[Congressional Record (Bound Edition), Volume 155 (2009), Part 22]
[Senate]
[Pages 29358-29368]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. GRASSLEY:
  S. 2826. A bill to amend the Internal Revenue Code of 1986 to extend 
the renewable production credit for wind and open-loop biomass 
facilities, and for other purposes; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, today I am introducing the Clean 
Renewable Energy Advancement Tax Extension Jobs Act of 2009, or the 
CREATE Jobs Act of 2009 for short. This is a bill to help all kinds of 
businesses create jobs and continue pushing ahead on the development of 
clean renewable energy. My bill extends the tax credit for the 
production of electricity from wind and open-loop biomass through 
December 31, 2016.
  It increases the amount of bond authority for new clean renewable 
energy bonds to incentivize more clean renewable energy projects and 
the jobs created by these projects. For all businesses, my bill extends 
bonus depreciation for 1 year, so that businesses are able to deduct 
half of the value of any property placed in service in 2010.
  This tax cut for businesses that invest in new property in 2010 will 
spur investment in clean energy projects, as well as other new 
projects, and that will create badly needed jobs.
  I urge my colleagues to help me in getting this important legislation 
enacted into law as soon as possible.
  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. 2826

       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 ``Clean Renewable Energy 
     Advancement Tax Extension Jobs Act of 2009'' or the ``CREATE 
     Jobs Act''.

     SEC. 2. EXTENSION OF RENEWABLE PRODUCTION CREDIT FOR WIND AND 
                   OPEN-LOOP BIOMASS FACILITIES.

       (a) Wind.--Section 45(d)(1) of the Internal Revenue Code of 
     1986 is amended by striking ``before January 1, 2013'' and 
     inserting ``before January 1, 2017''.
       (b) Open-Loop Biomass.--Section 45(d)(3) of the Internal 
     Revenue Code of 1986 is amended by striking ``before January 
     1, 2014'' both places it appears and inserting ``before 
     January 1, 2017''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 3. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Additional Limitation.--Section 54C(c) of the Internal 
     Revenue Code of 1986 is

[[Page 29359]]

     amended by adding at the end the following new paragraph:
       ``(5) Further increase in limitation.--The national new 
     clean renewable energy bond limitation shall be increased by 
     $2,200,000,000. Such increase shall be allocated by the 
     Secretary consistent with the rules of paragraphs (2) and 
     (3).''.
       (b) Nonapplication of Certain Labor Standards to Further 
     Increase in Limitation.--Section 1601(1) of the American 
     Recovery and Reinvestment Tax Act of 2009 is amended by 
     inserting ``pursuant to section 54C(c)(4) of such Code'' 
     after ``Act,''.
       (c) Nonapplication of Certain Arbitrage and Issuance 
     Rules.--Section 54C of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new subsection:
       ``(e) Special Rules.--For purposes of this section--
       ``(1) Limited arbitrage.--Section 54A(d)(4) shall apply 
     without regard to subparagraph (B) or (C) thereof.
       ``(2) No credit stripping.--Section 54A(i) shall not 
     apply.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 4. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT OF 
                   THE BASIS OF CERTAIN QUALIFIED PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k) of the 
     Internal Revenue Code of 1986, as amended by the American 
     Recovery and Reinvestment Tax Act of 2009, is amended--
       (1) by striking ``January 1, 2011'' and inserting ``January 
     1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 of the 
     Internal Revenue Code of 1986, as amended by the American 
     Recovery and Reinvestment Tax Act of 2009, is amended by 
     striking ``January 1, 2010'' and inserting ``January 1, 
     2011''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code, as so amended, is amended by striking ``Pre-
     january 1, 2010'' and inserting ``Pre-january 1, 2011''.
       (3) Subparagraph (B) of section 168(l)(5) of such Code, as 
     so amended, is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (4) Subparagraph (C) of section 168(n)(2)of such Code, as 
     so amended, is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (5) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (B) of section 1400N(d)(3)of such Code, as 
     so amended, is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.
                                 ______
                                 
      By Mr. KERRY:
  S. 2828. A bill to amend the Public Health Service Act to authorize 
the National Institute of Environmental Health Sciences to conduct a 
research program on endocrine disruption, to prevent and reduce the 
production of, and exposure to, chemicals that can undermine the 
development of children before they are born and cause lifelong 
impairment to their health and function, and for other purposes; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. KERRY. Mr. President, there are approximately 80,000 known 
chemicals in our environment that are potentially harmful. Many of 
those chemicals are not tested to determine if they are damaging to our 
health. This includes products Americans use every day such as 
household cleaners, cosmetics or personal care products.
  The increased rate of disorders affecting the human endocrine system 
is alarming. Children developing in the womb may be particularly 
vulnerable. We can see the effects in our environment. Some fish in our 
lakes and rivers are developing gender mutations. We know there may be 
connections between these effects and the chemicals around us and it is 
time to learn more about it. That is why I am proud to introduce the 
Endocrine Disruption Prevention Act.
  The Endocrine Disruption Prevention Act simply authorizes the 
National Institute of Environmental Health Sciences to conduct a 
research program on chemicals that may pose a risk to our health. This 
will streamline research efforts so more useful and complete data will 
be available to Federal agencies with the responsibility of regulating 
chemicals. This bill allows agencies to fake action based on findings 
and to report to Congress with what actions were taken.
  This bill promotes action based on hard, scientific evidence. I urge 
my colleagues to support this bill.
                                 ______
                                 
      By Mr. WYDEN (for himself, Ms. Stabenow, and Mrs. Gillibrand):
  S. 2829. A bill to amend the Internal Revenue Code of 1986 to allow 
the cost of labor for building envelope improvements to be included for 
purposes of the nonbusiness energy property tax credit; to the 
Committee on Finance.
  Mr. WYDEN. Mr. President, the Federal tax code is in great need of an 
overhaul and today I am introducing legislation to fix one small piece 
of it. My legislation will help struggling homeowners who are seeing 
their money literally going out the window as their heating costs go 
through the roof.
  The current tax code gives homeowners a tax credit for installing 
energy efficiency improvements, which is all well and good, but it only 
allows labor costs to be included for improvements inside their homes. 
If the homeowner is installing a new energy efficient furnace, labor 
costs are included in the expenses eligible for the tax credit. But for 
improvements like installing energy efficient windows, or doors, or 
insulation, or energy efficient roofing materials--improvements where 
labor is a major part of the cost, the tax credit only covers the cost 
of the materials and not the labor to install them. If this seems 
counterintuitive and counterproductive, that's because it is. Tilting 
the tax code to favor some types of home improvements over others is 
not a sound foundation for tax policy or energy policy.
  This legislation, which Senators Stabenow and Gillibrand have joined 
with me to coponsor, will fix this problem by including labor costs for 
all eligible energy efficiency improvements whether to the heating 
system or to the roof Our legislation doesn't change the amount of the 
overall credit or the kinds of energy efficiency improvements that can 
be made. It just makes it clear that the credit applies equally to 
labor costs to install all of the qualifying residential energy 
efficiency improvements, not just some. This will create a level 
playing field for homeowners when they are trying to decide which 
improvements to make especially for more labor intensive projects like 
installing insulation or new energy efficient roofing. It will also 
make all of these building energy saving opportunities more affordable. 
Most importantly, it will help Americans actually save energy and it 
will create jobs for those workers manufacturing and installing new, 
energy efficiency products.
  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. 2829

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

     SECTION 1. MODIFICATION TO NONBUSINESS ENERGY PROPERTY 
                   CREDIT.

       (a) In General.--Paragraph (1) of section 25C(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following flush sentence:
     ````Such term includes expenditures for labor costs properly 
     allocable to the onsite preparation, assembly, or original 
     installation of the component.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Hatch, Mr. Bennett, Mr. Udall 
        of New Mexico, Mr. Udall of Colorado, and Mr. Bennet):
  S. 2830. A bill to amend the Surface Mining Control and Reclamation 
Act of 1977 to clarify that uncertified States and Indian tribes have 
the authority to use certain payments for certain noncoal reclamation 
projects; to the Committee on Energy and Natural Resources.
  Mr. BINGAMAN. Mr. President, I rise to introduce a bill important to 
public health and safety and the environment in the West. This 
legislation addresses an interpretation by the Department of the 
Interior, DOI, which restricts the

[[Page 29360]]

ability of States to use certain funds under the Abandoned Mine Land, 
AML, Program authorized by the Surface Mining Control and Reclamation 
Act, SMCRA, for non-coal mine reclamation.
  The Tax Relief and Health Care Act of 2006 contained amendments to 
SMCRA reauthorizing collection of an AML fee on coal produced in the 
U.S. and making certain modifications to the AML program. Under this 
program, which is administered by DOI, funds are expended to reclaim 
abandoned mine lands, with top priority for protecting public health, 
safety, general welfare, and property, and restoration of land and 
water resources adversely affected by past mining practices. The 
program is largely directed to abandoned coal mine reclamation, but 
under section 409 of SMCRA, funds have been available to address non-
coal mine sites.
  Pursuant to a Memorandum Opinion, M-37014, issued by the DOI's 
Solicitor on December 5, 2007, the Department has interpreted the 
amendments in a manner that limits the ability of western States to use 
certain funds under SMCRA to address significant problems relating to 
non-coal abandoned mines. This is in spite of the fact that these funds 
had previously been available for these purposes. In accordance with 
section 409 of SMCRA, western States such as New Mexico, Colorado, and 
Utah, have prioritized the use of AML funds to undertake the most 
pressing reclamation work on both coal and non-coal mine sites. While 
activities on non-coal sites have consumed a relatively insignificant 
portion of the funding provided for the overall AML program, the 
results in terms of public health and safety in these States is 
considerable, and there is significant work yet to be done. For 
example, New Mexico alone has over 15,000 remaining mine openings with 
a vast majority of these being non-coal. Uranium mine reclamation is a 
particular priority in New Mexico. All AML-related fatalities in New 
Mexico in the last few decades have been at non-coal mine sites.
  The bill that I am introducing today would correct what I believe is 
an unfortunate interpretation of the 2006 Amendments by modifying the 
language of SMCRA to clarify that the funding would be available for 
non-coal reclamation as it was prior to the passage of the amendments 
in 2006. Under the bill, which makes a conforming change to sections 
409 and 411 of SMCRA, western, non-certified States could continue to 
use their State share balances, including amounts comprising their so-
called previously unappropriated State share balances, for non-coal 
reclamation.
  I hope that my colleagues will support this legislation, which has 
important implications for abandoned mine clean-up in the West.
  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. 2830

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

     SECTION 1. ABANDONED MINE RECLAMATION.

       (a) Limitation on Funds.--Section 409(b) of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 
     1239(b)) is amended by inserting ``or section 411(h)(1)'' 
     after ``section 402(g)''.
       (b) Use of Funds.--Section 411(h)(1)(D)(ii) of the Surface 
     Mining Control and Reclamation Act of 1977 (30 U.S.C. 
     1240a(h)(1)(D)(ii)) is amended by inserting ``or 409'' after 
     ``section 403''.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Schumer, Mrs. Shaheen, Mr. Leahy, 
        Mr. Kerry, Mr. Dodd, Mr. Whitehouse, and Mr. Casey):
  S. 2831. A bill to provide for additional emergency unemployment 
compensation and to keep Americans working, and for other purposes; to 
the Committee on Finance.
  Mr. REED. 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. 2831

       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 ``Helping Unemployed Workers 
     Act''.

     SEC. 2. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                   PROGRAM.

       (a) In General.--Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note), as amended by section 4 of the Unemployment 
     Compensation Extension Act of 2008 (Public Law 110-449; 122 
     Stat. 5015) and section 2001(a) of the Assistance for 
     Unemployed Workers and Struggling Families Act (Public Law 
     111-5; 123 Stat. 436), is amended--
       (1) by striking ``December 31, 2009'' each place it appears 
     and inserting ``December 31, 2010'';
       (2) in the heading for subsection (b)(2), by striking 
     ``december 31, 2009'' and inserting ``december 31, 2010''; 
     and
       (3) in subsection (b)(3), by striking ``May 31, 2010'' and 
     inserting ``May 31, 2011''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note), as amended by section 6 of the Worker, Homeownership, 
     and Business Assistance Act of 2009 (Public Law 111-92), is 
     amended by striking ``by reason of'' and all that follows and 
     inserting the following: ``by reason of--
       ``(A) the amendments made by section 2001(a) of the 
     Assistance for Unemployed Workers and Struggling Families 
     Act;
       ``(B) the amendments made by sections 2 through 4 of the 
     Worker, Homeownership, and Business Assistance Act of 2009; 
     and
       ``(C) the amendments made by section 2(a) of the Helping 
     Unemployed Workers Act; and''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect as if included in the enactment of 
     the Supplemental Appropriations Act, 2008.

     SEC. 3. EXTENSION OF INCREASE IN UNEMPLOYMENT COMPENSATION 
                   BENEFITS.

       (a) In General.--Section 2002(e) of the Assistance for 
     Unemployed Workers and Struggling Families Act (Public Law 
     111-5; 123 Stat. 438) is amended--
       (1) in paragraph (1)(B), by striking ``January 1, 2010'' 
     and inserting ``January 1, 2011'';
       (2) in the heading for paragraph (2), by striking ``january 
     1, 2010'' and inserting ``january 1, 2011''; and
       (3) in paragraph (3), by striking ``June 30, 2010'' and 
     inserting ``June 30, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Assistance for Unemployed Workers and Struggling Families 
     Act.

     SEC. 4. EXTENSION OF FULL FEDERAL FUNDING OF EXTENDED 
                   UNEMPLOYMENT COMPENSATION FOR A LIMITED PERIOD.

       (a) In General.--Section 2005 of the Assistance for 
     Unemployed Workers and Struggling Families Act (Public Law 
     111-5; 26 U.S.C. 3304 note) is amended--
       (1) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''; and
       (2) in subsection (c), by striking ``June 1, 2010'' and 
     inserting ``June 1, 2011''.
       (b) Extension of Temporary Federal Matching for the First 
     Week of Extended Benefits for States With No Waiting Week.--
     Section 5 of the Unemployment Compensation Extension Act of 
     2008 (Public Law 110-449; 26 U.S.C. 3304 note), as amended by 
     section 2005(d) of the Assistance for Unemployed Workers and 
     Struggling Families Act (Public Law 111-5; 26 U.S.C. 3304 
     note), is amended by striking ``May 30, 2010'' and inserting 
     ``May 30, 2011''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by subsection (a) 
     shall take effect as if included in the enactment of the 
     Assistance for Unemployed Workers and Struggling Families 
     Act.
       (2) First week.--The amendment made by subsection (b) shall 
     take effect as if included in the enactment of the 
     Unemployment Compensation Extension Act of 2008.

     SEC. 5. MODIFICATION TO ELIGIBILITY REQUIREMENTS FOR 
                   EMERGENCY UNEMPLOYMENT COMPENSATION.

       (a) Individual Not Ineligible by Reason of Subsequent 
     Entitlement to Regular Benefits.--Section 4001 of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) is amended by adding at the end the 
     following new subsection:
       ``(g) Certain Rights to Regular Compensation Disregarded.--
     If an individual exhausted the individual's rights to regular 
     compensation for any benefit year, such individual's 
     eligibility to receive emergency unemployment compensation 
     under this title in respect of such benefit year shall be 
     determined without regard to any rights to regular 
     compensation for a subsequent benefit year if such individual 
     does not file a claim for regular compensation for such 
     subsequent benefit year.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by this section shall 
     apply to weeks of unemployment beginning after the date of 
     the enactment of this Act.
       (2) Transition rules.--
       (A) Waiver of recovery of certain overpayments.--On and 
     after the date of the enactment of this Act, no repayment of 
     any

[[Page 29361]]

     emergency unemployment compensation shall be required under 
     section 4005 of the Supplemental Appropriations Act, 2008 
     (Public Law 110-252; 26 U.S.C. 3304 note) if the individual 
     would have been entitled to receive such compensation had the 
     amendment made by subsection (a) applied to all weeks 
     beginning on or before the date of the enactment of this Act.
       (B) Waiver of rights to certain regular benefits.--If--
       (i) before the date of the enactment of this Act, an 
     individual exhausted the individual's rights to regular 
     compensation for any benefit year, and
       (ii) after such exhaustion, such individual was not 
     eligible to receive emergency unemployment compensation under 
     title IV of the Supplemental Appropriations Act, 2008 (Public 
     Law 110-252; 26 U.S.C. 3304 note) by reason of being entitled 
     to regular compensation for a subsequent benefit year,

     such individual may elect to defer the individual's rights to 
     regular compensation for such subsequent benefit year with 
     respect to weeks beginning after such date of enactment until 
     such individual has exhausted the individual's rights to 
     emergency unemployment compensation in respect of the benefit 
     year referred to in clause (i), and such individual shall be 
     entitled to receive emergency unemployment compensation for 
     such weeks in the same manner as if the individual had not 
     been entitled to the regular compensation to which the 
     election applies.

     SEC. 6. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT 
                   COMPENSATION.

       (a) In General.--Section 85(c) of the Internal Revenue Code 
     of 1986 is amended--
       (1) by inserting ``or 2010'' after ``in 2009'', and
       (2) by inserting ``and 2010'' in the heading after 
     ``2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 7. TREATMENT OF SHORT-TIME COMPENSATION PROGRAMS.

       (a) In General.--Section 3306 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(v) Short-Time Compensation Program.--For purposes of 
     this chapter, the term `short-time compensation program' 
     means a program under which--
       ``(1) the participation of an employer is voluntary;
       ``(2) an employer reduces the number of hours worked by 
     employees through certifying that such reductions are in lieu 
     of temporary layoffs;
       ``(3) such employees whose workweeks have been reduced by 
     at least 10 percent are eligible for unemployment 
     compensation;
       ``(4) the amount of unemployment compensation payable to 
     any such employee is a pro rata portion of the unemployment 
     compensation which would be payable to the employee if such 
     employee were totally unemployed;
       ``(5) such employees are not expected to meet the 
     availability for work or work search test requirements while 
     collecting short-time compensation benefits, but are required 
     to be available for their normal workweek;
       ``(6) eligible employees may participate in an employer-
     sponsored training program to enhance job skills if such 
     program has been approved by the State agency;
       ``(7) beginning on the date which is 2 years after the date 
     of enactment of this subsection, the employer certifies that 
     continuation of health benefits and retirement benefits under 
     a defined benefit pension plan (as defined in section 3(35) 
     of the Employee Retirement Income Security Act of 1974) is 
     not affected by participation in the program;
       ``(8) the employer (or an employer's association which is 
     party to a collective bargaining agreement) submits a written 
     plan describing the manner in which the requirements of this 
     subsection will be implemented and containing such other 
     information as the Secretary of Labor determines is 
     appropriate;
       ``(9) in the case of employees represented by a union, the 
     appropriate official of the union has agreed to the terms of 
     the employer's written plan and implementation is consistent 
     with employer obligations under the National Labor Relations 
     Act; and
       ``(10) the program meets such other requirements as the 
     Secretary of Labor determines appropriate.''.
       (b) Assistance and Guidance in Implementing Programs.--
       (1) Assistance and guidance.--
       (A) In general.--In order to assist States in establishing, 
     qualifying, and implementing short-time compensation 
     programs, as defined in section 3306(v) of the Internal 
     Revenue Code of 1986 (as added by subsection (a)), the 
     Secretary of Labor (in this section referred to as the 
     ``Secretary'') shall--
       (i) develop model legislative language which may be used by 
     States in developing and enacting short-time compensation 
     programs and shall periodically review and revise such model 
     legislative language;
       (ii) provide technical assistance and guidance in 
     developing, enacting, and implementing such programs;
       (iii) establish biannual reporting requirements for States, 
     including number of averted layoffs, number of participating 
     companies and workers, and retention of employees following 
     participation; and
       (iv) award start-up grants to State agencies under 
     subparagraph (B).
       (B) Grants.--
       (i) In general.--The Secretary shall award start-up grants 
     to State agencies that apply not later than June 30, 2011, in 
     States that enact short-time compensation programs after the 
     date of enactment of this Act for the purpose of creating 
     such programs. The amount of such grants shall be awarded 
     depending on the costs of implementing such programs.
       (ii) Eligibility.--In order to receive a grant under clause 
     (i) a State agency shall meet requirements established by the 
     Secretary, including any reporting requirements under clause 
     (iii). Each State agency shall be eligible to receive not 
     more than one such grant.
       (iii) Reporting.--The Secretary may establish reporting 
     requirements for State agencies receiving a grant under 
     clause (i) in order to provide oversight of grant funds used 
     by States for the creation of short-time compensation 
     programs.
       (iv) Funding.--There are appropriated, out of any moneys in 
     the Treasury not otherwise appropriated, to the Secretary, 
     such sums as the Secretary certifies as necessary for the 
     period of fiscal years 2010 and 2011 to carry out this 
     subparagraph.
       (2) Timeframe.--The initial model legislative language 
     referred to in paragraph (1)(A) shall be developed not later 
     than 60 days after the date of enactment of this Act.
       (c) Reports.--
       (1) Initial report.--Not later than 4 years after the date 
     of enactment of this Act, the Secretary shall submit to 
     Congress and to the President a report or reports on the 
     implementation of this section. Such report or reports shall 
     include--
       (A) a study of short-time compensation programs;
       (B) an analysis of the significant impediments to State 
     enactment and implementation of such programs; and
       (C) such recommendations as the Secretary determines 
     appropriate.
       (2) Subsequent reports.--After the submission of the report 
     under paragraph (1), the Secretary may submit such additional 
     reports on the implementation of short-time compensation 
     programs as the Secretary deems appropriate.
       (3) Funding.--There are appropriated, out of any moneys in 
     the Treasury not otherwise appropriated, to the Secretary, 
     $1,500,000 to carry out this subsection, to remain available 
     without fiscal year limitation.
       (d) Conforming Amendments.--
       (1) Internal revenue code of 1986.--
       (A) Subparagraph (E) of section 3304(a)(4) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(E) amounts may be withdrawn for the payment of short-
     time compensation under a short-time compensation program (as 
     defined in section 3306(v));''.
       (B) Subsection (f) of section 3306 of the Internal Revenue 
     Code of 1986 is amended--
       (i) by striking paragraph (5) (relating to short-term 
     compensation) and inserting the following new paragraph:
       ``(5) amounts may be withdrawn for the payment of short-
     time compensation under a short-time compensation program (as 
     defined in subsection (v));'', and
       (ii) by redesignating paragraph (5) (relating to self-
     employment assistance program) as paragraph (6).
       (2) Social security act.--Section 303(a)(5) of the Social 
     Security Act is amended by striking ``the payment of short-
     time compensation under a plan approved by the Secretary of 
     Labor'' and inserting ``the payment of short-time 
     compensation under a short-time compensation program (as 
     defined in section 3306(v) of the Internal Revenue Code of 
     1986)''.
       (3) Repeal.--Subsections (b) through (d) of section 401 of 
     the Unemployment Compensation Amendments of 1992 (26 U.S.C. 
     3304 note) are repealed.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act.

     SEC. 8. TEMPORARY FINANCING OF CERTAIN SHORT-TIME 
                   COMPENSATION PROGRAMS.

       (a) Payments to States With Certified Programs.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall establish a 
     program under which the Secretary shall make payments to any 
     State unemployment trust fund to be used for the payment of 
     unemployment compensation if the Secretary approves an 
     application for certification submitted under paragraph (3) 
     for such State to operate a short-time compensation program 
     (as defined in section 3306(v) of the Internal Revenue Code 
     of 1986 (as added by section 7(a))) which requires the 
     maintenance of health and retirement employee benefits as 
     described in paragraph (7) of such section 3306(v), in 
     addition to other requirements of this Act and 
     notwithstanding the otherwise effective date of such 
     requirement.
       (2) Reimbursement.--Subject to subsection (d), the payment 
     to a State under paragraph (1) shall be an amount equal to 
     100 percent of the total amount of benefits paid to 
     individuals by the State pursuant to the short-time

[[Page 29362]]

     compensation program during the weeks of unemployment--
       (A) beginning on or after the date the certification is 
     issued by the Secretary with respect to such program; and
       (B) ending on or before December 31, 2011.
       (3) Certification requirements.--
       (A) In general.--Any State seeking full reimbursement under 
     this subsection shall submit an application for certification 
     at such time, in such manner, and complete with such 
     information as the Secretary may require (whether by 
     regulation or otherwise), including information relating to 
     compliance with the requirements of paragraph (7) of such 
     section 3306(v). The Secretary shall, within 30 days after 
     receiving a complete application, notify the State agency of 
     the State of the Secretary's findings with respect to the 
     requirements of such paragraph (7).
       (B) Findings.--If the Secretary finds that the short-time 
     compensation program operated by the State meets the 
     requirements of such paragraph (7), the Secretary shall 
     certify such State's short-time compensation program thereby 
     making such State eligible for reimbursement under this 
     subsection.  
       (b) Timing of Application Submittals.--No application under 
     subsection (a)(3) may be considered if submitted before the 
     date of enactment of this Act or after the latest date 
     necessary (as specified by the Secretary) to ensure that all 
     payments under this section are made before December 31, 
     2011.
       (c) Terms of Payments.--Payments made to a State under 
     subsection (a)(1) shall be payable by way of reimbursement in 
     such amounts as the Secretary estimates the State will be 
     entitled to receive under this section for each calendar 
     month, reduced or increased, as the case may be, by any 
     amount by which the Secretary finds that the Secretary's 
     estimates for any prior calendar month were greater or less 
     than the amounts which should have been paid to the State. 
     Such estimates may be made on the basis of such statistical, 
     sampling, or other method as may be agreed upon by the 
     Secretary and the State agency of the State involved.
       (d) Limitations.--
       (1) General payment limitations.--No payments shall be made 
     to a State under this section for benefits paid to an 
     individual by the State in excess of 26 weeks of benefits.
       (2) Employer limitations.--No payments shall be made to a 
     State under this section for benefits paid to an individual 
     by the State pursuant to a short-time compensation program if 
     such individual is employed by an employer--
       (A) whose workforce during the 3 months preceding the date 
     of the submission of the employer's short-time compensation 
     plan has been reduced by temporary layoffs of more than 20 
     percent; or
       (B) on a seasonal, temporary, or intermittent basis.
       (3) Program payment limitation.--In making any payments to 
     a State under this section pursuant to a short-time 
     compensation program, the Secretary may limit the frequency 
     of employer participation in such program.
       (e) Retention Requirement.--
       (1) In general.--A participating employer under this 
     section is required to comply with the terms of the written 
     plan approved by the State agency and act in good faith to 
     retain participating employees.
       (2) Oversight and monitoring.--The Secretary shall 
     establish an oversight and monitoring process by which State 
     agencies will ensure that participating employers comply with 
     the requirements of paragraph (1).
       (f) Funding.--There are appropriated, from time to time, 
     out of any moneys in the Treasury not otherwise appropriated, 
     to the Secretary, such sums as the Secretary certifies are 
     necessary to carry out this section (including to reimburse 
     any additional administrative expenses by reason of the 
     provision of, and amendments made by, this Act that are 
     incurred by the States in operating such short-time 
     compensation programs).
       (g) Definition of State.--In this section, the term 
     ``State'' includes the District of Columbia, the Commonwealth 
     of Puerto Rico, and the Virgin Islands.
       (h) Sunset.--The provisions of this section shall not apply 
     after December 31, 2011.

     SEC. 9. STUDY AND REPORTS ON THE EMERGENCY UNEMPLOYMENT 
                   COMPENSATION PROGRAM.

       (a) Study.--The Secretary of Labor (in this section 
     referred to as the ``Secretary'') shall conduct a study on 
     the implementation of the emergency unemployment compensation 
     program under title IV of the Supplemental Appropriations 
     Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as 
     amended by section 2 and the Worker, Homeownership, and 
     Business Assistance Act of 2009 (Public Law 111-92). Such 
     study shall include an analysis of--
       (1) the different tiers under such program;
       (2) the number of initial claims under such program, the 
     average duration of benefits under the program, the average 
     sum of benefits under the program, and other areas that 
     demonstrate who received benefits under the program;
       (3) any significant impediments to State implementation of 
     such program;
       (4) the significant administration weaknesses and strengths 
     of such programs; and
       (5) other areas determined appropriate by the Secretary.
       (b) Reports.--
       (1) In general.--Not later than 4 years after the date of 
     the enactment of this Act, the Secretary shall submit to 
     Congress and the President a report (or multiple reports) on 
     the study conducted under subsection (a), together with such 
     recommendations as the Secretary determines appropriate.
       (2) Subsequent reports.--After the Secretary submits the 
     report (or reports) required under paragraph (1), the 
     Secretary may submit such additional reports on the 
     implementation of emergency unemployment compensation 
     programs as the Secretary deems appropriate.
       (c) Funding.--There are appropriated, out of any moneys in 
     the Treasury not otherwise appropriated, to the Secretary, 
     $1,250,000 to carry out this section, to remain available 
     without fiscal year limitation.
                                 ______
                                 
      By Mr. BINGAMAN (for himself, Mr. Isakson, and Mr. Kohl):
  S. 2832. A bill to amend the Employee Retirement Income Security Act 
of 1974 to require a lifetime income disclosure; to the Committee on 
Health, Education, Labor, and Pensions.
  Mr. BINGAMAN. Mr. President, I rise today to introduce the Lifetime 
Income Disclosure Act, to help Americans ensure they do not outlive 
their retirement savings. I am pleased to be joined by my colleague on 
the Health, Education, Labor and Pensions Committee, Senator Isakson, 
and the Chairman of the Aging Committee, Senator Kohl, in introducing 
the Act. In sum, the Act would require private defined contribution 
retirement plans annually to show plan participants how their account 
balances translate into monthly income equivalents, based on age at 
retirement and other factors. The act is structured so as not to impose 
a material burden on employers.
  As life expectancies rise, individuals have an increasing need for 
protection against the risk that they will outlive their savings. In 
fact, Boston College's National Retirement Risk Index recently found 
that half of American households are ``at risk'' of being unable to 
maintain their pre-retirement standard of living in retirement.
  But trends in retirement plan coverage are only increasing this risk. 
Defined benefit pension plans--to which employers make regular fixed 
contributions--are becoming rare. Individuals who receive any form of 
workplace retirement account are increasingly offered the opportunity 
to contribute to defined contribution plans, like 401(k)s, to which the 
employer may or may not provide a matching contribution. At present, 
401(k) plan statements typically provide a total account balance, but 
not a monthly income equivalent. Consequently, employees are not well-
prepared to evaluate whether they are saving adequately to maintain 
cost of their current standard of living in retirement.
  To address this challenge, the act would require that defined 
contribution plans subject to ERISA, such as 401(k) plans, include 
``annuity equivalents'' on benefit statements provided to employees. An 
annuity equivalent is the monthly annuity payment that would be made if 
the employee's total account balance were used to buy a life annuity 
that commenced payments at the plan's normal retirement age, generally 
65. The act requires the statement to show the monthly annuity payments 
under both a single life annuity and a qualified joint and survivor 
annuity--that is, an annuity with survivor benefits payable for life to 
the employee's spouse. The annuity equivalents would only be required 
to be provided once a year, even where quarterly statements are 
otherwise required.
  In this regard, 401(k) benefit statements would become better 
coordinated with Social Security benefit statements, which only express 
benefits in the form of a life annuity. Knowing the amount of monthly 
income they can expect from Social Security and their define 
contribution plan will help employees determine whether they are on the 
path to a secure retirement. Additionally, including annuity 
equivalents on benefit statements will make employees more aware of the 
possibility upon retirement of receiving at least a portion of their 
benefit in the form of an annuity that protects them against outliving 
their savings.

[[Page 29363]]

  As I have already discussed, this proposal addresses a critical 
public policy issue. But it is equally important that the proposal be 
structured not to impose any material burden or potential liability on 
employers that voluntarily maintain a plan. Thus, the act directs the 
Department of Labor to issue, within a year, assumptions that employers 
may use in converting a lump sum amount into an annuity equivalent. 
Accordingly, employers will be able to base their annuity equivalents 
entirely on clear mechanical assumptions prescribed by the DOL. Of 
course, to the extent that a participant's benefit is or may be 
invested in an annuity contract that guarantees a specified annuity 
benefit, the DOL shall, to the extent appropriate, permit such 
specified benefit to be treated as an annuity equivalent.
  The DOL would further be directed to issue, within a year, a model 
disclosure that explains the assumptions used to determine the annuity 
equivalents and the fact that the annuity equivalents provided are only 
estimates. This model disclosure would include a clear explanation that 
actual annuity benefits may be materially different from such 
estimates.
  The act also provides employers with a clear path to avoid liability: 
under the act, employers and service providers using the model 
disclosure and following the prescribed assumptions and DOL rules would 
not have any liability with regard to the provision of annuity 
equivalents. This exemption from liability would apply to any 
disclosure of an annuity equivalent that incorporates the explanation 
from the model disclosure and that is prepared in accordance with the 
prescribed assumptions and DOL rules. For example, subject to such 
conditions, the exemption would apply to annuity equivalents available 
on a Web site or provided quarterly.
  Finally, the act would not go into effect until a year after the DOL 
has issued the guidance needed by employers to implement the new rules.
  Our proposal is a small step, but one that can make a significant 
difference in beginning to tackle a key policy challenge. I am pleased 
that the act enjoys the support of many advocates for retirement 
security, including AARP, the Women's Institute for a Secure 
Retirement, and the Council of Independent 401(k) Recordkeepers. I look 
forward to working with Senators Isakson and Kohl to see these 
provisions enacted into law.
  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. 2832

       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 ``Lifetime Income Disclosure 
     Act''.

     SEC. 2. DISCLOSURE REGARDING LIFETIME INCOME.

       (a) In General.--Subparagraph (B) of section 105(a)(2) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1025(a)(2)) is amended--
       (1) in clause (i), by striking ``and'' at the end;
       (2) in clause (ii), by striking ``diversification.'' and 
     inserting ``diversification, and''; and
       (3) by inserting at the end the following:
       ``(iii) the lifetime income disclosure described in 
     subparagraph (D)(i).
     In the case of pension benefit statements described in clause 
     (i) of paragraph (1)(A), a lifetime income disclosure under 
     clause (iii) of this subparagraph shall only be required to 
     be included in one pension benefit statement in each calendar 
     year.''.
       (b) Lifetime Income.--Paragraph (2) of section 105(a) of 
     such Act (29 U.S.C. 1025(a)) is amended by adding at the end 
     the following new subparagraph:
       ``(D) Lifetime income disclosure.--
       ``(i) In general.--

       ``(I) Disclosure.--A lifetime income disclosure shall set 
     forth the annuity equivalent of the total benefits accrued 
     with respect to the participant or beneficiary.
       ``(II) Annuity equivalent of the total benefits accrued.--
     For purposes of this subparagraph, the `annuity equivalent of 
     the total benefits accrued' means the amount of monthly 
     payments the participant or beneficiary would receive at the 
     plan's normal retirement age if the total accrued benefits of 
     such participant or beneficiary were used on the date of the 
     lifetime income disclosure to purchase the life annuities 
     described in subclause (III), with payments under such 
     annuities commencing at the plan's normal retirement age.
       ``(III) Life annuities.--The life annuities described in 
     this subclause are a qualified joint and survivor annuity (as 
     defined in section 205(d)), based on assumptions specified in 
     rules prescribed by the Secretary, including the assumption 
     that the participant or beneficiary has a spouse of equal 
     age, and a single life annuity. Such annuities may have a 
     term certain or other features to the extent permitted under 
     rules prescribed by the Secretary.

       ``(ii) Model disclosure.--Not later than 1 year after the 
     date of the enactment of the Lifetime Income Disclosure Act, 
     the Secretary shall issue a model lifetime income disclosure, 
     written in a manner so as to be understood by the average 
     plan participant, that--

       ``(I) explains that the annuity equivalent is only provided 
     as an illustration;
       ``(II) explains that the actual annuity payments that may 
     be purchased with the total benefits accrued will depend on 
     numerous factors and may vary substantially from the annuity 
     equivalent in the disclosures;
       ``(III) explains the assumptions upon which the annuity 
     equivalent was determined; and
       ``(IV) provides such other similar explanations as the 
     Secretary considers appropriate.

       ``(iii) Assumptions and rules.--Not later than 1 year after 
     the date of the enactment of the Lifetime Income Disclosure 
     Act, the Secretary shall--

       ``(I) prescribe assumptions that administrators of 
     individual account plans may use in converting total accrued 
     benefits into annuity equivalents for purposes of this 
     subparagraph; and
       ``(II) issue interim final rules under clause (i).

     In prescribing assumptions under subclause (I), the Secretary 
     may prescribe a single set of specific assumptions (in which 
     case the Secretary may issue tables or factors that 
     facilitate such conversions), or ranges of permissible 
     assumptions. To the extent that an accrued benefit is or may 
     be invested in an annuity contract, the assumptions 
     prescribed under subclause (I) shall, to the extent 
     appropriate, permit administrators of individual account 
     plans to use the amounts payable under such contract as an 
     annuity equivalent.
       ``(iv) Limitation on liability.--No plan fiduciary, plan 
     sponsor, or other person shall have any liability under this 
     title solely by reason of the provision of annuity 
     equivalents which are derived in accordance with the 
     assumptions and rules described in clause (iii) and which 
     include the explanations contained in the model lifetime 
     income disclosure described in clause (ii). This clause shall 
     apply without regard to whether the provision of such annuity 
     equivalent is required by subparagraph (B)(iii).
       ``(v) Effective date.--The requirement in subparagraph 
     (B)(iii) shall apply to pension benefit statements furnished 
     more than 12 months after the latest of the issuance by the 
     Secretary of--

       ``(I) interim final rules under clause (i);
       ``(II) the model disclosure under clause (ii); or
       ``(III) the assumptions under clause (iii).''.

                                 ______
                                 
      By Mr. Reed (for himself, Mr. Brown, Mr. Whitehouse, Mr. Akaka, 
        Mr. Durbin, Ms. Klobuchar, and Mr. Begich):
  S. 2833. A bill to provide adjusted Federal medical assistance 
percentage rates during a transitional assistance period; to the 
Committee on Finance.
  Mr. REED. Mr. President, I rise today to introduce the Transitional 
Federal Medical Assistance Percentage, FMAP, Act, and I am pleased to 
do so with the support of Senators Brown, Whitehouse, Akaka, Durbin, 
Klobuchar, and Begich. This bill is an important step in continuing the 
conversation about how we can help our States, businesses, and 
individuals as our economy recovers.
  In my State of Rhode Island, the economic downturn has been 
particularly hard hitting on families and businesses. As a result, the 
State has seen a decline in tax revenue and an increased enrollment in 
safety net programs like Medicaid. Revenue from the sales tax is down 
over 7 percent, income tax receipts are down 2.3 percent, and corporate 
tax revenue is down nearly 10 percent. At the same time, unemployment 
rates have soared to new heights, topping 13 percent earlier this year. 
In the past 2 years, 40,000 Rhode Islanders have lost their employer-
sponsored health insurance. Many of these individuals have come to rely 
on Medicaid for health coverage. This has caused great strain on the 
State's resources and its Medicaid program. In November, we learned 
that the estimated Medicaid caseload for the year will cost over $40 
million more

[[Page 29364]]

than what the State had initially estimated in its budget.
  The American Recovery and Reinvestment Act, which I supported, 
provided States with additional Federal assistance through 2010. States 
have used these funds to help balance their budgets, minimize harmful 
cuts in public services, and, very importantly, to prevent tax 
increases in many cases. However, even with the funding from the 
Recovery Act, Rhode Island will close the current fiscal year $219.8 
million in the red.
  A total of 38 States have looked ahead to fiscal year 2011, and they 
have estimated $92 billion in combined deficits in the coming year. As 
the State fiscal year nears, and more States have had ample time to 
analyze their fiscal health it is expected that the total shortfall 
will likely equal $180 billion.
  As Congress debates health reform and works to ensure that every 
American has access to health insurance in 2014, we must not forget 
about ensuring that Americans have access to health insurance between 
now and then, as the economy slowly recovers and as state budgets begin 
to heal. During this tough time we need to help individuals, 
businesses, and States, and I am particularly concerned with making 
sure our States have the resources to provide adequate health care.
  Unless Congress acts on FMAP legislation, States will be forced to 
use their limited resources to cover an expanded Medicaid population 
beginning in January 2011. Since States are planning their fiscal year 
2011 budgets, which will begin in July, many Governors are requesting 
Congress act now to provide States with additional Federal support.
  The Transitional FMAP Act would extend the enhanced FMAP funding 
which we passed in the Recovery Act for two additional quarters. This 
extension accounts for the prolonged recession and ensures that the 
pressure of Medicaid needs do not overwhelm the States. The bill would 
also begin a slow decrease of enhanced FMAP funding from July 2011 
through December 2013. This will help States as they recover and ensure 
that States do not experience a gap in assistance prior to health 
reform-related FMAP levels beginning in January 2014.
  Mr. President, this additional funding is important for States, 
businesses, and individuals. I know that Chairman Baucus and Leader 
Reid are well aware of the importance of FMAP and have a history to 
working to aid our States. I look forward to working with them and my 
other colleagues to provide States with necessary additional Federal 
Medicaid assistance.
  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. 2833

       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 ``Transitional Federal Medical 
     Assistance Percentage Act''.

     SEC. 2. EXTENSION OF ARRA INCREASE IN FMAP.

       Section 5001 of ARRA is amended--
       (1) in subsection (a)(3), by striking ``first calendar 
     quarter'' and inserting ``first 3 calendar quarters'';
       (2) in subsection (b)(2), by inserting before the period at 
     the end the following: ``and such paragraph shall not apply 
     to calendar quarters beginning on or after October 1, 2010'';
       (3) in subsection (d), by inserting ``ending before October 
     1, 2010'' after ``entire fiscal years'' and after ``with 
     respect to fiscal years'';
       (4) in subsection (g)(1), by striking ``September 30, 
     2011'' and inserting ``December 31, 2011''; and
       (5) in subsection (h)(3), by striking ``December 31, 2010'' 
     and inserting ``June 30, 2011''.

     SEC. 3. ARRA TRANSITIONAL ASSISTANCE PERIOD.

       For each fiscal quarter occurring during the period 
     beginning on July 1, 2011, and ending on December 31, 2013 
     (referred to in this Act as the ``ARRA transitional 
     assistance period''), a State's FMAP shall be equal to the 
     sum of--
       (1) the adjusted base FMAP (as determined under section 
     4(a)(1));
       (2) the general FMAP adjustment (as determined under 
     section 4(a)(2)); and
       (3) the unemployment FMAP adjustment (as determined under 
     section 4(a)(3)).

     SEC. 4. ADJUSTMENTS TO FEDERAL MEDICAL ASSISTANCE PERCENTAGE.

       (a) Determination of Adjusted FMAP.--
       (1) Adjusted base fmap.--
       (A) In general.--Subject to subparagraph (B), the adjusted 
     base FMAP is determined as follows:
       (i) For the fourth quarter of fiscal year 2011, the FMAP 
     that would have applied to the State under section 5001(a) of 
     ARRA (assuming that such section applied) for such fiscal 
     quarter minus 2 percentage points.
       (ii) For any subsequent fiscal quarter occurring during the 
     ARRA transitional assistance period, the FMAP as determined 
     under this paragraph for the preceding fiscal quarter minus 2 
     percentage points.
       (B) Elimination of negative adjustment.--If the adjusted 
     base FMAP applicable to a State under this paragraph for any 
     fiscal quarter occurring during the ARRA transitional 
     assistance period would be less than the FMAP determined for 
     the State for such quarter without regard to this paragraph, 
     this paragraph shall not apply to such State.
       (2) General fmap adjustment.--The general FMAP adjustment 
     shall be equal to the following:
       (A) For the fourth quarter of fiscal year 2011, 5.7 
     percentage points.
       (B) For the first quarter of fiscal year 2012, 4.95 
     percentage points.
       (C) For the second quarter of fiscal year 2012, 3.95 
     percentage points.
       (D) For the third quarter of fiscal year 2012, 2.7 
     percentage points.
       (E) For the fourth quarter of fiscal year 2012, 1.2 
     percentage points.
       (F) For any subsequent fiscal quarter occurring during the 
     ARRA transitional assistance period, 0.2 percentage points.
       (3) Unemployment fmap adjustment.--
       (A) In general.--Subject to subparagraphs (C) and (D), the 
     unemployment FMAP adjustment shall be equal to the increase 
     in the State's FMAP that would have applied to the State 
     under section 5001(c) of ARRA (assuming that such section 
     applied) for such fiscal quarter minus the applicable 
     reduction amount (as described under subparagraph (B)).
       (B) Applicable reduction amount.--For purposes of 
     subparagraph (A), the applicable reduction amount shall be 
     equal to the following:
       (i) For the fourth fiscal quarter of fiscal year 2011, 0.20 
     percentage points.
       (ii) For any subsequent fiscal quarter occurring during the 
     ARRA transitional assistance period, the sum of--

       (I) the applicable reduction amount for the preceding 
     fiscal quarter; and
       (II) 0.05 percentage points.

       (C) Elimination of negative adjustment.--If the 
     unemployment FMAP adjustment applicable to a State under this 
     paragraph for any fiscal quarter during the ARRA transitional 
     assistance period would be less than zero, this paragraph 
     shall not apply to such State.
       (D) Special rule.--
       (i) In general.--For purposes of subparagraph (A), with 
     respect to the computation of the state unemployment increase 
     percentage (as described under section 5001(c)(4) of ARRA) 
     for the last 2 fiscal quarters of the ARRA transitional 
     assistance period, the most recent previous 3-consecutive-
     month period (as described under section 5001(c)(4)(A)(i) of 
     ARRA) shall be the 3-consecutive-month period beginning with 
     December 2012, or, if it results in a higher applicable 
     percent under section 5001(c)(3) of ARRA, the 3-consecutive-
     month period beginning with January 2013.
       (ii) Repeal of special rule under arra for last 2 calendar 
     quarters of the recession adjustment period.--Section 
     5001(c)(4) of ARRA is amended by striking subparagraph (C) 
     and inserting the following:
       ``(C) Special rule.--With respect to the first 2 calendar 
     quarters of the recession adjustment period, the most recent 
     previous 3-consecutive-month period described in subparagraph 
     (A)(i) shall be the 3-consecutive-month period beginning with 
     October 2008.''.
       (b) Scope of Application.--The adjustments in the FMAP for 
     a State under this section shall apply for purposes of title 
     XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4);
       (2) payments under title IV of such Act (42 U.S.C. 601 et 
     seq.) (except that the increases under paragraphs (1) and (2) 
     of subsection (a) shall apply to payments under part E of 
     title IV of such Act (42 U.S.C. 670 et seq.) and, for 
     purposes of the application of this section to the District 
     of Columbia, payments under such part shall be deemed to be 
     made on the basis of the FMAP applied with respect to such 
     District for purposes of title XIX and as increased under 
     subsection (a)(2));
       (3) any payments under title XXI of such Act (42 U.S.C. 
     1397aa et seq.);
       (4) any payments under title XIX of such Act that are based 
     on the enhanced FMAP described in section 2105(b) of such Act 
     (42 U.S.C. 1397ee(b)); or
       (5) any payments under title XIX of such Act that are 
     attributable to expenditures for medical assistance provided 
     to individuals made eligible under a State plan under title 
     XIX of the Social Security Act (including

[[Page 29365]]

     under any waiver under such title or under section 1115 of 
     such Act (42 U.S.C. 1315)) because of income standards 
     (expressed as a percentage of the poverty line) for 
     eligibility for medical assistance that are higher than the 
     income standards (as so expressed) for such eligibility as in 
     effect on July 1, 2008, (including as such standards were 
     proposed to be in effect under a State law enacted but not 
     effective as of such date or a State plan amendment or waiver 
     request under title XIX of such Act that was pending approval 
     on such date).
       (c) State Ineligibility; Limitation; Special Rules.--
       (1) Maintenance of eligibility requirements.--
       (A) In general.--Subject to subparagraph (B) and (C), a 
     State is not eligible for an increase in its FMAP under 
     subsection (a) if eligibility standards, methodologies, or 
     procedures under its State plan under title XIX of the Social 
     Security Act (including any waiver under such title or under 
     section 1115 of such Act (42 U.S.C. 1315)) are more 
     restrictive than the eligibility standards, methodologies, or 
     procedures, respectively, under such plan (or waiver) as in 
     effect on July 1, 2008.
       (B) State reinstatement of eligibility permitted.--Subject 
     to subparagraph (C), a State that has restricted eligibility 
     standards, methodologies, or procedures under its State plan 
     under title XIX of the Social Security Act (including any 
     waiver under such title or under section 1115 of such Act (42 
     U.S.C. 1315)) after July 1, 2008, is no longer ineligible 
     under subparagraph (A) beginning with the first calendar 
     quarter in which the State has reinstated eligibility 
     standards, methodologies, or procedures that are no more 
     restrictive than the eligibility standards, methodologies, or 
     procedures, respectively, under such plan (or waiver) as in 
     effect on July 1, 2008.
       (C) Special rules.--A State shall not be ineligible under 
     subparagraph (A)--
       (i) for the fiscal quarters before October 1, 2011, on the 
     basis of a restriction that was applied after July 1, 2008, 
     and before the date of the enactment of this Act, if the 
     State prior to October 1, 2011, has reinstated eligibility 
     standards, methodologies, or procedures that are no more 
     restrictive than the eligibility standards, methodologies, or 
     procedures, respectively, under such plan (or waiver) as in 
     effect on July 1, 2008; or
       (ii) on the basis of a restriction that was directed to be 
     made under State law as in effect on July 1, 2008, and would 
     have been in effect as of such date, but for a delay in the 
     effective date of a waiver under section 1115 of such Act 
     with respect to such restriction.
       (2) Compliance with prompt pay requirements.--
       (A) Application to practitioners.--
       (i) In general.--Subject to the succeeding provisions of 
     this subparagraph, no State shall be eligible for an 
     increased FMAP rate as provided under this section for any 
     claim received by a State from a practitioner subject to the 
     terms of section 1902(a)(37)(A) of the Social Security Act 
     (42 U.S.C. 1396a(a)(37)(A)) for such days during any period 
     in which that State has failed to pay claims in accordance 
     with such section as applied under title XIX of such Act.
       (ii) Reporting requirement.--Each State shall report to the 
     Secretary, on a quarterly basis, its compliance with the 
     requirements of clause (i) as such requirements pertain to 
     claims made for covered services during each month of the 
     preceding quarter.
       (iii) Waiver authority.--The Secretary may waive the 
     application of clause (i) to a State, or the reporting 
     requirement imposed under clause (ii), during any period in 
     which there are exigent circumstances, including natural 
     disasters, that prevent the timely processing of claims or 
     the submission of such a report.
       (iv) Application to claims.--Clauses (i) and (ii) shall 
     only apply to claims made for covered services after the date 
     of enactment of this Act.
       (B) Application to nursing facilities and hospitals.--The 
     provisions of subparagraph (A) shall apply with respect to a 
     nursing facility or hospital, insofar as it is paid under 
     title XIX of the Social Security Act on the basis of 
     submission of claims, in the same or similar manner (but 
     within the same timeframe) as such provisions apply to 
     practitioners described in such subparagraph.
       (3) State's application toward rainy day fund.--A State is 
     not eligible for an increase in its FMAP under paragraphs (2) 
     or (3) of subsection (a) if any amounts attributable 
     (directly or indirectly) to such increase are deposited or 
     credited into any reserve or rainy day fund of the State.
       (4) No waiver authority.--Except as provided in paragraph 
     (2)(A)(iii), the Secretary may not waive the application of 
     this subsection or subsection (d) under section 1115 of the 
     Social Security Act or otherwise.
       (5) Limitation of fmap to 100 percent.--In no case shall an 
     increase in FMAP under this section result in an FMAP that 
     exceeds 100 percent.
       (d) Requirements.--
       (1) State reports.--Each State that is paid additional 
     Federal funds as a result of this section shall, not later 
     than September 30, 2014, submit a report to the Secretary, in 
     such form and such manner as the Secretary shall determine, 
     regarding how the additional Federal funds were expended.
       (2) Additional requirement for certain states.--In the case 
     of a State that requires political subdivisions within the 
     State to contribute toward the non-Federal share of 
     expenditures under the State Medicaid plan required under 
     section 1902(a)(2) of the Social Security Act (42 U.S.C. 
     1396a(a)(2)), the State is not eligible for an increase in 
     its FMAP under paragraphs (2) or (3) of subsection (a) if it 
     requires that such political subdivisions pay for quarters 
     during the ARRA transitional assistance period a greater 
     percentage of the non-Federal share of such expenditures, or 
     a greater percentage of the non-Federal share of payments 
     under section 1923, than the respective percentage that would 
     have been required by the State under such plan on September 
     30, 2008, prior to application of this section.
       (e) Definitions.--In this Act, except as otherwise 
     provided:
       (1) ARRA.--The term ``ARRA'' means the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 
     140).
       (2) FMAP.--The term ``FMAP''' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)), as determined 
     without regard to this section except as otherwise specified.
       (3) Poverty line.--The term ``poverty line'' has the 
     meaning given such term in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)), including any 
     revision required by such section.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (5) State.--The term ``State'' has the meaning given such 
     term in section 1101(a)(1) of the Social Security Act (42 
     U.S.C. 1301(a)(1)) for purposes of title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.).
       (f) Sunset.--This section shall not apply to items and 
     services furnished after the end of the ARRA transitional 
     assistance period.
                                 ______
                                 
      By Mr. AKAKA (for himself and Mr. Voinovich):
  S. 2834. A bill to amend the Intelligence Reform and Terrorism 
Prevention Act of 2004 to establish a Security Clearance and 
Suitability Performance Accountability Council and for other purposes; 
to the Select Committee on Intelligence.
  Mr. AKAKA. Mr. President, today I am introducing, along with my 
colleague Senator Voinovich, the Security Clearance Modernization and 
Reporting Act of 2009.
  Since 2005, our Homeland Security and Governmental Affairs 
Subcommittee on Oversight of Government Management, the Federal 
Workforce, and the District of Columbia has held a series of six 
oversight hearings on the serious shortfalls of the Federal 
Government's ability to effectively and efficiently issue security 
clearances to federal employees and contractors.
  This issue was placed on the Government Accountability Office's, GAO, 
High-Risk List in 2005. Since then, through the strong oversight of our 
Subcommittee and hard work of those in the government dedicated to 
reforming and modernizing the security clearance process, the 
tremendous backlog of security clearance investigations has all but 
vanished, and clearance determinations are made much more quickly. 
While progress has been made, we must use this opportunity to continue 
to push for fundamental changes to the clearance process to ensure that 
we do not experience the same problems in the future.
  In 2004, the Intelligence Reform and Terrorism Prevention Act, IRTPA, 
P.L. 108-458, required 90 percent of clearances to be completed within 
an average of 60 days by December 2009. At the time, it took almost a 
year to complete a Top Secret clearance request. IRTPA also required 
that agencies recognize clearance determinations made by other agencies 
to ensure reciprocity of clearances. An Executive Order was issued to 
implement these requirements, designating the Office of Management and 
Budget, OMB, as the agency responsible for setting security clearance 
policy and calling on the Office of Personnel Management, OPM, to 
conduct clearance investigations. Unfortunately, clearance timeliness 
continued to be unacceptably slow.
  After continued pressure from our Subcommittee and other 
stakeholders, in 2008, OMB brought together the Department of Defense, 
the Office of the Director of National Intelligence, ODNI, and OPM to 
create a plan to overhaul and streamline the clearance process 
government-wide. At the recommendation of this reform team, a

[[Page 29366]]

new executive order was issued creating a governance structure for 
overseeing and modernizing the federal government's security clearance 
and suitability processes. The members of the reform team were 
designated as the Suitability and Security Clearance Performance 
Accountability Council, PAC.
  Since the creation of the PAC and the implementation of some reforms, 
including enhanced application processes, new clearance standards, and 
plans for electronic adjudication and reevaluation, timeliness of 
clearances has greatly improved. Already, agencies are generally 
meeting goals laid out by the IRTPA. However, this has required 
tremendous effort and a surge in investigation capacity over several 
years to address backlogs.
  The bill that we are introducing today would address the lingering 
concerns over the clearance process and help sustain the momentum for 
reforming and modernizing the security clearance and suitability 
determination processes.
  First, to ensure accountability in security clearance reform and 
modernization, it is necessary to produce more detailed timeliness 
reporting. Today, OMB only reports the average timeliness of the 90 
fastest percent of clearances. At our Subcommittee hearings, the GAO 
has repeatedly called for expanded reporting. It is important that we 
look at the timeliness of the whole process. Our legislation would 
require more complete reporting on timeliness for all clearances, not 
just the 90 percent that we see today. For the first time, it would 
require OMB to break down the numbers based on types of clearances and 
employee groups, and to report on which agencies are complying with 
reciprocal recognition of clearances. While the current IRTPA reporting 
requirements end in 2011, our legislation would extend these 
requirements to ensure that we receive reports until GAO has concluded 
this is no longer a high-risk issue.
  To ensure consistent leadership, our bill would codify the 
Performance Accountability Council, which has been the catalyst for 
much of the reform we have seen to date. It is critical that we codify 
the PAC as its future was in doubt during the presidential transition 
as the new administration reviewed previous executive orders.
  GAO has also urged the creation of new metrics that would measure not 
only the timeliness of clearance determinations, but also the quality 
and completeness of investigations. These metrics should be defined 
through the creation of a comprehensive strategic plan for clearance 
modernization. In response to GAO's recommendations, the legislation 
would require the PAC to create a comprehensive strategic plan. This 
plan would outline reform goals, establish performance measures, create 
a more robust communications strategy, define clear roles and 
responsibilities for stakeholders, and examine funding needs in order 
to keep reforms on track.
  Finally, this bill would require that the PAC undertake a more 
comprehensive information technology assessment than it has to date. 
Today, dozens of intertwined systems are used in the clearance process. 
These systems are a patchwork of outdated technology owned by different 
agencies. Rather than conducting an inventory of the current technology 
in use, as the PAC has already done, our bill would require a true 
needs assessment to define the most effective information technology 
approach.
  Our Subcommittee, under both my leadership and that of Senator 
Voinovich, has worked in a bipartisan manner on this issue seamlessly 
for several years and our oversight has yielded positive results. It is 
vital, from both a human capital perspective and a national security 
perspective, that security clearances and suitability determinations be 
of the highest quality and made in a timely manner. We must work to 
make sure this issue is removed from the High-Risk List as soon as 
possible.
  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. 2834

       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 ``Security Clearance 
     Modernization and Reporting Act of 2009''.

     SEC. 2. DEFINITIONS.

       Subsection (a) of section 3001 of the Intelligence Reform 
     and Terrorism Prevention Act of 2004 (50 U.S.C. 435b) is 
     amended--
       (1) in the matter preceding paragraph (1) by striking ``In 
     this section:'' and inserting ``Except as otherwise 
     specifically provided, in this title:'';
       (2) by redesignating paragraph (1) as paragraph (2);
       (3) by redesignating paragraph (2) as paragraph (5);
       (4) by redesignating paragraph (3) as paragraph (4);
       (5) by redesignating paragraph (4) as paragraph (12);
       (6) by redesignating paragraph (5) as paragraph (10);
       (7) by redesignating paragraph (6) as paragraph (15);
       (8) by redesignating paragraph (7) as paragraph (14);
       (9) by redesignating paragraph (8) as paragraph (3);
       (10) by inserting before paragraph (2), as redesignated by 
     paragraph (2), the following:
       ``(1) Adjudication.--The term `adjudication' means the 
     evaluation of pertinent data in a background investigation 
     and any other available information that is relevant and 
     reliable to determine whether an individual is--
       ``(A) suitable for Federal Government employment;
       ``(B) eligible for logical and physical access to federally 
     controlled information systems;
       ``(C) eligible for physical access to federally controlled 
     facilities;
       ``(D) eligible for access to classified information;
       ``(E) eligible to hold a sensitive position; or
       ``(F) fit to perform work for or on behalf of the Federal 
     Government as a contractor employee.'';
       (11) by inserting after paragraph (5), as redesignated by 
     paragraph (3), the following:
       ``(6) Classified information.--The term `classified 
     information' means information that has been determined, 
     pursuant to Executive Order 12958 (60 Fed. Reg. 19825) or a 
     successor or predecessor order, or the Atomic Energy Act of 
     1954 (42 U.S.C. 2011 et seq.), to require protection against 
     unauthorized disclosure.
       ``(7) Continuous evaluation.--The term `continuous 
     evaluation' means a review of the background of an individual 
     who has been determined to be eligible for access to 
     classified information (including additional or new checks of 
     commercial databases, Government databases, and other 
     information lawfully available to security officials) at any 
     time during the period of eligibility to determine whether 
     that individual continues to meet the requirements for 
     eligibility for access to classified information.
       ``(8) Contractor.--The term `contractor' means an expert or 
     consultant, who is not subject to section 3109 of title 5, 
     United States Code, to an agency, an industrial or commercial 
     contractor, licensee, certificate holder, or grantee of any 
     agency, including all subcontractors, a personal services 
     contractor, or any other category of person who performs work 
     for or on behalf of an agency and who is not an employee of 
     an agency.
       ``(9) Contractor employee fitness.--The term `contractor 
     employee fitness' means fitness based on character and 
     conduct for work for or on behalf of an agency as a 
     contractor employee.'';
       (12) by inserting after paragraph (10), as redesignated by 
     paragraph (6), the following:
       ``(11) Federally controlled facilities; federally 
     controlled information systems.--The term `federally 
     controlled facilities' and `federally controlled information 
     systems' have the meanings prescribed in guidance pursuant to 
     the Federal Information Security Management Act of 2002 
     (title III of Public Law 107-347; 116 Stat. 2946), the 
     amendments made by that Act, and Homeland Security 
     Presidential Directive 12, or any successor Directive.'';
       (13) by inserting after paragraph (12), as redesignated by 
     paragraph (5), the following:
       ``(13) Logical access.--The term `logical access' means, 
     with respect to federally controlled information systems, 
     access other than occasional or intermittent access to 
     federally controlled information systems.'';
       (14) by inserting after paragraph (15), as redesignated by 
     paragraph (7), the following:
       ``(16) Physical access.--The term `physical access' means, 
     with respect to federally controlled facilities, access other 
     than occasional or intermittent access to federally 
     controlled facilities.
       ``(17) Sensitive position.--The term `sensitive position' 
     means any position designated as a sensitive position under 
     Executive Order 10450 or any successor Executive Order.
       ``(18) Suitability.--The term `suitability' has the meaning 
     of that term in part 731, of

[[Page 29367]]

     title 5, Code of Federal Regulations or any successor similar 
     regulation.''.

     SEC. 3. SECURITY CLEARANCE AND SUITABILITY DETERMINATION 
                   REPORTING.

       (a) Extension of Reporting Requirements.--Paragraph (1) of 
     section 3001(h) of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (50 U.S.C. 435b(h)) is amended by 
     striking ``through 2011,'' and inserting ``until the earlier 
     of the date that is 2 years after the date that the 
     Comptroller General of the United States has removed all 
     items related to security clearances from the list maintained 
     by the Comptroller General known as the High-Risk List or 
     2017,''.
       (b) Reports on Security Clearance Review Processes.--
     Paragraph (2) of such section 3001(h) is amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (E) and (F), respectively; and
       (2) by striking subparagraph (A) and inserting the 
     following:
       ``(A) a description of the full range of time required to 
     complete initial clearance applications, including time 
     required by each authorized investigative agency and each 
     authorized adjudicative agency--
       ``(i) to respond to requests for security clearances for 
     individuals, including the periods required to initiate 
     security clearance investigations, conduct security clearance 
     investigations, deliver completed investigations to the 
     requesting agency, adjudicate such requests, make final 
     determinations on such requests, and notify individuals and 
     individuals' employers of such determinations, from date of 
     submission of the requests to the date of the ultimate 
     disposition of the requests and notifications, disaggregated 
     by the type of security clearance, including Secret, Top 
     Secret, and Top Secret with Special Program Access, including 
     sensitive compartmented information clearances--
       ``(I) for civilian employees of the United States;
       ``(II) for members of the Armed Forces of the United 
     States; and
       ``(III) for contractor employees; and
       ``(ii) to conduct investigations for suitability 
     determinations for individuals from successful submission of 
     applications to ultimate disposition of applications and 
     notifications to the individuals--
       ``(I) for civilian employees of the United States;
       ``(II) for members of the Armed Forces of the United 
     States; and
       ``(III) for contractor employees; and
       ``(B) a listing of the agencies and departments of the 
     United States that have established and utilize policies to 
     accept all security clearance background investigations and 
     determinations completed by an authorized investigative 
     agency or authorized adjudicative agency;
       ``(C) a description of the progress in implementing the 
     strategic plan referred to in section 3004;
       ``(D) a description of the progress made in implementing 
     the information technology strategy referred to in section 
     3005;''.

     SEC. 4. SECURITY CLEARANCE AND SUITABILITY PERFORMANCE 
                   ACCOUNTABILITY COUNCIL.

       Title III of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (50 U.S.C. 435b et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 3003. SECURITY CLEARANCE AND SUITABILITY PERFORMANCE 
                   ACCOUNTABILITY COUNCIL.

       ``(a) Establishment.--There is established a Security 
     Clearance and Suitability Performance Accountability Council 
     (hereinafter referred to as the `Council').
       ``(b) Chair.--
       ``(1) Designation.--The Deputy Director for Management, 
     Office of Management and Budget, shall serve as Chair of the 
     Council.
       ``(2) Authority.--The Chair of the Council shall have 
     authority, direction, and control over the functions of the 
     Council.
       ``(c) Vice Chair.--The Chair of the Council shall select a 
     Vice Chair to act in the Chair's absence.
       ``(d) Membership.--
       ``(1) In general.--The members of the Council shall 
     include--
       ``(A) the Chair of the Council; and
       ``(B) an appropriate senior officer from each of the 
     following:
       ``(i) The Office of the Director of National Intelligence.
       ``(ii) The Department of Defense.
       ``(iii) The Office of Personnel Management.
       ``(2) Other members.--The Chair of the Council may 
     designate appropriate employees of other agencies or 
     departments of the United States as members of the Council.
       ``(e) Duties.--The Council shall--
       ``(1) ensure alignment of suitability, security, and, as 
     appropriate, contractor employee fitness, investigative, and 
     adjudicative processes;
       ``(2) ensure alignment of investigative requirements for 
     suitability determinations and security clearances to reduce 
     duplication in investigations;
       ``(3) oversee the establishment of requirements for 
     enterprise information technology;
       ``(4) oversee the development of techniques and tools, 
     including information technology, for enhancing background 
     investigations and eligibility determinations and ensure that 
     such techniques and tools are utilized;
       ``(5) ensure that each agency and department of the United 
     States establishes and utilizes policies for ensuring 
     reciprocal recognition of clearances that allow access to 
     classified information granted by all other agencies and 
     departments;
       ``(6) ensure sharing of best practices among agencies and 
     departments of the United States;
       ``(7) hold each agency and department of the United States 
     accountable for the implementation of suitability, security, 
     and, as appropriate, contractor employee fitness processes 
     and procedures; and
       ``(8) hold each agency and department of the United States 
     accountable for recognizing clearances that allow access to 
     classified information granted by all other agencies and 
     departments of the United States.
       ``(f) Assignment of Duties.--The Chair may assign, in whole 
     or in part, to the head of any agency or department of the 
     United States, solely or jointly, any duty of the Council 
     relating to--
       ``(1) alignment and improvement of investigations and 
     determinations of suitability;
       ``(2) determinations of contractor employee fitness; and
       ``(3) determinations of eligibility--
       ``(A) for logical access to federally controlled 
     information systems;
       ``(B) for physical access to federally controlled 
     facilities;
       ``(C) for access to classified information; or
       ``(D) to hold a sensitive position.''.

     SEC. 5. STRATEGIC PLAN FOR REFORM.

       Title III of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (50 U.S.C. 435b et seq.), as amended 
     by section 4, is further amended by adding at the end the 
     following new section:

     ``SEC. 3004. SECURITY CLEARANCE AND SUITABILITY REFORM 
                   STRATEGIC PLAN.

       ``(a) Requirement for Plan.--Not later than 90 days after 
     the date of the enactment of the Security Clearance 
     Modernization and Reporting Act of 2009, the Security 
     Clearance and Suitability Performance Accountability Council 
     established in section 3003 shall develop a strategic plan 
     that identifies the causes of problems with the issuance of 
     security clearances and a description of actions to be taken 
     to correct such problems.
       ``(b) Contents.--The plan required by subsection (a) shall 
     include a description of--
       ``(1) the clear mission and strategic goals of the plan;
       ``(2) performance measures to be used to determine the 
     effectiveness of security clearance procedures, including 
     measures for the quality of security clearance investigations 
     and adjudications;
       ``(3) a formal communications strategy related to the 
     issuance of security clearances;
       ``(4) the roles and responsibilities for agencies 
     participating in security clearance reform efforts; and
       ``(5) the long-term funding requirements for security 
     clearance reform efforts.
       ``(c) Submission to Congress.--The plan required by 
     subsection (a) shall be submitted to the appropriate 
     committees of Congress.
       ``(d) Government Accountability Office Review.--The plan 
     required by subsection (a) shall be reviewed by the 
     Comptroller General of the United States following its 
     submission to the appropriate committees of Congress under 
     subsection (c).''.

     SEC. 6. INFORMATION TECHNOLOGY STRATEGY.

       Title III of the Intelligence Reform and Terrorism 
     Prevention Act of 2004 (50 U.S.C. 435b et seq.), as amended 
     by sections 4 and 5, is further amended by adding at the end 
     the following new section:

     ``SEC. 3005. INFORMATION TECHNOLOGY STRATEGY.

       ``(a) Requirement for Strategy.--Not later than 120 days 
     after the date of the enactment of the Security Clearance 
     Modernization and Reporting Act of 2009, the Director of the 
     Office of Management and Budget shall submit to the 
     appropriate committees of Congress an information technology 
     strategy that describes the plans to expedite investigative 
     and adjudicative processes, verify standard information 
     submitted as part of an application for a security clearance, 
     and provide security clearance and suitability determination 
     reform consistent with the strategy required by section 
     3004(a), by carrying out the Enterprise Information 
     Technology Strategy referred to in the Report of the Joint 
     Security and Suitability Reform Team, dated December 30, 
     2008.
       ``(b) Content.--The strategy required by subsection (a) 
     shall include--
       ``(1) a description of information technology required to 
     request a security clearance or suitability investigation;
       ``(2) a description of information technology required to 
     apply for a security clearance or suitability investigation;
       ``(3) a description of information technology systems 
     needed to support such investigations;
       ``(4) a description of information technology required to 
     transmit common machine readable investigation files to 
     agencies for adjudication;
       ``(5) a description of information technology required to 
     support agency adjudications of security clearance and 
     suitability determinations;
       ``(6) a description of information technology required to 
     support continuous evaluations;

[[Page 29368]]

       ``(7) a description of information technology required to 
     implement a single repository containing all security 
     clearance and suitability determinations of each agency and 
     department of the United States that is accessible by each 
     such agency and department in support of ensuring reciprocal 
     recognition of access to classified information among such 
     agencies and departments;
       ``(8) a description of the efforts of the Security 
     Clearance and Suitability Performance Council established in 
     section 3003, and each of the Department of Defense, the 
     Office of Personnel Management, and the Office of the 
     Director of National Intelligence to carry out the strategy 
     submitted under subsection (a);
       ``(9) the plans of the agencies and departments of the 
     United States to develop, implement, fund, and provide 
     personnel to carry out the strategy submitted under 
     subsection (a);
       ``(10) cost estimates to carry out the strategy submitted 
     under subsection (a); and
       ``(11) a description of the schedule for carrying out the 
     strategy submitted under subsection (a).''.

     SEC. 7. TECHNICAL AND CLERICAL AMENDMENTS.

       (1) Technical correction.--The table of contents in section 
     1(b) of the Intelligence Reform and Terrorism Prevention Act 
     of 2004 (Public Law 108-458; 118 Stat. 3638) is amended by 
     adding after the item relating to section 3001 the following:

``Sec. 3002. Security clearances; limitations.''.

       (2) Clerical amendment.--The table of contents in section 
     1(b) of the Intelligence Reform and Terrorism Prevention Act 
     of 2004, as amended by paragraph (1), is further amended by 
     adding after the item relating to section 3002, as added by 
     such paragraph, the following:

``Sec. 3003. Security Clearance and Suitability Performance 
              Accountability Council.
``Sec. 3004. Security clearance and suitability reform strategic plan.
``Sec. 3005. Information technology strategy.''.

  Mr. VOINOVICH. Mr. President, I rise today to join my good friend and 
Chairman on the Oversight of Government Management Subcommittee, 
Senator Akaka, to ensure that security clearance reform efforts begun 
in recent years continue by cosponsoring the Security Clearance 
Modernization and Reporting Act of 2009.
  Since the 1990s, the Government's Accountability Office, GAO, has 
documented problems with the Department of Defense's, DoD, personnel 
security clearance program, and in 2005 added the program to its high-
risk list. DoD's personnel security clearance program has remained on 
the 2007 and 2009 high risk lists.
  In an effort to address this matter and improve the security 
clearance process, Congress set benchmarks for the time taken to issue 
clearances in the Intelligence Reform and Terrorism Prevention Act of 
2004, IRTPA. IRTPA also required the President to select a single 
agency or office to oversee the security clearance process across the 
federal government and required uniform policies regarding the security 
clearance process, reciprocal recognition of security clearances among 
agencies, an evaluation of technology to expedite security clearance 
processes, and a plan to reduce the length of the security clearance 
process. While progress has been made to decrease the amount of time it 
takes to obtain a security clearance, more improvement is needed to 
fully reform the security clearance process, but reform efforts have 
been delayed this year by an interagency review of the security 
clearance reform initiatives undertaken over the past several years.
  To ensure that the good work begun with passage of IRTPA in 2004, I 
am pleased to cosponsor Senator Akaka's legislation that extends 
IRTPA's reporting requirements relating to security clearance reform 
efforts beyond their current 2011 expiration date and requires more 
details in those reports about the amount of time required by 
individual agencies to conduct both security clearance investigations 
and adjudications. To ensure that efforts begun over the past several 
years continue, the bill codifies portions of Executive Order 13467, 
which deals with reforming processes related to eligibility for access 
to classified information. The bill also calls for the development of 
the strategic plan GAO has been asking for since the DoD personnel 
security clearance program was put on its high risk list in 2005 and 
requires a more detailed information technology strategy relating to 
security clearance reform efforts.
  I am proud to cosponsor this bill and thank the Senator from Hawaii 
for his work on this legislation to address such an important issue.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Cardin, Mr. Kaufman, Mrs. 
        Gillibrand, and Mr. Menendez):
  S. 2835. A bill to reduce global warming pollution through 
international climate finance, investment, and for other purposes; to 
the Committee on Foreign Relations.
  Mr. KAUFMAN. Mr. President, I am pleased to join the Chairman of the 
Foreign Relations Committee and my colleagues to introduce an important 
piece of legislation, the International Climate Change Investment Act 
of 2009. Climate change is a global issue and only a concerted 
international response can succeed. This legislation provides key 
elements of an international deal that will both protect our planet and 
meet our Nation's international responsibilities. Even more importantly 
in these times, it will open the door to a green economy that can 
create jobs here for the markets abroad for clean energy goods and 
services.
  Successful global climate negotiations will create the opportunity 
for us to transform our own economy, to free ourselves from dependence 
on fossil fuels from foreign sources, and to create the jobs and 
markets for a new, sustainable economy.
  This legislation establishes a new framework for a global market in 
clean energy technologies. A complete agenda to confront climate change 
will include support for our educational base and for the research, 
development, and deployment of clean technologies. A climate deal that 
moves us away from fossil fuels will create global demand for those 
technologies. Building capacity and encouraging dramatic change in 
other countries will create a pool of customers for America's 
innovators.
  That global market offers us the best chance to create a new economy 
based on a growing demand for clean energy goods and services--and that 
will support job creation and profits here at home. Companies in my 
home state of Delaware and across America are ready and eager to seize 
this opportunity for a world's worth of new markets. Our smartest 
investors agree.
  This legislation shows the rest of the world that we are ready to do 
our part to make a smart, effective, and fair international climate 
change agreement work. It sets us on a firm forward footing to lead the 
way in tomorrow's green economy.

                          ____________________