[Congressional Record (Bound Edition), Volume 153 (2007), Part 22]
[Senate]
[Pages 30303-30307]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. LEAHY (for himself and Mr. Cornyn):
  S. 2317. A bill to amend titles 17 and 18, United States Code, and 
the Trademark Act of 1946 to strengthen and harmonize the protection of 
intellectual property, and for other purposes; to the Committee on the 
Judiciary.
  Mr. LEAHY. Mr. President, I am pleased to introduce the Intellectual 
Property Enforcement Act of 2007. Congress is charged ``to promote the 
progress of science and useful arts,'' and part of promotion is 
protection. This legislation will enhance existing intellectual 
property enforcement laws, provide more resources to combat 
infringement, and harmonize copyright and trademark laws. I thank 
Senator Cornyn for joining me in this effort, which is a high priority 
of mine, and also of the creative communities and industries across the 
country.
  Each year, counterfeiting and copyright infringement cost the U.S. 
economy billions of dollars. The International Anti-Counterfeiting 
Coalition estimates that counterfeiting and piracy cost American 
businesses $250 billion a year, and hundreds of thousands of jobs as 
well. Clearly, IP theft is big business, and that can devastate small 
businesses. No one knows this better than Vermont companies such as 
Hubbardton Forge, Vermont Teddy Bear Company, and Burton Snowboards. 
Each of these companies, and many others like them across the Nation 
invests time, money, and effort in the development of new products. 
When their products are infringed, it devalues the product and 
threatens the company.
  Senator Cornyn and I have heard from a myriad of interested parties 
about the importance of protecting intellectual property, and have seen 
many enforcement proposals. The legislation we introduce today will 
serve as the core of our legislative effort this year. It will start 
the process of considering how to ensure that our enforcement laws are 
up to the task, and that the necessary resources are in place to 
enforce them. Other Senators have introduced legislation to address 
these issues, and the Department of Justice and others have suggested 
legislative language. These are all helpful to the debate, and I expect 
there will be more to come. Introduction of the Intellectual Property 
Enforcement Act of 2007 is the beginning of this important effort.
  The centerpiece of the bill we introduce today gives the Department 
of Justice the ability to bring civil actions against copyright 
infringers. Punishment should fit the crime, and a civil action is 
often more appropriate to the wrong being done in such cases than is 
criminal prosecution. This concept has passed the Senate on three 
separate occasions, as the PIRATE Act. Next, this bill adds resources 
for agents to combat infringement. It does not matter how strong our 
laws are, if there are not enough agents, or if our agents do not have 
the proper expertise to investigate and prosecute crimes, piracy will 
flourish and harm our economy. Third, this bill allows for ``harmless 
errors'' on copyright registration forms. Copyright registration should 
not be voided by innocently checking the wrong box or misspelling a 
word on a form. Finally, this bill harmonizes the forfeiture provisions 
in the copyright and trademark statutes.
  By enacting well-balanced enforcement laws, we can protect both the 
creators and the consumers of intellectual property. It is impossible 
to put a price tag on creativity, but we must do all we can to protect 
the fruits of creative labor.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2317

       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 ``Intellectual Property 
     Enforcement Act of 2007''.

[[Page 30304]]



     SEC. 2. AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT BY 
                   ATTORNEY GENERAL.

       (a) In General.--Chapter 5 of title 17, United States Code, 
     is amended by inserting after section 506 the following:

     ``Sec. 506a. Civil penalties for violations of section 506

       ``(a) In General.--In lieu of a criminal action under 
     section 506, the Attorney General may commence a civil action 
     in the appropriate United States district court against any 
     person who engages in conduct constituting an offense under 
     section 506. Upon proof of such conduct by a preponderance of 
     the evidence, such person shall be subject to a civil penalty 
     under section 504 which shall be in an amount equal to the 
     amount which would be awarded under section 3663(a)(1)(B) of 
     title 18 and restitution to the copyright owner aggrieved by 
     the conduct.
       ``(b) Other Remedies.--
       ``(1) In general.--Imposition of a civil penalty under this 
     section does not preclude any other criminal or civil 
     statutory, injunctive, common law, or administrative remedy, 
     which is available by law to the United States or any other 
     person.
       ``(2) Offset.--Any restitution received by a copyright 
     owner as a result of a civil action brought under this 
     section shall be offset against any award of damages in a 
     subsequent copyright infringement civil action by that 
     copyright owner for the conduct that gave rise to the civil 
     action brought under this section.''.
       (b) Damages and Profits.--Section 504 of title 17, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in the first sentence--
       (i) by inserting ``, or the Attorney General in a civil 
     action,'' after ``The copyright owner''; and
       (ii) by striking ``him or her'' and inserting ``the 
     copyright owner''; and
       (B) in the second sentence by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (B) in paragraph (2), by inserting ``, or the Attotrney 
     General in a civil action,'' after ``the copyright owner''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by inserting after the item relating to section 506 
     the following:

``506a. Civil penalties for violation of section 506.''.

     SEC. 3. IMPROVED INVESTIGATIVE AND FORENSIC RESOURCES FOR 
                   ENFORCEMENT OF LAWS RELATED TO INTELLECTUAL 
                   PROPERTY CRIMES.

       (a) In General.--The Attorney General, in consultation with 
     the Director of the Federal Bureau of Investigation, shall, 
     with respect to crimes related to the theft of intellectual 
     property--
       (1) create an operational unit of the Federal Bureau of 
     Investigation--
       (A) to work with the Computer Crime and Intellectual 
     Property section of the Department of Justice on the 
     investigation and coordination of intellectual property 
     crimes that are complex, committed in more than 1 judicial 
     district, or international;
       (B) that consists of at least 10 agents of the Bureau; and
       (C) that is located at the headquarters of the Bureau;
       (2) ensure that any unit in the Department of Justice 
     responsible for investigating computer hacking or 
     intellectual property crimes is assigned at least 2 agents of 
     the Federal Bureau of Investigation (in addition to any agent 
     assigned to such unit as of the date of the enactment of this 
     Act) to support such unit for the purpose of investigating or 
     prosecuting intellectual property crimes; and
       (3) implement a comprehensive program--
       (A) the purpose of which is to train agents of the Federal 
     Bureau of Investigation in the investigation and prosecution 
     of such crimes and the enforcement of laws related to 
     intellectual property crimes;
       (B) that includes relevant forensic training related to 
     investigating and prosecuting intellectual property crimes; 
     and
       (C) that requires such agents who investigate or prosecute 
     intellectual property crimes to attend the program annually.
       (b) Intellectual Property Law Enforcement Coordinators.--
     Not later than 120 days after the date of the enactment of 
     this Act, the Attorney General shall assign 1 Federal 
     prosecutor to the appropriate office of the Department of 
     Justice located in Hong Kong and 1 Federal prosecutor to such 
     an office located in Budapest, Hungary, to assist in the 
     coordination of the enforcement of intellectual property laws 
     between the United States and foreign nations.
       (c) Organized Crime Task Force.--Not later than 120 days 
     after the date of the enactment of this Act, the Attorney 
     General, through the United States Attorneys' Offices, the 
     Computer Crime and Intellectual Property section, and the 
     Organized Crime and Racketeering section of the Department of 
     Justice, and in consultation with the Federal Bureau of 
     Investigation and other Federal law enforcement agencies, 
     shall create a Task Force to develop and implement a 
     comprehensive, long-range plan to investigate and prosecute 
     international organized crime syndicates engaging in or 
     supporting crimes relating to the theft of intellectual 
     property.
       (d) Authorization.--There are authorized to be appropriated 
     to carry out this section $12,000,000 for each of fiscal 
     years 2008 through 2011.

     SEC. 4. ADDITIONAL FUNDING FOR RESOURCES TO INVESTIGATE AND 
                   PROSECUTE CRIMINAL ACTIVITY INVOLVING 
                   COMPUTERS.

       (a) Additional Funding for Resources.--
       (1) Authorization.--In addition to amounts otherwise 
     authorized for resources to investigate and prosecute 
     criminal activity involving computers, there are authorized 
     to be appropriated for each of the fiscal years 2008 through 
     2011--
       (A) $10,000,000 to the Director of the Federal Bureau of 
     Investigation; and
       (B) $10,000,000 to the Attorney General for the Criminal 
     Division of the Department of Justice.
       (2) Availability.--Any amounts appropriated under paragraph 
     (1) shall remain available until expended.
       (b) Use of Additional Funding.--Funds made available under 
     subsection (a) shall be used by the Director of the Federal 
     Bureau of Investigation and the Attorney General, for the 
     Federal Bureau of Investigation and the Criminal Division of 
     the Department of Justice, respectively, to--
       (1) hire and train law enforcement officers to--
       (A) investigate crimes committed through the use of 
     computers and other information technology, including through 
     the use of the Internet; and
       (B) assist in the prosecution of such crimes; and
       (2) procure advanced tools of forensic science to 
     investigate, prosecute, and study such crimes.

     SEC. 5. REGISTRATION IN CIVIL INFRINGEMENT ACTIONS.

       (a) Limitation to Civil Actions; Harmless Error.--Section 
     411 of title 17, United States Code, is amended--
       (1) in the section heading, by inserting ``civil'' before 
     ``infringement'';
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``no action'' and 
     inserting ``no civil action''; and
       (B) in the second sentence, by striking ``an action'' and 
     inserting ``a civil action'';
       (3) in subsection (b)--
       (A) by redesignating that subsection as subsection (c); and
       (B) by striking ``506 and sections 509 and'' and inserting 
     ``505 and section''; and
       (4) by inserting after subsection (a) the following:
       ``(b)(1) A certificate of registration satisfies the 
     requirements of this section and section 412, regardless of 
     whether the certificate contains any inaccurate information, 
     unless--
       ``(A) the inaccurate information was included on the 
     application for copyright registration with knowledge that it 
     was inaccurate; and
       ``(B) the inaccurate information, if known, would have 
     caused the Register of Copyrights to refuse registration.
       ``(2) In any case in which inaccurate information described 
     under paragraph (1) is alleged, the court shall request the 
     Register of Copyrights to advise the court whether the 
     inaccurate information, if known, would have caused the 
     Register of Copyrights to refuse registration.'';''.
       (b) Technical and Conforming Amendments.--
       (1) Section 412 of title 17, United States Code, is amended 
     by striking ``411(b)'' and inserting ``411(c)''.
       (2) The item relating to section 411 in the table of 
     sections for chapter 4 of title 17, United States Code, is 
     amended to read as follows:

``411. Registration and civil infringement actions.''.

     SEC. 6. CIVIL REMEDIES FOR INFRINGEMENT.

       (a) In General.--Section 503(a) of title 17, United States 
     Code, is amended--
       (1) by striking ``and of all plates'' and inserting ``, of 
     all plates''; and
       (2) by striking the period and inserting ``, and of records 
     documenting the manufacture, sale, or receipt of things 
     involved in such violation. The court shall enter an 
     appropriate protective order with respect to discovery of any 
     records that have been seized. The protective order shall 
     provide for appropriate procedures to assure that 
     confidential information contained in such records is not 
     improperly disclosed to any party.''.
       (b) Protective Orders for Seized Records.--Section 
     34(d)(1)(A) of the Act entitled ``An Act to provide for the 
     registration and protection of trademarks used in commerce, 
     to carry out the provisions of certain international 
     conventions, and for other purposes.'', approved July 5, 1946 
     (commonly referred to as the Trademark Act of 1946) (15 
     U.S.C. 1116(d)(1)(A)) is amended by adding ``The court shall 
     enter an appropriate protective order with respect to 
     discovery of any records that have been seized. The 
     protective order shall provide for appropriate procedures to 
     assure that confidential information contained in such 
     records is not improperly disclosed to any party.'' after the 
     first sentence.

[[Page 30305]]



     SEC. 7. CRIMINAL INFRINGEMENT.

       (a) Forfeiture and Destruction; Restitution.--Section 
     506(b) of title 17, United States Code, is amended to read as 
     follows:
       ``(b) Forfeiture, Destruction, and Restitution.--
     Forfeiture, destruction, and restitution relating to this 
     section shall be subject to section 2323 of title 18, to the 
     extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (b) Seizures and Forfeitures.--
       (1) Repeal.--Section 509 of title 17, United States Code, 
     is repealed.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by striking the item relating to section 509.

     SEC. 8. IMPORTATION AND EXPORTATION.

       (a) Importation and Exportation of Infringing Items.--
     Section 602(a) of title 17, United States Code, is amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C);
       (2) in the first sentence, by striking ``Importation'' and 
     inserting ``(1) Importation'';
       (3) by striking ``106, actionable'' and inserting ``106 and 
     is actionable'';
       (4) by striking ``This subsection does not apply to--'' and 
     inserting the following:
       ``(2) Importation into the United States or exportation 
     from the United States, without the authority of the owner of 
     copyright under this title, of copies or phonorecords, the 
     making of which either constituted an infringement of 
     copyright or would have constituted an infringement of 
     copyright if this title had been applicable, is an 
     infringement of the exclusive right to distribute copies or 
     phonorecords under section 106 and is actionable under 
     sections 501 and 506.
       ``(3) This subsection does not apply to--'';
       (5) in subparagraph (A), as redesignated, by inserting ``or 
     exportation'' after ``importation'';
       (6) in subparagraph (B), as redesignated--
       (A) by striking ``, for the private use of the importer'' 
     and inserting ``or exportation, for the private use of the 
     importer or exporter''; and
       (B) by inserting ``or departing from the United States'' 
     after ``outside the United States''.
       (b) Technical and Conforming Amendments.--(1) The section 
     heading for section 602 of title 17, United States Code, is 
     amended by inserting ``or exportation'' after 
     ``importation''.
       (2) The table of sections for chapter 6 of title 17, United 
     States Code, is amended by inserting ``or exportation'' after 
     ``importation''.
       (3) The heading for chapter 6 of title 17, United States 
     Code, is amended to read as follows:

       ``CHAPTER 6--MANUFACTURING REQUIREMENTS, IMPORTATION, AND 
                             EXPORTATION''.

       (4) The item relating to chapter 6 in the table of chapters 
     for title 17, United States Code, is amended to read as 
     follows:

``6.  Manufacturing Requirements, Importation, and Exportatio601''.....

     SEC. 9. DEFINING TERMS RELATING TO CIRCUMVENTION OF COPYRIGHT 
                   PROTECTION SYSTEMS.

       Section 1201 of title 17, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``import,''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period and 
     inserting ``; and'';
       (iii) by redesignating subparagraph (B) as subparagraph 
     (C), and inserting after subparagraph (A) the following:
       ``(B) the term `financial gain' includes receipt, or 
     expectation of receipt, of anything of value, including the 
     receipt of other copyrighted works;''; and
       (iv) by adding at the end the following:
       ``(C) the term `traffic in' means to transport, transfer, 
     or otherwise dispose of, to another, for purposes of 
     commercial advantage or private financial gain, or to make, 
     import, export, obtain control of, or possess, with intent to 
     so transport, transfer, or otherwise dispose of.''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``import,''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period and 
     inserting ``; and'';
       (iii) by redesignating subparagraph (B) as subparagraph 
     (C), and inserting after subparagraph (A) the following:
       ``(B) the term `financial gain' includes receipt, or 
     expectation of receipt, of anything of value, including the 
     receipt of other copyrighted works;''; and
       (iv) by adding at the end the following:
       ``(D) the term `traffic in' means to transport, transfer, 
     or otherwise dispose of, to another, or to make, import, 
     export, obtain control of, or possess, with intent to so 
     transport, transfer, or otherwise dispose of.''.

     SEC. 10. FORFEITURE UNDER ECONOMIC ESPIONAGE ACT.

       Section 1834 of title 18, United States Code, is amended to 
     read as follows:

     ``Sec. 1834. Criminal forfeiture

       ``Forfeiture, destruction, and restitution relating to this 
     chapter shall be subject to section 2323, to the extent 
     provided in that section, in addition to any other similar 
     remedies provided by law.''.

     SEC. 11. TRAFFICKING IN COUNTERFEIT LABELS, ILLICIT LABELS, 
                   OR COUNTERFEIT DOCUMENTATION OR PACKAGING FOR 
                   WORKS THAT CAN BE COPYRIGHTED.

       Section 2318 of title 18, United States Code, is amended as 
     follows:
       (1) Subsection (a) is amended----
       (A) by redesignating subparagraphs (A) through (G) as 
     clauses (i) through (vii), respectively;
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (C) by striking ``Whoever'' and inserting ``(1) Whoever''.
       (2) Section 2318(d) is amended to read as follows:
       ``(d) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (3) Section 2318 is further amended by striking subsection 
     (e) and redesignating subsection (f) as subsection (e).

     SEC. 12. UNAUTHORIZED RECORDING OF MOTION PICTURES.

       Section 2319B(b) of title 18, United States Code, is 
     amended to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 13. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.

       Section 2320(b) of title 18, United States Code, is amended 
     to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 14. FORFEITURE, DESTRUCTION, AND RESTITUTION.

       (a) In General.--Chapter 113 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 2323. Forfeiture, destruction, and restitution

       ``(a) Civil Forfeiture.--
       ``(1) Property subject to forfeiture.--The following 
     property is subject to forfeiture to the United States:
       ``(A) Any article the making or trafficking of which is 
     prohibited under section 506 or 1204 of title 17, or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title.
       ``(B) Any property used, or intended to be used, in any 
     manner or part to commit or facilitate the commission of an 
     offense referred to in subparagraph (A).
       ``(C) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of the 
     commission of an offense referred to in subparagraph (A).
       ``(2) Procedures.--The provisions of chapter 46 relating to 
     civil forfeitures shall extend to any seizure or civil 
     forfeiture under this section. At the conclusion of the 
     forfeiture proceedings, unless otherwise requested by an 
     agency of the United States, the court shall order that any 
     property forfeited under paragraph (1) be destroyed, or 
     otherwise disposed of according to law.
       ``(b) Criminal Forfeiture.--
       ``(1) Property subject to forfeiture.--The court, in 
     imposing sentence on a person convicted of an offense under 
     section 506 or 1204 of title 17, or section 2318, 2319, 
     2319A, 2319B, or 2320, or chapter 90, of this title, shall 
     order, in addition to any other sentence imposed, that the 
     person forfeit to the United States any property subject to 
     forfeiture under subsection (a) for that offense.
       ``(2) Procedures.--
       ``(A) In general.--The forfeiture of property under 
     paragraph (1), including any seizure and disposition of the 
     property and any related judicial or administrative 
     proceeding, shall be governed by the procedures set forth in 
     section 413 of the Comprehensive Drug Abuse Prevention and 
     Control Act of 1970 (21 U.S.C. 853), other than subsection 
     (d) of that section.
       ``(B) Destruction.--At the conclusion of the forfeiture 
     proceedings, the court, unless otherwise requested by an 
     agency of the United States--
       ``(i) shall order that any forfeited article or component 
     of an article bearing or consisting of a counterfeit mark be 
     destroyed or otherwise disposed of according to law; and
       ``(ii) shall order that any infringing items or other 
     property described in subsection (a)(1)(A) and forfeited 
     under paragraph (1) of this subsection be destroyed or 
     otherwise disposed of according to law.
       ``(c) Restitution.--When a person is convicted of an 
     offense under section 506 or 1204 of title 17 or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title, the court, pursuant to sections 3556, 3663A, and 3664 
     of

[[Page 30306]]

     this title, shall order the person to pay restitution to any 
     victim of the offense as an offense against property referred 
     to in section 3663A(c)(1)(A)(ii) of this title.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 113 of title 18, United States Code, is 
     amended by adding at the end the following:

``2323. Forfeiture, destruction, and restitution.''.

     SEC. 15. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Amendments to Title 17, United States Code.--
       (1) Section 109 (b)(4) of title 17, United States Code, is 
     amended by striking ``505, and 509'' and inserting ``and 
     505''.
       (2) Section 111 of title 17, United States Code, is 
     amended--
       (A) in subsection (b), by striking ``and 509'';
       (B) in subsection (c)--
       (i) in paragraph (2), by striking ``and 509'';
       (ii) in paragraph (3), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (iii) in paragraph (4), by striking ``and section 509''; 
     and
       (C) in subsection (e)--
       (i) in paragraph (1), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (ii) in paragraph (2), by striking ``and 509''.
       (3) Section 115(c) of title 17, United States Code, is 
     amended--
       (A) in paragraph (3)(G)(i), by striking ``and 509''; and
       (B) in paragraph (6), by striking ``and 509''.
       (4) Section 119(a) of title 17, United States Code, is 
     amended--
       (A) in paragraph (6), by striking ``sections 509 and 510'' 
     and inserting ``section 510'';
       (B) in paragraph (7)(A), by striking ``and 509'';
       (C) in paragraph (8), by striking ``and 509''; and
       (D) in paragraph (13), by striking ``and 509''.
       (5) Section 122 of title 17, United States Code, is 
     amended--
       (A) in subsection (d), by striking ``and 509'';
       (B) in subsection (e), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (C) in subsection (f)(1), by striking ``and 509''.
       (6) Section 411(b) of title 17, United States Code, is 
     amended by striking ``sections 509 and 510'' and inserting 
     ``section 510''.
       (b) Other Amendments.--Section 596(c)(2)(c) of the Tariff 
     Act of 1950 (19 U.S.C. 1595a(c)(2)(c)) is amended by striking 
     ``or 509''.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Cochran):
  S. 2320. A bill to amend title XVIII of the Social Security Act to 
provide continued entitlement to coverage for immunosuppressive drugs 
furnished to beneficiaries under the Medicare Program that have 
received a kidney transplant and whose entitlement to coverage would 
otherwise expire, and for other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, Organ transplantation is one of the most 
remarkable success stories in the history of medicine. No longer is it 
considered experimental. Today, transplants are accepted as the best 
treatment for certain diseases, including end-stage renal disease. 
Approximately 28,000 organ transplants were performed last year in the 
U.S. The vast majority of transplants are provided to patients in need 
of a kidney.
  Our Medicare system provides health care to millions of aged and 
disabled Americans, as well as those living with ESRD, each year. 
Thousands of Americans receive a Medicare-covered kidney transplant 
each year through the Medicare ESRD Program, which also covers 
dialysis, immunosuppressive drugs, and other medically important 
services.
  Unfortunately, there are long waiting lists for people who need an 
organ. Today there are over 98,000 individuals waiting for a 
transplant. For those lucky enough to receive one, the next challenge 
is to obtain coverage for immunosuppressive drugs--medications that 
organ transplant recipients must take every day for the life of their 
transplant to reduce the risk of organ rejection.
  In 2000, Congress wisely eliminated the 36-month time limitation for 
Medicare-aged and Medicare-disabled beneficiaries who had Medicare 
status at the time of transplant. Today, for an older or disabled 
person on Medicare, coverage for immunosuppressive drugs is covered for 
the life of the transplant.
  However, we still have an unfair and unrealistic gap in coverage for 
people with ESRD who are neither disabled nor elderly. For those 
transplant recipients, coverage for immunosuppressive drugs ends 36 
months after transplantation. For example, Medicare would pay for a 26-
year-old woman living with ESRD to have lifelong dialysis at $50,000 
per year. Medicare would cover the cost of a transplant for her at 
$100,000 per transplant operation. But, the immunosuppressive drugs she 
would need to ensure the organ is not rejected by her body are only 
covered by Medicare for 36 months, even though the drugs cost the 
Government only $15,000 per year.
  This is economically inefficient and morally wrong. Without regular 
access to immunosuppressive drugs to prevent rejection, many patients 
find themselves back in a risky and frightening place--in need of a new 
kidney. This senseless cycle of care costs taxpayers a lot of money and 
puts thousands of lives on the line.
  I am pleased to introduce today, along with my colleague from 
Mississippi, Senator Thad Cochran, the Comprehensive Immunosuppressive 
Drug Coverage for Transplant Patients Act. This legislation would 
alleviate the disparity between coverage for immunosuppressive drugs 
among Medicare beneficiaries. It is time to provide lifetime coverage 
for immunosuppressive drugs through Medicare. We will reduce the need 
for dialysis and kidney re-transplants and provide reliable, sustained 
access to critically important, lifesaving medications for thousands of 
Americans. In the long run, we will save money and lives.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 2320

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Comprehensive 
     Immunosuppressive Drug Coverage for Kidney Transplant 
     Patients Act of 2007''.

     SEC. 2. PROVISION OF APPROPRIATE COVERAGE OF 
                   IMMUNOSUPPRESSIVE DRUGS UNDER THE MEDICARE 
                   PROGRAM FOR KIDNEY TRANSPLANT RECIPIENTS.

       (a) Continued Entitlement to Immunosuppressive Drugs.--
       (1) Kidney transplant recipients.--Section 226A(b)(2) of 
     the Social Security Act (42 U.S.C. 426-1(b)(2)) is amended by 
     inserting ``(except for coverage of immunosuppressive drugs 
     under section 1861(s)(2)(J))'' after ``shall end''.
       (2) Application.--Section 1836 of the Social Security Act 
     (42 U.S.C. 1395o) is amended--
       (A) by striking ``Every individual who'' and inserting 
     ``(a) In General.--Every individual who''; and
       (B) by adding at the end the following new subsection:
       ``(b) Special Rules Applicable to Individuals Only Eligible 
     for Coverage of Immunosuppressive Drugs.--
       ``(1) In general.--In the case of an individual whose 
     eligibility for benefits under this title has ended except 
     for the coverage of immunosuppressive drugs by reason of 
     section 226A(b)(2), the following rules shall apply:
       ``(A) The individual shall be deemed to be enrolled under 
     this part for purposes of receiving coverage of such drugs.
       ``(B) The individual shall be responsible for the full 
     amount of the premium under section 1839 in order to receive 
     such coverage.
       ``(C) The provision of such drugs shall be subject to the 
     application of--
       ``(i) the deductible under section 1833(b); and
       ``(ii) the coinsurance amount applicable for such drugs (as 
     determined under this part).
       ``(D) If the individual is an inpatient of a hospital or 
     other entity, the individual is entitled to receive coverage 
     of such drugs under this part.
       ``(2) Establishment of procedures in order to implement 
     coverage.--The Secretary shall establish procedures for--
       ``(A) identifying beneficiaries that are entitled to 
     coverage of immunosuppressive drugs by reason of section 
     226A(b)(2); and
       ``(B) distinguishing such beneficiaries from beneficiaries 
     that are enrolled under this part for the complete package of 
     benefits under this part.''.
       (3) Technical amendment.--Subsection (c) of section 226A of 
     the Social Security Act (42 U.S.C. 426-1), as added by 
     section 201(a)(3)(D)(ii) of the Social Security Independence 
     and Program Improvements Act of 1994 (Public Law 103-296; 108 
     Stat. 1497), is redesignated as subsection (d).
       (b) Extension of Secondary Payer Requirements for ESRD 
     Beneficiaries.--Section 1862(b)(1)(C) of the Social Security 
     Act (42 U.S.C. 1395y(b)(1)(C)) is amended by adding at the 
     end the following new sentence: ``With regard to 
     immunosuppressive drugs furnished on or after the date of 
     enactment

[[Page 30307]]

     of the Comprehensive Immunosuppressive Drug Coverage for 
     Kidney Transplant Patients Act of 2007, this subparagraph 
     shall be applied without regard to any time limitation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to drugs furnished on or after the date of 
     enactment of this Act.

     SEC. 3. PLANS REQUIRED TO MAINTAIN COVERAGE OF 
                   IMMUNOSUPPRESSIVE DRUGS FOR KIDNEY TRANSPLANT 
                   RECIPIENTS.

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

     ``SEC. 2707. COVERAGE OF IMMUNOSUPPRESSIVE DRUGS FOR KIDNEY 
                   TRANSPLANT RECIPIENTS.

       ``A group health plan (and a health insurance issuer 
     offering health insurance coverage in connection with a group 
     health plan) shall provide coverage of immunosuppressive 
     drugs in connection with a kidney transplant that is at least 
     as comprehensive as the coverage provided by such plan or 
     issuer on the day before the date of enactment of the 
     Comprehensive Immunosuppressive Drug Coverage for Kidney 
     Transplant Patients Act of 2007, and such requirement shall 
     be deemed to be incorporated into this section.''.
       (2) Conforming amendment.--Section 2721(b)(2)(A) of the 
     Public Health Service Act (42 U.S.C. 300gg-21(b)(2)(A)) is 
     amended by inserting ``(other than section 2707)'' after 
     ``requirements of such subparts''.
       (b) Application to Group Health Plans and Group Health 
     Insurance Coverage Under the Employee Retirement Income 
     Security Act of 1974.--
       (1) In general.--Subpart B of part 7 of subtitle B of title 
     I of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1185 et seq.) is amended by adding at the end the 
     following new section:

     ``SEC. 714. COVERAGE OF IMMUNOSUPPRESSIVE DRUGS FOR KIDNEY 
                   TRANSPLANT RECIPIENTS.

       ``A group health plan (and a health insurance issuer 
     offering health insurance coverage in connection with a group 
     health plan) shall provide coverage of immunosuppressive 
     drugs in connection with a kidney transplant that is at least 
     as comprehensive as the coverage provided by such plan or 
     issuer on the day before the date of enactment of the 
     Comprehensive Immunosuppressive Drug Coverage for Kidney 
     Transplant Patients Act of 2007, and such requirement shall 
     be deemed to be incorporated into this section.''.
       (2) Conforming amendments.--
       (A) Section 732(a) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1191(a)) is amended by 
     striking ``section 711'' and inserting ``sections 711 and 
     714''.
       (B) The table of contents in section 1 of the Employee 
     Retirement Income Security Act of 1974 is amended by 
     inserting after the item relating to section 713 the 
     following new item:

``Sec. 714. Coverage of immunosuppressive drugs.''.

       (c) Application to Group Health Plans Under the Internal 
     Revenue Code of 1986.--Subchapter B of chapter 100 of the 
     Internal Revenue Code of 1986 is amended--
       (1) in the table of sections, by inserting after the item 
     relating to section 9812 the following new item:

``Sec. 9813. Coverage of immunosuppressive drugs for kidney transplant 
              recipients.'';

     and
       (2) by inserting after section 9812 the following:

     ``SEC. 9813. COVERAGE OF IMMUNOSUPPRESSIVE DRUGS FOR KIDNEY 
                   TRANSPLANT RECIPIENTS.

       ``A group health plan shall provide coverage of 
     immunosuppressive drugs in connection with a kidney 
     transplant that is at least as comprehensive as the coverage 
     provided by such plan on the day before the date of enactment 
     of the Comprehensive Immunosuppressive Drug Coverage for 
     Kidney Transplant Patients Act of 2007, and such requirement 
     shall be deemed to be incorporated into this section.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning on or after January 1, 
     2008.
                                 ______
                                 
      By Mr. CARDIN:
  S. 2322. A bill to amend the International Center Act to authorize 
the lease or sublease of certain property described in such Act to an 
entity other than a foreign government or international organization if 
certain conditions are met; to the Committee on Foreign Relations.
  Mr. CARDIN. Mr. President, today I am introducing a bill to amend the 
International Center Act to make it clear that Intelsat can continue to 
lease the land on which its headquarters building is located.
  Congress created Intelsat when it passed the Communications Satellite 
Act in the 1960s, intending it to be an international organization 
charged with establishing the world's first global satellite system. In 
2000, Congress passed the ORBIT Act, which essentially mandated that 
Intelsat become a private company. The purpose of the ORBIT Act was to 
promote a fully competitive global market for satellite communication 
services for the benefit of consumers. Congress inadvertently 
overlooked some important changes that were required to complete this 
transformation and, as a result, had to make technical changes to 
correct these oversights.
  One technical correction still needs to be made, however: the 
International Center Act, ICA, must be amended to ensure that 
Intelsat's lease of the land on which its headquarters is located 
comports with the law. The U.S. Government owns this land. The State 
Department and Intelsat entered into a long-term lease for the land on 
which Intelsat built its headquarters many years ago. Intelsat 
constructed and fully owns the building. The lease was originally 
entered into pursuant to the ICA and has been amended several times 
over the years, most recently in 2006. The ICA, however, limits leases 
of this property to foreign governments and international 
organizations. At the time Intelsat leased the property and built its 
headquarters building, it was an international organization.
  When Congress mandated in the ORBIT Act that Intelsat privatize, it 
created a problem regarding Intelsat's land lease. Once Intelsat was no 
longer an international organization, it technically no longer 
satisfied the requirements of the ICA. In other words, Congress' action 
requiring Intelsat to privatize has left the company's right to 
continue to lease the land in question. But it was never the intent of 
the ORBIT Act to create this uncertainty with respect to the legality 
of Intelsat's land lease.
  The bill I am introducing amends the ICA to eliminate this 
uncertainty that the ORBIT Act created regarding the lease. It is 
necessary to ensure that the now privatized Intelsat can continue to 
lease the land. My bill would in no way alter the rights or obligations 
of the parties or any of the lease terms or conditions. It in no way 
expands any of Intelsat's rights under the existing lease. Nor does it 
change in any way the rights or powers that the State Department 
currently has under the lease. The Secretary of State will continue to 
have the same right to prohibit any use, development, occupancy, lease, 
or sublease as is currently authorized under the existing lease. My 
bill makes no substantive change in the relationship between the State 
Department and Intelsat. It merely eliminates the inconsistency between 
the lease and the ICA that was caused by Intelsat's privatization--
which Congress required when it passed the ORBIT Act.
  The State Department has approved this legislation to amend the ICA. 
I hope my colleagues will support the bill, too, and act on it 
expeditiously.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2322

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

     SECTION 1. AMENDMENT TO THE INTERNATIONAL CENTER ACT.

       The first section of the International Center Act (Public 
     Law 90-553; 82 Stat. 958) is amended by adding at the end the 
     following new sentence: ``Notwithstanding the foregoing 
     limitations, the property identified by the District of 
     Columbia as tax lots 803, 804, 805, and 806 within the area 
     described in this section may be leased or subleased to an 
     entity other than a foreign government or international 
     organization, so long as the Secretary maintains the right to 
     approve the occupant and the intended use of the property.''.

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