[Congressional Record (Bound Edition), Volume 155 (2009), Part 10]
[Senate]
[Pages 13943-13972]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. AKAKA:
  S. 1180. A bill to provide for greater diversity within, and to 
improve policy direction and oversight of, the Senior Executive 
Service; to the Committee on Homeland Security and Governmental 
Affairs.
  Mr. AKAKA. Mr. President, I rise today to join my colleague in the 
House of Representatives, Congressman Danny K. Davis, to reintroduce 
the Senior Executive Service Diversity Assurance Act of 2009. This 
legislation promotes greater diversity among the Federal Government's 
elite corps of senior executives and establishes a central office of 
management for these top-level Federal executives. Last year, we 
introduced this bill. Unfortunately, the Senate was not able to pass 
the bill before the adjournment of the 110th Congress.

[[Page 13944]]

  The Senior Executive Service, SES, is the most senior level of career 
civil servants in the Federal Government. Senior executives are 
essential to an efficient and effective Federal Government in 
management and operations. Over the next ten years, ninety percent of 
the career SES will be eligible to retire. As agencies begin to 
consider employees for SES positions, it is important that they develop 
pipelines into highly qualified candidate pools that represent diverse 
backgrounds, and ensure that applicants of all races, ethnicities, 
genders, and abilities be equally considered. According to reports by 
the Government Accountability Office, a diverse SES can bring a greater 
variety of perspectives and approaches to policy development, strategic 
planning, problem solving, and decision making.
  A 2007 Federal Equal Opportunity Recruitment Program report by the 
Office of Personnel Management, OPM, showed that the percentage of 
minorities and women at senior pay levels in the Federal Government, 
including SES, is lower than in the total civilian labor force and the 
Federal workforce as a whole. According to a 2007 GAO report, only 15.8 
percent of the SES was minorities compared to 32.8 percent of the 
entire workforce. The Senior Executive Service Diversity Assurance Act 
directly addresses this gap.
  This legislation would require Federal agencies to submit a plan to 
OPM on how the agency is removing barriers to minorities, women, and 
individuals with disabilities to obtain appointments in the SES.
  The bill encourages agencies, to the extent practicable, to include 
minorities, women, and individuals with disabilities on their Executive 
Resource Boards as well as other qualification review boards that 
evaluate SES candidates.
  Furthermore, the legislation re-establishes the Senior Executive 
Service Resource Office, SESRO, at OPM, which was dissolved during an 
internal reorganization of OPM in 2003. This bill would restore SESRO's 
responsibilities of overseeing and managing the corps of senior 
executives. SESRO would serve as a central resource for agencies and 
provide oversight of agency recruitment and candidate development. 
Additionally, it would be responsible for ensuring diversity within the 
SES through strategic partnerships, mentorship programs, and more 
stringent reporting requirements. For too long, ethnic minorities, 
women, and persons with disabilities have been under-represented and 
this bill attempts to reform shortcomings in the system.
  In America's workforce, we need leadership that reflects its varied 
cultures and backgrounds. A more diverse SES will better ensure that 
the executive management of the Federal Government is responsive to the 
needs, policies, and goals of the Nation.
  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. 1180

       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 ``Senior Executive Service 
     Diversity Assurance Act of 2009''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) according to the most recent findings from the 
     Government Accountability Office--
       (A) minorities made up 22.5 percent of the individuals 
     serving at the GS-15 and GS-14 levels and 15.8 percent of the 
     Senior Executive Service in 2007;
       (B) women made up 34.3 percent of the individuals serving 
     at the GS-15 and GS-14 levels and 29.1 percent of the Senior 
     Executive Service in 2007; and
       (C) although the number of career Senior Executive Service 
     members increased from 6,110 in 2,000 to 6,555 in 2007, the 
     representation of African American men in the career Senior 
     Executive Service declined during that same period from 5.5 
     percent to 5.0 percent; and
       (2) according to the Office of Personnel Management--
       (A) black employees represented 6.1 percent of employees at 
     the Senior Pay levels and 17.9 percent of the permanent 
     Federal workforce compared to 10 percent in the civilian 
     labor force in 2008;
       (B) Hispanic employees represented 4.0 percent of employees 
     at the Senior Pay levels and 7.9 percent of the permanent 
     Federal workforce compared to 13.2 percent of the civilian 
     labor force in 2008; and
       (C) women represented 29.1 percent of employees at the 
     Senior Pay levels and 44.2 percent of the permanent Federal 
     workforce compared to 45.6 percent of the civilian labor 
     force in 2008.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the term ``Director'' means the Director of the Office 
     of Personnel Management;
       (2) the term ``Senior Executive Service'' has the meaning 
     given under section 2101a of title 5, United States Code;
       (3) the terms ``agency'', ``career appointee'', and 
     ``career reserved position'' have the meanings given under 
     section 3132 of title 5, United States Code; and
       (4) the term ``SES Resource Office'' means the Senior 
     Executive Service Resource Office established under section 
     4.

     SEC. 4. SENIOR EXECUTIVE SERVICE RESOURCE OFFICE.

       (a) Establishment.--Not later than 180 days after the date 
     of the enactment of this Act, the Director shall establish 
     within the Office of Personnel Management an office to be 
     known as the Senior Executive Service Resource Office.
       (b) Mission.--The mission of the SES Resource Office shall 
     be to--
       (1) improve the efficiency, effectiveness, and productivity 
     of the Senior Executive Service through policy formulation 
     and oversight;
       (2) advance the professionalism of the Senior Executive 
     Service; and
       (3) ensure that, in seeking to achieve a Senior Executive 
     Service reflective of the Nation's diversity, recruitment is 
     from qualified individuals from appropriate sources.
       (c) Functions.--
       (1) In general.--The functions of the SES Resource Office 
     are to--
       (A) make recommendations to the Director with respect to 
     regulations; and
       (B) provide guidance to agencies, concerning the structure, 
     management, and diverse composition of the Senior Executive 
     Service.
       (2) Specific functions.--In order to carry out the purposes 
     of this section, the SES Resource Office shall--
       (A) take such actions as the SES Resource Office considers 
     necessary to manage and promote an efficient, elite, and 
     diverse corps of senior executives by--
       (i) creating policies for the management and improvement of 
     the Senior Executive Service;
       (ii) providing oversight of the performance, structure, and 
     composition of the Senior Executive Service; and
       (iii) providing guidance and oversight to agencies in the 
     management of senior executives and candidates for the Senior 
     Executive Service;
       (B) be responsible for the policy development, management, 
     and oversight of the Senior Executive Service pay and 
     performance management system;
       (C) develop standards for certification of each agency's 
     Senior Executive Service performance management system and 
     evaluate all agency applications for certification;
       (D) be responsible for coordinating, promoting, and 
     monitoring programs for the advancement and training of 
     senior executives, including the Senior Executive Service 
     Federal Candidate Development Program;
       (E) provide oversight of, and guidance to, agency executive 
     resources boards;
       (F) be responsible for the administration of the 
     qualifications review board;
       (G) establish and maintain annual statistics (in a form 
     that renders such statistics useful to appointing authorities 
     and candidates) on--
       (i) the total number of career reserved positions at each 
     agency;
       (ii) the total number of vacant career reserved positions 
     at each agency;
       (iii) of the positions under clause (ii), the number for 
     which candidates are being sought;
       (iv) the amount of time a career reserved position is 
     vacant;
       (v) the amount of time it takes to hire a candidate into a 
     career reserved position;
       (vi) the number of individuals who have been certified in 
     accordance with section 3393(c) of title 5, United States 
     Code, and the composition of that group of individuals with 
     regard to race, ethnicity, sex, age, and individuals with 
     disabilities;
       (vii) the composition of the Senior Executive Service with 
     regard to race, ethnicity, sex, age, and individuals with 
     disabilities;
       (viii) the composition of executive resources boards with 
     regard to race, ethnicity, sex, and individuals with 
     disabilities; and
       (ix) the composition of qualifications review boards with 
     regard to race, ethnicity, sex, and individuals with 
     disabilities;
       (H) make available to the public through the official 
     public internet site of the Office of Personnel Management, 
     the data collected under subparagraph (G);
       (I) establish and promote mentoring programs for potential 
     candidates for the Senior

[[Page 13945]]

     Executive Service, including candidates who have been 
     certified as having the executive qualifications necessary 
     for initial appointment as a career appointee under a program 
     established under to section 3396(a) of title 5, United 
     States Code;
       (J) conduct a continuing program for the recruitment of 
     women, members of racial and ethnic minority groups, and 
     individuals with disabilities for Senior Executive Service 
     positions, with special efforts directed at recruiting from 
     educational institutions, professional associations, and 
     other sources;
       (K) advise agencies on the best practices for an agency in 
     utilizing or consulting with an agency's equal employment or 
     diversity office or official (if the agency has such an 
     office or official) with regard to the agency's Senior 
     Executive Service appointments process; and
       (L) evaluate and implement strategies to ensure that 
     agencies conduct appropriate outreach to other agencies to 
     identify candidates for Senior Executive Service positions.
       (d) Protection of Individually Identifiable Information.--
     For purposes of subsection (c)(2)(H), the SES Resource Office 
     shall combine data for any agency that is not named in 
     section 901(b) of chapter 31, United States Code, to protect 
     individually identifiable information.
       (e) Cooperation of Agencies.--The head of each agency shall 
     provide the Office of Personnel Management with such 
     information as the SES Resource Office may require in order 
     to carry out subsection (c)(2)(G).
       (f) Staffing.--The Director of the Office of Personnel 
     Management shall make such appointments as necessary to staff 
     the SES Resource Office.

     SEC. 5. CAREER APPOINTMENTS.

       (a) Promoting Diversity in the Career Appointments 
     Process.--Section 3393(b) of title 5, United States Code, is 
     amended by inserting after the first sentence the following: 
     ``In establishing an executive resources board, the head of 
     the agency shall, to the extent practicable, ensure diversity 
     of the board and of any subgroup thereof or other evaluation 
     panel related to the merit staffing process for career 
     appointees, by including members of racial and ethnic 
     minority groups, women, and individuals with disabilities.''.
       (b) Regulations.--Not later than 1 year after the date of 
     the enactment of this Act, the Director shall promulgate 
     regulations to implement subsection (a).
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Director shall submit to the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate and the Committee on Oversight and Government 
     Reform of the House of Representatives a report evaluating 
     agency efforts to improve diversity in executive resources 
     boards based on the information collected by the SES Resource 
     Office under section 4(c)(2)(G) (viii) and (ix).

     SEC. 6. ENCOURAGING A MORE DIVERSE SENIOR EXECUTIVE SERVICE.

       (a) Senior Executive Service Diversity Plans.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, each agency, in consultation with 
     the Office of Personnel Management and the Chief Human 
     Capital Officers Council, shall submit to the Office of 
     Personnel Management a plan to enhance and maximize 
     opportunities for the advancement and appointment of 
     minorities, women, and individuals with disabilities in the 
     agency to the Senior Executive Service. Agency plans shall be 
     reflected in the strategic human capital plan.
       (2) Contents.--Agency plans shall address how the agency is 
     identifying and eliminating barriers that impair the ability 
     of minorities, women, and individuals with disabilities to 
     obtain appointments to the Senior Executive Service and any 
     actions the agency is taking to provide advancement 
     opportunities, including--
       (A) conducting outreach to minorities, women, and 
     individuals within the agency and outside the agency;
       (B) establishing and maintaining training and education 
     programs to foster leadership development;
       (C) identifying career enhancing opportunities for agency 
     employees;
       (D) assessing internal availability of candidates for 
     Senior Executive Service positions; and
       (E) conducting an inventory of employee skills and 
     addressing current and potential gaps in skills and the 
     distribution of skills.
       (3) Update of agency plans.--Agency plans shall be updated 
     at least every 2 years during the 10 years following 
     enactment of this Act. An agency plan shall be reviewed by 
     the Office of Personnel Management and, if determined to 
     provide sufficient assurances, procedures, and commitments to 
     provide adequate opportunities for the advancement and 
     appointment of minorities, women, and individuals with 
     disabilities to the Senior Executive Service, shall be 
     approved by such Office. An agency may, in updating its plan, 
     submit to the Office of Personnel Management an assessment of 
     the impacts of the plan.
       (b) Summary and Evaluation.--Not later than 180 days after 
     the deadline for the submission of any report or update under 
     subsection (a), the Director shall transmit to the Committee 
     on Homeland Security and Governmental Affairs of the Senate 
     and the Committee on Oversight and Government Reform of the 
     House of Representatives a report summarizing and evaluating 
     the agency plans or updates (as the case may be) so 
     submitted.
       (c) Coordination.--The Office of Personnel Management 
     shall, in carrying out subsection (a), evaluate existing 
     requirements under section 717 of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e-16) and section 501 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 791) and determine how 
     agency reporting can be performed so as to be consistent 
     with, but not duplicative of, such sections and any other 
     similar requirements.
                                 ______
                                 
      By Mr. WYDEN:
  S. 1181. A bill to provide for a demonstration project to examine 
whether community-level public health interventions can result in lower 
rates of chronic disease for individuals entering the Medicare program; 
to the Committee on Finance.
  Mr. WYDEN. Mr. President, today I am introducing the Healthy Living, 
Healthy Aging Demonstration Project Act of 2009. This act will provide 
for a demonstration project to examine whether community-level public 
health interventions can result in lower rates of chronic disease for 
individuals who are about to enter the Medicare program. Prevention is 
a key to health at any age, but especially later in life. I am proud to 
be introducing a cornerstone of health care reform today.
  American people and the U.S. Government need this prevention act for 
two main reasons. Health care costs continue to rise exponentially and 
chronic diseases are the number one cause of death and disability in 
the U.S. One hundred thirty-three million Americans, representing 45 
percent of the total population, have at least one chronic disease. 
Chronic diseases kill more than 1.7 million Americans each year, and 
are responsible for 7 out of every 10 deaths in the U.S. Furthermore, 
the vast majority of cases of chronic disease could be better prevented 
or managed.
  The World Health Organization has estimated that if the major risk 
factors for chronic disease were eliminated, at least 80 percent of all 
heart disease, stroke, and type 2 diabetes would be prevented, and that 
more than 40 percent of cancer cases would be prevented. In addition, 
depressive disorders are common, chronic, and costly. The World Health 
Organization identified major depression as the fourth leading cause of 
worldwide disease in 1990, causing more disability than even certain 
types of heart disease. Research shows that mental health screenings 
after disease diagnosis for diabetic patients can be cost effective and 
improve health.
  The Healthy Living, Healthy Aging Demonstration Project Act of 2009 
will address these costly and chronic health problems before people 
enter the Medicare program. It calls for the Secretary of Health and 
Human Services to provide 5-year grants to community partnerships that 
include the state or local public health department and other community 
stakeholders such as health centers, providers, small businesses, and 
rural health clinics to fund evidence-based community-level prevention 
and wellness strategies. The types of community-based prevention 
strategies we are looking at in this program include walking programs, 
group exercise classes, anti-smoking programs, programs to highlight 
healthy dining options at restaurants, and expanding access to farmer's 
markets, nutritious foods, and other programs and services recommended 
by the Task Force on Community Preventive Services.
  The Secretary, acting through the Administrator of the Centers for 
Medicare and Medicaid Services, CMS and in partnership with the 
Director of the Centers for Disease Control and Prevention, CDC would 
implement the demonstration program to test whether these public health 
interventions targeting 55-64 year olds result in lower rates of 
chronic disease and reduce costs for the Medicare program. One 
assessment level of the act will measure the effects of adopting 
healthy lifestyle strategies on specific individuals who enroll in 
prevention programs in their communities.

[[Page 13946]]

  More specifically, program requirements in this act include an 
individual health screening conducted by the state or local public 
health department or its designee. An individual health screening will 
include the appropriate test for diabetes, high blood pressure, high 
cholesterol, obesity, and tobacco use. Insured individuals who screen 
positive for chronic disease will be referred for treatment and for 
mental health screening and treatment to their existing providers or 
in-network providers. Individuals identified with chronic disease risk 
factors, such as high blood pressure or obesity, would be engaged in 
the community health interventions funded through the demonstration, 
such as walking programs, group exercise classes, or anti-smoking 
programs. Uninsured individuals who screen positive for chronic disease 
would be referred to the pre-selected clinical referral source for the 
demonstration site. Uninsured individuals who do not screen positive 
for chronic disease will receive information on healthy lifestyle 
choices and may also enroll in community level prevention 
interventions.
  This program will not only conduct community-based prevention 
strategies, screenings and health assessments, but also help support 
follow-up care for uninsured individuals identified with chronic 
diseases, including determining eligibility for public programs.
  I would like to thank Dr. Mary Polce-Lynch from Randolph-Macon 
College, who has been working in my office through the American 
Psychological Association and the American Association for the 
Advancement of Science, and Daniella Gratale from Trust for America's 
Health, for their work on this important prevention bill.
  I urge all of my colleagues to support this important legislation to 
help Americans adopt the healthiest lifestyles possible and to prevent 
chronic diseases in later life.
  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. 1181

       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 ``Healthy Living and Health 
     Aging Demonstration Project Act of 2009''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Chronic diseases are the leading cause of death and 
     disability in the United States. 7 in every 10 deaths are 
     attributable to chronic disease, with more than 1,700,000 
     Americans dying each year. Approximately 133,000,000 
     Americans, representing 45 percent of the Nation's 
     population, have at least 1 chronic disease.
       (2) In 2007, the United States spent over 
     $2,200,000,000,000 on health care, with 75 cents out of every 
     dollar spent going towards treatment of individuals with 1 or 
     more chronic disease. In public programs, treatment for 
     chronic diseases constitutes an even higher percentage of 
     total spending, with 83 cents of every dollar spent by 
     Medicaid programs and more than 95 cents of every dollar 
     spent by the Medicare program going towards costs related to 
     chronic disease.
       (3) Since 1987, the rate of obesity in the United States 
     has doubled, accounting for a 20 to 30 percent increase in 
     health care spending. Additionally, the percentage of young 
     Americans who are overweight has tripled since 1980. If the 
     prevalence of obesity was at the same level as it was in 
     1987, health care spending would be nearly 10 percent lower 
     per person, for a total savings of nearly $200,000,000,000.
       (4) The vast majority of cases of chronic disease could be 
     better prevented or managed. The World Health Organization 
     has estimated that if the major risk factors for chronic 
     diseases were eliminated, at least 80 percent of all cases of 
     heart disease, stroke, and type 2 diabetes could be 
     prevented, while also averting more than 40 percent of cancer 
     cases.
       (5) Depressive disorders are also becoming increasingly 
     common, chronic, and costly. In 1990, the World Health 
     Organization identified major depression as the fourth 
     leading cause of disease worldwide, leading to more cases of 
     disability than ischemic heart disease or cerebrovascular 
     disease. Research has shown that mental health screenings 
     following disease diagnosis for diabetic patients can improve 
     health while remaining cost-effective.
       (6) A report by the Trust for America's Health found that 
     an annual investment of $10 per person in proven community-
     based programs to increase physical activity, improve 
     nutrition, and prevent tobacco use and smoking could, within 
     5 years, save the United States more than $16,000,000,000 
     annually, with savings of more than $5,000,000,000 for 
     Medicare and $1,900,000,000 for Medicaid, as well as over 
     $9,000,000,000 in savings for private health insurance 
     payers.

     SEC. 3. DEMONSTRATION PROJECT FOR COMMUNITY-LEVEL PUBLIC 
                   HEALTH INTERVENTIONS.

       (a) Definitions.--In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Centers for Medicare & Medicaid 
     Services.
       (2) Chronic disease or condition.--The term ``chronic 
     disease or condition'' means diabetes, hypertension, 
     pulmonary diseases (including asthma), hyperlipidemia, 
     obesity, and any other disease or condition as determined by 
     the Secretary of Health and Human Services.
       (3) Community-based prevention and intervention strategy.--
     The term ``community-based prevention and intervention 
     strategy'' means programs and services intended to prevent 
     and reduce the incidence of chronic disease, including 
     walking programs, group exercise classes, anti-smoking 
     programs, healthy eating programs, increased access to 
     nutritious and organic foods, programs and services that have 
     been recommended by the Task Force on Community Preventive 
     Services, and any programs or services that have been 
     proposed by an eligible partnership and certified by the 
     Director of the Centers for Disease Control and Prevention as 
     evidence-based.
       (4) Director.--The term ``Director'' means the Director of 
     the Centers for Disease Control and Prevention.
       (5) Medicare.--The term ``Medicare'' means the program 
     established under title XVIII of the Social Security Act (42 
     U.S.C. 1395 et seq.).
       (6) Pre-medicare eligible individual.--The term ``pre-
     Medicare eligible individual'' means an individual who has 
     attained age 55, but not age 65.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (8) State.--The term ``State'' means each of the 50 States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the United States Virgin Islands, Guam, the Commonwealth of 
     the Northern Mariana Islands, and American Samoa.
       (b) Establishment.--
       (1) In general.--The Secretary, acting through the 
     Administrator and in consultation with the Director, shall 
     establish a demonstration project under which eligible 
     partnerships, as described in subsection (d)(1), are awarded 
     grants to examine whether community-based prevention and 
     intervention strategies, targeted towards pre-Medicare 
     eligible individuals, result in--
       (A) lower rates of chronic diseases and conditions after 
     such individuals become eligible for benefits under Medicare; 
     and
       (B) lower costs under Medicare.
       (2) Federal agency responsibilities.--
       (A) Centers for medicare & medicaid services.--The 
     Administrator shall have primary responsibility for 
     administering and evaluating the demonstration project 
     established under this section.
       (B) Centers for disease control and prevention.--The 
     Director shall--
       (i) certify that community-based prevention and 
     intervention strategies proposed by eligible partnerships are 
     evidence-based;
       (ii) administer and provide grants for health screenings 
     and risk assessments and community-based prevention and 
     intervention strategies conducted by eligible partnerships; 
     and
       (iii) provide grants to designated clinical referral sites 
     (as described in subsection (d)(1)(B)(ii)(I)) for 
     reimbursement of administrative costs associated with their 
     participation in the demonstration project.
       (c) Duration and Selection of Partnerships.--
       (1) Duration.--The demonstration project shall be conducted 
     for a 5-year period, beginning not later than 2010.
       (2) Number of partnerships.--The Administrator, in 
     consultation with the Director, shall select not more than 6 
     eligible partnerships.
       (3) Selection of partnerships.--Eligible partnerships shall 
     be selected by the Administrator in a manner that--
       (A) ensures such partnerships represent racially, 
     ethnically, economically, and geographically diverse 
     populations, including urban, rural, and underserved areas; 
     and
       (B) gives priority to such partnerships that include 
     employers (as described in subsection (d)(1)(C)).
       (d) Eligible Partnerships.--
       (1) Description.--
       (A) In general.--Subject to subparagraph (C), for purposes 
     of this section, an eligible partnership is a partnership 
     that submits an approved application to participate in the 
     demonstration project under this section and includes both of 
     the entities described in subparagraph (B).

[[Page 13947]]

       (B) Required entities.--An eligible partnership shall 
     consist of a partnership between the following:
       (i) A State or local public health department that shall--

       (I) serve as the lead organization for the eligible 
     partnership;
       (II) develop appropriate community-based prevention and 
     intervention strategies and present such strategies to the 
     Director for certification; and
       (III) administer certified community-based prevention and 
     intervention strategies and conduct such strategies in 
     association with local community organizations.

       (ii) A medical facility as deemed appropriate by the 
     Administrator, including health centers (as described under 
     section 330 of the Public Health Service Act (42 U.S.C. 
     254b)) and rural health clinics (as described in section 
     1861(aa)(2) of the Social Security Act (42 U.S.C. 
     1395x(aa)(2))), that shall--

       (I) serve as the designated clinical referral site for 
     medical services, as described in subsection (e)(4)(B)(i);
       (II) provide assistance to the designated public health 
     department with organization and administration of individual 
     health screenings and risk assessments, as described in 
     subsection (e)(3);
       (III) collect payment for medical treatment and services 
     that have been provided to individuals under the 
     demonstration project in a manner that is consistent with 
     State law and applicable clinic policy; and
       (IV) provide mental health services or obtain an agreement 
     with a designated mental health provider for referral and 
     provision of such services.

       (C) Optional entities.--An eligible partnership may include 
     other organizations as practicable and necessary to assist in 
     community outreach activities and to engage health care 
     providers, insurers, employers, and other community 
     stakeholders in meeting the goals of the demonstration 
     project.
       (2) Applications.--An eligible partnership that desires to 
     participate in the demonstration project shall submit to the 
     Administrator an application at such time, in such manner, 
     and containing such information as the Administrator may 
     require.
       (e) Use of Funds.--
       (1) In general.--An eligible partnership shall use funds 
     received under this section to conduct community-based 
     prevention and intervention strategies and health screenings 
     and risk assessments for pre-Medicare eligible individuals 
     from a diverse selection of ethnic backgrounds and income 
     levels.
       (2) Community-based prevention and intervention strategy.--
     An eligible partnership, acting through the State or local 
     health department, shall promote healthy lifestyle choices 
     among pre-Medicare eligible individuals by implementing and 
     conducting a certified community-based prevention and 
     intervention strategy that shall be made available to all 
     such individuals.
       (3) Individual health screenings and risk assessments.--An 
     eligible partnership, acting through the State or local 
     public health department (or an appropriately designated 
     facility), shall agree to provide the following:
       (A) Screenings for chronic diseases and conditions.--
     Individual health screenings for chronic diseases or 
     conditions, which shall include appropriate tests for--
       (i) diabetes;
       (ii) high blood pressure;
       (iii) high cholesterol;
       (iv) body mass index;
       (v) physical inactivity;
       (vi) poor nutrition;
       (vii) tobacco use; and
       (viii) any other chronic disease or condition as determined 
     by the Director.
       (B) Mental health screenings.--A mental health screening 
     and, if appropriate, referral for additional mental health 
     services, for any individual who has been screened and 
     diagnosed with a chronic disease or condition.
       (4) Clinical treatment for chronic diseases.--The eligible 
     partnership shall agree to provide the following:
       (A) Treatment and prevention referrals for insured 
     individuals.--To refer an individual determined to be covered 
     under a health insurance program who has been screened and 
     diagnosed with a chronic disease or chronic disease risk 
     factors (including high blood pressure, high cholesterol, 
     obesity, or tobacco use)--
       (i) to a provider under such program for further medical or 
     mental health treatment; and
       (ii) for enrollment in an appropriate community-based 
     prevention and intervention strategy program.
       (B) Treatment and prevention referrals for uninsured 
     individuals.--To refer an individual determined to be without 
     coverage under a health insurance program who has been 
     screened and diagnosed with a chronic disease or chronic 
     disease risk factors (including high blood pressure, high 
     cholesterol, obesity, or tobacco use) to the designated 
     clinical referral site--
       (i) for determination of eligibility for public health 
     programs, or appropriate treatment (including mental health 
     services) pursuant to the facility's existing authority and 
     funding and in accordance with applicable fees and payment 
     collection as described in subsection (d)(1)(B)(ii)(III); and
       (ii) for enrollment in an appropriate community-based 
     prevention and intervention strategy program.
       (C) Healthy individuals.--To provide an individual who is 
     not diagnosed with a chronic disease and does not exhibit any 
     chronic disease risk factors with appropriate information on 
     healthy lifestyle choices and available community-based 
     prevention and intervention strategy programs.
       (5) Rule of construction.--Nothing in this section shall be 
     construed as entitling an individual who participates in the 
     demonstration project to benefits under Medicare.
       (f) Monitoring.--The Secretary shall develop and administer 
     a program to evaluate the effectiveness of the demonstration 
     project by collecting the following:
       (1) Health risk assessment results.--Each eligible 
     partnership shall maintain records of medical information and 
     results obtained during each individual's health screening 
     and risk assessment to establish baseline data for continued 
     monitoring and assessment of such individuals.
       (2) Medicare examination results.--The Secretary shall 
     collect medical information obtained during the initial 
     preventive physical examination under Medicare (as defined in 
     section 1861(ww) of the Social Security Act (42 U.S.C. 
     1395x(ww))) for those individuals who received health 
     screenings and risk assessments through the demonstration 
     project.
       (g) Evaluation.--
       (1) Independent research.--The Secretary, in consultation 
     with the Director and the Administrator, shall enter into a 
     contract with an independent entity or organization that has 
     demonstrated--
       (A) prior experience in population-based assessment of 
     public health interventions designed to prevent or treat 
     chronic diseases and conditions; and
       (B) knowledge and prior study of the general health and 
     lifestyle behaviors of pre-Medicare eligible individuals.
       (2) Evaluation designs.--The entity or organization 
     selected by the Secretary under paragraph (1) shall, using 
     the information and data collected pursuant to subsection 
     (f), conduct an assessment of the demonstration project 
     through--
       (A) a population-based design that compares those 
     populations targeted under the demonstration project with a 
     matched control group; and
       (B) a pre-post design that measures changes in health 
     indicators (including improved diet or increased physical 
     activity) and health outcomes in the targeted populations for 
     those individuals who participated in individual health risk 
     assessments and, prior to completion of the demonstration 
     project, became eligible for benefits under Medicare.
       (h) Reporting.--
       (1) Progress report.--Not later than 3 years after 
     implementation of the demonstration project, the Secretary 
     shall prepare and submit a report on the status of the 
     project to Congress, including--
       (A) the progress and results of any activities conducted 
     under the demonstration project; and
       (B) identification of health indicators (such as improved 
     diet or increased physical activity) that have been 
     determined to be associated with controlling or reducing the 
     level of chronic disease for pre-Medicare eligible 
     individuals.
       (2) Final report.--Not later than 18 months after 
     completion of the demonstration project, the Secretary shall 
     prepare and submit a final report and evaluation of the 
     project to Congress, including--
       (A) the results of the assessment conducted under 
     subsection (g)(2);
       (B) a description of community-based prevention and 
     intervention strategies that have been determined to be 
     effective in controlling or reducing the level of chronic 
     disease for pre-Medicare eligible individuals;
       (C) calculation of potential savings under Medicare based 
     upon a comparison of chronic disease rates between the 
     populations targeted under the demonstration project and the 
     matched control group; and
       (D) recommendations for such legislation and administrative 
     action as the Secretary determines appropriate.
       (i) Authorization of Appropriations.--For the purpose of 
     carrying out the demonstration project established under this 
     section, there is authorized to be appropriated $200,000,000 
     for the period of fiscal years 2010 through 2016.
                                 ______
                                 
      By Mr. DURBIN (for himself and Mr. Brownback):
  S. 1183. A bill to authorize the Secretary of Agriculture to provide 
assistance to the Government of Haiti to end within 5 years the 
deforestation in Haiti and restore within 30 years the extent of 
tropical forest cover in existence in Haiti in 1990, and for other 
purposes; to the Committee on Foreign Relations.
  Mr. DURBIN. 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:

[[Page 13948]]



                                S. 1183

       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 ``Haiti Reforestation Act of 
     2009''.

     SEC. 2. FINDINGS; PURPOSE.

       (a) Findings.--Congress finds that--
       (1) the established policy of the Federal Government is to 
     support and seek protection of tropical forests around the 
     world;
       (2) tropical forests provide a wide range of benefits by--
       (A) harboring a major portion of the biological and 
     terrestrial resources of Earth and providing habitats for an 
     estimated 10,000,000 to 30,000,000 plant and animal species, 
     including species essential to medical research and 
     agricultural productivity;
       (B) playing a critical role as carbon sinks that reduce 
     greenhouse gases in the atmosphere, as 1 hectare of tropical 
     forest can absorb up to approximately 3 tons of carbon 
     dioxide per year, thus moderating potential global climate 
     change; and
       (C) regulating hydrological cycles upon which agricultural 
     and coastal resources depend;
       (3) tropical forests are also a key factor in reducing 
     rates of soil loss, particularly on hilly terrain;
       (4) while international efforts to stem the tide of 
     tropical deforestation have accelerated during the past 2 
     decades, the rapid rate of tropical deforestation continues 
     unabated;
       (5) in 1923, over 60 percent of the land of Haiti was 
     forested but, by 2006, that percentage had decreased to less 
     than 2 percent;
       (6) during the period beginning in 2000 and ending in 2005, 
     the deforestation rate in Haiti accelerated by more than 20 
     percent over the deforestation rate in Haiti during the 
     period beginning in 1990 and ending in 1999;
       (7) as a result, during the period described in paragraph 
     (6), Haiti lost--
       (A) nearly 10 percent (approximately 11,000 hectares) of 
     the forest cover of Haiti; and
       (B) approximately 22 percent of the total forest and 
     woodland habitat of Haiti;
       (8) poverty and economic pressures are--
       (A) two factors that underlie the tropical deforestation of 
     Haiti; and
       (B) manifested particularly through the clearing of vast 
     areas of forest for conversion to agricultural uses;
       (9) the unemployment rate of Haiti is approximately 80 
     percent;
       (10) the per capita income of Haiti is $450 per year, which 
     is barely one-tenth of the per capita income of Latin America 
     and the Caribbean;
       (11) two-thirds of the population of Haiti depend on the 
     agricultural sector, which consists mainly of small-scale 
     subsistence farming;
       (12) 60 percent of the population of Haiti relies on 
     charcoal produced from cutting down trees for cooking fuel;
       (13) soil erosion represents the most direct effect of the 
     deforestation of Haiti, as the erosion has--
       (A) lowered the productivity of the land due to the poor 
     soils underlying the tropical forests;
       (B) worsened the severity of droughts;
       (C) led to further deforestation;
       (D) significantly decreased the quality and, as a result, 
     quantity of freshwater and clean drinking water available to 
     the population of Haiti; and
       (E) increased the pressure on the remaining land and trees 
     in Haiti;
       (14) tropical forests provide forest cover to soften the 
     effect of heavy rains and reduce erosion by anchoring the 
     soil with their roots;
       (15) when trees are cleared, rainfall runs off the soil 
     more quickly and contributes to floods and further erosion;
       (16) in 2004, Hurricane Jeanne struck Haiti, killing 
     approximately 3,000, and affecting over 200,000, people, 
     partly because deforestation had resulted in the clearing of 
     large hillsides, which enabled rainwater to run off directly 
     to settlements located at the bottom of the slopes;
       (17) research conducted by the United Nations Environmental 
     Programme has revealed a direct (89 percent) correlation 
     between the extent of the deforestation of a country and the 
     incidence of victims per weather event in the country;
       (18) finding economic benefits for local communities from 
     sustainable uses of tropical forests is critical for the 
     long-term protection of the tropical forests in Haiti; and
       (19) tropical reforestation efforts would provide new 
     sources of jobs, income, and investments in Haiti by--
       (A) providing employment opportunities in tree seedling 
     programs, contract tree planting and management, sustainable 
     agricultural initiatives, sustainable and managed timber 
     harvesting, and wood products milling and finishing services; 
     and
       (B) enhancing community enterprises that generate income 
     through the trading of sustainable forest resources, many of 
     which exist on small scales in Haiti and in the rest of the 
     region.
       (b) Purpose.--The purpose of this Act is to provide 
     assistance to the Government of Haiti to develop and 
     implement, or improve, nationally appropriate policies and 
     actions--
       (1) to reduce deforestation and forest degradation in 
     Haiti; and
       (2) to increase annual rates of afforestation and 
     reforestation in a measurable, reportable, and verifiable 
     manner--
       (A) to eliminate within 5 years after the date of enactment 
     of this Act any further net deforestation of Haiti; and
       (B) to restore within 30 years after the date of enactment 
     of this Act the forest cover of Haiti to the surface area 
     that the forest cover had occupied in 1990.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the United States Agency for International 
     Development.
       (2) Afforestation.--
       (A) In general.--The term ``afforestation'' means the 
     establishment of a new forest through the seeding of, or 
     planting of tress on, a parcel of nonforested land.
       (B) Inclusion.--The term ``afforestation'' includes the 
     introduction of a tree species to a parcel of nonforested 
     land of which the species is not a native species.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

         TITLE I--FORESTATION ASSISTANCE TO GOVERNMENT OF HAITI

     SEC. 101. FORESTATION ASSISTANCE.

       (a) Authority of Secretary.--
       (1) In general.--In accordance with paragraph (2), the 
     Secretary, in consultation with the Administrator, may offer 
     to enter into agreements with the Government of Haiti to 
     provide financial assistance, technology transfers, or 
     capacity building assistance for the conduct of activities to 
     develop and implement 1 or more forestation proposals under 
     paragraph (2)--
       (A) to reduce the deforestation of Haiti; and
       (B) to increase the rates of afforestation and 
     reforestation in Haiti.
       (2) Proposals.--
       (A) In general.--To be eligible for assistance under 
     paragraph (1), the Government of Haiti shall submit to the 
     Secretary 1 or more proposals that contain--
       (i) a description of each policy and initiative to be 
     carried out using the assistance; and
       (ii) adequate documentation to ensure, as determined by the 
     Secretary, that--

       (I) each policy and initiative will be--

       (aa) carried out and managed in accordance with widely-
     accepted environmentally sustainable forestry and 
     agricultural practices; and
       (bb) designed and implemented in a manner by which to 
     improve the governance of forests by building governmental 
     capacity to be more transparent, inclusive, accountable, and 
     coordinated in decisionmaking processes and the 
     implementation of the policy or initiative; and

       (II) the Government of Haiti will establish and enforce 
     legal regimes, standards, and safeguards--

       (aa) to prevent violations of human rights and the rights 
     of local communities and indigenous people;
       (bb) to prevent harm to vulnerable social groups; and
       (cc) to ensure that members of local communities and 
     indigenous people in affected areas, as partners and primary 
     stakeholders, will be engaged in the design, planning, 
     implementation, monitoring, and evaluation of the policies 
     and initiatives.
       (B) Determination of compatibility with certain programs.--
     In evaluating each proposal under subparagraph (A), the 
     Secretary shall ensure that each policy and initiative 
     described in the proposal submitted by the Government of 
     Haiti under that subparagraph is compatible with--
       (i) broader development, poverty alleviation, and natural 
     resource conservation objectives and initiatives in Haiti; 
     and
       (ii) the development, poverty alleviation, disaster risk 
     management, and climate resilience programs of the Department 
     of Agriculture.
       (b) Eligible Activities.--Any assistance received by the 
     Government of Haiti under subsection (a)(1) shall be used to 
     implement a proposal developed under subsection (a)(2), which 
     may include--
       (1) the provision of technologies and associated support 
     for activities to reduce deforestation or increase 
     afforestation and reforestation rates, including--
       (A) fire reduction initiatives;
       (B) forest law enforcement initiatives;
       (C) the development of timber tracking systems;
       (D) the development of cooking fuel substitutes;
       (E) initiatives to increase agricultural productivity;
       (F) tree-planting initiatives; and
       (G) programs that are designed to focus on market-based 
     solutions, including programs that leverage the international 
     carbon-offset market;
       (2) the enhancement and expansion of governmental and 
     nongovernmental institutional capacity to effectively design 
     and implement a proposal developed under subsection (a)(2) 
     through initiatives, including--
       (A) the establishment of transparent, accountable, and 
     inclusive decisionmaking processes relating to all 
     stakeholders (including affected local communities);

[[Page 13949]]

       (B) the promotion of enhanced coordination among ministries 
     and agencies responsible for agroecological zoning, mapping, 
     land planning and permitting, sustainable agriculture, 
     forestry, and law enforcement; and
       (C) the clarification of land tenure and resource rights of 
     affected communities, including local communities and 
     indigenous peoples; and
       (3) the development and support of institutional capacity 
     to measure, verify, and report the activities carried out by 
     the Government of Haiti to reduce deforestation and increase 
     afforestation and reforestation rates through the use of 
     appropriate methods, including--
       (A) the use of best practices and technologies to monitor 
     any change in the forest cover of Haiti;
       (B) the monitoring of the impacts of policies and 
     initiatives on--
       (i) affected communities;
       (ii) the biodiversity of the environment of Haiti; and
       (iii) the health of the tropical forests of Haiti; and
       (C) independent and participatory forest monitoring.
       (c) Development of Performance Metrics.--
       (1) In general.--If the Secretary provides assistance under 
     subsection (a)(1), in accordance with paragraph (2), the 
     Secretary, in cooperation with the Government of Haiti and, 
     if necessary, in consultation with the Administrator, shall 
     develop appropriate performance metrics to measure, verify, 
     and report--
       (A) the conduct of each policy and initiative to be carried 
     out by the Government of Haiti;
       (B) the results of each policy and initiative with respect 
     to the tropical forests of Haiti; and
       (C) each impact of each policy and initiative on the local 
     communities and indigenous people of Haiti.
       (2) Requirements.--Performance metrics developed under 
     paragraph (1) shall, to the maximum extent practicable, 
     include short-term and long-term metrics to evaluate the 
     implementation of each policy and initiative contained in 
     each proposal developed under subsection (a)(2).
       (d) Reports.--
       (1) Initial report.--Not later than 18 months after the 
     date of enactment of this Act, the Secretary shall submit to 
     the appropriate committees of Congress a report that 
     describes the actions that the Secretary has taken, and plans 
     to take--
       (A) to engage with the Government of Haiti, nongovernmental 
     stakeholders, and public and private nonprofit organizations 
     to implement this section; and
       (B) to enter into agreements with the Government of Haiti 
     under subsection (a)(1).
       (2)  Biennual reports.--Not later than 2 years after the 
     date on which the Secretary first provides assistance to the 
     Government of Haiti under subsection (a)(1) and biennially 
     thereafter, the Secretary shall submit to Congress a report 
     that describes the progress of the Government of Haiti in 
     implementing each policy and initiative contained in the 
     proposal submitted under subsection (a)(2).
       (e) Additional Assistance.--The Secretary may provide 
     financial and other assistance to nongovernmental 
     stakeholders to ensure--
       (1) the access by local communities and indigenous people 
     to information relating to each policy and initiative to be 
     carried out by the Government of Haiti through funds made 
     available under subsection (a)(1); and
       (2) that the groups described in paragraph (1) have an 
     appropriate opportunity to participate effectively in the 
     design, implementation, and independent monitoring of each 
     policy and initiative.
       (f) Nongovernmental Organization.--At the election of the 
     Government of Haiti, or on the determination of the 
     Secretary, in cooperation with the Government of Haiti, the 
     Government of Haiti may enter into an agreement with a 
     private, nongovernmental conservation organization 
     authorizing the organization to act on behalf of the 
     Government of Haiti for the purposes of this section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

                   TITLE II--GRANTS FOR REFORESTATION

     SEC. 201. REFORESTATION GRANT PROGRAM.

       (a) Establishment.--The Secretary, in consultation with the 
     Administrator, shall establish a grant program to carry out 
     the purposes of this Act, including reversing deforestation 
     and improving reforestation and afforestation in Haiti.
       (b) Grants Authorized.--
       (1) In general.--The Secretary is authorized to award 
     grants and contracts to public and private nonprofit 
     organizations to carry out projects that, in the aggregate, 
     reverse deforestation and improve reforestation and 
     afforestation.
       (2) Maximum amount.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary may not award a grant under this section in an 
     amount greater than $500,000 per year.
       (B) Exception.--The Secretary may award a grant under this 
     section in an amount greater than $500,000 per year if the 
     Secretary determines that the recipient of the grant has 
     demonstrated success with respect to a project that was the 
     subject of a grant under this section.
       (3) Duration.--The Secretary shall award grants under this 
     section for a period not to exceed 3 years.
       (c) Use of Funds.--
       (1) In general.--Grants awarded pursuant to subsection (b) 
     may be used for activities such as--
       (A) providing a financial incentive to protect trees;
       (B) providing hands-on management and oversight of 
     replanting efforts;
       (C) focusing on sustainable income-generating growth;
       (D) providing seed money to start cooperative reforestation 
     and afforestation efforts and providing subsequent 
     conditional funding for such efforts contingent upon required 
     tree care and maintenance activities;
       (E) promoting widespread use of improved cooking stove 
     technologies and the development of liquid biofuels, to the 
     extent that neither results in the harvesting of tropical 
     forest growth; and
       (F) securing the involvement and commitment of local 
     communities and indigenous peoples--
       (i) to protect tropical forests in existence as of the date 
     of enactment of this Act; and
       (ii) to carry out afforestation and reforestation 
     activities.
       (2) Consistency with proposals.--To the maximum extent 
     practicable, a project carried out using grant funds shall 
     support and be consistent with the proposal developed under 
     section 101(a)(2) that is the subject of the project.
       (d) Application.--
       (1) In general.--To be eligible for a grant under this 
     section, an entity shall prepare and submit an application at 
     such time, in such manner, and containing such information as 
     the Secretary may reasonably require.
       (2) Content.--Each application submitted under paragraph 
     (1) shall include--
       (A) a description of the objectives to be attained;
       (B) a description of the manner in which the grant funds 
     will be used;
       (C) a plan for evaluating the success of the project based 
     on verifiable evidence; and
       (D) to the extent that the applicant intends to use 
     nonnative species in afforestation efforts, an explanation of 
     the benefit of the use of nonnative species over native 
     species.
       (3) Preference for certain projects.--In awarding grants 
     under this section, the Secretary shall give preference to 
     applicants that propose--
       (A) to develop market-based solutions to the difficulty of 
     reforestation in Haiti, including the use of conditional cash 
     transfers and similar financial incentives to protect 
     reforestation efforts;
       (B) to partner with local communities and cooperatives; and
       (C) to focus on efforts that build local capacity to 
     sustain growth after the completion of the underlying grant 
     project.
       (e) Dissemination of Information.--The Secretary shall 
     collect and widely disseminate information about the 
     effectiveness of the demonstration projects assisted under 
     this section.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.

     SEC. 202. FOREST PROTECTION GRANTS.

       Chapter 7 of part I of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2281 et seq.) is amended by inserting after 
     section 466 the following new section:

     ``SEC. 467. PILOT PROGRAM FOR HAITI.

       ``(a) Submission of List of Areas of Severely Degraded 
     Natural Resources.--The Administrator of the Agency for 
     International Development, in cooperation with 
     nongovernmental conservation organizations, shall invite the 
     Government of Haiti to submit a list of areas within the 
     territory of Haiti in which tropical forests are seriously 
     degraded or threatened.
       ``(b) Review of List.--The Administrator shall assess the 
     list submitted by the Government of Haiti under subsection 
     (a) and shall seek to reach agreement with the Government of 
     Haiti for the restoration and future sustainable use of those 
     areas.
       ``(c) Grant Program.--
       ``(1) Grants authorized.--The Administrator of the Agency 
     for International Development is authorized to make grants, 
     in consultation with the International Forestry Division of 
     the Department of Agriculture and on such terms and 
     conditions as may be necessary, to nongovernmental 
     organizations for the purchase on the open market of 
     discounted commercial debt of the Government of Haiti in 
     exchange for commitments by the Government of Haiti to 
     restore tropical forests identified by the Government under 
     subsection (a) or for commitments to develop plans for 
     sustainable use of such tropical forests.
       ``(2) Management of protected areas.--Each recipient of a 
     grant under this subsection shall participate in the ongoing 
     management of the area or areas protected pursuant to such 
     grant.

[[Page 13950]]

       ``(3) Retention of proceeds.--Notwithstanding any other 
     provision of law, a grantee (or any subgrantee) of the grants 
     referred to in section (a) may retain, without deposit in the 
     Treasury of the United States and without further 
     appropriation by Congress, interest earned on the proceeds of 
     any resulting debt-for-nature exchange pending the 
     disbursements of such proceeds and interest for approved 
     program purposes, which may include the establishment of an 
     endowment, the income of which is used for such purposes.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.
                                 ______
                                 
      By Mr. BINGAMAN:
  S. 1185. A bill to amend titles XVIII and XIX of the Social Security 
Act to ensure that Low-income beneficiaries have improved access to 
health care under the Medicare and Medicaid programs; to the Committee 
on Finance.
  Mr. BINGAMAN. Mr. President, I rise today to introduce the Medicare 
Financial Stability for Beneficiaries Act of 2009.
  This legislation would ensure that low-income Medicare beneficiaries 
can access the benefits to which they are entitled through one of the 
Medicare Savings Programs, MSP, and/or the Part D Low-Income Subsidy, 
LIS.
  More than 13 million Medicare beneficiaries have incomes below 150 
percent of the Federal Poverty Level, FPL, and are eligible for 
assistance with their Medicare costs. Another 6 million have incomes 
under 200 percent FPL. These nearly 20 million beneficiaries are poorer 
than other Medicare beneficiaries. They also tend to be sicker, more 
isolated and have limited educations. These populations are more in 
need of medical and other health-related services, and they benefit in 
both access and health outcomes from financial assistance with their 
out-of-pocket costs.
  Although seniors and younger people with disabilities would benefit 
tremendously from greater access to needed health care services and 
financial savings, the Congressional Budget Office has estimated that 
about 67 percent to 87 percent of individuals eligible for various MSP 
services do not receive benefits. Additionally, the Centers for 
Medicare & Medicaid Services state that more than 13 million 
individuals are eligible for Part D LIS but only about 9 million are 
enrolled. Most of those 9 million get the subsidy automatically without 
having to apply, due to their eligibility for other programs.
  The lives of low-income beneficiaries would improve significantly 
with improved access to the financial assistance provided by these 
important programs. Barriers to enrollment in MSP and LIS include: lack 
of effective outreach, lack of knowledge of the programs, language 
issues, social and physical isolation, restrictive assets limits, 
income and asset documentation complexities, and other daunting 
application requirements. Another major barrier is the lack of 
alignment of eligibility rules and application processes between MSP 
and LIS, although both programs serve the same general population.
  The Medicare Financial Stability for Beneficiaries Act of 2009 
decreases these barriers through:
  1. Stabilizing programs by eliminating the recurring short-term re 
authorizations of one of the MSPs--the Qualified Individual, QI, 
program and the roller-coaster eligibility/loss of eligibility some 
beneficiaries face due to the effects of the subsidies on eligibility 
for other benefits.
  2. Increasing access to financial assistance for low-income 
beneficiaries. Research supports the conclusion that financial 
assistance results in greater access and better health outcomes for 
low-income beneficiaries. Currently full assistance is available only 
for those beneficiaries with incomes up to 135 percent of the Federal 
Poverty Level, 135 percent FPL is $1218/month for an individual, and 
very limited assets, about $8,000 for an individual); much more limited 
assistance is available for those with incomes up to 150 percent of 
FPL. People with low incomes but some savings may be disqualified 
altogether. Our bill increases income eligibility to 150 percent of FPL 
for full benefits and 200 percent FPL for partial benefits and uses a 
single asset standard for all programs of $27,500 for an individual. 
Increasing the asset test for both MSP and LIS and increasing income 
eligibility levels will improve health outcomes for millions more 
seniors and younger people with disabilities.
  3. Aligning the rules for MSP and LIS programs and authorizing cross-
deeming so that qualifying for one program would automatically qualify 
an individual for the other programs. Currently, income and asset 
eligibility rules for MSP and LIS are similar, but not identical. 
Individuals eligible for MSP benefits are deemed eligible for LIS, 
without having to apply or take any other action. The reverse, however, 
is not true. Greater alignment of the rules of both programs makes 
cross-deeming sensible, and ensures that individuals will receive both 
benefits regardless of where they first seek assistance. The 
legislation will also assist LIS beneficiaries in receiving 
Supplemental Nutritional Assistance Program, SNAP, food stamp, and vice 
versa.
  4. Simplifying outreach and enrollment for low-income Medicare 
programs by authorizing the Social Security Administration to have 
access to Internal Revenue Service records to identify potentially 
eligible beneficiaries; by making more materials, including 
applications, available in additional languages; and by other 
simplifications of the application process. These provisions will 
benefit the millions of Americans who desperately need assistance, and 
will cut down on unnecessary and duplicative work for the Social 
Security Administration and for State Medicaid agencies.
  There is strong support for this important legislation from many 
organizations including the American Association of Retired Persons, 
National Senior Citizens Law Center, Medicare Rights Center, Center for 
Medicare Advocacy, Inc, Families USA, National Council on Aging, 
National Patient Advocate Foundation, American Federation of Labor and 
Congress of Industrial Organizations, AFL-CIO, and the National 
Committee to Preserve Social Security and Medicare.
  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. 1185

       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 ``Medicare 
     Financial Stability for Beneficiaries Act of 2009''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Eligibility for other programs.
Sec. 3. Cost-sharing protections for low-income subsidy-eligible 
              individuals.
Sec. 4. Modification of resource standards for determination of 
              eligibility for LIS; no consideration of pension or 
              retirement plan in determination of resources.
Sec. 5. Increase in income levels for eligibility.
Sec. 6. Effective date of MSP benefits.
Sec. 7. Expanding special enrollment process to individuals eligible 
              for an income-related subsidy.
Sec. 8. Enhanced cost-sharing protections for full-benefit dual 
              eligible individuals and qualified medicare 
              beneficiaries.
Sec. 9. Two-way deeming between Medicare Savings Program and Low-Income 
              Subsidy Program.
Sec. 10. Improving linkages between health programs and snap.
Sec. 11. Expediting low-income subsidies under the Medicare 
              prescription drug program.
Sec. 12. Enhanced oversight and enforcement relating to reimbursements 
              for retroactive LIS enrollment.
Sec. 13. Intelligent assignment in enrollment.
Sec. 14. Medicare enrollment assistance.
Sec. 15. QMB buy-in of part A and part B premiums.
Sec. 16. Increasing availability of MSP applications through 
              availability on the internet and designation of preferred 
              language.
Sec. 17. State Medicaid agency consideration of low-income subsidy 
              application and data transmittal.

[[Page 13951]]



     SEC. 2. ELIGIBILITY FOR OTHER PROGRAMS.

       (a) LIS.--Section 1860D-14(a)(3) of the Social Security Act 
     (42 U.S.C. 1395w-114(a)(3)), as amended by section 116 of the 
     Medicare Improvements for Patients and Providers Act of 2008 
     (Public Law 110-275), is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subparagraph (F)'' and inserting 
     ``subparagraphs (F) and (H)''; and
       (2) by adding at the end the following new subparagraph:
       ``(H) Disregard of premium and cost-sharing subsidies for 
     purposes of federal and state programs.--Notwithstanding any 
     other provision of law, any premium or cost-sharing subsidy 
     with respect to a subsidy-eligible individual under this 
     section shall not be considered income or resources in 
     determining eligibility for, or the amount of assistance or 
     benefits provided under, any other public benefit provided 
     under Federal law or the law of any State or political 
     subdivision thereof.''.
       (b) MSP.--Section 1905(p) of the Social Security Act (42 
     U.S.C. 1396d(p)) is amended--
       (1) by redesignating paragraph (6) as paragraph (7); and
       (2) by inserting after paragraph (5) the following new 
     paragraph:
       ``(6) Notwithstanding any other provision of law, any 
     medical assistance for some or all medicare cost-sharing 
     under this title shall not be considered income or resources 
     in determining eligibility for, or the amount of assistance 
     or benefits provided under, any other public benefit provided 
     under Federal law or the law of any State or political 
     subdivision thereof''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to eligibility for benefits on or after January 
     1, 2010.

     SEC. 3. COST-SHARING PROTECTIONS FOR LOW-INCOME SUBSIDY-
                   ELIGIBLE INDIVIDUALS.

       (a) In General.--Section 1860D-14(a) of the Social Security 
     Act (42 U.S.C. 1395w-114(a)) is amended--
       (1) in paragraph (1)(D), by adding at the end the following 
     new clause:
       ``(iv) Overall limitation on cost-sharing.--In the case of 
     all such individuals, a limitation on aggregate cost-sharing 
     under this part for a year not to exceed 2.5 percent of 
     income.''; and
       (2) in paragraph (2), by adding at the end the following 
     new subparagraph:
       ``(F) Overall limitation on cost-sharing.--A limitation on 
     aggregate cost-sharing under this part for a year not to 
     exceed 2.5 percent of income.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply as of January 1, 2010.

     SEC. 4. MODIFICATION OF RESOURCE STANDARDS FOR DETERMINATION 
                   OF ELIGIBILITY FOR LIS; NO CONSIDERATION OF 
                   PENSION OR RETIREMENT PLAN IN DETERMINATION OF 
                   RESOURCES.

       (a) Eliminating the Bifurcation of Resource Standards.--
       (1) In general.--Section 1860D-14(a)(3)(A)(iii) of the 
     Social Security Act (42 U.S.C. 1395w-114(a)(3)(A)(iii)) is 
     amended by striking ``meets the'' and all that follows 
     through the period at the end and inserting ``meets--

       ``(I) in the case of determinations made before January 1, 
     2011, the resource requirement described in subparagraph (D) 
     or (E); and
       ``(II) in the case of determinations made on or after 
     January 1, 2011, the resource requirement described in 
     subparagraph (E).''.

       (2) Conforming amendment.--Section 1860D-14(a)(3)(D)(ii) of 
     the Social Security Act (42 U.S.C. 1395w-114(a)(3)(D)(ii)) is 
     amended by inserting ``(before 2011)'' after ``a subsequent 
     year''.
       (b) Increasing the Applicable Resource Standard.--Section 
     1860D-14(a)(3)(E) of the Social Security Act (42 U.S.C. 
     1395w-114(a)(3)(E)(i)) is amended--
       (1) in the heading, by striking ``Alternative'' and 
     inserting ``Applicable'';
       (2) in clause (i)--
       (A) in subclause (I), by striking ``and'' at the end;
       (B) in subclause (II)--
       (i) by inserting ``(before 2011)'' after ``a subsequent 
     year'';
       (ii) by striking the period at the end and inserting a 
     semicolon; and
       (iii) by inserting before the flush sentence at the end the 
     following new subclauses:

       ``(III) for 2011, $27,500 (or $55,000 in the case of the 
     combined value of the individual's assets or resources and 
     the assets or resources of the individual's spouse); and
       ``(IV) for a subsequent year the dollar amounts specified 
     in this subclause (or subclause (III)) for the previous year 
     increased by the annual percentage increase in the consumer 
     price index (all items; U.S. city average) as of September of 
     such previous year.''; and

       (C) in the flush sentence at the end, by inserting ``or 
     (IV)'' after ``subclause (II)''.
       (c) Exclusion of Pension and Retirement Benefits From 
     Resources.--
       (1) In general.--Section 1860D-14(a)(3) of the Social 
     Security Act (42 U.S.C. 1395w-114(a)(3)), as amended by 
     section 2, is amended--
       (A) in subparagraph (E)(i), in the matter preceding 
     subclause (I), by inserting ``and the pension or retirement 
     plan exclusion provided under subparagraph (I)'' after 
     ``(G)''; and
       (B) by adding at the end the following new subparagraph:
       ``(I) Pension and retirement benefits exclusion.--In 
     determining the resources of an individual (and the eligible 
     spouse of the individual, if any) under section 1613 for 
     purposes of subparagraph (E) no balance in, or benefits 
     received under, an employee pension benefit plan (as defined 
     in section 3 of the Employee Retirement Income Security Act 
     of 1974) shall be taken into account.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to determinations made on or after January 1, 
     2011.
       (d) Application of Applicable Resource Standard Under 
     Medicare Savings Program and Exemptions From Income and 
     Resources.--
       (1) Application of applicable resource standard and 
     exemptions from resources.--Section 1905(p)(1)(C) of the 
     Social Security Act (42 U.S.C. 1396d(p)(1)(C)) is amended--
       (A) by inserting ``without taking into account any part of 
     the value of any life insurance policy or any balance in, or 
     benefits received under, an employee pension benefit plan (as 
     defined in section 3 of the Employee Retirement Income 
     Security Act of 1974)'' after ``(as so determined''; and
       (B) by striking ``subparagraph (D)'' and all that follows 
     through ``section)'' and inserting ``section 1860D-
     14(a)(3)(E)''.
       (2) Exemption of in-kind support and maintenance.--
       (A) In general.--Section 1905(p)(1)(B) of the Social 
     Security Act (42 U.S.C. 1396d(p)(1)(B)) is amended by 
     inserting ``and except that support and maintenance furnished 
     in kind shall not be counted as income'' after ``(2)(D)''.
       (B) Conforming amendment.--Section 1860D-14(a)(3)(C)(i) of 
     the Social Security Act (42 U.S.C. 1395w-114(a)(3)(C)(i)) is 
     amended by striking ``and except that support and maintenance 
     furnished in kind shall not be counted as income''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to determinations made on or after January 1, 
     2011.
       (e) Clarification Relating to Including Retirement Benefits 
     as Income.--Nothing in subparagraph (I) of section 1860D-
     14(a)(3) of the Social Security Act (42 U.S.C. 1395w-
     114(a)(3)), as added by subsection (c)(1), or section 
     1905(p)(1)(C) of such Act (42 U.S.C. 1396d(p)(1)(C)), as 
     amended by subsection (d)(1), shall be construed as affecting 
     the inclusion of retirement benefits as income under section 
     1612(a)(2)(B) of such Act (42 U.S.C. 1382a(a)(2)(B)).

     SEC. 5. INCREASE IN INCOME LEVELS FOR ELIGIBILITY.

       (a) LIS.--
       (1) In general.--Section 1860D-14(a) of the Social Security 
     Act (42 U.S.C. 1395w-114(a)) is amended--
       (A) in the subsection heading, by striking ``150'' and 
     inserting ``200'';
       (B) in paragraph (1)--
       (i) in the heading, by striking ``135'' and inserting 
     ``150''; and
       (ii) in the matter preceding subparagraph (A), by striking 
     ``135'' and inserting ``150'';
       (C) in paragraph (2)--
       (i) in the heading, by striking ``150'' and inserting 
     ``200''; and
       (ii) in subparagraph (A)--

       (I) by striking ``135'' and inserting ``150''; and
       (II) by striking ``150'' and inserting ``200''; and

       (D) in paragraph (3)(A)(ii), by striking ``150'' and 
     inserting ``200''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to determinations made on or after January 1, 
     2011.
       (b) MSP.--
       (1) Increase to 150 percent of fpl for qualified medicare 
     beneficiaries.--
       (A) In general.--Section 1905(p)(2) of the Social Security 
     Act (42 U.S.C. 1396d(p)(2)) is amended--
       (i) in subparagraph (A), by striking ``100 percent'' and 
     inserting ``150 percent'';
       (ii) in subparagraph (B)--

       (I) by striking ``and'' at the end of clause (ii);
       (II) by striking the period at the end of clause (iii) and 
     inserting ``, and''; and
       (III) by adding at the end the following:

       ``(iv) January 1, 2011, is 150 percent.''; and
       (iii) in subparagraph (C)--

       (I) by striking ``and'' at the end of clause (iii);
       (II) by striking the period at the end of clause (iv) and 
     inserting ``, and''; and
       (III) by adding at the end the following:

       ``(v) January 1, 2011, is 150 percent.''.
       (B) Application of income test based on family size.--
     Section 1905(p)(2)(A) of such Act (42 U.S.C. 1396d(p)(2)(A)) 
     is amended by adding at the end the following: ``For purposes 
     of this subparagraph, family size means the applicant, the 
     spouse (if any) of the applicant if living in the same 
     household as the applicant, and the number of individuals who 
     are related to the applicant (or applicants), who are living 
     in the same household as the applicant (or applicants), and 
     who are dependent on the applicant (or the applicant's 
     spouse) for at least one-half of their financial support.''.

[[Page 13952]]

       (2) Expansion of specified low-income medicare beneficiary 
     (slmb) program.--
       (A) Eligibility of individuals with incomes below 200 
     percent of fpl.--Section 1902(a)(10)(E) of the Social 
     Security Act (42 U.S.C. 1396b(a)(10)(E)) is amended--
       (i) by adding ``and'' at the end of clause (ii);
       (ii) in clause (iii)--

       (I) by striking ``and 120 percent in 1995 and years 
     thereafter'' and inserting ``, or 120 percent in 1995 and any 
     succeeding year before 2011, or 200 percent beginning in 
     2011''; and
       (II) by striking ``and'' at the end; and

       (iii) by striking clause (iv).
       (B) Revision to description.--Section 1902(a)(10)(E)(iii) 
     of the Social Security Act (42 U.S.C. 1396b(a)(10)(E)(iii)) 
     is amended by striking ``who would be qualified medicare'' 
     and all that follows through ``but is less than'' and 
     inserting ``whose income (as determined in accordance with 
     subparagraphs (B) and (C) of section 1905(p)(1)) is less 
     than''.
       (C) References.--Section 1905(p)(1) of such Act (42 U.S.C. 
     1396d(p)(1)) is amended by adding at and below subparagraph 
     (C) the following: ``The term `specified low-income medicare 
     beneficiary' means an individual described in section 
     1902(a)(10)(E)(iii).''.
       (3) Providing 100 percent federal financing.--The third 
     sentence of section 1905(b) of such Act (42 U.S.C. 1396d(b)) 
     is amended by inserting before the period at the end the 
     following: ``, with respect to medical assistance for 
     medicare cost-sharing provided under clause (i) of section 
     1902(a)(10)(E) for individuals with incomes greater than 100 
     percent of the official poverty line described in subsection 
     (p)(2)(A) and less than or equal to 150 percent of such 
     official poverty line, and with respect to medical assistance 
     for medicare cost-sharing provided under clause (iii) of such 
     section''.
       (4) Effective date.--
       (A) Except as provided in subparagraph (B), the amendments 
     made by this subsection shall take effect on January 1, 2011, 
     and, with respect to title XIX of the Social Security Act, 
     shall apply to calendar quarters beginning on or after 
     January 1, 2011.
       (B) In the case of a State plan for medical assistance 
     under title XIX of the Social Security Act which the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order for the plan to meet the additional 
     requirements imposed by the amendments made by this 
     subsection, the State plan shall not be regarded as failing 
     to comply with the requirements of such title solely on the 
     basis of its failure to meet these additional requirements 
     before the first day of the first calendar quarter beginning 
     after the close of the first regular session of the State 
     legislature that begins after the date of the enactment of 
     this Act. For purposes of the previous sentence, in the case 
     of a State that has a 2-year legislative session, each year 
     of such session shall be deemed to be a separate regular 
     session of the State legislature.

     SEC. 6. EFFECTIVE DATE OF MSP BENEFITS.

       (a) In General.--
       (1) Effective date of msp benefits.--Section 1905(a) of the 
     Social Security Act (42 U.S.C. 1396d(a)) is amended, in the 
     matter preceding paragraph (1), by striking ``assistance or, 
     in the case of medicare cost-sharing'' and all that follows 
     through ``beneficiary)'' and inserting ``assistance)''.
       (2) Conforming amendments.--(A) Section 1902(e)(8) of the 
     Social Security Act (42 U.S.C. 1396a(e)(8)) is amended by 
     striking the first sentence.
       (B) Section 1848(g)(3) of such Act (42 U.S.C. 1395w-
     4(g)(3)) is amended by adding at the end the following new 
     subparagraph:
       ``(C) Treatment of retroactive eligibility.--In the case of 
     an individual who is determined to be eligible for medical 
     assistance described in subparagraph (A) retroactively, the 
     Secretary shall provide a process whereby claims which are 
     submitted for services furnished during the period of 
     retroactive eligibility and during a month in which the 
     individual otherwise would have been eligible for such 
     assistance and which were not submitted in accordance with 
     such subparagraph are resubmitted and re-processed in 
     accordance with such subparagraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2010, but shall not result in 
     eligibility for benefits for medicare cost-sharing for months 
     before January 2010.

     SEC. 7. EXPANDING SPECIAL ENROLLMENT PROCESS TO INDIVIDUALS 
                   ELIGIBLE FOR AN INCOME-RELATED SUBSIDY.

       (a) In General.--Section 1860D-1(b)(1)(C) of the Social 
     Security Act (42 U.S.C. 1395w-101(b)(1)(C)) is amended--
       (1) by striking ``a full-benefit dual eligible individual 
     (as defined in section 1935(c)(6))'' and inserting ``a 
     subsidy-eligible individual (as defined in section 1860D-
     14(a)(3))''; and
       (2) by striking ``1860D-14(a)(1)(A)'' and inserting 
     ``subsection (a)(1)(A) or (b)(1)(A) of section 1860D-14, as 
     applicable''
       (b) Effective Date.--The amendments made by this section 
     shall apply to enrollments on or after January 1, 2010.

     SEC. 8. ENHANCED COST-SHARING PROTECTIONS FOR FULL-BENEFIT 
                   DUAL ELIGIBLE INDIVIDUALS AND QUALIFIED 
                   MEDICARE BENEFICIARIES.

       (a) Elimination of Part D Cost-Sharing for Certain Non-
     Institutionalized Full-Benefit Dual Eligible Individuals.--
     Section 1860D-14(a)(1)(D)(i) of the Social Security Act (42 
     U.S.C. 1395w-114(a)(1)(D)(i)) is amended--
       (1) in the heading, by striking ``Institutionalized 
     individuals.--In'' and inserting ``Elimination of cost-
     sharing for certain full-benefit dual eligible individuals.--

       ``(I) Institutionalized individuals.--In''; and

       (2) by adding at the end the following new subclause:

       ``(II) Certain other individuals.--In the case of an 
     individual who is a full-benefit dual eligible individual who 
     is receiving home and community based care (whether under 
     section 1915 or under a waiver under section 1115), the 
     elimination of any beneficiary coinsurance described in 
     section 1860D-2(b)(2) (for all amounts through the total 
     amount of expenditures at which benefits are available under 
     section 1860D-2(b)(4)).''.

       (b) Repeal of Authority for States to Pay Medicare Cost-
     Sharing at Medicaid Rates and Provision of Medical Assistance 
     to Dual Eligibles in MA Plans.--
       (1) Repeal of authority for states to pay medicare cost-
     sharing at medicaid rates.--Section 1902(n) of the Social 
     Security Act (42 U.S.C. 1396a(n)) is amended--
       (A) by striking paragraph (2);
       (B) by redesignating paragraph (3) as paragraph (2);
       (C) in paragraph (2), as redesignated by subparagraph (B)--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``In the case in which a State's payment 
     for'' and inserting ``With respect to''; and
       (II) by striking ``with respect to an item or service is 
     reduced or eliminated through the application of paragraph 
     (2)'' and inserting ``for an item or service''; and

       (ii) in subparagraph (A), by striking ``(if any)''; and
       (D) by adding at the end the following new paragraph:
       ``(3) Each State shall establish procedures for receiving 
     and processing claims for payment for medicare cost-sharing 
     with respect to items or services furnished to qualified 
     medicare beneficiaries by providers of services and suppliers 
     under title XVIII who are not participating providers under 
     the State plan.''.
       (2) Provision of medical assistance to dual eligibles in ma 
     plans.--Section 1902(n) of the Social Security Act (42 U.S.C. 
     1396a(n)), as amended by paragraph (1), is amended by adding 
     at the end the following new paragraph:
       ``(4)(A) Each State shall--
       ``(i) identify those individuals who are eligible for 
     medical assistance for medicare cost-sharing and who are 
     enrolled with a Medicare Advantage plan under part C of title 
     XVIII; and
       ``(ii) for the individuals so identified, provide for 
     payment of medical assistance for the medicare cost-sharing 
     (including cost-sharing under a Medicare Advantage plan) to 
     which they are entitled.
       ``(B)(i) The Inspector General of the Department of Health 
     and Human Services shall examine, not later than one year 
     after the date of the enactment of this paragraph and every 3 
     years thereafter, whether States are providing for medical 
     assistance for medicare cost-sharing for individuals enrolled 
     in Medicare Advantage plans in accordance with this title. 
     The Inspector General shall submit to the Secretary a report 
     on such examination and a finding as to whether States are 
     failing to provide such medical assistance.
       ``(ii) If a report under clause (i) includes a finding that 
     States are failing to provide such medical assistance, not 
     later than 60 days after the date of receiving such report 
     the Secretary shall submit to Congress a report that includes 
     a plan of action on how to enforce such requirement.''.
       (3) Conforming amendments.--
       (A) Provider agreements.--Section 1866(a)(1)(A)(ii) of the 
     Social Security Act (42 U.S.C. 1395cc(a)(1)(A)(ii)) is 
     amended by striking ``1902(n)(3)'' and inserting 
     ``1902(n)(2)''.
       (B) Nonparticipating providers.--Section 1848(g)(3)(A) of 
     the Social Security Act (42 U.S.C. 1395w-4(g)(3)(A)) is 
     amended by striking ``1902(n)(3)(A)'' and inserting 
     ``1902(n)(2)(A)''.
       (4) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall take effect on 
     the date of enactment of this Act.
       (B) Exception.--The amendment made by paragraph (2) shall 
     be effective and apply as if included in the enactment of the 
     Medicare Prescription Drug, Improvement, and Modernization 
     Act of 2003 (Public Law 108-173).

     SEC. 9. TWO-WAY DEEMING BETWEEN MEDICARE SAVINGS PROGRAM AND 
                   LOW-INCOME SUBSIDY PROGRAM.

       (a) Low-Income Subsidy Program.--Section 1860D-14(a)(3) of 
     the Social Security Act (42 U.S.C. 1395w-104(a)(3)), as 
     amended by section 4, is amended by adding at the end the 
     following new subparagraph:
       ``(J) Deemed treatment for qualified medicare beneficiaries 
     and specified low-income medicare beneficiaries.--

[[Page 13953]]

       ``(i) Qmbs eligible for full subsidy.--A part D eligible 
     individual who has been determined for purposes of title XIX 
     to be a qualified medicare beneficiary is deemed, for 
     purposes of this part and without the need to file any 
     additional application, to be a subsidy eligible individual 
     described in paragraph (1).
       ``(ii) Slmbs eligible for partial subsidy.--A part D 
     eligible individual who has been determined to be a specified 
     low-income medicare beneficiary (as defined in section 
     1905(p)(1)) and who is not described in paragraph (1) is 
     deemed, for purposes of this part and without the need to 
     file any additional application, to be a subsidy eligible 
     individual who is not described in paragraph (1).''.
       (b) Medicare Savings Program.--Section 1905(p) of the 
     Social Security Act (42 U.S.C. 1396d(p)), as amended by 
     section 4, is amended--
       (1) by redesignating paragraph (8) as paragraph (9); and
       (2) by inserting after paragraph (7) the following new 
     paragraph:
       ``(8) An individual who has been determined eligible for 
     premium and cost-sharing subsidies under--
       ``(A) section 1860D-14(a)(1) is deemed, for purposes of 
     this title and without the need to file any additional 
     application, to be a qualified medicare beneficiary for 
     purposes of this title; or
       ``(B) section 1860D-14(a)(2) is deemed, for purposes of 
     this title and without the need to file any additional 
     application, to qualify for medical assistance as a specified 
     low-income medicare beneficiary (described in section 
     1902(a)(10)(E)(iii)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to eligibility for months beginning on or after 
     January 2010.

     SEC. 10. IMPROVING LINKAGES BETWEEN HEALTH PROGRAMS AND SNAP.

       (a) Low-Income Part D Subsidy Program.--Section 1144(c) of 
     the Social Security Act (42 U.S.C. 1320b-14(c)) is amended--
       (1) in paragraph (1)(C) by striking ``an application for 
     benefits under the Medicare Savings Program.'' and inserting 
     ``applications for benefits under the Medicare Savings 
     Program and the supplemental nutrition assistance program.'';
       (2) by striking paragraph (3) and inserting the following:
       ``(3) Transmittal of data to states.--
       ``(A) In general.--Beginning on January 1, 2010, with the 
     consent of an individual completing an application for 
     benefits described in paragraph (1)(B), the Commissioner 
     shall electronically transmit data from such application--
       ``(i) to the appropriate State Medicaid agency, as 
     determined by the Commissioner, which transmittal shall 
     initiate an application of the individual for benefits under 
     the Medicare Savings Program with the State Medicaid agency; 
     and
       ``(ii) to the appropriate State agency which administers 
     benefits under the supplemental nutrition assistance program, 
     as determined by the Commissioner, which transmittal shall 
     initiate an application of the individual for benefits under 
     the supplemental nutrition assistance program with the State 
     agency that administers that program.
       ``(B) Consultation regarding content, time, form, frequency 
     and manner of transmission.--In order to ensure that such 
     data transmittal provides effective assistance for purposes 
     of State adjudication of applications for benefits under the 
     Medicare Savings Program and the supplemental nutrition 
     assistance program, the Commissioner shall consult with the 
     Secretary after the Secretary has consulted with the States, 
     regarding the content, form, frequency, and manner in which 
     data (on a uniform basis for all States) shall be transmitted 
     under this paragraph.'';
       (3) in paragraph (5), by adding at the end the following 
     new subparagraph:
       ``(D) Supplemental nutrition assistance program 
     administrative costs.--The costs of the Social Security 
     Administration's work related to the supplemental nutrition 
     assistance program under this subsection shall be eligible 
     for reimbursement under section 11(j)(2)(C) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2020(j)(2)(C)). To the extent 
     necessary the Commissioner and the Secretary of Agriculture 
     shall revise any memoranda of understanding in effect under 
     such section.''; and
       (4) by adding at the end the following new paragraph:
       ``(8) Supplemental nutrition assistance program defined.--
     For purposes of this subsection, the term `supplemental 
     nutrition assistance program' means the program of temporary 
     benefits authorized under section 11(v) of the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2020(v)).''.
       (b) Temporary Supplemental Nutrition Assistance Benefits.--
     Section 11 of the Food and Nutrition Act of 2008 (7 U.S.C. 
     2020) is amended by adding at the end the following:
       ``(v) Temporary Benefits for Medicare Part D Low Income 
     Subsidy Applicants.--
       ``(1) Definition of medicare part d low income subsidy 
     applicant.--In this subsection, the term `Medicare part D low 
     income subsidy applicant' means an individual, along with any 
     other family members, whose low income subsidy application 
     information has been electronically transmitted to the State 
     agency under section 1144(c)(3) of the Social Security Act 
     (42 U.S.C. 1320b-14(c)(3)).
       ``(2) Provision of temporary benefits.--A State agency 
     shall provide temporary supplemental nutrition assistance 
     program benefits to a Medicare part D low income subsidy 
     applicant whose--
       ``(A) income does not exceed 150 percent of the poverty 
     line (as determined in accordance with section 5(c)(1)); and
       ``(B) financial resources do not exceed the limit in effect 
     in the State for such households under section 5.
       ``(3) Determination based on medicare information.--For 
     purposes of determining eligibility under paragraph (2) and 
     the amount of temporary benefits under paragraph (5), 
     information on household members, household income, and 
     household resources from the Medicare part D low income 
     subsidy application as transmitted to the State agency under 
     section 1144(c)(3) of the Social Security Act (42 U.S.C. 
     1320b-14(c)(3)) shall satisfy the requirements of this Act 
     with regard to--
       ``(A) the members of the household under section 3(n); and
       ``(B) the gross income and financial resources of the 
     household under section 5.
       ``(4) Temporary benefit period.--A household shall receive 
     temporary supplemental nutrition assistance benefits under 
     this subsection for a period of not more than 2 months.
       ``(5) Temporary benefit amount.--
       ``(A) In general.--During the temporary benefit period 
     under paragraph (4), except as provided in subparagraph (B), 
     a household shall receive a monthly amount of supplemental 
     nutrition assistance program benefits calculated under 
     section 8(a).
       ``(B) Calculation.--In calculating benefits under 
     subparagraph (A)--
       ``(i) the benefits shall be determined based on the gross 
     income of the household rather than net income; and
       ``(ii) the minimum allotment described in the proviso in 
     section 8(a) shall be equal to 40 percent of the cost of the 
     thrifty food plan for a household containing 1 member, as 
     determined by the Secretary under section 3, rounded to the 
     nearest whole dollar increment.
       ``(6) Determination of future eligibility.--During the 
     temporary benefit period under paragraph (4), the State 
     agency shall provide to the household--
       ``(A) an application to apply for benefits under the other 
     provisions of this Act; and
       ``(B) an opportunity to complete the application process by 
     the month immediately following the temporary benefit period, 
     without a delay or suspension in the benefits of the 
     household.
       ``(7) Limitation.--This subsection shall not apply to 
     individuals who--
       ``(A) are members of households that currently receive 
     benefits under this Act; or
       ``(B) have received benefits under this subsection in the 
     preceding 12-month period.''.
       (c) Medicare Savings Program Applications.--
       (1) In general.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a(a)) is amended--
       (A) in paragraph (72), by striking ``and'' at the end;
       (B) in paragraph (73), by striking the period at the end 
     and inserting ``; and''; and
       (C) by inserting after paragraph (73) the following new 
     paragraph:
       ``(74) provide that the State coordinates with the State 
     agency that administers benefits under the supplemental 
     nutrition assistance program established under the Food and 
     Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) to ensure that 
     individuals applying for medical assistance provided under 
     section 1902(a)(10)(E), as described in sections 1905(p) and 
     1933, have the opportunity to apply for, establish 
     eligibility for, and, if eligible, receive supplemental 
     nutrition assistance program benefits.''.
       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by paragraph (1) take effect on the date 
     that is 1 year after the date of enactment of this Act.
       (B) Extension of effective date for state law amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) which the Secretary of 
     Health and Human Services determines requires State 
     legislation in order for the plan to meet the additional 
     requirements imposed by the amendments made by paragraph (1), 
     the State plan shall not be regarded as failing to comply 
     with the requirements of such title solely on the basis of 
     its failure to meet these additional requirements before the 
     first day of the first calendar quarter beginning after the 
     close of the first regular session of the State legislature 
     that begins after the date of enactment of this Act. For 
     purposes of the previous sentence, in the case of a State 
     that has a 2-year legislative session, each year of the 
     session is considered to be a separate regular session of the 
     State legislature.
       (3) Report to congress.--Not later than 2 years after the 
     date of enactment of this Act, the Secretary of Health and 
     Human

[[Page 13954]]

     Services shall submit to Congress a report on the process 
     each State uses to meet the requirements under section 
     1902(a)(74) of the Social Security Act, as added by 
     subsection (c).

     SEC. 11. EXPEDITING LOW-INCOME SUBSIDIES UNDER THE MEDICARE 
                   PRESCRIPTION DRUG PROGRAM.

       (a) Targeted Outreach for Low-Income Subsidies.--
       (1) In general.--Section 1860D-14 of the Social Security 
     Act (42 U.S.C. 1395w-114) is amended by adding at the end the 
     following new subsection:
       ``(e) Targeted Outreach for Low-Income Subsidies.--
       ``(1) Targeted identification of subsidy-eligible 
     individuals.--
       ``(A) In general.--The Commissioner of Social Security 
     shall provide for the identification of individuals who are 
     potentially eligible for low-income assistance under this 
     section through requests to the Secretary of the Treasury in 
     accordance with the criterion established under section 
     6103(l)(21) of the Internal Revenue Code of 1986 for 
     information indicating whether the individual involved is 
     likely eligible for such assistance.
       ``(B) Initiation of identifications.--Not later than 90 
     days after the date of the enactment of this subsection, the 
     Commissioner of Social Security shall begin the 
     identification of individuals through the process described 
     in subparagraph (A) and shall, by such date and through such 
     process, submit to the Secretary of the Treasury requests for 
     part D eligible individuals who the Commissioner has 
     identified as potentially eligible for low-income subsidies 
     under this section before such date of enactment.
       ``(2) Notification of potentially eligible individuals.--In 
     the case of each individual identified under paragraph (1) 
     who has not otherwise applied for, or been determined 
     eligible for, benefits under this section (or who has applied 
     for and been determined ineligible for such benefits based on 
     excess income, resources, or both), the Commissioner shall 
     transmit by mail to the individual a letter including the 
     information and application required to be provided under 
     subparagraphs (A), (B), and (D) of section 1144(c)(1).
       ``(3) Follow-up communications.--If an individual to whom a 
     letter is transmitted under paragraph (2) does not 
     affirmatively respond to such letter either by making an 
     enrollment, completing an application, or declining either or 
     both, the Commissioner shall make additional attempts to 
     contact the individual to obtain such an affirmative 
     response.
       ``(4) Use of preferred language in subsequent 
     communications.--In the case an application is completed by 
     an individual pursuant to this subsection in which a language 
     other than English is specified, the Commissioner shall 
     provide that subsequent communications under this part to the 
     individual shall be in such language as needed.
       ``(5) Construction.--Nothing in this subsection shall be 
     construed as precluding the Commissioner from taking 
     additional outreach efforts to enroll eligible individuals 
     under this part and to provide low-income subsidies to 
     eligible individuals.
       ``(6) Maintenance of effort with respect to outreach.--In 
     no case shall the level of effort with respect to outreach to 
     and enrollment of individuals who are potentially eligible 
     for low-income assistance under this section after the date 
     of the enactment of this subsection be less than such level 
     of effort before such date of enactment until at least 90 
     percent of such potentially eligible individuals have 
     affirmatively responded.
       ``(7) GAO report to congress.--Not later than 2 years after 
     the date of the first submission to the Secretary of the 
     Treasury described in paragraph (1)(B), the Comptroller 
     General of the United States shall submit to Congress a 
     report, with respect to the 18-month period following the 
     establishment of the process described in paragraph (1)(A), 
     on--
       ``(A) the extent to which the percentage of individuals who 
     are eligible for low-income assistance under this section but 
     not enrolled under this part has decreased during such 
     period;
       ``(B) how the Commissioner of Social Security has used any 
     savings resulting from the implementation of this section and 
     section 6103(l)(21) of the Internal Revenue Code of 1986 to 
     improve outreach to individual described in subparagraph (A) 
     to increase enrollment of such individuals under this part;
       ``(C) the effectiveness of using information from the 
     Secretary of the Treasury in accordance with section 
     6103(l)(21) of the Internal Revenue Code of 1986 for purposes 
     of indicating whether individuals are eligible for low-income 
     assistance under this section; and
       ``(D) the effectiveness of the outreach conducted by the 
     Commissioner of Social Security based on the data described 
     in subparagraph (C).''.
       (2) Conforming amendment.--Section 1144(c)(1) of the Social 
     Security Act (42 U.S.C. 1320b-14(c)(1)) is amended by 
     inserting ``(including through request to the Secretary of 
     the Treasury pursuant to section 1860D-14(e))'' before ``, 
     the Commissioner shall''.
       (b) Improvements to the Low-Income Subsidy Applications.--
     Section 1860D-14(a)(3) of the Social Security Act (42 U.S.C. 
     1395w-114(a)(3)) is amended--
       (1) in subparagraph (E), by striking clauses (ii) and (iii) 
     and redesignating clause (iv) as clause (ii);
       (2) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (G) and (H), respectively; and
       (3) by inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) Simplified low-income subsidy application and 
     process.--
       ``(i) In general.--The Secretary, jointly with the 
     Commissioner of Social Security, shall--

       ``(I) develop a model, simplified application form and 
     process consistent with clause (ii) for the determination and 
     verification of a part D eligible individual's assets or 
     resources under this paragraph; and
       ``(II) provide such form to States.

       ``(ii) Documentation and safeguards.--Under such process--

       ``(I) the application form shall consist of an attestation 
     under penalty of perjury regarding the level of assets or 
     resources (or combined assets and resources in the case of a 
     married part D eligible individual) and valuations of general 
     classes of assets or resources;
       ``(II) such form shall not require the submittal of 
     additional documentation regarding income or assets;
       ``(III) matters attested to in the application shall be 
     subject to appropriate methods of administrative 
     verification;
       ``(IV) the applicant shall be permitted to authorize 
     another individual to act as the applicant's personal 
     representative with respect to communications under this part 
     and the enrollment of the applicant into a prescription drug 
     plan (or MA-PD plan) and for low-income subsidies under this 
     section; and
       ``(V) the application form shall allow for the 
     specification of a language (other than English) that is 
     preferred by the individual for subsequent communications 
     with respect to the individual under this part.

       ``(iii) No recovery for certain subsidies improperly 
     paid.--If an individual in good faith and in the absence of 
     fraud is provided low-income subsidies under this section, 
     and if the individual is subsequently found not eligible for 
     such subsidies, there shall be no recovery made against the 
     individual because of such subsidies improperly paid.''.
       (c) Disclosures to Facilitate Identification of Individuals 
     Likely to Be Eligible for the Low-Income Assistance Under the 
     Medicare Prescription Drug Program.--
       (1) In general.--
       Subsection (l) of section 6103 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(21) Disclosure of return information to facilitate 
     identification of individuals likely to be eligible for low-
     income subsidies under medicare prescription drug program.--
       ``(A) In general.--The Secretary, upon written request from 
     the Commissioner of Social Security, shall disclose to 
     officers and employees of the Social Security Administration, 
     with respect to any individual identified by the 
     Commissioner--
       ``(i) whether, based on the criterion determined under 
     subparagraph (B), such individual is likely to be eligible 
     for low-income assistance under section 1860D-14 of the 
     Social Security Act, or
       ``(ii) that, based on such criterion, there is insufficient 
     information available to the Secretary to make the 
     determination described in clause (i).
       ``(B) Criterion.--Not later than 90 days after the date of 
     the enactment of this paragraph, the Secretary, in 
     consultation with the Commissioner of Social Security, shall 
     develop the criterion by which the determination under 
     subparagraph (A)(i) shall be made (and the criterion for 
     determining that insufficient information is available to 
     make such determination). Such criterion may include analysis 
     of information available on such individual's return, the 
     return of such individual's spouse, and any information 
     related to such individual or such individual's spouse which 
     is available on any information return.''.
       (2) Procedures and recordkeeping related to disclosures.--
     Paragraph (4) of section 6103(p) of such Code is amended by 
     striking ``or (17)'' each place it appears and inserting 
     ``(17), or (21)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

     SEC. 12. ENHANCED OVERSIGHT AND ENFORCEMENT RELATING TO 
                   REIMBURSEMENTS FOR RETROACTIVE LIS ENROLLMENT.

       (a) In General.--In the case of a retroactive LIS 
     enrollment beneficiary (as defined in subsection (e)(4)) who 
     is enrolled under a prescription drug plan under part D of 
     title XVIII of the Social Security Act (or an MA-PD plan 
     under part C of such title)--
       (1) the beneficiary (or any eligible third party) is 
     entitled to reimbursement by the plan for covered drug costs 
     (as defined in subsection (e)(1)) incurred by the beneficiary 
     during the retroactive coverage period of the beneficiary in 
     accordance with subsection (b) and in the case of such a 
     beneficiary described in subsection (e)(4)(A)(i), such 
     reimbursement shall be made automatically by the plan upon 
     receipt of appropriate notice

[[Page 13955]]

     the beneficiary is eligible for assistance described in such 
     subsection (e)(4)(A)(i) without further information required 
     to be filed with the plan by the beneficiary;
       (2) the Secretary of Health and Human Services (in this 
     section referred to as the ``Secretary'') shall not make 
     payment to the plan--
       (A) in the case that the beneficiary is described in 
     subsection (e)(4)(A)(i), for premium subsidies and cost 
     sharing subsidies under section 1860D-14 of the Social 
     Security Act (42 U.S.C. 1395w-114) with respect to the 
     provision of prescription drug coverage to the beneficiary 
     during such retroactive period; and
       (B) in the case that the beneficiary is described in 
     subsection (e)(4)(A)(ii), for direct subsidies under section 
     1860D-15(a)(1) of such Act and premium subsidies and cost-
     sharing subsidies under section 1860D-14 of such Act with 
     respect to the provision of prescription drug coverage to the 
     beneficiary during such retroactive period;

     unless the plan demonstrates to the Secretary that the plan 
     has provided timely and accurate reimbursement to the 
     beneficiary (or eligible third party) in accordance with 
     paragraph (1);
       (3) the Secretary shall not make any payment described in 
     paragraph (2) to the plan with respect to such beneficiary 
     for any month of the retroactive enrollment period during 
     which no expenses for covered part D drugs (as defined in 
     section 1860D-2(e) of the Social Security Act (42 U.S.C. 
     1395w-102(e)) were incurred by such beneficiary (or eligible 
     third party on behalf of such beneficiary); and
       (4) any payment owed the plan pursuant to this section, 
     taking into account paragraphs (2) and (3), shall be made at 
     the time the Centers for Medicare & Medicaid Services 
     reconciles payments for the entire plan year following the 
     end of the plan year, and not before such time.
       (b) Administrative Requirements Relating to 
     Reimbursements.--
       (1) Line-item description.--Each reimbursement made by a 
     prescription drug plan or MA-PD plan under subsection (a)(1) 
     shall include a line-item description of the items for which 
     the reimbursement is made.
       (2) Timing of reimbursements.--A prescription drug plan or 
     MA-PD plan must make a reimbursement under subsection (a)(1) 
     to a retroactive LIS enrollment beneficiary, with respect to 
     a claim, not later than 30 days after--
       (A) in the case of a beneficiary described in subsection 
     (e)(4)(A)(i), the date on which the plan receives notice from 
     the Secretary that the beneficiary is eligible for assistance 
     described in such subsection; or
       (B) in the case of a beneficiary described in subsection 
     (e)(4)(A)(ii), the date on which the beneficiary files the 
     claim with the plan.
       (c) Notice Requirements.--
       (1) By secretary of hhs and commission of the social 
     security administration.--The Secretary, jointly with the 
     Commissioner of the Social Security Administration, shall 
     ensure that each retroactive LIS enrollment beneficiary 
     receives, with any letter or notification of eligibility for 
     a low-income subsidy under section 1860D-14 of the Social 
     Security Act, a notice of their right to reimbursement 
     described in subsection (a)(1) for covered drug costs 
     incurred during the retroactive coverage period of the 
     beneficiary. Such notice shall--
       (A) with respect to a beneficiary described in subsection 
     (e)(4)(A)(i), inform the beneficiary of the beneficiary's 
     right to automatic reimbursement as described in subsection 
     (a)(1); and
       (B) with respect to a beneficiary described in subsection 
     (e)(4)(A)(ii), include a description of a clear process that 
     the beneficiary should follow to seek such reimbursement.
       (2) By prescription drug plans.--
       (A) In general.--Each prescription drug plan under part D 
     of title XVIII of the Social Security Act (and MA-PD plan 
     under part C of such title) shall include in a notice from 
     the plan to a retroactive LIS enrollment beneficiary 
     described in subsection (e)(4)(A)(ii) a model notice 
     developed under subparagraph (B) describing the process the 
     beneficiary must follow to seek retroactive reimbursement. 
     Such notice shall include any form required by the plan to 
     complete such reimbursement and shall indicate the period of 
     retroactive coverage for which the beneficiary is eligible 
     for such reimbursement.
       (B) Model notice.--The Secretary, jointly with the 
     Commissioner of Social Security, shall develop a model notice 
     for purposes of subparagraph (A) and shall make such model 
     notice available to all prescription drug plans under part D 
     of title XVIII of the Social Security Act (and MA-PD plans 
     under part C of such title).
       (d) Public Posting to Track Payments.--
       (1) In general.--Not later than one year after the date of 
     the enactment of this Act, the Secretary shall post (and 
     annually update) on the public Internet website of the 
     Department of Health and Human Services information on the 
     total amount of payments made by the Secretary under 
     subsection (a)(2) to prescription drug plans during the most 
     recent plan year for which plan data is available.
       (2) Specific information.--Such information posted--
       (A) in 2010 or in a subsequent year before 2016, shall 
     include information on payments made for years beginning with 
     2006 and ending with the year for which the most current 
     information is available; and
       (B) in 2016 or a subsequent year, shall include information 
     on payments made for at least the 10 previous years.
       (e) Definitions.--In this section:
       (1) Covered drug costs.--The term ``covered drug costs'' 
     means, with respect to a retroactive LIS enrollment 
     beneficiary enrolled under a prescription drug plan under 
     part D of title XVIII of the Social Security Act (or an MA-PD 
     plan under part C of such title), the amount by which--
       (A) the costs incurred by such beneficiary during the 
     retroactive coverage period of the beneficiary for covered 
     part D drugs, premiums, and cost-sharing under such title; 
     exceeds
       (B) such costs that would have been incurred by such 
     beneficiary during such period if the beneficiary had been 
     both enrolled in the plan and recognized by such plan as 
     qualified during such period for the low income subsidy under 
     section 1860D-14 of the Social Security Act to which the 
     individual is entitled.
       (2) Eligible third party.--The term ``eligible third 
     party'' means, with respect to a retroactive LIS enrollment 
     beneficiary, an organization or other third party that paid 
     on behalf of such beneficiary for covered drug costs incurred 
     by such beneficiary during the retroactive coverage period of 
     such beneficiary.
       (3) Retroactive coverage period.--The term ``retroactive 
     coverage period'' means--
       (A) with respect to a retroactive LIS enrollment 
     beneficiary described in paragraph (4)(A)(i), the period--
       (i) beginning on the effective date of the assistance 
     described in such paragraph for which the individual is 
     eligible; and
       (ii) ending on the date the plan effectuates the status of 
     such individual as so eligible; and
       (B) with respect to a retroactive LIS enrollment 
     beneficiary described in paragraph (4)(A)(ii), the period--
       (i) beginning on the date the individual is both entitled 
     to benefits under part A, or enrolled under part B, of title 
     XVIII of the Social Security Act and eligible for medical 
     assistance under a State plan under title XIX of such Act; 
     and
       (ii) ending on the date the plan effectuates the status of 
     such individual as a full-benefit dual eligible individual 
     (as defined in section 1935(c)(6) of such Act).
       (4) Retroactive lis enrollment beneficiary.--
       (A) In general.--The term ``retroactive LIS enrollment 
     beneficiary'' means an individual who--
       (i) is enrolled in a prescription drug plan under part D of 
     title XVIII of the Social Security Act (or an MA-PD plan 
     under part C of such title) and subsequently becomes eligible 
     as a full-benefit dual eligible individual (as defined in 
     section 1935(c)(6) of such Act), an individual receiving a 
     low-income subsidy under section 1860D-14 of such Act, an 
     individual receiving assistance under the Medicare Savings 
     Program implemented under clauses (i), (ii), (iii), and (iv) 
     of section 1902(a)(10)(E) of such Act, or an individual 
     receiving assistance under the supplemental security income 
     program under section 1611 of such Act; or
       (ii) subject to subparagraph (B)(i), is a full-benefit dual 
     eligible individual (as defined in section 1935(c)(6) of such 
     Act) who is automatically enrolled in such a plan under 
     section 1860D-1(b)(1)(C) of such Act.
       (B) Exception for beneficiaries enrolled in rfp plan.--
       (i) In general.--In no case shall an individual described 
     in subparagraph (A)(ii) include an individual who is 
     enrolled, pursuant to a RFP contract described in clause 
     (ii), in a prescription drug plan offered by the sponsor of 
     such plan awarded such contract.
       (ii) RFP contract described.--The RFP contract described in 
     this section is a contract entered into between the Secretary 
     and a sponsor of a prescription drug plan pursuant to the 
     Centers for Medicare & Medicaid Services' request for 
     proposals issued on February 17, 2009, relating to Medicare 
     part D retroactive coverage for certain low income 
     beneficiaries, or a similar subsequent request for proposals.
       (f) GAO Report.--Not later than 24 months after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit to Congress a report on the extent 
     to which the provisions of this section improve reimbursement 
     for covered drug costs to retroactive LIS enrollment 
     beneficiaries and lower the amounts of payments made by the 
     Secretary, with respect to such beneficiaries, to 
     prescription drug plans under part D of title XVIII of the 
     Social Security Act (and MA-PD plans under part C of such 
     title).
       (g) Report to Congress.--In the case that an RFP contract 
     described in subsection (e)(4)(B)(ii) is awarded, not later 
     than two years after the effective date of such contract, the 
     Secretary of Health and Human Services shall submit to 
     Congress a report evaluating the program carried out through 
     such contract.
       (h) Effective Date.--Paragraphs (2) and (3) of subsection 
     (a) and subsections (b) and

[[Page 13956]]

     (c) shall apply to subsidy determinations made on or after 
     the date that is 3 months after the date of the enactment of 
     this Act.

     SEC. 13. INTELLIGENT ASSIGNMENT IN ENROLLMENT.

       (a) In General.--Section 1860D-1(b)(1) of the Social 
     Security Act (42 U.S.C. 1395w-101(b)(1), as amended by 
     section 7(b), is amended--
       (1) in the second sentence of subparagraph (C), by striking 
     ``on a random basis among all such plans'' and inserting ``, 
     subject to subparagraph (E), in the most appropriate plan for 
     such individual''; and
       (2) by adding at the end the following new subparagraph:
       ``(E) Intelligent assignment.--In the case of any auto-
     enrollment under subparagraph (C), no part D eligible 
     individual described in such subparagraph shall be enrolled 
     in a prescription drug plan which does not meet requirements 
     established by the Secretary.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to enrollments effected on or after November 15, 
     2010.

     SEC. 14. MEDICARE ENROLLMENT ASSISTANCE.

       (a) Additional Funding for State Health Insurance 
     Assistance Programs.--
       (1) Grants.--
       (A) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall use 
     amounts made available under subparagraph (B) to make grants 
     to States for State health insurance assistance programs 
     receiving assistance under section 4360 of the Omnibus Budget 
     Reconciliation Act of 1990.
       (B) Funding.--For purposes of making grants under this 
     subsection, the Secretary shall provide for the transfer, 
     from the Federal Hospital Insurance Trust Fund under section 
     1817 of the Social Security Act (42 U.S.C. 1395i) and the 
     Federal Supplementary Medical Insurance Trust Fund under 
     section 1841 of such Act (42 U.S.C. 1395t), in the same 
     proportion as the Secretary determines under section 1853(f) 
     of such Act (42 U.S.C. 1395w-23(f)), of $14,000,000 to the 
     Centers for Medicare & Medicaid Services Program Management 
     Account for fiscal year 2011, to remain available until 
     expended.
       (2) Amount of grants.--The amount of a grant to a State 
     under this subsection from the total amount made available 
     under paragraph (1) shall be equal to the sum of the amount 
     allocated to the State under paragraph (3)(A) and the amount 
     allocated to the State under subparagraph (3)(B).
       (3) Allocation to states.--
       (A) Allocation based on percentage of low-income 
     beneficiaries.--The amount allocated to a State under this 
     subparagraph from \2/3\ of the total amount made available 
     under paragraph (1) shall be based on the number of 
     individuals who meet the requirement under subsection 
     (a)(3)(A)(ii) of section 1860D-14 of the Social Security Act 
     (42 U.S.C. 1395w-114) but who have not enrolled to receive a 
     subsidy under such section 1860D-14 relative to the total 
     number of individuals who meet the requirement under such 
     subsection (a)(3)(A)(ii) in each State, as estimated by the 
     Secretary.
       (B) Allocation based on percentage of rural 
     beneficiaries.--The amount allocated to a State under this 
     subparagraph from \1/3\ of the total amount made available 
     under paragraph (1) shall be based on the number of part D 
     eligible individuals (as defined in section 1860D-1(a)(3)(A) 
     of such Act (42 U.S.C. 1395w-101(a)(3)(A))) residing in a 
     rural area relative to the total number of such individuals 
     in each State, as estimated by the Secretary.
       (4) Portion of grant based on percentage of low-income 
     beneficiaries to be used to provide outreach to individuals 
     who may be subsidy eligible individuals or eligible for the 
     medicare savings program.--Each grant awarded under this 
     subsection with respect to amounts allocated under paragraph 
     (3)(A) shall be used to provide outreach to individuals who 
     may be subsidy eligible individuals (as defined in section 
     1860D-14(a)(3)(A) of the Social Security Act (42 U.S.C. 
     1395w-114(a)(3)(A)) or eligible for the Medicare Savings 
     Program (as defined in subsection (f)).
       (b) Additional Funding for Area Agencies on Aging.--
       (1) Grants.--
       (A) In general.--The Secretary, acting through the 
     Assistant Secretary for Aging, shall make grants to States 
     for area agencies on aging (as defined in section 102 of the 
     Older Americans Act of 1965 (42 U.S.C. 3002)) and Native 
     American programs carried out under the Older Americans Act 
     of 1965 (42 U.S.C. 3001 et seq.).
       (B) Funding.--For purposes of making grants under this 
     subsection, the Secretary shall provide for the transfer, 
     from the Federal Hospital Insurance Trust Fund under section 
     1817 of the Social Security Act (42 U.S.C. 1395i) and the 
     Federal Supplementary Medical Insurance Trust Fund under 
     section 1841 of such Act (42 U.S.C. 1395t), in the same 
     proportion as the Secretary determines under section 1853(f) 
     of such Act (42 U.S.C. 1395w-23(f)), of $10,000,000 to the 
     Administration on Aging for fiscal year 2011, to remain 
     available until expended.
       (2) Amount of grant and allocation to states based on 
     percentage of low-income and rural beneficiaries.--The amount 
     of a grant to a State under this subsection from the total 
     amount made available under paragraph (1) shall be determined 
     in the same manner as the amount of a grant to a State under 
     subsection (a), from the total amount made available under 
     paragraph (1) of such subsection, is determined under 
     paragraph (2) and subparagraphs (A) and (B) of paragraph (3) 
     of such subsection.
       (3) Required use of funds.--
       (A) All funds.--Subject to subparagraph (B), each grant 
     awarded under this subsection shall be used to provide 
     outreach to eligible Medicare beneficiaries regarding the 
     benefits available under title XVIII of the Social Security 
     Act.
       (B) Outreach to individuals who may be subsidy eligible 
     individuals or eligible for the medicare savings program.--
     Subsection (a)(4) shall apply to each grant awarded under 
     this subsection in the same manner as it applies to a grant 
     under subsection (a).
       (c) Additional Funding for Aging and Disability Resource 
     Centers.--
       (1) Grants.--
       (A) In general.--The Secretary shall make grants to Aging 
     and Disability Resource Centers under the Aging and 
     Disability Resource Center grant program that are established 
     centers under such program on the date of the enactment of 
     this Act.
       (B) Funding.--For purposes of making grants under this 
     subsection, the Secretary shall provide for the transfer, 
     from the Federal Hospital Insurance Trust Fund under section 
     1817 of the Social Security Act (42 U.S.C. 1395i) and the 
     Federal Supplementary Medical Insurance Trust Fund under 
     section 1841 of such Act (42 U.S.C. 1395t), in the same 
     proportion as the Secretary determines under section 1853(f) 
     of such Act (42 U.S.C. 1395w-23(f)), of $10,000,000 to the 
     Administration on Aging for fiscal year 2011, to remain 
     available until expended.
       (2) Required use of funds.--Each grant awarded under this 
     subsection shall be used to provide outreach to individuals 
     regarding the benefits available under the Medicare 
     prescription drug benefit under part D of title XVIII of the 
     Social Security Act and under the Medicare Savings Program.
       (d) Coordination of Efforts To Inform Older Americans About 
     Benefits Available Under Federal and State Programs.--
       (1) In general.--The Secretary, acting through the 
     Assistant Secretary for Aging, in cooperation with related 
     Federal agency partners, shall make a grant to, or enter into 
     a contract with, a qualified, experienced entity under which 
     the entity shall--
       (A) maintain and update web-based decision support tools, 
     and integrated, person-centered systems, designed to inform 
     older individuals (as defined in section 102 of the Older 
     Americans Act of 1965 (42 U.S.C. 3002)) about the full range 
     of benefits for which the individuals may be eligible under 
     Federal and State programs;
       (B) utilize cost-effective strategies to find older 
     individuals with the greatest economic need (as defined in 
     such section 102) and inform the individuals of the programs;
       (C) develop and maintain an information clearinghouse on 
     best practices and the most cost-effective methods for 
     finding older individuals with greatest economic need and 
     informing the individuals of the programs; and
       (D) provide, in collaboration with related Federal agency 
     partners administering the Federal programs, training and 
     technical assistance on the most effective outreach, 
     screening, and follow-up strategies for the Federal and State 
     programs.
       (2) Funding.--For purposes of making a grant or entering 
     into a contract under paragraph (1), the Secretary shall 
     provide for the transfer, from the Federal Hospital Insurance 
     Trust Fund under section 1817 of the Social Security Act (42 
     U.S.C. 1395i) and the Federal Supplementary Medical Insurance 
     Trust Fund under section 1841 of such Act (42 U.S.C. 1395t), 
     in the same proportion as the Secretary determines under 
     section 1853(f) of such Act (42 U.S.C. 1395w-23(f)), of 
     $10,000,000 to the Administration on Aging for fiscal year 
     2011, to remain available until expended.
       (e) Medicare Savings Program Defined.--For purposes of this 
     section, the term ``Medicare Savings Program'' means the 
     program of medical assistance for payment of the cost of 
     medicare cost-sharing under the Medicaid program pursuant to 
     sections 1902(a)(10)(E) and 1933 of the Social Security Act 
     (42 U.S.C. 1396a(a)(10)(E), 1396u-3).

     SEC. 15. QMB BUY-IN OF PART A AND PART B PREMIUMS.

       (a) Requirement.--Section 1902(a) of the Social Security 
     Act (42 U.S.C. 1396a(a)), as amended by section 10, is 
     amended--
       (1) in paragraph (73), by striking ``and'' at the end;
       (2) in paragraph (74), by striking the period at the end 
     and inserting ``; and''; and
       (3) by inserting after paragraph (74) the following new 
     paragraph:
       ``(75) provide that the State enters into a modification of 
     an agreement under section 1818(g).''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section take effect on the date that 
     is 6 months after the date of enactment of this Act.

[[Page 13957]]

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

     SEC. 16. INCREASING AVAILABILITY OF MSP APPLICATIONS THROUGH 
                   AVAILABILITY ON THE INTERNET AND DESIGNATION OF 
                   PREFERRED LANGUAGE.

       (a) Requirement for States.--
       (1) In general.--Section 1902(a) of the Social Security Act 
     (42 U.S.C. 1396a(a)), as amended by section 15, is amended--
       (A) in paragraph (74), by striking ``and'' at the end;
       (B) in paragraph (75), by striking the period at the end 
     and inserting ``; and''; and
       (C) by inserting after paragraph (75) the following new 
     paragraph:
       ``(76) provide--
       ``(A) that the application for medical assistance for 
     medicare cost-sharing under this title used by the State 
     allows an individual to specify a preferred language for 
     subsequent communication and, in the case in which a language 
     other than English is specified, provide that subsequent 
     communications under this title to the individual shall be in 
     such language; and
       ``(B) that the State makes such application available 
     through an Internet website and provides for such application 
     to be completed on such website.''.
       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection take effect on the 
     date that is 2 years after the date of enactment of this Act.
       (B) Extension of effective date for state law amendment.--
     In the case of a State plan under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) which the Secretary of 
     Health and Human Services determines requires State 
     legislation in order for the plan to meet the additional 
     requirements imposed by the amendments made by this 
     subsection, the State plan shall not be regarded as failing 
     to comply with the requirements of such title solely on the 
     basis of its failure to meet these additional requirements 
     before the first day of the first calendar quarter beginning 
     after the close of the first regular session of the State 
     legislature that begins after the date of enactment of this 
     Act. For purposes of the previous sentence, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session is considered to be a separate regular session of the 
     State legislature.
       (b) Requirement for the Secretary.--Section 1905(p)(5) of 
     the Social Security Act (42 U.S.C. 1396d(p)(5)) is amended by 
     adding at the end the following new sentence: ``Such form 
     shall allow an individual to specify a preferred language for 
     subsequent communication.''.

     SEC. 17. STATE MEDICAID AGENCY CONSIDERATION OF LOW-INCOME 
                   SUBSIDY APPLICATION AND DATA TRANSMITTAL.

       (a) Technical Amendments.--
       (1) In general.--Section 1144(c)(3)(A)(i) of the Social 
     Security Act (42 U.S.C. 1320b-14(c)(3)(A)(i)), as amended by 
     section 10, is amended--
       (A) by striking ``transmittal''; and
       (B) by inserting ``(as specified in section 1935(a)(4))'' 
     before the semicolon at the end.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the enactment of section 
     113(a) of the Medicare Improvements for Patients and 
     Providers Act of 2008 (Public Law 110-275).
       (b) Clarification of State Medicaid Agency Consideration of 
     Low-Income Subsidy Application.--Section 1935(a)(4) of the 
     Social Security Act (42 U.S.C. 1396u-5(a)(4)), as added by 
     section 113(b) of the Medicare Improvements for Patients and 
     Providers Act of 2008 (Public Law 110-275), is amended--
       (1) by striking ``Program.--The State'' and inserting 
     ``Program.--
       ``(A) In general.--The State'';
       (2) in subparagraph (A), as inserting by paragraph (1), by 
     striking the second sentence; and
       (3) by adding at the end the following new subparagraphs:
       ``(B) For purposes of a State's obligation under section 
     1902(a)(8) to furnish medical assistance with reasonable 
     promptness, the date of the electronic transmission by the 
     Commissioner of Social Security to the State Medicaid agency 
     of data under section 1144(c)(3) shall be the date of the 
     filing of such application for benefits under the Medicare 
     Savings Program.
       ``(C) For the purpose of determining when medical 
     assistance shall be made available for medicare cost-sharing 
     under this title, the State shall consider the date of the 
     application for low-income subsidies under section 1860D-14 
     to be the date of the filing of an application for benefits 
     under the Medicare Savings Program.''.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Ms. Collins, Mr. Lieberman, and Mr. 
        Harkin):
  S. 1186. A bill to amend title XVIII of the Social Security Act to 
eliminate the in the home restriction for Medicare coverage of mobility 
devices for individuals with expected long-term needs; to the Committee 
on Finance.
  Mr. BINGAMAN. Mr. President, I rise today along with Senators 
Collins, Lieberman and Harkin to introduce the Medicare Independent 
Living Act of 2009. This legislation would eliminate Medicare's ``in 
the home'' restriction for the coverage of mobility devices, including 
wheelchairs and scooters, for those with disabilities and expected 
long-term needs. This includes people with multiple sclerosis, 
paraplegia, osteoarthritis, and cerebrovascular disease including acute 
stroke and conditions like aneurysms.
  As currently interpreted by the Centers for Medicare and Medicaid 
Services, CMS, the ``in the home'' restriction only permits 
beneficiaries to obtain wheelchairs that are necessary for use inside 
the home. As a result, seriously disabled beneficiaries who would 
primarily utilize a wheelchair outside the home are prevented from 
receiving this critical and basic equipment through Medicare. For 
example, this restriction prevents beneficiaries from receiving 
wheelchairs to access their work, the community-at-large, place of 
worship, school, physician's offices, or pharmacies.
  As the Medicare Rights Center in a report entitled ``Forced 
Isolation: Medicare's `In The home' Coverage Standards for 
Wheelchairs'' in March 2004 notes, ``This effectively disqualifies you 
from leaving your home without the assistance of others.''
  Furthermore, in a Kansas City Star article dated July 3, 2005, Mike 
Oxford with the National Council on Independent Living noted, ``You 
look at mobility assistance as a way to liberate yourself.'' He added 
that the restriction ``is just backward.''
  In fact, policies such as these are not only backward but directly 
contradict numerous initiatives aimed at increasing community 
integration of people with disabilities, including the Americans with 
Disabilities Act, the Ticket-to-Work Program, the New Freedom 
Initiative, and the Olmstead Supreme Court decision.
  According to the Medicare Rights Center update dated March 23, 2006, 
``This results in arbitrary denials. People with apartments too small 
for a power wheelchair are denied a device that could also get them 
down the street. Those in more spacious quarters get coverage, allowing 
them to scoot from room to room and to the grocery store. People who 
summon all their willpower and strength to hobble around a small 
apartment get no help for tasks that are beyond them and their front 
door.''
  In New Mexico, I have heard this complaint about the law repeatedly 
from our State's most vulnerable disabled and senior citizens. People 
argue the provision is being misinterpreted by the administration and 
results in Medicare beneficiaries being trapped in their home.
  The Independence Through Enhancement of Medicare and Medicaid, ITEM, 
Coalition adds in a letter to CMS on this issue in November 25, 2005, 
``There continues to be no clinical basis for the `in the home' 
restriction and by asking treating practitioners to document medical 
need only within the home setting, CMS is severely restricting patients 
from receiving the most appropriate devices to meet their mobility 
needs.''
  My legislation would clarify that this restriction does not apply to 
mobility devices, including wheelchairs, for people with disabilities 
in the Medicare Program. The language change is fairly simple and 
simply clarifies that the ``in the home'' restriction for durable 
medical equipment does not apply in the

[[Page 13958]]

case of mobility devices needed by Medicare beneficiaries with expected 
long-term needs for use ``in customary settings such as normal 
domestic, vocational, and community activities.''
  This legislation is certainly not intended to discourage CMS from 
dedicating its resources to reducing waste, fraud, and abuse in the 
Medicare system, as those efforts are critical to ensuring that 
Medicare remains financially viable and strong in the future. However, 
it should be noted that neither Medicaid nor the Department of Veterans 
Affairs impose such ``in the home'' restrictions on mobility devices.
  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. 1186

       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 ``Medicare Independent Living 
     Act of 2009''.

     SEC. 2. ELIMINATION OF IN THE HOME RESTRICTION FOR MEDICARE 
                   COVERAGE OF MOBILITY DEVICES FOR INDIVIDUALS 
                   WITH EXPECTED LONG-TERM NEEDS.

       (a) In General.--Section 1861(n) of the Social Security Act 
     (42 U.S.C. 1395x(n) is amended by inserting ``or, in the case 
     of a mobility device required by an individual with expected 
     long-term need, used in customary settings for the purpose of 
     normal domestic, vocational, or community activities'' after 
     ``1819(a)(1))''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to items furnished on or after the date of 
     enactment of this Act.
                                 ______
                                 
      By Mr. REED (for himself, Ms. Murkowski, and Mr. Whitehouse):
  S. 1188. A bill to amend the Public Health Service Act with respect 
to mental health services; to the Committee on Health, Education, 
Labor, and Pensions.
  Mr. REED. Mr. President, today I introduce, along with Senators 
Murkowski and Whitehouse, the Community Mental Health Services 
Improvement Act. For decades, we have known that people suffering from 
mental illness die sooner--on average 25 years sooner--and have higher 
rates of disability than the general population. People with mental 
illness are at greater risk of preventable health conditions such as 
heart disease and diabetes. With this legislation, we are taking steps 
to address these disturbing trends.
  We know that mental health and physical health are inter-related. Yet 
historically mental health and physical health have been treated 
separately. This legislation would integrate care in one setting.
  In a recent survey, 91 percent of community mental health centers 
said that improving the quality of health care is a priority. However, 
only one-third have the capacity to provide health care on site, and 
only one-fifth provide medical referrals off site. The centers 
identified a lack of financial resources as the biggest barrier to 
integrating treatment.
  Accordingly, this legislation provides grants to integrate treatment 
for mental health, substance abuse, and primary and specialty care. 
Grantees can use the funds for screenings, basic health care services 
on site, referrals, or information technology.
  This legislation also comprehensively responds to the well identified 
mental health workforce crisis by providing grants for a wide range of 
innovative recruitment and retention efforts, including loan 
forgiveness and repayment programs, to placement and support for new 
mental health professionals, and expanded mental health education and 
training programs.
  Finally, this legislation provides grants for tele-mental health in 
medically-underserved areas, and invests in health IT for mental health 
providers. These proposals address the twin goals of improving the 
quality of mental health treatment while expanding access to that 
treatment in rural and underserved areas.
  This bipartisan legislation has the overwhelming support of the 
mental health community. It has been endorsed by the National Council 
for Community Behavioral Healthcare, the National Alliance on Mental 
Illness, Mental Health America, the Campaign for Mental Health Reform, 
and the American Psychological Association. I am especially grateful 
for the support of the Rhode Island Council of Community Mental Health 
Organizations, whose members treat close to 15,000 Rhode Islanders of 
all ages.
  As a member of the Senate Committee on Health, Education, Labor, and 
Pensions, I look forward to our upcoming work on reforming our nation's 
health care system--and including important improvements to prevent and 
treat mental and physical illnesses and conditions. It is my hope that 
this year we can truly begin to address the challenge of 
comprehensively improving and expanding access to mental health 
services.
  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. 1188

       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 ``Community Mental Health 
     Services Improvement Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) almost 60,000,000 Americans, or one in four adults and 
     one in five children, have a mental illness that can be 
     diagnosed and treated in a given year;
       (2) mental illness costs our economy more than 
     $80,000,000,000 annually, accounting for 15 percent of the 
     total economic burden of disease;
       (3) alcohol and drug abuse contributes to the death of more 
     than 100,000 people and costs society upwards of half a 
     trillion dollars a year;
       (4) individuals with serious mental illness die on average 
     25 years sooner than individuals in the general population; 
     and
       (5) community mental and behavioral health organizations 
     provide cost-efficient and evidence-based treatment and care 
     for millions of Americans with mental illness and addiction 
     disorders.

     SEC. 3. CO-LOCATING PRIMARY AND SPECIALTY CARE IN COMMUNITY-
                   BASED MENTAL HEALTH SETTINGS.

       Subpart 3 of part B of title V of the Public Health Service 
     Act (42 U.S.C. 290bb-31 et seq.) is amended by adding at the 
     end the following:

     ``SEC. 520K. GRANTS FOR CO-LOCATING PRIMARY AND SPECIALTY 
                   CARE IN COMMUNITY-BASED MENTAL HEALTH SETTINGS.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means a 
     qualified community mental health program defined under 
     section 1913(b)(1).
       ``(2) Special populations.--The term `special populations' 
     refers to the following 3 groups:
       ``(A) Children and adolescents with mental and emotional 
     disturbances who have co-occurring primary care conditions 
     and chronic diseases.
       ``(B) Adults with mental illnesses who have co-occurring 
     primary care conditions and chronic diseases.
       ``(C) Older adults with mental illnesses who have co-
     occurring primary care conditions and chronic diseases.
       ``(b) Program Authorized.--The Secretary, acting through 
     the Administrator of the Substance Abuse and Mental Health 
     Services Administration and in coordination with the Director 
     of the Health Resources and Services Administration, shall 
     award grants to eligible entities to establish demonstration 
     projects for the provision of coordinated and integrated 
     services to special populations through the co-location of 
     primary and specialty care services in community-based mental 
     and behavioral health settings.
       ``(c) Application.--To be eligible to receive a grant under 
     this section, an eligible entity shall submit an application 
     to the Administrator at such time, in such manner, and 
     accompanied by such information as the Administrator may 
     require. Each such application shall include--
       ``(1) an assessment of the primary care needs of the 
     patients served by the eligible entity and a description of 
     how the eligible entity will address such needs; and
       ``(2) a description of partnerships, cooperative 
     agreements, or other arrangements with local primary care 
     providers, including community health centers, to provide 
     services to special populations.
       ``(d) Use of Funds.--
       ``(1) In general.--For the benefit of special populations, 
     an eligible entity shall use funds awarded under this section 
     for--
       ``(A) the provision, by qualified primary care 
     professionals on a reasonable cost basis, of--

[[Page 13959]]

       ``(i) primary care services on site at the eligible entity;
       ``(ii) diagnostic and laboratory services; or
       ``(iii) adult and pediatric eye, ear, and dental 
     screenings;
       ``(B) reasonable costs associated with medically necessary 
     referrals to qualified specialty care professionals as well 
     as to other coordinators of care or, if permitted by the 
     terms of the grant, for the provision, by qualified specialty 
     care professionals on a reasonable cost basis on site at the 
     eligible entity;
       ``(C) information technology required to accommodate the 
     clinical needs of primary and specialty care professionals; 
     or
       ``(D) facility improvements or modifications needed to 
     bring primary and specialty care professionals on site at the 
     eligible entity.
       ``(2) Limitation.--Not to exceed 15 percent of grant funds 
     may be used for activities described in subparagraphs (C) and 
     (D) of paragraph (1).
       ``(e) Geographic Distribution.--The Secretary shall ensure 
     that grants awarded under this section are equitably 
     distributed among the geographical regions of the United 
     States and between urban and rural populations.
       ``(f) Evaluation.--Not later than 3 months after a grant or 
     cooperative agreement awarded under this section expires, an 
     eligible entity shall submit to the Secretary the results of 
     an evaluation to be conducted by the entity concerning the 
     effectiveness of the activities carried out under the grant 
     or agreement.
       ``(g) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to the appropriate committees of Congress a report 
     that shall evaluate the activities funded under this section. 
     The report shall include an evaluation of the impact of co-
     locating primary and specialty care in community mental and 
     behavioral health settings on overall patient health status 
     and recommendations on whether or not the demonstration 
     program under this section should be made permanent.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $50,000,0000 for fiscal year 2010 and such sums as may be 
     necessary for each of fiscal years 2011 through 2014.''.

     SEC. 4. INTEGRATING TREATMENT FOR MENTAL HEALTH AND SUBSTANCE 
                   ABUSE CO-OCCURRING DISORDERS.

       Section 520I of the Public Health Service Act (42 U.S.C. 
     290bb-40) is amended--
       (1) by striking subsection (i) and inserting the following:
       ``(j) Funding.--The Secretary shall make available to carry 
     out this section, $14,000,000 for fiscal year 2010, 
     $20,000,000 for fiscal year 2011, and such sums as may be 
     necessary for each of fiscal years 2012 through 2014. Such 
     sums shall be made available in equal amount from amounts 
     appropriated under sections 509 and 520A.''; and
       (2) by inserting before subsection (j), the following:
       ``(i) Community Mental Health Program.--For purposes of 
     eligibility under this section, the term `private nonprofit 
     organization' includes a qualified community mental health 
     program as defined under section 1913(b)(1).''.

     SEC. 5. IMPROVING THE MENTAL HEALTH WORKFORCE.

       (a) National Health Service Corps.--Paragraph (1) of 
     section 332(a) of the Public Health Service Act (42 U.S.C. 
     254e(a)) is amended by inserting ``and community mental 
     health centers meeting the criteria specified in section 
     1913(c)'' after ``Social Security Act (42 U.S.C. 
     1395x(aa)),''.
       (b) Recruitment and Retention of Mental Health 
     Professionals.--Subpart X of part D of title III of the 
     Public Health Service Act (42 U.S.C. 256f et seq.) is amended 
     by adding at the end the following:

     ``SEC. 340H. GRANTS FOR RECRUITMENT AND RETENTION OF MENTAL 
                   HEALTH PROFESSIONALS.

       ``(a) Establishment.--The Secretary, acting through the 
     Administrator of the Health Resources and Services 
     Administration, shall award grants to States, territories, 
     and Indian tribes or tribal organizations for innovative 
     programs to address the behavioral and mental health 
     workforce needs of designated mental health professional 
     shortage areas.
       ``(b) Use of Funds.--An eligible entity shall use grant 
     funds awarded under this section for--
       ``(1) loan forgiveness and repayment programs (to be 
     carried out in a manner similar to the loan repayment 
     programs carried out under subpart III of part D) for 
     behavioral and mental health professionals who--
       ``(A) agree to practice in designated mental health 
     professional shortage areas;
       ``(B) are graduates of programs in behavioral or mental 
     health;
       ``(C) agree to serve in community-based non-profit 
     entities, or as public mental health professionals for the 
     Federal, State or local government; and
       ``(D) agree to--
       ``(i) provide services to patients regardless of such 
     patients' ability to pay; and
       ``(ii) use a sliding payment scale for patients who are 
     unable to pay the total cost of services;
       ``(2) behavioral and mental health professional recruitment 
     and retention efforts, with a particular emphasis on 
     candidates from racial and ethnic minority and medically-
     underserved communities;
       ``(3) grants or low-interest or no-interest loans for 
     behavioral and mental health professionals who participate in 
     the Medicaid program under title XIX of the Social Security 
     Act to establish or expand practices in designated mental 
     health professional shortage areas, or to serve in qualified 
     community mental health programs as defined in section 
     1913(b)(1);
       ``(4) placement and support for behavioral and mental 
     health students, residents, trainees, and fellows or interns; 
     or
       ``(5) continuing behavioral and mental health education, 
     including distance-based education.
       ``(c) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Assurances.--The application shall include assurances 
     that the applicant will meet the requirements of this 
     subsection and that the applicant possesses sufficient 
     infrastructure to manage the activities to be funded through 
     the grant and to evaluate and report on the outcomes 
     resulting from such activities.
       ``(d) Matching Requirement.--The Secretary may not make a 
     grant to an eligible entity under this section unless that 
     entity agrees that, with respect to the costs to be incurred 
     by the entity in carrying out the activities for which the 
     grant was awarded, the entity will provide non-Federal 
     contributions in an amount equal to not less than 35 percent 
     of Federal funds provided under the grant. The entity may 
     provide the contributions in cash or in kind, fairly 
     evaluated, including plant, equipment, and services, and may 
     provide the contributions from State, local, or private 
     sources.
       ``(e) Supplement Not Supplant.--A grant awarded under this 
     section shall be expended to supplement, and not supplant, 
     the expenditures of the eligible entity and the value of in-
     kind contributions for carrying out the activities for which 
     the grant was awarded.
       ``(f) Geographic Distribution.--The Secretary shall ensure 
     that grants awarded under this section are equitably 
     distributed among the geographical regions of the United 
     States and between urban and rural populations.
       ``(g) Evaluation.--Not later than 3 months after a grant 
     awarded under this section expires, an eligible entity shall 
     submit to the Secretary the results of an evaluation to be 
     conducted by the entity concerning the effectiveness of the 
     activities carried out under the grant.
       ``(h) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to the appropriate committees of Congress a report 
     containing data relating to whether grants provided under 
     this section have increased access to behavioral and mental 
     health services in designated mental health professional 
     shortage areas.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section, 
     $10,000,000 for fiscal year 2010, and such sums as may be 
     necessary for each of fiscal years 2011 through 2014.''.
       (c) Behavioral and Mental Health Education and Training 
     Programs.--Part A of title V of the Public Health Service Act 
     (42 U.S.C. 290aa et seq.) is amended by adding at the end the 
     following:

     ``SEC. 506C. GRANTS FOR BEHAVIORAL AND MENTAL HEALTH 
                   EDUCATION AND TRAINING PROGRAMS.

       ``(a) Definition.--For the purposes of this section, the 
     term `related mental health personnel' means an individual 
     who--
       ``(1) facilitates access to a medical, social, educational, 
     or other service; and
       ``(2) is not a mental health professional, but who is the 
     first point of contact with persons who are seeking mental 
     health services.
       ``(b) Establishment.--The Secretary, acting through the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, shall establish a program to 
     increase the number of trained behavioral and mental health 
     professionals and related mental health personnel by awarding 
     grants on a competitive basis to mental and behavioral health 
     nonprofit organizations or accredited institutions of higher 
     education to enable such entities to establish or expand 
     accredited mental and behavioral health education programs.
       ``(c) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Assurances.--The application shall include assurances 
     that the applicant will meet the requirements of this 
     subsection and that the applicant possesses sufficient 
     infrastructure to manage the activities to be funded through 
     the grant and to evaluate

[[Page 13960]]

     and report on the outcomes resulting from such activities.
       ``(d) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to applicants that--
       ``(1) demonstrate a familiarity with the use of evidenced-
     based methods in behavioral and mental health services;
       ``(2) provide interdisciplinary training experiences; and
       ``(3) demonstrate a commitment to training methods and 
     practices that emphasize the integrated treatment of mental 
     health and substance abuse disorders.
       ``(e) Use of Funds.--Funds awarded under this section shall 
     be used to--
       ``(1) establish or expand accredited behavioral and mental 
     health education programs, including improving the 
     coursework, related field placements, or faculty of such 
     programs; or
       ``(2) establish or expand accredited mental and behavioral 
     health training programs for related mental health personnel.
       ``(f) Requirements.--The Secretary may award a grant to an 
     eligible entity only if such entity agrees that--
       ``(1) any behavioral or mental health program assisted 
     under the grant will prioritize cultural competency and the 
     recruitment of trainees from racial and ethnic minority and 
     medically-underserved communities; and
       ``(2) with respect to any violation of the agreement 
     between the Secretary and the entity, the entity will pay 
     such liquidated damages as prescribed by the Secretary.
       ``(g) Geographic Distribution.--The Secretary shall ensure 
     that grants awarded under this section are equitably 
     distributed among the geographical regions of the United 
     States and between urban and rural populations.
       ``(h) Evaluation.--Not later than 3 months after a grant 
     awarded under this section expires, an eligible entity shall 
     submit to the Secretary the results of an evaluation to be 
     conducted by the entity concerning the effectiveness of the 
     activities carried out under the grant.
       ``(i) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to the appropriate committees of Congress a report 
     containing data relating to whether grants provided under 
     this section have increased access to behavioral and mental 
     health services in designated mental health professional 
     shortage areas.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $4,000,0000 for fiscal year 2010, and such sums as may be 
     necessary for each of fiscal years 2011 through 2014.''.

     SEC. 6. IMPROVING ACCESS TO MENTAL HEALTH SERVICES IN 
                   MEDICALLY-UNDERSERVED AREAS.

       Subpart 3 of part B of title V of the Public Health Service 
     Act (42 U.S.C. 290bb-31 et seq.), as amended by section 3, is 
     amended by inserting after section 520A the following:

     ``SEC. 520B. GRANTS FOR TELE-MENTAL HEALTH IN MEDICALLY-
                   UNDERSERVED AREAS.

       ``(a) Program Authorized.--The Secretary, acting through 
     the Administrator of the Substance Abuse and Mental Health 
     Services Administration, shall award grants to eligible 
     entities to provide tele-mental health in medically-
     underserved areas.
       ``(b) Eligible Entity.--To be eligible for assistance under 
     the program under subsection (a), an entity shall be a 
     qualified community mental health program (as defined in 
     section 1913(b)(1)).
       ``(c) Application.--
       ``(1) In general.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Assurances.--The application shall include assurances 
     that the applicant will meet the requirements of this 
     subsection and that the applicant possesses sufficient 
     infrastructure to manage the activities to be funded through 
     the grant and to evaluate and report on the outcomes 
     resulting from such activities.
       ``(d) Use of Funds.--An eligible entity shall use funds 
     received under a grant under this section for--
       ``(1) the provision of tele-mental health services; or
       ``(2) infrastructure improvements for the provision of 
     tele-mental health services.
       ``(e) Geographic Distribution.--The Secretary shall ensure 
     that grants awarded under this section are equitably 
     distributed among the geographical regions of the United 
     States and between urban and rural populations.
       ``(f) Evaluation.--Not later than 3 months after a grant 
     awarded under this section expires, an eligible entity shall 
     submit to the Secretary the results of an evaluation to be 
     conducted by the entity concerning the effectiveness of the 
     activities carried out under the grant.
       ``(g) Report.--Not later than 5 years after the date of 
     enactment of this section, the Secretary shall prepare and 
     submit to the appropriate committees of Congress a report 
     that shall evaluate the activities funded under this section.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $20,000,000 for fiscal year 2010, and such sums as may be 
     necessary for each of fiscal years 2011 through 2014.''.

     SEC. 7. IMPROVING HEALTH INFORMATION TECHNOLOGY FOR MENTAL 
                   HEALTH PROVIDERS.

       Part A of title V of the Public Health Service Act (42 
     U.S.C. 290aa et seq.), as amended by section 5(c), is further 
     amended by adding at the end the following:

     ``SEC. 506D. IMPROVING HEALTH INFORMATION TECHNOLOGY FOR 
                   MENTAL HEALTH PROVIDERS.

       ``(a) In General.--The Secretary, in consultation with the 
     Secretary of Veterans Affairs, shall collaborate with the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration and the National Coordinator for 
     Health Information Technology to--
       ``(1) develop and implement a plan for ensuring that 
     various components of the National Health Information 
     Infrastructure, including data and privacy standards, 
     electronic health records, and community and regional health 
     networks, address the needs of mental health and substance 
     abuse treatment providers; and
       ``(2) finance related infrastructure improvements, 
     technical support, personnel training, and ongoing quality 
     improvements.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for fiscal year 2010, and such sums as may be 
     necessary for each of fiscal years 2011 through 2014.''.
                                 ______
                                 
      By Mr. WYDEN (for himself, Ms. Snowe, Mrs. Murray, Mr. Menendez, 
        Mr. McCain, Mrs. Gillibrand, and Mr. Ensign):
  S. 1192. A bill to restrict any State or local jurisdiction from 
imposing a new discriminatory tax on mobile wireless communications 
services, providers, or property; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to join my colleague Senator 
Wyden in reintroducing legislation that will stop the increasing 
financial burden being placed on wireless consumers by discriminatory 
taxes. On average, the typical consumer pays 15.2 percent of his/her 
total wireless bill in Federal, State, and local taxes, fees and 
surcharges--this is compared to the 7.07 percent average tax rate for 
other goods and services.
  The Mobile Wireless Tax Fairness Act of 2009 would ensure that these 
tax rates don't increase further by prohibiting States and local 
governments from imposing any new discriminatory tax on mobile 
services, mobile service providers, or mobile service property for a 
period of 5 years. The bill defines ``new discriminatory tax'' as a tax 
imposed on mobile services, providers, or property that is not 
generally imposed on other types of services or property, or that is 
generally imposed at a lower rate.
  The wireless era has changed the way the world communicates. To date, 
there are more than 270 million wireless subscribers in the United 
States, and consumers used more than 2.2 trillion minutes of airtime 
from July 2007 to June 2008--that is more than 6 billion minutes per 
day! And with this growth, more people are using the cell phone as a 
primary communication device as well as for data and Internet 
services--approximately 20 percent of households have ``cut the cord'' 
and use cell phones exclusively. The increased mobility and access 
wireless communications provide have improved our lives, our safety, 
and the efficiency of our work and businesses. It is estimated that the 
productivity value of all mobile wireless services was worth $185 
billion in 2005 alone.
  However, as more consumers and businesses embrace wireless 
technologies and applications, more States and local governments are 
embracing it as a revenue source and applying these excessive and 
discriminatory taxes, which show up on consumers' bills each month. In 
fact, the effective rate of taxation on wireless services has increased 
four times faster than the rate on other taxable goods and services 
between January 2003 and January 2007.
  These excessive and discriminatory taxes discourage wireless adoption 
and use, primarily with low-income individuals and families that still 
view a cellular phone as a luxury when many Americans consider it a 
necessity. By banning these taxes, we can equalize the taxation of the 
wireless industry with that of other goods and services

[[Page 13961]]

and protect the wireless consumer from the weight of exorbitant fees, 
surcharges, and general business taxes. We cannot allow this essential 
and innovative industry as well as the consumers who benefit from its 
amazing services and applications to suffer excessive tax rates.
  Placing a moratorium on new discriminatory wireless taxes will ensure 
that consumers continue to reap the benefits of wireless services. 
Congress took similar action with the Internet--passing the Internet 
Tax Freedom Act Amendments Act of 2007 last session--because of the 
incredible impact the Internet will continue to have on consumers and 
businesses alike. The future of wireless is just as bright and that is 
why we must ensure its continued growth.
  It is confounding that telecommunications, one of the most essential 
components of our economy and our daily lives, is one of the most 
highly taxed sectors. That is why I sincerely hope that my colleagues 
join Senator Wyden and me in supporting this critical bipartisan 
legislation so we can continue our efforts to curtail discriminatory 
taxes on these vital services so that all Americans can leverage the 
benefits they offer. I would like to thank Senator McCain for his past 
leadership on this issue and for cosponsoring this consumer-friendly 
legislation.
                                 ______
                                 
      By Ms. SNOWE (for herself and Ms. Klobuchar):
  S. 1193. A bill to amend title 49, United States Code, to enhance 
aviation safety, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Ms. SNOWE. Mr. President, I rise today to join with my colleague, 
Senator Klobuchar, to introduce legislation that I believe continues to 
be crucial in the effort to improve aviation safety. Before I begin, I 
want to recognize the deliberate and unflagging efforts of Senator 
Klobuchar, whose commitment to improve the safety of commercial 
aviation in this country is so admirable.
  We all remember last spring's news: a U.S. carrier continued flying 
aircraft even though critical safety checks involving cracks in their 
fuselages had not been performed on approximately 50 jets. In fact, an 
independent review concluded that these flights potentially endangered 
over six million passengers. What was the punitive or disciplinary 
action taken against the inspector who condoned--in fact, encouraged--
those aircraft to continue flying? Nothing. The PMI, or supervising 
inspector, continued in his role. Also, as many of you will recall, 
last April, American Airlines cancelled nearly 2,000 flights in order 
to catch up on inspections of aircraft wiring--inspections that should 
have been performed previously under its agreement with the FAA.
  This startling news was compounded by a Department of Transportation 
Inspector General's report in June disclosing so-called safety 
inspectors are turning a blind eye to violations. Now, according to a 
New York Times article dated June 4, an inspector reported to his 
superiors that Colgan Air had been having trouble with their most 
recent purchase, the Bombardier Q400. The same aircraft that crashed 
outside of Buffalo, New York this past March. What did his superiors do 
with this information? They transferred the inspector to a different 
job, and reportedly buried the report.
  The FAA's overarching role is to serve as a protector of the public 
trust; not as a public relations and management tool for the commercial 
airlines. What I find most offensive throughout these reports is the 
willingness by the FAA to ignore safety concerns or inspection 
violations, to presume that due to the tremendous level of success 
regarding safety protections for so long, they no longer are required 
to follow the procedures that created that high level of safety, 
instead, as the Inspector General's report indicated, they want to 
``avoid a negative effect on the FAA'' by enforcing those measures.
  That is why Senator Klobuchar and I are committed to closing the 
revolving door between the airlines and the FAA. We need to codify our 
safety expectations into law and hold anyone who tries to undermine the 
integrity of the safety process accountable. By establishing a cooling-
off period so that FAA inspectors cannot immediately go to work for an 
airline they used to inspect, and demanding that the FAA establish a 
national review team of experienced inspectors to conduct periodic, 
unannounced audits of FAA air carrier inspection facilities will 
guarantee that aircraft inspections are carried out in a rigorous and 
timely fashion. The American people, not the airlines, are the primary 
responsibility of the FAA. It is my hope that these provisions will 
assist in returning the FAA to their core mission: safety.
                                 ______
                                 
      Ms. CANTWELL (for herself, Ms. Snowe, Mr. Rockefeller, and Mrs. 
        Hutchison):
  S. 1194. A bill to reauthorize the Coast Guard for fiscal years 2010 
and 2011, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Ms. CANTWELL. Mr. President, for countless communities around the 
country, our oceans are the heartbeat of their histories and economies. 
In fact, according to a report by the Joint Oceans Commission, healthy 
oceans and coasts are an important means of transportation, trade, and 
national security. Ocean-dependent industries generate about $138 
billion and support millions of jobs in the United States' economy.
  According to the National Ocean Economic Project, 30 U.S. coastal 
States accounted for 82 percent of total population and 81 percent of 
all U.S. jobs in 2006. In my home State of Washington, the Port of 
Seattle's facilities and activities alone support 190,000 jobs, and the 
State has 3,000 fishing vessels that employ 10,000 fishermen.
  There is no group that is more important to the health and safety of 
our ports, fishing industry, and maritime community than the U.S. Coast 
Guard. The brave men and women of the U.S. Coast Guard are charged with 
many missions--from serving as our environmental stewards, performing 
search and rescue missions, and protecting us from terrorism, to 
helping clean up oil spills and enforcing fisheries laws. They are 
largely responsible for keeping these coastal economic engines running, 
and have proved time and time again that they are, as their motto says, 
``Always ready.''
  But for the Coast Guard to do its job Congress needs to support those 
who serve in its ranks. We have a responsibility to ensure the Coast 
Guard has the tools it needs to carry out the missions of today, while 
looking ahead to the challenges of tomorrow.
  The bill I am introducing today, The Coast Guard Authorization Act 
for fiscal years 2010 and 2011, is designed to help the Coast Guard 
move toward the future, and ensure our maritime industries remain the 
clean and safe economic engine our nation's coastal communities have 
depended on for generations.
  As the U.S. experiences major oil spills, tropical storms, 
hurricanes, and terrorism, our maritime economy faces ever-present 
threats. Congress needs to uphold its end of the bargain and provide 
the legislative backing the Coast Guard needs to do its job, and do its 
job well.
  This bill gives the Coast Guard greater authority to work with 
international maritime authorities, get better access to global safety 
and security information, and work more cooperatively with other 
nations on law enforcement; allows the Coast Guard to rework its 
command structure and increase its alignment with other armed forces; 
better supports the men and women who serve in the U.S. Coast Guard by 
allowing greater reimbursement for medical-related expenses and 
allowing Coast Guard service-members to participate in the Armed Forces 
Retirement Home system; and directs the Coast Guard to conduct a 
thorough cost-benefit analysis for recapitalizing its polar icebreaker 
fleet so the service can prepare for future mission demands in the 
Arctic.
  This bill also contains the most ambitious reform of its acquisitions 
program in the Coast Guard's history. The Coast Guard is struggling 
right now to replace their rapidly aging fleet of

[[Page 13962]]

ships, aircraft, and facilities. At a cost of $24 billion, the 
Deepwater program is the Coast Guard's largest and most complex 
acquisition program ever. Congress has a responsibility to ensure there 
is transparency and oversight so this program is as efficient and 
effective as possible.
  Unfortunately, the Coast Guard's Deepwater program has experienced 
major failures and setbacks. The program utilized a private sector lead 
systems integrator, LSI, know as Integrated Coast Guard Systems, ICGS, 
to oversee acquisition of a ``system of systems.'' When the Deepwater 
contract was originally awarded in 2002, the Coast Guard did not have 
the personnel within their ranks to manage such a large contract. 
Congress was told that outsourcing that role to industry would save the 
Coast Guard time and money over the long run.
  That approach, which may have seemed innovative at the time, has not 
produced the promised results. Instead of cost and time savings, we 
have seen cost overruns, schedule delays, less competition and 
inadequate technical oversight.
  The Department of Homeland Security Inspector General, IG, released 
three reports in 2006 and early 2007 detailing some of the problems 
with Deepwater, including problems with electronics equipment, crucial 
design flaws and cost overruns created by a faulty contract structure 
and lack of oversight, and serious issues with the 123-foot cutter 
conversion project.
  This legislation wipes the slate clean and makes fundamental changes 
to the Coast Guard's acquisition program. It requires the Coast Guard 
to abandon the industry-led Lead Systems Integrator and get back to 
basics--full and open competition for all future assets.
  It requires a completely new ``analysis of alternatives'' for all 
future Deepwater acquisitions to ensure that the Coast Guard is getting 
the assets best-suited for their needs.
  It requires the Coast Guard to follow a rigorous acquisitions process 
to make sure taxpayer dollars are spent wisely.
  And, it gives the Coast Guard the tools it needs to manage 
acquisitions effectively, including requiring the Coast Guard to make 
internal management changes to ensure open competition, increase 
technical oversight and improve reporting to Congress.
  This legislation takes major steps towards getting the Coast Guard 
the assets they need while ensuring responsible management of taxpayer 
dollars. I look forward to working with my colleagues to enact the 
changes I am proposing today so we can get this program back on track 
and help the Coast Guard accomplish its missions.
  If we fail to pass legislation, we are doing a major disservice to 
those very people we depend on. We will do so as they continue to place 
their lives at risk while they perform the mission of the Coast Guard.
  This bill is good for taxpayers, good for the Coast Guard, and good 
for every American depending on them to be, ``Always ready.''
  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. 1194

       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 ``Coast Guard Authorization 
     Act for Fiscal Years 2010 and 2011''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Authorized levels of military strength and training.

                        TITLE II--ADMINISTRATION

Sec. 201. Authority to distribute funds through grants, cooperative 
              agreements, and contracts to maritime authorities and 
              organizations.
Sec. 202. Assistance to foreign governments and maritime authorities.
Sec. 203. Cooperative agreements for industrial activities.
Sec. 204. Defining Coast Guard vessels and aircraft.

                        TITLE III--ORGANIZATION

Sec. 301. Vice commandant; vice admirals.
Sec. 302. Number and distribution of commissioned officers on the 
              active duty promotion list.

                          TITLE IV--PERSONNEL

Sec. 401. Leave retention authority.
Sec. 402. Legal assistance for Coast Guard reservists.
Sec. 403. Reimbursement for certain medical related expenses.
Sec. 404. Reserve commissioned warrant officer to lieutenant program.
Sec. 405. Enhanced status quo officer promotion system.
Sec. 406. Appointment of civilian Coast Guard judges.
Sec. 407. Coast Guard participation in the Armed Forces Retirement Home 
              system.

                      TITLE V--ACQUISITION REFORM

Sec. 501. Chief Acquisition Officer.
Sec. 502. Acquisitions.

                       ``CHAPTER 15--ACQUISITIONS

                   ``Subchapter 1--General Provisions

  ``Sec.
  ``561. Acquisition directorate
  ``562. Senior acquisition leadership team
  ``563. Improvements in Coast Guard acquisition management
  ``564. Recognition of Coast Guard personnel for excellence in 
              acquisition
  ``565. Prohibition on use of lead systems integrators
  ``566. Required contract terms
  ``567. Department of Defense consultation
  ``568. Undefinitized contractual actions

      ``Subchapter 2--Improved Acquisition Process and Procedures

  ``Sec.
  ``571. Identification of major system acquisitions
  ``572. Acquisition
  ``573. Preliminary development and demonstration
  ``574. Acquisition, production, deployment, and support
  ``575. Acquisition program baseline breach

                      ``Subchapter 3--Definitions

  ``Sec.
  ``581. Definitions''

Sec. 503. Report and guidance on excess pass-through charges.

                   TITLE VI--SHIPPING AND NAVIGATION

Sec. 601. Technical amendments to chapter 313 of title 46, United 
              States Code.
Sec. 602. Clarification of rulemaking authority.
Sec. 603. Coast Guard maintenance of LORAN-C navigation system.
Sec. 604. Icebreakers.
Sec. 605. Vessel size limits.

                      TITLE VII--VESSEL CONVEYANCE

Sec. 701. Short title.
Sec. 702. Conveyance of Coast Guard vessels for public purposes.

                        TITLE I--AUTHORIZATIONS

     SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

       Funds are authorized to be appropriated for necessary 
     expenses of the Coast Guard for each of fiscal years 2010 and 
     2011 as follows:
       (1) For the operation and maintenance of the Coast Guard, 
     $6,556,188,000, of which $24,500,000 is authorized to be 
     derived from the Oil Spill Liability Trust Fund to carry out 
     the purposes of section 1012(a)(5) of the Oil Pollution Act 
     of 1990.
       (2) For the acquisition, construction, renovation, and 
     improvement of aids to navigation, shore and offshore 
     facilities, vessels, and aircraft, including equipment 
     related thereto, $1,383,980,000, of which $20,000,000 shall 
     be derived from the Oil Spill Liability Trust Fund to carry 
     out the purposes of section 1012(a)(5) of the Oil Pollution 
     Act of 1990, to remain available until expended; such funds 
     appropriated for personnel compensation and benefits and 
     related costs of acquisition, construction, and improvements 
     shall be available for procurement of services necessary to 
     carry out the Integrated Deepwater Systems program.
       (3) For retired pay (including the payment of obligations 
     otherwise chargeable to lapsed appropriations for this 
     purpose), payments under the Retired Serviceman's Family 
     Protection and Survivor Benefit Plans, and payments for 
     medical care of retired personnel and their dependents under 
     chapter 55 of title 10, United States Code, $1,361,245,000.
       (4) For environmental compliance and restoration functions 
     under chapter 19 of title 14, United States Code, 
     $13,198,000.
       (5) For research, development, test, and evaluation 
     programs related to maritime technology, $19,745,000.
       (6) For operation and maintenance of the Coast Guard 
     reserve program, $133,632,000.

     SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH AND 
                   TRAINING.

       (a) Active Duty Strength.--The Coast Guard is authorized an 
     end-of-year strength of active duty personnel of 49,954 as of 
     September 30, 2010, and 52,452 as of September 30, 2011.
       (b) Military Training Student Loads.--The Coast Guard is 
     authorized average military training student loads as 
     follows:

[[Page 13963]]

       (1) For recruit and special training, 2,500 student years 
     for fiscal year 2010, and 2,625 student years for fiscal year 
     2011.
       (2) For flight training, 170 student years for fiscal year 
     2010 and 179 student years for fiscal year 2011.
       (3) For professional training in military and civilian 
     institutions, 350 student years for fiscal year 2010 and 368 
     student years for fiscal year 2011.
       (4) For officer acquisition, 1,300 student years for fiscal 
     year 2010 and 1,365 student years for fiscal year 2011.

                        TITLE II--ADMINISTRATION

     SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH GRANTS, 
                   COOPERATIVE AGREEMENTS, AND CONTRACTS TO 
                   MARITIME AUTHORITIES AND ORGANIZATIONS.

       Section 149 of title 14, United States Code, is amended by 
     adding at the end the following:
       ``(c) Grants to International Maritime Organizations.--The 
     Commandant may, after consultation with the Secretary of 
     State, make grants to, or enter into cooperative agreements, 
     contracts, or other agreements with, international maritime 
     organizations for the purpose of acquiring information or 
     data about merchant vessel inspections, security, safety and 
     environmental requirements, classification, and port state or 
     flag state law enforcement or oversight.''.

     SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND MARITIME 
                   AUTHORITIES.

       Section 149 of title 14, United States Code, as amended by 
     section 201, is further amended by adding at the end the 
     following:
       ``(d) Authorized Activities.--
       ``(1) The Commandant may transfer or expend funds from any 
     appropriation available to the Coast Guard for--
       ``(A) the activities of traveling contact teams, including 
     any transportation expense, translation services expense, or 
     administrative expense that is related to such activities;
       ``(B) the activities of maritime authority liaison teams of 
     foreign governments making reciprocal visits to Coast Guard 
     units, including any transportation expense, translation 
     services expense, or administrative expense that is related 
     to such activities;
       ``(C) seminars and conferences involving members of 
     maritime authorities of foreign governments;
       ``(D) distribution of publications pertinent to engagement 
     with maritime authorities of foreign governments; and
       ``(E) personnel expenses for Coast Guard civilian and 
     military personnel to the extent that those expenses relate 
     to participation in an activity described in subparagraph (C) 
     or (D).
       ``(2) An activity may not be conducted under this 
     subsection with a foreign country unless the Secretary of 
     State approves the conduct of such activity in that foreign 
     country.''.

     SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL ACTIVITIES.

       Section 151 of title 14, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``All 
     orders''; and
       (2) by adding at the end the following:
       ``(b) Orders and Agreements for Industrial Activities.--
     Under this section, the Coast Guard industrial activities may 
     accept orders and enter into reimbursable agreements with 
     establishments, agencies, and departments of the Department 
     of Defense and the Department of Homeland Security.''.

     SEC. 204. DEFINING COAST GUARD VESSELS AND AIRCRAFT.

       (a) In General.--Chapter 17 of title 14, United States 
     Code, is amended by inserting after section 638 the following 
     new section:

     ``Sec. 638a. Coast Guard vessels and aircraft defined

       ``For the purposes of sections 637 and 638 of this title, 
     the term Coast Guard vessels and aircraft means--
       ``(1) any vessel or aircraft owned, leased, transferred to, 
     or operated by the Coast Guard and under the command of a 
     Coast Guard member; or
       ``(2) any other vessel or aircraft under the tactical 
     control of the Coast Guard on which one or more members of 
     the Coast Guard are assigned and conducting Coast Guard 
     missions.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     17 of such title is amended by inserting after the item 
     relating to section 638 the following:

``638a. Coast Guard vessels and aircraft defined.''.

                        TITLE III--ORGANIZATION

     SEC. 301. VICE COMMANDANT; VICE ADMIRALS.

        (a) Vice Commandant.--The fourth sentence of section 47 of 
     title 14, United States Code, is amended by striking ``vice 
     admiral'' and inserting ``admiral''.
       (b) Vice Admirals.--Section 50 of such title is amended to 
     read as follows:

     ``Sec. 50. Vice admirals

       ``(a)(1) The President may designate no more than 4 
     positions of importance and responsibility that shall be held 
     by officers who--
       ``(A) while so serving, shall have the grade of vice 
     admiral, with the pay and allowances of that grade; and
       ``(B) shall perform such duties as the Commandant may 
     prescribe.
       ``(2) The President may appoint, by and with the advice and 
     consent of the Senate, and reappoint, by and with the advice 
     and consent of the Senate, to any such position an officer of 
     the Coast Guard who is serving on active duty above the grade 
     of captain. The Commandant shall make recommendations for 
     such appointments.
       ``(b)(1) The appointment and the grade of vice admiral 
     shall be effective on the date the officer assumes that duty 
     and, except as provided in paragraph (2) of this subsection 
     or in section 51(d) of this title, shall terminate on the 
     date the officer is detached from that duty.
       ``(2) An officer who is appointed to a position designated 
     under subsection (a) shall continue to hold the grade of vice 
     admiral--
       ``(A) while under orders transferring the officer to 
     another position designated under subsection (a), beginning 
     on the date the officer is detached from that duty and 
     terminating on the date before the day the officer assumes 
     the subsequent duty, but not for more than 60 days;
       ``(B) while hospitalized, beginning on the day of the 
     hospitalization and ending on the day the officer is 
     discharged from the hospital, but not for more than 180 days; 
     and
       ``(C) while awaiting retirement, beginning on the date the 
     officer is detached from duty and ending on the day before 
     the officer's retirement, but not for more than 60 days.
       ``(c)(1) An appointment of an officer under subsection (a) 
     does not vacate the permanent grade held by the officer.
       ``(2) An officer serving in a grade above rear admiral who 
     holds the permanent grade of rear admiral (lower half) shall 
     be considered for promotion to the permanent grade of rear 
     admiral as if the officer was serving in the officer's 
     permanent grade.
       ``(d) Whenever a vacancy occurs in a position designated 
     under subsection (a), the Commandant shall inform the 
     President of the qualifications needed by an officer serving 
     in that position or office to carry out effectively the 
     duties and responsibilities of that position or office.''.
       (c) Repeal.--Section 50a of such title is repealed.
       (d) Conforming Amendments.--Section 51 of such title is 
     amended--
       (1) by striking subsections (a), (b), and (c) and inserting 
     the following:
       ``(a) An officer, other than the Commandant, who, while 
     serving in the grade of admiral or vice admiral, is retired 
     for physical disability shall be placed on the retired list 
     with the highest grade in which that officer served.
       ``(b) An officer, other than the Commandant, who is retired 
     while serving in the grade of admiral or vice admiral, or 
     who, after serving at least 2\1/2\ years in the grade of 
     admiral or vice admiral, is retired while serving in a lower 
     grade, may in the discretion of the President, be retired 
     with the highest grade in which that officer served.
        ``(c) An officer, other than the Commandant, who, after 
     serving less than 2\1/2\ years in the grade of admiral or 
     vice admiral, is retired while serving in a lower grade, 
     shall be retired in his permanent grade.''; and
       (2) by striking ``Area Commander, or Chief of Staff'' in 
     subsection (d)(2) and inserting ``or Vice Admiral''.
       (e) Clerical Amendments.--
       (1) The section caption for section 47 of such title is 
     amended to read as follows:

     ``Sec. 47. Vice commandant; appointment''.

       (2) The table of contents for chapter 3 of such title is 
     amended--
       (A) by striking the item relating to section 47 and 
     inserting the following:

``47. Vice Commandant; appointment.'';
       (B) by striking the item relating to section 50a; and
       (C) by striking the item relating to section 50 and 
     inserting the following:

``50. Vice admirals.''.
       (f) Technical Correction.--Section 47 of such title is 
     further amended by striking ``subsection'' in the fifth 
     sentence and inserting ``section''.
       (g) Treatment of Incumbents; Transition.--
       (1) Notwithstanding any other provision of law, the officer 
     who, on the date of enactment of this Act, is serving as Vice 
     Commandant--
       (A) shall continue to serve as Vice Commandant;
       (B) shall have the grade of admiral with pay and allowances 
     of that grade; and
       (C) shall not be required to be reappointed by reason of 
     the enactment of that Act.
       (2) Notwithstanding any other provision of law, an officer 
     who, on the date of enactment of this Act, is serving as 
     Chief of Staff, Commander, Atlantic Area, or Commander, 
     Pacific Area--
       (A) shall continue to have the grade of vice admiral with 
     pay and allowance of that grade until such time that the 
     officer is relieved of his duties and appointed and confirmed 
     to another position as a vice admiral or admiral; and
       (B) for the purposes of transition, may continue, for not 
     more than 1 year after the date of enactment of this Act, to 
     perform the duties of the officer's former position and any

[[Page 13964]]

     other such duties that the Commandant prescribes.

     SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED OFFICERS ON 
                   THE ACTIVE DUTY PROMOTION LIST.

       (a) In General.--Section 42 of title 14, United States 
     Code, is amended--
       (1) by striking subsections (a), (b), and (c) and inserting 
     the following:
       ``(a) The total number of Coast Guard commissioned officers 
     on the active duty promotion list, excluding warrant 
     officers, shall not exceed 7,200. This total number may be 
     temporarily increased up to 2 percent for no more than the 60 
     days that follow the commissioning of a Coast Guard Academy 
     class.
        ``(b) The total number of commissioned officers authorized 
     by this section shall be distributed in grade not to exceed 
     the following percentages:
       ``(1) 0.375 percent for rear admiral.
       ``(2) 0.375 percent for rear admiral (lower half).
       ``(3) 6.0 percent for captain.
       ``(4) 15.0 percent for commander.
       ``(5) 22.0 percent for lieutenant commander.
     The Secretary shall prescribe the percentages applicable to 
     the grades of lieutenant, lieutenant (junior grade), and 
     ensign. The Secretary may, as the needs of the Coast Guard 
     require, reduce any of the percentages set forth in 
     paragraphs (1) through (5) and apply that total percentage 
     reduction to any other lower grade or combination of lower 
     grades.
       ``(c) The Secretary shall, at least once a year, compute 
     the total number of commissioned officers authorized to serve 
     in each grade by applying the grade distribution percentages 
     of this section to the total number of commissioned officers 
     listed on the current active duty promotion list. In making 
     such calculations, any fraction shall be rounded to the 
     nearest whole number. The number of commissioned officers on 
     the active duty promotion list serving with other departments 
     or agencies on a reimbursable basis or excluded under the 
     provisions of section 324(d) of title 49, shall not be 
     counted against the total number of commissioned officers 
     authorized to serve in each grade.'';
       (2) by striking subsection (e) and inserting the following:
       ``(e) The number of officers authorized to be serving on 
     active duty in each grade of the permanent commissioned 
     teaching staff of the Coast Guard Academy and of the Reserve 
     serving in connection with organizing, administering, 
     recruiting, instructing, or training the reserve components 
     shall be prescribed by the Secretary.''; and
       (3) by striking the caption of such section and inserting 
     the following:

     ``Sec. 42. Number and distribution of commissioned officers 
       on the active duty promotion list''.

       (b) Clerical Amendment.--The table of contents for chapter 
     3 of such title is amended by striking the item relating to 
     section 42 and inserting the following:

``42. Number and distribution of commissioned officers on the active 
              duty promotion list.''.

                          TITLE IV--PERSONNEL

     SEC. 401. LEAVE RETENTION AUTHORITY.

       Section 701(f)(2) of title 10, United States Code, is 
     amended by inserting ``or a declaration of a major disaster 
     or emergency by the President under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (Public Law 93-
     288, 42 U.S.C. 5121 et seq.)'' after ``operation''.

     SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERVISTS.

       Section 1044(a)(4) of title 10, United States Code, is 
     amended--
       (1) by striking ``(as determined by the Secretary of 
     Defense),'' and inserting ``(as determined by the Secretary 
     of Defense and the Secretary of the department in which the 
     Coast Guard is operating, with respect to the Coast Guard 
     when it is not operating as a service of the Navy),''; and
       (2) by striking ``prescribed by the Secretary of Defense,'' 
     and inserting ``prescribed by Secretary of Defense and the 
     Secretary of the department in which the Coast Guard is 
     operating, with respect to the Coast Guard when it is not 
     operating as a service of the Navy,''.

     SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RELATED TRAVEL 
                   EXPENSES.

       Section 1074i(a) of title 10, United States Code, is 
     amended--
       (1) by striking ``In General.--In'' and inserting ``In 
     General.--(1) In''; and
       (2) by adding at the end the following:
       ``(2) In any case in which a covered beneficiary resides on 
     an INCONUS island that lacks public access roads to the 
     mainland and is referred by a primary care physician to a 
     specialty care provider on the mainland who provides services 
     less than 100 miles from the location in which the 
     beneficiary resides, the Secretary shall reimburse the 
     reasonable travel expenses of the covered beneficiary, and, 
     when accompaniment by an adult is necessary, for a parent or 
     guardian of the covered beneficiary or another member of the 
     covered beneficiary's family who is at least 21 years of 
     age.''.

     SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO LIEUTENANT 
                   PROGRAM.

       Section 214(a) of title 14, United States Code, is amended 
     to read as follows:
       ``(a) The President may appoint temporary commissioned 
     officers--
       ``(1) in the Regular Coast Guard in a grade, not above 
     lieutenant, appropriate to their qualifications, experience, 
     and length of service, as the needs of the Coast Guard may 
     require, from among the commissioned warrant officers, 
     warrant officers, and enlisted members of the Coast Guard, 
     and from licensed officers of the United States merchant 
     marine; and
       ``(2) in the Coast Guard Reserve in a grade, not above 
     lieutenant, appropriate to their qualifications, experience, 
     and length of service, as the needs of the Coast Guard may 
     require, from among the commissioned warrant officers of the 
     Coast Guard Reserve.''.

     SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION SYSTEM.

       (a) Section 253(a) of title 14, United States Code, is 
     amended--
       (1) by inserting ``and'' after ``considered,''; and
       (2) by striking ``consideration, and the number of officers 
     the board may recommend for promotion'' and inserting 
     ``consideration''.
       (b) Section 258 of such title is amended--
       (1) by inserting ``(a)'' before ``The Secretary''; and
       (2) by adding at the end the following:
       ``(b) In addition to the information provided pursuant to 
     subsection (a), the Secretary may furnish the selection 
     board--
       ``(1) specific direction relating to the needs of the 
     service for officers having particular skills, including 
     direction relating to the need for a minimum number of 
     officers with particular skills within a specialty; and
       ``(2) such other guidance that the Secretary believes may 
     be necessary to enable the board to properly perform its 
     functions.
     Selections made based on the direction and guidance provided 
     under this subsection shall not exceed the maximum percentage 
     of officers who may be selected from below the announced 
     promotion zone at any given selection board convened under 
     section 251 of this title.''.
       (c) Section 259(a) of such title is amended by striking 
     ``board'' the second place it appears and inserting ``board, 
     giving due consideration to the needs of the service for 
     officers with particular skills so noted in the specific 
     direction furnished pursuant to section 258 of this title,''.
       (d) Section 260(b) of such title is amended by inserting 
     ``to meet the needs of the service (as noted in the specific 
     direction furnished the board under section 258 of this 
     title)'' after ``qualified for promotion''.

     SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD JUDGES.

       Section 875 of the Homeland Security Act of 2002 (6 U.S.C. 
     455) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting after subsection (b) the following:
       ``(c) Appointment of Judges.--The Secretary may appoint 
     civilian employees of the Department of Homeland Security as 
     appellate military judges, available for assignment to the 
     Coast Guard Court of Criminal Appeals as provided for in 
     section 866(a) of title 10, United States Code.''.

     SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED FORCES 
                   RETIREMENT HOME SYSTEM.

       (a) Eligibility under the Armed Forces Retirement Home 
     Act.--Section 1502 of the Armed Forces Retirement Home Act of 
     1991 (24 U.S.C. 401) is amended--
       (1) by striking ``does not include the Coast Guard when it 
     is not operating as a service of the Navy.'' in paragraph (4) 
     and inserting ``has the meaning given such term in section 
     101(4) of title 10.'';
       (2) by striking ``and'' in paragraph (5)(C);
       (3) by striking ``Affairs.'' in paragraph (5)(D) and 
     inserting ``Affairs; and'';
       (4) by adding at the end of paragraph (5) the following:
       ``(E) the Assistant Commandant of the Coast Guard for Human 
     Resources.''; and
       (5) by adding at the end of paragraph (6) the following:
       ``(E) The Master Chief Petty Officer of the Coast Guard.''.
       (b) Deductions.--
       (1) Section 2772 of title 10, United States Code, is 
     amended--
       (A) by striking ``of the military department'' in 
     subsection (a);
       (B) by striking ``Armed Forces Retirement Home Board'' in 
     subsection (b) and inserting ``Chief Operating Officer of the 
     Armed Forces Retirement Home''; and
       (C) by striking subsection (c).
       (2) Section 1007(i) of title 37, United States Code, is 
     amended--
       (A) by striking ``Armed Forces Retirement Home Board,'' in 
     paragraph (3) and inserting ``Chief Operating Officer of the 
     Armed Forces Retirement Home,''; and
       (B) by striking ``does not include the Coast Guard when it 
     is not operating as a service of the Navy.'' in paragraph (4) 
     and inserting ``has the meaning given such term in section 
     101(4) of title 10.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first pay period 
     beginning on or after January 1, 2010.

[[Page 13965]]



                      TITLE V--ACQUISITION REFORM

     SEC. 501. CHIEF ACQUISITION OFFICER.

       (a) In General.--Chapter 3 of title 14, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 55. Chief Acquisition Officer

       ``(a) In General.--There shall be in the Coast Guard a 
     Chief Acquisition Officer selected by the Commandant who 
     shall be a Rear Admiral or civilian from the Senior Executive 
     Service (career reserved). The Chief Acquisition Officer 
     shall serve at the Assistant Commandant level and have 
     acquisition management as that individual's primary duty.
       ``(b) Qualifications.--The Chief Acquisition Officer shall 
     be an acquisition professional with a Level III certification 
     and must have at least 10 years experience in an acquisition 
     position, of which at least 4 years were spent as--
       ``(1) the program executive officer;
       ``(2) the program manager of a Level 1 or Level 2 
     acquisition project or program;
       ``(3) the deputy program manager of a Level 1 or Level 2 
     acquisition; or
       ``(4) a combination of such positions.
       ``(c) Functions of the Chief Acquisition Officer.--The 
     functions of the Chief Acquisition Officer include--
       ``(1) monitoring the performance of programs and projects 
     on the basis of applicable performance measurements and 
     advising the Commandant, through the chain of command, 
     regarding the appropriate business strategy to achieve the 
     missions of the Coast Guard;
       ``(2) maximizing the use of full and open competition at 
     the prime contract and subcontract levels in the acquisition 
     of property, capabilities, and services by the Coast Guard by 
     establishing policies, procedures, and practices that ensure 
     that the Coast Guard receives a sufficient number of 
     competitive proposals from responsible sources to fulfill the 
     Government's requirements, including performance and delivery 
     schedules, at the lowest cost or best value considering the 
     nature of the property or service procured;
       ``(3) making acquisition decisions in concurrence with the 
     technical authority, or technical authorities, as 
     appropriate, of the Coast Guard, as designated by the 
     Commandant, consistent with all other applicable laws and 
     decisions establishing procedures within the Coast Guard;
       ``(4) ensuring the use of detailed performance 
     specifications in instances in which performance based 
     contracting is used;
       ``(5) managing the direction of acquisition policy for the 
     Coast Guard, including implementation of the unique 
     acquisition policies, regulations, and standards of the Coast 
     Guard;
       ``(6) developing and maintaining an acquisition career 
     management program in the Coast Guard to ensure that there is 
     an adequate acquisition workforce;
       ``(7) assessing the requirements established for Coast 
     Guard personnel regarding knowledge and skill in acquisition 
     resources and management and the adequacy of such 
     requirements for facilitating the achievement of the 
     performance goals established for acquisition management;
       ``(8) developing strategies and specific plans for hiring, 
     training, and professional development; and
       ``(9) reporting to the Commandant, through the chain of 
     command, on the progress made in improving acquisition 
     management capability.''.
       (b Clerical Amendment.--The table of contents for chapter 3 
     of title 14, United States Code, is amended by adding at the 
     end the following:

``55. Chief Acquisition Officer.''.

       (c) Selection Deadline.--As soon as practicable after the 
     date of enactment of this Act, but no later than October 1, 
     2011, the Commandant of the Coast Guard shall select a Chief 
     Acquisition Officer under section 55 of title 14, United 
     States Code.

     SEC. 502. ACQUISITIONS.

       (a) In General.--Part I of title 14, United States Code, is 
     amended by inserting after chapter 13 the following:

                       ``CHAPTER 15. ACQUISITIONS

                   ``Subchapter 1--General Provisions

``Sec.
``561. Acquisition directorate
``562. Senior acquisition leadership team
``563. Improvements in Coast Guard acquisition management
``564. Recognition of Coast Guard personnel for excellence in 
              acquisition
``565. Prohibition on use of lead systems integrators
``566. Required contract terms
``567. Department of Defense consultation
``568. Undefinitized contractual actions

      ``Subchapter 2--Improved Acquisition Process and Procedures

``Sec.
``571. Identification of major system acquisitions
``572. Acquisition
``573. Preliminary development and demonstration
``574. Acquisition, production, deployment, and support
``575. Acquisition program baseline breach

                      ``Subchapter 3--Definitions

``Sec.
``581. Definitions

                   ``Subchapter 1--General Provisions

     `` 561. Acquisition directorate

       ``(a) Establishment.--The Commandant of the Coast Guard 
     shall establish an acquisition directorate to provide 
     guidance and oversight for the implementation and management 
     of all Coast Guard acquisition processes, programs, and 
     projects.
       ``(b) Mission.--The mission of the acquisition directorate 
     is--
       ``(1) to acquire and deliver assets and systems that 
     increase operational readiness, enhance mission performance, 
     and create a safe working environment; and
       ``(2) to assist in the development of a workforce that is 
     trained and qualified to further the Coast Guard's missions 
     and deliver the best value products and services to the 
     Nation.

     `` 562. Senior acquisition leadership team

       ``(a) Establishment.--The Commandant shall establish a 
     senior acquisition leadership team within the Coast Guard 
     comprised of--
       ``(1) the Vice Commandant;
       ``(2) the Deputy and Assistant Commandants;
       ``(3) appropriate senior staff members of each Coast Guard 
     directorate;
       ``(4) appropriate senior staff members for each assigned 
     field activity or command; and
       ``(5) any other Coast Guard officer or employee designated 
     by the Commandant.
       ``(b) Function.--The senior acquisition leadership team 
     shall--
       ``(1) meet at the call of the Commandant at such places and 
     such times as the Commandant may require;
       ``(2) provide advice and information on operational and 
     performance requirements of the Coast Guard;
       ``(3) identify gaps and vulnerabilities in the operational 
     readiness of the Coast Guard;
       ``(4) make recommendations to the Commandant and the Chief 
     Acquisition Officer to remedy the identified gaps and 
     vulnerabilities in the operational readiness of the Coast 
     Guard; and
       ``(5) contribute to the development of a professional, 
     experienced acquisition workforce by providing acquisition-
     experience tours of duty and educational development for 
     officers and employees of the Coast Guard.

     `` 563. Improvements in Coast Guard acquisition management

       ``(a) Project and Program Managers.--
       ``(1) Project or program manager defined.--In this section, 
     the term `project or program manager' means an individual 
     designated--
       ``(A) to develop, produce, and deploy a new asset to meet 
     identified operational requirements; and
       ``(B) to manage cost, schedule, and performance of the 
     acquisition or project or program.
       ``(2) Level 1 projects.-- An individual may not be assigned 
     as the project or program manager for a Level 1 acquisition 
     unless the individual holds a Level III acquisition 
     certification as a program manager.
       ``(3) Level 2 projects.--An individual may not be assigned 
     as the project or program manager for a Level 2 acquisition 
     unless the individual holds a Level II acquisition 
     certification as a program manager.
       ``(b) Guidance on Tenure and Accountability of Program and 
     Project Managers.--Not later than one year after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     years 2010 and 2011, the Commandant shall issue guidance to 
     address the qualifications, resources, responsibilities, 
     tenure, and accountability of program and project managers 
     for the management of acquisition programs and projects. The 
     guidance shall address, at a minimum--
       ``(1) the qualifications required for project or program 
     managers, including the number of years of acquisition 
     experience and the professional training levels to be 
     required of those appointed to project or program management 
     positions; and
       ``(2) authorities available to project or program managers, 
     including, to the extent appropriate, the authority to object 
     to the addition of new program requirements that would be 
     inconsistent with the parameters established for an 
     acquisition program.
       ``(c) Acquisition Workforce.--
       ``(1) In general.--The Commandant shall designate a 
     sufficient number of positions to be in the Coast Guard's 
     acquisition workforce to perform acquisition-related 
     functions at Coast Guard headquarters and field activities.
       ``(2) Required positions.--The Commandant shall ensure that 
     members of the acquisition workforce have expertise, 
     education, and training in at least 1 of the following 
     acquisition career fields:
       ``(A) Acquisition logistics.
       ``(B) Auditing.
       ``(C) Business, cost estimating, and financial management.
       ``(D) Contracting.
       ``(E) Facilities engineering.
       ``(F) Industrial or contract property management.
       ``(G) Information technology.
       ``(H)) Manufacturing, production, and quality assurance.
       ``(I) Program management.
       ``(J) Purchasing.

[[Page 13966]]

       ``(K) Science and technology.
       ``(L) Systems planning, research, development, and 
     engineering.
       ``(M) Test and evaluation.
       ``(3) Acquisition workforce expedited hiring authority.--
       ``(A) In general.--For purposes of sections 3304, 5333, and 
     5753 of title 5, the Commandant may--
       ``(i) designate any category of acquisition positions 
     within the Coast Guard as shortage category positions; and
       ``(ii) use the authorities in such sections to recruit and 
     appoint highly qualified person directly to positions so 
     designated.
       ``(B) Limitation.--The Commandant may not appoint a person 
     to a position of employment under this paragraph after 
     September 30, 2012.
       ``(d) Management Information System.--
       ``(1) In general.--The Commandant shall establish a 
     management information system capability to improve 
     acquisition workforce management and reporting.
       ``(2) Information maintained.--Information maintained with 
     such capability shall include the following standardized 
     information on individuals assigned to positions in the 
     workforce:
       ``(A) Qualifications, assignment history, and tenure of 
     those individuals assigned to positions in the acquisition 
     workforce or holding acquisition-related certifications.
       ``(B) Promotion rates for officers and members of the Coast 
     Guard in the acquisition workforce.
       ``(e) Career Paths.--To establish acquisition management as 
     a core competency of the Coast Guard, the Commandant shall--
       ``(1) ensure that career paths for officers, members, and 
     employees of the Coast Guard who wish to pursue careers in 
     acquisition are identified in terms of the education, 
     training, experience, and assignments necessary for career 
     progression of those officers, members, and employees to the 
     most senior positions in the acquisition workforce; and
       ``(2) publish information on such career paths.

     `` 564. Recognition of Coast Guard personnel for excellence 
       in acquisition

       ``(a) In General.--Not later than 180 days after the date 
     of enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011, the Commandant shall commence 
     implementation of a program to recognize excellent 
     performance by individuals and teams comprised of officers, 
     members, and employees of the Coast Guard that contributed to 
     the long-term success of a Coast Guard acquisition project or 
     program.
       ``(b) Elements.--The program shall include--
       ``(1) specific award categories, criteria, and eligibility 
     and manners of recognition;
       ``(2) procedures for the nomination by personnel of the 
     Coast Guard of individuals and teams comprised of officers, 
     members, and employees of the Coast Guard for recognition 
     under the program; and
       ``(3) procedures for the evaluation of nominations for 
     recognition under the program by one or more panels of 
     individuals from the Government, academia, and the private 
     sector who have such expertise and are appointed in such 
     manner as the Commandant shall establish for the purposes of 
     this program.
       ``(c) Award of Cash Bonuses.--As part of the program 
     required by subsection (a), the Commandant, subject to the 
     availability of appropriations, may award to any civilian 
     employee recognized pursuant to the program a cash bonus to 
     the extent that the performance of such individual so 
     recognized warrants the award of such bonus.

     `` 565. Prohibition on use of lead systems integrators

       ``(a) In General.--
       ``(1) Use of lead systems integrator.--Except as provided 
     in subsection (b), the Commandant may not use a private 
     sector entity as a lead systems integrator for an acquisition 
     contract awarded or delivery order or task order issued after 
     the date of enactment of the Coast Guard Authorization Act 
     for Fiscal Years 2010 and 2011.
       ``(2) Full and open competition.--The Commandant and any 
     lead systems integrator engaged by the Coast Guard, pursuant 
     to the exceptions described in subsection ((b), shall use 
     full and open competition for any acquisition contract 
     awarded after the date of enactment of that Act, unless 
     otherwise excepted in accordance with the Competition in 
     Contracting Act of 1984 (41 U.S. C. 251 note), the amendments 
     made by that Act, and the Federal Acquisition Regulations.
       ``(3) No effect on small business act.--Nothing in this 
     subsection shall be construed to supersede or otherwise 
     affect the authorities provided by and under the Small 
     Business Act (15 U.S.C. 631 et seq.).
       ``(b) Exceptions.--
       ``(1) National distress and response system modernization 
     program; national security cutters 2 and 3.--Notwithstanding 
     subsection (a), the Commandant may use a private sector 
     entity as a lead systems integrator for the Coast Guard to 
     complete the National Distress and Response System 
     Modernization Program, the C4ISR projects directly related to 
     the Integrated Deepwater Program, and National Security 
     Cutters 2 and 3 if the Secretary of Homeland Security 
     certifies that--
       ``(A) the acquisition is in accordance with the Competition 
     in Contracting Act of 1984 (41 U.S.C. 251 note), the 
     amendments made by that Act, and the Federal Acquisition 
     Regulations; and
       ``(B) the acquisition and the use of a private sector 
     entity as a lead systems integrator for the acquisition is in 
     the best interest of the Federal Government.
       ``(2) Termination date for exceptions.--Except for the 
     modification of delivery or task orders pursuant to Parts 4 
     and 42 of the Federal Acquisition Regulations, the Commandant 
     may not use a private sector entity as a lead systems 
     integrator after the earlier of--
       ``(A) September 30, 2012; or
       ``(B) the date on which the Commandant certifies in writing 
     to the appropriate congressional committees that the Coast 
     Guard has available and can retain sufficient contracting 
     personnel and expertise within the Coast Guard, through an 
     arrangement with other Federal agencies, or through contracts 
     or other arrangements with private sector entities, to 
     perform the functions and responsibilities of the lead system 
     integrator in an efficient and cost-effective manner.

     `` 566. Required contract terms

       ``(a) In General.--The Commandant shall ensure that a 
     contract awarded or a delivery order or task order issued for 
     an acquisition of a capability or an asset with an expected 
     service life of 10 years and with a total acquisition cost 
     that is equal to or exceeds $10,000,000 awarded or issued by 
     the Coast Guard after the date of enactment of the Coast 
     Guard Authorization Act for Fiscal Years 2010 and 2011--
       ``(1) provides that all certifications for an end-state 
     capability or asset under such contract, delivery order, or 
     task order, respectively, will be conducted by the Commandant 
     or an independent third party, and that self-certification by 
     a contractor or subcontractor is not allowed;
       ``(2) requires that the Commandant shall maintain the 
     authority to establish, approve, and maintain technical 
     requirements;
       ``(3) requires that any measurement of contractor and 
     subcontractor performance be based on the status of all work 
     performed, including the extent to which the work performed 
     met all performance, cost, and schedule requirements;
       ``(4) specifies that, for the acquisition or upgrade of 
     air, surface, or shore capabilities and assets for which 
     compliance with TEMPEST certification is a requirement, the 
     standard for determining such compliance will be the air, 
     surface, or shore standard then used by the Department of the 
     Navy for that type of capability or asset; and
       ``(5) for any contract awarded to acquire an Offshore 
     Patrol Cutter, includes provisions specifying the service 
     life, fatigue life, and days underway in general Atlantic and 
     North Pacific Sea conditions, maximum range, and maximum 
     speed the cutter will be built to achieve.
       ``(b) Prohibited Contract Provisions.--The Commandant shall 
     ensure that any contract awarded or delivery order or task 
     order issued by the Coast Guard after the date of enactment 
     of the Coast Guard Authorization Act for Fiscal Years 2010 
     and 2011 does not include any provision allowing for 
     equitable adjustment that is not consistent with the Federal 
     Acquisition Regulations.
       ``(c) Integrated Product Teams.--Integrated product teams, 
     and all teams that oversee integrated product teams, shall be 
     chaired by officers, members, or employees of the Coast 
     Guard.
       ``(d) Deepwater Technical Authorities.--The Commandant 
     shall maintain or designate the technical authorities to 
     establish, approve, and maintain technical requirements. Any 
     such designation shall be made in writing and may not be 
     delegated to the authority of the Chief Acquisition Officer 
     established by section 55 of this title.

     `` 567. Department of Defense consultation

       ``(a) In General.--The Commandant shall make arrangements 
     as appropriate with the Secretary of Defense for support in 
     contracting and management of Coast Guard acquisition 
     programs. The Commandant shall also seek opportunities to 
     make use of Department of Defense contracts, and contracts of 
     other appropriate agencies, to obtain the best possible price 
     for assets acquired for the Coast Guard.
       ``(b) Inter-service Technical Assistance.--The Commandant 
     shall seek to enter into a memorandum of understanding or a 
     memorandum of agreement with the Secretary of the Navy to 
     obtain the assistance of the Office of the Assistant 
     Secretary of the Navy for Research, Development, and 
     Acquisition, including the Navy Systems Command, with the 
     oversight of Coast Guard major acquisition programs. The 
     memorandum of understanding or memorandum of agreement shall, 
     at a minimum, provide for--
       ``(1) the exchange of technical assistance and support that 
     the Assistant Commandants for Acquisition, Human Resources, 
     Engineering, and Information technology may identify;
       ``(2) the use, as appropriate, of Navy technical expertise; 
     and
       ``(3) the exchange of personnel between the Coast Guard and 
     the Office of the Assistant

[[Page 13967]]

     Secretary of the Navy for Research, Development, and 
     Acquisition, including Naval Systems Commands, to facilitate 
     the development of organic capabilities in the Coast Guard.
       ``(c) Technical Requirement Approval Procedures.--The Chief 
     Acquisition Officer shall adopt, to the extent practicable, 
     procedures modeled after those used by the Navy Senior 
     Acquisition Official to approve all technical requirements.

     `` 568. Undefinitized contractual actions

       ``(a) In General.--The Coast Guard may not enter into an 
     undefinitized contractual action unless such action is 
     directly approved by the Head of Contracting Activity of the 
     Coast Guard.
       ``(b) Requests for Undefinitized Contractual Actions.--Any 
     request to the Head of Contracting Activity for approval of 
     an undefinitized contractual action shall include a 
     description of the anticipated effect on requirements of the 
     Coast Guard if a delay is incurred for the purposes of 
     determining contractual terms, specifications, and price 
     before performance is begun under the contractual action.
       ``(c) Requirements for Undefinitized Contractual Actions.--
       ``(1) Deadline for agreement on terms, specifications, and 
     price.--A contracting officer of the Coast Guard may not 
     enter into an undefinitized contractual action unless the 
     contractual action provides for agreement upon contractual 
     terms, specification, and price by the earlier of--
       ``(A) the end of the 180-day period beginning on the date 
     on which the contractor submits a qualifying proposal to 
     definitize the contractual terms, specifications, and price; 
     or
       ``(B) the date on which the amount of funds obligated under 
     the contractual action is equal to more than 50 percent of 
     the negotiated overall ceiling price for the contractual 
     action.
       ``(2) Limitation on obligations.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the contracting officer for an undefinitized contractual 
     action may not obligate under such contractual action an 
     amount that exceeds 50 percent of the negotiated overall 
     ceiling price until the contractual terms, specifications, 
     and price are definitized for such contractual action.
       ``(B) Exception.--Notwithstanding subparagraph (A), if a 
     contractor submits a qualifying proposal to definitize an 
     undefinitized contractual action before an amount that 
     exceeds 50 percent of the negotiated overall ceiling price is 
     obligated on such action, the contracting officer for such 
     action may not obligate with respect to such contractual 
     action an amount that exceeds 75 percent of the negotiated 
     overall ceiling price until the contractual terms, 
     specifications, and price are definitized for such 
     contractual action.
       ``(3) Waiver.--The Commandant may waive the application of 
     this subsection with respect to a contract if the Commandant 
     determines that the waiver is necessary to support--
       ``(A) a contingency operation (as that term is defined in 
     section 101(a)(13) of title 10);
       ``(B) operations to prevent or respond to a transportation 
     security incident (as defined in section 70101(6) of title 
     46);
       ``(C) an operation in response to an emergency that poses 
     an unacceptable threat to human health or safety or to the 
     marine environment; or
       ``(D) an operation in response to a natural disaster or 
     major disaster or emergency designated by the President under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       ``(4) Limitation on application.--This subsection does not 
     apply to an undefinitized contractual action for the purchase 
     of initial spares.
       ``(d) Inclusion of Nonurgent Requirements.--Requirements 
     for spare parts and support equipment that are not needed on 
     an urgent basis may not be included in an undefinitized 
     contractual action by the Coast Guard for spare parts and 
     support equipment that are needed on an urgent basis unless 
     the Commandant approves such inclusion as being--
       ``(1) good business practice; and
       ``(2) in the best interests of the United States.
       ``(e) Modification of Scope.--The scope of an undefinitized 
     contractual action under which performance has begun may not 
     be modified unless the Commandant approves such modification 
     as being--
       ``(1) good business practice; and
       ``(2) in the best interests of the United States.
       ``(f) Allowable Profit.--The Commandant shall ensure that 
     the profit allowed on an undefinitized contractual action for 
     which the final price is negotiated after a substantial 
     portion of the performance required is completed reflects--
       ``(1) the possible reduced cost risk of the contractor with 
     respect to costs incurred during performance of the contract 
     before the final price is negotiated; and
       ``(2) the reduced cost risk of the contractor with respect 
     to costs incurred during performance of the remaining portion 
     of the contract.
       ``(g) Definitions.--In this section:
       ``(1) Undefinitized contractual action.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `undefinitized contractual action' means a new 
     procurement action entered into by the Coast Guard for which 
     the contractual terms, specifications, or price are not 
     agreed upon before performance is begun under the action.
       ``(B) Exclusion.--The term `undefinitized contractual 
     action' does not include contractual actions with respect 
     to--
       ``(i) foreign military sales;
       ``(ii) purchases in an amount not in excess of the amount 
     of the simplified acquisition threshold; or
       ``(iii) special access programs.
       ``(2) Qualifying proposal.--The term `qualifying proposal' 
     means a proposal that contains sufficient information to 
     enable complete and meaningful audits of the information 
     contained in the proposal as determined by the contracting 
     officer.

      ``Subchapter 2--Improved Acquisition Process and Procedures

     `` 571. Identification of major system acquisitions

       ``(a) In General.--
       ``(1) Support mechanisms.--The Commandant shall develop and 
     implement mechanisms to support the establishment of mature 
     and stable operational requirements for acquisitions under 
     this subchapter.
       ``(2) Mission analysis; affordability assessment.--The 
     Commandant may not initiate a Level 1 or Level 2 acquisition 
     project or program until the Commandant--
       ``(A) completes a mission analysis that--
       ``(i) identifies any gaps in capability; and
       ``(ii) develops a clear mission need; and
       ``(B) prepares a preliminary affordability assessment for 
     the project or program.
       ``(b) Elements.--
       ``(1) Requirements.--The mechanisms required by subsection 
     (a) shall ensure the implementation of a formal process for 
     the development of a mission-needs statement, concept-of-
     operations document, capability development plan, and 
     resource proposal for the initial project or program funding, 
     and shall ensure the project or program is included in the 
     Coast Guard Capital Investment Plan.
       ``(2) Assessment of trade-offs.--In conducting an 
     affordability assessment under subsection (a)(2)(B), the 
     Commandant shall develop and implement mechanisms to ensure 
     that trade-offs among cost, schedule, and performance are 
     considered in the establishment of preliminary operational 
     requirements for development and production of new assets and 
     capabilities for Level 1 and Level 2 acquisitions projects 
     and programs.
       ``(c) Human Resource Capital Planning.--The Commandant 
     shall develop staffing predictions, define human capital 
     performance initiatives, and identify preliminary training 
     needs for any such project or program.
       ``(d) DHS Acquisition Approval.--A Level 1 or Level 2 
     acquisition project or program may not be implemented unless 
     it is approved by the Department of Homeland Security 
     Acquisition Review Board or the Joint Review Board.

     `` 572. Acquisition

       ``(a) In General.--The Commandant may not establish a Level 
     1 or Level 2 acquisition project or program approved under 
     section 571(d) until the Commandant--
       ``(1) clearly defines the operational requirements for the 
     project or program;
       ``(2) establishes the feasibility of alternatives;
       ``(3) develops an acquisition project or program baseline;
       ``(4) produces a life-cycle cost estimate; and
       ``(5) assesses the relative merits of alternatives to 
     determine a preferred solution in accordance with the 
     requirements of this section.
       ``(b) Analysis of Alternatives.--
       ``(1) In general.--The Commandant shall conduct an analysis 
     of alternatives for the asset or capability to be acquired in 
     an analyze and select phase of the acquisition process.
       ``(2) Requirements.--The analysis of alternatives shall be 
     conducted by a Federally-funded research and development 
     center, a qualified entity of the Department of Defense, or a 
     similar independent third party entity that has appropriate 
     acquisition expertise and has no substantial financial 
     interest in any part of the acquisition project or program 
     that is the subject of the analysis. At a minimum, the 
     analysis of alternatives shall include--
       ``(A) an assessment of the technical maturity, and 
     technical and other risks;
       ``(B) an examination of capability, interoperability, and 
     other disadvantages;
       ``(C) an evaluation of whether different combinations or 
     quantities of specific assets or capabilities could meet the 
     Coast Guard's overall performance needs;
       ``(D) a discussion of key assumptions and variables, and 
     sensitivity to change in such assumptions and variables;
       ``(E) when an alternative is an existing asset or 
     prototype, an evaluation of relevant safety and performance 
     records and costs;
       ``(F) a calculation of life-cycle costs including--
       ``(i) an examination of likely research and development 
     costs and the levels of uncertainty associated with such 
     estimated costs;

[[Page 13968]]

       ``(ii) an examination of likely production and deployment 
     costs and levels of uncertainty associated with such 
     estimated costs;
       ``(iii) an examination of likely operating and support 
     costs and the levels of uncertainty associated with such 
     estimated costs;
       ``(iv) if they are likely to be significant, an examination 
     of likely disposal costs and the levels of uncertainty 
     associated with such estimated costs; and
       ``(v) such additional measures as the Commandant or the 
     Secretary of Homeland Security determines to be necessary for 
     appropriate evaluation of the asset; and
       ``(G) the business case for each viable alternative.
       ``(c) Test and Evaluation Master Plan.--
       ``(1) In general.--For any Level 1 or Level 2 acquisition 
     project or program the Chief Acquisition Officer shall 
     approve a test and evaluation master plan specific to the 
     acquisition project or program for the capability, asset, or 
     subsystems of the capability or asset and intended to 
     minimize technical, cost, and schedule risk as early as 
     practicable in the development of the project or program.
       ``(2) Test and evaluation strategy.--The master plan 
     shall--
       ``(A) set forth an integrated test and evaluation strategy 
     that will verify that capability-level or asset-level and 
     subsystem-level design and development, including performance 
     and supportability, have been sufficiently proven before the 
     capability, asset, or subsystem of the capability or asset is 
     approved for production; and
       ``(B) require that adequate developmental tests and 
     evaluations and operational tests and evaluations established 
     under subparagraph (A) are performed to inform production 
     decisions.
       ``(3) Other components of the master plan.--At a minimum, 
     the master plan shall identify--
       ``(A) the key performance parameters to be resolved through 
     the integrated test and evaluation strategy;
       ``(B) critical operational issues to be assessed in 
     addition to the key performance parameters;
       ``(C) specific development test and evaluation phases and 
     the scope of each phase;
       ``(D) modeling and simulation activities to be performed, 
     if any, and the scope of such activities;
       ``(E) early operational assessments to be performed, if 
     any, and the scope of such assessments;
       ``(F) operational test and evaluation phases;
       ``(G) an estimate of the resources, including funds, that 
     will be required for all test, evaluation, assessment, 
     modeling, and simulation activities; and
       ``(H) the Government entity or independent entity that will 
     perform the test, evaluation, assessment, modeling, and 
     simulation activities.
       ``(4) Update.--The Chief Acquisition Officer shall approve 
     an updated master plan whenever there is a revision to 
     project or program test and evaluation strategy, scope, or 
     phasing.
       ``(5) Limitation.--The Coast Guard may not--
       ``(A) proceed beyond that phase of the acquisition process 
     that entails approving the supporting acquisition of a 
     capability or asset before the master plan is approved by the 
     Chief Acquisition Officer; or
       ``(B) award any production contract for a capability, 
     asset, or subsystem for which a master plan is required under 
     this subsection before the master plan is approved by the 
     Chief Acquisition Officer.
       ``(d) Life-cycle cost estimates.--
       ``(1) In general.--The Commandant shall implement 
     mechanisms to ensure the development and regular updating of 
     life-cycle cost estimates for each Level 1 or Level 2 
     acquisition to ensure that these estimates are considered in 
     decisions to develop or produce new or enhanced capabilities 
     and assets.
       ``(2) Types of estimates.--In addition to life-cycle cost 
     estimates that may be developed by acquisition program 
     offices, the Commandant shall require that an independent 
     life-cycle cost estimate be developed for each Level 1 or 
     Level 2 acquisition project or program.
       ``(3) Required updates.--For each Level 1 or Level 2 
     acquisition project or program the Commandant shall require 
     that life-cycle cost estimates shall be updated before each 
     milestone decision is concluded and the project or program 
     enters a new acquisition phase.
       ``(e) DHS Acquisition Approval.--A project or program may 
     not enter the obtain phase under section 573 unless the 
     Department of Homeland Security Acquisition Review Board or 
     the Joint Review Board (or other entity to which such 
     responsibility is delegated by the Secretary of Homeland 
     Security) has approved the analysis of alternatives for the 
     project. The Joint Review Board may also approve the low 
     rates initial production quantity for the project or program 
     if such an initial production quantity is planned by the 
     acquisition project or program and deemed appropriate by the 
     Joint Review Board.

     `` 573. Preliminary development and demonstration

       ``(a) In General.--The Commandant shall ensure that 
     developmental test and evaluation, operational test and 
     evaluation, life cycle cost estimates, and the development 
     and demonstration requirements are met to confirm that the 
     projects or programs meet the requirements described in the 
     mission-needs statement and the operational-requirements 
     document and the following development and demonstration 
     objectives:
       ``(1) To demonstrate that the most promising design, 
     manufacturing, and production solution is based upon a 
     stable, producible, and cost-effective product design.
       ``(2) To ensure that the product capabilities meet contract 
     specifications, acceptable operational performance 
     requirements, and system security requirements.
       ``(3) To ensure that the product design is mature enough to 
     commit to full production and deployment.
       ``(b) Tests and Evaluations.--
       ``(1) In general.--The Commandant shall ensure that the 
     Coast Guard conducts developmental tests and evaluations and 
     operational tests and evaluations of a capability or asset 
     and the subsystems of the capability or asset for which a 
     master plan has been prepared under section 572(c)(1).
       ``(2) Use of third parties.--The Commandant shall ensure 
     that the Coast Guard uses independent third parties with 
     expertise in testing and evaluating the capabilities or 
     assets and the subsystems of the capabilities or assets being 
     acquired to conduct developmental tests and evaluations and 
     operational tests and evaluations whenever the Coast Guard 
     lacks the capability to conduct the tests and evaluations 
     required by a master plan.
       ``(3) Communication of safety concerns.--The Commandant 
     shall require that safety concerns identified during 
     developmental or operational tests and evaluations or through 
     independent or Government-conducted design assessments of 
     capabilities or assets and subsystems of capabilities or 
     assets to be acquired by the Coast Guard shall be 
     communicated as soon as practicable, but not later than 30 
     days after the completion of the test or assessment event or 
     activity that identified the safety concern, to the program 
     manager for the capability or asset and the subsystems 
     concerned and to the Chief Acquisition Officer.
       ``(4) Asset already in low, initial, or full-rate 
     production.--If operational test and evaluation on a 
     capability or asset already in low, initial, or full-rate 
     production identifies a safety concern with the capability or 
     asset or any subsystems of the capability or asset not 
     previously identified during developmental or operational 
     test and evaluation, the Commandant shall--
       ``(A) notify the program manager and the Chief Acquisition 
     Officer of the safety concern as soon as practicable, but not 
     later than 30 days after the completion of the test and 
     evaluation event or activity that identified the safety 
     concern; and
       ``(B) notify the Chief Acquisition Officer and include in 
     such notification--
       ``(i) an explanation of the actions that will be taken to 
     correct or mitigate the safety concern in all capabilities or 
     assets and subsystems of the capabilities or assets yet to be 
     produced, and the date by which those actions will be taken;
       ``(ii) an explanation of the actions that will be taken to 
     correct or mitigate the safety concern in previously produced 
     capabilities or assets and subsystems of the capabilities or 
     assets, and the date by which those actions will be taken; 
     and
       ``(iii) an assessment of the adequacy of current funding to 
     correct or mitigate the safety concern in capabilities or 
     assets and subsystems of the capabilities or assets and in 
     previously produced capabilities or assets and subsystems.
       ``(c) Technical Certification.--
       ``(1) In general.--The Commandant shall--ensure that any 
     Level 1 or Level 2 acquisition project or program is 
     certified by the technical authority of the Coast Guard after 
     review by an independent third party with capabilities in the 
     mission area, asset, or particular asset component.
       ``(2) TEMPEST testing.--The Commandant shall--
       ``(A) cause all electronics on all aircraft, surface, and 
     shore assets that require TEMPEST certification and that are 
     delivered after the date of enactment of the Coast Guard 
     Authorization Act for Fiscal Years 2010 and 2011 to be tested 
     in accordance with master plan standards and communications 
     security standards by an independent third party that is 
     authorized by the Federal Government to perform such testing; 
     and
       ``(B) certify that the assets meet all applicable TEMPEST 
     requirements.
       ``(3) Vessel classification.--The Commandant shall cause 
     each cutter, other than the National Security Cutter, 
     acquired by the Coast Guard and delivered after the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011 is to be classed by the American Bureau 
     of Shipping before final acceptance.
       ``(d) Acquisition Decision.--The Commandant may not proceed 
     to full scale production, deployment, and support of a Level 
     1 or Level 2 acquisition project or program unless the 
     Department of Homeland Security Acquisition Review Board has 
     verified that the delivered asset or system meets the

[[Page 13969]]

     project or program performance and cost goals.

     `` 574. Acquisition, production, deployment, and support

       ``(a) In General.--The Commandant shall--
       ``(1) ensure there is a stable and efficient production and 
     support capability to develop an asset or system;
       ``(2) conduct follow on testing to confirm and monitor 
     performance and correct deficiencies; and
       ``(3) conduct acceptance tests and trails upon the delivery 
     of each asset or system to ensure the delivered asset or 
     system achieves full operational capability.
       ``(b) Elements.--The Commandant shall--
       ``(1) execute the productions contracts;
       ``(2) ensure the delivered products meet operational cost 
     and schedules requirements established in the acquisition 
     program baseline;
       ``(3) validate manpower and training requirements to meet 
     system needs to operate, maintain, support, and instruct the 
     system; and
       ``(4) prepare a project or program transition plan to enter 
     into programmatic sustainment, operations, and support.

     `` 575. Acquisition program baseline breach

       ``(a) In General.--The Commandant shall submit a report to 
     the appropriate congressional committees as soon as possible, 
     but not later than 30 days, after the Chief Acquisition 
     Officer of the Coast Guard becomes aware of the breach of an 
     acquisition program baseline for any Level 1 or Level 2 
     acquisition program, by--
       ``(1) a likely cost overrun greater than 15 percent of the 
     acquisition program baseline for that individual capability 
     or asset or a class of capabilities or assets;
       ``(2) a likely delay of more than 180 days in the delivery 
     schedule for any individual capability or asset or class of 
     capabilities or assets; or
       ``(3) an anticipated failure for any individual capability 
     or asset or class of capabilities or assets to satisfy any 
     key performance threshold or parameter under the acquisition 
     program baseline.
       ``(b) Content.--The report submitted under subsection (a) 
     shall include--
       ``(1) a detailed description of the breach and an 
     explanation of its cause;
       ``(2) the projected impact to performance, cost, and 
     schedule;
       ``(3) an updated acquisition program baseline and the 
     complete history of changes to the original acquisition 
     program baseline;
       ``(4) the updated acquisition schedule and the complete 
     history of changes to the original schedule;
       ``(5) a full life-cycle cost analysis for the capability or 
     asset or class of capabilities or assets;
       ``(6) a remediation plan identifying corrective actions and 
     any resulting issues or risks; and
       ``(7) a description of how progress in the remediation plan 
     will be measured and monitored.
       ``(c) Substantial Variances in Costs or Schedule.--If a 
     likely cost overrun is greater than 25 percent or a likely 
     delay is greater than 12 months from the costs and schedule 
     described in the acquisition program baseline for any Level 1 
     or Level 2 acquisition project or program of the Coast Guard, 
     the Commandant shall include in the report a written 
     certification, with a supporting explanation, that--
       ``(1) the capability or asset or capability or asset class 
     to be acquired under the project or program is essential to 
     the accomplishment of Coast Guard missions;
       ``(2) there are no alternatives to such capability or asset 
     or capability or asset class which will provide equal or 
     greater capability in both a more cost-effective and timely 
     manner;
       ``(3) the new acquisition schedule and estimates for total 
     acquisition cost are reasonable; and
       ``(4) the management structure for the acquisition program 
     is adequate to manage and control performance, cost, and 
     schedule.

                      ``Subchapter 3--Definitions

     `` 581. Definitions

       ``In this chapter:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means the House of 
     Representatives Committee on Transportation and 
     Infrastructure and the Senate Committee on Commerce, Science, 
     and Transportation.
       ``(2) Chief Acquisition Officer.--The term `Chief 
     Acquisition Officer' means the officer appointed under 
     section 55 of this title.
       ``(3) Commandant.--The term `Commandant' means the 
     Commandant of the Coast Guard.
       ``(4) Joint Review Board.--The term `Joint Review Board' 
     means the Department of Homeland Security's Investment Review 
     Board, Joint Requirements Council, or other entity within the 
     Department designated by the Secretary as the Joint Review 
     Board for purposes of this chapter.
       ``(5) Level 1 acquisition.--The term `Level 1 acquisition' 
     means--
       ``(A) an acquisition by the Coast Guard--
       ``(i) the estimated life-cycle costs of which exceed 
     $1,000,000,000; or
       ``(ii) the estimated total acquisition costs of which 
     exceed $300,000,000; or
       ``(B) any acquisition that the Chief Acquisition Officer of 
     the Coast Guard determines to have a special interest--
       ``(i) due to--

       ``(I) the experimental or technically immature nature of 
     the asset;
       ``(II) the technological complexity of the asset;
       ``(III) the commitment of resources; or
       ``(IV) the nature of the capability or set of capabilities 
     to be achieved; or

       ``(ii) because such acquisition is a joint acquisition.
       ``(6) Level 2 acquisition.--The term `Level 2 acquisition' 
     means an acquisition by the Coast Guard--
       ``(A) the estimated life-cycle costs of which are equal to 
     or less than $1,000,000,000, but greater than $300,000,000; 
     or
       ``(B) the estimated total acquisition costs of which are 
     equal to or less than $300,000,0000, but greater than 
     $100,000,000.
       ``(7) Life-cycle cost.--The term `life-cycle cost' means 
     all costs for development, procurement, construction, and 
     operations and support for a particular capability or asset, 
     without regard to funding source or management control.
       ``(8) Safety concern.--The term `safety concern' means any 
     hazard associated with a capability or asset or a subsystem 
     of a capability or asset that is likely to cause serious 
     bodily injury or death to a typical Coast Guard user in 
     testing, maintaining, repairing, or operating the capability, 
     asset, or subsystem or any hazard associated with the 
     capability, asset, or subsystem that is likely to cause major 
     damage to the capability, asset, or subsystem during the 
     course of its normal operation by a typical Coast Guard 
     user.''.
       (b) Conforming Amendment.--The part analysis for part I of 
     title 14, United States Code, is amended by inserting after 
     the item relating to chapter 13 the following:

``15. Acquisitions...............................................561''.

     SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS-THROUGH CHARGES.

       (a) Comptroller General Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General shall issue a 
     report on pass-through charges on contracts, subcontracts, 
     delivery orders, and task orders that were executed by a lead 
     systems integrator under contract to the Coast Guard during 
     the 3 full calendar years preceding the date of enactment of 
     this Act.
       (2) Matters covered.--The report under this subsection--
       (A) shall assess the extent to which the Coast Guard paid 
     excessive pass-through charges to contractors or 
     subcontractors that provided little or no value to the 
     performance of a contract or the production of a procured 
     asset; and
       (B) shall assess the extent to which the Coast Guard has 
     been particularly vulnerable to excessive pass-through 
     charges on any specific category of contracts or by any 
     specific category of contractors.
       (b) Guidance Required.--
        (1) In General.--Not later than 180 days after the date of 
     enactment of this Act, the Commandant shall prescribe 
     guidance to ensure that pass-through charges on contracts, 
     subcontracts, delivery orders, and task orders that are 
     executed with a private entity acting as a lead systems 
     integrator by or on behalf of the Coast Guard are not 
     excessive in relation to the cost of work performed by the 
     relevant contractor or subcontractor. The guidance shall, at 
     a minimum--
       (A) set forth clear standards for determining when no, or 
     negligible, value has been added to a contract by a 
     contractor or subcontractor;
       (B) set forth procedures for preventing the payment by the 
     Government of excessive pass-through charges; and
       (C) identify any exceptions determined by the Commandant to 
     be in the best interest of the Government.
       (2) Scope of guidance.--The guidance prescribed under this 
     subsection--
       (A) shall not apply to any firm, fixed-price contract or 
     subcontract, delivery order, or task order that is--
       (i) awarded on the basis of adequate price competition, as 
     determined by the Commandant; or
       (ii) for the acquisition of a commercial item, as defined 
     in section 4(12) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403(12)); and
       (B) may include such additional exceptions as the 
     Commandant determines to be necessary in the interest of the 
     United States.
       (c) Excessive Pass-Through Charge Defined.--In this section 
     the term ``excessive pass-through charge'', with respect to a 
     contractor or subcontractor that adds no, or negligible, 
     value to a contract or subcontract, means a charge to the 
     Government by the contractor or subcontractor that is for 
     overhead or profit on work performed by a lower-tier 
     contractor or subcontractor, other than reasonable charges 
     for the direct costs of managing lower-tier contractors and 
     subcontracts and overhead and profit based on such direct 
     costs.
       (d) Application of Guidance.--The guidance prescribed under 
     this section shall apply to contracts awarded to a private 
     entity acting as a lead systems integrator by or

[[Page 13970]]

     on behalf of the Coast Guard on or after the date that is 360 
     days after the date of enactment of this Act.

                   TITLE VI--SHIPPING AND NAVIGATION

     SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF TITLE 46, 
                   UNITED STATES CODE.

       (a) In General.--Chapter 313 of title 46, United States 
     Code, is amended--
       (1) by striking ``of Transportation'' in sections 31302, 
     31306, 31321, 31330, and 31343 each place it appears;
       (2) by striking ``and'' after the semicolon in section 
     31301(5)(F);
       (3) by striking ``office.'' in section 31301(6) and 
     inserting ``office; and''; and
       (4) by adding at the end of section 31301 the following:
       ``(7) `Secretary' means the Secretary of the Department of 
     Homeland Security, unless otherwise noted.''.
       (b) Secretary as Mortgagee.--Section 31308 of such title is 
     amended by striking ``When the Secretary of Commerce or 
     Transportation is a mortgagee under this chapter, the 
     Secretary'' and inserting ``The Secretary of Commerce or 
     Transportation, as a mortgagee under this chapter,''.
       (c) Secretary of Transportation.--Section 31329(d) of such 
     title is amended by striking ``Secretary.'' and inserting 
     ``Secretary of Transportation.''.
       (d) Mortgagee.--
       (1) Section 31330(a)(1) of such title, as amended by 
     subsection (a)(1) of this section, is amended--
       (A) by inserting ``or'' after the semicolon in subparagraph 
     (B);
       (B) by striking ``Secretary; or'' in subparagraph (C) and 
     inserting ``Secretary.''; and
       (C) by striking subparagraph (D).
       (2) Section 31330(a)(2) is amended--
       (A) by inserting ``or'' after the semicolon in subparagraph 
     (B);
       (B) by striking ``faith; or'' in subparagraph (C) and 
     inserting ``faith.''; and
       (C) by striking subparagraph (D).

     SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 70122. Regulations

       ``Unless otherwise provided, the Secretary may issue 
     regulations necessary to implement this chapter.''.
       (b) Clerical Amendment.--The table of contents for chapter 
     701 of such title is amended by adding at the end the 
     following new item:

``70122. Regulations.''.

     SEC. 603. COAST GUARD TO MAINTAIN LORAN-C NAVIGATION SYSTEM.

       (a) In General.--The Secretary of Transportation shall 
     maintain the LORAN-C navigation system until such time as the 
     Secretary is authorized by statute, explicitly referencing 
     this section, to cease operating the system but expedite 
     modernization projects necessary for transition to eLORAN 
     technology.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Transportation, in 
     addition to funds authorized under section 101 of this Act 
     for the Coast Guard for operation of the LORAN-C system and 
     for the transition to eLORAN, for capital expenses related to 
     the LORAN-C infrastructure and to modernize and upgrade the 
     LORAN infrastructure to provide eLORAN services, $37,000,000 
     for each of fiscal years 2010 and 2011. The Secretary of 
     Transportation may transfer from the Federal Aviation 
     Administration and other agencies of the Department of 
     Transportation such funds as may be necessary to reimburse 
     the Coast Guard for related expenses.
       (c) Report on Transition to eLORAN Technology.--No later 
     than 6 months after the date of enactment of this Act, the 
     Secretary of Transportation, in cooperation with the 
     Secretary of the Department in which the Coast Guard is 
     operating, shall provide a report to the Senate Committee on 
     Commerce, Science, and Transportation and the House of 
     Representatives Committee on Transportation and 
     Infrastructure a detailed 5-year plan for transition to 
     eLORAN technology that includes--
       (1) the timetable, milestones, projects, and future funding 
     required to complete the transition from LORAN-C to eLORAN 
     technology for provision of positioning, navigation, and 
     timing services; and
       (2) the benefits of eLORAN for national transportation 
     safety, security, and economic growth.

     SEC. 604. ICEBREAKERS.

       (a) Analyses.--Not later than 90 days after the date of 
     enactment of this Act or the date of completion of the 
     ongoing High Latitude Study to assess polar ice-breaking 
     mission requirements, which ever occurs later, the Commandant 
     of the Coast Guard shall--
       (1) conduct a comparative cost-benefit analysis of--
       (A) rebuilding, renovating, or improving the existing fleet 
     of polar icebreakers for operation by the Coast Guard,
       (B) constructing new polar icebreakers for operation by the 
     Coast Guard for operation by the Coast Guard, and
       (C) any combination of the activities described in 
     subparagraphs (A) and (B),
     to carry out the missions of the Coast Guard; and
       (2) conduct an analysis of the impact on mission capacity 
     and the ability of the United States to maintain a presence 
     in the polar regions through the year 2020 if 
     recapitalization of the polar icebreaker fleet, either by 
     constructing new polar icebreakers or rebuilding, renovating, 
     or improving the existing fleet of polar icebreakers, is not 
     fully funded.
       (b) Reports to Congress.--
       (1) Not later than 90 days after the date of enactment of 
     this Act or the date of completion of the ongoing High 
     Latitude Study to assess polar ice-breaking mission 
     requirements, which ever occurs later, the Commandant of the 
     Coast Guard shall submit a report containing the results of 
     the study, together with recommendations the Commandant deems 
     appropriate under section 93(a)(24) of title 14, United 
     States Code, to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure.
       (2) Not later than 1 year after the date of enactment of 
     this Act, the Commandant shall submit reports containing the 
     results of the analyses required under paragraphs (1) and (2) 
     of subsection (a), together with recommendations the 
     Commandant deems appropriate under section 93(a)(24) of title 
     14, United States Code, to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure.

     SEC. 605. VESSEL SIZE LIMITS.

       (a) Length, Tonnage, and Horsepower.--Section 12113(d)(2) 
     of title 46, United States Code, is amended--
       (1) by inserting ``and'' after the semicolon at the end of 
     subparagraph (A)(i);
       (2) by striking ``and'' at the end of subparagraph (A)(ii);
       (3) by striking subparagraph (A)(iii);
       (4) by striking the period at the end of subparagraph (B) 
     and inserting ``; or''; and
       (5) by inserting at the end the following:
       ``(C) the vessel is either a rebuilt vessel or a 
     replacement vessel under section 208(g) of the American 
     Fisheries Act (title II of division C of Public Law 105-277; 
     112 Stat. 2681-627) and is eligible for a fishery endorsement 
     under this section.''.
       (b) Conforming Amendments.--
       (1) Vessel rebuilding and replacement.--Section 208(g) of 
     the American Fisheries Act (title II of division C of Public 
     Law 105-277; 112 Stat. 2681-627) is amended to read as 
     follows:
       ``(g) Vessel Rebuilding and Replacement.--
       ``(1) In general.--
       ``(A) Rebuild or replace.--Notwithstanding any limitation 
     to the contrary on replacing, rebuilding, or lengthening 
     vessels or transferring permits or licenses to a replacement 
     vessel contained in sections 679.2 and 679.4 of title 50, 
     Code of Federal Regulations, as in effect on the date of 
     enactment of the Coast Guard Authorization Act for Fiscal 
     Years 2010 and 2011 and except as provided in paragraph (4), 
     the owner of a vessel eligible under subsection (a), (b), 
     (c), (d), or (e) (other than paragraph (21)), in order to 
     improve vessel safety and operational efficiencies (including 
     fuel efficiency), may rebuild or replace that vessel 
     (including fuel efficiency) with a vessel documented with a 
     fishery endorsement under section 12113 of title 46, United 
     States Code.
       ``(B) Same requirements.--The rebuilt or replacement vessel 
     shall be eligible in the same manner and subject to the same 
     restrictions and limitations under such subsection as the 
     vessel being rebuilt or replaced.
       ``(C) Transfer of permits and licenses.--Each fishing 
     permit and license held by the owner of a vessel or vessels 
     to be rebuilt or replaced under subparagraph (A) shall be 
     transferred to the rebuilt or replacement vessel.
       ``(2) Recommendations of north pacific council.--The North 
     Pacific Council may recommend for approval by the Secretary 
     such conservation and management measures, including size 
     limits and measures to control fishing capacity, in 
     accordance with the Magnuson-Stevens Act as it considers 
     necessary to ensure that this subsection does not diminish 
     the effectiveness of fishery management plans of the Bering 
     Sea and Aleutian Islands Management Area or the Gulf of 
     Alaska.
       ``(3) Special rule for replacement of certain vessels.--
       ``(A) In general.--Notwithstanding the requirements of 
     subsections (b)(2), (c)(1), and (c)(2) of section 12113 of 
     title 46, United States Code, a vessel that is eligible under 
     subsection (a), (b), (c), (d), or (e) (other than paragraph 
     (21)) and that qualifies to be documented with a fishery 
     endorsement pursuant to section 203(g) or 213(g) may be 
     replaced with a replacement vessel under paragraph (1) if the 
     vessel that is replaced is validly documented with a fishery 
     endorsement pursuant to section 203(g) or 213(g) before the 
     replacement vessel is documented with a fishery endorsement 
     under section 12113 of title 46, United States Code.
       ``(B) Applicability.--A replacement vessel under 
     subparagraph (A) and its owner and

[[Page 13971]]

     mortgagee are subject to the same limitations under section 
     203(g) or 213(g) that are applicable to the vessel that has 
     been replaced and its owner and mortgagee.
       ``(4) Special rules for certain catcher vessels.--
       ``(A) In general.--A replacement for a covered vessel 
     described in subparagraph (B) is prohibited from harvesting 
     fish in any fishery (except for the Pacific whiting fishery) 
     managed under the authority of any regional fishery 
     management council (other than the North Pacific Council) 
     established under section 302(a) of the Magnuson-Stevens Act.
       ``(B) Covered vessels.--A covered vessel referred to in 
     subparagraph (A) is--
       ``(i) a vessel eligible under subsection (a), (b), or (c) 
     that is replaced under paragraph (1); or
       ``(ii) a vessel eligible under subsection (a), (b), or (c) 
     that is rebuilt to increase its registered length, gross 
     tonnage, or shaft horsepower.
       ``(5) Limitation on fishery endorsements.--Any vessel that 
     is replaced under this subsection shall thereafter not be 
     eligible for a fishery endorsement under section 12113 of 
     title 46, United States Code, unless that vessel is also a 
     replacement vessel described in paragraph (1).
       ``(6) Gulf of alaska limitation.--Notwithstanding paragraph 
     (1), the Secretary shall prohibit from participation in the 
     groundfish fisheries of the Gulf of Alaska any vessel that is 
     rebuilt or replaced under this subsection and that exceeds 
     the maximum length overall specified on the license that 
     authorizes fishing for groundfish pursuant to the license 
     limitation program under part 679 of title 50, Code of 
     Federal Regulations, as in effect on the date of enactment of 
     the Coast Guard Authorization Act for Fiscal Years 2010 and 
     2011.
       ``(7) Authority of pacific council.--Nothing in this 
     section shall be construed to diminish or otherwise affect 
     the authority of the Pacific Council to recommend to the 
     Secretary conservation and management measures to protect 
     fisheries under its jurisdiction (including the Pacific 
     whiting fishery) and participants in such fisheries from 
     adverse impacts caused by this Act.''.
       (2) Exemption of certain vessels.--Section 203(g) of the 
     American Fisheries Act (title II of division C of Public Law 
     105-277; 112 Stat. 2681-620) is amended--
       (A) by inserting ``and'' after ``(United States official 
     number 651041)'';
       (B) by striking ``, NORTHERN TRAVELER (United States 
     official number 635986), and NORTHERN VOYAGER (United States 
     official number 637398) (or a replacement vessel for the 
     NORTHERN VOYAGER that complies with paragraphs (2), (5), and 
     (6) of section 208(g) of this Act)''; and
       (C) by striking ``, in the case of the NORTHERN'' and all 
     that follows through ``PHOENIX,''.
       (3) Fishery cooperative exit provisions.--Section 210(b) of 
     the American Fisheries Act (title II of division C of Public 
     Law 105-277; 112 Stat. 2681-629) is amended--
       (A) by moving the matter beginning with ``the Secretary 
     shall'' in paragraph (1) 2 ems to the right; and
       (B) by adding at the end the following:
       ``(7) Fishery cooperative exit provisions.--
       ``(A) Fishing allowance determination.--For purposes of 
     determining the aggregate percentage of directed fishing 
     allowances under paragraph (1), when a catcher vessel is 
     removed from the directed pollock fishery, the fishery 
     allowance for pollock for the vessel being removed--
       ``(i) shall be based on the catch history determination for 
     the vessel made pursuant to section 679.62 of title 50, Code 
     of Federal Regulations, as in effect on the date of enactment 
     of the Coast Guard Authorization Act of 2008; and
       ``(ii) shall be assigned, for all purposes under this 
     title, in the manner specified by the owner of the vessel 
     being removed to any other catcher vessel or among other 
     catcher vessels participating in the fishery cooperative if 
     such vessel or vessels remain in the fishery cooperative for 
     at least one year after the date on which the vessel being 
     removed leaves the directed pollock fishery.
       ``(B) Eligibility for fishery endorsement.--Except as 
     provided in subparagraph (C), a vessel that is removed 
     pursuant to this paragraph shall be permanently ineligible 
     for a fishery endorsement, and any claim (including relating 
     to catch history) associated with such vessel that could 
     qualify any owner of such vessel for any permit to 
     participate in any fishery within the exclusive economic zone 
     of the United States shall be extinguished, unless such 
     removed vessel is thereafter designated to replace a vessel 
     to be removed pursuant to this paragraph.
       ``(C) Limitations on statutory construction.--Nothing in 
     this paragraph shall be construed--
       ``(i) to make the vessels AJ (United States official number 
     905625), DONA MARTITA (United States official number 651751), 
     NORDIC EXPLORER (United States official number 678234), and 
     PROVIDIAN (United States official number 1062183) ineligible 
     for a fishery endorsement or any permit necessary to 
     participate in any fishery under the authority of the New 
     England Fishery Management Council or the Mid-Atlantic 
     Fishery Management Council established, respectively, under 
     subparagraphs (A) and (B) of section 302(a)(1) of the 
     Magnuson-Stevens Act; or
       ``(ii) to allow the vessels referred to in clause (i) to 
     participate in any fishery under the authority of the 
     Councils referred to in clause (i) in any manner that is not 
     consistent with the fishery management plan for the fishery 
     developed by the Councils under section 303 of the Magnuson-
     Stevens Act.''.

                      TITLE VII--VESSEL CONVEYANCE

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Vessel Conveyance Act''.

     SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR PUBLIC 
                   PURPOSES.

       (a) In General.--Whenever the transfer of ownership of a 
     Coast Guard vessel to an eligible entity for use for 
     educational, cultural, historical, charitable, recreational, 
     or other public purposes is authorized by law, the Coast 
     Guard shall transfer the vessel to the General Services 
     Administration for conveyance to the eligible entity.
       (b) Conditions of Conveyance.--The General Services 
     Administration may not convey a vessel to an eligible entity 
     as authorized by law unless the eligible entity agrees--
       (1) to provide the documentation needed by the General 
     Services Administration to process a request for aircraft or 
     vessels under section 102.37.225 of title 41, Code of Federal 
     Regulations;
       (2) to comply with the special terms, conditions, and 
     restrictions imposed on aircraft and vessels under section 
     102-37.460 of such title;
       (3) to make the vessel available to the United States 
     Government if it is needed for use by the Commandant of the 
     Coast Guard in time of war or a national emergency; and
       (4) to hold the United States Government harmless for any 
     claims arising from exposure to hazardous materials, 
     including asbestos and polychlorinated biphenyls, after 
     conveyance of the vessel, except for claims arising from use 
     of the vessel by the United States Government under paragraph 
     (3).
       (c) Eligible Entity Defined.--In this section, the term 
     ``eligible entity'' means a State or local government, 
     nonprofit corporation, educational agency, community 
     development organization, or other entity that agrees to 
     comply with the conditions established under this section.
                                 ______
                                 
      By Mr. SPECTER (for himself and Mr. Casey):
  S. 1195. A bill to require the Secretary of Agriculture to carry out 
the Philadelphia universal feeding pilot program until the last day of 
the 2012-2013 school year of the School District of Philadelphia; to 
the Committee on Agriculture, Nutrition, and Forestry.
  Mr. SPECTER. Mr. President, I rise today to speak on the Department 
of Agriculture's decision to end the Philadelphia School District's 
Universal Feeding Pilot Program and to introduce legislation extending 
the program. While changes to the Philadelphia program may be 
necessary, the appropriate time to consider these changes is during 
congressional reauthorization of the Child Nutrition Act. Senator Casey 
and I are seeking to extend the program through the 2012-13 school 
year. This extension is necessary to ensure that thousands of children 
in Philadelphia's poorest schools are not deprived of the nutritional 
assistance they have relied on for over 17 years.
  Recognizing the value of proper nutrition to successful learning, 
Congress, in 1946, passed the Richard B. Russell National School Lunch 
Act. This act provides the authority for the School Lunch Program, as 
well as several other child nutrition initiatives. In 1966 Congress 
expanded on its commitment to child nutrition by passing the Child 
Nutrition Act, which authorized the School Breakfast Program. These 
programs have continued to evolve through changing times and changing 
technologies to ensure that the goal of providing nutrition assistance 
to our Nation's school children is met.
  In 1991 the Department of Agriculture worked with the Philadelphia 
School District to develop a more streamlined method of reimbursing the 
School District for meals served under the National School Breakfast 
and School Lunch Program, and ensuring all eligible students receive 
free meals. This new method eliminated paper applications for free 
school meals, and replaced them with a socioeconomic survey based 
method of determining reimbursement rates and eligibility.
  Paper applications are costly, and parents too often fail to return 
them. The socioeconomic survey based approach was chosen because it 
reduced

[[Page 13972]]

administrative overhead costs and is thought to better ensure that all 
eligible students are accounted for. In addition, by providing 
Universal Service the stigma associated with receiving a free or 
reduced price school meal is eliminated. Indeed, during the first year 
of the Universal Feeding Pilot Program, the Philadelphia School 
District saw a 14 percent increase in lunch participation in elementary 
schools, a 45 percent increase in middle schools and a 180 percent 
increase in high schools. The Philadelphia Universal Feeding Pilot 
Program has successfully increased student participation in the school 
meal program. Should this program be ended, as the Department of 
Agriculture would have it, children in the Philadelphia School District 
will have their ability to learn undermined by Washington, DC, 
bureaucrats.
  The students and parents in 200 of Philadelphia's poorest schools 
have not filled out paper applications for free and reduced priced 
school meals in over seventeen years. It is almost certain that some 
parents will fail to return paper applications to the school district, 
resulting in the underreporting of eligible students. In fact, the 
Secretary of Agriculture tacitly acknowledges the ineffectiveness of 
paper applications by offering outreach assistance to the Philadelphia 
School District.
  A decrease in the amount of students claiming free or reduced lunches 
will lower the Department of Agriculture's reimbursement rate to the 
Philadelphia School District. Reducing the school meal reimbursement 
rate will not only cause the Philadelphia School District budgetary 
problems in relation to the school meals program, but because other 
grant funding is often based on the percentage of low income students 
in a district, as determined by participation rates in the school meal 
program, the District could potentially lose millions of dollars in 
other state and Federal grant funding. Federal E-rate funding, for 
example, which is used for educational technology, is based directly on 
school meal program eligibility percentages.
  Congress is expected to take up the Child Nutrition Act 
reauthorization later this year. Universal Feeding and the National 
School Breakfast and Lunch Program will be a part of this debate, and 
this is an appropriate time and place to consider changes to the 
program. We know from experience that Congressional action is not 
always as swift as planned, and that the legislative calendar changes 
from week to week if not from day to day.
  Therefore, Senator Casey and I introduce legislation today to extend 
the Philadelphia School District's Universal Feeding Pilot Program 
through the close of the 2012-2013 school year to ensure that 
Philadelphia school children receive the necessary nutritional 
assistance until Congress can enact a new policy.

                          ____________________