does participate in a 
     program under title IV, the Secretary may limit, terminate or 
     suspend the lender's participation in such program.
       ``(c) Considerations.--In taking any action against a 
     covered institution or lender under subsection (b), the 
     Secretary shall take into consideration the nature and 
     severity of the violation of subsection (a).

     ``SEC. 157. GAO STUDY AND REPORTS.

       ``(a) Study.--The Comptroller General of the United States 
     shall conduct a study on--
       ``(1) the gifts or financial or other material benefits 
     that are provided by lenders to covered institutions to 
     secure, or as part of an effort to secure, the covered 
     institutions' educational loan business;
       ``(2) the extent to which lenders issuing private 
     educational loans may be inappropriately using inducements to 
     secure, or as part of an effort to secure, educational loan 
     arrangements with covered institutions; and
       ``(3) whether educational loans made to students attending 
     a covered institution in connection with an educational loan 
     arrangement, and private educational loans made directly to 
     students, provide competitive interest rates, terms, and 
     conditions to students who obtain such loans.
       ``(b) Reports.--The Comptroller General of the United 
     States shall--
       ``(1) not later than 1 year after the date of enactment of 
     the Student Loan Sunshine Act, submit to Congress a 
     preliminary report regarding the findings of the study 
     described in subsection (a); and
       ``(2) not later than 2 years after such date of enactment, 
     submit to Congress a final report regarding such findings.''.

     SEC. 3. PROGRAM PARTICIPATION AGREEMENTS.

       Section 487(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1094(a)) is amended by adding at the end the 
     following:
       ``(24)(A) In the case of an institution (including an 
     employee or agent of an institution) that maintains a 
     preferred lender list, in print or any other medium, through 
     which the institution recommends 1 or more specific lenders 
     for loans made under part B to the students attending the 
     institution (or the parents of such students), the 
     institution will--
       ``(i) clearly and fully disclose on the preferred lender 
     list--
       ``(I) why the institution has included each lender as a 
     preferred lender, especially with respect to terms and 
     conditions favorable to the borrower; and
       ``(II) that the students attending the institution (or the 
     parents of such students) do not have to borrow from a lender 
     on the preferred lender list;
       ``(ii) ensure, through the use of the list provided by the 
     Secretary under subparagraph (C), that--
       ``(I) there are not less than 3 lenders named on the 
     preferred lending list that are not affiliates of each other; 
     and
       ``(II) the preferred lender list--

       ``(aa) specifically indicates, for each lender on the list, 
     whether the lender is or is not an affiliate of each other 
     lender on the list; and
       ``(bb) if the lender is an affiliate of another lender on 
     the list, describes the specifics of such affiliation; and

       ``(iii) establish a process to ensure that lenders are 
     placed upon the preferred lender list on the basis of the 
     benefits provided to borrowers, including --
       ``(I) highly competitive interest rates, terms, or 
     conditions for loans made under part B;
       ``(II) high-quality servicing for such loans; or
       ``(III) additional benefits beyond the standard terms and 
     conditions for such loans.
       ``(B) For the purposes of subparagraph (A)(ii)--
       ``(i) the term `affiliate' means a person that controls, is 
     controlled by, or is under common control with another 
     person; and
       ``(ii) a person has control over another person if--
       ``(I) the person directly or indirectly, or acting through 
     1 or more others, owns, controls, or has the power to vote 5 
     percent or more of any class of voting securities of such 
     other person;
       ``(II) the person controls, in any manner, the election of 
     a majority of the directors or trustees of such other person; 
     or
       ``(III) the Secretary determines (after notice and 
     opportunity for a hearing) that the person directly or 
     indirectly exercises a controlling interest over the 
     management or policies of such other person.
       ``(C) The Secretary shall maintain and update a list of 
     lender affiliates of all eligible lenders, and shall provide 
     such list to the eligible institutions for use in carrying 
     out subparagraph (A).''.

     SEC. 4. NOTICE OF AVAILABILITY OF FUNDS FROM FEDERAL SOURCES.

       Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is 
     amended by adding at the end the following:
       ``(e) Disclosures Relating to Private Educational Loans.--
       ``(1) In general.--In the case of an extension of credit 
     that is a private educational loan, other than a residential 
     mortgage transaction, the creditor shall provide in every 
     application for such extensions of credit and together with 
     any solicitation, marketing, or advertisement of such 
     extensions of credit, written, electronic, or otherwise, the 
     disclosures described in paragraph (2).
       ``(2) Disclosures.--Disclosures required by this subsection 
     shall include a clear and prominent statement--
       ``(A) that the borrower may qualify for Federal financial 
     assistance through a program under title IV of the Higher 
     Education Act of 1965, in lieu of or in addition to a loan 
     from a non-Federal source;
       ``(B) of the interest rates available with respect to such 
     Federal financial assistance;
       ``(C) describing how the applicable interest rate is 
     determined, including whether it is based on the credit score 
     of the borrower;
       ``(D) showing sample loan costs, disaggregated by type;
       ``(E) of the types of repayment plans that are available;
       ``(F) of whether, and under what conditions, early 
     repayment may be made without penalty;
       ``(G) of when and how often the loan would be 
     recapitalized;
       ``(H) describing all fees, deferments, or forbearance;
       ``(I) describing all available repayment benefits, and the 
     percentage of all borrowers who qualify for such benefits;
       ``(J) describing collection practices in the case of 
     default;
       ``(K) describing late payment penalties and associated 
     fees;
       ``(L) of any complaints (and their resolution) filed with 
     any State or private consumer protection agency (including 
     the Better Business Bureau); and
       ``(M) such other information as the Board may require.
       ``(3) Provision of information.--Before a creditor may 
     issue any funds with respect to an extension of credit 
     described in paragraph (1) for an amount equal to more than 
     $1,000--
       ``(A) the creditor shall notify the relevant postsecondary 
     educational institution, in writing, of the proposed 
     extension of credit and the amount thereof; and
       ``(B) if such relevant institution is a covered 
     institution, the institution shall, in an expedient manner, 
     notify the prospective borrower, in accordance with 
     procedures established by rule of the Board, whether and to 
     what extent the proposed extension of credit exceeds the cost 
     of attendance (as defined in section 472 of the Higher 
     Education Act of 1965) for the student at that institution, 
     after consideration of the Federal and State grant and loan 
     aid and institutional aid that the student has or is eligible 
     to receive.
       ``(4) Regulatory authority.--The Board--
       ``(A) shall issue such rules and regulations as may be 
     necessary to implement this subsection; and
       ``(B) may, by rule, establish appropriate exceptions to the 
     disclosures required by this subsection.
       ``(5) Definitions.--As used in this subsection, the terms 
     `private educational loan' and `covered institution' have the 
     same meanings as in section 151 of the Higher Education Act 
     of 1965.''.

  Mr. DURBIN. Mr. President, I rise today to urge my colleagues to 
support the Kennedy-Durbin ``Student Loan Sunshine Act.''
  There is no question that having a college education is essential in 
today's job market. Over the course of a lifetime, a college graduate 
will earn over $1 million more than those with only a high school 
diploma.
  In addition to the individual benefits of a college education, 
investing in and producing more college-educated Americans is vital to 
our nation's growth. Economists estimate that the increase in the 
education level of the United States labor force between 1915 and 1999 
directly resulted in at least 23 percent of the overall growth in U.S. 
productivity.
  However, paying for college is becoming increasingly difficult for 
students

[[Page 2994]]

and their families. Tuition at four-year public institutions rose by 42 
percent in the last five years, and more and more students are leaving 
college saddled with ever increasing debt burdens. According to the 
U.S. Department of Education, the average student debt has increased by 
more than 50 percent over the last decade. In 2004, college students 
graduated with an average of $17,400 in federal student loan debt, 
almost 45 percent more than students who graduated in 1993. When 
private loans are factored in, the average debt increases to more than 
$19,000.
  As students and their families struggle to find ways to pay for 
higher education, more and more are forced to turn to private student 
loans in order to close the gap. Because these loans are not guaranteed 
or subsidized by the government, they often carry much higher interest 
rates.
  According to The College Board, private student loans are now a $17.3 
billion industry. Between the 2000-2001 and 2005-2006 school years, 
private student loans grew at an average annual rate of 27 percent, 
after adjusting for inflation.
  As more students begin to rely on private student loans to help pay 
for college, some lenders and colleges are engaging in practices that 
do not appear to be in the best interests of the students. An article 
published in The New York Times revealed examples of incentives offered 
to colleges by student loan companies in order to be placed on a 
college's ``preferred lender'' list.
  An example cited in the article included an all-expense paid trip to 
the Caribbean for university officials and their spouses to attend an 
education ``summit'' held at a luxury five-star beachfront resort. 
Between symposiums, forums and roundtable discussions on the importance 
of addressing the cost of higher education, guests could enjoy 
complimentary water and beach sports such as snorkeling, sailing, 
kayaking, sailboarding and volleyball as well as access to an 18-hole 
championship golf course, a 10-court tennis complex, two beachfront 
pools and a luxury spa. News of the trip garnered such a negative 
response from the public that the sponsor of the trip, Loan to Learn, 
ultimately cancelled the trip. Aside from all-expense paid trips, other 
examples of incentives include iPods that were given away at a 
financial aid administrators meeting and bonuses that are based on how 
much students borrow.
  Colleges and universities should not be enticed to select ``preferred 
lenders'' or take other actions related to the student loan program on 
the basis of factors that are irrelevant, or at best ancillary, to the 
primary interests of the students.
  The Student Loan Sunshine Act protects students and parents from 
potential exploitation by private student loan lenders and lenders that 
offer gifts to schools as a way to acquire the school's loan business. 
It ensures that students and their families have all the facts and can 
feel confident that they're receiving the best deal on their college 
loan.
  First, this bill puts a stop to inappropriate lender practices. 
Lenders are prohibited from offering any gift over $10 to employees of 
a university, including free trips, meals, and tickets to entertainment 
events. Lenders are no longer allowed to offer services to a financial 
aid office that create a conflict of interest such as lending staff 
during peak loan processing times, printing literature for the 
financial aid office and e-mailing students on behalf of the financial 
aid office.
  Second, the Act provides students and their families access to 
information about preferred lender lists, special arrangements between 
lenders and colleges and terms and conditions of loans. A school's 
preferred lender list must include at least three lenders that are 
independent from each other, clearly disclose why a lender was 
identified as a preferred lender, and clearly state that students and 
parents may take out a student loan with a lender that is not on their 
school's preferred lender list. This requirement is needed because in 
some instances, a school's preferred lender list may include what 
appear to be five different lenders; however, four of the five lenders 
may turn out to be subsidiaries of a single company. Lenders are 
required to report to the Secretary of Education any special 
arrangement they have with colleges to make loans to the students at a 
school including the terms of the arrangement and any benefit provided 
to the school in connection with the loan arrangement. In addition, the 
Act requires the Secretary of Education, along with the higher 
education community and students, to develop an easy-to-understand form 
for reporting the terms and conditions of student loans--similar to an 
APR disclosure.
  Finally, the Act encourages students to maximize their borrowing 
options through the government's loan programs before obtaining private 
loans with higher interest rates and discourages over-borrowing through 
direct-to-consumer education loans. Some companies fail to clearly 
disclose that their private educational loans typically carry a higher 
interest rate and even encourage students not to complete the Free 
Application for Federal Student Aid form, which allows students to 
borrow low-interest educational loans. The Act requires all direct-to-
consumer lenders to clearly disclose to students certain information 
such as: the fact that the student may be eligible for low-interest 
student loans through the federal government, how the interest rate is 
determined, any and all fees, and whether any complaints have been 
filed against the lender. Additionally, the Act puts in place 
provisions that will ensure that before a student obtains an 
educational loan through a direct-to-consumer lender, the student is 
informed of their loan options through the federal government and 
whether the loan will cause the student to exceed what is necessary to 
cover the student's cost of attendance.
  These requirements are simply meant to ensure that as students are 
about to sign on the dotted line and accept what will likely be one of 
the largest debts they will incur in their lives, they have the 
information they need to make an informed decision and some assurance 
that their school has only their best interests in mind--not visions of 
the Caribbean or the latest iPod. We must not look away and allow them 
to be taken advantage of at one of the most critical points in their 
lives. I urge my colleagues to support this important legislation.

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