[House Report 114-760]
[From the U.S. Government Publishing Office]
114th Congress } { Rept. 114-760
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
GAO MANDATES REVISION ACT OF 2016
_______
September 19, 2016.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Chaffetz, from the Committee on Oversight and Government Reform,
submitted the following
R E P O R T
[To accompany H.R. 5687]
[Including cost estimate of the Congressional Budget Office]
The Committee on Oversight and Government Reform, to whom
was referred the bill (H.R. 5687) to eliminate or modify
certain mandates of the Government Accountability Office,
having considered the same, report favorably thereon without
amendment and recommend that the bill do pass.
CONTENTS
Page
Committee Statement and Views.................................... 2
Section-by-Section............................................... 3
Explanation of Amendments........................................ 4
Committee Consideration.......................................... 4
Roll Call Votes.................................................. 4
Correspondence................................................... 5
Application of Law to the Legislative Branch..................... 15
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 15
Statement of General Performance Goals and Objectives............ 15
Duplication of Federal Programs.................................. 15
Disclosure of Directed Rule Makings.............................. 15
Federal Advisory Committee Act................................... 15
Unfunded Mandate Statement....................................... 15
Earmark Identification........................................... 15
Committee Estimate............................................... 16
Budget Authority and Congressional Budget Office Cost Estimate... 16
Changes in Existing Law Made by the Bill, as Reported............ 17
Committee Statement and Views
PURPOSE AND SUMMARY
H.R. 5687, the GAO Mandates Revision Act of 2016, improves
the efficiency of the United States Government Accountability
Office (GAO) by eliminating or reducing its obligation to
conduct eight statutorily-mandated reports.
BACKGROUND AND NEED FOR LEGISLATION
The Government Accountability Office's (GAO) mission is to
support Congress in meeting its constitutional responsibilities
and to help improve the performance and ensure the
accountability of the federal government for the benefit of the
American people.\1\ In fulfilling this role, GAO's work has
resulted in over $600 billion in financial benefits to the
federal government since fiscal year 2003.\2\
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\1\Gov't Accountability Office, ``About GAO'', http://www.gao.gov/
about/ (Last visited Aug. 7, 2016).
\2\Gov't Accountability Office, Fiscal Year 2017 Budget Request
(March 2016) (GAO-16-409T).
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In helping set the agenda for GAO's work, Congress
regularly enacts legislation that includes requirements for GAO
to submit reports to Congress or its committees in support of
its legislative and oversight responsibilities. However, some
of these statutory reporting requirements are no longer
necessary. GAO has little, if any, flexibility with respect to
statutory mandates, which take priority over other GAO work
requested by Congress and can use significant staffing
resources. By eliminating or amending statutorily-mandated GAO
reports that are no longer necessary, or may be needed on a
less frequent basis, GAO will be able to better prioritize its
resources.
GAO conducted an agency-wide evaluation to identify
statutorily-mandated reports that may be outdated or that
generally added little value to oversight of the program. After
GAO identified reports to amend or repeal, the House Committee
on Oversight and Government Reform, the Senate Committee on
Homeland Security and Governmental Affairs (HSGAC) and GAO
worked with the committees of jurisdiction, on a bipartisan
basis, to identify a final list of statutorily mandated reports
that could either be modified or eliminated.
H.R. 5687 is the outcome of this bipartisan process. This
legislation eliminates four statutorily required GAO reports
and amends four additional statutorily mandated reports to
reduce scope or frequency. This bill also helps improve
oversight of the federal government by ensuring GAO can more
quickly and effectively fulfill pressing Congressional
priorities.
LEGISLATIVE HISTORY
H.R. 5687, the GAO Mandates Revision Act of 2016, was
introduced on July 8, 2016 by Representative Jody Hice (R-GA)
and referred to the Committee on Oversight and Government
Reform. The bill was also referred to the Committees on
Transportation and Infrastructure, Financial Services, Energy
and Commerce, Ways and Means, and Homeland Security. On July
12, 2016, the Committee on Oversight and Government Reform
ordered H.R. 5687 favorably reported without amendment by voice
vote.
Companion legislation, S. 2964, was introduced in the
Senate by Senator Ron Johnson (R-WI), Chairman of the Senate
Committee on Homeland Security and Governmental Affairs, on May
19, 2016. HSGAC ordered the bill favorably reported without
amendment on May 25, 2016 by voice vote.
Section-by-Section
Section 1. Short title
Designates the short title of the bill as the ``GAO
Mandates Revision Act of 2016.''
Section 2. Reports eliminated
Section 2(a) amends the Single Audit Act Amendments of 1996
(P.L. 104-156; Chapter 75 of title 31, United States Code) to
eliminate a GAO report to review legislation that requires
financial audits of nonfederal entities receiving federal
awards.
Section 2(b) amends the Consolidated Appropriations Act
2001 (P.L. 106-554; Section 111(c) of the Medicare Medicaid,
and SCHIP Benefits Improvement and Protection Act of 2000
[Appendix F; 114 Stat. 2763A-473]) to eliminate a GAO report to
evaluate the extent to which premium levels for Medicare
supplemental policies reflect reductions in coinsurance for
hospital outpatient department services.
Section 2(c) amends Section 1105 of the Sandy Recovery
Improvement Act of 2013 (42 U.S.C. 5189 a note) to eliminate a
GAO report on the Federal Emergency Management Agency's (FEMA)
dispute resolution pilot program.
Section 2(d) amends the Implementing Recommendations of the
9/11 Commission Act of 2007 (Section 114(u) of title 49, United
States Code) to eliminate a GAO report on a biennial
satisfaction survey of recipients of transportation
intelligence reports under the Department of Homeland
Security's transportation security information sharing plan.
Section 3. Reports modified
Section 3(a) amends the Emergency Economic Stabilization
Act of 2008 (P.L. 110-343; 12 U.S. 5226(a)(3)) to require GAO
to report annually (instead of the current requirement of every
60 days) on its oversight of the Troubled Assets Relief Program
(TARP).
Section 3(b) amends the Dodd-Frank Wall Street Reform and
Consumer Financial Protection Act of 2010 (P.L. 111-203; 15
U.S.C. 78m note) to amend GAO's reporting of the effectiveness
of disclosures relating to conflict minerals originating in the
Democratic Republic of the Congo or adjoining countries on the
rate of sexual- and gender-based violence and the promotion of
peace and security in such areas. This section terminates GAO's
annual reporting after 2020, but also requires reports in 2022
and 2024.
Section 3(c) amends the American Taxpayer Relief Act of
2012 (P.L. 112-240; 126 Stat. 2354) to extend the GAO reporting
deadline from December 31, 2015 to December 31, 2024 for a
report on examining the inclusion of oral-only end-stage renal
disease (ESRD) as they related to Medicare's bundled
prospective payment system implemented by the Department of
Health and Human Services (HHS).
Section 3(d) amends the Public Health Service Act (42
U.S.C. 280g-15) to transfer from GAO to the Secretary of HHS
the responsibility to provide information, personnel, and
administrative assistance for a review panel that consults with
HHS about the award of grants to states for the development,
implementation, and evaluation of alternatives to medical tort
litigation.
Explanation of Amendments
No amendments were offered to H.R. 5687 during Full
Committee consideration of the bill.
Committee Consideration
On July 12, 2016 the Committee on Oversight and Government
Reform met in open session and reported favorably the bill,
H.R. 5687, by voice vote, a quorum being present.
Roll Call Votes
No roll call votes were requested or conducted during Full
Committee consideration of H.R. 5687.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch where the bill relates to the terms and conditions of
employment or access to public services and accommodations.
This bill eliminates or modifies certain mandates of the
Government Accountability Office. As such this bill does not
relate to employment or access to public services and
accommodations.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives of the bill are to eliminate or modify
certain mandates of the Government Accountability Office.
Duplication of Federal Programs
No provision of this bill establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee estimates that enacting this bill does not
direct the completion of any specific rule makings within the
meaning of 5 U.S.C. 551.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of 5 U.S.C. App., Section 5(b).
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandate Reform Act, P.L. 104-4) requires a statement as to
whether the provisions of the reported include unfunded
mandates. In compliance with this requirement the Committee has
received a letter from the Congressional Budget Office included
herein.
Earmark Identification
This bill does not include any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Committee Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
this bill. However, clause 3(d)(2)(B) of that rule provides
that this requirement does not apply when the Committee has
included in its report a timely submitted cost estimate of the
bill prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following cost estimate for this bill from the Director of
Congressional Budget Office:
July 28, 2016.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5687, the GAO
Mandates Revision Act of 2016.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Keith Hall.
Enclosure.
H.R. 5687--GAO Mandates Revision Act of 2016
The Congress often requires that the Government
Accountability Office (GAO) perform an annual examination of a
program, agency, or other federal activity. H.R. 5687 would
modify or repeal nine of those activities.
Based on information from GAO, CBO estimates that
implementing the legislation would reduce discretionary costs
by about $1 million over the 2017-2021 period; such reductions
would be subject to future appropriations actions consistent
with the provisions of this bill. GAO has an annual budget of
more than $500 million and prepares hundreds of products for
the Congress each year. CBO expects that implementing H.R. 5687
would not have a significant effect on the agency's overall
workload.
Enacting H.R. 5687 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply. CBO
estimates that enacting H.R. 5687 would not increase net direct
spending or on-budget deficits in any of the four consecutive
10-year periods beginning in 2027.
H.R. 5687 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
On June 22, 2016, CBO transmitted a cost estimate for S.
2964, the GAO Mandates Revision Act of 2016, as ordered
reported by the Senate Committee on Homeland Security and
Governmental Affairs on May 25, 2016. The two pieces of
legislation are similar, and CBO's estimates of their budgetary
effects are the same.
The CBO staff contact for this estimate is Matthew
Pickford. The estimate was approved by H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
* * * * * * *
CHAPTER 75--REQUIREMENTS FOR SINGLE AUDITS
Sec.
7501. Definitions.
* * * * * * *
[7506. Monitoring responsibilities of the Comptroller General.
[7507. Effective date.]
7506. Effective date.
* * * * * * *
[Sec. 7506. Monitoring responsibilities of the Comptroller General
[(a) The Comptroller General shall review provisions
requiring financial audits of non-Federal entities that receive
Federal awards that are contained in bills and resolutions
reported by the committees of the Senate and the House of
Representatives.
[(b) If the Comptroller General determines that a bill or
resolution contains provisions that are inconsistent with the
requirements of this chapter, the Comptroller General shall, at
the earliest practicable date, notify in writing--
[(1) the committee that reported such bill or
resolution; and
[(2)(A) the Committee on Governmental Affairs of the
Senate (in the case of a bill or resolution reported by
a committee of the Senate); or
[(B) the Committee on Government Reform and Oversight
of the House of Representatives (in the case of a bill
or resolution reported by a committee of the House of
Representatives).]
Sec. [7507.] 7506. Effective date
This chapter shall apply to any non-Federal entity with
respect to any of its fiscal years which begin after June 30,
1996.
* * * * * * *
----------
SECTION 111 OF THE MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT
AND PROTECTION ACT OF 2000
SEC. 111. ACCELERATION OF REDUCTION OF BENEFICIARY COPAYMENT FOR
HOSPITAL OUTPATIENT DEPARTMENT SERVICES.
(a) Reducing the Upper Limit on Beneficiary Copayment.--
(1) In general.--[omitted--amended other Act]
(2) Effective date.--The amendment made by paragraph
(1) shall apply with respect to services furnished on
or after April 1, 2001.
(b) Construction Regarding Limiting Increases in Cost-
Sharing.--Nothing in this Act or the Social Security Act shall
be construed as preventing a hospital from waiving the amount
of any coinsurance for outpatient hospital services under the
medicare program under title XVIII of the Social Security Act
that may have been increased as a result of the implementation
of the prospective payment system under section 1833(t) of the
Social Security Act (42 U.S.C. 1395l(t)).
[(c) GAO Study of Reduction in Medigap Premium Levels
Resulting From Reductions in Coinsurance.--The Comptroller
General of the United States shall work, in concert with the
National Association of Insurance Commissioners, to evaluate
the extent to which the premium levels for medicare
supplemental policies reflect the reductions in coinsurance
resulting from the amendment made by subsection (a). Not later
than April 1, 2004, the Comptroller General shall submit to
Congress a report on such evaluation and the extent to which
the reductions in beneficiary coinsurance effected by such
amendment have resulted in actual savings to medicare
beneficiaries.]
----------
SANDY RECOVERY IMPROVEMENT ACT OF 2013
* * * * * * *
DIVISION B--SANDY RECOVERY IMPROVEMENT ACT OF 2013
* * * * * * *
Sec. 1105. DISPUTE RESOLUTION PILOT PROGRAM.
(a) Definitions.--In this section, the following definitions
apply:
(1) Administrator.--The term ``Administrator'' means
the Administrator of the Federal Emergency Management
Agency.
(2) Eligible assistance.--The term ``eligible
assistance'' means assistance--
(A) under section 403, 406, or 407 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170b,
5172, 5173);
(B) for which the legitimate amount in
dispute is not less than $1,000,000, which sum
the Administrator shall adjust annually to
reflect changes in the Consumer Price Index for
all Urban Consumers published by the Department
of Labor;
(C) for which the applicant has a non-Federal
share; and
(D) for which the applicant has received a
decision on a first appeal.
(b) Procedures.--
(1) In general.--Not later than 180 days after the
date of enactment of this section, and in order to
facilitate an efficient recovery from major disasters,
the Administrator shall establish procedures under
which an applicant may request the use of alternative
dispute resolution, including arbitration by an
independent review panel, to resolve disputes relating
to eligible assistance.
(2) Binding effect.--A decision by an independent
review panel under this section shall be binding upon
the parties to the dispute.
(3) Considerations.--The procedures established under
this section shall--
(A) allow a party of a dispute relating to
eligible assistance to request an independent
review panel for the review;
(B) require a party requesting an independent
review panel as described in subparagraph (A)
to agree to forgo rights to any further appeal
of the dispute relating to any eligible
assistance;
(C) require that the sponsor of an
independent review panel for any alternative
dispute resolution under this section be--
(i) an individual or entity
unaffiliated with the dispute (which
may include a Federal agency, an
administrative law judge, or a
reemployed annuitant who was an
employee of the Federal Government)
selected by the Administrator; and
(ii) responsible for identifying and
maintaining an adequate number of
independent experts qualified to review
and resolve disputes under this
section;
(D) require an independent review panel to--
(i) resolve any remaining disputed
issue in accordance with all applicable
laws, regulations, and Agency
interpretations of those laws through
its published policies and guidance;
(ii) consider only evidence contained
in the administrative record, as it
existed at the time at which the Agency
made its initial decision;
(iii) only set aside a decision of
the Agency found to be arbitrary,
capricious, an abuse of discretion, or
otherwise not in accordance with law;
and
(iv) in the case of a finding of
material fact adverse to the claimant
made on first appeal, only set aside or
reverse such finding if the finding is
clearly erroneous;
(E) require an independent review panel to
expeditiously issue a written decision for any
alternative dispute resolution under this
section; and
(F) direct that if an independent review
panel for any alternative dispute resolution
under this section determines that the basis
upon which a party submits a request for
alternative dispute resolution is frivolous,
the independent review panel shall direct the
party to pay the reasonable costs to the
Federal Emergency Management Agency relating to
the review by the independent review panel. Any
funds received by the Federal Emergency
Management Agency under the authority of this
section shall be deposited to the credit of the
appropriation or appropriations available for
the eligible assistance in dispute on the date
on which the funds are received.
(c) Sunset.--A request for review by an independent review
panel under this section may not be made after December 31,
2015.
[(d) Report.--
[(1) In general.--Not later than 270 days after the
termination of authority under this section under
subsection (c), the Comptroller General of the United
States shall submit to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Transportation and Infrastructure of the
House of Representatives a report analyzing the
effectiveness of the program under this section.
[(2) Contents.--The report submitted under paragraph
(1) shall include--
[(A) a determination of the availability of
data required to complete the report;
[(B) an assessment of the effectiveness of
the program under this section, including an
assessment of whether the program expedited or
delayed the disaster recovery process;
[(C) an assessment of whether the program
increased or decreased costs to administer
section 403, 406, or 407 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act;
[(D) an assessment of the procedures and
safeguards that the independent review panels
established to ensure objectivity and accuracy,
and the extent to which they followed those
procedures and safeguards;
[(E) a recommendation as to whether any
aspect of the program under this section should
be made a permanent authority; and
[(F) recommendations for any modifications to
the authority or the administration of the
authority under this section in order to
improve the disaster recovery process.]
* * * * * * *
----------
TITLE 49, UNITED STATES CODE
SUBTITLE I--DEPARTMENT OF TRANSPORTATION
* * * * * * *
CHAPTER 1--ORGANIZATION
* * * * * * *
Sec. 114. Transportation Security Administration
(a) In General.--The Transportation Security Administration
shall be an administration of the Department of Transportation.
(b) Under Secretary.--
(1) Appointment.--The head of the Administration
shall be the Under Secretary of Transportation for
Security. The Under Secretary shall be appointed by the
President, by and with the advice and consent of the
Senate.
(2) Qualifications.--The Under Secretary must--
(A) be a citizen of the United States; and
(B) have experience in a field directly
related to transportation or security.
(3) Term.--The term of office of an individual
appointed as the Under Secretary shall be 5 years.
(c) Limitation on Ownership of Stocks and Bonds.--The Under
Secretary may not own stock in or bonds of a transportation or
security enterprise or an enterprise that makes equipment that
could be used for security purposes.
(d) Functions.--The Under Secretary shall be responsible for
security in all modes of transportation, including--
(1) carrying out chapter 449, relating to civil
aviation security, and related research and development
activities; and
(2) security responsibilities over other modes of
transportation that are exercised by the Department of
Transportation.
(e) Screening Operations.--The Under Secretary shall--
(1) be responsible for day-to-day Federal security
screening operations for passenger air transportation
and intrastate air transportation under sections 44901
and 44935;
(2) develop standards for the hiring and retention of
security screening personnel;
(3) train and test security screening personnel; and
(4) be responsible for hiring and training personnel
to provide security screening at all airports in the
United States where screening is required under section
44901, in consultation with the Secretary of
Transportation and the heads of other appropriate
Federal agencies and departments.
(f) Additional Duties and Powers.--In addition to carrying
out the functions specified in subsections (d) and (e), the
Under Secretary shall--
(1) receive, assess, and distribute intelligence
information related to transportation security;
(2) assess threats to transportation;
(3) develop policies, strategies, and plans for
dealing with threats to transportation security;
(4) make other plans related to transportation
security, including coordinating countermeasures with
appropriate departments, agencies, and
instrumentalities of the United States Government;
(5) serve as the primary liaison for transportation
security to the intelligence and law enforcement
communities;
(6) on a day-to-day basis, manage and provide
operational guidance to the field security resources of
the Administration, including Federal Security Managers
as provided by section 44933;
(7) enforce security-related regulations and
requirements;
(8) identify and undertake research and development
activities necessary to enhance transportation
security;
(9) inspect, maintain, and test security facilities,
equipment, and systems;
(10) ensure the adequacy of security measures for the
transportation of cargo;
(11) oversee the implementation, and ensure the
adequacy, of security measures at airports and other
transportation facilities;
(12) require background checks for airport security
screening personnel, individuals with access to secure
areas of airports, and other transportation security
personnel;
(13) work in conjunction with the Administrator of
the Federal Aviation Administration with respect to any
actions or activities that may affect aviation safety
or air carrier operations;
(14) work with the International Civil Aviation
Organization and appropriate aeronautic authorities of
foreign governments under section 44907 to address
security concerns on passenger flights by foreign air
carriers in foreign air transportation; and
(15) carry out such other duties, and exercise such
other powers, relating to transportation security as
the Under Secretary considers appropriate, to the
extent authorized by law.
(g) National Emergency Responsibilities.--
(1) In general.--Subject to the direction and control
of the Secretary, the Under Secretary, during a
national emergency, shall have the following
responsibilities:
(A) To coordinate domestic transportation,
including aviation, rail, and other surface
transportation, and maritime transportation
(including port security).
(B) To coordinate and oversee the
transportation-related responsibilities of
other departments and agencies of the Federal
Government other than the Department of Defense
and the military departments.
(C) To coordinate and provide notice to other
departments and agencies of the Federal
Government, and appropriate agencies of State
and local governments, including departments
and agencies for transportation, law
enforcement, and border control, about threats
to transportation.
(D) To carry out such other duties, and
exercise such other powers, relating to
transportation during a national emergency as
the Secretary shall prescribe.
(2) Authority of other departments and agencies.--The
authority of the Under Secretary under this subsection
shall not supersede the authority of any other
department or agency of the Federal Government under
law with respect to transportation or transportation-
related matters, whether or not during a national
emergency.
(3) Circumstances.--The Secretary shall prescribe the
circumstances constituting a national emergency for
purposes of this subsection.
(h) Management of Security Information.--In consultation with
the Transportation Security Oversight Board, the Under
Secretary shall--
(1) enter into memoranda of understanding with
Federal agencies or other entities to share or
otherwise cross-check as necessary data on individuals
identified on Federal agency databases who may pose a
risk to transportation or national security;
(2) establish procedures for notifying the
Administrator of the Federal Aviation Administration,
appropriate State and local law enforcement officials,
and airport or airline security officers of the
identity of individuals known to pose, or suspected of
posing, a risk of air piracy or terrorism or a threat
to airline or passenger safety;
(3) in consultation with other appropriate Federal
agencies and air carriers, establish policies and
procedures requiring air carriers--
(A) to use information from government
agencies to identify individuals on passenger
lists who may be a threat to civil aviation or
national security; and
(B) if such an individual is identified,
notify appropriate law enforcement agencies,
prevent the individual from boarding an
aircraft, or take other appropriate action with
respect to that individual; and
(4) consider requiring passenger air carriers to
share passenger lists with appropriate Federal agencies
for the purpose of identifying individuals who may pose
a threat to aviation safety or national security.
(i) View of NTSB.--In taking any action under this section
that could affect safety, the Under Secretary shall give great
weight to the timely views of the National Transportation
Safety Board.
(j) Acquisitions.--
(1) In general.--The Under Secretary is authorized--
(A) to acquire (by purchase, lease,
condemnation, or otherwise) such real property,
or any interest therein, within and outside the
continental United States, as the Under
Secretary considers necessary;
(B) to acquire (by purchase, lease,
condemnation, or otherwise) and to construct,
repair, operate, and maintain such personal
property (including office space and patents),
or any interest therein, within and outside the
continental United States, as the Under
Secretary considers necessary;
(C) to lease to others such real and personal
property and to provide by contract or
otherwise for necessary facilities for the
welfare of its employees and to acquire,
maintain, and operate equipment for these
facilities;
(D) to acquire services, including such
personal services as the Secretary determines
necessary, and to acquire (by purchase, lease,
condemnation, or otherwise) and to construct,
repair, operate, and maintain research and
testing sites and facilities; and
(E) in cooperation with the Administrator of
the Federal Aviation Administration, to utilize
the research and development facilities of the
Federal Aviation Administration.
(2) Title.--Title to any property or interest therein
acquired pursuant to this subsection shall be held by
the Government of the United States.
(k) Transfers of Funds.--The Under Secretary is authorized to
accept transfers of unobligated balances and unexpended
balances of funds appropriated to other Federal agencies (as
such term is defined in section 551(1) of title 5) to carry out
functions transferred, on or after the date of enactment of the
Aviation and Transportation Security Act, by law to the Under
Secretary.
(l) Regulations.--
(1) In general.--The Under Secretary is authorized to
issue, rescind, and revise such regulations as are
necessary to carry out the functions of the
Administration.
(2) Emergency procedures.--
(A) In general.--Notwithstanding any other
provision of law or executive order (including
an executive order requiring a cost-benefit
analysis), if the Under Secretary determines
that a regulation or security directive must be
issued immediately in order to protect
transportation security, the Under Secretary
shall issue the regulation or security
directive without providing notice or an
opportunity for comment and without prior
approval of the Secretary.
(B) Review by transportation security
oversight board.--Any regulation or security
directive issued under this paragraph shall be
subject to review by the Transportation
Security Oversight Board established under
section 115. Any regulation or security
directive issued under this paragraph shall
remain effective for a period not to exceed 90
days unless ratified or disapproved by the
Board or rescinded by the Under Secretary.
(3) Factors to consider.--In determining whether to
issue, rescind, or revise a regulation under this
section, the Under Secretary shall consider, as a
factor in the final determination, whether the costs of
the regulation are excessive in relation to the
enhancement of security the regulation will provide.
The Under Secretary may waive requirements for an
analysis that estimates the number of lives that will
be saved by the regulation and the monetary value of
such lives if the Under Secretary determines that it is
not feasible to make such an estimate.
(4) Airworthiness objections by faa.--
(A) In general.--The Under Secretary shall
not take an aviation security action under this
title if the Administrator of the Federal
Aviation Administration notifies the Under
Secretary that the action could adversely
affect the airworthiness of an aircraft.
(B) Review by secretary.--Notwithstanding
subparagraph (A), the Under Secretary may take
such an action, after receiving a notification
concerning the action from the Administrator
under subparagraph (A), if the Secretary of
Transportation subsequently approves the
action.
(m) Personnel and Services; Cooperation by Under Secretary.--
(1) Authority of under secretary.--In carrying out
the functions of the Administration, the Under
Secretary shall have the same authority as is provided
to the Administrator of the Federal Aviation
Administration under subsections (l) and (m) of section
106.
(2) Authority of agency heads.--The head of a Federal
agency shall have the same authority to provide
services, supplies, equipment, personnel, and
facilities to the Under Secretary as the head has to
provide services, supplies, equipment, personnel, and
facilities to the Administrator of the Federal Aviation
Administration under section 106(m).
(n) Personnel Management System.--The personnel management
system established by the Administrator of the Federal Aviation
Administration under section 40122 shall apply to employees of
the Transportation Security Administration, or, subject to the
requirements of such section, the Under Secretary may make such
modifications to the personnel management system with respect
to such employees as the Under Secretary considers appropriate,
such as adopting aspects of other personnel systems of the
Department of Transportation.
(o) Authority of Inspector General.--The Transportation
Security Administration shall be subject to the Inspector
General Act of 1978 (5 U.S.C. App.) and other laws relating to
the authority of the Inspector General of the Department of
Transportation.
(p) Law Enforcement Powers.--
(1) In general.--The Under Secretary may designate an
employee of the Transportation Security Administration
or other Federal agency to serve as a law enforcement
officer.
(2) Powers.--While engaged in official duties of the
Administration as required to fulfill the
responsibilities under this section, a law enforcement
officer designated under paragraph (1) may--
(A) carry a firearm;
(B) make an arrest without a warrant for any
offense against the United States committed in
the presence of the officer, or for any felony
cognizable under the laws of the United States
if the officer has probable cause to believe
that the person to be arrested has committed or
is committing the felony; and
(C) seek and execute warrants for arrest or
seizure of evidence issued under the authority
of the United States upon probable cause that a
violation has been committed.
(3) Guidelines on exercise of authority.--The
authority provided by this subsection shall be
exercised in accordance with guidelines prescribed by
the Under Secretary, in consultation with the Attorney
General of the United States, and shall include
adherence to the Attorney General's policy on use of
deadly force.
(4) Revocation or suspension of authority.--The
powers authorized by this subsection may be rescinded
or suspended should the Attorney General determine that
the Under Secretary has not complied with the
guidelines prescribed in paragraph (3) and conveys the
determination in writing to the Secretary of
Transportation and the Under Secretary.
(q) Authority To Exempt.--The Under Secretary may grant an
exemption from a regulation prescribed in carrying out this
section if the Under Secretary determines that the exemption is
in the public interest.
(r) Nondisclosure of Security Activities.--
(1) In general.--Notwithstanding section 552 of title
5, the Under Secretary shall prescribe regulations
prohibiting the disclosure of information obtained or
developed in carrying out security under authority of
the Aviation and Transportation Security Act (Public
Law 107-71) or under chapter 449 of this title if the
Under Secretary decides that disclosing the information
would--
(A) be an unwarranted invasion of personal
privacy;
(B) reveal a trade secret or privileged or
confidential commercial or financial
information; or
(C) be detrimental to the security of
transportation.
(2) Availability of information to congress.--
Paragraph (1) does not authorize information to be
withheld from a committee of Congress authorized to
have the information.
(3) Limitation on transferability of duties.--Except
as otherwise provided by law, the Under Secretary may
not transfer a duty or power under this subsection to
another department, agency, or instrumentality of the
United States.
(4) Limitations.--Nothing in this subsection, or any
other provision of law, shall be construed to authorize
the designation of information as sensitive security
information (as defined in section 1520.5 of title 49,
Code of Federal Regulations)--
(A) to conceal a violation of law,
inefficiency, or administrative error;
(B) to prevent embarrassment to a person,
organization, or agency;
(C) to restrain competition; or
(D) to prevent or delay the release of
information that does not require protection in
the interest of transportation security,
including basic scientific research information
not clearly related to transportation security.
(s) Transportation Security Strategic Planning.--
(1) In general.--The Secretary of Homeland Security
shall develop, prepare, implement, and update, as
needed--
(A) a National Strategy for Transportation
Security; and
(B) transportation modal security plans
addressing security risks, including threats,
vulnerabilities, and consequences, for
aviation, railroad, ferry, highway, maritime,
pipeline, public transportation, over-the-road
bus, and other transportation infrastructure
assets.
(2) Role of secretary of transportation.--The
Secretary of Homeland Security shall work jointly with
the Secretary of Transportation in developing,
revising, and updating the documents required by
paragraph (1).
(3) Contents of national strategy for transportation
security.--The National Strategy for Transportation
Security shall include the following:
(A) An identification and evaluation of the
transportation assets in the United States
that, in the interests of national security and
commerce, must be protected from attack or
disruption by terrorist or other hostile
forces, including modal security plans for
aviation, bridge and tunnel, commuter rail and
ferry, highway, maritime, pipeline, rail, mass
transit, over-the-road bus, and other public
transportation infrastructure assets that could
be at risk of such an attack or disruption.
(B) The development of risk-based priorities,
based on risk assessments conducted or received
by the Secretary of Homeland Security
(including assessments conducted under the
Implementing Recommendations of the 9/11
Commission Act of 2007 across all
transportation modes and realistic deadlines
for addressing security needs associated with
those assets referred to in subparagraph (A).
(C) The most appropriate, practical, and
cost-effective means of defending those assets
against threats to their security.
(D) A forward-looking strategic plan that
sets forth the agreed upon roles and missions
of Federal, State, regional, local, and tribal
authorities and establishes mechanisms for
encouraging cooperation and participation by
private sector entities, including nonprofit
employee labor organizations, in the
implementation of such plan.
(E) A comprehensive delineation of
prevention, response, and recovery
responsibilities and issues regarding
threatened and executed acts of terrorism
within the United States and threatened and
executed acts of terrorism outside the United
States to the extent such acts affect United
States transportation systems.
(F) A prioritization of research and
development objectives that support
transportation security needs, giving a higher
priority to research and development directed
toward protecting vital transportation assets.
Transportation security research and
development projects shall be based, to the
extent practicable, on such prioritization.
Nothing in the preceding sentence shall be
construed to require the termination of any
research or development project initiated by
the Secretary of Homeland Security or the
Secretary of Transportation before the date of
enactment of the Implementing Recommendations
of the 9/11 Commission Act of 2007.
(G) A 3- and 10-year budget for Federal
transportation security programs that will
achieve the priorities of the National Strategy
for Transportation Security.
(H) Methods for linking the individual
transportation modal security plans and the
programs contained therein, and a plan for
addressing the security needs of intermodal
transportation.
(I) Transportation modal security plans
described in paragraph (1)(B), including
operational recovery plans to expedite, to the
maximum extent practicable, the return to
operation of an adversely affected
transportation system following a major
terrorist attack on that system or other
incident. These plans shall be coordinated with
the resumption of trade protocols required
under section 202 of the SAFE Port Act (6
U.S.C. 942) and the National Maritime
Transportation Security Plan required under
section 70103(a) of title 46.
(4) Submissions of plans to congress.--
(A) Initial strategy.--The Secretary of
Homeland Security shall submit the National
Strategy for Transportation Security, including
the transportation modal security plans,
developed under this subsection to the
appropriate congressional committees not later
than April 1, 2005.
(B) Subsequent versions.--After December 31,
2005, the Secretary of Homeland Security shall
submit the National Strategy for Transportation
Security, including the transportation modal
security plans and any revisions to the
National Strategy for Transportation Security
and the transportation modal security plans, to
appropriate congressional committees not less
frequently than April 1 of each even-numbered
year.
(C) Periodic progress report.--
(i) Requirement for report.--Each
year, in conjunction with the
submission of the budget to Congress
under section 1105(a) of title 31,
United States Code, the Secretary of
Homeland Security shall submit to the
appropriate congressional committees an
assessment of the progress made on
implementing the National Strategy for
Transportation Security, including the
transportation modal security plans.
(ii) Content.--Each progress report
submitted under this subparagraph shall
include, at a minimum, the following:
(I) Recommendations for
improving and implementing the
National Strategy for
Transportation Security and the
transportation modal and
intermodal security plans that
the Secretary of Homeland
Security, in consultation with
the Secretary of
Transportation, considers
appropriate.
(II) An accounting of all
grants for transportation
security, including grants and
contracts for research and
development, awarded by the
Secretary of Homeland Security
in the most recent fiscal year
and a description of how such
grants accomplished the goals
of the National Strategy for
Transportation Security.
(III) An accounting of all--
(aa) funds requested
in the President's
budget submitted
pursuant to section
1105 of title 31 for
the most recent fiscal
year for transportation
security, by mode;
(bb) personnel
working on
transportation security
by mode, including the
number of contractors;
and
(cc) information on
the turnover in the
previous year among
senior staff of the
Department of Homeland
Security, including
component agencies,
working on
transportation security
issues. Such
information shall
include the number of
employees who have
permanently left the
office, agency, or area
in which they worked,
and the amount of time
that they worked for
the Department.
(iii) Written explanation of
transportation security activities not
delineated in the national strategy for
transportation security.--At the end of
each fiscal year, the Secretary of
Homeland Security shall submit to the
appropriate congressional committees a
written explanation of any Federal
transportation security activity that
is inconsistent with the National
Strategy for Transportation Security,
including the amount of funds to be
expended for the activity and the
number of personnel involved.
(D) Classified material.--Any part of the
National Strategy for Transportation Security
or the transportation modal security plans that
involve information that is properly classified
under criteria established by Executive order
shall be submitted to the appropriate
congressional committees separately in a
classified format.
(E) Appropriate congressional committees
defined.--In this subsection, the term
``appropriate congressional committees'' means
the Committee on Transportation and
Infrastructure and the Committee on Homeland
Security of the House of Representatives and
the Committee on Commerce, Science, and
Transportation, the Committee on Homeland
Security and Governmental Affairs, and the
Committee on Banking, Housing, and Urban
Affairs of the Senate.
(5) Priority Status.--
(A) In general.--The National Strategy for
Transportation Security shall be the governing
document for Federal transportation security
efforts.
(B) Other plans and reports.--The National
Strategy for Transportation Security shall
include, as an integral part or as an
appendix--
(i) the current National Maritime
Transportation Security Plan under
section 70103 of title 46;
(ii) the report required by section
44938 of this title;
(iii) transportation modal security
plans required under this section;
(iv) the transportation sector
specific plan required under Homeland
Security Presidential Directive-7; and
(v) any other transportation security
plan or report that the Secretary of
Homeland Security determines
appropriate for inclusion.
(6) Coordination.--In carrying out the
responsibilities under this section, the Secretary of
Homeland Security, in coordination with the Secretary
of Transportation, shall consult, as appropriate, with
Federal, State, and local agencies, tribal governments,
private sector entities (including nonprofit employee
labor organizations), institutions of higher learning,
and other entities.
(7) Plan distribution.--The Secretary of Homeland
Security shall make available and appropriately
publicize an unclassified version of the National
Strategy for Transportation Security, including its
component transportation modal security plans, to
Federal, State, regional, local and tribal authorities,
transportation system owners or operators, private
sector stakeholders, including nonprofit employee labor
organizations representing transportation employees,
institutions of higher learning, and other appropriate
entities.
(u) Transportation Security Information Sharing Plan.--
(1) Definitions.--In this subsection:
(A) Appropriate congressional committees.--
The term ``appropriate congressional
committees'' has the meaning given that term in
[subsection (t)] subsection (s)(4)(E).
(B) Plan.--The term ``Plan'' means the
Transportation Security Information Sharing
Plan established under paragraph (2).
(C) Public and private stakeholders.--The
term ``public and private stakeholders'' means
Federal, State, and local agencies, tribal
governments, and appropriate private entities,
including nonprofit employee labor
organizations representing transportation
employees.
(D) Secretary.--The term ``Secretary'' means
the Secretary of Homeland Security.
(E) Transportation security information.--The
term ``transportation security information''
means information relating to the risks to
transportation modes, including aviation,
public transportation, railroad, ferry,
highway, maritime, pipeline, and over-the-road
bus transportation, and may include specific
and general intelligence products, as
appropriate.
(2) Establishment of plan.--The Secretary of Homeland
Security, in consultation with the program manager of
the information sharing environment established under
section 1016 of the Intelligence Reform and Terrorism
Prevention Act of 2004 (6 U.S.C. 485), the Secretary of
Transportation, and public and private stakeholders,
shall establish a Transportation Security Information
Sharing Plan. In establishing the Plan, the Secretary
shall gather input on the development of the Plan from
private and public stakeholders and the program manager
of the information sharing environment established
under section 1016 of the Intelligence Reform and
Terrorism Prevention Act of 2004 (6 U.S.C. 485).
(3) Purpose of plan.--The Plan shall promote sharing
of transportation security information between the
Department of Homeland Security and public and private
stakeholders.
(4) Content of plan.--The Plan shall include--
(A) a description of how intelligence
analysts within the Department of Homeland
Security will coordinate their activities
within the Department and with other Federal,
State, and local agencies, and tribal
governments, including coordination with
existing modal information sharing centers and
the center described in section 1410 of the
Implementing Recommendations of the 9/11
Commission Act of 2007;
(B) the establishment of a point of contact,
which may be a single point of contact within
the Department of Homeland Security, for each
mode of transportation for the sharing of
transportation security information with public
and private stakeholders, including an
explanation and justification to the
appropriate congressional committees if the
point of contact established pursuant to this
subparagraph differs from the agency within the
Department that has the primary authority, or
has been delegated such authority by the
Secretary, to regulate the security of that
transportation mode;
(C) a reasonable deadline by which the Plan
will be implemented; and
(D) a description of resource needs for
fulfilling the Plan.
(5) Coordination with information sharing.--The Plan
shall be--
(A) implemented in coordination, as
appropriate, with the program manager for the
information sharing environment established
under section 1016 of the Intelligence Reform
and Terrorism Prevention Act of 2004 (6 U.S.C.
485); and
(B) consistent with the establishment of the
information sharing environment and any
policies, guidelines, procedures, instructions,
or standards established by the President or
the program manager for the implementation and
management of the information sharing
environment.
(6) Reports to congress.--
(A) In general.--Not later than 150 days
after the date of enactment of this subsection,
and annually thereafter, the Secretary shall
submit to the appropriate congressional
committees, a report containing the Plan.
(B) Annual report.--Not later than 1 year
after the date of enactment of this subsection,
the Secretary shall submit to the appropriate
congressional committees a report on updates to
and the implementation of the Plan.
[(7) Survey and report.--
[(A) In general.--The Comptroller General of
the United States shall conduct a biennial
survey of the satisfaction of recipients of
transportation intelligence reports
disseminated under the Plan.
[(B) Information sought.--The survey
conducted under subparagraph (A) shall seek
information about the quality, speed,
regularity, and classification of the
transportation security information products
disseminated by the Department of Homeland
Security to public and private stakeholders.
[(C) Report.--Not later than 1 year after the
date of the enactment of the Implementing
Recommendations of the 9/11 Commission Act of
2007, and every even numbered year thereafter,
the Comptroller General shall submit to the
appropriate congressional committees, a report
on the results of the survey conducted under
subparagraph (A). The Comptroller General shall
also provide a copy of the report to the
Secretary.]
[(8)] (7) Security clearances.--The Secretary shall,
to the greatest extent practicable, take steps to
expedite the security clearances needed for designated
public and private stakeholders to receive and obtain
access to classified information distributed under this
section, as appropriate.
[(9)] (8) Classification of material.--The Secretary,
to the greatest extent practicable, shall provide
designated public and private stakeholders with
transportation security information in an unclassified
format.
(v) Enforcement of Regulations and Orders of the Secretary of
Homeland Security.--
(1) Application of subsection.--
(A) In general.--This subsection applies to
the enforcement of regulations prescribed, and
orders issued, by the Secretary of Homeland
Security under a provision of chapter 701 of
title 46 and under a provision of this title
other than a provision of chapter 449 (in this
subsection referred to as an ``applicable
provision of this title'').
(B) Violations of chapter 449.--The penalties
for violations of regulations prescribed and
orders issued by the Secretary of Homeland
Security under chapter 449 of this title are
provided under chapter 463 of this title.
(C) Nonapplication to certain violations.--
(i) Paragraphs (2) through (5) do not
apply to violations of regulations
prescribed, and orders issued, by the
Secretary of Homeland Security under a
provision of this title--
(I) involving the
transportation of personnel or
shipments of materials by
contractors where the
Department of Defense has
assumed control and
responsibility;
(II) by a member of the armed
forces of the United States
when performing official
duties; or
(III) by a civilian employee
of the Department of Defense
when performing official
duties.
(ii) Violations described in
subclause (I), (II), or (III) of clause
(i) shall be subject to penalties as
determined by the Secretary of Defense
or the Secretary's designee.
(2) Civil penalty.--
(A) In general.--A person is liable to the
United States Government for a civil penalty of
not more than $10,000 for a violation of a
regulation prescribed, or order issued, by the
Secretary of Homeland Security under an
applicable provision of this title.
(B) Repeat violations.--A separate violation
occurs under this paragraph for each day the
violation continues.
(3) Administrative imposition of civil penalties.--
(A) In general.--The Secretary of Homeland
Security may impose a civil penalty for a
violation of a regulation prescribed, or order
issued, under an applicable provision of this
title. The Secretary shall give written notice
of the finding of a violation and the penalty.
(B) Scope of civil action.--In a civil action
to collect a civil penalty imposed by the
Secretary under this subsection, a court may
not re-examine issues of liability or the
amount of the penalty.
(C) Jurisdiction.--The district courts of the
United States shall have exclusive jurisdiction
of civil actions to collect a civil penalty
imposed by the Secretary under this subsection
if--
(i) the amount in controversy is more
than--
(I) $400,000, if the
violation was committed by a
person other than an individual
or small business concern; or
(II) $50,000 if the violation
was committed by an individual
or small business concern;
(ii) the action is in rem or another
action in rem based on the same
violation has been brought; or
(iii) another action has been brought
for an injunction based on the same
violation.
(D) Maximum penalty.--The maximum civil
penalty the Secretary administratively may
impose under this paragraph is--
(i) $400,000, if the violation was
committed by a person other than an
individual or small business concern;
or
(ii) $50,000, if the violation was
committed by an individual or small
business concern.
(E) Notice and opportunity to request
hearing.--Before imposing a penalty under this
section the Secretary shall provide to the
person against whom the penalty is to be
imposed--
(i) written notice of the proposed
penalty; and
(ii) the opportunity to request a
hearing on the proposed penalty, if the
Secretary receives the request not
later than 30 days after the date on
which the person receives notice.
(4) Compromise and setoff.--
(A) The Secretary may compromise the amount
of a civil penalty imposed under this
subsection.
(B) The Government may deduct the amount of a
civil penalty imposed or compromised under this
subsection from amounts it owes the person
liable for the penalty.
(5) Investigations and proceedings.--Chapter 461
shall apply to investigations and proceedings brought
under this subsection to the same extent that it
applies to investigations and proceedings brought with
respect to aviation security duties designated to be
carried out by the Secretary.
(6) Definitions.--In this subsection:
(A) Person.--The term ``person'' does not
include--
(i) the United States Postal Service;
or
(ii) the Department of Defense.
(B) Small business concern.--The term ``small
business concern'' has the meaning given that
term in section 3 of the Small Business Act (15
U.S.C. 632).
(7) Enforcement transparency.--
(A) In general.--Not later than December 31,
2008, and annually thereafter, the Secretary
shall--
(i) provide an annual summary to the
public of all enforcement actions taken
by the Secretary under this subsection;
and
(ii) include in each such summary the
docket number of each enforcement
action, the type of alleged violation,
the penalty or penalties proposed, and
the final assessment amount of each
penalty.
(B) Electronic availability.--Each summary
under this paragraph shall be made available to
the public by electronic means.
(C) Relationship to the freedom of
information act and the privacy act.--Nothing
in this subsection shall be construed to
require disclosure of information or records
that are exempt from disclosure under sections
552 or 552a of title 5.
(D) Enforcement guidance.--Not later than 180
days after the enactment of the Implementing
Recommendations of the 9/11 Commission Act of
2007, the Secretary shall provide a report to
the public describing the enforcement process
established under this subsection.
(w) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Homeland Security for--
(1) railroad security--
(A) $488,000,000 for fiscal year 2008;
(B) $483,000,000 for fiscal year 2009;
(C) $508,000,000 for fiscal year 2010; and
(D) $508,000,000 for fiscal year 2011;
(2) over-the-road bus and trucking security--
(A) $14,000,000 for fiscal year 2008;
(B) $27,000,000 for fiscal year 2009;
(C) $27,000,000 for fiscal year 2010; and
(D) $27,000,000 for fiscal year 2011; and
(3) hazardous material and pipeline security--
(A) $12,000,000 for fiscal year 2008;
(B) $12,000,000 for fiscal year 2009; and
(C) $12,000,000 for fiscal year 2010.
* * * * * * *
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EMERGENCY ECONOMIC STABILIZATION ACT OF 2008
* * * * * * *
DIVISION A--EMERGENCY ECONOMIC STABILIZATION
* * * * * * *
TITLE I--TROUBLED ASSETS RELIEF PROGRAM
* * * * * * *
SEC. 116. OVERSIGHT AND AUDITS.
(a) Comptroller General Oversight.--
(1) Scope of oversight.--The Comptroller General of
the United States shall, upon establishment of the
troubled assets relief program under this Act (in this
section referred to as the ``TARP''), commence ongoing
oversight of the activities and performance of the TARP
and of any agents and representatives of the TARP (as
related to the agent or representative's activities on
behalf of or under the authority of the TARP),
including vehicles established by the Secretary under
this Act. The subjects of such oversight shall include
the following:
(A) The performance of the TARP in meeting
the purposes of this Act, particularly those
involving--
(i) foreclosure mitigation;
(ii) cost reduction;
(iii) whether it has provided
stability or prevented disruption to
the financial markets or the banking
system;
(iv) whether it has protected
taxpayers; and
(v) public accountability for the
exercise of such authority, including
with respect to actions taken by those
entities participating in programs
established under this Act.
(B) The financial condition and internal
controls of the TARP, its representatives and
agents.
(C) Characteristics of transactions and
commitments entered into, including transaction
type, frequency, size, prices paid, and all
other relevant terms and conditions, and the
timing, duration and terms of any future
commitments to purchase assets.
(D) Characteristics and disposition of
acquired assets, including type, acquisition
price, current market value, sale prices and
terms, and use of proceeds from sales.
(E) Efficiency of the operations of the TARP
in the use of appropriated funds.
(F) Compliance with all applicable laws and
regulations by the TARP, its agents and
representatives.
(G) The efforts of the TARP to prevent,
identify, and minimize conflicts of interest
involving any agent or representative
performing activities on behalf of or under the
authority of the TARP.
(H) The efficacy of contracting procedures
pursuant to section 107(b), including, as
applicable, the efforts of the TARP in
evaluating proposals for inclusion and
contracting to the maximum extent possible of
minorities (as such term is defined in 1204(c)
of the Financial Institutions Reform, Recovery,
and Enhancement Act of 1989 (12 U.S.C. 1811
note), women, and minority- and women-owned
businesses, including ascertaining and
reporting the total amount of fees paid and
other value delivered by the TARP to all of its
agents and representatives, and such amounts
paid or delivered to such firms that are
minority- and women-owned businesses (as such
terms are defined in section 21A of the Federal
Home Loan Bank Act (12 U.S.C. 1441a)).
(2) Conduct and administration of oversight.--
(A) Definition.--In this paragraph, the term
``governmental unit'' has the meaning given
under section 101(27) of title 11, United
States Code, and does not include any insured
depository institution as defined under section
3 of the Federal Deposit Insurance Act (12
U.S.C. 8113).
(B) GAO presence.--The Secretary shall
provide the Comptroller General with
appropriate space and facilities in the
Department of the Treasury as necessary to
facilitate oversight of the TARP until the
termination date established in section 5230 of
this title.
(C) Access to records.--
(i) In general.--Notwithstanding any
other provision of law, and for
purposes of reviewing the performance
of the TARP, the Comptroller General
shall have access, upon request, to any
information, data, schedules, books,
accounts, financial records, reports,
files, electronic communications, or
other papers, things, or property
belonging to or in use by the TARP, any
entity established by the Secretary
under this Act, any entity that is
established by a Federal reserve bank
and receives funding from the TARP, or
any entity (other than a governmental
unit) participating in a program
established under the authority of this
Act, and to the officers, employees,
directors, independent public
accountants, financial advisors and any
and all other agents and
representatives thereof, at such time
as the Comptroller General may request.
(ii) Verification.--The Comptroller
General shall be afforded full
facilities for verifying transactions
with the balances or securities held
by, among others, depositories, fiscal
agents, and custodians.
(iii) Copies.--The Comptroller
General may make and retain copies of
such books, accounts, and other records
as the Comptroller General determines
appropriate.
(D) Agreement by entities.--Each contract,
term sheet, or other agreement between the
Secretary or the TARP (or any TARP vehicle,
officer, director, employee, independent public
accountant, financial advisor, or other TARP
agent or representative) and an entity (other
than a governmental unit) participating in a
program established under this Act shall
provide for access by the Comptroller General
in accordance with this section.
(E) Restriction on public disclosure.--
(i) In general.--The Comptroller
General may not publicly disclose
proprietary or trade secret information
obtained under this section.
(ii) Exception for congressional
committees.--This subparagraph does not
limit disclosures to congressional
committees or members thereof having
jurisdiction over a private or public
entity referred to under subparagraph
(C).
(iii) Rule of construction.--Nothing
in this section shall be construed to
alter or amend the prohibitions against
the disclosure of trade secrets or
other information prohibited by section
1905 of title 18, United States Code,
section 714(c) of title 31, United
States Code, or other applicable
provisions of law.
(F) Reimbursement of costs.--The Treasury
shall reimburse the Government Accountability
Office for the full cost of any such oversight
activities as billed therefor by the
Comptroller General of the United States. Such
reimbursements shall be credited to the
appropriation account ``Salaries and Expenses,
Government Accountability Office'' current when
the payment is received and remain available
until expended.
(3) Reporting.--The Comptroller General shall submit
reports of findings under this section[, regularly and
no less frequently than once every 60 days,] annually
to the appropriate committees of Congress, and the
Special Inspector General for the Troubled Asset Relief
Program established under this Act on the activities
and performance of the TARP. The Comptroller may also
submit special reports under this subsection as
warranted by the findings of its oversight activities.
(b) Comptroller General Audits.--
(1) Annual audit.--The TARP shall annually prepare
and issue to the appropriate committees of Congress and
the public audited financial statements prepared in
accordance with generally accepted accounting
principles, and the Comptroller General shall annually
audit such statements in accordance with generally
accepted auditing standards. The Treasury shall
reimburse the Government Accountability Office for the
full cost of any such audit as billed therefor by the
Comptroller General. Such reimbursements shall be
credited to the appropriation account ``Salaries and
Expenses, Government Accountability Office'' current
when the payment is received and remain available until
expended. The financial statements prepared under this
paragraph shall be on the fiscal year basis prescribed
under section 1102 of title 31, United States Code.
(2) Authority.--The Comptroller General may audit the
programs, activities, receipts, expenditures, and
financial transactions of the TARP and any agents and
representatives of the TARP (as related to the agent or
representative's activities on behalf of or under the
authority of the TARP), including vehicles established
by the Secretary under this Act.
(3) Corrective responses to audit problems.--The TARP
shall--
(A) take action to address deficiencies
identified by the Comptroller General or other
auditor engaged by the TARP; or
(B) certify to appropriate committees of
Congress that no action is necessary or
appropriate.
(c) Internal Control.--
(1) Establishment.--The TARP shall establish and
maintain an effective system of internal control,
consistent with the standards prescribed under section
3512(c) of title 31, United States Code, that provides
reasonable assurance of--
(A) the effectiveness and efficiency of
operations, including the use of the resources
of the TARP;
(B) the reliability of financial reporting,
including financial statements and other
reports for internal and external use; and
(C) compliance with applicable laws and
regulations.
(2) Reporting.--In conjunction with each annual
financial statement issued under this section, the TARP
shall--
(A) state the responsibility of management
for establishing and maintaining adequate
internal control over financial reporting; and
(B) state its assessment, as of the end of
the most recent year covered by such financial
statement of the TARP, of the effectiveness of
the internal control over financial reporting.
(d) Sharing of Information.--Any report or audit required
under this section shall also be submitted to the Congressional
Oversight Panel established under section 125.
(e) Termination.--Any oversight, reporting, or audit
requirement under this section shall terminate on the later
of--
(1) the date that the last troubled asset acquired by
the Secretary under section 101 has been sold or
transferred out of the ownership or control of the
Federal Government; or
(2) the date of expiration of the last insurance
contract issued under section 102.
* * * * * * *
----------
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
* * * * * * *
TITLE XV--MISCELLANEOUS PROVISIONS
* * * * * * *
SEC. 1502. CONFLICT MINERALS.
(a) Sense of Congress on Exploitation and Trade of Conflict
Minerals Originating in the Democratic Republic of the Congo.--
It is the sense of Congress that the exploitation and trade of
conflict minerals originating in the Democratic Republic of the
Congo is helping to finance conflict characterized by extreme
levels of violence in the eastern Democratic Republic of the
Congo, particularly sexual- and gender-based violence, and
contributing to an emergency humanitarian situation therein,
warranting the provisions of section 13(p) of the Securities
Exchange Act of 1934, as added by subsection (b).
(b) Disclosure Relating to Conflict Minerals Originating in
the Democratic Republic of the Congo.--Section 13 of the
Securities Exchange Act of 1934 (15 U.S.C. 78m), as amended by
this Act, is amended by adding at the end the following new
subsection:
``(p) Disclosures Relating to Conflict Minerals Originating
in the Democratic Republic of the Congo.--
``(1) Regulations.--
``(A) In general.--Not later than 270 days
after the date of the enactment of this
subsection, the Commission shall promulgate
regulations requiring any person described in
paragraph (2) to disclose annually, beginning
with the person's first full fiscal year that
begins after the date of promulgation of such
regulations, whether conflict minerals that are
necessary as described in paragraph (2)(B), in
the year for which such reporting is required,
did originate in the Democratic Republic of the
Congo or an adjoining country and, in cases in
which such conflict minerals did originate in
any such country, submit to the Commission a
report that includes, with respect to the
period covered by the report--
``(i) a description of the measures
taken by the person to exercise due
diligence on the source and chain of
custody of such minerals, which
measures shall include an independent
private sector audit of such report
submitted through the Commission that
is conducted in accordance with
standards established by the
Comptroller General of the United
States, in accordance with rules
promulgated by the Commission, in
consultation with the Secretary of
State; and
``(ii) a description of the products
manufactured or contracted to be
manufactured that are not DRC conflict
free (`DRC conflict free' is defined to
mean the products that do not contain
minerals that directly or indirectly
finance or benefit armed groups in the
Democratic Republic of the Congo or an
adjoining country), the entity that
conducted the independent private
sector audit in accordance with clause
(i), the facilities used to process the
conflict minerals, the country of
origin of the conflict minerals, and
the efforts to determine the mine or
location of origin with the greatest
possible specificity.
``(B) Certification.--The person submitting a
report under subparagraph (A) shall certify the
audit described in clause (i) of such
subparagraph that is included in such report.
Such a certified audit shall constitute a
critical component of due diligence in
establishing the source and chain of custody of
such minerals.
``(C) Unreliable determination.--If a report
required to be submitted by a person under
subparagraph (A) relies on a determination of
an independent private sector audit, as
described under subparagraph (A)(i), or other
due diligence processes previously determined
by the Commission to be unreliable, the report
shall not satisfy the requirements of the
regulations promulgated under subparagraph
(A)(i).
``(D) DRC conflict free.--For purposes of
this paragraph, a product may be labeled as
`DRC conflict free' if the product does not
contain conflict minerals that directly or
indirectly finance or benefit armed groups in
the Democratic Republic of the Congo or an
adjoining country.
``(E) Information available to the public.--
Each person described under paragraph (2) shall
make available to the public on the Internet
website of such person the information
disclosed by such person under subparagraph
(A).
``(2) Person described.--A person is described in
this paragraph if--
``(A) the person is required to file reports
with the Commission pursuant to paragraph
(1)(A); and
``(B) conflict minerals are necessary to the
functionality or production of a product
manufactured by such person.
``(3) Revisions and waivers.--The Commission shall
revise or temporarily waive the requirements described
in paragraph (1) if the President transmits to the
Commission a determination that--
``(A) such revision or waiver is in the
national security interest of the United States
and the President includes the reasons
therefor; and
``(B) establishes a date, not later than 2
years after the initial publication of such
exemption, on which such exemption shall
expire.
``(4) Termination of disclosure requirements.--The
requirements of paragraph (1) shall terminate on the
date on which the President determines and certifies to
the appropriate congressional committees, but in no
case earlier than the date that is one day after the
end of the 5-year period beginning on the date of the
enactment of this subsection, that no armed groups
continue to be directly involved and benefitting from
commercial activity involving conflict minerals.
``(5) Definitions.--For purposes of this subsection,
the terms `adjoining country', `appropriate
congressional committees', `armed group', and `conflict
mineral' have the meaning given those terms under
section 1502 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act.''.
(c) Strategy and Map to Address Linkages Between Conflict
Minerals and Armed Groups.--
(1) Strategy.--
(A) In general.--Not later than 180 days
after the date of the enactment of this Act,
the Secretary of State, in consultation with
the Administrator of the United States Agency
for International Development, shall submit to
the appropriate congressional committees a
strategy to address the linkages between human
rights abuses, armed groups, mining of conflict
minerals, and commercial products.
(B) Contents.--The strategy required by
subparagraph (A) shall include the following:
(i) A plan to promote peace and
security in the Democratic Republic of
the Congo by supporting efforts of the
Government of the Democratic Republic
of the Congo, including the Ministry of
Mines and other relevant agencies,
adjoining countries, and the
international community, in particular
the United Nations Group of Experts on
the Democratic Republic of Congo, to--
(I) monitor and stop
commercial activities involving
the natural resources of the
Democratic Republic of the
Congo that contribute to the
activities of armed groups and
human rights violations in the
Democratic Republic of the
Congo; and
(II) develop stronger
governance and economic
institutions that can
facilitate and improve
transparency in the cross-
border trade involving the
natural resources of the
Democratic Republic of the
Congo to reduce exploitation by
armed groups and promote local
and regional development.
(ii) A plan to provide guidance to
commercial entities seeking to exercise
due diligence on and formalize the
origin and chain of custody of conflict
minerals used in their products and on
their suppliers to ensure that conflict
minerals used in the products of such
suppliers do not directly or indirectly
finance armed conflict or result in
labor or human rights violations.
(iii) A description of punitive
measures that could be taken against
individuals or entities whose
commercial activities are supporting
armed groups and human rights
violations in the Democratic Republic
of the Congo.
(2) Map.--
(A) In general.--Not later than 180 days
after the date of the enactment of this Act,
the Secretary of State shall, in accordance
with the recommendation of the United Nations
Group of Experts on the Democratic Republic of
the Congo in their December 2008 report--
(i) produce a map of mineral-rich
zones, trade routes, and areas under
the control of armed groups in the
Democratic Republic of the Congo and
adjoining countries based on data from
multiple sources, including--
(I) the United Nations Group
of Experts on the Democratic
Republic of the Congo;
(II) the Government of the
Democratic Republic of the
Congo, the governments of
adjoining countries, and the
governments of other Member
States of the United Nations;
and
(III) local and international
nongovernmental organizations;
(ii) make such map available to the
public; and
(iii) provide to the appropriate
congressional committees an explanatory
note describing the sources of
information from which such map is
based and the identification, where
possible, of the armed groups or other
forces in control of the mines
depicted.
(B) Designation.--The map required under
subparagraph (A) shall be known as the
``Conflict Minerals Map'', and mines located in
areas under the control of armed groups in the
Democratic Republic of the Congo and adjoining
countries, as depicted on such Conflict
Minerals Map, shall be known as ``Conflict Zone
Mines''.
(C) Updates.--The Secretary of State shall
update the map required under subparagraph (A)
not less frequently than once every 180 days
until the date on which the disclosure
requirements under paragraph (1) of section
13(p) of the Securities Exchange Act of 1934,
as added by subsection (b), terminate in
accordance with the provisions of paragraph (4)
of such section 13(p).
(D) Publication in federal register.--The
Secretary of State shall add minerals to the
list of minerals in the definition of conflict
minerals under section 1502, as appropriate.
The Secretary shall publish in the Federal
Register notice of intent to declare a mineral
as a conflict mineral included in such
definition not later than one year before such
declaration.
(d) Reports.--
(1) Baseline report.--Not later than 1 year after the
date of the enactment of this Act and annually
thereafter [until the termination of the disclosure
requirements under section 13(p) of the Securities
Exchange Act of 1934] through 2020, in 2022, and in
2024, the Comptroller General of the United States
shall submit to appropriate congressional committees a
report that includes an assessment of the rate of
sexual- and gender-based violence in war-torn areas of
the Democratic Republic of the Congo and adjoining
countries.
(2) Regular report on effectiveness.--Not later than
2 years after the date of the enactment of this Act and
annually thereafter through 2020, in 2022, and in 2024,
the Comptroller General of the United States shall
submit to the appropriate congressional committees a
report that includes the following:
(A) An assessment of the effectiveness of
section 13(p) of the Securities Exchange Act of
1934, as added by subsection (b), in promoting
peace and security in the Democratic Republic
of the Congo and adjoining countries.
(B) A description of issues encountered by
the Securities and Exchange Commission in
carrying out the provisions of such section
13(p).
(C)(i) A general review of persons described
in clause (ii) and whether information is
publicly available about--
(I) the use of conflict
minerals by such persons; and
(II) whether such conflict
minerals originate from the
Democratic Republic of the
Congo or an adjoining country.
(ii) A person is described in this
clause if--
(I) the person is not
required to file reports with
the Securities and Exchange
Commission pursuant to section
13(p)(1)(A) of the Securities
Exchange Act of 1934, as added
by subsection (b); and
(II) conflict minerals are
necessary to the functionality
or production of a product
manufactured by such person.
(3) Report on private sector auditing.--Not later
than 30 months after the date of the enactment of this
Act, and annually thereafter, the Secretary of Commerce
shall submit to the appropriate congressional
committees a report that includes the following:
(A) An assessment of the accuracy of the
independent private sector audits and other due
diligence processes described under section
13(p) of the Securities Exchange Act of 1934.
(B) Recommendations for the processes used to
carry out such audits, including ways to--
(i) improve the accuracy of such
audits; and
(ii) establish standards of best
practices.
(C) A listing of all known conflict mineral
processing facilities worldwide.
(e) Definitions.--For purposes of this section:
(1) Adjoining country.--The term ``adjoining
country'', with respect to the Democratic Republic of
the Congo, means a country that shares an
internationally recognized border with the Democratic
Republic of the Congo.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Appropriations, the
Committee on Foreign Affairs, the Committee on
Ways and Means, and the Committee on Financial
Services of the House of Representatives; and
(B) the Committee on Appropriations, the
Committee on Foreign Relations, the Committee
on Finance, and the Committee on Banking,
Housing, and Urban Affairs of the Senate.
(3) Armed group.--The term ``armed group'' means an
armed group that is identified as perpetrators of
serious human rights abuses in the annual Country
Reports on Human Rights Practices under sections 116(d)
and 502B(b) of the Foreign Assistance Act of 1961 (22
U.S.C. 2151n(d) and 2304(b)) relating to the Democratic
Republic of the Congo or an adjoining country.
(4) Conflict mineral.--The term ``conflict mineral''
means--
(A) columbite-tantalite (coltan),
cassiterite, gold, wolframite, or their
derivatives; or
(B) any other mineral or its derivatives
determined by the Secretary of State to be
financing conflict in the Democratic Republic
of the Congo or an adjoining country.
(5) Under the control of armed groups.--The term
``under the control of armed groups'' means areas
within the Democratic Republic of the Congo or
adjoining countries in which armed groups--
(A) physically control mines or force labor
of civilians to mine, transport, or sell
conflict minerals;
(B) tax, extort, or control any part of trade
routes for conflict minerals, including the
entire trade route from a Conflict Zone Mine to
the point of export from the Democratic
Republic of the Congo or an adjoining country;
or
(C) tax, extort, or control trading
facilities, in whole or in part, including the
point of export from the Democratic Republic of
the Congo or an adjoining country.
* * * * * * *
----------
AMERICAN TAXPAYER RELIEF ACT OF 2012
* * * * * * *
TITLE VI--MEDICARE AND OTHER HEALTH EXTENSIONS
* * * * * * *
Subtitle C--Other Health Provisions
* * * * * * *
SEC. 632. REVISIONS TO THE MEDICARE ESRD BUNDLED PAYMENT SYSTEM TO
REFLECT FINDINGS IN THE GAO REPORT.
(a) Adjustment to ESRD Bundled Payment Rate To Account for
Changes in the Utilization of Certain Drugs and Biologicals.--
Section 1881(b)(14) of the Social Security Act (42 U.S.C.
1395rr(b)(14)) is amended by adding at the end the following
new subparagraph:
``(I) For services furnished on or after January 1, 2014, the
Secretary shall, by comparing per patient utilization data from
2007 with such data from 2012, make reductions to the single
payment that would otherwise apply under this paragraph for
renal dialysis services to reflect the Secretary's estimate of
the change in the utilization of drugs and biologicals
described in clauses (ii), (iii), and (iv) of subparagraph (B)
(other than oral-only ESRD-related drugs, as such term is used
in the final rule promulgated by the Secretary in the Federal
Register on August 12, 2010 (75 Fed. Reg. 49030)). In making
reductions under the preceding sentence, the Secretary shall
take into account the most recently available data on average
sales prices and changes in prices for drugs and biological
reflected in the ESRD market basket percentage increase factor
under subparagraph (F).''.
(b) Two-year Delay of Implementation of Oral-Only ESRD-
Related Drugs in the ESRD Prospective Payment System;
Monitoring.--
(1) Delay.--The Secretary of Health and Human
Services may not implement the policy under section
413.174(f)(6) of title 42, Code of Federal Regulations
(relating to oral-only ESRD-related drugs in the ESRD
prospective payment system), prior to January 1, 2025.
Notwithstanding section 1881(b)(14)(A)(ii) of the
Social Security Act (42 U.S.C. 1395rr(b)(14)(A)(ii)),
implementation of the policy described in the previous
sentence shall be based on data from the most recent
year available.
(2) Monitoring.--With respect to the implementation
of oral-only ESRD-related drugs in the ESRD prospective
payment system under subsection (b)(14) of section 1881
of the Social Security Act (42 U.S.C. 1395rr(b)(14)),
the Secretary of Health and Human Services shall
monitor the bone and mineral metabolism of individuals
with end stage renal disease.
(c) Analysis of Case Mix Payment Adjustments.--By not later
than January 1, 2016, the Secretary of Health and Human
Services shall--
(1) conduct an analysis of the case mix payment
adjustments being used under section 1881(b)(14)(D)(i)
of the Social Security Act (42 U.S.C.
1395rr(b)(14)(D)(i)); and
(2) make appropriate revisions to such case mix
payment adjustments.
(d) Updated GAO Report.--Not later than [December 31, 2015]
December 31, 2023, the Comptroller General of the United States
shall submit to Congress a report that updates the report
submitted to Congress under section 10336 of the Patient
Protection and Affordable Care Act (Public Law 111-148; 124
Stat. 974). The updated report shall include an analysis of how
the Secretary of Health and Human Services has addressed points
raised in the report submitted under such section 10336 with
respect to the Secretary's preparations to implement payment
for oral-only ESRD-related drugs in the bundled prospective
payment system under section 1881(b)(14) of the Social Security
Act (42 U.S.C. 1395rr(b)(14)).
* * * * * * *
----------
PUBLIC HEALTH SERVICE ACT
* * * * * * *
TITLE III--GENERAL POWERS AND DUTIES OF PUBLIC HEALTH SERVICE
* * * * * * *
PART P--ADDITIONAL PROGRAMS
* * * * * * *
SEC. 399V-4. STATE DEMONSTRATION PROGRAMS TO EVALUATE ALTERNATIVES TO
CURRENT MEDICAL TORT LITIGATION.
(a) In General.--The Secretary is authorized to award
demonstration grants to States for the development,
implementation, and evaluation of alternatives to current tort
litigation for resolving disputes over injuries allegedly
caused by health care providers or health care organizations.
In awarding such grants, the Secretary shall ensure the
diversity of the alternatives so funded.
(b) Duration.--The Secretary may award grants under
subsection (a) for a period not to exceed 5 years.
(c) Conditions for Demonstration Grants.--
(1) Requirements.--Each State desiring a grant under
subsection (a) shall develop an alternative to current
tort litigation that--
(A) allows for the resolution of disputes
over injuries allegedly caused by health care
providers or health care organizations; and
(B) promotes a reduction of health care
errors by encouraging the collection and
analysis of patient safety data related to
disputes resolved under subparagraph (A) by
organizations that engage in efforts to improve
patient safety and the quality of health care.
(2) Alternative to current tort litigation.--Each
State desiring a grant under subsection (a) shall
demonstrate how the proposed alternative described in
paragraph (1)(A)--
(A) makes the medical liability system more
reliable by increasing the availability of
prompt and fair resolution of disputes;
(B) encourages the efficient resolution of
disputes;
(C) encourages the disclosure of health care
errors;
(D) enhances patient safety by detecting,
analyzing, and helping to reduce medical errors
and adverse events;
(E) improves access to liability insurance;
(F) fully informs patients about the
differences in the alternative and current tort
litigation;
(G) provides patients the ability to opt out
of or voluntarily withdraw from participating
in the alternative at any time and to pursue
other options, including litigation, outside
the alternative;
(H) would not conflict with State law at the
time of the application in a way that would
prohibit the adoption of an alternative to
current tort litigation; and
(I) would not limit or curtail a patient's
existing legal rights, ability to file a claim
in or access a State's legal system, or
otherwise abrogate a patient's ability to file
a medical malpractice claim.
(3) Sources of compensation.--Each State desiring a
grant under subsection (a) shall identify the sources
from and methods by which compensation would be paid
for claims resolved under the proposed alternative to
current tort litigation, which may include public or
private funding sources, or a combination of such
sources. Funding methods shall to the extent
practicable provide financial incentives for activities
that improve patient safety.
(4) Scope.--
(A) In general.--Each State desiring a grant
under subsection (a) shall establish a scope of
jurisdiction (such as Statewide, designated
geographic region, a designated area of health
care practice, or a designated group of health
care providers or health care organizations)
for the proposed alternative to current tort
litigation that is sufficient to evaluate the
effects of the alternative. No scope of
jurisdiction shall be established under this
paragraph that is based on a health care payer
or patient population.
(B) Notification of patients.--A State shall
demonstrate how patients would be notified that
they are receiving health care services that
fall within such scope, and the process by
which they may opt out of or voluntarily
withdraw from participating in the alternative.
The decision of the patient whether to
participate or continue participating in the
alternative process shall be made at any time
and shall not be limited in any way.
(5) Preference in awarding demonstration grants.--In
awarding grants under subsection (a), the Secretary
shall give preference to States--
(A) that have developed the proposed
alternative through substantive consultation
with relevant stakeholders, including patient
advocates, health care providers and health
care organizations, attorneys with expertise in
representing patients and health care
providers, medical malpractice insurers, and
patient safety experts;
(B) that make proposals that are likely to
enhance patient safety by detecting, analyzing,
and helping to reduce medical errors and
adverse events; and
(C) that make proposals that are likely to
improve access to liability insurance.
(d) Application.--
(1) In general.--Each State desiring a grant under
subsection (a) shall submit to the Secretary an
application, at such time, in such manner, and
containing such information as the Secretary may
require.
(2) Review panel.--
(A) In general.--In reviewing applications
under paragraph (1), the Secretary shall
consult with a review panel composed of
relevant experts appointed by the Comptroller
General.
(B) Composition.--
(i) Nominations.--The Comptroller
General shall solicit nominations from
the public for individuals to serve on
the review panel.
(ii) Appointment.--The Comptroller
General shall appoint, at least 9 but
not more than 13, highly qualified and
knowledgeable individuals to serve on
the review panel and shall ensure that
the following entities receive fair
representation on such panel:
(I) Patient advocates.
(II) Health care providers
and health care organizations.
(III) Attorneys with
expertise in representing
patients and health care
providers.
(IV) Medical malpractice
insurers.
(V) State officials.
(VI) Patient safety experts.
(C) Chairperson.--The Comptroller General[,
or an individual within the Government
Accountability Office designated by the
Comptroller General, shall] shall designate a
member of the review panel to be the
chairperson of the review panel.
(D) Availability of information.--The
[Comptroller General] Secretary shall make
available to the review panel such information,
personnel, and administrative services and
assistance as the review panel may reasonably
require to carry out its duties.
(E) Information from agencies.--The review
panel may request directly from any department
or agency of the United States any information
that such panel considers necessary to carry
out its duties. To the extent consistent with
applicable laws and regulations, the head of
such department or agency shall furnish the
requested information to the review panel.
(e) Reports.--
(1) By state.--Each State receiving a grant under
subsection (a) shall submit to the Secretary an annual
report evaluating the effectiveness of activities
funded with grants awarded under such subsection. Such
report shall, at a minimum, include the impact of the
activities funded on patient safety and on the
availability and price of medical liability insurance.
(2) By secretary.--The Secretary shall submit to
Congress an annual compendium of the reports submitted
under paragraph (1) and an analysis of the activities
funded under subsection (a) that examines any
differences that result from such activities in terms
of the quality of care, number and nature of medical
errors, medical resources used, length of time for
dispute resolution, and the availability and price of
liability insurance.
(f) Technical Assistance.--
(1) In general.--The Secretary shall provide
technical assistance to the States applying for or
awarded grants under subsection (a).
(2) Requirements.--Technical assistance under
paragraph (1) shall include--
(A) guidance on non-economic damages,
including the consideration of individual facts
and circumstances in determining appropriate
payment, guidance on identifying avoidable
injuries, and guidance on disclosure to
patients of health care errors and adverse
events; and
(B) the development, in consultation with
States, of common definitions, formats, and
data collection infrastructure for States
receiving grants under this section to use in
reporting to facilitate aggregation and
analysis of data both within and between
States.
(3) Use of common definitions, formats, and data
collection infrastructure.--States not receiving grants
under this section may also use the common definitions,
formats, and data collection infrastructure developed
under paragraph (2)(B).
(g) Evaluation.--
(1) In general.--The Secretary, in consultation with
the review panel established under subsection (d)(2),
shall enter into a contract with an appropriate
research organization to conduct an overall evaluation
of the effectiveness of grants awarded under subsection
(a) and to annually prepare and submit a report to
Congress. Such an evaluation shall begin not later than
18 months following the date of implementation of the
first program funded by a grant under subsection (a).
(2) Contents.--The evaluation under paragraph (1)
shall include--
(A) an analysis of the effects of the grants
awarded under subsection (a) with regard to the
measures described in paragraph (3);
(B) for each State, an analysis of the extent
to which the alternative developed under
subsection (c)(1) is effective in meeting the
elements described in subsection (c)(2);
(C) a comparison among the States receiving
grants under subsection (a) of the
effectiveness of the various alternatives
developed by such States under subsection
(c)(1);
(D) a comparison, considering the measures
described in paragraph (3), of States receiving
grants approved under subsection (a) and
similar States not receiving such grants; and
(E) a comparison, with regard to the measures
described in paragraph (3), of--
(i) States receiving grants under
subsection (a);
(ii) States that enacted, prior to
the date of enactment of the Patient
Protection and Affordable Care Act, any
cap on non-economic damages; and
(iii) States that have enacted, prior
to the date of enactment of the Patient
Protection and Affordable Care Act, a
requirement that the complainant obtain
an opinion regarding the merit of the
claim, although the substance of such
opinion may have no bearing on whether
the complainant may proceed with a
case.
(3) Measures.--The evaluations under paragraph (2)
shall analyze and make comparisons on the basis of--
(A) the nature and number of disputes over
injuries allegedly caused by health care
providers or health care organizations;
(B) the nature and number of claims in which
tort litigation was pursued despite the
existence of an alternative under subsection
(a);
(C) the disposition of disputes and claims,
including the length of time and estimated
costs to all parties;
(D) the medical liability environment;
(E) health care quality;
(F) patient safety in terms of detecting,
analyzing, and helping to reduce medical errors
and adverse events;
(G) patient and health care provider and
organization satisfaction with the alternative
under subsection (a) and with the medical
liability environment; and
(H) impact on utilization of medical
services, appropriately adjusted for risk.
(4) Funding.--The Secretary shall reserve 5 percent
of the amount appropriated in each fiscal year under
subsection (k) to carry out this subsection.
(h) MedPAC and MACPAC Reports.--
(1) MedPAC.--The Medicare Payment Advisory Commission
shall conduct an independent review of the alternatives
to current tort litigation that are implemented under
grants under subsection (a) to determine the impact of
such alternatives on the Medicare program under title
XVIII of the Social Security Act, and its
beneficiaries.
(2) MACPAC.--The Medicaid and CHIP Payment and Access
Commission shall conduct an independent review of the
alternatives to current tort litigation that are
implemented under grants under subsection (a) to
determine the impact of such alternatives on the
Medicaid or CHIP programs under titles XIX and XXI of
the Social Security Act, and their beneficiaries.
(3) Reports.--Not later than December 31, 2016, the
Medicare Payment Advisory Commission and the Medicaid
and CHIP Payment and Access Commission shall each
submit to Congress a report that includes the findings
and recommendations of each respective Commission based
on independent reviews conducted under paragraphs (1)
and (2), including an analysis of the impact of the
alternatives reviewed on the efficiency and
effectiveness of the respective programs.
(i) Option To Provide for Initial Planning Grants.--Of the
funds appropriated pursuant to subsection (k), the Secretary
may use a portion not to exceed $500,000 per State to provide
planning grants to such States for the development of
demonstration project applications meeting the criteria
described in subsection (c). In selecting States to receive
such planning grants, the Secretary shall give preference to
those States in which State law at the time of the application
would not prohibit the adoption of an alternative to current
tort litigation.
(j) Definitions.--In this section:
(1) Health care services.--The term ``health care
services'' means any services provided by a health care
provider, or by any individual working under the
supervision of a health care provider, that relate to--
(A) the diagnosis, prevention, or treatment
of any human disease or impairment; or
(B) the assessment of the health of human
beings.
(2) Health care organization.--The term ``health care
organization'' means any individual or entity which is
obligated to provide, pay for, or administer health
benefits under any health plan.
(3) Health care provider.--The term ``health care
provider'' means any individual or entity--
(A) licensed, registered, or certified under
Federal or State laws or regulations to provide
health care services; or
(B) required to be so licensed, registered,
or certified but that is exempted by other
statute or regulation.
(k) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section, $50,000,000 for the
5-fiscal year period beginning with fiscal year 2011.
(l) Current State Efforts To Establish Alternative To Tort
Litigation.--Nothing in this section shall be construed to
limit any prior, current, or future efforts of any State to
establish any alternative to tort litigation.
(m) Rule of Construction.--Nothing in this section shall be
construed as limiting states' authority over or responsibility
for their state justice systems.
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