[Pages S3514-S3543]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. DASCHLE (for himself and Mr. Lugar):
S. 2503. A bill to amend the Clean Air Act to authorize States to
regulate harmful fuel additives and to require fuel to contain fuel
made from renewable sources, to amend the Solid Waste Disposal Act to
require that at least 85 percent of funds appropriated to the
Environmental Protection Agency from the Leaking Underground Storage
Tank Trust Fund be distributed to States to carry out cooperative
agreements for undertaking corrective action and for enforcement of
subtitle I of that act, and for other purposes; to the Committee on
Environment and Public Works.

renewable fuels act of 2000

Mr. DASCHLE. Mr. President, ten years ago I joined with two
distinguished colleagues, then-Senate Majority Leader Bob Dole and
Senator Tom Harkin, to introduce the reformulated gasoline (RFG)
provision of the 1990 Clean Air Act Amendments. The RFG provision, with
its minimum oxygen standard, was adopted in the Senate by the
overwhelming vote of 69 to 30 and eventually signed into law by
President George Bush.
I am proud to say that this program has resulted in substantial
improvement in air quality around the country. It also has stimulated
increased production and use of renewable ethanol and other oxygenates
needed to meet the minimum oxygen standard.
Unfortunately, an unanticipated development involving the petroleum-
based oxygenate MTBE requires us to re-examine the many benefits of the
RFG program. The detection of MTBE in ground water around the country
has generated considerable debate in recent months over how to deal
with this fuel additive and the oxygen requirement of the reformulated
gasoline program. The resolution of this debate will have significant
consequences for the environment, for farmers and for the rural
economy.
The pace of activity to resolve the MTBE issue is accelerating
rapidly. Battlelines are being drawn as the state of California and its
allies focus on scrapping the oxygen requirement.
It is clear that Congress and/or the Clinton administration will
respond to the MTBE problem. My focus is on ensuring that that response
not only serves the environment, but also retains a prominent place for
ethanol--a place that assures long-term, predictable growth of the
industry.
I believe a comprehensive legislative solution is necessary in this
case--one that recognizes and preserves the important air quality
benefits of the RFG program, protects water supplies and leads the
nation away from greater dependence on imported oil.
I have worked for the last year with the ethanol industry, Republican
and Democratic colleagues in the Senate, the Governor's Ethanol
Coalition, environmental organizations and the administration in search
of a solution that gives states the tools they need to address MTBE
contamination, ensures the future growth of domestic renewable fuels,
and prevents supply shortages and price spikes in the nation's fuels
supply.
This process has led me to two basic conclusions.
First, the MTBE crisis has left the RFG oxygen requirement vulnerable
to legislative attack. Those who doubt this conclusion should reflect
on the following facts.
California refiners have shown that clean-burning gasoline can be
produced without oxygen.
EPA's Blue Ribbon Panel has recommended that the oxygen requirement
be repealed.
The RFG oxygen requirement is opposed by a diverse coalition that
includes the American Lung Association, the American Petroleum
Institute, the New England States Coordinated Air Use Management
agency, the State of California and the Natural Resources Defense
Council (NRDC).
Second, support for the oxygen requirement will weaken over time.
Improvements in auto emissions control technology will cause the air
quality benefits of oxygen in gasoline to decline and the justification
for the RFG oxygen requirement to diminish.
As one of the original authors of the reformulated gasoline
provisions of the Clean Air Act, I feel something of a proprietary
interest in the oxygen requirement. As a legislator, I recognize that
circumstances change, and obstinacy should not be allowed to become a
barrier to the achievement of important policy goals.
Ethanol advocates face a choice between defending the oxygen
requirement in the near term, realizing that its days ultimately are
numbered, or using the current MTBE debate to guarantee the future
growth of the ethanol industry based on important public policy goals,
such as energy security, greenhouse gas emissions reductions, and
domestic economic growth.
In my judgment, providing states with the flexibility to waive the
RFG oxygen requirement is a fair tradeoff for the establishment of a
renewable fuels standard. It represents the most effective way to
achieve the environmental and economic goals of governors and
consumers, while putting the ethanol industry on a steady growth path
well into the future and promoting ethanol production in new regions of
the nation.
Therefore, today, with Senator Richard Lugar, I am introducing the
Renewable Fuels Act of 2000. Under our

[[Page S3515]]

legislation, EPA is directed to reduce the use of MTBE to safe levels,
and states can obtain waivers from the RFG oxygen requirement and
further regulate MTBE if they desire. This will allow the nation to
deal with the MTBE contamination issue responsibly and avoid gasoline
supply disruptions. The bill also includes provisions protecting the
air quality gains that have resulted from the use of oxygenated fuels.
To protect market opportunities for renewable fuels, the bill
establishes a renewable fuels standard for the nation's gasoline, which
begins in 2000 at 1.3 percent--roughly where renewable fuels production
stands today--and gradually increases over the next decade to 3.3
percent of the nation's gasoline in 2010. Considering the fact that
overall gasoline use is expected to increase over the next decade, this
standard will more than triple ethanol use over that period.
In meeting that requirement, our legislation stipulates that a gallon
of biomass ethanol counts as much as 1.5 gallons of starch-based
ethanol, thereby providing a strong incentive for the development of
biomass-based ethanol plans throughout the country. It also established
a renewable fuels standard for diesel fuels to promote the use of
biodiesel. These renewable fuels standards can be met through
nationwide credit trading, to allow for the most economomical use of
ethanol and biodiesel.
For those who are concerned about the potential impact of a drought
or other natural disaster on the ability of the renewable fuels
industry to supply this market, the legislation allows the EPA
Administrator, in consultation with the Secretary of Agriculture, to
waive the renewable requirement in any given year upon determination
that there is indequate domestic supply or distribution capacity, or
that the requirement would severely harm the economic or environment of
a State, a region, or the United States.
I also intend to work with my colleagues on both sides of the aisle
to establish a strategic corn reserve as a complement to the renewable
fuel standard. A properly managed strategic corn reserve could serve as
the equivalent of the strategic petroleum reserve and ensure stable
feedstocks for domestic ethanol producers in the event of weather
induced supply interruptions. Taxpayers would benefit as farmers could
receive fair market prices, thereby reducing the need for emergency
assistance each year.

It is important to recognize that under Senator Lugar's and my
approach, the oxygen requirement is not waived entirely. States can
decide for themselves whether to apply for a waiver from the RFG oxygen
requirement. We fully expect that RFG programs that currently are using
ethanol and have not experienced MTBE contamination, such as Chicago
and Milwaukee, will stay in the program. Moreover, the bill allows any
governor to apply to EPA to opt into the RFG program, thus expanding
its air quality benefits to new regions of the country. Those areas
that remain in the program or opt into it, and use ethanol, will
generate credits that can be sold to other regions of the country.
Finally, the bill prevents adverse effects on states' highway trust
fund tax allocations, with ``hold harmless'' language ensuring that
states reporting Federal excise tax receipts on gasoline are not
penalized for their ethanol blend sales.
Again, my goal in introducing this legislation is both to support
states that want to get MTBE out of gasoline and to ensure that this
effort does not adversely affect ethanol production. It is also to put
into place a program that will grow the ethanol industry steadily over
the next decade, thereby assuring the market stability necessary to
attract investment in the construction of new plants and significantly
increasing the market for corn and biomass. This approach not only will
get MTBE out of groundwater; it will do so without backsliding on the
air quality improvements generated by the RFG program while increasing
corn demand by 600 million bushels per year.
Mr. President, since first floating this concept in May of last year,
I have heard from numerous stakeholders in this complex debate. The
legislative concept that Senator Lugar and I unveil today has been
endorsed by diverse interests ranging from the American Coalition for
Ethanol (ACE) in Sioux Falls, South Dakota, to the 24-state Governors'
Ethanol Coalition, to the Northeast States for Coordinated Air Use
Management (NESCAUM) to Mr. Leo Leibowitz, chairman of Getty Petroleum.
I believe that we have struck a delicate balance between the interests
of farmers, consumers, state regulatory officials, refiners and those
concerned about the environment. This plan is a worthy successor to the
original 1990 RFG provision, preserving all of the good things it has
achieved and rectifying those elements that need fixing.
I look forward to working with Senators Smith and Baucus, the
chairman and ranking member of the Senate Environment and Public Works
Committee, to enact legislation resolving the MTBE issue. I hope that
other colleagues will join Senator Lugar and me in support of this
legislation.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2503

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Renewable Fuels Act of
2000''.

SEC. 2. STATE PETITIONS FOR AUTHORITY TO CONTROL OR PROHIBIT
USE OF MTBE.

Section 211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is
amended--
(1) in paragraph (1)(A), by striking ``any emission product
of such fuel or fuel additive causes, or contributes, to air
pollution which may reasonably be anticipated to endanger the
public health or welfare,'' and inserting ``the fuel or fuel
additive, or an emission product of the fuel or fuel
additive, causes or contributes to air, water, or soil
pollution that may reasonably be anticipated to endanger the
public health or welfare or the environment,'';
(2) in paragraph (2)(C), by inserting ``or have other
environmental impacts'' after ``emissions'';
(3) in paragraph (4)--
(A) in subparagraph (A), by redesignating clauses (i) and
(ii) as subclauses (I) and (II), respectively, and indenting
appropriately to reflect the amendments made by this
paragraph;
(B) by striking ``(4)(A) Except as otherwise provided in
subparagraph (B) or (C),'' and inserting the following:
``(4) Limitation on state authority with respect to fuels
and fuel additives.--
``(A) In general.--
``(i) Fuels and fuel additives.--Except as otherwise
provided in subparagraph (B) or (C) or paragraph (5),'';
(C) in subparagraph (A)--
(i) in clause (i) (as designated by subparagraph (B)), by
inserting ``or water or soil quality protection'' after
``emission control''; and
(ii) by adding at the end the following:
``(ii) MTBE.--Notwithstanding clause (i), except as
otherwise provided in subparagraph (B) or (C) or paragraph
(5), no State (or political subdivision of a State) may
prescribe or attempt to enforce, for the purpose of motor
vehicle emission control or water or soil quality protection,
any control or prohibition on methyl tertiary butyl ether as
a fuel additive in a motor vehicle or motor vehicle
engine.'';
(D) in subparagraph (B), by inserting ``or water or soil
quality protection'' after ``emission control''; and
(E) in subparagraph (C)--
(i) in the first sentence--

(I) by inserting ``or water or soil quality protection''
after ``emission control''; and
(II) by inserting before the period at the end the
following: ``or, if the Administrator grants a petition of
the State under paragraph (5)''; and

(ii) in the second sentence, by striking ``only if he'' and
inserting ``if the Administrator''; and
(4) by adding at the end the following:
``(5) State petitions for authority to control or prohibit
use of fuels or fuel additives for non-air quality
purposes.--
``(A) In general.--A State seeking to prescribe and enforce
a control or prohibition on a fuel or fuel additive for the
purpose of water or soil quality protection under paragraph
(4)(C) shall submit a petition to the Administrator for
authority to take such action.
``(B) Required elements of petition.--A petition submitted
under subparagraph (A) shall--
``(i) include information on--

``(I) the likely effects of the control or prohibition on
fuel availability and price in the affected supply area or
region; and
``(II) the improvements in environmental quality or public
health or welfare expected to result from the control or
prohibition; and

``(ii) demonstrate that the authority is necessary to
protect the environment or public health or welfare.

[[Page S3516]]

``(C) Action by the administrator.--Not later than 180 days
after the date of receipt of a petition submitted under
subparagraph (A), the Administrator shall grant or deny the
petition.
``(D) Criteria for granting of petitions.--The
Administrator shall grant a petition submitted by a State
under subparagraph (A) unless the Administrator finds that--
``(i) the petition fails to reasonably demonstrate that the
authority is necessary to protect the environment or public
health or welfare;
``(ii) the control or prohibition is likely to have a
substantial and significant adverse effect on fuel
availability or price (including a State or regional effect)
that clearly outweighs any benefits associated with the
control or prohibition; or
``(iii) in the case of a petition submitted by a State
seeking the authority primarily to protect water resources,
the State has failed to take other appropriate and reasonable
actions to prevent contamination of water resources by fuels
or fuel additives, such as--

``(I) adoption of a prohibition on the delivery of gasoline
to noncompliant facilities with underground storage tanks; or
``(II) operation of a statewide monitoring and compliance
assurance system.

``(E) Effect of failure of administrator to act.--If, by
the date that is 180 days after the date of receipt of a
petition submitted under subparagraph (A), the Administrator
has not proposed to grant or deny the petition under
subparagraph (C), the petition shall be deemed to be granted.
``(F) Procedural requirements.--
``(i) Inapplicability of certain requirements.--Section
307(d) of this Act and sections 553 through 557 of title 5,
United States Code, shall not apply to actions on a petition
submitted under subparagraph (A).
``(ii) Public notice and opportunity for comment.--The
Administrator shall provide public notice and opportunity for
comment with respect to a petition submitted under
subparagraph (A).
``(6) Limitation on mtbe content.--The Administrator shall
promulgate regulations applicable to each refiner, blender,
or importer of gasoline to ensure that gasoline sold or
introduced into commerce by the refiner, blender, or importer
on or after January 1, 2004, in an area has a content of
methyl tertiary butyl ether that is at a level that--
``(A) the Administrator determines may not reasonably be
anticipated to endanger natural resources and the public
health; and
``(B) does not exceed the annual average volume of methyl
tertiary butyl ether per gallon of gasoline used in the area
before 1995.''.

SEC. 3. WAIVER OF OXYGEN CONTENT REQUIREMENT.

(a) In General.--Section 211(k) of the Clean Air Act (42
U.S.C. 7545(k)) is amended--
(1) in paragraph (1)--
(A) by striking ``Within 1 year after the enactment of the
Clean Air Act Amendments of 1990,'' and inserting the
following:
``(A) In general.--Not later than November 15, 1991,'';
(B) in the first sentence, by inserting before the period
at the end the following: ``and opt-in areas under paragraph
(6)''; and
(C) by adding at the end the following:
``(B) Adjustment of voc performance standard.--
``(i) In general.--The Administrator may adjust the
volatile organic compounds performance standard promulgated
under subparagraph (A) in the case of a fuel formulation that
achieves reductions in the quantity of mass emissions of
carbon monoxide that are greater than or less than the
reductions associated with a reformulated gasoline that
contains 2.0 percent oxygen by weight and otherwise meets the
requirements of this subsection.
``(ii) Amount of adjustment.--The amount of an adjustment
under clause (i) shall be based on the effect on ozone
concentrations of the combined reductions in emissions of
volatile organic compounds and reductions in emissions of
carbon monoxide.'';
(2) in paragraph (2)--
(A) in subparagraph (B)--
(i) by striking ``The oxygen'' and inserting the following:
``(i) In general.--The oxygen''; and
(ii) by adding at the end the following:
``(ii) Waiver for certain states.--The Administrator shall
waive the application of clause (i) for any ozone
nonattainment area in a State if the Governor of the State
submits for such a waiver an application that--

``(I) demonstrates that the State is in full compliance
with Federal regulations concerning the control and
prevention of leaking underground storage tanks; or
``(II) provides a plan that outlines the measures the State
will take to fully comply with the underground storage tank
regulations by a date not later than 2 years after the
receipt of the application of the Governor.

``(iii) Effective date.--A waiver under clause (ii) shall
become effective on the later of--

``(I) January 1 of the calendar year immediately following
the calendar year during which the application for the waiver
is received; or
``(II) the date that is 180 days after the date on which
the application for the waiver is received.''; and

(B) by adding at the end the following:
``(E) Aromatics.--The aromatic hydrocarbon content of the
gasoline shall not exceed 22 percent by volume.'';
(3) in paragraph (3)--
(A) in subparagraph (A)(ii), by striking ``25 percent'' and
inserting ``22 percent''; and
(B) in subparagraph (B)--
(i) by striking ``Any reduction'' and inserting the
following:
``(iii) Treatment of greater reductions.--Any reduction'';
and
(ii) by adding at the end the following:
``(iv) Anti-backsliding provision.--

``(I) In general.--Not later than June 1, 2000, the
Administrator shall revise performance standards under this
subparagraph as necessary to ensure that--

``(aa) the ozone-forming potential, taking into account all
ozone precursors (including volatile organic compounds,
oxides of nitrogen, and carbon monoxide), of the aggregate
emissions during the high ozone season (as determined by the
Administrator) from baseline vehicles when using reformulated
gasoline does not exceed the ozone-forming potential of the
aggregate emissions during the high ozone season from
baseline vehicles when using reformulated gasoline that
complies with the regulations that were in effect on January
1, 2000, and were applicable to reformulated gasoline sold in
calendar year 2000 and subsequent calendar years; and
``(bb) the aggregate emissions of the pollutants specified
in subclause (II) from baseline vehicles when using
reformulated gasoline do not exceed the aggregate emissions
of those pollutants from baseline vehicles when using
reformulated gasoline that complies with the regulations that
were in effect on January 1, 2000, and were applicable to
reformulated gasolines sold in calendar year 2000 and
subsequent calendar years.

``(II) Specified pollutants.--The pollutants specified in
this subclause are--

``(aa) toxics, categorized by degrees of toxicity; and
``(bb) such other pollutants, including pollutants
regulated under section 108, and such precursors to those
pollutants, as the Administrator determines by regulation
should be controlled to prevent the deterioration of air
quality and to achieve attainment of a national ambient air
quality standard in 1 or more areas.''; and
(4) in paragraph (4)(B)--
(A) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively, and indenting appropriately to
reflect the amendments made by this paragraph;
(B) by striking ``The Administrator'' and inserting the
following:
``(i) In general.--The Administrator'';
(C) in clause (i) (as designated by subparagraph (B))--
(i) in subclause (I) (as redesignated by subparagraph (A)),
by striking ``, and'' and inserting a semicolon;
(ii) in subclause (II) (as redesignated by subparagraph
(A))--

(I) by striking ``achieve equivalent'' and inserting the
following: ``achieve--

``(aa) equivalent'';

(II) by striking the period at the end and inserting ``;
or''; and
(III) by adding at the end the following:

``(bb) combined reductions in emissions of ozone forming
volatile organic compounds and carbon monoxide that result in
a reduction in ozone concentration, as provided in clause
(ii)(I), that is equivalent to or greater than the reduction
in ozone concentration achieved by a reformulated gasoline
meeting the applicable requirements of paragraph (3); and'';
and
(iii) by adding at the end the following:

``(III) achieve equivalent or greater reductions in
emissions of toxic air pollutants than are achieved by a
reformulated gasoline meeting the applicable requirements of
paragraph (3).''; and

(D) by adding at the end the following:
``(ii) Carbon monoxide credit.--

``(I) In general.--In determining whether a fuel
formulation or slate of fuel formulations achieves combined
reductions in emissions of ozone forming volatile organic
compounds and carbon monoxide that result in a reduction in
ozone concentration that is equivalent to or greater than the
reduction in ozone concentration achieved by a reformulated
gasoline meeting the applicable requirements of paragraph
(3), the Administrator--

``(aa) shall consider, to the extent appropriate, the
change in carbon monoxide emissions from baseline vehicles
attributable to an oxygen content in the fuel formulation or
slate of fuel formulations that exceeds 2.0 percent by
weight; and
``(bb) may consider, to the extent appropriate, the change
in carbon monoxide emissions described in item (aa) from
vehicles other than baseline vehicles.

``(II) Oxygen credits.--Any excess oxygen content that is
taken into consideration in making a determination under
subclause (I) may not be used to generate credits under
paragraph (7)(A).
``(III) Relation to title i.--Any fuel formulation or slate
of fuel formulations that is certified as equivalent or
greater under this subparagraph, taking into consideration
the combined reductions in emissions of volatile organic
compounds and carbon monoxide, shall receive the same
volatile organic compounds reduction credit for the purposes
of subsections (b)(1) and (c)(2)(B) of section 182 as a fuel
meeting the applicable requirements of paragraph (3).''.

(b) Reformulated Gasoline Carbon Monoxide Reduction
Credit.--Section 182(c)(2)(B) of the Clean Air Act (42 U.S.C.

[[Page S3517]]

7511a(c)(2)(B)) is amended by adding at the end the
following: ``An adjustment to the volatile organic compound
emission reduction requirements under section
211(k)(3)(B)(iv) shall be credited toward the requirement for
VOC emissions reductions under this subparagraph.''.

SEC. 4. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE
PROGRAM.

Section 211(k)(6) of the Clean Air Act (42 U.S.C.
7545(k)(6)) is amended--
(1) by striking ``(6) Opt-in areas.--(A) Upon'' and
inserting the following:
``(6) Opt-in areas.--
``(A) Classified areas.--
``(i) In general.--Upon'';
(2) in subparagraph (B), by striking ``(B) If'' and
inserting the following:
``(ii) Effect of insufficient domestic capacity to produce
reformulated gasoline.--If'';
(3) in subparagraph (A)(ii) (as so redesignated)--
(A) in the first sentence, by striking ``subparagraph (A)''
and inserting ``clause (i)''; and
(B) in the second sentence, by striking ``this paragraph''
and inserting ``this subparagraph''; and
(4) by adding at the end the following:
``(B) Nonclassified areas.--
``(i) In general.--Upon the application of the Governor of
a State, the Administrator shall apply the prohibition
specified in paragraph (5) in any area in the State that is
not a covered area or an area referred to in subparagraph
(A)(i).
``(ii) Publication of application.--As soon as practicable
after receipt of an application under clause (i), the
Administrator shall publish the application in the Federal
Register.''.

SEC. 5. RENEWABLE CONTENT OF GASOLINE AND OTHER MOTOR FUELS.

(a) In General.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) by redesignating subsection (o) as subsection (q); and
(2) by inserting after subsection (n) the following:
``(o) Renewable Content of Gasoline.--
``(1) In general.--
``(A) Regulations.--Not later than September 1, 2000, the
Administrator shall promulgate regulations applicable to each
refiner, blender, or importer of gasoline to ensure that
gasoline sold or introduced into commerce in the United
States by the refiner, blender, or importer complies with the
renewable content requirements of this subsection.
``(B) Renewable content requirements.--
``(i) In general.--All gasoline sold or introduced into
commerce in the United States by a refiner, blender, or
importer shall contain, on a quarterly average basis, a
quantity of fuel derived from a renewable source (including
biomass ethanol) that is not less than the applicable
percentage by volume for the quarter.
``(ii) Biomass ethanol.--For the purposes of clause (i), 1
gallon of biomass ethanol shall be considered to be the
equivalent of 1.5 gallons of fuel derived from a renewable
source.
``(iii) Applicable percentage.--For the purposes of clause
(i), the applicable percentage for a quarter of a calendar
year shall be determined in accordance with the following
table:

Applicable percentage of fuel derived from a renewable source:
`Calendar year:
2000.........................................................1.3 ....

2001.........................................................1.5 ....

2002.........................................................1.7 ....

2003.........................................................1.9 ....

2004.........................................................2.1 ....

2005.........................................................2.3 ....

2006.........................................................2.5 ....

2007.........................................................2.7 ....

2008.........................................................2.9 ....

2009.........................................................3.1 ....

2010 and thereafter..........................................3.3.....

``(C) Fuel derived from a renewable source.--For the
purposes of this subsection, a fuel shall be considered to be
derived from a renewable source if the fuel--
``(i) is produced from grain, starch, oilseeds, or other
biomass; and
``(ii) is used to replace or reduce the quantity of fossil
fuel present in a fuel mixture used to operate a motor
vehicle.
``(D) Biomass ethanol.--For the purposes of this
subsection, a fuel shall be considered to be biomass ethanol
if the fuel is ethanol derived from any lignocellulosic or
hemicellulosic matter that is available on a renewable or
recurring basis, including--
``(i) dedicated energy crops and trees;
``(ii) wood and wood residues;
``(iii) plants;
``(iv) grasses;
``(v) agricultural commodities and residues;
``(vi) fibers;
``(vii) animal wastes and other waste materials; and
``(viii) municipal solid waste.
``(E) Credit program.--
``(i) In general.--The regulations promulgated under this
subsection shall provide for the generation of an appropriate
amount of credits by a person that refines, blends, or
imports gasoline that contains, on a quarterly average basis,
a quantity of fuel derived from a renewable source or a
quantity of biomass ethanol that is greater than the quantity
required under subparagraph (B).
``(ii) Use of credits.--The regulations shall provide that
a person that generates the credits may use the credits, or
transfer all or a portion of the credits to another person,
for the purpose of complying with subparagraph (B).
``(2) Waivers.--
``(A) In general.--The Administrator, in consultation with
the Secretary of Agriculture, may waive the requirements of
paragraph (1)(B) in whole or in part on petition by a State--
``(i) based on a determination by the Administrator, after
public notice and opportunity for comment, that
implementation of the requirements would severely harm the
economy or environment of a State, a region, or the United
States; or
``(ii) based on a determination by the Administrator, after
public notice and opportunity for comment, that there is an
inadequate domestic supply or distribution capacity to meet
the requirements of paragraph (1)(B).
``(B) Petitions for waivers.--The Administrator, in
consultation with the Secretary of Agriculture--
``(i) shall approve or deny a State petition for a waiver
of the requirements of paragraph (1)(B) within 180 days after
the date on which the petition is received; but
``(ii) may extend that period for up to 60 additional days
to provide for public notice and opportunity for comment and
for consideration of the comments submitted.
``(C) Termination of waivers.--A waiver granted under
subparagraph (A) shall terminate after 1 year, but may be
renewed by the Administrator after consultation with the
Secretary of Agriculture.
``(D) Oxygen content waivers.--The grant or denial of a
waiver under subsection (k)(2)(B) shall not affect the
requirements of this subsection.
``(3) Small refiners.--The regulations promulgated by the
Administrator under paragraph (1) may provide an exemption,
in whole or in part, for small refiners (as defined by the
Administrator).
``(4) Guidance for labeling.--After consultation with the
Secretary of Agriculture, the Administrator shall issue
guidance to the States for labeling, at the point of retail
sale--
``(A) the fuel derived from a renewable source that is
contained in the fuel sold; and
``(B) the major fuel additive components of the fuel sold.
``(5) Reports to congress.--Not less often than every 3
years, the Administrator shall submit to Congress a report
on--
``(A) reductions in emissions of criteria air pollutants
listed under section 108 that result from implementation of
this subsection; and
``(B) in consultation with the Secretary of Energy,
greenhouse gas emission reductions that result from
implementation of this subsection.
``(p) Renewable Content of Diesel Fuel.--
``(1) In general.--Not later than September 1, 2000, the
Administrator, after consideration of applicable economic and
environmental factors, shall promulgate regulations
applicable to each refiner, blender, or importer of diesel
fuel to ensure that the diesel fuel sold or introduced into
commerce in the United States by the refiner, blender, or
importer complies with the renewable content requirements
established by the Administrator under this subsection.
``(2) Elements of program.--To the extent that the
Administrator determines it to be appropriate, the
Administrator shall by regulation establish a program for
diesel fuel that has renewable content requirements similar
to the requirements of the program for gasoline under
subsection (o) in order to ensure the use of biodiesel
fuel.''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean
Air Act (42 U.S.C. 7545(d)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``or (n)'' each
place it appears and inserting ``(n), or (o)''; and
(B) in the second sentence, by striking ``or (m)'' and
inserting ``(m), or (o)''; and
(2) in the first sentence of paragraph (2), by striking
``and (n)'' each place it appears and inserting ``(n), and
(o)''.
(c) Prevention of Effects on Highway Apportionments.--
(1) Surface transportation program.--Section 104(b)(3) of
title 23, United States Code, is amended by adding at the end
the following:
``(C) Determination of estimated tax payments.--For the
purpose of determining under subparagraph (A)(iii) the
estimated tax payments attributable to highway users in a
State paid into the Highway Trust Fund (other than the Mass
Transit Account) in a fiscal year, the amount paid into the
Highway Trust Fund with respect to the sale of gasohol or
other fuels containing alcohol by reason of the tax imposed
by section 4041 (relating to special fuels) or 4081 (relating
to gasoline) of the Internal Revenue Code of 1986 shall be
treated as being equal to the amount that would have been so
imposed with respect to that sale without regard to the
reduction in revenues resulting from the application of the
regulations promulgated under section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)) and the following provisions of the
Internal Revenue Code of 1986:

[[Page S3518]]

``(i) Section 4041(b)(2) (relating to exemption for
qualified methanol and ethanol fuel).
``(ii) Section 4041(k) (relating to fuels containing
alcohol).
``(iii) Section 4041(m) (relating to certain alcohol
fuels).
``(iv) Section 4081(c) (relating to reduced rate on
gasoline mixed with alcohol).''.
(2) Minimum guarantee.--Section 105(f)(1) of title 23,
United States Code, is amended--
(A) by striking ``(1) In general.--Before'' and inserting
the following: ``(1) In general.--
``(A) Adjustment.--Before''; and
(B) by adding at the end the following:
``(B) Determination of estimated tax payments.--For the
purpose of determining under this subsection the estimated
tax payments attributable to highway users in a State paid
into the Highway Trust Fund (other than the Mass Transit
Account) in a fiscal year, the amount paid into the Highway
Trust Fund with respect to the sale of gasohol or other fuels
containing alcohol by reason of the tax imposed by section
4041 (relating to special fuels) or 4081 (relating to
gasoline) of the Internal Revenue Code of 1986 shall be
treated as being equal to the amount that would have been so
imposed with respect to that sale without regard to the
reduction in revenues resulting from the application of the
regulations promulgated under section 211(o) of the Clean Air
Act (42 U.S.C. 7545(o)) and the following provisions of the
Internal Revenue Code of 1986:
``(i) Section 4041(b)(2) (relating to exemption for
qualified methanol and ethanol fuel).
``(ii) Section 4041(k) (relating to fuels containing
alcohol).
``(iii) Section 4041(m) (relating to certain alcohol
fuels).
``(iv) Section 4081(c) (relating to reduced rate on
gasoline mixed with alcohol).''.

SEC. 6. UPDATING OF BASELINE YEAR.

(a) In General.--Section 211(k) of the Clean Air Act (42
U.S.C. 7545(k)) is amended--
(1) in paragraph (8)--
(A) in subparagraph (A)--
(i) in the first sentence, by striking ``Within 1 year
after the enactment of the Clean Air Act Amendments of 1990,
the'' and inserting ``The''; and
(ii) by striking the second sentence;
(B) by striking ``calendar year 1990'' each place it
appears and inserting ``calendar year 1999''; and
(C) in subparagraph (E), by striking ``such 1990 gasoline''
and inserting ``such 1999 gasoline''; and
(2) in subparagraphs (A) and (B)(ii) of paragraph (10), by
striking ``1990'' each place it appears and inserting
``1999''.
(b) Regulations.--As soon as practicable after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall revise the regulations promulgated
under section 211(k) of the Clean Air Act (42 U.S.C. 7545(k))
to reflect the amendments made by subsection (a).

SEC. 7. LEAKING UNDERGROUND STORAGE TANKS.

(a) Trust Fund Distribution.--Section 9004 of the Solid
Waste Disposal Act (42 U.S.C. 6991c) is amended by adding at
the end the following:
``(f) Trust Fund Distribution.--
``(1) In general.--
``(A) Amount and permitted use of distribution.--The
Administrator shall distribute to States at least 85 percent
of the funds appropriated to the Environmental Protection
Agency from the Leaking Underground Storage Tank Trust Fund
established by section 9508 of the Internal Revenue Code of
1986 (referred to in this subsection as the `Trust Fund') for
each fiscal year for use in paying the reasonable costs,
incurred under cooperative agreements with States, of--
``(i) actions taken by a State under section 9003(h)(7)(A);
``(ii) necessary administrative expenses directly related
to corrective action and compensation programs under
subsection (c)(1);
``(iii) enforcement by a State or local government of a
State program approved under this section or of State or
local requirements regulating underground storage tanks that
are similar or identical to this subtitle;
``(iv) State or local corrective actions pursuant to
regulations promulgated under section 9003(c)(4); or
``(v) corrective action and compensation programs under
subsection (c)(1) for releases from underground storage tanks
regulated under this subtitle if, as determined by the State
in accordance with guidelines developed between the
Environmental Protection Agency and the States, the financial
resources of an owner or operator (including resources
provided by programs under subsection (c)(1)) are not
adequate to pay for the cost of a corrective action without
significantly impairing the ability of the owner or operator
to continue in business.
``(B) Nonpermitted uses.--Funds provided by the
Administrator under subparagraph (A) shall not be used by a
State to provide financial assistance to an owner or operator
to meet the requirements concerning underground storage tanks
contained in part 280 of title 40, Code of Federal
Regulations (as in effect on the date of enactment of this
subsection), except as provided in subparagraph (A)(v), or
similar requirements in State programs approved under this
section or similar State or local provisions.
``(C) Tanks within tribal jurisdiction.--The Administrator,
in coordination with Indian tribes, shall--
``(i) expeditiously develop and implement a strategy to--

``(I) take necessary corrective action in response to
releases from leaking underground storage tanks located
wholly within the exterior boundaries of an Indian
reservation or other area within the jurisdiction of an
Indian tribe, giving priority to releases that present the
greatest threat to human health or the environment; and
``(II) implement and enforce requirements regulating
underground storage tanks located wholly within the exterior
boundaries of an Indian reservation or other area within the
jurisdiction of an Indian tribe; and

``(ii) not later than 2 years after the date of enactment
of this subsection, and every 2 years thereafter, submit to
Congress a report summarizing the status of implementation of
the leaking underground storage tank program located wholly
within the exterior boundaries of an Indian reservation or
other area within the jurisdiction of an Indian tribe.
``(2) Allocation.--
``(A) Process.--Subject to subparagraph (B), in the case of
a State with which the Administrator has entered into a
cooperative agreement under section 9003(h)(7)(A), the
Administrator shall distribute funds from the Trust Fund to
the State using the allocation process developed by the
Administrator for such cooperative agreements.
``(B) Revisions to process.--The Administrator may revise
the allocation process only after--
``(i) consulting with State agencies responsible for
overseeing corrective action for releases from underground
storage tanks and with representatives of owners and
operators; and
``(ii) taking into consideration, at a minimum--

``(I) the total revenue received from each State into the
Trust Fund;
``(II) the number of confirmed releases from leaking
underground storage tanks in each State;
``(III) the number of notified petroleum storage tanks in
each State;
``(IV) the percentage of the population of each State using
ground water for any beneficial purpose;
``(V) the evaluation of the program performance of each
State;
``(VI) the evaluation of the financial needs of each State;
and
``(VII) the evaluation of the ability of each State to use
the funds in any year.

``(3) Distributions to state agencies.--
``(A) In general.--Distributions from the Trust Fund under
this subsection shall be made directly to the State agency
entering into a cooperative agreement or enforcing the State
program.
``(B) Administrative expenses.--A State agency that
receives funds under this subsection shall limit the
proportion of those funds that are used to pay administrative
expenses to a percentage that the State may establish by law.
``(4) Cost recovery prohibition.--Funds provided to States
from the Trust Fund to owners or operators for programs under
section 9004(c)(1) for releases from underground storage
tanks are not subject to cost recovery by the Administrator
under section 9003(h)(6).
``(5) Permitted uses.--In addition to uses authorized by
other provisions of this subtitle, the Administrator may use
funds appropriated to the Environmental Protection Agency
from the Trust Fund for enforcement of any regulation
promulgated by the Administrator under this subtitle.''.
(b) Addition to Trust Fund Purposes.--Section 9508(c)(1) of
the Internal Revenue Code of 1986 (relating to expenditures)
is amended by striking ``to carry out section 9003(h)'' and
all that follows and inserting ``to carry out--
``(A) section 9003(h) of the Solid Waste Disposal Act (as
in effect on the date of enactment of the Superfund
Amendments and Reauthorization Act of 1986); and
``(B) section 9004(f) of the Solid Waste Disposal Act (as
in effect on the date of enactment of the Renewable Fuels Act
of 2000).''.
(c) Studies.--Not later than 18 months after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall conduct--
(1) a study to determine the corrosive effects of methyl
tertiary butyl ether and other widely used fuels and fuel
additives on underground storage tanks; and
(2) a study to assess the potential public health and
environmental risks associated with the use of aboveground
storage tanks and the effectiveness of State and Federal
regulations or voluntary standards, in existence as of the
time of the study, to provide adequate protection of public
health and the environment.
(d) Technical Amendments.--
(1) Section 9001(3)(A) of the Solid Waste Disposal Act (42
U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and
inserting ``substances''.
(2) Section 9003(f)(1) of the Solid Waste Disposal Act (42
U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c)
and (d) of this section'' and inserting ``subsections (c) and
(d)''.
(3) Section 9004(a) of the Solid Waste Disposal Act (42
U.S.C. 6991c(a)) is amended in the first sentence by striking
``referred to'' and all that follows and inserting ``referred
to in subparagraph (A) or (B), or both, of section
9001(2).''.
(4) Section 9005 of the Solid Waste Disposal Act (42 U.S.C.
6991d) is amended--

[[Page S3519]]

(A) in subsection (a), by striking ``study taking'' and
inserting ``study, taking'';
(B) in subsection (b)(1), by striking ``relevent'' and
inserting ``relevant''; and
(C) in subsection (b)(4), by striking ``Evironmental'' and
inserting ``Environmental''.

SEC. 8. PRIVATE WELL PROTECTION PILOT PROGRAM.

(a) In General.--The Administrator of the Environmental
Protection Agency may enter into cooperative agreements with
the United States Geological Survey, the Department of
Agriculture, States, local governments, private landowners,
and other interested parties to establish voluntary pilot
projects to protect the water quality of private wells and to
provide technical assistance to users of water from private
wells.
(b) Limitation.--This section does not authorize the
issuance of guidance or regulations regarding the use or
protection of private wells.

Mr. LUGAR. Mr. President, I am pleased to join Senator Daschle in
introducing the Renewable Fuels Act of 2000.
In July 1999, an independent Blue Ribbon Panel on Oxygenates in
Gasoline called for major reductions in the use of MTBE as an additive
in gasoline. They did so because of growing evidence and public
concerns regarding pollution of drinking water supplies by MTBE. These
trends are particularly acute in areas of the country using
Reformulated Gasoline.
The Reformulated Gasoline Program (RFG) has proven to be a success in
reducing smog and has exceeded expectations in reducing dangerous and
carcinogenic air toxics in gasoline. The second stage of the
Reformulated Gasoline Program (RFG) will commence this summer and will
have an even greater effect in reducing ozone pollution and air toxics.
Because of concerns regarding water pollution, it is clear that the
existing situation regarding MTBE is not tenable. The Governor of
California has called for a three year phase out of MTBE in California
and the California Air Resources Board has adopted regulations to that
effect. Environmental officials from eight Northeastern States have
proposed a phase down and a capping of the use of MTBE in gasoline in
their states. MTBE is being found in wells in the Midwest even in areas
that do not use reformulated gasoline.
The Renewable Fuels Act of 2000 will lead to about five billion
gallons of ethanol being produced in 2010 compared to one billion, six
hundred million gallons today. Under the Act, one gallon of cellulosic
ethanol will count for one and one-half gallons of regular ethanol in
determining whether a refiner has met the Renewable Fuels Standard in a
particular year.
We are going to have spikes in oil that will disrupt our economy. It
may or may not be able to be controlled. It will happen before 2010. It
may happen again next week. Our problem in terms of national security
and the security of our whole economy revolves around our dependence on
petroleum-based fuels. We must be able to address this challenge.
Finding an environmentally sensitive way to resolve the MTBE crisis is
an important part of this challenge.
It is clear that MTBE is on its way out. The question is what kind of
legislation is needed to facilitate its departure and whether that
legislation will be based on consideration of all of the environmental
and energy and national security issues involved.
The Renewable Fuels Act of 2000 will establish a nationwide Renewable
Fuels Standard (RFS) that would increase the current use of renewable
fuels from 1.3% in 2000 to 3.3% by 2010. Refiners who produced
renewable fuels beyond the standard could sell credits to other
refiners who chose to under comply with the RFS.
This bill would give the EPA Administrator authority to limit or
eliminate the use of MTBE in order to protect the public health and the
environment. It also gives states the ability to further regulate or
eliminate MTBE use if the EPA does not choose to eliminate it. It would
also establish strict ``anti backsliding provisions'' to capture all of
the air quality benefits of MTBE and ethanol as MTBE is phased down or
phased out.
The Renewable Fuels Act of 2000 will be good for our economy and our
environment. Most important of all, it will facilitate the development
of renewable fuels, a development critical to ensuring U.S. national
and economic security and stabilizing gas prices.
I hope that my colleagues will examine this bill as well as other
legislative approaches that would spur the development of renewable
fuels such as ethanol, whether derived from corn or other agricultural
or plant materials.
______

By Mr. JEFFORDS (for himself, Mr. Rockefeller, Mr. Grassley, Mr.
Breaux, Mr. Murkowski, Mr. Stevens, Mr. Bond, Mr. Inouye, Mr.
Harkin, Mr. Roberts, Mr. Thomas, Mr. Bingaman, Mr. Edwards, Mr.
Conrad, and Mr. Kerrey):
S. 2505. A bill to amend title XVIII of the Social Security Act to
provide increased assess to health care for medical beneficiaries
through telemedicine; to the Committee on Finance.

telehealth improvement and modernization act of 2000

Mr. JEFFORDS. Mr. President, today I am pleased to join with my good
friend Senator Rockefeller in introducing legislation that will improve
upon the federal rules for reimbursement for telemedicine and help to
ensure that all of our citizens have access to our great health care
system. We are joined by a broad, bipartisan group of senators in this
effort.

In many ways we have the best health care system in the world. But
increasingly fewer and fewer Americans actually have access to it. I
recently introduced a tax-credit bill that will help some of these
Americans and I anticipate supporting future measures aimed at
increasing access to health care services.
One important area that demands our attention is the problem of
access for rural Americans. More than 25 percent of our Nation's senior
citizens live in areas underserved for modern health care services. At
the same time, telemedicine has come of age. We have moved beyond the
feasibility stage and proven that this technology can provide real
benefits to people in rural and underserved regions of our country.
In my own State of Vermont, nearly 70 per cent live in rural areas.
This is the highest percentage rural population of any state in the
nation. In Vermont, specialists in more than twenty-five disciplines
from Fletcher Allen Health Care in Burlington are made readily
available to patients even in the most rural areas. I want to see this
level of service expand and be made available to all Americans.
We in Washington have made some good faith attempts to allow for the
development of telehealth technologies but we have fallen short. In an
effort to restrain the expansion of these programs, the Health Care
Financing Administration's interpretation of the laws and its
cumbersome rules for reimbursement have all but guaranteed the demise
of current programs.
Federally-funded telemedicine projects exist in almost every State in
the Nation. These projects have proven that cost-effective, high-
quality care can be delivered using this technology. The provisions in
this bill will help to ensure that this care will be continued when the
federal grants end.
Why is this legislation needed now? Because current HCFA regulations
concerning payment are unworkable in the real world. Less than 6
percent of all telemedicine doctor-patient visits last year provided to
Medicare beneficiaries would qualify for reimbursement under HCFA's
current guidelines.
Now that we have more experience and understand better how
telemedicine can be used, it is time to enact several changes to the
law so that these programs can thrive and deliver on their promise of
providing cost-effective, high-quality healthcare where it is needed
the most.
Rural healthcare providers and patients are eager for this
legislation. Norman Wright, President of the Vermont Association of
Hospitals and Health Systems, recognized the potential of Fletcher
Allen's telemedicine program by describing it as one that ``provides
incredible opportunities for rural providers and their patients because
it links them to a network with access to the region's best authorities
for any given condition.''

I have indeed heard an outpouring of support from healthcare
providers across my own State on this issue. Gerry Davis, Professor of
Pulmonary and Critical Care Medicine at Fletcher Allen Health Care,
described ``appropriate and fair third party payment for

[[Page S3520]]

telemedicine'' as ``essential in order to move this process beyond
education, and to make the service truly useful for patients in remote
locations.''
Telemedicine can be used in so many ways. It can be vital to a
pediatrician from a rural area with a sick baby who needs to consult
with a neonatologist from a tertiary care hospital in the dead of
winter and the middle of the night. It can be also be crucial for a
depressed senior citizen who desperately needs mental health services
available in their own rural county. And it can be much needed help for
a frustrated isolated primary care provider who longs to be able to
provide for access to specialty services for her patients in their own
community. All of these people need our help.
While the changes included in this bill are relatively minor in the
context of the Medicare program, the effect will be far-reaching. This
legislation will allow us to avoid arbitrarily denying access to health
care for our senior citizens and persons with disabilities just because
of where they live. It will allow for fair and reasonable reimbursement
for services that can be delivered appropriately in this way. It will
also encourage the incorporation of telehealth technology in the care
plans of home health agencies, an area that has already shown great
promise for the future in terms of cost-effective disease management.
In summary, it will allow us to begin to release the incredible
potential of telemedicine.
Mr. President, I urge my colleagues to join us in bringing HCFA's
approach to the delivery of health care into the 21st Century. Any
Medicare reform must include progress on telemedicine for our Nation's
rural areas.
Mr. ROCKEFELLER. Mr. President, I am extremely pleased to be here
today to introduce the Telemedicine Improvement and Modernization Act
with Senator Jeffords and many other of my Senate colleagues. This bill
incorporates two issues that I care about passionately--health care and
technology.
Telemedicine has the potential to bridge the gap that currently
exists between patients and providers. More than 25% of our Nation's
senior citizens live in areas where speciality care may not be
available. In states like my own where there are very few primary care
or specialty care resources and travel is difficult, telemedicine is
critical to ensuring that people in remote areas are getting health
care they need. By expanding access to health care through
telemedicine, we also improve the quality of care available to people
living in underserved areas. Personally, I believe that we are just
beginning to tap the enormous potential of technology to advance
quality health care, especially in rural areas.
Yet, Medicare's telemedicine program is inefficient in its current
form. These inefficiencies threaten the future of telemedicine
services. When we first created this program, our knowledge of the
potential of this new technology, or its practical applications was
very limited. Today we have a much better understanding of how
telemedicine actually works. With this new knowledge, we can repair the
inefficiencies of the current system and encourage the use of this
highly effective health practice. By accomplishing this goal, we can
ensure that quality health care is available to all seniors and
disabled Americans regardless of where they live.
There are 8 main elements of the bill:
(1) Eliminating the provider ``fee sharing'' requirement;
(2) Eliminating the requirement for a ``telepresenter'';
(3) Allowing limited reimbursement for referring clinics to recover
the cost of their services;
(4) Expanding telemedicine services to all non-MSAs;
(5) Expanding telemedicine services to direct patient care, not just
professional consultations;
(6) Making all providers eligible for HCFA reimbursement for services
delivered via telemedicine;
(7) Creating a federal demonstration project that permits
telemedicine reimbursement for ``store and forward'' consultations
(i.e., x-rays that are sent to another facility for consultation); and
(8) Permitting telehomecare.
While these changes are relatively minor in the context of the
Medicare program, the affect will be far-reaching. The modernizations
we are proposing will dramatically improve access to quality health
care in rural areas. This legislation will allow us to begin to release
the incredible potential of telemedicine.
On a final note, I'd like to thank Karen Edison for her expertise and
determination in working on this bill. Because Karen is a practicing
telemedicine physician, she has been invaluable in developing and
advancing this cause.
Thank you, Mr. President for your time today. I hope all of my
colleagues will join with me in passing this important piece of
legislation.
______

By Mr. GORTON:
S. 2506. A bill to amend title 46, United States Code, with respect
to the Federal preemption of State law concerning the regulation of
marine and ocean navigation, safety, and transportation by States; to
the Committee on Commerce, Science, and Transportation.

legislation regarding marine and ocean navigation, safety, and
transportation

Mr. GORTON. Mr. President, environmental protection and states'
rights were dealt a blow on March 6th, when the U.S. Supreme Court
decided the case of United States vs. Locke. The Court, noting that
even though federal and international laws ``may be insufficient
protection,'' invalidated Washington laws, and potentially laws in
eleven other states, that provide protections against spills by oil
tankers. I disagree with the Court's decision, because I believe that
Washington state should be allowed to protect its shores as it sees
fit.
That is why, today I am pleased to introduce the ``States Prevention
of Oil Tanker Spills Act'' (SPOTS)-legislation that will reinstate the
right of all states to adopt additional standards beyond existing
federal requirements governing the operation, maintenance, equipment,
personnel and manning of oil tankers. While this legislation will apply
to all shoreline states, it is particularly important to Washington.
Washington has always taken seriously its duty to protect the health
and safety of its citizens, and has historically supported aggressive
protections of its treasured natural resources, including Washington
shorelines and waterways. Oil refineries and product terminals located
in Cherry Point, Ferndale, Tacoma, Anacortes, and nearby Vancouver,
British Columbia make Washington an international destination and
shipping point for millions of tons of oil annually. A large volume of
crude oil is transported to and from the state near heavily populated
Puget Sound.
The frequent traffic of large vessels carrying vast amounts of oil
increases the risks to the environment and public safety, and
unfortunately, has resulted in devastating spills. The 1989 Exxon
Valdez disaster was one of the most environmentally devastating in
United States history. The huge oil tanker ran aground in Prince
William Sound, Alaska, dumping 11 million gallons of crude oil into the
Pacific Ocean, and damaging more than 1,000 miles of coastline in
south-central Alaska. The massive spill resulted in billions of dollars
in damage claims by over 40,000 people, including some 6,500 Washington
fishermen who have yet to be compensated for their loss.
Incidents such as the Valdez disaster served as a catalyst for
Washington and many other ocean shoreline states--as well as Congress--
to enact laws to prevent similar catastrophic events. Congress passed
the Oil Pollution Act of 1990. Washington passed its own legislation in
1994, which created the state Office of Marine Safety and directed the
establishment of prevention plans for ``the best achievable
protection'' from the damage caused by oil spills.
Washington's law enhanced, or added a number of requirements to, the
federal law. For example, instead of merely requiring tanker crews to
``clearly understand English,'' as federal law prescribes, the state
regulation required tanker crews to be proficient in English in order
to prevent miscommunication between American navigators and foreign
crews. To heighten safety protection in times of limited visibility due
to fog or other inclement weather conditions common to the Puget Sound,
the state also added a requirement that a tanker

[[Page S3521]]

have on its bridge at least three licensed officers, a helmsman, and a
lookout. Among other requirements adopted by Washington are
prescriptions regarding training, location plotting, pre-arrival tests,
and drug testing for tanker crews.
While federal law governs the design and construction of tankers, as
well as issues affecting Coast Guard and national security, I believe
that states should have the right to enact additional regulations that
they believe will enhance the safety of their citizens and
natural resources. Twenty states' Attorneys General signed an amicus
brief in United States vs. Locke, agreeing with Washington on this
point.

Unfortunately, the International Association of Independent Tanker
Owners, (``INTERTANKO''), a group of companies that own or operate more
than 2,000 tankers in the United States and foreign nations, does not
agree with this common sense proposition. Shortly after Washington's
oil tanker law was enacted. INTERTANKO filed a lawsuit to overturn it.
A federal district court ruled in Washington's favor, but the
Administration voluntarily intervened in the oil tanker companies'
appeal, and the U.S. Supreme Court held that the Coast Guard's weaker
regulations superseded the state's requirements on oil tankers.
Some have suggested that additional state regulation would interfere
with the federal government's relations with foreign governments. In my
view, allowing states to add common sense safety measures would have
little, if any, impact on foreign relations. It would, however, enhance
environmental protection.
This legislation won't eliminate all oil spills. I believe, however,
that it will help to prevent some. Laws protecting our shores from
dangerous oil spills should not be brought to the lowest common
denominator. Rather, allowing states to enhance federal laws where
appropriate, will ensure an even greater level of protection for our
citizens and resources in the future. I urge my colleagues to support
this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2506

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

SECTION 1. STANDARDS.

Section 3703 of title 46, United States Code, is amended by
adding at the end thereof the following:
``(d) Preservation of State Authority.--Nothing in this
chapter, or any other provision of law, preempts the
authority of a State to adopt additional standards regarding
maintenance, operation, equipping, personnel qualification,
or manning of vessels to which the regulations under
subsection (a) apply.''.
______

By Mr. CAMPBELL (for himself and Mr. Allard):

S. 2508. A bill to amend the Colorado Ute Indian Water Rights
Settlement Act of 1988 to provide for a final settlement of the claims
of the Colorado Ute Indian Tribes, and for other purposes.

COLORADO UTE SETTLEMENT ACT AMENDMENTS OF 2000

Mr. CAMPBELL. Mr. President, today I introduce The Colorado Ute
Settlement Act Amendment of 2000, and take this opportunity to address
promises broken, and the opportunity for this nation to finally keep
the promises it made to the Southern and Ute Mountain Ute Indian tribes
of Southern Colorado (Ute tribes). If we can find the resolve to get
this done, we will have--for the first time--honored a treaty with an
Indian tribe.
I am pleased to have my friend and colleague from Colorado, Senator
Wayne Allard, join me as an original cosponsor of this bill.
In the 1860's the United States promised the Ute tribes it would
provide a permanent homeland for their people in the southwest. The
water rights for that homeland remain senior over all others. Over a
hundred years later, the tribes' water is being used by their
neighbors. Our promise to the tribes gave them, the state, local water
users, and the United States the choice of fighting for the water in
court or negotiating and producing an enforceable agreement that all
the parties can live with.
I am proud to have been a part of the effort over the past 12 years
that resulted in an agreement to finally settle the tribal water rights
claims, and provide water--not promises or financial compensation--for
all involved. But, this fight is not a new one. The legal wrangling
over the Ute Indian water rights was already over a decade old when the
settlement was reached in 1986. Two years later Congress enacted the
Colorado Ute Indian Water Rights Settlement Act of 1988. The Settlement
Act promised the Ute tribes an adequate water supply to fulfill all of
the promises made to them in the 1860's for a homeland and an adequate
water supply. The Settlement Act promised; if the Ute tribes would give
up their claims to the water under their treaties, we would provide
them with an adequate alternative water supply.
As the chairman of the Senate Committee on Indian Affairs and as one
who has Indian blood coursing through my veins, I am reminded almost
every day of the promises and treaties that have been broken by the
United States. While we in the United States Congress are sometimes
unable to undo the results of this chain of shattered promises, we
should at least agree that we will not continue to ignore treaties with
any more American Indian tribes. The dismal truth is for the last ten
years I have watched those opposed to the Animas-La Plata project work
to prevent the federal government from fulfilling its commitment to the
Ute Indian tribes manipulating facts and the law in an effort to deny
our responsibilities as a nation. As a result we have squandered
decades of time and millions of taxpayers dollars in an effort to not
fulfill the promises made to the Ute tribes. I urge my colleagues to
bring this sorry trail of broken promises to an end.

I remain committed to keeping our word to the Tribes of Colorado.
Since the tribes have urged me to introduce this further A-LP
compromise legislation, I am persuaded that this proposal will not
violate the promises made to the tribes in 1988. However, if this bill
is not enacted, or the permanent opponents of the project are able to
further frustrate and delay the construction of the project, then this
bill will be another broken promise to another Indian tribe and I
refuse to be a part of that. Therefore, I have only introduced this
bill with the understanding that it will include provisions that
prevent needless delays.
I know there are people who will oppose any version of the Animas-La
Plata project. In fact some groups had already signed letters rejecting
the results of the draft supplemental environmental impact statement
before it was made public. In part, they criticized the Department of
Interior for prejudging the results of its analysis. I ask you, who is
doing the prejudging? There are those who will oppose the project even
if the final supplemental EIS reaches the same conclusion as the draft
EIS: that constructing the facilities described by this bill is the
least damaging way of fulfilling the federal government's promises to
the Ute tribes.
It is absurd to continue to negotiate with those prepared to oppose
any version of this project or to support efforts to continue to delay
our moral and legal obligation to the Tribes.
First, my bill recognizes that a great deal of environmental review
has already occurred, and that the facts have not changed, no matter
what version of this project is discussed. The Interior Secretary is to
continue his effort to produce a final supplemental EIS for the
project. However, this bill makes clear that if the Secretary
ultimately selects ``alternative #4,'' it will reflect that the
Congress will also have had the opportunity to review the same record,
and we concur with this judgment.

Similarly, the bill makes clear that if the U.S. Fish and Wildlife
Service determines that an annual diversion of 57,100 acre feet of
water can occur without jeopardizing the habitat of endangered fish not
known to be there, Congress concurs and believes that the project
should move forward, and allocate quantities of water in the manner
provided for in this bill. In short, this bill is the last, best chance
to keep the Tribes from suing the federal government and, in all
likelihood, prevail at an unknown cost to taxpayers.
For those who hope to wait even longer before proceeding with this

[[Page S3522]]

project, I will point out that as of January 1, 2000, federal law
authorized the Ute tribes to return to court to assert their claims for
the water already being used in southwestern Colorado. Perhaps they
should. In a demonstration of their good faith, the tribes have not yet
returned to court to assert their claims. But we only have a small
window of opportunity before the tribes must either assert their claims
or allow them to lapse.
At any time, the tribes could now choose to return to court. I am
determined to bring this matter before the Senate, one last time. We
cannot allow this bill to become another step in the long trail of
broken promises. We are a nation based on the respect for the law. Our
compassion, our limitless dedication to defending the truth, and our
history of preserving the dignity of even the least of us is well
documented. So, too, is our atrocious record of respect for the rights
and the most basic tenets of human dignity when it comes to the first
Americans on this continent.
I urge my colleagues to support this important legislation and ask
unanimous consent that the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2508

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

SECTION 1. SHORT TITLE; FINDINGS; DEFINITIONS.

(a) Short Title.--This Act may be cited as the ``Colorado
Ute Settlement Act Amendments of 2000''.
(b) Findings.--Congress makes the following findings:
(1) In order to provide for a full and final settlement of
the claims of the Colorado Ute Indian Tribes on the Animas
and La Plata Rivers, the Tribes, the State of Colorado, and
certain of the non-Indian parties to the Agreement have
proposed certain modifications to the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100-585; 102
Stat. 2973).
(2) The claims of the Colorado Ute Indian Tribes on all
rivers in Colorado other than the Animas and La Plata Rivers
have been settled in accordance with the provisions of the
Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100-585; 102 Stat. 2973).
(3) The Indian and non-Indian communities of southwest
Colorado and northwest New Mexico will be benefited by a
settlement of the tribal claims on the Animas and La Plata
Rivers that provides the Tribes with a firm water supply
without taking water away from existing uses.
(4) The Agreement contemplated a specific timetable for the
delivery of irrigation and municipal and industrial water and
other benefits to the Tribes from the Animas-La Plata
Project, which timetable has not been met. The provision of
irrigation water can not presently be satisfied under the
current implementation of the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.) and the Endangered Species Act
of 1973 (16 U.S.C. 1531 et seq.).
(5) In order to meet the requirements of the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.), and in
particular the various biological opinions issued by the Fish
and Wildlife Service, the amendments made by this Act are
needed to provide for a significant reduction in the
facilities and water supply contemplated under the Agreement.
(6) The substitute benefits provided to the Tribes under
the amendments made by this Act, including the waiver of
capital costs and the provisions of funds for natural
resource enhancement, result in a settlement that provides
the Tribes with benefits that are equivalent to those that
the Tribes would have received under the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100-585; 102
Stat. 2973).
(7) The requirement that the Secretary of the Interior
comply with the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.) and other national environmental laws
before implementing the proposed settlement will ensure that
the satisfaction of the tribal water rights is accomplished
in an environmentally responsible fashion.
(8) Federal courts have considered the nature and the
extent of Congressional participation when reviewing Federal
compliance with the requirements of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
(9) In considering the full range of alternatives for
satisfying the water rights claims of the Southern Ute Indian
Tribe and Ute Mountain Ute Indian Tribe, Congress has held
numerous legislative hearings and deliberations, and reviewed
the considerable record including the following documents:
(A) The Final EIS No. INT-FES-80-18, dated July 1, 1980.
(B) The Draft Supplement to the FES No. INT-DES-92-41,
dated October 13, 1992.
(C) The Final Supplemental to the FES No. 96-23, dated
April 26, 1996;
(D) The Draft Supplemental EIS, dated January 14, 2000.
(c) Definitions.--In this Act:
(1) Agreement.--The term ``Agreement'' has the meaning
given that term in section 3(1) of the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100-585; 102
Stat. 2973).
(2) Animas-la plata project.--The term ``Animas-La Plata
Project'' has the meaning given that term in section 3(2) of
the Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100-585; 102 Stat. 2973).
(3) Dolores project.--The term ``Dolores Project'' has the
meaning given that term in section 3(3) of the Colorado Ute
Indian Water Rights Settlement Act of 1988 (Public Law 100-
585; 102 Stat. 2974).
(4) Tribe; tribes.--The term ``tribe'' or ``tribes'' has
the meaning given that term in section 3(6) of the Colorado
Ute Indian Water Rights Settlement Act of 1988 (Public Law
100-585; 102 Stat. 2974).

SEC. 2. AMENDMENTS TO SECTION 6 OF THE COLORADO UTE INDIAN
WATER RIGHTS SETTLEMENT ACT OF 1988.

Subsection (a) of section 6 of the Colorado Ute Indian
Water Rights Settlement Act of 1988 (Public Law 100-585; 102
Stat. 2975) is amended to read as follows:
``(a) Reservoir; Municipal and Industrial Water.--
``(1) Facilities.--
``(A) In general.--After the date of enactment of this
subsection, but prior to January 1, 2005, the Secretary, in
order to settle the outstanding claims of the Tribes on the
Animas and La Plata Rivers, acting through the Bureau of
Reclamation, is specifically authorized to--
``(i) complete construction of, and operate and maintain, a
reservoir, a pumping plant, a reservoir inlet conduit, and
appurtenant facilities with sufficient capacity to divert and
store water from the Animas River to provide for an average
annual depletion of 57,100 acre-feet of water to be used for
a municipal and industrial water supply, which facilities
shall--

``(I) be designed and operated in accordance with the
hydrologic regime necessary for the recovery of the
endangered fish of the San Juan River as determined by the
San Juan River Recovery Implementation Program;
``(II) include an inactive pool of an appropriate size to
be determined by the Secretary following the completion of
required environmental compliance activities; and
``(III) include those recreation facilities determined to
be appropriate by agreement between the State of Colorado and
the Secretary that shall address the payment of any of the
costs of such facilities by the State of Colorado in addition
to the costs described in paragraph (3); and

``(ii) deliver, through the use of the project components
referred to in clause (i), municipal and industrial water
allocations--

``(I) with an average annual depletion not to exceed 16,525
acre-feet of water, to the Southern Ute Indian Tribe for its
present and future needs;
``(II) with an average annual depletion not to exceed
16,525 acre-feet of water, to the Ute Mountain Ute Indian
Tribe for its present and future needs;
``(III) with an average annual depletion not to exceed
2,340 acre-feet of water, to the Navajo Nation for its
present and future needs;
``(IV) with an average annual depletion not to exceed
10,400 acre-feet of water, to the San Juan Water Commission
for its present and future needs;
``(V) with an average annual depletion of an amount not to
exceed 2,600 acre-feet of water, to the Animas-La Plata
Conservancy District for its present and future needs;
``(VI) with an average annual depletion of an amount not to
exceed 5,230 acre-feet of water, to the State of Colorado for
its present and future needs; and
``(VII) with an average annual depletion of an amount not
to exceed 780 acre-feet of water, to the La Plata Conservancy
District of New Mexico for its present and future needs.

``(B) Applicability of other federal law.--The
responsibilities of the Secretary described in subparagraph
(A) are subject to the requirements of Federal laws related
to the protection of the environment and otherwise applicable
to the construction of the proposed facilities, including the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.), the Clean Water Act (42 U.S.C. 7401 et seq.), and the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.).
Nothing in this Act shall be construed to predetermine or
otherwise affect the outcome of any analysis conducted by the
Secretary or any other Federal official under applicable
laws.
``(C) Limitation.--
``(i) In general.--If constructed, the facilities described
in subparagraph (A) shall not be used in conjunction with any
other facility authorized as part of the Animas-La Plata
Project without express authorization from Congress.
``(ii) Contingency in application.--If the facilities
described in subparagraph (A) are not constructed and
operated, clause (i) shall not take effect.
``(2) Tribal construction costs.--Construction costs
allocable to the facilities that are required to deliver the
municipal and industrial water allocations described in
subclauses (I), (II) and (III) of paragraph (1)(A)(ii) shall
be nonreimbursable to the United States.
``(3) Nontribal water capital obligations.--Under the
provisions of section 9 of the Act of August 4, 1939 (43
U.S.C. 485h), the

[[Page S3523]]

nontribal municipal and industrial water capital repayment
obligations for the facilities described in paragraph
(1)(A)(i) may be satisfied upon the payment in full of the
nontribal water capital obligations prior to the initiation
of construction. The amount of the obligations described in
the preceding sentence shall be determined by agreement
between the Secretary of the Interior and the entity
responsible for such repayment as to the appropriate
reimbursable share of the construction costs allocated to
that entity's municipal water supply. Such agreement shall
take into account the fact that the construction of
facilities to provide irrigation water supplies from the
Animas-La Plata Project is not authorized under paragraph
(1)(A)(i) and no costs associated with the design or
development of such facilities, including costs associated
with environmental compliance, shall be allocable to the
municipal and industrial users of the facilities authorized
under such paragraph.
``(4) Tribal water allocations.--
``(A) In general.--With respect to municipal and industrial
water allocated to a Tribe from the Animas-La Plata Project
or the Dolores Project, until that water is first used by a
Tribe or used pursuant to a water use contract with the
Tribe, the Secretary shall pay the annual operation,
maintenance, and replacement costs allocable to that
municipal and industrial water allocation of the Tribe.
``(B) Treatment of costs.--A Tribe shall not be required to
reimburse the Secretary for the payment of any cost referred
to in subparagraph (A).
``(5) Repayment of pro rata share.--Upon a Tribe's first
use of an increment of a municipal and industrial water
allocation described in paragraph (4), or the Tribe's first
use of such water pursuant to the terms of a water use
contract--
``(A) repayment of that increment's pro rata share of those
allocable construction costs for the Dolores Project shall be
made by the Tribe; and
``(B) the Tribe shall bear a pro rata share of the
allocable annual operation, maintenance, and replacement
costs of the increment as referred to in paragraph (4).''.

SEC. 3. COMPLIANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT
OF 1969.

Section 6 of the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975)
is amended by adding at the end the following:
``(i) Compliance with the National Environmental Policy Act
of 1969.--
``(1) Authority.--Nothing in this Act shall be construed to
alter, amend, or modify the authority or discretion of the
Secretary or any other Federal official under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) or
any other Federal law.
``(2) Determination of congress.--Subject to paragraph (3),
in any defense to a challenge of the Final Environmental
Impact Statement prepared pursuant to the Notice of Intent to
Prepare a Draft Environmental Impact Statement, as published
in the Federal Register on January 4, 1999 (64 Fed Reg 176-
179), or the compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321 et seq.) or the Federal
Water Pollution Control Act (33 U.S.C. 1251 et seq.), and in
addition to the Record of Decision and any other documents or
materials submitted in defense of its decision, the United
States may assert in its defense that Congress, based upon
the deliberations and review described in paragraph (9) of
section 1(b) of the Colorado Ute Settlement Act Amendments of
2000, has determined that the alternative described in such
Final Statement meets the Federal government's water supply
obligations to the Ute tribes under this Act in a manner that
provides the most benefits to, and has the least impact on,
the quality of the human environment.
``(3) Application of provision.--This subsection shall only
apply if Alternative #4, as presented in the Draft
Supplemental Environmental Impact Statement dated January 14,
2000, or an alternative substantially similar to Alternative
#4, is selected by the Secretary.
``(4) No effect of modification of facilities.--The
application of this section shall not be affected by a
modification of the facilities described in subsection
(a)(1)(A)(i) to address the provisions in the San Juan River
Recovery Implementation Program.''.

SEC. 4. COMPLIANCE WITH THE ENDANGERED SPECIES ACT OF 1973.

Section 6 of the Colorado Ute Indian Water Rights
Settlement Act of 1988 (Public Law 100-585; 102 Stat. 2975),
as amended by section 3, is amended by adding at the end the
following:
``(j) Compliance With the Endangered Species Act of 1973.--
``(1) Authority.--Nothing in this section shall be
construed to alter, amend, or modify the authority or
discretion of the Secretary or any other Federal official
under the Endangered Species Act of 1973 (16 U.S.C. 1531 et
seq.) or any other Federal law.
``(2) Determination of congress.--Subject to paragraph (3),
in any defense to a challenge of the Biological Opinion
resulting from the Bureau of Reclamation Biological
Assessment, January 14, 2000, or the compliance with the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), and
in addition to the Record of Decision and any other documents
or materials submitted in defense of its decision, the United
States may assert in its defense that Congress, based on the
deliberations and review described in paragraph (9) of
section 1(b) of the Colorado Ute Settlement Act Amendments of
2000, has determined that constructing and operating the
facilities described in subsection (a)(1)(A)(i) meets the
Federal government's water supply obligation to the Ute
tribes under that Act without violating the Endangered
Species Act of 1973 (16 U.S.C. 1531 et seq.).
``(3) Application of provision.--This subsection shall only
apply if the Biological Opinion referred to in paragraph (2)
or any reasonable and prudent alternative suggested by the
Secretary pursuant to section 7 of the Endangered Species Act
of 1973 (16 U.S.C. 1536) authorizes an average annual
depletion of at least 57,100 acre feet of water.
``(4) No effect of modification of facilities.--The
application of this subsection shall not be affected by a
modification of the facilities described in subsection
(a)(1)(A)(i) to address the provisions in the San Juan River
Recovery Implementation Program.''.

SEC. 5. MISCELLANEOUS.

The Colorado Ute Indian Water Rights Settlement Act of 1988
(Public Law 100-585; 102 Stat. 2973) is amended by adding at
the end the following:

``SEC. 15. NEW MEXICO AND NAVAJO NATION WATER MATTERS.

``(a) Assignment of Water Permit.--Upon the request of the
State Engineer of the State of New Mexico, the Secretary
shall, in a manner consistent with applicable State law,
assign, without consideration, to the New Mexico Animas-La
Plata Project beneficiaries or the New Mexico Interstate
Stream Commission any portion of the Department of the
Interior's interest in New Mexico Engineer Permit Number
2883, dated May 1, 1956, in order to fulfill the New Mexico
purposes of the Animas-La Plata Project, so long as the
permit assignment does not affect the application of the
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) to
the use of the water involved.
``(b) Navajo Nation Municipal Pipeline.--The Secretary may
construct a water line to augment the existing system that
conveys the municipal water supplies, in an amount not less
than 4,680 acre-feet per year, of the Navajo Nation to the
Navajo Indian Reservation at Shiprock, New Mexico. The
Secretary shall comply with all applicable environmental laws
with respect to such water line. Construction costs allocated
to the Navajo Nation for such water line shall be
nonreimbursable to the United States.
``(c) Protection of Navajo Water Claims.--Nothing in this
Act shall be construed to quantify or otherwise adversely
affect the water rights and the claims of entitlement to
water of the Navajo Nation.

``SEC. 16. TRIBAL RESOURCE FUNDS.

``(a) Establishment.--
``(1) Authorization of appropriations.--There is authorized
to be appropriated to carry out this section, $20,000,000 for
fiscal year 2001 and $20,000,000 for fiscal year 2002. Not
later than 60 days after amounts are appropriated and
available to the Secretary for a fiscal year under this
paragraph, the Secretary shall make a payment to each of the
Tribal Resource Funds established under paragraph (2). Each
such payment shall be equal to 50 percent of the amount
appropriated for the fiscal year involved.
``(2) Funds.--The Secretary shall establish a--
``(A) Southern Ute Tribal Resource Fund; and
``(B) Ute Mountain Ute Tribal Resource Fund.
A separate account shall be maintained for each such Fund.
``(b) Adjustment.--To the extent that the amount
appropriated under subsection (a)(1) in any fiscal year is
less than the amount authorized for such fiscal year under
such subsection, the Secretary shall, subject to the
availability of appropriations, pay to each of the Tribal
Reserve Funds an adjustment amount equal to the interest
income, as determined by the Secretary in his or her sole
discretion, that would have been earned on the amount
authorized but not appropriated under such subsection had
that amount been placed in the Fund as required under such
subsection.
``(c) Tribal Development.--
``(1) Investment.--The Secretary shall, in the absence of
an approved tribal investment plan provided for under
paragraph (2), invest the amount in each Tribal Resource Fund
in accordance with the Act entitled, `An Act to authorize the
deposit and investment of Indian funds' approved June 24,
1938 (25 U.S.C. 162a). The Secretary shall disburse, at the
request of a Tribe, the principal and income in its Resource
Fund, or any part thereof, in accordance with a resource
acquisition and enhancement plan approved under paragraph
(3).
``(2) Investment plan.--
``(A) In general.--In lieu of the investment provided for
in paragraph (1), a Tribe may submit a tribal investment plan
applicable to all or part of the Tribe's Tribal Resource
Fund.
``(B) Approval.--Not later than 60 days after the date on
which an investment plan is submitted under subparagraph (A),
the Secretary shall approve such investment plan if the
Secretary finds that the plan is reasonable and sound. If the
Secretary does not approve such investment plan, the
Secretary shall set forth in writing and with particularity
the reasons for such disapproval. If such investment plan is
approved by the Secretary, the Tribal Resource Fund involved
shall be disbursed to the Tribe to be invested by the Tribe
in accordance with the approved investment plan.

[[Page S3524]]

``(C) Compliance.--The Secretary may take such steps as the
Secretary determines to be necessary to monitor the
compliance of a Tribe with an investment plan approved under
subparagraph (B). The United States shall not be responsible
for the review, approval, or audit of any individual
investment under the plan. The United States shall not be
directly or indirectly liable with respect to any such
investment, including any act or omission of the Tribe in
managing or investing such funds.
``(D) Economic development plan.--The principal and income
derived from tribal investments under an investment plan
approved under subparagraph (B) shall be subject to the
provisions of this section and shall be expended only in
accordance with an economic development plan approved under
paragraph (3).
``(3) Economic development plan.--
``(A) In general.--Each Tribe shall submit to the Secretary
a resource acquisition and enhancement plan for all or any
portion of its Tribal Resource Fund.
``(B) Approval.--Not later than 60 days after the date on
which a plan is submitted under subparagraph (A), the
Secretary shall approve such investment plan if the Secretary
finds that the plan is reasonably related to the protection,
acquisition, enhancement, or development of natural resources
for the benefit of the Tribe and its members. If the
Secretary does not approve such plan, the Secretary shall, at
the time of such determination, set forth in writing and with
particularity the reasons for such disapproval.
``(C) Modification.--Subject to the approval of the
Secretary, each Tribe may modify a plan approved under
subparagraph (B).
``(D) Liability.--The United States shall not be directly
or indirectly liable for any claim or cause of action arising
from the approval of a plan under this paragraph, or from the
use and expenditure by the Tribe of the principal or interest
of the Funds.
``(d) Limitation on Per Capita Distributions.--No part of
the principal contained in the Tribal Resource Fund, or of
the income accruing to such funds, or the revenue from any
water use contract, shall be distributed to any member of
either Tribe on a per capita basis.
``(e) Limitation on Setting Aside Final Consent Decree.--
Neither the Tribes nor the United States shall have the right
to set aside the final consent decree solely because the
requirements of subsection (c) are not complied with or
implemented.

``SEC. 17. COLORADO UTE SETTLEMENT FUND.

``(a) Establishment of Fund.--There is hereby established
within the Treasury of the United States a fund to be known
as the `Colorado Ute Settlement Fund.'
``(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Colorado Ute Settlement Fund such
funds as are necessary to complete the construction of the
facilities described in section 6(a)(1)(A) within 6 years of
the date of enactment of this section. Such funds are
authorized to be appropriated for each of the first 5 fiscal
years beginning with the first full fiscal year following the
date of enactment of this section.
``(c) Interest.--Amounts appropriated under subsection (b)
shall accrue interest, to be paid on the dates that are 1, 2,
3, 4, and 5 years after the date of enactment of this
section, at a rate to be determined by the Secretary of the
Treasury taking into consideration the average market yield
on outstanding Federal obligations of comparable maturity,
except that no such interest shall be paid during any period
where a binding final court order prevents construction of
the facilities described in section 6(a)(1)(A).

``SEC. 18. FINAL SETTLEMENT.

``(a) In General.--The construction of the facilities
described in section 6(a)(1)(A), the allocation of the water
supply from those facilities to the Tribes as described in
that section, and the provision of funds to the Tribes in
accordance with sections 16 and 17 shall constitute final
settlement of the tribal claims to water rights on the Animas
and La Plata Rivers in the State of Colorado.
``(b) Statutory Construction.--Nothing in this section
shall be construed to affect the right of the Tribes to water
rights on the streams and rivers described in the Agreement,
other than the Animas and La Plata Rivers, to receive the
amounts of water dedicated to tribal use under the Agreement,
or to acquire water rights under the laws of the State of
Colorado.
``(c) Action by the Attorney General.--The Attorney General
shall file with the District Court, Water Division Number 7,
of the State of Colorado, such instruments as may be
necessary to request the court to amend the final consent
decree to provide for the amendments made to this Act under
the Colorado Ute Indian Water Rights Settlement Act
Amendments of 2000.

``SEC. 19. STATUTORY CONSTRUCTION; TREATMENT OF CERTAIN
FUNDS.

``(a) In General.--Nothing in the amendments made by the
Colorado Ute Settlement Act Amendments of 2000 shall be
construed to affect the applicability of any provision of
this Act.
``(b) Treatment of Uncommitted Portion of Cost-Sharing
Obligation.--The uncommitted portion of the cost-sharing
obligation of the State of Colorado referred to in section
6(a)(3) shall be made available, upon the request of the
State of Colorado, to the State of Colorado after the date on
which payment is made of the amount specified in that
section.''.
______

By Mr. WYDEN:
S. 2509. A bill for the relief of Rose-Marie Barbeau-Quinn; to the
Committee on the Judiciary.

for the relief of rose-marie barbeau-quinn

<bullet> Mr. WYDEN. Mr. President, I am here today to introduce
legislation that will allow a valuable member of the Portland, Oregon,
community to become a permanent resident of the United States of
America. Rose-Marie Barbeau-Quinn, a native of Canada, has lived in
Portland since 1976. Together with her husband, Michael Quinn, she ran
the Vat and Tonsure Tavern, a unique and popular restaurant that was a
favorite of many of my constituents.
While Ms. Barbeau-Quinn and her husband, an American citizen, were
together for over 16 years, their marriage did not take place until
shortly before Michael's death in 1991. Since Rose-Marie and Michael
were not formally married for the two years required by immigration
law, and despite their 16 years together living as husband and wife,
Rose-Marie has not been able to file for permanent residency in this
country.
This legislation will correct their injustice, and allow Rose-Marie
to be a permanent resident of the country she loves and has called home
for over 20 years. I first learned of Ms. Barbeau-Quinn's situation
from Senator Hatfield when I joined the Senate in 1996. Senator
Hatfield championed her cause in the 104th Congress, and, as his
request and the request of many of my constituents, I am attempting to
complete the work that Senator Hatfield started. We both firmly believe
that Rose-Marie would be a model United States resident.
I urge my colleagues to support this legislation, so that Rose-Marie
Barbeau-Quinn can continue her place as a valuable member of our
community for many years to come.
I ask unanimous consent that the text of this bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2509

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

SECTION 1. PERMANENT RESIDENCE.

Notwithstanding any other provision of law, for purposes of
the Immigration and Nationality Act (8 U.S.C. 1101 et seq.),
Rose-Marie Barbeau-Quinn, shall be held and considered to
have been lawfully admitted to the United States for
permanent residence as of the date of the enactment of this
Act upon payment of the required visa fees.

SEC. 2. REDUCTION OF NUMBER OF AVAILABLE VISAS.

Upon the granting of permanent residence to Rose-Marie
Barbeau-Quinn, as provided in this Act, the Secretary of
State shall instruct the proper officer to reduce by the
appropriate number during the current fiscal year the total
number of immigrant visas available to natives of the country
of the alien's birth under section 203(a) of the Immigration
and Nationality Act (8 U.S.C. 1153(a)).<bullet>
______

By Mr. McCAIN (for himself, Mr. Moynihan, and Mr. Kerrey):
S. 2510. A bill to establish the Social Security Protection,
Preservation, and Reform Commission; to the Committee on Finance.

SOCIAL SECURITY PROTECTION, PRESERVATION, AND REFORM COMMISSION ACT OF
2000

<bullet> Mr. McCAIN. Mr. President, today I join with my friends and
colleagues, Senators Bob Kerrey and Pat Moynihan, to introduce a very
important bill that will serve as the catalyst for putting aside
partisan politics and beginning the process of protecting, preserving
and reforming the Social Security system.
Our bill establishes principles and a process for Social Security
reform. The bill sets forth broadly stated objectives for comprehensive
reform of the Social Security system that should be supported by every
one of us. It establishes a bipartisan Congressional Commission charged
with developing a reform plan consistent with those objectives. The
Commission is required to submit a detailed legislative proposal to
Congress by September 2001, and the bill includes a process for
expedited Congressional action on the Commission's recommendations by
the end of next year.
Mr. President, for far too long, Social Security has been used by
politicians

[[Page S3525]]

on both sides of the aisle to polarize, manipulate and scare American
voters. The mere mention of ``Social Security reform'' has become a
lightning rod for the fears of retirees and workers alike about their
financial futures.
Seniors, particularly low-income seniors, are vulnerable to
exaggerations and hyperbolic rhetoric about their retirement benefits.
They are often frightened into believing they will be homeless,
penniless and starving if Congress reforms Social Security. We all know
that is simply not true. The benefits seniors receive today are not the
issue--nobody wants to take them away. And it is disgraceful that some
would stoop so low as to play on the fears of older Americans.
The real issue driving Social Security reform--an issue that is only
frightening when left unresolved--is how to strengthen and protect the
system so that it is available for future retirees, without putting an
unfair financial burden on current and future workers. We have wasted
too much time on partisan politics when we should have been working
together to find a solution to the financial problems facing our
nation's retirement system. We can no longer afford to just spout
rhetoric about the need for reform, then deliberately avoid taking any
concrete action because of fears about how it may affect us in our next
election.
Social Security reform is not just a political problem; it is a
serious economic problem for millions of Americans who are counting on
a retirement system that is in dire financial straits. It's time to
step up to our common responsibilities, not as Republicans or
Democrats, but as servants of the American people.
That is why I have joined with Senator Kerrey and Senator Moynihan to
introduce this bill to require the Congress to act, and act soon, on
legislation to preserve, protect, and reform Social Security. As my
colleagues know, Bob Kerrey and Pat Moynihan have worked tirelessly for
many years to highlight the urgent need for reform of the Social
Security system, and they have succeeded in making the American people,
if not the Congress, recognize that reforming our nation's retirement
system must be a national priority.
Our bill sets out a timetable for action on Social Security reform by
the end of next year--November 2001.
First, the bipartisan, bicameral Social Security Protection,
Preservation, and Reform Commission must be appointed by February 1,
2001, and begin work within a month. The Commission will be made up of
12 Members of Congress, selected in equal numbers by the Party Leaders
in both Houses. In addition, the Commission of Social Security will
serve as an ex-officio, non-voting member.
The Commission is given a reasonable period of time--six months--to
conduct hearings, review the myriad of reform proposals already in the
public domain, and research new ideas to put together a comprehensive
reform plan that meets the objectives set out in this bill.
Those broadly stated objectives represent the most basic requirements
of meaningful Social Security reform:

Guaranteed 75-year solvency of the system;
Payment of all benefits to which retirees or workers are
entitled;
A reasonable rate of return on payroll tax contributions
for all generations;
An opportunity to participate in private investment
accounts;
A ``lockbox'' for the Social Security Trust Funds to
protect from spending raids; and
Use of non-Social Security surplus revenues to shore up the
system while implementing reform.

The Commission is required to submit its recommendations to Congress
in the form of a detailed legislative proposal by September 1, 2001,
and the bill's expedited procedures are designed to ensure a final vote
on Social Security reform by mid-November 2001. The strict time lines
in the bill are designed to ensure that this vitally important issue is
dealt with promptly--not pushed aside yet again, to be solved later.
Too often, election year politics stand as an obstacle to any
meaningful action in Congress. This proposal is carefully crafted to
avoid this. The bill is designed to ensure that Congress can complete
action on Social Security reform by the end of 2001, before being
consumed by the political sparring of an election year.
Mr. President, each year that reform of the Social Security system is
postponed, restoring solvency to the trust funds becomes more expensive
and places a greater financial burden on current and future workers.
This ``principles and process'' legislation is, we believe, the only
way to force Congress to pass a Social Security reform proposal that
will protect and preserve our nation's retirement system and also allow
more Americans to share in our nation's prosperity.

Mr. President, let me take a moment to comment on the objectives, or
principles, included in this bill. The objectives are intended as
minimum guidelines for the Commission's work, not as a comprehensive
blueprint for Social Security reform. We intentionally stated these
objectives as broadly as possible in order to give the Commission the
opportunity to develop a comprehensive plan without micro-managing
their every decision.
I believe very strongly that all promised benefits must be guaranteed
under any reform proposal, both for those currently receiving Social
Security benefits and those who are working and paying into Social
Security today. In addition, I will work to ensure that Social Security
reform does not unfairly burden today's workers by increasing payroll
taxes from their current levels. And I do not believe it would be fair
to further increase the eligibility age for receiving Social Security
benefits.
I am a strong proponent of allowing workers to invest a portion of
their payroll taxes in personal retirement accounts that will provide a
much greater return than the current Social Security system. This will
afford all Americans the opportunity to have greater personal wealth
creation in addition to a minimum Social Security benefit.
Mr. President, I was very disappointed that Vice President Gore is
continuing to use scare tactics about Social Security reform. Instead
of putting the retirement needs of all Americans ahead of politics, the
Vice President seems content to exacerbate the financial burden facing
our children and grandchildren by ignoring the real structural problems
of the program. By using politically intimidating rhetoric, the Vice
President is seriously harming bipartisan efforts in Congress to put
the needs of working Americans ahead of partisan politics.
Let's look at the facts. The savings rate in America today is
appallingly low. Many low-income families have no savings at all, and a
large number of middle-income Americans have less than $2,000 in the
bank.
Because of this low savings rate, many Americans rely heavily on
Social Security benefits for their retirement income. But economists
agree that the rate of return on Social Security payroll tax
contributions is abysmal--somewhere between 1 and 2 percent. Most
workers today are unaware that the payroll taxes they contribute to
Social Security may not provide anywhere near the income they expect
when they retire. In fact, if nothing is done to reform the Social
Security system, younger workers will receive nothing at all in return
for paying more than 6 percent of their earnings every pay day into the
Social Security system.
Allowing every worker to invest a portion of the payroll taxes they
already pay in a higher-yielding private account would make it possible
for families on very tight budgets to save more for their futures.

Even the most anemic savings account today realizes almost 3 percent,
and secure short-term certificates of deposit return almost 6 percent.
Over the past 50 years, the stock market has gained an average of more
than 6 percent per year, with 20 to 30 percent gains in several recent
years.
Proposals to allow every American to choose to invest a portion of
their Social Security payroll taxes in a low- to moderate-risk private
investment account are designed to give even the lowest-income families
the opportunity to share in our Nation's economic prosperity and create
wealth for themselves and their children.
In the long run, diverting a portion of payroll taxes to personal
retirement accounts will bring more money into the Social Security
system. In the short run, it will cost money. Using a significant
portion of the non-Social

[[Page S3526]]

Security surplus revenues to shore up the Social Security system will
ensure that current retirees receive their full benefits while reforms
are implemented. At the same time, reducing the financial insolvency of
the Social Security system through reform will also reduce our national
debt.
Mr. President, we all have opinions about how the Social Security
program should or could be reformed, and I will have more to say about
specific aspects of Social Security reform when I introduce a
comprehensive reform bill later this month. Every one of these ideas
deserves fair and full consideration as we work together to restore
solvency to our Nation's retirement system. It is clear that we need a
formal process and effective deadlines to review these ideas and
develop and pass a real, meaningful plan to reform Social Security.
That is exactly what this bill will achieve.
Mr. President, Social Security is a sacred compact with workers and
retirees that must be honored. The Congress has an obligation to
develop a real, meaningful reform plan that strengthens and protects
the Social Security program for our Nation's seniors without placing an
unfair burden on America's workers. And we must do it sooner rather
than later.
I urge my colleagues to put aside partisan politics and work with us
to get this process legislation passed and begin the business of
reforming Social Security now.
I ask unanimous consent that the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2510

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Social Security Protection,
Preservation, and Reform Commission Act of 2000''.

TITLE I--FINDINGS AND OBJECTIVES OF REFORM

SEC. 101. FINDINGS.

Congress makes the following findings:
(1) Two-thirds of Americans depend on social security for
half or more of their income and 47 percent of beneficiaries
would be in poverty without their social security benefits.
(2) Social security is an unbreakable compact between
workers and retirees across generations that must be honored
and needs to be sustained.
(3) The social security trust funds will begin to run a
cash-flow deficit in 2015 and trust fund assets are expected
to be exhausted by 2037.
(4) Americans covered by the social security program are
required to pay into a system from which they can expect
lower rates of return than earlier generations.
(5) Each year that comprehensive reform of the social
security system is postponed, restoring actuarial solvency to
the trust funds becomes more expensive and places a greater
financial burden on current and future workers.

SEC. 102. OBJECTIVES OF REFORM.

Congress must act to reform the social security system so
that--
(1) beneficiaries receive the benefits to which they are
entitled based on a fair and equitable reform of that system;
(2) the long-term solvency of the social security system is
guaranteed for at least 75 years without any foreseeable
funding shortfall immediately following that period and cash-
flow deficits and pressure on future general revenues to pay
benefits is significantly reduced;
(3) every generation of workers is guaranteed a reasonable
comparable rate of return on all tax contributions;
(4) all Americans, particularly low-income workers, are
provided the opportunity to share in our Nation's economic
prosperity and create wealth for themselves and future
generations through a private investment account under that
system;
(5) revenues flowing into the Federal Old-Age, Survivors,
and Disability Trust Funds are protected from congressional
or other efforts to spend on nonsocial security related
purposes; and
(6) resources are made available from surplus non-social
security revenues to preserve and protect the social security
system while implementing reform.

TITLE II--SOCIAL SECURITY REFORM COMMISSION

SEC. 201. ESTABLISHMENT OF COMMISSION.

There is established a commission to be known as the Social
Security Protection, Preservation, and Reform Commission (in
this title referred to as the ``Commission'').

SEC. 202. DUTIES.

(a) Recommendations for Reform.--Not later than September
1, 2001, the Commission shall make specific recommendations
to Congress for reform of the social security system
established under title II of the Social Security Act (42
U.S.C. 401 et seq.) in a manner that incorporates the
objectives of reform set forth in section 102.
(b) Legislative Language.--The recommendations required
under subsection (a) shall include legislative language
necessary for carrying out such recommendations. The
Commission shall develop such legislative language after
conducting such public hearings and consulting with such
public or private entities as the Commission considers
necessary and appropriate to make the recommendations
required under subsection (a).

SEC. 203. MEMBERSHIP.

(a) In General.--The Commission shall be composed of 13
members as follows:
(1) Two congressional Members shall be appointed by the
Speaker of the House of Representatives.
(2) Two congressional Members shall be appointed by the
Minority Leader of the House of Representatives.
(3) Two congressional Members shall be appointed by the
Majority Leader of the Senate.
(4) Two congressional Members shall be appointed by the
Minority Leader of the Senate.
(5) The Chairman of the Committee on Finance of the Senate.
(6) The Ranking Member of the Committee on Finance of the
Senate.
(7) The Chairman of the Committee on Ways and Means of the
House of Representatives.
(8) The Ranking Member of the Committee on Ways and Means
of the House of Representatives.
(10) The Commissioner of Social Security, who shall be an
ex officio member of the Commission.
(b) Deadline for Appointments.--The members of the
Commission shall be appointed not later than February 1,
2001.
(c) Co-Chairmen.--The Commission shall designate 2 members
of the Commission to serve as Co-chairmen of the Commission.
(d) Terms.--Each member of the Commission shall serve on
the Commission and, with respect to the Co-chairmen, in such
capacity, until the earlier of the date the Commission
terminates or September 16, 2001.
(e) Vacancies.--Any vacancy in the membership of the
Commission shall be filled in the manner in which the
original appointment was made and shall not affect the power
of the remaining members to execute the duties of the
Commission.

SEC. 204. QUORUM.

A quorum shall consist of 7 voting members of the
Commission.

SEC. 205. MEETINGS.

(a) In General.--The Commission shall meet at the call of
the Co-chairmen or a majority of its members.
(b) Initial Meeting.--The Commission shall conduct its
first meeting not later than March 1, 2001.
(c) Open Meetings.--Each meeting of the Commission, other
than meetings in which classified information is to be
discussed, shall be open to the public.

SEC. 206. POLICIES AND PROCEDURES.

The Commission shall establish policies and procedures for
carrying out the functions of the Commission under this Act.

SEC. 207. STAFF DIRECTOR AND STAFF.

(a) Staff Director.--The Co-chairmen, with the advice and
consent of the members of the Commission, shall appoint a
Staff Director who is not otherwise, and has not during the
1-year period preceding the date of such appointment served
as, an officer or employee in the executive branch and who is
not and has not been a Member of Congress. The Staff Director
shall be paid at a rate not to exceed the rate of basic pay
payable for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
(b) Staff.--
(1) In general.--The Staff Director, with the approval of
the Commission, may appoint and fix pay of additional
personnel. The Staff Director may take such appointments
without regard to the provisions of title 5, United States
Code, governing appointment in the competitive service, and
any personnel so appointed may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
such title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of the annual rate of basic pay payable
for level V of the Executive Schedule under section 5316 of
such title.
(2) Detailees.--
(A) In general.--Upon request of the Staff Director, the
head of any Federal department or agency may detail any of
the personnel of that department or agency to the Commission
to assist the Commission in carrying out its duties under
this Act. Not more than \1/3\ of the personnel employed by or
detailed to the Commission may be on detail from any Federal
agency.
(B) Additional restrictions.--
(i) Personnel.--Not more than \1/3\ of the personnel
detailed to the Commission may be on detail from any Federal
agency that deals directly or indirectly with the
administration of the social security system.
(ii) Analysts.--Not more than \1/5\ of the professional
analysts of the Commission may be individuals detailed from a
Federal agency that deals directly or indirectly with the
administration of the social security system.
(3) Experts and consultants.--The Commission may procure by
contract, to the extent funds are available, the temporary or
intermittent services of experts or consultants pursuant to
section 3109 of title 5, United States Code.

[[Page S3527]]

(4) Federal officer or employee.--No member of a Federal
agency, and no officer or employee of a Federal agency may--
(A) prepare any report concerning the effectiveness,
fitness, or efficiency of the performance on the staff of the
Commission of any individual detailed from a Federal agency
to that staff;
(B) review the preparation of such report; or
(C) approve or disapprove such a report.
(5) Limitation on staff size.--Not more than 25 individuals
(including any detailees) may serve on the staff of the
Commission at any time.

SEC. 208. POWERS.

(a) Hearings and Other Activities.--For the purpose of
carrying out its duties, the Commission may hold such
hearings and undertake such other activities as the
Commission determines to be necessary to carry out its
duties.
(b) Studies by General Accounting Office.--Upon the request
of the Commission, the Comptroller General shall conduct such
studies or investigations as the Commission determines to be
necessary to carry out its duties.
(c) Cost Estimates by Congressional Budget Office.--Upon
the request of the Commission, the Director of the
Congressional Budget Office shall provide to the Commission
such cost estimates as the Commission determines to be
necessary to carry out its duties.
(d) Technical Assistance.--Upon the request of the
Commission, the head of a Federal agency shall provide such
technical assistance to the Commission as the Commission
determines to be necessary to carry out its duties.
(e) Use of Mails.--The Commission may use the United States
mails in the same manner and under the same conditions as
Federal agencies, and shall, for purposes of the frank, be
considered a commission of Congress as described in section
3215 of title 39, United States Code.
(f) Obtaining Information.--The Commission may secure
directly from any Federal agency information necessary to
enable it to carry out its duties, if the information may be
disclosed under section 552 of title 5, United States Code.
Upon request of the Co-chairmen of the Commission, the head
of such agency shall furnish such information to the
Commission.
(g) Administrative Support Services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission on a reimbursable basis such
administrative support services as the Commission may
request.
(h) Acceptance of Donations.--The Commission may accept,
use, and dispose of gifts or donations of services or
property.
(i) Printing.--For purposes of costs relating to printing
and binding, including the costs of personnel detailed from
the Government Printing Office, the Commission shall be
deemed to be a committee of the Congress.

SEC. 209. TERMINATION.

The Commission shall terminate 15 days after the date of
submission of the recommendations for reform required under
section 202.

SEC. 210. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this
title, such sums as may be necessary for the Commission to
carry out its duties under this title.

TITLE III--CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS

SEC. 301. CONGRESSIONAL CONSIDERATION OF RECOMMENDATIONS.

(a) Introduction of Recommendations and Committee
Consideration.--
(1) Introduction.--The legislative language transmitted
pursuant to section 202(b) with the recommendations for
reform of the Commission shall be in the form of a bill (in
this title referred to as the ``reform bill''). Such reform
bill shall be introduced in the House of Representatives by
the Speaker, and in the Senate, by the Majority Leader,
immediately upon receipt of the language and such reform bill
shall be referred to the appropriate committee of Congress
under paragraph (2). If the reform bill is not introduced in
accordance with the preceding sentence, the reform bill may
be introduced in either House of Congress by any member
thereof.
(2) Committee consideration.--
(A) Referral.--A reform bill introduced in the House of
Representatives shall be referred to the Committee on Ways
and Means of the House of Representatives. A reform bill
introduced in the Senate shall be referred to the Committee
on Finance of the Senate.
(B) Reporting.--Not later than 30 days after the
introduction of the reform bill, the committee of Congress to
which the reform bill was referred shall report the bill or a
committee amendment thereto.
(C) Discharge of committee.--If the committee to which is
referred a reform bill has not reported such reform bill (or
an identical reform bill) at the end of 30 calendar days
after its introduction or at the end of the first day after
there has been reported to the House involved a reform bill,
whichever is earlier, such committee shall be deemed to be
discharged from further consideration of such reform bill and
such reform bill shall be placed on the appropriate calendar
of the House involved.
(b) Expedited Procedure.--
(1) Consideration.--
(A) In general.--Not later than 2 days after the date on
which a committee has been discharged from consideration of a
reform bill, the Speaker of the House of Representatives, or
the Speaker's designee, or the Majority Leader of the Senate,
or the Leader's designee, shall move to proceed to the
consideration of the committee amendment to the reform bill,
and if there is no such amendment, to the reform bill. It
shall also be in order for any member of the House of
Representatives or the Senate, respectively, to move to
proceed to the consideration of the reform bill at any time
after the conclusion of such 2-day period.
(B) Points of order waived.--All points of order against
the reform bill (and against consideration of the reform
bill) are waived.
(C) Motion to proceed.--A motion to proceed to the
consideration of the reform bill is highly privileged in the
House of Representatives and is privileged in the Senate and
is not debatable. The motion is not subject to amendment, to
a motion to postpone consideration of the reform bill, or to
a motion to proceed to the consideration of other business. A
motion to reconsider the vote by which the motion to proceed
is agreed to or not agreed to shall not be in order. If the
motion to proceed is agreed to, the House of Representatives
or the Senate, as the case may be, shall immediately proceed
to consideration of the reform bill without intervening
motion, order, or other business, and the reform bill shall
remain the unfinished business of the House of
Representatives or the Senate, as the case may be, until
disposed of.
(D) Limited debate.--Debate on the reform bill and on all
debatable motions and appeals in connection therewith shall
be limited to not more than the lesser of 100 hours or 14
days, which shall be divided equally between those favoring
and those opposing the reform bill. A motion further to limit
debate on the reform bill is in order and not debatable.
(E) Amendments.--
(i) In general.--Subject to clause (ii), amendments to the
reform bill--

(I) during consideration in the House of Representatives
shall be limited in accordance with a rule adopted by the
Committee on Rules of the House of Representatives; and
(II) during consideration in the Senate shall be limited
to--

(aa) one first degree amendment per member or that member's
designee with 1 hour of debate equally divided; and
(bb) germane second degree amendments (without limit) with
30 minutes of debate equally divided.
(ii) Leadership amendments.--The Speaker of the House of
Representatives and the Minority Leader of the House of
Representatives and the Majority Leader of the Senate and the
Minority Leader of the Senate may each offer 1 first degree
amendment (in addition to the amendments afforded such
members under clause (i)), with 4 hours of debate equally
divided on each such amendment offered. No second degree
amendments may be offered by the Speaker of the House of
Representatives, the Minority Leader of the House of
Representatives, the Majority Leader of the Senate, or the
Minority Leader of the Senate in their leadership capacities.
(F) Vote on final passage.--Immediately following the
conclusion of the debate on the reform bill, and on all
amendments offered to the reform bill, and all votes required
on amendments offered to the reform bill, the vote on final
passage of the reform bill shall occur.
(G) Other motions not in order.--A motion to postpone
consideration of the reform bill, a motion to proceed to the
consideration of other business, or a motion to recommit the
reform bill is not in order. A motion to reconsider the vote
by which the reform bill is agreed to or not agreed to is not
in order.
(H) Appeals.--Appeals from the decisions of the Chair
relating to the application of the rules of the House of
Representatives or of the Senate, as the case may be, to the
procedure relating to the reform bill shall be decided
without debate.
(2) Consideration by other house.--If, before the passage
by one House of the reform bill that was introduced in such
House, such House receives from the other House a reform bill
as passed by such other House--
(A) the reform bill of the other House shall not be
referred to a committee and may only be considered for final
passage in the House that receives it under subparagraph (C);
(B) the procedure in the House in receipt of the reform
bill of the other House, with respect to the reform bill that
was introduced in the House in receipt of the reform bill of
the other House, shall be the same as if no reform bill had
been received from the other House; and
(C) notwithstanding subparagraph (B), the vote on final
passage shall be on the reform bill of the other House.
Upon disposition of a reform bill that is received by one
House from the other House, it shall no longer be in order to
consider the reform bill that was introduced in the receiving
House.

(3) Consideration in conference.--
(A) Convening of conference.--
(i) In general.--Immediately upon a final passage of the
reform bill that results in a disagreement between the two
Houses of Congress with respect to the bill, the conferees
described in clause (ii) shall be appointed and a conference
convened.
(ii) Conferees described.--The conferees described in this
clause are the following:

[[Page S3528]]

(I) The Speaker of the House of Representatives.
(II) The Minority Leader of the House of Representatives.
(III) The Majority Leader of the Senate.
(IV) The Minority Leader of the Senate.
(V) Each member of the Committee on Ways and Means of the
House of Representatives.
(VI) Each member of the Committee on Finance of the Senate.

(B) Deadline for report.--Not later than 14 days after the
date on which conferees are appointed, the conferees shall
file a report with the House of Representatives and the
Senate resolving the differences between the Houses on the
reform bill.
(C) Limitation on scope.--A report filed under subparagraph
(B) shall be limited to resolution of the differences between
the Houses on the reform bill and shall not include any other
matter.
(D) House consideration.--
(i) In general.--Notwithstanding any other rule of the
House of Representatives, it shall be in order to immediately
consider a report of a committee of conference on the reform
bill filed in accordance with subparagraph (B).
(ii) Debate.--Debate in the House of Representatives on the
conference report shall be limited to the lesser of 50 hours
or 7 days, equally divided and controlled by the Speaker of
the House of Representative and the Minority Leader of the
House of Representatives or their designees.
(iii) Limitation on motions.--A motion to further limit
debate on the conference report is not debatable. A motion to
recommit the conference report is not in order, and it is not
in order to move to reconsider the vote by which the
conference report is agreed to or disagreed to.
(iv) Vote on final passage.--A vote on final passage of the
conference report shall occur immediately at the conclusion
or yielding back of all time for debate on the conference
report.
(E) Senate consideration.--
(i) In general.--The motion to proceed to consideration in
the Senate of the conference report shall not be debatable
and the reading of such conference report shall be deemed to
have been waived.
(ii) Debate.--Consideration in the Senate of the conference
report on a reform bill shall be limited to the lesser of 50
hours or 7 days, equally divided and controlled by the
Majority Leader and the Minority Leader or their designees.
(iii) Limitation on motion to recommit.--A motion to
recommit the conference report is not in order.
(4) Rules of the senate and house of representatives.--This
subsection is enacted by Congress--
(A) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and is deemed to
be part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed
in that House in the case of a bill, and it supersedes other
rules only to the extent that it is inconsistent with such
rules; and
(B) with full recognition of the constitutional right of
either House to change the rules (so far as they relate to
the procedure of that House) at any time, in the same manner,
and to the same extent as in the case of any other rule of
that House.<bullet>

Mr. KERREY. Mr. President, I am joined by my esteemed colleagues
Senator McCain and Senator Moynihan in introducing the Social Security
Protection, Preservation, and Reform Commission Act of 1990''. I am
honored to join these two distinguished colleagues in an effort to
create a bipartisan and bicameral Congressional Commission to reform
Social Security.
I am pleased to join Senator McCain in a serious effort to provoke
this body to move beyond demagoguery and toward action on the subject
of Social Security reform. Senator McCain has had the unique benefit of
spending the earlier part of this year talking to thousands of
constituents from across America about their hopes and concerns during
the course of his Presidential campaign. As Senator McCain has noted to
me, a great majority of these people expressed particular concern for
the future state of the Social Security program. Americans have intense
feelings of patriotism where Social Security is concerned--and strongly
support reworking and preserving this program for generations to come.
My friend's commitment to an honest debate and a reform agenda has
sparked the continued interest and attention of millions of Americans--
and his support of the Social Security reform cause makes the program's
eventual reform all the more likely.
I am also honored to be joining my dear friend Senator Daniel Patrick
Moynihan in introducing this legislation. Senator Moynihan has perhaps
the most distinguished record of accomplishment where Social Security
is concerned of anyone in this body--perhaps even in this country. As a
former member of the Greenspan Commission, which restored solvency to
the Trust Funds in 1983, Senator Moynihan is a seasoned veteran of
reform commissions--and we welcome his counsel on, and support of, this
legislation. My dear friend's participation in the Greenspan Commission
also reminds us of what can happen when Congress waits until the last
possible moment to restore solvency to this important program. As my
colleagues may remember, the 1983 Commission met to discuss reforms at
a time when the program was in severe jeopardy--Social Security checks
were at risk of not being sent out. Since the 1983 reforms were
enacted, future insolvency has again plagued the program. Senator
Moynihan has been leading the charge to ensure that Congress does not
make the same mistake in waiting until 2037 to reform the program--he
knows too well that fixing it now will alleviate great financial pain
on future generations. I have been honored to co-sponsor two reform
bills with Senator Moynihan--and I am honored to call him a friend. His
wise leadership on this and other issues will be dearly missed when he
retires at the close of this 106th Congress.

I was skeptical at first about an effort to create a Congressional
Commission to reform the Social Security program. But upon further
consideration, I have reached the conclusion that a bicameral,
bipartisan Congressional Commission is the only way to move beyond the
polarizing partisanship and inflammatory rhetoric that stalls action on
this important program.
The Commission envisioned in our bill will include equal numbers of
Republicans and Democrats, including the Chairs and Ranking Members of
the Ways and Means and Finance Committees, and the Commissioner of
Social Security as a non-voting, ex-officio member. Our bill also
creates an expedited process for consideration of the Commission's
reform bill in the House and Senate. The process is similar to
reconciliation protections for budget and tax measures--and will
prevent Members from exercising delaying tactics.
Our bill also sets out a number of reform objectives for the
Commission to meet, such as maintaining benefits for current
beneficiaries, restoring Trust Fund solvency for at least 75-years, and
including some form of wealth creation component as part of the Social
Security program.
I am particularly interested in encouraging this Commission to
include some form of individual account provision--with special
attention given to making the accounts and the program itself more
progressive for low and moderate income individuals.
As a Democrat, one of my greatest concerns is the growing wealth gap
between the rich and poor. The latest Statistics of Income Bulletin
from the IRS shows that the combined net worth of the top 4,400,000
Americans was $6.7 trillion in 1995. In other words, the top 2.5% of
our population held 27.4% of the nation's wealth in the mid-1990s.
These statistics highlight why we should be concerned about the growing
wealth gap. The ownership of wealth brings security to people's lives.
The ownership of wealth opens up new opportunities. And the ownership
of wealth transforms the way people view their futures.
An individual with no financial assets--and no means to accumulate
financial assets--cannot count on a secure retirement or ensure that
his or her future health care needs will be met.
Ownership of wealth is a much more reliable way of becoming
financially secure in old age than promises by politicians to tax and
transfer income. Ownership of wealth produces greater independence and
happiness. The mal-distribution of wealth (the rich getting richer and
the poor getting poorer) is not healthy for a liberal democracy and a
free market economy such as ours. Wealth ownership is the only path to
true security--and we must work to enact laws that provide low and
moderate income families the opportunities and the tools to acquire
wealth.
We will never reach a stage in which all Americans are full
participants in the growth of the American economy, unless we enact
comprehensive pension reforms that will improve savings opportunities
for low income workers, and modernize and improve the Social

[[Page S3529]]

Security program so that it becomes more than just a mechanism for
transferring income.
I look forward to a spirited and substantive debate on the subject of
Social Security in the upcoming Presidential election. And I am hopeful
that our Congressional Commission proposal can become the vehicle by
which the next President can work with Congress to create a bipartisan
consensus on Social Security reform.
______

By Mr. MURKOWSKI (for himself and Mr. Stevens):
S. 2511. A bill to establish the Kenai Mountains-Turnagain Arm
National Heritage Area in the State of Alaska, and for other purposes;
to the Committee on Energy and Natural Resources.

kenai mountains-turnagain arm national heritage corridor area act of
2000

<bullet> Mr. MURKOWSKI. Mr. President, I rise today to introduce a bill
to establish the Kenai Mountains-Turnagain Arm National Heritage Area
in my State of Alaska.
The Heritage Area, when enacted, will include the first leg of the
Iditarod National Historic Trail and most of the Seward Highway
National Scenic Byway. Through National Heritage designation these
routes will be portrayed and interpreted as part of the whole picture
of human history in the wider transportation corridor through the
mountains, which includes early Native trade routes, connections by
waterway, the railroad, and other trails and roadways.
This proposal differs from the 16 existing National Heritage Areas.
The fact that it would be one of a kind strengthens the case for
designation.
Unlike any of the existing National Heritage Areas, the Kenai
Mountains-Turnagain Arm National Historic Corridor will highlight the
experience of the western frontier--of transportation and settlement in
a difficult landscape--of the gold rush and resource development in a
remote area. These are the themes of the proposal--themes that formed
our perception of ourselves as a nation. The proposed Heritage Area
wonderfully expresses these themes.
Within the proposed Heritage Area there are a number of small
historic communities that developed around transportation and the gold
rush. They are dwarfed by the sweeping landscapes of the region, by the
magnificence of the mountains, and the dominance and strength of
nature.
Turnagain Arm, once a critical transportation link, has the world's
second largest tidal range. Visitors can stand along the shore lines
and actually watch 30-foot tides move in and out of the arm. On
occasion, the low roar of an oncoming bore tide can be heard as a wall
of water sweeps up the Turnagain.
A traveler through the alpine valleys and mountain passes of the
Heritage Area can see evidence of retreating glaciers, earthquake
subsidence, and avalanches. Dall sheep, beluga whales, moose, bald
eagles, trumpeter swans, and Artic terns give glimpses of their
presence.
Through this rugged terrain humans have developed transportation
routes into South-central and Interior Alaska. Travel was channeled
through the valleys and on the rivers and fjord-like lakes. First came
Alaska Natives, establishing trading paths. Later the Russians, gold
rush stampeders, and all types of people arrived seeking access into
the resource-rich land. The famous Iditarod Trail to Nome, which was
used to haul mail in and gold out, started at Seward.
A series of starts and stops by railroad entrepreneurs eventually
culminated in the completion of the railroad from Seward to Fairbanks
by the federal government. President Harding boarded the train in
Seward in 1923 to drive the golden spike at Nenana (and died on the
boat returning to Seattle). It was only in the last half of this
century that the highway from Seward to Anchorage was opened. Before
then the small communities of the area were linked to the rest of
Alaska by wagon trail, rail, and by boat across Turnagain Arm and the
Kenai River.
The Heritage Area contains one of the earliest mining regions in
Alaska. Russians left evidence of their search for gold at Bear Creek
near Hope. In 1895, discovery of a rich deposit at Canyon Creak
precipitated the Turnagain Arm Gold Rush, predating the stampede to the
Klondike.
The early settlements and communities of the area are still very much
as they were in the past. But, as in the early days, this is a region
where ``nature is boss,'' and historic trails and evidence of mining
history are often embedded and nearly hidden in the landscape. What can
be seen stands as powerful testimony to the human fortitude,
perseverance, and resourcefulness that is America's proudest heritage
from the people who settled the Alaskan frontier.
People living in the Kenai Mountains--Turnagain Arm areas share a
sense that it is a special place. In part, this is simply because of
the sheer natural beauty; but it is also because the Alaska frontier is
relative recent. Memories of the times when the inhabitants were
dependent on their own resources, and on each other, are still very
much alive.
Communities are small, but they are alive with volunteerism. All have
active historical societies. Groups in Seward and Girdwood have
organized to rebuild the Iditarod Trail. In the town of Hope citizens
constructed a museum of mining history, building it themselves out of
logs and donated materials. Local people have conducted historic
building surveys, written books and short histories, collected and
published old diaries, and created web pages to record and share the
history of their communities. Seward, the corridor's gateway, has
created a delightful array of visitor opportunities that display and
interpret the region's natural setting, Native culture, and history.
National Heritage Area designation would greatly encourage and expand
these good efforts.
Mr. President, it is important to note that this National Heritage
Area is a local grass roots effort and it will remain a locally driven
grass roots effort. Decisions will be made by locals, not by Federal
bureaucrats. The only role of the Federal Government is to provide
technical expertise, mostly in the areas of the interpretation of the
many historic sites and tremendous natural resource features that are
found throughout the entire region. There will be no additional land
ownership by the Federal Government or by the local management entity
that is charged with putting together a coordinated plan to interpret
the Heritage Area. The Heritage Area is about local people working
together.
Mr. President, I ask unanimous consent the bill be printed in the
Record and I urge my colleagues to support this legislation.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2511

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Kenai Mountains-Turnagain
Arm National Heritage Corridor Area Act of 2000''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--Congress finds that--
(1) the Kenai Mountains-Turnagain Arm transportation
corridor is a major gateway to Alaska and includes a range of
transportation routes used first by indigenous people who
were followed by pioneers who settled the nation's last
frontier;
(2) the natural history and scenic splendor of the region
are equally outstanding; vistas of nature's power include
evidence of earthquake subsidence, recent avalanches,
retreating glaciers and tidal action along Turnagain Arm,
which has the world's second greatest tidal range;
(3) the cultural landscape formed by indigenous people and
then by settlement, transportation and modern resource
development in this rugged and often treacherous natural
setting stands as powerful testimony to the human fortitude,
perseverance and resourcefulness that is America's proudest
heritage from the people who settled the frontier;
(4) there is a national interest in recognizing,
preserving, promoting and interpreting these resources;
(5) the Kenai Mountains-Turnagain Arm region is
geographically and culturally cohesive because it is defined
by a corridor of historic routes--trail, water, railroad, and
roadways through a distinct landscape of mountains, lakes and
fjords;
(6) national significance of separate elements of the
region include, but are not limited to, the Iditarod National
Historic Trail, the Seward Highway National Scenic Byway and
the Alaska Railroad National Scenic Railroad;
(7) national heritage area designation provides for the
interpretation of these routes, as well as the national
historic districts and numerous historic routes in the region
as

[[Page S3530]]

part of the whole picture of human history in the wider
transportation corridor including early Native trade routes,
connections by waterway, mining trail and other routes;
(8) national heritage area designation also provides
communities within the region with the motivation and means
for ``grass roots'' regional coordination and partnerships
with each other and with borough, State and federal agencies;
and
(9) resolution and letters of support have been received
from the Kenai Peninsula Historical Association, the Seward
Historical Commission, the Seward City Council, the Hope and
Sunrise Historical Society, the Hope Chamber of Commerce, the
Alaska Association for Historic Preservation, the Cooper
Landing Community Club, the Alaska Wilderness Recreation and
Tourism Association, Anchorage Historic Properties, the
Anchorage Convention and Visitors Bureau, the Cook Inlet
Historical Society, the Moose Pass Sportsman's Club, the
Alaska Historical Commission, the Girdwood Board of
Supervisors, the Kenai River Special Management Area
Advisory Board, the Bird/Indian Community Council, the
Kenai Peninsula Borough Trails Commission, the Alaska
Division of Parks and Recreation, the Kenai Peninsula
Borough, the Kenai Peninsula Tourism Marketing Council,
and the Anchorage Municipal Assembly.
(b) Purposes.--The purposes of this Act are--
(1) to recognize, preserve and interpret the historic and
modern resource development and cultural landscapes of the
Kenai Mountains--Turnagain Arm historic transportation
corridor, and to promote and facilitate the public enjoyment
of these resources; and
(2) to foster, through financial and technical assistance,
the development of cooperative planning and partnerships
among the communities and borough, state and federal
government entities.

SEC. 3. DEFINITIONS.

In this Act:
(1) Heritage area.--The term ``Heritage Area'' means the
Kenai Mountains--Turnagain Arm National Heritage Area
establish by section 4(a) of this Act.
(2) Management entity.--The term ``management entity''
means the 11 member Board of Directors of the Kenai
Mountains--Turnagain Arm National Area Commission.
(3) Management plan.--The term ``management plan'' means
the management plan for the Heritage Area.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.

SEC. 4. KENAI MOUNTAINS--TURNAGAIN ARM NATIONAL HERITAGE
AREA.

(a) Establishment.--There is established the Kenai
Mountains--Turnagain Arm National Heritage Area.
(b) Boundaries.--The Heritage Area shall comprise the lands
in the Kenai Mountains and upper Turnagain Arm region
generally depicted on the map entitled ``Kenai Peninsula/
Turnagain Arm National Heritage Corridor'', numbered ``Map
#KMTA--1, and dated ``August 1999''. The map shall be on file
and available for public inspection in the offices of the
Alaska Regional Office of the National Park Service and in
the offices of the Alaska State Heritage Preservation
Officer.

SEC. 5. MANAGEMENT ENTITY.

(a) The management entity shall consist of 7
representatives, appointed by the Secretary from a list of
recommendations submitted by the Governor of Alaska, from the
communities of Seward, Lawing, Moose Pass, Cooper Landing,
Hope, Girdwood, Bird-Indian and 4 at-large representatives,
from such organizations as Native Associations, the Iditarod
Trail Committee, historical societies, visitor associations
and private or business entities. Upon appointment, the
Commission shall establish itself as a non-profit corporation
under laws of the State of Alaska.
(1) Terms.--Members of the management entity appointed
under section 5(a) shall each serve for a term of 5 years,
except that of the members first appointed 3 shall serve for
a term of 4 years and 2 shall serve for a term of 3 years;
however, upon the expiration of his or her term, an appointed
member may continue to serve until his or her successor has
been appointed.
(2) Vacancies.--Any vacancy in the Commission shall be
filled in the same manner in which the original appointment
was made, and any member appointed to fill a vacancy shall
serve for the remainder of that term for which his or her
predecessor was appointed.
(b) Non-voting Ex-officio representatives, invited by the
non-profit corporation from such organizations as the State
Division of Parks and Outdoor Recreation, State Division
Mining, Land and Water, Forest Service, State Historic
Preservation Office, Kenai Peninsula Borough, Municipality of
Anchorage, Alaska Railroad, Alaska Department of
Transportation and the National Park Service.
(c) Representation of ex-officio members in the non-profit
corporation shall be established under the by-laws of the
management entity.

SEC. 6. AUTHORITIES AND DUTIES OF MANAGEMENT ENTITY.

(a) Management Plan.--
(1) In general.--Not later than 3 years after the Secretary
enters into a cooperative agreement with the management
entity, the management entity shall develop a management plan
for the Heritage Area, taking into consideration existing
federal, State, borough, and local plans.
(2) Contents.--The management plan shall include, but not
be limited to--
(A) comprehensive recommendations for conservation,
funding, management, and development of the Heritage Area;
(B) a description of agreements on actions to be carried
out by government and private organizations to protect the
resources of the Heritage Area;
(C) a list of specific and potential sources of funding to
protect, manage and develop the Heritage Area;
(D) an inventory of the resources contained in the Heritage
Area: and
(E) a description of the role and participation of other
Federal, State and local agencies that have jurisdiction on
lands within the Heritage Area.
(b) Priorities.--The management entity shall given priority
to the implementation of actions, goals, and policies set
forth in the cooperative agreement with the Secretary and the
heritage plan, including assisting communities within the
region in--
(1) carrying out programs which recognize important
resource values in the heritage corridor;
(2) encouraging economic viability in the affected
communities;
(3) establishing and maintaining interpretive exhibits in
the Heritage Area;
(4) improving and interpreting heritage trails;
(5) increasing public awareness and appreciation for the
natural, historical and cultural resources and modern
resource development of the Heritage Area;
(6) restoring historic buildings and structures that are
located within the boundaries of the heritage corridor; and
(7) ensuring that clear, consistent and appropriate signs
identifying public access points and sites of interest are
placed throughout the Heritage Area
(c) Consideration of Interest of Local Groups.--Projects
incorporated in the heritage plan by the management entity
shall be initiated by local groups and developed with the
participation and support of the affected local communities.
Other organizations may submit projects or proposals to the
local groups for consideration.
(d) Public Meetings.--The management entity shall conduct 2
or more public meetings each year regarding the initiation
and implementation of the management plan for the Heritage
Area. The management entity shall place a notice of each such
meeting in a newspaper of general circulation in the Heritage
Area and shall make the minutes of the meeting available to
the public.

SEC. 7. DUTIES OF THE SECRETARY.

(a) The Secretary, in consultation with the Governor of
Alaska, or his designee, is authorized to enter into a
cooperative agreement with the management entity. The
cooperative agreement shall be prepared with public
participation.
In accordance with the terms and conditions of the
cooperative agreement and upon the request of the management
entity, subject to the availability of funds, the Secretary
shall provide administrative, technical, financial, design,
development and operations assistance to carry out the
purposes of this Act.

SEC. 8. SAVINGS PROVISIONS.

(a) Regulatory Authority.--Nothing in this Act shall be
construed to grant powers of zoning or management of land use
to the management entity of the Heritage Area.
(b) Effect on Authority of Governments.--Nothing in this
Act shall be construed to modify, enlarge or diminish any
authority of the Federal, State or local governments to
regulate any use of land as provided for by law or
regulation.
(c) Effect on Business.--Nothing in this Act shall be
construed to obstruct or limit business activity on private
development or resource development activities.

SEC. 9. PROHIBITION ON THE ACQUISITION OR REAL PROPERTY.

(a) The management entity may not use funds appropriated to
carry out the purposes of this Act to acquire real property
or interest in real property.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

(a) First Year.--For the first year $350,000 is authorized
to be appropriated to carry out the purposes of this Act, and
is made available upon the Secretary and the management
entity completing a cooperative agreement.
(b) In General.--There is authorized to be appropriated not
more than $1,000,000 to carry out the purposes of this Act
for any fiscal year after the first year. Not more than
$10,000,000, in the aggregate, may be appropriated for the
Heritage Area.
(c) Matching Funds.--Federal funding provided under this
Act shall be matched at least 25 percent by other funds or
in-kind services.
(d) Sunset Provision.--The Secretary may not make any grant
or provide any assistance under this Act beyond 15 years from
the date that the Secretary and management entity complete a
cooperative agreement.<bullet>
______

By Mr. MOYNIHAN (for himself and Mr. Schumer):
S. 2512. A bill to convey certain Federal properties on Governors
Island, New York; to the Committee on Energy and Natural Resources.

governors island preservation act of 2000

<bullet> Mr. MOYNIHAN. Mr. President, I rise with my distinguished
colleague and fellow New Yorker, Senator Schumer,

[[Page S3531]]

to introduce the ``Governors Island Preservation Act of 2000.'' This
bill will establish the Governors Island National Monument preserving
two of New York Harbor's earliest fortifications, Fort Jay and Castle
Williams. The balance of the property will be conveyed to the State of
New York. New York City Mayor Rudolph W. Giuliani and New York State
Governor George E. Pataki have developed a plan for the reuse of
Governors Island. Their agreement has helped to make this bill
possible, and both deserve much credit.
Congress stipulated in the Balanced Budget Act of 1997 that Governors
Island be sold ``at fair market value'' no sooner than Fiscal Year
2002. Without the benefit of an appraisal, the Congressional Budget
Office determined its value to be somewhere between $250 million and $1
billion. As Congress continued its work on the Balanced Budget Act of
1997, $500 million of Federal revenue was identified in Fiscal Year
2002 through the sale of Governors Island. A fantasy perhaps, but no
matter, the money had been found.
Governors Island has played a significant role in every major
military conflict from the American Revolution through World War II. In
April of 1776, General Israel Putnam and 1,000 officers arrived on
Governors Island and began erecting fortifications. Three months later,
the guns at Governors Island prevented Admiral Howe's 400 ships and
Lord Cornwallis' army--32,000 men strong--from crushing General George
Washington's badly overwhelmed forces during the Battle of Long Island.
Outflanked in Brooklyn, Washington's men retreated to the island of
Manhattan across the East River under the cover of the Governors
Island's guns. At the risk of falling into what historians term a
``teleological trap,'' I would suggest that the Revolution could well
have ended right then and there.
During the War of 1812, the guns at the ``cheese-box'' shaped Castle
Williams--and those at the Southwest Battery--dissuaded the British
from mounting a direct attack on New York City, then the Nation's
principal seaport.
During the Civil War, Governors Island served as the primary Eastern
Seaboard recruiting depot for Union soldiers. Nearly 5,000 Union
draftees and volunteers were stationed there. Its inaccessibility
proved useful for garrisoning the most recalcitrant of Confederate
soldiers, who were confined both in Castle Williams and Fort Jay. Only
one, Captain William Robert Webb, managed to escape. It will give my
colleagues some measure of satisfaction to learn that this artful rebel
was later appointed U.S. Senator from Tennessee.

After the U.S. Congress declared war with Germany and Austria-Hungary
on April 6, 1917, Governors Island became an embarkation point for the
war effort. Several years earlier, the Island was expanded to its
current 172-acre size by the excavation of the Lexington Avenue Subway
line, which generated over 4.7 million tons of fill. The additional
space permitted the construction of over 70 buildings providing a
combined total of 30 million square feet of storage space. As the War
escalated, estimates place the value of goods transported from
Governors Island to the European theater at over $1 million per day--in
1917 dollars.
More than 20 years later, the famed General Hugh Drum commanded the
First Army from Governors Island as the United States prepared for the
Second World War. Once war was declared, Governors Island served as the
headquarters for the Eastern Defense Command, which was tasked with
protecting the Eastern Seaboard from Nazi attack.
In 1966, the Coast Guard assumed control of Governors Island, and
remained there for 30 years. After lighting the refurbished Statue of
Liberty from Governors Island on July 4, 1986, President Reagan grew
fond of Governors Island. On December 7, 1988, he chose the Admiral's
House on Governors Island to meet Soviet Premier Mikhail S. Gorbachev
to present each other with the Articles of Ratification of the
Intermediate Nuclear Forces Treaty.
It is inconceivable that Congress would permit this site, so rich in
history, to be recklessly sold to the highest bidder.
In January of this year, Governor Pataki and Mayor Giuliani announced
an agreement on a preservation plan for Governors Island. The Governors
Island Preservation Act is based upon that plan and calls for the
establishment of the Governors Island National Monument to be comprised
of Fort Jay and Castle Williams (so named after Lt. Col. Jonathan
Williams, the first superintendent of West Point). Once the Monument is
established, all of the historic New York Harbor forts--Fort Wood (the
base of the Statue of Liberty), the Southwest Battery (now Castle
Clinton National Monument), and Fort Gibson (partially demolished to
provide for the construction of Ellis Island)--will be within the
National Park Service inventory.
The remaining portions of the Island will be conveyed to the Empire
State Development Corporation, as agreed to by Mayor Giuliani and
Governor Pataki. Their plan will incorporate a public park, athletic
fields, a museum dedicated to the history and ecology of the Hudson
River and New York Harbor, a family center modeled after Colonial
Williamsburg, a conference center, and a hotel. After 200 years of
Federal occupation, Governors Island will at last be open to the
public.
I thank the chair and I urge my colleagues to support this important
legislation.<bullet>
Mr. SCHUMER. Mr. President, I would like to offer a few brief remarks
to underscore several of the points that my colleague, Senator
Moynihan, made when he introduced the ``Governors Island Preservation
Act of 2000,'' a bill I gladly cosponsored.
The first point is that Governors Island is truly a national
treasure. It has played a significant role in nearly every American
battle from the Revolution through World War II. During the War of
1812, it is credited with preventing a direct British attack on the
City of New York--then the Nation's principal seaport. It served as the
Union's foremost recruiting depot and as a Confederate prison during
the Civil War.
The second point, Mr. President, is that its historical structures
have been placed in no small degree of danger by the statutorily
mandated Fiscal Year 2002 sale date. If the Island should be sold then
``at fair market value,'' there simply is no guarantee the Castle
Williams, Fort Jay, Building 400--a McKim, Meade & White masterpiece
thought to be the largest single Army barrack ever constructed, the
1708 Governor's house, and the entire Governors Island National
Historic Landmark District will be protected. When the Balanced Budget
Act of 1997 was being negotiated, Congress faced seemingly intractable,
structural deficits. We had to make a great many difficult and, if I
may, extreme choices to bring the Federal budget into balance. Three
years later, our circumstances are quite different. Fiscal austerity
has paid its dividends and we are approaching an era of surpluses much
sooner that we might have otherwise imagined. Should we still be
proposing to sell off such an important piece of American history?
Finally, Mr. President, my colleague mentioned the issue of fairness.
New York gave Governors Island to the national government in 1800. No
complaints. The British and the French were then poised to attack our
young nation. Now the Federal government has no use for Governors
Island--the Coast Guard found it too expensive to maintain--it is only
right that the people of New York get their property back. The
Governors Island Preservation Act of 2000 will do just that. In
addition, it will establish the Governors Island National Monument
which will provide all Americans--for the first time--with the
opportunity to learn of the Island's rich contributions to American
history while experiencing the spectacular views of New York Harbor
from this idyllic setting.
Mr. President, I urge my colleagues to support this bill.
______

By Mr. LEAHY (for himself, Mr. Sarbanes, Mr. Robb, Mr. Dodd. Mr.
Kerry, Mr. Bryan, Mr. Edwards, Mr. Durbin, Mr. Harkin, and Mrs.
Feinstein):
S. 2513. A bill to strengthen control by consumers over the use and
disclosure of their personal financial and health information by
financial institutions, and for other purposes to the committee on
Banking Housing, and Urban Affairs.

[[Page S3532]]

financial information privacy protection act

Mr. LEAHY. Mr. President, I am pleased today to introduce the
Financial Information Privacy Protection Act of 2000, which was crafted
by President Clinton and Vice President Gore. I am delighted to be
joined by Senator Sarbanes, the Ranking Member of the Senate Banking
Committee, who is a real leader in the Senate on protecting personal
financial information. I am also pleased that Senators Robb, Dodd,
Kerry, Bryan, Edwards, Durbin, Harkin and Feinstein are original
cosponsors of this legislation to protect the financial privacy of all
Americans.
Last November, President Clinton signed into law the landmark
Financial Modernization Act of 1999, which updates our financial laws
and opens up the financial services industry to become more
competitive, both at home and abroad. Many of my colleagues and I
supported that legislation because we believe it will benefit
businesses and consumers. It will make it easier for banking,
securities, and insurance firms to consolidate their services, cut
expenses and offer more products at a lower cost to all. But it also
raises new concerns about our financial privacy.
New conglomerates in the financial services industry may now offer a
widening variety of services, each of which may require a customer to
provide financial, medical or other personal information. Nothing in
the new law prevents these new subsidiaries or affiliates of financial
conglomerates from sharing this information for uses beyond those the
customer thought he or she was providing it. For example, the new law
has no requirement for the consumer to control whether these new
financial subsidiaries or affiliates sell, share, or publish
information on savings account balances, certificates of deposit
maturity dates and balances, stock and mutual fund purchases and sales,
life insurance payouts or health insurance claims. That is wrong.
When President Clinton signed the financial modernization bill last
year, he directed the National Economic Council to work with the
Treasury Department and Office of Management and Budget to craft a
legislative proposal to protect financial privacy in the new financial
services marketplace. The result of that process is the bill we are
introducing today.
I believe the Financial Information Privacy Protection Act of 2000
should serve as the foundation for model financial privacy legislation
that Congress enacts into law this year. This bill is a common sense
approach that can attract both consumers and the industry. It sands off
the extremes at both ends of the issue. We need a catalyst to bring
both sides together, and this bill can do it.
Privacy is one of our most vulnerable rights in the information age.
Digitalization of information offers tremendous benefits but also new
threats. Some in Congress are content to punt the privacy issue down
the field for another year. The public disagrees. People know that the
longer we dawdle, the harder it will be to halt the erosion of privacy.
A year is an eternity in the digital age.
The right of privacy is a personal and fundamental right protected by
the Constitution of the United States. But today, the American people
are growing more and more concerned over encroachments on their
personal privacy. To return personal financial privacy to the control
of the consumer, the Administration's financial privacy legislation
would create the following enforceable rights in Federal law.
New Right To Opt-out of Information Sharing By Affiliates. The new
financial modernization law permits consumers to say no to information
sharing, selling or publishing among third parties in many cases, but
not among affiliated firms. The Financial Information Privacy
Protection Act of 2000 would require financial conglomerates, which
will only grow under the new modernization law, to expand this
protection to give consumers the right to notify it (opt-out) to stop
all information sharing, selling or publishing of personal financial
information among all third parties and affiliates.
New Right For Consumers To Opt-In For Sharing of Medical Information
and Personal Spending Habits. The Financial Information Privacy
Protection Act of 2000 would require financial firms to get the
affirmative consent (opt-in) of consumers before a firm could gain
access to medical information within a financial conglomerate or share
detailed information about a consumer's personal spending habits.
New Right To Access and Correct Financial Information. The Financial
Information Privacy Protection Act of 2000 would give consumers the
right to review and correct their financial records, just like
consumers today may review and correct their credit reports.
New Right To Privacy Policy Up Front. The Financial Information
Privacy Protection Act of 2000 would require financial firms to provide
their privacy policies to consumers before committing to a customer
relationship, not after. In addition, the bill's new rights would be
enforced by federal banking regulators, the Federal Trade Commission
and state attorney generals.
As President Clinton warned all Americans: ``Although consumers put a
great value on privacy of their financial records, our laws have not
caught up to technological developments that make it possible and
potentially profitable for companies to share financial data in new
ways. Consumers who undergo physical exams to obtain insurance, for
example, should not have to fear the information will be used to lower
their credit card limits or deny them mortgages.'' I strongly agree.
Unfortunately, if you have a checking account, you may have a
financial privacy problem. Your bank may sell or share with business
allies information about who you are writing checks to, when, and for
how much. And even if you tell your bank to stop, it can ignore you
under current law. This legislation returns to consumers the power to
stop the selling or sharing of personal financial information.
Americans ought to be able to enjoy the exciting innovations of this
burgeoning information era without losing control over the use of their
financial information. The Financial Information Privacy Protection Act
of 2000 updates United States privacy laws to provide these fundamental
protections of personal financial information in the evolving financial
services industry. I urge my colleagues to support it.
Mr. President, I ask unanimous consent that the full text of the
Financial Information Privacy Protection Act of 2000 and a section-by-
section analysis of the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 2513

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Financial
Information Privacy Protection Act of 2000''.
(b) Table of Contents.--The table of contents for this Act
is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Opt-out requirement for disclosure to affiliates and
nonaffiliated third parties.
Sec. 3. Restricting the transfer of information about personal spending
habits.
Sec. 4. Restricting the use of health information in making credit and
other financial decisions.
Sec. 5. Limits on redisclosure and reuse of information.
Sec. 6. Consumer rights to access and correct information.
Sec. 7. Improved enforcement authority.
Sec. 8. Enhanced disclosure of privacy policies.
Sec. 9. Limit on disclosure of account numbers.
Sec. 10. General exceptions.
Sec. 11. Definitions.
Sec. 12. Issuance of implementing regulations.
Sec. 13. FTC rulemaking authority under the Fair Credit Reporting Act.

SEC. 2. OPT-OUT REQUIREMENT FOR DISCLOSURE TO AFFILIATES AND
NONAFFILIATED THIRD PARTIES.

Section 502(a) of the Gramm-Leach-Bliley Act (15 U.S.C.
6802(a)) is amended to read as follows:
``(a) Disclosure of Nonpublic Personal Information.--Except
as otherwise provided in this subtitle, a financial
institution may not disclose any nonpublic personal
information to an affiliate or a nonaffiliated third party
unless such financial institution--
``(1) has provided to the consumer a clear and conspicuous
notice, in writing or electronic form or other form permitted
by the regulations implementing this subtitle, of the
categories of information that may be disclosed to the--
``(A) affiliate; or
``(B) nonaffiliated third party;

[[Page S3533]]

``(2) has given the consumer an opportunity, before the
time that such information is initially disclosed, to direct
that such information not be disclosed to such--
``(A) affiliate; or
``(B) nonaffiliated third party; and
``(3) has given the consumer the ability to exercise that
nondisclosure option through the same method of communication
by which the consumer received the notice described in
paragraph (1) or another method at least as convenient to the
consumer, and an explanation of how the consumer can exercise
such option.''.

SEC. 3. RESTRICTING THE TRANSFER OF INFORMATION ABOUT
PERSONAL SPENDING HABITS.

Section 502(b) of the Gramm-Leach-Bliley Act (15 U.S.C.
6802(b)) is amended to read as follows:
``(b) Restriction on the Transfer of Information About
Personal Spending Habits.--
``(1) In general.--Notwithstanding subsection (a), if a
financial institution provides a service to a consumer
through which the consumer makes or receives payments or
transfers by check, debit card, credit card, or other similar
instrument, the financial institution shall not transfer to
an affiliate or a nonaffiliated third party--
``(A) an individualized list of that consumer's
transactions or an individualized description of that
consumer's interests, preferences, or other characteristics;
or
``(B) any such list or description constructed in response
to an inquiry about a specific, named individual;
if the list or description is derived from information
collected in the course of providing that service.
``(2) Restriction on transfer of aggregate lists containing
certain health information.--Notwithstanding subsection (a),
a financial institution shall not transfer to an affiliate or
a nonaffiliated third party any aggregate list of consumers
containing or derived from individually identifiable health
information.
``(3) Exceptions.--
``(A) In general.--The financial institution may disclose
the information described in paragraph (1) or (2) to an
affiliate or a nonaffiliated third party if such financial
institution--
``(i) has clearly and conspicuously requested in writing or
in electronic form or other form permitted by the regulations
implementing this subtitle, that the consumer affirmatively
consent to such disclosure; and
``(ii) has obtained from the consumer such affirmative
consent and such consent has not been withdrawn.
``(B) Rule of construction.--This subsection shall not be
construed as preventing a financial institution from
transferring the information described in paragraph (1) or
(2) to an affiliate or a nonaffiliated third party for the
purposes described in paragraph (1), (2), (3), (5), (7), (8),
(9), or (10) of subsection (f).
``(C) Scope of application.--Paragraph (1) shall not apply
to the transfer of aggregate lists of consumers.''.

SEC. 4. RESTRICTING THE USE OF HEALTH INFORMATION IN MAKING
CREDIT AND OTHER FINANCIAL DECISIONS.

(a) Restriction on Use of Consumer Health Information.--
Section 502(c) of the Gramm-Leach-Bliley Act (15 U.S.C.
6802(c)) is amended to read as follows:
``(c) Use of Consumer Health Information Available From
Affiliates and nonaffiliated Third Parties.--In deciding
whether, or on what terms, to offer, provide, or continue to
provide a financial product or service to a consumer, a
financial institution shall not obtain or receive
individually identifiable health information about the
consumer from an affiliate or nonaffiliated third party, or
evaluate or otherwise consider any such information, unless
the financial institution--
``(1) has clearly and conspicuously requested in writing or
in electronic form or other form permitted by the regulations
implementing this subtitle, that the consumer affirmatively
consent to the transfer and use of that information with
respect to a particular financial product or service;
``(2) has obtained from the consumer such affirmative
consent and such consent has not been withdrawn; and
``(3) requires the same health information about all
consumers as a condition for receiving the financial product
or service.''.
(b) Existing Protections For Health Information Not
Affected.--Title V of the Gramm-Leach-Bliley Act (15 U.S.C.
6801 et seq.) is amended by adding after section 510 the
following new section:

``SEC. 511. RELATION TO STANDARDS ESTABLISHED UNDER THE
HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY
ACT OF 1996.

``Nothing in this subtitle shall be construed as--
``(1) modifying, limiting, or superseding standards
governing the privacy and security of individually
identifiable health information promulgated by the Secretary
of Health and Human Services under sections 262(a) and 264 of
the Health Insurance Portability and Accountability Act of
1996; or
``(2) authorizing the use or disclosure of individually
identifiable health information in a manner other than as
permitted by other applicable law.''.
(c) Definition of Individually Identifiable Health
Information.--Section 509 of the Gramm-Leach-Bliley Act (15
U.S.C. 6809) is amended by adding at the end the following
new paragraph:
``(12) Individually identifiable health information.--The
term `individually identifiable health information' means any
information, including demographic information obtained from
or about an individual, that is described in section
1171(6)(B) of the Social Security Act.''.
(d) Technical and Conforming Amendment.--Section 505(a)(6)
of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)(6)) is
amended by inserting before the period at the end ``to the
extent the provisions of such section are not inconsistent
with the provisions of this subtitle''.

SEC. 5. LIMITS ON REDISCLOSURE AND REUSE OF INFORMATION.

Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802)
is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively; and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Limits on Redisclosure and Reuse of Information.--
``(1) In general.--An affiliate or a nonaffiliated third
party that receives nonpublic personal information from a
financial institution shall not disclose such information to
any other person unless such disclosure would be lawful if
made directly to such other person by the financial
institution.
``(2) Disclosure under a general exception.--
Notwithstanding paragraph (1), any person that receives
nonpublic personal information from a financial institution
in accordance with one of the general exceptions in
subsection (f) may use or disclose such information only--
``(A) as permitted under that general exception; or
``(B) under another general exception in subsection (f), if
necessary to carry out the purpose for which the information
was disclosed by the financial institution.''.

SEC. 6. CONSUMER RIGHTS TO ACCESS AND CORRECT INFORMATION.

Title V of the Gramm-Leach-Bliley Act (15 U.S.C. 6801 et
seq.) is amended by adding after section 511 (as added by
section 4(b) of this Act), the following new section:

``SEC. 512. ACCESS TO AND CORRECTION OF INFORMATION.

``(a) Access.--
(1) In general.--Upon the request of a consumer, a
financial institution shall make available to the consumer
information about the consumer that is under the control of,
and reasonably available to, the financial institution.
``(2) Exceptions.--Notwithstanding paragraph (1), a
financial institution--
``(A) shall not be required to disclose to a consumer any
confidential commercial information, such as an algorithm
used to derive credit scores or other risk scores or
predictors;
``(B) shall not be required to create new records in order
to comply with the consumer's request;
``(C) shall not be required to disclose to a consumer any
information assembled by the financial institution, in a
particular matter, as part of the financial institution's
efforts to comply with laws preventing fraud, money
laundering, or other unlawful conduct; and
``(D) shall not disclose any information required to be
kept confidential by any other Federal law.
``(b) Correction.--A financial institution shall provide a
consumer the opportunity to dispute the accuracy of any
information disclosed to the consumer pursuant to subsection
(a), and to present evidence thereon. A financial institution
shall correct or delete material information identified by a
consumer that is materially incomplete or inaccurate.
``(c) Coordination and Consultation.--In prescribing
regulations implementing this section, the Federal agencies
specified in section 504(a) shall consult with one another to
ensure that the rules--
``(1) impose consistent requirements on the financial
institutions under their respective jurisdictions;
``(2) take into account conditions under which financial
institutions do business both in the United States and in
other countries; and
``(3) are consistent with the principle of technology
neutrality.
``(d) Charges For Disclosures.--A financial institution may
impose a reasonable charge for making a disclosure under this
section, which charge must be disclosed to the consumer
before making the disclosure. ''.

SEC. 7. IMPROVED ENFORCEMENT AUTHORITY.

(a) Compliance With Privacy Policy.--Section 503 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6803) is amended by adding
at the end the following new subsection:
``(c) Compliance With Privacy Policy.--A financial
institution's failure to comply with any of its policies or
practices disclosed to a consumer under this section
constitutes a violation of the requirements of this
section.''.
(b) Unfair and Deceptive Trade Practice.--Section 505(a)(7)
of the Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)(7)) is
amended by adding at the end the following new sentence: ``A
violation of any requirement of this subtitle, or the
regulations of the Federal Trade Commission prescribed under
this subtitle, by a financial institution or other person
described in this paragraph shall constitute an unfair or
deceptive act or practice in commerce in violation of section
5(a) of the Federal Trade Commission Act.''.

[[Page S3534]]

(c) Supplemental State Enforcement For FTC Regulated
Entities.--Section 505 of the Gramm-Leach-Bliley Act (15
U.S.C. 6805) is amended by adding at the end the following
new subsection:
``(e) State Action For Violations.--
``(1) Authority of the States.--In addition to such other
remedies as are provided under State law, if the attorney
general of a State, or an officer authorized by the State,
has reason to believe that any financial institution or other
person described in section 505(a)(7) has violated or is
violating this subtitle or the regulations prescribed
thereunder by the Federal Trade Commission, the State may--
``(A) bring an action on behalf of the residents of the
State to enjoin such violation in any appropriate United
States district court or in any other court of competent
jurisdiction; and
``(B) bring an action on behalf of the residents of the
State to enforce compliance with this subtitle and the
regulations prescribed thereunder by the Federal Trade
Commission, to obtain damages, restitution, or other
compensation on behalf of the residents of such State, or to
obtain such further and other relief as the court may deem
appropriate.
``(2) Rights of the federal trade commission.--The State
shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission and shall
provide the Commission with a copy of its complaint; provided
that, if such prior notice is not feasible, the State shall
serve such notice immediately upon instituting such action.
The Federal Trade Commission shall have the right--
``(A) to move to stay the action, pending the final
disposition of a pending Federal matter as described in
paragraph (4);
``(B) to intervene in an action under paragraph (1);
``(C) upon so intervening, to be heard on all matters
arising therein;
``(D) to remove the action to the appropriate United States
district court; and
``(E) to file petitions for appeal.
``(3) Investigatory powers.--For purposes of bringing any
action under this subsection, nothing in this subsection
shall prevent the attorney general, or officers of such State
who are authorized by such State to bring such actions, from
exercising the powers conferred on the attorney general or
such officers by the laws of such State to conduct
investigations or to administer oaths or affirmations or to
compel the attendance of witnesses or the production of
documentary and other evidence.
``(4) Limitation on state action while federal action is
pending.--If the Federal Trade Commission has instituted an
action for a violation of this subtitle, no State may, during
the pendency of such action, bring an action under this
section against any defendant named in the complaint of the
Commission for any violation of this subtitle that is alleged
in that complaint.''.
(d) State Action For Violations of Ban on Pretext
Calling.--Section 522 of the Gramm-Leach-Bliley Act (15
U.S.C. 6822) is amended by adding at the end the following
new subsection:
``(c) State Action For Violations.--
``(1) Authority of the states.--In addition to such other
remedies as are provided under State law, if the attorney
general of a State, or an officer authorized by the State,
has reason to believe that any person (other than a person
described in subsection (b)(1)) has violated or is violating
this subtitle, the State may--
``(A) bring an action on behalf of the residents of the
State to enjoin such violation in any appropriate United
States district court or in any other court of competent
jurisdiction; and
``(B) bring an action on behalf of the residents of the
State to enforce compliance with this subtitle, to obtain
damages, restitution, or other compensation on behalf of the
residents of such State, or to obtain such further and other
relief as the court may deem appropriate.
``(2) Rights of federal agencies.--The State shall serve
prior written notice of any action commenced under paragraph
(1) upon the Attorney General and the Federal Trade
Commission, and shall provide the Attorney General and the
Commission with a copy of the complaint; provided that, if
such prior notice is not feasible, the State shall serve such
notice immediately upon instituting such action. The Attorney
General and the Federal Trade Commission shall have the
right--
``(A) to move to stay the action, pending the final
disposition of a pending Federal matter as described in
paragraph (4);
``(B) to intervene in an action under paragraph (1);
``(C) upon so intervening, to be heard on all matters
arising therein;
``(D) to remove the action to the appropriate United States
district court; and
``(E) to file petitions for appeal.
``(3) Investigatory powers.--For purposes of bringing any
action under this subsection, nothing in this subsection
shall prevent the attorney general, or officers of such State
who are authorized by such State to bring such actions, from
exercising the powers conferred on the attorney general or
such officers by the laws of such State to conduct
investigations or to administer oaths or affirmations or to
compel the attendance of witnesses or the production of
documentary and other evidence.
``(4) Limitation on state action while federal action is
pending.--If the Attorney General has instituted a criminal
proceeding or the Federal Trade Commission has instituted a
civil action for a violation of this subtitle, no State may,
during the pendency of such proceeding or action, bring an
action under this section against any defendant named in the
criminal proceeding or civil action for any violation of this
subtitle that is alleged in that proceeding or action.''.

SEC. 8. ENHANCED DISCLOSURE OF PRIVACY POLICIES.

(a) Timing of Notice to Consumers.--Section 503(a) of the
Gramm-Leach-Bliley Act (15 U.S.C. 6803(a)) is amended to read
as follows:
``(a) Disclosure Required.--
``(1) Time of disclosure.--A financial institution shall
provide a disclosure that complies with paragraph (2)--
``(A) to an individual upon the individual's request;
``(B) as part of an application for a financial product or
service from the financial institution; and
``(C) to a consumer, prior to establishing a customer
relationship with the consumer and not less frequently than
annually during the continuation of such relationship.
``(2) Disclosure format.--The disclosure required by
paragraph (1) shall be a clear and conspicuous notice, in
writing or in electronic form or other form permitted by the
regulations implementing this subtitle, of such financial
institution's policies and practices with respect to--
``(A) disclosing nonpublic personal information to
affiliates and nonaffiliated third parties, consistent with
section 502, including the categories of information that may
be disclosed;
``(B) disclosing nonpublic personal information of persons
who have ceased to be customers of the financial institution;
and
``(C) protecting the nonpublic personal information of
consumers.
Such disclosure shall be made in accordance with the
regulations implementing this subtitle.''.
(b) Notice of Rights to Access and Correct Information.--
Section 503(b)(2) of the Gramm-Leach-Bliley Act (15 U.S.C.
6803(b)(2)) is amended by inserting ``, and a statement of
the consumer's right to access and correct such information,
consistent with section 512'' after ``institution''.
(c) Technical and Conforming Amendment.--Section
503(b)(1)(A) of the Gramm-Leach-Bliley Act (15 U.S.C.
6803(b)(1)(A)) is amended by striking ``502(e)'' and
inserting ``502(f)''.

SEC. 9. LIMIT ON DISCLOSURE OF ACCOUNT NUMBERS.

Section 502 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802)
is amended in subsection (e) (as so redesignated by section
5) by inserting ``affiliate or'' before ``nonaffiliated third
party''.

SEC. 10. GENERAL EXCEPTIONS.

Section 502(f) of the Gramm-Leach-Bliley Act (15 U.S.C.
6802)) (as so redesignated by section 5 of this Act) is
amended--
(1) in the matter preceding paragraph (1), by striking
``Subsections (a) and (b)'' and inserting ``Subsection (a)'';
(2) in paragraph (1)--
(A) by striking ``or'' at the end of subparagraph (B);
(B) by inserting ``or'' after the semicolon at the end of
subparagraph (C); and
(C) by inserting after subparagraph (C) the following new
subparagraph:
``(D) performing services for or functions solely on behalf
of the financial institution with respect to the financial
institution's own customers, including marketing of the
financial institution's own products or services to the
financial institution's customers;'';
(3) in paragraph (4), by striking ``, and the institution's
attorneys, accountants, and auditors'';
(4) in paragraph (5), by inserting ``section 21 of the
Federal Deposit Insurance Act,'' after ``title 31, United
States Code,'';
(5) in paragraph (7), by striking ``or'' at the end;
(6) in paragraph (8), by striking the period and inserting
a semicolon; and
(7) by adding at the end the following new paragraphs:
``(9) in order to facilitate customer service, such as
maintenance and operation of consolidated customer call
centers or the use of consolidated customer account
statements; or
``(10) to the institution's attorneys, accountants, and
auditors.''.

SEC. 11. DEFINITIONS.

Section 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6809)
is amended--
(1) in paragraph (3)--
(A) by striking ``(3) Financial institution'' and all that
follows through ``The term `financial institution'' and
inserting ``(3) Financial institution.--The term `financial
institution''; and
(B) by striking subparagraphs (B), (C), and (D);
(2) by amending paragraph (4) to read as follows:
``(4) Nonpublic personal information.--The term ``nonpublic
personal information'' means--
``(A) any personally identifiable information, including a
Social Security number--
``(i) provided by a consumer to a financial institution, in
an application or otherwise, to obtain a financial product or
service from the financial institution;

[[Page S3535]]

``(ii) resulting from any transaction between a financial
institution and a consumer involving a financial product or
service; or
``(iii) obtained by the financial institution about a
consumer in connection with providing a financial product or
service to that consumer, other than publicly available
information, as such term is defined by the regulations
prescribed under section 504; and
``(B) any list, description or other grouping of one or
more consumers of the financial institution and publicly
available information pertaining to them.''; and
(3) in paragraph (9), by inserting ``applies for or''
before ``obtains''.

SEC. 12. ISSUANCE OF IMPLEMENTING REGULATIONS.

(a) In General.--The Federal agencies specified in section
504(a) of the Gramm-Leach-Bliley Act (15 U.S.C. 6804(a))
shall prescribe regulations implementing the amendments to
subtitle A of title V of the Gramm-Leach-Bliley Act made by
this Act, and shall include such requirements determined to
be appropriate to prevent their circumvention or evasion.
(b) Coordination, Consistency, and Comparability.--The
regulations issued under subsection (a) shall be issued in
accordance with the requirements of section 504(a) of the
Gramm-Leach-Bliley Act (15 U.S.C. 6804(a)), except that the
deadline in section 504(a)(3) shall not apply.

SEC. 13. FTC RULEMAKING AUTHORITY UNDER THE FAIR CREDIT
REPORTING ACT.

Section 621(e) of the Fair Credit Reporting Act (15 U.S.C.
1681s(e)) is amended by adding at the end the following new
paragraph:
``(3) Regulations.--The Federal Trade Commission shall
prescribe such regulations as necessary to carry out the
provisions of this title with respect to any persons
identified under paragraph (1) of subsection (a). Prior to
prescribing such regulations, the Federal Trade Commission
shall consult with the Federal banking agencies referred to
in paragraph (1) of this subsection in order to ensure, to
the extent possible, comparability and consistency with the
regulations issued by the Federal banking agencies under that
paragraph.''.
____

Financial Information Privacy Protection Act--Section-by-Section
Analysis

Section 1: Short Title; table of Contents
Section 101: Opt-out Requirement for Disclosure to Affiliates
and Nonaffiliated Third Parties
The Gramm-Leach-Bliley Act (GLBA) requires a financial
institution to give consumers notice of, and an opportunity
to prevent (opt out of), sharing of their nonpublic personal
information with companies that are not affiliated with the
financial institution (nonaffiliated third parties). Section
101 of the bill strengthens consumers' control over their
personal financial information by expanding this opt-out
right to cover information sharing between financial
institutions and their affiliates.
Section 101 also requires that when a financial institution
notifies a consumer of its intent to share the consumer's
information and gives the consumer the opportunity to opt-
out, the consumer must be able to exercise the opt-out choice
through the same method of communication by which the
financial institution communicated the opt-out notice to the
consumer, or by another method at least as convenient to the
consumer. For example, if a financial institution gives a
consumer an opt-out notice by electronic mail, the consumer
would have to be able to exercise the opt-out by a method at
least as convenient, such as by electronic mail or by
telephone, but could not be required to opt-out via an
individual letter.
The GLBA currently includes general exceptions to the
notice and opt-out requirement--for example, to allow
processing a consumer's transaction, to prevent fraud, or to
control institutional risk. The bill would also apply these
exceptions to information sharing with affiliates.
Section 102: Limitation on Transfer of Information About
Personal Spending Habits
Section 102 of the bill strengthens consumers' control over
the detailed information that financial firms can learn about
their personal spending habits and sources of income. In the
course of providing a payment mechanism for consumers,
financial institutions such as credit card companies, banks
and brokers--when they provide checking or money market
accounts--learn to whom a consumer makes payments, from whom
the consumer receives payments, and what the payments are
for.
The bill recognizes the special sensitivity of this
information. It requires that where a financial institution
is providing payment services for a consumer, the institution
cannot disclose the consumer's spending habits--whether in
the form of a list of the consumer's transactions or as a
description of the consumer's interests, preferences, or
other characteristics derived from payment information--
unless the institution clearly and conspicuously requests
permission from the consumer, and the consumer affirmatively
consents (opts in). This applies for transfers to both
nonaffiliated third parties and affiliates.
Section 102 includes the exceptions for transaction
processing, servicing of customer accounts, and other
necessary activities such as law enforcement.
Section 103: Restricting the Use of Health Information in
Making Credit and Other Financial Decisions
Limitation on Receipt of Consumer Health Information from
Affiliates
Section 103(a) of the bill prevents financial institutions
from using a consumer's health information held at an
affiliate in order to discriminate in the provision of credit
and financial services. Section 103(a) provides that in
deciding whether, and on what terms, to offer, provide, or
continue to provide a particular financial product or service
to a consumer, a financial institution may not obtain,
receive, evaluate, or otherwise consider individually
identifiable health information about the consumer from an
affiliate unless the financial institution: (1) clearly and
conspicuously requests permission from the consumer; (2)
obtains the consumer's affirmative consent; and (3) requires
the same information about all consumers as a condition for
receiving the financial product or service.
Relation to the Health Insurance Portability and
Accountability Act
Section 103(b) of the bill clarifies that the provisions of
subtitle A of title V of the GLBA, which create protections
for the privacy of consumers' financial information, do not
in any way modify or override the requirements of the
regulations issued by the Secretary of Health and Human
Services implementing the privacy and security protections
for consumers' individually identifiable health information
under the Health Insurance Portability and Accountability Act
of 1996 (HIPAA). Nor do the requirements of the GLBA
governing protection of consumers' financial information
authorize any use of individually identifiable health
information that would be inconsistent with other laws that
apply to such information. Section 103(c) makes clear that
for purposes of this provision, the term ``individually
identifiable health information'' has the same meaning as
under the HIPAA.
Section 104: Limits on Redisclosure and Reuse of Information
The GLBA imposes certain limits on a nonaffiliated third
party's ability to redisclose nonpublic personal information
received from a financial institution. The GLBA does not
prohibit a third party from redisclosing this information to
its own affiliates or to affiliates of the financial
institution from whom it received the information. In
addition, the third party may disclose the information to
another company if that disclosure would be lawful if made
directly by the financial institution.
Section 104 of the bill tightens the limits on redisclosure
and extends them to a financial institution's affiliates, in
order to parallel the new opt-out requirement for disclosure
of information to affiliates. Under section 104, when a
financial institution discloses nonpublic personal
information to either an affiliate or a nonaffiliated
third party, the recipient of the information may not
redisclose the information to any other person unless that
disclosure would be lawful if made directly by the
financial institution.
Section 104 also clarifies how the limits on redisclosure
apply when a financial institution discloses a consumer's
nonpublic personal information to another company pursuant to
one of the general exceptions to the opt-out requirement.
Section 104 provides that an affiliate or a nonaffiliated
third party that receives nonpublic personal information from
a financial institution under one of the general exceptions
may use or disclose that information only: (1) as permitted
under that general exception; or (2) under another general
exception, if necessary to carry out the purpose for which
the information was originally disclosed under a general
exception.
Since the opt-in requirement for the disclosure of personal
spending information by payment service providers is subject
to some, but not all, of the general exceptions, only a
subset of the general exceptions apply to reuse and
redisclosure by recipients of such information.
Section 105: Consumer Rights to Access and Correct
Information
Section 105 of the bill gives consumers the right to access
and to correct information about them that is under the
control of, and reasonably available to a financial
institution. A financial institution would not, however, be
required to give consumers access to confidential commercial
information, to make disclosures that would interfere with
law enforcement, or to create new records in order to comply
with a consumer's request for information.
Section 105 also requires financial institutions to give
consumers the opportunity to dispute the accuracy of
information disclosed to the consumer and to present evidence
of any inaccuracy. The financial institution must correct or
delete material information identified by the consumer that
is materially incomplete or inaccurate. In addition, a
financial institution may impose a reasonable fee for making
information available to consumers, as long as consumers
receive prior notice of the fee.
In promulgating regulations to implement the new access and
correction requirements, federal regulators must consult and
coordinate with one another in order to ensure that the
regulations: (1) impose consistent requirements across
financial institutions; (2) take into account conditions
under which the financial institutions do business in the
U.S. and abroad; and (3) are technology neutral.
Section 106: Improved Enforcement Authority
Compliance with Privacy Policy
The GLBA does not clearly explain whether a financial
institution is legally required

[[Page S3536]]

to abide by commitments it makes to consumers in its privacy
policy if those commitments are not required by law. Section
106(a) of the bill clarifies that a financial institution's
failure to comply with any of the privacy policies or
practices disclosed to a consumer constitutes a violation
of law.
Clarification of Federal Trade Commission (FTC) Enforcement
Authority
Section 106(b) of the bill makes clear that if a financial
institution or other person under the FTC's enforcement
jurisdiction under subtitle A of title V of the GLBA engages
in an activity that violates subtitle A, that activity
constitutes an unfair and deceptive trade practice under the
Federal Trade Commission Act. Consequently, in addressing
such a violation, the FTC could use all the enforcement tools
it has with respect to unfair or deceptive acts or practices
under the FTC Act.
State Enforcement Authority Concurrent with FTC
Section 106(c) of the bill gives States concurrent
authority with the FTC to enforce the GLBA's privacy
requirements with respect to FTC-regulated entities. Section
106(d) gives the States concurrent authority with the FTC to
enforce the GLBA's prohibitions on ``pretext calling,'' which
involves obtaining customer information from a financial
institution under false pretenses. Enforcement with regard to
banking institutions would continue to be done solely by the
federal banking agencies.
Section 107: Enhanced Disclosure of Privacy Policies
Timing of Disclosure of Privacy Policy
The GLBA requires financial institutions to provide their
privacy policies to consumers at the time of establishing a
customer relationship and at least annually during the
continuation of the relationship. The phrase ``at time of
establishing a customer relationship'' does not provide clear
guidance regarding when a financial institution must provide
its privacy policy to those individuals seeking to become its
customers. Section 107(a) of the bill is intended to clarify
the timing of notice delivery, and to ensure that individuals
are able to receive copies of financial institutions' privacy
policies before they commit time and resources to dealing
with any one financial institution. The bill specifically
clarifies that financial institutions must provide their
privacy policies to individuals upon request and as part of
an application for a financial product or service. Thus,
consumers will be empowered to comparison shop based on
privacy practices.
Content of Privacy Policy--Disclosure of Rights to Access
and Correct Information
Section 107(b) requires a financial institution's privacy
policy to include a statement of the consumer's rights to
access and correct information held by the financial
institution (see discussion of section 105 regarding
consumers' rights to access and correct information).
Section 108: Prohibition on Sharing of Account Numbers
The GLBA prohibits financial institutions from disclosing
consumers' account numbers or access codes to nonaffiliated
third parties (other than consumer reporting agencies) for
marketing purposes. Section 108 of the bill extends this
prohibition to disclosures to affiliates.
Section 109: Exceptions to the Opt-out and Opt-in
Requirements
Agency and Joint Marketing Exception
Section 502(c) of the GLBA creates an exception to the opt-
out requirement where a financial institution discloses a
consumer's nonpublic personal information to a nonaffiliated
third party that is acting as the financial institution's
agent. This exception permits a financial institution to
disclose consumers' nonpublic personal information to third
parties in connection with outsourcing certain functions,
such as back-office operations or direct mailings to market
the financial institution's own products, without giving
consumers the option to prevent disclosure. The financial
institution is, however, required to give consumers notice of
such disclosures and to enter into agreements with the third
parties to maintain the confidentiality of the consumers'
information.
Among the services and functions covered by the principal-
agent exception are certain joint marketing arrangements,
where a third party markets financial products or services
pursuant to a joint agreement between two or more financial
institutions. The joint marketing agreement exception was
enacted to allow financial institutions without affiliates,
particularly small institutions, to be able to jointly market
their products under the same rules that affiliates may do
so--that is, free from any opt-out requirement.
As noted in the discussion of sections 101 and 102 above,
the bill imposes the same restrictions on information sharing
between affiliates that now apply to information sharing
between financial institutions and nonaffiliated third
parties. Therefore, because coverage of information sharing
among affiliates and with third parties would be equivalent,
the joint marketing exception is rendered unnecessary, and is
eliminated. The bill also moves the remaining principal-agent
exception from section 502(c) of the GLBA to the list of
general exceptions in 502(e), which is redesignated as
502(f).
Customer Service and Consolidated Statements
Among the general exceptions to the notice and opt-out
requirements in the GLBA are disclosures for servicing
customer accounts and resolving customer disputes or
inquires. These exceptions are intended to permit financial
institutions to share information in response to customer
service needs. Section 109(7) of the bill expands the general
exceptions to include disclosures necessary to facilitate
customer service such as maintenance and operation of
consolidated customer call centers and the use of
consolidated customer account statements.
Technical Amendments
Section 109 of the bill makes technical amendments to the
list of general exceptions in section 502(e) of the GLBA, by
splitting an existing exception that deals with disclosures
to rating agencies and attorneys, and by adding a conforming
statutory reference.
Section 110: Definitions
``Financial Institution''
The financial privacy requirements of subtitle A of title V
of the GLBA apply to ``financial institutions,'' which are
defined as institutions the business of which is engaging in
activities that have been specified as ``financial
activities'' under certain statutes and regulations. The
GLBA, however, specifically excludes three types of entities
from the definition of ``financial institution.'' They are:
(1) any person or entity to the extent engaged in a financial
activity that is subject to the jurisdiction of the Commodity
Futures Trading Commission; (2) the institutions of the Farm
Credit System; and 3) institutions chartered by Congress to
engage in certain securitization or secondary market sale
transactions, as long as such institutions do not sell or
transfer nonpublic personal information to nonaffiliated
third parties. Section 109(1) of the bill eliminates these
exclusions in order to ensure consistency in the protection
of consumers' nonpublic personal information under the GLBA.
The bill preserves the existing general exception for
disclosures in connection with securitization or secondary
market sales transactions.
``Nonpublic Personal Information''
Section 110(2) of the bill revises the definition of
``nonpublic personal information'' in order to clarify that
the term includes a consumer's Social Security number. This
provision also clarifies that publicly available information
about consumers also would be covered whether or not that
information is disclosed as part of a larger list of
consumers or as it pertains to an individual consumer. Under
current law, this type of information is covered only if it
is part of a list of more than one consumer.
``Consumer''
Under the GLBA, the term ``consumer'' is defined as an
individual who obtains a financial product or service from a
financial institution for personal, family, or household
purposes, or such person's legal representative. Section
109(3) of the bill amends the definition of ``consumer'' to
clarify that the term includes an individual who applies for,
but does not necessarily obtain, such products or services
from a financial institution.
Section 111: Implementing Regulations
Section 110(a) of the bill authorizes the federal
regulators who have rulemaking authority under subtitle A of
title V of the GLBA to issue regulations implementing the
amendments made by the bill. The bill requires these agencies
to include in their regulations requirements they determine
are appropriate to prevent circumvention or evasion of any of
the bill's requirements. Section 110(b) provides that in
issuing their regulations, the agencies must follow the
procedures and requirements set forth in section 504(a) of
the GLBA that currently apply to their rulemaking authority.
Specifically, the agencies must consult with each other and
with representatives of state insurance authorities, and must
issue consistent and comparable rules, to the extent
possible. The statutory deadline in section 504(a)(3), which
is set in relation to the date of the enactment of the GLBA,
is obsolete for purposes of the regulations implementing this
bill, and therefore does not apply.
Section 112: FTC Rulemaking Authority Under the Fair Credit
Reporting Act (FCRA)
Section 112 of the bill amends section 621(e) of FCRA by
establishing rulemaking authority for the Federal Trade
Commission. This amendment creates parity with the federal
banking agencies and the National Credit Union
Administration, which each obtained rulemaking authority
under the FCRA for their respective regulated entities
pursuant to section 506 of the GLBA. Extending this authority
to the FTC fills a gap in administrative enforcement under
the FCRA.

Mr. SARBANES. Mr. President, I rise today to address a very important
issue: the protection of every American's personal, sensitive,
financial and medical information which is held by their financial
institutions. I am pleased to join Senator Leahy, the chairman of the
Senate Democratic Privacy Task Force, and Senators Dodd, Kerry, Bryan,
Edwards, Robb, Durbin, Harkin, and Feinstein in co-sponsoring the
Financial Information Privacy Protection Act.
This bill, submitted to us by the Clinton-Gore Administration, seeks
to

[[Page S3537]]

protect a fundamental right of privacy for every American who entrusts
his or her highly sensitive and confidential financial and medical
information to a financial institution.
Every American should at least have the opportunity to say `no' if he
or she does not want that nonpublic information disclosed. Every
American should have the right to have especially sensitive information
held by his or her financial institution kept confidential unless
consent is given. Every American should be allowed to make certain that
the information to be shared is accurate and, if not, to have it
corrected. And these rights should be enforced.
Mr. President, the Financial Information Privacy Protection Act would
accomplish these objectives.
Few Americans understand that, under current Federal law, a financial
institution could take information it obtained about a customer through
his or her transactions, and sell or transfer that information to an
affiliated party without the customer being able to object. And that
customer has no right to get access to or to correct that information.
The amount of information that could be disclosed is enormous. It
includes, for example:
Savings and checking account balances;
Certificate of deposit maturity dates and balances;
Checks an individual writes;
Checks deposited into a customer's account;
Stock and mutual fund purchases and sales;
Life insurance payouts; and
Health insurance claims.
Today's technology makes it easier, faster, and less costly than ever
for institutions to have immediate access to large amounts of customer
information; to analyze that data; and to send that data to others.
Banks, securities firms, and insurance companies are increasingly
affiliating and cross-marketing and, in the process, they are selling
the products of affiliates to existing customers. This can entail the
warehousing of large amounts of highly sensitive customer information
and selling it to or sharing it with other companies, for purposes
unknown to the customer. While cross-marketing can bring new and
beneficial products to receptive consumers, it can also result in
unwanted invasions of personal privacy.
Surveys show that the public is widely concerned about privacy. Major
corporations have bumped up against privacy concerns when expanding
their marketing services. Citizen groups have expressed serious
concerns about the privacy implications of financial institutions'
sharing or selling the information they collect without the knowledge
of the party involved.
Along with medical records, financial records rank among the kinds of
personal data Americans most expect will be kept from prying eyes. As
with medical data, though, the privacy of even highly sensitive
financial data has been increasingly put at risk by mergers, electronic
data-swapping and the move to an economy in which the selling of other
people's personal information is highly profitable--and legal.
On January 19, 1999, I introduced the Financial Information Privacy
Act of 1999 (S. 187) to provide consumers with important privacy
protections for their financial information. Some of these protections
are reflected in this bill, including a right for consumers to object,
or opt out, of their financial institutions sharing with affiliates
customer information, such as account transactions, balances and
maturity dates as well as rights for the consumer to have access to and
to correct mistakes in information that would be shared.
The Gramm-Leach-Bliley Act, enacted last November, contained some
limited federal financial privacy protections for consumers. While an
important beginning, these protections failed to meet the expectations
of Americans and did not contain the important protections that I have
just referred to.
When the President signed the Gramm-Leach-Bliley Act, he observed
that the privacy protections contained in the new legislation were
inadequate. In his State of the Union Address this year, the President
reiterated the need for stronger privacy legislation. Last Sunday, the
President announced a proposal for improved financial privacy
protections. He said, ``We can't let breakthroughs in technology break
down walls of privacy.'' I agree and applaud the Clinton-Gore
Administration's proposal as an important step forward.
The Financial Privacy Protection Act reflects the Administration's
proposal and contains important financial privacy protections.
The Act would provide an ``opt out'' for affiliate sharing, allowing
customers to object to a financial institution's sharing customer
financial data with any affiliated firms.
It also would provide an ``opt in'' for sharing some types of
``sensitive information.'' A financial institution would need to have a
consumer's affirmative consent before releasing his or her medical
information or personal spending habits, reflected on checks written
and credit card charges, to either an affiliate or an unaffiliated
third party.
The Act also provides consumers with rights of access and correction.
A consumer would be able to see the information to be released and
correct material errors.
The Act also requires financial institutions to make privacy notices
available to consumers who request them and makes other important
improvements to the law.
As we proceed in an age of technological advances and cross-industry
marketing of financial services, we need to be mindful of the privacy
concerns of the American public. I ask myself the question, ``Whose
information is this, the individual's or the institution's?'' I believe
it is the individual's.
Consumers who wish to keep their sensitive financial and medical
information private should be given a right to do so. The passage of
the Financial Information Privacy Act would be a step toward that goal.
Mr. DODD. Mr. President, after numerous unsuccessful attempts, last
year, Congress enacted legislation to modernize our nation's financial
services laws. This important legislation will help to provide
consumers greater choices for financial products and services and will
also ensure that U.S. financial services companies are better equipped
to handle the challenges of competing in a global marketplace.
As part of the financial services modernization legislation, limited
provisions were included to help protect consumers' personal financial
privacy. While these provisions were constructive, I believe that
Congress must continue to press for the strongest possible privacy
protections for financial services consumers.
I rise today in support of legislation, the Financial Information
Privacy Protection Act of 2000, which affords additional privacy
protections for financial services consumers.
Although it does not fully address my concerns with respect to the
protection of financial and medical information, this legislation is a
modest, but important step, in ensuring what I believe to be
fundamental for all financial consumers, whether they execute their
transactions in person, by mail or phone, or online. Consumers should
have the ultimate control over the sharing of their personal financial
information.
This legislation provides that among affiliates of financial
institutions as well as to unaffiliated third parties, consumers would
be afforded the opportunity to ``op-out'' of the sharing of their
personal financial information.
Additionally, this legislation gives enhanced protection to
consumers' medical records. Under this legislation, financial
institutions would be required to obtain an affirmative consent from a
consumer before the consumer's medical information could be shared
among affiliates. Although I believe this is an important component in
safeguarding the privacy of medical information, I continue to believe
that it is critical we pass comprehensive medical privacy legislation
this year so that consumers can be assured that their medical
information is protected regardless of the context in which it
generated or used.
As we continue to wrestle with finding the proper balance between the
providing new financial products and services while at the same time
providing consumers with the strongest possible protections for their
personal financial and medical information, This legislation is a
positive step in the right direction.

[[Page S3538]]

______

By Mr. GRAMS (for himself, Mr. Sessions, and Mr. Allard):
S. 2514. A bill to improve benefits for members of the reserve
components of the Armed Forces and their dependents; to the Committee
on Armed Services.

fairness for the military reserve act of 2000

<bullet> Mr. GRAMS. Mr. President, I ask unanimous consent that the
text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 2514

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Fairness for the Military
Reserve Act of 2000''.

SEC. 2. TRAVEL BY RESERVES ON MILITARY AIRCRAFT OUTSIDE
CONTINENTAL UNITED STATES.

(a) Space-Required Travel for Travel to Duty Stations
OCONUS.--(1) Subsection (a) of section 18505 of title 10,
United States Code, is amended--
(A) by inserting ``annual training duty or'' before
``inactive-duty training'' both places it appears; and
(B) by inserting ``duty or'' before ``training if''.
(2) The heading of such section is amended to read as
follows:

``Sec. 18505. Space-required travel: Reserves traveling to
annual training duty or inactive-duty training OCONUS''.

(b) Space-Available Travel for Members of Selected Reserve
and Gray Area Retirees.--(1) Chapter 1805 of such title is
amended by adding at the end the following new section:

``Sec. 18506. Space-available travel: Selected Reserve
members and reserve retirees under age 60; dependents

``(a) Eligibility for Space-Available Travel.--The
Secretary of Defense shall prescribe regulations to provide
persons described in subsection (b) with transportation on
aircraft of the Department of Defense on a space-available
basis under the same terms and conditions (including terms
and conditions applicable to travel outside the United
States) as apply to members and former members of the armed
forces entitled to retired pay.
``(b) Eligible Persons.--Subsection (a) applies to the
following persons:
``(1) A person who is a member of the Selected Reserve in
good standing (as determined by the Secretary concerned).
``(2) A person who is a member or former member of a
reserve component under age 60 who, but for age, would be
entitled to retired pay under chapter 1223 of this title.
``(c) Dependents.--A dependent of a person described in
subsection (b) shall be provided transportation under this
section on the same basis as dependents of members and former
members of the armed forces entitled to retired pay.
``(d) Limitation on Required Identification.--Neither the
`Authentication of Reserve Status for Travel Eligibility'
form (DD Form 1853) nor any other form, other military
identification and duty orders or other forms of
identification required of active duty personnel, may be
required to be presented by persons requesting space-
available transportation within or outside the continental
United States under this section.
``(e) Dependent Defined.--In this section, the term
`dependent' has the meanings given that term in subparagraphs
(A), (B), (C), (D), and (I) of section 1074(2) of this
title.''.
(2) The table of sections at the beginning of such chapter
is amended by striking the item relating to section 18505 and
inserting the following:

``18505. Space-required travel: Reserves traveling to annual training
duty or inactive-duty training OCONUS.
``18506. Space-available travel: Selected Reserve members and reserve
retirees under age 60; dependents.''.
(c) Effective Date.--The regulations required under section
18506 of title 10, United States Code, as added by subsection
(b), shall be prescribed not later than 180 days after the
date of the enactment of this Act.

SEC. 3. BILLETING SERVICES FOR RESERVE MEMBERS TRAVELING FOR
INACTIVE DUTY TRAINING.

(a) In General.--(1) Chapter 1217 of title 10, United
States Code, is amended by inserting after section 12603 the
following new section:

``Sec. 12604. Billeting in Department of Defense facilities:
Reserves attending inactive-duty training

``(a) Authority for Billeting on Same Basis as Active Duty
Members Traveling Under Orders.--The Secretary of Defense
shall prescribe regulations authorizing a Reserve traveling
to inactive-duty training at a location more than 50 miles
from that Reserve's residence to be eligible for billeting in
Department of Defense facilities on the same basis and to the
same extent as a member of the armed forces on active duty
who is traveling under orders away from the member's
permanent duty station.
``(b) Proof of Reason for Travel.--The Secretary shall
include in the regulations the means for confirming a
Reserve's eligibility for billeting under subsection (a).''.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
12603 the following new item:

``12604. Billeting in Department of Defense facilities: Reserves
attending inactive-duty training.
(b) Effective Date.--Section 12604 of title 10, United
States Code, as added by subsection (a), shall apply with
respect to periods of inactive-duty training beginning more
than 180 days after the date of the enactment of this Act.

SEC. 4. INCREASE IN MAXIMUM NUMBER OF RESERVE RETIREMENT
POINTS THAT MAY BE CREDITED IN ANY YEAR.

Section 12733(3) of title 10, United States Code, is
amended by striking ``but not more than'' and all that
follows and inserting ``but not more than--
``(A) 60 days in any one year of service before the year of
service that includes September 23, 1996;
``(B) 75 days in the year of service that includes
September 23, 1996, and in any subsequent year of service
before the year of service that includes the date of the
enactment of the Reserve Components Equity Act of 2000; and
``(C) 90 days in the year of service that includes the date
of the enactment of the Reserve Components Equity Act of 2000
and in any subsequent year of service.''.

SEC. 5. AUTHORITY FOR PROVISION OF LEGAL SERVICES TO RESERVE
COMPONENT MEMBERS FOLLOWING RELEASE FROM ACTIVE
DUTY.

(a) Legal Services.--Section 1044(a) of title 10, United
States Code, is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph (4):
``(4) Members of reserve components of the armed forces not
covered by paragraph (1) or (2) following release from active
duty under a call or order to active duty for more than 30
days issued under a mobilization authority (as determined by
the Secretary of Defense), but only during the period that
begins on the date of the release and is equal to twice the
length of the period served on active duty under such call or
order to active duty.''.
(b) Dependents.--Paragraph (5) of such section, as
redesignated by subsection (a)(1), is amended by striking
``and (3)'' and inserting ``(3), and (4)''.
(c) Implementing Regulations.--Regulations to implement the
amendments made by this section shall be prescribed not later
than 180 days after the date of the enactment of this
Act.<bullet>
______

By Mr. ROCKEFELLER:
S. 2515. A bill to amend the Social Security Act to guarantee
comprehensive health care coverage for all children born after 2001; to
the Committee on Finance.

MEDIKIDS HEALTH INSURANCE ACT OF 2000

<bullet> Mr. ROCKEFELLER. Mr. President, I am pleased and proud to
introduce the MediKids Health Insurance Act of 2000. Congressman Stark
is introducing a companion bill in the House.
This legislation is, without a doubt, ambitious. It is a deliberate
effort to try to ignite a national commitment to the goal of insuring
all of our children. For some, that is an idealistic proposition that
does not seem achievable. With this bill, I want to call on the public
and my colleagues to consider once again the clear and convincing case
for investing the necessary resources in the health of our children--
and therefore, in the well-being of their families and our entire
country. I will continue to work hard on every possible step to achieve
this ultimate goal, but with this legislation, I urge lawmakers, health
care professionals, and citizens to recognize the imperative of
reaching that goal sooner rather than later.
Our children are not only our future, they are also our present. What
we do for them today will greatly affect what happens tomorrow. Yet
even though we recognize these facts, we still have not found a way to
guarantee health coverage for children. Without health insurance, many
of these children go without health care all together.
Children are the least expensive segment of our population to insure.
They are also the least able to have control over whether or not they
have health insurance. Yet we now have over 11 million uninsured
children in this country. And this number is steadily climbing higher
and higher every year.
Our success in expanding Medicaid and passing the State Children's
Health Insurance Program was a meaningful, significant start at closing
the tragic gap represented by millions of uninsured children. However,
Congress

[[Page S3539]]

cannot point to these programs and declare that our work is done. We
still have much more to do. The percent of children in low-income
families without health insurance has not changed in recent years. Even
with perfect enrollment in S-CHIP and Medicaid, there would still be a
great number of children without health insurance.
This is partially due to our increasingly mobile society, where
parents frequently change jobs and families often move from state to
state. When this occurs there is often a lapse in health coverage.
Also, families working their way out of welfare fluctuate between
eligibility and ineligibility for means-tested assistance programs.
Another reason for the number of uninsured children is that the cost of
health insurance continues to increase, leaving many working parents
unable to afford coverage for themselves or their families. All of this
adds up to the fact that many of our children do not have the
consistent and regular access to health care which they need to grow up
healthy.
That is why I am introducing the MediKids Health Insurance Act of
2000. This bill would automatically enroll every child at birth into a
new, comprehensive federal safety net health insurance program
beginning in 2002. The benefits would be tailored to the needs of
children and would be similar to those currently available to children
under Medicaid. A small monthly premium would be collected from parents
at tax filing, with discounts to low-income families phasing out at
300% of poverty. The children would remain enrolled in MediKids
throughout childhood. When they are covered by another health insurance
program, their parents would be exempt from the premium. The key to our
program is that whenever other sources of health insurance fail,
MediKids would stand ready to cover the health needs of our next
generation. By the year 2020, every child in America would be able to
grow up with consistent, continuous health insurance coverage. Like
Medicare, MediKids would be independently financed, would cover
benefits tailored to the needs of its target population, and would have
the goal of achieving nearly 100% health insurance coverage for the
children of this country--just as Medicare has done for our nation's
seniors and disabled population. It's time we make this investment in
the future of America by guaranteeing all children the health coverage
they need to make a healthy start in life. The MediKids Health
Insurance Act would offer guaranteed, automatic health coverage for
every child with the simplest of enrollment procedures and no
challenging outreach, paperwork, or re-determination hoops to jump
through. It would be able to follow children across state lines, or
tide them over in a new location until their parents can enroll them in
a new insurance program. Between jobs or during family crises such as
divorce or the death of a parent, it would offer extra security and
ensure continuous health coverage to the nation's children. During that
critical period when a family is just climbing out of poverty and out
of the eligibility range for means-tested assistance programs, it would
provide an extra boost with health insurance for the children until the
parents can move into jobs that provide reliable health insurance
coverage. And every child would automatically be enrolled upon birth,
along with the issuance of the birth certificate or immigration card.

As we all know, an ounce of prevention is worth a pound of cure.
Providing health care coverage to children affects much more than their
health--it affects their ability to learn, their ability to thrive, and
their ability to become a productive member of society. I look forward
to working with my colleagues and supporting organizations for the
passage of the MediKids Health Insurance Act of 2000 to guarantee every
child in America the health coverage they need to grow up healthy.
Mr. President, I stand before you today to deliver a message. That is
that it is time to rekindle the discussion about how we are going to
provide health insurance for all Americans. The bill I am introducing
today--the MediKids Health Insurance Act of 2000--is a step toward
eliminating the irrational and tragic lack of health insurance for so
many children and adults in our country.
Partial solutions to America's ``uninsured crisis'' lie before
Congress, and I recognize the sense of realism and care that are the
basis for proposing incremental steps towards universal coverage. As
someone involved in the tough battles in years past to achieve
universal coverage, I will continue to do all I can to make whatever
progress can be made each and every year.
But I also believe it is important to not lose sight of the ideal--
and our capacity to reach that ideal--of the United States of America
joining every other industrialized nation by ensuring that its citizens
have basic health insurance. Until we succeed, millions of children and
adults will suffer human and financial costs that are preventable.
Therefore, Mr. President, I offer this legislation to both enlist my
colleagues in an effort to insist that all of our nation's children are
insured as quickly as possible and to lay out the steps that would
achieve that goal. At a time when Congress seems stalled by politics
and paralysis, and is therefore failing to make any tangible progress
in dealing with rising number of uninsured Americans, I hope this bill
will help to build the will and momentum so desperately needed by our
children for action that will change their lives and strengthen our
very nation. I ask my colleagues from both sides of the aisle to join
as co-sponsors.
Mr. President, I ask unanimous consent that the text of the bill and
a summary be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

S. 2515

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; FINDINGS.

(a) Short Title.--This Act may be cited as the ``MediKids
Health Insurance Act of 2000''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents; findings.
Sec. 2. Benefits for all children born after 2001.

``TITLE XXII--MEDIKIDS PROGRAM

``Sec. 2201. Eligibility.
``Sec. 2202. Benefits.
``Sec. 2203. Premiums.
``Sec. 2204. MediKids Trust Fund.
``Sec. 2205. Oversight and accountability.
``Sec. 2206. Addition of care coordination services.
``Sec. 2207. Administration and miscellaneous.
Sec. 3. MediKids premium.
Sec. 4. Refundable credit for cost-sharing expenses under MediKids
program.
Sec. 5. Financing from tobacco liability payments.
Sec. 6. Report on long-term revenues.
(c) Findings.--Congress finds the following:
(1) More than 11 million American children are uninsured.
(2) Children who are uninsured receive less medical care
and less preventive care and have a poorer level of health,
which result in lifetime costs to themselves and to the
entire American economy.
(3) Although SCHIP and Medicaid are successfully extending
a health coverage safety net to a growing portion of the
vulnerable low-income population of uninsured children, we
now see that they alone cannot achieve 100 percent health
insurance coverage for our nation's children due to
inevitable gaps during outreach and enrollment, fluctuations
in eligibility, and variations in access to private insurance
at all income levels.
(4) As all segments of our society continue to become more
and more transient, with many changes in employment over the
working lifetime of parents, the need for a reliable safety
net of health insurance which follows children across State
lines, already a major problem for the children of migrant
and seasonal farmworkers, will become a major concern for all
families in the United States.
(5) The Medicare program has successfully evolved over the
years to provide a stable, universal source of health
insurance for the nation's disabled and those over age 65,
and therefore provides a tested model for designing a program
to reach out to America's children
(6) The problem of insuring 100 percent of all American
children could be gradually solved by automatically enrolling
all children born after December 31, 2001, in a program
modeled after Medicare (and to be known as ``MediKids''), and
allowing those children to be transferred into other
equivalent or better insurance programs, including either
private insurance, SCHIP, or Medicaid, if they are eligible
to do so, but maintaining the child's default enrollment in
MediKids for any times when the child's access to other
sources of insurance is lost.

[[Page S3540]]

(7) A family's freedom of choice to use other insurers to
cover children would not be interfered with in any way, and
children eligible for SCHIP and Medicaid would continue to be
enrolled in those programs, but the underlying safety net of
MediKids would always be available to cover any gaps in
insurance due to changes in medical condition, employment,
income, or marital status, or other changes affecting a
child's access to alternate forms of insurance.
(8) The MediKids program can be administered without
impacting the finances or status of the existing Medicare
program.
(9) The MediKids benefit package can be tailored to the
special needs of children and updated over time.
(10) The financing of the program can be administered
without difficulty by a yearly payment of affordable premiums
through a family's tax filing (or adjustment of a family's
earned income tax credit).
(11) The cost of the program will gradually rise as the
number of children using MediKids as the insurer of last
resort increases, and a future Congress always can accelerate
or slow down the enrollment process as desired, while the
societal costs for emergency room usage, lost productivity
and work days, and poor health status for the next generation
of Americans will decline.
(12) Over time 100 percent of American children will always
have basic health insurance, and we can therefore expect a
healthier, more equitable, and more productive society.

SEC. 2. BENEFITS FOR ALL CHILDREN BORN AFTER 2001.

(a) In General.--The Social Security Act is amended by
adding at the end the following new title:

``TITLE XXII--MEDIKIDS PROGRAM

``SEC. 2201. ELIGIBILITY.

``(a) Eligibility of Individuals Born After December 31,
2001.--An individual who meets the following requirements
with respect to a month is eligible to enroll under this
title with respect to such month:
``(1) Age.--The individual is born after December 31, 2001,
and has not attained 23 years of age.
``(2) Citizenship.--The individual is a citizen or national
of the United States or is permanently residing in the United
States under color of law.
``(b) Enrollment Process.--An individual may enroll in the
program established under this title only in such manner and
form as may be prescribed by regulations, and only during an
enrollment period prescribed by the Secretary consistent with
the provisions of this section. Such regulations shall
provide a process under which--
``(1) individuals who are born in the United States after
December 31, 2001, are deemed to be enrolled at the time of
birth and a parent or guardian of such an individual is
permitted to pre-enroll in the month prior to the expected
month of birth;
``(2) individuals who are born outside the United States
after such date and who become eligible to enroll by virtue
of immigration into (or an adjustment of immigration status
in) the United States are deemed enrolled at the time of
entry or adjustment of status;
``(3) eligible individuals may otherwise be enrolled at
such other times and manner as the Secretary shall specify,
including the use of outstationed eligibility sites as
described in section 1902(a)(55)(A) and the use of
presumptive eligibility provisions like those described in
section 1920A; and
``(4) at the time of automatic enrollment of a child, the
Secretary provides for issuance to a parent or custodian of
the individual a card evidencing coverage under this title
and for a description of such coverage.
The provisions of section 1837(h) apply with respect to
enrollment under this title in the same manner as they apply
to enrollment under part B of title XVIII.
``(c) Date Coverage Begins.--
``(1) In general.--The period during which an individual is
entitled to benefits under this title shall begin as follows,
but in no case earlier than January 1, 2002:
``(A) In the case of an individual who is enrolled under
paragraph (1) or (2) of subsection (b), the date of birth or
date of obtaining appropriate citizenship or immigration
status, as the case may be.
``(B) In the case of an another individual who enrolls
(including pre-enrolls) before the month in which the
individual satisfies eligibility for enrollment under
subsection (a), the first day of such month of eligibility.
``(C) In the case of an another individual who enrolls
during or after the month in which the individual first
satisfies eligibility for enrollment under such subsection,
the first day of the following month.
``(2) Authority to provide for partial months of
coverage.--Under regulations, the Secretary may, in the
Secretary's discretion, provide for coverage periods that
include portions of a month in order to avoid lapses of
coverage.
``(3) Limitation on payments.--No payments may be made
under this title with respect to the expenses of an
individual enrolled under this title unless such expenses
were incurred by such individual during a period which, with
respect to the individual, is a coverage period under this
section.
``(d) Expiration of Eligibility.--An individual's coverage
period under this part shall continue until the individual's
enrollment has been terminated because the individual no
longer meets the requirements of subsection (a) (whether
because of age or change in immigration status).
``(e) Entitlement to MediKids Benefits For Enrolled
Individuals.--An individual enrolled under this section is
entitled to the benefits described in section 2202.
``(f) Low-Income Information.--At the time of enrollment of
a child under this title, the Secretary shall make an inquiry
as to whether or not the family income of the family that
includes the child is less than 150 percent of the poverty
line for a family of the size involved. If the family income
is below such level, the Secretary shall encode in the
identification card issued in connection with eligibility
under this title a code indicating such fact. The Secretary
also shall provide for a toll-free telephone line at which
providers can verify whether or not such a child is in a
family the income of which is below such level.
``(g) Construction.--Nothing in this title shall be
construed as requiring (or preventing) an individual who is
enrolled under this section from seeking medical assistance
under a State medicaid plan under title XIX or child health
assistance under a State child health plan under title XXI.

``SEC. 2202. BENEFITS.

``(a) Secretarial Specification of Benefit Package.--
``(1) In general.--The Secretary shall specify the benefits
to be made available under this title consistent with the
provisions of this section and in a manner designed to meet
the health needs of children.
``(2) Updating.--The Secretary shall update the
specification of benefits over time to ensure the inclusion
of age-appropriate benefits as the enrollee population gets
older.
``(3) Annual updating.--The Secretary shall establish
procedures for the annual review and updating of such
benefits to account for changes in medical practice, new
information from medical research, and other relevant
developments in health science.
``(4) Input.--The Secretary shall seek the input of the
pediatric community in specifying and updating such benefits.
``(b) Inclusion of Certain Benefits.--
``(1) Medicare core benefits.--Such benefits shall include
(to the extent consistent with other provisions of this
section) at least the same benefits (including coverage,
access, availability, duration, and beneficiary rights) that
are available under parts A and B of title XVIII.
``(2) All required medicaid benefits.--Such benefits shall
also include all items and services for which medical
assistance is required to be provided under section
1902(a)(10)(A) to individuals described in such section,
including early and periodic screening, diagnostic services,
and treatment services.
``(3) Inclusion of prescription drugs.--Such benefits also
shall include (as specified by the Secretary) prescription
drugs and biologicals.
``(4) Cost-sharing.--
``(A) In general.--Subject to subparagraph (B), such
benefits also shall include the cost-sharing (in the form of
deductibles, coinsurance, and copayments) applicable under
title XVIII with respect to comparable items and services,
except that no cost-sharing shall be imposed with respect to
early and periodic screening and diagnostic services included
under paragraph (2).
``(B) No cost-sharing for lowest income children.--Such
benefits shall not include any cost-sharing for children in
families the income of which (as determined for purposes of
section 1905(p)) does not exceed 150 percent of the official
income poverty line (referred to in such section) applicable
to a family of the size involved.
``(C) Refundable credit for cost-sharing for other low-
income children.--For a refundable credit for cost-sharing in
the case of children in certain families, see section 35 of
the Internal Revenue Code of 1986.
``(c) Payment Schedule.--The Secretary, with the assistance
of the Medicare Payment Advisory Commission, shall develop
and implement a payment schedule for benefits covered under
this title. To the extent feasible, such payment schedule
shall be consistent with comparable payment schedules and
reimbursement methodologies applied under parts A and B of
title XVIII.
``(d) Input.--The Secretary shall specify such benefits and
payment schedules only after obtaining input from appropriate
child health providers and experts.
``(e) Enrollment in Health Plans.--The Secretary shall
provide for the offering of benefits under this title through
enrollment in a health benefit plan that meets the same (or
similar) requirements as the requirements that apply to
Medicare+Choice plans under part C of title XVIII. In the
case of individuals enrolled under this title in such a plan,
the Medicare+Choice capitation rate described in section
1853(c) shall be adjusted in an appropriate manner to reflect
differences between the population served under this title
and the population under title XVIII.

``SEC. 2203. PREMIUMS.

``(a) Amount of Monthly Premiums.--
``(1) In general.--The Secretary shall, during September of
each year (beginning with 2001), establish a monthly MediKids
premium. Subject to paragraph (2), the monthly MediKids
premium for a year is equal to \1/12\ of the annual premium
rate computed under subsection (b).

[[Page S3541]]

``(2) Elimination of monthly premium for demonstration of
equivalent coverage (including coverage under low-income
programs).--The amount of the monthly premium imposed under
this section for an individual for a month shall be zero in
the case of an individual who demonstrates to the
satisfaction of the Secretary that the individual has basic
health insurance coverage for that month the actuarial value
of which, as determined by the Secretary, is at least
actuarially equivalent to the benefits available under this
title. For purposes of the previous sentence enrollment in a
medicaid plan under title XIX, a State child health insurance
plan under title XXI, or under the medicare program under
title XVIII is deemed to constitute basic health insurance
coverage described in such sentence.
``(b) Annual Premium.--
``(1) National, per capita average.--The Secretary shall
estimate the average, annual per capita amount that would be
payable under this title with respect to individuals residing
in the United States who meet the requirement of section
2201(a)(1) as if all such individuals were eligible for (and
enrolled) under this title during the entire year (and
assuming that section 1862(b)(2)(A)(i) did not apply).
``(2) Annual premium.--Subject to subsection (d), the
annual premium under this subsection for months in a year is
equal to the average, annual per capita amount estimated
under paragraph (1) for the year.
``(c) Payment of Monthly Premium.--
``(1) Period of payment.--In the case of an individual who
participates in the program established by this title,
subject to subsection (d), the monthly premium shall be
payable for the period commencing with the first month of the
individual's coverage period and ending with the month in
which the individual's coverage under this title terminates.
``(2) Collection through tax return.--For provisions
providing for the payment of monthly premiums under this
subsection, see section 59B of the Internal Revenue Code of
1986.
``(3) Protections against fraud and abuse.--The Secretary
shall develop, in coordination with States and other health
insurance issuers, administrative systems to ensure that
claims which are submitted to more than one payor are
coordinated and duplicate payments are not made.
``(d) Reduction in Premium for Certain Low-Income
Families.--For provisions reducing the premium under this
section for certain low-income families, see section 59B(c)
of the Internal Revenue Code of 1986.

``SEC. 2204. MEDIKIDS TRUST FUND.

``(a) Establishment of Trust Fund.--
``(1) In general.--There is hereby created on the books of
the Treasury of the United States a trust fund to be known as
the `MediKids Trust Fund' (in this section referred to as the
`Trust Fund'). The Trust Fund shall consist of such gifts and
bequests as may be made as provided in section 201(i)(1) and
such amounts as may be deposited in, or appropriated to, such
fund as provided in this title.
``(2) Premiums.--Premiums collected under section 2203
shall be transferred to the Trust Fund.
``(b) Incorporation of Provisions.--
``(1) In general.--Subject to paragraph (2), subsections
(b) through (i) of section 1841 shall apply with respect to
the Trust Fund and this title in the same manner as they
apply with respect to the Federal Supplementary Medical
Insurance Trust Fund and part B, respectively.
``(2) Miscellaneous references.--In applying provisions of
section 1841 under paragraph (1)--
``(A) any reference in such section to `this part' is
construed to refer to title XXII;
``(B) any reference in section 1841(h) to section 1840(d)
and in section 1841(i) to sections 1840(b)(1) and 1842(g) are
deemed references to comparable authority exercised under
this title;
``(C) payments may be made under section 1841(g) to the
Trust Funds under sections 1817 and 1841 as reimbursement to
such funds for payments they made for benefits provided under
this title; and
``(D) the Board of Trustees of the MediKids Trust Fund
shall be the same as the Board of Trustees of the Federal
Supplementary Medical Insurance Trust Fund.

``SEC. 2205. OVERSIGHT AND ACCOUNTABILITY.

``(a) Through Annual Reports of Trustees.--The Board of
Trustees of the MediKids Trust Fund under section 2204(b)(1)
shall report on an annual basis to Congress concerning the
status of the Trust Fund and the need for adjustments in the
program under this title to maintain financial solvency of
the program under this title.
``(b) Periodic GAO Reports.--The Comptroller General of the
United States shall periodically submit to Congress reports
on the adequacy of the financing of coverage provided under
this title. The Comptroller General shall include in such
report such recommendations for adjustments in such financing
and coverage as the Comptroller General deems appropriate in
order to maintain financial solvency of the program under
this title.

``SEC. 2206. INCLUSION OF CARE COORDINATION SERVICES.

``(a) In General.--
``(1) Program authority.--The Secretary, beginning in 2002,
may implement a care coordination services program in
accordance with the provisions of this section under which,
in appropriate circumstances, eligible individuals may elect
to have health care services covered under this title managed
and coordinated by a designated care coordinator.
``(2) Administration by contract.--The Secretary may
administer the program under this section through a contract
with an appropriate program administrator.
``(3) Coverage.--Care coordination services furnished in
accordance with this section shall be treated under this
title as if they were included in the definition of medical
and other health services under section 1861(s) and benefits
shall be available under this title with respect to such
services without the application of any deductible or
coinsurance.
``(b) Eligibility Criteria; Identification and Notification
of Eligible Individuals.--
``(1) Individual eligibility criteria.--The Secretary shall
specify criteria to be used in making a determination as to
whether an individual may appropriately be enrolled in the
care coordination services program under this section, which
shall include at least a finding by the Secretary that for
cohorts of individuals with characteristics identified by the
Secretary, professional management and coordination of care
can reasonably be expected to improve processes or outcomes
of health care and to reduce aggregate costs to the programs
under this title.
``(2) Procedures to facilitate enrollment.--The Secretary
shall develop and implement procedures designed to facilitate
enrollment of eligible individuals in the program under this
section.
``(c) Enrollment of Individuals.--
``(1) Secretary's determination of eligibility.--The
Secretary shall determine the eligibility for services under
this section of individuals who are enrolled in the program
under this section and who make application for such services
in such form and manner as the Secretary may prescribe.
``(2) Enrollment period.--
``(A) Effective date and duration.--Enrollment of an
individual in the program under this section shall be
effective as of the first day of the month following the
month in which the Secretary approves the individual's
application under paragraph (1), shall remain in effect for
one month (or such longer period as the Secretary may
specify), and shall be automatically renewed for additional
periods, unless terminated in accordance with such procedures
as the Secretary shall establish by regulation. Such
procedures shall permit an individual to disenroll for cause
at any time and without cause at re-enrollment intervals.
``(B) Limitation on reenrollment.--The Secretary may
establish limits on an individual's eligibility to reenroll
in the program under this section if the individual has
disenrolled from the program more than once during a
specified time period.
``(d) Program.--The care coordination services program
under this section shall include the following elements:
``(1) Basic care coordination services.--
``(A) In general.--Subject to the cost-effectiveness
criteria specified in subsection (b)(1), except as otherwise
provided in this section, enrolled individuals shall receive
services described in section 1905(t)(1) and may receive
additional items and services as described in subparagraph
(B).
``(B) Additional benefits.--The Secretary may specify
additional benefits for which payment would not otherwise be
made under this title that may be available to individuals
enrolled in the program under this section (subject to an
assessment by the care coordinator of an individual's
circumstance and need for such benefits) in order to
encourage enrollment in, or to improve the effectiveness of,
such program.
``(2) Care coordination requirement.--Notwithstanding any
other provision of this title, the Secretary may provide that
an individual enrolled in the program under this section may
be entitled to payment under this title for any specified
health care items or services only if the items or services
have been furnished by the care coordinator, or coordinated
through the care coordination services program. Under such
provision, the Secretary shall prescribe exceptions for
emergency medical services as described in section
1852(d)(3), and other exceptions determined by the Secretary
for the delivery of timely and needed care.
``(e) Care Coordinators.--
``(1) Conditions of participation.--In order to be
qualified to furnish care coordination services under this
section, an individual or entity shall--
``(A) be a health care professional or entity (which may
include physicians, physician group practices, or other
health care professionals or entities the Secretary may find
appropriate) meeting such conditions as the Secretary may
specify;
``(B) have entered into a care coordination agreement; and
``(C) meet such criteria as the Secretary may establish
(which may include experience in the provision of care
coordination or primary care physician's services).
``(2) Agreement term; payment.--
``(A) Duration and renewal.--A care coordination agreement
under this subsection shall be for one year and may be
renewed if the Secretary is satisfied that the care
coordinator continues to meet the conditions of participation
specified in paragraph (1).
``(B) Payment for services.--The Secretary may negotiate or
otherwise establish

[[Page S3542]]

payment terms and rates for services described in subsection
(d)(1).
``(C) Liability.--Case coordinators shall be subject to
liability for actual health damages which may be suffered by
recipients as a result of the care coordinator's decisions,
failure or delay in making decisions, or other actions as a
care coordinator.
``(D) Terms.--In addition to such other terms as the
Secretary may require, an agreement under this section shall
include the terms specified in subparagraphs (A) through (C)
of section 1905(t)(3).

``SEC. 2207. ADMINISTRATION AND MISCELLANEOUS.

``(a) In General.--Except as otherwise provided in this
title--
``(1) the Secretary shall enter into appropriate contracts
with providers of services, other health care providers,
carriers, and fiscal intermediaries, taking into account the
types of contracts used under title XVIII with respect to
such entities, to administer the program under this title;
``(2) individuals enrolled under this title shall be
treated for purposes of title XVIII as though the individual
were entitled to benefits under part A and enrolled under
part B of such title;
``(3) benefits described in section 2202 that are payable
under this title to such individuals shall be paid in a
manner specified by the Secretary (taking into account, and
based to the greatest extent practicable upon, the manner in
which they are provided under title XVIII);
``(4) provider participation agreements under title XVIII
shall apply to enrollees and benefits under this title in the
same manner as they apply to enrollees and benefits under
title XVIII; and
``(5) individuals entitled to benefits under this title may
elect to receive such benefits under health plans in a
manner, specified by the Secretary, similar to the manner
provided under part C of title XVIII.
``(b) Coordination with Medicaid and SCHIP.--
Notwithstanding any other provision of law, individuals
entitled to benefits for items and services under this title
who also qualify for benefits under title XIX or XXI or any
other Federally funded program may continue to qualify and
obtain benefits under such other title or program, and in
such case such an individual shall elect either--
``(1) such other title or program to be primary payor to
benefits under this title, in which case no benefits shall be
payable under this title and the monthly premium under
section 2203 shall be zero; or
``(2) benefits under this title shall be primary payor to
benefits provided under such program or title, in which case
the Secretary shall enter into agreements with States as may
be appropriate to provide that, in the case of such
individuals, the benefits under titles XIX and XXI or such
other program (including reduction of cost-sharing) are
provided on a `wrap-around' basis to the benefits under this
title.''.
(b) Conforming Amendments to Social Security Act
Provisions.--
(1) Section 201(i)(1) of the Social Security Act (42 U.S.C.
401(i)(1)) is amended by striking ``or the Federal
Supplementary Medical Insurance Trust Fund'' and inserting
``the Federal Supplementary Medical Insurance Trust Fund, and
the MediKids Trust Fund''.
(2) Section 201(g)(1)(A) of such Act (42 U.S.C.
401(g)(1)(A)) is amended by striking `` and the Federal
Supplementary Medical Insurance Trust Fund established by
title XVIII'' and inserting ``, the Federal Supplementary
Medical Insurance Trust Fund, and the MediKids Trust Fund
established by title XVIII''.
(3) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is
amended--
(A) in paragraph (1), by striking ``or (7)'' and inserting
``, (7), or (8)'', and
(B) by adding at the end the following:
``(8) Adjustment for medikids.--In applying this subsection
with respect to individuals entitled to benefits under title
XXII, the Secretary shall provide for an appropriate
adjustment in the Medicare+Choice capitation rate as may be
appropriate to reflect differences between the population
served under such title and the population under parts A and
B.''.
(c) Maintenance of Medicaid Eligibility and Benefits for
Children.--
(1) In general.--In order for a State to continue to be
eligible for payments under section 1903(a) of the Social
Security Act (42 U.S.C. 1396b(a))--
(A) the State may not reduce standards of eligibility, or
benefits, provided under its State medicaid plan under title
XIX of the Social Security Act or under its State child
health plan under title XXI of such Act for individuals under
23 years of age below such standards of eligibility, and
benefits, in effect on the date of the enactment of this Act;
and
(B) the State shall demonstrate to the satisfaction of the
Secretary of Health and Human Services that any savings in
State expenditures under title XIX or XXI of the Social
Security Act that results from children from enrolling under
title XXII of such Act shall be used in a manner that
improves services to beneficiaries under title XIX of such
Act, such as through increases in provider payment rates,
expansion of eligibility, improved nurse and nurse aide
staffing and improved inspections of nursing facilities, and
coverage of additional services.
(2) MediKids as primary payor.--In applying title XIX of
the Social Security Act, the MediKids program under title
XXII of such Act shall be treated as a primary payor in cases
in which the election described in section 2207(b)(2) of such
Act, as added by subsection (a), has been made.
(d) Expansion of MedPAC Membership to 19.--
(1) In general.--Section 1805(c) of the Social Security Act
(42 U.S.C. 1395b-6(c)) is amended--
(A) in paragraph (1), by striking ``17'' and inserting
``19''; and
(B) in paragraph (2)(B), by inserting ``experts in
children's health,'' after ``other health professionals,''.
(2) Initial terms of additional members.--
(A) In general.--For purposes of staggering the initial
terms of members of the Medicare Payment Advisory Commission
under section 1805(c)(3) of the Social Security Act (42
U.S.C. 1395b-6(c)(3)), the initial terms of the 2 additional
members of the Commission provided for by the amendment under
subsection (a)(1) are as follows:
(i) One member shall be appointed for 1 year.
(ii) One member shall be appointed for 2 years.
(B) Commencement of terms.--Such terms shall begin on
January 1, 2001.

SEC. 3. MEDIKIDS PREMIUM.

(a) General Rule.--Subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to determination of
tax liability) is amended by adding at the end the following
new part:

``PART VIII--MEDIKIDS PREMIUM

``Sec. 59B. MediKids premium.

``SEC. 59B. MEDIKIDS PREMIUM.

``(a) Imposition of Tax.--In the case of an individual to
whom this section applies, there is hereby imposed (in
addition to any other tax imposed by this subtitle) a
MediKids premium for the taxable year.
``(b) Individuals Subject to Premium.--
``(1) In general.--This section shall apply to an
individual if the taxpayer has a MediKid at any time during
the taxable year.
``(2) MediKid.--For purposes of this section, the term
`MediKid' means, with respect to a taxpayer, any individual
with respect to whom the taxpayer is required to pay a
premium under section 2203(c) of the Social Security Act for
any month of the taxable year.
``(c) Amount of Premium.--For purposes of this section, the
MediKids premium for a taxable year is the sum of the monthly
premiums under section 2203 of the Social Security Act for
months in the taxable year.
``(d) Exceptions Based on Adjusted Gross Income.--
``(1) Exemption for very low-income taxpayers.--
``(A) In general.--No premium shall be imposed by this
section on any taxpayer having an adjusted gross income not
in excess of the exemption amount.
``(B) Exemption amount.--For purposes of this paragraph,
the exemption amount is--
``(i) $16,300 in the case of a taxpayer having 1 MediKid,
``(ii) $19,950 in the case of a taxpayer having 2 MediKids,
``(iii) $25,550 in the case of a taxpayer having 3
MediKids, and
``(iv) $30,150 in the case of a taxpayer having 4 or more
MediKids.
``(C) Phaseout of exemption.--In the case of a taxpayer
having an adjusted gross income which exceeds the exemption
amount but does not exceed twice the exemption amount, the
premium shall be the amount which bears the same ratio to the
premium which would (but for this subparagraph) apply to the
taxpayer as such excess bears to the exemption amount.
``(D) Inflation adjustment of exemption amounts.--In the
case of any taxable year beginning in a calendar year after
2001, each dollar amount contained in subparagraph (C) shall
be increased by an amount equal to the product of--
``(i) such dollar amount, and
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `calendar year 1999'
for `calendar year 1992' in subparagraph (B) thereof.
If any increase determined under the preceding sentence is
not a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.
``(2) Premium limited to 5 percent of adjusted gross
income.--In no event shall any taxpayer be required to pay a
premium under this section in excess of an amount equal to 5
percent of the taxpayer's adjusted gross income.
``(e) Coordination With Other Provisions.--
``(1) Not treated as medical expense.--For purposes of this
chapter, any premium paid under this section shall not be
treated as expense for medical care.
``(2) Not treated as tax for certain purposes.--The premium
paid under this section shall not be treated as a tax imposed
by this chapter for purposes of determining--
``(A) the amount of any credit allowable under this
chapter, or
``(B) the amount of the minimum tax imposed by section 55.
``(3) Treatment under subtitle f.--For purposes of subtitle
F, the premium paid under this section shall be treated as if
it were a tax imposed by section 1.''.
(b) Technical Amendments.--

[[Page S3543]]

(1) Subsection (a) of section 6012 of such Code is amended
by inserting after paragraph (9) the following new paragraph:
``(10) Every individual liable for a premium under section
59B.''.
(2) The table of parts for subchapter A of chapter 1 of
such Code is amended by adding at the end the following new
item:

``Part VIII. MediKids premium.''.
(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 2001, in
taxable years ending after such date.

SEC. 4. REFUNDABLE CREDIT FOR COST-SHARING EXPENSES UNDER
MEDIKIDS PROGRAM.

(a) In General.--Subpart C of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
refundable credits) is amended by redesignating section 35 as
section 36 and by inserting after section 34 the following
new section:

``SEC. 35. COST-SHARING EXPENSES UNDER MEDIKIDS PROGRAM.

``(a) Allowance of Credit.--In the case of an individual
who has a MediKid (as defined in section 59B) at any time
during the taxable year, there shall be allowed as a credit
against the tax imposed by this subtitle an amount equal to
50 percent of the amount paid by the taxpayer during the
taxable year as cost-sharing under section 2202(b)(4) of the
Social Security Act.
``(b) Limitation Based on Adjusted Gross Income.--The
amount of the credit which would (but for this subsection) be
allowed under this section for the taxable year shall be
reduced (but not below zero) by an amount which bears the
same ratio to such amount of credit as the excess of the
taxpayer's adjusted gross income for such taxable year over
the exemption amount (as defined in section 59B(d)) bears to
such exemption amount.''.
(b) Technical Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``or
from section 35 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the last item and inserting the following new items:

``Sec. 35. Cost-sharing expenses under MediKids program.
``Sec. 36. Overpayments of tax.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.

SEC. 5. FINANCING FROM TOBACCO LIABILITY PAYMENTS.

Amounts that are recovered by the United States in the
civil action brought on September 22, 1999, under the Medical
Care Recovery Act, the Medicare Secondary Payer provisions,
and section 1962 of title 18, United States Code, in the
United States District Court for the District of Columbia
against the industry engaged in the production and sale of
tobacco products and persons engaged in public relations and
lobbying for such industry and that are attributable to the
expenditures of the Department of Health and Human Services
for tobacco-related illnesses shall be deposited in the
MediKids Trust Fund established under section 2204(a) of the
Social Security Act, as added by section 2(a) of the MediKids
Health Insurance Act of 2000.

SEC. 6. REPORT ON LONG-TERM REVENUES.

Within one year after the date of the enactment of this
Act, the Secretary of the Treasury shall propose a gradual
schedule of progressive tax changes to fund the program under
title XXII of the Social Security Act, as the number of
enrollees grows in the out-years.
____

MediKids Health Insurance Act of 2000--Summary and Description of the
Bill

There are still 11 million uninsured children in America.
Children are the least expensive segment of our population to
insure, they are the least able to have any control over
whether or not they have health insurance, and maintaining
their health is integral to their educational success and
their futures in our society.
We will soon introduce the MediKids Health Insurance Act of
2000 to end the disgrace of allowing our children to survive
without the basic health protections they need to thrive.
The MediKids Health Insurance Act of 2000 will create a new
Medicare type program called MediKids, tailored to the health
needs of children. The MediKids program will be separate from
Medicare and will have no financial impact on the existing
program.
The cornerstone of the new program will be automatic
enrollment into MediKids at birth. Beginning in 2002, every
child will be automatically enrolled in MediKids health
insurance coverage at birth, and their parents will be
assessed a small annual premium with their taxes. Parents who
have another source of health insurance for their children
are exempt from this premium. Babies initially enrolled in
MediKids who are determined to be eligible for S-CHIP or
Medicaid can be enrolled into the appropriate other program.
As each year brings a new cohort of babies into the
program, the program will grow to ensure a source of health
insurance to every child in America by the year 2020. (Future
Congresses will be able to speed up the extension of coverage
to children of all ages if they find it desirable to
accelerate the process of the program.) There will be no
means testing, no outreach problems, and the program will
exist as a safety net of health insurance for children,
regardless of income. It will cover their health needs
through changes in their parents' employment, marital status,
or access to private insurance.

DETAILS OF THE MEDIKIDS HEALTH INSURANCE ACT OF 2000

Enrollment

Automatic enrollment into MediKids at birth for every child
born after 12/31/2001.
At the time of enrollment, materials describing the
coverage and a MediKids health insurance card will be issued
to the parent(s) of legal guardian(s).
Once enrolled, children will remain enrolled in MediKids
until they reach the age of 23.
During periods of equivalent coverage by other sources,
whether private insurance, or government programs such as
Medicaid or S-CHIP, there will be no premium charged for
MediKids.
During any lapse in other insurance coverage, MediKids will
automatically cover the child's health insurance needs (and
premium will be owed for those months).

Benefits

Based on Medicare core benefits, plus the Medicaid Early
and Periodic Screening, Diagnosis, and Treatment (EPSDT)
benefits for children.
Prescription drug benefit.
The Secretary of HHS shall further develop age-appropriate
benefits as needed as the program matures, and as funding
support allows.
The Secretary shall include provisions for annual reviews
and updates to the benefits, with input from the pediatric
community.

Premiums

Parents will be responsible for a small premium, one-fourth
of the annual average cost per child, to be collected at
income tax filing.
Parents will be exempt from the premium if their children
are covered by comparable alternate health insurance. That
coverage can be either private insurance or enrollment in
other federal programs.
Families up to 150% of poverty will owe no premium.
Families between 150% and 300% of poverty will receive a
graduated discount in the premium. Each family's obligation
will be capped at 5% of total income.

Cost-sharing (co-pays, deductibles)

No cost-sharing for preventive and well child care.
No obligations up to 150% of poverty.
From 150% to 300% of poverty, a graduated refundable credit
for cost-sharing expenses.

Financing

During the first few years, costs can be fully covered by
tobacco settlement monies, budget surplus, or other funds as
agreed upon, such as a portion of the surplus in the child
immunizations liability trust fund.
During this time, the Secretary of Treasury has time to
develop a package of progressive, gradual tax changes to fund
the program, as the number of enrollees grows in the out-
years.

Miscellaneous

To the extent that the states save money from the
enrollment of children into MediKids, they will be required
to maintain those funding levels in other programs and
services directed at the Medicaid population, which can
include expanding eligibility for such services.
At the issuance of legal immigration papers for a child
born after 12/31/01, that child will be automatically
enrolled in the MediKids health insurance program.
If you would like to get more information about the
legislation, or to join as an original cosponsor, please
contact Deborah Veres with Senator Rockefeller at 4-
7993.<bullet>

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